Document:

Document

Certain portions of this document have been omitted pursuant to Item 601(b)(10) of Regulation S-K and, where applicable, have been marked with “[*]” to indicate where omissions have been made. The marked information has been omitted because it is (i) not material and (ii) is the type that the registrant treats as private or confidential.

Exhibit 10.1

Conformed Copy
Reflects amendments through
September 7, 2022

Key Terms Agreement 
Between Partner and Globalstar

This Key Terms Agreement (this “KTA”) is entered into by and between Partner Parent with its principal place of business at Partner Address, and Globalstar, Inc., a Delaware corporation with its principal place of business at 1351 Holiday Square Blvd. Covington, Louisiana 70433, United States.

The effective date of this KTA is [*] (the “Effective Date”).

Except as otherwise provided, capitalized terms are defined in Attachment 1 or, for highly confidential and proprietary terms, Attachment 3 and Attachment 16. 

Purpose

This KTA contains the key terms and conditions governing the assessment and potential development, launch and operation of a satellite to Wireless Device communication service for Partner using the Globalstar Satellite Services (the “Project”). The parties may sign additional agreements that reference this KTA to set forth terms and conditions specific to particular deliverables or services, including one or more statements of work (“SOWs”). Any deliverables or services that are not subject to an independent written agreement signed by the parties or their Related Entities shall be governed by this Agreement. 

Agreement

1.         The Project

1.1.       Satellite Services. Pursuant to the Project, Globalstar shall develop and provide to Partner a 24x7x365 fully managed duplex RF communication satellite service that enables satellite communications to and from Wireless Devices, utilizing the Satellite Spectrum, and Globalstar satellites and gateways, such service being suitable for the Intended Use (the “Satellite Services”).

1.2.       Project Phases. The Project is divided into three phases.

(a)        Feasibility Phase. The initial phase is the “Feasibility Phase,” during which Globalstar shall provide the Deliverables and Services in accordance with this Agreement to test the feasibility of the Satellite Services, subject to Partner making payments in accordance with Attachment 3. The Feasibility Phase begins on the Effective Date and ends on the earlier of: (i) completion of all Deliverables and Services set forth in the applicable Feasibility Phase PRD; or (ii) when either party terminates this Agreement pursuant to Section 12 (Term & Termination).

(b)        Phase 1. Another phase is “Phase 1,” during which Globalstar shall provide the Deliverables and Services in accordance with this Agreement to develop and provide the Satellite Services, subject to Partner making payments in accordance with Attachment 3. Phase 1 begins if and when Partner elects, in its sole discretion, to proceed with Phase 1 by providing Globalstar with written notice thereof, continues through the Phase 1 Service Period and ends on the earlier of: (i) the commencement of the Phase 2 Service Period; or (ii) when either party terminates this Agreement pursuant to Section 12 (Term & Termination). 

(c)        Phase 2. The last phase covered by this Agreement is “Phase 2,” during which Globalstar shall provide the Deliverables and Services in accordance with this Agreement to develop and put into service new satellites and provide the Satellite Services using the new satellites, subject to Partner making payments in 

accordance with Attachment 3 or as otherwise agreed. Phase 2 begins if and when Partner elects, in its sole discretion, on or after its election to Phase 1, to proceed with Phase 2 by providing Globalstar with written notice thereof, continues through the Phase 2 Service Period and ends when either party terminates this Agreement pursuant to Section 12 (Term & Termination). For the avoidance of doubt, Partner may elect to proceed with Phase 2 prior to the start of the Phase 1 Service Period provided it intends, in good faith, to commence the Phase 1 Service Period prior to the Phase 2 Service Period.

2.         Development and Services

2.1.       Scope of Globalstar Deliverables and Services. Globalstar’s obligations to provide Deliverables and Services to develop, launch and operate the Satellite Services for Partner under this Agreement include: [*].

2.2.       Deliverables and Services for the Project Phases. The Deliverables and Services for each phase of the Project are described below and will be more fully set forth in a SOW or PRD for each phase of the Project. An SLA will set forth the service level availability requirements applicable to the Phase 1 Satellite Services and Phase 2 Satellite Services.

(a)        Deliverables and Services for the Feasibility Phase. Deliverables and Services for the Feasibility Phase are set forth in the applicable PRD for the Feasibility Phase, an initial version of which has been provided to Globalstar. 

(b)        Deliverables and Services for Phase 1. Deliverables and Services for Phase 1 include at least the following: 

(i)        Phase 1 Development. During Phase 1, Globalstar shall: [*].

(ii)        Phase 1 Satellite Services. Partner will determine, in its sole discretion, if and when to proceed with the Phase 1 Service Period. During the Phase 1 Service Period, Globalstar shall provide the Satellite Services in accordance with the Specifications, SLA, all applicable Standards, any applicable SOW and all other terms and conditions set forth in this Agreement. 

(c)       Deliverables and Services for Phase 2. The satellites in Globalstar’s existing satellite constellation have a specified Manufacturer-Specified EOL Date and will need to be replaced in order for Globalstar to reliably continue or expand the Satellite Services. [*]:

(i)        Phase 2 Development. During Phase 2, Globalstar shall: [*]. 

(ii)        Phase 2 Satellite Services. Partner will determine, in its sole discretion, if and when to proceed with Phase 2. During the Phase 2 Service Period, Globalstar shall provide the Satellite Services in accordance with the Specifications, SLA, all applicable Standards, any applicable SOW and all other terms and conditions set forth in this Agreement. 

2.3.       Service Commitment. Globalstar shall provide Deliverables and Services on time and in accordance with the Specifications, all applicable Standards, any applicable SOW and all other terms and conditions set forth in this Agreement. If Globalstar believes it is not able to provide any Deliverable or Service on time as a result of Partner’s actions or failures to act in accordance with a reasonable request of Globalstar, Globalstar shall: (i) promptly notify Partner in writing of any Deliverable or Service that it is unable to provide on time and the information or action that is needed from Partner; and (ii) provide all Deliverables and Services that it is able to provide on time. [*]

2.4.       Delivery and Acceptance. Deliverables and Services will be subject to inspection, test, and acceptance by Partner. Upon receipt of a Deliverable or Service, Partner will, in a reasonable amount of time, either accept the Deliverable or Service, or in the event that, in Partner’s sole discretion, the Deliverable or Service does not comply with the terms of this Agreement (including the applicable Specifications), reject the Deliverable or Service. Deliverables and Services shall meet all applicable “Minimum Requirements” in a PRD before such Deliverables or Services may be deemed accepted. If Partner requests, Globalstar will assist Partner with testing the Deliverables or Services without charge. Acceptance by Partner does not waive any of Globalstar’s obligations under Section 7 (Warranties). 

2.5.       Re-scheduling. If Globalstar is unable to provide the Deliverables or Services in accordance with the Project schedule for any reason, then Globalstar will, without limiting any other remedy Partner may have: (a) promptly notify Partner, specify the reason for such failure, provide a plan to rectify the same and use all reasonable efforts to ensure no further delay or impact on the overall schedule; and (b) assign such additional resources and personnel required to resolve the issue and to meet the required future dates.

2.6.       Cancellation. Partner may cancel all or any part of the Deliverables or Services at any time. Upon any such cancellation, Globalstar will, to the extent and at the times specified by Partner, stop all work on the Deliverables or Services (or designated portions thereof) that have been cancelled, incur no further costs, and protect all property in which Partner has or may acquire an interest. Globalstar will do so promptly without awaiting settlement or payment of any cancellation claims. Partner will not be responsible for any costs in connection with cancelled Deliverables or Services except for: (a) payment for the portion of the Deliverables and Services accepted in accordance with this Agreement prior to notice of the cancellation; and (b) any payment obligations incurred for Deliverables and Services provided by Globalstar prior to the effective date of termination in accordance with Section 12 (Term & Termination).

2.7.       Data Privacy and Security Requirements.  Globalstar will comply with the data privacy and security procedures set forth in Attachment 2.7.

3.         Resources, Regulatory Rights & Personnel

3.1.       Required Resources. Globalstar will provide all personnel, equipment, tools, software, materials, satellites, gateways, Satellite Spectrum, Regulatory Rights and other resources necessary to provide the Deliverables and Services as set forth in this Agreement and in the Specifications (the “Required Resources”), including, as of the Effective Date, at least: [*]

3.2.       Priority Use of Required Resources. Globalstar will provide Partner priority use of all Required Resources. If Globalstar’s ability to provide the Deliverables or Services is constrained for any reason or Globalstar reasonably believes that it will be (e.g., due to a constraint in resourcing including engineering personnel, equipment, co-location space, or ground network connectivity), Globalstar shall allocate the constrained resource in order to supply the Deliverables and Services as required under this Agreement before using such resource for any other purpose, except as set forth in Section 3.3 (Allocation of Satellite Spectrum and Capacity). [*]. 

3.3.       Allocation of Satellite Spectrum and Capacity. In accordance with Section 3.2 (Priority Use of Required Resources), Globalstar shall, at all times: (a) ensure that the Satellite Services have priority use of the Satellite Spectrum; (b) ensure that there is no harmful interference to the Satellite Services caused by Globalstar or its customers, including any third party granted rights to Globalstar’s spectrum; (c) make all reasonable efforts to identify and resolve any other interference to the Satellite Services; and (d) make available for use in connection with the Satellite Services: (i) at least the Minimum Capacity [*]. 

3.4.       Regulatory Rights. Globalstar shall use all reasonable efforts to obtain, perfect and maintain (including complying with all necessary conditions) all Regulatory Rights for each country listed in Attachment 8 as soon as practicable in accordance with the priorities and target dates set forth in Attachment 8, and shall take no actions that are detrimental to the obtaining, perfection and maintenance of such Regulatory Rights. [*].

3.5.       Satellite Failures. During Phase 1 and Phase 2, the parties anticipate that there will be at least 24 Gen-2 or Phase 2 satellites in-orbit and usable for the Satellite Services at all times. Globalstar shall promptly notify Partner if there is a reasonable likelihood that any satellite used or planned to be used for the Satellite Services will experience a Satellite Failure. [*] 

3.6.       Globalstar Personnel. Globalstar Personnel involved in the development of the Deliverables and the performance of the Services shall have all requisite skills, experience and expertise to perform assigned tasks. Subject to Partner’s approval, Globalstar will designate a project manager who shall be responsible for the Project oversight and management, including responding to Partner’s questions and issues relating to the Deliverables and Services. If requested by Partner, Globalstar shall assign a mutually agreed team that is assigned primarily (e.g., >90% time) to work with Partner and will prioritize the Project and recruit any necessary additional employees (of 

sufficient skill and number) to meet its obligations under this Agreement. This team shall include at least the people listed in Attachment 10. 

3.7.       Collaboration and Access. [*] 

3.8.       Regular Updates. Globalstar shall provide Partner regular (at least monthly) and detailed reports and data to enable Partner to monitor the status of the Project, including such content as is reasonably requested by Partner. 

4.         Exclusivity

4.1.       Globalstar Exclusivity. In consideration of Partner’s investment in the Project and its partnership with Globalstar, during the term of this Agreement, Globalstar will not, nor assist any third party to sell, distribute, market, develop, create, implement, launch, or otherwise offer a Restricted Service (as defined in Attachment 3). Notwithstanding the foregoing, Globalstar may seek written approval from Partner for commercialization of any product that is not similar to the service contemplated by the Project but is subject to the exclusivity obligations set forth above, which Partner shall review in good faith. 

