Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of May 3, 2018, between Second Sight Medical Products,
Inc., a California corporation (the “Company”), and each purchaser identified on Exhibit A hereto (each,
including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

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

 

WHEREAS,
the Company has authorized, upon the terms and conditions stated in this Agreement, the sale and issuance of an aggregate of 6,756,757
shares of the Company’s common stock, no par value (the “Common Stock”);
and

 

WHEREAS,
at the Closing (as hereinafter defined), each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes
to sell, upon the terms and conditions stated in this Agreement, that number of shares of Common Stock as disclosed on Exhibit
A hereto.

 

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
                                         1

                                         DEFINITIONS

 

		1.1	Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“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.

 

“Agreement”
shall have the meaning ascribed to such term in the preamble.

 

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

 

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

 

    1

     

    

 

“Change
of Control Transaction” means (i) the acquisition of the Company by another entity by means of any transaction or series
of related transactions to which the Company is a party (including, without limitation, any stock acquisition, reorganization,
merger or consolidation but excluding any sale of stock for capital raising purposes and any transaction or series of related
transactions the sole purpose of which is to change the state of the Company’s incorporation) other than a transaction or
series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such
transaction or series of related transactions retain, immediately after such transaction or series of related transactions, as
a result of shares in the Company held by such holders prior to such transaction or series of related transactions, at least a
majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or
resulting entity (or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following
such acquisition, its parent); or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company
and its subsidiaries taken as a whole.

 

“Closing”
shall have the meaning ascribed to such term in Section 2.2.

 

“Closing
Date” shall have the meaning ascribed to such term in Section 2.2.

 

“Commission”
and/or “SEC” means the United States Securities and Exchange Commission.

 

“Common
Stock” shall have the meaning ascribed to such term in the preamble.

 

“Company”
shall have the meaning ascribed to such term in the preamble.

 

“Derivative
Transaction” shall have the meaning ascribed to such term in Section 4.2(b).

 

“Effective
Date” means the date that a Registration Statement is first declared effective by the SEC.

 

“Environmental
Laws” shall have the meaning ascribed to such term in Section 3.16.

 

“ERISA”
shall have the meaning ascribed to such term in Section 3.17.

 

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

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.8.

 

“Intellectual
Property” means (i) worldwide patents, patent applications, invention disclosures and other rights of invention, filed
with any governmental authority, and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part
thereof and all reexamined patents or other applications or patents claiming the benefit of the filing date of any of the foregoing;
(ii) worldwide (A) registered trademarks and service marks and registrations and applications for such registrations, and (B)
unregistered trademarks and service marks, trade names, fictitious business names, corporate names, trade dress, logos, product
names and slogans, including any common law rights; in each case together with the goodwill associated therewith; (iii) worldwide
(A) registered copyrights in published or unpublished works, mask work rights and similar rights, including rights created under
Sections 901-914 of Title 17 of the United States Code, mask work registrations, and copyright applications for registration,
including any renewals thereof, and (B) any unregistered copyrightable works and other rights of authorship in published or unpublished
works; (iv) worldwide (A) internet domain names; (B) website content; (C) telephone numbers; and (D) moral rights and publicity
rights; (v) any computer program or other software (irrespective of the type of hardware for which it is intended), including
firmware and other software embedded in hardware devices, whether in the form of source code, assembly code, script, interpreted
language, instruction sets or binary or object code (including compiled and executable programs), including any library, component
or module of any of the foregoing, including, in the case of source code, any related images, videos, icons, audio or other multimedia
data or files, data files, and header, development or compilations tools, scripts, and files, and (vi) worldwide confidential
or proprietary information or trade secrets, including technical information, inventions and discoveries (whether or not patentable
and whether or not reduced to practice) and improvements thereto, know-how, processes, discoveries, developments, designs, techniques,
plans, schematics, drawings, formulae, preparations, assays, surface coatings, diagnostic systems and methods, patterns, compilations,
databases, database schemas, specifications, technical data, inventions, concepts, ideas, devices, methods, and processes; and
includes any rights to exclude others from using or appropriating any Intellectual Property rights, including the rights to sue
for or assets claims against and remedies against past, present or future infringements or misappropriations of any or all of
the foregoing and rights of priority and protection of interests therein, and any other proprietary, intellectual property or
other rights relating to any or all of the foregoing anywhere in the world.

 

    2

     

    

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 5.1(c).

 

“Losses”
means 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.

