Document:

EXHIBIT
10.3

 

THIS
NOTE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF
CERTAIN STATES AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT
AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF
THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE
OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

DIEGO
PELLICER WORLDWIDE, INC.

 

FIRST
PRIORITY SECURED

 

CONVERTIBLE
PROMISSORY NOTE

 

	$2,383,667.77	Effective
    Date: June 29, 2018

 

FOR
VALUE RECEIVED, Diego Pellicer Worldwide, Inc. (the “Company”) promises to pay to 0851229 BC Ltd. (the “Investor”),
in lawful money of the United States of America, the principal sum of two million three hundred eighty-three thousand and six
hundred sixty seven dollars and seventy seven cents ($2,383,667.77) with interest accruing on the unpaid principal amount outstanding
hereunder at the rate of ten (10%) percent, per annum, calculated on a daily basis. No principal or interest shall be payable
until September 30, 2018. Commencing on September 30, 2018, Company shall pay to Investor, once per fiscal quarter, the lesser
of (a) fifteen percent (15%) of its pretax profit (after deducting expenses) for such quarter and (b) the monthly payment that
would have been due and payable hereunder had the Note been amortized over the period commencing on the Effective Date and ending
on the Maturity Date. Thereafter, all outstanding principal and accrued interest on the Note shall be due and payable upon the
second anniversary of the Effective Date (the “Maturity Date”).

 

 1. Conversion.

 

1.1
Conversion Right. The Investor shall have the right, from time to time, commencing upon the date of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note and accrued interest into fully paid and non-assessable
shares of Common Stock or any shares of capital stock or other securities of the Company into which such Common Stock shall hereafter
be changed or reclassified at the conversion price (the “Conversion Price”) as provided herein (a “Conversion”)
by the delivery to the Company of a notice of conversion in the form attached hereto as Exhibit A (the “Notice of
Conversion”). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by
dividing the Conversion Amount (as defined below) by the Conversion Price on the date specified in the Notice of Conversion (
unless such Notice of Conversion is submitted to the Company following 5:00 p.m., New York, New York time, in which case the Conversion
Amount shall be divided by the Conversion Price on the immediately following business day) (the “Conversion Date”).
The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount
of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the
interest rates provided in this Note to the Conversion Date.

 

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1.2
Conversion Price. The conversion price per share of Common Stock (the “Conversion Price”) shall be the lower
of (A) fifty (50%) percent of the 10-day trailing average closing price of the Company’s Common Stock, calculated on the
Conversion Date, or (B) $0.20 (the “Fixed Price Component”) (subject to equitable adjustments for stock splits, stock
dividends or rights offerings by the Company relating to the Company’s securities or the securities of any subsidiary of
the Company, combinations, recapitalization, reclassifications, extraordinary distributions and similar events and issuances of
securities at specified lower prices).

 

1.3
Conversion Price Protection. The Conversion Price shall be subject to adjustment to prevent dilution in the event that
the Company, during the time that the Notes are outstanding, issues additional shares of its Common Stock or any right or option
to purchase its Common Stock or any other security convertible into its Common Stock (other than shares issued to employees, consultants
or directors under a Company stock plan) at a purchase price less than the then applicable Conversion Price. In such an event,
the Fixed Component of the Conversion Price shall be reduced, concurrently with such issuance, on a full ratchet basis. This protection
does not apply if the Convertible Notes are prepaid at the time of such issuance.

 

1.4
Authorized Shares. The Company covenants that during the period the conversion right exists, the Company will reserve from
its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note.

 

 1.5

 

(a)
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Investor in whole or in part at any
time from time to time after the date of this Note, by: (A) submitting to the Company a Notice of Conversion (by facsimile, e-mail
or other reasonable means of communication) and (B) subject to Section 1.5(b), surrendering this Note at the principal office
of the Company.

 

(b)
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Investor shall not be required to physically surrender this Note to the Company unless
the entire unpaid principal amount of this Note is so converted. The Investor and the Company shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Investor and the Company, so as not to require physical surrender of this Note upon each such conversion. Notwithstanding the
foregoing, if any portion of this Note is converted as aforesaid, the Investor may not transfer this Note unless the Investor
first physically surrenders this Note tothe Company, whereupon the Company will forthwith issue and deliver upon the order of
the Investor a new Note of like tenor, registered as the Investor (upon payment by the Investor of any applicable transfer taxes)
may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Investor and any assignee,
by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of
a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the
amount stated on the face hereof.

 

(c)
Payment of Taxes. The Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other
than that of the Investor (or in street name), and the Company shall not berequired to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Investor or the custodian in whose street name such
shares are to be held for the Investor’s account) requesting the issuance thereof shall I have paid to the Company the amount
of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

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(d)
Delivery of Common Stock upon Conversion. Upon receipt by the Company from the Investor of a facsimile transmission or
e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this Section 1.5, the Company shall issue and deliver or cause to be issued and delivered to or upon the order of the Investor
certificates for the Common Stock issuable upon such conversion within thirty (30) days after such receipt (the “Deadline”)
in accordance with the terms hereof.

 

(e)
Obligation of Company to Deliver Common Stock. Upon receipt by the Company of a Notice of Conversion, the Investor shall
be deemed to be the Investor of record of the Common Stock issuable upon such conversion, the outstanding principal amount and
the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Company defaults
on its obligations under this Section 1, all rights with respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such
conversion. If the Investor shall have given a Notice of Conversion as provided herein, the Company’s obligation to issue
and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by
the Investor to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to
the Investor of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by
the Investor of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company to the Investor in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Company before 5:00 p.m., New York, New York time,
on such date.

 

(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Company’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request of the Investor and its compliance with the provisions
contained in Section 1.1 and in this Section 1.5, the Company shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Investor by crediting the account of Investor’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

1.6
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer
agent shall have been furnished with an opinion of counsel to the effect that the shares to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144
under the Act (or a successor rule) (“Rule 144”) or (iv) such shar es are transferred to an “affiliate”
(as defined in Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section
1.6 and who is an Accredited Investor (as defined in Rule 501 of Regulation D). Subject to the removal provisions set forth below,
until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise
may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then
be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included
in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

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“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY THE INVESTOR), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS
NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall issue to the Investor a new certificate therefore free of any transfer
legend if (i) the Company or its transfer agent shall have received an opinion of counsel to the effect that a public sale or
transfer of such Common Stock may be made without registration under the Act or (ii) in the case of the Common Stock issuable
upon conversion of this Note, such security is registered for sale by the Investor under an effective registration statement filed
under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular
date that can then be immediately sold. Any such opinion under Rule 144 shall be conditioned upon the Investor’s understanding
that no sales shall be made upon any date that the Company is not current in its filings of Forms 10 -K and 10-Q with the SEC.

 

1.7
Effect of Certain Events.

 

(a)
Effect of Merger, Consolidation, Etc. At the option of the Investor, a Change of Control Transaction (as defined below)
shall either: (i) be deemed to be an Event of Default (as defined in Article II) pursuant to which the Company shall be required
to pay to the Investor upon the consummation of and as a condition to such transaction an amount equal to the unpaid principal
balance and accrued interest under this Note, including, if applicable, any Optional Prepayment Amount or Prepayment Penalty Amount
then due, or (ii) be treated pursuant to Section l.8(b) hereof. “Change of Control Transaction” shall mean any of
(A) the sale, transfer, conveyance or disposition of all or substantially all of the assets of the Company, (B) any transaction
in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange
Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934),
directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of the Company ordinarily entitled
to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board
of Directors of the Company, who did not have such power before such transaction; or (C) the consolidation, merger, sale of capital
stock, or other business combination of the Company with or into any other Person (as defined below) or Persons, following which
the holders of Company capital stock immediately prior to such transaction do not hold in the aggregate at least a majority of
the issued and outstanding capital stock of the surviving entity.

 

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(b)
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Notes, there shall be any Change of Control Transaction or other exchange of shares, recapitalization, reorganization,
or other similar event, as a result of which shares of Common Stock of the Company shall be changed into the same or a different
number of shares of another class or classes of stock or securities of the Company or another entity, then the Investor of this
Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities
or assets which the Investor would have been entitled to receive in such transaction had this Note been converted in full immediately
prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate
provisions shall be made with respect to the rights and interests of the Investor of this Note to the end that the provisions
hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable
upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or
assets thereafter deliverable upon the conversion hereof. The Company shall not affect any transaction described in this Section
l.7(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least
fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no
such record date, the consummation of, such merger, consolidation, exchange or sale of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the Investor shall be entitled to convert this Note) and (b) the resulting
successor or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section 1.7(b). The above
provisions shall similarly apply to successive Change of Control Transactions, consolidations, mergers, sales, transfers or share
exchanges.

 

(c)
Adjustment Due to Distribution. If the Company shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of its Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including
any dividend or distribution to the Company’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Investor of this Note shall be entitled, upon any
conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount
of such assets which would have been payable to the Investor with respect to the shares of Common Stock issuable upon such conversion
had such Investor been the Investor of such shares of Common Stock on the record date for the determination of shareholders entitled
to such Distribution.

 

(d)
Intentionally Omitted

 

(e)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the
events described in this Section 1.7, the Company, at its expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Investor of a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Investor,
furnish to such Investor a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the
time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at
the time would be received upon conversion of the Note.

