Document:

Exhibit 10.1

 

January 7, 2022

 

Authentic Equity Acquisition Corp.

32 Elm Place, 2nd Floor

Rye, NY 10580

 

	Re:	Insider Agreement

 

Ladies and Gentlemen:

 

This letter (this “Letter
Agreement”) is being delivered to you in connection with the appointment of the undersigned, Robert Ernst (the “Insider”),
as a director of Authentic Equity Acquisition Corp., a Cayman Islands exempted company (the “Company”). The
Insider acknowledges that the Company has consummated its initial public offering on January 20, 2021 (the “Public Offering”)
of 23,000,000 units (including 3,000,000 units purchased pursuant to the Underwriters’ option to purchase additional units, the
“Units”), each comprised of one Class A ordinary share, par value $0.0001 per share (the “Ordinary
Shares”), of the Company and one-half of one redeemable warrant (each whole warrant, a “Warrant”).
Each Warrant entitles the holder thereof to purchase one Ordinary Share at a price of $11.50 per share, subject to adjustment. Certain
capitalized terms used herein are defined in paragraph 1 hereof.

 

For good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Insider hereby agrees with the Company as follows:

 

1. Definitions.
As used herein, the term:

 

(a) “Business Combination”
shall mean a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more
businesses or entities;

 

(b) “Forward Purchase
Agreement” shall mean that certain forward purchase agreement entered into between the Company and the Sponsor, relating
to the purchase by GEPT of certain forward purchase rights from the Company, in exchange for $824,500, including (i) the purchase by
GEPT, in its discretion, of an amount designated by the Company, which amount will not exceed the lesser of (A) $50,000,000 of units
and (B) 19.99% of the pro forma equity outstanding at the time of the Business Combination Closing, including but not limited to, any
Ordinary Shares issued in connection with this offering, the Forward Purchase Agreement or any private placement or other offering or
to any seller of the target business, with each unit consisting of one Ordinary Share and 0.425 of one Warrant to purchase one Ordinary
Share at $11.50 per share, for a purchase price of $10.00 per unit, in a transaction to occur concurrently with the closing of the initial
Business Combination and (ii) if GEPT makes the purchase described in clause (i), the issuance by the Company to GEPT of a number of
Class B ordinary shares of the Company, par value $0.0001 per share (the “Class B Shares”) and warrants, each
exercisable to purchase one Ordinary Share at $11.50 per share, subject to adjustment as specified therein;

 

(c) “Founder Shares”
shall mean (i) the Class B Shares outstanding prior to the consummation of the Public Offering and (ii) the Class B Shares, if any, issued
to GEPT pursuant to the Forward Purchase Agreement;

 

     

     

    

 

(d) “GEPT”
shall mean General Electric Pension Trust;

 

(e) “Private Placement
Warrants” shall mean (i) the warrants to purchase Ordinary Shares of the Company that will be acquired by the Sponsor for
an aggregate purchase price of $5,175,500 (or up to $5,775,500 if the Underwriters’ exercise their option to purchase additional
units), in a private placement that shall close simultaneously with the consummation of the Public Offering (including Ordinary Shares
issuable upon conversion thereof) and (ii) the warrants, if any, issued to GEPT pursuant to clause (ii) of the definition of “Forward
Purchase Agreement” (including Ordinary Shares issuable upon conversion thereof);

 

(f) “Public
Shareholders” shall mean the holders of Ordinary Shares included in the Units issued in the Public Offering;

 

(g) “Public
Shares” shall mean the Ordinary Shares included in the Units issued in the Public Offering;

 

(h) “Trust Account”
shall mean the trust account into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement Warrants
and the net proceeds from the Forward Purchase Agreement shall be deposited;

 

(i) “Transfer”
shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise
dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation
with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder with respect to, any security, (b) entry into any swap
or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether
any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention
to effect any transaction specified in clause (a) or (b);

 

(j) “Charter”
shall mean the Company’s Amended and Restated Memorandum and Articles of Association, as the same may be amended from time to time;
and

 

(k) “Underwriters”
shall mean the underwriters of the Public Offering.

 

2. Representations
and Warranties.

 

(a) The
Insider represents and warrants to the Company that he has the full right and power, without violating any agreement to which he is bound
(including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer), to enter into
this Letter Agreement and to serve as a director on the Company’s Board of Directors (the “Board”).

