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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date
of earliest event reported): January 22, 2024
Outlook Therapeutics,
Inc.
(Exact name of registrant
as specified in its charter)
Delaware |
001-37759 |
38-3982704 |
(State or other jurisdiction
of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
485 Route 1 South
Building F, Suite 320
Iselin, New Jersey |
08830 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code:
(609) 619-3990
(Former
name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instructions A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange
on which registered |
Common stock |
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OTLK |
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The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
Item 1.01 |
Entry into a Material Definitive Agreement. |
Private Placement
Securities Purchase Agreement
On January 22, 2024, Outlook Therapeutics, Inc. (the “Company”)
entered into a securities purchase agreement (the “Securities Purchase Agreement”) with the institutional and accredited investors
named therein (the “Investors”), pursuant to which the Company agreed to issue and sell to the Investors, and the Investors
agreed to purchase, in a private placement (the “Private Placement”) an aggregate of $60 million in shares (the “Shares”)
of the Company’s common stock, par value $0.01 per share (the “Common Stock”), and, for each Share issued in the Private
Placement, accompanying warrants to purchase up to one and a half shares of Common Stock (the “Warrants” and, together with
the Shares, the “Securities”). The purchase price per Share and accompanying Warrant will be equal to the lower of (a) $0.35
and (b) the Market Price of the Common Stock as of the Closing (as defined below) (the “Per Share Price”). “Market Price”
means the lower of (i) the closing price of the Common Stock on the Nasdaq Capital Market as of the trading day immediately preceding
Closing (the “Pricing Date”) and (ii) the volume weighted average price of the Common Stock on the Nasdaq Capital Market over
the five trading days prior to the Closing (but in no event lower than $0.07 per share).
The Warrants will have a per share exercise price equal to 110% of
the Per Share Price, subject to proportional adjustments in the event of stock splits or combinations or similar events (such as the reverse
stock split to be implemented prior to Closing as discussed below). The Warrants will be exercisable only for cash, except in limited
circumstances, at any time after the date of issuance (the “Issue Date”) and will expire five years from the Issue Date. A
holder of Warrants may not exercise the Warrant if the holder, together with its affiliates, would beneficially own more than a specified
percentage of the outstanding Common Stock (4.99%, 9.99% or 19.99%, as applicable), immediately after giving effect to such exercise (the
“Beneficial Ownership Limitation”)which may be increased or decreased at the holders’ option (not to exceed 19.99%),
effective 61 days after written notice to the Company. In addition, the Company may require the holders to cash exercise the Warrants
under certain circumstances as follows: (i) if the VWAP of the Common Stock equals or exceeds $1.00 per share (subject to adjustment in
the event of stock splits, combinations or similar events, such as the reverse stock split to be implemented prior to Closing as discussed
below) for 30 consecutive days (the “Stock Price Condition”) at any time after the Company publicly announces topline data
from its NORSE EIGHT clinical trial evidencing satisfaction of the trial’s primary endpoints (the “NORSE EIGHT Announcement”),
upon the consent of a majority of the members of the Company’s Board of Directors (the “Board”), the Company may require
the holders to exercise up to 20% of the aggregate number of Warrants issued to such holder on the Issue Date; and (ii) the Company may
require up to the remainder of the Warrants be exercised (A) if the Stock Price Condition is satisfied at any time after the Company publicly
announces approval from the U.S. Food and Drug Administration of its Biologics License Application for ONS-5010, upon the consent of a
majority of the members of the Board or (B) if the Stock Price Condition is satisfied at any time after the NORSE EIGHT Announcement,
upon the unanimous consent of the members of the Company’s Board of Directors present at duly called meeting.
The closing of the Private Placement (the “Closing”) is
conditioned on (i) the filing of an amendment to the Company’s certificate of incorporation to increase the number of authorized
shares of Common Stock by at least a number of shares sufficient to issue the Shares and the shares of Common Stock issuable upon exercise
of the Warrants (the “Warrant Shares”), (ii) the implementation of a reverse stock split of the Common Stock, and (iii) stockholder
approval of the issuance of the Securities in the Private Placement pursuant to Nasdaq Listing Rule 5635(d). The Company intends
to seek to obtain approval of each of the foregoing at its 2024 annual meeting of stockholders (collectively, the “Stockholder Approval”).
The Private Placement will not close, the Securities will not be issued and the proceeds of the Private Placement will not be received
by the Company unless and until the Stockholder Approval is obtained and the reverse stock split is implemented. The Company anticipates
receiving gross proceeds of $60 million at the Closing, and may receive up to an additional $99 million of gross proceeds upon cash exercise
of the Warrants, in each case before deducting placement agent fees and offering expenses. BofA Securities and BTIG acted as co-placement
agents in connection with the financing.
The Company intends to use the net proceeds to fund its ONS-5010
clinical development programs, including to initiate and fund the planned NORSE EIGHT clinical trial, and for working capital and
other general corporate purposes. The Securities Purchase Agreement may be terminated if the Stockholder Approval is not obtained by
April 15, 2024 or if Closing has not occurred prior to the 15th trading day following receipt of Stockholder Approval. In
connection with the Securities Purchase Agreement, GMS Ventures and Investments (“GMS”) and Syntone Ventures, LLC
(“Syntone”), the Company’s largest stockholders, and each of the Company’s directors have executed support
agreements (the “Support Agreements”) pursuant to which each has agreed to vote its shares of Common Stock in favor of
the items for which Stockholder Approval is required.
Existing investors and entities affiliated with certain directors of
the Company are party to the Securities Purchase Agreement. GMS, affiliated with Yezan Haddadin and Faisal G. Sukhtian, directors of the
Company, has committed to purchase Shares and Warrants for an aggregate purchase price of approximately $16.1 million.
The foregoing descriptions of the Securities Purchase Agreement, Support
Agreements and the Warrants do not purport to be complete and are qualified in their entirety by reference to the full text of the form
of each such document, which are filed as Exhibits 10.1, 10.2 and 4.1 hereto, respectively, and incorporated by reference herein.
Registration Rights Agreement
Also on January 22, 2024, the Company
entered into a registration rights agreement (the “Registration Rights Agreement”) with the Investors, pursuant to which the
Company agreed to prepare and file, within five days following the Closing, one or more registration statements with the Securities and
Exchange Commission to register for resale the Securities held by the Investors (the “Registrable Securities”). The Company
has agreed to be responsible for all fees and expenses incurred in connection with the registration of the Registrable Securities.
The Company has granted the Investors customary indemnification rights
in connection with any registration statement filed pursuant to the Registration Rights Agreement. The Investors have also granted the
Company customary indemnification rights in connection with any registration statement filed pursuant to the Registration Rights Agreement.
The foregoing description of the Registration Rights Agreement does
not purport to be complete and is qualified in its entirety by reference to the full text of the form of Registration Rights Agreement,
which is filed as Exhibit 10.3 hereto and incorporated by reference herein.
Syntone Private Placement
Purchase Agreement
In addition, on January 22, 2024, the Company entered into a securities
purchase agreement (the “Syntone Purchase Agreement”) with Syntone, pursuant to which Syntone agreed to purchase $5 million
of shares of Common Stock (the “Syntone Shares”) and, for each Syntone Share issued in the under the Syntone Purchase Agreement,
accompanying warrants to purchase up to one and a half shares of Common Stock (the “Syntone Warrants”) on substantially the
same terms as those set forth in the Securities Purchase Agreement and the Warrants, subject to receipt of certain regulatory approvals
(the “Syntone Private Placement”) in addition to the closing conditions noted above.
Syntone is an existing investor, affiliated with Andong Huang, a director
of the Company, and has committed to purchase the Syntone Shares and Syntone Warrants for an aggregate purchase price of approximately
$5 million.
The foregoing descriptions of the Syntone Purchase Agreement and the
Syntone Warrants do not purport to be complete and are qualified in their entirety by reference to the full text of the Syntone Purchase
Agreement and the form of Syntone Warrant, which are filed as Exhibits 10.4 and 4.2 hereto, respectively, and incorporated by reference
herein.
Registration Rights Agreement
Also on January 22, 2024, the Company entered into a registration
rights agreement (the “Syntone Registration Rights Agreement”) with Syntone, pursuant to which the Company agreed to
prepare and file, within 5 days following the closing of the Syntone Private Placement, one or more registration statements with the
Securities and Exchange Commission to register for resale the shares of Common Stock and the shares of Common Stock underlying the
Syntone Warrants (the “Syntone Registrable Securities”). The Company has agreed to be responsible for all fees and
expenses incurred in connection with the registration of the Syntone Registrable Securities.
The Company has granted Syntone customary indemnification rights in
connection with the registration statement filed pursuant to the Syntone Registration Rights Agreement. Syntone has also granted the Company
customary indemnification rights in connection with the registration statement filed pursuant to the Syntone Registration Rights Agreement.
The foregoing description of the Syntone Registration Rights Agreement
does not purport to be complete and is qualified in its entirety by reference to the full text of the Syntone Registration Rights Agreement,
which is filed as Exhibit 10.5 hereto and incorporated by reference herein.
Amendment to Convertible Note
On January 22, 2024, the Company entered into the Third Amendment to
Convertible Promissory Note (the “Note Amendment”) with Streeterville Capital, LLC (the “Lender”), which amends
that certain Convertible Promissory Note dated December 22, 2022 in the principal amount of $31.8 million (as previously amended, the
“Note”). Pursuant to the Note Amendment, the Lender agreed, subject to the satisfaction of certain conditions, to the following
conditional amendments (collectively, the “Conditional Amendments”):
| · | A reduction in the initial conversion price with respect to $15.0 million in aggregate principal amount of the Note to the price per
share in an issuance of equity securities by the Company resulting in aggregate gross proceeds of at least $25.0 million (a “Qualified
Offering”) (which the Company expects to result in a reduction of the initial conversion price such that it equals the Per Share
Price in the Private Placement) (the “Conversion Price Adjustment”), which would apply to conversions on or after April 1,
2024; |
| · | An extension of the maturity date of the Note to July 1, 2025; |
| · | An extension fee of 7.5% of the outstanding balance of the Note, which amount will be calculated and added to the outstanding balance
on the date a Qualified Offering is completed; |
| · | An increase of the rate at which interest will accrue on the Note from 9.5% to the prime rate (as published in the Wall Street Journal)
plus 3% (subject to a floor of 9.5%); and |
| · | An obligation of the Company to repay at least $3.0 million of the outstanding balance of the Note for each calendar quarter beginning
with the second quarter of 2024 (subject to adjustment for conversions by the Lender and to payment of an exit fee as set forth in the
Note) and continuing until the Note is repaid in full. |
The Conditional Amendments are subject to completion of a Qualified
Offering, the absence of an event of default under the Note and receipt of approval of the Company’s stockholders of the Note Amendment
under applicable rules of the Nasdaq Stock Exchange.
The foregoing description of the Note
Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Note Amendment, which
is filed as Exhibit 10.6 hereto and incorporated by reference herein.
Item 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
of a Registrant. |
The disclosure under Item 1.01 of this
Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
Item 3.02 |
Unregistered Sales of Equity Securities. |
The information contained above in
Item 1.01 relating to the Private Placement and the Syntone Private Placement is hereby incorporated by reference into this Item
3.02. The Shares, Warrants, Syntone Shares and Syntone Warrants are being sold and, upon exercise the shares of Common Stock
underlying the Warrants and Syntone Warrants, will be issued without registration under the Securities Act, in reliance on the
exemptions provided by Section 4(a)(2) of the Securities Act as a transaction not involving a public offering and Rule 506
promulgated under the Securities Act as sales to accredited investors, and in reliance on similar exemptions under applicable state
laws. The Investors and Syntone made relevant representations in the Securities Purchase Agreement and Syntone Purchase Agreement,
respectively.
Neither this Current Report on Form
8-K nor any exhibit attached hereto is an offer to sell or the solicitation of an offer to buy shares of common stock or other securities
of the Company.
On January 23, 2024, the Company issued
a press release announcing the Private Placement, Syntone Private Placement and Note Amendment. A copy of the press release is attached
as Exhibit 99.1 hereto and is incorporated by reference herein.
Forward-Looking Statements
This Current Report on Form 8-K contains
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,”
“expect,” “intend,” “may,” “will,” “would,” and similar expressions (as well
as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements.
All statements other than statements of historical fact contained in this Current Report on Form 8-K are forward-looking statements,
including without limitation statements regarding the expected closing of the Private Placement and the Syntone Private Placement, the
Company’s receipt of the necessary stockholder approval, Sytone’s receipt of the necessary regulatory approvals, anticipated
proceeds from the Private Placement and Syntone Private Placement and the use thereof, the Company’s plans to file registration
statements to register the resale of the Registrable Securities and the Syntone Shares and Syntone Warrants, and the Company’s
development plans with respect to its product candidates, including the planned NORSE EIGHT clinical trial, and the effectiveness of
the Conditional Amendments. These forward-looking statements are based on the Company’s expectations and assumptions as
of the date of this Current Report on Form 8-K. These forward-looking statements are subject to risks and uncertainties that could cause
results and events to differ significantly from those expressed or implied by the forward-looking statements, including risks associated
with receipt of necessary stockholder approvals and closing a securities offering. Additional factors that may cause the Company’s
actual results to differ from those expressed or implied in the forward-looking statements in this Current Report on Form 8-K are discussed
in the Company’s filings with the U.S. Securities and Exchange Commission, including under “Risk Factors” in
the Company’s annual report on Form 10-K for the year ended September 30, 2023 and future filings by the Company.
Except as required by law, the Company assumes no obligation to update any forward-looking statements contained herein to reflect
any change in expectations, even as new information becomes available.
Item 9.01 |
Financial Statements and Exhibits. |
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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Outlook Therapeutics, Inc. |
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Date: January 24, 2024 |
By: |
/s/ Lawrence A. Kenyon |
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Lawrence A. Kenyon |
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Chief Financial Officer |
Exhibit 4.1
NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTION SET
FORTH HEREIN AND IN THE SECURITIES PURCHASE AGREEMENT DATED JANUARY 22, 2024. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
FORM OF COMMON STOCK PURCHASE WARRANT
OUTLOOK THERAPEUTICS, INC.
Warrant Number: ____
|
Issue Date: , 2024 |
THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, [ ]
or its permitted assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and
the conditions hereinafter set forth, at any time on or after the Issue Date set forth above (the “Initial Exercise Date”)
and on or prior to 5:00 p.m. (New York City time) on the fifth anniversary of the Issue Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Outlook Therapeutics, Inc., a Delaware corporation (the “Company”),
up to [
]1 shares (as subject to adjustment hereunder,
the “Warrant Shares”) of common stock, par value $0.01 per share, of the Company (the “Common Stock”).
The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
This Warrant is one of a series
of similar warrants issued pursuant to that certain Securities Purchase Agreement, dated January 22, 2024, by and among the Company and
the Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred to herein, collectively,
as the “Warrants.”
Section
1.
Definitions; Purchase Agreement. Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in the Purchase Agreement. For the avoidance of doubt, whenever this Warrant references terms of, or provisions being in accordance
with provisions of, the Purchase Agreement, such terms and provisions of the Purchase Agreement shall be deemed incorporated into this
Warrant and to be part hereof as though set forth herein.
1
Note to Draft: To reflect 150% warrant coverage.
Section
2.
Exercise.
(a)
Exercise of Warrant. This Warrant may be exercised, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted
by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within
two (2) Trading Days following the date of exercise, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified
in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank, unless the cashless exercise
procedure referenced in Section 2(c) below is applicable and specified in the applicable Notice of Exercise. No ink-original Notice of
Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be
required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company to effect an exercise hereunder until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has
been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date on which the final Notice of Exercise is delivered to the Company. (It is understood and agreed that to surrender this
Warrant to the Company for any purpose under this Warrant, the Holder only needs to e-mail to the Company e-mail address provided in Section
5(h) an electronic copy of the Warrant and state such Holder’s intent to surrender the Warrant.) Partial exercise of this Warrant
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the number of Warrant
Shares set forth in the applicable Notice of Exercise. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading
Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
(b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $[
], subject to adjustment hereunder (the “Exercise Price”).
(c)
Cashless Exercise in Limited Circumstances. This Warrant may only be exercised for cash in accordance with Section
2(a), provided, however, if at the time of exercise hereof there is no effective registration statement registering, or the prospectus
contained therein is not available for the resale of, the Warrant Shares by the Holders, then this Warrant may also be exercised, in whole
or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
(A) = as applicable: (i) the VWAP
on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed
and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section
2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS
promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading
Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading
Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice
of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including
until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii)
the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise
is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading
Day;
(B) = the Exercise Price
of this Warrant, as adjusted hereunder; and
(X) = the number of Warrant
Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
of a cash exercise rather than a cashless exercise.
If Warrant Shares are issued
in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant
Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may
be tacked on to the holding period of this Warrant. The Company agrees not to take any position contrary to this Section 2(c).
“Bid Price”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York
City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed
or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d)
in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.
“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a
similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the
fees and expenses of which shall be paid by the Company.
(d)
Mechanics of Exercise.
i
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in
such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of
the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations
pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate (or evidence of
issuance of the Warrant Shares in book entry with the Transfer Agent), registered in the Company’s share register in the name of
the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address
specified by the Holder in the Notice of Exercise (or, in the case of book entry issuance of Warrant Shares, evidence of such issuance
to the email address specified in such Notice of Exercise) by the date that is the earliest of (i) two (2) Trading Days after the delivery
to the Company of the Notice of Exercise, if the Company has by such date received the Exercise Price, and (ii) one (1) Trading Day
after delivery of the aggregate Exercise Price to the Company (provided that the foregoing clause (ii) shall not apply in the case of
cashless exercise) (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder
shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant
has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price
(other than in the case of a cashless exercise) is received within two (2) Trading Days following delivery of the Notice of Exercise.
The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable.
ii
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the
Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical to this Warrant.
iii
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise by delivering
written notice (including by email) to the Company at any time prior to the delivery of the Warrant Shares.
iv
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with
the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date (other
than a failure caused by incorrect or incomplete information provided (and not thereafter corrected at least two (2) Trading Days before
the Warrant Share Delivery Date) by the Holder to the Company), and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases for the Holder, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such
exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount
obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder (up to the number of shares
of Common Stock required to be purchased by the Holder or its broker for the Buy-In) in connection with a valid exercise, and (2) the
price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase
price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving
rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the
Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.
v
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise,
the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.
vi
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be
paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by
the Holder in the Notice of Exercise; provided, however, that in the event that Warrant Shares are to be issued
in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company shall have the right to require, as a condition thereto, the prior or contemporaneous
payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required
for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Warrant Shares, in each case, if applicable.
vii
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.
(e)
Beneficial Ownership Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates,
and any Person acting as a group together with such Holder or any of such Holder’s Affiliates (including such group itself), any
other Person who is a beneficial owner of Common Stock beneficially owned by the Holder or any of its Affiliates and any other Person
whose beneficial ownership would or could be aggregated with the Holder and the foregoing Persons, collectively, the “Attribution
Parties”), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder and its Attribution Parties shall include the number of
shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude
the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any other Warrant) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Attribution Parties. Except as
set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance therewith. For purposes of this Section 2(e), in determining the number
of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number
of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or Attribution Parties since
the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be [9.99%]2 of the number of shares
of the Common Stock outstanding (for purposes of the denominator, immediately after giving effect to the issuance of shares of Common
Stock to be issued upon the applicable exercise of this Warrant). [The Holder, upon notice to the Company, may increase or decrease the
Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds
19.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.]3
Any purported delivery to the Holder or the Attribution Parties of a number of shares of Common Stock or any other security upon exercise
of any Warrant shall be void and have no effect to the extent, but only to the extent, that before or after such delivery, the Holder
and the Attribution Parties would have beneficial ownership of Common Stock or any other such class in excess of the Beneficial Ownership
Limitation. The limitations contained in this paragraph may not be waived and shall apply to a successor holder of this Warrant.
(f)
Mandatory Exercise.
i
The Company shall have the right to require the Holder, upon the notice referred to in Section 2(f)(ii) to exercise (the
“Mandatory Exercise”) the Warrant (subject to Section 2(e)) at the Exercise Price as follows; provided, that the Company
shall only be permitted to exercise this option if there is an effective registration statement permitting the resale of the Warrant Shares
by the Holder:
(A) if the VWAP
of the Common Stock for any consecutive thirty (30) days equals or exceeds $1.00 per share (as adjusted pursuant to Section 3) (the “Stock
Price Condition”) at any time after the Company publicly announces topline data from its NORSE EIGHT clinical trial evidencing
satisfaction of the trial’s primary endpoints (the “NORSE EIGHT Announcement”), upon the consent of a majority
of the members of the Company’s Board of Directors (collectively, the “First Trigger”), the Company may require
the Holder to exercise up to 20% of the aggregate number of Warrants issued to the Holder on the Issue Date;
2
NTD: GPP threshold to be 9.99%.
3
NTD: To include for investors with thresholds below 19.99%.
(B) if the Stock
Price Condition is satisfied at any time after the Company publicly announces approval from the U.S. Food and Drug Administration of its
Biologics License Application for ONS-5010 (the “Approval Announcement”), upon the consent of a majority of the members
of the Company’s Board of Directors (collectively, the “Second Trigger”), the Company may require the Holder
to exercise up to all remaining Warrants then held by the Holder; and
(C) if the Stock
Price Condition is satisfied at any time after the NORSE EIGHT Announcement, upon the unanimous consent of the members of the Company’s
Board of Directors present at duly called meeting (collectively, the “Third Trigger” and together with the First Trigger
and the Second Trigger, the “Trigger Events”), the Company may require the Holder to exercise up to all remaining Warrants
then held by the Holder.
ii
In the event the Company shall elect a Mandatory Exercise, the Company shall fix a date for the Mandatory Exercise, which
date shall be no later ten (10) Trading Days from the date the applicable Trigger Event occurred (the “Mandatory Exercise Date”).
Notice of Mandatory Exercise (the “Mandatory Exercise Notice”) shall be provided by electronic mail to Holders of all,
but not less than all, Warrants by the Company not less than five (5) Trading Days prior to the proposed Mandatory Exercise Date (or such
lesser period until the Termination Date). Any notice given in the manner herein provided shall be conclusively presumed to have been
duly given whether or not the Holder received such notice. Each Mandatory Exercise Notice shall (x) state that the Company is electing
to effect a Mandatory Exercise on the Mandatory Exercise Date and (y) state the aggregate number of Warrant Shares to be exercised by
the Holder and all of the holders of the Warrants on the Mandatory Exercise Date (subject to any adjustments thereto pursuant to Section
3 that may occur prior to the Mandatory Exercise Date).
iii
If the Company elects to cause a Mandatory Exercise of this Warrant pursuant to this Section 2(f), then it must simultaneously
take the same action in the same proportion with respect to all of the Warrants. Notwithstanding the foregoing, in the event the Company
is unable to effect a Mandatory Exercise with respect to one or more Holders’ full proportionate amount due to the limitations in
Section 2(e), the Company may require that such Holder(s) complete one or more subsequent Mandatory Exercises until all Holders have undergone
a Mandatory Exercise in the same proportion.
Section
3.
Certain Adjustments.
(a)
Stock Dividends and Splits. If the Company, at any time on or after the date of the Purchase Agreement and while
this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock
or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include
any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into
a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in
each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event, the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged, and the $1.00 stock price in the Stock Price Condition
shall be ratably adjusted. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the effective date
of the dividend, distribution, subdivision, combination or re-classification.
(b)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time
the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro
rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is
taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders
of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held
in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).
(c)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return
of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way
of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
that, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership
of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such
portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.
(d)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company (including without limitation
through a Subsidiary), directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company
with or into another Person, (ii) the Company directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted for shares representing
more than 50% of the outstanding Common Stock or more than 50% of the voting power of the common equity of the Company, (iv) the Company,
directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions (other than one or more bona fide
financing transactions) consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock or more than 50% of the voting power of the common equity
of the Company (“group” status being determined in accordance with Section 13(d) of the Exchange Act) (each a “Fundamental
Transaction”), to the extent any portion to this Warrant remains unexercised, then following such Fundamental Transaction the
Holder shall have the right to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as the
Holder would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard
to any limitations on exercise contained herein (the “Alternate Consideration”). If the Company undertakes a Fundamental
Transaction in which the Company is not the surviving entity and the Alternate Consideration includes securities of another Person, then
the Company shall provide that, prior to or simultaneously with the consummation of such Fundamental Transaction, any successor to the
Company, surviving entity or other Person (including any purchaser of assets of the Company) shall assume the obligation to deliver to
the Holder such Alternate Consideration as the Holder is entitled to receive in accordance with the foregoing provisions, and to assume
the other obligations under this Warrant. The provisions of this paragraph (d) shall similarly apply to subsequent transactions analogous
of a Fundamental Transaction type. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction (other than (x)
any stock split or reverse stock split, (y) any transaction effected solely for the purpose of changing the jurisdiction of incorporation
of the Company, or (z) any holding company reorganization or parent-subsidiary merger not requiring stockholder approval pursuant to Sections
251(g) or 253 of the General Corporation Law of the State of Delaware (or any successor provisions thereof)), the Company or any Successor
Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction),
purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of
the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction, provided, however,
that, if the Fundamental Transaction is not within the Company's control, including not approved by the Company's Board of Directors,
Holder shall only be entitled to receive from the Company or any Successor Entity the same type or form of consideration (and in the same
proportion). “Black Scholes Value” means the value of this Warrant based on the Black-Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction
for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time
between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility
equal to the greater of (i) the 30 day volatility, (ii) the 100 day volatility and (iii) the 365 day volatility, each obtained from the
HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the public
announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater
of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered
in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental
Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction and (D) a remaining option time
equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The
payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Trading Days of the Holder’s
election (or, if later, on the effective date of the Fundamental Transaction). The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section
3(d) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent Fundamental Transaction.
The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of
this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the
Successor Entity shall succeed to, and be substituted for the Company (so that from and after the date of such Fundamental Transaction,
the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every
right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein. Notwithstanding the foregoing, and without
limiting Section 2(e) hereof, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this
Section 3(d) to permit a Fundamental Transaction without the assumption of this Warrant.
(e)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
(f)
Notice to Holder.
i
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.
ii
Notice to Allow Exercise by Holder. If during the term in which the Warrant may be exercised (A) the Company shall
declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock
rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders
of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile
or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least
ten (10) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which
a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof
shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to exercise
this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except
as may otherwise be expressly set forth herein.
Section
4.
Transfer of Warrant.
(a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of
the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company, unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days
of the date on which the Holder delivers a duly executed Assignment Form to the Company assigning this Warrant in full. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.
(b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division
or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of
this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.
(c)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to
the Holder, and for all other purposes, absent actual notice to the contrary.
(d)
Transfer Restrictions. If, in connection with the transfer of this Warrant, the Warrant Shares shall not be either
(i) eligible to be sold or transferred pursuant to an effective registration statement under the Securities Act and under applicable state
securities or blue sky laws or (ii) eligible to be sold or transferred without volume or manner-of-sale restrictions or current public
information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee
of this Warrant, as the case may be, comply with the provisions of Section 4.1 of the Purchase Agreement.
(e)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring
this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with
a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.
Section
5.
Miscellaneous.
(a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting
rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares in a “cashless exercise”
pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(iv) and Section 2(d)(v) herein, in no event shall the Company
be required to net cash settle an exercise of this Warrant.
(b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the
Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant
or stock certificate.
(c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the
next succeeding Trading Day.
(d)
Authorized Shares. The Company covenants that, from and after the Issue Date, during the period the Warrant is outstanding,
it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon
the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant
and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).
Except and to the extent as
waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company
will, so long as any of the Warrants are outstanding, (i) not increase the par value of any Warrant Shares above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii)
use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
Before taking any action which
would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company
shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.
(e)
Dispute Resolution. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile or electronic mail
within two (2) Business Days of receipt of the Notice of Exercise or other event giving rise to such dispute, as the case may be, to the
Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant
Shares within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two (2) Business Days submit via facsimile or electronic mail (a) the disputed determination of the Exercise Price
to an independent, reputable investment bank selected by the Company and reasonably approved by the Holder or (b) the disputed arithmetic
calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause (at its expense) the
investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder
of the results no later than five (5) Business Days from the time it receives the disputed determinations or calculations.
(f)
Jurisdiction. Except as set forth in Section 5(e), all questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.
(g)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities
laws.
(h)
Nonwaiver; Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of
Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision
of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
(i)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. Any notice, request or other document required
or permitted to be given or delivered to the Company by the Holder shall be delivered via email to [____________].
(j)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.
(k)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to seek specific performance of its rights under this Warrant. The Company agrees that monetary damages may
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.
(l)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.
(m)
Amendment; Waiver. The provisions of the Warrants may be modified or amended, or the provisions hereof waived only
with the written consent of the Company and the Holder.
(n)
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.
(o)
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.
(Signature Page Follows)
IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.
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OUTLOOK THERAPEUTICS, INC. |
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NOTICE OF EXERCISE
TO: Outlook
Therapeutics, Inc.
(1)
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.
(2)
shall take the form of (check applicable box):
[ ] in lawful money of the
United States; or
[ ] if permitted, the cancellation
of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant
with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).
(3)
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
_______________________________
(4)
After giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.
(5)
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.
The Warrant Shares shall be
delivered to the following DWAC Account Number or by physical delivery of a certificate to:
_______________________________
_______________________________
_______________________________
[SIGNATURE OF HOLDER]
Name of Investing Entity: |
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Signature of Authorized Signatory of Investing Entity: |
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ASSIGNMENT FORM
(To assign the foregoing Warrant, execute
this form and supply required information.
Do not use this form to exercise the Warrant.)
OUTLOOK THERAPEUTICS, INC.
FOR VALUE RECEIVED, all of or [_______] shares
of Warrant Number ___ and all rights evidenced thereby are hereby assigned to the following:
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NOTE: The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever. Officers
of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the
foregoing Warrant.
Exhibit 4.2
NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTION SET
FORTH HEREIN AND IN THE SECURITIES PURCHASE AGREEMENT DATED JANUARY 22, 2024. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
FORM OF COMMON STOCK PURCHASE WARRANT
OUTLOOK THERAPEUTICS, INC.
Warrant Number: ____
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Issue Date: , 2024 |
THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, [
] or its permitted assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and
the conditions hereinafter set forth, at any time on or after the Issue Date set forth above (the “Initial Exercise Date”)
and on or prior to 5:00 p.m. (New York City time) on the fifth anniversary of the Issue Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Outlook Therapeutics, Inc., a Delaware corporation (the “Company”),
up to [
]1 shares (as subject to adjustment hereunder,
the “Warrant Shares”) of common stock, par value $0.01 per share, of the Company (the “Common Stock”).
The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
This Warrant is one of a series
of similar warrants issued pursuant to that certain Securities Purchase Agreement, dated January 22, 2024, by and among the Company and
the Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred to herein, collectively,
as the “Warrants.”
Section
1.
Definitions; Purchase Agreement. Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in the Purchase Agreement. For the avoidance of doubt, whenever this Warrant references terms of, or provisions being in accordance
with provisions of, the Purchase Agreement, such terms and provisions of the Purchase Agreement shall be deemed incorporated into this
Warrant and to be part hereof as though set forth herein.
1
Note to Draft: To reflect 150% warrant coverage.
Section
2.
Exercise.
