Exhibit 10.1


 


NOTE
PURCHASE AGREEMENT


 


THIS
NOTE PURCHASE AGREEMENT (“Agreement”) is made as of November 23, 2019 by and among Mateon Therapeutics,
Inc., a Delaware corporation (the “Company”), and the lenders (each individually a “Lender,”
and collectively the “Lenders”) named on the Schedule of Lenders attached hereto (the “Schedule of Lenders”).
Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Notes (as defined
below).


 


WHEREAS,
the Lenders wish to provide financing to the Company through the issuance by the Company to the Lenders of Notes (as defined below)
in the aggregate principal amount of up to $1,500,000 during the period beginning on November 23, 2019 and ending on December
7, 2019, and the Company desires to accept such financing pursuant to the terms and conditions set forth below, with the conversion
price of the Notes to be issued at each Closing to be determined by the Company (and agreed to by the Lenders) from time to time
based on the trading price of the Common Stock;


 


NOW
THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company and the Lenders agree as follows:


 


1.
Definitions.


 


(a)
“Change of Control” shall mean:


 


(i)
The acquisition by any individual, entity or group (within the meaning of Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) or any successor provision) (any of the foregoing hereafter a
“Person”) of forty percent (40%) or more of either (a) the then outstanding shares of the capital stock of
the Company (the “Outstanding Capital Stock”) or (b) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Voting Securities”),
provided, however, that such an acquisition by one of the following shall not constitute a change of control: (1)
the Company or any of its subsidiaries, or any employee benefit plan (or related trust) sponsored or maintained by the Company
or any of its subsidiaries or (2) any Person that is eligible, pursuant to Rule 13d-1(b) under the Exchange Act, to file a statement
on Schedule 13G with respect to its beneficial ownership of Voting Securities, whether or not such Person shall have filed a statement
on Schedule 13G, unless such Person shall have filed a statement on Schedule 13D with respect to beneficial ownership of fifty
percent (50%) or more of the Voting Securities or (3) any corporation with respect to which, following such acquisition, more
than sixty percent (60%) of both the then outstanding shares of common stock of such corporation and the combined voting power
of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Capital Stock or Voting Securities immediately prior to such acquisition in substantially
the same proportions as their ownership, immediately prior to such acquisition, of the Outstanding Capital Stock or Voting Securities,
as the case may be; or


 




    	 



    	 



    

 


(ii)
Approval by the shareholders of the Company of a reorganization, merger or consolidation (a “Business Combination”),
in each case, with respect to which all or substantially all holders of the Outstanding Capital Stock and Voting Securities immediately
prior to such Business Combination do not, following such Business Combination, beneficially own, directly or indirectly, in substantially
the same proportions, more than sixty percent (60%) of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may
be, of the corporation resulting from the Business Combination; or


 


(iii)
A sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect
to which, following such sale or disposition, more than sixty percent (60%) of the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors are
then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Capital Stock or Voting Securities immediately prior to such sale or disposition in substantially
the same proportions as their ownership of the Outstanding Capital Stock and Voting Securities, as the case may be, immediately
prior to such sale or disposition.


 


(b)
“Common Stock” shall mean the shares of the common stock, par value $0.01 per share, of the Company.


 


(c)
“Consideration” shall mean the amount of money paid by each Lender pursuant to this Agreement as shown on the
Schedule of Lenders.


 


(d)
“Majority Note Holders” shall mean the holders of a majority in interest of the aggregate principal amount
of Notes that are outstanding at the time of such calculation.


 


(e)
“Maturity Date” shall be as set forth in each Note (as defined below).


 


(f)
“Notes” shall mean the one or more promissory notes issued to each Lender pursuant to Section 2.1 below, the
form of which is attached hereto as Exhibit A.


 


2.
Amount and Terms of the Notes.


 


2.1
Issuance of Notes. In return for the Consideration paid by the Lender, the Company shall sell and issue to such Lender
one or more Notes. Each Note shall have a principal balance equal to that portion of the Consideration paid by such Lender for
the Note, as set forth in the Schedule of Lenders. Each Note shall be convertible as set forth in the Notes.


 




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3.
Closing Mechanics.


 


3.1
Closing. The initial closing (the “Initial Closing”) of the purchase of the Notes in return for the
Consideration paid by each Lender shall take place at such other time and place as the Company and the Lenders purchasing a majority
of the Notes to be sold at the Initial Closing (based upon aggregate principal amount) agree upon orally or in writing. At the
Initial Closing, each Lender shall deliver the Consideration to the Company, and the Company shall deliver to each Lender one
or more executed Notes, in return for the respective Consideration provided to the Company.


