Document:

EX-10.1

 EXHIBIT 10.1 

CITRIX SYSTEMS, INC. 
 AMENDED AND RESTATED
2014 EQUITY INCENTIVE PLAN 
 SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS 

The name of the plan is the Citrix Systems, Inc. Amended and Restated 2014 Equity Incentive Plan (the “Plan”). The purpose of the Plan
is to encourage and enable the officers, employees, Non-Employee Directors and Consultants of Citrix Systems, Inc. (the “Company”) and its Affiliates upon whose judgment, initiative and efforts the Company largely depends for the
successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of
the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company. 

The following terms shall be defined as set forth below: 

“Acquisition” shall mean (i) consummation of a merger or consolidation of the Company with or into another person; (ii) the
sale, transfer, or other disposition of all or substantially all of the Company’s assets to one or more other persons in a single transaction or series of related transactions, unless, in the case of foregoing clauses (i) and (ii),
securities possessing more than 50% of the total combined voting power of the survivor’s or acquirer’s outstanding securities (or the securities of any parent thereof) are held by a person or persons who held securities possessing more
than 50% of the total combined voting power of the Company’s outstanding securities immediately prior to that transaction; (iii) any person or group of persons (within the meaning of Section 13(d)(3) of the Exchange Act) directly or
indirectly acquires, including but not limited to by means of a merger or consolidation, beneficial ownership (determined pursuant to Securities and Exchange Commission Rule 13d-3 promulgated under the Exchange Act) of securities possessing more
than 30% of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders that the Board does not recommend such stockholders accept, other than
(a) the Company or an Affiliate, (b) an employee benefit plan of the Company or any of its Affiliates, (c) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, or
(d) an underwriter temporarily holding securities pursuant to an offering of such securities; (iv) persons who, as of the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a director of the Company subsequent to the Effective Date shall be
considered an Incumbent Director if such person’s election was approved by or such person was nominated for election by either (A) a vote of at least a majority of the Incumbent Directors or (B) a vote of at least a majority of the
Incumbent Directors who are members of a nominating committee comprised, in the majority, of Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, including by reason of agreement intended to avoid or settle any such actual
or threatened contest or solicitation, shall not be considered an Incumbent Director; (v) any other acquisition of the business of the Company in which a majority of the Board votes in favor of a decision that an Acquisition has occurred within
the meaning of the Plan; or (vi) the approval by the Company’s stockholders of any plan or proposal for the liquidation or dissolution of the Company. 

“Acquisition Price” means the value as determined by the Committee of the consideration payable, or otherwise to be received by
stockholders, per share of Stock pursuant to an Acquisition. 

  
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 “Act” means the U.S. Securities Act of 1933, as amended, and the rules and regulations
thereunder. 
 “Affiliate” means any corporation, partnership, limited liability company, limited liability partnership, business
trust or other entity controlling, controlled by or under common control with the Company. 
 “Award” or “Awards,”
except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Stock Awards, Unrestricted Stock Awards,
Cash-Based Awards, Performance Share Awards and Dividend Equivalent Rights. 
 “Award Agreement” means a written or electronic
document setting forth the terms and provisions applicable to an Award granted under the Plan. Each Award Agreement is subject to the terms and conditions of the Plan. 

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

“Cash-Based Award” means an Award entitling the recipient to receive a cash-denominated payment. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and
interpretations. 
 “Committee” means the Compensation Committee of the Board. For any period during which no such committee is in
existence, “Committee” shall mean the Board and all authority and responsibility assigned to the Committee under the Plan shall be exercised, if at all, by the Board. 

“Consultant” means any natural person that provides bona fide services to the Company or an Affiliate, and such services are not in
connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. 

“Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code. 

“Dividend Equivalent Right” means an Award entitling the Participant to receive credits based on cash dividends that would have been
paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the Participant. 

“Effective Date” means the date on which the Plan is most recently approved by stockholders as set forth in Section 21. 

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

“Fair Market Value” of the Stock on any given date means the fair market value of the Stock determined in good faith by the Committee.
Unless otherwise determined by the Committee, the Fair Market Value of the Stock on any given date shall be the last sale price for the Stock as reported on the Nasdaq Global Select Market or another national securities exchange for that date or if
no closing price is reported for that date, the closing price on the next preceding date for which a closing price was reported. 

“Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in
Section 422 of the Code. 

  
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 “Non-Employee Director” means a member of the Board who is not also an employee of the
Company or any Affiliate. 
 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 

“Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5. 

“Participant” means any holder of an outstanding Award under the Plan. 

“Performance-Based Award” means any Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based Award
granted to a Covered Employee that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations promulgated thereunder. 

“Performance Criteria” means the criteria that the Committee selects for purposes of establishing the Performance Goal or Performance
Goals for a Participant for a Performance Cycle. The Performance Criteria (which shall be applicable to the organizational level specified by the Committee, including, but not limited to the following organizational levels, the Company or a unit,
division, group, or Affiliate of the Company) that will be used to establish Performance Goals are limited to the following Performance Criteria: (a) operating margin, gross margin or profit margin, (b) earnings per share or pro forma
earnings per share, (c) revenue or bookings, (d) expenses or operating expenses, (e) net income or operating income, (f) earnings before interest and taxes, and earnings before interest, taxes, depreciation and amortization,
(g) stock price increase, (h) market share, (i) return on assets, capital, equity or sales, (j) performance relative to peers, (k) divisional or operating segment financial and operating performance, (l) total return on
shares of common stock, on an absolute basis or relative to increase in an appropriate stock index selected by the Committee, (m) customer satisfaction indicators, (n) cash flow, (o) pre-tax profit, (p) growth or growth rate with
respect to any of the foregoing measures (whether or not compounded), (q) attainment of strategic and operational objectives, (r) cost targets, reductions and savings, productivity and efficiency (s) new product invention, development
or innovation, (t) intellectual property (e.g., patents), (u) mergers and acquisitions or divestitures, (v) financings, or (w) any combination of the foregoing, any of which may be measured either in absolute terms or as compared
to any incremental increase or as compared to results of a peer group. The Committee may appropriately adjust any evaluation performance under a Performance Criterion to exclude any of the following events that occurs during a performance period:
(i) asset write-downs or impairments, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reporting results, (iv) accruals
for reorganizations and restructuring programs, (v) any extraordinary non-recurring items, including those described in the Financial Accounting Standards Board’s authoritative guidance and/or in management’s discussion and analysis
of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, and (vi) any other extraordinary items adjusted from the Company U.S. GAAP results. 

“Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select,
over which the attainment of one or more Performance Criteria will be measured for the purpose of determining a Participant’s right to and the payment of a Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based
Award, the vesting and/or payment of which is subject to the attainment of one or more Performance Goals. Each such period shall not be less than 12 months. 

“Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Committee for a Performance Cycle
based upon the Performance Criteria. 
 “Performance Share Award” means an Award entitling the Participant to acquire shares of
Stock upon the attainment of specified Performance Goals. 

  
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 “Restricted Stock Award” means an Award of shares of Stock subject to such restrictions
and conditions as the Committee may determine at the time of grant. 
 “Restricted Stock Units” means an Award of stock units to a
Participant. 
 “Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.

 “Stock” means the Common Stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3.

 “Stock Appreciation Right” means an Award entitling the Participant to receive shares of Stock having a value equal to the excess
of the Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of Stock with respect to which the Stock Appreciation Right shall have been exercised. 

“Ten Percent Owner” means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the
Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation. 

“Unrestricted Stock Award” means an Award of shares of Stock free of any restrictions. 

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS AND DETERMINE AWARDS 

(a) Administration of Plan. The Plan shall be administered by the Committee. 

(b) Powers of Committee. The Committee shall have the power and authority to grant Awards consistent with the terms of the Plan, including the
power and authority: 
 (i) to select the individuals to whom Awards may from time to time be granted; 

(ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation
Rights, Restricted Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Cash-Based Awards, Performance Share Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more Participants; 

(iii) to determine the number of shares of Stock to be covered by any Award; 

(iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any
Award, which terms and conditions may differ among individual Awards and Participants, and to approve the forms of Award Agreements; 
 (v) to
accelerate at any time the exercisability, vesting or the lapse or achievement of any condition of all or any portion of any Award; 
 (vi) subject
to the provisions of Section 5(b), to extend at any time the period in which Stock Options may be exercised; and 
 (vii) except as otherwise
provided in Section 18 of the Plan, at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and
provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise
the administration of the Plan. 

  
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 All decisions and interpretations of the Committee shall be binding on all persons, including the Company
and the Participants. 
 (c) Delegation of Authority to Grant Awards. Subject to applicable law, the Committee, in its discretion, may delegate
to the Chief Executive Officer or Chief Financial Officer of the Company all or part of the Committee’s authority and duties with respect to the granting of Awards to individuals who are (i) not subject to the reporting and other
provisions of Section 16 of the Exchange Act and (ii) not Covered Employees. Any such delegation by the Committee shall include a limitation as to the amount of Awards that may be granted during the period of the delegation and shall
contain guidelines as to the determination of the exercise price and the vesting criteria. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s
delegate or delegates that were consistent with the terms of the Plan. 
 (d) Award Agreement. Awards under the Plan shall be evidenced by
Award Agreements that set forth the terms, conditions and limitations for each Award which may include, without limitation, the term of an Award and the provisions applicable in the event employment or service terminates. 

(e) Indemnification. Neither the Board nor the Committee, nor any member of either or any delegate thereof, shall be liable for any act,
omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by
the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s articles or bylaws or
any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company. 

(f) Non-US Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in
which the Company and its Affiliates operate or have employees or other individuals eligible for Awards, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which Affiliates shall be covered by the Plan;
(ii) determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to individuals outside the United States to comply with applicable foreign laws;
(iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications shall be attached to this Plan as
appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a) hereof; and (v) take any action, before or after an Award is made, that the Committee determines to
be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would
violate the Exchange Act or any other applicable United States securities law, the Code, or any other applicable United States governing statute or law. 

(g) Prohibition on Dividends Payable on Awards Prior to Vesting. No dividends shall be paid with respect to any Award prior to the vesting
thereof. Dividends or Dividend Equivalents may accrue with respect to Awards that are unvested, but shall not be paid before the vesting of such Award. 
 SECTION 3.
STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 
 (a) Stock Issuable. The maximum number of shares of Stock reserved and available
for issuance under the Plan shall be the sum of (i) 46,000,000 shares, plus (ii) the shares of Stock underlying any awards granted under the 2005 Plan that are forfeited, canceled or otherwise terminated (other than by exercise) after the
date of the Company’s 2014 annual stockholder meeting, subject to adjustment as provided in this Section 3. For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited, canceled or otherwise terminated
(other than by exercise) under this Plan, shall be added back to the shares of Stock available for issuance under the Plan. Notwithstanding the foregoing, the following shares shall not be added to the shares authorized for grant under the

  
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Plan: (i) shares tendered or held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding, and (ii) shares subject to a Stock
Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right upon exercise thereof. In the event the Company repurchases shares of Stock on the open market, such shares shall not be added to the
shares of Stock available for issuance under the Plan. Subject to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation
Rights with respect to no more than 2,000,000 shares of Stock may be granted to any one individual Participant during any one calendar year period, and no more than 46,000,000 shares of the Stock may be issued in the form of Incentive Stock Options.
The shares available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company. 
 (b)
Effect of Awards. The grant of any full value Award (i.e., an Award other than an Option or a Stock Appreciation Right) shall be deemed, for purposes of determining the number of shares of Stock available for issuance under Section 3(a),
as an Award of 2.75 shares of Stock for each such share of Stock actually subject to the Award. The grant of an Option or a Stock Appreciation Right shall be deemed, for purposes of determining the number of shares of Stock available for issuance
under Section 3(a), as an Award for one share of Stock for each such share of Stock actually subject to the Award. Any forfeitures, cancellations or other terminations (other than by exercise) of such Awards shall be returned to the reserved
pool of shares of Stock under the Plan in the same manner. 
 (c) Changes in Stock. Subject to Section 3(d) hereof, if, as a result of any
reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or decreased or are exchanged for a
different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Stock or other
securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company or any successor entity (or
a parent or subsidiary thereof), the Committee shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum number of shares that may be issued in the form
of Incentive Stock Options, (ii) the number of Stock Options or Stock Appreciation Rights that can be granted to any one individual Participant and the maximum number of shares that may be granted under a Performance-Based Award, (iii) the
number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted Stock Award, and (v) the exercise price for each share
subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which
such Stock Options and Stock Appreciation Rights remain exercisable. The Committee shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding
Awards to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate event. The adjustment by the Committee shall be final, binding and conclusive. No fractional shares of Stock shall be issued
under the Plan resulting from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares. 
 (d)
Mergers and Other Transactions. 
 (i) In the case of and subject to the consummation of an Acquisition, the parties thereto may cause the
assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards on an equitable basis with new Awards of the successor entity or parent thereof, with appropriate adjustment as to the number and
kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree, the Fair Market Value of which (as determined by the Committee in its sole discretion) shall not materially differ from the Fair Market Value of the
shares of Stock subject to such Awards immediately preceding the Acquisition. To the extent the parties to such Acquisition do not provide for the assumption, continuation or substitution of Awards, as of the

  
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effective time of the Acquisition, the Plan and all outstanding Awards granted shall terminate, and, except as the Committee may otherwise specify with respect to particular Awards in the
relevant Award Agreement, all Options and Stock Appreciation Rights that are not exercisable immediately prior to the effective time of the Acquisition shall become fully exercisable as of the effective time of the Acquisition, all other Awards with
time-based vesting, conditions or restrictions shall become fully vested and nonforfeitable as of the effective time of the Acquisition and all Awards with conditions and restrictions relating to the attainment of performance goals will be deemed
achieved at one hundred percent (100%) of target levels and become fully vested and nonforfeitable as of the effective time of the Acquisition. 