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company taken as a whole, or (ii) the ability of the Company to perform its obligations
under the Transaction Documents.

 

“NASDAQ”
means The NASDAQ Capital Market, LLC.

 

“Occupational
Laws” shall have the meaning ascribed to such term in Section 3.17.

 

“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.

 

“Price
Per Share” shall have the meaning ascribed to such term in Section 2.1.

 

“Principal
Purchasers” means, as of any time, the Purchaser or Purchasers holding or having the right to acquire, as of such time,
at least a majority-in-interest of the total number of Shares.

 

“Principal
Trading Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

 

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

 

“Prohibited
Transfers” shall have the meaning ascribed to such term in Section 5.7.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 5.7.

 

“Purchasers”
shall have the meaning ascribed to such term in the preamble.

 

“Rule
144,” “Rule 415,” and “Rule 424” means Rule 144, Rule 415 and Rule 424, respectively,
promulgated by the Commission pursuant to the Securities Act, as such Rules may be amended from time to time, or any similar rule
or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.7.

 

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

 

“Shares”
or “Securities” means the shares of Common Stock purchased and sold under this Agreement.

 

“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 NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, or the
New York Stock Exchange (or any successors to any of the foregoing).

 

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

 

“Transfer”
means (i) to sell, offer, transfer, assign, mortgage, hypothecate, gift, pledge or dispose of, or (ii) to enter into or agree
to enter into any contract, option or other arrangement or understanding with respect to any sale, transfer, pledge, mortgage,
hypothecation, gift, assignment or similar disposition.

 

“Transfer
Agent” means VStock Transfer, LLC., the current transfer agent of the Company, and any successor transfer agent of the
Company.

 

“Voting
Commitment” shall have the meaning ascribed to such term in Section 4.2.

 

ARTICLE
                            2

                            PURCHASE AND SALE

 

2.1   Purchase
and Sale. Subject to and upon the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue
and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, such number of Shares
set forth opposite their respective names on Exhibit A, at a price per Share equal to $1.48 (the “Price Per Share”
and the total purchase price for the Shares, the “Shares Purchase Price”).

 

2.2   Closing.
The Company agrees to issue and sell to the Purchasers and, in consideration of and in express reliance upon the representations,
warranties, covenants, terms and conditions of this Agreement, the Purchasers agree, severally and not jointly, to purchase the
Shares. The closing of the purchase and sale of the Shares (the “Closing”) shall take place at the offices
of the Company located at 12744 San Fernando Road, Suite 400, Sylmar, California 91342, three Business Days following the satisfaction
or waiver of the conditions set forth in Section 2.5, or at such other time and place or on such date as the Principal
Purchasers and the Company may agree upon (such date is hereinafter referred to as the “Closing Date”).

 

2.3   Payment.
On the Closing Date, (a) each Purchaser shall pay to the Company its Shares Purchase Price in United States dollars and in immediately
available funds, by wire transfer to the Company’s account as set forth in instructions previously delivered to each Purchaser,
(b) the Company shall irrevocably instruct the Transfer Agent to deliver to each Purchaser, on an expedited basis, a certificate
evidencing the number of Shares set forth opposite such Purchaser’s name on Exhibit A, and in the case of clause
(b), duly executed on behalf of the Company and registered in the name of such Purchaser as set forth on the Stock Certificate
Questionnaire included as Exhibit B.

 

2.4   Deliveries.

 

(a)           Company.
Except for the delayed delivery contemplated by Sections 2.4(a)(iii), 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
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver to such Purchaser, on an
expedited basis, a certificate evidencing the number of Shares set forth opposite such Purchaser’s name on Exhibit A
hereto, registered in the name of such Purchaser as set forth on the Stock Certificate Questionnaire included as Exhibit
B;

 

(iii)          the
Company shall have delivered a Certificate, executed on behalf of the Company by its Chief Executive Officer and its Chief Financial
Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in subsections (i), (ii), (iv),
(v), (vi), (vii) and (viii) of Section 2.5(b);

 

(iv)          the
Company shall have delivered a Certificate, executed on behalf of the Company by its Secretary, dated as of the Closing Date,
certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated by the Transaction
Documents and the issuance of the Securities, certifying the current versions of the Articles of Incorporation and Bylaws of the
Company and certifying as to the signatures and authority of Persons signing the Transaction Documents and related documents on
behalf of the Company; and

 

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(v)           any
required NASDAQ notification form.