(a)
Exercise of Warrant. This Warrant may be exercised, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted
by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within
two (2) Trading Days following the date of exercise, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified
in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank, unless the cashless exercise
procedure referenced in Section 2(c) below is applicable and specified in the applicable Notice of Exercise. No ink-original Notice of
Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be
required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company to effect an exercise hereunder until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has
been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date on which the final Notice of Exercise is delivered to the Company. (It is understood and agreed that to surrender this
Warrant to the Company for any purpose under this Warrant, the Holder only needs to e-mail to the Company e-mail address provided in Section
5(h) an electronic copy of the Warrant and state such Holder’s intent to surrender the Warrant.) Partial exercise of this Warrant
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the number of Warrant
Shares set forth in the applicable Notice of Exercise. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading
Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
(b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $[
], subject to adjustment hereunder (the “Exercise Price”).
(c)
Cashless Exercise in Limited Circumstances. This Warrant may only be exercised for cash in accordance with Section
2(a), provided, however, if at the time of exercise hereof there is no effective registration statement registering, or the prospectus
contained therein is not available for the resale of, the Warrant Shares by the Holders, then this Warrant may also be exercised, in whole
or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
(A) = as applicable: (i) the VWAP
on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed
and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section
2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS
promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading
Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading
Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice
of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including
until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii)
the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise
is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading
Day;
(B) = the Exercise Price
of this Warrant, as adjusted hereunder; and
(X) = the number of Warrant
Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
of a cash exercise rather than a cashless exercise.
If Warrant Shares are issued
in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant
Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may
be tacked on to the holding period of this Warrant. The Company agrees not to take any position contrary to this Section 2(c).
“Bid Price”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York
City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed
or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d)
in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.
“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a
similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the
fees and expenses of which shall be paid by the Company.
(d)
Mechanics of Exercise.
i
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in
such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of
the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations
pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate (or evidence of
issuance of the Warrant Shares in book entry with the Transfer Agent), registered in the Company’s share register in the name of
the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address
specified by the Holder in the Notice of Exercise (or, in the case of book entry issuance of Warrant Shares, evidence of such issuance
to the email address specified in such Notice of Exercise) by the date that is the earliest of (i) two (2) Trading Days after the delivery
to the Company of the Notice of Exercise, if the Company has by such date received the Exercise Price, and (ii) one (1) Trading Day
after delivery of the aggregate Exercise Price to the Company (provided that the foregoing clause (ii) shall not apply in the case of
cashless exercise) (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder
shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant
has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price
(other than in the case of a cashless exercise) is received within two (2) Trading Days following delivery of the Notice of Exercise.
The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable.
ii
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the
Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical to this Warrant.
iii
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise by delivering
written notice (including by email) to the Company at any time prior to the delivery of the Warrant Shares.
iv
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with
the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date (other
than a failure caused by incorrect or incomplete information provided (and not thereafter corrected at least two (2) Trading Days before
the Warrant Share Delivery Date) by the Holder to the Company), and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases for the Holder, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such
exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount
obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder (up to the number of shares
of Common Stock required to be purchased by the Holder or its broker for the Buy-In) in connection with a valid exercise, and (2) the
price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase
price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving
rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the
Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.
v
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise,
the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.
vi
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be
paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by
the Holder in the Notice of Exercise; provided, however, that in the event that Warrant Shares are to be issued
in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company shall have the right to require, as a condition thereto, the prior or contemporaneous
payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required
for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Warrant Shares, in each case, if applicable.
vii
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.
(e)
Beneficial Ownership Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates,
and any Person acting as a group together with such Holder or any of such Holder’s Affiliates (including such group itself), any
other Person who is a beneficial owner of Common Stock beneficially owned by the Holder or any of its Affiliates and any other Person
whose beneficial ownership would or could be aggregated with the Holder and the foregoing Persons, collectively, the “Attribution
Parties”), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Attribution Parties shall include the
number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this
Warrant beneficially owned by the Holder or any of its Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any other Warrant) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Attribution Parties. Except as
set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance therewith. For purposes of this Section 2(e), in determining the number
of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the
Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement
by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to
the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or
Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be [9.99%]2
of the number of shares of the Common Stock outstanding (for purposes of the denominator, immediately after giving effect to the issuance
of shares of Common Stock to be issued upon the applicable exercise of this Warrant). [The Holder, upon notice to the Company, may increase
or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in
no event exceeds 19.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any
increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.]3
Any purported delivery to the Holder or the Attribution Parties of a number of shares of Common Stock or any other security
upon exercise of any Warrant shall be void and have no effect to the extent, but only to the extent, that before or after such delivery,
the Holder and the Attribution Parties would have beneficial ownership of Common Stock or any other such class in excess of the
Beneficial Ownership Limitation. The limitations contained in this paragraph may not be waived and shall apply to a successor holder
of this Warrant.
2
NTD: To update based on holder preference.
3
NTD: To include for investors with thresholds below 19.99%.
(f)
Mandatory Exercise.
i
The Company shall have the right to require the Holder, upon the notice referred to in Section 2(f)(ii) to exercise (the
“Mandatory Exercise”) the Warrant (subject to Section 2(e)) at the Exercise Price as follows; provided, that the Company
shall only be permitted to exercise this option if there is an effective registration statement permitting the resale of the Warrant Shares
by the Holder:
(A) if the VWAP
of the Common Stock for any consecutive thirty (30) days equals or exceeds $1.00 per share (as adjusted pursuant to Section 3) (the “Stock
Price Condition”) at any time after the Company publicly announces topline data from its NORSE EIGHT clinical trial evidencing
satisfaction of the trial’s primary endpoints (the “NORSE EIGHT Announcement”), upon the consent of a majority
of the members of the Company’s Board of Directors (collectively, the “First Trigger”), the Company may require
the Holder to exercise up to 20% of the aggregate number of Warrants issued to the Holder on the Issue Date;
(B) if the Stock
Price Condition is satisfied at any time after the Company publicly announces approval from the U.S. Food and Drug Administration of its
Biologics License Application for ONS-5010 (the “Approval Announcement”), upon the consent of a majority of the members
of the Company’s Board of Directors (collectively, the “Second Trigger”), the Company may require the Holder
to exercise up to all remaining Warrants then held by the Holder; and
(C) if the Stock
Price Condition is satisfied at any time after the NORSE EIGHT Announcement, upon the unanimous consent of the members of the Company’s
Board of Directors present at duly called meeting (collectively, the “Third Trigger” and together with the First Trigger
and the Second Trigger, the “Trigger Events”), the Company may require the Holder to exercise up to all remaining Warrants
then held by the Holder.
ii
In the event the Company shall elect a Mandatory Exercise, the Company shall fix a date for the Mandatory Exercise, which
date shall be no later ten (10) Trading Days from the date the applicable Trigger Event occurred (the “Mandatory Exercise Date”).
Notice of Mandatory Exercise (the “Mandatory Exercise Notice”) shall be provided by electronic mail to Holders of all,
but not less than all, Warrants by the Company not less than five (5) Trading Days prior to the proposed Mandatory Exercise Date (or such
lesser period until the Termination Date). Any notice given in the manner herein provided shall be conclusively presumed to have been
duly given whether or not the Holder received such notice. Each Mandatory Exercise Notice shall (x) state that the Company is electing
to effect a Mandatory Exercise on the Mandatory Exercise Date and (y) state the aggregate number of Warrant Shares to be exercised by
the Holder and all of the holders of the Warrants on the Mandatory Exercise Date (subject to any adjustments thereto pursuant to Section
3 that may occur prior to the Mandatory Exercise Date). The Holder is required to deliver the Exercise Price to the Company within forty
five (45) calendar days of its receipt of a Mandatory Exercise Notice.
iii
If the Company elects to cause a Mandatory Exercise of this Warrant pursuant to this Section 2(f), then it must simultaneously
take the same action in the same proportion with respect to all of the Warrants. Notwithstanding the foregoing, in the event the Company
is unable to effect a Mandatory Exercise with respect to one or more Holders’ full proportionate amount due to the limitations in
Section 2(e), the Company may require that such Holder(s) complete one or more subsequent Mandatory Exercises until all Holders have undergone
a Mandatory Exercise in the same proportion.
Section
3.
Certain Adjustments.
(a)
Stock Dividends and Splits. If the Company, at any time on or after the date of the Purchase Agreement and while
this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock
or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include
any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into
a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in
each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event, the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged, and the $1.00 stock price in the Stock Price Condition
shall be ratably adjusted. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the effective date
of the dividend, distribution, subdivision, combination or re-classification.
(b)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time
the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro
rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is
taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders
of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held
in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).
(c)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return
of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way
of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
that, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership
of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such
portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.
(d)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company (including without limitation
through a Subsidiary), directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company
with or into another Person, (ii) the Company directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted for shares representing
more than 50% of the outstanding Common Stock or more than 50% of the voting power of the common equity of the Company, (iv) the Company,
directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions (other than one or more bona fide
financing transactions) consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock or more than 50% of the voting power of the common equity
of the Company (“group” status being determined in accordance with Section 13(d) of the Exchange Act) (each a “Fundamental
Transaction”), to the extent any portion to this Warrant remains unexercised, then following such Fundamental Transaction the
Holder shall have the right to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as the
Holder would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard
to any limitations on exercise contained herein (the “Alternate Consideration”). If the Company undertakes a Fundamental
Transaction in which the Company is not the surviving entity and the Alternate Consideration includes securities of another Person, then
the Company shall provide that, prior to or simultaneously with the consummation of such Fundamental Transaction, any successor to the
Company, surviving entity or other Person (including any purchaser of assets of the Company) shall assume the obligation to deliver to
the Holder such Alternate Consideration as the Holder is entitled to receive in accordance with the foregoing provisions, and to assume
the other obligations under this Warrant. The provisions of this paragraph (d) shall similarly apply to subsequent transactions analogous
of a Fundamental Transaction type. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction (other than (x)
any stock split or reverse stock split, (y) any transaction effected solely for the purpose of changing the jurisdiction of incorporation
of the Company, or (z) any holding company reorganization or parent-subsidiary merger not requiring stockholder approval pursuant to Sections
251(g) or 253 of the General Corporation Law of the State of Delaware (or any successor provisions thereof)), the Company or any Successor
Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction),
purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of
the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction, provided, however,
that, if the Fundamental Transaction is not within the Company's control, including not approved by the Company's Board of Directors,
Holder shall only be entitled to receive from the Company or any Successor Entity the same type or form of consideration (and in the same
proportion). “Black Scholes Value” means the value of this Warrant based on the Black-Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg determined as of the day of consummation of the applicable Fundamental Transaction
for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time
between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility
equal to the greater of (i) the 30 day volatility, (ii) the 100 day volatility and (iii) the 365 day volatility, each obtained from the
HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the public
announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater
of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered
in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental
Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction and (D) a remaining option time
equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The
payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Trading Days of the Holder’s
election (or, if later, on the effective date of the Fundamental Transaction). The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section
3(d) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent Fundamental Transaction.
The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of
this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the
Successor Entity shall succeed to, and be substituted for the Company (so that from and after the date of such Fundamental Transaction,
the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every
right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein. Notwithstanding the foregoing, and without
limiting Section 2(e) hereof, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this
Section 3(d) to permit a Fundamental Transaction without the assumption of this Warrant.
(e)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
(f)
Notice to Holder.
i
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.
ii
Notice to Allow Exercise by Holder. If during the term in which the Warrant may be exercised (A) the Company shall
declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock
rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders
of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile
or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least
ten (10) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which
a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof
shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to exercise
this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except
as may otherwise be expressly set forth herein.
Section
4.
Transfer of Warrant.
(a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of
the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company, unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days
of the date on which the Holder delivers a duly executed Assignment Form to the Company assigning this Warrant in full. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.
(b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division
or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of
this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.
(c)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to
the Holder, and for all other purposes, absent actual notice to the contrary.
(d)
Transfer Restrictions. If, in connection with the transfer of this Warrant, the Warrant Shares shall not be either
(i) eligible to be sold or transferred pursuant to an effective registration statement under the Securities Act and under applicable state
securities or blue sky laws or (ii) eligible to be sold or transferred without volume or manner-of-sale restrictions or current public
information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee
of this Warrant, as the case may be, comply with the provisions of Section 4.1 of the Purchase Agreement.
(e)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring
this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with
a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.
Section
5.
Miscellaneous.
(a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting
rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares in a “cashless exercise”
pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(iv) and Section 2(d)(v) herein, in no event shall the Company
be required to net cash settle an exercise of this Warrant.
(b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the
Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant
or stock certificate.
(c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the
next succeeding Trading Day.
(d)
Authorized Shares. The Company covenants that, from and after the Issue Date, during the period the Warrant is outstanding,
it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon
the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant
and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).
Except and to the extent as
waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company
will, so long as any of the Warrants are outstanding, (i) not increase the par value of any Warrant Shares above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii)
use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
Before taking any action which
would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company
shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.
(e)
Dispute Resolution. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile or electronic mail
within two (2) Business Days of receipt of the Notice of Exercise or other event giving rise to such dispute, as the case may be, to the
Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant
Shares within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two (2) Business Days submit via facsimile or electronic mail (a) the disputed determination of the Exercise Price
to an independent, reputable investment bank selected by the Company and reasonably approved by the Holder or (b) the disputed arithmetic
calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause (at its expense) the
investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder
of the results no later than five (5) Business Days from the time it receives the disputed determinations or calculations.
(f)
Jurisdiction. Except as set forth in Section 5(e), all questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.
(g)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities
laws.
(h)
Nonwaiver; Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of
Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision
of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
(i)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. Any notice, request or other document required
or permitted to be given or delivered to the Company by the Holder shall be delivered via email to [____________].
(j)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.
(k)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to seek specific performance of its rights under this Warrant. The Company agrees that monetary damages may
not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.
(l)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced
hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.
(m)
Amendment; Waiver. The provisions of the Warrants may be modified or amended, or the provisions hereof waived only
with the written consent of the Company and the Holder.
(n)
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.
(o)
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.
(Signature Page Follows)
IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.
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OUTLOOK THERAPEUTICS, INC. |
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By: |
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Name: |
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Title: |
NOTICE OF EXERCISE
TO: Outlook
Therapeutics, Inc.
(1)
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.
(2)
shall take the form of (check applicable box):
[ ] in lawful money of the
United States; or
[ ] if permitted, the cancellation
of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant
with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).
(3)
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
_______________________________
(4)
After giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.
(5)
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.
The Warrant Shares shall be
delivered to the following DWAC Account Number or by physical delivery of a certificate to:
_______________________________
_______________________________
_______________________________
[SIGNATURE OF HOLDER]
Name of Investing Entity: |
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Signature of Authorized Signatory of Investing Entity: |
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Name of Authorized Signatory: |
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Title of Authorized Signatory: |
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Date: |
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ASSIGNMENT FORM
(To assign the foregoing Warrant, execute
this form and supply required information.
Do not use this form to exercise the Warrant.)
OUTLOOK THERAPEUTICS, INC.
FOR VALUE RECEIVED, all of or [_______] shares
of Warrant Number ___ and all rights evidenced thereby are hereby assigned to the following:
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NOTE: The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever. Officers
of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the
foregoing Warrant.
Exhibit 10.1
SECURITIES PURCHASE AGREEMENT
This Securities Purchase
Agreement (this “Agreement”) is dated as of January 22, 2024, between Outlook Therapeutics, Inc., a Delaware
corporation (the “Company”), and the several purchasers identified on the signature pages hereto (each, including its
respective successors and assigns, a “Purchaser”).
WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the
Securities Act of 1933, as amended (the “Securities Act”), contained in Section 4(a)(2) thereof and/or Rule 506 of
Regulation D promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
wishes to purchase from the Company, the aggregate number of shares of Common Stock (as defined below) and the Warrants (as defined below),
in each case, as set forth below such Purchaser’s name on the signature page of this Agreement.
WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the Purchasers and the Company are executing and delivering a Registration
Rights Agreement (as defined below), pursuant to which, among other things, the Company will agree to provide certain registration
rights with respect to the Shares (as defined below) and Warrant Shares (as defined below) under the Securities Act and the rules and
regulations promulgated thereunder and applicable state securities laws and certain information and consent rights.
NOW, THEREFORE, in
consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Company and each Purchaser, severally and not jointly, agree as follows:
ARTICLE
I
DEFINITIONS
1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the
following terms have the meanings set forth in this Section 1.1:
“2024
Stockholder Meeting” has the meaning ascribed to such term in Section 4.6(b).
“Accountants”
has the meaning ascribed to such term in Section 3.1(bb).
“Acquiring Person”
has the meaning ascribed to such term in Section 4.5.
“Action”
means any action, suit, inquiry, notice of violation, arbitration, complaint, proceeding (including any partial proceeding such as a deposition)
or investigation pending or, to the Company’s Knowledge, threatened in writing against the Company, any Subsidiary or any of their
respective properties or any officer, director or employee of the Company or any Subsidiary acting in his or her capacity as an officer,
director or employee before or by any federal, state, county, local or foreign court, arbitrator, governmental or administrative agency,
regulatory authority, stock market, stock exchange or trading facility.
“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. Notwithstanding the foregoing, with respect
to each Purchaser (a) the Company and each of its Subsidiaries shall not be considered Affiliates of such Purchaser or any of such Purchaser’s
Affiliates and (b) no portfolio company of a Purchaser or any of its Affiliates shall be deemed an Affiliate of such Purchaser and its
other Affiliates so long as such portfolio company has not been directed, encouraged, instructed, assisted or advised by, or coordinated
with, such Purchaser or any of its Affiliates in carrying out any act contemplated or prohibited by this Agreement.
“Agreement”
has the meaning ascribed to such term in the preamble.
“Board of Directors”
means the board of directors of the Company.
“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York, New York are authorized or required
by law to remain closed.
“Bylaws”
means the Company’s Bylaws as amended and restated and as in effect on the date hereof.
“Certificate of Incorporation”
means the Company’s certificate of incorporation, as amended and restated and as in effect on the date hereof.
“Charter Amendment”
has the meaning ascribed to such term in Section 4.6(b).
“Charter Amendment
Proposal” has the meaning ascribed to such term in Section 4.6(b).
“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.
“Closing Date”
means the second (2nd) Trading Day following the date on which the Company effects the Reverse Stock Split.
“Code”
has the meaning ascribed to such term in Section 3.1(uu).
“Concurrent Private
Placement” means the issuance and sale of shares of Common Stock and Warrants to Syntone Ventures LLC and/or its Affiliates
concurrently with the transactions contemplated hereby on substantially similar terms.
“Commission”
means the United States Securities and Exchange Commission.
“Common Stock”
means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.
“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
“Company”
has the meaning ascribed to such term in the preamble.
“Company Counsel”
means Cooley LLP, with offices located at 55 Hudson Yards, New York, New York 10001.
“Company’s
Knowledge” means with respect to any statement made to the knowledge of the Company, that the statement is based upon the actual
knowledge, after reasonable inquiry, of the executive officers of the Company.
“DGCL”
has the meaning ascribed to such term in Section 3.1(t).
“Disqualification
Event” has the meaning ascribed to such term in Section 3.1(ll).
“DPA” has
the meaning ascribed to such term in Section 3.1(ww).
“Entity”
has the meaning ascribed to such term in Section 3.1(vv).
“Environmental Laws”
has the meaning ascribed to such term in Section 3.1(m).
“ERISA”
has the meaning ascribed to such term in Section 3.1(uu).
“Evaluation Date”
has the meaning ascribed to such term in Section 3.1(jj).
“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.
“FDA” has
the meaning ascribed to such term in Section 3.1(ee).
“GAAP”
has the meaning ascribed to such term in Section 3.1(f).
“GDPR”
has the meaning ascribed to such term in Section 3.1(qq).
“GMS” means
GMS Ventures & Investments and its Affiliates.
“Government Official”
has the meaning ascribed to such term in Section 3.1(v).
“Hazardous Materials”
has the meaning ascribed to such term in Section 3.1(m).
“Health Care Laws”
has the meaning ascribed to such term in Section 3.1(ee).
“HIPAA”
has the meaning ascribed to such term in Section 3.1(ee).
“Intellectual Property”
has the meaning ascribed to such term in Section 3.1(l).
“Issuer Covered Person”
has the meaning ascribed to such term in Section 3.1(ll).
“IT Systems”
has the meaning ascribed to such term in Section 3.1(pp).
“Legend Removal Date”
has the meaning ascribed to such term in Section 4.1(c).
“Lead Purchaser”
means Great Point Partners.
“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
“Market Price”
means the lower of (a) the closing price of the Common Stock on the Principal Trading Market as of the Trading Day immediately preceding
the Closing (the “Pricing Date”) and (b) the volume weighted average share price
of the Common Stock on the Principal Trading Market over the last five (5) Trading Days prior to the Closing, provided, however, that
such price shall in no event be lower than $0.07 per share.
“Material Adverse
Effect” has the meaning ascribed to such term in Section 3.1(a).
“Material Permits”
has the meaning ascribed to such term in Section 3.1(p).
“Money Laundering
Laws” has the meaning ascribed to such term in Section 3.1(rr).
“Nasdaq Proposal”
has the meaning ascribed to such term in Section 4.6(b).
“OFAC”
has the meaning ascribed to such term in Section 3.1(vv).
“Outside Date”
has the meaning ascribed to such term in Section 4.6(b).
“Per Share Purchase Price” means
the lower of (a) the Market Price per share at the time of the Closing and (b) $0.35 per share, subject to adjustment for reverse and
forward stock splits, stock dividends, stock combinations or other similar transactions of the Common Stock that occur after the date
of this Agreement and prior to the Closing.
“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
“Personal Data” has the meaning
ascribed to such term in Section 3.1(pp).
“Placement Agents”
means BofA Securities, Inc. and BTIG, LLC, whom the Company has engaged as its placement agents in connection with the placement of the
Securities.
“Policies”
has the meaning ascribed to such term in Section 3.1(qq).
“Pre-Pricing Period”
has the meaning ascribed to such term in Section 4.7.
“Pricing Date”
has the meaning ascribed to such term in the Market Price definition above.
“Principal Trading
Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading, which, as of the date
of this Agreement and the Closing Date, shall be the Nasdaq Capital Market.
“Privacy Laws”
has the meaning ascribed to such term in Section 3.1(qq).
“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened in writing.
“Product”
has the meaning ascribed to such term in Section 3.1(ee).
“Proposals”
has the meaning ascribed to such term in Section 4.6(b).
“Purchaser”
has the meaning ascribed to such term in the preamble.
“Registration Rights
Agreement” means the Registration Rights Agreement, dated on or about the date hereof, among the Company and the Purchasers,
in the form of Exhibit A attached hereto.
“Registration Statement”
or “Registration Statements” means the registration statement(s) meeting the requirements set forth in the Registration
Rights Agreement and covering the resale of the Shares and the Warrant Shares by the Purchasers as provided for in the Registration Rights
Agreement.
“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock potentially issuable in the future pursuant to the Transaction
Documents, including any Warrant Shares issuable upon exercise in full of all Warrants ignoring any exercise limits set forth therein
and the effect of potential future adjustments to the exercise price.
“Requisite Stockholder
Approval” has the meaning ascribed to such term in Section 4.6(b).
“Reverse Stock Split
Proposal” has the meaning ascribed to such term in Section 4.6(b).
“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Sanctioned Countries”
has the meaning ascribed to such term in Section 3.1(vv).
“Sanctions”
has the meaning ascribed to such term in Section 3.1(vv).
“Sarbanes-Oxley Act”
has the meaning ascribed to such term in Section 3.1(x).
“SEC Reports”
has the meaning ascribed to such term in Section 3.1(f).
“Securities”
means the Shares, the Warrants and the Warrant Shares.
“Securities Act”
has the meaning ascribed to such term in the preamble.
“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.
“Short Sales”
means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include
locating and/or borrowing shares of Common Stock).
“Standard Settlement
Period” has the meaning ascribed to such term in Section 4.1(c).
“Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for the Shares and Warrants purchased hereunder, in United States dollars
and in immediately available funds, as set forth below such Purchaser’s name on the signature page of this Agreement.
“Subsidiary”
has the meaning ascribed to such term in Section 3.1(ss).
“Trading Day”
means a day on which the Principal Trading Market is open for trading.
“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or
any successors to any of the foregoing).
“Transaction Documents”
means this Agreement, the Warrants, the Registration Rights Agreement, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.
“Transfer Agent”
means Equiniti Trust Company, LLC, the current transfer agent of the Company, and any successor transfer agent of the Company.
“Warrants”
means the warrants to purchase shares of Common Stock delivered to the Purchasers at Closing in accordance with Section 2.2(a) hereof,
in the form of Exhibit B attached hereto.
“Warrant Price Per
Share” means one hundred ten percent (110%) of the Per Share Purchase Price.
“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.
ARTICLE
II
PURCHASE AND SALE
2.1
Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of $60,000,000 of Shares and Warrants. The
Company shall deliver to each Purchaser its respective Shares and Warrants pursuant to Section 2.2(a), and the Company and each Purchaser
shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, the Closing shall occur remotely by mutual exchange of signature pages by electronic means. The Shares
and the Warrants will be issued in a private placement pursuant to an exemption from the registration requirements of Section 5 of the
Securities Act contained in Section 4(a)(2) thereof and/or Rule 506 of Regulation D promulgated thereunder.
2.2
Deliveries.
(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:
(i)
this Agreement duly executed by the Company;
(ii)
receipt of the Requisite Stockholder Approval;
(iii)
filing and acceptance of the Charter Amendment with the Secretary of State of the State of Delaware;
(iv)
subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing
the Transfer Agent to deliver uncertificated book entries representing a number of shares of Common Stock as set forth below such Purchaser’s
name on its signature page hereto (and bearing the restrictive securities legend pursuant to Section 4.1) equal to the Purchaser’s
Subscription Amount divided by the Per Share Purchase Price (or as otherwise directed to be registered by such Purchaser);
(v)
a Warrant registered in the name of each Purchaser to purchase up to a number of shares of Common Stock as set forth below
such Purchaser’s name on its signature page hereto, with an exercise price equal to the Warrant Price Per Share, subject to adjustment
as set forth therein;
(vi)
the Company shall have provided each Purchaser with the Company’s wire instructions on Company letterhead and executed
by the Company’s Chief Executive Officer or Chief Financial Officer, which wire instructions shall include information regarding
telephone number and name of the Person at the Company that a Purchaser may contact to confirm such wire instructions;
(vii)
the Registration Rights Agreement duly executed by the Company;
(viii)
a certificate of the Secretary of the Company, dated as of the Closing Date, in form
and substance reasonably satisfactory to the Lead Purchaser, certifying (i) the Certificate of Incorporation, as amended by the
Charter Amendment; (ii) the Bylaws; and (iii) resolutions of the Board of Directors (or an authorized committee thereof) approving this
Agreement and the transactions contemplated by this Agreement; and (iv) the satisfaction
of the closing conditions set forth in Section 2.3;
(ix)
a certificate evidencing the good standing of the Company in Delaware issued by the
Secretary of State of Delaware, as of the Closing Date, and a certificate evidencing the good standing of the Company in New Jersey issued
by the Secretary of State of New Jersey, as of the Closing Date;
(x)
a legal opinion of Company Counsel, in the form and substance reasonably satisfactory
to the Lead Purchaser executed by such counsel as of the Closing Date and addressed to the Purchasers; and
(xi)
any other customary documents or certificates reasonably requested by the Purchasers
which are reasonably necessary to give effect to the Closing.
(b)
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company, the following:
(i)
this Agreement duly executed by such Purchaser;
(ii)
the Subscription Amount for such Purchaser by wire transfer in immediately available funds to the account specified by the
Company in the wire instructions referred to above;
(iii)
the Registration Rights Agreement duly executed by such Purchaser; and
(iv)
an Internal Revenue Service Form W-9 (or any successor form or applicable Form W-8 in the case of a Purchaser that is not
a U.S. person), duly and validly executed by such Purchaser (or its nominee in accordance with the Purchaser’s delivery instructions).
2.3
Closing Conditions.
(a)
The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:
(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such date);
(ii)
all obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date shall
have been performed; and
(iii)
the delivery by the Purchasers of the items set forth in Section 2.2(b) of this Agreement.
(b)
The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:
(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such date);
(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date (including,
if applicable, pursuant to Section 4.6(c)) shall have been performed;
(iii)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;
(iv)
there shall have been no Material Adverse Effect since the date hereof; and
(v)
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Principal Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P.
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by
such service, on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities
nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude
in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Lead
Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.
ARTICLE
III
REPRESENTATIONS AND WARRANTIES
3.1
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties
to the Purchasers as of the date hereof and as of the Closing Date (except for the representations that speak as of a specific date, which
shall be made as of such date) except as otherwise described in the SEC Reports, which qualify these representations and warranties in
their entirety:
(a)
Organization and Qualification. The Company and each of its Subsidiaries is
an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization, with the requisite corporate power and authority to own or lease its properties and assets and to carry on its business
as currently conducted. Neither the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective
certificate of incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business
conducted or property owned or leased by it makes such qualification necessary, except where the failure to be so qualified or in good
standing, as the case may be, would not, individually or in the aggregate, have or, individually or in the aggregate, reasonably be expected
to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries,
taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”). As of the
date hereof, the Company has no Subsidiaries (if the Company has no Subsidiaries at the applicable time, all other references to the Subsidiaries
or any of them in the Transaction Documents shall be disregarded).
(b)
Authorization; Enforcement, Validity. (i) The Company has the requisite
corporate power and authority to enter into and perform its obligations under this Agreement and each of the other Transaction Documents
to which it is a party, and subject to receipt of the Requisite Stockholder Approval, to issue the Shares and Warrants in accordance with
the terms hereof and thereof, (ii) the execution and delivery of this Agreement and each of the other Transaction Documents to which
it is a party by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation,
the issuance of the Shares and Warrants pursuant to this Agreement, have been duly authorized and no further consent or authorization
is required by the Company, the Board of Directors or its stockholders other than the Requisite Stockholder Approval, (iii) this
Agreement has been and each of the other Transaction Documents shall be on the Closing Date, duly executed and delivered by the Company
and (iv) this Agreement constitutes, and each other Transaction Document upon its execution and delivery on behalf of the Company
shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their respective
terms, except (i) as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.
(c)
Capitalization. As of the date hereof, the authorized capital stock of the Company is set forth in the Company’s
most recent SEC Report, which was the Company’s Annual Report on Form 10-K for the year ended September 30, 2023. The Company’s
disclosure of its issued and outstanding capital stock in its most recent SEC Report containing such disclosure was accurate in all material
respects as of the date indicated in such SEC Report. All of the issued and outstanding shares of capital stock of the Company have been
duly authorized and validly issued, are fully paid and are non-assessable. None of the issued and outstanding shares of the Company were
issued in violation of any preemptive rights. As of the date hereof, and except as provided in any of the Transaction Documents: (i) no
shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company, (ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act
(except the Registration Rights Agreement and the registration rights agreement related to the Concurrent Private Placement), (v) there
are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company does
not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company
has furnished to the Purchasers true and correct copies of the Certificate of Incorporation and the Bylaws, and summaries of the terms
of all securities convertible into or exercisable for Common Stock which are not otherwise disclosed in the SEC Reports, if any, and copies
of any documents containing the material rights of the holders thereof in respect thereto that are not otherwise filed with the SEC Reports.