4.2.       Other Projects. Globalstar will notify Partner prior to pursuing any other project or activities that may negatively impact the Project or the Satellite Services. 

5.         Fees & Payment

5.1.       Fees. The amounts payable by Partner for the Deliverables and Services provided during the Project are set forth in Attachment 3. Globalstar agrees that such amounts and any amounts Partner agrees in writing to pay pursuant to Section 2.2(c) (Deliverables and Services for Phase 2) [*] shall be the sole amounts payable by Partner hereunder. [*].

5.2.       [*] 

5.3.       Financial Review. At Partner’s request, Globalstar shall meet every three months to review operating and capital expenses relating to the Project and Globalstar’s financial status, including a 12-month forward forecast. 

5.4.       Globalstar Capital Structure and Refinancing Commitments. Globalstar shall implement the capital structure and refinancing commitments set forth in Attachment 12.

5.5.       Purchase Orders and Invoices. Partner shall not be liable to pay for any Deliverables or Services hereunder unless and until Globalstar has been issued a purchase order for the Deliverables or Services. Partner shall have the right, in its sole discretion, to refuse payment for any Deliverables or Services provided prior to or without a purchase order. Globalstar shall invoice Partner for Deliverables and Services accepted in accordance with this Agreement. Payment of invoices will not be deemed acceptance of any Deliverables or completion of Services provided by Globalstar. Payment is due and payable 45 days after the date of receipt of each valid and correct invoice. Partner shall have the right to withhold payment for that portion of an invoice as to which there exists a bona fide dispute; provided, however, that Partner and Globalstar shall each make all reasonable efforts to resolve such dispute expeditiously. All invoices shall be sent to Partner at the address specified by Partner in writing on the applicable purchase order. If no address is specified, Globalstar shall request an address from Partner. 

5.6.       Costs. Unless otherwise specifically set forth in this Agreement, Partner and Globalstar are solely responsible for their own costs incurred under this Agreement, including for development of Deliverables and Services. 

6.        Intellectual Property

6.1        Intellectual Property Rights. Each party shall retain all Intellectual Property Rights that it and its Related Entities owned, created, or discovered: (a) prior to the Effective Date; or (b) after the Effective Date, separately and independently of this Agreement (“Background IPR”). Partner shall own all right, title, and interest in and to the Deliverables and any Intellectual Property Rights created by either party in the development of the Deliverables or the performance of the Services, or otherwise created using Partner Confidential Information (“Project IPR”). 

Globalstar hereby grants and assigns to Partner, without reservation, all rights, title, and interest in and to any Project IPR. Globalstar agrees to execute any documents reasonably requested by Partner to enable Partner to secure, perfect, register, or enforce any Intellectual Property Rights in such Project IPR. Except as provided in Section 6.3 (Partner License to Globalstar), Globalstar may only use Intellectual Property Rights owned (including Project IPR) or otherwise provided by Partner or Partner Confidential Information for the purpose of performing Globalstar’s obligations under and during the term of this Agreement. Except with respect to the foregoing limited right and the rights in Section 6.3 (Partner License to Globalstar), no rights are granted to Globalstar to use such Intellectual Property Rights or Partner Confidential Information. 

6.2        Globalstar License to Partner. [*]. 

6.3        Partner License to Globalstar. [*].

6.4        Covenant Not to Sue or Seek Injunction Relief and Springing License. [*].

6.5        Third Party Technology and Intellectual Property Rights. Prior to delivery, Globalstar shall identify any third-party technology, including any open source software, and Intellectual Property Rights incorporated into or necessary to use the Deliverables or Services. Globalstar shall secure from such third party any rights necessary to permit Partner to fully utilize the Deliverables and Services, unless otherwise agreed upon by Partner in writing.

7.         Warranties

Each party represents and warrants that it has full power to enter into this Agreement and to carry out its obligations under this Agreement. Globalstar represents, warrants and covenants that: (a) Globalstar owns all right, title, and interest in and to Globalstar Background IPR, has the authority to assign to Partner the Project IPR provided by or for Globalstar, and has the right to grant Partner the rights and licenses granted herein; (b) the Deliverables and Services shall be provided in a professional, workmanlike manner, with a degree of skill and care no less than that expected in the industry; (c) Globalstar owns all right, title, and interest in and to or otherwise has the rights to provide all Required Resources and the Required Resources are sufficient to provide the Deliverables and Services; (d) the Spectrum Subsidiary, upon and after its formation, is and will be duly organized, validly existing, in good standing under the laws of the state of Delaware, and has all requisite power and authority to conduct its activities; (e) except for Permitted Encumbrances, the Required Resources are free and clear of, and not subject to, any Encumbrance; (f) except for Encumbrances existing as of the date the KTA is executed related to the Existing Debt, the capital stock and other equity securities of the Spectrum Subsidiary are free and clear of, and not subject to, any Encumbrance; (g) except for leases or licenses of Globalstar’s spectrum for terrestrial use entered into in accordance with Section 10.2(b)(v), the assets of the Spectrum Subsidiary are free and clear of, and not subject to, any Encumbrance; (h) all outstanding shares of capital stock or other equity securities of the Spectrum Subsidiary are owned directly or indirectly by Globalstar; (i) except as contemplated by this Agreement, the Spectrum Subsidiary has never and currently does not conduct any business, have any employees or own any real property; (j) Globalstar has obtained and can exercise all Regulatory Rights in each of the Authorized Countries; (k) Globalstar is not aware of any bona fide threats or claims that would adversely impact the Regulatory Rights; (l) the Satellite Services, Project IPR provided by or for Globalstar and Globalstar’s Background IPR do not and will not misappropriate or infringe any Intellectual Property Rights, privacy rights (except for infringements of privacy rights outside of Globalstar’s control or scope of responsibility under this Agreement), or other proprietary rights of a third party; (m) the Deliverables and Services provided hereunder will conform to the Specifications and Standards; (n) the Deliverables will be free and clear of any third party encumbrances, royalties, restrictions, or requirements that may affect or impose obligations on Partner, including any versions of the GPL or LGPL (GNU General Public License or Lesser General Public License), open source license, or any other third party license requirements; and (o) the Deliverables and Services will be free of any and all viruses, Trojan horses, trap doors, and other harmful or limiting code, including any type of surveillance code or code that may result in the reporting of data to a third party other than Partner or Globalstar.

8.        Indemnification 

8.1.       Globalstar Indemnity. Globalstar shall indemnify, hold harmless, and, upon Partner’s request, defend Partner, and its respective directors, officers, employees, and agents from and against all claims, liabilities, actions, 

demands, settlements, damages, costs, fees, and losses of any type, including reasonable attorneys’ and professionals’ fees and costs, arising in whole or in part from third party claims in connection with: [*].

8.2        [*].

8.3.       Defense, Assistance and Settlements. Globalstar agrees that Partner, at its option, may maintain exclusive control of the defense and settlement of any Covered Claim. Partner will consider Globalstar’s recommendations for limiting defense costs for Globalstar Covered Claims that do not affect Partner’s ability to best defend such claim. If a party is not controlling the defense or settlement of a Covered Claim, it may obtain independent counsel at its own expense, and participate in such defense and settlement of the claim. Each party shall provide all reasonable assistance, at such party’s expense, to the other party or its counsel in relation to the defense, remedy, or mitigation of any Covered Claim. Globalstar shall not settle any Covered Claim without Partner’s prior written consent, which shall not be unreasonably withheld. If settlement of a Globalstar Covered Claim would require Globalstar to make a material payment in connection with the claim or materially impact Globalstar’s ability to operate, then such settlement shall be subject to Globalstar’s consent, which shall not to be unreasonably withheld. Neither party shall publicize any communications or settlement of a Covered Claim (or permit any party to the claim to publicize any such communications or settlement) without the other party’s prior written consent, which shall not be unreasonably withheld. [*].

8.4.       Duty to Correct. If a third party claims that the Deliverables or Services, or the use thereof, has misappropriated, or infringed a third party’s Intellectual Property Right, and such claim is reasonably likely to result in: (a) Partner being prohibited or limited from using the Deliverables or the Services in accordance with this Agreement; or (b) Partner being otherwise subject to additional obligations (e.g., royalties) for use of the Deliverables or the Services in accordance with this Agreement (except for claims where Globalstar has agreed unconditionally to indemnify Partner and such claims would not be subject to any limitation of liability pursuant to Section 9 (Limitation of Liability)), Globalstar will, in addition to its obligations under this Section, promptly notify Partner in writing about the claim and, at its own expense and at the reasonable request of Partner promptly: (i) obtain for Partner the right to continue to use the Deliverables and receive the Services in a manner consistent with this Agreement; (ii) modify the Deliverables or re-perform the Services so they are non-infringing and in compliance with this Agreement; (iii) replace the Deliverables and Services with non-infringing ones that comply with the obligations under this Agreement; or, to the extent (i) through (iii) are not feasible, (iv) refund any amounts paid by Partner for the Deliverables or Services that were not delivered, and relieve Partner of any obligation to pay any amounts incurred but not yet paid.

9.         Limitation of Liability

9.1.       Damages. Except with respect to the LoL Exceptions, in no event will either party be entitled to incidental, consequential, or punitive damages, or any lost revenues or profits for any liability arising under this Agreement. 

9.2.       Limitation of Liability. Except with respect to the LoL Exceptions or any breach by Partner of its payment obligations in Attachment 3, in no event will either party’s liability for claims arising under this Agreement in connection with the events of any calendar year exceed: (a) $60,000,000 with respect to Partner; (b) $60,000,000 with respect to Globalstar if a Sale Transaction has not been consummated at any time during the term of this Agreement [*].

10.       Continuity of the Satellite Services 

10.1.     Continuity. Globalstar acknowledges that the Satellite Services are of utmost importance to Partner and that any interruption in the Satellite Services would cause substantial harm to Partner. Globalstar shall promptly notify Partner if Globalstar anticipates for any reason that continuity of the Satellite Services is at risk (including in the case of a Force Majeure Event) or that the Satellite Services will experience a Chronic Outage. In such event or if the Satellite Services are likely to be at risk, Globalstar shall undertake all feasible technical, operational, commercial, legal, and regulatory activities to ensure the continuity of the Satellite Services and its compliance with the Specifications and SLA. If Globalstar undertakes such activities but ensuring continuity is not technically or commercially feasible, Globalstar shall promptly notify Partner and the parties shall meet to discuss mutual resolution, including any changes necessary to make continuity of the Satellite Services feasible. Prior to such meeting, Globalstar shall use all reasonable efforts to determine a means to ensure continuity of the Satellite 

Services. If the parties agree upon a resolution requiring a change in a Specification, then such Specification change shall be subject to Section 2.3 (Service Commitment) unless otherwise agreed. 

10.2.     Continuity Protections. Due to the importance of continuity of the Satellite Services to Partner, the parties have agreed to the terms in this Section to protect the Satellite Services from interruption. 

