Document:

EXHIBIT 10.13

 

Execution Version

	
 
    

 

SERIES 2016-5 ACCOUNT CONTROL AGREEMENT

 

among

 

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A,
 as Grantor

 

THE BANK OF NEW YORK MELLON,
  as Secured Party

 

and

 

THE BANK OF NEW YORK MELLON,
  as Financial Institution

 

Dated as of December 1, 2016

	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   USAGE AND DEFINITIONS
    	
2
    
	
Section 1.1.
    	
Usage and Definitions
    	
2
    
	
 
    	
 
    
	
ARTICLE II   ESTABLISHMENT OF COLLATERAL ACCOUNTS 
    	
2
    
	
Section 2.1.
    	
Description of Accounts
    	
2
    
	
Section 2.2.
    	
Account Changes
    	
3
    
	
Section 2.3.
    	
Account Types
    	
3
    
	
Section 2.4.
    	
Securities Accounts
    	
3
    
	
 
    	
 
    
	
ARTICLE III   SECURED PARTY CONTROL
    	
3
    
	
Section 3.1.
    	
Control of Collateral   Accounts
    	
3
    
	
Section 3.2.
    	
Investment Instructions
    	
3
    
	
Section 3.3.
    	
Conflicting Orders or   Instructions
    	
4
    
	
 
    	
 
    
	
ARTICLE IV   SUBORDINATION OF LIEN; WAIVER OF SET-OFF
    	
4
    
	
Section 4.1.
    	
Subordination
    	
4
    
	
Section 4.2.
    	
Set-off and Recoupment
    	
4
    
	
 
    	
 
    
	
ARTICLE V   REPRESENTATIONS, WARRANTIES AND COVENANTS
    	
4
    
	
Section 5.1.
    	
Financial Institution’s   Representations and Warranties
    	
4
    
	
Section 5.2.
    	
Financial Institution’s   Covenants
    	
5
    
	
 
    	
 
    
	
ARTICLE VI   OTHER AGREEMENTS
    	
5
    
	
Section 6.1.
    	
Location of Financial   Institution
    	
5
    
	
Section 6.2.
    	
Reliance by Financial Institution
    	
5
    
	
Section 6.3.
    	
Termination and   Replacement of Financial Institution
    	
5
    
	
Section 6.4.
    	
No Petition
    	
6
    
	
Section 6.5.
    	
Limitation of Liability
    	
6
    
	
Section 6.6.
    	
Conflict With Other   Agreement
    	
6
    
	
Section 6.7.
    	
Termination
    	
6
    
	
 
    	
 
    
	
ARTICLE VII   MISCELLANEOUS
    	
6
    
	
Section 7.1.
    	
Amendment
    	
6
    
	
Section 7.2.
    	
Benefit of Agreement
    	
7
    
	
Section 7.3.
    	
Notices
    	
7
    
	
Section 7.4.
    	
GOVERNING LAW
    	
8
    
	
Section 7.5.
    	
Submission to   Jurisdiction
    	
8
    
	
Section 7.6.
    	
WAIVER OF JURY TRIAL
    	
8
    
	
Section 7.7.
    	
No Waiver; Remedies
    	
8
    
	
Section 7.8.
    	
Severability
    	
8
    
	
Section 7.9.
    	
Headings
    	
8
    
	
Section 7.10.
    	
Counterparts
    	
8
    

 

i

 

SERIES 2016-5 ACCOUNT CONTROL AGREEMENT, dated as of December 1, 2016 (this “Agreement”), among FORD CREDIT FLOORPLAN MASTER OWNER TRUST A, a Delaware statutory trust, as grantor (the “Grantor”), THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee for the benefit of the Series 2016-5 Noteholders (in this capacity, the “Secured Party”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, in its capacity as both a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC (in these capacities, the “Financial Institution”).