(d)
Issuance, Sale and Delivery of the Shares and Warrant Shares. Subject to the
receipt of the Requisite Stockholder Approval, the Shares are duly authorized and, when issued, delivered and paid for in accordance with
the applicable Transaction Documents, will be validly issued, fully paid and nonassessable and free and clear of all pledges, mortgages,
hypothecations, liens, encumbrances, security interest or other claim, including any statutory or contractual preemptive rights, resale
rights, and rights of refusal, or similar rights of any kind, except as may be described in the Transaction Documents, and the
Shares will be registered pursuant to Section 12 of the Exchange Act. Except for the rights described
in the Transaction Documents, no stockholder of the Company has any right to require the Company to register the sale of any capital stock
owned by such stockholder under the Registration Statement. Subject to the receipt of the Requisite Stockholder Approval, the Warrant
Shares will be duly and validly authorized and reserved for issuance and, upon exercise of the Warrants in accordance with their terms,
including the payment of any exercise price therefor, will be validly issued, fully paid and nonassessable and will be free and clear
of all liens, encumbrances and rights of refusal of any kind, except for restrictions on transfer set forth in the Transaction Documents
or imposed by applicable securities laws. Assuming the accuracy of the representations and warranties of the Purchasers in Section 3.2
hereof, the Warrant Shares will be issued in compliance with all applicable federal and state securities laws.
(e)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby, subject to receipt of the Requisite Stockholder Approval, will not
(i) result in a violation of the Certificate of Incorporation or the Bylaws or (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument that is material to the Company and its Subsidiaries, taken as
a whole, and to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Trading
Market applicable to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries
is bound or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Neither
the Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any certificate
of designation, preferences and rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter
or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any material
contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable
to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments that would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being
conducted, and shall not be conducted, in violation of any law, ordinance or regulation of any governmental entity, except for possible
violations, the sanctions for which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable state securities
laws and the rules and regulations of the Principal Trading Market, the Company is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency in order
for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance with the
terms hereof or thereof. Except as set forth elsewhere in this Agreement, all consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or prior to the Closing Date.
The Company has: (i) entered into an amendment of that certain Convertible Promissory Note, entered into as of December 22, 2023 in the
principal amount of $31,820,000 providing for an extension of the Maturity Date (as defined therein) to July 1, 2025 or later and (ii)
has obtained a waiver of the transactions contemplated herein such that they will not be deemed to constitute a “Restricted Issuance”
as defined in that certain Securities Purchase Agreement, dated as of December 22, 2022, by and between the Company and Streeterville
Capital, LLC.
(f)
SEC Reports; Financial Statements. The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required
by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective filing
dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder. None of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply
in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments. The interactive data in eXtensible Business Reporting Language included in the SEC
Reports fairly presents, in all material respects, the information called for and has been prepared in accordance with the Commission’s
rules and guidelines applicable thereto.
(g)
Absence of Certain Changes. Since the date of the latest audited financial statements included within the SEC Reports,
there has been no material adverse change in the business, properties, operations, financial condition or results of operations of the
Company or its Subsidiaries. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to any bankruptcy law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its
debts as they become due. No event, liability, fact, circumstance, occurrence or development (including, without limitation, any fundamental
transaction, change of control or similar event under any agreement (including, without limitation, any employment agreement)) has occurred
or exists, or is reasonably expected to occur or exist, with respect to the Company or its business, properties, operations, assets or
financial condition that, but for the passage of time, would be required to be disclosed by the Company under applicable securities laws
at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation
is made.
(h)
Absence of Change of Control. The execution, delivery and performance by the Company of this Agreement and the other
Transaction Documents to which it is a party, and the issuance of the Shares and Warrants on the Closing Date do not and will not result
in any fundamental transaction, change of control or similar event, the requirement to make any payment or adjustment or issue any shares
of Common Stock or other securities with respect to any fundamental transaction, change of control or similar event, or an event that
with the passage of time could result in a fundamental transaction, change of control or similar event under any agreement (including,
without limitation, any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase
Common Stock), other instrument or under any applicable law and regulations (including the rules of the Principal Trading Market).
(i)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to the Company’s Knowledge, threatened against or affecting
the Company, the Common Stock, the Warrants or any of the Company’s or its Subsidiaries’ officers or directors in their capacities
as such, which would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
(j)
Acknowledgment Regarding Purchaser’s Status. The Company acknowledges and agrees that each Purchaser is acting
solely in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of the Shares and Warrants. The Company further
represents to each Purchaser that the Company’s decision to enter into the Transaction Documents has been based solely on the independent
evaluation by the Company and its representatives and advisors.
(k)
No Aggregated Offering. Neither the Company, nor, to the Company’s Knowledge, any of its affiliates, nor any
Person acting on their behalf has, directly or indirectly, at any time within the past six (6) months, made any offers or sales of any
security or solicited offers to buy any security, under circumstances that would (i) adversely affect reliance by the Company on
Section 4(a)(2) for the exemption from registration for the transactions contemplated hereby or would require registration of the
Shares, the Warrants or the Warrant Shares under the Securities Act or (ii) cause this offering of the Shares, Warrants and Warrant
Shares to be aggregated with prior offerings by the Company in a manner that would require stockholder approval pursuant to the rules
of the Principal Trading Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Shares
and Warrants hereunder does not contravene the rules and regulations of the Principal Trading Market. Assuming the accuracy of the representations
and warranties of the Purchasers set forth in Section 3.2, the offer and sale of the Shares and Warrants to the Purchasers as contemplated
hereby is exempt from the registration requirements of the Securities Act.
(l)
Intellectual Property. The Company and the Subsidiaries own, possess, license or have other rights to use, or could
obtain on commercially reasonable terms, 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 for the conduct of their respective businesses
as now conducted 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 SEC Reports, (i) there are no rights of third parties to any such Intellectual Property owned by the Company and its Subsidiaries,
except for licenses granted in the ordinary course to third parties, or that could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect; (ii) to the Company’s Knowledge, there is no infringement by third parties of any
such Intellectual Property; (iii) there is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim
by others challenging the Company’s and its Subsidiaries’ rights in or to any such Intellectual Property, and the Company
is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) 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 or otherwise violate any patent, trademark, copyright, trade secret or other proprietary
rights of others; (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), or the equivalent in any other jurisdiction,
has been commenced against any patent or patent application described in the SEC Reports as being owned by or licensed to the Company;
and (vii) 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, except, in the case of any of clauses
(ii)-(vi) above, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or claim as would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(m)
Environmental Laws. The Company and its Subsidiaries (i) are and for the past three (3) years have been in compliance
with all applicable federal, state, local and foreign laws, rules, regulations, ordinances, codes and rules of common law, any judicial
or administrative interpretation thereof, including any judicial decisions or orders, consent decree or judgment relating to pollution,
human health or safety (to the extent relating to exposure to Hazardous Materials (as defined below)), the protection, cleanup or restoration
of the environment (including ambient air, surface water, groundwater, drinking water supply, land, surface or subsurface strata and natural
resources) or wildlife, or greenhouse gasses and climate change, including laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, generation, treatment, storage, disposal,
transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions,
judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have timely applied for or have received and, to the extent received, are and for the
past three (3) years (or sine their receipts for permits that have been received within the past three (3) years) have been in compliance
with all permits, licenses, authorizations, registrations or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; (iii) have not received written notice of any administrative, regulatory or judicial actions, suits, demands,
demand letters, claims, liens, investigations, litigation or proceedings against or targeting any of them that relate to any non-compliance
with, violation of, or actual or potential liability under any Environmental Law or that otherwise relate to any Hazardous Materials;
and (iv) to the Company’s Knowledge, there are not events or circumstances that would reasonably be expected to form the basis of
an order or to demand of any of them for the investigation, clean-up or remediation of any disposal or release of Hazardous Materials,
or result in an action, suit, demand, demand letter, claim, lien, investigation, litigation or proceeding against or targeting any of
them by any private party or governmental authority relating to Hazardous Materials or any Environmental Laws, except where such non-compliance
with Environmental Laws, failure to receive or non-compliance with required permits, licenses, authorizations, registrations or other
approvals, notice, or event or circumstance would not, individually or in the aggregate, a Material Adverse Effect.
(n)
Title to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all items of real
property owned by them and good and valid title to all personal property owned by them which is material to the business of the Company
and its Subsidiaries, free and clear of all mortgages, liens, encumbrances, claims and defects except such as do not materially affect
the value of such property and do not interfere in any material respect with the use made and proposed to be made of such property by
the Company and its Subsidiaries. Any real property and buildings held under lease by the Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere in any material respect with
the use made and proposed to be made of such property and buildings by the Company and its subsidiaries. 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 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 reasonably be expected to have a Material Adverse Effect. None of the Company or its
Subsidiaries has received from any governmental 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 reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.
(o)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not be reasonably expected to, individually or in the aggregate, have
a Material Adverse Effect.
(p)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating
to the revocation or modification of any Material Permit.
(q)
No Reliance. The Company has not relied upon the Lead Purchaser or legal counsel for the Lead Purchaser for any legal,
tax or accounting advice in connection with the offering and sale of the Securities.
(r)
Tax Status. The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns
required to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not,
singly or in the aggregate, reasonably be expected to have a Material Adverse Effect) and have paid all taxes required to be paid thereon
(except for cases in which the failure to file or pay would not reasonably be expected to, singly or in the aggregate, have a Material
Adverse Effect, or, except as currently being contested in good faith and for which reserves required by GAAP have been created in the
financial statements of the Company), and no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which,
individually or in the aggregate, has had (nor does the Company nor any of its Subsidiaries have any notice or knowledge of any tax deficiency
which would reasonably be expected to be determined adversely to the Company or its Subsidiaries and which would reasonably be expected
to have) a Material Adverse Effect.
(s)
Transactions With Affiliates. Except pursuant to the Transaction Documents and the Concurrent Private Placement,
to the Company’s Knowledge, none of the officers or directors of the Company, the Company’s stockholders, the officers or
directors of any stockholder of the Company, or any family member or affiliate of any of the foregoing, has either directly or indirectly
any interest in, or is a party to, any transaction that would be required to be disclosed as a related party transaction pursuant to Rule
404 of Regulation S-K promulgated under the Securities Act.
(t)
Application of Takeover Protections. The Company and the Board of Directors have taken or will take prior to the
Closing Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination (as defined
in the Delaware General Corporation Law (“DGCL”)), poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Certificate of Incorporation or the laws of the state of its incorporation, including
under Section 203 of the DGCL, which is or could become applicable to any Purchaser as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company’s issuance of the Shares and Warrants and any Purchaser’s ownership
of the Shares and Warrants.
(u)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents or any other agreements to be entered into by the Company and any Purchaser that, in each case, will be timely publicly disclosed
by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided any Purchaser or their respective
agents or counsel with any information that the Company believes constitutes or might constitute material, non-public information which
is not otherwise disclosed in the SEC Reports. The Company understands and confirms that each Purchaser will rely on the foregoing representation
in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers
regarding the Company, its business and the transactions contemplated by the Transaction Documents, including the disclosure schedules
to this Agreement, if any, is true and correct in all material respects. The Company acknowledges and agrees that no Purchaser either
makes or has made any representations or warranties with respect to the transactions contemplated by the Transaction Documents other than
those specifically set forth in Section 3.2 hereof.
(v)
Foreign Corrupt Practices. Neither the Company, nor to the Company’s Knowledge, any controlled Affiliate, director,
officer, employee, agent, representative or other Person acting on behalf of the Company, has taken or will take any action in furtherance
of an unlawful offer, payment, promise to pay, or authorization or approval of the payment, giving or receipt of money, property, gifts
or anything else of value, directly or indirectly, to any government official (including any officer or employee of a government
or government-owned or controlled entity or of a public international organization, or any Person acting in an official capacity for or
on behalf of any of the foregoing, or any political party or party official or candidate for political office) (a “Government
Official”) in order to influence official action, or to any person in violation of any applicable anti-corruption laws. The
Company and its controlled Affiliates have conducted their businesses in compliance with applicable anti-corruption laws and have instituted
and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws
and with the representations and warranties contained herein. Neither the Company nor any Subsidiary will use, directly or indirectly,
the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money,
or anything else of value, to any person in violation of any applicable anti-corruption laws. Neither the Company nor any Subsidiary has violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.
(w)
DTC Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities
Transfer (FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities
Transfer (FAST) Program.
(x)
Sarbanes-Oxley. The Company, including the Company’s directors or officers, in their capacities as such, are
in compliance in all material respects with all provisions of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley
Act”), and the rules and regulations promulgated thereunder, which are applicable to it as of the date hereof. The principal
executive officer and 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) have 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.
(y)
Certain Fees. The Company will use its reasonable best efforts to minimize any brokerage or finder’s fees or
commissions that are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser
shall not have any obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of
a type contemplated in this Section 3.1(y) that may be due in connection with the transactions contemplated by the Transaction Documents.
(z)
Investment Company. Neither the Company nor any Subsidiary is, and, following the consummation of the transaction
contemplated by this Agreement, will not be, an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission promulgated thereunder.
(aa)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange
Act, and the Company has taken no action designed to, or which to the Company’s Knowledge is likely to have the effect of, terminating
the registration of the Common Stock pursuant to the Exchange Act nor has the Company received any notification that the Commission is
currently contemplating terminating such registration. The Company has not, in the twelve months preceding the date hereof, received any
notice from any Person to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal
Trading Market. The Company is in compliance with all such listing and maintenance requirements.
(bb)
Accountants. The Company’s accountants (the “Accountants”) are set forth in the SEC Reports
and, to the Company’s Knowledge, such Accountants are an independent registered public accounting firm as required by the Securities
Act. To the Company’s Knowledge, the Accountants are not in violation of the auditor independence requirements of the Sarbanes-Oxley
Act.
(cc)
No Market Manipulation. The Company has not, and to the Company’s Knowledge, no Person acting on its behalf,
without giving effect to activities by the Placement Agents, has, (i) taken, directly or indirectly, any action designed to cause
or to result in the stabilization or manipulation of the price of any security of the Company to whether to facilitate the sale or resale
of any of the Shares, Warrants or the Warrant Shares or otherwise, (ii) sold, bid for, purchased, or, paid any compensation for soliciting
purchases of, any of the Shares or Warrants, or (iii) paid or agreed to pay to any Person any compensation for soliciting another
to purchase any other securities of the Company in violation of Regulation M promulgated under the Exchange Act.
(dd)
Shell Company Status. The Company is not currently, and has never been, an issuer identified in Rule 144(i)(1) under
the Securities Act.
(ee)
Consents and Permits. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
or any non-U.S. counterpart that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any
of its Subsidiaries (each such product, a “Product”), such Product is being manufactured, packaged, labeled, tested,
distributed, sold and/or marketed by the Company or its Subsidiaries in material compliance with all applicable Health Care Laws relating
to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory
practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports. There is no
pending, completed or, to the Company’s Knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative
or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company
or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity,
which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing
or packaging of, the testing of, the sale of, or the labeling and promotion of any Product, (ii) withdraws its approval of, requests the
recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any
Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production
at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company
or any of its Subsidiaries, and which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect. The properties, business and operations of the Company have been and are being conducted in all material respects in accordance
with all applicable Health Care Laws. The Company has not been informed by the FDA or any non-U.S. counterpart that the FDA or any non-U.S.
counterpart will prohibit the marketing, sale, license or use in the United States or in any other territory any product proposed to be
developed, produced or marketed by the Company or any Subsidiary. For purposes of this Agreement, “Health Care Laws”
means: (i) the Federal Food, Drug, and Cosmetic Act and the regulations promulgated thereunder; (ii) all applicable federal, state, local
and all applicable foreign health care related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42
U.S.C. Section 1320a-7b(b)), the U.S. Physician Payments Sunshine Act (42 U.S.C. § 1320a-7h), the U.S. Civil False Claims Act (31
U.S.C. Section 3729 et seq.), the criminal False Claims Law (42 U.S.C. § 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. Section 1320d et seq.), the exclusion
law (42 U.S.C. § 1320a-7), the civil monetary penalties law (42 U.S.C. § 1320a-7a), the statutes, regulations and directives
of applicable government funded or sponsored healthcare programs, and the regulations promulgated pursuant to such statutes; (iii) HIPAA,
as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. Section 17921 et seq.), and the regulations
promulgated thereunder and any state or non-U.S. counterpart thereof or other law or regulation the purpose of which is to protect the
privacy of healthcare information; (iv) Medicare (Title XVIII of the Social Security Act); (v) Medicaid (Title XIX of the Social Security
Act); and (vi) any and all other applicable health care laws and regulations.
(ff)
Regulatory Filings. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries has failed
to file with the applicable governmental authority (including the FDA or any foreign, federal, state or local governmental authority performing
functions similar to those performed by the FDA) any required filing, declaration, listing, registration, report or submission, 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 SEC Reports, all such filings, declarations, listings, registrations, reports or submissions were in material compliance
with applicable laws when filed and no deficiencies have been asserted by any applicable regulatory authority with respect to any such
filings, declarations, listings, registrations, reports or submissions, except for any deficiencies that, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect. The Company has operated and currently is, in all material respects,
in compliance with all applicable Health Care Laws. To the Company’s Knowledge, no studies, tests or trials not described in the
SEC Reports the results of which reasonably call into question in any material respect the results of the studies, tests and trials described
in the SEC Reports.
(gg)
Clinical Studies. The preclinical studies and tests and clinical trials described in the SEC Reports 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; the descriptions of such studies, tests and trials, and the results thereof, contained in the SEC Reports are accurate
and complete in all material respects; the Company is not aware of any tests, studies or trials not described in the SEC Reports, the
results of which reasonably call into question the results of the tests, studies and trials described in the SEC Reports; and the Company
has not received any written notice or correspondence from the FDA or any foreign, state or local governmental authority exercising comparable
authority or any institutional review board or comparable authority requiring the termination, suspension, clinical hold or material modification
of any tests, studies or trials.
(hh)
No Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has
conducted any general solicitation or general advertising, including methods described in Section 502(c) of Regulation D under the Securities
Act, in connection with the offer or sale of any Shares or Warrants, and neither the Company nor any person acting on its behalf offered
any of the Shares or Warrants in a manner involving a public offering under, or in a distribution in violation of, the Securities Act
or any state securities laws.
(ii)
Private Placement. Assuming the accuracy of each of the Purchasers’ representations and warranties set forth
in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Shares and Warrants by the Company
to the Purchasers as contemplated hereby.
(jj)
Accounting Controls and Disclosure Controls and Procedures. The Company and each of its Subsidiaries taken as a whole
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset 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. Since the end of the
Company’s most recent audited fiscal year, there has been (i) no material weakness in the Company’s internal control
over financial reporting (whether or not remediated) and (ii) 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.
The Company has established disclosure controls and procedures (as defined in the Exchange Act Regulations 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 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.
(kk)
Registration Rights. Other than the Purchasers pursuant to the Registration Rights Agreement and the purchasers in
the Concurrent Private Placement pursuant to the related registration rights agreement, no Person has any right to cause the Company or
any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.
(ll)
No Disqualification Events. With respect to the Shares and Warrants to be offered and sold hereunder in reliance
on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together,
“Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3). The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has
furnished to the Purchasers a copy of any disclosures provided thereunder.
(mm)
Other Covered Persons. Other than the Placement Agents, the Company is not aware of any person (other than any Issuer
Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with
the sale of any Shares or Warrants.
(nn)
Notice of Disqualification Events. The Company will notify the Purchasers and the Placement Agents in writing, prior
to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with
the passage of time, reasonably be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of
which it is aware.
(oo)
Other Agreements. Other than the Registration Rights Agreement, the Company has not entered into any side letter
or similar agreement with any Purchaser in connection with such Purchaser’s direct or indirect investment in the Company.
(pp)
Cybersecurity. The Company and its Subsidiaries’ information technology assets and equipment, computers, systems,
networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for,
and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries
as currently conducted, and, to the Company’s Knowledge, are free and clear of all material bugs, errors, defects, Trojan horses,
time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented commercially reasonable physical, technical
and administrative controls, policies, procedures, and safeguards designed to maintain and protect their material confidential information,
including Personal Data, and the integrity, availability, and security of all IT Systems used in connection with their businesses. “Personal
Data” means any information in the Company or its Subsidiaries’ possession, custody, or control that constitutes “personally
identifying information,” “personal data,” “personal information,” or similar term as defined by applicable
Privacy Laws. Except as disclosed in the SEC Reports, there have been no material breaches, violations, outages or unauthorized uses of
or accesses to IT Systems or Personal Data, except for those that have been remedied without material cost or liability to the Company
or its Subsidiaries or the duty to notify any other Person. The Company and its Subsidiaries are presently in material compliance with
all applicable binding judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, and,
to the Company’s Knowledge, contractual obligations governing the privacy and security of IT Systems and Personal Data.
(qq)
Compliance with Data Privacy Laws. The Company and its Subsidiaries are in material compliance with all applicable
state, federal, and European Union data privacy and security laws and regulations, including to the extent applicable, the European Union
General Data Protection Regulation (“GDPR”) (EU 2016/679) (collectively, the “Privacy Laws”). The
Company and its Subsidiaries have in place, and to the Company’s Knowledge, materially comply with, their internal policies and
procedures governing data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (the
“Policies”). The Company and its Subsidiaries have, to the Company’s Knowledge, made all disclosures to users
or customers required by applicable Privacy Laws, and none of such disclosures have, to the Company’s Knowledge, been inaccurate
or in violation of any applicable Privacy Laws in any material respect. Neither the Company nor any Subsidiary: (i) has received written
notice from a governmental or regulatory authority of any claims, investigations, inquiries or alleged violations of applicable Privacy
Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; or (ii) is currently
conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any applicable Privacy
Law.
(rr)
Money Laundering. 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, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any
Subsidiary, threatened in writing.
(ss)
Subsidiaries. All significant subsidiaries (collectively, the “Subsidiaries”), (as such term is
defined in Rule 1-02 of Regulation S-X promulgated by the Commission) are listed on Exhibit 21.1 of the Company’s Annual Report
on Form 10-K for the year ended September 30, 2023. 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. No Subsidiary is currently
prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s
capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such
Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.
(tt)
Labor Disputes and Matters. Neither the Company or any of its Subsidiaries employs any person represented by a union
or collective bargaining unit. No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists or,
to the Company’s Knowledge, is threatened which would reasonably be expected to have a Material Adverse Effect.
(uu)
ERISA. To the Company’s Knowledge, 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 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. Each of the material employee benefit plans of the Company complies in all material respects with
applicable law.
(vv)
Sanctions. (i) The Company represents that, neither the Company nor any of its Subsidiaries (collectively, the “Entity”)
or, any director, officer, or employee, or to the Company’s Knowledge, any agent, affiliate or representative acting on behalf of
the Entity, is a government, individual, or entity (in this Section, “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 the Treasury’s Office of Foreign Assets Control (“OFAC”),
the United Nations Security Council, the European Union, His Majesty’s Treasury, or other relevant sanctions authorities, including
designation on OFAC’s Specially Designated Nationals and Blocked Persons List, OFAC’s Foreign Sanctions Evaders List or other
similar applicable legislation or rules (as amended, collectively, “Sanctions”), nor
(B) located,
organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings with that country or territory
(currently, Cuba, Iran, North Korea, Syria, the Crimea Region of the Ukraine and the so-called Donetsk People’s Republic and the
so-called Luhansk People’s Republic) (the “Sanctioned Countries”).
(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 prohibiting such funding or facilitation or is a Sanctioned Country; or
(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 for the past 5 years, it has not engaged in, is not now engaging 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 prohibiting such dealings or transactions or is or was a Sanctioned Country.
(ww)
CFIUS. The Company does not engage in (a) the design, fabrication, development, testing, production or manufacture
of one (1) or more “critical technologies” within the meaning of the Defense Production Act of 1950, as amended, including
all implementing regulations thereof (the “DPA”); (b) the ownership, operation, maintenance, supply, manufacture, or
servicing of “covered investment critical infrastructure” within the meaning of the DPA (where such activities are covered
by column 2 of Appendix A to 31 C.F.R. Part 800); or (c) the maintenance or collection, directly or indirectly, of “sensitive personal
data” of U.S. citizens within the meaning of the DPA. The Company has no current intention of engaging in such activities in the
future.
(xx)
No Additional Representations. The Company acknowledges that each Purchaser makes no representation or warranty as
to any other matter whatsoever except as expressly set forth in Section 3.2 hereof or in any certificate delivered by such Purchaser pursuant
to this Agreement, and the Company has not relied on or been induced by such information or any other representations or warranties (whether
express or implied or made orally or in writing) not expressly set forth in Section 3.2 or in any certificate delivered by such Purchaser
pursuant to this Agreement. The Company acknowledges and agrees that, except for the representations and warranties expressly set forth
in Section 3.2 or in any certificate delivered by each Purchaser pursuant to this Agreement, (i) no Person has been authorized by such
Purchaser to make any representation or warranty relating to such Purchaser or otherwise in connection with the transactions contemplated
hereby, and if made, such representation or warranty must not be relied upon by the Company as having been authorized by such Purchaser,
and (ii) any materials or information provided or addressed to the Company or any of its Affiliates or representatives are not and shall
not be deemed to be or include representations or warranties of such Purchaser unless any such materials or information are the subject
of any express representation or warranty set forth in Section 3.2 of this Agreement or in any certificate delivered by such Purchaser
pursuant to this Agreement.
3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which
case they shall be accurate as of such date):
(a)
Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents
and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document
to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof,
will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except:
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.
(b)
No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement, the other Transaction Documents
to which it is a party, and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (i) result
in a violation of the organizational documents of the Purchaser, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Purchaser is a party, or (iii) result in a violation by such Purchaser of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Purchaser, except in
the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of the Purchaser to perform its obligations under the Transaction
Documents to which it is a party.
(c)
Understandings or Arrangements. Such Purchaser is acquiring the Securities, and upon exercise of the Warrants, will
acquire the Warrant Shares issuable upon exercise of the Warrants, as principal for its own account, for investment purposes only, and
has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting such Purchaser’s right to sell the Securities in compliance with applicable federal
and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser
understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling
such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention
of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or
indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation
of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Purchaser’s right
to sell the Securities pursuant to the Registration Statement(s) or otherwise in compliance with applicable federal and state securities
laws).
(d)
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is,
and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3) or (a)(7) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act. The Purchaser is not a registered broker-dealer registered under Section 15(a) of the Exchange Act, or a member of
FINRA or an entity engaged in the business of being a broker-dealer. The Purchaser is not affiliated with any broker-dealer registered
under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the business of being a broker-dealer.
(e)
Experience of the Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of its decision to purchase Securities pursuant to the Transaction
Documents. The Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to
the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment advice. The Purchaser has consulted
such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of the Securities. The Purchaser understands that the Placement Agents have acted solely as the agents of the Company in this placement
of the Securities and the Purchaser has not relied on the business or legal advice of the Placement Agents or any of their agents, counsel
or Affiliates in making its investment decision hereunder, and confirms that none of such Persons has made any representations or warranties
to the Purchaser in connection with the transactions contemplated by the Transaction Documents. To the Purchaser’s knowledge, the
Placement Agents and their respective directors, officers, employees, representatives and controlling persons have made no independent
investigation with respect to the Company or the Securities or the accuracy, completeness or adequacy of any information supplied to the
Purchaser by the Company and no disclosure or offering document has been prepared in connection with the offer and sale of the Securities
by any of the Placement Agents. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present
time, is able to afford a complete loss of such investment.
(f)
General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.
The Purchaser represents that it is not a person of the type described in Section 506(d) of Regulation D under the Securities Act
that would disqualify the Company from engaging in a transaction pursuant to Section 506 of Regulation D under the Securities Act.
Such Purchaser also represents that such Purchaser was contacted regarding the sale of the Securities by the Company (or an authorized
agent or representative of the Company) with which such Purchaser had a substantial pre-existing relationship.
(g)
Beneficial Ownership. Except with respect to any stockholder that owns in excess of 19.999% of the outstanding shares
of common stock on the date hereof, the purchase by the Purchaser of the Securities issuable to it at the Closing will not result in the
Purchaser (individually or together with any other Person with whom the Purchaser has identified, or will have identified, itself as part
of a “group” in a public filing made with the Commission involving the Company’s securities) acquiring, or obtaining
the right to acquire, in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction
basis that assumes that such Closing shall have occurred. The Purchaser does not presently intend to, alone or together with others, make
a public filing with the Commission to disclose that it has (or that it together with such other Persons have) acquired, or obtained the
right to acquire, as a result of such Closing (when added to any other securities of the Company that it or they then own or have the
right to acquire), in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction
basis that assumes that each Closing shall have occurred.
(h)
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as
it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering
of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company, its Subsidiaries
and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it
to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. The Purchaser
acknowledges and agrees that neither the Placement Agents nor any Affiliates of the Placement Agents have provided the Purchaser with
any information or advice with respect to the Securities nor is such information or advice necessary or desired. Neither the Placement
Agents nor any Affiliates have made or make any representation as to the Company or the quality of the Securities. In connection with
the issuance of the Securities to the Purchaser, neither the Placement Agents nor any of their Affiliates have acted as a financial advisor
or fiduciary to the Purchaser.
(i)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such
Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the
material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other than to other Persons
party to this Agreement or to such Purchaser’s representatives, including its officers, directors, partners, legal and other advisors,
employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with the
transactions contemplated by the Transaction Documents (including the existence and terms of the transactions contemplated hereby and
thereby).
(j)
Brokers and Finders. Other than the Placement Agents, with respect to the offer and sale of the Securities (which
placement agent fees are being paid by the Company), no Person will have, as a result of the transactions contemplated by this Agreement,
any valid right, interest or claim against or upon the Company or the Purchaser for any commission, fee or other compensation pursuant
to any agreement, arrangement or understanding entered into by or on behalf of the Purchaser.
(k)
No Governmental Review. The Purchaser understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the
investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.
(l)
Regulation M. The Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange Act may
apply to sales of Common Stock and other activities with respect to the Common Stock by the Purchaser.
(m)
Residency. The Purchaser’s residence (if an individual) or offices in which its investment decision with respect
to the Securities was made (if an entity) are located at the address immediately below the Purchaser’s name on its signature page
hereto.
(n)
Foreign Purchasers. If the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the
Code): (i) the Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction by such
Purchaser in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (A) the legal
requirements within its jurisdiction for the purchase of the Securities, (B) any foreign exchange restrictions applicable to such
purchase or acquisition, (C) any government or other consents that may need to be obtained, and (D) the income tax and other
tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities; and (ii) the
Purchaser’s subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities
or other laws of the Purchaser’s jurisdiction.
The Company acknowledges and
agrees that the representations contained in this Section 3.2 shall not modify, amend or affect the Purchasers’ right to rely on
the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any
other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation
of the transactions contemplated hereby.
ARTICLE
IV
OTHER AGREEMENTS OF THE PARTIES
4.1
Transfer Restrictions.
(a)
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser,
the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that
such transfer does not require registration of such transferred Securities under the Securities Act. Other than a transfer pursuant to
an effective registration statement or Rule 144, as a condition of transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and the Registration Rights Agreement and shall have the rights and obligations of the Purchaser under this
Agreement and the Registration Rights Agreement.
