Document:

ex-10.1

 EXECUTIVE EMPLOYMENT AGREEMENT
 THIS EMPLOYMENT AGREEMENT ("Employment Agreement") is made and entered into as of the 12th day of December, 2017 (commencement date shall be January 1, 2018 "Commencement Date"), by and between Tenaya Group, Inc..(the "Company"), and, an individual Kevin Booth("Employee").  
 

 WHEREAS, the Company (such activities, together with all other activities of the Company and its subsidiaries, if any, as conducted at or prior to the termination of this Employment Agreement, and any future activities reasonably related thereto which are contemplated by the Company and/or its subsidiaries at the termination of this Employment Agreement identified in writing by the Company to Employee at the date of such termination, are hereinafter referred to as the "Business Activities");
 

 WHEREAS, the Company desires to employ Employee upon the terms and subject to the terms and conditions set forth in this Agreement.
 

 NOW, THEREFORE, in consideration of the premises, the mutual promises, covenants and conditions herein contained and for other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound hereby agree as follows:
 

 EMPLOYMENT. The Company hereby employs Employee, and Employee hereby accepts employment with the Company, all upon the terms and subject to the conditions set forth in this Employment Agreement.
 

 TERM OF EMPLOYMENT.  The term of employment of Employee by the Company pursuant to this Employment agreement shall be for the period (the "Employment Period") commencing on the Commencement Date and ending on the third (3) year anniversary of the Commencement Date, or such earlier date that Employee's employment is terminated in accordance with the provisions of this Employment Agreement; provided however, that the Employment Period shall automatically be extended for a successive one year periods, with Employee's written consent, unless the Company gives Employee thirty (30) days written notice prior to the end of such year that it does not intend to extend the term of the Employment Period.
 

 CAPACITY AND DUTIES. Employee is and shall be employed in the capacity of CEO and President of the Company and its subsidiaries with the current duties and responsibilities including but not limited to:
 1.Setting strategy and direction.
 2.Modeling and setting the company’s culture.
 3.Building and leading the senior executive team.
 4.Allocating capital to the company’s priorities. 
 

 Employee shall have such other duties, responsibilities and authorities as are assigned to him by the Board of Directors so long as such additional duties, responsibilities and authorities are consistent with Employee's position and level of authority as of the Company. Subject to the advice and general directions of the Board of Directors, and except as otherwise herein provided, Employee shall devote substantially all of his business time, best efforts and attention to promote and advance the business of the Company and its subsidiaries and to perform diligently and faithfully all the duties, responsibilities and obligations of Employee to be performed by him under this Employment Agreement. Employee's duties shall include all of those duties being performed by Employee as of the date hereof.
 

 PLACE OF EMPLOYMENT. Employee's principal place of work shall be the corporate headquarters of the Company, currently located at 8583 Skyline Drive, Los Angeles, California, provided that the location of the Company and its offices may be moved from time to time in the discretion of the Board of Directors.
 

 COMPENSATION. All compensation shall become effective January 1, 2018.
 

 During the Employment Period, subject to all the terms and conditions of this Employment Agreement and as compensation for all services to be rendered by Employee under this Employment Agreement, the Company shall pay to or provide Employee with the following:
 

 

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 (1)
 BASE SALARY. The Company shall pay to employee a base annual salary at the rate of $36,000 per year.  Employee salary will increase accordingly if the Company reaches the following revenue milestones.  
 

 $250K annual revenue = $50,000 salary
 $500K annual revenue = $100,000 salary
 $750K annual revenue = $150,000 salary
 $1,000,000 annual revenue = $200,000 salary
 

 (2)
 BONUSES.  Bonuses will be determined by the Board of Director’s based on the performance of the Company.  At the Board of Directors’ discretion and based on the performance of the Company, the Employee may receive additional salary increases, additional bonuses and cost of living increases upon such terms as determined by the Board of Directors.
 (3)
 HEALTH PLAN. Company may, but is not required to, underwrite a mutually agreed upon health benefits plan for Employee that Employee is responsible for administrating after six (6) months of continuous employment.
 

 EXPENSES. The Company shall reimburse Employee for all reasonable, ordinary and necessary expenses including, but not limited to, automobile and other business travel and customer entertainment expenses) incurred by him in connection with his employment hereunder in accordance with the written policy and guidelines established by the Company for employee reimbursement, provided, however, Employee shall render to the Company a complete and accurate accounting of all such expenses in accordance with the substantiation requirements of the Internal Revenue Code, as amended (the "Code"), as a condition precedent to such reimbursement.  
 

 ADHERENCE TO STANDARDS. Employee shall comply with the written policies, standards, rules and regulations of the Company from time to time established for all executive officers of the Company consistent with Employee's position and level of authority.
 

 REVIEW OF PERFORMANCE. The Board of Directors shall periodically review and evaluate the performance of Employee under this Employment Agreement with Employee.  
 

 TERMINATION WITH CAUSE BY THE COMPANY. This Employment Agreement may be terminated with Cause (as hereinafter defined) by the Company provided that the Company shall:
 

 (a) Give Employee the Notice of Termination (as hereinafter defined) and 
 

 (b) Pay Employee his annual base salary through the Date of Termination (as hereinafter defined) at the 
 rate in effect at the time the Notice of Termination is given plus any bonus or incentive compensation   which has been earned or has become payable pursuant to the terms of any compensation or benefit plan as   of the Date of Termination, but which have not yet been paid.
 

 TERMINATION WITHOUT CAUSE BY THE COMPANY OR FOR GOOD REASON BY EMPLOYEE. This Employment Agreement may be terminated by the Company:
 

 (a) At the end of the Term of Employment,
 

 (b) During the Term of Employment without cause as hereinafter defined, or
 

 (c) By reason of the death or Disability Reason (as hereinafter defined) provided that the Company shall continue to pay to Employee (or the estate of Employee in the event of termination due to the death of employee) the compensation and other benefits described in the Section entitled Compensation of this Employment Agreement, except for annual cash bonuses or incentive compensation for one (1) year from the Date of Termination. Employee's right to terminate his employment for Good Reason shall not be affected by his incapacity due to physical or mental illness.
 

 

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 In the event of termination by the Company by reason of Employee's death or Disability, medical, hospitalization or disability benefits coverage comparable to that provided by the Company during Employee's lifetime shall be provided to Employee, his spouse and dependents for one (1) year from the Date of Termination, and for one (1) year from the Date of Termination with respect to medical and hospitalization benefits for the Employee and his family. The benefits provided under this Section shall be no less favorable to Employee in terms of amounts, deductibles and costs to him, if any, than such benefits provided by the Company to him and shall not be interpreted so as to limit any benefits to which Employee, as a terminated employee of the Company, or his family may be entitled under the Company's life insurance, medical, hospitalization or disability plans following his Date of Termination or under applicable law.
 