 

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(b) The
Insider represents and warrants that such Insider’s biographical information furnished to the Company (including any such information
included in the Current Report on Form 8-K relating to the Insider’s appointment and to be filed by the Company with the Securities
and Exchange Commission (the “Commission”)) is true and accurate in all material respects and does not omit
any material information with respect to such Insider’s background. The Insider’s questionnaire furnished to the Company is
true and accurate in all material respects. The Insider represents and warrants that such Insider is not subject to or a respondent in
any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain from any act or practice relating
to the offering of securities in any jurisdiction; such Insider has never been convicted of, or pleaded guilty to, any crime (i) involving
fraud, (ii) relating to any financial transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities
and such Insider is not currently a defendant in any such criminal proceeding; and such Insider has never been suspended or expelled from
membership in any securities or commodities exchange or association or had a securities or commodities license or registration denied,
suspended or revoked.

 

3. Business
Combination Vote.

 

The Insider agrees that if
the Company seeks shareholder approval of a proposed initial Business Combination, then in connection with such proposed initial Business
Combination, he shall vote all Founder Shares and any Public Shares held by him in favor of such proposed initial Business Combination
(including any proposals recommended by the Board in connection with such Business Combination) and not redeem any Public Shares held
by him in connection with such shareholder approval.

 

4. Failure to Consummate
a Business Combination; Trust Account Waiver.

 

(a) The
Insider hereby agrees that in the event that the Company fails to consummate its initial Business Combination within the time period set
forth in the Charter, the Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose
of winding up; (ii) as promptly as reasonably possible but not more than 10 business days thereafter, redeem 100% of the Public Shares,
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on
the funds held in the Trust Account and not previously released to the Company to pay income taxes (less up to $100,000 of interest to
pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public
Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly
as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the Board,
liquidate and dissolve, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Cayman Islands law to provide
for claims of creditors and in all cases subject to the other requirements of applicable law. The Insider agrees not to propose any amendment
to the Charter (i) that would modify the substance or timing of the Company’s obligation to provide holders of the Public Shares
the right to have their shares redeemed in connection with an initial Business Combination or to redeem 100% of the Public Shares if the
Company does not complete an initial Business Combination within the required time period set forth in the Charter or (ii) with respect
to any provision relating to the rights of holders of Public Shares, unless the Company provides its Public Shareholders with the opportunity
to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount
then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to
the Company to pay taxes, if any, divided by the number of then-outstanding Public Shares.

 

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(b) The
Insider acknowledges that he has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any other
asset of the Company as a result of any liquidation of the Company with respect to the Founder Shares held by him, if any. The Insider
hereby further waives, with respect to any Founder Shares and Public Shares held by him, any redemption rights he may have in connection
with the consummation of a Business Combination, including, without limitation, any such rights available in the context of a shareholder
vote to approve such Business Combination or a shareholder vote to approve an amendment to the Charter (i) that would modify the substance
or timing of the Company’s obligation to provide holders of the Public Shares the right to have their shares redeemed in connection
with an initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination
within the time period set forth in the Charter or (ii) with respect to any provision relating to the rights of holders of Public Shares
(although the Insider shall be entitled to liquidation rights with respect to any Public Shares he holds if the Company fails to consummate
a Business Combination within the required time period set forth in the Charter).

 

5. Lock-up; Transfer Restrictions.

 

(a) The
Insider agrees that he shall not Transfer any Founder Shares held, if any (the “Founder Shares Lock-up”), until
the earliest of (A) one year after the completion of an initial Business Combination and (B) the date following the completion of an initial
Business Combination on which the Company completes a liquidation, merger, share exchange or other similar transaction that results in
all of the Company’s shareholders having the right to exchange their Ordinary Shares for cash, securities or other property (the
“Founder Shares Lock-up Period”). Notwithstanding the foregoing, if, subsequent to a Business Combination, the
closing price of the Ordinary Shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, share
consolidations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period commencing at
least 150 days after the Company’s initial Business Combination, the Founder Shares shall be released from the Founder Shares Lock-up.

 

(b) The
Insider agrees that he shall not effectuate any Transfer of Private Placement Warrants or Ordinary Shares underlying such warrants until
30 days after the completion of an initial Business Combination.