 

(b)           Purchasers.
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)           a
fully completed and duly executed Stock Certificate Questionnaire in the form attached hereto as Exhibit B; and

 

(iii)          a
fully completed and duly executed Accredited Investor Qualification Questionnaire in the form attached hereto as Exhibit C;

 

(iv)          the
Shares Purchase Price by wire transfer to the account specified by the Company.

 

2.5   Closing
Conditions.

 

(a)           The
obligations of the Company hereunder, with respect to any Purchaser 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 such Purchaser 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 such Purchaser required to be performed at or prior to the Closing Date shall have been
performed in all material respects;

 

(iii)          the
delivery by such Purchaser of the items set forth in Section 2.4(b) of this Agreement; and

 

(iv)          NASDAQ
shall have raised no objection to the consummation of the transactions contemplated by the Transaction Documents in the absence
of stockholder approval of such transactions.

 

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

 

(i)            the
representations and warranties made by the Company in ARTICLE 3 hereof shall be true and correct as of the date hereof
and the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which
case such representation or warranty shall be true and correct as of such earlier date;

 

(ii)           all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date, whether under this
Agreement or the other Transaction Documents, shall have been performed in all material respects;

 

(iii)          the
delivery by the Company of the items set forth in Section 2.4(a) of this Agreement;

 

(iv)          the
Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation
of the purchase and sale of the Shares and the consummation of the other transactions contemplated by the Transaction Documents,
all of which shall be in full force and effect, except for such that could not reasonably be expected to have a Material Adverse
Effect;

 

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(v)           no
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby
or in the other Transaction Documents;

 

(vi)          no
stop order or suspension of trading shall have been imposed by NASDAQ, the Commission or any other governmental or regulatory
body with respect to public trading in the Common Stock;

 

(vii)         NASDAQ
shall have raised no objection to the consummation of the transactions contemplated by the Transaction Documents in the absence
of stockholder approval of such transactions;

 

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

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

 

The
Company hereby represents and warrants to the Purchasers that, except as otherwise disclosed to the Purchasers or as disclosed
in the SEC Reports:

 

3.1   Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business
as now conducted and to own its properties. The Company is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification
or leasing necessary unless the failure to so qualify has not had and could not reasonably be expected to have a Material Adverse
Effect.

 

3.2   Authorization;
Enforcement. The Company has all corporate right, power and authority to enter into the Transaction Documents and to consummate
the transactions contemplated hereby and thereby. All corporate action on the part of the Company, its directors and stockholders
necessary for the authorization, execution, delivery and performance of the Transaction Documents by the Company, the authorization,
sale, issuance and delivery of the Securities contemplated herein and the performance of the Company’s obligations hereunder
and thereunder has been taken. The Transaction Documents have been (or upon delivery will have been) duly executed and delivered
by the Company and constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance
with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

3.3   Capitalization.
The authorized capital stock of the Company consists of (i) 10,000,000 shares of undesignated preferred stock, no par value per
share, of which none is outstanding and (ii) 200,000,000 shares of common stock, no par value per share, of which 59,875,717 shares
are outstanding as of April 25, 2018. All of the issued and outstanding shares of the Company’s capital stock have been
duly authorized and validly issued and are fully paid and nonassessable. Except (i) for options to purchase Common Stock or other
equity awards (including restricted stock units) issued to employees and members of the Board of Directors pursuant to the equity
compensation plans or arrangements disclosed in the SEC Reports, (ii) shares of capital stock issuable and reserved for issuance
pursuant to securities exercisable for, or convertible into or exchangeable for any shares of capital stock of the Company disclosed
in the SEC Reports, and (iii) as contemplated by this Agreement, there are no existing options, warrants, calls, preemptive (or
similar) rights, subscriptions or other rights, agreements, arrangements or commitments of any character obligating the Company
to issue, transfer or sell, or cause to be issued, transferred or sold, any shares of the capital stock of, or other equity interests
in, the Company or any securities convertible into or exchangeable for such shares of capital stock or other equity interests,
and there are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of its
capital stock or other equity interests. The issue and sale of the Shares will not result in the right of any holder of Company
securities to adjust the exercise, conversion or exchange price under such securities.

 

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3.4   Issuance;
Reservation of Shares. The issuance of the Shares has been duly and validly authorized by all necessary corporate actions,
and the Shares, when issued and paid for pursuant to this Agreement, will be validly issued, fully paid and non-assessable, and
shall be free and clear of all encumbrances and restrictions (other than as provided in the Transaction Documents).

