Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of July 29, 2019, among Creative Medical Technology Holdings, Inc.,
a Nevada corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, the parties
hereto desire that the Purchasers make advances to the Company to purchase the securities to be sold under this Agreement; and

 

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

 

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

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Notes and Warrants (each as defined herein) and (la) the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.6.

 

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

 

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

 

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

 

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

 

“Closing Date”
means the Trading Day(s) on which all of the Transaction Documents have been executed and delivered by the applicable parties
thereto in connection with the Closing, and all conditions precedent to (i) each Purchaser’s obligations to pay the Subscription
Amount as to the Closing and (ii) the Company’s obligations to deliver the Securities as to the Closing, in each case, have
been satisfied or waived.

 

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

 

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“Closing Statement”
means the Closing Statement in the form on Annex A attached hereto.

 

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

 

“Disclosure Schedules”
shall have the meaning ascribed to such term in Section 3.1.

 

“Equity Incentive Plan”
means the Company’s existing equity incentive plan, as amended.

 

“Evaluation Date”
shall have the meaning ascribed to such term in Section 3.1(q).

 

“Exempt Issuance”
means the issuance of (a) shares of Common Stock and options to officers, directors, employees, or consultants of the Company
prior to and after the Closing Date, (b) securities upon the exercise or exchange of or conversion of Securities issued hereunder
(subject to adjustment for forward and reverse stock splits and the like that occur after the date hereof), (c) shares of Common
Stock issued or issuable upon the exercise or exchange of or conversion of securities outstanding on the date of this Agreement
set forth on Schedule 3.1(g) and provided that such securities and any term thereof have not been amended since the date of this
Agreement to increase the number of such securities or to decrease the issue price, exercise price, exchange price or conversion
price of such securities, (d) securities in connection with strategic transactions involving the Company and other entities, including,
without limitation, joint ventures, manufacturing, marketing or distribution arrangements or technology transfer or development
arrangements; (e) shares of Common Stock or other securities issued or issuable upon exercise or conversion of any Purchaser Securities;
and (f) securities issued or issuable pursuant to this Agreement, the Notes, the Warrants the other Transaction Documents, or
upon exercise or conversion of any such securities.

 

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

 

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

 

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

 

“Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $150,000 (other than trade accounts payable or for services
provided incurred in the ordinary course of business); (y) all guaranties, endorsements and other contingent obligations in respect
of indebtedness of others, whether or not: the same are or should be reflected in the Company’s consolidated balance sheet
(or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business; and (z) the present value of any lease payments in excess of $150,000 due under leases required
to be capitalized in accordance with GAAP.

 

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

 

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

 

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

 

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

 

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

 

“Note” means
the 8% Original Issue Discount Senior Convertible Promissory Note due, subject to the terms therein, twelve (12) months from its
date of issuance, issued by the Company to each Purchaser hereunder, in the form of Exhibit A attached hereto,

 

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

 

“Principal Amount”
means, as to each Purchaser, the amounts set forth below such Purchaser’s signature block on the signature pages hereto
next to the heading “Principal Amount,” in United States Dollars, which shall equal such Purchaser’s Subscription
Amount as to the Closing.

 

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

 

“Public Information
Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public Information
Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Purchaser Party”
shall have the meaning ascribed to such term in Section 4.9.

 

“Purchaser Securities”
means any note, warrant or other security or instrument issued by the Company and held by any Purchaser or any Affiliate of any
Purchaser.

 

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

 

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

 

“Securities”
means the Notes and the Warrants.

 

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

 

“Short Sales”
means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.

 

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

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

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

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the NYSE American,
the OTC Bulletin Board, or the OTC Markets Group Inc.’s OTCQX, OTCQB, or OTC Pink marketplaces (or any successors to any
of the foregoing).

 

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

 

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

 

“Warrant”
means the Common Stock Purchase Warrants granted by the Company to each Purchaser hereunder, in the form of Exhibit B attached
hereto.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Purchase.
The Purchasers may purchase an aggregate of $225,000 in Subscription Amount of Notes and Warrants in one tranche (the “Tranche”)
at the closing (the “Closing”). The Closing is contingent upon, among other things, all matters being satisfactory
to the Purchasers in their sole discretion, and that the Company is in full compliance with its obligations and not in default
under this Agreement, any Note, the other Transaction Documents, or any agreement with or for the benefit of the Purchasers on
the Closing Date of the Tranche.

 

2.2           Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and each Purchaser,
severally and not jointly, agrees to purchase, such Purchaser’s Closing Subscription Amount as set forth on the signature
page hereto executed by such Purchaser. At the Closing, unless otherwise agreed, each Purchaser shall have delivered funds to
the Company for release as set forth in Section 4.8 — Use of Proceeds, via wire transfer or a certified or bank check, immediately
available funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such
Purchaser and the Company shall deliver to each Purchaser its respective Note and Warrant, each as determined pursuant to Section
2.3(a), and the Company each Purchaser shall deliver the other items set forth in Section 2.3 deliverable at the Closing. Upon
satisfaction of the covenants and conditions set forth in Sections 2.3 and 2.4 for the Closing, the Closing shall occur at the
offices of Purchasers’ Counsel or such other location as the parties shall mutually agree.

 

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2.3          Deliveries.

 

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

 

(i)          this
Agreement duly executed by the Company;

 

(ii)         a
Note with a principal amount equal to such Purchaser’s Principal Amount as to the Closing, registered in the name of such
Purchaser;

 

(iii)        a
Warrant; and

 

(iv)        such
other documents, certificates, instruments, and other writings as Purchasers’ counsel may reasonably request.

 

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

 

(i)          this
Agreement duly executed by such Purchaser;

 

(ii)         such
Purchaser’s Subscription Amount as to the Closing by wire transfer to the escrow account specified in writing by the Company
and such Purchaser; and

 

(iii)        such
other documents, certificates, instruments, and other writings as the Company’s counsel may reasonably request.

 

2.4          Closing
Conditions.

 

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

 

(i)          the
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

(iii)        the
delivery by each Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

(b)          The
respective obligations of each Purchaser hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)          the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

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

 

(iii)        the
delivery by the Company of the items set forth in Section 2.3(a) of this Agreement;

 

(iv)        there
is no existing Event of Default (as defined in the Notes, the other Transaction Documents, or any agreement with or for the benefit
of the Purchasers) and no existing event that, with the passage of time or the giving of notice, would constitute an Event of
Default;

 

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

 

(vi)        from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, and without regard to any factors unique to such Purchaser, makes it
impracticable or inadvisable to purchase the Securities at the Closing.