 

(c) Notwithstanding
the provisions set forth in paragraphs 5(a) and (b), Transfers of the Founder Shares, Private Placement Warrants and Ordinary
Shares underlying the Private Placement Warrants are permitted (a) to the Company’s officers or directors, any affiliate or family
member of any of the Company’s officers or directors, any members or partners of the Sponsor or their affiliates, any affiliates
of the Sponsor, or any employees of such affiliates; (b) in the case of an individual, by gift to a member of one of the individual’s
immediate family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such
person or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of
the individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers
made in connection with any forward purchase agreement or similar arrangement or in connection with the consummation of a Business Combination
at prices no greater than the price at which the Founder Shares, Private Placement Warrants or Ordinary Shares, as applicable, were originally
purchased; (f) by virtue of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; (g) to the Company
for no value for cancellation in connection with the consummation of the transactions contemplated by the Forward Purchase Agreement or
of an initial Business Combination; (h) in the event of the Company’s liquidation prior to the completion of a Business Combination;
or (i) in the event of completion of a liquidation, merger, share exchange or other similar transaction which results in all of the Company’s
Public Shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent to the completion
of an initial Business Combination; provided, however, that in the case of clauses (a) through (f) these permitted transferees
must enter into a written agreement agreeing to be bound by these transfer restrictions.

 

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6. Remedies.
The Insider hereby agrees and acknowledges that (i) each of the Underwriters and the Company would be irreparably injured in the event
of a breach by the Insider of his obligations, as applicable, under paragraphs 3, 4 and 5, (ii) monetary damages
may not be an adequate remedy for such breach and (iii) the non-breaching party shall be entitled to injunctive relief, in addition to
any other remedy that such party may have in law or in equity, in the event of such breach.

 

7. Termination.
This Letter Agreement shall terminate on the earlier of (i) the expiration of the Founder Shares Lock-up Period and (ii) the
liquidation of the Company.

 

8. Entire
Agreement. This Letter Agreement constitutes the entire agreement and understanding of the parties
hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements, or representations by or among
the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions
contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical
error) as to any particular provision, except by a written instrument executed by all parties hereto.

 

9. Assignment.
No party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and
shall not operate to transfer or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on
the Insider and each of his successors, heirs, personal representatives and assigns and permitted transferees.

 

10. Counterparts.
This Letter Agreement may be executed in any number of original or facsimile counterparts, and each of such counterparts shall for
all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same
instrument.

 

11. Effect of
Headings. The paragraph headings herein are for convenience only and are not part of this Letter Agreement and shall not affect
the interpretation thereof.

 

12. Severability.
This Letter Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not
affect the validity or enforceability of this Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any
such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Letter
Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and
enforceable.

 

13. Governing
Law. This Letter Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the
substantive laws of another jurisdiction. The parties hereto (i) all agree that any action, proceeding, claim or dispute arising out
of, or relating in any way to, this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of
New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall be exclusive, and (ii) waive any
objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

 

14. Notices. Any
notice, consent or request to be given in connection with any of the terms or provisions of this Letter Agreement shall be in
writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand
delivery or facsimile transmission.

 

[Signature Page Follows]

 

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	 	Sincerely,
	 	 
	 	/s/ Robert Ernst
	 	Robert Ernst

 

[Signature Page - Letter Agreement (Ernst)]

 

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	Acknowledged and Agreed:	 
	 	 
	AUTHENTIC EQUITY ACQUISITION CORP.	 
	 	 	 
	By:	/s/ David Hooper	 
	Name: 	David Hooper	 
	Title:	Chairman and Chief Executive Officer	 

 

[Signature Page - Letter Agreement (Ernst)]

 

 

7Exhibit 10.20

 

Forbearance Agreement

 

This Forbearance Agreement (this “Agreement”)
is entered into as of September 3, 2021 by and among JR-HD Enterprises III, LLC, a Delaware limited liability company (“JRD”)
and Electromedical Technologies, Inc., a Delaware corporation (“EMED”). Capitalized terms used in this Agreement without definition
shall have the meanings given to them in the Note (defined below).

 

WHEREAS, EMED sold and issued
to JRD certain Secured Convertible Promissory Notes (“Notes”), as follows:

 

(i) July 21, 2020 in the principal
amount of $107,500, 8% interest with a maturity date of July 21, 2021;

 

(ii) August 4, 2020 in the
principal amount of $215,000, 10% interest, with a maturity date of August 4, 2021.