 In the event of Termination by the Employee for Good Reason, the Company shall continue to pay to Employee the compensation and other benefits described in the Section entitled Compensation of this Employment Agreement, except for annual cash bonuses or incentive compensation for one (1) year from the Date of Termination, and shall continue to provide medical, hospitalization or disability benefits coverage to Employee, his spouse and dependents for one (1) year from the Date of Termination.
 

 In the event that within a period of two (2) years of a Change in Control, this Employment Agreement is terminated by the Company for any reason other than for cause (or the Company gives notice that it is not renewing the Employment Agreement pursuant to the Section entitled Term of Employment), the Company shall continue to pay to Employee the compensation and other benefits described in the Section entitled Compensation of this Employment Agreement, except for annual cash bonuses or incentive compensation for one (1) year from the Date of Termination, and shall continue to provide medical, hospitalization or disability benefits coverage to Employee; his spouse and dependents for a period of one (1) year from the Date of Termination.
 

 DEFINITIONS. In addition to the words and terms elsewhere defined in this Employment Agreement, certain capitalized words and terms used in this Employment Agreement shall have the meanings given to them by the definitions and descriptions in this Section entitled Definitions unless the context or use indicates another or different meaning or intent, and such definition shall be equally applicable to both the singular and plural forms of any of the capitalized words and terms herein defined. The following words and terms are defined terms under this Employment Agreement:
 

 "Disability" shall mean a physical or mental illness which, in the judgment of the Company after consultation with the licensed physician attending Employee, impairs Employee's ability to substantially perform his duties under this Employment Agreement as an employee and as a result of-which he shall have been absent from his duties with the Company on a full-time basis for one (1) entire month.
 

 A termination with "Cause" shall mean a termination of this Employment Agreement by reason of a good faith determination by the Board that Employee:
 

 (a) Failed to substantially perform his duties with this Company (other than a failure resulting from his incapacity due to physical or mental illness) after a written demand for substantial performance has been delivered to him by the Board, which demand specifically identifies the manner in which the Board believes he has not substantially performed his duties;
 

 (b) Has engaged in conduct the consequences of which are materially adverse to the Company, monetarily or otherwise; or
 

 (c) Has materially breached the terms of this Employment Agreement. No act, or failure to act, on Employee's part shall be grounds for termination with Cause unless he has acted or failed to act with an absence of good faith or without a reasonable belief that his action or failure to act was in or at least not opposed to the best interests of the Company. Employee shall not be deemed to have been terminated with cause unless there shall have been delivered to Employee a letter setting forth the reasons for the Company's termination of the Employee with cause.
 

 3. "Good Reason" shall mean the occurrence of any of the following events without Employee's prior express written consent:
 

 

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 (a)Any material change in Employee's status, title, authorities or responsibilities under this Employment Agreement which represents a demotion from such status, title, position or responsibilities which are materially inconsistent with his status, title, position or work responsibilities set forth in this Employment Agreement, or any removal of Employee from, or failure to appoint, elect, reappoint or reelect Employee to, any of such positions, except in connection with the termination of his employment with Cause, or as a result of his death or Disability, provided, however, that no change in title, authorities or responsibilities customarily attributable solely to the Company ceasing to be a publicly traded corporation shall constitute Good Reason hereunder;
 

 (b) The failure by the Company to continue in effect any incentive, bonus or other compensation plan in which Employee participates, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to the failure to continue such plan, or the failure by the Company to continue Employee's participation therein, or any action by the Company which would directly or indirectly materially reduce his participation therein or reward opportunities there under; provided, however, that Employee continues to meet all eligibility requirements thereof;
 

 (c) The failure by the Company to continue in effect any employee benefit plan (including any medical, hospitalization, life insurance or disability benefit plan in which Employee participates), or any material fringe benefit or prerequisite enjoyed by him unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to the failure to continue such plan, or the failure by the Company to continue Employee's participation therein, or any action by the Company which would directly or indirectly materially reduce his participation therein or reward opportunities thereunder, or the failure by the Company to provide him with the benefits to which he is entitled under this Employment Agreement; provided, however, that Employee continues to meet all eligibility requirements thereof;
 

 (d) Any other material breach by the Company of any provision of this Employment Agreement;
 

 (e) The failure of the Company to obtain a satisfactory agreement from any successor or assign of the Company to assume and agree to perform this Employment Agreement, as contemplated in the Section entitled Indemnification Agreement hereof;
 

 (f) Any purported termination of employee's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of this Employment Agreement; and for purposes of this Employment Agreement, no such purported termination shall be effective; or
 

 (g) Any Change of Control (as defined herein) of the Company.
 

 4. Change of Control. "Change of Control" shall be deemed to have occurred when:
 

 (a) Securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding voting securities are acquired pursuant to a tender offer or an exchange offer by a person or entity which is not a wholly-owned subsidiary of the Company or any of its affiliates;
 

 (b) A merger or consolidation is consummated in which the Company is a constituent corporation and which results in less than 50% of the outstanding voting securities of the surviving or resulting entity being owned by the then existing stockholders of the Company;
 

 (c) A sale is consummated by the Company of substantially all of the Company's assets to a person or entity which is not a wholly-owned subsidiary of the Company or any of its affiliates; or
 

 (d) During any period of two consecutive years, individuals who, at the beginning of such period, constituted the Board cease, for any reason, to constitute at least a majority thereof, unless the election or nomination for election for each new director was approved by the vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period.
 

 

 

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 5. Notice of Termination. "Notice of Termination" shall mean a written notice which shall indicate the specified termination provision in this Employment Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee's employment under the provision so indicated; provided, however, no such purported termination shall be effective without such Notice of Termination; provided further, however, any purported termination by the Company or by Employee shall be communicated by a Notice of Termination to the other party hereto in accordance with the Section entitled Notices of this Employment Agreement.
 

 6. Date of Termination. "Date of Termination" shall mean the date specified in the Notice of Termination (which, in the case of a termination pursuant to the Section entitled Termination Without Cause By The Company Or For Good Reason By Employee of this Employment Agreement shall not be less than sixty (60) days, and in the case of a termination pursuant to this Section, entitled Definitions, of this Employment Agreement shall not be more than sixty (60) days, from the date such Notice of Termination is given); provided, however, that if within thirty (30) days after any Notice of Termination is given the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date finally determined by either mutual written agreement of the parties or by the final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been taken).
 

 FEES AND EXPENSES. The Company shall pay all legal fees and related expenses (including the costs of experts, evidence and counsel) incurred by Employee as a result of a contest or dispute over Employee's termination of employment if such contest or dispute is resolved in Employee's favor.
 