 

2.5           Post-closing
Undertakings. Subsequent to the Closing, the Company shall:

 

(a)         promptly
pay to the Company’s transfer agent any and all of its costs and fees associated with any activity of such transfer agent
with respect to the performance of its duties in respect of the transactions contemplated by this Agreement;

 

(b)         during
the period from the date of this Agreement through the date on which all of the Purchasers shall have disposed of all of the Conversion
Shares or the shares of the Company’s common stock underlying the Warrants, neither the Company nor its Subsidiaries shall
enter into any additional, or modify any existing, agreements with any existing or future investors in the Company or any of its
Subsidiaries that have the effect of establishing rights or otherwise benefiting such investor in a manner more favorable in any
material respect, to such investor than the. rights and benefits established in favor of the Purchasers by this Agreement, unless,
in any such case, the Purchasers have been provided with such rights and benefits; and

 

(c)         not
enter into any transaction that utilizes or requires, could utilize or requires, or could be deemed to require the use of the
exemption from the registration requirements of the Securities Act provided by Section 3 (a) (10) thereof.

 

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ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the “Disclosure Schedules,” which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties
to each Purchaser as of the date hereof.

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

(b)          Organization
and Qualification. The Company and each of the Company’s Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document; (it) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole; or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii), or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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

 

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(d)          No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not: (i) conflict with or violate any provision of that Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents; (ii) conflict with, or constitute
a default (or an event that with notice or lapse of rime or both would become a default) under, result in the creation of any
Lien (except Liens in favor of the Purchasers) upon any of the properties or assets of the Company or any Subsidiary', or give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound
or affected; or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary
is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or
a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably
be expected to result in a Material Adverse Effect.

 

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

 

(f)          Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents.

 

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(g)          Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also include the
number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. The Company
has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than as set forth
in the SEC Reports or pursuant to the exercise of employee stock options under any applicable Equity Incentive Plan, the issuance
of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange
Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities and
securities issued to employees, officers or directors, or former employees, officers or directors and other service providers
or former service providers of the Company pursuant to such Equity Incentive Plan or otherwise, there are no outstanding options,
warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of
Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not
obligate any Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not
result in a right of any bolder of that Company’s securities to adjust the exercise, conversion, exchange or reset price
under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued,
fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further
approval or authorization of any stockholder or other equity holder, as applicable, the Board of Directors or others is requited
for the issuance and sale of the Securities. Other than as set forth on Schedule 3.1(g), there are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h)          SEC
Reports; Financial Statements. Except as set forth in Schedule 3.1(h), the Company has provided all reports, schedules,
forms, statements, and other documents required to be filed by the Company with the Commission for the two years preceding the
date hereof (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively
referred to herein as the “SEC Reports”). As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Commission and none of the SEC Reports, when filed, contained any untrue statement of a
material fact, or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. Except as set forth in Schedule 3.1(h),
the financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent
basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements
or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments.

 

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(i)          Material
Changes; Undisclosed Events; Liabilities or Developments. Except as provided on Schedule 3.1(i), since filing the Company’s
most recent Quarterly Report with the Commission for the period ended March 31, 2019: (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect; (ii) the Company has
not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities nor required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the Commission; (iii) the Company has not altered its method of
accounting; (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock; and (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except pursuant to the Equity Incentive Plan or as set forth
in the SEC Reports. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact, circumstance,
occurrence, or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties, operations, assets, or financial condition, that would be required to
be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not
been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

 

(j)          Litigation.
Except as set forth in the SEC Reports, or, if applicable, Schedule 3.1(j), there is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company,
any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency
or regulator)' authority (federal, state, county’, local, or foreign) (collectively, an “Action”), which
(i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect, and
neither the Company not any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. Other than
as set forth in the SEC Reports, there has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company that is
likely to lead to action that can reasonably be expected to result in a Material Adverse Effect. Other than as set forth in the
SEC Reports, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the Commission involving the Company or any current or former director or officer of the Company.

 

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

 

(l)          Compliance.
Except as set forth in Schedule 3.1(1), neither the Company nor any Subsidiary: (i) is in default under or in violation
of (and no event has occurred that has not been warned that, with notice or lapse of time or both, would result in a default by
the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority, or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse
Effect.

 

(m)          Regulatory
Permits. The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal
(except for any federal certificates, etc., concerning cannabis), state, local or foreign regulatory authorities necessary to
conduct their respective businesses as described in the SEC Reports, as applicable or on Schedule 3.11(m), except where
the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (the “Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n)          Title
to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect, the value of such property and do
not materially interfere with the use made and proposed to he made of such property by the Company and the Subsidiaries arid (ii)
liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with
GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease
by the Company and the Subsidiaries are held by them under valid, subsisting, and enforceable leases with which the Company and
the Subsidiaries are in compliance.

 

    	 	11	 

     

    

 

(o)          Intellectual
Property. The Company and its Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective businesses
as presently conducted and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of tints Agreement. No Company nor any Subsidiary has received, since the date of the latest
audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that,
the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be
expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality, and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)          Transactions
with Affiliates and Employees. Except as set forth in Schedule 3.1(p) or the SEC Reports, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member,
or partner, in each case in excess of $120,000 other than for: (i) payment of salary’ or consulting fees for services tendered;
(ii) reimbursement for expenses incurred on behalf of the Company; and (iii) other employee benefits, including stock option or
stock award agreements under the Equity Incentive Plan.

 

    	 	12	 

     

    

 

(q)          Sarbanes-Oxley:
Internal Accounting Controls. Except as set forth in Schedule 3.1(g), the Company and the Subsidiaries are in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and
all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as
of the Closing Date. Other than as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted, only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed
such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures
of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report with
the Commission the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been, no changes in the internal control
over financial reporting (as such term is defined in the Exchange Act) that have materially affected, or is reasonably likely
to materially affect, the internal control over financial repotting of the Company and its Subsidiaries.