 

(iii) September 3, 2020 in
the principal amount of $107,500, 8% interest, with a maturity date of September 3, 2021;

 

(iv) November 3, 2020 in the
principal amount of $244,852.94, 8% interest, with a maturity date of November 3, 2021;

 

(v) December 3, 2020 in the
principal amount of $110,000, 8% interest, with a maturity date of December 3, 2021;

 

and together with the Notes and all other documents
entered into in conjunction therewith, the “Transaction Documents.”

 

WHEREAS, EMED defaulted on the July 21, 2020 Note
and the August 4, 2020 Note by failing to pay principal and interest upon the respective maturity dates.

 

WHEREAS, as a result of the
defaults, JRD has the right to, among other things, declare all or any portion of the then outstanding principal amount of the Notes,
together with all accrued and unpaid interest thereon, due, and payable, and the Notes shall thereupon become, immediately due and payable
in cash and (ii) JRD shall have the right to pursue any other remedies that it may have under applicable Law.

 

WHEREAS, No new or additional
consideration is being provided in connection with this Agreement other than the modification of terms as provided herein.

 

WHEREAS, JRD has agreed, subject
to the terms, conditions and understandings expressed in this Agreement, to: (i) refrain and forbear temporarily from exercising and enforcing
remedies against EMED for the Defaults as provided in this Agreement; and, (ii) amending the Notes to extend their respective maturity
dates consistent with the terms and conditions of this Agreement.

 

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NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1. Recitals and Definitions. Each of the
parties hereto acknowledges and agrees that the recitals set forth above in this Agreement are true and accurate, are contractual in nature,
and are hereby incorporated into and made a part of this Agreement.

 

2. Forbearance. The Notes are hereby amended
pursuant to Sections 5(f) of the respective Notes, to change the maturity dates of each Note to a respective date six (6) months from
each Note’s original maturity date (the "Forbearance"). For the avoidance of doubt, the amended maturity date schedule
is:

 

July 21, 2020 Note matures on January 21, 2022;

August 4, 2020 Note matures on February 4, 2022;

September 3, 2020 Note matures on March 3, 2022;

November 3, 2020 Note matures on May 3, 2022;
and,

December 3, 2020 Note matures on June 3, 2022.

 

The Notes are further amended to delete the prepayment
cost provision in Section 2(b) of the Notes, allowing EMED to make a prepayment of principal and interest due under the Notes without
being subject to a 20% prepayment cost being added to the amount of the Principal Amount and accrued and unpaid interest so prepaid at
such time.

 

3. EMED Payment. As consideration for JRD’s
Forbearance, EMED agrees to make cash payments to JRD of twelve thousand, five hundred dollars ($12,500.00) each on the following schedule:

 

(i) Upon the execution of
this Agreement;

(ii) September 30, 2021;

(iii) October 31, 2021;

(iv) November 30, 2021; and,

(v) December 31, 2021; and,

(vi) January 15, 2021

 

EMED’s payments shall be credited first
against interest due on the Notes in Default, and then to the payment of Principal on the July 21, 2020 Note. In consideration of EMED’s
timely payments, JRD agrees to the Forbearance schedule in Section 2, during which time JRD will not take any action to collect on the
Notes.

 

In the event that EMED does not make any of the
scheduled payments, any unpaid amounts shall be added to the dollar value of shares issuable under 3(a) below.

 

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a. As additional consideration
for JRD’s Forbearance and the amendment to the Notes, on January 15, 2022, EMED agrees to issue to JRD that number of shares of
EMED common stock equal to one hundred thousand dollars ($100,000), discounted by 25%, based on the previous 15-day average closing price
of EMED’s common stock reported on OTC Markets. The common stock will be unregistered and restricted and will carry with it the
customary Rule 144 restrictive legend. The common stock cannot be sold in the public markets unless EMED either registers the common stock
or determines that an exemption from registration exists. For purposes of Rule 144(d), JRD’s payment of consideration for the stock
issuance shall be the effective date hereof.

 

4. Ratification of the Notes. The Notes,
as amended by this Agreement, shall be and remain in full force and effect in accordance with their respective terms, and are hereby ratified
and confirmed in all respects. EMED acknowledges and agrees that the Outstanding Principal Balances of the Notes as of the date hereof
is $784,852.94. EMED acknowledges that it is unconditionally obligated to pay the Outstanding Balance and all accrued interest and represents
that such obligation is not subject to any defenses, rights of offset or counterclaims. No Forbearance or waiver other than as expressly
set forth herein may be implied by this Agreement. Except as expressly set forth herein, the execution, delivery, and performance of this
Agreement shall not operate as a waiver of, or as an amendment to, any right, power, or remedy of JRD under the Notes or the Transaction
Documents, as in effect prior to the date hereof.

