Document:

nviv_Ex10_2

		
			Exhibit 10.2
		

		
			INVIVO THERAPEUTICS HOLDINGS CORP.
		

		
			NONSTATUTORY STOCK OPTION AGREEMENT
		

		
			InVivo Therapeutics Holdings Corp. (the “Company”) hereby grants the following stock option.  The terms and conditions attached hereto are also a part hereof.
		

		
			Notice of Grant
		

			
					
						 

					
					
						 

				
	
					
						Name of optionee (the “Participant”):

					
					
						Richard Christopher

				
	
					
						Date of this option grant:

					
					
						January 14, 2019

				
	
					
						Number of shares of the Company’s Common Stock subject to this option (“Shares”):

					
					
						90,000

				
	
					
						Option exercise price per Share:

					
					
						$1.53

				
	
					
						Vesting Start Date:

					
					
						January 14, 2019

				
	
					
						Final Exercise Date:

					
					
						January 13, 2029

				

		
			 
		

		
			Vesting Schedule:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						One Year from Vesting Start Date:

					
					
						One-third of the Shares

				
	
					
						Two Years from Vesting Start Date:

					
					
						An additional one-third of the Shares

				
	
					
						Three Years from Vesting Start Date:

					
					
						Final one-third of the Shares

				
	
					
						All vesting is dependent on the Participant remaining an Eligible Participant, as provided herein.

				

		
			 
		

		
			This option satisfies in full all commitments that the Company has to the Participant with respect to the issuance of stock, stock options or other equity securities.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						INVIVO THERAPEUTICS HOLDINGS CORP.

				
	
					
						/s/ Richard Christopher

					
					
						 

					
					
						 

				
	
					
						Signature of Participant

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						38 Sunset Rock Road

					
					
						 

					
					
						By:

					
					
						/s/ Richard Toselli

				
	
					
						Street Address

					
					
						 

					
					
						 

					
					
						Name of Officer:  Richard Toselli

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:  CEO

				
	
					
						Andover, MA, 01810

					
					
						 

					
					
						 

				
	
					
						City/State/Zip Code

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

 

		

		
			INVIVO THERAPEUTICS HOLDINGS CORP.
		

		
			Nonstatutory Stock Option Agreement
		

		
			Incorporated Terms and Conditions
		

		
			1.         Grant of Option.
		

		
			This agreement evidences the grant by the Company, on the grant date (the “Grant Date”) set forth in the Notice of Grant that forms part of this agreement (the “Notice of Grant”) to the Participant of an option to purchase, in whole or in part, on the terms provided herein, the number of Shares set forth in the Notice of Grant of common stock, $0.00001 par value per share, of the Company (“Common Stock”) at the exercise price per Share set forth in the Notice of Grant.  Unless earlier terminated, this option shall expire at 5:00 p.m., Eastern time, on the Final Exercise Date set forth in the Notice of Grant (the “Final Exercise Date”).
		

		
			The option evidence by this agreement was granted to the Participant pursuant to the inducement grant exception under NASDAQ Stock Market Rule 5635(c)(4), and not pursuant to the Company’s 2015  Equity Incentive Plan (the “Plan”) or any other equity incentive plan of the Company, as an inducement that is material to the Participant’s employment with the Company.
		

		
			It is intended that the option evidenced by this agreement shall not be an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”).  Except as otherwise indicated by the context, the term “Participant”, as used in this option, shall be deemed to include any person who acquires the right to exercise this option validly under its terms.
		

		
			2.         Vesting Schedule.
		

		
			This option will become exercisable (“vest”) in accordance with the vesting schedule set forth on the cover page of this agreement (the “Vesting Schedule”).  Notwithstanding the foregoing, to the extent that the Participant is a party to an employment agreement or other agreement with the Company that provides vesting terms that differ from the Vesting Schedule, the terms set forth in such employment agreement or other agreement shall prevail.
		

		
			The right of exercise shall be cumulative so that to the extent the option is not exercised in any period to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this option under Section 3 hereof.
		