(ii) In addition to or in lieu of the foregoing, with respect to outstanding Options and Stock Appreciation Rights, the Committee may, on the same basis
or on different bases as the Committee shall specify, upon written notice to the affected Participants, provide that one or more Options and Stock Appreciation Rights then outstanding must be exercised, in whole or in part, within a specified number
of days of the date of such notice, at the end of which period such Options and Stock Appreciation Rights shall terminate, or provide that one or more Options and Stock Appreciation Rights then outstanding, in whole or in part, shall be terminated
in exchange for a cash payment equal to the excess of the fair market value (as determined by the Committee in its sole discretion) for the shares subject to such Options and Stock Appreciation Rights over the exercise price thereof. 

(iii) Notwithstanding anything to the contrary herein, the Committee may, in its sole discretion, provide that all Options and Stock Appreciation Rights
that are not exercisable immediately prior to the effective time of an Acquisition shall become fully exercisable as of the effective time of the Acquisition, all other Awards with time-based vesting, conditions or restrictions shall become fully
vested and nonforfeitable as of the effective time of an Acquisition and all Awards with conditions and restrictions relating to the attainment of performance goals will be deemed achieved at one hundred percent (100%) of target levels and
become fully vested and nonforfeitable as of the effective time of an Acquisition. In such cases, such Awards shall become exercisable in full prior to the consummation of the Acquisition at such time and on such conditions as the Committee
determines, and if such Awards are not exercised prior to the consummation of the Acquisition, they shall terminate at such time as determined by the Committee. 

(iv) Notwithstanding anything to the contrary herein, in the event of an involuntary termination of services of a Participant for any reason other than
death, disability or Cause within six months following the consummation of an Acquisition, any Awards of the Participant assumed or substituted in an Acquisition which are subject to vesting conditions, the lapse or achievement of any conditions
and/or a right of repurchase in favor of the Company or a successor entity, shall accelerate in full, and any Awards accelerated in such manner with conditions and restrictions relating to the attainment of performance goals will be deemed achieved
at one hundred percent (100%) of target levels. All such accelerated Awards of the Participant shall be exercisable for a period of one year following termination, but in no event after the expiration date of such Award. As used in this
subsection (d)(iv) only, “Cause” shall mean the commission of any act of fraud, embezzlement or dishonesty by the Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the
Company, or any other intentional misconduct by such person adversely affecting the business or affairs of the Company in a material manner. 
 (v) In
the event of an Acquisition while a Participant is a Non-Employee Director, the vesting of any and all Awards shall become exercisable in full prior to the consummation of the Acquisition at such time and on such conditions as the Committee
determines, and if such Awards are not exercised prior to the consummation of the Acquisition, they shall terminate at such time as determined by the Committee. 

(e) Substitute Awards. The Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees,
directors or Consultants of another corporation in connection with the merger or consolidation of the employing corporation with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the employing
corporation. The Committee may direct that the substitute awards be 

  
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granted on such terms and conditions as the Committee considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set
forth in Section 3(a). 
 (f) No Reload Grants. Awards shall not be granted under the Plan in consideration for, and shall not be
conditioned upon, delivery of Stock to the Company in payment of the exercise price and/or tax withholding obligation under any Award. 
 SECTION 4.
ELIGIBILITY 
 Participants under the Plan will be such full or part-time officers and other employees, Non-Employee Directors and Consultants
of the Company and its Affiliates as are selected from time to time by the Committee in its sole discretion. 
 SECTION 5. STOCK OPTIONS 

Any Stock Option granted under the Plan shall be in such form as the Committee may from time to time approve. 

Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only
to employees of the Company or any Affiliate that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a
Non-Qualified Stock Option. 
 Stock Options granted pursuant to this Section 5 shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee so determines, Stock Options may be granted in lieu of cash compensation at the Participant’s
election, subject to such terms and conditions as the Committee may establish. 
 (a) Exercise Price. The exercise price per share for the
Stock covered by a Stock Option granted pursuant to this Section 5 shall be determined by the Committee at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant. In the case of an Incentive Stock
Option that is granted to a Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 

(b) Option Term. The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than five years
after the date the Stock Option is granted. 
 (c) Exercisability; Rights of a Stockholder. Stock Options shall become exercisable at such time
or times, whether or not in installments, as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion of any Stock Option. A Participant shall have the rights
of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (d) Method of
Exercise. Stock Options may be exercised in whole or in part, by giving written or electronic notice of exercise to the Company or its agent, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or
more of the following methods to the extent provided in the Option Award Agreement: 
 (i) In cash, by certified or bank check or other instrument
acceptable to the Committee; 
 (ii) Through the delivery (or attestation to the ownership) of shares of Stock that are not then subject to
restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date; 
 (iii) By the Participant
delivering to the Company or its agent a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable

  
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to the Company for the purchase price; provided that in the event the Participant chooses to pay the purchase price as so provided, the Participant and the broker shall comply with such
procedures and enter into such agreements of indemnity and other agreements as the Committee or its delegates shall prescribe as a condition of such payment procedure; or 

(iv) With respect to Stock Options that are not Incentive Stock Options, by a “net exercise” arrangement pursuant to which the Company will
reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price. 

Payment instruments will be received subject to collection. The transfer to the Participant on the records of the Company or of the transfer agent of the shares of
Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the Participant (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase
price for such shares and the fulfillment of any other requirements contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any withholding taxes that the Company is obligated to withhold with respect
to the Participant). In the event a Participant chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Participant upon the exercise of the Stock Option
shall be net of the number of attested shares. In the event that the Company establishes, for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using an internet website or
interactive voice response, then the paperless exercise of Stock Options may be permitted through the use of such an automated system. 
 (e) Auto
Exercise at Expiration. The Company may provide in an Award Agreement that to the extent the Option remains unexercised, it will be exercised automatically by “net exercise” pursuant to Section 5(d)(iv) of the Plan immediately
prior to the end of the Option Term. 
 (f) Annual Limit on Incentive Stock Options. To the extent required for “incentive stock
option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and any other plan of the
Company or its parent and subsidiary corporations become exercisable for the first time by a Participant during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified
Stock Option. 
 SECTION 6. STOCK APPRECIATION RIGHTS 

(a) Exercise Price of Stock Appreciation Rights. The exercise price of a Stock Appreciation Right shall not be less than 100 percent of the Fair
Market Value of the Stock on the date of grant. 
 (b) Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be
granted by the Committee independently of any Stock Option granted pursuant to Section 5 of the Plan. 
 (c) Terms and Conditions of Stock
Appreciation Rights. Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined from time to time by the Committee. The term of a Stock Appreciation Right may not exceed five years. 

SECTION 7. RESTRICTED STOCK AWARDS 
 (a) Nature of
Restricted Stock Awards. The Committee shall determine the restrictions and conditions applicable to each Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The terms and conditions of each such Award Agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and Participants. 

  
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 (b) Rights as a Stockholder. Upon the grant of the Restricted Stock Award and payment of any
applicable purchase price, a Participant shall have the rights of a stockholder with respect to the voting of the Restricted Stock and receipt of dividends; provided that, to the extent permitted by applicable law, any dividends paid by the Company
shall accrue and be paid to the Participant only upon the vesting of the Restricted Stock. Unless the Committee shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or
the transfer agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession of the Company until such
Restricted Stock is vested as provided in Section 7(d) below, and the Participant shall be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Committee may prescribe. 

(c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically
provided herein or in the Restricted Stock Award Agreement. Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 18 below, in writing after the Award is issued, if a Participant’s
employment (or other service relationship) with the Company and its Affiliates terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice to such
Participant from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if any) from such Participant or such Participant’s legal representative simultaneously with such
termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the Participant or rights of the Participant as a stockholder. Following such deemed reacquisition of unvested
Restricted Stock that are represented by physical certificates, a Participant shall surrender such certificates to the Company upon request without consideration. 

(d) Vesting of Restricted Stock. The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or the attainment of such
pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by the Committee
either in the Award Agreement or, subject to Section 18 below, in writing after the Award is issued, a Participant’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the Participant’s
termination of employment (or other service relationship) with the Company and its Affiliates and such shares shall be subject to the provisions of Section 7(c) above. 

SECTION 8. RESTRICTED STOCK UNITS 
 (a) Nature of
Restricted Stock Units. The Committee shall determine the restrictions and conditions applicable to each Restricted Stock Unit at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The terms and conditions of each such Award Agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and Participants. At the
end of the deferral period, the Restricted Stock Units, to the extent vested, shall be settled in the form of shares of Stock. To the extent that an award of Restricted Stock Units is subject to Section 409A, it may contain such additional
terms and conditions as the Committee shall determine in its sole discretion in order for such Award to comply with the requirements of Section 409A. 

(b) Election to Receive Restricted Stock Units in Lieu of Compensation. The Committee may, in its sole discretion, permit a Participant to elect
to receive a portion of future cash compensation otherwise due to such Participant in the form of an award of Restricted Stock Units. Any such election shall be made in writing and shall be delivered to the Company no later than the date specified
by the Committee and in accordance with Section 409A and such other rules and procedures established by the Committee. Any such future cash compensation that the Participant elects to defer shall be converted to a fixed number of Restricted
Stock Units based on the Fair Market Value of Stock on the date the 

  
 10 

 
compensation would otherwise have been paid to the Participant if such payment had not been deferred as provided herein. The Committee shall have the sole right to determine whether and under
what circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the Committee deems appropriate. Any Restricted Stock Units that are elected to be received in lieu of cash compensation shall be
fully vested, unless otherwise provided in the Award Agreement. 
 (c) Rights as a Stockholder. A Participant shall have the rights as a
stockholder only as to shares of Stock acquired by the Participant upon settlement of Restricted Stock Units; provided, however, that the Participant may be credited with Dividend Equivalent Rights with respect to the shares of Stock underlying his
Restricted Stock Units, subject to such terms and conditions as the Committee may determine. Dividend Equivalent Rights may not be settled until the Restricted Stock Units vest. 

(d) Termination. Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 18 below, in
writing after the Award is issued, a Participant’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the Participant’s termination of employment (or cessation of service relationship) with the
Company and its Affiliates for any reason. 
 SECTION 9. UNRESTRICTED STOCK AWARDS 

Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase price
determined by the Committee) an Unrestricted Stock Award under the Plan. Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such Participant. 

SECTION 10. CASH-BASED AWARDS 
 (a) Grant of Cash-Based
Awards. The Committee may, in its sole discretion, grant Cash-Based Awards to any Participant in such number or amount and upon such terms, and subject to such conditions, as the Committee shall determine at the time of grant. The Committee
shall determine the maximum duration of the Cash-Based Award, the amount of cash to which the Cash-Based Award pertains, the conditions upon which the Cash-Based Award shall become vested or payable, and such other provisions as the Committee shall
determine. Each Cash-Based Award shall specify a cash-denominated payment amount, formula or payment ranges as determined by the Committee. Payment, if any, with respect to a Cash-Based Award shall be made in accordance with the terms of the Award
and may be made in cash or in shares of Stock, as the Committee determines. 
 SECTION 11. PERFORMANCE SHARE AWARDS 

(a) Nature of Performance Share Awards. The Committee may, in its sole discretion, grant Performance Share Awards independent of, or in
connection with, the granting of any other Award under the Plan. The Committee shall determine whether and to whom Performance Share Awards shall be granted, the Performance Goals, the periods during which performance is to be measured, which may
not be less than one year except in the case of an Acquisition, and such other limitations and conditions as the Committee shall determine. 
 (b)
Rights as a Stockholder. A Participant receiving a Performance Share Award shall have the rights of a stockholder only as to shares actually received by the Participant under the Plan and not with respect to shares subject to the Award but
not actually received by the Participant. A Participant shall be entitled to receive shares of Stock under a Performance Share Award only upon satisfaction of all conditions specified in the Performance Share Award Agreement (or in a performance
plan adopted by the Committee). 
 (c) Termination. Except as may otherwise be provided by the Committee either in the Award agreement or,
subject to Section 18 below, in writing after the Award is issued, a Participant’s rights in all Performance Share Awards shall automatically terminate upon the Participant’s termination of employment (or cessation of service
relationship) with the Company and its Affiliates for any reason. 

  
 11 

 SECTION 12. PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES 

(a) Performance-Based Awards. Any employee or other Consultant providing services to the Company and who is selected by the Committee may be
granted one or more Performance-Based Awards in the form of a Restricted Stock Award, Restricted Stock Units, Performance Share Awards or Cash-Based Award payable upon the attainment of Performance Goals that are established by the Committee and
relate to one or more of the Performance Criteria, in each case on a specified date or dates or over any period or periods determined by the Committee. The Committee shall define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for any Performance Cycle. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division,
business unit, or an individual. Each Performance-Based Award shall comply with the provisions set forth below. 
 (b) Grant of Performance-Based
Awards. With respect to each Performance-Based Award granted to a Covered Employee, the Committee shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the
Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including a threshold level of performance below which no amount will become payable with respect to such Award). Each
Performance-Based Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable performance targets. The Performance Criteria established by the Committee may be (but need not
be) different for each Performance Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered Employees. 