(a)        Asset Encumbrances. During the term of this Agreement, Globalstar shall obtain Partner’s written consent prior to incurring or permitting to exist any Encumbrance (including any Encumbrance arising in connection with the refinancing, replacement or extension of any Existing Debt and as such debt may be amended, restated, supplemented or otherwise modified) on: (i) except for Encumbrances related to the Existing Debt existing as of the date the KTA is executed, any Globalstar assets (including all Required Resources) that are used or may be needed or useful for the Project; provided that, Globalstar may incur unsecured claims or liabilities (that are not incurred against such Globalstar assets) in its capacity as a contracting entity in the ordinary course of business; (ii) the capital, stock or other equity securities of the Spectrum Subsidiary (except for Encumbrances existing as of date the KTA is executed related to the Existing Debt); or (iii) any Spectrum Subsidiary non-equity assets (except for leases or licenses of Globalstar’s spectrum for terrestrial use entered into in accordance with Section 10.2(b)(v)). During the term of this Agreement, Globalstar shall not incur any material debt obligations (except unsecured debt obligations with financial institutions which do not interfere with Globalstar’s ability to fulfill its obligations under this Agreement, including its Phase 2 obligations with respect to New CapEx) or agree with any third parties to restrict its ability to incur future debt in accordance with this Agreement. [*] During the term of this Agreement, Globalstar shall, and shall cause its Related Entities to, obtain Partner’s written consent prior to taking any action that would have the effect of transferring the direct or indirect ownership (or, with respect to personnel, direct or indirect employing or contracting entity) of, or rights to, any of the Required Resources, to any entity that controls, is controlled by, or is under common control with Globalstar Inc. that is not Globalstar Inc. or a subsidiary thereof.

(b)        Required Resource Protections. Globalstar shall execute the resource protections set forth in 10.2(b)(i) and 10.2(b)(iii) below [*] Partner has no obligation to make any Phase 1 or Phase 2 payment after the RRP Date until all required resource protections set forth in Sections 10.2(b)(i) to 10.2(b)(iv) have been implemented to Partner’s satisfaction and Globalstar has provided to Partner all necessary approvals, licenses and permits.

(i) Globalstar shall form or designate a wholly-owned subsidiary of Globalstar to hold all rights to Globalstar’s spectrum in the United States (the “Spectrum Subsidiary”) and shall issue one share of preferred stock of the Spectrum Subsidiary (“Preferred Stock”) to Partner. Subject to Partner’s review and consent, Globalstar shall put in place corporate governance documents (e.g., certificate of incorporation and bylaws) for the Spectrum Subsidiary, which: (A) except as provided in Section 10.2(b)(v), require the consent of the holder of the Preferred Stock prior to taking any corporate action that may substantively affect the Satellite Services, any Required Resource or Partner’s rights under this Agreement [*] Globalstar shall ensure: (1) the Spectrum Subsidiary remains duly organized, validly existing and in good standing under the laws of the state of Delaware and has the requisite power and authority to conduct its activities; (2) all outstanding shares of capital stock or other equity securities of the Spectrum Subsidiary are: (a) owned directly or indirectly by Globalstar, other than the Preferred Stock which is owned by Partner; and (b) are free and clear of, and not subject to, any Encumbrance (other than Encumbrances related to the Existing Debt existing as of the date the KTA is executed); (3) that the Spectrum Subsidiary, including its non-equity assets, remains free of any Encumbrances, liabilities or creditors (other than with respect to the capital stock or other equity securities of the Spectrum Subsidiary, as set forth in Section 10.2(b)(i)(C)(2)(b) and except for leases or licenses of Globalstar’s spectrum for terrestrial use entered into in accordance with Section10.2(b)(v); and (4) except as contemplated by this Agreement, the Spectrum Subsidiary does not conduct any business, have any employees or own any real property.

(ii) Globalstar shall not amend any Loan Document in a way that impairs, at any time during the term of this Agreement, any of Partner’s rights under this Agreement. For the avoidance of doubt, Globalstar shall be permitted to amend any Loan Document without Partner’s consent if such amendment would not impair, at any time during the term of the Agreement, any of Partner’s rights under this Agreement.

(iii) Globalstar shall grant Partner a third priority lien on all Globalstar assets that are used or may be needed or useful for the Project for the purpose of securing Partner’s claim arising from any failure of Globalstar to [*]. If the Existing Debt has been paid-off or refinanced, then this third priority lien would instead become a first priority lien.

(c)        Remedies for Fundamental Breaches.  Globalstar acknowledges that a Fundamental Breach would violate the fundamental promises of Globalstar that underlie this Agreement, such that Partner’s reliance on Globalstar to provide the Satellite Services would be significantly undermined. Globalstar shall notify and provide full disclosure to Partner immediately if it has reason to believe or knowledge that a Fundamental Breach has occurred or is reasonably likely to occur or that it is not in compliance with this Section 10 (Continuity of the Satellite Services) (“Fundamental Breach Notice”).  [*]. Partner further agrees that it will suspend its exercise of its remedies under this Section (including, if applicable, reverting membership of the board of directors of the Spectrum Subsidiary consistent with Section 10.2(b) (Required Resource Protections)) following a reasonable transition period if Globalstar later demonstrates to Partner’s reasonable satisfaction that it is in compliance with the Agreement. Globalstar shall compensate Partner for its actual incremental expenses incurred exercising the remedies under this Section, in a manner which shall be reasonably and promptly agreed by the parties following any such exercise by Partner. [*]. 

(d)        Filings Related to Fundamental Breaches. [*]. 

(e)        Sale Transaction.

(i)         Sale Notice. If a third party submits a non-frivolous proposal to acquire any material Required Resource or the Spectrum Subsidiary or for a Change of Control transaction involving Globalstar or Globalstar’s board of directors (or any committee thereof, including the Strategic Review Committee) approves a process with respect to the potential sale of any material Required Resource or the Spectrum Subsidiary or a Change of Control transaction (each, a “Sale Transaction”), Globalstar shall provide written notice of the Sale Transaction, with the material terms and related process of such transaction, including (A) at a minimum the structure of, and the assets proposed to be sold in the Sale Transaction and any relevant timelines or deadlines relating to the Sale Transaction, and (B) other material terms and related process to the extent permitted by Globalstar’s confidentiality obligations (a “Sale Notice”), to Partner within one day following Globalstar’s receipt of such proposal or such determination by Globalstar’s board of directors (or any committee thereof, including the Strategic Review Committee), which Sale Notice shall be considered Globalstar Confidential Information. If Globalstar enters into any confidentiality agreement relating to a potential Sale Transaction after the Effective Date, such agreement shall not restrict Globalstar from providing to Partner any of the information set forth in Section 10.2(e)(i)(A) that is required to be included in the Sale Notice.

(ii)         Discussions. Following the delivery of the Sale Notice to Partner, Globalstar’s board of directors (or any committee thereof, including the Strategic Review Committee) shall, and shall cause the management, employees and other representatives of Globalstar to conduct discussions with Partner in good faith and on a non-exclusive basis and provide Partner with all information made available or provided to any potential third party acquiror, to enable Partner to make a proposal to Globalstar for a Sale Transaction, during the ten business day period following the date of the Sale Notice. Globalstar hereby agrees that it shall not, and shall cause its Related Entities, management, employees and other representatives not to, enter into a term sheet or letter of intent or other binding agreement or obligation with any other third party with respect to a Sale Transaction during the ten business day period commencing on the date of the Sale Notice. 

(iii)        Proposals. If Partner makes a proposal for a Sale Transaction prior to the expiration of the ten business day period, then Globalstar’s board of directors (or any committee thereof, including the Strategic Review Committee) will exercise its fiduciary duties to evaluate Partner’s proposal along with any other proposals for a Sale Transaction. In the event Globalstar’s board of directors (or any committee thereof, including the Strategic Review Committee) determines the proposal from Partner is in the best interests of Globalstar and its stockholders, then Globalstar will enter into a binding agreement to negotiate in good faith with Partner on an exclusive basis for a period of not less than 20 business days. 

(iv)        Consummation. If Partner declines to make, or Globalstar (after having considered such offer or proposal in good faith) declines to accept or pursue, a proposal for a Sale Transaction from Partner, then Globalstar shall be permitted to consummate a Sale Transaction with a third party, provided that Globalstar shall have first obtained and delivered to Partner a written agreement from the acquiror in the form included as Attachment 7.

(f)         Ownership of Globalstar; Warrants. 

(i)         Globalstar covenants that James Monroe III (“Monroe”), directly or indirectly through one or more affiliates (including Thermo), will beneficially own and control shares of voting stock of Globalstar that represent at least 51.00% of all outstanding voting stock of Globalstar until the earlier of: (A) the termination of the Agreement; or (B) the five-year anniversary of the commencement of the Phase 1 Service Period. In the event that Monroe, Thermo or any of their affiliates transfers any shares of capital stock (as defined in Attachment 13) of Globalstar (except as would be expressly permitted pursuant to the terms of Attachment 13 if executed) prior to the execution and delivery of the Lock-up and Right of First Offer Agreement in the form set out in Attachment 13 (or in another form agreed by Partner), Globalstar will issue additional warrant(s) to Partner Parent or its designee on a date specified by Partner and on terms substantially similar to those set out in Attachment 14 and Attachment 15, which warrant(s) shall be exercisable for a number of shares equal to the percentage of ownership transferred by Monroe (i.e., to adjust for the dilutive effect of the issuance of new shares upon exercise of the warrant(s) or differences in the total shares outstanding at the time of issuance). The exercise price shall be the price at which such shares were transferred by Monroe. 

(ii)         lf Globalstar proposes to issue or sell any new capital stock or securities exercisable for or convertible into capital stock (other than pursuant to Attachment 14 and Attachment 15 or the Outstanding Issuance Obligations (as defined in such attachments) or in connection with the conversion of Globalstar’s existing first lien or second lien loans into equity as contemplated by this Agreement or the Thermo Agreement, Partner shall have the right, and may elect, to purchase or otherwise acquire such new securities, at the price and on the terms and conditions of such offer or sale, up to the amount of such new securities that allows Partner to maintain Partner’s percentage ownership calculated as: (A) the common stock of Globalstar then owned by Partner (either directly or on an as-converted to common stock basis with respect to the warrants) divided by (B) the total common stock of Globalstar then outstanding. Solely for the purposes of the foregoing calculation and prior to the execution and delivery of the Warrant Agreements, the warrants to be issued pursuant to the Warrant Agreements shall be deemed to be issued, outstanding an exercisable as of the date of this Agreement and any adjustments contemplated by the Warrant Agreements shall be deemed to be made and given full effect, as applicable. 

(iii)        Globalstar hereby acknowledges and agrees that: (A) after Partner’s election to Phase 1 and within 10 days of Partner’s written request, Globalstar shall execute and deliver to Partner, and cause Monroe to execute and deliver to Partner, the Lock-up and Right of First Offer Agreement in the form set out in Attachment 13; and (B) after commencement of the Phase 1 Service Period and within 10 days of Partner’s written request, Globalstar shall execute and deliver to Partner the Warrant Agreements in the form set out in Attachment 14 and Attachment 15. Globalstar represents and warrants to Partner that all actions required to be taken in order for Globalstar to execute, deliver and perform the Lock-up and Right of First Offer Agreement and the Warrant Agreements have been taken as of the date of this Agreement. 

11.       Band 53/n53

Partner will enable Band 53/n53 for both satellite and terrestrial use in cellular-enabled devices designated by Partner for use with the Satellite Services on Commercial Launch, provided the third party vendors required to enable these functionalities meet all of Partner’s commercial and technical requirements to enable such functionalities, including the Partner product development schedule and performance requirements (e.g., speed, power, security, quality, etc.), as well as all regulatory requirements (e.g., FCC certifications, etc.). 