 NOTICES. For the purposes of this Employment Agreement, notices and all other communications provided for in the Employment Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, or by expedited (overnight) courier with established national reputation, shipping prepaid or billed to sender, in either case addressed to the respective addresses last given by each party to the other (provided that all notices to the Company shall be directed to the attention of the Chairman with a copy to the Secretary of the Company) or to such other address as either party may have furnished to the other in writing in accordance herewith. All notices and communication shall be deemed to have been received on the date of delivery thereof, or on the second day after deposit thereof with an expedited courier service, except that notice of change of address shall be effective only upon receipt.
 

 ·
 Company at:   8583 Skyline Drive, Los Angeles, CA 90046 
 ·
 Employee at:   8583 Skyline Drive, Los Angeles, CA 90046
 

 LIFE INSURANCE. The Company may, at any time after the execution of this Employment Agreement, apply for and procure as owner and for its own benefit, life insurance on Employee, in such amounts and in such form or forms as the Company may determine. Employee shall, at the request of the Company, submit to such medical examinations, supply such information, and execute such documents as may be required by the insurance Company or companies to whom the Company has applied for such insurance. Employee hereby represents that to his knowledge he is in excellent physical and mental condition and is not under the influence of alcohol, drugs or similar substance.
 

 PRIOR EMPLOYMENT AGREEMENTS. Employee represents and warrants that Employee's performance of all the terms of this Employment Agreement and as an employee of the Company does not, and will not, breach any employment-agreement, arrangement or understanding or any agreement, arrangement or understanding to keep in confidence proprietary information acquired by Employee in confidence or in trust prior to Employee's employment by the Company. Employee has not entered into, and shall not enter into, any agreement, arrangement or understanding, either written or oral, which is in conflict with this Employment Agreement or which would be violated by Employee entering into, or carrying out his obligations under, this Employment Agreement. This Employment Agreement supercedes all other Employment Agreements with the Company.
 

 

 

 

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 PROPRIETARY INFORMATION AND INVENTIONS. Employee understands and acknowledges that:
 

 1. During the term of the Employee's employment under this agreement, the Employee shall not, directly or indirectly, engage or be interested (as a stockholder, director, officer, employee, salesperson, agent, broker, partner, individual proprietor, lender, consultant, or otherwise), either individually or in or through any person (whether a corporation, partnership, association, or other entity) which engages, anywhere in the United States, in a business which is conducted by the Company on the date of termination of his/her employment, except that he/she may be employed by an affiliate of the Company and hold not more than 2% of the outstanding securities of any class of any publicly held Company which is competitive with the business of the Company.
 

 2. The Employee shall not, directly or indirectly; either during the term of the Employee's employment under this Agreement or thereafter, disclose to anyone (except in the regular course of the Company's business or as required by law), or use in any manner, any information acquired by the Employee during his/her employment by the Company with respect to any clients or customers of the Company or any confidential or secret aspect of the Company's operations or affairs unless such information has become public knowledge other than by reason of actions, direct or indirect, of the Employee. Information subject to the provisions of this paragraph shall include, without limitation:
 

 (a) Procedures for computer access and passwords of the Company's clients and customers, program manuals, user manuals, or other documentation, run books, screen, file, or database layouts, systems flowcharts, and all documentation normally related to the design or implementation of any computer programs developed by the Company relating to computer programs or systems installed either for customers or for internal use;
 

 (b) Lists of present clients and customers and the names of individuals at each client or customer location with whom the Company deals, the type of equipment or computer software they purchase or use, and information relating to those clients and customers which has been given to the Company by them or developed by the Company, relating to computer programs or systems installed;
 

 (c) Lists of or information about personnel seeking employment with or who are employed by the Company;
 

 (d) Prospect lists for actual or potential clients and customers of the Company and contact persons at such actual or potential clients and customers;
 

 (e) Any other information relating to the Company's research, development, inventions, purchasing, engineering, marketing, merchandising, and selling.
 

 3. The Employee shall not, directly or indirectly, either during the term of the Employee's employment under this Agreement or for a period of one (1) year thereafter or for six (6) months following the Termination Date-if this Employment Agreement is terminated by the Company other than with Cause or by the Employee for Good Reason; Solicit, directly or indirectly, the services of any person who was a full-time employee of the Company, its subsidiaries, divisions, or affiliates, or solicit the business of any person who was a client or customer of the Company, its subsidiaries, divisions, or affiliates, in each case at any time during the past year of the term of the Employee's employment under this Agreement. For purposes of this Agreement, the term "person" shall include natural persons, corporations, business trusts, associations, sole proprietorships, unincorporated organizations, partnerships, joint ventures, and governments, or any agencies, instrumentalities, or political subdivisions thereof.  Induce employees of the Company to terminate their employment with the Company or engage in any Competitive Business in the United States; provided, however, that the ownership of the outstanding capital-stock of a corporation whose shares are traded on a national securities exchange or oh the over-the-counter market or the ownership and/or operation of a franchise under a franchise agreement with the Company shall not be deemed engaging any Competitive Business. "Competitive Business" shall mean any other business that is the same as or similar to the Company concept as it exists on the date of this Employment Agreement or on the Termination Date.
 

 4. All memoranda, notes, records, or other documents made or composed by the Employee, or made available to him during the term of this Agreement concerning or in any way relating to the business or affairs of the Company, its subsidiaries, divisions, affiliates, or clients shall be the Company's property and shall be delivered to the Company on the termination of this Agreement or at any other time at the request of the Company.
 

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 5. The Employee hereby assigns and agrees to assign to the Company all his rights to and title and interest to all Inventions and to applications for United States and foreign patents and United States and foreign patents granted upon such Inventions and to all copyrightable material or other works related thereto.
 

 The Employee agrees for himself and his heirs, personal representatives, successors, and assigns, upon request of the Company, to at all times do such acts, such as giving testimony in support of the Employee's inventorship, and to execute and deliver promptly to the Company such papers, instruments, and documents, without expense to him, as from time to time may be necessary or useful in the Company's opinion to apply for, secure, maintain, reissue, extend, or defend the Company's worldwide rights in the Inventions or in any or all United States patents and in any or all patents in any country foreign to the United States, so as to secure to the Company the full benefits of the Inventions or discoveries and otherwise to carry into full force and effect the text and the intent of the assignment set out in this Section, Proprietary Information And Inventions.
 