 

3.5   No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of
the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute
a default under (i) the Company’s Articles of Incorporation or the Company’s Bylaws, both as in effect on the date
hereof (true and complete copies of which have been made available to the Purchasers through the EDGAR system), (ii) any statute,
rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company
or any of its respective assets or properties, or (iii) any material agreement or instrument to which the Company is a party or
by which the Company is bound or to which any of their respective assets or properties is subject, in each case except for any
such conflict, breach, violation or default that would not reasonably be expected to have a Material Adverse Effect.

 

3.6   Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than filings
that have been made, or will be made, or consents that have been obtained, or will be obtained, pursuant to the rules and regulations
of NASDAQ, including applicable state securities laws and post-sale filings pursuant to applicable state and federal securities
laws which the Company undertakes to file or obtain within the applicable time periods.

 

3.7   SEC
Reports. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company
under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, since November
18, 2014 (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively
referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC
Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, 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. The Company has not received any letters of comment from the staff of the Commission that have not
been satisfactorily resolved as of the date hereof.

 

3.8   Financial
Statements. 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 (“GAAP”),
applied on a consistent basis during the periods involved, 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 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.

 

3.9   Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i)
there has been no event, occurrence or development that has had or that could reasonably be expected to have 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 not 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 or changed its principal registered public accounting firm, (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, except
pursuant to existing Company equity compensation plans. The Company does not have pending before the Commission any request for
confidential treatment of information.

 

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3.10  Internal Controls; Disclosure Controls. The Company maintains 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 and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with the existing
assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences. The Company is
in compliance in all material respects with all of the provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it
as of the Closing Date. The Company has established disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
and 15d-15(e) under the Exchange Act) for the Company 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 Company’s disclosure controls and procedures as of the end of the period covered
by the Company’s most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act 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 Company’s internal control over financial reporting (as such term
is defined in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

 

3.11  Accountant. To the Company’s knowledge, Gumbiner Savett Inc., which has expressed its opinion with respect to the
Company’s financial statements as of December 31, 2017 and 2016, respectively, and included in the SEC Reports (including
the related notes), is an independent registered public accounting firm as required by the Act and the Public Company Accounting
Oversight Board (United States). Gumbiner Savett Inc. have not been engaged by the Company to perform any “prohibited activities”
(as defined in Section 10A of the Exchange Act).

 

3.12  Litigation. There is not pending or, to the knowledge of the Company, threatened or contemplated, any action, suit or proceeding
to which the Company is a party or of which any property or assets of the Company is the subject before or by any court or governmental
agency, authority or body, or any arbitrator, which, individually or in the aggregate, could reasonably be expected to result
in any Material Adverse Effect. There are no current or pending legal, governmental or regulatory actions, suits or proceedings
that are required to be described in the SEC Reports that have not been so described.

 

3.13  Tax Matters. The Company has filed all federal, state, local and foreign income and franchise tax returns required to be
filed or has requested extensions thereof (except in any case in which the failure so to file would not have a Material Adverse
Effect), except as set forth in the SEC Reports and has paid all taxes required to be paid by it and any other assessment, fine
or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such assessment, fine
or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect, except as set forth
in or contemplated in the SEC Reports.

 

3.14  Insurance. The Company maintains in full force and effect insurance coverage that is customary for comparably situated
companies for the business being conducted and properties owned or leased by the Company, and the Company reasonably believes
such insurance coverage to be adequate against all liabilities, claims and risks against which it is customary for comparably
situated companies to insure. The Company is not aware of any fact or matter which would lead to any such insurance being vitiated
or repudiated, there is no material claim pending or outstanding and all premiums in respect of such insurances are duly paid.

 

3.15  Environmental Matters. The Company (A) is in compliance in with any and all applicable federal, state, local and foreign
laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (B) has received
and is in compliance with all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct
its business; and (C) has not received notice of any actual or potential liability for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except in any such case for any such
failure to comply, or failure to receive required permits, licenses or approvals, or liability as would not, individually or in
the aggregate, have a Material Adverse Effect.

