Document:

Exhibit

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

among

EDGEWELL PERSONAL CARE, LLC, 
as the Seller,

EDGEWELL PERSONAL CARE COMPANY,
as Guarantor

and

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,
as the Purchaser

Dated as of September 15, 2017

Table of Contents
Page
SECTION 1.DEFINITIONS AND INTERPRETATION. ................................................................    1
Section 1.1.Definitions ....................................................................................................................    1
Section 1.2.Interpretation .............................................................................................................    10
SECTION 2.PURCHASE AND SALE; UNCOMMITTED ARRANGEMENT; TERM. .............    10
Section 2.1.Offer to Purchase; Purchase and Sale .......................................................................    10
Section 2.2.Purchase Price; Dilution Reserve ..............................................................................    11
Section 2.3.UNCOMMITTED ARRANGEMENT ......................................................................    12
Section 2.4.Term ............................................................................................................................    12
Section 2.5.Aggregate Unreimbursed Purchase Discount ............................................................    12
Section 2.6.Payment Amount ........................................................................................................    12
SECTION 3.PAYMENTS. ..............................................................................................................    12
Section 3.1.Late Payment Amount ................................................................................................    12
Section 3.2.Payments Generally ...................................................................................................    13
SECTION 4.NATURE OF FACILITY. .......................................................................................... 13
Section 4.1.True Sale .................................................................................................................... 13
Section 4.2.No Purchaser Liability ...............................................................................................    13
Section 4.3.Further Assurances ....................................................................................................    13
SECTION 5.SERVICER. ................................................................................................................14
Section 5.1.Appointment of the Seller as a Servicer .....................................................................    14
Section 5.2.Servicing Covenants ...................................................................................................    14
Section 5.3.Determination of Dilutions .........................................................................................15
Section 5.4.Past Due Receivables .................................................................................................    15
Section 5.5.Termination of Appointment .......................................................................................    15
Section 5.6.Distributions of Collections .......................................................................................    16
SECTION 6.SERVICING REPORTS. ............................................................................................    17
Section 6.1.Servicing Reports and Submission of Receivable Information ..................................    17
Section 6.2.Reconciliation .............................................................................................................    17
SECTION 7.OTHER INFORMATION; THE SELLER’S BOOKS AND RECORDS; INSPECTION; THE PURCHASER’S RECORDS. ..................................................    17
Section 7.1.Other Information ......................................................................................................    17
Section 7.2.The Seller’s Books and Records .................................................................................    18
Section 7.3.Inspection ...................................................................................................................    18
Section 7.4.The Purchaser’s Records ............................................................................................    18
SECTION 8.CONDITIONS PRECEDENT. ...................................................................................    18
Section 8.1.Conditions Precedent to the Closing Date .................................................................    18

Section 8.2.Conditions Precedent to Each Purchase ....................................................................    19
SECTION 9.REPRESENTATIONS AND WARRANTIES. ..........................................................    20
Section 9.1.Generally ................................................................................................................... 20
Section 9.2.Purchased Receivables ..............................................................................................    21
Section 9.3.Guarantor Representations ........................................................................................    23
SECTION 10.COVENANTS. .......................................................................................................... 25
Section 10.1.The Seller’s Covenants ..............................................................................................     25
SECTION 11.REPURCHASE OF PURCHASED RECEIVABLES; GUARANTY. ......................    26
Section 11.1.Repurchase Price .......................................................................................................    26
Section 11.2.Repurchase .................................................................................................................    26
Section 11.3.Re-assignment ............................................................................................................    26
Section 11.4.Guaranty ....................................................................................................................    26
SECTION 12.TAXES, ETC. ............................................................................................................     27
Section 12.1.Taxes ..........................................................................................................................    27
Section 12.2.Duties and Taxes ........................................................................................................    28
SECTION 13.MISCELLANEOUS. .................................................................................................    28
Section 13.1.Indemnity ...................................................................................................................    28
Section 13.2.Expenses ....................................................................................................................    29
Section 13.3.Setoff ..........................................................................................................................    29
Section 13.4.Notices, Addresses .....................................................................................................    29
Section 13.5.Certificates and Determinations ................................................................................    31
Section 13.6.Assignments and Transfers ........................................................................................    31
Section 13.7.Waivers, Remedies Cumulative ..................................................................................    31
Section 13.8.Accounting Treatment; Non-Reliance ........................................................................    31
Section 13.9.Third Party Rights ......................................................................................................    31
Section 13.10.Counterparts ..............................................................................................................    31
Section 13.11.Entire Agreement ........................................................................................................    31
Section 13.12.Exclusion of Liability .................................................................................................    32
Section 13.13.Invalidity ....................................................................................................................    32
Section 13.14.Governing Law ...........................................................................................................    32
Section 13.15.Consent to Jurisdiction ..............................................................................................    32
Section 13.16.WAIVER OF JURY TRIAL ......................................................................................    32
Section 13.17.USA Patriot Act ..........................................................................................................    32
Section 13.18.Confidentiality ............................................................................................................    33
Section 13.19.Communication Through the PrimeRevenue System .................................................    33

Schedule A     Approved Obligors 
Schedule B     UCC Information
Schedule C    Electronic Services Schedule

Exhibit A    Form of Servicing Report

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT, dated as of September 15, 2017 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), among EDGEWELL PERSONAL CARE, LLC, a Delaware limited liability company (the “Seller”), EDGEWELL PERSONAL CARE COMPANY, a Missouri corporation (the “Guarantor”), and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH (the “Purchaser”). 

RECITAL:
From time to time during the term hereof, the Seller may sell accounts receivable to the Purchaser, and the Purchaser may in its sole discretion agree to purchase such accounts receivable from the Seller, in each case, on the terms and subject to the conditions set forth in this Agreement.
		
	SECTION 1.
	DEFINITIONS AND INTERPRETATION. 

Section 1.1.    Definitions.  In this Agreement, the following terms shall have the meanings ascribed thereto:
“Accrued Aggregate Unreimbursed Purchase Discount” means, in relation to a given Settlement Date, the portion of the Aggregate Unreimbursed Purchase Discount accrued during the immediately preceding Settlement Period.
“Actual Dilution Amount” means with respect to any Purchased Receivable all Dilutions (including Disputes) related to such Purchased Receivable, other than Dilutions taken into account in determining the Purchase Price (or Adjusted Purchase Price, if applicable) of such Purchased Receivable as of the Purchase Date.
“Adjusted Discount” means, with respect to any Purchased Receivable for a Settlement Period, an amount determined as follows:
“Adjusted Discount”  =  (NFV – Dres) x DRate x (Days / 360), in which:
	
		
	Term
	Definition

	“NFV” equals    
	Net Face Value of such Receivable as of the first day of such Settlement Period

	“DRate” equals
	Adjusted Discount Rate applicable to such Receivable

	“DRes” equals
	Dilution Reserve applicable to such Receivable

	“Days” equals
	Number of days in such Settlement Period

“Adjusted Discount Rate” means, with respect to any Receivable for a Settlement Period, a rate per annum equal to the sum of (i) LIBOR as determined by the Purchaser for an assumed interest period of 30 days commencing two (2) Business Days prior to the first day of such Settlement Period, plus (ii) the Applicable Margin for the Obligor of such Receivable.
“Adjusted Purchase Price” as defined in Section 2.2.

“Adverse Claim” means any mortgage, assignment, security interest, pledge, lien or other encumbrance securing any obligation of any Person or any other type of adverse claim or preferential arrangement having a similar effect (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof), in each case other than as arising under this Agreement.
“Affiliate” means any Person controlling, controlled by or under common control with, the Seller.
“Aggregate Unreimbursed Purchase Discount” means, as of any Reconciliation Date, with respect to all outstanding Purchased Receivables for which the Purchaser elected, in accordance with Section 2.2, not to deduct the Discount from the Net Face Value when calculating the Purchase Price or Adjusted Purchase Price of such Purchased Receivables, an amount equal to the aggregate of all Adjusted Discounts for such Purchased Receivables for the Settlement Period ending on such Reconciliation Date,  which Adjusted Discounts otherwise have not been paid by the Seller to the Purchaser by deposit into the Purchaser’s Account.
“Agreement” as defined in the preamble hereto.
“Anti-Corruption Laws” means the Foreign Corrupt Practices Act of 1977 and the rules and regulations promulgated thereunder, and all other laws, rules, and regulations of any jurisdiction applicable to the Seller, the Guarantor or any of their respective Subsidiaries concerning or relating to bribery or corruption.
“Anti-Money Laundering Laws” means the PATRIOT Act, the Money Laundering Control Act of 1986, the Bank Secrecy Act, and the rules and regulations promulgated thereunder, and corresponding laws of the jurisdictions in which the Seller, the Guarantor or any of their respective Subsidiaries operate or in which the proceeds of any purchase of Receivables under this Agreement will be used.
“Applicable Margin” means for each Approved Obligor, the rate per annum set forth under the heading “Applicable Margin” for such Approved Obligor on Schedule A, as adjusted from time to time as mutually agreed in writing by the Seller and the Purchaser.
“Approved Obligor” means each Obligor listed on Schedule A, as such list may be amended from time to time to add or delete any Obligor (including a subsidiary of an Obligor), as mutually agreed in writing by the Seller and the Purchaser.
“Approved Obligor Buffer Period” means for each Approved Obligor, the number of days set forth under the heading “Approved Obligor Buffer Period” for such Approved Obligor on Schedule A, as adjusted from time to time, based on the payment history of the Receivables of such Approved Obligor, as mutually agreed in writing by the Seller and the Purchaser.
“Approved Obligor Sublimit” means for each Approved Obligor, the amount set forth under the heading “Approved Obligor Sublimit” for such Approved Obligor on Schedule A, as adjusted from time to time as mutually agreed in writing by the Seller and the Purchaser.
“Business Day” means a day that is not a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed; provided that, when used in connection with determining LIBOR, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.
“Closing Date” means, subject to Section 8.1, the date of this Agreement.

“Collection Date” means, with respect to any Purchased Receivable, the date, following payment by or on behalf of the Obligor of Collections representing the final balance thereon (reflecting any Actual Dilution Amount), on which all such Collections with respect to such Purchased Receivable have been received by the Purchaser, including (if applicable) the date on which such Purchased Receivable is repurchased in full pursuant to Section 11.
“Collections” means, with respect to any Purchased Receivable, all payments made on such Purchased Receivable and any other payments, receipts or recoveries received by or on behalf of the Seller with respect to such Purchased Receivable.
“Contract” means, with respect to any Receivable, the applicable contract or purchase order with respect to such Receivable between the Seller and the applicable Approved Obligor, as the same may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof.
“Deferred Purchase Price” means, with respect to each Purchased Receivable on any date, an amount equal to the difference between (i) the Dilution Reserve as in effect for a Purchased Receivable on the date such Purchased Receivable was sold by the Seller to the Purchaser, minus (ii) the Actual Dilution Amount on such date; provided, that, if such difference is a negative number, then the Deferred Purchase Price shall be zero.
“Dilution” means, with respect to any Receivable, the aggregate amount of any reductions or adjustments in the amount of such Receivable as a result of any defective, rejected, returned, repossessed or foreclosed goods or services, any failure to provide services or any credit, rebate, sales allowance, discount or other adjustment or setoff, but excluding any reduction or adjustment arising out of or relating to non-payment of any Purchased Receivable to the extent such non-payment results from an Insolvency Event of the applicable Approved Obligor or the financial inability of the Obligor to pay such Purchased Receivable on the applicable Maturity Date.
“Dilution Reserve” means, with respect to any Receivable, 10.0% of the Net Face Value of such Receivable as of the applicable Purchase Date, as such percentage may be adjusted from time to time as mutually agreed in writing by the Seller and the Purchaser.
“Dilution Reserve Deficit” as defined in Section 2.2(c). 
“Dilution Reserve Deficit Payment Date” means, with respect to a Purchased Receivable for which there is a Dilution Reserve Deficit, the earlier of (x) the Settlement Date immediately following the Settlement Period during which the Collection Date with respect to such Receivable occurred, or (y) the Settlement Date immediately following the 50th calendar day after the Maturity Date thereof. 
“Dilution Reserve Surplus” as defined in Section 2.2(c). 
“Dilution Reserve Surplus Payment Date” means, with respect to a Purchased Receivable for which there is a Dilution Reserve Surplus, the Settlement Date immediately following the Settlement Period during which the Collection Date with respect to such Receivable occurred; provided that if the Collection Date with respect to such Receivable does not occur solely as a result of an Insolvency Event of the Obligor thereof or the financial inability of such Obligor to pay such Purchased Receivable, Dilution Reserve Surplus Payment Date shall mean the date after the Maturity Date of such Receivable on which the Purchaser reasonably determines that all Dilutions (including Disputes) with respect to all outstanding Purchased Receivables have been determined.

“Discount” means, with respect to any Receivable, the amount determined as the “Discount” in the calculation of the Purchase Price for such Receivable pursuant to Section 2.2.
“Discount Period” means, with respect to any Receivable, the number of days from (and including) the date on which the Purchase Price of such Receivable is paid to (but not including) the date which is the number of days after the Maturity Date of such Receivable equal to the Approved Obligor Buffer Period for the Approved Obligor of such Receivable.
“Discount Rate” means, with respect to any Receivable, a rate per annum equal to the sum of (i) LIBOR as determined by the Purchaser for a  period equal to the Discount Period applicable to such Receivable determined as of two (2) Business Days prior to the date on which the Purchase Price for such Receivable is paid, plus (ii) the Applicable Margin for the Obligor of such Receivable. 
“Dispute” means, with respect to any Receivable, any Dilution with respect to such Receivable (other than any Dilutions specifically taken into account in determining the Purchase Price (or Adjusted Purchase Price, if applicable) for such Receivable), or any claim, offset, defense, counterclaim, discount, allowance, or warranty issue of any kind between the Seller and the applicable Approved Obligor (or any of their respective affiliates) relating to such Receivable, including, without limitation, any products liability claim arising out of or in connection with such Receivable.
“Dollar” and “$” means the lawful currency of the United States of America.
“Edgewell Credit Agreement” means the Credit Agreement, dated as of June 1, 2015, among Edgewell Personal Care Company, certain of its subsidiaries, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other parties thereto, and any other credit agreement, indenture, note purchase agreement or other agreement replacing or refinancing same in whole or in part, in each instance, as amended, restated, modified or supplemented from time to time.
“Existing Depositary Account” means JPMorgan Chase Bank, N.A. (ABA XXXXXXXXX) deposit account number XXXXXXXXX.
“Final Collection Date” means the Business Day following the termination of purchases under this Agreement on which all amounts to which the Purchaser shall be entitled in respect of Purchased Receivables and all other amounts owing to the Purchaser hereunder and under the other Purchase Documents are paid in full (other than unasserted, contingent indemnification obligations). 
“Final Maturity Date” means the Maturity Date of the last outstanding Purchased Receivable.
“Funded Amount” means, as of any date of determination, the difference between (a) the sum of all Purchase Prices or Adjusted Purchase Prices paid hereunder and (b) the sum of all Collections and payments of Dilution Reserve Deficit actually received by the Purchaser by deposit into the Purchaser’s Account; provided, however, that Collections on any Purchased Receivable in excess of such Receivable’s Net Adjusted Face Value shall be disregarded for the purpose of clause (b).
“GAAP” means United States generally accepted accounting principles in effect as of the date of determination thereof.
“Goods” means, with respect to any Receivable, those goods sold by the Seller to the applicable Approved Obligor and any related services provided by the Seller to such Approved Obligor pursuant to the applicable Contract.