(c) Payment of Performance-Based Awards. Following the completion of a Performance Cycle, the Committee shall meet to review and certify in
writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the Performance-Based Awards earned for the Performance Cycle. The Committee
shall then determine the actual size of each Covered Employee’s Performance-Based Award, and, in doing so, may reduce or eliminate the amount of the Performance-Based Award for a Covered Employee if, in its sole judgment, such reduction or
elimination is appropriate. 
 (d) Maximum Award Payable. The maximum Performance-Based Award payable to any one Covered Employee under the
Plan for a Performance Cycle is 2,000,000 shares of Stock (subject to adjustment as provided in Section 3(c) hereof) or $25 million in the case of a Performance-Based Award that is a Cash-Based Award. 

SECTION 13. DIVIDEND EQUIVALENT RIGHTS 
 (a) Dividend
Equivalent Rights. A Dividend Equivalent Right may be granted hereunder to any Participant as a component of an award of Restricted Stock Units, Restricted Stock Award or Performance Share Award or as a freestanding award. The terms and
conditions of Dividend Equivalent Rights shall be specified in the Award Agreement. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue
additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment or such other price as may then apply under a dividend reinvestment plan sponsored by the Company, if any. Dividend Equivalent Rights may be
settled in cash or shares of Stock or a combination thereof, in a single installment or installments. A Dividend Equivalent Right granted as a component of an Award with vesting shall provide that such Dividend Equivalent Right shall be settled only
upon settlement or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. 

(b) Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in the grant for
interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant. 

  
 12 

 (c) Termination. Except as may otherwise be provided by the Committee either in the Award Agreement
or, subject to Section 18 below, in writing after the Award is issued, a Participant’s rights in all Dividend Equivalent Rights or interest equivalents granted as a component of an Award that has not vested shall automatically terminate
upon the Participant’s termination of employment (or cessation of service relationship) with the Company and its Affiliates for any reason. 
 SECTION 14.
TRANSFERABILITY OF AWARDS 
 (a) Transferability. Except as provided in Section 14(b) below, during a Participant’s lifetime,
his or her Awards shall be exercisable only by the Participant, or by the Participant’s legal representative or guardian in the event of the Participant’s incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered
or disposed of by a Participant other than by will or by the laws of descent and distribution or pursuant to a domestic relations order. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any
purported transfer in violation hereof shall be null and void. 
 (b) Committee Action. Notwithstanding Section 14(a), the Committee, in
its discretion, may provide either in the Award Agreement regarding a given Award or by subsequent written approval that the Participant (who is an employee or director) may transfer his or her Non-Qualified Options to his or her immediate family
members, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this
Plan and the applicable Award. In no event may an Award be transferred by a Participant for value. 
 (c) Family Member. For purposes of
Section 14(b), “family member” shall mean a Participant’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant of the Participant), a trust in which these persons (or the Participant) have more than 50 percent of the
beneficial interest, a foundation in which these persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than 50 percent of the voting interests. 

SECTION 15. TAX WITHHOLDING 
 (a) Payment by
Participant. Upon the occurrence of any applicable taxable event related to an Award, the Participant shall pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any
kind required by law to be withheld by the Company or an Affiliate with respect to such income. The Company and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due
to the Participant. The Company’s obligation to deliver evidence of book entry (or stock certificates) to any Participant is subject to and conditioned on tax withholding obligations being satisfied by the Participant. 

(b) Withholding in Stock. Subject to approval by the Committee, any required tax withholding obligation may be satisfied, in whole or in part, by
the Company withholding from shares of Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 

SECTION 16. SECTION 409A AWARDS 
 To the extent that any
Award is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the
Committee from time to time in order to comply with Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a Participant

  
 13 

 
who is then considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months
and one day after the Participant’s separation from service, or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax
imposed pursuant to Section 409A. Further, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A. 
 SECTION
17. TERMINATION OF EMPLOYMENT, TRANSFER, LEAVE OF ABSENCE, ETC. 
 (a) Effect of Termination of Employment, Etc. Unless the Committee,
in its sole discretion shall at any time determine otherwise with respect to any Award, if the Participant’s employment or other association with the Company and its Affiliates ends for any reason, including because of the Participant’s
employer ceasing to be an Affiliate, (i) any outstanding Option or Stock Appreciation Right of the Participant shall cease to be exercisable in any respect not later than six months following that event and, for the period it remains
exercisable following that event, shall be exercisable only to the extent exercisable at the date of that event, and (ii) any other outstanding Award of the Participant shall be forfeited or otherwise subject to return to or repurchase by the
Company on the terms specified in the applicable Award Agreement. 
 (b) Effect of Leaves and Transfers. For purposes of the Plan, the
following events shall not be deemed a termination of employment: 
 (i) a transfer to the employment of the Company from an Affiliate or from the
Company to an Affiliate, or from one Affiliate to another; or 
 (ii) an approved leave of absence for any purpose approved by the Company or an
Affiliate or any leave of absence during which the Participant’s right of employment is guaranteed by statute or contract; provided, however, that unless the Committee (and any delegate thereof) provides otherwise, vesting of awards granted
hereunder will be suspended one hundred eighty (180) days after the commencement of an unpaid leave of absence, unless such suspension is not permitted by applicable law. 

SECTION 18. AMENDMENTS AND TERMINATION 
 The Board may, at
any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under
any outstanding Award without the holder’s consent. Except as provided in Section 3(c) or 3(d), without prior stockholder approval, in no event may the Committee exercise its discretion to reduce the exercise price of outstanding Stock
Options or Stock Appreciation Rights or effect repricing through cancellation and re-grants at an exercise price that is less than the original exercise price of such Stock Option Stock Appreciation Right or cancellation of Stock Options or Stock
Appreciation Rights in exchange for cash. To the extent required under the rules of any securities exchange or market system on which the Stock is listed, to the extent determined by the Committee to be required by the Code to ensure that Incentive
Stock Options granted under the Plan are qualified under Section 422 of the Code, or to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be
subject to approval by the Company stockholders entitled to vote at a meeting of stockholders. Nothing in this Section 18 shall limit the Committee’s authority to take any action permitted pursuant to Section 3(c) or 3(d). 

SECTION 19. STATUS OF PLAN 
 With respect to the portion of
any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a Participant, a Participant shall have no rights greater than those of a general creditor of the Company unless the Committee shall
otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the 

  
 14 

 
Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing
sentence. 
 SECTION 20. GENERAL PROVISIONS 
 (a) No
Distribution. The Committee may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 

(b) Acceptance of Award Agreements. Each Participant is deemed to have accepted his or her Award Agreement six months from the date of grant
unless he or she has accepted the Award Agreement pursuant to such procedures as required by the Company. 
 (c) Delivery of Stock
Certificates. Stock certificates to Participants under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the
Participant, at the Participant’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the Participant by
electronic mail (with proof of receipt) or by United States mail, addressed to the Participant, at the Participant’s last known address on file with the Company, notice of issuance and recorded the issuance in its records (which may include
electronic “book entry” records). Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until
the Committee has determined, with advice of counsel (to the extent the Committee deems such advice necessary or advisable), that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental
authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall be subject to any stop-transfer orders and other restrictions as
the Committee deems necessary or advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted or traded. The Committee may place legends on any Stock
certificate to reference restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the Committee may require that an individual make such reasonable covenants, agreements, and representations as the Committee, in
its discretion, deems necessary or advisable in order to comply with any such laws, regulations, or requirements. The Committee shall have the right to require any individual to comply with any timing or other restrictions with respect to the
settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee. 
 (d) Stockholder
Rights. Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award,
notwithstanding the exercise of a Stock Option or any other action by the Participant with respect to an Award. 
 (e) Other Compensation
Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only
in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Affiliate. 

(f) Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to the Company’s insider trading policies
and procedures, as in effect from time to time. 
 (g) Clawback/Recovery. All Awards granted under the Plan will be subject to recoupment in
accordance with the Company’s Executive Compensation Recovery Policy adopted on December 14, 2016, as may be amended from time to time, and any other clawback policy that the Company is required to adopt pursuant to the listing standards
of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition, the Committee

  
 15 

 
may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Committee determines necessary or appropriate, including but not limited to a reacquisition right in
respect of previously acquired shares of Stock or other cash or property in appropriate circumstances. 
 SECTION 21. EFFECTIVE DATE OF PLAN 

This Plan shall become effective upon stockholder approval in accordance with applicable state law, the Company’s bylaws and certificate of
incorporation (each as amended or restated from time to time), and applicable stock exchange rules. No grants of Awards may be made hereunder after the tenth anniversary of the Effective Date, and no grants of Incentive Stock Options may be made
hereunder after the tenth anniversary of the date the Plan is approved by the Board. Awards granted pursuant to this Plan during its unexpired term shall not expire solely by reason of the termination of this Plan. 

SECTION 22. GOVERNING LAW 
 This Plan and all Awards and
actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles. 

SECTION 23. ARBITRATION AND CLASS ACTION WAIVER 
 Any
dispute or claim relating to or arising out of this Plan, any Award and/or any actions taken thereunder, to the fullest extent permitted by law, shall be fully and finally resolved by confidential, binding arbitration by a single, neutral arbitrator
agreed upon by the Participant and the Company. The arbitration shall be held in the county where the Company has an office at which the applicable Participant provides services (for remote Participants, the nearest county where the Company has
an office) or any other locale to which the parties jointly agree. If the parties cannot agree upon an arbitrator, the arbitrator shall be a JAMS neutral selected in accordance with the then-current Employment Arbitration Rules & Procedures
of JAMS (which are available at www.jamsadr.com), and the arbitration shall be conducted in accordance with those rules and procedures. The parties each waive their respective rights to have any such disputes/claims tried by a judge or a jury. The
arbitrator shall permit adequate discovery and shall be empowered to award all remedies otherwise available in a court of competent jurisdiction, and any judgment rendered by the arbitrator may be entered by any court of competent jurisdiction. The
arbitrator shall issue a written award setting forth the essential findings and conclusions on which the award is based. Other than an amount equal to the fee for filing such an action in the local state court, which amount the Participant shall pay
toward the costs of the arbitration, the Company shall bear the costs of the arbitration, including the JAMS administrative fees and the arbitrator’s fees. Each party shall otherwise bear its own respective attorneys’ fees and costs of the
arbitration, except to the extent otherwise provided by law and awarded by the arbitrator. The Participant and the Company agree that each may bring claims against the other only in an individual capacity, and not as a plaintiff or class member in
any purported class action or other representative proceeding. 
 SECTION 24. AWARDS TO NON-EMPLOYEE DIRECTORS. 

(a) Maximum Awards to Non-Employee Directors. Notwithstanding anything to the contrary in the Plan, the value of all equity-based Awards granted
under this Plan to any Non-Employee Director in any calendar year shall not exceed $795,000 (excluding any Awards granted to any non-employee director in connection with his or her initial election to the Board). For purposes of this limitation, the
value of any equity-based Award shall be the grant date fair value, as determined in accordance with ASC 718 or any successor provision but excluding the impact of estimated forfeitures related to service-based vesting provisions. 

(b) Awards Available for Non-Employee Directors. Non-Employee Directors shall be eligible to receive an annual equity-based Award under this
Plan. Such annual equity-based Award shall be made on the first business day of the 

  
 16 

 
month following the Company’s annual shareholders meeting and shall generally vest in equal monthly installments over a one-year period, subject to such director’s continued service as
a director through such vesting date. Newly appointed Non-Employee Directors are also entitled to receive an Award under this Plan upon his or her initial election to the Board of Directors, which vest over a period of time determined by the
Committee. The terms set forth in this Section 24(b) are subject to change from time to time as determined by the Committee. 
 (c) Mergers
and Other Transactions. As set forth in Section 3(d)(v), in the event of an Acquisition while a Participant is a Non-Employee Director, the vesting of any and all Awards shall be accelerated in full prior to the consummation of the
Acquisition at such time and on such conditions as the Committee determines, and if any Options or Stock Appreciation Rights are not exercised prior to the consummation of the Acquisition, they shall terminate at such time as determined by the
Committee. 
 (d) Maximum Cash Compensation to Non-Employee Directors. Notwithstanding anything to the contrary in this Plan, the value of all
cash compensation, not including the value of any Awards granted under this Plan, paid by the Company to any Non-Employee Director, in his or her capacity as such, in any calendar year shall not exceed $500,000. 

DATE ORIGINALLY APPROVED BY BOARD OF DIRECTORS: February 12, 2014 
 DATE
ORIGINALLY APPROVED BY STOCKHOLDERS: May 22, 2014 
 DATE MOST RECENTLY APPROVED BY BOARD OF DIRECTORS: March 14, 2017 

DATE MOST RECENTLY APPROVED BY STOCKHOLDERS: June 22, 2017 

  
 17SEC Connect

 

 Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as
of [_____], 2017 by and among MetaStat, Inc., a Nevada corporation
(the “Company”), and the
purchasers listed on Exhibit A attached hereto (each
a “Purchaser” and
collectively, the “Purchasers”), for the
purchase and sale of shares of the Company’s common stock,
par value $0.001 per share (the “Common Stock”) by the
Purchasers.

 

RECITALS

 

WHEREAS, the
Company is offering through a private placement (the
“Offering”) shares of
Common Stock (the “Shares") at $1.15 per share
(the “Per Share
Purchase Price”) to Purchasers who qualify as
“accredited investors”, as such term is defined in Rule
501(a) of Regulation D of the Securities Act of 1933, as amended
(the “Securities
Act”), using certain non-exclusive registered
placement agents (each an “Agent” and collectively
the “Agents”);

 

WHEREAS, the
Company and each of the Purchasers are executing and delivering
this Agreement in accordance with and in reliance upon the
exemption from securities registration afforded by Section 4(a)(2)
of the Securities Act and Rule 506(b) of Regulation D
(“Regulation
D”) as promulgated by the United States Securities and
Exchange Commission (the “Commission”) under the
Securities Act;

 

AGREEMENT

 

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

 

ARTICLE I

 

Definitions

 

Section
1.1 Certain Definitions. When used
herein, the following terms shall have the respective meanings
indicated:

 

“2016 Company Investor”
means a Purchaser in this Offering that is an existing Company
shareholder, who subscribed and purchased securities of the Company
pursuant to the 2016 Unit Financings.