(b)
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
in the following form:
[NEITHER] THIS SECURITY [NOR THE SECURITIES
FOR WHICH THIS SECURITY IS [EXERCISABLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTION SET
FORTH HEREIN AND IN THE SECURITIES PURCHASE AGREEMENT, DATED JANUARY 22, 2024. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
(c)
Certificates evidencing the Shares and the Warrant Shares shall not be required to contain any legend (including the legend
set forth in Section 4.1(b) hereof): (i) while the Shares and Warrant Shares are eligible to be sold or transferred or are sold or transferred
pursuant to an effective registration statement (including the Registration Statement) covering the resale of such security under the
Securities Act, (ii) while such Shares or Warrant Shares are eligible for sale or transfer under Rule 144 or are sold or transferred pursuant
to Rule 144 or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer
Agent or the applicable Purchaser within two (2) Business Days if required by the Transfer Agent to effect the removal of the legend hereunder,
or if requested by such Purchaser, respectively, subject to the receipt of a duly executed certificate of representations of the Purchaser,
in form and substance reasonably satisfactory to the Company’s counsel. If all or any
portion of a Warrant is exercised at a time when there is an effective registration statement pursuant to which the applicable Warrant
Shares are eligible for transfer or resale, or if such Warrant Shares are eligible to be transferred or sold under Rule 144 and the Company
is then in compliance with the current public information required under Rule 144, or if the Warrant Shares may be sold under Rule 144
without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant
Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of
the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Warrant Shares
shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under this Section
4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement
Period (as defined below) following the delivery by the Purchaser to the Company or the Transfer Agent of a certificate representing Shares
or Warrant Shares, as applicable, issued with a restrictive legend (such date, the “Legend Removal Date”), together
with such other letters of representation as the Company may reasonably request, deliver or cause to be delivered to the Purchaser a certificate
representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or
give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Shares
or Warrant Shares, as applicable, subject to legend removal hereunder shall be transmitted by the Transfer Agent to the applicable Purchaser
by crediting the account of such Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.
The Company shall be responsible for the fees and expenses of its transfer agent, its legal counsel, and DTC fees required in connection
with the delivery of unlegended shares in accordance with the foregoing. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Trading Days, on the Principal Trading Market with respect to the Common
Stock as in effect on the date of delivery of a certificate representing Shares or Warrant Shares, as applicable, issued with a restrictive
legend.
(d)
Each Purchaser agrees with the Company that such Purchaser will sell any Securities pursuant to either the registration
requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if
Securities are sold pursuant to a Registration Statement, they will be sold in compliance with the plan of distribution set forth therein,
and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1
is predicated upon the Company’s reliance upon this understanding.
4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Shares and Warrant Shares, as applicable,
may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The
Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue
the Shares or Warrant Shares, as applicable, pursuant to the Transaction Documents, are unconditional and absolute and not subject to
any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against the applicable Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders
of the Company.
4.3
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale of the Securities or that would be integrated with the
offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require stockholder
approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent
transaction.
4.4
Securities Laws Disclosure; Publicity. The Company shall (a) at or around 8:00 a.m. New York City time on January
23, 2024, issue a press release disclosing all material terms of the transactions contemplated hereby; and (b) within the time required
by the Exchange Act, file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto. From and after the issuance
of the press release provided in clause (a), Purchaser and Purchaser’s affiliates, attorneys, agents and representatives shall not
be in possession of any material, non-public information received from the Company, any subsidiary or any of their respective representatives,
affiliates, officers, directors, or employees or agents, and including, without limitation, the Placement Agents, other than such Purchasers
who have consented in writing to the receipt of material, non-public information and have a written agreement with the Company to keep
such information confidential. The Company and the Placement Agents shall consult with each other in issuing any press releases with respect
to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any press release nor otherwise make any
such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior
consent of the Placement Agents, with respect to any press release of the Company, which consent shall not unreasonably be withheld or
delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with
prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name
of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without
the prior written consent of such Purchaser (not to be unreasonably withheld), except (a) as required by federal securities law in connection
with the filing of final Transaction Documents with the Commission and any registration statement contemplated by the Registration Rights
Agreement and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide
such Purchaser with prior notice of such disclosure permitted under this clause (b). The Company shall use its commercially reasonable
efforts to not, and to cause its officers, directors, affiliates, employees and agents, not to, provide any Purchaser (other than Purchasers
who are directors or officers of the Company) with any material, non-public information regarding the Company from and after the date
hereof without the express prior written consent of such Purchaser or as otherwise contemplated by the Transaction Documents; provided,
however, that such restriction shall not apply to the provision of such information to directors or officers of the Company who are, or
who are affiliated with, a Purchaser, and the Company makes no such covenant with respect to information that such affiliated director
or officer may provide to such Purchaser. For the avoidance of doubt, the Company shall not, and shall cause its officers, directors,
affiliates, employees and agents, not to, provide any Purchaser with any earnings information that constitutes material, non-public information
pursuant to the immediately preceding sentence without the express written consent of such Purchaser. To the extent that the Company delivers
any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that,
unless otherwise expressly agreed between such Purchaser and the Company, such Purchaser shall not have any duty of confidentiality to
the Company or any of its respective, officers, directors, affiliates, employees or agents with respect to, or a duty to the Company or
any of its officers, directors, affiliates, employees or agents not to trade on the basis of, such material, non-public information. The
Company understands and confirms that each of such Purchaser will rely (in their own discretion) on the foregoing in effecting transactions
in securities of the Company.
4.5
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any
other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of
receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.
4.6
Reservation and Listing of Securities; Requisite Stockholder Approval.
(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, including without
limitation the exercise of the Warrants, following the receipt of the Requisite Stockholder Approval.
(b)
The Company shall take all action necessary under applicable law to submit to its stockholders, in connection with its 2024
annual meeting of stockholders (the “2024 Stockholder Meeting”): (i) a proposal to amend the Certificate of Incorporation
(the “Charter Amendment”) to increase the number of authorized but unissued shares of Common Stock to at least the
Required Minimum (the “Charter Amendment Proposal”), (ii) a proposal to authorize the Board of Directors to implement
a reverse stock split of the Common Stock (the “Reverse Stock Split”) within a range of between 1-for-10 to 1-for-25
(the “Reverse Stock Split Proposal”), (iii) a proposal to approve the issuance of the Securities under relevant Nasdaq
rules (the “Nasdaq Proposal,” and together with the Reverse Stock Split Proposal and the Charter Amendment Proposal,
the “Proposals”). The Company shall take reasonable measures to ensure that all proxies solicited in connection with
the 2024 Stockholder Meeting are solicited in compliance with applicable law. Notwithstanding anything to the contrary contained herein,
if on the date of the 2024 Stockholder Meeting, or a date preceding the date on which the 2024 Stockholder Meeting is scheduled, the Company
reasonably believes that (a) it will not receive proxies sufficient to obtain the approval of the holders of Common Stock for the Proposals
(the “Requisite Stockholder Approval”), whether or not a quorum would be present or (b) it will not have sufficient
shares of Common Stock represented (whether in person or by proxy) to constitute a quorum necessary to conduct the business of the 2024
Stockholder Meeting, the Company may postpone or adjourn, or make one or more successive postponements or adjournments of, the 2024 Stockholder
Meeting as long as the date of the 2024 Stockholder Meeting occurs on or before April 15, 2024 (the “Outside Date”).
The Company agrees that, subject to the Board of Directors’ compliance with its fiduciary duties under applicable law, (a) the Board
of Directors shall recommend that the holders of Common Stock vote to approve the Proposals and shall use commercially reasonable efforts
to solicit such approval within the time frame set forth in this Section 4.6 and (b) the definitive proxy statement relating to the 2024
Stockholder Meeting shall include a statement to the effect that the Board of Directors recommends that the Company’s stockholders
vote to approve the Proposals. Concurrent with the entry into this Agreement, the Company shall have entered into Voting and Support Agreements
in the form attached hereto as Exhibit C with all members of the Board of Directors, as well as any investment companies that such
members of the Board represent that hold shares in the Company, providing for their commitment to vote affirmatively on the Proposals
with all of the voting power associated with the shares of Common Stock beneficially held by such Persons. Subject to receipt of the requisite
stockholder approval of the Reverse Stock Split Proposal, the Company shall implement the Reverse Split Stock Split within five (5) Trading
Days following the 2024 Stockholder Meeting.
(c)
The Company shall: (i) in the time and manner required by the Principal Trading Market, prepare and file with such Trading
Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on
the date of such application, (ii) use its commercially reasonable efforts to take all steps necessary to cause such shares of Common
Stock to be approved for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence
of such listing or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required
Minimum on such date on such Trading Market or another Trading Market. The Company agrees to maintain the eligibility of the Common Stock
for electronic transfer through DTC or another established clearing corporation, including, without limitation, by timely payment of fees
to DTC or such other established clearing corporation in connection with such electronic transfer.
(d)
So long as any Purchaser holds any securities of the Company contemplated by this Agreement, the Company shall make all
filings with the Commission required under the Exchange Act in the time and manner required by the Commission.
4.7
Certain Transactions and Confidentiality. Each Purchaser covenants that neither it, nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company’s
securities during the period commencing with the execution of this Agreement and ending on the date and such time that the transactions
contemplated by this Agreement are first publicly announced pursuant to Section 4.4. Each Purchaser further covenants that neither it,
nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any Short Sales of any of the Company’s
securities during the period that commences on the fourteenth (14th) calendar day preceding the date of the 2024 Stockholder
Meeting and ends on the Pricing Date (the “Pre-Pricing Period”). Each Purchaser, severally and not jointly with the
other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company
pursuant to Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of the transactions contemplated
hereby. The Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that
it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this
Agreement are first publicly announced pursuant to Section 4.4 (provided that each Purchaser agrees to the restrictions on Short Sales
during the Pre-Pricing Period described above), (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in
any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to Section 4.4 (provided that each Purchaser agrees to the restrictions on trading
during the Pre-Pricing Period described above) and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the
securities of the Company to the Company or its Subsidiaries after the date and time of the filing of the Form 8-K as described in Section
4.4 (provided that each Purchaser agrees to the restrictions on trading during the Pre-Pricing Period described above). Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate
portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this
Agreement. For the avoidance of doubt, this Section 4.7 does not supersede or replace any confidentiality obligations that such Purchaser
may have to the Company pursuant to any prior confidentiality agreement entered between such Purchaser and the Company and such confidentiality
agreement remains in effect in accordance with its terms.
4.8
Exercise Procedures. The form of Notice of Exercise included in the Warrants sets forth the totality of the procedures
required of the Purchasers in order to exercise the Warrants. Without limiting the preceding sentence, no ink-original Notice of Exercise
shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required
in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required of any Purchaser to
exercise its Warrants. The Company shall honor exercise of the Warrants and shall deliver Warrant Shares in accordance with the terms,
conditions and time periods set forth in the Transaction Documents.
4.9
Limitations on Offerings. Prior to the Closing Date, the Company will not offer or sell any Common Stock or Common
Stock Equivalents, or engage in any discussions or negotiations with any third parties regarding any such transactions, other than: (a) the
issuance of Common Stock or Common Stock Equivalents in the Concurrent Private Placement, (b) the issuance of Common Stock or Common Stock
Equivalents to employees, officers, directors, consultants or vendors of the Company pursuant to any stock or option plan duly adopted
for such purpose, by the Board of Directors or a majority of the members of a committee of directors established for such purpose, or
(c) the issuance of securities upon the exercise or exchange of or conversion of any securities exercisable or exchangeable for
or convertible into Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended
since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities.
ARTICLE
V
MISCELLANEOUS
5.1
Termination. This Agreement will automatically terminate upon the day immediately following the Outside Date, in
the event that the Requisite Stockholder Approval is not received by the Company on or prior to the Outside Date. In addition, this Agreement
may be terminated by the Company or each Purchaser with respect to itself if the Closing has not been consummated on or before the fifteenth
(15th) Trading Day following receipt of the Requisite Stockholder Approval; provided, however, that (A) no such termination
will (i) affect the right of any party to sue for any breach by any other party (or parties), (ii) relieve any party from liability for
any willful misconduct or breach of this Agreement, fraud or knowing misrepresentation or omission, and (B) the provisions of this Section
5.1 (termination) and Section 5.2 (fees and expenses) shall remain in full force and effect and survive any termination of this Agreement.
In the event of termination: (i) if applicable, the Company shall promptly return the Purchaser’s Subscription Amount to each respective
Purchaser by wire transfer of United States dollars in immediately available funds to the account specified by each Purchaser, and any
book entries for the Shares and Warrants shall be deemed cancelled, and (ii) the Company shall reimburse each Purchaser for its reasonable
and documented fees and expenses of legal counsel incurred in connection with the transactions contemplated herein (net of any prior reimbursement
under Section 5.2), provided that such amount shall not exceed $5,000 per Purchaser.
5.2
Fees and Expenses. At the Closing, the Company shall pay the fees and expenses of legal counsel for (i) the Lead
Purchaser, provided that such amount shall not exceed $25,000, and (ii) GMS, provided that such amount shall not exceed $80,000. Except
as set forth in the preceding sentence or as expressly set forth in the Transaction Documents to the contrary (including Section 5.1),
each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Notwithstanding the previous
sentence, the Company shall pay all reasonable and documented fees and expenses incurred in connection with the Transaction Documents,
including any Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter
delivered by the Company and any exercise notice delivered by any Purchaser, if applicable), stamp taxes and other taxes and duties levied
in connection with the delivery of any Securities to the Purchasers.
5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
5.4
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication
is delivered via facsimile at the facsimile number or email attachment at the e-mail address as set forth on the signature pages attached
hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such
notice or communication is delivered via facsimile or email attachment at the facsimile number or e-mail address as set forth on the signature
pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the
signature pages attached hereto.
5.5
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed, in the case of an amendment, by the Company and the Purchasers holding at least a majority of the Shares and
Warrant Shares underlying the Warrants sold or to be sold at the Closing and, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought; provided, that any waiver, modification, supplement or amendment of Article II –
related to the purchase and sale, including price, Sections 4.1(c) (legend removal assistance), 4.4 (disclosures), 4.6 (reservation and
listing of securities), 5.1 (termination), 5.2 (fees and expenses), 5.5 (amendments; waivers) and 5.15 (remedies) shall require a written
instrument signed by the Company and each Purchaser. Furthermore, if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser, the consent of such disproportionately impacted Purchaser shall also be required. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately,
materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the
other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any amendment effected in accordance with
this Section 5.5 shall be binding upon all Purchasers and any subsequent holder of Securities and the Company.
5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not
be deemed to limit or affect any of the provisions hereof.
5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent
of the Lead Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom the Purchaser assigns or transfers any Securities, provided, that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchaser.”
5.8
Third-Party Beneficiaries. The Placement Agents shall be the third party beneficiaries of the representations and
warranties of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement is intended
for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person.
5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (unless stated to the otherwise in
such Transaction Document) (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party
hereby irrevocably submits to the 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 herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions
of the Transaction Documents, then the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
Action or Proceeding.
5.10
Survival and Indemnification.
(a)
Subject to the applicable statute of limitations, the representations and warranties contained herein hereto shall survive the Closing
and the delivery of the Securities.
(b) The
Company agrees to indemnify and hold harmless each Purchaser and its Affiliates, and their respective directors, officers, trustees, members,
managers, employees, investment advisers and agents, to the fullest extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities and expenses, joint or several, (including without limitation reasonable and documented attorney fees and
disbursements and other documented out-of-pocket expenses reasonably incurred in connection with investigating, preparing or defending
any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) to which such Person may become subject as
a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under
the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by such Person solely to the extent
such amounts have been finally judicially determined not to have resulted from such Person’s fraud or willful misconduct.
(c) Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate
counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person
unless (a) the indemnifying party has agreed in writing to pay such fees or expenses, (b) the indemnifying party shall have failed to
assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect
to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel
at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf
of such person); and provided, further, that the failure of any indemnified party to give written notice as provided herein shall not
relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely
affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not,
in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys
at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party, which consent
shall not be unreasonably withheld, conditioned or delayed, consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation. No indemnified party will, except with the consent of the indemnifying party, which consent shall
not be unreasonably withheld, conditioned or delayed, consent to entry of any judgment or enter into any settlement.
5.11
Execution. This Agreement may be executed in counterparts, each of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party,
it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.
5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by
such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.
5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such
Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that, in the case
of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock subject to
any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company
for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant
(including, issuance of a replacement warrant certificate evidencing such restored right).
5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case
of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.
5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, each of the Purchasers and the Company will be entitled to seek specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.
5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law
(including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent
of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force
and effect as if such payment had not been made or such enforcement or setoff had not occurred.
5.17
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the
performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in
any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any
way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each
Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional
party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation
of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the
convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood
and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser,
solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.
5.18
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the
next succeeding Business Day.
5.19
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition,
each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the
date of this Agreement.
5.20
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
5.21
Exculpation of the Placement Agents. Each party hereto agrees, for the express benefit of the Placement Agents, their
respective affiliates and representatives, that, in connection with the Transaction Documents and the transactions contemplated thereby:
(a) Neither the Placement Agents
nor any of their respective affiliates or any of their representatives (i) shall be liable for any improper payment made in accordance
with the information provided by the Company; (ii) make any representation or warranty, or has any responsibilities as to the validity,
accuracy, value or genuineness of any information, certificates or documentation delivered by or on behalf of the Company pursuant to
this Agreement or the other Transaction Documents or in connection with any of the transactions contemplated by this Agreement or the
other Transaction Documents, including any offering or marketing materials; or (iii) shall be liable (x) for any action taken, suffered
or omitted by any of them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred
upon them by this Agreement or any other Transaction Document or (y) for anything which any of them may do or refrain from doing in connection
with this Agreement or any other Transaction Document, except for such party’s own gross negligence, willful misconduct or bad faith.
(b) The Placement Agents, their
respective affiliates and representatives shall be entitled to rely on, and shall be protected in acting upon, any certificate, instrument,
opinion, notice, letter or any other document or security delivered to any of them by or on behalf of the Company.
(Signature Pages Follow)
IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.
OUTLOOK THERAPEUTICS, INC. |
|
Address for Notice:
Outlook Therapeutics, Inc.
485 Route 1 South
Building F, Suite 320
Iselin, New Jersey 08830 |
|
|
|
Email: |
By: |
|
|
|
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Name: Lawrence Kenyon |
|
|
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Title: Chief Financial Officer |
|
|
With a copy to (which shall not constitute
notice):
Cooley LLP
55 Hudson Yards
New York, New York 10001
Attention: Yvan-Claude Pierre
Email: ypierre@cooley.com
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOR THE PURCHASER FOLLOWS]
[Signature Page to the Securities Purchase Agreement]
IN WITNESS WHEREOF, the undersigned
have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.
________________________
By: ________________________
Its: ________________________
Name of Authorized Signatory: ____________________
Title of Authorized Signatory: ____________________
Email Address of Authorized Signatory: ____________________
Address for Notice to Purchaser: ____________________
-____________________
-____________________
With a copy to (which shall not constitute
notice):
Shearman & Sterling LLP
800 Capitol Street, Suite 2200
Houston, Texas 77002
Attention: Taylor Landry
Email: Taylor.Landry@Shearman.com
The Purchaser’s investment decision was made by an investment committee of individuals who reside in various states, including: |
|
Aggregate Subscription Amount: |
|
Shares of Common Stock: |
|
Warrant Shares: |
□ 4.99% or □ 9.99% or □19.99% or □
N/A
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Purchase Price of Common Stock and Warrants: |
|
Delivery Instructions, if different from above:
c/o:
Street:
City/State/Zip:
Attention:
Telephone No.:
[Signature Page to the Securities Purchase Agreement]
EXHIBIT A
Registration Rights Agreement
[Filed separately.]
EXHIBIT B
Form of Warrant
[Filed separately.]
EXHIBIT C
Form of Support Agreement
[Filed separately.]
Exhibit 10.2
OUTLOOK THERAPEUTICS,
INC.
SUPPORT AGREEMENT
THIS
SUPPORT AGREEMENT (this “Agreement”), dated as of January 22, 2024 is made by and among Outlook Therapeutics, Inc.,
a Delaware corporation (the “Company”), and the stockholder identified on the signature page hereto (“Stockholder”),
a holder of shares of common stock, $.01 par value (the “Shares”) of the Company.
WHEREAS,
the Company and certain purchasers, including the Stockholder, have entered into a Securities Purchase Agreement, dated of even date herewith
(the “Purchase Agreement”), which contemplates, among other items the sale of Shares and Warrants to purchase Shares
to the purchasers;
WHEREAS,
under the Purchase Agreement, the Company is obligated to submit to its stockholders at the 2024 Stockholder Meeting: (i) a proposal to
amend the Certificate of Incorporation (the “Charter Amendment”) to increase the number of authorized but unissued
shares of Common Stock to at least the Required Minimum (the “Charter Amendment Proposal”), (ii) a proposal to authorize
the Board of Directors to implement a reverse stock split of the Common Stock, within a range approved by the stockholders, at the sole
discretion of the Board of Directors if it deems such a reverse stock split to be necessary to maintain compliance with the continued
listing requirements of the Principal Trading Market (the “Reverse Stock Split Proposal”), and (iii) a proposal to
approve the issuance of the Securities under relevant Nasdaq rules (the “Nasdaq Proposal,” and together with the Reverse
Stock Split Proposal and the Charter Amendment Proposal, the “Proposals”);
WHEREAS,
the Stockholder beneficially owns and has sole or shared voting power with respect to the number of Shares indicated opposite the Stockholder’s
name on Schedule 1 attached hereto;
WHEREAS,
as an inducement and a condition to the willingness of the Company to enter into the Purchase Agreement, the Stockholder has agreed to
enter into and perform this Agreement; and
WHEREAS,
all capitalized terms used in this Agreement without definition herein shall have the meanings ascribed to them in the Purchase Agreement.
NOW,
THEREFORE, in consideration of, and as a condition to, the Company entering into the Purchase Agreement, the Stockholder and the Company
agree as follows:
1.
Agreement to Vote Shares. The Stockholder agrees that, prior to the Expiration Date (as defined in Section 2 below),
at any meeting of the stockholders of the Company or any adjournment or postponement thereof, or in connection with any written consent
of the stockholders of the Company, with respect to any of the Proposals, the Stockholder shall:
(a)
appear at such meeting or otherwise cause the Shares and any New Shares (as defined in Section 3 below) to be counted as
present thereat for purposes of calculating a quorum;
(b)
from and after the date hereof until the Expiration Date, vote (or cause to be voted), or deliver a written consent (or cause a
written consent to be delivered) covering all of the Shares and any New Shares that Stockholder shall be entitled to so vote: (i) in
favor of (A) each of the Proposals; (ii) against any proposal, or any agreement, transaction or other matter that is intended to,
or would reasonably be expected to, impede, interfere with, delay, postpone, discourage or materially and adversely affect the transactions
contemplated by the Purchase Agreement; and (iii) to approve any proposal to adjourn or postpone the meeting to a later date, if
there are not sufficient votes for the approval of the Proposals on the date on which such meeting is held. Stockholder shall not take
or commit or agree to take any action inconsistent with the foregoing.
2.
Expiration Date. As used in this Agreement, the term “Expiration Date” shall mean the earlier to occur
of (a) receipt of stockholder approval of the Proposals, (b) the date after the Outside Date or (c) the mutual written agreement
of the parties to terminate this Agreement. In the event of termination of this Agreement pursuant to this Section 2, this Agreement
will become null and void and of no effect with no liability on the part of any party hereto; provided, however, that (i)
this Section 2 and Sections 11 to 20 shall survive any such termination, and (ii) no such termination will relieve any party
hereto from any liability for any fraud or intentional breach of this Agreement occurring prior to such termination.
3.
Additional Acquisitions. The Stockholder agrees that any shares of capital stock or other equity securities of the Company
that the Stockholder acquires or with respect to which the Stockholder otherwise acquires sole or shared voting power (including any proxy)
after the execution of this Agreement and prior to the Expiration Date, including, without limitation, by gift, succession, in the event
of a stock split or as a dividend or distribution of any Shares (“New Shares”), shall be subject to the terms and conditions
of this Agreement to the same extent as if they constituted the Shares.
4.
Representations and Warranties of Stockholder. The Stockholder hereby represents and warrants to the Company as follows:
(a)
(i) the Stockholder is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is
incorporated, organized or constituted, (ii) the Stockholder has all necessary power and authority to execute and deliver this Agreement,
to perform the Stockholder’s obligations hereunder and to consummate the transactions contemplated hereby, and (iii) the execution
and delivery of this Agreement, performance of the Stockholder’s obligations hereunder and the consummation of the transactions
contemplated hereby by the Stockholder have been duly authorized by all necessary action on the part of the Stockholder and no other proceedings
on the part of the Stockholder are necessary to authorize this Agreement, or to consummate the transactions contemplated hereby;
(b)
this Agreement has been duly executed and delivered by or on behalf of the Stockholder and, to the Stockholder’s knowledge
and assuming this Agreement constitutes a valid and binding agreement of the Company, constitutes a valid and binding agreement with respect
to the Stockholder, enforceable against the Stockholder in accordance with its terms, except as enforcement may be limited by general
principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting creditors’
rights and remedies generally;
(c)
the Stockholder beneficially owns the number of Shares indicated opposite the Stockholder’s name on Schedule 1,
and has sole or shared, and otherwise unrestricted, voting power with respect to such Shares;
(d)
to the knowledge of the Stockholder, the execution and delivery of this Agreement by the Stockholder does not, and the performance
by the Stockholder of his, her or its obligations hereunder and the compliance by the Stockholder with any provisions hereof will not,
violate or conflict with, result in a material breach of or constitute a default (or an event that with notice or lapse of time or both
would become a material default) under, any agreement, instrument, note, bond, mortgage, contract, lease, license, permit or other obligation
or any order, arbitration award, judgment or decree to which the Stockholder is a party or by which the Stockholder is bound, or any law,
statute, rule or regulation to which the Stockholder is subject or, any bylaw or other organizational document of the Stockholder; except
for any of the foregoing as would not reasonably be expected to prevent or delay the performance by the Stockholder of its obligations
under this Agreement in any material respect;
(e)
the execution and delivery of this Agreement by the Stockholder does not, and the performance of this Agreement by the Stockholder
does not and will not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental
authority or regulatory authority by the Stockholder except for applicable requirements, if any, of the Exchange Act, and except where
the failure to obtain such consents, approvals, authorizations or permits, or to make such filings or notifications, would not prevent
or delay the performance by the Stockholder of his, her or its obligations under this Agreement in any material respect; and
(f)
as of the date of this Agreement, there is no legal proceeding pending or, to the knowledge of the Stockholder, threatened against
the Stockholder that would reasonably be expected to prevent or delay the performance by the Stockholder of his, her or its obligations
under this Agreement in any material respect.
5.
No Legal Actions. The Stockholder will not in its capacity as a stockholder of the Company bring, commence, institute, maintain,
prosecute or voluntarily aid any legal proceeding that (i) challenges the validity or seeks to enjoin the operation of any provision of
this Agreement or (ii) alleges that the execution and delivery of this Agreement by the Stockholder, either alone or together with the
other voting agreements and proxies to be delivered in connection with the execution of the Purchase Agreement constitutes a breach of
any fiduciary duty of the Company board or directors or any member thereof.
6.
Other Remedies; Specific Performance. Except as otherwise provided herein,
any and all remedies herein expressly conferred upon a party will be deemed cumulative with, and not exclusive of, any other remedy conferred
hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other
remedy. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof without
the need of posting bond in any court of the United States or any state having jurisdiction, this being in addition to any other remedy
to which they are entitled at law or in equity.
7.
Directors and Officers. This Agreement shall apply to the Stockholder solely in the Stockholder’s capacity as
a stockholder of the Company and not in the Stockholder’s capacity as a director, officer or employee of the Company or any of its
Subsidiaries or in the Stockholder’s capacity as a trustee or fiduciary of any employee benefit plan or trust. Notwithstanding
any provision of this Agreement to the contrary, nothing in this Agreement shall (or require Stockholder to attempt to) limit or restrict
a director and/or officer of the Company in the exercise of his or her fiduciary duties as a director and/or officer of the Company or
in his or her capacity as a trustee or fiduciary of any employee benefit plan or trust or prevent or be construed to create any obligation
on the part of any director and/or officer of the Company or any trustee or fiduciary of any employee benefit plan or trust from taking
any action in his or her capacity as such director, officer, trustee and/or fiduciary.
8.
Further Assurances. The Stockholder shall, from time to time, execute and deliver, or cause to be executed and delivered,
such additional or further consents, documents and other instruments as the Company may reasonably request for the purpose of effectively
carrying out the transactions contemplated by this Agreement and the Purchase Agreement.
9.
Disclosure. The Stockholder hereby agrees that the Company may publish and disclose in the proxy statement for the 2024
Annual Meeting (“Proxy Statement”) and in any other Exchange Act report or other documents filed with any regulatory
authority in connection with the Purchase Agreement and any related documents filed with such regulatory authority and as otherwise required
by law, the Stockholder’s identity and ownership of Shares and the nature of the Stockholder’s commitments, arrangements and
understandings under this Agreement and may further file this Agreement as an exhibit to the Proxy Statement or in any other filing made
by the Company as required by law, including with the SEC or other regulatory authority, relating to the Purchase Agreement, all subject
to prior review and a reasonable opportunity to comment by Stockholder’s counsel. Prior to the Closing, the Stockholder shall not,
and shall use its reasonable best efforts to cause its representatives not to, directly or indirectly, make any press release, public
announcement or other public communication without the prior written consent of the Company, provided that the foregoing shall
not limit or affect any actions taken by the Stockholder (or any affiliated officer or director of the Stockholder) that would be permitted
to be taken by the Stockholder or the Company pursuant to the Purchase Agreement; provided, further, that the foregoing
shall not affect any actions of Stockholder the prohibition of which would be prohibited under applicable law and shall not prohibit Stockholder
or its affiliates from making any publicly-available filings required by applicable law, regulation or legal process.
10.
Notice. All notices and other communications hereunder shall be in writing and shall be given in the manner provided in
Section 5.4 of the Purchase Agreement.
11.
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction. If a final judgment of a court of competent jurisdiction
declares that any term or provision of this Agreement is invalid or unenforceable, the parties hereto agree that the court making such
determination shall have the power to limit such term or provision, to delete specific words or phrases or to replace such term or provision
with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power
granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid
and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid
or unenforceable term or provision.
12.
Assignability. This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of, the
parties hereto and their respective successors and assigns; provided, however, that neither this Agreement nor any of a party’s
rights or obligations hereunder may be assigned or delegated by such party without the prior written consent of the other parties hereto,
and any attempted assignment or delegation of this Agreement or any of such rights or obligations by such party without the other party’s
prior written consent shall be void and of no effect. Nothing in this Agreement, express or implied, is intended to or shall confer upon
any Person (other than the parties hereto) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
13.
No Waivers. No waiver of any provisions hereof by any party shall be deemed a waiver of any other provisions hereof by any
such party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such party.
14.
Applicable Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the state
of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. In any action or legal
Proceeding between any of the parties arising out of or relating to this Agreement, each of the parties: (i) irrevocably and unconditionally
consents and submits to the exclusive jurisdiction and venue of the Court of Chancery of the state of Delaware or to the extent such court
does not have subject matter jurisdiction, the Superior Court of the State of Delaware or the United States District Court for the District
of Delaware, (ii) agrees that all claims in respect of such action or legal proceeding shall be heard and determined exclusively
in accordance with clause (i) of this Section 14, (iii) waives any objection to laying venue in any such action or legal
proceeding in such courts, (iv) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over
any party, and (v) agrees that service of process upon such party in any such action or legal proceeding shall be effective if notice
is given in accordance with Section 10 of this Agreement. Each party irrevocably
consents to service of process inside or outside the territorial jurisdiction of the courts referred to in this Section 14
in the manner provided for notices in Section 10.
Nothing in this Agreement will affect the right of any party to serve process in any other manner permitted by applicable law.
15.
Waiver of Jury Trial. The parties hereto hereby waive any right to trial by jury with respect to any action or Legal Proceeding
related to or arising out of this Agreement, any document executed in connection herewith and the matters contemplated hereby and thereby.
16.
Entire Agreement; Counterparts; Exchanges by Facsimile. This Agreement and the other agreements referred to in this Agreement
constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, among or between any of
the parties with respect to the subject matter hereof and thereof. This Agreement may be executed in several counterparts, each of which
shall be deemed an original and all of which shall constitute one and the same instrument. The exchange of a fully executed Agreement
(in counterparts or otherwise) by all parties by facsimile or electronic transmission via “.pdf” shall be sufficient to bind
the parties to the terms and conditions of this Agreement.