 


3.2
Subsequent Closings. In any subsequent closing (each a “Subsequent Closing”, and together with the Initial
Closing, the “Closings”), the Company may sell additional Notes subject to the terms of this Agreement to any
Lender as it shall select. Any subsequent purchasers of Notes shall become a party to, and shall be entitled to receive Notes
in accordance with, this Agreement by submitting to the Company a fully executed Counterpart Signature Page to Note Purchase Agreement,
in the form attached hereto as Exhibit B. Each Subsequent Closing shall take place at such locations and at such times
as shall be mutually agreed upon orally or in writing by the Company and such purchasers of additional Notes. Any Notes sold pursuant
to this Section 3.2 shall be deemed to be “Notes” for all purposes under this Agreement and any purchasers thereof
shall be deemed to be “Lenders” under this Agreement. The Schedule of Lenders to this Agreement shall be updated to
reflect the principal amount of each Note purchased at each Subsequent Closing and the parties purchasing such Notes.


 


4.
Representations and Warranties of the Company. In connection with the purchase and sale of Notes provided for herein, the
Company hereby represents and warrants to the Lenders as of the date hereof that:


 


4.1
Organization, Good Standing and Qualification. The Company is a corporation validly existing and in good standing under
the laws of the State of Delaware and has all requisite power and authority to carry on its business as now conducted. The Company
is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have
a material adverse effect on its business or properties.


 


4.2
Authorization. All Company action has been taken on the part of the Company necessary for the authorization, execution
and delivery of this Agreement and the Notes. Except as may be limited by applicable bankruptcy, insolvency, reorganization or
similar laws relating to or affecting the enforcement of creditors’ rights, the Company has taken all action required to
make all of the obligations of the Company reflected in the provisions of this Agreement and the Notes, the valid and enforceable
obligations they purport to be.


 


4.3
Compliance with Other Instruments. Neither the authorization, execution and delivery of this Agreement, nor the issuance
and delivery of the Notes, will constitute or result in a material default or violation of any law or regulation applicable to
the Company or any material term or provision of the Company’s current Certificate of Incorporation, By-laws or any material
agreement or instrument by which it is bound or to which its properties or assets are subject.


 




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5.
Representations and Warranties of the Lenders. In connection with the purchase and sale of Notes provided for herein, each
Lender hereby represents and warrants to the Company that:


 


5.1
Authorization. This Agreement constitutes such Lender’s valid and legally binding obligation, enforceable in accordance
with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or similar laws relating to
or affecting the enforcement of creditors’ rights and (ii) laws relating to the availability of specific performance, injunctive
relief or other equitable remedies. Each Lender represents that it has full power and authority to enter into this Agreement.


 


5.2
Purchase Entirely for Own Account. Each Lender acknowledges that this Agreement is made with Lender in reliance upon such
Lender’s representation to the Company that the Notes and the shares of Common Stock issuable upon conversion of the Notes
(collectively, the “Securities”) will be acquired for investment for Lender’s own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof, and that such Lender has no present intention
of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, each Lender further
represents that such Lender does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participations to such person or to any third person, with respect to the Securities.


 


5.3
Disclosure of Information. Each Lender acknowledges that it has received all the information it considers necessary or
appropriate for deciding whether to acquire the Securities. Each Lender further represents that it has had an opportunity to ask
questions of and receive answers from the Company regarding the terms and conditions of the offering of the Securities, and that
such questions have been answered to such Lender’s satisfaction.


 


5.4
Investment Experience. Each Lender is an investor in securities of companies in the development stage and acknowledges
that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an
individual, each Lender also represents it has not been organized solely for the purpose of acquiring the Securities.


 


5.5
Accredited Investor. Each Lender is an “accredited investor” within the meaning of Rule 501 of Regulation D
of the Securities Act of 1933 as amended (the “Securities Act”), as presently in effect, and has checked the
applicable box on Exhibit C attached to this Agreement as to the Lender’s qualification as an accredited investor.


 


5.6
Restricted Securities. Each Lender understands that the Securities are characterized as “restricted securities”
under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities
Act only in certain limited circumstances. Each Lender represents that it is familiar with Rule 144 promulgated under the Securities
Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.