 

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

 

(s)         Private
Placement. Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to each Purchaser as contemplated
hereby. The issuance and sale of the Securities hereunder docs not contravene the rules and regulations of the Trading Market.

 

(t)        Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(u)       Registration
Rights. No Person has any right to cause any Company to effect the registration under the Securities Act of any securities
of the Company or any Subsidiaries.

 

    	 	13	 

     

    

 

(v)         Listing
and Maintenance Requirements. The Company has not, in the twelve (12) months preceding the date hereof, received notice from
any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

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

 

(x)         Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true
and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges
and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth hi Section 3.2 hereof.

 

(y)        No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security’ or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would
require the registration of any such securities under the Securities Act or (ii) any applicable stockholder approval provisions
of any Trading Market oil which any of the securities of the Company are listed or designated.

 

(z)         No
General Solicitation. No Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

    	 	14	 

     

    

 

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

 

(bb)      Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(bb) of the Disclosure Schedules. To the knowledge and
belief of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.

 

(cc)       No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company.

 

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

 

(ee)       Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting
purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase
any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Securities.

 

(ff)        Stock
Option Plans. Each stock option granted by the Company under the Equity Incentive Plan was granted (i) in accordance with
the terms of the Equity Incentive Plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Equity
Incentive Plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice
to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or
other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

    	 	15	 

     

    

 

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

 

(hh)        U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon a Purchaser’s
request.

 

(ii)           Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%)
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

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

 

(kk)        Seniority.
As of the Closing Date, no Indebtedness or other claim against the Company is senior to the Notes in right of payment, whether
with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security
interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which is senior only as
to the property covered thereby).

 

(ll)          Shell
Company. The Company is not now a “shell company” as that term is defined in Section 12b-2 of the Exchange Act.

 

    	 	16	 

     

    

 

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

 

(nn)        Related
Party Transactions. All related party transactions have been consummated in accordance with all applicable laws and governing
agreements, including, without limitation, those laws applicable to the diversion of a corporate opportunity of the Company or
any of Affiliate of the Company or any Affiliate of any principal of that Company. In each instance, the particular related party
transaction has been approved by a majority of the disinterested directors of the applicable Company, after fall disclosure has
been made to each board member of the pertinent facts of the proposed transaction. Each such related party transaction has been
consummated on terms and conditions that are equal or more favorable to the applicable Company than a transaction with an unaffiliated
third party knowing all the facts and under no compulsion to consummate such transaction.

 

Each Purchaser acknowledges
and agrees that the representations contained in Section 3.1 shall not modify, amend or affect the Company’s and each Subsidiary’s
rights to indemnification or to rely on such Purchaser’s representations and warranties contained in this Agreement or any
representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or
delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.

 

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

 

(a)          Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and m good standing
under the laws of the jurisdiction of its incorporation, or formation with full right, corporate, partnership, limited liability-
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry-out its obligations hereunder and thereunder. The execution and delivery' of the Transaction Documents
and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all
necessary corporate, partnership, limited liability company, or similar action, as applicable, on the part of such Purchaser.
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	 	17	 

     

    

 

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

 

(c)           Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) under the Securities Act.

 

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

 

(e)           General
Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

(f)            Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi- managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty,
or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow
in order to effect Short Sales or similar transactions in the future.

 

    	 	18	 

     

    

 

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

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1          Transfer
Restrictions.

 

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

 

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

 

THIS SECURITY AND ANY SECURITY
INTO WHICH THIS SECURITY MAY BE CONVERTED OR FOR WHICH IT MAY BE EXERCISED HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”). AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH
A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

 

    	 	19	 

     

    

 

The Company acknowledges and
agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer
or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor”
as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required
under the terms of such arrangement, such Purchaser mat' transfer pledged or secured Securities to the pledgees or secured parties.
Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee,
secured party, or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the
Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of
Securities may reasonably request in connection with a pledge or transfer of the Securities.

 

(c)          In
addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, $1,000 per Trading Day for each Trading Day after the third Trading Date after such Purchaser has
duly requested the removal of the above legend (the “Legend Removal Date”) until such certificate is delivered
without a legend. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s failure
to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the
tight to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.

 

4.2          [Reserved].

 

4.3          Furnishing
of Information: Public Information.

 

(a)          Until
the earliest time that no Purchaser owns Securities, the Company covenants to file timely (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required or permitted to be filed by the Company after the date hereof
pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

    	 	20	 

     

    

 

(b)          At
any time during the period commencing from the one-year anniversary of the date hereof and ending at such time that all of the
Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction
or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement
under Rule 144(c) (a “Public Information Failure”), then, in addition to such Purchaser’s other available
remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any
such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate
Subscription Amount of such Purchaser’s Securities on the day of a Public Information Failure and on even thirtieth (30th)
day (pro-rated for periods totaling less than thirty (30) days) thereafter until the earlier of (a) the date such Public Information
Failure is cured and (b) such time that such public information is no longer required for a seller to transfer shares of Common
Stock pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to
herein as “Public Information Failure Payments.” Public Information Failure Payments shall be paid on the earlier
of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the
third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.
In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure
Payments shall hear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall
limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and such Purchaser shall have
the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.

 

4.4          Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security' (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of
the Securities for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval
prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

4.5          [Reserved].

 

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

 

4.7          Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions
in securities of the Company.

 

4.8          Use
of Proceeds. The Company shall use the net proceeds hereunder as set forth on Schedule 4.8 attached hereto.

 

    	 	21	 

     

    

 

4.9           Indemnification
of Purchasers. Subject to the provisions of this Section 4.9, the Company will indemnify and hold each Purchaser and its directors,
officers, stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders,
agents, members, partners, or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such tide or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs, and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party- in respect of which indemnity
may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to such Purchaser Party. Any
Purchaser Patty shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel, or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. No Company will be
liable to any Purchaser Party under this Agreement, (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed, or (z) to the extent, but only to the extent that
a loss, claim, damage of liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.9 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against any Company or others and any liabilities any Company may be subject
to pursuant to law.

 

4.10         [Reserved].

 

4.11         Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the parties to this Agreement. Further, no Company shall make any payment of principal or interest on
the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable
time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated
separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed
as the Purchasers acting in conceit or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

    	 	22	 

     

    

 

4.12         [Reserved].

 

4.13         [Reserved].