17.
Amendment. This Agreement may not be amended, supplemented or modified, and no provisions hereof may be modified or waived,
except by an instrument in writing signed on behalf of each party hereto.
18.
Fees and Expenses. Except as otherwise specifically provided herein, the Purchase Agreement or any other agreement contemplated
by the Purchase Agreement to which a party hereto is a party, each party hereto shall bear its own expenses in connection with this Agreement
and the transactions contemplated hereby.
19.
Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the
part or behalf of the parties. Each of the parties hereby acknowledges, represents and warrants that (i) it has read and fully understood
this Agreement and the implications and consequences thereof; (ii) it has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of its own choice; and (iii) it is fully aware of the legal and binding effect of this Agreement.
20.
Construction.
(a)
For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the
masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and
the neuter gender shall include masculine and feminine genders.
(b)
The parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party
shall not be applied in the construction or interpretation of this Agreement.
(c)
As used in this Agreement, the words “include” and “including,” and variations thereof, shall not be deemed
to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”
(d)
Except as otherwise indicated, all references in this Agreement to “Sections,” and “Schedules” are intended
to refer to Sections of this Agreement and Schedules to this Agreement, respectively.
(e)
The underlined headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of
this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.
[Remainder of
Page has Intentionally Been Left Blank]
|
EXECUTED
as of the date first above written.
[_________________________]
Signature:
|
Signature Page
to Support Agreement
EXECUTED
as of the date first above written.
|
OUTLOOK
THERAPEUTICS, INC.
By:
Name:
Title:
|
Signature Page
to Support Agreement
SCHEDULE 1
Name and Address of Stockholder |
Shares of Common Stock |
|
|
Exhibit 10.3
REGISTRATION RIGHTS AGREEMENT
This Registration Rights
Agreement (this “Agreement”) is made and entered into as of January 22, 2024, between Outlook Therapeutics,
Inc., a Delaware corporation (the “Company”), and each of the several investors signatory hereto (each, an “Investor”
and, collectively, the “Investors”).
This Agreement is made pursuant
to the Securities Purchase Agreement, dated on or about the date hereof, between the Company and the Investors (the “Purchase
Agreement”).
The Company and each Investor
hereby agree as follows:
Section
1.
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall
have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following
meanings:
“Advice”
has the meaning set forth in Section 6(c).
“Allowed Delay”
means a period for no more than 30 consecutive calendar days or more than an aggregate of 60 calendar days (which need not be consecutive
calendar days) during any 12-month period in which the Company determines in good faith that the suspension of a Registration Statement
is necessary pursuant to Sections 3(d)(vi) and 3(d)(vii).
“Effectiveness Date”
means, with respect to the Initial Registration Statement required to be filed hereunder, the 45th calendar day following the
Closing Date (or in the event of a full review by the Commission, the 60th calendar day following the Closing Date) and with respect to
any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the 30th
calendar day following the date on which an additional Registration Statement is required to be filed hereunder (or, in the event of a
full review by the Commission, the 90th calendar day following the date such additional Registration Statement is required to be filed
hereunder; provided, however, that in the event the Company is notified by the Commission that one or more of the above
Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such
Registration Statement shall be the third Trading Day following the date on which the Company is so notified if such date precedes the
dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day,
then the Effectiveness Date shall be the next succeeding Trading Day.
“Effectiveness Period”
has the meaning set forth in Section 2(a).
“Event”
has the meaning set forth in Section 2(d).
“Event Date”
has the meaning set forth in Section 2(d).
“Filing Date”
means with respect to the Initial Registration Statement required hereunder, the 5th calendar day following the Closing Date
(provided that if such day falls on a day when the SEC's EDGAR system is not available to accept filings, then the next day EDGAR is available
to accept filings), and (b) with respect to any additional Registration Statements which may be required pursuant to Section 2(c)
or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.
“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.
“Indemnified Party”
has the meaning set forth in Section 5(c).
“Indemnifying Party”
has the meaning set forth in Section 5(c).
“Initial Registration
Statement” means the initial Registration Statement filed to register the shares of Common Stock and the shares of Common Stock
underlying the Warrants as provided in and pursuant to this Agreement.
“Lead Investor”
means Great Point Partners.
“Losses”
has the meaning set forth in Section 5(a).
“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed
herein.
“Plan of Distribution”
has the meaning set forth in Section 2(a).
“Prior Agreements”
means (i) the Stock Purchase Agreement, dated May 22, 2020, between the Company and Syntone Ventures LLC and (ii) the Amended and Restated
Investor Rights Agreement, dated April 21, 2022, between the Company and GMS Ventures and Investments.
“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission
pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.
“Registrable Securities”
means, as of any date of determination, (a) the Shares, (b) all Warrant Shares then issued and issuable upon exercise of the Warrants
(assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) any additional shares
of Common Stock issued and issuable in connection with any anti-dilution provisions in the Warrants (in each case, without giving effect
to any limitations on exercise set forth in the Warrants) and (d) any securities issued or then issuable upon any stock split, dividend
or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such
Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of
any, or file another, Registration Statement hereunder with respect thereto) upon (a) sale of such securities pursuant to an effective
Registration Statement, (b) sale of such securities in accordance with Rule 144, or (c) such securities becoming eligible for resale without
volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter
to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders, as reasonably determined by the Company,
upon the advice of counsel to the Company.
“Registration Statement”
means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration statements
contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in any such registration statement.
“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Selling Stockholder
Questionnaire” has the meaning set forth in Section 3(a).
“SEC Guidance”
means (i) any publicly available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.
“Trading Day”
means any day on which the Trading Market is open for trading.
“Trading Market”
means the principal national securities exchange on which Registrable Securities are listed.
Section
2.
Demand Registration.
(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering
the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to
be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except if the Company
is not then eligible to register for resale the Registrable Securities on Form S-3, subject to the provisions of Section 2(d))
and shall contain (unless otherwise directed by at least 85% in interest of the Holders or to make any disclosure contained therein not
misleading) substantially the “Plan of Distribution” attached hereto as Annex A and substantially the “Selling
Stockholder” section attached hereto as Annex B. Subject to the terms of this Agreement, the Company shall use reasonable
best efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c))
to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the
applicable Effectiveness Date, and shall use reasonable best efforts to keep such Registration Statement continuously effective under
the Securities Act until the date that all Registrable Securities covered by such Registration Statement cease to be Registrable Securities
(the “Effectiveness Period”). The Company shall notify the Holders via e-mail of the effectiveness of a Registration
Statement as promptly as practicable, and shall, if requested, provide the Holders with copies of the final Prospectus to be used in connection
with the sale or other disposition of the securities covered thereby.
(b)
Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that
all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering
on a single registration statement, the Company agrees to promptly inform each of the Holders thereof and use reasonable best efforts
to file an amendment or amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of
Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the
Registrable Securities as a secondary offering, subject to the provisions of Section 2(c) with respect to filing on Form S-3 or
other appropriate form; provided, however, that prior to filing such amendment, the Company shall be obligated to use diligent
efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance,
including without limitation, Securities Act Rules Compliance and Disclosure Interpretation 612.09.
(c)
Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on
the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding
that the Company used diligent efforts to advocate with the Commission to maximize the number of Registrable Securities to be registered),
unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered
on such Registration Statement will be reduced as follows:
(i)
First, the Company shall reduce or eliminate any securities to be included other than Registrable Securities; and
(ii)
Second, the Company shall reduce Registrable Securities represented by Shares and Warrant Shares (applied to the Holders
on a pro rata basis based on the total number of unregistered Shares and Warrant Shares held by such Holders).
In
the event of a reduction hereunder, the Company shall give the Holder at least five (5) Trading Days’ prior written notice along
with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance
with the foregoing, then the Company shall use reasonable best efforts to file with the Commission, as promptly thereafter as allowed
by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements
on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the
Initial Registration Statement, as amended.
(d)
If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date, (ii) the Company fails to file with
the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant
to the Securities Act, within two Trading Days of the date that the Company is notified in writing by the Commission that such Registration
Statement will not be “reviewed” or will not be subject to further review, (iii) a Registration Statement registering for
resale all of the Registrable Securities is not declared effective by the Commission by the Effectiveness Date of the Initial Registration
Statement or (iv) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously
effective as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities (other than during an Allowed Delay), for more than 15 consecutive calendar
days or more than an aggregate of 20 calendar days (which need not be consecutive calendar days) during any 12-month period (any such
failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iii), the date on which such Event
occurs, and for purpose of clause (ii) the date on which such two Trading Day period is exceeded, and for purpose of clause (iv) the date
on which such 15 or 20 calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in
addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary
of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company
shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied
by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. The parties agree that the maximum aggregate
liquidated damages payable to a Holder under this Agreement shall be 12.0% of the aggregate Subscription Amount paid by such Holder pursuant
to the Purchase Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven Trading
Days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts,
plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro
rata basis for any portion of a month prior to the cure of an Event. The parties agree that notwithstanding anything to the contrary herein
or in the Purchase Agreement, no liquidated damages shall be payable (i) if as of the relevant Event Date, the Registrable Securities
may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant
to a written opinion letter to such effect, addressed and reasonably acceptable to the Holder and the Company’s transfer agent,
if any, (ii) to a Holder with respect to an Event caused by any action of such Holder or failure of such Holder to take any action that
such Holder is required to take hereunder, or (iii) to a Holder in the event it is unable to lawfully sell any of its Registrable Securities
because of possession of material non-public information.
(e)
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i)
register the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement
then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the Commission.
(f)
Notwithstanding anything to the contrary contained in this Agreement, in no event shall the Company be permitted to name
any Holder or affiliate of a Holder as any underwriter without the prior written consent of such Holder.
Section
3.
Registration Procedures.
In
connection with the Company’s registration obligations hereunder, the Company shall:
(a)
Not less than five Trading Days prior to the filing of each Registration Statement and not less than one Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall (i) furnish to the Lead Investor copies of all such documents proposed to
be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of the
Lead Investor, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries
of the Lead Investor as shall be necessary, in the reasonable opinion of counsel to the Lead Investor, to conduct a reasonable investigation
within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments
or supplements thereto to which the Lead Investor shall reasonably object in writing in good faith, provided that, the Company
is notified of such objection in writing no later than five Trading Days after the Lead Investor has been so furnished copies of a Registration
Statement or one Trading Day after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto.
Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex C (a “Selling
Stockholder Questionnaire”) on a date that is the earlier of two Trading Days prior to the Filing Date or by the end of the
fourth (4th) Trading Day following the date on which such Holder receives draft materials in accordance with this Section.
(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement
and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements
in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to
be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect
to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Lead Investor true and complete
copies of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall
excise any information contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries),
and (iv) comply in all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the
terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so
amended or in such Prospectus as so supplemented.
(c)
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares
of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any
case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.
(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vii) hereof,
be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Holder)
confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement
or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether
there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration
Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii)
of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities
or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein, (vi) of the occurrence of any event or passage of time that makes
any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference
untrue in any material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the
case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and (vii) of the occurrence or existence of any pending corporate development or negotiation
or consummation of a transaction with respect to the Company that the Company believes may be material and that, in the determination
of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus;
provided, however, that in no event shall any such notice contain any information which would constitute material, non-public
information regarding the Company or any of its Subsidiaries and the Company agrees that the Holders shall not have any duty of confidentiality
to the Company or any of its Subsidiaries with respect to the information contained in such notice and shall not have any duty to the
Company or any of its Subsidiaries not to trade on the basis of such information, provided that the Holders shall remain subject to applicable
law; provided, further, that the Company shall use commercially reasonable efforts to terminate an Allowed Delay as promptly as practicable.
(e)
Use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or
suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.
(f)
Furnish to each Holder whose Registrable Securities are included in any Registration Statement, if requested by such Holder,
without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial statements
and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Holder, and
all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after
the filing of such documents with the Commission, provided that any such item which is available on the EDGAR system (or successor
thereto) need not be furnished in physical form.
(g)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).
(h)
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities
in effecting a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Holder.
(i)
Prior to any resale of Registrable Securities by a Holder, use reasonable best efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of
such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during
the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions
of the Registrable Securities covered by each Registration Statement, provided that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.
(j)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates (or
evidence of book-entry registration) representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates (or book-entry evidence) shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends,
and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request.
(k)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances
taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (iii) through
(vii) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made,
then the Holders shall suspend use of such Prospectus, provided that such notice shall not convey any material non-public information
regarding the Company. The Company will use reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly
as is practicable. The Company shall be entitled to exercise its right under this Section 3(k) to suspend the availability
of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to Section
2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.
(l)
Otherwise use reasonable best efforts to comply with all applicable rules and regulations of the Commission under the Securities
Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement
or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions
as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.
(m)
The Company shall use reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto)
for the registration of the resale of Registrable Securities.
(n)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of
Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares.
Section
4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by
the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The
fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to
filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common Stock is
then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in
writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v)
Securities Act liability insurance, if the Company so desires such insurance, (vi) the reasonable fees and expenses of one legal counsel
selected by the holders of a majority-in-interest of the Registrable Securities included in such registration not to exceed $35,000,
and (vii) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation
of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing
of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker
or similar commissions of any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs
of the Holders.
Section
5.
Indemnification.
(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and
hold harmless each Holder who sells Registrable Securities covered by such Registration Statement and the officers, directors, managers,
members, partners, agents, brokers and employees (and any other Persons with a functionally equivalent role of a Person holding such titles,
notwithstanding a lack of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, managers, members, stockholders, partners,
agents and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against
any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of
a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act or any other law, including, without limitation, any state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements
or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for
use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus
or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A and Annex B hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vii), the use
by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice
contemplated in Section 6(c). The Company shall notify the Holders promptly in writing of the institution, threat or assertion
of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall
survive the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(f).
(b)
Indemnification by Holders. Each Holder shall, notwithstanding any termination of this Agreement, severally and not
jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title), each Person who controls the
Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents
or employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such
title or any other title) of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses,
as incurred, to the extent arising out of or based solely upon: any untrue or alleged untrue statement of a material fact contained in
any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
(i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing
by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only
to the extent, that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement (it being understood that the Holder has approved Annex A and Annex B hereto for this
purpose), such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section
5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement
giving rise to such indemnification obligation.
(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled
to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees
and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the Indemnifying Party.
An Indemnified Party shall
have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing
to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ
counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including
any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably
believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable
fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall
not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably
withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of
any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release
of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and includes no admission of wrong-doing
by the Indemnified Party.
Subject to the terms of this
Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in
connection with investigating, preparing to defend or defending such Proceeding in a manner not inconsistent with this Section) shall
be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party, provided
that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such
actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject
to appeal or further review) not to be entitled to indemnification hereunder.
(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party
or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid
or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.
The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this
Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.
The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
In no event shall (i) a Holder of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) be entitled to contribution from any other Holder of Registrable Securities who was not guilty of fraudulent misrepresentation,
and (ii) the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds
(net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages
such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received
by it upon the sale of the Registrable Securities giving rise to such contribution obligation.
The indemnity and contribution
agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.
Section
6.
Miscellaneous.
(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to seek specific performance of its rights under this Agreement. Each
of the Company and each Holder agrees that monetary damages may not provide adequate compensation for any losses incurred by reason of
a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.
(b)
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of
its security holders (other than the investors party to the Prior Agreements) may include securities of the Company in any Registration
Statements other than the Registrable Securities until such time as the Registrable Securities have all been registered pursuant to this
Agreement. The Company shall not file any other registration statements until all Registrable Securities are registered pursuant to a
Registration Statement that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit
the Company from filing amendments or supplements to registration statements filed prior to the date of this Agreement so long as no new
securities are registered on any such existing registration statements.
(c)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of
a notice from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vii), such
Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended)
may be resumed. The Company will use reasonable best efforts to ensure that the use of the Prospectus may be promptly resumed. Any period
during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions
of Section 2(d), except if such period is an Allowed Delay.
(d)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be
in writing and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of
clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if
any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately
impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered
for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly
affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver
or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section 6(d). No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also
is offered to all of the parties to this Agreement.
(e)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be delivered as set forth in the Purchase Agreement.
(f)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each
Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement.
(g)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor
shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Other than the Prior Agreements, neither the Company nor any of its Subsidiaries has previously entered into any agreement granting
any registration rights with respect to any of its securities to any Person that have not been satisfied in full.
(h)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that parties need not sign the same counterpart. In the event that any signature is delivered
by delivery of a “.pdf” format data file or any electronic signature complying with the U.S. federal ESIGN Act of 2000, such
signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such “.pdf” signature page were an original thereof.
(i)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be determined in accordance with the provisions of the Purchase Agreement.
(j)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided
by law.
(k)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable
best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid,
illegal, void or unenforceable.
(l)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and
shall not be deemed to limit or affect any of the provisions hereof.
(m)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several
and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing,
and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as
a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company
acknowledges that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to
such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights
arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding
for such purpose. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder,
solely, and not between the Company and the Holders collectively and not between and among Holders.
(Signature Pages Follow)
IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.
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OUTLOOK THERAPEUTICS, INC. |
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[Signature
Page to Registration Rights Agreement]
Name of Holder: ________________________
By: _____________________________
Name of Authorized Signatory:
Title of Authorized Signatory:
Name of Holder: ________________________
By: _____________________________
Name of Authorized Signatory:
Title of Authorized Signatory:
[Signature
Page to Registration Rights Agreement]
Annex A
PLAN OF DISTRIBUTION
Each
Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their respective securities covered hereby on the Trading Market or any other stock exchange,
market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices.
A Selling Stockholder may use any one or more of the following methods when selling securities:
| · | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
| · | block trades in which the broker-dealer will attempt to sell the securities as agent but may position
and resell a portion of the block as principal to facilitate the transaction; |
| · | purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
| · | an exchange distribution in accordance with the rules of the applicable exchange; |
| · | privately negotiated transactions; |
| · | in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number
of such securities at a stipulated price per security; |
| · | through the writing or settlement of options or other hedging transactions, whether through an options
exchange or otherwise; |
| · | a combination of any such methods of sale; or |
| · | any other method permitted pursuant to applicable law. |
A Selling Stockholder may
also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended, or the Securities
Act, if available, rather than under this prospectus.
Broker-dealers engaged by
a Selling Stockholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from a Selling Stockholder (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to
be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance
with FINRA Rule 2121.
A Selling enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
A Selling Stockholder and
any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning
of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly,
with any person to distribute the securities.
We are required to pay certain
fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify any Selling Stockholder against
certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We agreed to keep this prospectus
effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and
without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for us to be in compliance with
the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities
have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in
certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and
regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement
of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules
and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by a Selling
Stockholder or any other person. We will make copies of this prospectus available to a Selling Stockholder and have informed them of the
need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172
under the Securities Act).
Annex B
SELLING STOCKHOLDERS
The common stock being offered
by the selling stockholders are those previously issued to the selling stockholders, and those issuable to the selling stockholders, upon
exercise of the warrants. For additional information regarding the issuances of those shares of common stock and warrants, see “Private
Placement of Shares of Common Stock and Warrants” above. We are registering the shares of common stock in order to permit the selling
stockholders to offer the shares for resale from time to time. [Except for the ownership of the shares of common stock and the warrants
and for the selling stockholders whose other relationships are provided in “Certain Relationships and Related Party Transactions”1,]
the selling stockholders have not had any material relationship with us within the past three years.
The table below lists the
selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each of the selling stockholders.
The second column lists the number of shares of common stock beneficially owned by each selling stockholder, based on its ownership of
the shares of common stock and warrants, as of [________, 2024], assuming exercise of the warrants held by the selling stockholders on
that date, without regard to any limitations on exercises.
The third column lists the
shares of common stock being offered by this prospectus by the selling stockholders.
In accordance with the terms
of a Registration Rights Agreement with the selling stockholders, this prospectus generally covers the resale of the sum of (i) the number
of shares of common stock issued to the selling stockholders in the “Private Placement of Shares of Common Stock and Warrants”
described above and (ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if
the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement was initially
filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment
as provided in the Registration Rights Agreement, without regard to any limitations on the exercise of the warrants. The fourth column
assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus.
Under the terms of the warrants,
a selling stockholder may not exercise the warrants to the extent such exercise would cause such selling stockholder, together with its
affiliates and attribution parties, to beneficially own a number of shares of common stock which would exceed [19.99]% of the number of
shares of our common stock outstanding following such exercise (for purposes of the denominator, immediately after giving effect to the
issuance of shares of common stock to be issued upon the applicable exercise of such warrant). The number of shares in the second and
fourth columns do not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering. See
“Plan of Distribution.”
1 Note: To add
based on questionnaire, given existing share ownership and board representation of certain selling stockholders.
Name of Selling Stockholder |
Number of Shares of Common Stock Owned Prior to Offering |
Maximum Number of Shares of Common Stock to be Sold Pursuant to this Prospectus |
Number of Shares of Common Stock Owned After Offering |
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Annex C
OUTLOOK THERAPEUTICS INC.
SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE
The undersigned beneficial
owner of shares of common stock, and warrants exercisable into common stock (collectively, the “Registrable Securities”)
of Outlook Therapeutics Inc., a Delaware corporation (the “Company”), understands that the Company has filed or intends
to file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration
Rights Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from the Company
upon request at the address set forth below. All capitalized terms not otherwise defined herein have the meanings ascribed thereto in
the Registration Rights Agreement.
Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial
owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or
not being named as a selling stockholder in the Registration Statement and the related prospectus.
NOTICE
The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned
by it in the Registration Statement.
The undersigned hereby provides
the following information to the Company and represents and warrants that such information is accurate:
QUESTIONNAIRE
1. Name.
(a) Full Legal Name of Selling Stockholder
(b) Full Legal Name of Registered Holder (if
not the same as (a) above) through which Registrable Securities are held:
(c) Full Legal Name of Natural Control Person
(which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by
this Questionnaire):
2. Address for Notices to Selling Stockholder:
3. Broker-Dealer Status:
(a)
Are you a broker-dealer?
Yes ¨
No ¨
(b)
If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services
to the Company?
Yes ¨
No ¨
Note:
If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.
(c) Are you an affiliate of a broker-dealer?
Yes ¨
No ¨
(d) If you are an affiliate of a broker-dealer,
do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the
Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the
Registrable Securities?
Yes ¨
No ¨
Note:
If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.
4. Beneficial Ownership of Securities of the Company Owned by
the Selling Stockholder.
Except as set forth below in
this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable
pursuant to the Purchase Agreement.
(a)
Type and Amount of other securities beneficially owned by the Selling Stockholder:
5. Relationships with the Company:
Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.
State any exceptions here:
The undersigned agrees to
promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be required
to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.
By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information
in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands that such
information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related
prospectus and any amendments or supplements thereto.
IN WITNESS WHEREOF the undersigned,
by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.
Date:________________________ |
Beneficial Owner: ______________ |
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PLEASE EMAIL A PDF COPY OF THE COMPLETED AND EXECUTED NOTICE
AND QUESTIONNAIRE TO:
Outlook Therapeutics, Inc.
Email: [______________]
Exhibit 10.4
SECURITIES PURCHASE AGREEMENT
This Securities Purchase
Agreement (this “Agreement”) is dated as of January 22, 2024, between Outlook Therapeutics, Inc., a Delaware
corporation (the “Company”), and Syntone Ventures, LLC (including its successors and assigns, the “Purchaser”).
WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the
Securities Act of 1933, as amended (the “Securities Act”), contained in Section 4(a)(2) thereof and/or Rule 506 of
Regulation D promulgated thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser wishes to purchase from
the Company, the aggregate number of shares of Common Stock (as defined below) and the Warrants (as defined below), in each case, as set
forth below the Purchaser’s name on the signature page of this Agreement.
WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the Purchaser and the Company are executing and delivering a Registration
Rights Agreement (as defined below), pursuant to which, among other things, the Company will agree to provide certain registration
rights with respect to the Shares (as defined below) and Warrant Shares (as defined below) under the Securities Act and the rules and
regulations promulgated thereunder and applicable state securities laws and certain information and consent rights.
NOW, THEREFORE, in
consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Company and the Purchaser agree as follows:
ARTICLE
I
DEFINITIONS
1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the
following terms have the meanings set forth in this Section 1.1:
“2024
Stockholder Meeting” has the meaning ascribed to such term in Section 4.6(b).
“Accountants”
has the meaning ascribed to such term in Section 3.1(bb).
“Acquiring Person”
has the meaning ascribed to such term in Section 4.5.
“Action”
means any action, suit, inquiry, notice of violation, arbitration, complaint, proceeding (including any partial proceeding such as a deposition)
or investigation pending or, to the Company’s Knowledge, threatened in writing against the Company, any Subsidiary or any of their
respective properties or any officer, director or employee of the Company or any Subsidiary acting in his or her capacity as an officer,
director or employee before or by any federal, state, county, local or foreign court, arbitrator, governmental or administrative agency,
regulatory authority, stock market, stock exchange or trading facility.
“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. Notwithstanding the foregoing, with respect
to the Purchaser (a) the Company and each of its Subsidiaries shall not be considered Affiliates of the Purchaser or any of the Purchaser’s
Affiliates and (b) no portfolio company of a Purchaser or any of its Affiliates shall be deemed an Affiliate of the Purchaser and its
other Affiliates so long as such portfolio company has not been directed, encouraged, instructed, assisted or advised by, or coordinated
with, the Purchaser or any of its Affiliates in carrying out any act contemplated or prohibited by this Agreement.
“Agreement”
has the meaning ascribed to such term in the preamble.
“Board of Directors”
means the board of directors of the Company.
“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York, New York are authorized or required
by law to remain closed.
“Bylaws”
means the Company’s Bylaws as amended and restated and as in effect on the date hereof.
“Certificate of Incorporation”
means the Company’s certificate of incorporation, as amended and restated and as in effect on the date hereof.
“Charter Amendment”
has the meaning ascribed to such term in Section 4.6(b).
“Charter Amendment
Proposal” has the meaning ascribed to such term in Section 4.6(b).
“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.
“Closing Date”
means the second (2nd) Trading Day following the date on which the Purchaser receives the Requisite Regulatory Approval.
“Code”
has the meaning ascribed to such term in Section 3.1(uu).
“Concurrent Private
Placement” means the issuance and sale of shares of Common Stock and Warrants in a private placement to institutional and accredited
investors concurrently with the transactions contemplated hereby on substantially similar terms.
“Commission”
means the United States Securities and Exchange Commission.
“Common Stock”
means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.
“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
“Company”
has the meaning ascribed to such term in the preamble.
“Company Counsel”
means Cooley LLP, with offices located at 55 Hudson Yards, New York, New York 10001.
“Company’s
Knowledge” means with respect to any statement made to the knowledge of the Company, that the statement is based upon the actual
knowledge, after reasonable inquiry, of the executive officers of the Company.
“DGCL”
has the meaning ascribed to such term in Section 3.1(t).
“Disqualification
Event” has the meaning ascribed to such term in Section 3.1(ll).
“DPA” has
the meaning ascribed to such term in Section 3.1(ww).
“Entity”
has the meaning ascribed to such term in Section 3.1(vv).
“Environmental Laws”
has the meaning ascribed to such term in Section 3.1(m).
“ERISA”
has the meaning ascribed to such term in Section 3.1(uu).
“Evaluation Date”
has the meaning ascribed to such term in Section 3.1(jj).
“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.
“FDA” has
the meaning ascribed to such term in Section 3.1(ee).
“GAAP”
has the meaning ascribed to such term in Section 3.1(f).
“GDPR”
has the meaning ascribed to such term in Section 3.1(qq).
“Government Official”
has the meaning ascribed to such term in Section 3.1(v).
“Hazardous Materials”
has the meaning ascribed to such term in Section 3.1(m).
“Health Care Laws”
has the meaning ascribed to such term in Section 3.1(ee).
“HIPAA”
has the meaning ascribed to such term in Section 3.1(ee).
“Intellectual Property”
has the meaning ascribed to such term in Section 3.1(l).
“Issuer Covered Person”
has the meaning ascribed to such term in Section 3.1(ll).
“IT Systems”
has the meaning ascribed to such term in Section 3.1(pp).
“Legend Removal Date”
has the meaning ascribed to such term in Section 4.1(c).
“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
“Market Price”
means the lower of (a) the closing price of the Common Stock on the Principal Trading Market as of the Trading Day immediately preceding
the closing of the Concurrent Private Placement (the “Pricing Date”) and (b) the
volume weighted average share price of the Common Stock on the Principal Trading Market over the last five (5) Trading Days prior to the
closing of the Concurrent Private Placement, provided, however, that such price shall in no event be lower than $0.07 per share.
“Material Adverse
Effect” has the meaning ascribed to such term in Section 3.1(a).
“Material Permits”
has the meaning ascribed to such term in Section 3.1(p).
“Money Laundering
Laws” has the meaning ascribed to such term in Section 3.1(rr).
“Nasdaq Proposal”
has the meaning ascribed to such term in Section 4.6(b).
“OFAC”
has the meaning ascribed to such term in Section 3.1(vv).
“Outside Date”
has the meaning ascribed to such term in Section 4.6(b).
“Per Share Purchase Price” means
the lower of (a) the Market Price per share at the time of the closing of the Concurrent Private Placement and (b) $0.35 per share, subject
to adjustment for reverse and forward stock splits, stock dividends, stock combinations or other similar transactions of the Common Stock
that occur after the date of this Agreement and prior to the closing of the Concurrent Private Placement.
“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
“Personal Data” has the meaning
ascribed to such term in Section 3.1(pp).
“Policies”
has the meaning ascribed to such term in Section 3.1(qq).
“Pre-Pricing Period”
has the meaning ascribed to such term in Section 4.7.
“Pricing Date”
has the meaning ascribed to such term in the Market Price definition above.
“Principal Trading
Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading, which, as of the date
of this Agreement and the Closing Date, shall be the Nasdaq Capital Market.
“Privacy Laws”
has the meaning ascribed to such term in Section 3.1(qq).
“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened in writing.
“Product”
has the meaning ascribed to such term in Section 3.1(ee).
“Proposals”
has the meaning ascribed to such term in Section 4.6(b).
“Purchaser”
has the meaning ascribed to such term in the preamble.
“Registration Rights
Agreement” means the Registration Rights Agreement, dated on or about the date hereof, among the Company and the Purchaser,
in the form of Exhibit A attached hereto.
“Registration Statement”
or “Registration Statements” means the registration statement(s) meeting the requirements set forth in the Registration
Rights Agreement and covering the resale of the Shares and the Warrant Shares by the Purchaser as provided for in the Registration Rights
Agreement.
“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock potentially issuable in the future pursuant to the Transaction
Documents, including any Warrant Shares issuable upon exercise in full of all Warrants ignoring any exercise limits set forth therein
and the effect of potential future adjustments to the exercise price.
“Requisite Stockholder
Approval” has the meaning ascribed to such term in Section 4.6(b).
“Requisite Regulatory
Approval” has the meaning ascribed to such term in Section 2.3(b)(i).
“Reverse Stock Split
Proposal” has the meaning ascribed to such term in Section 4.6(b).
“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Sanctioned Countries”
has the meaning ascribed to such term in Section 3.1(vv).
“Sanctions”
has the meaning ascribed to such term in Section 3.1(vv).
“Sarbanes-Oxley Act”
has the meaning ascribed to such term in Section 3.1(x).
“SEC Reports”
has the meaning ascribed to such term in Section 3.1(f).
“Securities”
means the Shares, the Warrants and the Warrant Shares.
“Securities Act”
has the meaning ascribed to such term in the preamble.