 

BACKGROUND

 

The Grantor is engaging in a securitization transaction in which it will issue the Series 2016-5 Notes under an Indenture Supplement to an Indenture and the Secured Party will hold funds in bank accounts for the benefit of the Series 2016-5 Noteholders.

 

The parties are entering into this Agreement to perfect the security interest in the bank accounts.

 

The parties agree as follows:

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.           Usage and Definitions.  Capitalized terms used but not defined in this Agreement are defined in (a) Appendix A to the Series 2016-5 Indenture Supplement, dated as of December 1, 2016 (the “Indenture Supplement”), between the Grantor, as Issuer, and The Bank of New York Mellon, as Indenture Trustee, or (b) Appendix A to (i) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan Corporation, as Depositor, the Grantor, as Issuer, and Ford Motor Credit Company LLC, as Servicer, and (ii) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan LLC, as Depositor, the Issuer and the Servicer.  Each Appendix A also contains usage rules that apply to this Agreement.  Each Appendix A is incorporated by reference into this Agreement.  References to the “UCC” mean the Uniform Commercial Code as in effect in the State of New York.

 

ARTICLE II
 ESTABLISHMENT OF COLLATERAL ACCOUNTS

 

Section 2.1.           Description of Accounts.  The Financial Institution has established the following accounts (each, a “Collateral Account”):

 

“Series 2016-5 Principal Funding Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2016-5” with account number 3619208400;

 

2

 

“Series 2016-5 Reserve Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2016-5” with account number 3619168400; and

 

“Series 2016-5 Accumulation Period Reserve Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2016-5” with account number 3619348400.

 

Section 2.2.           Account Changes.  Neither the Financial Institution nor the Grantor will change the name or account number of a Collateral Account without the consent of the Secured Party.  The Financial Institution will promptly notify the Servicer of any changes.  This Agreement will apply to each successor account to a Collateral Account, which will also be a Collateral Account.

 

Section 2.3.           Account Types.  The Financial Institution agrees that each Collateral Account is, and will be maintained as, either a “securities account” (as defined in Section 8-501 of the UCC) or a “deposit account” (as defined in Section 9-102(a)(29) of the UCC).

 

Section 2.4.           Securities Accounts.  If a Collateral Account is a securities account, the Financial Institution agrees that:

 

(a)           Financial Assets.  It will promptly credit each item of property (whether cash, investment property, security, instrument or other financial asset) delivered to the Financial Institution under the Indenture Supplement to the Collateral Account and treat each item of property as a “financial asset” (within the meaning of Section 8-102(a)(9) of the UCC); and

 

(b)           Registration and Indorsement.  It will ensure that all financial assets (other than cash) credited to the Collateral Account are registered in the name of the Financial Institution, indorsed to the Financial Institution or in blank or credited to another securities account maintained in the name of the Financial Institution and that no financial asset credited to the Collateral Account is registered in the name of the Grantor, payable to the order of the Grantor or specially indorsed to the Grantor unless it has been indorsed to the Financial Institution or in blank.

 

ARTICLE III
 SECURED PARTY CONTROL

 

Section 3.1.           Control of Collateral Accounts.  To establish “control” of the Collateral Accounts by the Secured Party under Sections 9-104 and 9-106 of the UCC, the Financial Institution agrees to comply with any order or instruction from the Secured Party directing the deposit, withdrawal, transfer or redemption of the cash or other financial assets credited to a Collateral Account (a “Secured Party Order”) without the need for consent by the Grantor or any other Person.

 

Section 3.2.           Investment Instructions.  If (a) the Financial Institution has not received a Secured Party Order for the investment of funds in a Collateral Account by 11:00 a.m. New York time (or another time agreed to by the Financial Institution) on the Business Day before a Payment Date or (b) the Financial Institution receives notice from the Indenture Trustee that a

 

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Default or Event of Default has occurred and is continuing for the Series 2016-5 Notes, the Financial Institution will invest and reinvest funds in the Collateral Account according to the last investment instruction received, if any.  If no prior investment instructions have been received or if the instructed investments are no longer available or permitted, the Indenture Trustee will notify the Servicer and request new investment instructions, and the funds will remain uninvested until new investment instructions are received.