		
			3.         Exercise of Option.
		

		
			(a)        Each election to exercise this option shall be in writing, in the form of the Stock Option Exercise Notice attached as Exhibit A, signed by the Participant, and received by the Company at its principal office, accompanied by this agreement, and payment as follows:
		

		
			(1)        in cash or by check, payable to the order of the Company;
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			(2)        except as may otherwise be approved by the Board of Directors of the Company (the “Board”), in its sole discretion, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding;
		

		
			(3)        to the extent approved by the Board, in its sole discretion, by delivery (either by actual delivery or attestation) of shares of Common Stock owned by the Participant valued at their fair market value per share of Common Stock as determined by (or in a manner approved by) the Board, provided (i) such method of payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be established by the Board in its discretion and (iii) such Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements;
		

		
			(4)        to the extent approved by the Board in its sole discretion, by delivery of a notice of “net exercise” to the Company, as a result of which the Participant would receive (i) the number of shares underlying the portion of this option being exercised, less (ii) such number of shares as is equal to (A) the aggregate exercise price for the portion of this option being exercised divided by (B) the fair market value (determined by (or in a manner approved by) the Board) on the date of exercise;
		

		
			(5)        to the extent permitted by applicable law and approved by the Board, in its sole discretion, by payment of such other lawful consideration as the Board may determine; or
		

		
			(6)        by any combination of the above permitted forms of payment.
		

		
			The Participant may purchase less than the number of shares covered hereby, provided that no partial exercise of this option may be for any fractional share.
		

		
			(b)        Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, this option may not be exercised unless the Participant, at the time he exercises this option, is, and has been at all times since the Grant Date, an employee, director or officer of, or consultant or advisor to, the Company or any other entity the employees, officers, directors, consultants, or advisors of which are eligible to receive option grants under the Plan (an “Eligible Participant”).
		

		
			(c)        Termination of Relationship with the Company.  If the Participant ceases to be an Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the right to exercise this option shall terminate three months after such cessation (but in no event after the Final Exercise Date), provided that this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this option shall terminate immediately upon such violation.
		

		
			(d)        Exercise Period Upon Death or Disability.  If the Participant dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he is an Eligible Participant and the Company has not terminated such relationship for “cause” as specified in paragraph (e) below, this option shall be exercisable, within the period of 180 days following the date of death or disability of the Participant, by the Participant (or in the case of death by an authorized transferee), provided that this option shall be exercisable only to the extent that this option was exercisable by the Participant on the date of his or her death or disability, and further provided that this option shall not be exercisable after the Final Exercise Date.
		

		
			(e)        Termination for Cause.  If, prior to the Final Exercise Date, the Participant’s employment or other relationship with the Company is terminated by the Company for Cause (as defined in the employment agreement, dated as of December 24, 2018, between the Participant and the Company, or any successor agreement thereto (the “Employment Agreement”)), the right to exercise this option shall terminate immediately upon the effective date of such termination.
		

		
			4.         Withholding.  No Shares will be issued pursuant to the exercise of this option unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this option.  The Participant must satisfy all applicable federal, state, and local or other income and employment tax withholding obligations before the Company will deliver stock certificates or otherwise recognize ownership of Common Stock under this option.  The Company may decide to satisfy the withholding obligations through additional withholding on salary or wages.  If the Company elects not to or cannot withhold from other compensation, the Participant must pay the Company the full amount, if any, required for withholding or have a broker tender to the Company cash equal to the withholding obligations. Payment of withholding obligations is due before the Company will issue any shares on exercise of this option or at the same time as payment of the exercise price, unless the Company determines otherwise. If approved by the Board in its sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery (either by actual delivery or attestation) of shares of Common Stock underlying this option valued at their fair market value (determined by (or in a manner approved by) the Board); provided, however, except as otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income), except that, to the extent that the Company is able to retain shares of Common Stock having a fair market value (determined by (or in a manner approved by) the Company) that exceeds the statutory minimum applicable withholding tax without financial accounting implications or the Company is withholding in a jurisdiction that does not have a statutory minimum withholding tax, the Company may retain such number of shares of Common Stock (up to the number of shares having a fair market value equal to the maximum individual statutory rate of tax (determined by (or in a manner approved by) the Company)) as the Company shall determine in its sole discretion to satisfy the tax liability associated with this
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			option. Shares used to satisfy tax withholding requirements cannot be subject to any forfeiture, unfulfilled vesting or other similar requirements.
		

		
			5.         Reporting.
		

		
			The Participant acknowledges and agrees to comply with all necessary reporting obligations in the Participant’s jurisdiction in relation to all taxes, social security contributions and any other similar charges which arise in relation to this option.
		