 Notwithstanding any provision of this Agreement to the contrary, the Company shall have the royalty-free right to use in its business, and to make, have made, use, and sell products, processes, and services to make, have made, use, and sell products, processes, and services derived from any inventions, discoveries, concepts, and ideas, whether or not patentable, including, but not limited to, processes, methods, formulas, and techniques, as well as improvements thereof and know-how related thereto, that are not inventions as defined herein, but which are made or conceived by the Employee during his employment by the Company or with the use or assistance of the Company's facilities, materials, or personnel. If the Company determines that it has no present or future interest in any invention or discovery made by the Employee under this paragraph, the Company shall release such invention or discovery to the Employee within Sixty (60) days after the Employee's notice in writing is received by the Company requesting such release. If the Company determines that it does or may in the future have an interest in any such invention or discovery, such information will be communicated to the Employee within the 60-day period described above.
 

 For purposes of this Section, Proprietary Information And Inventions, "Inventions" means inventions, discoveries, concepts, and ideas, whether patentable or not, including, but not limited to, processes, methods, formulas, and techniques, as well as improvements thereof or know-how related thereto, concerning any present or prospective activities of the Company which the Employee becomes acquainted as a result of her employment by the Company.
 6. The Employee acknowledges that the agreements provided in this Section, Proprietary Information And Inventions, were an inducement to the Company entering into this Agreement and that the remedy at law for breach of Employee's covenants under this Section, Proprietary Information And Inventions, will be inadequate and, accordingly, in the event of any breach or threatened breach by the Employee of any provision of this Section, Proprietary Information And Inventions, the Company shall be entitled, in addition to all other remedies, to an injunction restraining any such breach.
 

 TRUST. Employee's employment creates a relationship of confidence and trust between Employee and the Company with respect to certain information applicable to the business of the Company, its subsidiaries, if any, (collectively, the "Group") or applicable to the business of any franchisee, vendor or customer of any of the Group, which may be made known to Employee by the Group or by any franchisee, vendor or customer of any of the Group or learned by Employee during the employment Period.
 

 REMEDIES. Employee acknowledges and agrees that the Company's remedy at law for a breach or a threatened breach of the provisions herein would be inadequate, and in recognition of this Fact, in the event of a breach or threatened breach by Employee of any of the provisions of this Employment Agreement, it is agreed that the Company shall be entitled to, equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, without posting bond or other security. Employee acknowledges that the granting of a temporary injunction, a temporary restraining order or other permanent injunction merely prohibiting Employee from engaging in any Business Activities would not be an adequate remedy upon breach or threatened breach of this Employment Agreement, and consequently agrees upon any such breach or threatened breach to the granting of injunctive relief prohibiting Employee from engaging in any activities prohibited by this Employment Agreement. No remedy herein conferred is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder now or hereinafter existing at law or in equity or by statute or otherwise.
 

 

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 SUCCESSIVE EMPLOYMENT NOTICE. Within five (5) business days after the Termination Date, Employee shall provide notice to the Company of Employee's next intended employment. If such employment is not known by employee at such date, Employee shall notify the Company immediately upon determination of such information. Employee shall continue to provide the Company with notice of employee's place and nature of employment and any change in place or nature of employment during the period ending:
 

 (a) Two (2) years after the Termination Date if this Employment Agreement is terminated by the Company for Cause or by the Employee other than for Good Reason or
 

 (b) Six (6) months after the Termination Date if this Employment Agreement is terminated by the Company other than for Cause or by the Employee for Good Reason.
 

 Failure of Employee to provide the Company with such information in an accurate and timely fashion shall be deemed to be a breach of this Employment Agreement and shall entitle the Company to all remedies provided for in this Employment Agreement as a result of such breach.
 

 SUCCESSORS. This Employment Agreement shall be binding on the Company and any successor to any of its businesses or assets. Without limiting the effect of the prior sentence, the Company shall use its best efforts to require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Employment Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. As used in this Employment Agreement, "Company" shall mean the Company as hereinbefore defined and any successor or assign to its business and/or assets as aforesaid which assumes and agrees to perform this Employment Agreement or which is otherwise obligated under this Agreement by the first sentence of this Section, entitled Successors, by operation of law or otherwise.
 

 INDEMNIFICATION AGREEMENT. Upon the execution of this Employment Agreement, the Company and employee shall each execute and deliver to the other an Indemnification Agreement dated as of the date hereof.
 

 BINDING EFFECT. This Employment Agreement shall inure to the benefit of and be enforceable by Employee's personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Employee should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Employment Agreement to Employee's estate.
 

 MODIFICATION AND WAIVER. No provision of this Employment Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in-writing and signed by Employee and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Employment Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
 

 HEADINGS. Headings used in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.
 

 WAIVER OF BREACH. The waiver of either the Company or Employee of a breach of any provision of this Employment Agreement shall not operate or be construed as a waiver of any subsequent breach by either the Company or Employee.
 

 AMENDMENTS. No amendments or variations of the terms and conditions of this Employment Agreement shall be valid unless the same is in writing and signed by all of the parties hereto.
 

 SEVERABILITY. The invalidity or unenforceability of any provision of this Employment Agreement, whether in whole or in part, shall not in any way affect the validity and/or enforceability of any other provision contained herein. Any invalid or unenforceable provision shall be deemed severable to the extent of any such invalidity or unenforceability.
 

 

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 It is expressly understood and agreed that while the Company and Employee consider the restrictions contained in this Employment Agreement reasonable for the purpose of preserving for the Company the good will, other proprietary rights and intangible business value of the Company, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in this Employment Agreement is an unreasonable or otherwise unenforceable restriction against Employee, the provisions of such clause shall not be rendered void but shall be deemed amended to apply as to maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.
 

 GOVERNING LAW. This Employment Agreement shall be construed and enforced pursuant to the laws of the State of Nevada.
 

 ARBITRATION. Any controversy or claim arising out of or relating to this Employment Agreement or any transactions provided for herein, or the breach thereof, other than a claim for injunctive relief shall be settled by arbitration in accordance with the commercial Arbitration Rules of the American Arbitration Association (the "Rules") in effect at the time demand for arbitration is made by any party. The evidentiary and procedural rules in such proceedings shall be kept to the minimum level of formality that is consistent with the Rules. One arbitrator shall be named by the Company, a second shall be named by Employee and the third arbitrator shall be named by the two arbitrators so chosen. In the event that the third arbitrator is not agreed upon, he or she shall be named by the American Arbitration Association. Arbitration shall occur in Clark County, Nevada or such other location agreed to by the Company and Employee. The award made by all or a majority of the panel of arbitrators shall be final and binding, and judgment may be entered in any court of law having competent jurisdiction. The award is subject to confirmation, modification, correction, or vacation only as explicitly provided in Title 9 of the United States Code. The prevailing party shall be entitled to an award of pre- and post-award interest as well as reasonable attorneys' fees incurred in connection with the arbitration and-any judicial proceedings related thereto.
 