 

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3.16  Labor Relations. The Company (A) is in compliance with any and all applicable foreign, federal, state and local laws, rules,
regulations, treaties, statutes and codes promulgated by any and all governmental authorities (including pursuant to the Occupational
Health and Safety Act) relating to the protection of human health and safety in the workplace (“Occupational Laws”);
(B) has received permits, licenses or other approvals required of it under applicable Occupational Laws to conduct their business
as currently conducted; and (C) is in compliance with all terms and conditions of such permits, licenses or approvals, except
in any such case as would not have a Material Adverse Effect. No action, proceeding, revocation proceeding, writ, injunction or
claim is pending or, to the Company’s knowledge, threatened against the Company relating to Occupational Laws, and the Company
does not have knowledge of any material facts, circumstances or developments relating to its operations or cost accounting practices
that could reasonably be expected to form the basis for or give rise to such actions, suits, investigations or proceedings. Each
employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former employees of
the Company and has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders,
rules and regulations, including but not limited to, ERISA and the Internal Revenue Code of 1986, as amended (the “Code”).
No prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to
any such plan excluding transactions effected pursuant to a statutory or administrative exemption; and for each such plan that
is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency”
as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each
such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under
such plan determined using reasonable actuarial assumptions.

 

3.17  Certificates, Authorities and Permits. The Company holds, and is operating in compliance with, all registrations, approvals,
certificates, authorizations and permits of any governmental authority or self-regulatory body required for the conduct of its
business as described in the SEC Reports, including without limitation, all such registrations, approvals, certificates, authorizations
and permits required by the FDA or any other federal, state, local or foreign agencies or bodies engaged in the regulation of
pharmaceuticals or biohazardous substances or materials; and the Company has not received notice of any revocation or modification
of any such registration, approval, certificate, authorization and permit or has reason to believe that any such registration,
approval, certificate, authorization and permit will not be renewed in the ordinary course that could lead to, the withdrawal,
revocation, suspension, modification or termination of any such registration, approval, certificate, authorization or permit,
which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could result in a Material Adverse
Effect.

 

3.18  Title to Assets. The Company has good and marketable title to all property (whether real or personal) described in the
SEC Reports as being owned by it, in each case free and clear of all liens, claims, security interests, other encumbrances or
defects except as described in the SEC Reports, and except those that could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. The property held under lease by the Company is held under valid, subsisting and
enforceable leases with only such exceptions with respect to any particular lease as do not interfere in any material respect
with the conduct of the business of the Company.

 

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3.19  Intellectual Property. The Company, to its knowledge, owns, possesses, or can acquire on reasonable terms, all Intellectual
Property necessary for the conduct of its business as now conducted or as described in the SEC Reports to be conducted in all
material respects. Except as set forth in the SEC Reports, (A) to the knowledge of the Company, there is no infringement, misappropriation
or violation by third parties of any such Intellectual Property (B) there is no pending or, to the knowledge of the Company, threatened
action, suit, proceeding or claim by others challenging the Company’s rights in or to any such Intellectual Property, and
the Company is unaware of any material facts which would form a reasonable basis for any such claim; (C) the Intellectual Property
owned by the Company, and to the knowledge of the Company, the Intellectual Property licensed to the Company, have not been adjudged
invalid or unenforceable, in whole or in part, and there is no pending or threatened action, suit, proceeding or claim by others
challenging the validity or scope of any such Intellectual Property, and the Company is unaware of any material facts which would
form a reasonable basis for any such claim; (D) to the Company’s knowledge, there is no pending or threatened action, suit,
proceeding or claim by others that the Company infringes, misappropriates or otherwise violates any Intellectual Property or other
proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of any
other material fact which would form a reasonable basis for any such claim; and (E) to the Company’s knowledge, no Company
employee is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject
to any judgment, decree or order of any court or administrative agency, that would interfere with the use of such employee’s
best efforts to promote the interest of the Company or that would conflict with the Company’s business; none of the execution
and delivery of this Agreement, the carrying on of the Company’s business by the employees of the Company, and the conduct
of the Company’s business as proposed, will conflict with or result in a breach of terms, conditions, or provisions of,
or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated; and it is
not and will not be necessary to use any inventions, trade secrets or proprietary information of any of its consultants, or its
employees (or Persons it currently intends to hire) made prior to their employment by the Company, except for technology that
is licensed to or owned by the Company.