		
			 
		

		
			6.         Transfer Restrictions.
		

		
			This option may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, this option shall be exercisable only by the Participant.
		

		
			7.         Adjustments for Changes in Common Stock and Certain Other Events.
		

		
			(a)          Changes in Capitalization.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders of Common Stock other than an ordinary cash dividend, the number and class of securities and exercise price per share of this option shall be equitably adjusted by the Company in the manner determined by the Board.  Without limiting the generality of the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to this option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then the Participant, if he exercises this option between the record date and the distribution date for such stock dividend, shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon exercise of this option, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.
		

		
			(b)        Reorganization Events.
		

		
			(1)        A “Reorganization Event” shall mean:  (a) any merger or consolidation of the Company with or into another entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (b) any transfer or disposition of all of the Common Stock of the Company for cash, securities or other property pursuant to a share exchange or other transaction or (c) any liquidation or dissolution of the Company.
		

		
			(2)        In connection with a Reorganization Event, the Board may take any one or more of the following actions with respect to this option (or any portion thereof) on such terms as the Board determines: (i) provide that this option shall be assumed, or substantially equivalent option shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), (ii) upon written notice to the Participant, provide that the unvested and/ or unexercised portion of this option will terminate immediately prior to the consummation of such Reorganization
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			Event unless exercised by the Participant within a specified period following the date of such notice, (iii) provide that this option shall become exercisable, realizable, or deliverable, or restrictions applicable to this option shall lapse, in whole or in part prior to or upon such Reorganization Event, (iv) in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for a cash payment to the Participant with respect to this option equal to (A) the number of shares of Common Stock subject to the vested portion of this option (after giving effect to any acceleration of vesting that occurs upon or immediately prior to such Reorganization Event) multiplied by (B) the excess, if any, of (I) the Acquisition Price over (II) the exercise price of this option and any applicable tax withholdings, in exchange for the termination of this option, (v) provide that, in connection with a liquidation or dissolution of the Company, this option shall convert into the right to receive liquidation proceeds (net of the exercise price thereof and any applicable tax withholdings) and (vi) any combination of the foregoing.
		

		
			(3)        For purposes of clause 7(b)(2)(i) above, this option shall be considered assumed if, following consummation of the Reorganization Event, this option confers the right to purchase, for each share of Common Stock subject to this option immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of this option to consist solely of such number of shares of common stock of the acquiring or succeeding corporation (or an affiliate thereof) that the Board determined to be equivalent in value (as of the date of such determination or another date specified by the Board) to the per share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.
		

		
			(c)        Change of Control Events.
		

		
			(1)        Definition.  “Change in Control” shall mean the occurrence of any of the following:
		

		
			(i)         The acquisition by any Person (as defined below) of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of either (A) the value of then outstanding equity securities of the Company (the “Outstanding Company Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”) (the foregoing Beneficial Ownership hereinafter being referred to as a “Controlling Interest”); provided, however, that for purposes of this Section 7(c), the following acquisitions shall not constitute or result in a Change in Control: (1) any acquisition by the Company; (2) any acquisition by
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			any Person that as of the Grant Date owns Beneficial Ownership of a Controlling Interest; (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Related Entity; or (4) any acquisition by any entity pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) below; or
		

		
			 
		

		
			(ii)        During any period of two consecutive years (not including any period prior to the Grant Date) individuals who constitute the Board on the Grant Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Grant Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or
		

		
			 
		