 

Section 3.3.           Conflicting Orders or Instructions.  If the Financial Institution receives conflicting orders or instructions from the Secured Party and the Grantor or any other Person, the Financial Institution will follow the orders or instructions of the Secured Party and not the Grantor or such other Person.

 

ARTICLE IV
 SUBORDINATION OF LIEN; WAIVER OF SET-OFF

 

Section 4.1.           Subordination.  If the Financial Institution has, or later obtains, a security interest in a Collateral Account (or any portion of a Collateral Account), the Financial Institution agrees that the security interest will be subordinate to the security interest of the Secured Party.

 

Section 4.2.           Set-off and Recoupment.  The cash, investment property, security, instrument or other financial assets credited to a Collateral Account will not be subject to deduction, set-off, recoupment, banker’s lien, or other right in favor of a Person other than the Secured Party.  However, the Financial Institution may set off (a) the customary fees and expenses for the routine maintenance and operation of the Collateral Account due to the Financial Institution, (b) the face amount of checks credited to the Collateral Account but subsequently returned unpaid due to uncollected or insufficient funds and (c) advances made to settle an investment of funds in the Collateral Account.

 

ARTICLE V
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section 5.1.           Financial Institution’s Representations and Warranties.  The Financial Institution represents and warrants to the Grantor and the Secured Party as follows:

 

(a)           Enforceability.  This Agreement is the legal, valid and binding obligation of the Financial Institution.

 

(b)           No Agreements with Grantor.  There are no agreements between the Financial Institution and the Grantor relating to a Collateral Account other than this Agreement, the Indenture Supplement and the other Series 2016-5 Transaction Documents.

 

(c)           No Other Agreements.  The Financial Institution has not entered into an agreement relating to a Collateral Account in which it has agreed to comply with “entitlement orders” (as defined in Section 8-102(a)(8) of the UCC) or “instructions” (within the meaning of Section 9-104 of the UCC) of any Person other than the Secured Party.

 

4

 

(d)           No Limitations.  The Financial Institution has not entered into an agreement limiting or conditioning the Financial Institution’s obligation to comply with any Secured Party Order.

 

(e)           No Liens.  Except for the claims and interests of the Secured Party and the Grantor, the Financial Institution does not know of a lien on, or claim to, or interest in, a Collateral Account or in the cash or other financial assets credited to a Collateral Account.

 

Section 5.2.           Financial Institution’s Covenants.

 

(a)           Statements, Confirmations and Other Correspondence.  The Financial Institution will promptly deliver copies of statements, confirmations and correspondence about the Collateral Accounts and the cash or other financial assets credited to a Collateral Account to the Grantor and the Secured Party.

 

(b)           Notice of Claim.  If a Person asserts a lien, encumbrance or claim against a Collateral Account (or in the cash or other financial assets credited to a Collateral Account), the Financial Institution will promptly notify the Secured Party.

 

(c)           Negative Covenants.  Until the termination of this Agreement, the Financial Institution will not enter into (i) an agreement relating to a Collateral Account in which it agrees to comply with entitlement orders or instructions of any Person other than the Secured Party or (ii) an agreement limiting or conditioning the Financial Institution’s obligation to comply with Secured Party Orders.

 

ARTICLE VI
 OTHER AGREEMENTS

 

Section 6.1.           Location of Financial Institution.  For purposes of the UCC, New York will be the location of (i) the bank for purposes of Sections 9-301, 9-304 and 9-305 of the UCC and (ii) the securities intermediary for purposes of Sections 9-301 and 9-305 and Section 8-110 of the UCC.

 

Section 6.2.           Reliance by Financial Institution.  The Financial Institution is not obligated to investigate or inquire whether the Secured Party may deliver a Secured Party Order.  The Financial Institution may rely on communications (including Secured Party Orders) believed by it in good faith to be genuine and given by the proper party.