 

1.8
Status as Shareholder. Upon submission of a Notice of Conversion by Investor, the shares covered thereby shall be deemed
converted into shares of Common Stock and (ii) the Investor’s rights as an Investor of such converted portion of this Note
shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies
provided herein or otherwise available at law or in equity to such Investor because of a failure by the Company to comply with
the terms of this Note. Notwithstanding the foregoing, if an Investor has not received certificates for all shares of Common Stock
prior to the thirtieth (30th) day after the expiration of the Deadline with respect to a conversion of any portion of this Note
for any reason, then if elected by the Investor, the Investor shall regain the rights of an Investor of this Note with respect
to such unconverted portions of this Note and the Company shall, as soon as practicable, return such unconverted Note to the Investor
or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted
and re-issue a note of identical terms to this Note.

 

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1.9
Prepayment. Subject to the Investor’s rights of conversion set forth in Section1.5 above, commencing 90 days after
its Issue Date, the Company shall have a one-time right, exercisable on not less than thirty (30) days prior written notice to
the Investor, to prepay the outstanding principal and accrued interest under the Note, in full and in accordance with this Section
1.9. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Investor of the
Note at its registered address and shall state: (1) that the Company is exercising its right to prepay the Note, and (2) the date
of prepayment, which shall be not more than thirty (30) days from the date of the Optional Prepayment Notice. Upon receipt of
the Optional Prepayment Notice, Investor shall have ten (10) Business Days to deliver written notice to the Company of its election
to convert the Note pursuant to Section 1.5, whereupon the Note shall be converted concurrent with the closing of a bona fide
equity financing that raises funds in excess of the sum of the Optional Prepayment Amount and the Prepayment Penalty Amount (a
“Qualified Financing”); provided, however, that where such Qualified Financing does not close within
forty five (45) days of the delivery of the Optional Prepayment Notice, Investor’s conversion election shall terminate and
lapse with no adverse impact on its rights hereunder and the Company shall have no further right of prepayment under this Section
1. 9. On the date fixed for prepayment (the “Optional Prepayment Date”), the Company shall make payment
of the Optional Prepayment Amount (as defined below) to or upon the order of the Investor as specified by the Investor in writing
to the Company at least one (1) business day prior to the Optional Prepayment Date. If the Company exercises its right to prepay
the Note, the Company shall make payment to the Investor of an amount in cash equal to the sum of (i) the sum of: (x) the then
outstanding principal amount of this Note plus (y) accrued and unpaid interest on the unpaid principal amount of this Note,
to the Optional Prepayment Date (the “Optional Prepayment Amount”) and (ii) twelve percent (12%) times
the Optional Prepayment Amount (the “Prepayment Penalty Amount”). For the avoidance of doubt, if following
the delivery of an Optional Prepayment Notice, the Investor does not elect to convert and the Company then fails to pay the Optional
Prepayment Amount and Prepayment Penalty Amount due to the Investor within ten (10) business days following the Optional Prepayment
Date, the Company shall forever forfeit its right to prepay the Note pursuant to this Section 1.9.

 

2.
Priority. The Investor shall share a fully perfected first priority security interest in all assets of the Company
(including after-acquired assets) and all products and proceeds thereof, with Chester Aldridge. in accordance with the Company
Secured Convertible Promissory Note issued on the date hereof in the principal amount of $545,606.96, on a pari passu basis.
If the foregoing is not true or becomes untrue at any time, this Note shall become immediately due and payable.

 

 3. Representations and Warrantiesof Company. The Company hereby represents and warrants to each Investor that the following representations are true and complete as of the date hereof:

 

(a)
Organization, Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its
business as presently conducted and as proposed to be conducted. The Company is duly qualified to transact business and is in
good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect.

 

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(b)
Capitalization. As of June 30, 2018, the authorized capital of the Company consisted of:

 

		1.	490,000,000
                                         shares of Common Stock, 276,287,815 shares of which are issued and outstanding immediately
                                         prior to the Initial Closing. All of the outstanding shares of Common Stock have been
                                         duly authorized, are fully paid and nonassessable and were issued in compliance with
                                         all applicable federal and state securities laws.
	 	 	 
	 	11.	5,000,000 shares of preferred stock of the Company, none of which are issued and outstanding.
	 	 	 
	 	(iii)	The Company has reserved 0 shares of Common Stock for issuance to officers, directors, employees and consultants of the Company.
In addition to the securities reserved under the Stock Plan, there are options, warrants, convertible instruments, and other rights
to acquire O shares of preferred stock of the Company, and 3,691,172 shares of common stock of the Company;
and no other such rights.

 

(c)
Changes. Except as disclosed on Exhibit B attached hereto, since June 30, 2018, there has been no material change
to the capitalization of the Company as represented in Section 3(b) hereof.

 

(d)
Authorization. All corporate action required to be taken by the Company’s Board of Directors and, in the case of
the Company stockholders, if required, in order to authorize the Company to enter into this Note, and to issue any shares of Common
Stock issuable upon conversion, has been taken. All action on the part of the officers of the Company necessary for the execution
and delivery of this Note, the performance of all obligations of the Company under the Note has been taken. The Note, when executed
and delivered by the Company, shall constitute valid and legally binding obligation of the Company, enforceable against the Company
in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally,
or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(e)
Compliance with Other Instruments. The Company is not in violation or default (i) of any provisions of its Certificate
of Incorporation or Bylaws, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or mortgage
in respect of which the Investor is not an obligee, or (iv) under any lease, agreement, contract or purchase order to which it
is a party or by which it is bound, or (v) of any provision of federal or state statute, rule or regulation applicable to the
Company, the violation of which would have a material adverse effect. The execution, delivery and performance of the Note and
the consummation of the transactions contemplated by the Note will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument,
judgment, order, writ, decree, contract or agreement; or (ii) an event which results in the creation of any lien, charge or encumbrance
upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable
to the Company, other than as provided herein.

 

(f)
First Priority Security Interest. Except for the security interests held by the Investor and Chester Aldridge, there are
no other security interests or liens affecting any assets of the Company; and the Investor has a perfected, first priority security
interest in all assets of the Company (including after-acquired assets) and all products and proceeds thereof.

 

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4.
Representations and Warranties of Investor. Investor hereby represents and warrants to the Company that:

 

(a)
Investment Intent. Investor is acquiring this Note and the equity securities issuable upon conversion of this Note (collectively,
the “Securities”) solely for investment for his/her/its own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and Investor has no present intention of selling, transferring,
granting any participation in, or otherwise distributing the same. Investor does not have, with respect to any of the Securities,
any contract, agreement, arrangement, commitment, undertaking or instrument, whether written or oral, with any Person to sell,
transfer, grant participations or otherwise distribute the same to such Person or to any third Person. Investor has not been formed
for the specific purpose of acquiring the Securities.

 

(b) Disclosure
of Information. Investor has received, or has had full access to, all of the information he/she/it considers necessary or
appropriate to make an informed investment decision with respect to the Securities. Investor has had an opportunity to ask questions
and receive answers from the Company regarding the terms and conditions of the offering of the Securities and the business, management,
properties and financial condition of the Company.

 

(c)
Investment Experience. Investor has experience as an investor in securities of companies in the development stage and is
able to fend for himself/herself/itself, can bear the economic risk of his/her/its investment and has such knowledge and experience
in financial or business matters that he/she/it is capable of evaluating the merits and risks of his/her/its investment in the
Securities and protecting his/her/its own interests in connection with such investment. Investor acknowledges that any investment
in the Securities involves an extremely high degree of risk and that the Company’s future prospects are uncertain. Investor
is able, without materially impairing his/her/its financial condition, to hold the Securities for an indefinite period of time
and to suffer a complete loss of his/her/its investment.

 

(d)
Accredited Investor. Investor either (i) is an “accredited investor” within the meaning of Securities and Exchange
Commission (“SEC’) Rule 501 of Regulation D, as presently in effect, or (i) (A) certifies that he/she/it
is not a “U.S. person” within the meaning of SEC Rule 902 of Regulation S, as presently in effect, and is not acquiring
the Securities for the account or benefit of any U.S. person, (B) agrees to resell the Securities only in accordance with the
provisions of Regulation S, pursuant to registration under the Securities Act or pursuant to an available exemption from registration
and agrees not to engage in hedging transactions with regard to such Securities unless in compliance with the Securities Act,
(C) agrees that any certificates for any Securities issued to him/her/it shall contain a legend to the effect that transfer is
prohibited except in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act or pursuant
to an available exemption from registration and that hedging transactions with regard to such Securities may not be conducted
unless in compliance with the Securities Act, and (D) agrees that the Company is hereby required to refuse to register any transfer
of any Securities issued to Investor not made pursuant to registration under the Securities Act or pursuant to an available exemption
from registration.