		
			(iii)      Consummation of (A) a reorganization, merger, statutory share exchange or consolidation or similar transaction involving (1) the Company or (2) any of its Subsidiaries, but in the case of this clause (2) only if equity securities of the Company are issued or issuable in connection with the transaction (each of the events referred to in this clause (A) being hereinafter referred to as a “Business Reorganization”), or (B) a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or equity of another entity by the Company or any of its Subsidiaries (each an “Asset Sale”), in each case, unless, following such Business Reorganization or Asset Sale, (1) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the Outstanding Company Stock and Outstanding Company Voting Securities immediately prior to such Business Reorganization or Asset Sale beneficially own, directly or indirectly, more than 50% of the value of the then outstanding equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of members of the board of directors (or comparable governing body of an entity that does not have such a board), as the case may be, of the entity resulting from such Business Reorganization or Asset Sale (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) (the “Continuing Entity”) in substantially the same proportions as their ownership, immediately prior to such Business Reorganization or Asset Sale, of the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may be (excluding any outstanding equity or voting securities of the Continuing Entity that such Beneficial Owners hold immediately following the consummation of the Business Reorganization or Asset Sale as a result of their ownership, prior to such consummation, of equity or voting securities of any
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			company or other entity involved in or forming part of such Business Reorganization or Asset Sale other than the Company), (2) no Person (excluding any employee benefit plan (or related trust) of the Company or any Continuing Entity or any entity controlled by the Continuing Corporation or any Person that as of the Grant Date owns Beneficial Ownership of a Controlling Interest) beneficially owns, directly or indirectly, 50% or more of the value of the then outstanding equity securities of the Continuing Entity or the combined voting power of the then outstanding voting securities of the Continuing Entity except to the extent that such ownership existed prior to the Business Reorganization or Asset Sale and (3) at least a majority of the members of the Board of Directors or other governing body of the Continuing Entity were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Reorganization or Asset Sale.
		

		
			 
		

		
			For purposes hereof:
		

		
			 
		

		
			(i) “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include a “group” as defined in Section 13(d) thereof.
		

		
			 
		

		
			(ii)   “Related Entity” means any Subsidiary, and any business, corporation, partnership, limited liability company or other entity designated by the Board, in which the Company or a Subsidiary holds a substantial ownership interest, directly or indirectly.
		

		
			 
		

		
			(iii)  “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.
		

		
			 
		

		
			(2)        Effect of Change in Control.  Notwithstanding the provisions of Section 7(b), this option shall be immediately exercisable in full if, on or prior to the first anniversary of the date of the consummation of the Change in Control, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good Reason (as defined in the Employment Agreement) by the Participant or is terminated without Cause (as defined in the Employment Agreement) by the Company or the acquiring or succeeding corporation.
		

		
			8.         Miscellaneous.
		

		
			(a)        No Right to Employment or Other Status.  The grant of this option shall not be construed as giving the Participant the right to continued employment or any other relationship with the Company.  The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with the Participant free from any liability or claim hereunder, except as otherwise expressly provided herein or provided for in the Employment Agreement.
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			(b)        No Rights as Stockholder.  Subject to the provisions of this option, the Participant shall not have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to this option until becoming the record holder of such shares.
		

		
			(c)        Amendment.  The Board may amend, modify or terminate this agreement, including but not limited to, substituting another option of the same or a different type and changing the date of exercise or realization.  Notwithstanding the foregoing, the Participant’s consent to such action shall be required unless (i) the Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant, or (ii) the change is permitted under Section 7 and the Employment Agreement.
		

		
			(d)        Acceleration.  The Board may at any time provide that this option shall become immediately exercisable in whole or in part, free of some or all restrictions or conditions, or otherwise realizable in whole or in part, as the case may be.
		

		
			(e)        Conditions on Delivery of Stock.  The Company will not be obligated to deliver any shares of Common Stock pursuant to this agreement until (i) all conditions of this agreement have been met to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and regulations and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations.
		

		
			(f)         Administration by Board.  The Board will administer this agreement and may construe and interpret the terms hereof.  Subject to the terms and provisions of the Employment Agreement, the Board may correct any defect, supply any omission or reconcile any inconsistency in this agreement in the manner and to the extent it shall deem expedient to carry the Agreement into effect and it shall be the sole and final judge of such expediency.  No director or person acting pursuant to the authority delegated by the Board shall be liable for any action or determination relating to or under this agreement made in good faith.
		

		
			(g)         Appointment of Committees.  To the extent permitted by applicable law, the Board may delegate any or all of its powers hereunder to one or more committees or subcommittees of the Board (a “Committee”).  All references herein to the “Board” shall mean the Board or a Committee to the extent that the Board’s powers or authority hereunder have been delegated to such Committee.
		

		
			(h)         Governing Law.  This agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than the State of Nevada.
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			EXHIBIT A
		

		
			EXERCISE NOTICE
		

		
			InVivo Therapeutics Holdings Corp. 
One Kendall Square, Suite B14402
		

		
			Cambridge, Massachusetts, 02139
Attention:  Chief Executive Officer
		

		
			1.         Exercise of Option.  Effective as of today, ____________________, 20__, the undersigned (“Grantee”) hereby elects to exercise Grantee’s option to purchase _________ shares of the Common Stock (the “Shares”) of InVivo Therapeutics Holdings Corp., (the “Company”) under and pursuant to the Nonstatutory Stock Option Agreement dated January 14, 2019 (the “Award Agreement”).
		