 

5. Failure to Comply. EMED understands
that the Forbearance shall terminate immediately upon any Event of Default after the respective maturity dates in Section 2 above, and
that in such case, JRD may seek all recourse available to it under the terms of the Notes, this Agreement, any other Transaction Document,
or applicable law. For the avoidance of any doubt, the termination of the Forbearance pursuant to this Section shall not terminate, limit,
or modify any other provision of this Agreement.

 

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6. Representations, Warranties and Agreements.
In order to induce JRD to enter into this Agreement, EMED, for itself, and for its affiliates, successors and assigns, hereby acknowledges,
represents, warrants, and agrees as follows: (a) EMED has full power and authority to enter into this Agreement and to incur and perform
all obligations and covenants contained herein, all of which have been duly authorized by all proper and necessary action. No consent,
approval, filing or registration with or notice to any governmental authority is required as a condition to the validity of this Agreement
or the performance of any of the obligations of EMED hereunder. (b) Any Event of Default which may have occurred under the Notes has not
been, is not hereby, and shall not be deemed to be waived by JRD, expressly, impliedly, through course of conduct or otherwise except
upon full satisfaction of EMED's obligations under this Agreement. The agreement of JRD to refrain and forbear from exercising any rights
and remedies by reason of any existing default or any future default shall not constitute a waiver of consent to, or condoning of, any
other future default. For the avoidance of any doubt, the Forbearance described herein only applies to the Defaults, and shall not constitute
a waiver or forbearance of any other rights or remedies available to JRD with respect to any other Events of Default under the Notes or
other breach of the Transaction Documents or this Agreement by EMED. (c) All understandings, representations, warranties, and recitals
contained or expressed in this Agreement are true, accurate, complete, and correct in all respects; and no such understanding, representation,
warranty, or recital fails or omits to state or otherwise disclose any material fact or information necessary to prevent such understanding,
representation, warranty, or recital from being misleading. EMED acknowledges and agrees that JRD has been induced in part to enter into
this Agreement based upon JRD's justifiable reliance on the truth, accuracy, and completeness of all understandings, representations,
warranties, and recitals contained in this Agreement. There is no fact known to EMED or which should be known to EMED which EMED has not
disclosed to JRD on or prior to the date hereof which would or could materially and adversely affect the understandings of JRD expressed
in this Agreement or any representation, warranty, or recital contained in this Agreement. (d) Except as expressly set forth in this Agreement,
EMED acknowledges and agrees that neither the execution and delivery of this Agreement nor any of the terms, provisions, covenants, or
agreements contained in this Agreement shall in any manner release, impair, lessen, modify, waive, or otherwise affect the liability and
obligations of EMED under the terms of the Notes or any of the other Transaction Documents. (e) EMED has no defenses, affirmative or otherwise,
rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action of any kind or nature whatsoever against JRD,
directly or indirectly, arising out of, based upon, or in any manner connected with, the transactions contemplated hereby, whether known
or unknown, which occurred, existed, was taken, permitted, or begun prior to the execution of this Agreement and occurred, existed, was
taken, permitted or begun in accordance with, pursuant to, or by virtue of any of the terms or conditions of the Transaction Documents.
To the extent any such defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes
of action exist or existed, such defenses, rights, claims, counterclaims, actions and causes of action are hereby waived, discharged,
and released. EMED hereby acknowledges and agrees that the execution of this Agreement by JRD shall not constitute an acknowledgment of
or admission by JRD of the existence of any claims or of liability for any matter or precedent upon which any claim or liability may be
asserted. (f) EMED hereby acknowledges that it has freely and voluntarily entered into this Agreement after an adequate opportunity and
sufficient period of time to review, analyze, and discuss (i) all terms and conditions of this Agreement, (ii) any and all other documents
executed and delivered in connection with the transactions contemplated by this Agreement, and (iii) all factual and legal matters relevant
to this Agreement and/or any and all such other documents, with counsel freely and independently selected by EMED (or had the opportunity
to be represented by counsel). The Parties further acknowledge and agree that each has actively and with full understanding participated
in the negotiation of this Agreement and all other documents executed and delivered in connection with this Agreement after consultation
and review with their respective counsel (or had the opportunity to be represented by counsel), that all of the terms and conditions of
this Agreement and the other documents executed and delivered in connection with this Agreement have been negotiated at arm's length,
and that this Agreement and all such other documents have been negotiated, prepared, and executed without fraud, duress, undue influence,
or coercion of any kind or nature whatsoever having been exerted by or imposed upon any party by any other party. No provision of this
Agreement or such other documents shall be construed against or interpreted to the disadvantage of any party by any court or other governmental
or judicial authority by reason of such party having or being deemed to have structured, dictated, or drafted such provision. (g) There
are no proceedings or investigations pending or threatened before any court or arbitrator or before or by, any governmental, administrative,
or judicial authority or agency, or arbitrator, against EMED. (h) There is no statute, regulation, rule, order or judgment and no provision
of any mortgage, indenture, contract, or other agreement binding on EMED, which would prohibit or cause a default under or in any way
prevent the execution, delivery, performance, compliance, or observance of any of the terms and conditions of this Agreement and/or any
of the other documents executed and delivered in connection with this Agreement. (i) EMED is solvent as of the date of this Agreement,
and none of the terms or provisions of this Agreement shall have the effect of rendering EMED insolvent. The terms and provisions of this
Agreement and all other instruments and agreements entered into in connection herewith are being given for full and fair consideration
and exchange of value.