12.       Term & Termination

12.1.     Term. The term of this Agreement shall commence on the Effective Date and shall continue until terminated. 

12.2.     Termination by Globalstar. Globalstar may only terminate this Agreement or any SOW: (a) if Partner materially breaches any of its payment obligations under this Agreement and such breach is not remedied within 60 days after written notice; (b) by giving 30 days’ written notice to Partner no earlier than 24 months after the completion of the Feasibility Phase; provided that: (i) neither the Phase 1 Service Period nor the Phase 2 Service Period have commenced due to the actions or inaction by Partner; and (ii) Partner has not been actively engaged with Globalstar in any material development relating to the Project for at least 12 months as of the date of the notice; or (c) if Partner has indicated to Globalstar that it will not continue with Phase 1 and Globalstar has confirmed such 

indication with Partner, and the parties have not agreed on adjustments to the Agreement to contemplate a revised Project after 90 days from Partner’s decision, provided Globalstar has engaged in good faith negotiations, by giving 30 days’ written notice, unless Partner reverses its decision and elects to continue with Phase 1.

12.3.     Termination by Partner. Partner may terminate this Agreement or any SOW or Services: (a) if Globalstar materially breaches any of its obligations under this Agreement and such breach is not remedied within 60 days after written notice; (b) if there is a Chronic Outage or a Force Majeure Event, in each case, materially impacting the Satellite Services, that is not remedied within 60 days after written notice; (c) by giving 30 days’ written notice to Globalstar at any time during the Feasibility Phase or, as applicable, prior to the Phase 1 Service Period; (d) by giving six months written notice to Globalstar at any time during the Phase 1 Service Period; (e) by giving 18 months written notice to Globalstar at any time during the Phase 2 Service Period; or (f) if there is a Globalstar Bankruptcy Event. If Partner terminates this Agreement or any SOW, any applicable pending Deliverables or Services shall be deemed cancelled unless Partner provides notice to Globalstar to provide any such Deliverables or Services during any applicable wind-down period. In the event Partner cancels all or a portion of the Deliverables for Phase 2, Partner will reimburse Globalstar for its reasonable and accurately documented actual cost of materials purchased or manufactured through the date of such termination notice provided it was not incurred earlier than necessary based on minimum lead times and that Globalstar cannot cancel, recycle, return for credit, sell (including at a later date to Partner) or divert to use as replacement units, spare parts or another use. 

12.4.     Survival. No termination shall relieve either party to this Agreement from liability for any intentional or material breach of any representation, warranty or covenant contained herein. Upon termination of this Agreement by either party in accordance with Sections 12.2 or 12.3, any provisions in this Agreement, which by their nature, should remain in effect beyond termination of this Agreement will survive until fulfilled, including: (a) Section 5.1 (Fees) with respect to accrued but unpaid fees; (b) Section 6 (Intellectual Property); (c) Section 7 (Warranties) with respect to events occurring during the term; (d) Section 8 (Indemnification) with respect to events occurring during the term; (e) Section 10 (Continuity of the Satellite Services) with respect to events occurring during the term, provided that, for clarity, Partner shall not be permitted to exercise its rights in Section 10.2(c) (Remedies for Fundamental Breaches) following termination except: (i) if a Fundamental Breach occurred during the term; and (ii) the Agreement was not terminated by Partner pursuant to Section 12.3; (f) this last sentence of Section 12 (Term & Termination); (g) Section 4.1 (Globalstar Exclusivity) for a period of three years or, if Partner terminates this Agreement under Sections 12.3(c) through (e) (unless such termination was due to a breach of the Agreement by Globalstar), three months; and (h) the “Confidentiality” section in Attachment 2. 

13.       Non-Solicitation

Provided no Fundamental Breach has occurred and no notification has been provided pursuant to Section 10 (Continuity of the Satellite Service), Partner shall not solicit the Globalstar employees identified in Attachment 11 during the applicable Non-Solicitation Period. For the avoidance of doubt, general Partner job postings and advertisements are not a breach of this Section.

14.       Miscellaneous

This Agreement is subject to the general terms and conditions in Attachment 2, which are incorporated herein by reference.

Acknowledged and agreed by their duly authorized representatives.

						
	Partner Parent	Globalstar, Inc.
	
By: ____________________________________	
By: _________________________________________
	Name: __________________________________	
Name: _______________________________________
	Title: ___________________________________	
Title: ________________________________________
	
Date: ___________________________________	
Date: ________________________________________

Attachment 1
Definitions

The definitions for capitalized terms are set forth below except for certain highly confidential and proprietary terms which are set forth in Attachment 3 and Attachment 16.

[*]

“Agreement” means the KTA (including any attachments and exhibits) and amendments, SOWs, or other written agreements under the KTA. 

[*]

“Auditors” is defined in Attachment 2. 

“Authorized Countries” means all countries in the most current version of Attachment 8 where Globalstar has indicated it has MSS Authority.

[*]

“Background IPR” is defined in Section 6.1 (Intellectual Property Rights). 

“Bankruptcy Event” means any event whereby: 

(a)        Globalstar, Inc. or any of its Related Entities fails to or has an inability to pay any material undisputed debt that is due;

(b)        (i) a court of competent jurisdiction enters a decree or order for relief in respect of Globalstar, Inc. or any of its Related Entities in an involuntary case, application or proceeding under any Insolvency Law (which decree or order is not stayed) or any other similar relief shall be granted under any applicable law; or (ii) an involuntary case, application or proceeding is commenced against Globalstar, Inc. or any of its Related Entities under any Insolvency Law; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, receiver-manager, judicial manager, administrative receiver, administrator, examiner, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Globalstar, Inc. or any of its Related Entities, or over all or a substantial part of its property, is entered; or there is an involuntary appointment of a receiver, receiver-manager, judicial manager, administrative receiver, administrator, examiner, liquidator, sequestrator, trustee, custodian or other officer of Globalstar, Inc. or any of its Related Entities for all or a substantial part of its property; or a warrant of attachment, execution or similar process is issued against any substantial part of the property of Globalstar, Inc. or any of its Related Entities, and any such event described in this clause (a) shall continue for 60 days without having been dismissed, bonded or discharged; or

(c)        (i) Globalstar, Inc. or any of its Related Entities has an order for relief entered with respect to it or shall file a petition or application seeking relief or shall otherwise commence a voluntary case or proceeding under any Insolvency Law, or shall consent to the entry of an order for relief in an involuntary case or proceeding, or to the conversion of an involuntary case or proceeding to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, receiver-manager, judicial manager, administrative receiver, administrator, examiner, liquidator, sequestrator, trustee, custodian or other officer for all or a substantial part of its property; or Globalstar, Inc. or any of its Related Entities makes any assignment for the benefit of creditors; or (ii) Globalstar, Inc. or any of its Related Entities makes a public statement indicating, or any officer or director of the foregoing indicates its inability to pay its debts as such debts become due (for clarity, a discussion between Globalstar and Partner regarding potential future financial difficulties and ways to mitigate such difficulties shall not by itself constitute a Bankruptcy Event).

“Change of Control” means of an entity means any of the following: 

(a)        any other person, entity or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934) becomes the beneficial owner (provided such other person, entity or group shall 

be deemed to be the beneficial owner of all shares that such other person, entity or group has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants or options or otherwise, without regard to the 60-day period referred to in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of any securities of such first entity or any direct or indirect parent thereof representing more than 50% of the combined voting power of such first entity’s or such parent’s then outstanding securities entitled to vote generally in the election of directors; 

(b)        the approval or consummation by such first entity or any direct or indirect parent thereof of a merger, consolidation or similar transaction with any other person or entity, other than a merger, consolidation or similar transaction which would result in the voting securities of such first entity or such parent outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity) more than 50% of the combined voting power of the surviving or resulting entity outstanding immediately after such merger, consolidation or similar transaction; 

(c)        the approval or consummation of a sale or disposition by such first entity of all or substantially all of the consolidated assets of such first entity to any other person or entity pursuant to a plan or agreement; or 

(d)        the consummation of a liquidation, dissolution, plan of reorganization or similar restructuring.

[*]

“Code of Conduct” is defined in Attachment 2. 

[*]

“Commercialize” means to use, make, reproduce, display, perform, modify, create derivative works, import, sell, offer to sell, distribute, advertise, and otherwise commercialize or exploit, and to have any of the foregoing done on a party’s behalf. 

“Confidential Information” has the meaning ascribed to that term in the NDA. 

[*]

“Covered Claims” means the Partner Covered Claims and the Globalstar Covered Claims.

[*]

“Deliverables” means the tangible results of services performed by Globalstar to be delivered to Partner as set forth in a PRD or SOW and as described in this KTA, and any other such items not identified in a PRD or SOW that are delivered by Globalstar to Partner or created in connection with the Agreement to the extent that such items are not covered under the terms and conditions of a separate written agreement signed by the parties. 

[*]

“Divested Patents” means patent rights that: (a) Globalstar owns, controls, or has the right to license or enforce; and (b) are sold, transferred, assigned, or divested (except in connection with a Sale Transaction in compliance with Section 10.2(e) (Sale Transaction)) to a third party (each a “Divestiture”). 

“Encumbrance” shall mean any lien (statutory, constitutional or contractual), pledge, hypothecation, charge, mortgage, security interest, guarantee of indebtedness or other obligations, liability, encumbrance, claim, interference, restriction, royalties, requirements, lease, option, right of first refusal, conditional sale (or other title retention agreement), preemptive right or other similar restriction. 

[*]

“Force Majeure Event” is defined in Attachment 2.
 
“Feasibility Phase” is defined in Section 1.2(a) (Feasibility Phase). 

“Fundamental Breach” means any of the following that occurs after Partner first elects to proceed with either Phase 1 or Phase 2:

(e)        a Globalstar Bankruptcy Event;

(f)         Globalstar breaches or Globalstar or any officer or director of Globalstar has indicated that Globalstar will breach (and such breach or such indication is not cured within 90 days), any of the following: (i) Globalstar’s obligation to promptly commence Phase 1 or Phase 2 following Partner’s written request; (ii) Section 3 (Resources, Regulatory Rights & Personnel) to the extent that such breach is material to the Satellite Services and is not solely caused by a Force Majeure Event and/or the failure of one or more satellites; (iii) Section 4.1 (Globalstar Exclusivity); (iv) Section 10 (Continuity of the Satellite Services); or (v) the “Assignment” section in Attachment 2; and 

(g)        an acquiror in a Sale Transaction fails to execute Attachment 7 or breaches any obligation of Attachment 7.

“Fundamental Breach Notice” is defined in Section 10.2(c) (Remedies for Fundamental Breaches).

“Globalstar” means Globalstar, Inc. and its Related Entities.

“Globalstar Covered Claims” is defined in Section 8.1 (Globalstar Indemnity).

“Globalstar Personnel” means officers, directors, agents, consultants, contractors, and employees of Globalstar. 

[*]

“ICC Rules” is defined in Attachment 2.

“Insolvency Laws” means Title 11 of the United States Code entitled “Bankruptcy” and any other applicable insolvency, winding-up, corporate arrangement, restructuring, examinership or reorganization or other similar law of any domestic or foreign jurisdiction now or hereafter in effect including any law of any jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its creditors against it. 