 

“2016 Unit Financings”
means the 2016 Unit Private Placement and the Additional 2016 Unit
Private Placement, in which the Company issued units consisting of
shares of Common Stock at $2.00 per share, and the 2016 Unit
Warrants.

 

“2016 Unit Private
Placement” means the private placement pursuant of
units with closings on May 26, 2016 and June 8, 2016 for an
aggregate Original Investment Amount of $495,000, which also
includes the exchange of certain Exchange Securities with an
Original Investment Amount of $99,000.

 

“2016 Unit Warrants” means
five-year Common Stock purchase warrants of the Company with an
initial exercise price of $3.00 per share.

 

“Additional 2016 Unit Private
Placement” means the private placement with closings
between August 31, 2016 and October 30, 2016 for an aggregate
Original Investment Amount of $2,602,500, which also includes the
exchange of certain Exchange Securities with an Original Investment
Amount of $3,378,250.

 

 

-1-

 

 

“Additional Shares” means
additional shares of Common Stock to be issued for no additional
consideration to certain 2016 Company Investors who satisfy the
requirements in either Section 2.4(a) or Section 2.4(b) hereof, in
an amount equal to 0.425 Additional Shares shall be issued for each
Share issued to each 2016 Company Investor in this
Offering.

 

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

 

“Business Day” means any
day other than a Saturday, a Sunday or a day on which the OTCQB (or
other principal exchange) is closed or on which banks in the City
of New York are required or authorized by law to be
closed.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended (or any successor act),
and the rules and regulations thereunder (or respective successors
thereto).

 

“Exchange Securities”
means any of the following securities of the Company that were
exchanged into the 2016 Unit Financings; (i) Series B Convertible
Preferred Stock with an Original Investment Amount of $2,387,250,
originally issued between December 31, 2014 and March 31, 2015,
(ii) a non-convertible promissory note with an Original Investment
Amount of $600,000, originally issued on July 31, 2015, (iii)
non-convertible OID promissory notes with an Original Investment
Amount of $425,000, originally issued between February 12, 2016 and
March 15, 2016 and (iv) cancellation of accounts receivable due to
certain Company vendors with an Original Investment Amount of
$65,000. In connection with the 2016 Unit Financings, the holders
of the Exchange Securities became a party to the applicable
subscription agreement entered into with respect to the applicable
2016 Unit Financing.

 

“Indebtedness” shall mean
(a) any liabilities for borrowed money or amounts owed (other than
trade accounts payable incurred in the ordinary course of
business), (b) all guaranties, endorsements and other contingent
obligations in respect of Indebtedness of others, whether or not
the same should be reflected in the Company’s consolidated
balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (c)
the present value of any lease payments due under leases required
to be capitalized in accordance with U.S. GAAP.

 

“Intellectual Property
Rights” means all U.S. and foreign patents,
trademarks, domain names (whether or not registered) and any
patentable improvements or copyrightable derivative works thereof,
websites and intellectual property rights relating thereto, service
marks, trade names, copyrights, licenses and authorizations, if
any, and all rights with respect to the foregoing, if any, which
are necessary for the conduct of their respective business as now
conducted without any conflict with the rights of others, except
where the failure to so own or possess would not have a Material
Adverse Effect.

 

“Lien” means, with respect
to any Property, any mortgage, pledge, hypothecation, assignment,
deposit arrangement, security interest, tax lien, financing
statement, pledge, charge, or other lien, easement, encumbrance,
preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever on or with respect to
such Property (including, without limitation, any conditional sale
or other title retention agreement having substantially the same
economic effect as any of the foregoing).

 

“Material Adverse Effect”
means any material adverse effect on the business, operations,
properties, or financial condition of the Company and its
Subsidiaries, taken as a whole, and/or any condition, circumstance,
or situation that would prohibit or otherwise materially interfere
with the ability of the Company to perform any of its obligations
under this Agreement in any material respect.

 

“Original Investment
Amount” means the amount of capital originally
invested in the Company by the 2016 Company Investors pursuant to
their initial purchase of securities from the Company. Original
Investment Amount shall not include any accrued dividends or
interest thereon with respect to the Exchange Securities in
connection with the exchange thereof in the 2016 Unit
Financings.

 

“Property” means property
and/or assets of all kinds, whether real, personal or mixed,
tangible or intangible (including, without limitation, all rights
relating thereto.

 

 

 

-2-

 

 

“Rule 144” means the rules
and regulations of the Commission, as amended, promulgated pursuant
to the Securities Act or any successor provision.

 

“Securities” means the
Shares, Additional Shares, Preferred Shares and Conversion Shares
that may be issued pursuant to Section 2.5 herein.

 

“Short
Sales” means all “short sales” as defined in Rule
200 of Regulation SHO under the Securities Exchange Act of 1934
(but shall not be deemed to include the location and/or reservation
of borrowable shares of Common Stock).

 

“Subsidiary” means any
corporation or other entity of which at least a majority of the
securities or other ownership interests having ordinary voting
power (absolutely or contingently) for the election of directors or
other persons performing similar functions are at the time owned
directly or indirectly by the Company and/or any of its other
Subsidiaries.

 

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

 

                                 

“Transaction Documents”
means this Agreement, the Escrow Agreement, and all other,
agreements, documents, and other instruments executed and delivered
by or on behalf of the Company in connection with the
Offering.

 

“U.S. GAAP” means United
States generally accepted accounting principles, applied on a
consistent basis, as set forth in (i) opinions of the Accounting
Principles Board of the American Institute of Certified Public
Accountants, (ii) statements of the Financial Accounting Standards
Board and (iii) interpretations of the Commission and the Staff of
the Commission. Accounting principles are applied on a
“consistent basis” when the accounting principles
applied in a current period are comparable in all material respects
to those accounting principles applied in a preceding period,
except to the extent that new accounting standards have been
adopted by such organizations applicable as of the current
period.

 

ARTICLE II

 

Purchase
and Sale of the Shares

 

Section
2.1 Purchase and Sale of the
Securities. Upon the following terms and conditions, the
Company is offering to each Purchaser and each Purchase is
purchasing from the Company the number of Securities set forth
opposite such Purchaser’s name on Exhibit A attached
hereto.

 

Section
2.2 Purchase Price and Closing.
Subject to the terms and conditions hereof, the Company agrees to
issue and sell to the Purchasers and, in consideration of and in
express reliance upon the representations, warranties, covenants,
terms and conditions of this Agreement, the Purchasers, severally
but not jointly, agree to purchase the Securities set forth
opposite their respective names on Exhibit A attached hereto for
an aggregate purchase price of up to Seven Million Dollars
($7,000,000) (the “Purchase Price”). The
parties hereto acknowledge and agree that a portion of the Purchase
Price may be paid by certain Purchasers converting outstanding
indebtedness owed to such Purchasers by the Company as evidenced by
a convertible promissory note up to an aggregate principal amount
of $1,000,000 held by such Purchasers. The initial closing (the
“Initial
Closing”) of the purchase and sale of the Securities
to be acquired by the Purchasers from the Company under this
Agreement shall take place at such time as Purchasers have executed
this Agreement, and all of the conditions set forth in Article V
hereof and applicable to the Initial Closing shall have been
fulfilled or waived in accordance herewith (the “Initial Closing Date”).
After the Initial Closing, the Company may conduct any number of
additional closings (each, an “Additional Closing” and,
together with the Initial Closing, a “Closing”) so long as the
final Additional Closing occurs on or before the July 31, 2017,
unless mutually extended by the Company and the Agents. Subject to
all conditions to Closing have been satisfied or waived, each
Closing shall take place at such time and place as the parties
shall agree (a “Closing
Date”).

 

 

 

-3-

 

 

Section
2.3 Payment, Escrow Agent, and Obligations
of the Escrow Agent.

 

(a) Each
Purchaser’s appropriate Purchase Price (i.e., a purchase
price equal to the number of Shares to be purchased by such
Purchaser multiplied by the Per Share Purchase Price) as set forth
on Exhibit A
attached hereto, shall be paid to Signature Bank, as escrow agent
for the Company (the “Escrow Agent”), by wire
transfer of immediately available funds in U.S. dollars (or in the
form of a personal or cashier’s check) in accordance with the
wire and delivery instructions attached hereto as Exhibit B. The Purchase Price
shall accompany the delivery of the executed Transaction Documents
by such Purchaser.

 

(b) The Purchaser
acknowledges and agrees that this Agreement and any other documents
delivered in connection herewith will be held by certain Agents on
behalf of the Company, and the Purchase Price will be deposited in
an escrow account (the “Escrow Account”), held by
the Escrow Agent. In the event that this Agreement is not accepted
in whole or in part by the Company for whatever reason, this
Agreement and any other documents delivered in connection herewith
will be returned to the Purchaser by the Agents at the address of
the Purchaser as set forth on the Purchaser’s signature page
hereto, and any Purchase Price deposited in the Escrow Account
shall be returned to the Purchaser by the Escrow Agent in
accordance with the payment information provided by the Agent to
the Escrow Agent.

 

(c) The Purchaser
agrees that the Escrow Agent shall have no accountability or
obligations to the Purchaser whatsoever, and acknowledges that the
Escrow Agent is accountable only to the Company and certain Agents.
The Purchaser agrees that when the Purchase Price is deposited in
the Escrow Account, the Escrow Agent’s only duty shall be to
deliver the Purchase Price to the Company or its designees, all
solely according to payment instructions submitted jointly by the
Company and certain Agents (the “Payment Instructions”),
and the Escrow Agent shall require no further instructions from the
Purchaser in delivering the same to the Company or its designees.
The Escrow Agent shall upon notice of a Closing Date jointly from
the Company and certain Agents, release to the Company or its
designees the proceeds of the Offering in accordance with the
Payment Instructions. In the event the Company rejects the purchase
pursuant to this Agreement in whole or in part, the Escrow Agent
shall return such Purchaser’s Purchase Price directly to the
Purchaser without interest or deduction there from. The proceeds of
the Escrow Account shall be distributed in accordance with Section
2.3.

 

Section
2.4 Additional Shares for 2016 Company
Investors.

 

(a) 2016 Company
Investors that invest a Purchase Price in the Offering in an amount
that is equal to one hundred percent (100%) of such 2016 Company
Investor’s Original Investment Amount shall (i) be issued
such number of Additional Shares as set forth next each
Purchaser’s name on Exhibit A attached hereto, and
(ii) have the exercise price of the 2016 Unit Warrants held by such
2016 Company Investor adjusted (the “Warrant Adjustment”) from
$3.00 per share to $2.00 per share (the “2016 Adjusted
Warrants”).

 

(b) 2016 Company
Investors that invest a Purchase Price in the Offering that is
equal to fifty percent (50%) of such 2016 Company Investor’s
Original Investment Amount shall be issued such number of
Additional Shares as set forth next each Purchaser’s name on
Exhibit A attached
hereto.

 

Section
2.5 Beneficial Ownership
Limitation. In the event that a Purchaser would own in
excess of 4.99% or 9.99% of the number of shares of the Common
Stock outstanding on a Closing Date (as defined herein) after
giving effect to the issuance of Securities pursuant to this
Agreement on such Closing Date, then, in lieu of purchasing shares
of Common Stock, such Purchaser may purchase the number of shares
of the Company’s Series A-2 Convertible Preferred Stock (the
“Series A-2
Preferred”) set forth on the signature page hereof
(the “Preferred
Shares”). The shares of Series A-2 Preferred shall
have the rights, privileges, preferences and conversion provisions
as set forth in the Certificate of Designation of the Series A-2
Preferred Stock (the “Certificate of
Designation”), which was filed with the Nevada
Secretary of State on October 5, 2016. The shares of Common Stock
issuable upon conversion of the Preferred Shares shall be referred
to herein as the “Conversion Shares.” In
the event a Purchaser acquires Preferred Shares pursuant hereto,
then this Agreement, including without limitation, the
representations and warranties contained herein, shall apply to the
purchase of the Preferred Shares and, accordingly, any reference to
“Shares”
“Additional
Shares,” or “Securities” shall also be
deemed to include the Preferred Shares and all Conversion
Shares.

 

 

 

-4-

 

 

ARTICLE III

 

Representations
and Warranties

 

Section
3.1 Representations and Warranties of the
Company. The Company hereby represents and warrants to the
Purchasers, as of the date hereof (except as set forth on the
Company Disclosure Schedule attached hereto with each numbered
Schedule corresponding to the section number herein) and as of each
Closing Date (except for the representations and warranties that
speak as of a specific date, which shall be made as of such date),
as follows:

 

(a) Organization, Good Standing and
Power. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State
of Nevada and has the requisite corporate power to own, lease and
operate its properties and assets and to conduct its business as it
is now being conducted. The Company is duly qualified to do
business and is in good standing in every jurisdiction in which the
nature of the business conducted or property owned by it makes such
qualification necessary except for any jurisdiction(s) (alone or in
the aggregate) in which the failure to be so qualified will not
have a Material Adverse Effect on the Company’s consolidated
financial condition.