 

Section 6.3.           Termination and Replacement of Financial Institution.  The Financial Institution may terminate its rights and obligations under this Agreement if the Secured Party resigns or is removed as Indenture Trustee under the Indenture Supplement and the Indenture.  The Grantor may terminate the rights and obligations of the Financial Institution if the Financial Institution ceases to be a Qualified Institution.  No termination of the Financial Institution will be effective until new Collateral Accounts are established with, and the cash and other financial assets credited to the Collateral Accounts are transferred to, another securities intermediary who has agreed to accept the obligations of the Financial Institution under this Agreement or a similar agreement.

 

5

 

Section 6.4.           No Petition.  Each party agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by either Depositor or by a trust for which either Depositor was a depositor or (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) either Depositor or (ii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 6.4 will survive the termination of this Agreement.

 

Section 6.5.           Limitation of Liability.

 

(a)           Financial Institution.  The Financial Institution will not be liable under this Agreement, except for (i) its own willful misconduct, bad faith or negligence or (ii) breach of its representations and warranties in this Agreement.  The Financial Institution will not be liable for special, indirect or consequential losses or damages (including lost profit), even if the Financial Institution has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

(b)           Secured Party.  In performing its obligations under this Agreement, the Secured Party is subject to, and entitled to the benefits of, the terms of the Indenture Supplement and the Indenture that apply to the Indenture Trustee.

 

(c)           Owner Trustee.  This Agreement has been signed on behalf of the Grantor by U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as Owner Trustee of the Grantor.  In no event will U.S. Bank Trust National Association in its individual capacity or a beneficial owner of the Grantor be liable for the Grantor’s obligations under this Agreement.  For all purposes under this Agreement, the Owner Trustee is subject to, and entitled to the benefits of, the Trust Agreement.

 

Section 6.6.           Conflict With Other Agreement.  If there is a conflict between this Agreement and any other agreement relating to a Collateral Account, this Agreement will govern.

 

Section 6.7.           Termination.  This Agreement will terminate on the date the security interests of the Secured Party in each Collateral Account are terminated under the Indenture Supplement and the Indenture and the Secured Party has notified the Financial Institution of the termination of the security interest.  The termination of this Agreement will not terminate a Collateral Account or change the obligations of the Financial Institution to the Grantor relating to a Collateral Account.

 

ARTICLE VII
 MISCELLANEOUS

 

Section 7.1.           Amendment.

 

(a)           Amendments.  The parties may amend this Agreement:

 

(i)    to clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this

 

6

 

Agreement, in each case without the consent of the Series 2016-5 Noteholders or any other Person;

 

(ii)           to add, change or eliminate terms of this Agreement, in each case without the consent of the Series 2016-5 Noteholders or any other Person, if the Administrator delivers an Officer’s Certificate to the Grantor, the Owner Trustee and the Indenture Trustee stating that the amendment will not have a material adverse effect on the Series 2016-5 Noteholders; or

 

(iii)          to add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 7.1(a)(ii), with the consent of the Series 2016-5 Noteholders of a majority of the Note Balance of each Class of Series 2016-5 Notes Outstanding (with each affected Class voting separately, except that all Series 2016-5 Noteholders of Class A Notes will vote together as a single class).

 

(b)           Notice of Amendments.  The Administrator will notify the Rating Agencies in advance of any amendment.  Promptly after the execution of an amendment, the Administrator will deliver a copy of the amendment to the Rating Agencies.

 

Section 7.2.           Benefit of Agreement.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  No other Person will have any right or obligation under this Agreement.

 

Section 7.3.           Notices.

 

(a)           Notices to Parties.  Notices, requests, directions, consents, waivers or other communications to or from the parties must be in writing and will be considered received by the recipient:

 

(i)            for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the recipient;

 

(ii)           for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)          for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)          for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

 

(b)           Notice Addresses.  A notice, request, direction, consent, waiver or other communication must be addressed to the recipient at its address stated in Schedule B to the Sale and Servicing Agreements, which address the party may change by notifying the other parties.