“Intercreditor Agreement” is defined in Section 10.2(b)(ii) (Required Resource Protections). 

 “Intellectual Property Rights” means any and all current and future rights in copyrights, trade secrets, know-how, trademarks, mask works, patents, design rights, trade dress, and any other intellectual property or proprietary rights that may exist anywhere in the world, including, in each case whether unregistered, registered, or comprising an application for registration, and all rights and forms of protection of a similar nature or having equivalent or similar effect to any of the foregoing. 

“Lenders” means any non-Globalstar entity party to the Loan Documents. 

“Loan Document” means any governing documentation related to Existing Debt and any amendments thereto.

[*]

“Monroe” is defined in Section 10.2(f)(i). 

“MSS Authority” means all Regulatory Rights necessary to provide the Satellite Services to and from fixed and mobile terminals located within a specific country or jurisdiction (subject to any required certifications for such mobile terminals). 

“NDA” means the confidentiality agreement, effective [*], between the parties, unless such agreement has been superseded then it shall be the non-disclosure agreement entered into by the parties and that has superseded the foregoing. 

“New CapEx” is defined in Section 2.2(c) (Deliverables and Services for Phase 2).

[*]

“Non-Solicitation Period” means any period in which the employee is providing Satellite Services under this Agreement, plus six months.

[*]

“Partner” means Partner Parent and its Related Entities. 

[*]

“Partner Covered Claims” is defined in Section 8.2 (Partner Indemnity).

[*]

“Partner Personnel” means officers, directors, agents, consultants, contractors, and employees of Partner. 

“Permitted Encumbrances” means: 

(h)        Encumbrances expressly granted or authorized by Partner under this Agreement; 

(i)         except with respect to the Spectrum Subsidiary’s non-equity assets, Encumbrances securing Existing Debt (or any refinancing, replacement or extension thereof and as such debt may be amended, restated, supplemented or otherwise modified but in each case subject to Section 10.2(a) (Asset Encumbrances)); 

(j)         except with respect to the Spectrum Subsidiary’s non-equity assets, Encumbrances arising in the ordinary course of business in favor of vendors, carriers, warehousemen, repairmen, mechanics, workmen, materialmen, construction or similar Encumbrances; 

(k)        except with respect to the Spectrum Subsidiary, unsecured claims or liabilities arising in connection with the ordinary course of Globalstar’s business that are not incurred against assets of Globalstar; or 

(l)         with respect to the Spectrum Subsidiary, restrictions on Globalstar’s spectrum imposed by the FCC or other regulatory bodies, and leases or licenses of Globalstar’s spectrum for terrestrial use entered into in accordance with Section 10.2(b)(v).

“Phase 1” is defined in Section 1.2(b) (Phase 1). 

“Phase 1 Service Period” means the period commencing upon Commercial Launch if Partner elects, in its sole discretion, to proceed with Commercial Launch and ending once the Phase 2 Service Period begins, unless the Agreement is terminated. 

“Phase 2” is defined in Section 1.2(c) (Phase 2). 

[*]

“Phase 2 Service Period” means the period commencing upon Phase 2 Service Period Launch if Partner elects, in its sole discretion, to proceed with Phase 2 by providing written notice to Globalstar and ending once the Agreement is terminated. 

[*]

“PRD” means the most recent version of a project requirements document provided by Partner to Globalstar, which may include the project schedule, Deliverables, Services, Required Resources, required Regulatory Rights and related milestones. PRDs may include “Minimum Requirements” that Globalstar must meet and “Target 

Requirements” (i.e., performance goals) that Globalstar shall use all reasonable efforts to meet. Partner may update the PRDs from time-to-time. Globalstar may propose updates to the PRDs and Partner will consider such updates.

“Preferred Stock” is defined in Section 10.2(b)(i) (Required Resource Protections). 

“Project” is defined in the Purpose. 

“Project IPR” is defined in Section 6.1 (Intellectual Property Rights). 

“Project Materials” shall mean all materials in any form or format that are generated by either party or provided by either party to the other party under or with respect to the Project or that include Partner’s Confidential Information (as defined in the NDA). 

“Regulatory Rights” means all third party (including legal and regulatory) rights, licenses, waivers, priorities, permits, consents, or other authorizations necessary to test or provide the Deliverables and Services, including filings with the ITU, FCC, or any other country’s regulatory body or international organization, landing rights, user allocations, experimental licenses, certifications, or applications for non-conforming operations. 

“Related Entities” means any other current or future corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization or other business entity that controls, is controlled by, or is under common control with an entity, where “control” means that the entity possesses, directly or indirectly, the power to direct or cause the direction of the management policies of the other entity, whether through ownership of voting securities, an interest in registered capital, by contract or otherwise. Notwithstanding the foregoing, Related Entities of Globalstar Inc. shall not include Thermo or any entities under common control with Thermo (and such entities shall be deemed “third parties” hereunder) that: (a) do not control Globalstar, Inc. or any of its subsidiaries; (b) are not involved in the performance of obligations under this Agreement; (c) are not direct or indirect subsidiaries of Globalstar Inc.; (d) except for rights incident to the ownership of common stock Globalstar, have no rights to or interest in any assets of Globalstar or any of its subsidiaries; and (e) are not parties to any agreements with Globalstar, Inc. or any of its subsidiaries (except with respect to any shareholder agreement). 

“Required Resources” is defined in Section 3.1 (Required Resources). 

[*]

“Sale Notice” is defined in Section 10.2(e)(i) (Sale Notice). 

“Sale Transaction” is defined in Section 10.2(e)(i) (Sale Notice). 

“Security Requirements” is defined in Attachment 2. 

“Satellite Failure” means a satellite that has permanently failed and is no longer suitable for the Satellite Services. 

“Satellite Services” is defined in Section 1.1 (Satellite Services). 

[*]

“Services” means the Satellite Services, the services to be performed by Globalstar as set forth in a PRD or SOW and as described in this KTA, and any other services not identified in a PRD or SOW that are provided by Globalstar to Partner to the extent that such services are not covered under the terms and conditions of a separate written agreement signed by the parties. 

[*]

“SOW” is defined in the Purpose. 

“Specifications” means the most current version of the applicable requirements, specifications and schedule provided by Partner, including Attachment 3 and Attachment 4, and each other PRD or SLA, and any applicable specifications provided by Globalstar and approved by Partner in writing. 

“Spectrum Subsidiary” is defined in Section 10.2(b) (Required Resource Protections). 

“Standards” means: (a) the applicable versions of any industry standards; (b) any certification requirements generally followed in the provision of Deliverables or Services of the type provided under the Agreement, for the United States, European Union and any other major market worldwide; and (c) all applicable legal and regulatory requirements.

[*]

“Thermo” means Thermo Funding II LLC. 

“Unavailable” is defined in Attachment 4, Section 2.3(a) (Unavailable). 

“US Bankruptcy Code” is defined in Attachment 2. 

“Warrant Agreements” means the Warrant Agreement No. 1 and Warrant Agreement No. 2 to be entered into between Partner Parent and Globalstar in the form set out in Attachment 14 and Attachment 15. 

“Wireless Device” means any mobile device capable of communicating wirelessly including through use of Wi-Fi, Bluetooth, cellular or other wireless protocols. 

The remaining attachments to this document been omitted pursuant to Item 601(a)(5) of Regulation S‐K because they do not contain information that is material to an investment or voting decision that is not otherwise disclosed herein or in the Current Report on Form 8-K to which this document is an exhibit. The subject matter of such attachments in conveyed in this document and in the Current Report on Form 8-K to which this document is an exhibit.ueec_ex101.htm

EXHIBIT 10.1
  
 COMMON STOCK PURCHASE AGREEMENT
  
 This Common Stock Purchase Agreement is entered into as of September 1, 2022 (this “Agreement”), by and between United Health Products, Inc., a Nevada corporation (the “Company”), and White Lion Capital, LLC, a Nevada limited liability company (the “Investor”).
  
 WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall purchase, from time to time, as provided herein, and the Company shall issue and sell Ten Million Dollars ($10,000,000) of the Company’s Common Stock (as defined below);
  
 WHEREAS, such sales of Common Stock by the Company to the Investor will be made in reliance upon the provisions of Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated by the Commission under the Securities Act, and the Compliance and Disclosure Interpretations, and upon such other exemption from the registration requirements of the Securities Act as may be available with respect to any or all of the issuances and sales of Common Stock by the Company to the Investor to be made hereunder;
  
 WHEREAS, in consideration for the Investor’s execution and delivery of this Agreement, the Company shall issue to the Investor the Commitment Shares, pursuant to and in accordance with Section 6.3;
  
 NOW, THEREFORE, the parties hereto agree as follows:
  
 Article I.
 CERTAIN DEFINITIONS
  
 Section 1.1 DEFINED TERMS. As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
  
 “Administrative Fee” shall mean $25,000.
  
 “Agreement” shall have the meaning specified in the preamble hereof.
  
 “Average Daily Trading Volume” shall mean the median daily trading volume of the Company’s Common Stock in the five (5) Business Days immediately preceding the delivery of a Purchase Notice.
  
 “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
  
 “Business Day” shall mean a full day on which the Principal Market shall be open for business.
  
 “Claim Notice” shall have the meaning specified in Section 9.3(a).
  
 “Clearing Costs” shall mean $600 to cover the Investor’s broker and Transfer Agent costs with respect to each deposit of the Purchase Notice Shares.
  
 “Closing” shall mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.2.
  
 “Closing Date” shall have the meaning specified in Section 2.2(b).
  
  
 
 	 
	
	

	 

 
 
  
 
 
 
 “Commitment Amount” shall mean Ten Million Dollars ($10,000,000).
  
 “Commitment Period” shall mean the period commencing on the Execution Date and ending on the earlier of (i) the date on which the Investor shall have purchased Purchase Notice Shares pursuant to this Agreement equal to the Commitment Amount and (ii) the first day of the month immediately following the thirty-six (36) month anniversary of the Execution Date.
  
 “Commitment Shares” shall have the meaning specified in Section 6.3.
  
 “Commitment Shares Determination Date” shall mean the following date on which the closing price of the Common Stock is the lowest among (i) either of the two Business Days prior to the filing of the Registration Statement, (ii) either of the two Business Days prior to the filing of any amendment thereto to cause the Registration Statement to become effective and (iii) the Execution Date
  
 “Common Stock” shall mean the Company’s common stock, $0.001 value per share, and any shares of any other class of common stock whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon liquidation of the Company).
  
 “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant, restricted stock unit, or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 “Company” shall have the meaning specified in the preamble to this Agreement.
  
 “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
 Bankruptcy Law.
  
 “Damages” shall mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees and disbursements and costs and expenses of expert witnesses and investigation).
  
 “Designated Brokerage Account” shall mean the Designated Brokerage Account provided by the Investor for the delivery of the applicable Purchase Notice Shares following receipt of a Purchase Notice.
  
 “Dispute Period” shall have the meaning specified in Section 9.3(a).
  
 “DTC” shall mean The Depository Trust Company, or any successor performing substantially the same function for the Company.
  
 “DTC/FAST Program” shall mean the DTC’s Fast Automated Securities Transfer Program.
  
 “DWAC” shall mean Deposit Withdrawal at Custodian as defined by the DTC.
  