 

(b) Corporate Power; Authority and
Enforcement. The Company has the requisite corporate power
and authority to enter into and perform this Agreement and the
other Transaction Documents, and to issue and sell the Securities
in accordance with the terms hereof. The execution, delivery and
performance of this Agreement and the other Transaction Documents
by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action, and no further
consent or authorization of the Company or its Board of Directors
or stockholders is required. Each of the Transaction Documents
constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

 

(c) Capitalization. The authorized
capital stock of the Company and the shares thereof currently
issued and outstanding as of the date hereof is set forth on
Schedule 3.1(c)
hereto. All of the issued and outstanding shares of the Common
Stock have been duly and validly authorized, are fully paid and
nonassessable. Except as contemplated by the Transaction Documents
or as set forth on Schedule 3.1(c)
hereto:

 

(i) no shares of Common
Stock are entitled to preemptive, conversion or other rights and
there are no outstanding options, warrants, scrip, rights to
subscribe to, call or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares
of capital stock of the Company;

 

(ii) there
are no contracts, commitments, understandings, or arrangements by
which the Company is or may become bound to issue additional shares
of capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the
Company;

 

(iii) the
Company is not a party to any agreement granting registration or
anti-dilution rights to any person with respect to any of its
equity or debt securities; and

 

(iv) the
Company is not a party to, and it has no knowledge of, any
agreement restricting the voting or transfer of any shares of the
capital stock of the Company.

 

The
offer and sale of all capital stock, convertible securities,
rights, warrants, or options of the Company issued prior to the
Closing complied in all material respects with all applicable
federal and state securities laws. The Company has furnished or
made available to the Purchasers true and correct copies of the
Company’s Articles of Incorporation, as amended and in effect
on the date hereof (the “Articles”), and the
Company’s Bylaws, as amended and in effect on the date hereof
(the “Bylaws”). Except as
restricted under applicable federal, state, local or foreign laws
and regulations, the Transaction Documents, or as set forth on
Schedule 3.1(c), no
written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement of the Company shall limit the
payment of dividends on the Company’s Common
Stock.

 

 

-5-

 

 

(d) Issuance of Securities, Etc.
The Securities to be issued at the Closing have been duly
authorized by all necessary corporate action and the Shares,
Additional Shares, Preferred Shares and Conversion Shares when paid
for or issued in accordance with the terms hereof, will be validly
issued and outstanding, fully paid and nonassessable and,
immediately after the Closing, the Purchasers will be the owners of
all of such securities and have good and valid title to all of such
securities, free and clear of all encumbrances, except as may be
imposed under federal and state securities laws. When any
Conversion Shares are issued in accordance with the terms of the
Series A-2 Preferred Stock, such Conversion Shares will be duly
authorized by all necessary corporate action and validly issued and
outstanding, fully paid and nonassessable, and the holders will be
entitled to all rights accorded to a holder of Common Stock and
will be the record and beneficial owners of all of such securities
and have good and valid title to all of such securities, free and
clear of all encumbrances.

 

(e) Subsidiaries. Schedule 3.1(e) hereto sets
forth each Subsidiary of the Company, showing the jurisdiction of
its incorporation or organization and showing the percentage of
ownership of each Subsidiary. Each Subsidiary has been duly
incorporated or otherwise organized and is validly existing and in
good standing in each of their respective jurisdictions of
incorporation or organization. Each Subsidiary is duly qualified to
do business and is in good standing in every jurisdiction in which
the nature of the business conducted or property owned by it makes
such qualification necessary except for any jurisdiction(s) (alone
or in the aggregate) in which the failure to be so qualified will
not have a Material Adverse Effect. There are no outstanding
preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any Subsidiary for
the purchase or acquisition of any shares of capital stock of any
Subsidiary or any other securities convertible into, exchangeable
for or evidencing the rights to subscribe for any shares of such
capital stock. Neither the Company nor any Subsidiary is subject to
any obligation (contingent or otherwise) to repurchase or otherwise
acquire or retire any shares of the capital stock of any Subsidiary
or any convertible securities, rights, warrants or options of the
type described in the preceding sentence. Except as filed as
exhibits to the Commission Documents (as defined below), neither
the Company nor any Subsidiary is party to, nor has any knowledge
of, any agreement restricting the voting or transfer of any shares
of the capital stock of any Subsidiary. For the purposes of this
Agreement.

 

(f) Commission Documents, Financial
Statements. For the two year period preceding the date
hereof, the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the
Commission pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 13(a) or 15(d) of
the Exchange Act (all of the foregoing including filings
incorporated by reference therein being referred to herein as the
“Commission
Documents”). The Company has not provided to the
Purchasers any material non-public information or other information
which, according to applicable law, rule or regulation, was
required to have been disclosed publicly by the Company but which
has not been so disclosed, other than (i) with respect to the
transactions contemplated by this Agreement, or (ii) pursuant to a
non-disclosure or confidentiality agreement signed by the
Purchasers. At the time of the respective filings, the Form
10-K’s and the Form 10-Q’s filed during the two year
period preceding the date hereof complied in all material respects
with the requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder and other
federal, state and local laws, rules and regulations applicable to
such documents. The financial statements of the Company included in
the Commission Documents (the “Financial Statements”)
complied as of their respective filing dates as to form in all
material respects with applicable accounting requirements and the
published rules and regulations of the Commission or other
applicable rules and regulations with respect thereto. The
Financial Statements have been prepared in accordance U.S. GAAP
during the periods involved (except (i) as may be otherwise
indicated in the Financial Statements or the notes thereto or (ii)
in the case of unaudited interim statements, to the extent they may
not include footnotes or may be condensed or summary statements),
and fairly present in all material respects the consolidated
financial position of the Company as of 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 year-end
audit adjustments).

 

(g) No Material Adverse Effect.
Since February 28, 2017, neither the Company nor any Subsidiary has
experienced or suffered any Material Adverse Effect.

 

(h) No Undisclosed Liabilities.
Other than as disclosed on Schedule 3.1(h) or set forth in
the Commission Documents, neither the Company nor the Subsidiary
has any liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute,
accrued, contingent or otherwise) other than those incurred in the
ordinary course of the Company’s business since February 28,
2017 and those which, individually or in the aggregate, do not have
a Material Adverse Effect.

 

 

 

-6-

 

 

(i) No Undisclosed Events or
Circumstances. No event or circumstance has occurred or
exists with respect to the Company or any Subsidiary or their
respective businesses, properties, operations or financial
condition, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed.

 

(j) Indebtedness. The Financial
Statements set forth all outstanding secured and unsecured
Indebtedness of the Company on a consolidated basis, or for which
the Company or any Subsidiary have commitments as of the date of
Financial Statements or any subsequent period that would require
disclosure. Neither the Company nor any Subsidiary is in default
with respect to any Indebtedness which, individually or in the
aggregate, would have a Material Adverse Effect.

 

(k) Title to Assets. Each of the
Company and its Subsidiaries has good and marketable title to (i)
all properties and assets purportedly owned or used by them as
reflected in the Financial Statements, (ii) all properties and
assets necessary for the conduct of their business as currently
conducted, and (iii) all of the real and personal property
reflected in the Financial Statements free and clear of any Lien.
All leases are valid and subsisting and in full force and
effect.

 

(l) Actions Pending. There is no
action, suit, claim, investigation, arbitration, alternate dispute
resolution proceeding or any other proceeding pending or, to the
knowledge of the Company, threatened against or involving the
Company or any Subsidiary (i) which questions the validity of this
Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby or any action taken or
to be taken pursuant hereto or thereto or (ii) involving any of
their respective properties or assets. To the knowledge of the
Company, there are no outstanding orders, judgments, injunctions,
awards or decrees of any court, arbitrator or governmental or
regulatory body against the Company or any Subsidiary or any of
their respective executive officers or directors in their
capacities as such.

 

(m) Compliance with Law. The
Company and each Subsidiary have all franchises, permits, licenses,
consents and other governmental or regulatory authorizations and
approvals necessary for the conduct of their respective business as
now being conducted by it unless the failure to possess such
franchises, permits, licenses, consents and other governmental or
regulatory authorizations and approvals, individually or in the
aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

(n) No Violation of Law. The
business of the Company and each Subsidiary is not being conducted
in violation of any federal, state, local or foreign governmental
laws, or rules, regulations and ordinances of any of any
governmental entity, except for possible violations which
singularly or in the aggregate could not reasonably be expected to
have a Material Adverse Effect. The Company is not required under
federal, state, local or foreign law, rule or regulation to obtain
any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it
to execute, deliver or perform any of its obligations under the
Transaction Documents, or issue and sell the Securities in
accordance with the terms hereof or thereof (other than (x) any
consent, authorization or order that has been obtained as of the
date hereof, (y) any filing or registration that has been made as
of the date hereof or (z) any filings which may be required to be
made by the Company with the Commission or state securities
administrators subsequent to the Closing).

 

(o) No Conflicts. The execution,
delivery and performance of the Transaction Documents by the
Company and the consummation by the Company of the transactions
contemplated herein and therein do not and will not (i) violate any
provision of the Articles or Bylaws, (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, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the
Company is a party or by which it or its properties or assets are
bound, (iii) create or impose a Lien or (iv) result in a violation
of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or any of its
subsidiaries or by which any Property or asset of the Company or
any of its subsidiaries are bound or affected, provided, however, that, excluded from
the foregoing in all cases are such conflicts, defaults,
terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a
Material Adverse Effect.

 

 

 

-7-

 

 

(p) Taxes. The Company and each
Subsidiary, to the extent its applicable, has accurately prepared
and filed all federal, state and other tax returns required by law
to be filed by it, has paid or made provisions for the payment of
all taxes shown to be due and all additional assessments, and
adequate provisions have been and are reflected in the consolidated
financial statements of the Company for all current taxes and other
charges to which the Company or any Subsidiary, if any, is subject
and which are not currently due and payable. None of the federal
income tax returns of the Company have been audited by the Internal
Revenue Service. The Company has no knowledge of any additional
assessments, adjustments or contingent tax liability (whether
federal, state or foreign) of any nature whatsoever, whether
pending or threatened against the Company or any Subsidiary for any
period, nor of any basis for any such assessment, adjustment or
contingency.

 

(q) Certain Fees. Except as set
forth on Schedule
3.1(q) hereto, no brokers fees, finders’ fees or
financial advisory fees or commissions will be payable by the
Company with respect to the transactions contemplated by this
Agreement and the other Transaction Documents.

 

(r) Intellectual Property. Each of
the Company and its Subsidiaries owns or has the lawful right to
use all Intellectual Property Rights. The Company has not received
a written notice that any of the Intellectual Property Rights used
by the Company violates or infringes upon the rights of any person.
There is no pending or, to the Company’s knowledge,
threatened action, suit, proceeding or claim by any person that the
Company’s business as now conducted infringes or otherwise
violates any patent, trademark, copyright, trade secret or other
proprietary rights of another. To the Company’s knowledge,
there is no existing infringement by another person of any of the
Intellectual Property Rights that would have or would reasonably be
expected to have a Material Adverse Effect. The Company has taken
reasonable security measures to protect the secrecy,
confidentiality and value of all of their Intellectual Property
Rights, except where failure to do so could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(s) Books and Records; Internal Accounting
Controls. The books and records of the Company and each
Subsidiary accurately reflect in all material respects the
information relating to the business of the Company and the
Subsidiaries. Except as disclosed on Schedule 3.1(s), the Company
and each Subsidiary maintains a system of “internal control
over financial reporting” (as defined in Rule 13a-15(f)
and 15d-15(f) of the Exchange Act) 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 U.S. GAAP
and to maintain asset and liability accountability;
(iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and
(iv) the recorded accountability for assets and liabilities is
compared with the existing assets and liabilities at reasonable
intervals and appropriate action is taken with respect to any
differences.

 

(t) Material Agreements. Any and
all written or oral contracts, instruments, agreements,
commitments, obligations, plans or arrangements, the Company and
each Subsidiary is a party to, that a copy of which would be
required to be filed with the Commission as an exhibit to a
registration statement on Form S-1 (collectively, the
“Material
Agreements”) if the Company or any Subsidiary were
registering securities under the Securities Act has previously been
publicly filed with the Commission in the Commission Documents.
Each of the Company and the Subsidiaries has in all material
respects performed all the obligations required to be performed by
them to date under the foregoing agreements, have received no
notice of default and are not in default under any Material
Agreement now in effect the result of which would cause a Material
Adverse Effect.

 

(u) Transactions with Affiliates.
Except as set forth in the Financial Statements or in the
Commission Documents, there are no loans, leases, agreements,
contracts, royalty agreements, management contracts or arrangements
or other continuing transactions between (a) the Company or any
Subsidiary on the one hand, and (b) on the other hand, any officer,
employee, consultant or director of the Company, or any of its
Subsidiaries, or any person owning any capital stock of the Company
or any Subsidiary or any member of the immediate family of such
officer, employee, consultant, director or stockholder or any
corporation or other entity controlled by such officer, employee,
consultant, director or stockholder, or a member of the immediate
family of such officer, employee, consultant, director or
stockholder.

 

 

 

-8-

 

 

(v) Securities Act of 1933.
Assuming the accuracy of the representations of the Purchasers set
forth in Section 3.2 hereof, the Company has complied with all
applicable federal and state securities laws in connection with the
offer, issuance and sale of the Securities hereunder. Neither the
Company nor anyone acting on its behalf, directly or indirectly,
has or will sell, offer to sell or solicit offers to buy any of the
Securities or similar securities to, or solicit offers with respect
thereto from, or enter into any preliminary conversations or
negotiations relating thereto with, any person, or has taken or
will take any action so as to bring the issuance and sale of any of
the Securities in violation of the registration provisions of the
Securities Act and applicable state securities laws, and neither
the Company nor any of its affiliates, nor any person acting on its
or their behalf, has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D under the
Securities Act) in connection with the offer or sale of any of the
shares of Common Stock.