 

7

 

Section 7.4.           GOVERNING LAW.  THIS AGREEMENT AND EACH COLLATERAL ACCOUNT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.5.           Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Agreement.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

 

Section 7.6.           WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDINGS RELATING TO THIS AGREEMENT.

 

Section 7.7.           No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law.

 

Section 7.8.           Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 7.9.           Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.10.         Counterparts.  This Agreement may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

8

 

EXECUTED BY:

 

	
 
    	
FORD CREDIT FLOORPLAN MASTER OWNER TRUST A, as   Grantor
    
	
 
    	
 
    
	
 
    	
By: U.S. Bank Trust National Association, not in   its individual capacity   but solely as Owner Trustee of Ford Credit Floorplan Master Owner Trust A
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Melissa Rosal
    
	
 
    	
 
    	
Name:
    	
Melissa Rosal
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON,
    
	
 
    	
as   Secured Party
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Esther Antoine
    
	
 
    	
 
    	
Name:
    	
Esther Antoine
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON,
    
	
 
    	
as   Financial Institution
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Esther Antoine
    
	
 
    	
 
    	
Name:
    	
Esther Antoine
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
					

 

[Signature Page to Series 2016-5 Account Control Agreement]Exhibit 10.8.3

 

REPURCHASE AND FORFEITURE AGREEMENT

 

This REPURCHASE AND FORFEITURE AGREEMENT
(this “Agreement”) is made as of December [•], 2016, by and among (i) NeuroMetrix, Inc., a Delaware corporation
(the “Company”), (ii) the parties identified on Exhibit A hereto (the “Investors”).

 

WHEREAS, the Investors hold an aggregate
of 19,458.90 shares of the Company’s Series D Convertible Preferred Stock in the amounts identified on Exhibit A (the “Preferred
Stock”);

 

WHEREAS, the Investors are also the holders
of certain warrants that were issued between 2012 and 2016 to purchase an aggregate of 26,500,584 shares of Common Stock (the “Warrants”)
of the Company, par value $0.0001 per share (“Common Stock”), in the amounts and at the exercise price identified
on Exhibit A;

 

WHEREAS, the Company has filed a registration
statement on Form S-1 for the offer and sale of Class A units consisting of Common Stock and Warrants and Class B units consisting
of Series E Preferred Stock and warrants to purchase Common Stock of the Company (the “Offering”);

 

WHEREAS, the Investors have indicated
an interest in purchasing Class B units in the Offering, provided that the Company repurchases the Preferred Stock in connection
with the closing of the Offering; and

 

WHEREAS, in connection with the closing
of the Offering, the Company desires to repurchase from the Investors, and the Investors desire to sell to the Company, the Preferred
Stock (the “Repurchased Shares”) for an aggregate agreed upon purchase price of $19,458,900.00 (the “Repurchase
Price”) and, in connection with such transaction, the Investors have agreed to forfeit the Warrants identified on Exhibit
A.

 

NOW, THEREFORE, in consideration of the
mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

		1.	Repurchase of the Preferred Stock and Forfeiture of Warrants.

 

(a) At the closing of the Offering, the
Company hereby agrees to repurchase from the Investors, and the Investors hereby agree to sell, transfer and assign to the Company,
free and clear of any and all Encumbrances (as defined below), the Repurchased Shares at a price per share equal to $1,000.00,
and for an aggregate purchase price equal to the Repurchase Price. In addition, the Company and the Investors hereby acknowledge
that, on the date hereof, the Investors have forfeited the Warrants identified on Exhibit A under the caption “Securities
Repurchased and Forfeited in the Transaction”, which shall be null and void upon the closing of the Offering. The repurchase
of the Preferred Stock and the related forfeiture of the Warrants are collectively referred to herein as the “Transaction”.
The Transaction shall have no effect on the remaining Warrants or on any other securities of the Company held by the Investors,
which shall remain outstanding.