 “DWAC Eligible” shall mean that (a) the Common Stock is eligible at DTC for full services pursuant to DTC’s Operational Arrangements, including, without limitation, transfer through DTC’s DWAC system, (b) the Company has been approved (without revocation) by the DTC’s underwriting department, (c) the Transfer Agent is approved as an agent in the DTC/FAST Program, (d) the Purchase Notice Shares and Commitment Shares are otherwise eligible for delivery via DWAC, and (e) the Transfer
  
  
 
 	 
	2
	

	 

 
 
  
 
 
 
 Agent does not have a policy prohibiting or limiting delivery of the Purchase Notice Shares and Commitment Shares, as applicable, via DWAC.
  
 “DWAC Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified Designated Brokerage Account with DTC under the DTC/FAST Program, or any similar program hereafter adopted by DTC performing substantially the same function.
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
 regulations promulgated thereunder.
  
 “Exchange Cap” shall have the meaning set forth in Section 7.1(c).
  
 “Execution Date” shall mean the date of this Agreement.
  
 “FINRA” shall mean the Financial Industry Regulatory Authority, Inc.
  
 “Floor Price” shall mean $0.25 per share, appropriately adjusted for any share dividend, share split, share combination, recapitalization or other similar transaction.
  
 “Indemnified Party” shall have the meaning specified in Section 9.2.
  
 “Indemnifying Party” shall have the meaning specified in Section 9.2.
  
 “Indemnity Notice” shall have the meaning specified in Section 9.3(e).
  
 “Investment Amount” shall mean the Purchase Notice Shares referenced in the applicable Purchase Notice multiplied by the applicable Purchase Price, less Clearing Costs applicable to such Purchase Notice Shares.
  
 “Investment Limit” shall mean $350,000.
  
 “Investor” shall have the meaning specified in the preamble to this Agreement.
  
 “Lien” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
  
 “Material Adverse Effect” shall mean any effect on the business, operations, properties, or financial condition of the Company and the Subsidiaries that is material and adverse to the Company and the Subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to enter into and perform its obligations under any Transaction Document.
  
 “National Exchanges” shall mean NYSE, NYSE AMEX, or Nasdaq.
  
 “PEA Period” shall mean the period commencing at 9:30 a.m., New York City time, on the fifth (5th) Business Day immediately prior to the filing of any post-effective amendment to the Registration Statement or any new registration statement, or any annual and quarterly report, and ending at 9:30 a.m., New York City time, on the Business Day immediately following (i) the Effective Date of such post- effective amendment of the Registration Statement or such new registration statement, or (ii) the date of filing of such annual and quarterly report, as applicable.
  
  
 
 	 
	3
	

	 

 
 
  
 
 
 
 “Person” shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
  
 “Principal Market” shall mean any of the National Exchanges, or Principal Quotation Systems or other principal exchange or recognized quotation system which is at the time the principal trading platform or market for the Common Stock.
  
 “Principal Quotation System” shall mean OTCQX, OTCQB, or OTC Pink.
  
 “Purchase Amount” means the most recent closing price of the Company’s Common Stock
 multiplied by the number of shares listed in the respective Purchase Notice.
  
 “Purchase Notice” shall mean a written notice from Company, substantially in the form of Exhibit A hereto, to Investor setting forth the Purchase Notice Shares which the Company intends to require Investor to purchase pursuant to the terms of this Agreement.
  
 “Purchase Notice Date” shall have the meaning specified in Section 2.2(a).
  
 “Purchase Notice Limit” shall mean for any Purchase Notice the Investor’s committed obligation under each Purchase Notice shall not exceed the Investment Limit; and the maximum amount of Purchase Notice Shares the Company may require the Investor to purchase under any Purchase Notice shall be 200% of the Average Daily Trading Volume. Notwithstanding the forgoing, the Investor may waive the Purchase Notice Limit at any time to allow the Investor to purchase additional shares under a Purchase Notice.
  
 “Purchase Notice Shares” shall mean all shares of Common Stock issued, or that the Company shall be entitled to issue, per applicable Purchase Notice in accordance with the terms and conditions of this Agreement.
  
 “Purchase Price” shall mean 93% multiplied by the lower of the (i) average daily VWAP of the Common Stock during the Valuation Period or (ii) the most recent closing price of the Company’s Common Stock prior to receipt of Purchase Notice; provided, however, if the Common Stock is trading on any National Exchange, the Purchase Price shall mean 95% multiplied by the lower of the (i) average daily VWAP of the Common Stock during the Valuation Period or (ii) the most recent closing price of the Company’s Common Stock prior to receipt of Purchase Notice.
  
 “Registration Statement” shall have the meaning specified in Section 6.2.
  
 “Regulation D” shall mean Regulation D promulgated under the Securities Act.
  
 “Rule 144” shall mean Rule 144 under the Securities Act or any similar provision then in force
 under the Securities Act.
  
 “SEC” shall mean the United States Securities and Exchange Commission.
  
 “SEC Documents” shall have the meaning specified in Section 4.5.
  
 “Securities” mean the Purchase Notice Shares and Commitment Shares to be issued to the Investor pursuant to the terms of this Agreement.
  
 “Securities Act” shall mean the Securities Act of 1933, as amended.
  
  
 
 	 
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 “Subsidiary” means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities Act.
  
 “Third Party Claim” shall have the meaning specified in Section 9.3(a).
  
 “Transaction Documents” shall mean this Agreement and all schedules and exhibits hereto and
 thereto.
  
 “Transfer Agent” shall mean the current transfer agent of the Company, and any successor transfer
 agent of the Company.
  
 “Valuation Period” shall mean the five (5) Business Days following the Purchase Notice Date.
  
 “VWAP” means, for any security as of any date, the volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded), during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its “VAP” function (set to 09:30 start time and 16:00 end time) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg or E*TRADE Securities LLC, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Investor. All such determinations shall be appropriately adjusted for any share dividend, share split, share combination, recapitalization or other similar transaction during such period.
  
 Article II.
 PURCHASE AND SALE OF COMMON STOCK
  
 Section 2.1 PURCHASE NOTICES. Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Purchase Notice from time to time, to purchase Purchase Notice Shares provided that the amount of Purchase Notice Shares shall not exceed the Purchase Notice Limit or cause the Investor’s ownership to exceed the Beneficial Ownership Limitation set forth in Section 7.2(f). The Company may not deliver a subsequent Purchase Notice until after the Closing of an active Purchase Notice, except if waived by the Investor in writing. Furthermore, the Company shall not deliver any Purchase Notices to the Investor during the PEA Period. Notwithstanding the foregoing, the Company may not submit a Purchase Notice to the Investor if the Purchase Amount is less than $30,000 or if the most recent closing price of the Company’s Common Stock is below the Floor Price unless waived by the Investor in writing.
  
  
 
 	 
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 Section 2.2 MECHANICS.
  
 (a) PURCHASE NOTICE. At any time and from time to time during the Commitment Period, except as provided in this Agreement, the Company may deliver a Purchase Notice to Investor, subject to satisfaction of the conditions set forth in Section 7 and otherwise provided herein. The Company shall deliver the Purchase Notice Shares as DWAC Shares to the Designated Brokerage Account alongside the delivery of the Purchase Notice. A Purchase Notice shall be deemed delivered on the Business Day (i) Exhibit A (Form of Purchase Notice), is received by email by the Investor and (ii) the DWAC of the applicable Purchase Notice Shares has been initiated and completed as confirmed by the Investor’s Custodian (the “Purchase Notice Date”). Each party shall use its best efforts to perform or fulfill all conditions and obligations to be performed or fulfilled by it under this Agreement so that the transactions contemplated hereby shall be consummated as soon as practicable. Each party also agrees that it shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective Section 2.2(a) of this Agreement and the transactions contemplated herein
  
 (b) CLOSING. The Closing of a Purchase Notice shall occur within one (1) Business Day following the end of the Valuation Period (the “Closing Date”); whereby the Investor shall deliver to the Company the applicable Investment Amount by wire transfer of immediately available funds on the Closing Date to the account designated by the Company.
  
 Article III.
 REPRESENTATIONS AND WARRANTIES OF INVESTOR
  
 The Investor represents and warrants to the Company that:
  
 Section 3.1 INTENT. The Investor is entering into this Agreement for its own account and the Investor has no present arrangement (whether or not legally binding) at any time to sell the Securities to or through any Person in violation of the Securities Act or any applicable state securities laws; provided, however, that the Investor reserves the right to dispose of the Securities at any time in accordance with federal and state securities laws applicable to such disposition.
  
 Section 3.2 NO LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.
  
 Section 3.3 ACCREDITED INVESTOR. The Investor is an accredited investor as defined in Rule 501(a)(3) of Regulation D, and the Investor has such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. The Investor acknowledges that an investment in the Securities is speculative and involves a high degree of risk.
  
 Section 3.4 AUTHORITY. The Investor has the requisite power and authority to enter into and perform its obligations under the Transaction Documents and to consummate the transactions contemplated hereby and thereby. The execution and delivery of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action and no further consent or authorization of the Investor is required. The Transaction Documents to which it is a party has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will constitute the valid and binding obligation of the Investor enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.
  
  
 
 	 
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 Section 3.5 NOT AN AFFILIATE. The Investor is not an officer, director or “affiliate” (as that term is defined in Rule 405 of the Securities Act) of the Company.
  
 Section 3.6 ORGANIZATION AND STANDING. The Investor is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents.
  
 Section 3.7 ABSENCE OF CONFLICTS. The execution and delivery of the Transaction Documents, and the consummation of the transactions contemplated hereby and thereby and compliance with the requirements hereof and thereof, will not (a) violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Investor, (b) violate any provision of any indenture, instrument or agreement to which the Investor is a party or is subject, or by which the Investor or any of its assets is bound, or conflict with or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant to the terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by the Investor to any third party, or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument, agreement, relationship or legal obligation to which the Investor is subject or to which any of its assets, operations or management may be subject.
  
 Section 3.8 DISCLOSURE; ACCESS TO INFORMATION. The Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has had access to all publicly available information with respect to the Company.
  
 Section 3.9 MANNER OF SALE. At no time was the Investor presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general solicitation or advertising with respect to the transaction contemplated by this Agreement, or the offering or sale of any securities by or on behalf of the Company.
  
 Article IV.
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
  
 The Company represents and warrants to the Investor that, except as disclosed in the SEC Documents or except as set forth in the disclosure schedules hereto:
  
 Section 4.1 ORGANIZATION OF THE COMPANY. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
  
  
 
 	 
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 Section 4.2 AUTHORITY. The Company has the requisite corporate power and authority to enter into and perform its obligations under the Transaction Documents. The execution and delivery of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board of Directors or stockholders is required. The Transaction Documents have been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.
  
 Section 4.3 CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 300,000,000 shares of Common Stock, par value of $0.001 per share, of which approximately 229,877,509 shares of Common Stock are issued and outstanding. Except as set forth on Schedule 4.3, the Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as set forth on Schedule 4.3 and except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investor) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.
  
 Section 4.4 LISTING AND MAINTENANCE REQUIREMENTS. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Principal Market. The Company is and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.
  
 Section 4.5 SEC DOCUMENTS; DISCLOSURE. Except as set forth on Schedule 4.5, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the one (1) year preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents when filed contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Documents comply as to form and substance in all material respects with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments). Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Investor will rely on the foregoing representation in effecting transactions in securities of the Company.
  