 

4.14         Securities
Laws Disclosure; Publicity. The Company shall by 9:30 a.m. (New York City time) on the second (2nd) Trading Day immediately
following the date hereof, issue a press release or Current Report on Form 8-K disclosing the material terms of the transactions
contemplated hereby. The Company represents to the Purchasers that, as of the issuance of such press release or Form 8-K, it shall
have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries,
or any of their respective officers, directors, employees, or agents in connection with the transactions contemplated by the Transaction
Documents. The Company and the Purchasers shall consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor the Purchasers shall issue any such press release nor otherwise
make any such public statement without the prior consent of the Company, with respect to any press release of the Purchasers,
or without the prior consent of the Purchaser, with respect to any press release of the Company, which consent shall not unreasonably
be withheld, delayed, denied, or conditioned except if such disclosure is required by law, in which case the disclosing party
shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing,
the Company shall not publicly disclose the name of the Purchasers, or include the name of the Purchasers in any filing with the
Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchasers, except: (a) as required
by federal securities law in connection with any offering statement contemplated by this Agreement and (b) to the extent such
disclosure is required by law or Trading Market regulations, in which case the Company shall provide such Purchasers with prior
notice of such disclosure permitted under this clause (b).

 

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

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Reserved.

 

    	 	23	 

     

    

 

5.2           Fees
and Expenses. The Company shall deliver to the Purchaser, prior to the Closing, a completed and executed copy of the Closing
Statement, attached hereto as Annex A. Except as expressly set forth in the Transaction Documents to the contrary, each
party shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses
incurred by such parry incident to the negotiation, preparation, execution, delivery and performance of this Agreement. the Company
shall pay all stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchaser.

 

5.3           Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits, and schedules.

 

5-4          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (i) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 12:00 noon (New York City
time) on a Trading Day; (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later
than 12:00 noon (New York City time) on any Trading Day; (iii) the second (2nd) Trading Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service; or (iv) upon actual receipt by the party to whom such notice is
requited to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding at least two-thirds (2/3) in interest of the Securities
then outstanding or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

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

 

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

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

 

    	 	24	 

     

    

 

5.9           Governing
Law. All questions concerning the construction, validity, enforcement, and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict
of laws thereof. All proceedings concerning the interpretations, enforcement, and defense of the transactions contemplated by
this Agreement and the Agreement itself (whether brought against a party hereto or its respective affiliates, directors, officers,
stockholders, partners, members, employees, or agents) shall be commenced exclusively in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts 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 such New York Courts, or such New
York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party- hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an
action ox proceeding to enforce any provisions of this Agreement, then the prevailing patty in such action or proceeding shall
be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

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

 

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

 

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

 

    	 	25	 

     

    

 

5.13         Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or m part without prejudice to its future actions and rights.

 

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

 

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

 

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

 

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

 

    	 	26	 

     

    

 

5.18         Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall he deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to he joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents.

 

5.19         Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

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

 

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

 

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

 

    	 	27	 

     

    

 

5.23         WAIVER
OF CONFLICTS. Each party to this Agreement acknowledges that Fox Rothschild LLC (“Fox”), outside general counsel
to the Company, has in the past performed legal services for, and may now or in the future represent, one or more Purchasers or
their affiliates in matters unrelated to the transactions contemplated by this Agreement (the “Financing”), including
representation of such Purchasers or their affiliates in matters of a similar nature to the Financing. The applicable rules of
professional conduct require that Fox inform the parties hereunder of this representation and obtain their consent. Fox has served
as outside general counsel to the Company and has negotiated the terms of the Financing solely on behalf of the Company. The Company
and each Purchaser hereby (a) acknowledge that they have had an opportunity to ask for and have obtained information relevant
to such representation, including disclosure of the reasonably foreseeable adverse consequences of such representation; (b) acknowledge
that with respect to the Financing, Fox has represented solely the Company, and not any Purchaser or any stockholder, director
or employee of the Company or any Purchaser; and (c) gives its informed consent to Fox’s representation of the Company
in the Financing.

 

(Signature Pages Follow)

 

    	 	28	 

     

    

 

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

 

CREATIVE MEDICAL TECHNOLOGY HOLDINGS, INC.

 

	By:	/s/
    Timothy Warbington	 
	 	Timothy
    Warbington, Chief Executive Officer	 
	 	 	 
	 	Facsimile
    No. for delivery of Notices: ______________

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

[SIGNATURE PAGE FOR PURCHASERS FOLLOWS]

 

    	 	29	 

     

    

 

PURCHASER SIGNATURE PAGES TO

SECURITIES PURCHASE AGREEMENT

 

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

 

	Name of Purchaser:  	 

 

	Authorized
    Signatory of Purchaser:  	 

 

	Name
    of Authorized Signatory:	 	 
	Title of Authorized
    Signatory:	 	 
	Email Address
    of Authorized Signatory:  	 	 

 

	Facsimile
    Number of Authorized Signatory:  	 
	Address for
    Notice to Purchaser:	 
	 
	

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

	 
	 

Closing Principal Amount:$81,000.00  

Closing Subscription Amount: $75,000.00  

EIN Number: _______________________

 

    	 	30Exhibit

Exhibit 10.4
PLURALSIGHT, LLC
INCENTIVE UNIT PLAN
 
		
	1.
	 General

(a) Eligible Unit Award Recipients. The persons eligible to receive Unit Awards under this Plan are Employees and Consultants providing services to the Company.
(b) Available Unit Awards. The Plan provides for the grant of Incentive Units in the Company. All Incentive Units awarded under this Plan are intended to constitute “profits interests” within the meaning of IRS Revenue Procedures 1993-27 and 2001-43 and will constitute “Incentive Units” within the meaning of the LLC Agreement.
(c) Purpose. The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Unit Awards as set forth in Section 1(a), to provide incentives for such persons to exert maximum efforts for the success of the Company, and to provide a means by which such eligible recipients may be given an opportunity to benefit from increases in value of the Company through the granting of Unit Awards.
(d) Rules of Construction. Any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms. Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the LLC Agreement.
		