		
			2.         Delivery of Payment.
		

		
			(a)        [LEAVE BLANK IF USING SECTION 2(b) BELOW]  The Grantee herewith delivers to the Company the full purchase price of the Shares, as set forth in the Award Agreement.  ____ (Initial here if the undersigned elects this alternative),
		

		
			(b)        [LEAVE BLANK IF USING SECTION 2(a) ABOVE]  In lieu of exercising Grantee’s Option for check, the undersigned hereby elects to effect the net issuance provision of Section 2(ii)(b) of the Award Agreement which accompanies this Notice of Exercise and receive ______ shares of Company Common Stock pursuant to the terms of the Award Agreement.  ___ (Initial here if the undersigned elects this alternative).
		

		
			3.         Representations of Grantee.  Grantee acknowledges that Grantee has received, read and understood the Award Agreement and agrees to abide by and be bound by their terms and conditions.
		

		
			4.         Rights as Stockholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option.  The Shares shall be issued to the Grantee as soon as practicable after the Option is exercised.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance.
		

		
			5.         Tax Consultation.  Grantee understands that Grantee may suffer adverse tax consequences as a result of Grantee’s purchase or disposition of the Shares.  Grantee represents that Grantee has consulted with any tax consultants Grantee deems advisable in connection with the purchase or disposition of the Shares and that Grantee is not relying on the Company for any tax advice.
		

		
			6.         Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			herein set forth, this Agreement shall be binding upon Grantee and his or her heirs, executors, successors and assigns.
		

		
			7.         Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by Grantee or by the Company forthwith to the Board which shall review such dispute at its next properly called meeting.  The resolution of such a dispute by the Board shall be final and binding on all parties.
		

		
			8.         Governing Law; Severability.  This Agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Nevada.
		

		
			9.         Entire Agreement.  The Award Agreement is incorporated herein by reference.  This Exercise Notice and the Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and Grantee.
		

		
			[Signatures appear on next page]
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Submitted by:

					
					
						    

					
					
						Accepted by:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						GRANTEE

					
					
						 

					
					
						INVIVO THERAPEUTICS HOLDINGS CORP.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						              

				
	
					
						Richard Christopher

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Address:

					
					
						 

					
					
						Date Received:ewlu_ex101.htm

EXHIBIT 10.1
  
 Strategic Cooperation Agreement
  
 Party A: Alitaitai Industrial Holding Group
 Address: Floor 6-7 Huajingge, No 231, Haitian Rd, Huli Qu, Xiamen, China
 Floor 2 Zhangxiong Yishu Guan, No 12, Huguang Dasha, Siming Qu, 
 Xiamen, China 
 MT: 137-7995-7668 159-0155-6698
 E-mail: 119854286qq@.com
  
 Party B: Merion, Inc.
 Address: 9550 Flair Dr #302. El Monte,CA91731.USA.
 Tel: 001-626-448-3737 Fax:001-626-448-2163
 E-mail: info@merionus.com 
  
 Party A "Alitaitai Industrial Holdings Group" is the financial and commercial group company which is a joint venture of five companies in Hongkong, including Hong Kong Ali Taitai Industrial Group Co., Ltd., Taiwan China Ali Taitai Intelligent Technology Co., Ltd., Patriotic No.1 Peace Fund, Ankang Ali Taitai Intelligent Technology Co., Ltd. and Fujian Ali Taitai Network Technology Co., Ltd. It has a legal direct sales license in Taiwan. And it is a comprehensive platform for engaging in major health + artificial intelligence + big data + education + finance + public welfare. 
  
 Party B Merion, Inc. is a public biotech company listed on OTC Markets (ticker symbol is EWLU). Merion Inc. has product patents, production technologies, serial products, research and development capabilities and international trade in sports nutrition and health food. Its products meet the requirements of the US FDA for health foods and test analysis reports, and they have resource advantages including of applying for FDA free sales certificates and other certificates. Based on the consensus of the global Internet new retail sharing economy, blockchain technology application and capital operation business philosophy, the two parties decided to implement the integrated development of the platform resources in according to the principle of “resource sharing, complementary advantages, mutual benefit and mutual development”. 
  