“Shares”
means the shares of Common Stock issued or issuable to the Purchaser pursuant to this Agreement.
“Short Sales”
means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include
locating and/or borrowing shares of Common Stock).
“Standard Settlement
Period” has the meaning ascribed to such term in Section 4.1(c).
“Subscription Amount”
means the aggregate amount to be paid for the Shares and Warrants purchased hereunder, in United States dollars and in immediately available
funds, as set forth below the Purchaser’s name on the signature page of this Agreement.
“Subsidiary”
has the meaning ascribed to such term in Section 3.1(ss).
“Trading Day”
means a day on which the Principal Trading Market is open for trading.
“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or
any successors to any of the foregoing).
“Transaction Documents”
means this Agreement, the Warrants, the Registration Rights Agreement, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.
“Transfer Agent”
means Equiniti Trust Company, LLC, the current transfer agent of the Company, and any successor transfer agent of the Company.
“Warrants”
means the warrants to purchase shares of Common Stock delivered to the Purchaser at Closing in accordance with Section 2.2(a) hereof,
in the form of Exhibit B attached hereto.
“Warrant Price Per
Share” means one hundred ten percent (110%) of the Per Share Purchase Price.
“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.
ARTICLE
II
PURCHASE AND SALE
2.1
Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Purchaser agrees to purchase, up to an aggregate of $5,000,000 of Shares and Warrants. The Company shall deliver to the
Purchaser its Shares and Warrants pursuant to Section 2.2(a), and the Company and the Purchaser shall deliver the other items set
forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and
2.3, the Closing shall occur remotely by mutual exchange of signature pages by electronic means. The Shares and the Warrants will be issued
in a private placement pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section
4(a)(2) thereof and/or Rule 506 of Regulation D promulgated thereunder.
2.2
Deliveries.
(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:
(i)
this Agreement duly executed by the Company;
(ii)
receipt of the Requisite Stockholder Approval;
(iii)
filing and acceptance of the Charter Amendment with the Secretary of State of the State of Delaware;
(iv)
subject to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing
the Transfer Agent to deliver uncertificated book entries representing a number of shares of Common Stock as set forth below the Purchaser’s
name on its signature page hereto (and bearing the restrictive securities legend pursuant to Section 4.1) equal to the Purchaser’s
Subscription Amount divided by the Per Share Purchase Price (or as otherwise directed to be registered by the Purchaser);
(v)
a Warrant registered in the name of the Purchaser to purchase up to a number of shares of Common Stock as set forth below
the Purchaser’s name on its signature page hereto, with an exercise price equal to the Warrant Price Per Share, subject to adjustment
as set forth therein;
(vi)
the Company shall have provided the Purchaser with the Company’s wire instructions on Company letterhead and executed
by the Company’s Chief Executive Officer or Chief Financial Officer, which wire instructions shall include information regarding
telephone number and name of the Person at the Company that a Purchaser may contact to confirm such wire instructions;
(vii)
the Registration Rights Agreement duly executed by the Company;
(viii)
a certificate of the Secretary of the Company, dated as of the Closing Date, in form
and substance reasonably satisfactory to the Purchaser, certifying (i) the Certificate of Incorporation, as amended by the Charter
Amendment; (ii) the Bylaws; and (iii) resolutions of the Board of Directors (or an authorized committee thereof) approving this Agreement
and the transactions contemplated by this Agreement; and (iv) the satisfaction of the closing
conditions set forth in Section 2.3;
(ix)
a certificate evidencing the good standing of the Company in Delaware issued by the
Secretary of State of Delaware, as of the Closing Date, and a certificate evidencing the good standing of the Company in New Jersey issued
by the Secretary of State of New Jersey, as of the Closing Date;
(x)
a legal opinion of Company Counsel, in the form and substance reasonably satisfactory
to the Purchaser executed by such counsel as of the Closing Date and addressed to the Purchaser; and
(xi)
any other customary documents or certificates reasonably requested by the Purchaser
which are reasonably necessary to give effect to the Closing.
(b)
On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, the following:
(i)
this Agreement duly executed by the Purchaser;
(ii)
the Subscription Amount for the Purchaser by wire transfer in immediately available funds to the account specified by the
Company in the wire instructions referred to above;
(iii)
the Registration Rights Agreement duly executed by the Purchaser; and
(iv)
an Internal Revenue Service Form W-9 (or any successor form or applicable Form W-8 in the case of a Purchaser that is not
a U.S. person), duly and validly executed by the Purchaser (or its nominee in accordance with the Purchaser’s delivery instructions).
2.3
Closing Conditions.
(a)
The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:
(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchaser contained herein
(unless as of a specific date therein in which case they shall be accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such date);
(ii)
all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall
have been performed; and
(iii)
the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.
(b)
The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being
met:
(i)
the Purchaser shall have received all requisite approvals for its participation in the transactions contemplated by the
Transaction Documents from foreign direct investment and currency regulators in China (the “Requisite Regulatory Approval”);
(ii)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) as of such date);
(iii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date (including,
if applicable, pursuant to Section 4.6(c)) shall have been performed;
(iv)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;
(v)
there shall have been no Material Adverse Effect since the date hereof; and
(vi)
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Principal Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P.
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by
such service, on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities
nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude
in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Purchaser,
makes it impracticable or inadvisable to purchase the Securities at the Closing.
ARTICLE
III
REPRESENTATIONS AND WARRANTIES
3.1
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties
to the Purchaser as of the date hereof and as of the Closing Date (except for the representations that speak as of a specific date, which
shall be made as of such date) except as otherwise described in the SEC Reports, which qualify these representations and warranties in
their entirety:
(a)
Organization and Qualification. The Company and each of its Subsidiaries is
an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization, with the requisite corporate power and authority to own or lease its properties and assets and to carry on its business
as currently conducted. Neither the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective
certificate of incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business
conducted or property owned or leased by it makes such qualification necessary, except where the failure to be so qualified or in good
standing, as the case may be, would not, individually or in the aggregate, have or, individually or in the aggregate, reasonably be expected
to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries,
taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”). As of the
date hereof, the Company has no Subsidiaries (if the Company has no Subsidiaries at the applicable time, all other references to the Subsidiaries
or any of them in the Transaction Documents shall be disregarded).
(b)
Authorization; Enforcement, Validity. (i) The Company has the requisite
corporate power and authority to enter into and perform its obligations under this Agreement and each of the other Transaction Documents
to which it is a party, and subject to receipt of the Requisite Stockholder Approval, to issue the Shares and Warrants in accordance with
the terms hereof and thereof, (ii) the execution and delivery of this Agreement and each of the other Transaction Documents to which
it is a party by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation,
the issuance of the Shares and Warrants pursuant to this Agreement, have been duly authorized and no further consent or authorization
is required by the Company, the Board of Directors or its stockholders other than the Requisite Stockholder Approval, (iii) this
Agreement has been and each of the other Transaction Documents shall be on the Closing Date, duly executed and delivered by the Company
and (iv) this Agreement constitutes, and each other Transaction Document upon its execution and delivery on behalf of the Company
shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their respective
terms, except (i) as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.
(c)
Capitalization. As of the date hereof, the authorized capital stock of the Company is set forth in the Company’s
most recent SEC Report, which was the Company’s Annual Report on Form 10-K for the year ended September 30, 2023. The Company’s
disclosure of its issued and outstanding capital stock in its most recent SEC Report containing such disclosure was accurate in all material
respects as of the date indicated in such SEC Report. All of the issued and outstanding shares of capital stock of the Company have been
duly authorized and validly issued, are fully paid and are non-assessable. None of the issued and outstanding shares of the Company were
issued in violation of any preemptive rights. As of the date hereof, and except as provided in any of the Transaction Documents: (i) no
shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company, (ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act
(except the Registration Rights Agreement and the registration rights agreement related to the Concurrent Private Placement), (v) there
are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company does
not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company
has furnished to the Purchaser true and correct copies of the Certificate of Incorporation and the Bylaws, and summaries of the terms
of all securities convertible into or exercisable for Common Stock which are not otherwise disclosed in the SEC Reports, if any, and copies
of any documents containing the material rights of the holders thereof in respect thereto that are not otherwise filed with the SEC Reports.
(d)
Issuance, Sale and Delivery of the Shares and Warrant Shares. Subject to the
receipt of the Requisite Stockholder Approval, the Shares are duly authorized and, when issued, delivered and paid for in accordance with
the applicable Transaction Documents, will be validly issued, fully paid and nonassessable and free and clear of all pledges, mortgages,
hypothecations, liens, encumbrances, security interest or other claim, including any statutory or contractual preemptive rights, resale
rights, and rights of refusal, or similar rights of any kind, except as may be described in the Transaction Documents, and the
Shares will be registered pursuant to Section 12 of the Exchange Act. Except for the rights described
in the Transaction Documents, no stockholder of the Company has any right to require the Company to register the sale of any capital stock
owned by such stockholder under the Registration Statement. Subject to the receipt of the Requisite Stockholder Approval, the Warrant
Shares will be duly and validly authorized and reserved for issuance and, upon exercise of the Warrants in accordance with their terms,
including the payment of any exercise price therefor, will be validly issued, fully paid and nonassessable and will be free and clear
of all liens, encumbrances and rights of refusal of any kind, except for restrictions on transfer set forth in the Transaction Documents
or imposed by applicable securities laws. Assuming the accuracy of the representations and warranties of the Purchaser in Section 3.2
hereof, the Warrant Shares will be issued in compliance with all applicable federal and state securities laws.
(e)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby, subject to receipt of the Requisite Stockholder Approval, will not
(i) result in a violation of the Certificate of Incorporation or the Bylaws or (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument that is material to the Company and its Subsidiaries, taken as
a whole, and to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Trading
Market applicable to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries
is bound or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Neither
the Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any certificate
of designation, preferences and rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter
or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any material
contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable
to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments that would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being
conducted, and shall not be conducted, in violation of any law, ordinance or regulation of any governmental entity, except for possible
violations, the sanctions for which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable state securities
laws and the rules and regulations of the Principal Trading Market, the Company is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency in order
for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance with the
terms hereof or thereof. Except as set forth elsewhere in this Agreement, all consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or prior to the Closing Date.
The Company has: (i) entered into an amendment of that certain Convertible Promissory Note, entered into as of December 22, 2023 in the
principal amount of $31,820,000 providing for an extension of the Maturity Date (as defined therein) to July 1, 2025 or later and (ii)
has obtained a waiver of the transactions contemplated herein such that they will not be deemed to constitute a “Restricted Issuance”
as defined in that certain Securities Purchase Agreement, dated as of December 22, 2022, by and between the Company and Streeterville
Capital, LLC.
(f)
SEC Reports; Financial Statements. The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required
by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective filing
dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder. None of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply
in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments. The interactive data in eXtensible Business Reporting Language included in the SEC
Reports fairly presents, in all material respects, the information called for and has been prepared in accordance with the Commission’s
rules and guidelines applicable thereto.
(g)
Absence of Certain Changes. Since the date of the latest audited financial statements included within the SEC Reports,
there has been no material adverse change in the business, properties, operations, financial condition or results of operations of the
Company or its Subsidiaries. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to any bankruptcy law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its
debts as they become due. No event, liability, fact, circumstance, occurrence or development (including, without limitation, any fundamental
transaction, change of control or similar event under any agreement (including, without limitation, any employment agreement)) has occurred
or exists, or is reasonably expected to occur or exist, with respect to the Company or its business, properties, operations, assets or
financial condition that, but for the passage of time, would be required to be disclosed by the Company under applicable securities laws
at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation
is made.
(h)
Absence of Change of Control. The execution, delivery and performance by the Company of this Agreement and the other
Transaction Documents to which it is a party, and the issuance of the Shares and Warrants on the Closing Date do not and will not result
in any fundamental transaction, change of control or similar event, the requirement to make any payment or adjustment or issue any shares
of Common Stock or other securities with respect to any fundamental transaction, change of control or similar event, or an event that
with the passage of time could result in a fundamental transaction, change of control or similar event under any agreement (including,
without limitation, any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase
Common Stock), other instrument or under any applicable law and regulations (including the rules of the Principal Trading Market).
(i)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to the Company’s Knowledge, threatened against or affecting
the Company, the Common Stock, the Warrants or any of the Company’s or its Subsidiaries’ officers or directors in their capacities
as such, which would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
(j)
Acknowledgment Regarding Purchaser’s Status. The Company acknowledges and agrees that the Purchaser is acting
solely in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice
given by the Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated hereby and thereby is merely incidental to the Purchaser’s purchase of the Shares and Warrants. The Company further
represents to the Purchaser that the Company’s decision to enter into the Transaction Documents has been based solely on the independent
evaluation by the Company and its representatives and advisors.
(k)
No Aggregated Offering. Neither the Company, nor, to the Company’s Knowledge, any of its affiliates, nor any
Person acting on their behalf has, directly or indirectly, at any time within the past six (6) months, made any offers or sales of any
security or solicited offers to buy any security, under circumstances that would (i) adversely affect reliance by the Company on
Section 4(a)(2) for the exemption from registration for the transactions contemplated hereby or would require registration of the
Shares, the Warrants or the Warrant Shares under the Securities Act or (ii) cause this offering of the Shares, Warrants and Warrant
Shares to be aggregated with prior offerings by the Company in a manner that would require stockholder approval pursuant to the rules
of the Principal Trading Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Shares
and Warrants hereunder does not contravene the rules and regulations of the Principal Trading Market. Assuming the accuracy of the representations
and warranties of the Purchaser set forth in Section 3.2, the offer and sale of the Shares and Warrants to the Purchaser as contemplated
hereby is exempt from the registration requirements of the Securities Act.
(l)
Intellectual Property. The Company and the Subsidiaries own, possess, license or have other rights to use, or could
obtain on commercially reasonable terms, 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 for the conduct of their respective businesses
as now conducted 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 SEC Reports, (i) there are no rights of third parties to any such Intellectual Property owned by the Company and its Subsidiaries,
except for licenses granted in the ordinary course to third parties, or that could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect; (ii) to the Company’s Knowledge, there is no infringement by third parties of any
such Intellectual Property; (iii) there is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim
by others challenging the Company’s and its Subsidiaries’ rights in or to any such Intellectual Property, and the Company
is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) 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 or otherwise violate any patent, trademark, copyright, trade secret or other proprietary
rights of others; (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), or the equivalent in any other jurisdiction,
has been commenced against any patent or patent application described in the SEC Reports as being owned by or licensed to the Company;
and (vii) 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, except, in the case of any of clauses
(ii)-(vi) above, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or claim as would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(m)
Environmental Laws. The Company and its Subsidiaries (i) are and for the past three (3) years have been in compliance
with all applicable federal, state, local and foreign laws, rules, regulations, ordinances, codes and rules of common law, any judicial
or administrative interpretation thereof, including any judicial decisions or orders, consent decree or judgment relating to pollution,
human health or safety (to the extent relating to exposure to Hazardous Materials (as defined below)), the protection, cleanup or restoration
of the environment (including ambient air, surface water, groundwater, drinking water supply, land, surface or subsurface strata and natural
resources) or wildlife, or greenhouse gasses and climate change, including laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, generation, treatment, storage, disposal,
transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions,
judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have timely applied for or have received and, to the extent received, are and for the
past three (3) years (or sine their receipts for permits that have been received within the past three (3) years) have been in compliance
with all permits, licenses, authorizations, registrations or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; (iii) have not received written notice of any administrative, regulatory or judicial actions, suits, demands,
demand letters, claims, liens, investigations, litigation or proceedings against or targeting any of them that relate to any non-compliance
with, violation of, or actual or potential liability under any Environmental Law or that otherwise relate to any Hazardous Materials;
and (iv) to the Company’s Knowledge, there are not events or circumstances that would reasonably be expected to form the basis of
an order or to demand of any of them for the investigation, clean-up or remediation of any disposal or release of Hazardous Materials,
or result in an action, suit, demand, demand letter, claim, lien, investigation, litigation or proceeding against or targeting any of
them by any private party or governmental authority relating to Hazardous Materials or any Environmental Laws, except where such non-compliance
with Environmental Laws, failure to receive or non-compliance with required permits, licenses, authorizations, registrations or other
approvals, notice, or event or circumstance would not, individually or in the aggregate, a Material Adverse Effect.
(n)
Title to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all items of real
property owned by them and good and valid title to all personal property owned by them which is material to the business of the Company
and its Subsidiaries, free and clear of all mortgages, liens, encumbrances, claims and defects except such as do not materially affect
the value of such property and do not interfere in any material respect with the use made and proposed to be made of such property by
the Company and its Subsidiaries. Any real property and buildings held under lease by the Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere in any material respect with
the use made and proposed to be made of such property and buildings by the Company and its subsidiaries. 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 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 reasonably be expected to have a Material Adverse Effect. None of the Company or its
Subsidiaries has received from any governmental 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 reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.
(o)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not be reasonably expected to, individually or in the aggregate, have
a Material Adverse Effect.
(p)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating
to the revocation or modification of any Material Permit.
(q)
Reserved.
(r)
Tax Status. The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns
required to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not,
singly or in the aggregate, reasonably be expected to have a Material Adverse Effect) and have paid all taxes required to be paid thereon
(except for cases in which the failure to file or pay would not reasonably be expected to, singly or in the aggregate, have a Material
Adverse Effect, or, except as currently being contested in good faith and for which reserves required by GAAP have been created in the
financial statements of the Company), and no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which,
individually or in the aggregate, has had (nor does the Company nor any of its Subsidiaries have any notice or knowledge of any tax deficiency
which would reasonably be expected to be determined adversely to the Company or its Subsidiaries and which would reasonably be expected
to have) a Material Adverse Effect.
(s)
Transactions With Affiliates. Except pursuant to the Transaction Documents and the Concurrent Private Placement,
to the Company’s Knowledge, none of the officers or directors of the Company, the Company’s stockholders, the officers or
directors of any stockholder of the Company, or any family member or affiliate of any of the foregoing, has either directly or indirectly
any interest in, or is a party to, any transaction that would be required to be disclosed as a related party transaction pursuant to Rule
404 of Regulation S-K promulgated under the Securities Act.
(t)
Application of Takeover Protections. The Company and the Board of Directors have taken or will take prior to the
Closing Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination (as defined
in the Delaware General Corporation Law (“DGCL”)), poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Certificate of Incorporation or the laws of the state of its incorporation, including
under Section 203 of the DGCL, which is or could become applicable to the Purchaser as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company’s issuance of the Shares and Warrants and the Purchaser’s ownership
of the Shares and Warrants.
(u)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents or any other agreements to be entered into by the Company and the Purchaser that, in each case, will be timely publicly disclosed
by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents
or counsel with any information that the Company believes constitutes or might constitute material, non-public information which is not
otherwise disclosed in the SEC Reports. The Company understands and confirms that the Purchaser will rely on the foregoing representation
in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchaser
regarding the Company, its business and the transactions contemplated by the Transaction Documents, including the disclosure schedules
to this Agreement, if any, is true and correct in all material respects. The Company acknowledges and agrees that Purchaser does not make
and has not made any representations or warranties with respect to the transactions contemplated by the Transaction Documents other than
those specifically set forth in Section 3.2 hereof.
(v)
Foreign Corrupt Practices. Neither the Company, nor to the Company’s Knowledge, any controlled Affiliate, director,
officer, employee, agent, representative or other Person acting on behalf of the Company, has taken or will take any action in furtherance
of an unlawful offer, payment, promise to pay, or authorization or approval of the payment, giving or receipt of money, property, gifts
or anything else of value, directly or indirectly, to any government official (including any officer or employee of a government
or government-owned or controlled entity or of a public international organization, or any Person acting in an official capacity for or
on behalf of any of the foregoing, or any political party or party official or candidate for political office) (a “Government
Official”) in order to influence official action, or to any person in violation of any applicable anti-corruption laws. The
Company and its controlled Affiliates have conducted their businesses in compliance with applicable anti-corruption laws and have instituted
and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws
and with the representations and warranties contained herein. Neither the Company nor any Subsidiary will use, directly or indirectly,
the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money,
or anything else of value, to any person in violation of any applicable anti-corruption laws. Neither the Company nor any Subsidiary has violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.
(w)
DTC Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities
Transfer (FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities
Transfer (FAST) Program.
(x)
Sarbanes-Oxley. The Company, including the Company’s directors or officers, in their capacities as such, are
in compliance in all material respects with all provisions of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley
Act”), and the rules and regulations promulgated thereunder, which are applicable to it as of the date hereof. The principal
executive officer and 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) have 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.
(y)
Certain Fees. The Company will use its reasonable best efforts to minimize any brokerage or finder’s fees or
commissions that are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser
shall not have any obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of
a type contemplated in this Section 3.1(y) that may be due in connection with the transactions contemplated by the Transaction Documents.
(z)
Investment Company. Neither the Company nor any Subsidiary is, and, following the consummation of the transaction
contemplated by this Agreement, will not be, an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission promulgated thereunder.
(aa)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange
Act, and the Company has taken no action designed to, or which to the Company’s Knowledge is likely to have the effect of, terminating
the registration of the Common Stock pursuant to the Exchange Act nor has the Company received any notification that the Commission is
currently contemplating terminating such registration. The Company has not, in the twelve months preceding the date hereof, received any
notice from any Person to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal
Trading Market. The Company is in compliance with all such listing and maintenance requirements.
(bb)
Accountants. The Company’s accountants (the “Accountants”) are set forth in the SEC Reports
and, to the Company’s Knowledge, such Accountants are an independent registered public accounting firm as required by the Securities
Act. To the Company’s Knowledge, the Accountants are not in violation of the auditor independence requirements of the Sarbanes-Oxley
Act.
(cc)
No Market Manipulation. The Company has not, and to the Company’s Knowledge, no Person acting on its behalf
has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price
of any security of the Company to whether to facilitate the sale or resale of any of the Shares, Warrants or the Warrant Shares or otherwise,
(ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Shares or Warrants, or (iii) paid
or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company in violation of
Regulation M promulgated under the Exchange Act.
(dd)
Shell Company Status. The Company is not currently, and has never been, an issuer identified in Rule 144(i)(1) under
the Securities Act.
(ee)
Consents and Permits. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
or any non-U.S. counterpart that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any
of its Subsidiaries (each such product, a “Product”), such Product is being manufactured, packaged, labeled, tested,
distributed, sold and/or marketed by the Company or its Subsidiaries in material compliance with all applicable Health Care Laws relating
to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory
practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports. There is no
pending, completed or, to the Company’s Knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative
or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company
or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity,
which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing
or packaging of, the testing of, the sale of, or the labeling and promotion of any Product, (ii) withdraws its approval of, requests the
recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any
Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production
at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company
or any of its Subsidiaries, and which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect. The properties, business and operations of the Company have been and are being conducted in all material respects in accordance
with all applicable Health Care Laws. The Company has not been informed by the FDA or any non-U.S. counterpart that the FDA or any non-U.S.
counterpart will prohibit the marketing, sale, license or use in the United States or in any other territory any product proposed to be
developed, produced or marketed by the Company or any Subsidiary. For purposes of this Agreement, “Health Care Laws”
means: (i) the Federal Food, Drug, and Cosmetic Act and the regulations promulgated thereunder; (ii) all applicable federal, state, local
and all applicable foreign health care related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42
U.S.C. Section 1320a-7b(b)), the U.S. Physician Payments Sunshine Act (42 U.S.C. § 1320a-7h), the U.S. Civil False Claims Act (31
U.S.C. Section 3729 et seq.), the criminal False Claims Law (42 U.S.C. § 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. Section 1320d et seq.), the exclusion
law (42 U.S.C. § 1320a-7), the civil monetary penalties law (42 U.S.C. § 1320a-7a), the statutes, regulations and directives
of applicable government funded or sponsored healthcare programs, and the regulations promulgated pursuant to such statutes; (iii) HIPAA,
as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. Section 17921 et seq.), and the regulations
promulgated thereunder and any state or non-U.S. counterpart thereof or other law or regulation the purpose of which is to protect the
privacy of healthcare information; (iv) Medicare (Title XVIII of the Social Security Act); (v) Medicaid (Title XIX of the Social Security
Act); and (vi) any and all other applicable health care laws and regulations.
(ff)
Regulatory Filings. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries has failed
to file with the applicable governmental authority (including the FDA or any foreign, federal, state or local governmental authority performing
functions similar to those performed by the FDA) any required filing, declaration, listing, registration, report or submission, 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 SEC Reports, all such filings, declarations, listings, registrations, reports or submissions were in material compliance
with applicable laws when filed and no deficiencies have been asserted by any applicable regulatory authority with respect to any such
filings, declarations, listings, registrations, reports or submissions, except for any deficiencies that, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect. The Company has operated and currently is, in all material respects,
in compliance with all applicable Health Care Laws. To the Company’s Knowledge, no studies, tests or trials not described in the
SEC Reports the results of which reasonably call into question in any material respect the results of the studies, tests and trials described
in the SEC Reports.
(gg)
Clinical Studies. The preclinical studies and tests and clinical trials described in the SEC Reports 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; the descriptions of such studies, tests and trials, and the results thereof, contained in the SEC Reports are accurate
and complete in all material respects; the Company is not aware of any tests, studies or trials not described in the SEC Reports, the
results of which reasonably call into question the results of the tests, studies and trials described in the SEC Reports; and the Company
has not received any written notice or correspondence from the FDA or any foreign, state or local governmental authority exercising comparable
authority or any institutional review board or comparable authority requiring the termination, suspension, clinical hold or material modification
of any tests, studies or trials.
(hh)
No Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has
conducted any general solicitation or general advertising, including methods described in Section 502(c) of Regulation D under the Securities
Act, in connection with the offer or sale of any Shares or Warrants, and neither the Company nor any person acting on its behalf offered
any of the Shares or Warrants in a manner involving a public offering under, or in a distribution in violation of, the Securities Act
or any state securities laws.
(ii)
Private Placement. Assuming the accuracy of each of the Purchaser’s representations and warranties set forth
in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Shares and Warrants by the Company
to the Purchaser as contemplated hereby.
(jj)
Accounting Controls and Disclosure Controls and Procedures. The Company and each of its Subsidiaries taken as a whole
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset 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. Since the end of the
Company’s most recent audited fiscal year, there has been (i) no material weakness in the Company’s internal control
over financial reporting (whether or not remediated) and (ii) 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.
The Company has established disclosure controls and procedures (as defined in the Exchange Act Regulations 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 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.
(kk)
Registration Rights. Other than the Purchaser pursuant to the Registration Rights Agreement and the purchasers in
the Concurrent Private Placement pursuant to the related registration rights agreement, no Person has any right to cause the Company or
any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.
(ll)
No Disqualification Events. With respect to the Shares and Warrants to be offered and sold hereunder in reliance
on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together,
“Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3). The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has
furnished to the Purchaser a copy of any disclosures provided thereunder.
(mm)
Other Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person) that has been
or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Shares or Warrants.
(nn)
Notice of Disqualification Events. The Company will notify the Purchaser in writing, prior to the Closing Date of
(i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time,
reasonably be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.
(oo)
Reserved.
(pp)
Cybersecurity. The Company and its Subsidiaries’ information technology assets and equipment, computers, systems,
networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for,
and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries
as currently conducted, and, to the Company’s Knowledge, are free and clear of all material bugs, errors, defects, Trojan horses,
time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented commercially reasonable physical, technical
and administrative controls, policies, procedures, and safeguards designed to maintain and protect their material confidential information,
including Personal Data, and the integrity, availability, and security of all IT Systems used in connection with their businesses. “Personal
Data” means any information in the Company or its Subsidiaries’ possession, custody, or control that constitutes “personally
identifying information,” “personal data,” “personal information,” or similar term as defined by applicable
Privacy Laws. Except as disclosed in the SEC Reports, there have been no material breaches, violations, outages or unauthorized uses of
or accesses to IT Systems or Personal Data, except for those that have been remedied without material cost or liability to the Company
or its Subsidiaries or the duty to notify any other Person. The Company and its Subsidiaries are presently in material compliance with
all applicable binding judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, and,
to the Company’s Knowledge, contractual obligations governing the privacy and security of IT Systems and Personal Data.
(qq)
Compliance with Data Privacy Laws. The Company and its Subsidiaries are in material compliance with all applicable
state, federal, and European Union data privacy and security laws and regulations, including to the extent applicable, the European Union
General Data Protection Regulation (“GDPR”) (EU 2016/679) (collectively, the “Privacy Laws”). The
Company and its Subsidiaries have in place, and to the Company’s Knowledge, materially comply with, their internal policies and
procedures governing data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (the
“Policies”). The Company and its Subsidiaries have, to the Company’s Knowledge, made all disclosures to users
or customers required by applicable Privacy Laws, and none of such disclosures have, to the Company’s Knowledge, been inaccurate
or in violation of any applicable Privacy Laws in any material respect. Neither the Company nor any Subsidiary: (i) has received written
notice from a governmental or regulatory authority of any claims, investigations, inquiries or alleged violations of applicable Privacy
Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; or (ii) is currently
conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any applicable Privacy
Law.
(rr)
Money Laundering. 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, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any
Subsidiary, threatened in writing.
(ss)
Subsidiaries. All significant subsidiaries (collectively, the “Subsidiaries”), (as such term is
defined in Rule 1-02 of Regulation S-X promulgated by the Commission) are listed on Exhibit 21.1 of the Company’s Annual Report
on Form 10-K for the year ended September 30, 2023. 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. No Subsidiary is currently
prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s
capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such
Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.
(tt)
Labor Disputes and Matters. Neither the Company or any of its Subsidiaries employs any person represented by a union
or collective bargaining unit. No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists or,
to the Company’s Knowledge, is threatened which would reasonably be expected to have a Material Adverse Effect.
(uu)
ERISA. To the Company’s Knowledge, 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 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. Each of the material employee benefit plans of the Company complies in all material respects with
applicable law.
(vv)
Sanctions. (i) The Company represents that, neither the Company nor any of its Subsidiaries (collectively, the “Entity”)
or, any director, officer, or employee, or to the Company’s Knowledge, any agent, affiliate or representative acting on behalf of
the Entity, is a government, individual, or entity (in this Section, “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 the Treasury’s Office of Foreign Assets Control (“OFAC”),
the United Nations Security Council, the European Union, His Majesty’s Treasury, or other relevant sanctions authorities, including
designation on OFAC’s Specially Designated Nationals and Blocked Persons List, OFAC’s Foreign Sanctions Evaders List or other
similar applicable legislation or rules (as amended, collectively, “Sanctions”), nor
(B) located,
organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit dealings with that country or territory
(currently, Cuba, Iran, North Korea, Syria, the Crimea Region of the Ukraine and the so-called Donetsk People’s Republic and the
so-called Luhansk People’s Republic) (the “Sanctioned Countries”).
(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 prohibiting such funding or facilitation or is a Sanctioned Country; or
(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 for the past 5 years, it has not engaged in, is not now engaging 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 prohibiting such dealings or transactions or is or was a Sanctioned Country.
(ww)
CFIUS. The Company does not engage in (a) the design, fabrication, development, testing, production or manufacture
of one (1) or more “critical technologies” within the meaning of the Defense Production Act of 1950, as amended, including
all implementing regulations thereof (the “DPA”); (b) the ownership, operation, maintenance, supply, manufacture, or
servicing of “covered investment critical infrastructure” within the meaning of the DPA (where such activities are covered
by column 2 of Appendix A to 31 C.F.R. Part 800); or (c) the maintenance or collection, directly or indirectly, of “sensitive personal
data” of U.S. citizens within the meaning of the DPA. The Company has no current intention of engaging in such activities in the
future.