“Governmental Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Guarantor” as defined in the preamble hereto.
“Indemnified Liabilities” as defined in Section 13.1. 
“Indemnified Party” as defined in Section 13.1.
“Insolvency Event” means, with respect to any Person, such Person (i) is dissolved (other than pursuant to a consolidation, amalgamation or merger); or (ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; or (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors; or (iv) institutes or has instituted against it a proceeding seeking judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency Law or other similar Law affecting creditor’s rights, or a petition is presented for its winding‐up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding up or liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within sixty (60) days of the institution or presentation thereof; or (v) has a resolution passed for its winding‐up, official management or liquidation; or (vi) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all of its assets; or (vii) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within sixty (60) days thereafter, or (viii) causes or is subject to any event with respect to it which, under the applicable Laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (i) to (vii) (inclusive), or (ix) takes any corporate or other organizational action to authorize any of the foregoing.
“Invoice” means, with respect to any Receivable, the invoice with respect to such Receivable issued by the Seller to the applicable Approved Obligor for the payment for the applicable Goods supplied or related services provided pursuant to the applicable Contract.
“Late Payment Amount” as defined in Section 3.1. 
“Law” means any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of any Governmental Authority.
“LIBOR” means the rate established by the Purchaser (calculated on the basis of actual days elapsed over a 360-day year) equal to the London interbank offered rate, as administered by the ICE Benchmark Administration (or any other person that takes over the administration of such rate) appearing on the Reuters page that displays such rate (such page currently being the LIBOR01 page) as of 1:00 p.m. (London time) two London business days immediately preceding the related Purchase Date with respect to a Purchased Receivable for the period matching the Discount Period for the Purchased Receivable or in any other case, two London business days immediately preceding the first day for which such rate is accruing, for a period matching the period over which such rate has accrued; provided, however, if a Discount Period or such other period does not match an available LIBOR quotation, then the Purchaser shall determine LIBOR for the purpose of such Discount Period or other period by linear interpolation of the nearest two LIBOR rates. In the event that such rate does not appear on such page or service at such time, “LIBOR” shall be determined 

by reference to such other comparable publicly available service for displaying the offered rate for deposits in Dollars in the London interbank market as may be selected by the Purchaser and, in the absence of availability, such other method to determine such offered rate as may be selected by the Purchaser in its commercially reasonable judgment.  Notwithstanding the foregoing, in no event shall LIBOR be less than zero.
“Maturity Date” means, with respect to any Receivable, the date on which such Receivable becomes due and payable as set forth in the applicable Invoice.
“Maximum Facility Amount” means $150,000,000.
“Maximum Funded Amount” means the lesser of (a) the Total Outstanding Amount for all Purchased Receivables and (b) the Maximum Facility Amount.
“Net Adjusted Face Value” means, with respect to any Receivable, the sum of (i) the Net Face Value of such Receivable, minus (ii) the Dilution Reserve for such Receivable (provided, that the Dilution Reserve shall be deemed to be zero for the purpose of clause (ii) if an Insolvency Event has occurred with respect to the Approved Obligor thereof). 
“Net Face Value” means, with respect to any Receivable, the amount payable by the applicable Approved Obligor under the applicable Invoice, net of any Taxes and (without duplication) any Dilutions (other than the Dilution Reserve) specifically taken into account in determining the Purchase Price (or Adjusted Purchase Price, if applicable) for such Receivable as of the applicable Purchase Date.
“Non-Payment Event” as defined in Section 5.4. 
“Non-Payment Report” as defined in Section 5.4. 
“Obligor” means, with respect to any Receivable, the Person that is obligated to make payments in respect of such Receivable pursuant to the applicable Contract.
“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury, or any successor thereto.
“Overdue Receivable” as defined in Section 5.4. 
“PATRIOT Act” as defined in Section 13.17.
“Payment Amount” means, as of any given Reconciliation Date, an amount equal to:
(i)    the Maximum Funded Amount on such Reconciliation Date; minus 
(ii)    the Funded Amount as of the immediately preceding Settlement Date; minus
(iii)    the Accrued Aggregate Unreimbursed Purchase Discount on such Reconciliation Date; plus
(iv)    any Servicing Fee payable to the Seller on such Reconciliation Date; plus

(v)    any other amounts owing to the Seller by the Purchaser under this Agreement on such Reconciliation Date (including, without limitation, any Dilution Reserve Surplus and Deferred Purchase Price); minus
(vi)    any other amounts owing to the Purchaser by the Seller under this Agreement on such Reconciliation Date (including, without limitation, any Dilution Reserve Deficit and Repurchase Price).
“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.
“Prime Commercial Rate” means the rate of interest most recently published in the Money Rates section of The Wall Street Journal from time to time as the Prime Rate in the United States of America or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Purchaser) or any similar release by the Federal Reserve Board (as determined by the Purchaser).  Any change in such prime rate shall take effect at the opening of business on the day specified in the public announcement of such change.
“PrimeRevenue System” means the Purchaser’s communication tool accessible via the internet to enable clients to offer various receivables for sale to the Purchaser and for the loading, approval and monitoring of such receivables on a platform, the terms of use of which are set out in Schedule C.
“Purchase Date” means with respect to any Purchased Receivable, the date on which such Purchased Receivable was purchased by the Purchaser in accordance with the terms and conditions hereof.
“Purchase Date Payment” as defined in Section 2.2(a).
“Purchase Document” means each of this Agreement, and each Servicing Report, together with all other documents, instruments or agreements executed and delivered or submitted via the PrimeRevenue System to or for the benefit of the Purchaser in connection herewith.
“Purchase Price” means, with respect to any Receivable, the amount determined as the “Purchase Price” pursuant to Section 2.2.
“Purchased Receivable” means a Receivable purchased by the Purchaser in accordance with the terms and conditions hereof; provided that a Receivable purchased hereunder and subsequently repurchased by the Seller pursuant to the terms and conditions hereof shall, upon the Repurchase Date therefor and upon receipt by the Purchaser of the Repurchase Price therefor, cease to be a Purchased Receivable.
“Purchaser” as defined in the preamble hereto.
“Purchaser’s Account” means the account of the Purchaser located at The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch (ABA XXX-XXX-XXX), Swift address XXXXXXXX, account name “XXX” with account number XXXXXXXX and reference name “Edgewell Personal Care”, or such other account as notified to the Seller from time to time by the Purchaser in writing.

“Receivable” means the monetary obligation of an Obligor to the Seller arising under a Contract which is evidenced by an Invoice (including the right to receive payment of any interest or finance charges or other liabilities of such Obligor under such Contract), all Related Assets with respect thereto, and all Collections and other proceeds with respect to the foregoing.
“Reconciliation Date” as defined in Section 6.1. 
“Related Assets” means, with respect to any Receivable (i) all related rights and remedies under or in connection with the applicable Contract, including bills of lading, bills of exchange, promissory notes and accessions, (ii) all guaranties, suretyships, letters of credit, security, liens and other arrangements supporting payment thereof, (iii) all applicable Sales Records (including electronic records), (iv) all related insurance, and (v) all proceeds of the foregoing.
“Remittance Account” means the account of the Seller located at JPMorgan Chase Bank, N.A. (ABA XXXXXXXXX) with account number XXXXXXXXX, or such other account as notified to the Purchaser from time to time by the Seller in writing.
“Repurchase Date” means, with respect to any Purchased Receivable, the date on which such Purchased Receivable is repurchased by the Seller in accordance with the terms and conditions hereof.
“Repurchase Event” means, with respect to any Purchased Receivable: (i) any representation or warranty made by the Seller in Section 9.2 with respect to such Purchased Receivable shall be inaccurate, incorrect or untrue on any date as of which it is made or deemed to be made; (ii) a Dispute shall have occurred with respect to such Purchased Receivable; (iii) an Adverse Claim shall exist with respect to such Purchased Receivable; (iv) a breach by the Seller of its obligations under Section 4.3 with respect to such Purchased Receivable; or (v) the assignment or purported assignment of such Purchased Receivable by the Seller to the Purchaser is or becomes invalid or unenforceable (whether against the Approved Obligor of such Purchased Receivable or otherwise) for any reason other than the creditworthiness of the Approved Obligor, including, without limitation, an Insolvency Event of the applicable Approved Obligor or the financial inability of such Approved Obligor to pay such Purchased Receivable on the applicable Maturity Date.
“Repurchase Price” means, with respect to any Purchased Receivable, the amount determined as the “Repurchase Price” for such Purchased Receivable pursuant to Section 11.1.
“Retained Obligations” as defined in Section 4.2.
“Retired Invoice” means an Invoice with an outstanding balance that has been reduced to zero in the Seller’s accounting records, whether as a result of the payment of such invoice, any reduction or adjustment of the balance of such invoice, or any combination thereof.
“Sales Records” means, with respect to any Receivable, the accounts, all sales ledgers, purchase and sales day books, sales invoices, supply contracts and other related books and records of the Seller relating to an Approved Obligor and on an individual Receivable basis for the purpose of identifying amounts paid or to be paid in respect of such Receivable.
“Sanctioned Country” means a country or territory that is or whose government is subject to a sanctions program that broadly prohibits dealings with that country, territory or government.
“Sanctioned Person” means, at any time, any Person (a) that is listed on the Specially Designated Nationals and Blocked Persons list or the Consolidated Sanctions list maintained by OFAC, or any similar 

list maintained by OFAC, the U.S. Department of State, the European Union, any European Union member state or the United Nations Security Council; (b) that is fifty-percent or more owned, directly or indirectly, in the aggregate by one or more Persons described in clause (a) above; (c) that is operating, organized or resident in a Sanctioned Country or (d) with whom engaging in trade, business or other activities is otherwise prohibited or restricted by Sanctions Laws.
“Sanctions Laws” means the laws, rules, regulations and executive orders promulgated or administered to implement economic sanctions or anti-terrorism programs by (a) any U.S. Governmental Authority (including, without limitation, OFAC), including Executive Order 13224, the PATRIOT Act, the Trading with the Enemy Act, the International Emergency Economic Powers Act and the laws, regulations, rules and/or executive orders relating to restrictive measures against Iran; (b) the European Union in pursuit of the Common Foreign and Security Policy objectives set out in the Treaty on European Union; (c) the United Nations Security Council or any other legislative body of the United Nations; and (d) any jurisdiction in which the Seller, the Guarantor or any of their respective Subsidiaries operate or in which the proceeds of any purchase of Receivables under this Agreement will be used.
“Seller” as defined in the preamble hereto.
“Servicing Fee” as defined in Section 5.1.
“Servicing Report” means a servicing report in the form of Exhibit A or otherwise in form and substance satisfactory to the Purchaser and the Seller.
“Settlement Date” means each Thursday; provided, however, that if a Settlement Date falls on a day that is not a Business Day, then the Settlement Date shall be the next following Business Day.
“Settlement Period” means the period from (and including) one Reconciliation Date to (but excluding) the immediately following Reconciliation Date.
“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided, in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding. 
“Taxes” means all present and future income and other taxes, levies, imposts, deductions, charges, duties and withholdings and any charges of a similar nature imposed by any fiscal authority, together with any interest thereon and any penalties with respect thereto and any payments made on or in respect thereof; and “Taxation” and “Tax” shall be construed accordingly. 
“Total Outstanding Amount” means, as of any date of determination, either:
(a)     if such amount is being determined for all Purchased Receivables for all Approved Obligors, the result of (i) the sum of the Net Adjusted Face Values of all Purchased Receivables (for each Purchased Receivable, such Net Adjusted Face Value being determined as of such date) in respect of which the Purchaser has not received payment in full, minus (ii) all Collections and 

payments of Dilution Reserve Deficit received and deposited in the Purchaser’s Account in connection with such Purchased Receivables; provided, however, that Collections on such Purchased Receivable in excess of such Purchased Receivable’s Net Adjusted Face Value shall be disregarded unless an Insolvency Event has occurred with respect to the Approved Obligor thereof; or
(b)     if such amount is being determined for Purchased Receivables of any particular Approved Obligor, the result of (i) the sum of the Net Adjusted Face Value of all Purchased Receivables of such Approved Obligor (for each such Purchased Receivable, such Net Adjusted Face Value being determined as of such date) in respect of which the Purchaser has not received payment in full, minus (ii) all Collections and payments of Dilution Reserve Deficit received and deposited in the Purchaser’s Account in connection with such Purchased Receivables of such Approved Obligor; provided, however, that Collections on such Purchased Receivable in excess of such Purchased Receivable’s Net Adjusted Face Value shall be disregarded unless an Insolvency Event has occurred with respect to the Approved Obligor thereof.
“UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York; provided, if by reason of mandatory provisions of Law, the perfection, the effect of perfection or non-perfection or the priority of the security interests of the Purchaser is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.
“UCC Information” means the information set forth on Schedule B. 
Section 1.2.    Interpretation.  In this Agreement, unless otherwise indicated, (a) defined terms may be used in the singular or the plural and the use of any gender includes all genders, (b) the words “hereof”, “herein”, “hereto”, “hereby” and “hereunder” refer to this entire Agreement, (c) all references to particular Sections, Exhibits or Schedules are references to the Sections, Exhibits or Schedules, as the case may be, of this Agreement, (d) all accounting terms not specifically defined herein shall be construed in accordance with GAAP, except as otherwise stated herein, and (e) reference to any Person includes such Person’s successors and legal assigns.
		
	SECTION 2.
	PURCHASE AND SALE; UNCOMMITTED ARRANGEMENT; TERM.

Section 2.1.    Offer to Purchase; Purchase and Sale.  On the date that is two (2) Business Days prior to the Closing Date, the Seller will submit to the Purchaser the initial Servicing Report and details of the Receivables to be included in the initial purchase, in the manner and as more fully described in Section 6.1, and simultaneously with the submission of such Servicing Report and Receivables information, the Seller will be deemed to offer to the Purchaser, and subject to the satisfaction of the conditions set forth in Sections 8.1 and 8.2, the Purchaser will purchase from the Seller on the Closing Date, without any further action on the part of the Seller, all of the Seller’s right, title and interest in and to all outstanding Receivables of the Seller specified on such Servicing Report and in the related Receivables information.  On each Business Day following the Closing Date during the term of this Agreement, Seller will be deemed to offer to the Purchaser and, subject to the satisfaction of the conditions set forth in Section 8.2, the Purchaser will be deemed to purchase from the Seller, without any further action on the part of the Seller, all of the Seller’s right, title and interest in and to all outstanding Receivables of the Seller that satisfy the representations and warranties set forth in Section 9.2 and that have not previously been acquired by the Purchaser hereunder.  The deemed offer by the Seller to sell, assign and transfer all of its right, title and interest in and to all outstanding Receivables of the Seller that have not previously been acquired by the Purchaser hereunder is 

irrevocable and unconditional on the part of the Seller and shall occur (without any further action by the Seller) on each Business Day during the term of this Agreement.
Section 2.2.    Purchase Price; Dilution Reserve.  
(a)    The Purchaser shall pay to the Seller a purchase price (the “Purchase Price”) for each Purchased Receivable purchased on each Purchase Date calculated as follows:
PP = NFV  –  Discount, in which “Discount”  =  (NFV – Dres) x DRate x (DP / 360), in which:
	
		
	Term
	Definition

	“PP” equals    
	Purchase Price of such Receivable

	“NFV” equals    
	Net Face Value of such Receivable as of such Purchase Date

	“DRate” equals
	Discount Rate applicable to such Receivable

	“DRes” equals
	Dilution Reserve applicable to such Receivable

	“DP” equals
	Discount Period applicable to such Receivable

Notwithstanding the foregoing, the Purchaser may, in its sole and absolute discretion, elect to purchase a Receivable for an amount equal to such Receivable’s Net Face Value (such amount, the “Adjusted Purchase Price”), without reducing such amount by the Discount applicable to such Receivable.  In this event, the Seller shall pay the Adjusted Discount to the Purchaser in weekly installments, and an amount equal to the Accrued Aggregate Unreimbursed Purchase Discount for such Purchased Receivable will be payable by the Seller on each Settlement Date until such time as such Purchased Receivable has been paid in full or is otherwise treated as a Retired Invoice in accordance with the Seller’s accounting practices and procedures.  
Such Purchase Price (or Adjusted Purchase Price, if applicable) for such Purchased Receivable shall be payable as follows: (i) an initial payment equal to the Purchase Price (or Adjusted Purchase Price, if applicable) thereof minus the Dilution Reserve shall be paid on the date determined pursuant to Section 2.2(b) (the “Purchase Date Payment”), and (ii) a second installment equal the Deferred Purchase Price for such Purchased Receivable shall be paid on the Dilution Reserve Deficit Payment Date or the Dilution Reserve Surplus Payment Date in the manner set forth in Section 2.2(d).
(b)    The Purchase Date Payment shall be payable by the Purchaser to the Seller by deposit into the Remittance Account on the Settlement Date immediately following the Settlement Period during which such Purchased Receivable was purchased; provided, that the Purchase Date Payment for any such Receivables purchased on the Closing Date shall be payable on the Closing Date.  Notwithstanding the foregoing, the Purchase Date Payment shall be subject to netting and set-off as provided for under Section 5.6.
(c)    As used herein, “Dilution Reserve Deficit” means, on any date, the excess, if any, of the Actual Dilution Amount of such Purchased Receivable on such date minus the Dilution Reserve of such Purchased Receivable on the date such Purchased Receivable was sold by the Seller to the Purchaser, and “Dilution Reserve Surplus” means, on any date of determination,  the excess, if any, of the Dilution 