 

(w) Governmental Approvals. Except
for the filing of any notice prior or subsequent to the Closing
Date that may be required under applicable state and/or federal
securities laws (which if required, shall be filed on a timely
basis), including the filing of a Form D, no authorization,
consent, approval, license, exemption of, filing or registration
with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will
be necessary for, or in connection with, the execution or delivery
of the Securities or for the performance by the Company of its
obligations under the Transaction Documents.

 

(x) Employees. Except as disclosed
on Schedule 3.1(x),
neither the Company nor any Subsidiary has any collective
bargaining arrangements covering any of its employees. Except as
disclosed in the Commission Documents, Schedule 3.1(x) sets forth a
list of the employment contracts, agreements regarding proprietary
information, non-competition agreements, non-solicitation
agreements, confidentiality agreement, or any other similar
contract or restrictive covenant, relating to the right of any
officer, employee or consultant to be employed or engaged by the
Company. Since February 28, 2017, no officer, consultant or key
employee of the Company or any Subsidiary whose termination, either
individually or in the aggregate, would have a Material Adverse
Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or
engagement with the Company or any Subsidiary.

 

(y) Absence of Certain
Developments. Except as disclosed on Schedule 3.1(y), since February
28, 2017, neither the Company nor the Subsidiaries
have:

 

(i) issued any stock,
bonds or other corporate securities or any rights, options or
warrants with respect thereto;

 

(ii) borrowed
any amount or incurred or become subject to any liabilities
(absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and
amount to the current liabilities incurred in the ordinary course
of business during the comparable portion of its prior fiscal year,
as adjusted to reflect the current nature and volume of the
Company’s or such Subsidiary’s business;

 

(iii) discharged
or satisfied any Lien or paid any obligation or liability (absolute
or contingent), other than current liabilities paid in the ordinary
course of business;

 

(iv) declared
or made any payment or distribution of cash or other Property to
stockholders with respect to its stock, or purchased or redeemed,
or made any agreements so to purchase or redeem, any shares of its
capital stock;

 

(v) sold, assigned or
transferred any other tangible assets, or canceled any debts or
claims, except in the ordinary course of business;

 

(vi) sold,
assigned or transferred any patent rights, trademarks, trade names,
copyrights, trade secrets or other intangible assets or
Intellectual Property Rights, or disclosed any proprietary
confidential information to any person except to customers in the
ordinary course of business or to the Purchasers or their
representatives;

 

 

 

-9-

 

 

(vii) suffered
any substantial losses or waived any rights of material value,
whether or not in the ordinary course of business, or suffered the
loss of any material amount of prospective business;

 

(viii) made
any changes in employee compensation except in the ordinary course
of business and consistent with past practices;

 

(ix) made
capital expenditures or commitments therefor that aggregate in
excess of $100,000;

 

(x) entered into any
other transaction other than in the ordinary course of business, or
entered into any other material transaction, whether or not in the
ordinary course of business;

 

(xi) made
charitable contributions or pledges in excess of
$10,000;

 

(xii) suffered
any material damage, destruction or casualty loss, whether or not
covered by insurance;

 

(xiii) experienced
any material problems with labor or management in connection with
the terms and conditions of their employment;

 

(xiv) effected
any two or more events of the foregoing kind which in the aggregate
would be material to the Company or its subsidiaries;
or

 

(xv) entered
into an agreement, written or otherwise, to take any of the
foregoing actions.

 

(z) Investment Company Act. The
Company is not, and is not an affiliate of, and immediately after
receipt of payment for the Securities, will not be or be an
affiliate of, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended. The
Company shall conduct its business in a manner so that it will not
become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(aa) No
Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales of any security or
solicited any offers to buy any security under circumstances that
would cause the offering and/or sale of the Securities pursuant to
this Agreement to be integrated with prior offerings by the Company
for purposes of the Securities Act which would prevent the Company
from selling the Securities pursuant to Rule 506 under the
Securities Act, nor will the Company or any of its affiliates take
any action or steps that would cause the Offering and/or sale of
the Securities to be integrated with other offerings.

 

(bb) Sarbanes-Oxley
Act. The Company is in compliance in all material respects
with the applicable provisions of the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley
Act”), and the rules and regulations promulgated
thereunder, that are effective and for which compliance by the
Company is required as of the date hereof. The Company has
established disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) for
the Company and designed such disclosure controls and procedures to
ensure that information required to be disclosed by the Company in
the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms. The
Company’s certifying officers have evaluated the
effectiveness of the Company’s disclosure controls and
procedures as of the end of the period covered by the
Company’s most recently filed periodic report under the
Exchange Act (such date, the “Evaluation Date”). The
Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about
the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the
Evaluation Date, there have been no changes in the Company’s
internal control over financial reporting (as such term is defined
in the Exchange Act) that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control
over financial reporting.

 

 

 

-10-

 

 

(cc) Shell
Company Status. The Company is not currently an issuer
identified in Securities Act Rule 144(i)(1).

 

(dd) Listing
and Maintenance Requirements. The Common Stock is registered
pursuant to Section 12(g) of the Exchange Act, and the Company has
taken no action designed to, or which to its knowledge is likely to
have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has the Company received any
notification that the Commission is contemplating terminating such
registration. The Company has not, in the 12 months preceding the
date hereof, received notice from the OTCQB to the effect that the
Company is not in compliance with the listing or maintenance
requirements of the OTCQB. The Company is, and has no reason to
believe that it will not in the foreseeable future continue to be,
in compliance with all such listing and maintenance
requirements

 

(ee) Use
of Proceeds. Except as disclosed on Schedule 3.1(ee), the Company
hereby covenants to use the net proceeds received from the Offering
for (i) research and development activities primarily related to
the Company’s therapeutic and companion diagnostic
technologies, (ii) working capital and other general corporate
purposes, and (iii) the repayment of outstanding convertible
indebtedness with an aggregate principal amount of $1 million plus
accrued and unpaid interest thereon.

 

Section
3.2 Representations and Warranties of Each
of the Purchasers. Each Purchaser, severally and not jointly
with the other Purchasers, hereby makes the following
representations and warranties to the Company as of the date
hereof, with respect solely to itself and not with respect to any
other Purchaser:

 

(a) Organization and Good Standing of the
Purchasers. If the Purchaser is an entity, such Purchaser is
a corporation, partnership or limited liability company duly
incorporated or organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or
organization.

 

(b) Authorization and Power. Such
Purchaser has the requisite power and authority to enter into and
perform this Agreement and each of the other Transaction Documents
to which such Purchaser is a party and to purchase the Securities,
being sold to it hereunder. The execution, delivery and performance
of this Agreement and each of the other Transaction Documents to
which such Purchaser is a party by such Purchaser and the
consummation by it of the transactions contemplated hereby and
thereby have been duly authorized by all necessary corporate,
partnership or limited liability company action, and no further
consent or authorization of such Purchaser or its Board of
Directors, stockholders, partners, members, or managers, as the
case may be, is required. This Agreement and each of the other
Transaction Documents to which such Purchaser is a party has been
duly authorized, executed and delivered by such Purchaser and
constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of such Purchaser enforceable against
such Purchaser in accordance with the terms hereof.

 

(c) No Conflicts. The execution,
delivery and performance of this Agreement and each of the other
Transaction Documents to which such Purchaser is a party and the
consummation by such Purchaser of the transactions contemplated
hereby and thereby or relating hereto do not and will not (i)
result in a violation of such Purchaser’s charter documents,
bylaws, operating agreement, partnership agreement or other
organizational documents 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 or obligation to which such
Purchaser is a party or by which its properties or assets are
bound, or result in a violation of any law, rule, or regulation, or
any order, judgment or decree of any court or governmental agency
applicable to such Purchaser or its properties (except for such
conflicts, defaults and violations as would not, individually or in
the aggregate, have a material adverse effect on such Purchaser).
Such Purchaser is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform
any of its obligations under this Agreement or any other
Transaction Document to which such Purchaser is a party or to
purchase the Securities in accordance with the terms hereof,
provided, that for purposes of the representation made in this
sentence, such Purchaser is assuming and relying upon the accuracy
of the relevant representations and agreements of the Company
herein.

 

 

 

-11-

 

 

(d) Status of Purchasers. Such
Purchaser is an “accredited investor” as defined in
Regulation D under the Securities Act and as set forth on the
questionnaire (the “Confidential Private Purchaser
Questionnaire”) attached hereto as Exhibit D and made part hereof.
Such Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act and such Purchaser is not a
broker-dealer, nor an affiliate of a broker-dealer, unless
indicated on such Confidential Private Purchaser
Questionnaire.

 

(e) Acquisition for Investment.
Such Purchaser is acquiring the Securities solely for its own
account for the purpose of investment and not with a view to or for
sale in connection with a distribution. Such Purchaser does not
have a present intention to sell the Securities, nor a present
arrangement (whether or not legally binding) or intention to effect
any distribution of the Securities to or through any person or
entity; provided,
however, that by
making the representations herein, such Purchaser does not agree to
hold the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in
accordance with federal and state securities laws applicable to
such disposition. Each Purchaser acknowledges that it is able to
bear the financial risks associated with an investment in the
Securities and that it has been given full access to such records
of the Company and to the officers of the Company and received such
information as it has deemed necessary or appropriate to conduct
its due diligence investigation and has sufficient knowledge and
experience in investing in companies similar to the Company in
terms of the Company’s stage of development so as to be able
to evaluate the risks and merits of its investment in the
Company.

 

(f) Opportunities for Additional
Information. Such Purchaser acknowledges that such Purchaser
has had the opportunity to ask questions of and receive answers
from, or obtain additional information from, the executive officers
of the Company concerning the financial and other affairs of the
Company.

 

(g) No General Solicitation. Such
Purchaser acknowledges that the Securities were not offered to such
Purchaser by means of any form of general or public solicitation or
general advertising, or publicly disseminated advertisements or
sales literature, including (i) any advertisement, article, notice
or other communication published in any newspaper, magazine, or
similar media, or broadcast over television or radio, or (ii) any
seminar or meeting to which such Purchaser was invited by any of
the foregoing means of communications.

 

(h) Rule 144. Such Purchaser
understands that the Shares, Additional Shares, Preferred Shares
and Conversion Shares must be held indefinitely unless such Shares,
Additional Shares, Preferred Shares and Conversion Shares are
registered under the Securities Act or an exemption from
registration is available. Such Purchaser acknowledges that such
Purchaser is familiar with Rule 144 and that such person has been
advised that Rule 144 permits resales only under certain
circumstances. Such Purchaser understands that to the extent that
Rule 144 is not available, such Purchaser will be unable to sell
any Shares, Additional Shares, Preferred Shares and Conversion
Shares without either registration under the Securities Act or the
existence of another exemption from such registration
requirement.

 

(i) General. Such Purchaser
understands that the Securities are being offered and sold in
reliance on a transactional exemption from the registration
requirements of federal and state securities laws and the Company
is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of such
Purchaser set forth herein in order to determine the applicability
of such exemptions and the suitability of such Purchaser to acquire
the Securities.

 

(j) Independent Investment. Except
as may be disclosed in any filings with the Commission by the
Purchasers under Section 13 and/or Section 16 of the Exchange Act,
no Purchaser has agreed to act with any other Purchaser for the
purpose of acquiring, holding, voting or disposing of the Shares
purchased hereunder for purposes of Section 13(d) under the
Exchange Act, and each Purchaser is acting independently with
respect to its investment in the Securities.

 

(k) Brokers. Other than as may be
set forth on Schedule
3.1(ee) hereto, no Purchaser has any knowledge of any
brokerage or finder’s fees or commissions that are or will be
payable by the Company to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or
other person or entity with respect to the transactions
contemplated by this Agreement.

 

 

 

-12-

 

 

(l) No Short Sales. The Purchaser
has not directly or indirectly, nor has any Person acting on behalf
of or pursuant to any understanding with such Purchaser, executed
any Short Sales (as defined below), 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 Agent representing the Company setting forth the
material terms of the transactions contemplated by this Agreement
and ending immediately following the public dissemination of the
Press Release (as defined below). 

 

(m) Company’s Business. The
Purchaser understands and acknowledges that the precise nature of
the Company’s operations, use of proceeds, capital needs, and
other factors inherent in the Company’s business can be
expected to change from time to time.

 

(n) Confidential Information. Such
Purchaser agrees that such Purchaser and its employees, agents and
representatives will keep confidential and will not disclose,
divulge or use (other than for purposes of monitoring its
investment in the Company) any confidential information which such
Purchaser may obtain from the Company pursuant to financial
statements, reports and other materials submitted by the Company to
such Purchaser pursuant to this Agreement, unless such information
is known to the public through no fault of such Purchaser or his or
its employees or representatives; provided, however, that a
Purchaser may disclose such information (i) to its attorneys,
accountants and other professionals in connection with their
representation of such Purchaser in connection with such
Purchaser’s investment in the Company, (ii) to any
prospective permitted transferee of the Preferred Shares, so long
as the prospective transferee agrees to be bound by the provisions
of this Section 3.2(n), or (iii) to any general partner or
affiliate of such Purchaser.

 

ARTICLE IV

 

Covenants

 

The
Company covenants with each of the Purchasers as follows, which
covenants are for the benefit of the Purchasers and their permitted
assignees (as defined herein).

 

Section
4.1 Securities Compliance. The
Company shall notify the Commission in accordance with its rules
and regulations, of the transactions contemplated by any of the
Transaction Documents, including filing a Form D with respect to
the Securities as required under Regulation D and applicable
“blue sky” laws, and shall take all other necessary
action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Purchasers or subsequent
holders.