	2.
	Administration.

(a) Administration by Board. The Board shall administer the Plan.
(b) Powers of Board. Subject to the LLC Agreement, the Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i) To determine from time to time (A) which of the Persons eligible under the Plan shall be granted Unit Awards; (B) when and how each Unit Award shall be granted; (C) the provisions of each Unit Award granted (which need not be identical); (D) the number of Incentive Units with respect to which a Unit Award shall be granted to each such Person; (E) the Strike Price applicable to the Incentive Units granted under a Unit Award; (F) the fair market value of such Incentive Units for tax reporting and withholding purposes; and (G) the Redemption Price for Vested Redemption Units under Section 6(c) below.
(ii) To construe and interpret the Plan and the Offer Letters evidencing Unit Awards granted under the Plan, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Offer Letter evidencing a Unit Award, in a manner and to the extent it shall deem necessary or expedient to make the Plan or Unit Award fully effective.
(iii) To settle all controversies regarding the Plan and Unit Awards and Incentive Units granted under it.

(iv) To accelerate in whole or in part the time at which a Unit Award vests in accordance with the Plan notwithstanding the provisions in the Unit Award stating the time at which it will vest, including in connection with a Sale of the Company.
(v) To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations under any Unit Award granted while the Plan is in effect except with the written consent of the affected Participant.
(vi) To amend the Plan in any respect the Board deems necessary or advisable. However, rights under any Unit Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.
(vii) To approve forms of Offer Letters evidencing Unit Awards for use under the Plan and to amend the terms of any one or more Offer Letters, including, but not limited to, amendments to provide terms more favorable than previously provided in the Offer Letter, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that, the rights under any Offer Letter shall not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.
(viii) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient under the Plan to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Offer Letters evidencing Unit Awards.
(c) Effect of Board’s Decision. All determinations, interpretations and constructions under or with respect to the Plan and Unit Awards made by the Board in good faith shall not be subject to review by any Person and shall be final, binding and conclusive on all persons.

		
	3. 
	Incentive Units Subject to the Plan.

(a) General. Subject to Section 8 relating to Capitalization Adjustments, the aggregate number of Incentive Units that may be issued pursuant to Unit Awards under this Plan shall not exceed 6,022,000 Incentive Units.
(b) Forfeitures. If any Incentive Units are forfeited back to the Company because of the failure to meet a contingency or condition required to vest such Incentive Units in the Participant, then the Incentive Units which are forfeited shall revert to and again become available for issuance under the Plan.
(c) Source of Incentive Units. The Incentive Units issuable under the Plan shall be authorized but unissued or reacquired Incentive Units.
		
	4.
	Eligibility

Unit Awards may be granted to Employees and Consultants of the Company. No Person shall have any right to receive a Unit Award unless the Unit Award is approved by the Board in its sole discretion and is evidenced by an executed Offer Letter in form acceptable to the Board. The Plan imposes no obligation on the Company or Board to treat Participants and/or potential Participants in an equivalent, consistent or comparable manner.
 
		
	5.
	Unit Award Provisions

(a) General. Each Unit Award shall be evidenced by an Offer Letter in such form and containing such terms and conditions as the Board shall deem appropriate. The provisions of separate Offer Letters and Unit Awards need not be identical.
(b) Transferability of Unit Awards. No Unit Award or underlying Incentive Units may be transferred prior to vesting under the applicable Offer Letter, or in violation of the other restrictions on Transfer contained in the LLC Agreement, which restrictions are incorporated by reference herein. Any attempted Transfer of a Unit Award or underlying Incentive Units prior to vesting or in violation of the LLC Agreement shall be null and void.
(c) Vesting of Incentive Units Generally. The Incentive Units subject to a Unit Award shall be subject to such service-based and performance-based vesting conditions as are determined by the Board and set forth in the applicable Offer Letter. The vesting provisions of individual Unit Awards may vary.
(d) Forfeiture on Termination of Continuous Service. Except as otherwise provided in the applicable Offer Letter evidencing a Unit Award or other written agreement between the Participant and the Company, in the event that a Participant’s Continuous Service terminates for any reason, whether voluntarily or involuntarily, with or without cause (including death), the Participant shall automatically forfeit all of the unvested Incentive Units underlying his or her Unit Award as of 12:01 am MST on the effective date of such termination of Continuous Service. Upon forfeiture, the Participant shall return to the Company any certificates representing his or her forfeited Incentive Units. A Participant shall not be entitled to any compensation, further distributions or other payment from the Company or any other Person for or with respect to his or her forfeited Incentive Units and shall automatically cease to be a member of the Company with respect to such forfeited Incentive Units.
(e) Escrow of Distributions on Unvested Incentive Units. Any “distributions” within the meaning of the LLC Agreement that the Company pays with respect to the Incentive Units underlying any Unit Award that have not yet vested (other than “Tax Distributions” as defined in Section 6.3 of the LLC Agreement) will be held in escrow by the Company or its designee in accordance with the LLC Agreement until: (i) vesting of the Incentive Units with respect to which such escrowed distributions were paid, in which case the escrowed distributions on the Incentive Units which have vested shall be promptly released from escrow and paid to the Participant; or (ii) forfeiture of the Incentive Units with respect to which such escrowed distributions were paid, in which case the escrowed distributions on the forfeited Incentive Units shall be distributed to the other members of the Company pursuant to the LLC Agreement.
(f) Relationship with LLC Agreement. All Incentive Units issued under the Plan shall be subject to the terms and conditions of the LLC Agreement, including without limitation all restrictions on Transfer of Units contained therein.
		
	6.
	Company Redemption Right.

(a) General. Upon the occurrence of a Trigger Event with respect to any Participant to whom Incentive Units have been issued under this Plan, the Company shall have the option (the “Redemption Right”) at its election to redeem and repurchase from that Participant and, if applicable, from the Participant’s transferees (collectively the “Sellers”) all or any portion of the Vested Incentive Units issued to such Participant (the “Vested Redemption Units”) on the terms and conditions set forth in this Section 6.
 