Reserve of such Purchased Receivable on the date such Purchased Receivable was sold by the Seller to the Purchaser minus the Actual Dilution Amount of such Purchased Receivable on such date of determination.  
(d)    On the Dilution Reserve Deficit Payment Date with respect to a Purchased Receivable for which there is a Dilution Reserve Deficit, the Seller shall pay to the Purchaser an amount equal to such Dilution Reserve Deficit for such Purchased Receivable, and the Seller’s obligation to pay the Dilution Reserve Deficit shall be subject to netting and set-off as provided for under Section 5.6.  On the Dilution Reserve Surplus Payment Date with respect to a Purchased Receivable for which there is a Dilution Reserve Surplus, the Purchaser shall pay to the Seller an amount equal to such Dilution Reserve Surplus for such Purchased Receivable, and the Purchaser’s obligation to pay the Dilution Reserve Surplus shall be subject to netting and set-off as provided for under Section 5.6.    
Section 2.3.    UNCOMMITTED ARRANGEMENT.  THE SELLER ACKNOWLEDGES THAT THIS IS AN UNCOMMITTED ARRANGEMENT, THAT THE SELLER HAS NOT PAID, OR IS NOT REQUIRED TO PAY, A COMMITMENT FEE OR COMPARABLE FEE TO THE PURCHASER, AND THAT THE PURCHASER HAS NO CONTINUING OBLIGATION TO PURCHASE ANY RECEIVABLE FROM THE SELLER, REGARDLESS OF WHETHER THE CONDITIONS SET FORTH HEREIN ARE SATISFIED.
Section 2.4.    Term.  Purchases of Receivables under this Agreement may be effected during the period from the Closing Date until September 14, 2018, which date shall be automatically extended for annual 364‐day terms unless the Seller provides written notice to the Purchaser or the Purchaser provides written notice to the Seller not less than thirty (30) days prior to the expiration of the then applicable annual term, that such Person does not intend to extend the term of this Agreement.  In addition, either the Purchaser or the Seller may terminate this Agreement for convenience at any time after the initial 364‐day term by thirty days prior written notice to the other party.  Notwithstanding the foregoing, all covenants, representations and warranties, repurchase obligations and indemnities made herein shall continue in full force and effect so long as any Purchased Receivables remain outstanding.
Section 2.5.    Aggregate Unreimbursed Purchase Discount. The Aggregate Unreimbursed Purchase Discount shall be payable in full by the Seller on the Final Maturity Date. The parties hereto agree that the Seller’s obligation to pay the Aggregate Unreimbursed Purchase Discount is not credit recourse for any failure of an Approved Obligor to pay the full outstanding balance of any Purchased Receivable, but rather is an obligation to reimburse the Purchaser for electing not to deduct the Discount from the Purchase Price with respect to the applicable Purchased Receivables for the purpose of administrative convenience.
Section 2.6.    Payment Amount.  On each Settlement Date, the Purchaser shall (by reference to the Servicing Report delivered by the Seller to the Purchaser on the immediately preceding Reconciliation Date) determine the Maximum Funded Amount and the Payment Amount, and shall notify the Seller of the same.  Following the determination of the Payment Amount, and in accordance with Section 5.6, on each Settlement Date (x) if the Payment Amount is positive, the Purchaser shall pay the full amount thereof to the Seller, and (y) if the Payment Amount is negative, the Seller shall pay the full absolute value thereof to the Purchaser by deposit into the Purchaser’s Account. 
		
	SECTION 3.
	PAYMENTS.

Section 3.1.    Late Payment Amount.  In the event that any amount payable by the Seller hereunder or under any of the other Purchase Documents remains unpaid for any reason for two (2) Business Days after the Purchaser provides notice to the Seller that such amounts are past due, the Purchaser shall charge, and the Seller shall pay, an amount (the “Late Payment Amount”) equal to (x) such unpaid amount due from 

the Seller to the Purchaser during the period from (and including) the due date thereof to, but excluding the date payment is received by the Purchaser in full, times (y) a rate per annum equal to the Prime Commercial Rate, computed on the basis of a 360 day year, and for actual days elapsed.  Late Payment Amounts shall be payable on demand and, if no prior demand is made, on the last Business Day of each calendar month.
Section 3.2.    Payments Generally.  All payments to be made under any Purchase Document or in respect of a Purchased Receivable shall be made in immediately available funds.  Any amounts that would fall due for payment on a day other than a Business Day shall be payable on the succeeding Business Day unless such Business Day would fall into a new calendar month, in which case such payment shall be due on the preceding Business Day, and interest calculations, if any, shall be adjusted accordingly for such later or earlier payment.  All amounts payable by the Seller to the Purchaser pursuant to or in connection with any Purchase Document shall be paid in full, free and clear of all deductions, set-off or withholdings whatsoever except only as may be required by Law, and shall be paid on the date such amount is due no later than 11:00 a.m. (New York City time) to the Purchaser’s Account.  Any amount to be paid by the Purchaser to the Seller under any Purchase Document shall be paid to the Seller by deposit into the Remittance Account.
		
	SECTION 4.
	NATURE OF FACILITY.

Section 4.1.    True Sale.  The parties hereto agree that each purchase and sale of Receivables under this Agreement is intended to be an absolute and irrevocable transfer constituting a “true sale” for bankruptcy law purposes, without recourse by the Purchaser to the Seller for the creditworthiness of any Obligor, and except as expressly set forth in Sections 11, 12, 13.1 or 13.2.  The parties hereto have structured the transactions contemplated by this Agreement as a sale, and each party hereto agrees to treat each such transaction as a “true sale” for all purposes under applicable law and accounting principles, including, without limitation, in their respective books, records, computer files, tax returns (federal, state and local), regulatory and governmental filings (and shall reflect such sale in their respective financial statements).  The Seller and the Guarantor will advise all persons inquiring about the ownership of the Receivables that all Purchased Receivables have been sold to the Purchaser.  Against the possibility that, contrary to the mutual intent of the parties, the purchase of any Receivable is not characterized as a sale by any applicable court, the Seller hereby grants to the Purchaser a security interest in, and right of setoff with respect to, all of the Purchased Receivables and all proceeds thereof to secure the payment and performance of the Seller’s payment and performance obligations hereunder and under each other Purchase Document.  The grant of the security interest herein is a supplemental protection to the Purchaser and is not meant to negate or affect in any way the intended sale of the Receivables by the Seller to the Purchaser and the fact that the parties intend for the Purchased Receivables to be assets of the Purchaser.  The Purchaser is hereby authorized to file UCC financing statements with respect to the transactions contemplated hereunder, including the security interests granted herein, together with any continuations and amendments relating thereto.  
Section 4.2.    No Purchaser Liability.  Notwithstanding anything herein to the contrary, the Seller hereby acknowledges and agrees that the Purchaser shall not be in any way responsible for the performance of the Seller’s obligations under any Contract and the Purchaser shall not have any obligation to intervene in any Dispute arising out of the performance of any Contract.  All obligations of the Seller as seller of the Goods and provider of any related services, including, without limitation, all obligations of the Seller as seller under the Contracts, all representations and warranty obligations, all servicing obligations, all maintenance obligations, and all delivery, transport and insurance obligations, shall be retained by the Seller (the “Retained Obligations”).  Any claim which the Seller may have against an Obligor or any other party, and/or the failure of an Obligor to fulfill its obligations under the applicable Contract, shall not affect the obligations of the Seller to perform its obligations and make payments hereunder, and shall not be used as 

a defense or as set-off, counterclaim or cross-complaint as against the performance or payment of any of its obligations.  
Section 4.3.    Further Assurances.  The Seller agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further action, that the Purchaser may reasonably request in writing in order to perfect, protect or more fully evidence or implement the transactions contemplated hereby, to enable the Purchaser to submit proper claims and related documents to any insurer that has provided insurance with respect to a Purchased Receivable (including, without limitation, providing copies of invoices, purchase orders, and the proof of delivery of products related to such Purchased Receivable), or to enable the Purchaser to exercise or enforce any of its rights with respect to the Purchased Receivables.   
		
	SECTION 5.
	SERVICER.

Section 5.1.    Appointment of the Seller as a Servicer.  The Seller hereby agrees to service and administer the Purchased Receivables sold by it as agent for the Purchaser, all on the terms set out in this Agreement.  The Seller shall use its commercially reasonable efforts to collect each Purchased Receivable sold by it as if such Purchased Receivable had not been purchased by the Purchaser.  The Seller agrees that the Seller shall cooperate with the Purchaser (at the Seller’s expense, unless an Insolvency Event has occurred with respect to the Obligor of such Purchased Receivable in which case it shall be at the Purchaser’s expense) in taking any and all commercially reasonable actions requested by the Purchaser in collecting all amounts owed by any Approved Obligor with respect to such Purchased Receivable.  Without limiting the foregoing, the Seller agrees to devote to the servicing of Purchased Receivables at least the same amount of time and attention, and to exercise at least the same level of skill, care and diligence in such servicing, as if the Seller were servicing Receivables legally and beneficially owned by it.  The Purchaser shall pay the Seller a Servicing Fee as consideration for the performance of such obligations as servicer under this Section 5.1 and this Agreement.  On or before each Settlement Date, commencing with the first Settlement Date after the Closing Date, the Purchaser shall provide to the Seller a calculation for the servicing fee (the “Servicing Fee”) accrued for the related Settlement Period most recently ended.  Such Servicing Fee shall be payable by the Purchaser, on such Settlement Date as part of the Payment Amount as provided in Section 2.6.  The Servicing Fee shall be calculated as follows: 
Servicing Fee = FA x Rate x Y/360
Where: 
	
		
	Term
	Definition

	“FA”   equals    
	Funded Amount as of the first day of the relevant Settlement Period

	“Rate”   equals    
	0.05% per annum

	“Y”    equals
	The number of days in the relevant Settlement Period

Section 5.2.    Servicing Covenants.  The Seller covenants and agrees, in connection with its servicing obligations pursuant to Section 5.1, (i) that the payment instructions currently in force and provided to each Approved Obligor specify that each such Approved Obligor shall pay all amounts owing under the Purchased Receivables to the Existing Depositary Account, (ii) not to change such payment instructions 

while any Purchased Receivable remains outstanding, and (iii) to take any and all other commercially reasonable actions, including such commercially reasonable actions as may be requested by the Purchaser from time to time, to ensure that all amounts owing under the Purchased Receivables will be deposited exclusively to the Existing Depositary Account.  The Seller further covenants and agrees (x) that within two (2) Business Days of receipt in the Existing Depositary Account of any payment by an Approved Obligor of any amount owing under any Purchased Receivable sold by the Seller to the Purchaser, the Seller shall identify such paid amount and (y) that on each Settlement Date, with respect to any payment by an Approved Obligor of any amount owing under any Purchased Receivable sold by the Seller to the Purchaser that was received during the preceding Settlement Period, the Seller shall transfer such payment in immediately available funds to the Purchaser’s Account to the extent required by Section 5.6(a)(i).  Any payment by an Approved Obligor of any amount owing under any Purchased Receivable that is not paid to the Existing Depositary Account and is received by the Seller directly shall be held in trust (but the Seller shall not be required to segregate) by the Seller as the Purchaser’s exclusive property, such funds shall be safeguarded for the benefit of the Purchaser, and such funds shall promptly, and in any event within two (2) Business Days following receipt thereof, be transferred by wire transfer to or otherwise deposited in the Existing Depository Account.  The Seller shall not, directly or indirectly, utilize such funds for its own purposes, nor shall the Seller have any right to pledge such funds as collateral for any obligations of the Seller or any other party.  For the avoidance of doubt, Collections shall not be deemed received by the Purchaser for purposes of this Agreement until credited to the Purchaser’s Account as immediately available funds or otherwise actually received by the Purchaser.
Section 5.3.    Determination of Dilutions.  If a Purchased Receivable is paid in part and not in full, the Seller shall use reasonable commercial efforts to determine promptly if the unpaid balance will not be paid due to a Dilution or Dispute.  If it is determined that such unpaid balance will not be paid due to a Dilution or Dispute, such Purchased Receivable shall be treated as a Retired Invoice in accordance with the Seller’s accounting policies and procedures and the Collection Date for such Purchased Receivable shall be deemed to have occurred.
Section 5.4.    Past Due Receivables.  
(a)    In the event a Purchased Receivable has not been paid in full by the date that is twenty (20) days after the Maturity Date therefor (an “Overdue Receivable”), the Purchaser may request that the Seller determine the cause of such payment delay or non-payment, including whether it is due to a Dispute, and the Seller shall deliver to the Purchaser by no later than twenty-five (25) days after such Maturity Date, a certification and report (a “Non-Payment Report”) identifying the Overdue Receivable and the Approved Obligor thereof and describing in reasonable detail the cause of such non-payment, including whether a Dispute exists with respect to such Overdue Receivable, or certifying that such cause is unknown.  In the event a Purchased Receivable has not been paid in full by the date that is thirty (30) days after the Maturity Date therefor and no Non-Payment Report with respect thereto has been delivered or the Non-Payment Report delivered with respect thereto does not report a Dispute or states that the cause of such payment delay or non-payment is unknown (a “Non-Payment Event”), the Purchaser may in its sole discretion (i) contact such Approved Obligor by phone or in person to discuss the status of such Overdue Receivable and to inquire whether such payment delay or non-payment is due to a Dispute and when payment can be expected and/or (ii) take any other lawful action to collect such Purchased Receivable directly from such Approved Obligor and/or (iii) terminate the appointment of the Seller as its servicer and agent for the servicing of such Purchased Receivable. If the Approved Obligor advises the Purchaser of the existence of a Dispute, the Purchaser shall advise the Seller of such Overdue Receivable that the Approved Obligor has asserted a Dispute.

(b)    In the event a Purchased Receivable has not been paid in full by the date that is forty-five (45) days after the Maturity Date therefor, the Seller shall deliver to the Purchaser by no later than fifty (50) days after such Maturity Date, a certification and report identifying such Purchased Receivable and the Approved Obligor and certifying the cause of such non-payment.  If such cause is not a credit default or Insolvency Event of the relevant Approved Obligor, or if the Seller does not deliver such certification and report when due, a Dispute shall be deemed to have occurred with respect to such Purchased Receivable, which Dispute shall constitute a Repurchase Event. 
Section 5.5.    Termination of Appointment.  Upon the occurrence of the earliest to occur of (a) an Insolvency Event with respect to the Seller or the Guarantor, (b) any representation or warranty made by the Seller or the Guarantor hereunder being inaccurate, incorrect or untrue in any material respect (or, in the case of any representation or warranty qualified by materiality, in all respects) on any date as of which it is made or deemed to be made, (c) a breach by the Seller or the Guarantor of its obligations hereunder (excluding any representations or warranties made by the Seller or the Guarantor hereunder) which, if capable of cure, is not cured within thirty (30) days following the date of such breach (except to the extent such breach relates to (i) non-payment by the Seller of the Payment Amount due on any Settlement Date or (ii) Sections 10.1(f), (g) or (i), in which case no cure period shall apply) or (d) any event, condition, change or effect that has a material adverse effect on (w) a material portion of the Purchased Receivables, (x) the business, assets, property, operations or financial condition of the Guarantor and its Subsidiaries taken as a whole, (y) the validity or enforceability of this Agreement or any other Purchase Document as against the Seller or the Guarantor or the rights and remedies of the Purchaser hereunder or thereunder as against the Seller, the Guarantor or any of the Purchased Receivables of the Seller or (z) the ability of the Seller or the Guarantor to perform its obligations hereunder in any material respect, the Purchaser may, in its discretion, (i) take any lawful action to collect any Purchased Receivable directly from the respective Approved Obligors, and/or (ii) terminate the appointment of the Seller as its servicer and agent for the servicing of the Purchased Receivables.  In addition, if an Insolvency Event or Non-Payment Event occurs with respect to any Approved Obligor, the Purchaser may, in its discretion, (i) take any lawful action to collect any Purchased Receivable directly from such Approved Obligor, and/or (ii) terminate the Seller as its servicer and agent for the servicing of the Purchased Receivables of such Approved Obligor.  In the event of any termination of Seller as servicer with respect to any Purchased Receivable, (A) the Purchaser may, but shall not be obligated to, notify each Approved Obligor of the transfers hereunder and direct each Approved Obligor to make payments with respect to such Purchased Receivable as the Purchaser may elect or desire and take such other action and enforce such rights and remedies with respect to such Purchased Receivable as the Purchaser may deem appropriate, and (B) the Seller shall not interfere with such servicing or collection of such Purchased Receivable or attempt to receive or make collection from any Approved Obligor in respect of such Purchased Receivable.  In addition, the Seller hereby grants to the Purchaser, effective upon the occurrence of an event described in clauses (a), (b), (c) or (d) above, an irrevocable power of attorney (coupled with an interest) authorizing and permitting the Purchaser, at its option, with or without notice to Seller, to do any one of the following that are necessary, in the determination of the Purchaser, to collect amounts due with respect to any Purchased Receivable:  (I) endorsing the name of the Seller upon any check or other instrument, document or agreement with respect to any Purchased Receivable; (II) endorsing the name of the Seller on any freight or express bill or bill of lading relating to any Purchased Receivable; (III) following the termination of the Seller as servicer with respect to such Purchased Receivable, taking such other action and enforcing such rights and remedies with respect to such Purchased Receivable as the Purchaser deems appropriate; and (IV) taking all action as the Purchaser deems appropriate in connection with the foregoing.  The Seller agrees that the Purchaser will not be liable for any acts of commission or omission or for any error of judgment or mistake of fact or Law in connection with the exercise of such power of attorney except to the extent the same constitutes gross negligence or willful misconduct. 