 

5.
Covenants.

 

(a) The
Company covenants and agrees that, so long as any amounts remain due and payable under the Note, it shall not:

 

i. change
its name or the state of its formation or relocate its chief executive office unless it first gives 30 days prior written notification
to Investor; replace or suffer the departure of its chief executive officer or chief financial officer (if applicable) unless
it delivers written notification to Investor within 10 days thereof; fail to appoint an interim replacement or fill a vacancy
in the position of chief executive officer or chief financial officer (or someone who assumes the responsibilities of a chief
financial officer) for more than 30 consecutive days;

 

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ii. without
the prior written consent of the Investor, take action to liquidate, wind up, or otherwise cease to conduct business in the ordinary
course; engage in any business, or permit any of its subsidiaries to engage in any business, other than or reasonably related
or incidental to the businesses currently engaged in by the Company; change its fiscal year end;

 

iii. without
the prior written consent of the Investor, effect a Change in Control Transaction;

 

iv. without
the prior written consent of the Investor, merge or consolidate, or permit any of its subsidiaries to merge or consolidate, with
or into any other business organization (other than mergers or consolidations of a subsidiary into another subsidiary or into
the Company), or acquire, or permit any of its subsidiaries to acquire, all or substantially all of the capital stock or property
of another person or entity, or enter into any agreement related to the foregoing;

 

v. create,
incur, assume, guarantee or be or remain liable with respect to any Indebtedness (as defined below), or permit any subsidiary
so to do, unless the same is subordinated to the Notes regarding priority, security and repayment or prepay any Indebtedness or
take any actions which impose on the Company an obligation to prepay any Indebtedness, except Indebtedness to Investor;

 

vi.
after the date hereof, create, incur, assume, guarantee or be or remain liable with respect to any new Indebtedness for borrowed
money in excess of $500,000 in the aggregate, or permit any subsidiary so to do;

 

vii. after
the date hereof, create, incur, assume, guarantee or be or remain liable with respect to any new Indebtedness for borrowed money,
or permit any subsidiary so to do, unless the same is evidenced by an agreement or instrument containing the following unconditional
provision, without any exception thereto:

 

“The
undersigned acknowledges and agrees that all claims, liens and encumbrances it may have, whether now existing or hereafter acquired,
in any asset or property (whether tangible or intangible and whether real or personal) of the Company, whether such asset or property
is now owned or hereafter acquired or now existing or hereafter created and wherever located, are unconditionally subordinate
and junior in right of priority and rank to any and all senior security interests, deeds of trust, mortgages and other claims,
liens and encumbrances that exist now or at any time hereafter in the same property, including without limitation any interest
of 085129 BC Ltd., Chester Aldridge, Doug Froese, any of their affiliates or successors in interest, or any party to which such
interests are transferred.”

 

viii. create,
incur, assume or allow any lien or encumbrance with respect to its property, or assign or otherwise convey any right to receive
income, provided that the foregoing shall not restrict the Company from granting a purchase money security interest on equipment
that is leased or purchased on credit and secured by such specific piece of equipment;

 

ix. without
the prior written consent of the Investor, pay any dividends or make any other distribution or payment on account of or in redemption,
retirement or purchase of any capital stock;

 

x. without
the prior written consent of the Investor, directly or indirectly acquire or own an investment in, or make any investment in or
to, any person or entity, or permit any of its subsidiaries so to do;

 

xi. without
the prior written consent of the Investor, directly or indirectly enter into or permit to exist any material transaction with
any affiliate of Company;

 

xii. make
any payment in respect of any Indebtedness for borrowed money other than this Note, or permit any of its subsidiaries to make
any such payment;

 

xiii. store
any inventory or equipment with a bailee, warehouseman, collocation facility or similar third party unless the third party has
been notified of lnvestor’s security interest and Investor (a) has received an acknowledgment from the third party that
it is holding or will hold the inventory or equipment for Investor’s benefit or (b) is in possession of the warehouse receipt,
where negotiable, covering such inventory or equipment. Except for inventory sold in the ordinary course of business, and except
for such other locations as Investor may approve in writing, Company shall keep the inventory and equipment only at its principal
place of business in Washington State, as identified in the Amended and Restated Security Agreement of even date hereof; and

 

    	 	 9	 

    	 

    

 

xiv. agree
or become otherwise obligated to do any of the foregoing matters described in this Section 5.

 

“Indebtedness
for borrowed money” shall mean all liabilities, obligations and indebtedness for borrowed money.

 

“Indebtedness”
shall mean any and all amounts and/or liabilities owing from time to time by the Company to any person or entity, including Investor,
direct or indirect, liquidated or contingent, now existing or hereafter arising, in respect of: (a) all liabilities, obligations
and indebtedness for borrowed money; (b) obligations with respect to capital leases or other capitalized agreements that are properly
classified as a liability on a balance sheet in conformity with GAAP; (c) all obligations of the Company evidenced by bonds, debentures,
promissory notes or other similar instruments representing extensions of credit whether or not representing obligations for borrowed
money; (d) any obligation owed for all or any part of the deferred purchase price of property or services of the Company; (e)
all obligations created or arising under any conditional sale or other title retention agreement; (f) all secured indebtedness;

 

all
direct and contingent obligations of the Company arising under any letters of credit or bankers’ acceptance facilities or
similar instrument and, without duplication, all drafts drawn thereunder (to the extent unreimbursed); (h) obligations under any
synthetic lease, tax retention operating lease, off- balance sheet loan or similar off balance sheet financing product or arrangement;
(i) obligations with respect to principal under contingent obligations for the repayment of money or the deferred purchase price
of property, whether or not then due and payable (calculated as the maximum amount of such principal); and (i) all guaranty obligations
of the Company with respect to Indebtedness of any other person or entity.

 

xv. The
Company further covenants and agrees that so long as any amounts remain due and payable under the Note it shall at any time when
the Company is not a reporting company under Section 13 or 15(d) of the Securities and Exchange Act of 1934, as amended, or is
not current with its periodic reporting obligations thereunder, as soon as practicable following Investor’s written request,
provide to Investor a budget and business plan for the next fiscal quarter (collectively, the “Budget”), which such
Budget shall be prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such
months and, subject to Investor approval.

 

    	 	 10	 

    	 

    

 

 6. Investor Rights. It is acknowledged and agreed that:

 

(a) Notwithstanding
Investor or Chester Aldridge’s rights under any other agreement or instrument between the Company and Investor, for so long
as any amounts remain due and payable under this Note or any other agreement or instrument between the Company and Investor, Investor
shall have a right to designate and appoint (and upon written notice removal) of two (2) members of the Company’s Board
of Directors to serve as directors of the Board of Directors of the Company, and which nominees are initially designated by Investor
to be Nello Gonfinatini and David Thompson; provided, however, that where amounts remain due and payable to each of Investor and
Chester Aldridge or any affiliate thereof, they shall mutually designate and appoint any director replacement for either or both
of Nello Gonfiantini and David Thompson in the event of their resignation or other termination as members of the Company’s
Board of Directors; and the size of the Company’s Board of Directors shall be no more than five (5) directors; and

 

(b) any
additional debt or equity capital provided by Investor to the Company or any affiliate thereof shall be provided on terms no less
favorable to Investor than the terms provided herein or in any agreement or instrument between the Company and any third party
made from and after October 1, 2016 and Company agrees to take such action as is required to alter, amend or restate any agreement
or instrument between the Company and Investor to implement and effect such terms.

 

7.
Restrictions on Transfer.

 

(a)
Restricted Securities. Investor understands that the Securities have not been, and may not be, (i) registered under the
Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which
depends upon, among other things, the bona fide nature of Investor’s investment intent and the accuracy of Investor’s
representations and warranties as expressed herein or (ii) registered or qualified in any state in which they are offered. Investor
also understands that the Securities are “restricted securities” under applicable federal and state securities laws
inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that, pursuant to such
laws, Investor must hold the Securities indefinitely unless they are registered with the SEC and qualified by state authorities
or an exemption from such registration and qualification requirements is available. Investor acknowledges that, except as otherwise
provided herein, the Company has no obligation to register or qualify the Securities for resale and that, if an exemption from
registration or qualification is available, it may be conditioned on various requirements, including, without limitation, the
time and manner of sale, the holding period for the securities and requirements relating to the Company which are outside of Investor’s
control and which the Company is under no obligation, and may not be able, tosatisfy.

 

(b)
Further Limitations on Disposition. Without in any way limiting the representations and warranties set forth herein, Investor
agrees not to make any sale or disposition of all or any portion of the Securities unless and until the transferee has agreed,
in writing, for the benefit of the Company to be subject to the terms and conditions of this Section 7 to the same extent as if
the transferee were the original Investor of this Note and:

 

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

 

(ii) if
reasonably requested by the Company, Investor shall have furnished the Company with an opinion of counsel reasonably satisfactory
to the Company that such sale or disposition will not require registration under the Securities Act or any applicable state securities
laws; provided, however, that, no such opinion shall be required for sales or dispositions made in compliance with SEC Rule 144.

 

Notwithstanding
the provisions of clauses (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer
by (x) Investor (if Investor is a partnership or limited liability company) to a partner (or retired partner) or member (or retired
member) of lnvestor, or to the estate of any such partner, retired partner, member or retired member, or (y) gift, will or intestate
succession to Investor’s spouse, siblings, lineal descendants or ancestors or affiliates; provided, however, that
the transferee agrees, in writing, to be subject to all of the terms and conditions of this Section 7 to the same extent as if
the transferee were the original Investor of this Note. The Company may issue stop-transfer instructions to its transfer agent
in connection with the transfer restrictions set forth in this Note.