 




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5.7
Further Limitations on Disposition. Without in any way limiting the representations and warranties set forth above, each
Lender further agrees not to make any disposition of all or any portion of the Securities unless and until the transferee has
agreed in writing for the benefit of the Company to be bound by this Section 5 and Section 7.11, and:


 


(a)
There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition
is made in accordance with such registration statement; or


 


(b)
(i) Lender has notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition and (ii) if reasonably requested by the Company, Lender shall have furnished
the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration
of such shares under the Securities Act.


 


5.8
Legends. It is understood that the Securities may bear a legend substantially as follows:


 


“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD
PURSUANT TO RULE 144 UNDER SUCH ACT.”


 


6.
Defaults and Remedies.


 


6.1
Events of Default. The following events shall be considered Events of Default with respect to each Note:


 


(a)
The Company shall default in the payment of any part of the principal or unpaid accrued interest on the Note for more than thirty
(30) days after the Maturity Date or at a date fixed by acceleration or otherwise;


 


(b)
The Company shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts as
they become due, or shall file a voluntary petition for bankruptcy, or shall file any petition or answer seeking for itself any
reorganization, arrangement, composition, readjustment, dissolution or similar relief under any present or future statute, law
or regulation, or shall file any answer admitting the material allegations of a petition filed against the Company in any such
proceeding, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Company,
or of all or any substantial part of the properties of the Company, or the Company or its directors shall take any action looking
to the dissolution or liquidation of the Company;


 




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(c)
Within thirty (30) days after the commencement of any proceeding against the Company seeking any bankruptcy reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation,
such proceeding shall not have been dismissed, or within thirty (30) days after the appointment without the consent or acquiescence
of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the
Company, such appointment shall not have been vacated;


 


(d)
The Company shall fail to observe or perform any other obligation to be observed or performed by it under this Agreement or the
Notes within thirty (30) days after written notice from the Majority Note Holders to perform or observe such obligation; or


 


(e)
A Change of Control Event with respect to the Company shall have occurred.


 


6.2
Remedies. Upon the occurrence of an Event of Default under Section 6.1 hereof, at the option and upon the declaration of
the Majority Note Holders, the entire unpaid principal and accrued and unpaid interest on the Notes shall, without presentment,
demand, protest, or notice of any kind, all of which are hereby expressly waived, be forthwith due and payable, and the holders
of the Notes may, immediately and without expiration of any period of grace, enforce payment of all amounts due and owing under
the Notes and exercise any and all other remedies granted at law, in equity or otherwise.


 


7.
Miscellaneous.


 


7.1
Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.


 


7.2
Governing Law. This Agreement and the Notes shall be governed by and construed under the laws of the State of New York
as applied to agreements among New York residents, made and to be performed entirely within the State of New York. Each Lender
hereby expressly consents to the exclusive jurisdiction of the state and federal courts situated in the City, County and State
of New York for all actions arising out of, or relating to this Agreement, and irrevocably waives the defense of inconvenient
forum to the maintenance of such action or proceeding.


 


7.3
Execution. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. 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 execution (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.


 




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7.4
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.


 


7.5 Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given:
(i) upon personal delivery to the party to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent
during normal business hours of the recipient, if not so confirmed, then on the next business day; (iii) five (5) days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be
specified by notice given in accordance with this Section 7.5):


 


If
to the Company:


 


Mateon
Therapeutics Inc.


29397
Agoura Road, Suite 107


Agoura
Hills, CA 91301


Attn:
Chief Executive Officer


 


If
to Lenders:


 


At
the respective addresses shown on the signature pages hereto.


 


7.6
Finder’s Fee. Each party represents that it neither is nor will be obligated for any finder’s fee or commission
in connection with this transaction. Lender agrees to indemnify and to hold harmless the Company from any liability for any commission
or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted
liability) for which Lender or any of its officers, partners, employees or representatives is responsible. The Company agrees
to indemnify and hold harmless Lender from any liability for any commission or compensation in the nature of a finder’s
fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.


 


7.7
Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief
to which such party may be entitled. Each party hereto shall pay all costs and expenses that it incurs with respect to the negotiation,
execution, delivery and performance of this Agreement.


 




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7.8
Entire Agreement; Amendments and Waivers. This Agreement and the Notes and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.
The Company’s agreements with each of the Lenders are separate agreements, and the sales of the Notes to each of the Lenders
are separate sales. Nonetheless, any term of this Agreement or the Notes may be amended and the observance of any term of this
Agreement or the Notes may be waived (either generally or in a particular instance and either retroactively or prospectively),
with the written consent of the Company and the Majority Note Holders. Any waiver or amendment effected in accordance with this
Section shall be binding upon each party to this Agreement and any holder of any Note purchased under this Agreement at the time
outstanding and each future holder of all such Notes.