 

     

     

    

 

(b) On or prior to the Closing (as defined
below), each Investor hereby agrees to deliver to the Company:

 

(i) the certificate representing all of the Repurchased
Shares;

 

(ii) a duly executed stock assignment in the form attached
hereto as Exhibit B-1 and B-2, as applicable; and

 

(iii) certificate(s) representing Warrants to purchase
26,500,584 shares of Common Stock.

 

(c) Upon payment of the Repurchase Price,
the Preferred Stock shall cease to be outstanding for any and all purposes, and the Investors shall no longer have any rights as
a holder of the Preferred Stock.

 

(d) The closing of the Transaction (the
“Closing”) shall take place at the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., on the same
date and simultaneously with the closing of the Offering.

 

2. Representations and Warranties
of Investors. Each Investor hereby represents and warrants to the Company as follows:

 

(a) Ownership. All of the Repurchased
Shares and Warrants are owned of record and beneficially by each Investor, and each Investor has good and marketable title to the
Repurchased Shares, free and clear of any security interest, claims, liens, pledges, options, encumbrances, charges, agreements,
voting trusts, proxies or other arrangements or restrictions whatsoever (collectively, “Encumbrances”), except
for such legend and related transfer restrictions as are required under the Securities Act of 1933, as amended. As of the date
hereof, each Investor will deliver to the Company good and marketable title to the Repurchased Shares, free and clear of any Encumbrances.

 

(b) Legal Capacity. Each Investor
has full legal capacity to enter into and perform its obligations set forth in this Agreement. This Agreement, when executed and
delivered by each Investor, will constitute the valid and legally binding obligation of the Investor, enforceable in accordance
with its terms (except as enforceability may be limited by principles of public policy, applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally
or general principles of equity (regardless of whether considered and applied in a proceeding at law or in equity)).

 

(c) Conflicts. The execution, delivery
and performance of this Agreement by each Investor does not, and will not, conflict with or result in a breach of any agreement,
instrument, order, judgment, decree, law or governmental regulation to which Investor or the Repurchased Shares are subject.

 

(d) Acknowledgment. Each Investor
believes that it has received all the information it considers necessary or appropriate for deciding whether to sell the Preferred
Stock to the Company pursuant to this Agreement. Each Investor has not been induced to agree to and execute this Agreement by any
statement, act or representation of any kind or character by anyone, except as contained herein. Each Investor further represents
that such Investor has fully reviewed this Agreement and has full knowledge of its terms, and executes this Agreement of his or
her own choice and free will, after having received (or been given the opportunity to receive) the advice of his or her attorney(s).

 

     

     

    

 

		3.	Miscellaneous.

 

(a) All representations and warranties
contained herein or made in writing by any party in connection herewith will survive the execution and delivery of this Agreement
and the closing of the transactions contemplated hereby, regardless of any investigation made by the Company or on its behalf.

 

(b) This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York, without giving any effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of New York.

 

(c) This Agreement may be executed in
one or more counterparts (including signature pages by means of facsimile, emailed .pdf file or other similar form of electronic
transmission), all of which taken together shall constitute one and the same instrument.

 

(d) This Agreement contains the entire
agreement and understanding among the parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings, whether written or oral, relating to such subject matter in any way.

 

* * * * *

 

     

     

    

 

Signature Page to Repurchase and Forfeiture
Agreement 

 

IN WITNESS WHEREOF, the parties hereto
have executed this Repurchase Agreement on the date first written above.

 

	 	NEUROMETRIX, INC.
	 	 
	 	By:	 
	 	Name: Thomas T. Higgins
	 	Title: Chief Financial Officer
	 	 
	 	SABBY VOLATILITY WARRANT MASTER FUND, LTD.
	 	 
	 	By:	 
	 	Name:  Robert Grundstein
	 	Title:  COO of Investment Manager
	 	 
	 	SABBY HEALTHCARE MASTER FUND, LTD.
	 	 