 

    	 	 11	 

    	 

    

 

(c) Registration,
Exchange and Replacement of Note. The Company will keep books for the registration (and registration of transfer) of this Note.
The registration (and registration of transfer) of this Note shall, at all times, conform to the requirements of U.S. Treasury
Regulations Section 1.871-14(c), which specifies the “registered form” requirements for exemption from U.S. federal
income taxation of foreign individuals and corporations on interest from certain “portfolio debt” obligations. Prior
to presentation of this Note for registration or transfer, the Company shall treat the Person in whose name this Note is registered
as the owner and Investor of this Note for all purposes, whether or not this Note is overdue, and the Company shall not be affected
by notice to the contrary. Subject to any restrictions on, or conditions to, transfer set forth herein, the Investor of this Note
may, at its option, in person or by duly authorized attorney, surrender this Note for exchange at the Company’s principal
office and, promptly thereafter, at the Company’s expense, receive in exchange therefor one or more new notes for the same
aggregate principal amount as the then unpaid principal amount of this Note so surrendered, dividing such unpaid principal amount
among the new note or notes, as applicable, in the proportions so requested, in writing, by such Investor or his/her/its duly
authorized attorney, dated the date to which interest shall have been paid on this Note so surrendered (or, if no interest shall
have yet been so paid, dated the date of this Note so surrendered) and registered in the name of such Person or Persons as shall
have been designated, in writing, by such Investor or his/her/its duly authorized attorney. Upon receipt by the Company of evidence
reasonably satisfactory to it of the ownership of, and the loss, theft, destruction or mutilation of, this Note and either (i)
the receipt of an indemnity relating to such loss, theft or destruction that is reasonably acceptable to the Company (in the case
of loss, theft or destruction) or (ii) surrender of this Note (in the case of mutilation), the Company shall, at its expense,
execute and deliver in lieu of this Note a new note executed in the same manner as this Note being replaced, in the same principal
amount as the then unpaid principal amount of this Note and dated the date to which interest shall have been paid on this Note
(or, if no interest shall have yet been so paid, dated the date of this Note).

 

8.
Events of Default.

 

(a) The
Company fails to pay any of the principal, interest or any other amounts payable under this Note when due and payable;

 

(b) the
Company fails to reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights,
to provide for the issuance of Common Stock upon the full conversion of this Note;

 

(c) the
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other
law for the relief of, or relating to, debtors, now or hereafter in effect, or seeks the appointment of a custodian, receiver,
trustee (or other similar official) of the Company or all or any substantial portion of the Company’s assets, or makes any
assignment for the benefit of creditors or takes any action in furtherance of any of the foregoing;

 

(d) the
Company suffers the resignation of a majority of its Board of Directors in anticipation of, or in connection with, any event or
action contemplated by Section 8(c) above and thereafter fails to fill the resulting vacancies within fifteen (15) days;

 

(e) an
involuntary petition is filed, or any proceeding or case is commenced, against the Company (unless such proceeding or case is
dismissed or discharged within 60 days of the filing or commencement thereof) under any bankruptcy, reorganization, arrangement,
insolvency, adjustment of debt, liquidation or moratorium statute now or hereafter in effect, or a custodian, receiver, trustee,
assignee for the benefit of creditors (or other similar official) is applied or appointed for the Company or to take possession,
custody or control of any property of the Company, or an order for relief is entered against the Company in any of the foregoing;

 

    	 	 12	 

    	 

    

 

(f)
there is a breach by the Company or any of its executives or stakeholders under any other instrument or agreement with
Investor or Chester Aldridge (including, without limitation, any other promissory note of the Company), the Security
Agreement dated on or about the date hereof and the warrant of issue date May 15, 2017, issued to 0851229 BC Ltd., and the
warrant of issue date May 15, 2017 issued by the Company to Chester Aldridge, or the Deferral, Subordination and Board
Seat Agreement dated February 8, 2016 (together, the “Loan Documents”) (as the same may be amended, modified
or restated from time to time and any Loan Documents exchanged or substituted for the Loan Documents).

 

Upon
the occurrence of an Event of Default, (a) the Note shall become immediately due and payable,(b) the interest rate under the Note
shall thereafter increase to 20% (provided that if such amount is not then permitted by law, the interest rate shall increase
to the highest amount then permitted by applicable law); and (c) the Investor shall have then, or at any time thereafter, all
of the rights and remedies afforded creditors generally by the applicable federal laws or the laws of the State of Delaware.

 

9.
Miscellaneous.

 

(a)
Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery
hereof and shall in no way be affected by any investigation made by or on behalf of any party hereto.

 

(b)
Successors and Assigns. Subject to the restrictions on transfer described herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the respective successors, permitted assigns, heirs, executors, administrators and transferees
of the parties hereto. Nothing herein, express or implied, is intended to confer upon any party other than the parties hereto
or their respective successors, permitted assigns, heirs, executors and administrators any rights, duties or obligations under
or byreasonof this Note, except as expressly provided herein.

 

(c)
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed
in accordance with the internal laws of the State of Delaware without regard to conflict-of-law principles.

 

(d)
Interpretation. The titles, captions and headings herein are for convenience of reference only and shall not affect the
meaning or interpretation hereof. This Note shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

(e)
Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given
or delivered (i) when delivered personally, (ii) one business day after being deposited with an overnight courier service (costs
pre-paid), (iii) when sent by facsimile or e-mail if sent during normal business hours and on the next business day if sent after
normal business hours, in each case with confirmation of transmission by the transmitting equipment, or (iv) when received or
rejected by the addressee, if sent by certified or registered mail, return receipt requested, postage pre-paid, in each case to
the addresses, facsimile numbers and e-mail addresses and marked to the attention of the person (by name or title) designated
on the signature page hereto or to such other address, facsimile number, e-mail address or person as such party may designate
by a notice delivered to the other party hereto.

 

    	 	 13	 

    	 

    

 

(f)
Amendments and Waivers. No provision of this Note may be amended or waived without the written consent of the Company and
Investor. No waivers of, or exceptions to, any term, condition or provision hereof, in any one or more instances, shall be deemed
to be, or construed as, a further or continuing waiver of, or exception to, any such term, condition or provision. Notwithstanding
the foregoing, the registered form requirements of U.S. Treas ury Regulations Section 1.871-14(c) in clause 7(c) above may not
be amended, waived or otherwise modified.

 

(g)
Expenses; Waivers. The Company shall pay all of Investor’s costs and expenses, including reasonable attorney’s
fees and disbursements up to approximately $25,000 through the date hereof, plus such reasonable amounts as may hereafter be incurred
inconnection with in connection with the negotiation, execution and delivery of this Note, the Warrant, the Amended and Restated
Security Agreement, the Subordination Agreement, the Deferral, Subordination and Board Seat Agreement, and any other agreements
with Investor. If action is instituted to collect this Note, the Company shall pay all costs and expenses, including, without
limitation, reasonable attorneys’ fees and court costs, incurred in connection with such action. The Company hereby waives
notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands
relative to this instrument.

 

    	 	 14	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this First Priority Convertible Promissory Note to be duly executed and issued as
of the date first written above.

 

	 	Diego
    Pellicer Worldwide, Inc.
	 	 	 
	 	By:	
	 	Name:	Ronald
    Throgmartin
	 	Title:	Chief
    Executive Officer

 

	 	Address:	6160
    Plumas Street
	 	 	Suite
    # 100
	 	 	Reno,
    NV 89519

 

	 	Facsimile:	(678)
    541-7200
	 	E-mail:	Ron@Diego-Pellicer.com 

 

    	 	 15	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this First Priority Convertible Promissory Note to be duly executed and issued as
of the date first written above.

 

 

 

    	 	 16	 

    	 

    

 

Exhibit
A 

 

NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $                      
of the principal amount and accrued interest of the Note (defined below) into Shares of Common Stock of Diego Pellicer
Worldwide, Inc., a Delaware Corporation (the “Company”) according to the conditions of the First Priority
Convertible Promissory Note of the Company dated as of June 29, 2018 (the “Note”). No fee will be charged
to the Investor or Investor’s Custodian for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	___	The
    Company shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name
    of DTC Prime Broker: _________________________________________
	

                                                                                
	 	Account
    Number:_________________________________________
	 	 	 
	 	___	The
    undersigned hereby requests that the Company issue a certificate or certificates for the number of shares of Common Stock
    set forth below (which numbers are based on the Investor’s calculation attached hereto) in the name(s) specified immediately
    below:

 

	Date
    of Conversion:	 	 
	 	 	 
	Conversion
    Price:	 	 
	 	 	 
	Shares
    to Be Delivered:	 	 
	 	 	 
	Remaining
    Principal 	 	 
	Balance
    Due After This	 	 
	Conversion:	 	 
	 	 	 
	Signature	 	 
	 	 	 
	Print
    Name:	 	 

 

    	 	 17	 

    	 

    

 

Exhibit
B

Section 3 (c): Changes

 

 (g) As of June 30, 2018, the authorized capital of the Company consisted of:

 

	 	1.	490,000,000
    shares of Common Stock, 276,287,815 shares of which are issued and outstanding immediately prior to the Initial Closing. All
    of the outstanding shares of Common Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance
    with all applicable federal and state securities laws.
	 	 	 
	 	11.
    	5,000,000
    shares of preferred stock of the Company, none of which are issued and outstanding.
	 	 	 