 

3.20  Compliance with NASDAQ Continued Listing Requirements. The Company is and has no reason to believe that it will not, upon
the issuance of the Securities hereunder, continue to be, in compliance with the listing and maintenance requirements for continued
listing on NASDAQ. Assuming the representations and warranties of the Purchasers set forth in Section 4.2 are true and
correct in all material respects, the consummation of the transactions contemplated by the Transaction Documents does not contravene
the rules and regulations of NASDAQ. There are no proceedings pending or, to the Company’s knowledge, threatened against
the Company relating to the continued listing of the Common Stock on NASDAQ and the Company has not received any notice of, nor
to the Company’s knowledge is there any basis for, the delisting of the Common Stock from NASDAQ.

 

3.21  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 articles of incorporation (or similar charter
documents) or the laws of its state of incorporation that would prevent the Purchasers or the Company from fulfilling their obligations
or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance
of the Securities and the Purchasers’ ownership of the Securities.

 

3.22  Fees. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company, and no Purchaser shall have any obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 3.22
that may be due in connection with the transactions contemplated by the Transaction Documents.

 

3.23  No Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted
any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale
of any of the Securities.

 

3.24  No Integrated Offering. 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 Company security or solicited any offers to buy any security, under circumstances
that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the transactions
contemplated hereby or would require registration of the Shares under the Securities Act.

 

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

 

3.26  Investment Company. The Company is not and, after giving effect to the offering and sale of the Securities, will not be
an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended.

 

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3.27  Foreign Corrupt Practices. The Company, nor, to the best knowledge of the Company, any director, officer, agent, employee
or other Person associated with or acting on behalf of the Company has (A) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity; (B) made any direct or indirect unlawful payment
to any foreign or domestic government official or employee from corporate funds; (C) violated or is in violation of any provision
of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable non-U.S. anti-bribery Law; or (D) made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment.

 

3.28  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.

 

3.29  Disclosure. No representation or warranty by the Company in this Agreement and no statement contained in the SEC Reports
or any certificate or other document furnished or to be furnished to the Purchasers pursuant to this Agreement contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein, in
light of the circumstances under which they were made, not misleading.

 

	ARTICLE
    4 

    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):

 

4.1   Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate or, if such Purchaser is not a corporation, such 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.

 

4.2   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 under the Securities Act. Such Purchaser is not a broker-dealer registered under Section
15 of the Exchange Act. Such Purchaser is acting alone in its determination as to whether to invest in the Securities. Such Purchaser
is not a party to any voting agreements or similar arrangements with respect to the Securities. Except as expressly disclosed
in a Schedule 13D or Schedule 13G (or amendments thereto) filed by such Purchaser with the Commission with respect to the beneficial
ownership of the Company’s Common Stock, such Purchaser is not a member of a partnership, limited partnership, syndicate,
or other group for the purpose of acquiring, holding, voting or disposing of the Securities. Each Purchaser represents and warrants
that it (i) is not and will not become a party to (A) any agreement, arrangement or understanding with, and has not given any
commitment or assurance to, any Person as to how such Person, if serving as a director or if elected as a director of the Corporation,
will act or vote on any issue or question (a “Voting Commitment”) or (B) any Voting Commitment that could limit
or interfere with such Person’s ability to comply, if serving as or elected as a director of the Company, with such Person’s
fiduciary duties under applicable law; (ii) is not and will not become a party to any agreement, arrangement or understanding
with any Person other than the corporation with respect to any direct or indirect compensation, reimbursement or indemnification
in connection with service or action as a director of the Company.

 

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Purchaser
hereby represents that neither it nor any of its Rule 506(d) Related Parties is a “bad actor” within the meaning of
Rule 506(d) promulgated under the Securities Act. For purposes of this Agreement, “Rule 506(d) Related Party” shall
mean a person or entity covered by the “Bad Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

Each
Purchaser has disclosed in writing to the Company a description of all Derivative Transactions (as defined below) by each such
Purchaser in effect as of the date hereof, including the date of the transactions and the class, series and number of securities
involved in, and the material economic terms of, such Derivative Transactions. For purposes of this Agreement, a “Derivative
Transaction” means any agreement, arrangement, interest or understanding entered into by, or on behalf or for the benefit
of, any Purchaser or any of its affiliates or associates, whether record or beneficial: (w) the value of which is derived in whole
or in part from the value of any class or series of shares or other securities of the Company, (x) which otherwise provides any
direct or indirect opportunity to gain or share in any gain derived from a change in the value of securities of the Company, (y)
the effect or intent of which is to mitigate loss, manage risk or benefit of security value or price changes, or (z) which provides
the right to vote or increase or decrease the voting power of, such Purchaser, or any of its affiliates or associates, with respect
to any securities of the Company, which agreement, arrangement, interest or understanding may include, without limitation, any
option, warrant, debt position, note, bond, convertible security, swap, stock appreciation right, short position, profit interest,
hedge, right to dividends, voting agreement, performance-related fee or arrangement to borrow or lend shares (whether or not subject
to payment, settlement, exercise or conversion in any such class or series), and any proportionate interest of such Purchaser
in the securities of the Company held by any general or limited partnership, or any limited liability company, of which such Purchaser
is, directly or indirectly, a general partner or managing member.