	 	By:	 
	 	Name: Robert Grundstein
	 	Title:  COO of Investment Manager

 

     

     

    

 

Exhibit A

Investors

 

Securities Repurchased and Forfeited
in Transaction

 

	Holder	Series D Preferred

Stock

(to be repurchased)	Warrants to Purchase Common Stock

(to be forfeited)
	Sabby Volatility Warrant Master Fund, Ltd.	5,937.25	5,214 shares, Exercise Price $27.60, Original Issue Date February 13, 2012
	 	 	 
	 	 	58,501 shares, Exercise Price $8.00, Original Issue Date June 10, 2013
	 	 	 
	 	 	269,983 shares, Exercise Price $8.16, Original Issue Date June 26, 2014
	 	 	 
	 	 	1,138,500 shares, Exercise Price $5.00, Original Issue Date May 29, 2015
	 	 	 
	 	 	3,521,568 shares, Exercise Price $2.30, Original Issue Date December 31, 2015
	 	 	 
	 	 	3,839,335 shares, Exercise Price: $1.69, Original Issue Date: June 8, 2016
	Sabby Healthcare Master Fund, Ltd.	13,521.65	205,831 shares, Exercise Price $8.00, Original Issue Date June 10, 2013
	 	 	 
	 	 	317,473 shares, Exercise Price $8.16, Original Issue Date June 26, 2014
	 	 	 
	 	 	1,881,000 shares, Exercise Price $5.00, Original Issue Date May 29, 2015
	 	 	 
	 	 	7,301,960 shares, Exercise Price $2.30, Original Issue Date December 31, 2015
	 	 	 
	 	 	7,961,219 shares, Exercise Price: $1.69, Original Issue Date: June 8, 2016
	Total:	19,458.90	26,500,584

 

     

     

    

 

Exhibit B-1 

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, Sabby Volatility Warrant
Master Fund, Ltd. (“Investor”) does hereby sell, assign and transfer unto NeuroMetrix, Inc., a Delaware corporation
(the “Company”), 6,930* shares of Series D Preferred Stock, $0.001 par value per share, of the Company, standing
in the undersigned’s name on the books of the Company represented by Stock Certificate No(s) PD0001 provided herewith and
does hereby irrevocably constitute and appoint each officer of the Company (acting alone or with one or more other such officers)
as attorney-in-fact to transfer the said securities on the books of the Company with full power of substitution in the premises.

 

	 	Sabby Volatility Warrant Master Fund, Ltd.
	Dated: ____________, 2016	 
	 	 	 
	 	Name:
	 	Title:

 

	In Presence of	 
	 	 
	 	 
	Witness	 

 

*The stock certificate included with this Assignment has a face
value of 6,930 shares of Series D Preferred Stock, but the Investor has previously converted 992.75 shares of Series D Preferred
Stock into Common Stock of the Company.

 

     

     

    

 

Exhibit B-2 

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, Sabby Healthcare Master
Fund, Ltd. (“Investor”) does hereby sell, assign and transfer unto NeuroMetrix, Inc., a Delaware corporation
(the “Company”), 14,370* shares of Series D Preferred Stock, $0.001 par value per share, of the Company, standing
in the undersigned’s name on the books of the Company represented by Stock Certificate No(s) PD0002 provided herewith and
does hereby irrevocably constitute and appoint each officer of the Company (acting alone or with one or more other such officers)
as attorney-in-fact to transfer the said securities on the books of the Company with full power of substitution in the premises.

 

	 	Sabby Healthcare Master Fund, Ltd.
	Dated: ____________, 2016	 
	 	 	 
	 	Name: 
	 	Title:

 

	In Presence of	 
	 	 
	 	 
	Witness	 

 

*The stock certificate included with this Assignment has a face
value of 14,370 shares of Series D Preferred Stock, but the Investor has previously converted 848.35 shares of Series D Preferred
Stock into Common Stock of the Company.

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