 (b) Election to Redeem. To exercise its Redemption Right, the Company must give a written notice of its election to redeem the Vested Redemption Units (a “Redemption Notice”) to the Seller (or if applicable Sellers) not later than 180 days after the Company receives written notice of the Trigger Event in question. The Redemption Notice shall specify (i) the number of Vested Redemption Units to be redeemed; (ii) the Redemption Price to be paid for those Vested Redemption Units, as 

determined under Section 6(c) below; and (iii) the closing date for the redemption, which shall be not less than 10 nor more than 30 days after the Redemption Notice is delivered to the Sellers. For purposes of this Section 6, if there is more than one Seller, delivery of the Redemption Notice to the affected Participant shall be deemed delivery of the Redemption Notice to all Sellers.
(c) Redemption Price. The price to be paid for each Vested Redemption Unit being redeemed under this Section 6 (the “Redemption Price”) shall equal the hypothetical amount that would have been distributed with respect to the Vested Redemption Unit in question under Sections 6.2 and 6.4 of the LLC Agreement (taking into account the Incentive Unit’s Strike Price) had the Company sold all of its business and assets for their fair market value (as determined by the Board in good faith) on the date of the Trigger Event, paid all of its liabilities on that date, and then distributed the remaining net proceeds from the deemed Sale of the Company to its Members in liquidation of the Company. For this purpose, the Board’s determination of fair market value of the Company’s business and assets shall conclusively be deemed to have been made in good faith if based upon an appraisal on the Company as an on-going concern obtained from a qualified independent appraiser selected by the Board.
(d) Closing of Redemption. At closing of the redemption of the Vested Redemption Units, each Seller shall sell, assign and transfer to the Company free and clear of all liens, pledges, encumbrances, options and other third-party interests, and the Company shall redeem and purchase from each Seller, all of the Seller’s right, title and interest in and to the Vested Redemption Units that the Company has timely elected to redeem. At closing:
(i) The Company shall pay to each Seller the applicable Redemption Price for Seller’s Vested Redemption Units being redeemed in the following manner. One third (1/3rd) of the Redemption Price shall be paid in cash-equivalent funds at closing. The balance of the Redemption Price shall be paid by delivery at closing of the Company’s unsecured promissory note in the principal amount of such deferred balance, which promissory note shall bear interest from the closing date at an annually compounding rate per annum equal to the “applicable federal rate” for short-term debt instruments under Code Section 1274 in effect for the month in which closing occurs. The deferred portion of the Redemption Price evidenced by the Company’s promissory note shall be paid in two equal annual installments of principal and accrued interest on each of the first and second anniversaries of the redemption closing date. The promissory note may be prepaid without penalty in whole or in part at any time.
(ii) The Sellers shall deliver to the Company such instruments of assignment, certificates representing Vested Redemption Units and other documents as the Company reasonably requests to affect the redemption. Those transfer documents shall contain such customary representations and warranties of authority, title and absence of liens and encumbrances, and otherwise be in such form, as the Company reasonably requests.
(e) Unvested Incentive Units. Nothing in this Section 6 shall be construed as affecting the forfeiture of Unvested Incentive Units or as entitling any Participant to any payment with respect to the forfeiture and cancellation of his or her Unvested Incentive Units.

		
	7.
	Sale of the Company 

The Board shall have authority to provide in any applicable Award Agreement that the vesting of otherwise Unvested Incentive Units shall be accelerated in whole or in part upon a Sale of the Company (or at such earlier time as the Board shall determine).
		
	8.
	Adjustment of Units.

In the event of a Capitalization Adjustment, the Board shall proportionately and appropriately adjust the maximum number and classes of membership units subject to the Plan pursuant to Section 3(a). The Board shall make such adjustments, and its determination shall be final, binding and conclusive.
		
	9.
	Termination or Suspension of the Plan.

(a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated by the Board pursuant to Section 2 this Plan shall continue until January 1, 2023; provided that all Incentive Units shall automatically terminate immediately after a Sale of the Company. No Unit Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
(b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Unit Award granted while the Plan is in effect except with the written consent of the affected Participant.
		
	10.
	Effective Date of Plan.

This Plan shall become effective as of January 1, 2013.

		
	11.
	Choice of Law.

The law of the State of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.
		
	12.
	Miscellaneous.

(a) Company Action Constituting Grant of Unit Awards. Unless otherwise expressly provided in the Offer Letter evidencing a Unit Award, the grant by the Company of a Unit Award to any Participant shall be deemed completed as of the date the Offer Letter evidencing the Unit Award is executed by the Participant and delivered to the chief executive officer or president of the Company.
(b) Member Rights. Subject to the terms and conditions of the LLC Agreement, each Participant shall be deemed to be a member of the Company with respect to the Incentive Units underlying the Participant’s Unit Award from the date of grant of such Unit Award.
(c) No Employment or Other Service Rights. Nothing in the Plan, any Offer Letter evidencing a Unit Award or any other instrument executed thereunder or in connection with any Unit Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company in any capacity or shall negate or otherwise affect the right of the Company “at will” to terminate (i) the employment of an Employee with or without notice and with or without cause, or (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company, as the case may be. Without limiting the foregoing, no Participant shall have any right to remain an Employee or Consultant of the Company until his or her Incentive Units wholly or partially vest or until a Sale of the Company occurs, and no Participant shall have any cause of action, claim, or right to recover damages against the Company or its members, managers, officers, employees or agents as a result of any forfeiture of Incentive Units resulting from termination of his or her Continuous Service with the Company.
 
(d) Investment Assurances. The Company may require a Participant, as a condition of acquiring any Unit Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of the underlying Incentive Units; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring the Incentive Units for the Participant’s own account and not with any present intention of selling or otherwise distributing the Incentive Units. The Company may, upon advice of counsel to the Company, place legends on Incentive Unit certificates, if any, issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Incentive Units.
(e) Withholding Obligations. To the extent provided by the terms of an Offer Letter evidencing a Unit Award, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Unit Award by any of the following means, or by a combination of such means: (i) causing the Participant to tender a cash payment; or (ii) withholding from any compensation paid to the Participant by the Company.
(f) Exemption from Section 409A. The Unit Awards granted hereunder are intended to constitute restricted property exempt from the requirements of Section 409A of the Code. The Plan and Unit Awards shall be interpreted in accordance with that intent. Notwithstanding any provision of the Plan to the contrary, in the event that the Board determines that any Unit Award may be subject to Section 409A of the Code, the Board may adopt such amendments to the Plan and the applicable Unit Award or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (1) exempt the Unit Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Unit Award, or (2) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.
(g) Section 83(b) Election. As a condition to receipt of a Unit Award, the Participant shall agree to timely file an election under Section 83(b) of the Code with respect to the Unit Award.
(h) Non-Contractual Duties. Neither the Company nor any of its members, managers, officers, employees or agents shall have any fiduciary or other non-contractual duties or obligations to Participants under or by virtue of this Plan, any Offer Letter or any Unit Awards made hereunder apart from or in excess of the limited fiduciary duties, if any, imposed on them as members, managers or officers of the Company by virtue of the LLC Agreement and the Act.
		