 


7.9
Effect of Amendment or Waiver. Each Lender acknowledges that by the operation of Section 7.8 hereof, the Majority Note
Holders will have the right and power to diminish or eliminate all rights of such Lender under this Agreement and each Note issued
to such Lender.


 


7.10
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms.


 


7.11
Exculpation Among Lenders. Each Lender acknowledges that it is not relying upon any person, firm, corporation or stockholder,
other than the Company and its officers and directors in their capacities as such, in making its investment or decision to invest
in the Company. Each Lender agrees that no other Lender nor the respective controlling persons, officers, directors, partners,
agents, stockholders or employees of any other Lender shall be liable for any action heretofore or hereafter taken or omitted
to be taken by any of them in connection with the purchase and sale of the Securities.


 


7.12
Acknowledgement. In order to avoid doubt, it is acknowledged that each Lender shall be entitled to the benefit of all adjustments
in the number of shares of Common Stock of the Company issuable as a result of any splits, recapitalizations, combinations or
other similar transaction affecting the Common Stock that occur prior to the conversion of the Notes.


 


7.13
Indemnity; Costs, Expenses and Attorneys’ Fees. The Company shall indemnify and hold each Lender harmless from any
loss, cost, liability and legal or other expense, including attorneys’ fees of such Lender’s counsel, which a Lender
may directly or indirectly suffer or incur by reason of the failure of the Company to perform any of its obligations under this
Agreement, any Note, any agreement executed in connection herewith or therewith, any grant of or exercise of remedies with respect
to any collateral at any time securing any obligations evidenced by this Agreement or the Notes, or any Lender’s execution
or performance of this Agreement or any agreement executed in connection herewith, provided, however, that the indemnity agreement
contained in this section shall not apply to liabilities that a Lender may directly or indirectly suffer or incur by reason of
such Lender’s own gross negligence, willful misconduct or fraud.


 


7.14
Further Assurance. From time to time, the Company shall execute and deliver to the Lenders such additional documents and
shall provide such additional information to the Lenders as the Majority Note Holders may reasonably require to carry out the
terms of this Agreement and the Notes, and any agreements executed in connection herewith or therewith.


 


7.15.
Confidentiality. Each Lender acknowledges and agrees that any information or data it has acquired from or about the Company,
not otherwise properly in the public domain, was received in confidence. Each Lender agrees not to divulge, communicate or disclose,
except as may be required by law or for the performance of this Agreement, or use to the detriment of the Company or for the benefit
of any other person or persons, or misuse in any way, any confidential information of the Company, including any technical, trade
or business secrets of the Company and any technical, trade or business materials that are treated by the Company as confidential
or proprietary, and confidential information obtained by or given to the Company about or belonging to third parties.


 


[remainder
of page intentionally left blank; signature page follows]


 




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


 


	 	Mateon
    Therapeutics, Inc.
	 	 	 
	 	By:
    	            
	 	Name:	 
	 	Title:	 


 




    	 



    	 



    

 


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


 


	 	LENDER:
	 	 	 
	 	By:	              
	 	Name:
    	 
	 	Title:
    	 


 


	 	Address:	 


 




    	 



    	 



    

 


SCHEDULE
OF LENDERS


 


	Lender	 	Note
    Amount
	 	 	 
	[___]	 	[$_______]


 




    	 



    	 



    

 


EXHIBIT
A


 


Form
of Convertible Promissory Note


 




    	 



    	 



    

 


EXHIBIT
B


 


MATEON
THERAPEUTICS, INC.


COUNTERPART
SIGNATURE PAGE TO


NOTE
PURCHASE AGREEMENT


 


Pursuant
to Section 3.2 of that certain Note Purchase Agreement, dated as of November 23rd, 2019, by and among Mateon Therapeutics,
Inc., a Delaware corporation (the “Company”), and the lenders named on the Schedule of Lenders attached thereto
(as may be amended from time to time, the “Purchase Agreement”), and in consideration of the issuance by the
Company of a Note with a principal amount of $________________ in exchange for the Consideration of $_________________ paid by
the undersigned, the undersigned hereby agrees to be bound by and to observe all of the terms and conditions of the Purchase Agreement
and all of the benefits of the Purchase Agreement shall inure to the undersigned as a Lender thereunder. The undersigned hereby
represents and warrants that all of the representations contained in Section 5 of the Purchase Agreement are true and correct
as of the date hereof. The undersigned hereby authorizes the Company to attach this counterpart signature page to the Purchase
Agreement. Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Purchase Agreement or
in the Note, as applicable.