(xx)
No Additional Representations. The Company acknowledges that the Purchaser makes no representation or warranty as
to any other matter whatsoever except as expressly set forth in Section 3.2 hereof or in any certificate delivered by the Purchaser pursuant
to this Agreement, and the Company has not relied on or been induced by such information or any other representations or warranties (whether
express or implied or made orally or in writing) not expressly set forth in Section 3.2 or in any certificate delivered by the Purchaser
pursuant to this Agreement. The Company acknowledges and agrees that, except for the representations and warranties expressly set forth
in Section 3.2 or in any certificate delivered by the Purchaser pursuant to this Agreement, (i) no Person has been authorized by the Purchaser
to make any representation or warranty relating to the Purchaser or otherwise in connection with the transactions contemplated hereby,
and if made, such representation or warranty must not be relied upon by the Company as having been authorized by the Purchaser, and (ii)
any materials or information provided or addressed to the Company or any of its Affiliates or representatives are not and shall not be
deemed to be or include representations or warranties of the Purchaser unless any such materials or information are the subject of any
express representation or warranty set forth in Section 3.2 of this Agreement or in any certificate delivered by the Purchaser pursuant
to this Agreement.
3.2
Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof
and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of
such date):
(a)
Organization; Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents
and performance by the Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser. Each Transaction Document
to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof,
will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except:
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.
(b)
No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement, the other Transaction Documents
to which it is a party, and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (i) result
in a violation of the organizational documents of the Purchaser, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Purchaser is a party, or (iii) result in a violation by the Purchaser of any law,
rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Purchaser, except in the case
of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of the Purchaser to perform its obligations under the Transaction
Documents to which it is a party.
(c)
Understandings or Arrangements. The Purchaser is acquiring the Securities, and upon exercise of the Warrants, will
acquire the Warrant Shares issuable upon exercise of the Warrants, as principal for its own account, for investment purposes only, and
has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable federal
and state securities laws). The Purchaser is acquiring the Securities hereunder in the ordinary course of its business. The Purchaser
understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling
such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention
of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or
indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation
of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Purchaser’s right
to sell the Securities pursuant to the Registration Statement(s) or otherwise in compliance with applicable federal and state securities
laws).
(d)
Purchaser Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is,
and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3) or (a)(7) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act. The Purchaser is not a registered broker-dealer registered under Section 15(a) of the Exchange Act, or a member of
FINRA or an entity engaged in the business of being a broker-dealer. The Purchaser is not affiliated with any broker-dealer registered
under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the business of being a broker-dealer.
(e)
Experience of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of its decision to purchase Securities pursuant to the Transaction
Documents. The Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to
the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment advice. The Purchaser has consulted
such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of the Securities.
(f)
General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or
radio or presented at any seminar or, to the knowledge of the Purchaser, any other general solicitation or general advertisement. The
Purchaser represents that it is not a person of the type described in Section 506(d) of Regulation D under the Securities Act that
would disqualify the Company from engaging in a transaction pursuant to Section 506 of Regulation D under the Securities Act. The
Purchaser also represents that the Purchaser was contacted regarding the sale of the Securities by the Company (or an authorized agent
or representative of the Company) with which the Purchaser had a substantial pre-existing relationship.
(g)
Beneficial Ownership. Except with respect to any stockholder that owns in excess of 19.999% of the outstanding shares
of common stock on the date hereof, the purchase by the Purchaser of the Securities issuable to it at the Closing will not result in the
Purchaser (individually or together with any other Person with whom the Purchaser has identified, or will have identified, itself as part
of a “group” in a public filing made with the Commission involving the Company’s securities) acquiring, or obtaining
the right to acquire, in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction
basis that assumes that such Closing shall have occurred. The Purchaser does not presently intend to, alone or together with others, make
a public filing with the Commission to disclose that it has (or that it together with such other Persons have) acquired, or obtained the
right to acquire, as a result of such Closing (when added to any other securities of the Company that it or they then own or have the
right to acquire), in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction
basis that assumes that each Closing shall have occurred.
(h)
Access to Information. The Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as
it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering
of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company, its Subsidiaries
and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it
to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.
(i)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, directly or indirectly executed any
purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that the Purchaser
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other than to other Persons party
to this Agreement or to the Purchaser’s representatives, including its officers, directors, partners, legal and other advisors,
employees, agents and Affiliates, the Purchaser has maintained the confidentiality of all disclosures made to it in connection with the
transactions contemplated by the Transaction Documents (including the existence and terms of the transactions contemplated hereby and
thereby).
(j)
Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid
right, interest or claim against or upon the Company or the Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Purchaser.
(k)
No Governmental Review. The Purchaser understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the
investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.
(l)
Regulation M. The Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange Act may
apply to sales of Common Stock and other activities with respect to the Common Stock by the Purchaser.
(m)
Residency. The Purchaser’s residence (if an individual) or offices in which its investment decision with respect
to the Securities was made (if an entity) are located at the address immediately below the Purchaser’s name on its signature page
hereto.
(n)
Foreign Purchasers. If the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the
Code): (i) the Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction by the
Purchaser in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (A) the legal
requirements within its jurisdiction for the purchase of the Securities, (B) any foreign exchange restrictions applicable to such
purchase or acquisition, (C) any government or other consents that may need to be obtained, and (D) the income tax and other
tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities; and (ii) the
Purchaser’s subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities
or other laws of the Purchaser’s jurisdiction.
The Company acknowledges and
agrees that the representations contained in this Section 3.2 shall not modify, amend or affect the Purchaser’s right to rely on
the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any
other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation
of the transactions contemplated hereby.
ARTICLE
IV
OTHER AGREEMENTS OF THE PARTIES
4.1
Transfer Restrictions.
(a)
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser,
the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that
such transfer does not require registration of such transferred Securities under the Securities Act. Other than a transfer pursuant to
an effective registration statement or Rule 144, as a condition of transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and the Registration Rights Agreement and shall have the rights and obligations of the Purchaser under this
Agreement and the Registration Rights Agreement.
(b)
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
in the following form:
[NEITHER] THIS SECURITY [NOR THE SECURITIES
FOR WHICH THIS SECURITY IS [EXERCISABLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTION SET
FORTH HEREIN AND IN THE SECURITIES PURCHASE AGREEMENT, DATED JANUARY 22, 2024. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
(c)
Certificates evidencing the Shares and the Warrant Shares shall not be required to contain any legend (including the legend
set forth in Section 4.1(b) hereof): (i) while the Shares and Warrant Shares are eligible to be sold or transferred or are sold or transferred
pursuant to an effective registration statement (including the Registration Statement) covering the resale of such security under the
Securities Act, (ii) while such Shares or Warrant Shares are eligible for sale or transfer under Rule 144 or are sold or transferred pursuant
to Rule 144 or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer
Agent or the applicable Purchaser within two (2) Business Days if required by the Transfer Agent to effect the removal of the legend hereunder,
or if requested by the Purchaser, respectively, subject to the receipt of a duly executed certificate of representations of the Purchaser,
in form and substance reasonably satisfactory to the Company’s counsel. If all or any
portion of a Warrant is exercised at a time when there is an effective registration statement pursuant to which the applicable Warrant
Shares are eligible for transfer or resale, or if such Warrant Shares are eligible to be transferred or sold under Rule 144 and the Company
is then in compliance with the current public information required under Rule 144, or if the Warrant Shares may be sold under Rule 144
without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant
Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of
the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Warrant Shares
shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under this Section
4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement
Period (as defined below) following the delivery by the Purchaser to the Company or the Transfer Agent of a certificate representing Shares
or Warrant Shares, as applicable, issued with a restrictive legend (such date, the “Legend Removal Date”), together
with such other letters of representation as the Company may reasonably request, deliver or cause to be delivered to the Purchaser a certificate
representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or
give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Shares
or Warrant Shares, as applicable, subject to legend removal hereunder shall be transmitted by the Transfer Agent to the applicable Purchaser
by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by the Purchaser.
The Company shall be responsible for the fees and expenses of its transfer agent, its legal counsel, and DTC fees required in connection
with the delivery of unlegended shares in accordance with the foregoing. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Trading Days, on the Principal Trading Market with respect to the Common
Stock as in effect on the date of delivery of a certificate representing Shares or Warrant Shares, as applicable, issued with a restrictive
legend.
(d)
The Purchaser agrees with the Company that the Purchaser will sell any Securities pursuant to either the registration requirements
of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are
sold pursuant to a Registration Statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon
the Company’s reliance upon this understanding.
4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Shares and Warrant Shares, as applicable,
may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The
Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue
the Shares or Warrant Shares, as applicable, pursuant to the Transaction Documents, are unconditional and absolute and not subject to
any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against the applicable Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders
of the Company.
4.3
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale of the Securities or that would be integrated with the
offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require stockholder
approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent
transaction.
4.4
Securities Laws Disclosure; Publicity. The Company shall (a) at or around 8:00 a.m. New York City time on January
23, 2024, issue a press release disclosing all material terms of the transactions contemplated hereby; and (b) within the time required
by the Exchange Act, file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto. From and after the issuance
of the press release provided in clause (a), Purchaser and Purchaser’s affiliates, attorneys, agents and representatives shall not
be in possession of any material, non-public information received from the Company, any subsidiary or any of their respective representatives,
affiliates, officers, directors, or employees or agents, unless the Purchaser has consented in writing to the receipt of material, non-public
information and have a written agreement with the Company to keep such information confidential.
4.5
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any
other Person, that the Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of
receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchaser.
4.6
Reservation and Listing of Securities; Requisite Stockholder Approval.
(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, including without
limitation the exercise of the Warrants, following the receipt of the Requisite Stockholder Approval.
(b)
The Company shall take all action necessary under applicable law to submit to its stockholders, in connection with its 2024
annual meeting of stockholders (the “2024 Stockholder Meeting”): (i) a proposal to amend the Certificate of Incorporation
(the “Charter Amendment”) to increase the number of authorized but unissued shares of Common Stock to at least the
Required Minimum (the “Charter Amendment Proposal”), (ii) a proposal to authorize the Board of Directors to implement
a reverse stock split of the Common Stock (the “Reverse Stock Split”) within a range of between 1-for-10 to 1-for-25
(the “Reverse Stock Split Proposal”), (iii) a proposal to approve the issuance of the Securities under relevant Nasdaq
rules (the “Nasdaq Proposal,” and together with the Reverse Stock Split Proposal and the Charter Amendment Proposal,
the “Proposals”). The Company shall take reasonable measures to ensure that all proxies solicited in connection with
the 2024 Stockholder Meeting are solicited in compliance with applicable law. Notwithstanding anything to the contrary contained herein,
if on the date of the 2024 Stockholder Meeting, or a date preceding the date on which the 2024 Stockholder Meeting is scheduled, the Company
reasonably believes that (a) it will not receive proxies sufficient to obtain the approval of the holders of Common Stock for the Proposals
(the “Requisite Stockholder Approval”), whether or not a quorum would be present or (b) it will not have sufficient
shares of Common Stock represented (whether in person or by proxy) to constitute a quorum necessary to conduct the business of the 2024
Stockholder Meeting, the Company may postpone or adjourn, or make one or more successive postponements or adjournments of, the 2024 Stockholder
Meeting as long as the date of the 2024 Stockholder Meeting occurs on or before April 15, 2024 (the “Outside Date”).
The Company agrees that, subject to the Board of Directors’ compliance with its fiduciary duties under applicable law, (a) the Board
of Directors shall recommend that the holders of Common Stock vote to approve the Proposals and shall use commercially reasonable efforts
to solicit such approval within the time frame set forth in this Section 4.6 and (b) the definitive proxy statement relating to the 2024
Stockholder Meeting shall include a statement to the effect that the Board of Directors recommends that the Company’s stockholders
vote to approve the Proposals. Concurrent with the entry into this Agreement, the Company shall have entered into Voting and Support Agreements
in the form attached hereto as Exhibit C with all members of the Board of Directors, as well as any investment companies that such
members of the Board represent that hold shares in the Company, providing for their commitment to vote affirmatively on the Proposals
with all of the voting power associated with the shares of Common Stock beneficially held by such Persons. Subject to receipt of the requisite
stockholder approval of the Reverse Stock Split Proposal, the Company shall implement the Reverse Split Stock Split within five (5) Trading
Days following the 2024 Stockholder Meeting.
(c)
The Company shall: (i) in the time and manner required by the Principal Trading Market, prepare and file with such Trading
Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on
the date of such application, (ii) use its commercially reasonable efforts to take all steps necessary to cause such shares of Common
Stock to be approved for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchaser evidence
of such listing or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required
Minimum on such date on such Trading Market or another Trading Market. The Company agrees to maintain the eligibility of the Common Stock
for electronic transfer through DTC or another established clearing corporation, including, without limitation, by timely payment of fees
to DTC or such other established clearing corporation in connection with such electronic transfer.
(d)
So long as the Purchaser holds any securities of the Company contemplated by this Agreement, the Company shall make all
filings with the Commission required under the Exchange Act in the time and manner required by the Commission.
4.7
Certain Transactions and Confidentiality. The Purchaser covenants that neither it, nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company’s
securities during the period commencing with the execution of this Agreement and ending on the date and such time that the transactions
contemplated by this Agreement are first publicly announced pursuant to Section 4.4. The Purchaser further covenants that neither it,
nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any Short Sales of any of the Company’s
securities during the period that commences on the fourteenth (14th) calendar day preceding the date of the 2024 Stockholder
Meeting and ends on the Pricing Date (the “Pre-Pricing Period”). The Purchaser covenants that until such time as the
transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to Section 4.4, the Purchaser will maintain
the confidentiality of the existence and terms of the transactions contemplated hereby. The Company expressly acknowledges and agrees
that (i) the Purchaser makes no representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to Section 4.4
(provided that the Purchaser agrees to the restrictions on Short Sales during the Pre-Pricing Period described above), (ii) the Purchaser
shall not be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities
laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to Section 4.4
(provided that the Purchaser agrees to the restrictions on trading during the Pre-Pricing Period described above) and (iii) the Purchaser
shall not have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after
the date and time of the filing of the Form 8-K as described in Section 4.4 (provided that the Purchaser agrees to the restrictions on
trading during the Pre-Pricing Period described above). Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of the Purchaser’s assets and the portfolio managers
have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of the Purchaser’s assets,
the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement. For the avoidance of doubt, this Section 4.7 does not supersede or replace
any confidentiality obligations that the Purchaser may have to the Company pursuant to any prior confidentiality agreement entered between
the Purchaser and the Company and such confidentiality agreement remains in effect in accordance with its terms.
4.8
Exercise Procedures. The form of Notice of Exercise included in the Warrants sets forth the totality of the procedures
required of the Purchaser in order to exercise the Warrants. Without limiting the preceding sentence, no ink-original Notice of Exercise
shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required
in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required of the Purchaser to
exercise its Warrants. The Company shall honor exercise of the Warrants and shall deliver Warrant Shares in accordance with the terms,
conditions and time periods set forth in the Transaction Documents.
4.9
Limitations on Offerings. Prior to the Closing Date, the Company will not offer or sell any Common Stock or Common
Stock Equivalents, or engage in any discussions or negotiations with any third parties regarding any such transactions, other than: (a) the
issuance of Common Stock or Common Stock Equivalents in the Concurrent Private Placement, (b) the issuance of Common Stock or Common Stock
Equivalents to employees, officers, directors, consultants or vendors of the Company pursuant to any stock or option plan duly adopted
for such purpose, by the Board of Directors or a majority of the members of a committee of directors established for such purpose, or
(c) the issuance of securities upon the exercise or exchange of or conversion of any securities exercisable or exchangeable for
or convertible into Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended
since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities.
ARTICLE
V
MISCELLANEOUS
5.1
Termination. This Agreement will automatically terminate upon the day immediately following the Outside Date, in
the event that the Requisite Stockholder Approval is not received by the Company on or prior to the Outside Date. In addition, this Agreement
may be terminated by the Company or the Purchaser with respect to itself if the Closing has not been consummated on or before the fifteenth
(15th) Trading Day following receipt of the Requisite Regulatory Approval; provided, however, that (A) no such termination
will (i) affect the right of any party to sue for any breach by any other party (or parties), (ii) relieve any party from liability for
any willful misconduct or breach of this Agreement, fraud or knowing misrepresentation or omission, and (B) the provisions of this Section
5.1 (termination) and Section 5.2 (fees and expenses) shall remain in full force and effect and survive any termination of this Agreement.
In the event of termination: (i) if applicable, the Company shall promptly return the Purchaser’s Subscription Amount to each respective
Purchaser by wire transfer of United States dollars in immediately available funds to the account specified by the Purchaser, and any
book entries for the Shares and Warrants shall be deemed cancelled, and (ii) the Company shall reimburse the Purchaser for its reasonable
and documented fees and expenses of legal counsel incurred in connection with the transactions contemplated herein (net of any prior reimbursement
under Section 5.2), provided that such amount shall not exceed $5,000.
5.2
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary (including Section
5.1), each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Notwithstanding
the previous sentence, the Company shall pay all reasonable and documented fees and expenses incurred in connection with the Transaction
Documents, including any Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction
letter delivered by the Company and any exercise notice delivered by the Purchaser, if applicable), stamp taxes and other taxes and duties
levied in connection with the delivery of any Securities to the Purchaser.
5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
5.4
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication
is delivered via facsimile at the facsimile number or email attachment at the e-mail address as set forth on the signature pages attached
hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such
notice or communication is delivered via facsimile or email attachment at the facsimile number or e-mail address as set forth on the signature
pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
(2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the
signature pages attached hereto.
5.5
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed by the Company and the Purchaser. No waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right. Any amendment effected in accordance with this Section 5.5 shall be binding upon the Purchaser
and any subsequent holder of Securities and the Company.
5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not
be deemed to limit or affect any of the provisions hereof.
5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent
of the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this Agreement to any Person to whom
the Purchaser assigns or transfers any Securities, provided, that such transferee agrees in writing to be bound, with respect to
the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchaser.”
5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.
5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (unless stated to the otherwise in
such Transaction Document) (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party
hereby irrevocably submits to the 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 herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions
of the Transaction Documents, then the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
Action or Proceeding.
5.10
Survival and Indemnification.
(a)
Subject to the applicable statute of limitations, the representations and warranties contained herein hereto shall survive the Closing
and the delivery of the Securities.
(b) The
Company agrees to indemnify and hold harmless the Purchaser and its Affiliates, and their respective directors, officers, trustees, members,
managers, employees, investment advisers and agents, to the fullest extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities and expenses, joint or several, (including without limitation reasonable and documented attorney fees and
disbursements and other documented out-of-pocket expenses reasonably incurred in connection with investigating, preparing or defending
any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) to which such Person may become subject as
a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under
the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by such Person solely to the extent
such amounts have been finally judicially determined not to have resulted from such Person’s fraud or willful misconduct.
(c) Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate
counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person
unless (a) the indemnifying party has agreed in writing to pay such fees or expenses, (b) the indemnifying party shall have failed to
assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect
to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel
at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf
of such person); and provided, further, that the failure of any indemnified party to give written notice as provided herein shall not
relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely
affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not,
in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys
at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party, which consent
shall not be unreasonably withheld, conditioned or delayed, consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation. No indemnified party will, except with the consent of the indemnifying party, which consent shall
not be unreasonably withheld, conditioned or delayed, consent to entry of any judgment or enter into any settlement.
5.11
Execution. This Agreement may be executed in counterparts, each of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party,
it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.
5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by
such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.
5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) any of the other Transaction Documents, whenever the Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then the Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election
in whole or in part without prejudice to its future actions and rights; provided, however, that, in the case of a rescission
of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock subject to any such rescinded
exercise notice concurrently with the return to the Purchaser of the aggregate exercise price paid to the Company for such shares and
the restoration of the Purchaser’s right to acquire such shares pursuant to the Purchaser’s Warrant (including, issuance of
a replacement warrant certificate evidencing such restored right).
5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case
of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.
5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, the Purchaser and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree
that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction
Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a
remedy at law would be adequate.
5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law
(including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent
of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force
and effect as if such payment had not been made or such enforcement or setoff had not occurred.
5.17
Reserved.
5.18
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the
next succeeding Business Day.
5.19
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition,
each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the
date of this Agreement.
5.20
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
(Signature Pages Follow)
IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.
OUTLOOK THERAPEUTICS, INC. |
|
Address for Notice:
Outlook Therapeutics, Inc.
485 Route 1 South
Building F, Suite 320
Iselin, New Jersey 08830 |
|
|
|
Email: |
By: |
/s/ Lawrence Kenyon |
|
|
|
Name: Lawrence Kenyon |
|
|
|
Title: Chief Financial Officer |
|
|
With a copy to (which shall not constitute
notice):
Cooley LLP
55 Hudson Yards
New York, New York 10001
Attention: Yvan-Claude Pierre
Email: ypierre@cooley.com
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOR THE PURCHASER FOLLOWS]
[Signature Page to the Securities Purchase Agreement]
IN WITNESS WHEREOF, the undersigned
have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.
/s/ Zongmei Zheng
By: __Syntone Ventures, LLC___
Its: ________________________
Name of Authorized Signatory: ___Zongmei
Zheng____
Title of Authorized Signatory: ____Executive
Chairman___
Email Address of Authorized Signatory:
______________________
Address for Notice to Purchaser: ________________________
-____________________
-____________________
With a copy to (which shall not constitute
notice):
Shearman & Sterling LLP
800 Capitol Street, Suite 2200
Houston, Texas 77002
Attention: Taylor Landry
Email: Taylor.Landry@Shearman.com
The Purchaser’s investment decision was made by an investment committee of individuals who reside in various states, including: |
|
Aggregate Subscription Amount: |
|
Shares of Common Stock: |
|
Warrant Shares: |
□ 4.99% or □ 9.99% or □19.99% or □
N/A
|
Purchase Price of Common Stock and Warrants: |
|
Delivery Instructions, if different from above:
c/o:
Street:
City/State/Zip:
Attention:
Telephone No.:
[Signature Page to the Securities Purchase Agreement]
EXHIBIT A
Registration Rights Agreement
[Filed separately.]
EXHIBIT B
Form of Warrant
[Filed separately.]
EXHIBIT C
Form of Support Agreement
[Filed separately.]
Exhibit 10.5
REGISTRATION RIGHTS AGREEMENT
This Registration Rights
Agreement (this “Agreement”) is made and entered into as of January 22, 2024, between Outlook Therapeutics,
Inc., a Delaware corporation (the “Company”), and Syntone Ventures, LLC (the “Investor”).
This Agreement is made pursuant
to the Securities Purchase Agreement, dated on or about the date hereof, between the Company and the Investor (the “Purchase
Agreement”).
The Company and the Investor
hereby agree as follows:
Section
1.
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall
have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following
meanings:
“Advice”
has the meaning set forth in Section 6(c).
“Allowed Delay”
means a period for no more than 30 consecutive calendar days or more than an aggregate of 60 calendar days (which need not be consecutive
calendar days) during any 12-month period in which the Company determines in good faith that the suspension of a Registration Statement
is necessary pursuant to Sections 3(d)(vi) and 3(d)(vii).
“Effectiveness Date”
means, with respect to the Initial Registration Statement required to be filed hereunder, the 45th calendar day following the
Closing Date (or in the event of a full review by the Commission, the 60th calendar day following the Closing Date) and with respect to
any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the 30th
calendar day following the date on which an additional Registration Statement is required to be filed hereunder (or, in the event of a
full review by the Commission, the 90th calendar day following the date such additional Registration Statement is required to be filed
hereunder; provided, however, that in the event the Company is notified by the Commission that one or more of the above
Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such
Registration Statement shall be the third Trading Day following the date on which the Company is so notified if such date precedes the
dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day,
then the Effectiveness Date shall be the next succeeding Trading Day.
“Effectiveness Period”
has the meaning set forth in Section 2(a).
“Event”
has the meaning set forth in Section 2(d).
“Event Date”
has the meaning set forth in Section 2(d).
“Filing Date”
means with respect to the Initial Registration Statement required hereunder, the 5th calendar day following the Closing Date
(provided that if such day falls on a day when the SEC's EDGAR system is not available to accept filings, then the next day EDGAR is available
to accept filings), and (b) with respect to any additional Registration Statements which may be required pursuant to Section 2(c)
or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.
“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.
“Indemnified Party”
has the meaning set forth in Section 5(c).
“Indemnifying Party”
has the meaning set forth in Section 5(c).
“Initial Registration
Statement” means the initial Registration Statement filed to register the shares of Common Stock and the shares of Common Stock
underlying the Warrants as provided in and pursuant to this Agreement.
“Losses”
has the meaning set forth in Section 5(a).
“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed
herein.
“Plan of Distribution”
has the meaning set forth in Section 2(a).
“Prior Agreements”
means the Amended and Restated Investor Rights Agreement, dated April 21, 2022, between the Company and GMS Ventures and Investments.
“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission
pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.
“Registrable Securities”
means, as of any date of determination, (a) the Shares, (b) all Warrant Shares then issued and issuable upon exercise of the Warrants
(assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) any additional shares
of Common Stock issued and issuable in connection with any anti-dilution provisions in the Warrants (in each case, without giving effect
to any limitations on exercise set forth in the Warrants) and (d) any securities issued or then issuable upon any stock split, dividend
or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such
Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of
any, or file another, Registration Statement hereunder with respect thereto) upon (a) sale of such securities pursuant to an effective
Registration Statement, (b) sale of such securities in accordance with Rule 144, or (c) such securities becoming eligible for resale without
volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter
to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders, as reasonably determined by the Company,
upon the advice of counsel to the Company.
“Registration Statement”
means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration statements
contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in any such registration statement.
“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
“Selling Stockholder
Questionnaire” has the meaning set forth in Section 3(a).
“SEC Guidance”
means (i) any publicly available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.
“Trading Day”
means any day on which the Trading Market is open for trading.
“Trading Market”
means the principal national securities exchange on which Registrable Securities are listed.
Section
2.
Demand Registration.
(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering
the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to
be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except if the Company
is not then eligible to register for resale the Registrable Securities on Form S-3, subject to the provisions of Section 2(d))
and shall contain (unless otherwise directed by at least 85% in interest of the Holders or to make any disclosure contained therein not
misleading) substantially the “Plan of Distribution” attached hereto as Annex A and substantially the “Selling
Stockholder” section attached hereto as Annex B. Subject to the terms of this Agreement, the Company shall use reasonable
best efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c))
to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the
applicable Effectiveness Date, and shall use reasonable best efforts to keep such Registration Statement continuously effective under
the Securities Act until the date that all Registrable Securities covered by such Registration Statement cease to be Registrable Securities
(the “Effectiveness Period”). The Company shall notify the Holders via e-mail of the effectiveness of a Registration
Statement as promptly as practicable, and shall, if requested, provide the Holders with copies of the final Prospectus to be used in connection
with the sale or other disposition of the securities covered thereby.
(b)
Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that
all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering
on a single registration statement, the Company agrees to promptly inform each of the Holders thereof and use reasonable best efforts
to file an amendment or amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of
Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the
Registrable Securities as a secondary offering, subject to the provisions of Section 2(c) with respect to filing on Form S-3 or
other appropriate form; provided, however, that prior to filing such amendment, the Company shall be obligated to use diligent
efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance,
including without limitation, Securities Act Rules Compliance and Disclosure Interpretation 612.09.
(c)
Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on
the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding
that the Company used diligent efforts to advocate with the Commission to maximize the number of Registrable Securities to be registered),
unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered
on such Registration Statement will be reduced as follows:
(i)
First, the Company shall reduce or eliminate any securities to be included other than Registrable Securities; and
(ii)
Second, the Company shall reduce Registrable Securities represented by Shares and Warrant Shares (applied to the Holders
on a pro rata basis based on the total number of unregistered Shares and Warrant Shares held by such Holders).
In
the event of a reduction hereunder, the Company shall give the Holder at least five (5) Trading Days’ prior written notice along
with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance
with the foregoing, then the Company shall use reasonable best efforts to file with the Commission, as promptly thereafter as allowed
by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements
on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the
Initial Registration Statement, as amended.
(d)
If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date, (ii) the Company fails to file with
the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant
to the Securities Act, within two Trading Days of the date that the Company is notified in writing by the Commission that such Registration
Statement will not be “reviewed” or will not be subject to further review, (iii) a Registration Statement registering for
resale all of the Registrable Securities is not declared effective by the Commission by the Effectiveness Date of the Initial Registration
Statement or (iv) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously
effective as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities (other than during an Allowed Delay), for more than 15 consecutive calendar
days or more than an aggregate of 20 calendar days (which need not be consecutive calendar days) during any 12-month period (any such
failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iii), the date on which such Event
occurs, and for purpose of clause (ii) the date on which such two Trading Day period is exceeded, and for purpose of clause (iv) the date
on which such 15 or 20 calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in
addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary
of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company
shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied
by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. The parties agree that the maximum aggregate
liquidated damages payable to a Holder under this Agreement shall be 12.0% of the aggregate Subscription Amount paid by such Holder pursuant
to the Purchase Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven Trading
Days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts,
plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro
rata basis for any portion of a month prior to the cure of an Event. The parties agree that notwithstanding anything to the contrary herein
or in the Purchase Agreement, no liquidated damages shall be payable (i) if as of the relevant Event Date, the Registrable Securities
may be sold by the Holders without volume or manner of sale restrictions under Rule 144, as determined by counsel to the Company pursuant
to a written opinion letter to such effect, addressed and reasonably acceptable to the Holder and the Company’s transfer agent,
if any, (ii) to a Holder with respect to an Event caused by any action of such Holder or failure of such Holder to take any action that
such Holder is required to take hereunder, or (iii) to a Holder in the event it is unable to lawfully sell any of its Registrable Securities
because of possession of material non-public information.
(e)
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i)
register the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement
then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the Commission.
(f)
Notwithstanding anything to the contrary contained in this Agreement, in no event shall the Company be permitted to name
any Holder or affiliate of a Holder as any underwriter without the prior written consent of such Holder.
Section
3.
Registration Procedures.
In
connection with the Company’s registration obligations hereunder, the Company shall:
(a)
Not less than five Trading Days prior to the filing of each Registration Statement and not less than one Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall (i) furnish to the Investor copies of all such documents proposed to be filed,
which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of the Investor,
and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries of the Investor
as shall be necessary, in the reasonable opinion of counsel to the Lead Investor, to conduct a reasonable investigation within the meaning
of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which the Investor shall reasonably object in writing in good faith, provided that, the Company is notified of such objection
in writing no later than five Trading Days after the Investor has been so furnished copies of a Registration Statement or one Trading
Day after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees
to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex C (a “Selling Stockholder
Questionnaire”) on a date that is the earlier of two Trading Days prior to the Filing Date or by the end of the fourth (4th)
Trading Day following the date on which such Holder receives draft materials in accordance with this Section.
(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement
and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements
in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to
be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect
to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Investor true and complete
copies of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall
excise any information contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries),
and (iv) comply in all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the
terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so
amended or in such Prospectus as so supplemented.
(c)
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares
of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any
case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.
(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vii) hereof,
be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Holder)
confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement
or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether
there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration
Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii)
of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities
or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein, (vi) of the occurrence of any event or passage of time that makes
any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference
untrue in any material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the
case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and (vii) of the occurrence or existence of any pending corporate development or negotiation
or consummation of a transaction with respect to the Company that the Company believes may be material and that, in the determination
of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus;
provided, however, that in no event shall any such notice contain any information which would constitute material, non-public
information regarding the Company or any of its Subsidiaries and the Company agrees that the Holders shall not have any duty of confidentiality
to the Company or any of its Subsidiaries with respect to the information contained in such notice and shall not have any duty to the
Company or any of its Subsidiaries not to trade on the basis of such information, provided that the Holders shall remain subject to applicable
law; provided, further, that the Company shall use commercially reasonable efforts to terminate an Allowed Delay as promptly as practicable.