 EXECUTIVE OFFICER STATUS. Employee acknowledges that he may be deemed to be an "executive officer" of the Company for purposes of the Securities Act of 1933, as amended (the "1933 Act"), and the Securities Exchange Act of 1934, as amended (the "1934 Act") and, if so, he shall comply in all respects with all the rules and regulations under the 1933 Act and the 1934 Act applicable to him in a timely and non-delinquent manner. In order to assist the Company in complying with its obligations under the 1933 Act and 1934 Act, Employee shall provide to the Company such information about Employee as the Company shall reasonably request including, but not limited to, information relating to personal history and stockholdings. Employee shall report to the General Counsel of the Company or other designated officer of the Company all changes in beneficial ownership of any shares of the Company Common Stock deemed to be beneficially owned by Employee and/or any members of Employee's immediate family.
 

 PRONOUNS. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the person or entity may require. As used in this agreement: (1) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender, (2) words in the singular shall mean and include the plural and vice versa, and (3) the word "may" gives sole discretion without any obligation to take any action.
 

 COUNTERPARTS. This Employment Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one document.
 

 EXHIBITS. Any Exhibits attached hereto are incorporated herein by reference and are an integral part of this Employment Agreement.
 

 

 

 

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 IN WITNESS WHEREOF, this Employment Agreement 'has been duly executed by the Company and the Employee as of the date first above written.
 

 	 	 	
	 Kevin Booth
	  
	  

	  
	  
	  

	 /s/ Kevin Booth
	  
	 12/12/17

	 Kevin Booth
	  
	 Date

	  
	  
	  

	  
	  
	  

	 Tenaya Group, Inc.
	  
	  

	  
	  
	  

	 /s/ Jordan Shefsky
	  
	 12/12/17

	 Name: Jordan Shefsky
	  
	 Date

	 Title: Secretary
	  
	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 10EXECUTION
VERSION

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of August 13, 2018, by and between OCEAN POWER TECHNOLOGIES,
INC., a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited
liability company (together with its permitted assigns, the “Buyer”). Capitalized terms used herein and not
otherwise defined herein shall have the respective meanings set forth in the Common Stock Purchase Agreement by and between the
parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase
Agreement”).

 

WHEREAS:

 

A.
Upon the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Buyer, and
the Buyer has agreed to purchase, up to Ten Million Dollars ($10,000,000) of the Company’s common stock, par value $0.001
per share (the “Common Stock”), pursuant to Section 1 of the Purchase Agreement (such shares, the “Purchase
Shares”), and (ii) the Company has agreed to issue to the Buyer such number of shares of Common Stock as is required
pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Shares”); and

 

B.
To induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “1933 Act”), and applicable state securities laws.

 

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

 

	 	1.	DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

a.
“Person” means any person or entity including any corporation, a limited liability company, an association,
a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

b.
“Register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more registration statements of the Company in compliance with the 1933 Act and pursuant
to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”),
and the declaration or ordering of effectiveness of such registration statement(s) by the U.S. Securities and Exchange Commission
(the “SEC”).

 

c.
“Registrable Securities” means (i) all of the Commitment Shares and (ii) such number of additional Purchase
Shares as reasonably determined by the Company, which may from time to time be, issued or issuable to the Buyer upon purchases
of the Available Amount under the Purchase Agreement, and any shares of capital stock issued or issuable with respect to the Purchase
Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange
or similar event, without regard to any limitation on purchases under the Purchase Agreement.

 

    	 

    	 

    

 

d.
“Registration Statement” means a registration statement of the Company covering only the sale of the Registrable
Securities.

 

	 	2.	REGISTRATION.

 

a.
Mandatory Registration. The Company shall within Ten (10) Business Days from the date hereof file with the SEC the Registration
Statement. The Registration Statement shall register only the Registrable Securities and no other securities of the Company. Except
as provided herein, the Buyer and its counsel shall have a reasonable opportunity to review and comment upon such Registration
Statement or any amendment to such Registration Statement and any related prospectus prior to its filing with the SEC. The Buyer
shall furnish all information reasonably requested by the Company for inclusion therein. The Company shall use its reasonable
best efforts to have the Registration Statement or any amendment declared effective by the SEC as soon as reasonably practicable.
Subject to Permitted Delays (as defined below) and Section 3(e), the Company shall use reasonable best efforts to keep the Registration
Statement effective pursuant to Rule 415 promulgated under the 1933 Act and available for sales of all of the Registrable Securities
at all times until the earlier of (i) the date as of which the Buyer may sell all of the Registrable Securities without restriction
pursuant to Rule 144 promulgated under the 1933 Act (or successor thereto) or (ii) the date on which the Buyer shall have sold
all the Registrable Securities and no Available Amount remains under the Purchase Agreement (the “Registration Period”).
Except as contemplated in Section 3(e), and except with respect to the information furnished in writing to the Company by the
Buyer expressly for use in connection with the preparation of the Registration Statement and any amendments or supplements thereto
or prospectus contained therein (as to which the Company makes no representation or warranty), the Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

b.
Rule 424 Prospectus. The Company shall, to the extent required by applicable securities regulations, from time to time
file with the SEC, pursuant to Rule 424 promulgated under the 1933 Act, a prospectus and prospectus supplements, if any, to be
used in connection with sales of the Registrable Securities under the Registration Statement. The Buyer and its counsel shall
have two (2) Business Days to review and comment upon such prospectus prior to its filing with the SEC. The Buyer shall use its
reasonable best efforts to comment upon such prospectus within two (2) Business Days from the date the Buyer receives the final
version of such prospectus.

 

c.
Sufficient Number of Shares Registered. In the event the number of shares available under the Registration Statement is
insufficient to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Registration
Statement or file a new registration statement (a “New Registration Statement”), so as to cover all such Registrable
Securities as soon as reasonably practicable, but in any event not later than ten (10) Business Days after the necessity therefor
arises. The Company shall use its reasonable best efforts to have such amendment and/or New Registration Statement become effective
as soon as reasonably practicable following the filing thereof.

 

    	2

    	 

    

 

	 	3.	RELATED
    OBLIGATIONS.

 

With
respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Sections 2(a) and
(c), including on any New Registration Statement, the Company shall use its reasonable best efforts to effect the registration
of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company
shall have the following obligations:

 

a.
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration
Statement and the prospectus used in connection with such Registration Statement, as may be necessary to keep the Registration
Statement or any New Registration Statement effective at all times during the Registration Period, subject to Permitted Delays
and Section 3(e) hereof and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time
as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in such Registration Statement. Should the Company file a post-effective amendment to the
Registration Statement or a New Registration Statement, the Company will use its reasonable best efforts to have such filing declared
effective by the SEC within thirty (30) consecutive Business Days following the date of filing, which such period shall be extended
for an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection therewith. If
(i) there is material non-public information regarding the Company which the Company’s Board of Directors reasonably determines
not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose or (ii)
there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than
in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the
Company which the Company’s Board of Directors reasonably determines not to be in the Company’s best interest to disclose
and which the Company would be required to disclose under a Registration Statement or a New Registration Statement, then the Company
may postpone or suspend filing or effectiveness of such Registration Statement or New Registration Statement or use of the prospectus
under the Registration Statement or New Registration Statement for a period not to exceed sixty (60) consecutive days, provided
that the Company may not postpone or suspend its obligation under this Section 3(a) for more than ninety (90) days in the aggregate
during any twelve (12) month period (each, a “Permitted Delay”).