 


Dated
as of November 23, 2019


 


	 	LENDER:
	 	 	 
	 	Name:	 
	 	Address:	 
	 	 	 


 


	 	Principal
    Amount of Note: 	 


 




    	 



    	 



    

 


EXHIBIT
C


 


ACCREDITED
INVESTOR QUESTIONNAIRE


 


	A.	APPLICABLE
    TO INDIVIDUALS ONLY. Please answer the following questions concerning your financial condition as an “accredited
    investor” (within the meaning of Rule 501 of Regulation D). If the Purchaser is more than one individual, each individual
    must initial an answer where the question indicates a “yes” or “no” response, indicating to which
    individual it applies. The Purchaser must answer “yes” in response to question 1, 2 or 3 below to be considered
    an “accredited investor.” If the Purchaser is purchasing jointly with his or her spouse, one answer may be indicated
    for the couple as a whole:


 


	 	1.	Does
    your net worth*, or joint net worth with your spouse, exceed $1,000,000?


 


	Yes______	 	No______


 


	 	2.	Did
    you have an individual income ** in excess of $200,000, or joint income together with your spouse in excess of $300,000, in
    each of the two most recent years and do you reasonably expect to reach the same income level in the current year?


 


	Yes______	 	No______


 


	 	3.	Are
    you an executive officer or director of the issuer?


 


	Yes______	 	No______


 


	*	For
    purposes hereof net worth shall be deemed to include ALL of your assets, liquid or illiquid (including such items as furnishings,
    automobile and restricted securities), exclusive of the value of your principal residence, MINUS any liabilities (including
    such items as home mortgages and other debts and liabilities).
	 	 
	**	For
    purposes hereof the term “income” is not limited to “adjusted gross income” as that term is defined
    for federal income tax purposes, but rather includes certain items of income which are deducted in computing “adjusted
    gross income.” For investors who are salaried employees, the gross salary of such investor, minus any significant expenses
    personally incurred by such investor in connection with earning the salary, plus any income from any other source including
    unearned income, is a fair measure of “income” for purposes hereof. For investors who are self-employed, “income”
    is generally construed to mean total revenues received during the calendar year minus significant expenses incurred in connection
    with earning such revenues.


 




    	 



    	 



    

 


	B.	APPLICABLE
    TO CORPORATIONS, PARTNERSHIPS AND OTHER ENTITIES ONLY:


 


The
Purchaser is an accredited investor because the Purchaser falls within at least one of the following categories (Check all appropriate
lines):


 


	 	______	(i)
    a bank as defined in Section 3(a)(2) of the Securities Act or a savings and loan association or other institution as defined
    in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	 	 	 
	 	______	(ii)
    a broker-dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 
	 	______	(iii)
    an insurance company as defined in Section 2(13) of the Securities Act;
	 	 	 
	 	______	(iv)
    an investment company registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”)
    or a business development company as defined in Section 29(a)(48) of the Investment Company Act;
	 	 	 
	 	______	(v)
    a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the
    Small Business Investment Act of 1958, as amended;
	 	 	 
	 	______	(vi)
    a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its
    political subdivisions, for the benefit of its employees, where such plan has total assets in excess of $5,000,000;
	 	 	 
	 	______	(vii)
    an employee benefit plan within the meaning of Title 1 of the Employee Retirement Income Security Act of 1974, as amended
    (“ERISA”), where the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which
    is either a bank, savings and loan association, insurance company, or registered investment adviser, or an employee benefit
    plan that has total assets in excess of $5,000,000, or a self-directed plan the investment decisions of which are made solely
    by persons that are accredited investors;
	 	 	 
	 	______	(viii)
    a private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
	 	 	 
	 	______	(ix)
    an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business
    trust, or a partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
    of $5,000,000;
	 	 	 
	 	______	(x)
    a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
    whose purchase is directed by a “sophisticated” person, who has such knowledge and experience in financial and
    business matters that he is capable of evaluating the merits and risks of the prospective investment;
	 	 	 
	 	______	(xi)
    an entity in which all of the equity investors are persons or entities described above (“accredited investors”).
    ALL EQUITY OWNERS MUST COMPLETE PART “A” ABOVE.