 

4.3   General
Solicitation; Pre-Existing Relationship. 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. Such Purchaser
had a prior substantial pre-existing relationship with the Company. 

 

4.4   Purchase
Entirely for Own Account. The Securities to be received by such Purchaser hereunder will be acquired for such Purchaser’s
own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the
Securities Act, and such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing
the same in violation of the Securities Act without prejudice, however, to such Purchaser’s right at all times to sell or
otherwise dispose of all or any part of such Securities in compliance with applicable federal and state securities laws. Nothing
contained herein shall be deemed a representation or warranty by such Purchaser to hold the Securities for any period of time.

 

4.5   Adequate
Information; No Reliance. Such Purchaser acknowledges and agrees that (a) such Purchaser has been furnished with all materials
it considers relevant to making an investment decision to enter into this Agreement and has had the opportunity to review (and
has carefully reviewed) (i) the SEC Reports and (ii) this Agreement (including the exhibits thereto), (b) such Purchaser has had
a full opportunity to ask questions of the Company concerning the Company, its business, operations, financial performance, financial
condition and prospects, and the terms and conditions of this Agreement, and to obtain from the Company any information that it
considers necessary in making an informed investment decision and to verify the accuracy of the information set forth in the SEC
Reports, (c) such Purchaser has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able
to evaluate the risks involved in the transactions contemplated by this Agreement and to make an informed investment decision
with respect to such transactions, (d) such Purchaser is not relying, and has not relied, upon any statement, advice (whether
accounting, tax, financial, legal or other), representation or warranty made by the Company or any of its affiliates or representatives
or any other entity or person, except for (A) the SEC Reports, and (B) the representations and warranties made by the Company
in this Agreement, (e) no statement or written material contrary to the SEC Reports has been made or given to such Purchaser by
or on behalf of the Company, and (f) such Purchaser is able to fend for itself with respect to this Agreement, has such knowledge
and experience in financial and business matters as to be capable of evaluating the merits and risks of the prospective investment
in the shares of Common Stock and has the ability to bear the economic risks of its investment and can afford the complete loss
of such investment. 

 

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4.6   Disclosure
of Information. Such Purchaser has had an opportunity to receive all information related to the Company requested by it and
to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the
offering of the Securities. Such Purchaser acknowledges receipt of copies of the SEC Reports (or access thereto via EDGAR). Neither
such inquiries nor any other due diligence investigation conducted by such Purchaser shall modify, limit or otherwise affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement. 

 

4.7   Restricted
Securities. Such Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act and may not be offered, resold, pledged or otherwise transferred except (i) pursuant to an exemption
from registration under the Securities Act or pursuant to an effective registration statement in compliance with Section 5 under
the Securities Act and (ii) in accordance with all applicable securities laws of the states of the United States and other jurisdictions.

 

4.8   Commissions.
No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim
against the Company or upon any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of such Purchaser.

 

4.9   Accuracy
of Accredited Investor Qualification Questionnaire. The Accredited Investor Questionnaire delivered by such Purchaser in connection
with this Agreement is complete and accurate in all respects as of the date of this Agreement, and such Accredited Investor Questionnaire
delivered to the Company by such Purchaser will each be complete and accurate as of the Closing Date and the effective date of
the Registration Statement; provided, that such Purchaser shall be entitled to update such information by providing written notice
thereof to the Company. 

 

The
Company acknowledges and agrees that the representations contained in ARTICLE 4 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby. 

 

ARTICLE
5

 

OTHER
AGREEMENTS OF THE PARTIES

 

5.1   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 under the Securities Act or Rule 144,
to the Company or to an Affiliate of a Purchaser, 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.