 The two parties reached the following strategic agreement on the specific aspects of cooperation:
  
 First, Cooperation content:
  
 (a) Collaborative content currently in progress:
  
 1. Within the time limit agreed by both parties (Party B officially applies for the transfer of the New York Stock Exchange or Nasdaq trading market), Party A will expand the market of the high-tech small molecule functional products of Party B through the sales channels of Party A’s sales platform. Party B will reward Party A the common stocks ($2 US dollars per share) which equals 10% of the received sales by Party B as the sales bonus for all the sales by Party A. For example, if Party A realized the USD 3 million sale of Party B’s products and complete all the payment, Party B agrees to provide Party A 150 thousand shares of Party B’s common stocks as bonus. The sales cannot be included in the bonus if Party B does not receive the fully payment but deduct from the actual bonus amount. For example, Party A sells USD 3 million products of Party B, but Party B only receive the payment of USD $2.9 million from Party A, and Party A does not pay Party B 100 thousand within 6 weeks, then the reward shares of Party A should be equals USD$300,000 minus USD100 thousand, which is 145 thousand shares of Party B’s common stock.
   	 
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 2. In order to encourage Party A’s marketing, Party B agrees to reward 60,000 shares of Party B’s common stock to Party A as a reward stock for product sales on the premise that Party A make a USD $300 thousand prepaid products. Party A can also purchase additional shares of Party B. The purchase method and final price of the specific shares shall be negotiated by both parties and sign the stock purchase agreement.
  
 3. Party A obtains Party B’s reward stock in its own account, and no arrangement for directly or indirectly distributing or allocating Party B’s shares with any other person (The statement and guarantee do not restrict Party A from legally selling shares in accordance with applicable federal and state securities regulations.) Party A acquire the shares of Party B as the owner but no agent or temporary holder with the purpose to distribute or resell the shares of Party B which violate the Securities Act or any applicable state securities regulations. Party A is a non- US citizen (as defined by Rule 902 in accordance with the Securities Act) and will not acquire Party B’s shares for American accounts or interests. Party A will not do the following within six (6) months since acquiring Party B’s shares: (i) make any offer or sell shares in the United States or to the Americans (in each case, as specified in Regulation S), unless compliant with Regulation S or the exemptions under the registration of Securities Act or (ii) engaging in hedging transactions, except as required by the Securities Act. Party A or any affiliated company of Party A or any person acting on behalf of Party A or Party A’s agent do not participate or will engage in targeted sales related to Party B’s shares (within the definition of Regulation S), and all such persons have complied and will comply with the sales registration requirement outside the United States by Regulation S. Party A hereby declares that it satisfied and complies with the laws and regulations applicable to the acquisition and transfer of Party B’ shares, Party A’s acquisition and continued benefit and ownership of Party B’s shares will not violates any securities regulation application to Party A or other legal requirements within Party A’s jurisdiction. Party A knows that Party B’s reward stocks are not and will not be registered under the Securities Act or under the State Securities Regulations. There fore, unless they subsequently register under the applicable Securities Act and the State Securities Act or obtain an exemption from such registration, the stock cannot be sold, pledge, transfer or disposed. Party B is not obliged to register the shares in accordance with the Securities Law and the applicable state securities laws. Any such registration is at the discretion of Party B.
  
 (B) Proposed cooperation in 2019:
  
 1. It is planned to set up a new retail company in Ankang city and enjoy the four major support policies of the local government.
  
 Party A proposed that both parties can stand at a strategic height and establish a new retail company in Ankang City, Shanxi Province with a good investment environment and preferential policies, enjoy the four major support policies and poverty alleviation projects and western development of the local government, cooperate with the subordinate enterprises of the government, and develop products sales channels in third and fourth tier cities.
  
 2. Party A intends to further innovate the commercial marketing model, use the concept of global sharing economy and consumers to enhance and improve the design and implementation plans of various domestic products in China, and boarded the products application scenarios of both parties by promoting the development of physical enterprises and membership system for increasing entrepreneurial opportunities. 
  