	 	(iii)
    	The
    Company has reserved 0 shares of Common Stock for issuance to officers, directors, employees and consultants of the Company.
    In addition to the securities reserved under the Stock Plan, there are options, warrants, convertible instruments, and other
    rights to acquire O shares of preferred stock of the Company, and 3,691,172 shares of common stock of
    the Company; and no other such rights.

 

    	 	 18EX-10.1

 Exhibit 10.1 

REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of July 19, 2018 by and between PTC Inc., a
Massachusetts corporation (the “Company”), and Rockwell Automation, Inc., a Delaware corporation (“Rockwell”), each of which is sometimes referred to herein as a “Party” and collectively as the
“Parties.” 
 R E C I T A L S 

WHEREAS, pursuant to that certain Securities Purchase Agreement, dated as of June 11, 2018, by and between the Company and Rockwell
(the “Securities Purchase Agreement”), Rockwell shall acquire 10,582,010 shares (the “Shares”) of the Company’s Common Stock, par value $0.01 per share (“Common Stock”); and 

WHEREAS, in connection with Rockwell’s investment pursuant to the Securities Purchase Agreement, the Company has agreed to provide
certain rights to Rockwell to cause the resale of the shares of the Common Stock to be registered pursuant to the Securities Act (as defined below); and 

WHEREAS, the Parties desire to set forth their rights and obligations relating to the registration of the resale of the Registrable Securities
(as defined below) pursuant to the Securities Act. 
 A G R E E M E N T 

NOW, THEREFORE, in consideration of the purchase of the Shares by Rockwell pursuant to the Securities Purchase Agreement, and for other good
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 

1.    Definitions. As used in this Agreement the following capitalized terms shall have the following
meanings. Capitalized terms used and not defined herein shall have the respective meanings ascribed to them in the Securities Purchase Agreement: 

“Agreement” shall have the meaning set forth in the recitals to this Agreement. 

“Common Stock” shall have the meaning set forth in the recitals of this Agreement. 

“Company” shall have the meaning set forth in the recitals of this Agreement. 

“Company Offering” shall have the meaning set forth in Section 3.4. 

“Effectiveness Period” shall mean the period of time commencing on the date the SEC declares the Resale Shelf
Registration Statement effective and ending on the Termination Date. 
 “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 “Free Writing Prospectus” shall have the meaning set forth in
Section 2.7(a)(iii). 
 “Indemnitee” shall have the meaning set forth in
Section 7. 
 “Inspectors” shall have the meaning set forth in
Section 2.7(a)(viii). 
 “Marketed Underwritten Shelf Offering” shall mean any a shelf offering
referred to in Section 2.5 that is an underwritten offering as to which the plan of distribution set forth in the applicable Take-Down Notice includes a “road show” (which may be an “electronic road
show” and/or a “nondeal road show”) or other substantial marketing effort by the Company and the underwriters. 

“Offering Blackout Period” shall have the meaning set forth in Section 3.4. 

“Prospectus” shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, as amended
or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement, and by all other amendments and supplements to such prospectus, including
post-effective amendments, and in each case including all material incorporated by reference therein and excluding all “free writing prospectuses” as defined in Rule 405 of the Securities Act. 

“Records” shall have the meaning set forth in Section 2.7(a)(viii). 

“Registrable Securities” shall mean the Shares, and any shares of Common Stock or other securities issued or issuable in
respect of the Shares by way of spin-off, dividend, distribution, stock split or in connection with a combination of shares, reclassification, merger, consolidation, reorganization or similar transaction;
provided, however, that Registrable Securities shall not include (i) any securities for which a Registration Statement relating to the sale thereof has become effective under the Securities Act and which have been disposed of
under such Registration Statement, (ii) any securities sold pursuant to Rule 144, and (iii) any Shares where the holder thereof beneficially owns in the aggregate less than 1% (one percent) of the shares of Common Stock that are
outstanding at such time and such Shares are eligible to be sold in a single three-month period without registration in compliance with Rule 144 without any time, manner or volume of sale restrictions. 

“Registration Statement” shall mean any registration statement of the Company which covers the resale of any of the
Registrable Securities at any time under the Securities Act on Form S-3 (or, if and after the Company becomes ineligible to use that form, Form S-1), and all amendments
and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all materials incorporated by reference, as well as any registration statement
superseding or replacing such registration statement. 
 “Resale Shelf Registration Statement” shall have the meaning set
forth in Section 2.1. 

 “Rockwell” shall have the meaning assigned to such term in the first paragraph
of this Agreement, subject to Section 12 (permitting assignment to an Affiliate). 
 “Rule 144”
means Rule 144 under the Securities Act (or any successor provision). 
 “SEC” shall mean the United States Securities and
Exchange Commission. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 
 “Securities Purchase Agreement” shall have the meaning set forth in the recitals of this
Agreement. 
 “Shares” shall have the meaning set forth in the recitals of this Agreement. 

“Suspension Event” shall have the meaning set forth in Section 3.3. 

“Suspension Event Certificate” shall have the meaning set forth in Section 3.3. 

“Take-Down Notice” shall have the meaning set forth in Section 2.5. 

“Termination Date” shall mean the earlier of (a) the date on which the registration rights of all Persons pursuant to
this Agreement have terminated pursuant to Section 5 or (b) the date the Company is acquired in a transaction approved by the Company’s Board of Directors (including, without limitation, through a merger,
consolidation, stock purchase, or sale of all or substantially all of the Company’s assets). 

2.    Resale Shelf Registration Rights. 

2.1    Registration Statement Covering Resale of Registrable Securities. Not later than July 19, 2019, the
Company shall file with the SEC a shelf registration statement on Form S-3 pursuant to Rule 415 under the Securities Act covering all of the Registrable Securities registering the resale on a delayed or
continuous basis of all such Registrable Securities by Rockwell (a “Resale Shelf Registration Statement”). If the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act), then the Company shall file
the Resale Shelf Registration Statement in the form of an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) or any successor form thereto. If the Resale Shelf Registration Statement is not an automatic shelf
registration statement, then the Company shall use commercially reasonable efforts to have the Resale Shelf Registration Statement declared effective under the Securities Act promptly following the filing of the Resale Shelf Registration Statement.
The Company agrees to use commercially reasonable efforts to maintain the effectiveness of the Resale Shelf Registration Statement, including by filing any necessary post-effective amendments and/or replacement shelf registration statements and
prospectus supplements, during the Effectiveness Period; provided that the effectiveness of the Resale Shelf Registration Statement need not be maintained for the purposes of registering the resale of securities that no longer constitute
Registrable Securities or at any time when the Company is not eligible to file a registration statement on Form S-3 (or any similar or successor form) for the purpose of registering the resale of the
Registrable Securities. However, if the Company shall at 

 
any time before the Termination Date become ineligible to file or use a registration statement on Form S-3 (or any similar or successor form), then the
Company shall promptly file with the SEC a shelf registration statement covering all of the Registrable Securities on Form S-1 (or any similar or successor form) and use commercially reasonable efforts to have
such registration statement declared effective under the Securities Act promptly following its filing. The Company will thereafter maintain the effectiveness of that registration statement, amending and replacing it as appropriate (and it shall be a
Resale Shelf Registration Statement within the meaning of this Agreement), and amending and supplementing the prospectus included therein and related thereto, throughout the Effectiveness Period. The Company’s obligations under this
Section 2 shall extend to and include Form S-1 registration of the Registrable Securities to the same extent that such obligations apply to Form
S-3 registration of the Registrable Securities. 
 2.2    Notification and
Distribution of Materials. The Company shall notify Rockwell in writing of the effectiveness of the Resale Shelf Registration Statement and shall furnish to Rockwell, without charge, such number of copies of the Resale Shelf Registration
Statement (including any amendments, supplements and exhibits), the Prospectus contained therein (including each preliminary prospectus and all related amendments and supplements) and any documents incorporated by reference in the Resale Shelf
Registration Statement or such other documents as Rockwell may reasonably request in order to facilitate the sale of the Registrable Securities in the manner described in the Resale Shelf Registration Statement. 

2.3    Amendments and Supplements. Subject to the provisions of Section 2.1, the Company
shall prepare and file with the SEC from time to time such amendments and/or replacement shelf registration statements and supplements to the Resale Shelf Registration Statement and Prospectus used in connection therewith as may be necessary to keep
the Resale Shelf Registration Statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all the Registrable Securities during the Effectiveness Period. 

2.4    Notice of Certain Events. The Company shall promptly notify Rockwell in writing of any request by the SEC
for any amendment or supplement to, or additional information in connection with, the Resale Shelf Registration Statement required to be prepared and filed hereunder (or Prospectus relating thereto). The Company shall promptly notify Rockwell in
writing of the filing of the Resale Shelf Registration Statement (or the Prospectus relating thereto) or any amendment or supplement related thereto or any post-effective amendment to the Resale Shelf Registration Statement and/or replacement shelf
registration statement and of the effectiveness of any post-effective amendment and/or replacement shelf registration statement. 