 

Section
4.2 Compliance with Laws. The
Company shall comply, and cause each Subsidiary to comply in all
respects, with all applicable laws, rules, regulations and orders,
except for such non-compliance which singularly or in the aggregate
could not reasonably be expected to have a Material Adverse
Effect.

 

Section
4.3 Keeping of Records and Books of
Account. The Company shall keep and cause each Subsidiary to
keep adequate records and books of account, in which complete
entries will be made in accordance with U.S. GAAP consistently
applied, reflecting all financial transactions of the Company and
each Subsidiary.

 

Section
4.4 Reservation of Shares. So long
as any of the Preferred Shares remain outstanding, the Company
shall take all action necessary to at all times have authorized,
and reserved for the purpose of issuance, a sufficient number of
shares of Common Stock needed to provide for the issuance of the
Conversion Shares.

 

Section
4.5 Disclosure of Transaction. The
Company shall issue a press release describing the material terms
of the transactions contemplated hereby (the “Press Release”) as soon
as practicable after the Initial Closing of the Offering. The
Company shall also file with the Commission, a Current Report on
Form 8-K describing the material terms of the transactions
contemplated hereby (and attaching as exhibits thereto this
Agreement and other Transaction Documents) within four (4) Business
Days following the Initial Closing Date of the
Offering.

 

 

 

-13-

 

 

Section
4.6 Disclosure of Material
Information. The Company and the Subsidiaries covenant and
agree that neither it nor any other person acting on its or their
behalf has provided or, from and after the filing of the Press
Release, will provide any Purchaser or its agents or counsel with
any information that the Company believes constitutes material
non-public information (other than with respect to the transactions
contemplated by this Agreement), unless prior thereto such
Purchaser shall have executed a specific written agreement
regarding the confidentiality and use of such information. The
Company understands and confirms that each Purchaser shall be
relying on the foregoing covenants in effecting transactions in
securities of the Company. Unless otherwise agreed to by the
applicable parties, at the time of the filing of the Press Release,
no Purchaser shall be in possession of any material, nonpublic
information received from the Company, any of its subsidiaries or
any of its respective officers, directors, employees or agents,
that is not disclosed in the Press Release. The Company shall not
disclose the identity of any Purchaser in any filing with the
Commission except as required by the rules and regulations of the
Commission thereunder.

 

Section
4.7 Pledge of Securities. The
Company acknowledges and agrees that the Securities may be pledged
by a Purchaser in connection with a bona fide margin agreement or other
loan or financing arrangement that is secured by the Securities.
The pledge of the Securities shall not be deemed to be a transfer,
sale or assignment of the Securities hereunder, and no Purchaser
effecting a pledge of the Securities shall be required to provide
the Company with any notice thereof or otherwise make any delivery
to the Company pursuant to this Agreement or any other Transaction
Document; provided,
that a Purchaser and its pledgee shall be required to comply with
the provisions of Article VI hereof in order to effect a sale,
transfer or assignment of Securities to such pledgee. At a
Purchaser’s expense, the Company hereby agrees to execute and
deliver such documentation as a pledgee of the Securities may
reasonably request in connection with a pledge of the Securities to
such pledgee by a Purchaser, in accordance with applicable laws
relating to the transfer of the securities.

 

Section
4.8 No Integrated Offerings. The
Company shall not make any offers or sales of any security (other
than the Securities being offered or sold hereunder) under
circumstances that would require registration of the Securities
being offered or sold hereunder under the Securities
Act.

 

Section
4.9 SEC Reports. If the Common
Stock is not registered under Section 12(b) or 12(g) of the
Exchange Act on the date hereof, the Company agrees to cause the
Common Stock to be registered under Section 12(g) of the Exchange
Act on or before the sixtieth (60th) calendar day following the
date hereof. Until the time that no Purchaser owns Securities, the
Company covenants to maintain the registration of the Common Stock
under Section 12(b) or 12(g) of the Exchange Act and to timely file
(or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act even if
the Company is not then subject to the reporting requirements of
the Exchange Act.

 

ARTICLE V

 

CONDITIONS

 

Section
5.1 Conditions Precedent to the Obligation
of the Company to Sell the Securities. The obligation
hereunder of the Company to issue and sell the Securities to the
Purchasers is subject to the satisfaction or waiver, at or before
each Closing, of each of the conditions set forth below. These
conditions are for the Company’s sole benefit and may be
waived by the Company at any time in its sole
discretion.

 

(a) Accuracy of Each Purchaser’s
Representations and Warranties. Each of the representations
and warranties of each Purchaser in this Agreement and the other
Transaction Documents that are qualified by materiality or by
reference to any Material Adverse Effect shall be true and correct
in all respects, and all other representations and warranties shall
be true and correct in all material respects, as of the date when
made and as of the Closing Date as though made at that time, except
for representations and warranties that are expressly made as of a
particular date, which shall be true and correct in all respects as
of such date.

 

(b) Performance by the Purchasers.
Each Purchaser shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by such
Purchaser at or prior to the Closing.

 

 

 

-14-

 

 

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

 

(d) Delivery of Purchase Price. The
Purchase Price for the Shares being paid for in cash shall have
been delivered to the Escrow Account in accordance with the
instructions provided herein.

 

(e) Delivery of Transaction
Documents. The Transaction Documents to which the Purchasers
are parties shall have been duly executed and delivered by the
Purchasers to the Company.

 

Section
5.2 Conditions Precedent to the Obligation
of the Purchasers to Purchase the Shares. The obligation
hereunder of each Purchaser to acquire and pay for the Shares is
subject to the satisfaction or waiver, at or before each Closing,
of each of the conditions set forth below. These conditions are for
each Purchaser’s sole benefit and may be waived by such
Purchaser at any time in its sole discretion.

 

(a) Accuracy of the Company’s
Representations and Warranties. Each of the representations
and warranties of the Company in this Agreement and the other
Transaction Documents that are qualified by materiality or by
reference to any Material Adverse Effect shall be true and correct
in all respects, and all other representations and warranties shall
be true and correct in all material respects, as of the date when
made and as of the Closing Date as though made at that time, except
for representations and warranties that are expressly made as of a
particular date, which shall be true and correct in all respects as
of such date.

 

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

 

(c) Necessary Consents. The Company
shall have received all necessary consents to perform the
transaction contemplated by this Agreement and the Transaction
Documents, including the written consent from the holders of a
majority of the outstanding shares of the Company’s Series B
Preferred Stock in connection with the Warrant
Adjustment.

 

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

 

(e) No Proceedings or Litigation.
No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been
threatened, against the Company or any Subsidiary, or any of the
officers, directors or affiliates of the Company or any Subsidiary
seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection
with such transactions.

 

(f) Certificates. Promptly
following each Closing, the Company shall deliver to the Purchasers
the certificates for the Shares, and as the case may be, the
Additional Shares, Preferred Shares and evidence of the Warrant
Adjustment for such Purchasers 2016 Adjusted Warrants being
acquired by such Purchaser at the Closing to such address set forth
next to each Purchaser’s name on Exhibit A attached hereto with
respect to such Closing.

 

(g) Resolutions. The Board of
Directors of the Company shall have adopted resolutions consistent
with Section 3.1(b) hereof in a form reasonably acceptable to such
Purchaser.

 

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

 

 

 

-15-

 

 

(i) Officer’s Certificate.
The Company shall have delivered to the Purchasers a certificate of
an executive officer of the Company, dated as of each Closing Date,
confirming the accuracy of the Company’s representations,
warranties and covenants as of each Closing Date and confirming the
compliance by the Company with the conditions precedent set forth
in this Section 5.2 as of each Closing Date.

 

(j) Delivery of Transaction
Documents. The Transaction Documents to which the Company is
a party shall have been duly executed and delivered by the Company
to the Purchasers.

 

(k) Legal Opinions. The Purchasers
shall have received opinions, each dated as of Closing Date, from
Loeb & Loeb, LLP and Sherman & Howard LLC, in form and
substance satisfactory to the Purchasers.

 

 

ARTICLE VI

 

Stock
Certificate Legend

 

Section
6.1 Legend.

 

(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 or in connection with a
pledge as contemplated in Section 4.7, 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. As a condition of transfer,
any such transferee shall agree in writing to be bound by the terms
of this Agreement and shall have the rights and obligations of a
Purchaser under this Agreement.

 

(b) Each certificate
representing the Securities shall be stamped or otherwise imprinted
with a legend substantially in the following form (in addition to
any legend required by applicable state securities or “blue
sky” laws):

 

“THIS
SECURITY 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”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD 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
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION
THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH
SECURITIES.”

 

(c) The Company
acknowledges and agrees that a Purchaser may from time to time
pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the
Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act
and who agrees to be bound by the provisions of this Agreement and,
if required under the terms of such arrangement, such Purchaser may
transfer pledged or secured Securities to the pledgees or secured
parties. Such a pledge or transfer would not be subject to approval
of the Company and no legal opinion of legal counsel of the
pledgee, secured party or pledgor shall be required in connection
therewith. Further, no notice shall be required of such pledge. At
the appropriate Purchaser’s expense, the Company will execute
and deliver such reasonable documentation as a pledgee or secured
party of Securities may reasonably request in connection with a
pledge or transfer of the Securities, including, if the Securities
are subject to registration, the preparation and filing of any
required prospectus supplement under Rule 424(b)(3) under the
Securities Act or other applicable provision of the Securities Act
to appropriately amend the list of selling stockholders
thereunder.

 

 

 

-16-

 

 

(d) So long as the
Company has received written representations from such Purchaser as
reasonably requested by the Company in connection with such legend
removal (which shall not include representations with respect to
the sale of any securities), certificates evidencing the Shares,
Additional Shares and Conversion Shares shall not contain any
legend (including the legend set forth in Section 6.1(b) hereof),
(i) while a registration statement covering the resale of such
security is effective under the Securities Act, (ii) following any
sale of such Shares, Additional Shares and Conversion Shares
pursuant to Rule 144, (iii) if such Shares, Additional Shares and
Conversion Shares are eligible for sale under Rule 144, or (iv) if
such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission). The Company
shall cause its counsel to issue a legal opinion to its transfer
agent promptly after the effective date of any registration
statement filed in connection with this Agreement if required by
its transfer agent to effect the removal of the legend hereunder,
subject to the Company receiving written representations from such
Purchaser as reasonably requested by the Company in connection with
such legend removal (which shall not include representations with
respect to the sale of any securities). If such Shares, Additional
Shares and Conversion Shares may be sold under Rule 144 and the
Company is then in compliance with the current public information
required under Rule 144, or if the Shares, Additional Shares and
Conversion Shares may be sold under Rule 144 without the
requirement for the Company to be in compliance with the current
public information required under Rule 144 as to such Shares,
Additional Shares and Conversion Shares or if such legend is not
otherwise required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued
by the staff of the Commission) then such Shares, Additional Shares
and Conversion Shares shall be issued free of all legends, subject
to the Company receiving written representations from such
Purchaser as reasonably requested by the Company in connection with
such legend removal (which shall not include representations with
respect to the sale of any securities). The Company agrees that
following the effective date of any registration statement filed in
connection with this Agreement or at such time as such legend is no
longer required under this Section 6.1(d), it will, no later than
three Trading Days following the delivery by a Purchaser to the
Company or its transfer agent of a certificate representing Shares,
Additional Shares and Conversion Shares, as the case may be, issued
with a restrictive legend (such third Trading Day, the
“Legend Removal
Date”), deliver or cause to be delivered to such
Purchaser a certificate representing such shares that is free from
all restrictive and other legends, subject to the Company receiving
written representations from such Purchaser as reasonably requested
by the Company in connection with such legend removal (which shall
not include representations with respect to the sale of any
securities). 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 6.1(d).
Certificates for Securities subject to legend removal hereunder
shall be transmitted by the transfer agent to the Purchaser by
crediting the account of the Purchaser’s prime broker with
the Depository Trust Company System as directed by such
Purchaser.

 

(e) In addition to such
Purchaser’s other available remedies, subject to the Company
receiving written representations from such Purchaser as reasonably
requested by the Company in connection with such legend removal
(which shall not include representations with respect to the sale
of any securities), the Company shall pay to a Purchaser, in cash,
if the Company fails to (i) issue and deliver (or cause to be
delivered) to a Purchaser by the Legend Removal Date a certificate
representing the Securities so delivered to the Company by such
Purchaser that is free from all restrictive and other legends or
(ii) if after the Legend Removal Date such Purchaser purchases (in
an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by such Purchaser of all or any
portion of the number of shares of Common Stock, or a sale of a
number of shares of Common Stock equal to all or any portion of the
number of shares of Common Stock that such Purchaser anticipated
receiving from the Company without any restrictive legend, then, an
amount equal to the excess of such Purchaser’s total purchase
price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased
(including brokerage commissions and other out-of-pocket expenses,
if any) (the “Buy-In
Price”) over the product of (A) such number of
Underlying Shares that the Company was required to deliver to such
Purchaser by the Legend Removal Date multiplied by (B) the lowest
closing sale price of the Common Stock on any Trading Day during
the period commencing on the date of the delivery by such Purchaser
to the Company of the applicable Underlying Shares (as the case may
be) and ending on the date of such delivery and payment under this
clause (ii).

 

 

 

-17-

 

 

(f) Each Purchaser,
severally and not jointly with the other Purchasers, 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 6.1(f) is predicated upon
the Company’s reliance upon this understanding and is subject
to the Company receiving written representations from such
Purchaser as reasonably requested by the Company in connection with
such legend removal (which shall not include representations with
respect to the sale of any securities).