Section 5.6.    Distributions of Collections.  
On each Settlement Date, the Seller shall apply Collections in accordance with the following procedure: 
(i)    if the Payment Amount as of the immediately preceding Reconciliation Date is negative, the Seller will pay the absolute value thereof to the Purchaser from Collections; if there are insufficient Collections to pay the full amount due and owing to the Purchaser, then after applying such Collections to the payment of the Payment Amount any remaining shortfall shall be paid directly by the Seller from its general funds by deposit into the Purchaser’s Account; and 
(ii)    if the Payment Amount as of the immediately preceding Reconciliation Date is positive, then the amount thereof will be payable by the Purchaser to the Seller.  
Notwithstanding anything herein to the contrary, the Seller shall not be required to make any payment pursuant to this Section 5.6 with respect to the non-payment of any Purchased Receivable to the extent such non-payment results from an Insolvency Event of the applicable Approved Obligor or the financial inability of the Obligor to pay such Purchased Receivable, but any Collections on such Purchased Receivable and any Dilution Reserve Deficit with respect to such Purchased Receivable shall continue to be included in the calculation of Payment Amount.
		
	SECTION 6.
	SERVICING REPORTS. 

Section 6.1.    Servicing Reports and Submission of Receivable Information.  The Seller shall be responsible for delivering a Servicing Report by email to the Purchaser by 12:00 noon (New York time) on that date that is two (2) Business Days prior to each Settlement Date (the “Reconciliation Date”), which shall summarize, on an aggregate basis, for the Settlement Period ending on such Reconciliation Date, the outstanding Purchased Receivables, newly generated Receivables, Collections and Dilutions, among other information.  On or prior to each Reconciliation Date, the Seller shall also submit to the Purchaser via the PrimeRevenue system details of each Receivable included in the Servicing Report (to the extent not previously submitted) including the invoice number, Approved Obligor, Net Face Value, invoice date and Maturity Date; provided that the Seller shall not include in any such submission any Receivables that do not satisfy the representations and warranties set forth in Section 9.2 as of the date of such submission.  For the avoidance of doubt, if the Collection Date of any Purchased Receivable that has been included in a Servicing Report does not occur solely as a result of an Insolvency Event of the Obligor thereof or the financial inability of such Obligor to pay such Purchased Receivable, such Purchased Receivable shall thereafter be removed from the Servicing Report, but any Collections on such Purchased Receivable shall continue to be remitted to the Purchaser, and the Seller shall remain obligated for any Dilution Reserve Deficit with respect to such Purchased Receivable.
Section 6.2.    Reconciliation. If, at any time the Total Outstanding Amount for all Purchased Receivables is greater than the Funded Amount, then the following procedure will be used by the Seller for purposes of determining which Receivables constitute Purchased Receivables: first, all Receivables that were Purchased Receivables as of the immediately preceding Reconciliation Date, and that remain outstanding, shall be designated as Purchased Receivables, and second, new Receivables arising after the immediately preceding Reconciliation Date that satisfy the representations and warranties set forth in Section 9.2 shall be designated as Purchased Receivables based on Maturity Date.

		
	SECTION 7.
	OTHER INFORMATION; THE SELLER’S BOOKS AND RECORDS; INSPECTION; THE PURCHASER’S RECORDS.

Section 7.1.    Other Information.  The Seller will provide the Purchaser with such other reports, information, documents, books and records related to a Purchased Receivable as the Purchaser may reasonably request or any other information that the Purchaser may require for capital or regulatory purposes and which may be lawfully disclosed or provided to the Purchaser, including, without limitation, promptly after request by the Purchaser (a) a copy of the purchase order or sales order and Invoices relating to each Purchased Receivable; (b) a copy of the bill of lading and any other shipping document relating to the Purchased Receivable; and (c) all billings, statements, correspondence and memoranda directed to the Obligor in relation to each Purchased Receivable.
Section 7.2.    The Seller’s Books and Records.  The Seller shall maintain its books and records, including but not limited to any computer files and master data processing records, so that such records that refer to Purchased Receivables sold hereunder shall indicate clearly that the Seller’s right, title and interest in such Receivables have been sold to the Purchaser.  
Section 7.3.    Inspection.  The Seller shall (a) at any time reasonably convenient to the Seller during regular business hours and upon reasonable prior notice, permit the Purchaser or any of its agents or representatives, (i) to examine and make copies of and abstracts from the Seller’s Sales Records and the Invoices in respect of Purchased Receivables at any time and permit the Purchaser to take such copies and extracts from the Sales Records and to provide the Purchaser with copies or originals (as required by the Purchaser) of the Invoices relating to Purchased Receivables as it may require and generally allow the Purchaser (at the Seller’s expense) to review, check and audit the Seller’s credit control procedures, and (ii) to visit the offices and properties of the Seller for the purpose of examining such records and to discuss matters relating to Purchased Receivables and the Seller’s performance hereunder with any of the officers or employees of the Seller having knowledge of such matters; and (b) without limiting the provisions of clause (a), from time to time on request of the Purchaser and upon reasonable prior notice and subject to the Seller receiving acceptable confidentiality undertakings thereof, permit certified public accountants or other auditors acceptable to the Purchaser to conduct, at the Seller’s expense, a review of the Seller’s books and records to the extent related to the Purchased Receivables. 
Section 7.4.    The Purchaser’s Records.  The Purchaser is irrevocably authorized by the Seller to keep records of all purchases, which records shall be consistent with all information set forth in the Servicing Reports or submitted to the PrimeRevenue System, and evidence the dates and amounts of purchases and the applicable Discount or Adjusted Discount in effect from time to time.
		
	SECTION 8.
	CONDITIONS PRECEDENT.

Section 8.1.    Conditions Precedent to the Closing Date.  The occurrence of the Closing Date is subject to the satisfaction of the following conditions, each to the satisfaction of the Purchaser in its sole discretion and, as to any agreement, document or instrument specified below, each in form and substance satisfactory to the Purchaser in its sole discretion:
(a)    The Purchaser shall have received each of the following:
(i)    An executed counterpart of this Agreement.
(ii)    Certified copies of resolutions of (A) the Seller authorizing this Agreement and the other Purchase Documents and authorizing a person or persons to sign those 

documents including any subsequent notices and acknowledgements to be executed or delivered pursuant to this Agreement, the other Purchase Documents and any other documents to be executed or delivered by the Seller pursuant hereto or thereto, and (B) the Guarantor authorizing this Agreement and authorizing a person or persons to sign this Agreement including any subsequent notices and acknowledgements to be executed or delivered pursuant to this Agreement and any other documents to be executed or delivered by the Guarantor pursuant hereto.
(iii)    An officer incumbency and specimen signature certificate for the Seller and the Guarantor.
(iv)    Organizational documents of the Seller and the Guarantor certified by the applicable governmental authority (as applicable), and evidence of good standing (as applicable).
(v)    Lien search reports as the Purchaser shall deem advisable with respect to the Seller, and releases of any Adverse Claim on the Receivables that are or will be Purchased Receivables shown in such reports.
(vi)    Acknowledgement copies or other evidence of filing of such UCC financing statements or other filings as are required hereunder.
(vii)    Opinions of counsel to the Seller and the Guarantor, including opinions with respect to due organization and good standing of the Seller and the Guarantor, due authorization, execution and delivery of this Agreement by the Seller and the Guarantor, validity and enforceability of this Agreement with respect to the Seller and the Guarantor, non-contravention of organizational documents, agreements and law, no consents, creation and perfection of security interests, true sale and such other matters as Purchaser may reasonably request.
Section 8.2.    Conditions Precedent to Each Purchase.  The Purchaser’s purchase of any Receivable on each Purchase Date, including the initial Purchase Date, is subject to the satisfaction of the following conditions, each to the satisfaction of the Purchaser in its sole discretion:
(a)    The Purchaser shall have received a Servicing Report and the Receivables information contemplated in Section 6.1 no later than two (2) Business Days prior to the Settlement Date occurring on or immediately after such Purchase Date.
(b)    After giving effect to such purchase, the Total Outstanding Amount of all Purchased Receivables of all Approved Obligors as of such date will not exceed the Maximum Facility Amount.
(c)    After giving effect to such purchase, the Total Outstanding Amount of all Purchased Receivables of any Approved Obligor will not exceed the applicable Approved Obligor Sublimit.
(d)    The representations and warranties made by the Seller in Section 9.1 of this Agreement are true and correct in all material respects (or, in the case of any representation or warranty qualified by materiality, in all respects) as of such Purchase Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects 

(or, in the case of any representation or warranty qualified by materiality, in all respects) on and as of such earlier date.
(e)    The representations and warranties made by the Seller in Section 9.2 of this Agreement with respect to the Purchased Receivables purchased on such Purchase Date are true and correct in all respects as of such Purchase Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all respects on and as of such earlier date.
(f)    The representations and warranties made by the Guarantor in Section 9.3 of this Agreement are true and correct in all material respects (or, in the case of any representation or warranty qualified by materiality, in all respects) as of such Purchase Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (or, in the case of any representation or warranty qualified by materiality, in all respects) on and as of such earlier date.
Each delivery of a Servicing Report  by the Seller shall be deemed a representation and warranty by the Seller that the foregoing conditions to the applicable Purchase are satisfied as of the applicable Purchase Date with respect to the Receivables submitted onto the PrimeRevenue System with respect to such Servicing Report.
		
	SECTION 9.
	REPRESENTATIONS AND WARRANTIES.

Section 9.1.    Generally.  The Seller hereby makes the following representations and warranties for the benefit of the Purchaser as of the Closing Date and on each Purchase Date:
(a)    The Seller is (i) duly organized, validly existing, and, to the extent applicable under the Laws of its jurisdiction of organization, in good standing under the Laws of its jurisdiction of organization and has all organizational powers and all material governmental licenses, authorizations, consents, and approvals required to carry on its business as now conducted and (ii) is qualified to do business in every jurisdiction where the nature of its business requires it to be so qualified, except, with respect to clause (ii), to the extent that failure to so qualify would not reasonably be expected to materially adversely affect its ability to perform its obligations hereunder or under the other Purchase Documents and would not have an adverse effect on the collectability of any Purchased Receivable or on the interests of the Purchaser under the Purchase Documents.
(b)    The Seller has the requisite power and authority to enter into and deliver this Agreement and the other Purchase Documents and to assign and sell the Receivables being sold by it on the applicable Purchase Date in the manner herein contemplated, and it has taken all necessary corporate or other action required to authorize the execution, delivery and performance of this Agreement, the other Purchase Documents and the assignment and sale of such Receivables.  This Agreement and the other Purchase Documents to which the Seller is a party have been duly executed and delivered by the Seller.
(c)    This Agreement, the other Purchase Documents and the sale, assignment and transfer of the Purchased Receivables hereunder constitutes the legal, valid and binding obligations of the Seller, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the rights and remedies of creditors and general principles of equity, regardless of whether enforcement is sought in proceedings in equity or at Law.  This Agreement creates a valid security interest in each Purchased Receivable.  Upon the filing of a UCC financing statement 

in the state of organization of the Seller set forth in the UCC Information, listing the Seller, as debtor, and the Purchaser, as secured party, and covering Purchased Receivables from time to time purchased hereunder, the Purchaser shall have a first priority perfected security interest in each such Purchased Receivable.
(d)    The UCC Information provided by the Seller to the Purchaser is true and correct in all respects.  All other data, materials and information provided by it to the Purchaser in connection herewith and with each Contract, each Receivable being sold by it hereunder, each Approved Obligor, the relationship between it and each Approved Obligor, and each Approved Obligor’s payment history (including timeliness of payments), is true and correct in all material respects.
(e)    Neither the execution nor the delivery of this Agreement, the other Purchase Documents or any of the other documents related hereto or thereto, nor the performance of or compliance with the terms and provisions hereof or thereof will conflict with or result in a breach of or give rise to a default under (i) any Laws, (ii) any indenture, loan agreement, security agreement, instrument or other material agreement binding upon the Seller or any of its properties, or (iii) any provision of the Seller’s organizational documents.
(f)    No authorization, consent or approval or other action by, and no notice to or filing (other than the UCC financing statements required to be filed hereunder) with, any Governmental Authority is required to be obtained or made by the Seller for the due execution, delivery and performance by it of this Agreement or any other Purchase Document.
(g)    No Insolvency Event with respect to the Seller has occurred and is continuing.
(h)    There is no pending or, to its knowledge, threatened action, proceeding, investigation or injunction, writ or restraining order affecting the Seller or any of its Affiliates before any court, governmental entity or arbitrator, which could reasonably be expected to have an adverse effect on the enforceability of this Agreement (including, without limitation, the enforceability of the Purchaser’s ownership interest in the Purchased Receivables) or the ability of the Seller to perform its obligations hereunder.
(i)    No effective financing statement or other instrument similar in effect covering any Purchased Receivable is on file in any recording office, except those filed in favor of the Purchaser relating to this Agreement, and no competing notice or notice inconsistent with the transactions contemplated in this Agreement remains in effect.  The Seller has not pledged or granted any security interest in any Purchased Receivable to any person except pursuant to this Agreement.
(j)    The Seller is in material compliance with all covenants and other agreements contained in this Agreement.
(k)    Neither the Seller nor any of its Subsidiaries nor, to the knowledge of the Seller, any Affiliate or any director, officer, agent or other Person acting on behalf of the Seller or any of its Subsidiaries (i) is a Sanctioned Person, (ii) has any business affiliation or commercial dealings with, or investments in, any Sanctioned Country or Sanctioned Person except to the extent such activity has been licensed or approved by OFAC and would not cause the Purchaser to be in violation of Sanctions Laws or (iii) is the subject of any action or investigation under any Sanctions Laws or Anti-Money Laundering Laws.
(l)    The Seller, its Subsidiaries and, to the knowledge of the Seller, any director, officer, agent or other person acting on behalf of the Seller or any of its Subsidiaries, are in compliance with Anti-

Corruption Laws or Anti-Money Laundering Laws in all material respects; and the Seller has instituted and maintains policies and procedures reasonably designed to ensure continued compliance therewith.
Section 9.2.    Purchased Receivables.  The Seller hereby makes the following representations and warranties with respect to each Purchased Receivable sold by it for the benefit of the Purchaser as of the applicable Purchase Date with respect to such Purchased Receivable:
(a)    Prior to giving effect to the sale of such Purchased Receivable, the Seller has a valid ownership interest therein, free and clear of any Adverse Claim. Such Purchased Receivable is a valid, current and freely assignable trade account receivable and the assignment of such Purchased Receivable is not subject to a consent requirement by any third party to the sale or other transfer of such Purchased Receivable or the grant of a security interest or other lien in such Purchased Receivable other than consents previously obtained in writing by the Seller and that remain in effect as of the Purchase Date.
(b)    The sale of such Purchased Receivable by the Seller to the Purchaser under the Purchase Documents constitutes a true sale or other absolute transfer of such Purchased Receivable by the Seller to the Purchaser and upon purchase by the Purchaser, such Purchased Receivable will have been validly and absolutely assigned, transferred and sold to the Purchaser and the Purchaser shall acquire a legally valid ownership interest in such Purchased Receivable, free and clear of any Adverse Claim without any need on the part of the Seller or the Purchaser to (i) notify the applicable Approved Obligor or (ii) other than the UCC financing statements required to be filed hereunder, file, register or record any Purchase Document or the sale of such Purchased Receivable under the Laws applicable to the Seller.  All of the Seller’s right, title and interest in and to such Purchased Receivable will have been validly sold and absolutely assigned and transferred to the Purchaser, and the Purchaser will have the legal and beneficial right to be paid the face amount of such Purchased Receivable free of any Adverse Claim.  Such Purchased Receivable is sold hereunder in good faith and without actual intent to hinder, delay or defraud present or future creditors of the Seller.
(c)    Such Purchased Receivable and the applicable Contract constitutes a bona fide, existing and enforceable legal, valid and binding obligation of the applicable Approved Obligor, subject to bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the rights and remedies of creditors and general principles of equity, regardless of whether enforcement is sought in proceedings in equity or at Law.  Such Purchased Receivable arises out of an arm’s-length sale by the Seller of Goods and the provision of any related services, in each case, in the ordinary course of its and such Approved Obligor’s businesses.  This Agreement creates a valid security interest in each Purchased Receivable.  The applicable Contract constitutes an existing and enforceable legal, valid and binding obligation of the Seller. Such Purchased Receivable and the related Contract under which it arises comply with, and the Goods with respect thereto have been manufactured in compliance with, and any related services have been provided in compliance with, in all material respects, the requirements of all applicable laws, rules, regulations or orders of any Governmental Authority and do not contravene any agreement binding upon the Seller.
(d)    The Goods deliverable to and any related services provided to the applicable Approved Obligor in connection with such Purchased Receivable were received by such Approved Obligor not later than the applicable Purchase Date. 
(e)    The Seller has instructed each Approved Obligor in writing to pay all amounts owing on Purchased Receivables only to the Existing Depositary Account, which instructions have not been revoked or otherwise modified by or on behalf of Seller.  