 3. Develop artificial intelligence technology industry, patent import capital and promote capital operation by industry.
  
 Party A intends to use the advantages of its artificial intelligence, network technology and financial team to introduce digital assets of patent intellectual property rights and equity of entity enterprises when everything is ready. Create conditions through mutual shareholding, conduct assets securitization and digital certification under the premise of complying with national laws and regulations, build a transnational intelligent service platform and promote trinational capital operation. 
   	 
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 Second, Parties responsibilities
  
 Party A’s responsibilities:
  
  	  
	1.	Responsible for immediately integrating the existing e-commerce platform and direct sales license resources, selecting the small molecule + carrier high-tech functional products of Party B, and promote the products on Party A’s own online shopping store and marketing channels during the Asian new years and spring festival holidays.
	  
	  
	  

	  
	2.	Responsible for recommending high-tech smart products suitable for using in North America and overseas, and providing relevant qualifications and credit documents including intellectual property rights, manufactures, quality appraisal, sales policies and after-sales services to Party B.
	  
	  
	  

	  
	3.	Implementing the capital investment process: intend to invest in the capital market, consider investing in EWLU stocks on the premise of confirming that the funds are ready. It is wished that both parties formally sign the EWLU stock agreement before the application for trading in NYSE or Nasdaq.
	  
	  
	  

	  
	4.	Responsible for contacting and implementing the resources of hospitals and health institutions in the Asian region, promoting the integration of Merion E-hospital customer base, and cooperating to provide online medical consultation by North American famous doctors, health consultation, medical treatment abroad, and overseas recovery for patients and sub health populations in Asia.
	  
	  
	  

	  
	5.	Responsible for the preliminary preparation and policy consultation before establishing a new retail company in Ankang City, Shanxi Province, and informing Party B the progress of the preparation time by time.
	  
	  
	  

	  
	6.	Responsible for taking the resource advantages of the Party A’s group high-tech team, steadily carry out pre-preparation and programs set up of the asset securitization and digital certification and create conditions for operation on the premise of complying with national laws and regulations.
	  
	  
	  

	  
	7.	Responsible for timely feedback on the market situation of Party A’s sales channels in Asia and provide constructive comments and suggestions on the special needs of the Asian market.

   	 
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 Party B’s responsibilities
  
  	  
	1.	Responsible for providing the products list and introduction of Merion high-tech small molecules +carriers. And provide the analysis test report which qualified by FDA and FDA free sales certificate and other qualification documents.
	  
	  
	  

	  
	2.	Responsible for providing the website of Merion’s relevant disclosure information on the SEC and its enquiry methods, as well as Chinese translation in formation on the relevant provisions of the US securities market trading. It also provides relevant information for Chinese investors to open US stock account procedures and required information.
	  
	  
	  

	  
	3.	Responsible for providing Party A with a list of service items and service procedures of Merion e-hospital and continuing to give a discussion and consultations to clarify a specific plan for cooperation between the two Parties.
	  
	  
	  

	  
	4.	Responsible for providing an inventive arrangement of reward stock for the mutual benefit and win-win product sales performance based on the Party B’s performance. Under the premise of complying with relevant SEC regulations, specifically determine the process and methods of cooperation.
	  
	  
	  

	  
	5.	Responsible for providing Party A with the latest FDA anti-cancer drug supply channels and other high-tech functional foods and nutrition supplements that help prevent cancer.
	  
	  
	  

	  
	6.	Responsible for recommending the cooperation with financial institutions and investment banks in North America based on the progress of Party A’s capital operation, and jointly exploring asset securitization and digital certification.
	  
	  
	  

	  
	7.	Responsible for the stable provision of various high-tech functional products and overseas service after the establishment of the new retail company in Ankang City introduced by Party A.
	  
	  
	  

	  
	8.	Responsible for providing compliance consulting services for FDA-certified GMP factories for Party A’s related companies and conducting OEM business in the Chinese market.
	  
	  
	  

	  
	9.	Responsible for providing Merion e-hospital qualifications and American doctors team, connecting American doctors and Chinese hospitals and patients via internet platforms and video call, and providing overseas treatment and drug prescriptions in compliance with relevant laws and regulations. Providing medicine price inquiry, payment of medicines, medicine delivery and other services to meet the needs of domestic overseas customers.

   	 
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 Third, Profits Distribution:
  
 1. If the products are ordered in batches, it will be processed as international commodity purchase and order process. Party A shall submit an order (including products name, specification, quantity, packaging, arrival port, etc.) 45 business days in advance. 
  