(e)
Use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or
suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.
(f)
Furnish to each Holder whose Registrable Securities are included in any Registration Statement, if requested by such Holder,
without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial statements
and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Holder, and
all exhibits to the extent requested by such Holder (including those previously furnished or incorporated by reference) promptly after
the filing of such documents with the Commission, provided that any such item which is available on the EDGAR system (or successor
thereto) need not be furnished in physical form.
(g)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).
(h)
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities
in effecting a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Holder.
(i)
Prior to any resale of Registrable Securities by a Holder, use reasonable best efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of
such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during
the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions
of the Registrable Securities covered by each Registration Statement, provided that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.
(j)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates (or
evidence of book-entry registration) representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates (or book-entry evidence) shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends,
and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request.
(k)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances
taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (iii) through
(vii) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made,
then the Holders shall suspend use of such Prospectus, provided that such notice shall not convey any material non-public information
regarding the Company. The Company will use reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly
as is practicable. The Company shall be entitled to exercise its right under this Section 3(k) to suspend the availability
of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to Section
2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.
(l)
Otherwise use reasonable best efforts to comply with all applicable rules and regulations of the Commission under the Securities
Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement
or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions
as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.
(m)
The Company shall use reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto)
for the registration of the resale of Registrable Securities.
(n)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of
Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares.
Section
4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by
the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The
fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to
filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common Stock is
then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in
writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v)
Securities Act liability insurance, if the Company so desires such insurance, (vi) the reasonable fees and expenses of one legal counsel
selected by the holders of a majority-in-interest of the Registrable Securities included in such registration not to exceed $35,000,
and (vii) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated
by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation
of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing
of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker
or similar commissions of any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs
of the Holders.
Section
5.
Indemnification.
(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and
hold harmless each Holder who sells Registrable Securities covered by such Registration Statement and the officers, directors, managers,
members, partners, agents, brokers and employees (and any other Persons with a functionally equivalent role of a Person holding such titles,
notwithstanding a lack of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, managers, members, stockholders, partners,
agents and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against
any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of
a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act or any other law, including, without limitation, any state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements
or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for
use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus
or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A and Annex B hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vii), the use
by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice
contemplated in Section 6(c). The Company shall notify the Holders promptly in writing of the institution, threat or assertion
of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall
survive the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(f).
(b)
Indemnification by Holders. Each Holder shall, notwithstanding any termination of this Agreement, severally and not
jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title), each Person who controls the
Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents
or employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such
title or any other title) of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses,
as incurred, to the extent arising out of or based solely upon: any untrue or alleged untrue statement of a material fact contained in
any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
(i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing
by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only
to the extent, that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement (it being understood that the Holder has approved Annex A and Annex B hereto for this
purpose), such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section
5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission) received by such Holder upon the sale of the Registrable Securities included in the Registration Statement
giving rise to such indemnification obligation.
(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled
to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees
and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the Indemnifying Party.
An Indemnified Party shall
have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing
to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ
counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including
any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably
believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable
fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall
not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably
withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of
any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release
of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and includes no admission of wrong-doing
by the Indemnified Party.
Subject to the terms of this
Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in
connection with investigating, preparing to defend or defending such Proceeding in a manner not inconsistent with this Section) shall
be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party, provided
that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such
actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject
to appeal or further review) not to be entitled to indemnification hereunder.
(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party
or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid
or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.
The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this
Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.
The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
In no event shall (i) a Holder of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) be entitled to contribution from any other Holder of Registrable Securities who was not guilty of fraudulent misrepresentation,
and (ii) the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds
(net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages
such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received
by it upon the sale of the Registrable Securities giving rise to such contribution obligation.
The indemnity and contribution
agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.
Section
6.
Miscellaneous.
(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to seek specific performance of its rights under this Agreement. Each
of the Company and each Holder agrees that monetary damages may not provide adequate compensation for any losses incurred by reason of
a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.
(b)
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of
its security holders (other than the investors party to the Prior Agreements) may include securities of the Company in any Registration
Statements other than the Registrable Securities until such time as the Registrable Securities have all been registered pursuant to this
Agreement. The Company shall not file any other registration statements until all Registrable Securities are registered pursuant to a
Registration Statement that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit
the Company from filing amendments or supplements to registration statements filed prior to the date of this Agreement so long as no new
securities are registered on any such existing registration statements.
(c)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of
a notice from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vii), such
Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended)
may be resumed. The Company will use reasonable best efforts to ensure that the use of the Prospectus may be promptly resumed. Any period
during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions
of Section 2(d), except if such period is an Allowed Delay.
(d)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be
in writing and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of
clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if
any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately
impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered
for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly
affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver
or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section 6(d). No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also
is offered to all of the parties to this Agreement.
(e)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be delivered as set forth in the Purchase Agreement.
(f)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each
Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement.
(g)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor
shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Other than the Prior Agreements, neither the Company nor any of its Subsidiaries has previously entered into any agreement granting
any registration rights with respect to any of its securities to any Person that have not been satisfied in full.
(h)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that parties need not sign the same counterpart. In the event that any signature is delivered
by delivery of a “.pdf” format data file or any electronic signature complying with the U.S. federal ESIGN Act of 2000, such
signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such “.pdf” signature page were an original thereof.
(i)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be determined in accordance with the provisions of the Purchase Agreement.
(j)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided
by law.
(k)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable
best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid,
illegal, void or unenforceable.
(l)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and
shall not be deemed to limit or affect any of the provisions hereof.
(m)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several
and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing,
and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as
a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company
acknowledges that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to
such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights
arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding
for such purpose. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder,
solely, and not between the Company and the Holders collectively and not between and among Holders.
(Signature Pages Follow)
IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.
|
OUTLOOK THERAPEUTICS, INC. |
|
By: |
/s/ Lawrence Kenyon |
|
|
Name: Lawrence Kenyon |
|
|
Title: Chief Financial Officer |
[Signature
Page to Registration Rights Agreement]
Name of Holder: ___Syntone Ventures, LLC________
By: _____/s/ Zongmei Zheng___________
Name of Authorized Signatory: Zongmei Zheng
Title of Authorized Signatory: Executive Chairman
[Signature
Page to Registration Rights Agreement]
Annex A
PLAN OF DISTRIBUTION
Each
Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their respective securities covered hereby on the Trading Market or any other stock exchange,
market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices.
A Selling Stockholder may use any one or more of the following methods when selling securities:
| · | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
| · | block trades in which the broker-dealer will attempt to sell the securities as agent but may position
and resell a portion of the block as principal to facilitate the transaction; |
| · | purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
| · | an exchange distribution in accordance with the rules of the applicable exchange; |
| · | privately negotiated transactions; |
| · | in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number
of such securities at a stipulated price per security; |
| · | through the writing or settlement of options or other hedging transactions, whether through an options
exchange or otherwise; |
| · | a combination of any such methods of sale; or |
| · | any other method permitted pursuant to applicable law. |
A Selling Stockholder may
also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended, or the Securities
Act, if available, rather than under this prospectus.
Broker-dealers engaged by
a Selling Stockholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from a Selling Stockholder (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to
be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance
with FINRA Rule 2121.
A Selling enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
A Selling Stockholder and
any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning
of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly,
with any person to distribute the securities.
We are required to pay certain
fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify any Selling Stockholder against
certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We agreed to keep this prospectus
effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and
without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for us to be in compliance with
the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities
have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in
certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and
regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement
of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules
and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by a Selling
Stockholder or any other person. We will make copies of this prospectus available to a Selling Stockholder and have informed them of the
need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172
under the Securities Act).
Annex B
SELLING STOCKHOLDERS
The common stock being offered
by the selling stockholders are those previously issued to the selling stockholders, and those issuable to the selling stockholders, upon
exercise of the warrants. For additional information regarding the issuances of those shares of common stock and warrants, see “Private
Placement of Shares of Common Stock and Warrants” above. We are registering the shares of common stock in order to permit the selling
stockholders to offer the shares for resale from time to time. [Except for the ownership of the shares of common stock and the warrants
and for the selling stockholders whose other relationships are provided in “Certain Relationships and Related Party Transactions”1,]
the selling stockholders have not had any material relationship with us within the past three years.
The table below lists the
selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each of the selling stockholders.
The second column lists the number of shares of common stock beneficially owned by each selling stockholder, based on its ownership of
the shares of common stock and warrants, as of [________, 2024], assuming exercise of the warrants held by the selling stockholders on
that date, without regard to any limitations on exercises.
The third column lists the
shares of common stock being offered by this prospectus by the selling stockholders.
In accordance with the terms
of a Registration Rights Agreement with the selling stockholders, this prospectus generally covers the resale of the sum of (i) the number
of shares of common stock issued to the selling stockholders in the “Private Placement of Shares of Common Stock and Warrants”
described above and (ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if
the outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement was initially
filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment
as provided in the Registration Rights Agreement, without regard to any limitations on the exercise of the warrants. The fourth column
assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus.
Under the terms of the warrants,
a selling stockholder may not exercise the warrants to the extent such exercise would cause such selling stockholder, together with its
affiliates and attribution parties, to beneficially own a number of shares of common stock which would exceed [19.99]% of the number of
shares of our common stock outstanding following such exercise (for purposes of the denominator, immediately after giving effect to the
issuance of shares of common stock to be issued upon the applicable exercise of such warrant). The number of shares in the second and
fourth columns do not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering. See
“Plan of Distribution.”
1
Note: To add based on questionnaire, given existing share ownership and board representation of certain selling stockholders.
Name of Selling Stockholder |
Number of Shares of Common Stock Owned Prior to Offering |
Maximum Number of Shares of Common Stock to be Sold Pursuant to this Prospectus |
Number of Shares of Common Stock Owned After Offering |
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Annex C
OUTLOOK THERAPEUTICS INC.
SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE
The undersigned beneficial
owner of shares of common stock, and warrants exercisable into common stock (collectively, the “Registrable Securities”)
of Outlook Therapeutics Inc., a Delaware corporation (the “Company”), understands that the Company has filed or intends
to file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration
Rights Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from the Company
upon request at the address set forth below. All capitalized terms not otherwise defined herein have the meanings ascribed thereto in
the Registration Rights Agreement.
Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial
owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or
not being named as a selling stockholder in the Registration Statement and the related prospectus.
NOTICE
The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned
by it in the Registration Statement.
The undersigned hereby provides
the following information to the Company and represents and warrants that such information is accurate:
QUESTIONNAIRE
1. Name.
(a) Full Legal Name of Selling Stockholder
(b) Full Legal Name of Registered Holder (if
not the same as (a) above) through which Registrable Securities are held:
(c) Full Legal Name of Natural Control Person
(which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by
this Questionnaire):
2. Address for Notices to Selling Stockholder:
3. Broker-Dealer Status:
(a)
Are you a broker-dealer?
Yes ¨
No ¨
(b)
If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services
to the Company?
Yes ¨
No ¨
Note:
If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.
(c) Are you an affiliate of a broker-dealer?
Yes ¨
No ¨
(d) If you are an affiliate of a broker-dealer,
do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the
Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the
Registrable Securities?
Yes ¨
No ¨
Note:
If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.
4. Beneficial Ownership of Securities of the Company Owned by
the Selling Stockholder.
Except as set forth below in
this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable
pursuant to the Purchase Agreement.
(a)
Type and Amount of other securities beneficially owned by the Selling Stockholder:
5. Relationships with the Company:
Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.
State any exceptions here:
The undersigned agrees to
promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be required
to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.
By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion of such information
in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned understands that such
information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related
prospectus and any amendments or supplements thereto.
IN WITNESS WHEREOF the undersigned,
by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.
Date:________________________ |
Beneficial Owner: ______________ |
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By: |
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Name: |
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Title: |
PLEASE EMAIL A PDF COPY OF THE COMPLETED AND EXECUTED NOTICE
AND QUESTIONNAIRE TO:
Outlook Therapeutics, Inc.
Email: [______________]
Exhibit 10.6
THIRD AMENDMENT TO CONVERTIBLE PROMISSORY
NOTE
This Third Amendment to Convertible
Promissory Note (this “Amendment”) is entered into as of January 22, 2024, by and between Streeterville
Capital, LLC, a Utah limited liability company (“Lender”), and Outlook
Therapeutics, Inc., a Delaware corporation (“Borrower”). Capitalized terms used in this Amendment without definition
shall have the meanings given to them in the Note (as defined below).
A.
Borrower previously issued to Lender that certain Convertible Promissory Note dated December 22, 2022 in the principal amount of
$31,820,000.00 (as previously amended, the “Note”).
B.
Borrower and Lender have agreed to amend the Note, subject to the terms, amendments, conditions and understandings expressed in
this Amendment.
NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Recitals.
Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Amendment are true and accurate and are hereby
incorporated into and made a part of this Amendment.
2. Definitions.
In addition to the terms defined elsewhere in this Amendment, the following terms, as used herein, have the following meanings:
(a) “Amendment
Conditions” means: (i) Borrower has completed the Offering, (ii) no Event of Default shall have occurred under the Note as of
the Offering Completion Date; and (iii) completion of stockholder approval of this Amendment, the Note and the issuance of Conversion
Shares in accordance with the requirements of Nasdaq Listing Rule 5635(d).
(b) “Conditional
Amendments” means the (i) Conversion Price Decrease, (ii) Extension, (iii) Extension Fee, (iv) Interest Rate Increase, (v) Minimum
Quarterly Debt Service Obligation, and (vi) Share Reserve Increase.
(c) “Conversion
Price Decrease” means, solely for the first $15,000,000.00 in Conversions made by Lender on or after April 1, 2024 and the effectiveness
of the Conditional Amendments, the Conversion Price will be the lower of the per share offering price of the Offering (as adjusted for
stock splits and stock combinations) and the Conversion Price as defined in the Note. The Conversion Price Decrease will only apply to
the first $15,000,000.00 in Conversions made by Lender on or after April 1, 2024 and the effectiveness of the Conditional Amendments,
after which time the Conversion Price will revert back to the Conversion Price as defined in the Note.
(d) “Extension”
means extending the Maturity Date to July 1, 2025.
(e) “Extension
Fee” means an extension fee of 7.5% of the Outstanding Balance of the Note, which amount will be calculated and added to the
Outstanding Balance on the Offering Completion Date.
(f) “Interest
Rate Increase” means an increase of the rate at which interest will accrue on the Note from 9.5% to the prime rate (as published
in the Wall Street Journal) plus 3%, provided, however, in no event will the interest rate drop below 9.5%.
(g) “Minimum
Quarterly Debt Service Obligation” means Borrower’s obligation to reduce the Outstanding Balance of the Note by at least
$3,000,000 for each calendar quarter beginning with the second quarter of 2024 and continuing until the Note is repaid in full. For the
avoidance of doubt, any Conversion made under the Note during a given quarter will be counted toward the Minimum Quarterly Debt Service
Obligation and any cash payments made during a given quarter to satisfy the Minimum Quarterly Debt Service Obligation will be subject
to the 7.5% exit fee set forth in Section 1.2 of the Note. Any amount converted by Lender during a given calendar quarter in excess of
the Minimum Quarterly Debt Service Obligation will be credited toward meeting the Minimum Quarterly Debt Service Obligation for the next
quarter or quarters.
(h) “Offering”
means Borrower raises gross proceeds of at least $25,000,000 through an equity offering.
(i) “Offering
Completion Date” means the date of the funding to Borrower of the Offering proceeds.
(j) “Purchase
Agreement” means the Securities Purchase Agreement between Borrower and Lender dated December 22, 2022.
(k) “Share
Reserve Increase” means within three (3) days of Borrower increasing its number of authorized shares of Common Stock after the
date hereof, Borrower will increase the Share Reserve to an amount equal to 2.5 times the number of shares of Common Stock obtained by
dividing the Outstanding Balance as of the date of such increase by the Conversion Price and will increase the Share Reserve from time
to time upon Lender’s request thereafter if the Share Reserve drops below the required 2.5x coverage ratio.
3. Conditional
Amendments. So long as each of the Amendment Conditions has been satisfied by March 31, 2024, then all of the Conditional Amendments
will automatically be effective on April 1, 2024. For the avoidance of doubt, in the event the Offering Completion Date occurs after March
31, 2024, then none of the Conditional Amendments will be effective and this Amendment will be null and void.
4. Representations
and Warranties. In order to induce Lender to enter into this Amendment, Borrower, for itself, and for its affiliates, successors and
assigns, hereby acknowledges, represents, warrants and agrees as follows:
(a) Borrower has full
power and authority to enter into this Amendment and to incur and perform all obligations and covenants contained herein, all of which
have been duly authorized by all proper and necessary action. No consent, approval, filing or registration with or notice to any governmental
authority is required as a condition to the validity of this Amendment or the performance of any of the obligations of Borrower hereunder.
(b) There is no fact
known to Borrower or which should be known to Borrower which Borrower has not disclosed to Lender on or prior to the date of this Amendment
which would or could materially and adversely affect the understanding of Lender expressed in this Amendment or any representation, warranty,
or recital contained in this Amendment.
(c) Except as expressly
set forth in this Amendment, Borrower acknowledges and agrees that neither the execution and delivery of this Amendment nor any of the
terms, provisions, covenants, or agreements contained in this Amendment shall in any manner release, impair, lessen, modify, waive, or
otherwise affect the liability and obligations of Borrower under the Note or any other transaction documents entered into in connection
with the Note (the “Transaction Documents”).
(d) Borrower has no
defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action of any
kind or nature whatsoever against Lender, directly or indirectly, arising out of, based upon, or in any manner connected with, the transactions
contemplated hereby, whether known or unknown, which occurred, existed, was taken, permitted, or begun prior to the execution of this
Amendment and occurred, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of any of the terms or conditions
of the Transaction Documents. To the extent any such defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims,
counterclaims, actions or causes of action exist or existed, such defenses, rights, claims, counterclaims, actions and causes of action
are hereby waived, discharged and released. Borrower hereby acknowledges and agrees that the execution of this Amendment by Lender shall
not constitute an acknowledgment of or admission by Lender of the existence of any claims or of liability for any matter or precedent
upon which any claim or liability may be asserted.
(e) Borrower represents
and warrants that as of the date hereof no Events of Default or other material breaches exist under the Transaction Documents (as defined
in the Purchase Agreement) or have occurred prior to the date hereof.
5. Certain
Acknowledgments. Each of the parties acknowledges and agrees that no property or cash consideration of any kind whatsoever has been
or shall be given by Lender to Borrower in connection with this Amendment.
6. Other
Terms Unchanged. The Note, as amended by this Amendment and any previous amendments, remains and continues in full force and effect,
constitutes legal, valid, and binding obligations of each of the parties, and is in all respects agreed to, ratified, and confirmed. Any
reference to the Note after the date of this Amendment is deemed to be a reference to the Note as amended by this Amendment. If there
is a conflict between the terms of this Amendment and the Note, the terms of this Amendment shall control. No forbearance or waiver may
be implied by this Amendment. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not
operate as a waiver of, or as an amendment to, any right, power, or remedy of Lender under the Note, as in effect prior to the date hereof.
For the avoidance of doubt, this Amendment shall be subject to the governing law, venue, and Arbitration Provisions, as set forth in the
Note.
7. No
Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity holders,
representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives, officers, directors,
or employees except as expressly set forth in this Amendment and the Transaction Documents and, in making its decision to enter into the
transactions contemplated by this Amendment, Borrower is not relying on any representation, warranty, covenant or promise of Lender or
its officers, directors, members, managers, equity holders, agents or representatives other than as set forth in this Amendment.
8. Counterparts.
This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall
constitute one instrument. The parties hereto confirm that any electronic copy of another party’s executed counterpart of this Amendment
(or such party’s signature page thereof) will be deemed to be an executed original thereof.
9. Further
Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Amendment and the consummation of the transactions contemplated hereby.
[Remainder of page intentionally left blank]
IN WITNESS WHEREOF, the undersigned have executed
this Amendment as of the date set forth above.
|
LENDER:
Streeterville
Capital, LLC
By: /s/ John M. Fife
John M. Fife, President
BORROWER:
Outlook Therapeutics, Inc.
By: /s/ Lawrence A. Kenyon
Lawrence A. Kenyon, CFO
|
[Signature Page to Third Amendment to Convertible
Promissory Note]
Exhibit 99.1
Outlook Therapeutics® Receives FDA Agreement
Under Special Protocol Assessment (SPA) for 90 Day Non-Inferiority Study, NORSE EIGHT, and Announces Private Placement of Up to $172 Million
to Advance ONS-5010
| · | Obtained clarity from U.S. Food and Drug Administration
(FDA) on next steps to advance ONS-5010 |
| · | NORSE EIGHT expected to commence in the first quarter of CY2024, enabling potential resubmission of the ONS-5010 Biologics License
Application (BLA) by the end of CY2024 |
| · | Private placements to top tier institutional investors and insiders include up to $65 million in common stock and up to an additional
$107 million upon cash exercise of warrants, subject to closing conditions |
| · | Aggregate financing, subject to achievement of milestones, is expected to be sufficient to take ONS-5010 through potential FDA approval
and fund commercial launch |
ISELIN,
N.J., January 23, 2024 — Outlook Therapeutics, Inc. (Nasdaq: OTLK), a biopharmaceutical company working to achieve FDA approval
for the first ophthalmic formulation of bevacizumab for the treatment of retinal diseases, today announced that it has received written
agreement from the FDA under an SPA for the NORSE EIGHT clinical trial protocol evaluating ONS-5010
in neovascular age-related macular degeneration (AMD) subjects. Additionally, Outlook Therapeutics entered into securities purchase agreements
with certain institutional and accredited investors for up to $172 million in gross proceeds to fund the advancement of ONS-5010.
“The SPA increases our confidence that
ONS-5010, if approved, will more effectively meet the needs of retina surgeons, patients and payers in the $9.5 billion ophthalmic anti-VEGF
market in the United States, and the financing represents a significant commitment by our new and existing stockholders to advance this
important development program,” commented Russell Trenary, President and Chief Executive Officer. “We believe that the funds
we expect to receive in this financing will position Outlook Therapeutics to support the ONS-5010 development pathway through potential
FDA approval and launch.”
The FDA has reviewed and agreed upon the NORSE
EIGHT trial protocol pursuant to the SPA. If the NORSE EIGHT trial is successful, it would satisfy the FDA’s requirement for a
second adequate and well-controlled clinical trial to address fully the clinical deficiency identified in the Complete Response Letter
(CRL).
NORSE EIGHT will be a randomized, controlled,
parallel-group, masked, non-inferiority study of approximately 400 newly diagnosed, wet AMD subjects randomized in a 1:1 ratio to receive
1.25 mg ONS-5010 or 0.5 mg ranibizumab intravitreal injections. Subjects will receive injections at Day 0 (randomization), Week 4, and
Week 8 visits. The primary endpoint will be mean change in BCVA from baseline to week 8. Outlook
Therapeutics expects NORSE EIGHT topline results and resubmission of the ONS-5010 BLA by the end of calendar year 2024. In addition,
through a Type A meeting and additional interactions, Outlook Therapeutics has identified the approaches needed to resolve the
chemistry, manufacturing and controls comments in the CRL. Outlook Therapeutics is working to address the open items and expects
to resolve these comments prior to the expected completion of NORSE EIGHT.
Private Placements
Additionally,
Outlook Therapeutics announced that it has entered into a definitive securities purchase agreement with certain institutional and accredited
investors to purchase shares of common stock and accompanying warrants in a private placement, the closing of which is conditioned upon
stockholder approval of the transaction and certain other corporate actions, expected in the first quarter of 2024. The private placement
is expected to provide up to $60 million in gross proceeds at closing, before deducting placement agent fees and offering expenses. In
addition, Outlook Therapeutics will have the potential to receive additional gross proceeds of up to $99 million upon the full cash exercise
of the warrants being issued in the private placement, before
deducting placement agent fees and offering expenses. The warrants include a feature that
allows Outlook Therapeutics to require cash exercise if certain stock price and milestone conditions are met.
At the 2024 annual meeting, Outlook Therapeutics’
stockholders will be asked to approve, among other items, (i) an authorized share capital increase and (ii) a reverse stock split, each
of which must be implemented prior to closing of the private placement, as well as (iii) approval of the private placement under for
Nasdaq Rule 5635(d). GMS Ventures and Syntone Ventures, Outlook Therapeutics’ largest stockholders, as well as its directors, have
entered into support agreements pursuant to which they have agreed to vote in favor of these proposals.
The private placement is being led by Great Point
Partners, LLC, with participation from existing investor GMS Ventures as well as new investors Altium Capital, Armistice Capital, Caligan
Partners LP, Schonfeld Strategic Advisors, Sphera Healthcare, Velan Capital, Woodline Partners LP, and an undisclosed life sciences dedicated
investor.
BofA Securities and BTIG are acting as co-placement
agents in connection with the financing.
Outlook Therapeutics also entered into a securities
purchase agreement with Syntone Ventures, another existing stockholder, to purchase $5 million in shares of common stock and warrants
on the same terms as the private placement, subject to receipt of requisite approvals in addition to the necessary corporate action items
described above.
Outlook Therapeutics intends to use the net proceeds
from the financings to fund its ONS-5010 clinical development programs, including to initiate and fund the planned NORSE EIGHT clinical
trial, and for working capital and other general corporate purposes.
Convertible Note Extension
In addition, on January 22, 2024, Outlook Therapeutics
reached an agreement with the holder of its outstanding convertible promissory note to extend the maturity until July 1, 2025, subject
to certain conditions, including receipt of at least $25.0 million of proceeds from an equity offering and reduction of the conversion
price on $15.0 million aggregate principal amount of the note.
The offer and sale of the foregoing securities
are being made by Outlook Therapeutics in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the Act),
and/or Regulation D promulgated thereunder, and such securities have not been registered under the Act or applicable state securities
laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement
or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities
laws of any such state or other jurisdiction.
About ONS-5010 / LYTENAVA™ (bevacizumab-vikg)
ONS-5010 is an investigational ophthalmic formulation of bevacizumab under development as an intravitreal injection for the treatment
of wet AMD and other retinal diseases. Because no FDA-approved ophthalmic formulations of bevacizumab are available currently, clinicians
wishing to treat retinal patients with bevacizumab have had to use unapproved repackaged IV bevacizumab provided by compounding pharmacies—products
that have known risks of contamination and inconsistent potency and availability. If approved, ONS-5010 would provide an FDA-approved
option for physicians that currently prescribe unapproved repackaged oncologic IV bevacizumab from compounding pharmacies for the treatment
of wet AMD.
Bevacizumab-vikg is a recombinant humanized monoclonal
antibody (mAb) that selectively binds with high affinity to all isoforms of human vascular endothelial growth factor (VEGF) and neutralizes
VEGF’s biologic activity through a steric blocking of the binding of VEGF to its receptors Flt-1 (VEGFR-1) and KDR (VEGFR-2) on
the surface of endothelial cells. Following intravitreal injection, the binding of bevacizumab-vikg to VEGF prevents the interaction of
VEGF with its receptors on the surface of endothelial cells, reducing endothelial cell proliferation, vascular leakage, and new blood
vessel formation in the retina.
About Outlook Therapeutics, Inc.
Outlook Therapeutics is a biopharmaceutical company working to achieve FDA approval for the launch of ONS-5010/ LYTENAVA™ (bevacizumab-vikg)
as the first FDA-approved ophthalmic formulation of bevacizumab for use in retinal indications, including wet AMD, DME and BRVO. The FDA
accepted Outlook Therapeutics’ BLA submission for ONS-5010 to treat wet AMD with an initial PDUFA goal date of August 29, 2023;
the FDA did not approve the BLA during this review cycle and Outlook Therapeutics is working with the FDA to address the issues that have
been raised so that the BLA may be re-submitted. If ONS-5010 ophthalmic bevacizumab is approved, Outlook Therapeutics expects to commercialize
it as the first and only FDA-approved ophthalmic formulation of bevacizumab for use in treating retinal diseases in the United States,
United Kingdom, Europe, Japan, and other markets. As part of the Outlook Therapeutics' multi-year commercial planning process, Outlook
Therapeutics and Cencora entered into a strategic commercialization agreement to expand the Outlook Therapeutics’ reach for connecting
to retina specialists and their patients. Cencora will provide third-party logistics (3PL) services and distribution, as well as pharmacovigilance
services and other services in the United States. For more information, please visit www.outlooktherapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts are “forward-looking
statements,” including those relating to future events. In some cases, you can identify forward-looking statements by terminology
such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,”
“may,” “optimistic,” “plan,” “potential,” “target,” “will,” or
“would” the negative of terms like these or other comparable terminology, and other words or terms of similar meaning. These
include, among others, statements about ONS-5010’s potential as the first FDA-approved ophthalmic formulation of bevacizumab-vikg,
expectations concerning Outlook Therapeutics’ ability to remediate or otherwise resolve deficiencies identified in the CRL issued
by the FDA, including with respect to an additional clinical trial and CMC issues, expectations concerning the NORSE EIGHT trial design,
the timing for initiation and completion of NORSE EIGHT and resubmission of the BLA for ONS-5010, the private placement, including expected
proceeds from the issuance of the shares of common stock and exercise of the warrants, satisfaction of closing conditions, including receipt
of necessary stockholder approvals, and uses of proceeds, the sufficiency of Outlook Therapeutics’ resources, including funds from
the financing, to fund its operations through various milestones, expectations concerning decisions of regulatory bodies, including the
FDA and EMA, and the timing thereof, plans for potential commercial launch of ONS-5010, expectations concerning the relationship with
Cencora and the benefits and potential expansion thereof, and other statements that are not historical fact. Although Outlook Therapeutics
believes that it has a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about
future events affecting Outlook Therapeutics and are subject to risks, uncertainties and factors relating to its operations and business
environment, all of which are difficult to predict and many of which are beyond its control. These risk factors include those risks associated
with developing pharmaceutical product candidates, risks of conducting clinical trials and risks in obtaining necessary regulatory approvals,
the content and timing of decisions by the FDA, as well as those risks detailed in Outlook Therapeutics’ filings with the Securities
and Exchange Commission (the SEC), including the Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the
SEC on December 22, 2023, and future quarterly reports Outlook Therapeutics files with the SEC, which include uncertainty of market conditions
and future impacts related to macroeconomic factors, including as a result of the ongoing overseas conflict, high interest rates, inflation
and potential future bank failures on the global business environment. These risks may cause actual results to differ materially from
those expressed or implied by forward-looking statements in this press release. All forward-looking statements included in this press
release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof. Outlook Therapeutics does not undertake any obligation to
update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as
may be required under applicable securities law.
Investor Inquiries:
Jenene Thomas
Chief Executive Officer
JTC Team, LLC
T: 833.475.8247
OTLK@jtcir.com
# # #
v3.23.4
Cover
|
Jan. 22, 2024 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jan. 22, 2024
|
Entity File Number |
001-37759
|
Entity Registrant Name |
Outlook Therapeutics,
Inc.
|
Entity Central Index Key |
0001649989
|
Entity Tax Identification Number |
38-3982704
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
485 Route 1 South
|
Entity Address, Address Line Two |
Building F
|
Entity Address, Address Line Three |
Suite 320
|
Entity Address, City or Town |
Iselin
|
Entity Address, State or Province |
NJ
|
Entity Address, Postal Zip Code |
08830
|
City Area Code |
609
|
Local Phone Number |
619-3990
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common stock
|
Trading Symbol |
OTLK
|
Security Exchange Name |
NASDAQ
|
Entity Emerging Growth Company |
false
|
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