(f)    As of the applicable Purchase Date, such Purchased Receivable is not subject to any Dilution except to the extent specifically included in the determination of the Net Face Value for the calculation of the applicable Purchase Price or Adjusted Purchase Price (and for the avoidance of doubt, the Dilution Reserve is disregarded for the purpose of this clause).
(g)    The applicable Approved Obligor has not in the past failed to pay any material sum due and payable to the Seller in circumstances where the Seller did not waive or consent to such failure.  
(h)    No note, account, instrument, document, contract right, general intangible, chattel paper or other form of obligation other than that which has been assigned to the Purchaser exists which evidences such Purchased Receivable, and such Purchased Receivable is not evidenced by and does not constitute an “instrument” or “chattel paper” as such terms are defined in the UCC.
(i)    The applicable Approved Obligor is not an Affiliate or Subsidiary of Seller and is not a Sanctioned Person.
(j)    Such Purchased Receivable has not been sold or assigned to any Person other than the Purchaser and the sale of such Purchased Receivable by the Seller to the Purchaser hereunder is permitted under the Edgewell Credit Agreement.  
(k)    Neither the Seller, nor, to the best of the Seller’s knowledge, the applicable Approved Obligor, is in default of the applicable Contract or is in breach of its terms. 
(l)    Neither the Seller nor, to the best of the Seller’s knowledge, the applicable Approved Obligor, has asserted any Dispute with respect to such Purchased Receivable.
(m)    Such Purchased Receivable is denominated in U.S. Dollars.
(n)    Such Purchased Receivable does not represent a progress billing or a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, cash-on-delivery or any other repurchase or return basis, does not relate to payments of interest and has not been invoiced more than once.
(o)    The Maturity Date for such Purchased Receivable is not more than one hundred and twenty (120) days after the issuance date of the Invoice with respect thereto.
(p)    There are no facts known to the Seller concerning such Approved Obligor, such Purchased Receivable or the applicable Contract which might have an adverse impact on the ability or willingness of such Approved Obligor to pay the Net Face Value for such Purchased Receivable when due, including information concerning any existing or potential Disputes, except as otherwise previously disclosed to the Purchaser.
(q)    To the Seller’s knowledge, no Insolvency Event with respect to the applicable Approved Obligor has occurred and is continuing.
(r)    There are no actions, claims or proceedings now pending between the Seller and the applicable Approved Obligor. There are no pending or, to the Seller’s knowledge, threatened actions or proceedings before any court or administrative agency related to or in any way connected to such Purchased Receivable.

Section 9.3.    Guarantor Representations.   The Guarantor hereby makes the following representations and warranties for the benefit of the Purchaser as of the Closing Date and on each Purchase Date:
(a)    The Guarantor is (i) duly organized, validly existing, and, to the extent applicable under the Laws of its jurisdiction of organization, in good standing under the Laws of its jurisdiction of organization and has all organizational powers and all material governmental licenses, authorizations, consents, and approvals required to carry on its business as now conducted and (ii) is qualified to do business in every jurisdiction where the nature of its business requires it to be so qualified, except, with respect to clause (ii), to the extent that failure to so qualify would not reasonably be expected to adversely affect, in any material respect, its ability to perform its obligations hereunder and would not have a material adverse effect on the interests of the Purchaser under the Purchase Documents.
(b)    The Guarantor has the requisite power and authority to enter into and deliver this Agreement, and it has taken all necessary corporate or other action required to authorize the execution, delivery and performance of this Agreement.  This Agreement has been duly executed and delivered by the Guarantor.
(c)    This Agreement constitutes the legal, valid and binding obligations of the Guarantor, enforceable against the Guarantor in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting the rights and remedies of creditors and general principles of equity, regardless of whether enforcement is sought in proceedings in equity or at Law.
(d)    Neither the execution nor the delivery of this Agreement, nor the performance of or compliance with the terms and provisions hereof will conflict with or result in a breach of or give rise to a default under (i) any Laws, (ii) any indenture, loan agreement, security agreement, instrument or other material agreement binding upon the Guarantor or any of its properties, or (iii) any provision of the Guarantor’s organizational documents, except, in the case of clauses (i) and (ii) only, any such conflict, breach or default which would not reasonably be expected to adversely affect, in any material respect, its ability to perform its obligations hereunder and would not have a material adverse effect on the interests of the Purchaser under the Purchase Documents.
(e)    No authorization, consent or approval or other action by, and no notice to or filing with, any Governmental Authority is required to be obtained or made by the Guarantor for the due execution, delivery and performance by it of this Agreement, except authorizations, consents, approvals, notices or filings which have been made, obtained or given, or which, if not made, obtained or given, individually or in the aggregate, would not reasonably be expected to adversely affect, in any material respect, its ability to perform its obligations hereunder and would not have a material adverse effect on the interests of the Purchaser under the Purchase Documents.
(f)    No Insolvency Event with respect to the Guarantor has occurred and is continuing.
(g)    There is no pending or, to its knowledge, threatened action, proceeding, investigation or injunction, writ or restraining order affecting the Guarantor or any of its affiliates before any court, governmental entity or arbitrator, which could reasonably be expected to have a material adverse effect on the enforceability of this Agreement (including, without limitation, the enforceability of the Purchaser’s ownership interest in the Purchased Receivables) or the ability of the Guarantor to perform its obligations hereunder.

(h)    Neither the Guarantor nor any of its Subsidiaries nor, to the knowledge of the Guarantor, any affiliate or any director, officer, agent or other Person acting on behalf of the Guarantor or any of its Subsidiaries (i) is a Sanctioned Person, (ii) has any business affiliation or commercial dealings with, or investments in, any Sanctioned Country or Sanctioned Person except to the extent such activity has been licensed or approved by OFAC and would not cause the Purchaser to be in violation of Sanctions Laws or (iii) is the subject of any action or investigation under any Sanctions Laws or Anti-Money Laundering Laws.
(i)    Neither the Guarantor nor any of its Subsidiaries nor, to the knowledge of the Guarantor, any director, officer, agent or other person acting on behalf of the Guarantor or any of its Subsidiaries, has taken any action, directly or indirectly, that would result in a violation by such persons of Anti-Corruption Laws or Anti-Money Laundering Laws; and the Guarantor has instituted and maintains policies and procedures designed to ensure continued compliance therewith.
		
	SECTION 10.
	COVENANTS.

Section 10.1.     The Seller’s Covenants.  The Seller hereby agrees, at all times prior to the Final Collection Date:
(a)    To take all necessary steps and actions to preserve its corporate (or other organization) existence and comply in all material respects with all Laws applicable to the Seller in the operation of its business.
(b)    To duly perform and comply in all material respects with all terms, provisions, and obligations under each Contract and refrain from taking any action or omitting to take any action which might prejudice or limit the Purchaser’s rights to payment with respect to the Purchased Receivables.
(c)    Promptly to notify the Purchaser in writing of (i) the Seller’s knowledge of any material event or occurrence, including, without limitation, any material breach, or default by the Seller or by any Approved Obligor of any of the terms or provisions of any Contract with respect to any Purchased Receivable, any Dispute, or any governmental action affecting the ability of it or such Approved Obligor to perform its obligations under the applicable Contract to which it is a party; or (ii) any change to the UCC Information at least thirty (30) days prior to such change. 
(d)    Not to modify the terms of any Contract in any manner which would adversely affect the collectability of any Purchased Receivables or any rights of the Purchaser as the owner of the Purchased Receivables or would otherwise reduce the amount due thereunder or delay the Maturity Date thereof.  
(e)    To make all disclosures required by any applicable Law with respect to the sale of the Purchased Receivables hereunder to the Purchaser, and account for such sale in accordance with GAAP.
(f)    To not create or permit to exist any Adverse Claim over all or any of the Seller’s or the Purchaser’s rights, title and interest in and to the Purchased Receivables. 
(g)    To not sell, assign or otherwise transfer the Purchased Receivables except as specifically provided for herein.

(h)    To not close the Existing Depositary Account and not to instruct any Approved Obligor to pay any amounts owing under the Purchased Receivables to a bank account other than the Existing Depositary Account.
(i)    That it will not, directly or indirectly, use the proceeds of any purchase of Receivables under this Agreement, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Sanctioned Person, or in any Sanctioned Country, in violation of Sanctions Laws, (ii) in any other manner that would result in the Seller, the Guarantor or the Purchaser being in violation of Sanctions Laws or Anti-Money Laundering Laws or (iii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of Anti-Corruption Laws.
(j)    That it will maintain in effect policies and procedures designed to promote compliance by the Seller, its Subsidiaries, and their respective directors, officers, employees, and agents with Sanctions Laws, Anti-Corruption Laws and Anti-Money Laundering Laws.
		
	SECTION 11.
	REPURCHASE OF PURCHASED RECEIVABLES; GUARANTY.

Section 11.1.    Repurchase Price.  As used herein, the “Repurchase Price” with respect to any Purchased Receivable shall be calculated as follows: 
RP  =  PP  +  AD  + AO, in which:
	
		
	Term
	Definition

	“RP”   equals
	Repurchase Price for such Purchased Receivable as of the applicable Repurchase Date

	“PP”    equals
	Purchase Price or Adjusted Purchase Price for such Purchased Receivable, net of (1) any Deferred Purchase Price for such Purchased Receivable that has not yet been paid to the Seller and (2) any Collections received by the Purchaser with respect to such Purchased Receivable

	“AD”    equals
	Discount applicable to such Receivable and accrued for the period from the applicable Purchase Date to the applicable Repurchase Date; provided that AD shall only apply in the case of a Receivable purchased at its Purchase Price

	“AO”    equals
	All other amounts then payable (including, in the case of a Receivable purchased at its Adjusted Purchase Price, the unpaid amount of the Aggregate Unreimbursed Purchase Discount corresponding to such Receivable) by the Seller under the Purchase Documents with respect to such Purchased Receivable as of such Repurchase Date

Section 11.2.    Repurchase.  Upon the occurrence of a Repurchase Event with respect to any Purchased Receivable, the Seller shall repurchase such Purchased Receivable on the next Settlement Date for an amount equal to the Repurchase Price of such Purchased Receivable.  Notwithstanding the foregoing, the payment of the Repurchase Price shall be subject to netting and set-off as provided for under Section 5.6. 
Section 11.3.    Re-assignment.  On receipt of the Repurchase Price, (a) the Purchaser, at the request of the Seller, shall (at the cost and expense of the Seller) execute such documents as may be necessary to re‐assign, without recourse, representation or warranty, and at no further cost to the Purchaser, such Purchased 

Receivable to the Seller; and (b) following receipt of such Repurchase Price by the Purchaser, the Seller shall be entitled to any additional Collections paid with respect to such Purchased Receivable and the Purchaser shall have no further obligation to pay any Deferred Purchase Price with respect to such Purchased Receivable.
Section 11.4.    Guaranty.  The Guarantor, as the owner, directly or indirectly, of all of the outstanding membership interests of the Seller, acknowledges and agrees that it derives benefit from the purchase of Receivables from the Seller by the Purchaser pursuant to this Agreement.  The Guarantor hereby unconditionally and irrevocably guarantees to the Purchaser, as primary obligor and not merely as surety, the complete and timely payment and performance on demand (after notice thereof by the Purchaser) of all obligations of the Seller arising under or pursuant to this Agreement, including, without limitation, the obligations of the Seller to make any payment to the Purchaser required hereby, regardless of the nature of the transactions contemplated hereby, the obligations set forth in Section 2.2(d), Section 2.5 (Aggregate Unreimbursed Purchase Discount), Section 2.6 (Payment Amount), Section 5.2 (Servicing Covenants), Section 11.2 (Repurchase), Section 12.1 (Taxes), Section 13.1 (Indemnity) and Section 13.2 (Expenses); provided, however, that the Guarantor shall have no obligations hereunder with respect to any non-payment of any Purchased Receivable resulting solely from an Insolvency Event of the applicable Approved Obligor or the financial inability of the Obligor to pay such Purchased Receivable on the applicable Maturity Date.  This guaranty is an irrevocable, absolute, present and continuing guaranty of prompt payment and performance, and is in no way conditional or contingent upon any attempt to collect from or bring action against the Seller, or perfect or enforce any security or upon any other action, occurrence or circumstance whatsoever.  The liability of the Guarantor hereunder is independent of and not in consideration of or contingent upon the liability of any other person under this or any similar instrument and the release of, or cancellation by, any party to this or a similar instrument shall not act to release or otherwise affect the liability of the Guarantor hereunder.  It shall not be necessary for the Purchaser (and the Guarantor hereby waives any rights which the Guarantor may have to require the Purchaser), in order to enforce the obligations of the Guarantor hereunder, first to (i) institute suit or exhaust its remedies against the Seller or any other person, (ii) enforce the Purchaser’s rights against any collateral which shall ever have been given to secure performance under this Agreement, (iii) exhaust any remedies available to the Purchaser against any collateral which shall ever have been given to secure performance under this Agreement, or (iv) resort to any other means of obtaining payment of the obligations of the Seller hereunder.  The liability of the Guarantor hereunder shall be absolute and unconditional irrespective of:  (i) any lack of validity or enforceability of any obligation of the Seller hereunder or of this Agreement or any other Purchase Document as against the Seller; (ii) any amendment or waiver of this Agreement or any other Purchase Document executed by the Seller; or (iii) any challenge to, or lack of validity of, the Seller’s ownership interest (immediately prior to each purchase hereunder) in the Purchased Receivables.
		
	SECTION 12.
	TAXES, ETC.

Section 12.1.    Taxes.  All payments to be made by the Seller or the Guarantor under this Agreement shall be made free and clear of and without deduction for or on account of all Taxes, except to the extent that the Seller  or the Guarantor, as applicable, is required by law to make payment subject to any Taxes.  All Taxes required to be deducted or withheld from any amounts paid or payable by the Seller or the Guarantor under this Agreement shall be paid by the Seller or the Guarantor, as applicable, within the time allowed under the relevant law.  In addition, if any Taxes or amounts in respect of Taxes must be deducted from any amounts payable by the Seller or the Guarantor under this Agreement, the Seller or the Guarantor, as applicable, shall pay such additional amounts as may be necessary to ensure that the Purchaser receives a net amount equal to the full amount which the Purchaser would have received had payment not been made subject to deduction of Tax by the Seller or the Guarantor, as applicable.  Within 30 days of each payment 

to the relevant taxation authority by the Seller or the Guarantor under this Section 12.1 of Tax or in respect of Taxes, the Seller or the Guarantor, as applicable, shall deliver to the Purchaser if the same is available an original receipt or other appropriate evidence issued by the authority to whom the payment was made that the Tax has been duly remitted to the appropriate authority.  Nothing contained in this Agreement shall interfere with the right of the Purchaser to arrange its Tax affairs in whatever manner it thinks fit and, in particular, the Purchaser shall not be under any obligation to claim credit, relief, remission, repayment or other benefit from or against its corporate profits or similar Tax liability in respect of the amount of any deduction in priority to any other claims, reliefs, credits or deductions available to it, nor shall the Seller or the Guarantor be entitled to make any enquiries of the Purchaser in relation to the Purchaser’s Tax affairs.  The Purchaser shall (if and to the extent that it is entitled to do so under applicable law) submit in duplicate (i) to the Seller within 21 days after the Closing Date, and, in any event, prior to the date of the first payment by the Seller to the Purchaser, duly completed and signed copies of either Form W-8BEN (relating to the Purchaser and claiming complete or partial exemption from withholding on all amounts (to which such withholding would otherwise apply) to be received by the Purchaser including fees, from the Seller pursuant to this Agreement) or Form W-8ECI (relating to all amounts (to which such withholding would otherwise apply) to be received by the Purchaser, including fees, from the Seller pursuant to this Agreement).  In addition and from time to time the Purchaser shall (if and to the extent that it is entitled to do so under applicable law) submit to the Seller such additional duly completed and signed copies of one or the other of such Forms (or such successor forms as shall be adopted from time to time by the relevant United States taxation authorities) and any additional information as may be required under then current United States law, regulations or any income tax treaty to which the United States is a party to claim the inapplicability of, or exemption or partial exemption from, United States withholding (including backup withholding) taxes on payments in respect of all amounts (to which such withholding would otherwise apply) to be received by the Purchaser including fees, from the Seller pursuant to this Agreement.
Section 12.2.    Duties and Taxes.  All stamp, documentary, registration or other like duties or Taxes (excluding Taxes upon or measured by the net income of the Purchaser and any Taxes that are the subject of Section 12.1), including Taxes and any penalties, additions, fines, surcharges or interest relating thereto, or any notarial fees which are imposed or chargeable on or in connection with this Agreement or any other Purchase Document or any other document executed pursuant hereto or thereto shall be paid by the Seller, it being understood and agreed that the Purchaser shall be entitled but not obligated to pay any such duties or Taxes (whether or not they are its primary responsibility), and the Seller shall on demand indemnify the Purchaser against those duties or Taxes and against any costs and expenses so incurred by it in discharging them.  Without prejudice to the survival of any other provision hereof, the terms of this Section 12.2 shall survive the termination of this Agreement and payment of all other amounts payable hereunder. 
		