  
 
 	 
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 Section 4.6 VALID ISSUANCES. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid, and non-assessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.
  
 Section 4.7 NO CONFLICTS. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Purchase Notice Shares and Commitment Shares, do not and will not: (a) result in a violation of the Company’s or any Subsidiary’s certificate or articles of incorporation, by-laws or other organizational or charter documents, (b) conflict with, or constitute a material default (or an event that with notice or lapse of time or both would become a material default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, instrument or any “lock-up” or similar provision of any underwriting or similar agreement to which the Company or any Subsidiary is a party, or (c) result in a violation of any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or any Subsidiary or by which any property or asset of the Company or any Subsidiary is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of, conflict with or in default under any of the foregoing. The business of the Company is not being conducted in violation of any law, ordinance or regulation of any governmental entity, except for possible violations that either singly or in the aggregate do not and will not have a Material Adverse Effect. The Company is not required under federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under the Transaction Documents (other than any SEC, FINRA or state securities filings that may be required to be made by the Company in connection with the issuance of the Purchase Notice Shares and Commitment Shares or subsequent to any Closing or any registration statement that may be filed pursuant hereto); provided that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of the relevant representations and agreements of Investor herein.
  
  
 
 	 
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 Section 4.8 NO MATERIAL ADVERSE CHANGE. No event has occurred that would have a Material Adverse Effect on the Company that has not been disclosed in subsequent SEC filings.
  
 Section 4.9 LITIGATION AND OTHER PROCEEDINGS. Except as disclosed in the SEC Documents or as set forth on Schedule 4.9, there are no actions, suits, investigations, inquiries or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties, nor has the Company received any written or oral notice of any such action, suit, proceeding, inquiry or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction or decree or award has been issued by or, to the knowledge of the Company, requested of any court, arbitrator or governmental agency which would have a Material Adverse Effect. Except as disclosed in the SEC Documents or as set forth on Schedule 4.9, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director or officer of the Company or any Subsidiary.
  
 Section 4.10 REGISTRATION RIGHTS. No Person (other than the Investor) has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company or any Subsidiary, except as set forth on Schedule 4.10.
  
 Section 4.11NO STOCK PROMOTION. Neither the Company or its Subsidiaries, nor, to the Company’s knowledge, any of the employees of the Company or its Subsidiaries, has at any time during the last ninety (90) days: contracted with or made payment to any third party research, or stock promotion services in relation to the Company’s Common Stock.
  
 Section 4.12 ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SECURITIES. The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that the Investor is not (i) an officer or director of the Company, or (ii) an “affiliate” (as defined in Rule 144) of the Company. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by the Investor or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Shares. The Company further represents to the Investor that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.
  
 Article V. COVENANTS OF INVESTOR
  
 Section 5.1 SHORT SALES AND CONFIDENTIALITY. Neither the Investor, nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it, will execute any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance with Regulation SHO, the sale after delivery of the Purchase Notice of such number of shares of Common Stock reasonably expected to be purchased under the Purchase Notice shall not be deemed a Short Sale. The parties acknowledge and agree that during the Valuation Period, the Investor may contract for, or otherwise effect, the resale of the subject purchased Purchase Notice Shares to third-parties. The Investor shall, until such time as the transactions contemplated by the Transaction Documents are publicly disclosed by the Company in accordance with the terms of the Transaction Documents, maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents.
  
 Section 5.2 COMPLIANCE WITH LAW; TRADING IN SECURITIES. The Investor’s trading activities with respect to shares of Common Stock will be in compliance with all applicable state and federal securities laws and regulations and the rules and regulations of FINRA and the Principal Market.
  
  
 
 	 
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 Article VI.
 COVENANTS OF THE COMPANY
  
 Section 6.1 LISTING OF COMMON STOCK. The Company shall promptly secure the listing of all of the Purchase Notice Shares and Commitment Shares to be issued to the Investor hereunder on the Principal Market (subject to official notice of issuance) and shall use commercially reasonable best efforts to maintain, so long as any shares of Common Stock shall be so listed, the listing of all such Purchase Notice Shares and Commitment Shares from time to time issuable hereunder. The Company shall use its commercially reasonable efforts to continue the listing and trading of the Common Stock on the Principal Market (including, without limitation, maintaining sufficient net tangible assets) and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of FINRA and the Principal Market.
  
 Section 6.2 FILING OF CURRENT REPORT AND REGISTRATION STATEMENT. The Company agrees that it shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the SEC within the time required by the Exchange Act, relating to the transactions contemplated by, and describing the material terms and conditions of, the Transaction Documents (the “Current Report”). The Company shall permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least two (2) Business Days prior to its filing with the SEC, and the Company shall give reasonable consideration to all such comments. The Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within one (1) Business Day from the date the Investor receives it from the Company. The Company shall also file with the SEC, within two (2) Business Days from the date hereof, a new registration statement on Form S-1, Form S-3 or prospectus supplement (the “Registration Statement”) covering the resale of the Securities.
  
 Section 6.3 ISSUANCE OF COMMITMENT SHARES. In consideration for the Investor’s execution and delivery of this Agreement, the Company shall issue a number of duly authorized, validly issued, fully paid and non-assessable shares of Common Stock (the “Commitment Shares”) to the Investor, equal to the quotient obtained by dividing (i) $250,000 by (ii) the closing price of the Common Stock on the Commitment Shares Determination Date , which issuance shall be evidenced by one or more book- entry statement(s) reflecting the Commitment Shares in the name of the Investor. Such book-entry statement(s) shall be delivered electronically to the Investor’s email address set forth in Section 9.1. For the avoidance of doubt, all of the Commitment Shares shall be fully earned by the Investor and shall be non- refundable as of the Execution Date, regardless of whether any Purchase Notices are issued or settled hereunder or any subsequent termination of this Agreement. Upon issuance pursuant to this Section 6.3, the Commitment Shares shall constitute “restricted securities” as such term is defined in Rule 144(a)(3) under the Securities Act). The Commitment Shares shall constitute Registrable Securities and shall be included in the Registration Statement and any post-effective amendment thereto, and the prospectus included therein, and, if necessary to register the resale thereof by the Investor under the Securities Act, in any New Registration Statement and any post-effective amendment thereto, and the prospectus included therein, in each case in accordance with this Agreement, provided that, in addition to all other remedies at law or in equity or otherwise under this Agreement, failure to do so will result in liquidated damages of $50,000, being immediately due and payable to the Investor in cash.
  
  
 
 	 
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 Section 6.4 LIMITATION ON VARIABLE RATE TRANSACTIONS. During the Commitment Period, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction, other than in connection with an Exempt Issuance (as defined below). The Investor shall be entitled to seek injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages, without the necessity of showing economic loss and without any bond or other security being required. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any equity or debt securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock or Common Stock Equivalents either (A) at a conversion price, exercise price, exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the Common Stock at any time after the initial issuance of such equity or debt securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such equity or debt security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock (including, without limitation, any “full ratchet” or “weighted average” anti- dilution provisions, but not including any standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction), (ii) issues or sells any equity or debt securities, including without limitation, Common Stock or Common Stock Equivalents, either (A) at a price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock (other than standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction), or (B) that is subject to or contains any put, call, redemption, buy-back, price-reset or other similar provision or mechanism (including, without limitation, a “Black-Scholes” put or call right, other than in connection with a “fundamental transaction”) that provides for the issuance of additional equity securities of the Company or the payment of cash by the Company, or (iii) enters into any agreement, including, but not limited to, an “equity line of credit” or other continuous offering or indirect primary offering or similar offering of Common Stock or Common  Stock Equivalents, whereby  the Company may sell Common Stock or Common Stock Equivalents at a future determined price. For the avoidance of doubt, the offering and sale by the Company of Common Stock Equivalents with a customary anti-dilution adjustment that is triggered by the Company’s subsequent sale of equity securities at a price lower than the applicable conversion price shall not be deemed to be a prohibited Variable Rate Transaction. “Exempt Issuance” means the issuance of (a) Common Stock, options or other equity incentive awards to employees, officers, directors or vendors of the Company pursuant to any equity incentive plan or stock purchase plan duly adopted for such purpose, by the Board of Directors of the Company or a majority of the members of a committee of directors established for such purpose, (b) (1) any Securities issued to the Investor pursuant to this Agreement, (2) any securities issued upon the exercise or exchange of or conversion of any shares of Common Stock or Common Stock Equivalents held by the Investor at any time, (3) shares of Common Stock, Common Stock Equivalents or other securities issued to the Investor pursuant to any other existing or future contract, agreement or arrangement between the Company and the Investor, or (4) any securities issued upon the exercise or exchange of or conversion of any Common Stock Equivalents issued and outstanding on the date of this Agreement, provided that such securities referred to in this clause (3)  have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities, (c) securities issued pursuant to acquisitions, divestitures, licenses, partnerships, collaborations or strategic transactions approved by the Board of Directors or a majority of the members of a committee of directors established for such purpose, which acquisitions, divestitures, licenses, partnerships, collaborations or strategic transactions can have a Variable Rate Transaction component, (d) Common Stock issued pursuant to an “at-the-market offering” by the Company exclusively through a registered broker-dealer acting as agent of the Company pursuant to a written agreement between the Company and such registered broker-dealer, (e) debt or preferred securities, including, without limitation, debt or preferred securities that are convertible into or exchangeable for, or include the right to receive, shares of Common Stock, issued to a strategic party in a transaction in which the Company is not issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, either (A) at a fixed price, (B) at a price that is based upon and/or varies with the trading prices of or quotations for the Common Stock at any time after the initial issuance of such debt or preferred securities, or (C) at a price that is subject to being reset at some future date after the initial issuance of such debt security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, or (f) warrants or options or other Common Stock Equivalents that are convertible into, exchangeable or exercisable for, or include the right to receive, shares of Common Stock at a fixed price and not in the form of an indirect primary offering (which may be below the then current market price of the Common Stock), subject only to standard anti-dilution protection for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction. Upon a breach of this Section 6.3, the Company shall immediately issue as liquidated damages an amount of shares to the Investor equal to $500,000 divided by the closing price of the Common Stock on the date of the breach, irrespective of any other event or condition, including, without limitation, the Company’s submission of a Purchase Notice.
  
 Section 6.5 KEY PERSON. If at any time during the Commitment Period, the CEO, Director of Operations or Principal Financial Officer of the Company chooses to terminate their respective employment or consulting relationships with the Company, the Investor may, for a period of fifteen (15) Business Days following the disclosure of such event by the Company through a filing on Form 8-K, elect to terminate this Agreement. In the event no such notice of termination is delivered within fifteen days, the Investor’s commitment obligation under this Agreement shall remain in effect.
  
 Article VII. CONDITIONS TO DELIVERY OF
 PURCHASE NOTICE AND CONDITIONS TO CLOSING
  
 Section 7.1 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO ISSUE AND
 SELL PURCHASE NOTICE SHARES. The right of the Company to issue and sell the Purchase Notice Shares to the Investor pursuant to a Purchase Notice is subject to the satisfaction of each of the conditions set forth below, any one of which the Company may waive in its discretion:
  
 (a) ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Investor shall be true and correct in all material respects as of the date of this Agreement and as of the date of each Closing as though made at each such time.
  