 

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7. Most Favored Nation Status. Effective
after January 15, 2022, if EMED engages in any financing transactions with a third-party investor, EMED will provide JRD with written
notice thereof promptly, but in no event less than 10 days prior to closing any financing transactions. Included with the Notice shall
be a copy of all documentation relating to such financing transaction and shall include, upon written request of JRD, any additional information
related to such subsequent investment as may be reasonably requested by JRD. In the event the subsequent investment is for consideration
per share less than the fixed price of the Notes, i.e., $0.50 per share, EMED agrees to amend and restate the Notes to reduce the conversion
price of the Notes to an amount equal to the new issuance price of the subsequent investment. Notwithstanding the foregoing, this Section
7 shall not apply in respect of (i) an Exempt Issuance, or (ii) an underwritten public offering of Common Stock. “Exempt Issuance”
means the issuance of: (a) shares of Common Stock or options to employees, officers, consultants, advisors or directors of EMED pursuant
to any stock or option plan duly adopted for such purpose by a majority of the members of the Board of Directors or a majority of the
members of a committee of directors established for such purpose, and, (b) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the directors of EMED, provided that any such issuance shall only be to a Person which is, itself or through
its subsidiaries, an operating company in a business synergistic with the business of EMED and in which EMED receives benefits in addition
to the investment of funds.

 

8. Headings. The headings contained in
this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement.

 

9. Arbitration. By its execution of this
Agreement, each party agrees to be bound by the Arbitration Provisions (as defined in Section 6.09 of the Securities Purchase Agreements)
set forth as an exhibit to each Securities Purchase [or Note Purchase] Agreements and the parties agree to submit all Claims arising under
this Agreement or any Transaction Document or other agreement between the parties and their affiliates to binding arbitration pursuant
to the Arbitration Provisions.

 

10. Governing Law; Venue. This Agreement,
and all matters based upon, arising out of or relating in any way to the Notes or the Transaction Documents, including all disputes, claims
or causes of action arising out of or relating to the this Agreement, the Notes or the Transaction Documents as well as the interpretation,
construction, performance and enforcement of this Agreement, the Notes and Transaction Documents, shall be governed by the laws of the
United States and the State of Delaware, without regard to any jurisdiction’s conflict-of-laws principles. Subject to Section 6.09,
of the Securities Purchase [or Note Purchase] Agreements, each party consents, pursuant to Section 6.07 of the respective Securities Purchase
[or Note Purchase] Agreements, to the jurisdiction of the State and Federal Courts in the State of New York, and each irrevocably submits
to the jurisdiction of said courts and waive any objection to the convenience of such jurisdiction or venue.

 

11. Counterparts. This Agreement may be
executed in any number of counterparts with the same effect as if all signing parties had signed the same document. All counterparts shall
be construed together and constitute the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile
transmission or other electronic transmission (including email) shall constitute effective execution and delivery of this Agreement as
to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile
transmission or other electronic transmission (including email) shall be deemed to be their original signatures for all purposes.