	SECTION 13.
	MISCELLANEOUS.

Section 13.1.    Indemnity.  The Seller agrees to indemnify, defend and save harmless the Purchaser (including each of its branches) and its affiliates, officers, directors, employees or other agents (each, an “Indemnified Party”), forthwith on demand, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for each Indemnified Party in connection with any investigative, administrative or judicial proceeding or hearing commenced or threatened by any Person, regardless of whether any such Indemnified Party shall be designated as a party or a potential party thereto, and any fees or expenses incurred by each Indemnified Party in enforcing this indemnity), whether direct, indirect, special or consequential and whether based on any federal, state or foreign Laws, on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnified Party, in any manner relating to or arising out of or incurred in 

connection with this Agreement, the other Purchase Documents, any Purchased Receivable or any of the transactions contemplated hereby or thereby, including, without limitation, with respect to (i) any representation or warranty or statement made or deemed made by the Seller under or in connection with this Agreement or any of the other Purchase Documents which shall have been incorrect as of the date when made or any failure of the Seller to comply with its covenants and other agreements contained in this Agreement or any other Purchase Document (including, without limitation, (x) the failure to deliver a Non-Payment Report with respect to any Overdue Receivable on or prior to the date such report is required to be delivered pursuant to Section 5.4 and (y) a breach of its obligations under Section 4.3 with respect to a Purchased Receivable), and (ii) any Retained Obligations of the Seller (collectively, the “Indemnified Liabilities”); provided, the Seller shall not have any obligation to any Indemnified Party hereunder with respect to (i) any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnified Party, in each case, as determined by a final, non-appealable judgment of a court of competent jurisdiction, or (ii) any non-payment of any Purchased Receivable resulting from the creditworthiness of the Approved Obligor, including, without limitation, an Insolvency Event of the applicable Approved Obligor or the financial inability of the Obligor to pay such Purchased Receivable on the applicable Maturity Date.  Without prejudice to the survival of any other provision hereof, the terms of this Section 13.1 shall survive the termination of this Agreement and payment of all other amounts payable hereunder. 
Section 13.2.    Expenses.  The Seller agrees to pay promptly on demand (a) all actual and reasonable costs and expenses (including due diligence expenses) incurred by the Purchaser in connection with the negotiation, preparation and execution of the Purchase Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby, including, without limitation, the reasonable fees, expenses and disbursements of counsel to the Purchaser in connection therewith; and (b) all costs and expenses, including reasonable attorneys’ fees and costs of settlement, incurred by the Purchaser in enforcing any obligations of the Seller under any Purchase Document or in collecting any payments due from Seller hereunder or under the other Purchase Documents or in connection with any refinancing or restructuring of the purchase arrangements provided hereunder in the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.  Without prejudice to the survival of any other provision hereof, the terms of this Section 13.2 shall survive the termination of this Agreement and payment of all other amounts payable hereunder.  
Section 13.3.    Setoff.  In addition to any rights now or hereafter granted under applicable Law and not by way of limitation of any such rights, the Purchaser is hereby authorized by the Seller at any time or from time to time, without prior notice to the Seller, to set off and to appropriate and to apply any and all deposits (general or special, including indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other indebtedness at any time held or owing by the Purchaser to or for the credit or the account of Seller against and on account of the obligations and liabilities of the Seller to the Purchaser hereunder and under the other Purchase Documents, including all claims of any nature or description arising out of or connected hereto or with any other Purchase Document, irrespective of whether or not (a) the Purchaser shall have made any demand hereunder or (b) any amounts payable hereunder shall have become due and payable pursuant hereto and although such obligations and liabilities, or any of them, may be contingent or unmatured; provided, however, that the Purchaser shall use reasonable commercial efforts to provide the Seller with same-day notice of any such setoff.
Section 13.4.    Notices, Addresses.  All notices, requests and demands given or made under the Purchase Documents shall be given or made in writing and unless otherwise stated shall be made by telecopier, email or letter using the address as specified below or such other address as the party may designate to the other party in accordance with the provisions of this Section 13.4:

	
		
	If to the Purchaser:
	The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch
1251 Avenue of the Americas
New York, New York  10020 
Attn:  Nirmalya Mitra 
Email:  NMitra@us.mufg.jp

With a copy to:
The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch
1251 Avenue of the Americas
New York, New York  10020 
Attn:   Amy Mellon 
Email:  amellon@us.mufg.jp

	If to the Seller:
	1350 Timberlake Manor Parkway, Suite 300, 
Chesterfield, MO 63017
Attn:  Jack Cunningham, VP Treasury & Corporate Development
Fax: 636-536-9753
Email: jack.cunningham@edgewell.com

With a copy to:

Edgewell Personal Care Company
6 Research Drive, Shelton, CT 06484
Attn:  Deputy General Counsel
Fax:  203-680-9018
Email:  jeffrey.gershowitz@edgewell.com

	If to the Guarantor:
	1350 Timberlake Manor Parkway, Suite 300
Attn:  Jack Cunningham, VP Treasury & Corporate Development
Fax: 636-536-9753
Email: jack.cunningham@edgewell.com

With a copy to:

Edgewell Personal Care Company
6 Research Drive, Shelton, CT 06484
Attn: Deputy General Councel
Fax:  203-680-9018
Email:  jeffrey.gershowitz@edgewell.com

All notices, requests and demands shall be deemed to have been duly given or made (a) when dispatched by telecopier or email when the confirmation showing the completed transmission has been received, or (b) if mailed via a reputable international courier, when it has been left at the relevant address or five (5) Business Days after being delivered to such reputable international courier, in an envelope addressed to the applicable person at that address and to the attention of the person(s) set forth above; provided, if any communication is received after a recipient’s normal business hours, such communication shall be deemed received upon the opening of the recipient’s next business day.  The Seller, the Guarantor and the Purchaser shall promptly inform each other of any changes in their respective addresses, facsimile numbers or email addresses specified herein.
Section 13.5.    Certificates and Determinations.  Any certification or determination by the Purchaser of a rate or amount under any Purchase Document shall be, absent manifest error, conclusive evidence of the matters to which it relates.

Section 13.6.    Assignments and Transfers.  
(a)    The Purchaser may at any time assign, transfer or participate any of its rights under the Purchase Documents, including, without limitation, its rights in respect of the Purchased Receivables, to another bank or financial institution with the consent of the Seller in each instance, which consent shall not be unreasonably withheld, conditioned or delayed; provided, that no consent shall be required if the Seller shall have been terminated as servicer pursuant to Section 5.5.  Neither the Seller nor the Guarantor may assign or otherwise transfer its rights, benefits or obligations under the Purchase Documents without the prior written consent of the Purchaser.  Subject to the foregoing, this Agreement shall be binding on and shall inure to the benefit of each party hereto and its successors and assigns.
(b)    Notwithstanding anything herein to the contrary, the Purchaser may assign or pledge a security interest in all or any portion of its rights in or under this Agreement or the Purchased Receivables to secure obligations of the Purchaser, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central bank. No such assignment and/or pledge shall release the Purchaser from its obligations hereunder.
Section 13.7.    Waivers, Remedies Cumulative.  No failure to exercise, nor any delay in exercising, on the part of the Purchaser, any right or remedy under the Purchase Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by Law.
Section 13.8.    Accounting Treatment; Non-Reliance.  Each of the Seller and the Guarantor  agrees and acknowledges that (i) it is a sophisticated party in relation to this Agreement; (ii) it has made its own independent decision to enter into the Agreement, the other Purchase Documents to which it is a party and the transactions contemplated hereby and thereby and, in connection therewith, has obtained such independent accounting, legal, tax, financial and other advice as it deems necessary and appropriate (including, without limitation, as to the appropriate treatment of such transactions for accounting, legal, tax and other purposes) and (iii) it has not relied upon any representation or advice from Purchaser, Purchaser’s affiliates or any of their respective directors, officers, employees, contractors, counsel, advisors or other representatives in this regard.
Section 13.9.    Third Party Rights.  Other than as specifically provided in this Agreement, no Person not a party to this Agreement shall be deemed a third party beneficiary hereof.
Section 13.10.    Counterparts.  Each Purchase Document may be executed in any number of counterparts, and by the different parties thereto on separate counterparts; each such counterpart shall be deemed an original and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  A facsimile or electronic copy of an executed counterpart of this Agreement shall be effective as an original for all purposes.
Section 13.11.    Entire Agreement.  The Purchase Documents constitute the entire agreement between the parties hereto in relation to the transactions contemplated hereby, and supersede all previous proposals, agreements and other written and oral communications in relation thereto.
Section 13.12.    Exclusion of Liability.  To the extent permitted by applicable Law, neither the Seller nor the Guarantor shall assert, and the Seller and the Guarantor each hereby waive, any claim against the Purchaser and its affiliates, members of the board of directors, employees, attorneys, agents or sub-agents, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or 

actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement or any other Purchase Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any purchase or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and the Seller and the Guarantor each hereby waive, release and agree not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.
Section 13.13.    Invalidity.  If at any time any provision of the Purchase Documents shall be adjudged by any court or other competent tribunal to be illegal, invalid or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired, and the parties hereto will use their best efforts to revise the invalid provision so as to render it enforceable in accordance with the intention expressed in this Agreement.
Section 13.14.    Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the State of New York without regard to the principles of conflicts of law thereof (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).
Section 13.15.    Consent to Jurisdiction.  Any litigation based hereon, or arising out of, under or in connection with this Agreement or any other Purchase Document, may be brought and maintained in the courts of the State of New York sitting in New York County, New York or in the United States district court for the Southern District of New York; provided, any suit seeking enforcement against any Receivables or other property may be brought, at the Purchaser’s option, in the courts of any jurisdiction where such Receivables or other property may be found.  The Seller and the Guarantor each hereby expressly and irrevocably submit to the jurisdiction of the courts of the State of New York sitting in New York County, New York and of the United States district court for the Southern District of New York for the purpose of any such litigation.  The Seller and the Guarantor each further irrevocably consent to the service of process by registered mail, postage prepaid, to the address specified in Section 13.4 or by personal service within or without the State of New York.  The Seller and the Guarantor each expressly and irrevocably waive, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the laying of venue of any such litigation brought in any such court and any claim that any such litigation has been brought in an inconvenient forum.
Section 13.16.    WAIVER OF JURY TRIAL.  THE SELLER, THE GUARANTOR AND THE PURCHASER HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER PURCHASE DOCUMENT OR ANY APPLICATION, INSTRUMENT, DOCUMENT, AMENDMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER PURCHASE DOCUMENTS, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
Section 13.17.    USA Patriot Act. The Purchaser hereby notifies the Seller and the Guarantor that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Title III of Pub. L. 109-177 (signed into law March 9, 2009), as amended from time to time (the “PATRIOT Act”), it is required to obtain, verify, and record information that identifies the Seller and the Guarantor, which information includes the name and address of the Seller and the Guarantor and other information that will allow the Purchaser to identify the Seller and the Guarantor in accordance with the PATRIOT Act.

Section 13.18.    Confidentiality.  Each party hereto agrees to hold the Purchase Documents, the transactions contemplated thereby and all non-public information received by it in connection therewith from any other party hereto or its agents or representatives in confidence and agrees not to provide any Person with copies of this Agreement or such non-public information other than to (a) its affiliates and any officers, directors, members, managers, employees or outside accountants, auditors or attorneys of such party or its affiliates, (b) any prospective or actual assignee or participant which (in each case) has signed a confidentiality agreement containing provisions substantively identical to this Section 13.18 or has agreed to be subject to the terms of this Section 13.18, (c) credit support providers if they agree to hold it confidential pursuant to customary commercial terms, (d) Governmental Authorities with appropriate jurisdiction (including filings required under securities Laws), (e) the service provider with whom the Purchaser subcontracts use of the PrimeRevenue System provided that such service provider agrees to hold such information confidential pursuant to customary commercial terms and (f) appropriate filings under the UCC.  Notwithstanding the above stated obligations, the parties hereto will not be liable for disclosure or use of such information which: (i) was required by Law, including pursuant to a valid subpoena or other legal process, (ii) is disclosed or used in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Purchase Document or the enforcement of rights hereunder or thereunder, (iii) was in such Person’s possession or known to such Person prior to receipt or (iv) is or becomes known to the public through disclosure in a printed publication (without breach of any of such Person’s obligations hereunder).  
Section 13.19.    Communication Through the PrimeRevenue System.  Each party hereto consents to the communication and delivery of offers, acceptances and other communications and the creation of binding contracts through the PrimeRevenue System, although such communications are by electronic means rather than in writing on paper.  Each party hereto waives any claim or defense that any such offers, acceptances or other communications and any contracts arising therefrom are not binding or enforceable as a result of their being communicated electronically rather than in writing on paper.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties have executed this Agreement by their undersigned, duly authorized officers on the date first above written:
SELLER:

EDGEWELL PERSONAL CARE, LLC

By:  /s/ John D. Cunningham    
Name: John D. Cunningham
Title: Asst Treasurer

GUARANTOR:

EDGEWELL PERSONAL CARE COMPANY

By: /s/ John D. Cunningham    
Name: John D. Cunningham
Title: VP, Treasurer

PURCHASER:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH

By: /s/ Nirmalya Mitra    
Name: Nirmalya Mitra
Title: DirectorSECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of September 14, 2017, between The Greater Cannabis
Company, Inc., a Florida corporation and its predecessors (the “Company”), and each purchaser identified on
the signature pages hereto (each, including its successors and permitted assigns, a “Purchaser” and collectively,
the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement.

 

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

 

ARTICLE
I.

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Articles of Incorporation (as defined herein), and (b) the following
terms have the meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.15.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means a Closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligation to pay the Subscription Amount at such Closing,
and (ii) the Company’s obligations to deliver the Securities to be issued and sold at such Closing, in each case, have been
satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, $0.001 par value per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

    	 	1	 

    	 	 

    

 

“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 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
Counsel” means John T. Root, Jr., Esq., P.O. Box 701, Greenbrier, Arkansas 72058, fax: (501) 325-1130.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Note.

 

“Conversion
Shares” means shares of the Company’s Common Stock issuable upon conversion of the Note and interest in accordance
with the terms of the Note.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disqualification
Event” shall have the meaning ascribed to such term in Section 3.1(gg).

 

“End
Date” shall mean two years after the Closing Date.

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock and options to officers, directors, employees, or consultants
of the Company prior to and after the Closing Date in the amounts and on the terms set forth on Schedule 3.1(g), (b) securities
upon the exercise or exchange of or conversion of Securities issued hereunder (subject to adjustment for forward and reverse stock
splits and the like that occur after the date hereof) and/or other securities exercisable or exchangeable for or convertible into
shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities and any term thereof
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the issue price,
exercise price, exchange price or conversion price of such securities and which securities and the principal terms thereof are
set forth on Schedule 3.1(g), and (c) securities issued or issuable pursuant to the Offering and this Agreement, the Note, the
Warrants and other Transaction Documents, or upon exercise or conversion of any such securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(ff).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(ff).

 

“Financial
Statements” means the financial information annexed hereto as Schedule 3.1(h).

 

“Fully-Diluted
Basis” means the assumption that all options, warrants or other convertible securities or instruments or other rights
to acquire Common Stock or any other existing or future classes of capital stock have been exercised or converted, as applicable,
in full, regardless of whether any such options, warrants, convertible securities or instruments or other rights are then vested
or exercisable or convertible in accordance with their terms.

 

    	 	2	 

    	 	 

    

 

“GAAP”
shall mean United States generally accepted accounting principals applied on a consistent basis.

 

“Going
Public Event” shall have the meaning ascribed to such term in Section 4.13.

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(w).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Notes”
means the convertible notes, in the form of Exhibit A hereto.