	13.
	Definitions.

(a) “Board” means the Board of Managers of the Company.
 
 (b) “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Incentive Units subject to the Plan or subject to any Unit Award after January 1, 2013 without the receipt of consideration by 

the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, membership unit distribution or split, combination of membership units, exchange of membership units, change in Company structure or other transaction not involving the receipt of consideration by the Company).
(c) “Code” means the Internal Revenue Code of 1986, as amended.
(d) “Company” means Pluralsight, LLC, a Nevada limited liability company.
(e) “Consultant” means any person other than an Employee who (i) is engaged by the Company to render consulting or advisory services and is compensated for such services, or (ii) serves as a member of the Board, and is compensated for such services as a manager.
(f) “Continuous Service” means that the Participant’s service with the Company, whether as an Employee or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company as an Employee or Consultant, provided that there is no interruption or termination of the Participant’s service with the Company, shall not terminate a Participant’s Continuous Service. For example, a change in status from an employee of the Company to a Consultant of the Company shall not constitute an interruption of Continuous Service. To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by the Company, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Unit Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.
(g) “Employee” means any person employed by the Company of the Company.
(h) “Incentive Units” means “Incentive Units” as defined in the LLC Agreement.
(i) “LLC Agreement” means the Amended and Restated Operating Agreement of Pluralsight, LLC dated as of December 20, 2012, as amended from time to time.
(j) “Offer Letter” means a written letter agreement, approved by the Board, between the Company and a Participant evidencing the terms and conditions of a Unit Award under the Plan.
(k) “Participant” means a Person to whom a Unit Award or Incentive Units are granted pursuant to the Plan or, if applicable, any other Person who holds as a transferee an outstanding Unit Award or Incentive Units issued under the Plan.
(l) “Person” has the meaning set forth in the LLC Agreement.
(m) “Plan” means this Pluralsight, LLC Incentive Unit Plan.
(n) “Sale of the Company” has the meaning set forth in the LLC Agreement.
(o) “Securities Act” means the Securities Act of 1933, as amended.
 
(p) “Strike Price” has the meaning set forth in Section 18.2 of the LLC Agreement.
(q) “Transfer” has the meaning set forth in the LLC Agreement.
(r) “Trigger Event” means with respect to any Participant: (i) the death or permanent disability of a Participant; (ii) the termination for any reason of the Participant’s Continuous Service with the Company; (iii) any Transfer, whether voluntary or involuntary, of the Participant’s Incentive Units in violation of the applicable Offer Letter, this Plan or the LLC Agreement, including any impermissible Transfer resulting from or in connection with a domestic relations order or proceeding, or any bankruptcy-related proceeding, order or case; and (iv) any violation by a Participant of any confidentiality agreement, covenant not to compete, covenant not to solicit or other restrictive covenant in favor of the Company.
(s) “Unit Award” means a grant of Incentive Units to a Participant under the Plan.
(t) “Unvested Incentive Units” means Incentive Units that have not yet vested under the applicable Offer Letter and are not Vested Incentive Units.
(u) “Vested Incentive Units” has the meaning set forth in Section 18.1 of the LLC Agreement.
IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized Manager effective as of the 24th day of May, 2013.
 

	
			
	 
	 
	 

	PLURALSIGHT, LLC

	 
	 

	By:
	 
	/s/ Aaron Skonnard

	Name:
	 
	Aaron Skonnard

	Title:
	 
	Manager

 

AMENDMENT NO. 1 TO
PLURALSIGHT, LLC
INCENTIVE UNIT PLAN
THIS AMENDMENT NO. 1 TO PLURALSIGHT, LLC INCENTIVE UNIT PLAN (this “Amendment”) is made and adopted effective as of the 28th day of February, 2014, by Pluralsight, LLC, a Nevada limited liability company (the “Company”).
WHEREAS, the Company maintains the Pluralsight, LLC Incentive Unit Plan (the “Plan”) for the benefit of its employees, managers and consultants; and
WHEREAS, it is necessary and desirable to amend the Plan to clarify certain provisions of the Plan; and
WHEREAS, pursuant to Section 2(b)(vi) of the, the Board of Managers of the Company (the “Board”) may amend the Plan in any respect the Board deems necessary or advisable; and
WHEREAS, the Board has approved and adopted this Amendment.
NOW, THEREFORE, the Plan is hereby amended as follows:
1. Section 3(a) of the Plan is hereby amended and restated in its entirety to read as follows:
“(a) General. Subject to Section 8 relating to Capitalization Adjustments, the aggregate number of Incentive Units that may be issued pursuant to Unit Awards under this Plan shall not exceed 9,780,243 Incentive Units.”
Except as provided above, the original terms of the Plan are hereby ratified and confirmed in all respects.
[Rest of this page intentionally left blank.]

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized officer effective as of the date first above written.
 
	
			
	 
	 
	 

	PLURALSIGHT, LLC

	 
	 

	By:
	 