2.5    Notice of Underwritten Offering. At any time that a Resale Shelf Registration Statement is effective, if
Rockwell delivers a notice to the Company (a “Take-Down Notice”) stating that it intends to sell all or part of its Registrable Securities using the Resale Shelf Registration Statement in a Marketed Underwritten Shelf Offering, then
the Company shall amend or supplement the Resale Shelf Registration Statement as may be necessary in order to enable such Registrable Securities to be distributed pursuant to such Marketed Underwritten Shelf Offering; provided, that no more
than one Marketed Underwritten Shelf Offering may be conducted during any 90-day period. For the avoidance of doubt, Registrable Securities may be offered and sold using the Resale Shelf Registration
Statement, 

 
subject to Section 3, even when Rockwell is not permitted by the terms of this Section 2.5 to conduct a Marketed Underwritten Shelf Offering.

 2.6    Selection of Underwriter. In the event of a Marketed Underwritten Shelf Offering, Rockwell shall select
the investment banker(s) and manager(s) that will serve as managing underwriters (including which such managing underwriters will serve as lead or co-lead) and underwriters with respect to the offering of such
Registrable Securities; provided, that such investment banker(s) and manager(s) shall be reasonably acceptable to the Company (such acceptance not to be unreasonably withheld, conditioned or delayed). 

2.7    Registration Procedures. 

(a)    If and whenever the Company is required to use commercially reasonable efforts to effect the registration of any
Registrable Securities under the Securities Act as provided in this Section 2, the Company shall as expeditiously as reasonably practicable: 

(i)    prepare and file with the SEC such amendments, including post-effective amendments and/or
replacement shelf registration statements, and supplements to a Resale Shelf Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Resale Shelf Registration Statement effective and to comply in all
material respects with the provisions of the Securities Act with respect to the disposition of the Registrable Securities subject thereto for a period ending on the date on which all the Registrable Securities cease to be Registrable Securities;
promptly incorporate in a prospectus supplement or post-effective amendment such information as the managing underwriter or underwriters and Rockwell agree should be included therein relating to the plan of distribution with respect to such
Registrable Securities; and make all required filings of such prospectus supplement or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such prospectus supplement or post-effective
amendment; 
 (ii)    respond as promptly as reasonably practicable to any comments received from the SEC
with respect to each Registration Statement or any amendment thereto and promptly provide Rockwell true and complete copies of all correspondence from and to the SEC relating to such Registration Statement; 

(iii)    furnish to Rockwell and each underwriter, if any, of the securities being sold by Rockwell such
number of conformed copies of such Resale Shelf Registration Statement and of each amendment and supplement thereto, such number of copies of the prospectus contained in or deemed part of such Resale Shelf Registration Statement (including each
preliminary prospectus and any summary prospectus) and each free writing prospectus (as defined in Rule 405 of the Securities Act) (a “Free Writing Prospectus”) utilized in connection therewith and any other prospectus filed under
Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents as Rockwell and each such underwriter, if any, may reasonably request in order to facilitate the public sale or other disposition
of the Registrable Securities; 
 (iv)    use commercially reasonable efforts to cause such Registrable
Securities (if such Registrable Securities are shares of Common Stock) to be listed on each securities exchange on which shares of Common Stock are then listed; 

 (v)    use commercially reasonable efforts to provide and
cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such Resale Shelf Registration Statement from and after a date not later than the effective date of such Resale Shelf Registration Statement; 

(vi)    enter into such agreements (including an underwriting agreement) in form, scope and substance as is
customary in underwritten offerings of shares of common stock by an issuer similar to the Company and use its commercially reasonable efforts to take all such other actions reasonably requested by Rockwell (including those reasonably requested by
the lead managing underwriter(s), if any) to expedite or facilitate the disposition of such Registrable Securities, and in such connection, whether or not an underwriting agreement is entered into and whether or not the registration is an
underwritten offering, (A) make such representations and warranties to Rockwell and the underwriters, if any, with respect to the business, management, financial statements and prospects of the Company and its subsidiaries, and the Resale Shelf
Registration Statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case in form, substance and scope as are customarily made by issuers in underwritten offerings, and, if true, confirm
the same if and when requested, and (B) deliver such documents and certificates as reasonably requested by Rockwell, its counsel and the lead managing underwriter(s), if any, to evidence the continued accuracy of the representations and
warranties made pursuant to sub-clause (A) and to evidence compliance with any customary covenants and satisfaction of any customary conditions contained in the underwriting agreement or other agreement
entered into by the Company. The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder; 

(vii)    in connection with an underwritten offering, use commercially reasonable efforts to obtain for the
underwriter(s) (A) opinions of counsel for the Company, covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such underwriters, and
(B) ”comfort” letters and updates thereof (or, in the case of any such Person which does not satisfy the conditions for receipt of a “comfort” letter specified in Statement on Auditing Standards No. 72, an “agreed
upon procedures” letter) signed by the independent public accountants who have certified the Company’s financial statements included in such Resale Shelf Registration Statement, covering the matters customarily covered in
“comfort” letters in connection with underwritten offerings; 
 (viii)    make available for
inspection by Rockwell, any underwriter participating in any disposition pursuant to any Registration Statement, and any attorney, accountant or other agent or Representative retained in connection with such offering by Rockwell or each such
underwriter (collectively, the “Inspectors”), financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably necessary, or as shall
otherwise be reasonably requested, to enable them to exercise due diligence in connection with such Registration Statement, and cause the officers, directors and employees of the Company and its subsidiaries to supply all information in each case
reasonably requested by any such Representative, underwriter, attorney, agent or accountant in connection with such Registration Statement; provided, however, that the Company shall not be required to provide any information under this
Section 2.7(a)(viii) to the extent that either (1) the Company has obtained confidential treatment of such information from the SEC or (2) the Company reasonably determines in good faith that such Records are
confidential and so notifies the 

 
Inspectors in writing, unless, with respect to clause (1) or (2), Rockwell enters into, and causes each of its Inspectors to enter into, a confidentiality agreement on terms and conditions
reasonably acceptable to the Company; provided, further, that Rockwell agrees that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction or by another Governmental Authority, give notice
to the Company and allow the Company, at its expense, to undertake appropriate action to the extent practicable seeking to prevent disclosure of the Records deemed confidential; 

(ix)    as promptly as practicable notify in writing Rockwell and the underwriters, if any, of the
following events: (A) the filing of the Resale Shelf Registration Statement, any amendment thereto, the prospectus or any prospectus supplement related thereto or post-effective amendment to the Resale Shelf Registration Statement and/or
replacement shelf registration statement or any Free Writing Prospectus utilized in connection therewith, and, with respect to the Resale Shelf Registration Statement or any post-effective amendment thereto and/or replacement shelf registration
statement, when the same has become effective; (B) the receipt of any written comments from the SEC or any request by the SEC or any other U.S. or state Governmental Authority for amendments or supplements to the Resale Shelf Registration
Statement or the prospectus or for additional information; (C) when the Resale Shelf Registration Statement or any amendment thereto becomes effective; (D) the issuance by the SEC of any stop order suspending the effectiveness of the
Resale Shelf Registration Statement or the initiation of any proceedings by any Person for that purpose; (E) the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for
sale under the securities or “blue sky” laws of any jurisdiction or the initiation or threat of any proceeding for such purpose; (F) if at any time the representations and warranties of the Company contained in any mutual agreement
(including any underwriting agreement) contemplated by Section 2.7(a)(vi) cease to be true and correct in any material respect; and (G) upon the happening of any event that makes any statement made in such Resale Shelf
Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Resale Shelf Registration Statement,
prospectus or documents so that, in the case of the Resale Shelf Registration Statement, it will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the prospectus, it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, in the case of clause (G), that such notice need not include the nature or details concerning such event; 

(x)    use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of such Resale Shelf Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction at the earliest reasonable
practicable date, except that the Company shall not for any such purpose be required to (A) qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this clause (ix) be
obligated to be so qualified, (B) subject itself to taxation in any such jurisdiction or (C) file a general consent to service of process in any such jurisdiction; 

(xi)    cooperate with Rockwell and each underwriter or agent participating in the disposition of such
Registrable Securities and their respective counsel in 

 
connection with any filings required to be made with the Financial Industry Regulatory Authority, Inc.; 

(xii)    have appropriate officers of the Company prepare and make presentations at a reasonable number of
“road shows” and before analysts and rating agencies, as the case may be, and other information meetings reasonably organized by the underwriters, take other actions to obtain ratings for any Registrable Securities (if they are eligible to
be rated) and otherwise use its commercially reasonable efforts to cooperate as reasonably requested by Rockwell and the underwriter(s) in the offering, marketing and selling of the Registrable Securities; provided, however, that the
scheduling of any such “road shows” and other meetings shall not unduly interfere with the normal operations of the business of the Company; 

(xiii)    if reasonably requested by counsel to Rockwell, (i) promptly incorporate in a prospectus
supplement or post-effective amendment to the Resale Shelf Registration Statement such information as the Company reasonably agrees (upon advice of counsel) is required to be included therein and (ii) make all required filings of such
prospectus supplement or such post-effective amendment promptly after the Company has received notification of the matters to be incorporated in such prospectus supplement or post-effective amendment and has agreed to their inclusion in the Resale
Shelf Registration Statement; and 
 (xiv)    take all other actions reasonably requested by Rockwell or
the lead managing underwriter(s) to effect the intent of this Agreement. 
 3.    Suspension of Registration
Requirement; Market Standstill. 
 3.1    The Company shall promptly notify Rockwell in writing of the issuance by
the SEC of any stop order suspending the effectiveness of a Registration Statement with respect to the Registrable Securities or the initiation of any proceedings for that purpose. The Company shall use commercially reasonable efforts to obtain the
withdrawal of any order suspending the effectiveness of a Registration Statement as promptly as reasonably possible and promptly notify in writing Rockwell of the withdrawal of any such order. 