 

(g) At any time during
the period commencing from the six (6) month anniversary of the
date of this Agreement, if the Company shall fail for any reason to
satisfy the current public information requirements under Rule
144(c) (a “Public Information Failure”), then, in
addition to each Purchaser’s other available remedies, the
Company shall pay to each Purchaser, in cash, as partial liquidated
damages and not as a penalty, by reason of any such delay in or
reduction of its ability to sell the Securities, an amount in cash
equal to one quarter of one percent (0.25%) of the aggregate
Purchase Price of each such Purchaser’s Securities on the day
of a Public Information Failure and such amount on each day
thereafter until the date such Public Information Failure is cured.
The payments to which a Purchaser shall be entitled pursuant to
this Section 6.1(f) are referred to herein as “Public
Information Failure Payments.” For purposes hereof, a
“Public Information Failure” shall not be deemed to
have occurred or be continuing during any Rule 12b-25 extension
period for any annual, quarterly or other report required to be
filed by the Company with the Commission unless a Purchaser is not
permitted to sell Common Stock pursuant to Rule 144, Company
Counsel will not provide any required Rule 144 legal opinions, or
an effective registration statement is not available during such
extension period. Public Information Failure Payments shall be paid
on the earlier of (i) the last day of the calendar month during
which such Public Information Failure Payments are incurred, and
(ii) the third (3rd) Business Day after the event or failure giving
rise to the Public Information Failure Payments is cured. In the
event the Company fails to make Public Information Failure Payments
in a timely manner, such Public Information Failure Payments shall
bear interest at the rate of one half of one percent (0.50%) per
month (prorated for partial months) until paid in full. Nothing
herein shall limit such Purchaser’s right to pursue actual
damages for the Public Information Failure, and such Purchaser
shall have the right to pursue all remedies available to it at law
or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

 

ARTICLE VII

 

Indemnification

 

Section
7.1 General Indemnity. The Company
agrees to indemnify and hold harmless the Purchasers (and their
respective directors, officers, managers, partners, members,
shareholders, affiliates, agents, successors and assigns) from and
against any and all losses, liabilities, deficiencies, costs,
damages and expenses (including, without limitation, reasonable
attorneys’ fees, charges and disbursements) incurred by the
Purchasers as a result of any breach of the representations,
warranties or covenants made by the Company herein. Each Purchaser
severally but not jointly agrees to indemnify and hold harmless the
Company and its directors, officers, affiliates, agents, successors
and assigns from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without
limitation, reasonable attorneys’ fees, charges and
disbursements) incurred by the Company as a result of any breach of
the representations, warranties or covenants made by such Purchaser
herein. The maximum aggregate liability of each Purchaser pursuant
to its indemnification obligations under this Article VII shall not
exceed the portion of the Purchase Price paid by such Purchaser
hereunder. In no event shall any Indemnified Party (as defined
below) be entitled to recover consequential or punitive damages
resulting from a breach or violation of this
Agreement.

 

 

 

-18-

 

 

Section
7.2 Indemnification Procedure. Any
party entitled to indemnification under this Article VII (an
“Indemnified
Party”) will give written notice to the indemnifying
party of any matters giving rise to a claim for indemnification;
provided, that the
failure of any party entitled to indemnification hereunder to give
notice as provided herein shall not relieve the indemnifying party
of its obligations under this Article VII except to the extent that
the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought
against an Indemnified Party in respect of which indemnification is
sought hereunder, the indemnifying party shall be entitled to
participate in and, unless in the reasonable judgment of the
Indemnified Party a conflict of interest between it and the
indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel
reasonably satisfactory to the Indemnified Party. In the event that
the indemnifying party advises an Indemnified Party that it will
contest such a claim for indemnification hereunder, or fails,
within thirty (30) days of receipt of any indemnification notice to
notify, in writing, such person of its election to defend, settle
or compromise, at its sole cost and expense, any action, proceeding
or claim (or discontinues its defense at any time after it
commences such defense), then the Indemnified Party may, at its
option, defend, settle or otherwise compromise or pay such action
or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any
such claim, proceeding or action, the Indemnified Party’s
costs and expenses arising out of the defense, settlement or
compromise of any such action, claim or proceeding shall be losses
subject to indemnification hereunder. The Indemnified Party shall
cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party, which
relates to such action or claim. The indemnifying party shall keep
the Indemnified Party fully apprised at all times as to the status
of the defense or any settlement negotiations with respect thereto.
If the indemnifying party elects to defend any such action or
claim, then the Indemnified Party shall be entitled to participate
in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any
settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the indemnifying
party shall be liable for any settlement if the indemnifying party
is advised of the settlement but fails to respond to the settlement
within thirty (30) days of receipt of such notification.
Notwithstanding anything in this Article VII to the contrary, the
indemnifying party shall not, without the Indemnified Party’s
prior written consent, settle or compromise any claim or consent to
entry of any judgment in respect thereof which imposes any future
obligation on the Indemnified Party or which does not include, as
an unconditional term thereof, the giving by the claimant or the
plaintiff to the Indemnified Party of a release from all liability
in respect of such claim. The indemnity agreements contained herein
shall be in addition to (a) any cause of action or similar rights
of the Indemnified Party against the indemnifying party or others,
and (b) any liabilities the indemnifying party may be subject to
pursuant to the law.

 

ARTICLE VIII

 

Miscellaneous

 

Section
8.1 Fees and Expenses. Except as
otherwise set forth in this Agreement and the other Transaction
Documents, each party shall pay the fees and expenses of its
advisors, 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.

 

Section
8.2 Specific Enforcement; Consent to
Jurisdiction.

 

(a) The Company and the
Purchasers acknowledge and agree that irreparable damage may occur
in the event that any of the provisions of this Agreement or the
other Transaction Documents were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly
agreed that the parties may be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this
Agreement or the other Transaction Documents and to enforce
specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be
entitled by law or equity.

 

 

 

-19-

 

 

(b) Each of the Company
and the Purchasers (i) hereby irrevocably submits to the exclusive
jurisdiction of the United States District Court sitting in the
Southern District of New York and the courts of the State of New
York located in New York county for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement
or any of the other Transaction Documents or the transactions
contemplated hereby or thereby and (ii) hereby waives, and agrees
not to assert in any such suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of such
court, that the suit, action or proceeding is brought in an
inconvenient forum or that the venue of the suit, action or
proceeding is improper. Each of the Company and the Purchasers
consents to process being served in any such suit, 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 in this
Section 8.2 shall affect or limit any right to serve process in any
other manner permitted by law. Each party hereby irrevocably waives
personal service of process and consents to process being served in
any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law.

 

Section
8.3 Entire Agreement; Amendment.
This Agreement and the other Transaction Documents contains the
entire understanding and agreement of the parties with respect to
the matters covered hereby and, except as specifically set forth
herein or in the Transaction Documents, neither the Company nor any
of the Purchasers makes any representations, warranty, covenant or
undertaking with respect to such matters and they supersede all
prior understandings and agreements with respect to said subject
matter, all of which are merged herein. No provision of this
Agreement nor any of the Transaction Documents may be waived or
amended other than by a written instrument signed by the Company
and the holders of over fifty percent (50%) of the Shares then
outstanding (the “Majority Holders”), and
no provision hereof may be waived other than by a written
instrument signed by the party against whom enforcement of any such
waiver is sought. No such amendment shall be effective to the
extent that it applies to less than all of the holders of the
Shares then outstanding. No consideration shall be offered or paid
to any person to amend or consent to a waiver or modification of
any provision of any of the Transaction Documents unless the same
consideration is also offered to all of the parties to the
Transaction Documents.

 

Section
8.4 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 date of transmission, if
such notice or communication is delivered via electronic mail
(“Email”) at the Email
address 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 date of transmission, if such notice or
communication is delivered via Email at the Email address 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.

 

Section
8.5 Waivers. No waiver by any party
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 other provisions, 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 accruing to it thereafter.

 

Section
8.6 Headings. The section headings
contained in this Agreement (including, without limitation, section
headings and headings in the exhibits and schedules) are inserted
for reference purposes only and shall not affect in any way the
meaning, construction or interpretation of this Agreement. Any
reference to the masculine, feminine, or neuter gender shall be a
reference to such other gender as is appropriate. References to the
singular shall include the plural and vice versa.

 

 

 

-20-

 

 

Section
8.7 Successors and Assigns. This
Agreement may not be assigned by a party hereto without the prior
written consent of the Company or the Purchasers, as applicable,
provided,
however, that,
subject to federal and state securities laws and as otherwise
provided in the Transaction Documents, a Purchaser may assign its
rights and delegate its duties hereunder in whole or in part (i) to
a third party acquiring all or substantially all of its Securites
in a private transaction or (ii) to an affiliate, in each case,
without the prior written consent of the Company or the other
Purchasers, after notice duly given by such Purchaser to the
Company provided,
that no such assignment or obligation shall affect the obligations
of such Purchaser hereunder and that such assignee agrees in
writing to be bound, with respect to the transferred securities, by
the provisions hereof that apply to the Purchasers. The provisions
of this Agreement shall inure to the benefit of and be binding upon
the respective permitted 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.

 

Section
8.8 No Third Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto
and their respective permitted successors and assigns and is not
for the benefit of, nor may any provision hereof be enforced by,
any other person.

 

Section
8.9 Governing Law. This Agreement
shall be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to any of the
conflicts of law principles which would result in the application
of the substantive law of another jurisdiction. This Agreement
shall not be interpreted or construed with any presumption against
the party causing this Agreement to be drafted.

 

Section
8.10 Survival. The representations
and warranties of the Company and the Purchasers shall survive the
execution and delivery hereof and the Closing hereunder for a
period of one (1) year following the Closing Date.

 

Section
8.11 Counterparts. This Agreement
may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and, all of which
taken together shall constitute one and the same Agreement and
shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart. In
the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as
if such facsimile signature were the original thereof.

 

Section
8.12 Publicity. The Company agrees
that it will not disclose, and will not include in any public
announcement, the name of the Purchasers without the consent of the
Purchasers unless and until such disclosure is required by law or
applicable regulation, and then only to the extent of such
requirement.

 

Section
8.13 Severability. The provisions of
this Agreement and the Transaction Documents are severable and, in
the event that any court of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions
contained in this Agreement or the Transaction Documents shall, for
any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not
affect any other provision or part of a provision of this Agreement
or the Transaction Documents and such provision shall be reformed
and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained
herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

 

Section
8.14 Further Assurances. From and
after the date of this Agreement, upon the request of any Purchaser
or the Company, each of the Company and the Purchasers shall
execute and deliver such instrument, documents and other writings
as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this
Agreement, the Shares, the Additional Shares, the Preferred Shares,
the Conversion Shares, the Warrant Adjustment, and the other
Transaction Documents.

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

-21-

 

 

 

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.

 

 

	

METASTAT, INC.

 

 

	

Address
for Notice:

	

By:__________________________________________

     Name:

     Title:

 

 

 

 

 

 

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

	

MetaStat, Inc.

27 Drydock Ave., 2nd
Floor

Boston, MA 02210

Attention: Douglas A. Hamilton, CEO

Telephone No.: (617) 531-6500

Facsimile
No. (646) 304-7086

Email:
dhamilton@metastat.com

With an
Email copy to: dschneiderman@metastat.com

	

 

Loeb & Loeb LLP

345 Park Avenue

New York, NY 10154

Attention: David J. Levine, Esq.

Telephone No.: 212-407-4923

Facsimile No.: 212-818-1184

Email:
dlevine@loeb.com

 

	
 

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASERS FOLLOWS]

 

-22-

 

 

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.

 

Name of
Purchaser: ________________________

 

Signature of Authorized Signatory of
Purchaser: ________________________

 

Name of
Authorized Signatory: ________________________

 

Title
of Authorized Signatory: ________________________

 

Purchaser’s
Tax I.D. or Social Security Number:
________________________

 

Email
Address of Authorized Signatory:
________________________

 

Phone
Number of Authorized Signatory:
________________________

 

Address
for Notice to Purchaser:

 

________________________

 

________________________

 

________________________

 

Address
for Delivery of Securities to Purchaser (if not same as address for
notice):

 

________________________

 

________________________

 

________________________

 

 

Purchase Price:
$_______________________

 

 

2016
Company Investors (mark selection):

 

__ 100%
of Original Investment Amount pursuant to Section 2.4(a);
or

 

__ 50%
of Original Investment Amount pursuant to Section
2.4(b).

 

 

[PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE
AGREEMENT]

 

 

-23-

 

 

EXHIBIT A

TO THE SECURITIES PURCHASE AGREEMENT

 

 

LIST OF PURCHASERS

 

Close and Closing Date: [______]

 

	

Name and Address of Purchasers

	

Purchase Price

	

Number of Securities Purchased

	
 

	
 

	
 

	

[_____]

 

	

$[_____]

 

	

Shares:
[_____]

Additional
Shares: [_____]

Preferred
Shares: [_____]

2016
Adjusted Warrants: [_____]

 

-24-

 

 

EXHIBIT B

TO THE SECURITIES PURCHASE AGREEMENT

 

 

ESCROW WIRE INSTRUCTIONS

 

 

 

-25-

 

 

EXHIBIT C

TO THE SECURITIES PURCHASE AGREEMENT

 

 

FORM OF ESCROW AGREEMENT

 

 

 

-26-

 

 

EXHIBIT D

TO THE SECURITIES PURCHASE AGREEMENT

 

 

CONFIDENTIAL PRIVATE PURCHASER QUESTIONNAIRE

 

 

 

D-1

 

-27-

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