	/s/ Aaron Skonnard

	Name: Aaron Skonnard

	Title: Manager

AMENDMENT NO. 2 TO
PLURALSIGHT, LLC
INCENTIVE UNIT PLAN
THIS AMENDMENT NO. 2 TO PLURALSIGHT, LLC INCENTIVE UNIT PLAN (this “Amendment”) is made and adopted effective as of the 14th day of November, 2014, by Pluralsight, LLC, a Nevada limited liability company (the “Company”).
WHEREAS, the Company maintains the Pluralsight, LLC Incentive Unit Plan (the “Plan”) for the benefit of its employees, managers and consultants; and
WHEREAS, the Plan was previously amended on February 28, 2014; and
WHEREAS, on August 28, 2014, Pluralsight Holdings, LLC, a Delaware limited liability company (“Holdings”), was formed, and direct ownership of the Company by the various members thereto was consolidated at the Holdings level, with Holdings becoming the sole member and manager of the Company, and all membership units of the Company, including incentive units in the Company, becoming incentive units of Holdings; and
WHEREAS, it is necessary and desirable to amend the Plan to provide that the Plan now applies and pertains to Holdings; and
WHEREAS, pursuant to Section 2(b)(vi) of the, the Board of Managers of the Company (the “Board”) may amend the Plan in any respect the Board deems necessary or advisable; and
WHEREAS, the Board has approved and adopted this Amendment.
NOW, THEREFORE, the Plan is hereby amended as follows:
1. The title of the Plan is amended and restated in its entirety to read “Pluralsight Holdings, LLC Incentive Unit Plan.”
2. The definition of “Company” in Section 13(d) is amended and restated in its entirety to read as follows:
“(d) ‘Company’ means Pluralsight Holdings, LLC, Delaware limited liability company.”
3. The definition of “LLC Agreement” in Section 13(i) is amended and restated in its entirety to read as follows:
“(i) ‘LLC Agreement’ means the Limited Liability Company Agreement of Pluralsight
Holdings, LLC dated as of September 18, 2014, as amended from time to time.”
4. The definition of “Plan” in Section 13(m) is amended and restated in its entirety to read as follows:
“(m) ‘Plan’ means this Pluralsight Holdings, LLC Incentive Unit Plan.”
5. For the avoidance of doubt, it is the intention of the Company that, as the result of the foregoing amendments, all references to the “Company” contained in the Plan shall be deemed to refer to Holdings, and all incentive units in the Company previously issued under the Plan will continue as incentive units in Holdings under the Plan. By its signature below, Holdings hereby assumes the Plan going forward.

Except as provided above, the original terms of the Plan are hereby ratified and confirmed in all respects.
[Rest of this page intentionally left blank.]

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized officer effective as of the date first above written.
 
	
			
	 
	 
	 

	PLURALSIGHT, LLC

	 
	 

	By:
	 
	Pluralsight Holdings, LLC,
a Delaware limited liability company

	Its:
	 
	Manager

	 
	 

	By:
	 
	/s/ Aaron Skonnard

	Name: Aaron Skonnard

	Title: Manager

 
	
			
	 
	 
	 

	ACKNOWLEDGED AND AGREED TO
AS OF THE DATE FIRST ABOVE WRITTEN:

	 

	PLURALSIGHT HOLDINGS, LLC

	 
	 

	By:
	 
	/s/ Aaron Skonnard

	Name: Aaron Skonnard

	Title: Manager

Second Amendment to Incentive Unit Plan (Pluralsight Holdings, LLC)

AMENDMENT NO. 3 TO
PLURALSIGHT, LLC
INCENTIVE UNIT PLAN
THIS AMENDMENT NO. 3 TO PLURALSIGHT, LLC INCENTIVE UNIT PLAN (this “Amendment”) is made and adopted effective as of April 30, 2019, by Pluralsight, Inc., a Delaware corporation (the “Company”).
WHEREAS, the Company maintains the Pluralsight, LLC Incentive Unit Plan (the “Plan”) for the benefit of its employees, managers and consultants; and
WHEREAS, it is necessary and desirable to amend the Plan to provide certain vesting acceleration benefits upon a Participant’s death; and
WHEREAS, pursuant to Section 2(b)(vi) of the Plan, the Board of Managers of the Company (the “Board”) may amend the Plan in any respect the Board deems necessary or advisable; and
WHEREAS, the Board has approved and adopted this Amendment.
NOW, THEREFORE, the Plan is hereby amended as follows:
1. Section 5(g) is hereby inserted into the Plan, which reads as follows: 
“(g) Death Acceleration Benefit. Upon a Participant’s death, Participant’s outstanding and unvested Incentive Units subject to a Unit Award will accelerate and fully vest; provided that the aggregate Fair Market Value (as such term is defined in the Pluralsight, Inc. 2018 Equity Incentive Plan, as amended (the “2018 Plan”) of the Incentive Units covered by Unit Awards that may accelerate and fully vest pursuant to this Section 5(g) and the shares and other securities covered by Pluralsight, Inc. equity awards issued under other equity plans and arrangements (collectively, the “Eligible Awards”) that may accelerate and vest pursuant to comparable provisions in such other equity plans and arrangements may not exceed $3,000,000 in the aggregate (the “Death Benefit Limit”).  The order in which Eligible Awards will accelerate and vest up to the Death Benefit Limit will be determined as follows: (a) Eligible Awards will accelerate and apply toward the Death Benefit Limit based on their class (determined in reverse alphabetical order) and then in the following order: (1) Restricted Stock, (2) Restricted Stock Units, and (3) Stock Options and Stock Appreciation Rights (as such terms are defined in the 2018 Plan), and (b) with respect to Eligible Awards of the same class, awards with an earlier date of grant will accelerate and apply toward the Death Benefit Limit prior to Eligible Awards with a later date of grant.  If two or more Eligible Awards are granted on the same date, each Eligible Award will accelerate and vest on a pro-rata basis.  For the avoidance of doubt, the acceleration described in this Section 5(g) does not apply to any Eligible Awards with performance-based vesting. Notwithstanding anything in this Section 5(g) to the contrary, in the event a Participant’s death results from a suicide, the acceleration and vesting described in this Section 5(g) will be solely at the Company’s discretion and will not occur automatically.”
Except as provided above, the original terms of the Plan are hereby ratified and confirmed in all respects.
[Rest of this page intentionally left blank.]

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by its duly authorized officer effective as of the date first above written.
 

	
			
	 
	 
	 

	PLURALSIGHT, LLC

	 
	 

	By:
	 
	Pluralsight Holdings, LLC,
a Delaware limited liability company

	Its:
	 
	Manager

	 
	 

	By:
	 
	/s/ Matthew Forkner

	Name: Matthew Forkner

	Title: General Counsel

 
	
			
	 
	 
	 

	ACKNOWLEDGED AND AGREED TO
AS OF THE DATE FIRST ABOVE WRITTEN:

	 

	PLURALSIGHT HOLDINGS, LLC

	 
	 

	By:
	 
	/s/ Matthew Forkner

	Name: Matthew Forkner

	Title: General Counsel

	PLURALSIGHT INC.

	 
	 

	By:
	 
	/s/ Matthew Forkner

	Name: Matthew Forkner

	Title: General Counsel

Third Amendment to Incentive Unit Plan (Pluralsight Holdings, LLC)

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