 Product settlement method: Party A shall settle with Party B according to the ex-factory price of the product. Both parties agree that the price of the product cannot be lower than the retail price set by Party B when Party A conducting the sales in Asia. If Party A needs to adjust the retail price, Party B shall cooperate with the adjustment of the retail price set on the company’s website. Party A is solely responsible for the cost of sales, distribution and promotion of its products.
  
 2. In order to facilitate Party A’s direct sales business based on legal direct sales licenses, the two parties agreed that a large number of products will be delivered to Hong Kong, so that Party A can distribute it to Taiwan and Southeast Asia in Hong Kong. Products sold through the online store can be shipped by international mail.
  
 3. Sample and distribution agreement: both parties will separately agree and sign a product sales supplement agreement and implement it in accordance with the provision of the supplementary agreement. 
  
 Fourth, Others:
  
 1. Confidentiality agreement:
  
 Unless this agreement is required to be disclosed in accordance with relevant laws and regulations, the parties agree to keep the business secrets of the cooperation project confidential, and strictly keep the business operation mode and internal pricing mechanism of the project involved in this agreement confidential. Both parties shall sign confidentiality agreements with employees who may be exposed to the trade secret documents of both parties, they shall not disclose to third especially to competitors without the written authorization of both parties.
   	 
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 2. Non- circumvention agreement:
  
 Both parties shall abide the terms and the cooperation procedures stipulated in this agreement, jointly abide by the business ethics of good faith cooperation, and promise not to directly occupy the other party’s resources without overcoming the other party’s resources; neither party may unilaterally adjust the marketing sales price to impact the sales plan of the cooperative products; do not spread any words or deeds that are detrimental to the image of both parties or unfavorable to the business development of both parties. Commitment to honest cooperation, mutual benefit and development.
  
 3. Force majeure agreement:
  
 If the agreement cannot be performed due to force majeure, part or all of the liability shall be exempted according to the influence of force majeure, except as otherwise provided by law. If the force majeure happens after the delay in performance, the liability cannot be waived. The term force majeure used in this agreement refers to objective conditions that cannot be foreseen, cannot be avoided, and cannot be overcome, such as major natural disasters, plagues, wars and riots. Other miscellaneous items uncovered in this agreement shall be negotiated by both parties. Any additions, changes or modifications to this agreement shall be in the form of a written supplementary agreement, which shall have the same legal effect as this agreement.
  
 In the event of a dispute arising from the performance of this agreement, it shall be settled by friendly negotiation between two Parties. All questions regarding the composition, validity, enforcement and interpretation of this agreement shall be governed by and construed in accordance with the laws of the State of Nevada without considering its conflict of laws principles. The parties agree to all legal proceedings regarding the interpretation, execution and defense of the transactions contemplated by this agreement and any other transaction documents shall be executed in the Clerk County of Nevada State (whether for the Parties of this agreement or their respective affiliates, directors, officers, shareholders, partners, members, employee or agents). The Parties hereby irrevocably submit the exclusive jurisdiction of the State and federal courts in Clark County, Nevada, to determine any disputes under this agreement or any disputes thereunder or any transactions proposed or in connection with this agreement or any transaction proposed or discussed herein (including the execution of any transaction documents), and hereby irrevocably waive, and agree not to claim in any lawsuit, proceeding or procedure any individual claim not subject to the jurisdiction of such court, which is improper or unreasonable for such proceeding. Each party hereby irrevocably waives the personal delivery process and agrees to process any such action, suit or processing by mailing a copy thereof by registration or certification mail or delivery (with proof of delivery) at the address in force at that place. The parties agree that the notice issued under this agreement shall constitute a good and sufficient delivery process and notice. Nothing contained herein shall be construed as limiting in any way any right that is provided by any other ways permitted by law.
   	 
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 This agreement is made in two copies, and each Party holds a copy. This agreement shall become effective on the date of signature by both Parties.
  
 Party A: Ali Taiai Industrial Holding, Inc.
 Owner: Mr. Wu Youjun 
  
 Signature: _____________________Company Seal: __________________
 Date: Jan. 8, 2019
  
 Party B: Merion Inc
 Owner: DANIES WANG
  
 Signature: _____________________Company Seal: __________________
 Date: Jan. 8, 2019
  
  
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