 (b) PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to such Closing.
  
 (c) PRINCIPAL MARKET REGULATION. The Company shall not issue any Purchase Notice Shares, and the Investor shall not have the right to receive any Purchase Notice Shares, if the issuance of such Purchase Notice Shares would exceed the aggregate number of shares of Common Stock which the Company may issue without breaching the Company’s obligations under the rules or regulations of the Principal Market (the “Exchange Cap”).
  
 Section 7.2 CONDITIONS PRECEDENT TO THE OBLIGATION OF INVESTOR TO PURCHASE THE PURCHASE NOTICE SHARES. The obligation of the Investor hereunder to purchase Purchase Notice Shares is subject to the satisfaction of each of the following conditions, any one of which the Investor may waive in its discretion:
  
 (a) EFFECTIVE REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective and current for the resale by the Investor of the Purchase Notice Shares and Commitment Shares and (i) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to do so and (ii) no other suspension of the use of, or withdrawal of the effectiveness of, such Registration Statement or related prospectus shall exist.
  
  
 
 	 
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 (b) ACCURACY OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct in all material respects as of the date of this Agreement and as of the date of each Closing (except for representations and warranties specifically made as of a particular date).
  
 (c) PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects and within the designated time period all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied by the Company pursuant to Article 6.
  
 (d) NO INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely affects any of the transactions contemplated by the Transaction Documents, and no proceeding shall have been commenced that may have the effect of prohibiting or materially adversely affecting any of the transactions contemplated by the Transaction Documents.
  
 (e) NO SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC, the Principal Market or FINRA, or otherwise halted for any reason, and the Common Stock shall have been approved for listing or quotation on and shall not have been delisted from the Principal Market. In the event of a suspension, delisting, or halting for any reason, of the trading of the Common Stock, as contemplated by this Section 7.2(e), the Investor shall have the right to return to the Company any amount of Purchase Notice Shares associated with a Purchase Notice prior to the Closing thereof, and the Investment Amount with respect to such Purchase Notice shall be reduced accordingly.
  
 (f) BENEFICIAL OWNERSHIP LIMITATION. The number of Purchase Notice Shares then to be purchased by the Investor shall not exceed the number of such shares that, when aggregated with all other shares of Common Stock then owned by the Investor beneficially or deemed beneficially owned by the Investor, would result in the Investor owning more than the Beneficial Ownership Limitation (as defined below), as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes of this Section 7.2(f), in the event that the amount of Common Stock outstanding is greater on a Closing Date than on the date upon which the Purchase Notice associated with such Closing Date is given, the amount of Common Stock outstanding on such issuance of a Purchase Notice shall govern for purposes of determining whether the Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than the Beneficial Ownership Limitation following such Closing Date. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately prior to the issuance of shares of Common Stock issuable pursuant to a Purchase Notice. To the extent that the Beneficial Ownership Limitation is exceeded, the number of shares of Common Stock issuable to the Investor shall be reduced so it does not exceed the Beneficial Ownership Limitation.
  
 (g) PRINCIPAL MARKET REGULATION. The issuance of the Purchase Notice Shares shall not exceed the Exchange Cap.
  
  
 
 	 
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 (h) NO KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to have the effect of causing the Registration Statement to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Business Days following the Business Day on which such Purchase Notice is deemed delivered).
  
 (i) NO VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of the Purchase Notice Shares shall not violate the shareholder approval requirements of the Principal Market.
  
 (j) DWACELIGIBLE. The Common Stock must be DWAC Eligible and not subject to a “DTC chill”.
  
 (k) SEC DOCUMENTS. All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company with the SEC pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act.
  
 Article VIII.
 LEGENDS
  
 Section 8.1 NO RESTRICTIVE STOCK LEGEND. No restrictive stock legend shall be placed on the share certificates representing the Purchase Notice Shares and Commitment Shares.
  
 Section 8.2 INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way the Investor’s obligations hereunder to comply with all applicable securities laws upon the sale of the Common Stock.
  
 Article IX.
 NOTICES; INDEMNIFICATION
  
 Section 9.1 NOTICES. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, or email as a PDF (with confirmation of delivery), addressed as set forth below or to such other address as such party shall have specified most recently by written notice given in accordance herewith. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by email at the address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service or on the fifth business day after deposited in the mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
  
 The addresses for such communications shall be: If to the Company:
  
 United Health Products, Inc. 
 526 Commerce Circle, Ste. #102
  
 Mesquite, NV 89027
  
  
 
 	 
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 Email: b.thom@unitedhealthproductsinc.com If to the Investor:
  
 White Lion Capital, LLC 
 17631 Ventura Blvd #1008
 Encino, CA 91316
  
 Either party hereto may from time to time change its address or email for notices under this Section 9.1 by giving at least ten (10) days’ prior written notice of such changed address to the other party hereto.
  
 Section 9.2 INDEMNIFICATION. Each party (an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers, directors, employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages, joint or several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising out of or relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of the Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any post-effective amendment thereof or supplement thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii)  any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein were made, not misleading, or (iv) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result primarily from the Indemnified Party’s failure to perform any covenant or agreement contained in this Agreement or the Indemnified Party’s negligence, recklessness or bad faith in performing its obligations under this Agreement; provided, however, that the foregoing indemnity agreement shall not apply to any Damages of an Indemnified Party to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made by an Indemnifying Party in reliance upon and in conformity with written information furnished to the Indemnifying Party by the Indemnified Party expressly for use in the Registration Statement, any post-effective amendment thereof or supplement thereto, or any preliminary prospectus or final prospectus (as amended or supplemented).
  
 Section 9.3 METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party under Section 9.2 shall be asserted and resolved as follows:
  
  
 
 	 
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 (a) In the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against or sought to be collected from such Indemnified Party by a Person other than a party hereto or an affiliate thereof (a “Third Party Claim”), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party’s claim for indemnification that is being asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a “Claim Notice”) with reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party’s ability to defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires, at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim.
  
 (i) If the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Indemnified Party with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in the first sentence of this clause (i), file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary or appropriate to protect its interests; and provided, further, that if requested by the Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation. Notwithstanding the foregoing, the Indemnified Party may take over the control of the defense or settlement of a Third Party Claim at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.
  
 (ii) If the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Third Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party, which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this clause (ii) or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party shall reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.
  
  
 
 	 
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 (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to the Indemnified Party with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.
  
 (b) In the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of such claim (an “Indemnity Notice”) with reasonable promptness to the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall not impair such party’s rights hereunder except to the extent that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.
  
 (c) The Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.
  
 
 	 
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 (d) The indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.
  
 Article X.
 MISCELLANEOUS
  
 Section 10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California without regard to the principles of conflicts of law. Each of the Company and the Investor hereby submits to the exclusive jurisdiction of the United States federal and state courts located in California, County of Los Angeles, with respect to any dispute arising under the Transaction Documents or the transactions contemplated thereby.
  
 Section 10.2 JURY TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in respect of any matter arising out of or in connection with the Transaction Documents.
  
 Section 10.3 ASSIGNMENT. The Transaction Documents shall be binding upon and inure to the benefit of the Company and the Investor and their respective successors. Neither this Agreement nor any rights of the Investor or the Company hereunder may be assigned by either party to any other Person.
  
 Section 10.4 NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the benefit of the Company and the Investor and their respective successors, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as set forth in Sections 9.2 and 9.3.
  
 Section 10.5 TERMINATION. A non-breaching party may terminate this Agreement at any time by written notice to the breaching party in the event of a material breach of this Agreement by the breaching party. In addition, this Agreement shall automatically terminate on the earlier of (i) the end of the Commitment Period; (ii) the date that the Company sells and the Investor purchases the Commitment Amount; (iii) the date that, pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit of its creditors; or (iv) the tenth (10th) day after the Company notifies the Investor that the Agreement shall terminate, provided, however, that the provisions of Sections 4.5, 4.6, 4.11, 4.12, Article V, Sections 6.1, 6.2, 6.3, 6.4, Article IX and Article X shall survive the termination of this Agreement.
  
 Section 10.6 ENTIRE AGREEMENT. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the Company and the Investor with respect to the matters covered herein and therein and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
  
 Section 10.7 FEES AND EXPENSES. Except as expressly set forth in the Transaction Documents or any other writing to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay the Clearing Cost associated with each Closing, and any Transfer Agent fees (including any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Investor. The Investor shall withhold the Administrative Fee from the Investment Amount with respect to the first tranche of Securities purchased under this Agreement for reimbursement of the Investor’s legal fees.
  
  
 
 	 
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 Section 10.8 COUNTERPARTS. The Transaction Documents may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one and the same instrument. The Transaction Documents may be delivered to the other parties hereto by email of a copy of the Transaction Documents bearing the signature of the parties so delivering this Agreement.
  
 Section 10.9 SEVERABILITY. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be ineffective if it materially changes the economic benefit of this Agreement to any party.
  
 Section 10.10 FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
  
 Section 10.11 NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
  
 Section 10.12 EQUITABLE RELIEF. The Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Investor. The Company therefore agrees that the Investor shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.
  
 Section 10.13 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing or interpreting this Agreement.
  
 Section 10.14 AMENDMENTS; WAIVERS. No provision of this Agreement may be amended or waived by the parties from and after the date that is one (1) Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, (i) no provision of this Agreement may be amended other than by a written instrument signed by both parties hereto and (ii) no provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.
  
 Section 10.15 PUBLICITY. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement, other than as required by law, without the prior written consent of the other parties, which consent shall not be unreasonably withheld, delayed or conditioned, except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall provide the other party with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Investor without the prior written consent of the Investor, except to the extent required by law (it being agreed that disclosure of the Investor’s name in the Registration Statement and any prospectus relating to the registration of the Purchase Notice Shares and Commitment Shares, and in a Current Report on Form 8-K disclosing this transaction contemplated by this Agreement is required by law). The Investor acknowledges that the Transaction Documents may be deemed to be “material contracts,” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel.
  
 [Signature Page Follows]
  
  
 
 	 
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 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.
  
  
 
 	 	 United Health Products, Inc.
	
	 	 	 	 
		By:	/s/ Brian Thom	
	  
	 Name:
	Brian Thom	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	  
	 White Lion Capital, LLC
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Nathan Yee
	  

	  
	 Name:
	 Nathan Yee
	  

	  
	 Title:
	 Managing Partner
	  

 
 
  
 
 
 
 [Signature Page to equity purchase agreement]
  
  
 
 	 
	20
	

	 

 
  
 
 EXHIBIT A
  
 FORM OF PURCHASE NOTICE
  
 TO: [Insert Name]LLC
  
 We refer to the Common Stock Purchase Agreement, dated as of September 1, 2022 (the “Agreement”), entered into by and between United Health Products, Inc., and [Insert Name]LLC. Capitalized terms defined in the Agreement shall, unless otherwise defined herein, have the same meaning when used herein.
  
 We hereby:
  
 1)  Give you notice that we require you to purchase                                  Purchase Notice Shares; and
  
 2)  Certify that, as of the date hereof, the conditions set forth in Section 7 of the Agreement are satisfied.
  
  
 
 	 	 United Health Products, Inc.
	
	 	 	 	 
		By:		
	  
	 Name:
	Brian Thom	 
	 	Title: 	 Chief Executive Officer	 

 
 
  
  
 
 	 
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