3.2    At any time when a Prospectus relating to a Registration Statement is required to be delivered under the Securities
Act to a transferee, the Company shall notify Rockwell (A) of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and, in such event, (B) to suspend sales of Registrable Securities,
and Rockwell will refrain from selling any Registrable Securities pursuant to such Registration Statement until Rockwell is advised in writing by the Company that the current Prospectus may be used and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In such event, unless such event constitutes a Suspension Event (as defined below), the Company shall promptly, and in any event within ten
(10) Business Days after giving such notice to the Company, prepare and file a supplement to or an amendment of such Prospectus as may be necessary so that, as supplemented or amended, such Prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which 

 
they are made, not misleading. The Company shall, if necessary, promptly, and in any event within ten (10) Business Days after giving such notice, amend the Registration Statement of which
such Prospectus is a part to reflect such amendment or supplement. The Company shall promptly notify Rockwell in writing when the current Prospectus may be used. 

3.3    Subject to the terms of Section 4, the Company’s obligation under this Agreement to
file, amend or supplement a Registration Statement, or to cause a Registration Statement, or any filings with any state securities commission, to become effective, shall be deferred, for one or more reasonable periods, each of which may not exceed
forty-five (45) days, if the Board of Directors of the Company determines in good faith that such deferral is in the best interest of the Company and its stockholders in order to avoid the disclosure of information not otherwise then required
by Law (in the absence of a registration or sales thereunder) to be publicly disclosed (such circumstances being hereinafter referred to as a “Suspension Event”). The Company shall notify Rockwell of the existence of any Suspension
Event by promptly delivering to Rockwell a certificate signed by an executive officer of the Company (“Suspension Event Certificate”) stating that a Suspension Event has occurred and is continuing and setting forth the duration of
such Suspension Event (not to exceed forty-five (45) days from delivery of the Suspension Event Certificate) or, if such duration is not known, the anticipated duration of such Suspension Event (not to exceed forty-five (45) days from the
delivery of the Suspension Event Certificate). If the Suspension Event Certificate does not set forth a definitive duration of the Suspension Event, then upon the earlier of (i) forty-five (45) days following delivery of the
Suspension Event Certificate or (ii) the conclusion of the Suspension Event, the Company shall notify Rockwell in writing of the termination of the Suspension Event. Notwithstanding anything herein to the contrary, the Company shall not be
entitled to give notice of a second or subsequent Suspension Event until at least one hundred twenty (120) days has passed from the expiration of the immediately preceding Suspension Event. 

3.4    Subject to the terms of Section 4, Rockwell agrees, if requested by the managing
underwriter or underwriters in a Company-initiated underwritten offering of Common Stock registered under the Securities Act (each, a “Company Offering”), not to effect any public sale or distribution of any of the Registrable
Securities during an Offering Blackout Period (as defined below), provided that the Company is actively employing commercially reasonable efforts to cause the registration statement associated with such Offering Blackout Period to be effective, if
it has not already become effective; provided, however, that the foregoing restriction shall apply to Rockwell for a Company Offering only if and to the extent that all directors and executive officers of the Company are subject to the same
restriction for that Company Offering. The Company shall use commercially reasonable efforts to give written notice to Rockwell of any Offering Blackout Period at least fifteen (15) days prior to the commencement of the Offering Blackout
Period; provided, however, that if the Company is unable to provide fifteen (15) days advance notice of the commencement of the Offering Blackout Period, the Company shall provide as much notice as reasonably possible, and
provided further that the failure to timely provide such notice shall not in any way prohibit the commencement of an Offering Blackout Period. The “Offering Blackout Period” shall commence on a date set by the Company,
which shall be no earlier than the fifth (5th) day preceding the anticipated date of pricing of such Company Offering, and shall end on the ninetieth (90th) day, or such sooner date as is
requested by the managing underwriter or underwriters of such Company Offering, after the closing date of such Company Offering. 

 4.    Limitations on Suspension/Blackout Periods.
Notwithstanding anything herein to the contrary, the Company covenants and agrees that (a) the Company’s rights to defer certain of its obligations pursuant to Section 3.3 during the pendency of any Suspension
Event, and (b) Rockwell’s obligation to suspend public sales of Registrable Securities pursuant to Section 3.4 during one or more Offering Blackout Periods shall not, in the aggregate, cause Rockwell to be
required to suspend sales of Registrable Securities or relieve the Company of its obligation to file a Registration Statement for longer than sixty (60) days, and an Offering Blackout Period may not be called more than once in any period of
twelve (12) consecutive months. 
 5.    Termination of Registration Rights. The rights granted
pursuant to Section 2 shall terminate, as to Rockwell, at such time at which Rockwell no longer holds any Registrable Securities. 

6.    State Securities Laws and Sale Procedures. 

6.1    The Company shall use its reasonable best efforts to file documents required of the Company for normal blue sky
clearance in states specified in writing by Rockwell; provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has
not so consented. 
 6.2    Rockwell agrees that it will not effect any disposition of the Registrable Securities that
would constitute a sale within the meaning of the Securities Act other than transactions exempt from the registration requirements of the Securities Act or as contemplated in a Registration Statement. 

7.    Indemnification by the Company. The Company agrees to indemnify and hold harmless Rockwell and
Rockwell’s officers, directors, employees, agents, representatives and Affiliates, and each Person, if any, that controls Rockwell within the meaning of the Securities Act, and each other Person, if any, subject to liability because of his, her
or its connection with Rockwell (each, an “Indemnitee”), against any and all out-of-pocket losses, claims, damages, actions, liabilities, costs, and
expenses (including without limitation reasonable fees, expenses and disbursements of attorneys and other professionals) arising out of or based upon (i) any violation (or alleged violation) by the Company of the Securities Act, the Exchange
Act or state securities laws and relating to action or inaction required of the Company under the terms of this Agreement or in connection with any Registration Statement or Prospectus; (ii) an untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or any Prospectus; (iii) an omission to state or alleged omission to state in any Registration Statement a material fact required to be stated therein or necessary to make the statements
therein not misleading; or (iv) an omission to state or alleged omission to state in a Prospectus a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that the Company shall not be liable to such Indemnitee or any Person who participates as an underwriter or as a Representative of an underwriter in the offering or sale of Registrable Securities or any other Person
who controls such underwriter within the meaning of the Securities Act, in any such case, to the extent that any such loss, claim, damage, action, liability, cost or expense (each, a “Loss”) arises

 
out of or is based upon (a) an untrue statement or omission or alleged untrue statement or omission made in such Registration Statement or in any such Prospectus in reliance upon and in
conformity with information regarding such Indemnitee or its plan of distribution or ownership interests that was furnished in writing to the Company expressly for use in connection with such Registration Statement or the Prospectus contained
therein by such Indemnitee, (b) Rockwell’s failure to send or give a copy of the final, amended or supplemented prospectus furnished to Rockwell by the Company at or prior to the time such action is required by the Securities Act to the
Person claiming an untrue statement or alleged untrue statement or omission or alleged omission if such statement or omission was corrected in such final, amended or supplemented Prospectus, or (c) an untrue statement or alleged untrue
statement contained in any offer made by Rockwell relating to the Registrable Securities that constitutes a Free Writing Prospectus prepared by or on behalf of Rockwell. The foregoing indemnity shall remain in full force and effect regardless of any
investigation made by any Person and shall survive the sale of all securities registered pursuant to Section 2. 

8.    Covenants of Rockwell. Rockwell hereby agrees (i) to cooperate with the Company and to furnish to
the Company the information concerning Rockwell, its plan of distribution and its ownership interests in securities of the Company in connection with the preparation of a Registration Statement or Prospectus with respect to Rockwell’s
Registrable Securities and any filings with any state securities commissions as the Company may reasonably request (and to promptly notify the Company of any material changes in such information set forth in a Registration Statement prior to and
during the effectiveness of such Registration Statement), (ii) that it will not make any offer relating to the Registrable Securities that would constitute a Free Writing Prospectus, and (iii) to indemnify the Company, its officers, directors,
employees, agents, representatives and Affiliates, and each Person, if any, that controls the Company within the meaning of the Securities Act, and each other Person, if any, subject to liability because of his, her or its connection with the
Company, against any and all Losses arising out of or based upon (A) an untrue statement or alleged untrue statement of a material fact contained in either such Registration Statement or the Prospectus contained therein, an omission or alleged
omission to state in such Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading, or an omission or alleged omission to state in such Prospectus a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading, if and to the extent that such statement or omission occurs from reliance upon and in conformity with information regarding Rockwell
or its plan of distribution or its ownership interests that was furnished in writing to the Company by Rockwell expressly for use therein, or (B) an untrue statement or alleged untrue statement contained in any offer made by Rockwell relating
to the Registrable Securities that constitutes a Free Writing Prospectus prepared by or on behalf of Rockwell. The foregoing indemnity shall remain in full force and effect regardless of any investigation made by any Person and shall survive the
sale of all securities registered pursuant to Section 2. 
 9.    Indemnification
Procedures. Any Person entitled to indemnification under this Agreement shall promptly, and in any event within five (5) Business Days, notify the indemnifying party in writing of the commencement of any action, proceeding or investigation
of which such Person has actual knowledge and with respect to which a claim for indemnification may be made hereunder, but the failure of any indemnified party to provide such notice shall not 