 

    Page 5 of 8 

     

    

 

12. Attorneys' Fees. In the event of any
arbitration or action at law or in equity to enforce or interpret the terms of this Agreement, the parties agree that the party who is
awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of
the full amount of the attorneys' fees and expenses paid by such prevailing party in connection with the arbitration, litigation and/or
dispute without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing
herein shall restrict or impair an arbitrator's or a court's power to award fees and expenses for frivolous or bad faith pleading.

 

13. No Reliance. EMED acknowledges and
agrees that neither JRD nor any of its officers, directors, members, managers, equity holders, representatives or agents has made any
representations or warranties to EMED or any of its agents, representatives, officers, directors, or employees except as expressly set
forth in this Agreement and the Transaction Documents and, in making its decision to enter into the transactions contemplated by this
Agreement, EMED is not relying on any representation, warranty, covenant or promise of JRD or its officers, directors, members, managers,
equity holders, agents or representatives other than as set forth in this Agreement.

 

14. Severability. If any part of this Agreement
is construed to be in violation of any law, such part shall be modified to achieve the objective of the parties to the fullest extent
permitted and the balance of this Agreement shall remain in full force and effect.

 

15. Entire Agreement. This Agreement, together
with the Transaction Documents, and all other documents referred to herein, supersedes all other prior oral or written agreements between
EMED, JRD, its affiliates and persons acting on its behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither JRD nor EMED makes any representation, warranty, covenant or undertaking with respect
to such matters.

 

16. Amendments. This Agreement may be amended,
modified, or supplemented only by written agreement of the parties. No provision of this Agreement may be waived except in writing signed
by the party against whom such waiver is sought to be enforced.

 

17. Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. This Agreement or any of the
severable rights and obligations inuring to the benefit of or to be performed by JRD hereunder may be assigned by JRD to a third party,
including its financing sources, in whole or in part. EMED may not assign this Agreement or any of its obligations herein without the
prior written consent of JRD.

 

    Page 6 of 8 

     

    

 

18. Continuing Enforceability; Conflict Between
Documents. Except as otherwise modified by this Agreement, each Note and each of the other Transaction Documents shall remain in full
force and effect, enforceable in accordance with all of its original terms and provisions. This Agreement shall not be effective or binding
unless and until it is fully executed and delivered by JRD and EMED. If there is any conflict between the terms of this Agreement, on
the one hand, and the Note or any other Transaction Document, on the other hand, the terms of this Agreement shall prevail.

 

19. Time of Essence. Time is of the essence
with respect to each and every provision of this Agreement.

 

20. Notices. Unless otherwise specifically
provided for herein, all notices, demands or requests required or permitted under this Agreement to be given to EMED or JRD shall be given
as set forth in the "Notices" section of the Purchase Agreement.

 

21. Further Assurances. Each party shall
do and perform or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements,
certificates, instruments, and documents, as the other party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

22. Notices. Notices. Any notice or other
communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent
by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

if to EMED, to:

 

Electromedical Technologies, Inc.

Attn: Matthew Wolfson

16561 N. 92nd Street, Suite 101

Scottsdale, AZ 85260

Email: ceo@electromedtech.com

 

If to JRD, to:

 

JR-HD Enterprises III, LLC

Attn: Jeff Ramson

150 East 58th Street, 20th Floor

New York, NY 10155

Email: Jramson@pcgadvisory.com

 

With a copy, which shall not constitute notice,
to:

 

Gerald A. Adler

Adler Silverberg PLLC

48 Wall Street, Suite 1100

New York, NY 10005

 

    Page 7 of 8 

     

    

 

Any Party may change its address for notices hereunder
upon notice to each other Party in the manner for giving notices hereunder. Any notice hereunder shall be deemed to have been given (i)
upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted
by email with return receipt requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail.

 

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

 

	 	
    EMED:

     

    ELECTROMEDICAL TECHNOLOGIES, INC.

     

    By: ____________________________

    Name: Matthew Wolfson

    Title: Principal Executive Officer, Sole Director

     

     

    JR-HD ENTERPRISES III, LLC:

     

    By: ____________________________

    Name: Jeff Ramson

    Title: Manager

 

 

    Page 8 of 8

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