 

“OFAC”
shall have the meaning ascribed to such term in Section 3.1(bb).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition, whether commenced or threatened.

 

“Purchaser
Counsel” shall mean Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212)
697-3575.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.6.

 

“Regulation
D” means Regulation D under the Securities Act.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Minimum” means, as of any date, the greater of 2,500,000 or the maximum aggregate number of shares of Common Stock then
issued or potentially issuable in the future pursuant to the Transaction Documents, including but not limited to any Underlying
Shares issuable upon conversion in full of the Notes and the interest that could accrue through three years after the term thereof
and the Warrant Shares issuable upon exercise of the Warrants, ignoring any conversion or exercise limits set forth therein plus
such additional amounts as requested by the Purchaser pursuant to the TA Letter.

 

    	 	3	 

    	 	 

    

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Securities”
means the Notes, the Warrants, and the Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Notes and Warrants purchased hereunder
as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 25% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or
other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company. Representations, undertakings and obligations set forth in this Agreement shall be applicable only to Subsidiaries
which exist or have existed at the applicable and relevant time.

 

“Termination
Date” shall have the meaning ascribed to such term in Section 2.1.

 

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

 

“Trading
Market” means any of the following markets or exchanges: the NYSE MKT LLC, the Nasdaq Capital Market, the Nasdaq Global
Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any
successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Notes, the Warrants, all exhibits and schedules thereto and hereto, and any other
documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means the transfer agent for the Common Stock, and any successor transfer agent of the Company. As of the Closing
Date, the Company’s Transfer Agent is Pacific Stock Transfer.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Notes and payment of interest on
the Notes in accordance with the terms of the Notes and upon exercise of the Warrants in accordance with the terms of the Warrants.

 

“Unlegended
Shares” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Warrants”
means the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Article II hereof, in the
form of Exhibit B attached hereto.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

    	 	4	 

    	 	 

    

  

ARTICLE
II.

PURCHASE
AND SALE

 

2.1
Closing. On the Closing Dates, upon the terms and subject to the conditions set forth herein, the Company agrees to sell,
and the Purchasers, severally and not jointly, agree to purchase, an aggregate of up to $13,750.00 principal amount of Notes and
Warrants as determined pursuant to Section 2.2(a), such purchase and sale being the “Closing”. Each Purchaser
shall deliver to the Company such Purchaser’s Subscription Amount, and the Company shall deliver to each Purchaser its respective
Note and Warrants, as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items
set forth in Section 2.2 deliverable at a Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2
and 2.3, the Closing shall occur at the offices of G&M or such other location as the parties shall mutually agree. Notwithstanding
anything herein to the contrary, the Closing must take place on or before September 29, 2017 (the “Termination Date”).
With respect to the Closing not held on or before the Termination Date, the Company shall cause all subscription documents and
funds, if any, to be returned, without interest or deduction to each prospective Purchaser.

 

2.2
Deliveries.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)
this Agreement duly executed by the Company with the schedules and exhibits thereto current as of each such Closing Date;

 

(ii)
a Note with a principal amount equal to 110% of such Purchaser’s Subscription Amount registered in the name of such Purchaser;

 

(iii)
Warrants registered in the names of such Purchaser equal to two warrants for each share that the Purchaser could acquire if purchaser
had converted the entire Note immediately upon the Closing at the Fixed Conversion Price having a per share exercise price equal
to $0.50, subject to adjustment as provided therein; and

 

(iv)
the Registration Statement duly executed by the Company.

 

(b)
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)
this Agreement duly executed by such Purchaser; and

 

(ii)
such Purchaser’s Subscription Amount by wire transfer.

 

2.3
Closing Conditions.

 

(a)
The obligations of the Company hereunder to effect a Closing are subject to the following conditions being met:

 

(i)
the accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar
qualifiers therein) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of
a specific date therein in which case they shall be accurate as of such date);

 

    	 	5	 

    	 	 

    

 

(ii)
all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have
been performed; and

 

(iii)
the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)
The respective obligations of a Purchaser hereunder to effect the Closing, unless waived by such Purchaser, are subject to the
following conditions being met:

 

(i)
the accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar
qualifiers therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a
specific date therein in which case they shall be accurate as of such date);

 

(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)
from the date hereof to the Closing Date, trading in securities in the United States generally as reported by Bloomberg L.P. shall
not have been suspended or limited, nor shall a banking moratorium have been declared either by the United States or New York
State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation made herein to which it refers and any other representation
to the extent such Disclosure Schedule reasonably relates thereto without a requirement of a cross-reference. The Company hereby
makes the following representations and warranties to each Purchaser as of the date hereof and the Closing Date unless as of a
specific date therein in which case they shall be accurate as of such date:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company and the Company’s ownership interests therein
as of the date of this Agreement are set forth on Schedule 3.1(a). The Company owns, directly or indirectly, all of the
capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. If the Company has no Subsidiaries relevant to any component of this Agreement
as of a particular date, then such reference shall not be applicable.

 

    	 	6	 

    	 	 

    

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries 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. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries 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: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document, or (iv) the occurrence of a Disqualification Event (any of (i), (ii), (iii) or (iv), 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.

 

(c)
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
and creditors in connection herewith or therewith other than in connection with the Required Approvals except those filings requires
to be made with the Commission and state agencies after the Closing Date. This Agreement and each other Transaction Document to
which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof and thereof, will constitute the valid and binding obligations of the Company enforceable against the Company
in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents,
the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which
it is a party do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a 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 (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected.

 

    	 	7	 

    	 	 

    

 

(e)
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filing of Form D with the Commission, and (ii) such filings as are required to be made under applicable state securities
laws (collectively, the “Required Approvals”).

 

(f)
Issuance of the Securities. 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 nonassessable, free and clear of all Liens other than those
created by the Purchaser. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for
issuance of the Underlying Shares at least equal to the Required Minimum on the date hereof. In order to ensure such reservation
the Company shall have its Transfer Agent countersign the TA Letter in the form annexed hereto as Exhibit C, at the Closing. The
failure to comply with the terms of this section shall be a material breach of the agreement.

 

(g)
Capitalization. The capitalization of the Company is as set forth in Schedule 3.1(g). Except as disclosed on Schedule
3.1(g), 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 disclosed on Schedule 3.1(g), there are no outstanding
options, employee or incentive stock option plans 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.
There is no stock option plan in effect as of the Closing Date. Except as set forth on Schedule 3.1(g), 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 Purchasers) 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. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in material compliance with all federal and state securities laws,
and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase
securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance
and sale of the 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.

 

(h)
Financial Statements. Annexed hereto as Schedule 3.1(h) is financial information of the Company (“Financial
Statements”). The Financial Statements have not been prepared in accordance with GAAP. The Financial Statements fairly
present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject to normal, immaterial adjustments and
inclusion of footnotes which would be required pursuant to generally accepted accounting principles. The Financial Statements
include balance sheets as of each of the most recent fiscal year ends and as of a month end immediately preceding the relevant
Closing date and income statements as of the same dates.

 

    	 	8	 

    	 	 

    

 

(i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the most recently dated Financial
Statements except as disclosed on Schedule 3.1(i): (i) there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities
(contingent or otherwise) other than trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or
Affiliate.

 

(j)
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge
of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by
any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably
be expected to result in a Material Adverse Effect. At no time, neither the Company nor any Subsidiary, nor any director or officer
thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities
laws or a claim of breach of fiduciary duty.

 

(k)
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such
Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive
officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not
subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and
its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment
and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l)
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree
or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance
or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating
to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters,
except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as presently
conducted, and as contemplated to be conducted, except where the failure to possess such permits could not reasonably be expected
to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has
received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

    	 	9	 

    	 	 

    

 

(n)
Title to Assets. The Company and the Subsidiaries have good and marketable title in all personal property owned by them
that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i)
Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to
be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes,
for which appropriate reserves have been made and, the payment of which is neither delinquent nor subject to penalties. The Company
and Subsidiaries do not own any real property. Any real property and facilities held under lease by the Company and the Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.
The Company owns no real property except as described on Schedule 3.1(n).

 

(o)
Intellectual Property.

 

(i)
The term “Intellectual Property Rights” includes:

 

1.
the name of the Company and each Subsidiary, all fictional business names, trading names, registered and unregistered trademarks,
service marks, and applications of the Company and each Subsidiary (collectively, “Marks’’);

 

2.
all patents, patent applications, and inventions and discoveries that may be patentable of the Company and each Subsidiary (collectively,
“Patents’’);

 

3.
all copyrights in both unpublished works and published works of the Company and each Subsidiary (collectively, “Copyrights”);

 

4.
all rights in mask works of the Company and each Subsidiary (collectively, “Rights in Mask Works’’);

 

5.
all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology,
plans, drawings, and blue prints (collectively, “Trade Secrets’’); owned, used, or licensed by the Company
and each Subsidiary as licensee or licensor; and

 

6.
the license or right to directly or indirectly use any of the foregoing, whether perpetually or for a fixed term, whether or not
subject to defeasement, and whether or not reduced to writing or otherwise memorialized.

 

(ii)
Agreements. Schedule 3.1(o) contains a complete and accurate list and description of all material Intellectual Property
Rights and of all contracts (including Term Sheets and oral agreements) relating to the Intellectual Property Rights to which
the Company is a party or by which the Company is bound, except for any license implied by the sale of a product and perpetual,
paid-up licenses for commonly available software programs with a value of less than $10,000 under which the Company is the licensee.

 

(iii)
Know-How Necessary for the Business. The Intellectual Property Rights are all those necessary for the operation of the
Company’s businesses as it is currently conducted or contemplated to be conducted. The Company is the owner of all right,
title, and interest in and to each of the Intellectual Property Rights, free and clear of all liens, security interests, charges,
encumbrances, equities, and other adverse claims, and has the right to use all of the Intellectual Property Rights. To the Company’s
knowledge, no employee of the Company has entered into any contract that restricts or limits in any way the scope or type of work
in which the employee may be engaged or requires the employee to transfer, assign, or disclose information concerning his work
to anyone other than of the Company.

 

    	 	10	 

    	 	 

    

 

(iv)
Patents. The Company is the owner of or licensee of all right, title and interest in and to each of the Patents, free and
clear of all Liens and other adverse claims. All of the issued Patents are currently in compliance with formal legal requirements
(including payment of filing, examination, and maintenance fees and proofs of working or use), are valid and enforceable, and
are not subject to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. No Patent has
been or is now involved in any interference, reissue, reexamination, or opposition proceeding. To the Company’s knowledge:
(1) there is no potentially interfering patent or patent application of any third party, and (2) no Patent is infringed or has
been challenged or threatened in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any
process or know-how used, by the Company infringes or is alleged to infringe any patent or other proprietary right of any other
Person.

 

(v)
Trademarks. The Company is the owner of all right, title, and interest in and to each of the Marks, free and clear of all
Liens and other adverse claims. All Marks that have been registered with the United States Patent and Trademark Office are currently
in compliance with all formal legal requirements (including the timely post-registration filing of affidavits of use and incontestability
and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling
due within ninety days after the Closing Date. No Mark has been or is now involved in any opposition, invalidation, or cancellation
and, to the Company’s knowledge, no such action is threatened with respect to any of the Marks. To the Company’s knowledge:
(1) there is no potentially interfering trademark or trademark application of any third party, and (2) no Mark is infringed or
has been challenged or threatened in any way. To the Company’s knowledge, none of the Marks used by the Company infringes
or is alleged to infringe any trade name, trademark, or service mark of any third party.

 

(vi)
Copyrights. The Company is the owner of all right, title, and interest in and to each of the Copyrights, free and clear
of all Liens and other adverse claims. All the Copyrights have been registered and are currently in compliance with formal requirements,
are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after
the date of the Closing. No Copyright is infringed or, to the Company’s knowledge, has been challenged or threatened in
any way. To the Company’s knowledge, none of the subject matter of any of the Copyrights infringes or is alleged to infringe
any copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights
have been marked with the proper copyright notice.

 

(vii)
Trade Secrets. With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate,
and sufficient in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge
or memory of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value
of its Trade Secrets. The Company has good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets.
The Trade Secrets are not part of the public knowledge or literature, and, to the Company’s knowledge, have not been used,
divulged, or appropriated either for the benefit of any Person (other the Company) or to the detriment of the Company. No Trade
Secret is subject to any adverse claim or has been challenged or threatened in any way.

 

    	 	11	 

    	 	 

    

 

(p)
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost. The Company has valid and subsisting insurance in compliance with all applicable
legal requirements.

 

(q)
Transactions With Affiliates and Employees. Except as set forth in the Financial Statements and Transaction Documents,
none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees
of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services
as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or
lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of
the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee, stockholder, member or partner, except as disclosed on Schedule 3.1(q).

 

(r)
Certain Fees. Except as set forth on Schedule 3.1(r), no brokerage, finder’s fees, commissions or due diligence
fees are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The
Purchasers shall have no obligation with respect to any such fees or with respect to any claims made by or on behalf of other
Persons for fees of a type contemplated in this Section 3.1(r) that may be due in connection with the transactions contemplated
by the Transaction Documents.

 

(s)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended. The Company is not aware of any person that has
been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Regulation
D Securities.

 

(t)
Registration Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the
Securities Act of any securities of the Company or any Subsidiary, except for the Purchasers.

 

(u)
Application of Takeover Protections. As of the Closing Date, the Company will have taken all necessary action, if any,
in order to render inapplicable as of the Closing Date and thereafter any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s
certificate of incorporation (or similar charter documents) or the laws of the State of Delaware that is or could become applicable
to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under
the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

 

    	 	12	 

    	 	 

    

 

(v)
Disclosure. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and
its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to
this Agreement, when taken together as a whole, is true and correct in all material respects and does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3.2.

 

(w)
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, and the Company’s
good faith estimate of the fair market value of its assets, after giving effect to the receipt by the Company of the proceeds
from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business
as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements
of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and
(iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of
its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect
of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to
pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The Company Financial Statements
and Schedule 3.1(i) set forth all outstanding liens secured and unsecured Indebtedness of the Company or any Subsidiary,
or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
means (y) any liabilities for borrowed money or amounts owed in excess of $50,000 in the aggregate and (z) the present value of
any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with generally accepted accounting
principles. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(x)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and
local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

(y)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material
respect any provision of FCPA.

 

    	 	13	 

    	 	 

    

 

(z)
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no Purchaser is 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 thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

 

(aa)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance
with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

(bb)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(cc)
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers
as contemplated hereby.

 

(dd)
No General Solicitation or Integration. To the best knowledge of the Company, neither the Company nor any person acting
on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.
To the best knowledge of the Company, the Company has offered the Securities for sale only to the Purchasers and certain other
“accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(ee)
Indebtedness and Seniority. As of the date hereof, all Indebtedness and Liens are as set forth on the Company Financial
Statements and Schedule 3.1(i). Except as set forth on the Company Financial Statements and Schedule 3.1(i), as
of the Closing Date, no Indebtedness, equity, Common Stock Equivalent is senior to the Notes in right of payment, whether with
respect to interest or upon liquidation or dissolution, or otherwise, and capital lease obligations (which is senior only as to
the property covered thereby).

 

(ff)
FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is
manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such
product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled,
tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar
laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval,
good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising,
record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse Effect. There
is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration, or legal
or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries,
and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA
or any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses
of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any
Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders
the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical
hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company
or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or
any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its
Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business
and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws,
rules and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale,
license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has the FDA
expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the
Company.

 

    	 	14	 

    	 	 

    

 

(gg)
No Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered
Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor”
disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine
whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable,
with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.
The Company will notify the Purchasers in writing, prior to the Closing Date of (i) any Disqualification Event relating to any
Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any
Issuer Covered Person.

 

(hh)
Survival. The foregoing representations and warranties shall survive the Closing Date.

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents
and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)
Organization; Authority. Such Purchaser is either an individual or 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 and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
to the extent the indemnification provisions contained in this Agreement may be limited by applicable law.

 

    	 	15	 

    	 	 

    

 

(b)
Understandings or Arrangements. Such Purchaser understands that the Securities are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as
principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation
of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities
in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any
applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities
pursuant to a registration statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser
is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it converts a Note or exercises any Warrants, it will be either: (i) an “accredited investor” as
defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional
buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act. Such Purchaser has the authority and is duly and legally qualified to purchase and own the
Securities. Such Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss
thereof.