 
relieve the indemnifying party of its obligations hereunder, except and only to the extent the indemnifying party is materially prejudiced thereby, and shall not relieve the indemnifying party
from any liability which it may have to any indemnified party otherwise than hereunder. In case any action or proceeding is brought against an indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to participate therein at its own expense and, unless in the indemnified party’s reasonable judgment a conflict of interest exists in respect of such Loss, to assume and direct the defense thereof, to the extent that it
so chooses, with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to such indemnified party that it chooses to assume and direct the defense of such an action, proceeding or investigation, the
indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof, provided that any Person entitled to indemnification
hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (A) the indemnifying party has agreed
in writing to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such Person within a reasonable time, (C) the indemnified party has
reasonably concluded (based upon advice of its counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, or (D) in the reasonable
judgment of any such Person (based upon advice of its counsel) a conflict of interest may exist between such Person and the indemnifying party with respect to such claims (in which case, if the Person notifies the indemnifying party in writing that
such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person, but shall always be permitted to participate in
such defense. No indemnifying party shall, without the written consent of the indemnified party (which shall not be unreasonably withheld), effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any action
or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out of such action or claim, (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party
and (iii) does not and is not likely to materially adversely affect the indemnified party. 

10.    Contribution. If the indemnification provided for in Section 7 or 8
shall for any reason be unavailable in respect of any Loss, then, in lieu of the amount paid or payable thereunder, the indemnified party and the indemnifying party shall contribute to the aggregate Losses in such proportion as is appropriate to
reflect the relative fault of the Company and of the other Persons indemnifying or indemnified for such Losses with respect to the statements, omissions or actions that resulted in such Losses, as well as any other equitable considerations. The
relative fault of the indemnifying party on the one hand and the indemnified party on the other hand shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Parties agree that it would not be necessarily equitable 

 
if contribution pursuant to this Section were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in
this Section. The amount contributed by an Indemnitee shall on no account exceed the proceeds of the resale of Registrable Securities by such Indemnitee. In addition, no Person shall be obligated to contribute amounts under this
Section 10 in payment for any settlement of any Loss effected without such Person’s consent. No Person guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) shall be
entitled to contribution from any Person not guilty of such fraudulent misrepresentation. The remedy provided for in this Section 10 is not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified
party at law or in equity. 
 11.    Expenses and Payments. The Company shall bear all expenses incurred
in connection with the registration of the Registrable Securities pursuant to Section 2 and the administration of the registration program hereunder, including (i) all registration and filing fees, all Nasdaq listing
fees for the Shares, and any other fees and expenses associated with filings required to be made with the SEC or FINRA, (ii) all fees and expenses in connection with compliance with any securities or “Blue Sky” laws, (iii) all
printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates for the Registrable Securities in a form eligible for deposit with The Depository Trust Company and of
printing prospectuses), (iv) all fees and disbursements of counsel for the Company and of Rockwell and of all independent certified public accountants of the Company (including the expenses of any special audit and cold comfort letters required
by or incident to such performance), (v) all reasonable out-of-pocket expenses related to any “road show” for an offering, including all travel, meals and
lodging, and (vi) all of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties); but excluding all fees and disbursements of underwriters customarily paid
by sellers of securities and all underwriting discounts and commissions and transfer taxes, if any, attributable to the sale of Registrable Securities. All expenses relating to the offer and sale of Registrable Securities not to be borne by the
Company pursuant to the foregoing sentence shall be borne and paid by Rockwell. The payments required by Section 7, 8 and 10 shall be made periodically during the course of any action, proceeding or
investigation, as and when any Loss is incurred. 
 12.    Assignment. Neither this Agreement nor any
right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable by any Party without the prior written consent of the other Party, and any attempt to assign any right, remedy, obligation or liability hereunder
without such consent shall be void; provided, however, that Rockwell may assign any or all of its rights hereunder to any Affiliate so long as such Affiliate agrees to be bound by the terms hereof. Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 

13.    No Other Obligation to Register. Except as otherwise expressly provided in this Agreement, the
Company shall have no obligation to Rockwell to register the Registrable Securities under the Securities Act. 

 14.    Rule 144 Reporting. With a view to making available the
benefits of certain rules and regulations of the SEC that may permit the sale of the Registrable Securities to the public without registration, the Company agrees to (a) make and keep adequate current public information available pursuant to
paragraph (c) of Rule 144 and (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act. 

15.    Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly
given (a) on the date of delivery if delivered personally, or if by facsimile or e mail, upon written confirmation of receipt by facsimile, e mail or otherwise, (b) on the first Business Day following the date of dispatch if delivered
utilizing a next-day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date of mailing if
delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice pursuant to this Section: 
 if to the Company, to: 

PTC Inc. 
 140 Kendrick Street

 Needham, MA 02494 

Attention: President & CEO 

E-mail: ir@ptc.com 

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

Goodwin Procter LLP 
 100
Northern Avenue 
 Boston, Massachusetts 02210 

Facsimile: (617) 801-8906 

Attention: Stuart M. Cable 

                 Robert P. Whalen, Jr. 

E-mail: SCable@goodwinlaw.com 

             RWhalen@goodwinlaw.com 

if to Rockwell, to: 
 Rockwell
Automation Inc. 
 1201 South 2nd Street 

Milwaukee, WI 53204 
 Facsimile:
414-382-8421 
 Attention: General Counsel 

E-mail: RWHouse@ra.rockwell.com 

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

 Foley & Lardner LLP 

777 East Wisconsin Avenue 

Milwaukee, WI 53202 
 Facsimile:
414-297-4900 
 Attention: Jay O. Rothman 

                 Patrick G. Quick 

E-mail: jrothman@foley.com 

             pgquick@foley.com 

16.    Amendments; Waiver. Except insofar as assignments are permitted under this Agreement, this Agreement
may not be modified or amended except pursuant to an instrument in writing signed by the Company and Rockwell. Any waiver of a provision of this Agreement must be in writing and executed by the Party against whom enforcement of such waiver is
sought. 
 17.    Headings. The headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be part of this Agreement. 
 18.    Entire
Agreement; Severability. This Agreement, the Securities Purchase Agreement, the Strategic Alliance Agreement and the Confidentiality Agreement set forth the entire agreement and understanding of the parties relating to the subject matter hereof
and supersede all prior and contemporaneous agreements, negotiations and understandings between the parties, both oral and written relating to the subject matter hereof. If any provision contained in this Agreement is determined to be invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 

19.    Governing Law; Jurisdiction. This Agreement will be governed by and interpreted in accordance with
the laws of the State of New York. Each Party hereby irrevocably submits to the exclusive jurisdiction of any New York state or federal court sitting in the Borough of Manhattan in The City of New York (or, if such court lacks subject matter
jurisdiction, in any appropriate New York state or federal court) for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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. 

20.    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute 

 
but one instrument, and shall become effective when one or more counterparts have been signed by each Party hereto and delivered to the other Party. 

21.    Drafting Conventions; No Construction Against the Drafter. 

21.1    The headings in this Agreement are provided for convenience and do not affect its meaning. The words
“include”, “includes” and “including” are to be read as if they were followed by the phrase “without limitation”. Unless specified otherwise, any reference to an agreement means that agreement as amended or
supplemented, subject to any restrictions on amendment contained in such agreement. Unless specified otherwise, any reference to a statute or regulation means that statute or regulation as amended or supplemented from time to time and any
corresponding provisions of successor statutes or regulations. If any date specified in this Agreement as a date for taking action falls on a day that is not a Business Day, then that action may be taken on the next Business Day. 

21.2    The Parties have participated jointly with their respective counsel in the negotiation and drafting of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement is to be construed as if drafted jointly by the Parties and there is to be no presumption or burden of proof favoring or disfavoring any Party because of the
authorship of any provision of this Agreement. 
 22.    Equitable Relief; Enforcement. The Parties agree
that irreparable damage would occur in the event that any of the applicable provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each Party shall be entitled to specific
performance of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any New York state or federal court sitting in the Borough of
Manhattan in the City of New York (or, if such court lacks subject matter jurisdiction, in any appropriate New York state or federal court), this being in addition to any other remedy to which such party is entitled at law or in equity. Each Party
hereby further waives (a) any defense in any action for specific performance that a remedy at law would be adequate and (b) any requirement under any law to post security as a prerequisite to obtaining equitable relief. 

23.    Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

24.    Time of Essence. Time is of the essence with regard to all dates and time periods set forth or
referred to in this Agreement. 
 [Signature Page Follows] 

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

			
	PTC INC.
		
	By: 	 	/s/ James Heppelmann
	 	 	James Heppelmann
	 	 	President & Chief Executive Officer
	
	ROCKWELL AUTOMATION, INC.
		
	By:	 	/s/ Rebecca W. House
	 	 	Rebecca W. House
	 	 	 Senior Vice President, General Counsel
 and
Secretary

  
 [Signature Page to Registration
Rights Agreement]

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