 

b.
The Company shall submit to the Buyer for review and comment any disclosure in the Registration Statement, any New
Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a
copy of a filed Form 10-K, Form 10-Q or a Current Report on Form 8-K or any amendment as a result of the Company’s
filing of a document that is incorporated by reference into the Registration Statement or New Registration Statement)
containing information provided by the Buyer for inclusion in such document and any descriptions or disclosure regarding the
Buyer, the Purchase Agreement, including the transaction contemplated thereby, or this Agreement at least two (2) Business
Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects.
Upon request of the Buyer, the Company shall provide to the Buyer all disclosure in the Registration Statement or any New
Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a
copy of a filed Form 10-K, Form 10-Q or Current Report on Form 8-K or any amendment as a result of the Company’s filing
of a document that is incorporated by reference into the Registration Statement or New Registration Statement) at least two
(2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and
timely objects. The Buyer shall use its reasonable best efforts to comment upon the Registration Statement or any New
Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Buyer
receives the final version thereof. The Company shall furnish to the Buyer, without charge, any correspondence from the SEC
or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New
Registration Statement.

 

    	3

    	 

    

 

c.
Upon request of the Buyer, the Company shall furnish to the Buyer, (i) promptly after the same is prepared and filed with the
SEC, at least one copy of the Registration Statement and any amendment(s) thereto, including all financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of a Registration Statement, a copy
of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of
copies as the Buyer may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus,
as the Buyer may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned
by the Buyer.

 

d.
The Company shall use reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification
is available, the Registrable Securities covered by a Registration Statement under such other securities or “blue sky”
laws of such jurisdictions in the United States as the Buyer reasonably requests, (ii) subject to Permitted Delays, prepare and
file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications
as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may
be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to
do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The
Company shall promptly notify the Buyer who holds Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

 

e.
Subject to Permitted Delays, as promptly as reasonably practicable after becoming aware of such event or facts, the Company shall
notify the Buyer in writing if the Company has determined that the prospectus included in any Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and as promptly
as reasonably practical (taking into account the Company’s good faith assessment of any adverse consequences to the Company
and its stockholders of premature disclosure of such event or facts) prepare a prospectus supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and, upon the Buyer’s request, deliver a copy of such prospectus
supplement or amendment to the Buyer. In providing this notice to the Buyer, the Company shall not include any other information
about the facts underlying the Company’s determination and shall not in any way communicate any material nonpublic information
about the Company or the Common Stock to the Buyer. The Company shall also promptly notify the Buyer in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to the Buyer by facsimile or e-mail on the
same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or
related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate. In no event shall the delivery of a notice under this Section 3(e), or the resulting
unavailability of a Registration Statement, without regard to its duration, for disposition of securities by Buyer be considered
a breach by the Company of its obligations under this Agreement. The preceding sentence in this Section 3(e) does not limit whether
an event of default has occurred as set forth in Section 9(a) of the Purchase Agreement.

 

    	4

    	 

    

 

f.
The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practical
time and to notify the Buyer of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.
The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities if the Principal
Market (as such term is defined in the Purchase Agreement) is an automated quotation system. The Company shall pay all fees and
expenses in connection with satisfying its obligation under this Section.

 

h.
The Company shall cooperate with the Buyer to facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such
certificates to be in such denominations or amounts as the Buyer may reasonably request and registered in such names as the Buyer
may request.

 

i.
The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.
If reasonably requested by the Buyer, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective
amendment to the Registration Statement such information as the Buyer believes should be included therein relating to the sale
and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable
Securities being sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities;
(ii) make all required filings of such prospectus supplement or post-effective amendment as promptly as practicable once notified
of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments
to any Registration Statement (including by means of any document incorporated therein by reference).

 

    	5

    	 

    

 

k.
The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any Registration Statement to
be registered with or approved by such other governmental agencies or authorities in the United States as may be necessary to
consummate the disposition of such Registrable Securities.

 

l.
Within one (1) Business Day after any Registration Statement is ordered effective by the SEC, the Company shall deliver to
the Transfer Agent for such Registrable Securities (with copies to the Buyer) confirmation that such Registration Statement
has been declared effective by the SEC in the form attached hereto as Exhibit A. Thereafter, if reasonably requested
by the Buyer at any time, the Company shall deliver to the Buyer a written confirmation of whether or not the effectiveness of such
Registration Statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order)
and whether or not the Registration Statement is currently effective and available to the Buyer for sale of all of the
Registrable Securities.

 

m.
The Company agrees to take all other reasonable actions as necessary and reasonably requested by the Buyer to expedite and facilitate
disposition by the Buyer of Registrable Securities pursuant to any Registration Statement.

 

	 	4.	OBLIGATIONS
    OF THE BUYER.

 

a.
The Buyer has furnished to the Company in Exhibit B hereto such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it as required to effect the registration
of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request. The Company shall notify the Buyer in writing of any other information the Company reasonably requires from the Buyer
in connection with any Registration Statement hereunder. The Buyer will as promptly as practicable notify the Company of any material
change in the information set forth in Exhibit B, other than changes in its ownership of the Common Stock.

 

b.
The Buyer agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of any amendments and supplements to any Registration Statement hereunder.

 

c.
The Buyer agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the
kind described in Section 3(f) or any notice of the kind described in the first sentence of Section 3(e), the Buyer will immediately
discontinue disposition of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities
until the Buyer’s receipt (which may be accomplished through electronic delivery) of the copies of the filed supplemented
or amended registration statement and/or prospectus contemplated by Section 3(f) or the first sentence of Section 3(e). In addition,
upon receipt of any notice from the Company of the kind described in the first sentence of Section 3(e), the Buyer will immediately
discontinue purchases or sales of any securities of the Company unless such purchases or sales are in compliance with applicable
U.S. securities laws. Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to deliver as promptly
as practicable shares of Common Stock without any restrictive legend in accordance with the terms of the Purchase Agreement in
connection with any sale of Registrable Securities with respect to which the Buyer has received a Purchase Notice or VWAP Purchase
Notice (both as defined in the Purchase Agreement) prior to the Buyer’s receipt of a notice from the Company of the happening
of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Buyer has not yet settled.