 

(d)
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)
Information on Company. Purchasers are not deemed to have any knowledge of any information not included in the Financial
Statements or the Transaction Documents unless such information is delivered in the manner described in the next sentence. Each
Purchaser was afforded (i) the opportunity to ask such questions as such Purchaser deemed necessary of, and to receive answers
from, representatives of the Company concerning the merits and risks of acquiring the Securities; (ii) the right of access to
information about the Company and its financial condition, results of operations, business, properties, management and prospects
sufficient to enable such Purchaser to evaluate the Securities; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to acquiring the Securities. In addition, such Purchaser may have received in writing from the Company such
other information concerning its operations, financial condition and other matters as such Purchaser has requested, identified
thereon as OTHER WRITTEN INFORMATION (such other information is collectively, the “Other Written Information”),
and considered all factors such Purchaser deems material in deciding on the advisability of investing in the Securities.

 

    	 	16	 

    	 	 

    

 

(f)
Compliance with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have
not been registered under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that
does not require registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition
is registered under the 1933 Act or any applicable state securities laws or is exempt from such registration. Such Purchaser understands
and agrees that the Securities are being offered and sold to such Purchaser in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and regulations and that the Company is relying in part upon the
truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Securities.

 

(g)
Communication of Offer. Such Purchaser is not purchasing the Securities as a result of any “general solicitation”
or “general advertising,” as such terms are defined in Regulation D, which includes, but is not limited to, any advertisement,
article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or on the
internet or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or
general advertisement.

 

(h)
No Governmental Review. Such Purchaser understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(i)
No Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction Documents
and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or thereto do not
and will not (i) result in a violation of such Purchaser’s charter documents, bylaws or other organizational documents,
if applicable, (ii) conflict with nor constitute a default (or an event which with notice or lapse of time or both would become
a default) under any agreement to which such Purchaser is a party, nor (iii) result in a violation of any law, rule, or regulation,
or any order, judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for
such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such
Purchaser). Such Purchaser is not required to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement
or perform under the other Transaction Documents nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

 

(j)
Tax Liability. Such Purchaser has reviewed with its own tax advisors the federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement. Such Purchaser understands that it (and not the Company)
shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated
by this Agreement.

 

(k)
Survival. The foregoing representations and warranties shall survive the Closing Date.

 

3.3
Reliance. The Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend
or affect such Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement
or any representations and warranties contained in any other Transaction Document or any other document or instrument executed
and/or delivered in connection with this Agreement or the consummation of the transaction contemplated hereby.

 

    	 	17	 

    	 	 

    

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

(a)
Disposition of Securities. The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the
transferor thereof to provide to the Company at the Company’s expense, an opinion of counsel selected by the transferor
and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition
of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and
obligations of a Purchaser under the Transaction Documents and registration statement, if any.

 

(b)
Legend. The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
in the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

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

 

    	 	18	 

    	 	 

    

 

(d)
Legend Removal. Certificates evidencing the Underlying Shares shall not contain any legend (“Unlegended Shares”)
(including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement covering the resale of such security
is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (iii) if such Underlying
Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public
information required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale restrictions or (iv) if
such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent during
the time any of the aforedescribed conditions apply, to effect the removal of the legend hereunder. If all or any Notes are converted
or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the
corresponding Underlying Shares, or if such Underlying Shares may be sold under Rule 144 or if such legend is not otherwise required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff
of the Commission) then such Underlying Shares shall be issued free of all legends. The Company agrees that following such time
as such legend is no longer required under this Section 4.1(d), it will, no later than five Trading Days following the delivery
by the Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with
a restrictive legend (such fifth Trading Day, the “Legend Removal Date”), deliver or cause to be delivered
to such Purchaser a certificate representing such shares that is free from all restrictive and other legends (however, the Corporation
shall use reasonable best efforts to deliver such shares within three (3) Trading Days). The Company may not make any notation
on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section
4.1. Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the
Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed
by such Purchaser.

 

(e)
Legend Removal Default. In addition to such Purchaser’s other available remedies, provided the conditions for legend
removal set forth in Section 4.1(c) exist, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not
as a penalty, for each $1,000 of Underlying Shares (based on the higher of the actual purchase price of the Common Stock on the
date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section
4.1(d), $10 per Trading Day for each Trading Day after the Legend Removal Date (increasing to $20 per Trading Day after the fifth
Trading Day) until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser’s right to
pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required by the Transaction
Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief.

 

(f)
DWAC. Commencing after the occurrence of the Going Public Event, in lieu of delivering physical certificates representing
the Unlegended Shares, upon request of a Purchaser, so long as the certificates therefor do not bear a legend and the Purchaser
is not obligated to return such certificate for the placement of a legend thereon, the Company shall cause its transfer agent
to electronically transmit the Unlegended Shares by crediting the account of Purchaser’s prime broker with the Depository
Trust Company through its Deposit Withdrawal At Custodian system, provided that the Company’s Common Stock is DTC eligible
and the Company’s transfer agent participates in the Deposit Withdrawal at Custodian system. Such delivery must be made
on or before the Legend Removal Date.

 

    	 	19	 

    	 	 

    

 

(g)
Resale Requirements. Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that
such Purchaser will sell the Securities pursuant to either the registration requirements of the Securities Act, including any
applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration
statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal
of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s
reliance upon this understanding.

 

(h)
Remedies. In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash,
as partial liquidated damages and not as a penalty, for each $1,000 of Conversion Shares or Warrant Shares delivered for removal
of the restrictive legend and Conversion Shares delivered for conversion into Shares, $10 per Trading Day for each Trading Day
following the Legend Removal Date or the date such Securities are to be delivered pursuant to the Note until such Common Stock
certificate is delivered without a legend pursuant to Section 4.1(c) or such Conversion Shares. Nothing herein shall limit such
Purchaser’s right to elect in lieu of the aforedescribed liquidated damages to pursue actual damages for the Company’s
failure to deliver certificates representing any Underlying Shares as required by the Transaction Documents, and such Purchaser
shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

 

(i)
Injunction. In the event a Purchaser shall request delivery of Securities as described in this Section 4.1 or Common Stock
pursuant to the Note and the Company is required to deliver such Securities, the Company may not refuse to deliver Securities
based on any claim that such Purchaser or anyone associated or affiliated with such Purchaser has not complied with Purchaser’s
obligations under the Transaction Documents, or for any other reason, unless, an injunction or temporary restraining order from
a court, on notice, restraining and or enjoining delivery of such unlegended shares shall have been sought and obtained by the
Company and the Company has posted a surety bond for the benefit of such Purchaser in the amount of 120% of the amount of the
aggregate purchase price of the Securities intended to be subject to the injunction or temporary restraining order, which bond
shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable
to such Purchaser to the extent Purchaser obtains judgment in Purchaser’s favor.

 

(j)
Buy-In. In addition to any other rights available to Purchaser, if the Company fails to deliver to a Purchaser Securities
as required pursuant to this Agreement or the Note and after the Legend Removal Date or required delivery date pursuant to the
Note the Purchaser, or a broker on the Purchaser’s behalf, purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by such Purchaser of the shares of Common Stock which the Purchaser was entitled
to receive in unlegended form from the Company (a “Buy-In”), then the Company shall promptly pay in cash to
the Purchaser (in addition to any remedies available to or elected by the Purchaser) the amount, if any, by which (A) the Purchaser’s
total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (B) the aggregate
purchase price of the shares of Common Stock delivered to the Company for reissuance as unlegended Shares or as are required to
be delivered pursuant to the Note, as the case may be, together with interest thereon at a rate of 15% per annum accruing until
such amount and any accrued interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).
For example, if a Purchaser purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect
to $10,000 of purchase price of Shares delivered to the Company for reissuance as unlegended shares, the Company shall be required
to pay the Purchaser $1,000, plus interest, if any. The Purchaser shall provide the Company written notice indicating the amounts
payable to the Purchaser in respect of the Buy-In.

 

    	 	20	 

    	 	 

    

 

4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the
outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges
that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Shares
pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay
or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless
of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

 

4.3
Furnishing of Information. From and after the Closing Date and until the End Date, the Company will file with the Commission
and have cause to be available on EDGAR all of the reports required to be filed by a company subject to the reporting requirements
of Section 12(g) of the Exchange Act even if the Company is not required to make such filings.

 

4.4
Conversion and Exercise Procedures. Each of the form of Notice of Conversion attached to the Note and form of Notice of
Exercise included in the Warrants sets forth the totality of the procedures required of the Purchasers in order to convert the
Note or exercise the Warrant. No additional legal opinion, other information or instructions shall be required of the Purchasers
to convert their Note or exercise their Warrants. The Company shall honor conversions of the Note and exercises of the Warrants
and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.5
Use of Proceeds. The proceeds of the offering will be employed by the Company substantially for the purposes set forth
on Schedule 4.5.

 

4.6
Indemnification of Purchasers. Subject to the provisions of this Section 4.6, the Company will indemnify and hold each
Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the
Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants
under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or
any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes
fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect
of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the
Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after
a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion
of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party,
in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of its representations,
warranties or covenants under the Transaction Documents. The indemnification required by this Section 4.6 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred.
The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party
against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

    	 	21	 

    	 	 

    

 

4.7
Reservation and Listing of Securities.

 

(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less
than the Required Minimum.

 

(b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required
Minimum on such date, then the Board of Directors shall amend the Company’s certificate or articles of incorporation to
increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon as
possible and in any event not later than the 60th day after such date. In the event of a shortfall in the Required
Minimum, any shares reserved for issuance to the Company’s officers and directors (not including Purchasers, if applicable)
will be made available for issuance to the Purchasers.

 

4.8
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

4.9
Most Favored Nation Provision. From the date hereof and for so long as a Purchaser holds any Securities, in the event that
the Company issues or sells any Common Stock or Common Stock Equivalents, if a Purchaser then holding outstanding Securities reasonably
believes that any of the terms and conditions appurtenant to such issuance or sale are more favorable to such investors than are
the terms and conditions granted to the Purchasers hereunder, upon notice to the Company by such Purchaser within five (5) Trading
Days after disclosure of such issuance or sale, the Company shall amend the terms of this transaction as to such Purchaser only
so as to give such Purchaser the benefit of such more favorable terms or conditions. This Section 4.9 shall not apply with respect
to an Exempt Issuance. The Company shall provide each Purchaser with notice of any such issuance or sale not later than ten (10)
Trading Days before such issuance or sale.

 

4.10
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless
the same or substantially similar consideration is also offered, mutatis mutandis, on a ratable basis to all of the parties
to this Agreement. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company
and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not
in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting
of Securities or otherwise.

 

    	 	22	 

    	 	 

    

 

4.11
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in
a manner that would require the registration under the Securities Act of the sale or resale of the Securities.

 

4.12
Maintenance of Property and Insurance. Until the End Date, the Company shall keep all of its property, which is necessary
or useful to the conduct of its business, in good working order and condition, ordinary wear and tear excepted. Until the End
Date, the Company will maintain insurance coverage of the type and not less than the amount in effect as of the Closing Date.

 

4.13
left intentionally blank.

 

4.14
Preservation of Corporate Existence. Until the End Date, the Company shall preserve and maintain its corporate existence,
rights, privileges and franchises in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation
in each jurisdiction in which such qualification is necessary in view of its business or operations and where the failure to qualify
or remain qualified might reasonably have a Material Adverse Effect upon the financial condition, business or operations of the
Company taken as a whole.

 

4.15
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other
Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents.

 

4.16
Reimbursement. If any Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder
of the Company (except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any current
stockholder), solely as a result of such Purchaser’s acquisition of the Securities under this Agreement, the Company will
reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and
travel in connection therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations
of the Company under this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon
the same terms and conditions to any Affiliates of the Purchasers who are actually named in such action, proceeding or investigation,
and partners, directors, agents, employees and controlling persons (if any), as the case may be, of the Purchasers and any such
Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of
the Company, the Purchasers and any such Affiliate and any such Person. The Company also agrees that neither the Purchasers nor
any such Affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or
any Person asserting claims on behalf of or in right of the Company solely as a result of acquiring the Securities under this
Agreement.

 

    	 	23	 

    	 	 

    

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before September 29, 2017; provided, however, that such termination
will not affect the right of any party to sue for any breach by any other party or parties.

 

5.2
Fees and Expenses. Except as expressly set forth on Schedule 3.1(r), 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 all Transfer Agent fees,
stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. The Company
agrees to pay to the G&M, counsel to some of the Purchasers $2,500 (“Legal Fees”), to cover part of the costs
incurred by the Purchasers in connection with the preparation, execution and delivery of the Transaction Documents and Closing.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and thereof 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.

 

5.4
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 (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number 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 (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be: (i) if to the Company, to: The Greater Cannabis Company, Inc., 244 2nd
Avenue N., Suite 9, St. Petersburg, FL 33701, Attn: Wayne Anderson, Chief Executive Officer, facsimile: (727) 547-7350,
with a copy by fax only to (which shall not constitute notice): John T. Root, Jr., Esq., P.O. Box 701, Greenbrier, Arkansas 72058,
facsimile: (501) 325-1130, and (ii) if to the Purchasers, to: the addresses and fax numbers indicated on the signature pages hereto,
with an additional copy by fax only to (which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue,
Valley Stream, New York 11581, Attn: Eliezer Drew, Esq., facsimile: (212) 697-3575.

 

5.5
Amendments; Waivers. No provision of this Agreement nor any other Transaction Document may be waived, modified, supplemented
or amended nor consent obtained or approval deemed granted except in a written instrument signed, in the case of an amendment,
by the Company and the Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement nor any other Transaction
Document shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement thereof, nor shall any delay or omission of any party to exercise any right thereunder in
any manner impair the exercise of any such right. Any Purchaser may waive in writing any right or benefit granted to or available
to such Purchaser pursuant to the Transaction Documents.

 

    	 	24	 

    	 	 

    

 

5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

 

5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Following the Closing, any Purchaser may assign, on ten (10) Business Day prior
notice any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities,
provided that such transferee agrees in writing to be bound with respect to the transferred Securities by the provisions of the
Transaction Documents that apply to the “Purchasers” and is able to make each and every representation made by Purchasers
in this Agreement. No assignment by a Purchaser will be allowed if the result would be an increase in the number of actual or
beneficial owners of the assigned securities.

 

5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.10.

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof except as to these matters which are required by the laws of the State of Delaware
to be governed by the laws of the State of Delaware. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any action, suit or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, in
addition to the obligations of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

    	 	25	 

    	 	 

    

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of any Transaction Document is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to
be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
such Purchaser may, at any time prior to the Company’s performance of such obligations, rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights; provided, however, that in the case of a rescission of a conversion
of a Note or exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock subject to
any such rescinded conversion or exercise notice concurrently with the return to such Purchaser of the aggregate exercise price
paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such
Purchaser’s Note or Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

 

5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    	 	26	 

    	 	 

    

 

5.17
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in
order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in
any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of
them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to
the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from
the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at such Purchaser’s election.

 

5.18
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.19
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.20
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

5.21
Equitable Adjustment. The Conversion Price, Warrant exercise price, trading volume amounts, price/volume amounts and similar
figures in the Transaction Documents shall be equitably adjusted (but without duplication) to offset the effect of stock splits,
similar events and as otherwise described in the Transaction Documents.

 

(Signature
Pages Follow)

 

    	 	27	 

    	 	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	The
    Greater Cannabis Company, Inc.	Address
                                         for Notice:

         

        244
        2nd Avenue N.

        Suite
        9

        St.
        Petersburg, FL 33701

        Fax:
        (727) 547-7350

	By:
    /s/ Wayne Anderson	 
	Name:
                                         Wayne Anderson

         
	 
	Title:
                                         Chief Executive Officer

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

         

        John
        T. Root, Jr., Esq.

        P.O.
        Box 701

        Greenbrier,
        Arkansas 72058

        Fax:
(501) 325-1130 
	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	 	28	 

    	 	 

    

 

[PURCHASER
SIGNATURE PAGE TO The Greater Cannabis Company, Inc.

SECURITIES
PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name
of Purchaser: _____________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: ______________________________________

 

Name
of Authorized Signatory: ____________________________________________________

 

Title
of Authorized Signatory: _____________________________________________________

 

Email
Address of Authorized Signatory: ______________________________________________

 

Facsimile
Number of Authorized Signatory: ___________________________________________

 

Address
for Notice to Purchaser:

 

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

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

Subscription
Amount: US$________________

 

Note
Principal: _________________________

 

Warrants:
_____________________________

 

EIN
Number, if applicable, will be provided under separate cover: ________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    	 	29	 

    	 	 

    

 

EXHIBITS
AND SCHEDULES

 

Exhibit
A Form of Note

Exhibit
B Form of Warrant

Exhibit
C TA Letter

 

Schedule
3.1(a)

Schedule
3.1(g)

Schedule
3.1(h)

Schedule
3.1(i)

Schedule
3.1(n)

Schedule
3.1(o)

Schedule
3.1(q)

Schedule
3.1(r)

Schedule
4.5

 

    	 	30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]