 

    	6

    	 

    

 

	 	5.	EXPENSES
    OF REGISTRATION.

 

All
reasonable expenses of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for the Buyer,
incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation,
all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the
Company, shall be paid by the Company.

 

	 	6.	INDEMNIFICATION.

 

a.
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Buyer, each
Person, if any, who controls the Buyer, the members, the directors, officers, partners, employees, agents, representatives of
the Buyer and each Person, if any, who controls the Buyer within the meaning of the 1933 Act or the Securities Exchange Act of
1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any third party
losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid
in settlement (with the prior consent of the Company, such consent not to be unreasonably withheld) or reasonable expenses, (collectively,
“Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency
or body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material
fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made
in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including,
without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to the Registration Statement or any New Registration Statement (the matters in the foregoing clauses (i)
through (iii) being, collectively, “Violations”). The Company shall reimburse each Indemnified Person promptly
as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by
them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6(a): (A) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the
Company by the Buyer or such Indemnified Person expressly for use in connection with the preparation of the Registration Statement,
any New Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available
by the Company; (B) with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom the
person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any other
Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected
in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company
pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation; (C) shall not be available to the extent such Claim is based on a failure
of the Buyer to deliver, or to cause to be delivered, the prospectus made available by the Company, if such prospectus was theretofore
made available by the Company pursuant to Section 3(c) or Section 3(e); and (D) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 9.

 

    	7

    	 

    

 

b.
In connection with the Registration Statement or any New Registration Statement, the Buyer agrees to indemnify, hold harmless
and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act (collectively and together with an Indemnified Person, an “Indemnified
Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934
Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the
extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about the
Buyer set forth on Exhibit B attached hereto or updated from time to time in writing by the Buyer and furnished to the
Company by the Buyer expressly for use in the Registration Statement or any New Registration Statement or from the failure of
the Buyer to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made
available by the Company pursuant to Section 3(c) or Section 3(e); and, subject to Section 6(d), the Buyer will reimburse any
legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of the Buyer, which consent shall not be unreasonably withheld; provided, further, however, that the Buyer shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Buyer as a
result of the sale of Registrable Securities pursuant to such registration statement. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Buyer pursuant to Section 9.

 

    	8

    	 

    

 

c.
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be, and upon such notice, the indemnifying party shall not be liable to the Indemnified Person or Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified Person or Indemnified Party in connection with
the defense thereof; provided, however, that an Indemnified Person or Indemnified Party (together with all other Indemnified Persons
and Indemnified Parties that may be represented without conflict by one counsel) shall have the right to retain its own counsel
with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised as to the status of the defense or
any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within
a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action.

 

d.
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred. Any person receiving a payment pursuant
to this Section 6 which person is later determined to not be entitled to such payment shall return such payment (including reimbursement
of expenses) to the person making it.

 

e.
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

	 	7.	CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any party who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount
of proceeds received by such seller from the sale of such Registrable Securities.

 

    	9

    	 

    

 

	 	8.	REPORTS
    AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With
a view to making available to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation
of the SEC that may at any time permit the Buyer to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees, at the Company’s sole expense, to:

 

a.
use its reasonable best efforts to make and keep public information available, as those terms are understood and defined in Rule
144;

 

b.
use its reasonable best efforts to file with the SEC in a timely manner all reports and other documents required of the Company
under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports
and other documents is required to satisfy the current public information requirements of Rule 144;

 

c.
furnish to the Buyer so long as the Buyer owns Registrable Securities, as promptly as practicable at Buyer’s request, (i)
a written statement by the Company that it has complied in all material respects with the requirements of Rule 144(c)(1)(i) and
(ii), and (ii) such other information, if any, as may be reasonably requested to permit the Buyer to sell such securities pursuant
to Rule 144 without registration; and

 

d.
take such additional action as is reasonably requested by the Buyer to enable the Buyer to sell the Registrable Securities pursuant
to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s Transfer Agent as may be reasonably requested from time to time by the Buyer and otherwise provide reasonable
cooperation to the Buyer and the Buyer’s broker to effect such sale of securities pursuant to Rule 144.

 

The
Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that
Buyer shall, whether or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary
or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such
terms or provisions.

 

	 	9.	ASSIGNMENT
    OF REGISTRATION RIGHTS.

 

The
Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer;
provided, however, that any transaction, whether by merger, reorganization, restructuring, consolidation, financing or otherwise,
whereby the Company remains the surviving entity immediately after such transaction shall not be deemed an assignment. The Buyer
may not assign its rights under this Agreement without the prior written consent of the Company.

 

    	10

    	 

    

 

	 	10.	AMENDMENT
    OF REGISTRATION RIGHTS.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and the Buyer.

 

	 	11.	MISCELLANEOUS.

 

a.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of
both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile
numbers for such communications shall be:

 

If
to the Company:

 

Ocean
Power Technologies, Inc.

28
Engelhard Drive

Monroe
Township, NJ 08831

Telephone:
609-730-0400

Facsimile:
609-730-0404

Attention:
Chief Financial Officer

Email:
mshafer@oceanpowertech.com

 

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

 

Porter
Hedges LLP

1000
Main Street, 25th Floor

Houston,
TX 77002

Telephone:
713-226-6682

Facsimile:
713-226-6282

Attention:
Kevin J. Poli

Email:
kpoli@porterhedges.com

 

If
to the Buyer:

 

Aspire
Capital Fund, LLC

155
North Wacker Drive, Suite 1600

Chicago,
IL 60606

Telephone:
312-658-0400

Facsimile:
312-658-4005

Attention:
Steven G. Martin

Email:
smartin@aspirecapital.com

 

    	11

    	 

    

 

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

 

Morrison
& Foerster LLP

2000
Pennsylvania Avenue, NW, Suite 6000

Washington,
DC 20006

Telephone:
202-778-1611

Facsimile:
202-887-0763

Attention:
Martin P. Dunn, Esq.

Email:
mdunn@mofo.com

 

or
at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party at least one (1) Business Day prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine containing the time, date, and recipient facsimile number, (C) electronically
generated by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of receipt in accordance with clause (i), (ii), (iii) or (iv)
above, respectively. Any party to this Agreement may give any notice or other communication hereunder using any other means (including
messenger service, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly
given unless it actually is received by the party for whom it is intended.

 

b.
No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right,
power or privilege.

 

c.
The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices
to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by
law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	12

    	 

    

 

d.
This Agreement, the Purchase Agreement and the other Transaction Documents constitute the entire understanding among the
parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement, the Purchase Agreement and the other Transaction
Documents supersede all other prior oral or written agreements between the Buyer, the Company, their affiliates and persons acting
on their behalf with respect to the subject matter hereof and thereof.

 

e.
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.

 

f.
The headings in this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

g.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a
facsimile or pdf (or other electronic reproduction of a) signature shall be considered due execution and shall be binding upon
the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic
reproduction of a) signature.

 

h.
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.

 

i.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

j.
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

*
* * * *

 

    	13

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above
written.

 

	 	THE COMPANY:
	 	 	 
	 	OCEAN POWER TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/
    George H. Kirby
	 	Name:
    	George
    H. Kirby
	 	Title:
    	President
    & Chief Executive Officer
	 	 	 
	 	BUYER:
	 	 	 
	 	ASPIRE CAPITAL FUND, LLC
	 	BY:	ASPIRE
    CAPITAL PARTNERS, LLC
	 	BY:	 
	 	 	 
	 	By:	/s/
    Christos Komissopoulos
	 	Name:
    	Christos
    Komissopoulos
	 	Title:	President

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

 

[Date]

 

Computershare
Inc.

410
Washington Blvd.

Jersey
City, NJ 07310

Attention:
Elizabeth Branham

 

RE:
OCEAN POWER TECHNOLOGIES, INC.

 

Ladies
and Gentlemen:

 

We
refer to that certain Common Stock Purchase Agreement, dated as of August 13, 2018 (the “Purchase Agreement”),
entered into by and between OCEAN POWER TECHNOLOGIES, INC., a Delaware corporation (the “Company”) and
ASPIRE CAPITAL FUND, LLC (the “Buyer”) pursuant to which the Company has agreed to issue to the Buyer
shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), in an amount up
to Ten Million Dollars ($10,000,000), in accordance with the terms of the Purchase Agreement. In connection with the transactions
contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”)
the sale by the Buyer of the following shares of Common Stock:

 

	 	(1)	up
    to [Total # of Purchase Shares] shares of Common Stock to be issued upon purchase from the Company by the Buyer from
    time to time (the “Purchase Shares”); and
	 	 	 
	 	(2)
    	___________
    shares of Common Stock which have been issued to the Buyer as a commitment fee (the “Commitment Shares”).

 

In
connection with the transactions contemplated by the Purchase Agreement, the Company has filed a registration statement on Form
S-1 (File No. 333_________) (the “Registration Statement”) with the SEC relating to the sale by the Buyer of
the Purchase Shares and the Commitment Shares. Accordingly, we advise you that (i) the SEC has entered an order declaring the
Registration Statement effective under the Securities Act of 1933 Act (the “1933 Act”) at ___ [A./P.]M. on __________,
201_, (ii) we have no knowledge, after review of the stop order notification website maintained by the SEC, that any stop order
suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the
SEC and (iii) the Purchase Shares and the Commitment Shares are available for sale under the 1933 Act pursuant to the Registration
Statement. Accordingly, and in reliance on certain covenants made by the Buyer regarding the manner of sale of the Shares, certificates
representing the Shares may be issued without any restrictive legend.

 

	 	Very truly yours,
	 	 	 
	 	By:	 
	 	 	[Company
    Counsel]

 

CC:
Aspire Capital Fund, LLC

 

    	 

    	 

    

 

EXHIBIT
B

 

Information
About The Buyer Furnished To The Company By The Buyer

Expressly
For Use In Connection With The Registration Statement and Prospectus

 

Aspire
Capital Partners LLC (“Aspire Partners”) is the Managing Member of Aspire Capital Fund LLC (“Aspire Fund”).
SGM Holdings Corp (“SGM”) is the Managing Member of Aspire Partners. Mr. Steven G. Martin (“Mr. Martin”)
is the president and sole shareholder of SGM, as well as a principal of Aspire Partners. Mr. Erik J. Brown (“Mr. Brown”)
is the president and sole shareholder of Red Cedar Capital Corp (“Red Cedar”), which is a principal of Aspire Partners.
Mr. Christos Komissopoulos (“Mr. Komissopoulos”) is president and sole shareholder of Chrisko Investors Inc. (“Chrisko”),
which is a principal of Aspire Partners. Mr. William F. Blank, III (“Mr. Blank”) is president and sole shareholder
of WML Ventures Corp. (“WML Ventures”), which is a principal of Aspire Partners. Each of Aspire Partners, SGM, Red
Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos and Mr. Blank may be deemed to be a beneficial owner of
common stock held by Aspire Fund. Each of Aspire Partners, SGM, Red Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos
and Mr. Blank disclaims beneficial ownership of the common stock held by Aspire Fund.

 

Plan
of Distribution

 

The
common stock may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through
brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related
to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the common stock
offered by this prospectus may be effected in one or more of the following methods:

 

	 	●	ordinary
    brokers’ transactions;
	 	 	 
	 	●	transactions
    involving cross or block trades;
	 	 	 
	 	●	through
    brokers, dealers, or underwriters who may act solely as agents;
	 	 	 
	 	●	“at
    the market” into an existing market for the common stock;
	 	 	 
	 	●	in
    other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected
    through agents;
	 	 	 
	 	●	in
    privately negotiated transactions; or
	 	 	 
	 	●	any
    combination of the foregoing.

 

In
order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed
brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for
sale in the state or an exemption from the registration or qualification requirement is available and complied with.

 

The
selling stockholder may transfer the shares of common stock by other means not described in this prospectus.

 

    	 

    	 

    

 

Brokers,
dealers, underwriters, or agents participating in the distribution of the shares as agents may receive compensation in the form
of commissions, discounts, or concessions from the selling stockholder and/or purchasers of the common stock for whom the broker-dealers
may act as agent. Aspire Capital has informed us that each such broker-dealer will receive commissions from Aspire Capital which
will not exceed customary brokerage commissions.

 

The
selling stockholder and its affiliates have agreed not to engage in any direct or indirect short selling or hedging of our common
stock during the term of the Purchase Agreement.

 

The
selling stockholder is an “underwriter” within the meaning of the Securities Act. We have agreed to provide indemnification
and contribution to the selling stockholder against certain civil liabilities, including liabilities under the Securities Act.

 

We
have advised the selling stockholder that while it is engaged in a distribution of the shares included in this prospectus, it
is required to comply with Regulation M promulgated under the Securities Exchange Act of 1934, as amended. With certain exceptions,
Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates
in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which
is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases
made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing
may affect the marketability of the shares offered hereby this prospectus.

 

We
may suspend the sale of shares by the selling stockholder pursuant to this prospectus for certain periods of time for certain
reasons, including if the prospectus is required to be supplemented or amended to include additional material information.

 

This
offering as it relates to Aspire Capital will terminate on the date that all shares offered by this prospectus have been sold
by Aspire Capital.

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