 

(b)
The Purchasers agree to the imprinting, so long as is required by this Section 5.1, of a legend on any of the Securities
in substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED,
SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR QUALIFICATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE COMPANY MAY REQUIRE AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTIONS
SET FORTH HEREIN AND IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF MAY 3, 2018, AND AS AMENDED FROM TIME TO TIME, COPIES OF
WHICH ARE AVAILABLE WITH THE SECRETARY OF THE COMPANY.

 

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(c)
Certificates evidencing the Shares shall not contain any legend (including the legend set forth in Section 5.1(b) hereof),
(i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under
the Securities Act, (ii) following any sale of such Shares pursuant to Rule 144, (iii) if such Shares are eligible for sale under
Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule
144 as to such Shares and without volume or manner-of-sale restrictions, or (iv) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission).
Upon request by any Purchaser, following such time as a legend is no longer required under this Section 5.1(c), the Company
shall cause its counsel to issue a legal opinion to the Transfer Agent (if required by the Transfer Agent) to effect the removal
of the legend hereunder from any Shares. The Company agrees that following such time as a legend is no longer required under this
Section 5.1(c), it will, no later than three Trading Days following the delivery by a Purchaser to the Company or the Transfer
Agent of a certificate representing Shares issued with a restrictive legend (such third Trading Day, the “Legend Removal
Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from
all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent
that enlarge the restrictions on transfer set forth in this Section 5.1(c).

 

5.2   Furnishing
of Information; Public Information. Until the time that no Purchaser owns Securities, the Company covenants to maintain the
registration of the Common Stock under Section 12(b) of the Exchange Act and to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act.

 

5.3   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 NASDAQ such that it would require shareholder approval prior to the
closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. The
Purchasers shall take no action to become a group such that any transactions contemplated by this Agreement would require shareholder
approval prior to Closing.

 

5.4   Securities Laws Disclosure; Publicity. The Company shall (a) by 4:15 p.m. (New York City time) on or before the second
Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission
within the time required by the Exchange Act. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in this
Section 5.4, such Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction
(including the existence and terms of this transaction), except that such Purchaser may disclose the terms to its financial, accounting,
legal and other advisors.

 

5.5   Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for funding operations or for
working capital or other general corporate purposes.

 

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5.6   Indemnification
of Purchasers. Subject to the provisions of this Section 5.6, the Company will indemnify and hold each Purchaser and
its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling Persons (each, a “Purchaser Party”)
harmless from any and all Losses 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 Parties, 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 Parties may have with any such
stockholder or any violations by such Purchaser Parties of state or federal securities laws or any conduct by such Purchaser Parties
which constitutes fraud, gross negligence, willful misconduct or malfeasance of such Purchaser Party). If any action shall be
brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party
shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel
of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense
of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in
writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in
such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement
(y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of 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 5.6 shall be made
by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or
are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser
Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

5.7   Post-Investment
Lock-Up. During the period commencing on the Effective Date and ending on the earlier of (i) six (6) months following the
Effective Date or (ii) immediately prior to a Change of Control Transaction, no Purchaser shall, without the approval of the Board,
directly or indirectly, (i) Transfer any of the Shares (other than (A) any Transfer to an Affiliate of such Holder, subject to
the Transfer Conditions, or (B) to the Company or any of its Subsidiaries) and any Transfer effected pursuant to any merger, consolidation
or similar transaction consummated by the Company or (ii) enter into or engage in any hedge, swap, short sale, derivative transaction
or other agreement or arrangement that Transfers to any third party, directly or indirectly, in whole or in part, any of the economic
consequences of ownership of the Registrable Securities (such actions described in clauses (i) and (ii), “Prohibited
Transfers”). Any purported Prohibited Transfer in violation of this Section 5.7 shall be null and void ab initio.

 

5.8   Listing
of Common Stock. In the time and manner required by the Principal Trading Market, the Company shall prepare and file with
such Trading Market any required notification form covering all of the Shares. In addition, the Purchasers and the Company agree
to cooperate in good faith, if necessary, to restructure the transactions contemplated by the Transaction Documents such that
they do not contravene the rules and regulations of NASDAQ; provided, however, that such restructuring does not impact
the economic interests of the Purchasers contemplated by the Transaction Documents. Each Purchaser agrees to provide information
reasonably requested by the Company to comply with this Section 5.8 and Section 3.20.

 

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5.9   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. For clarification purposes, this provision constitutes a separate right
granted to each Purchaser by the Company and negotiated separately by each Purchaser and is intended for the Company to treat
the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

5.10  Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States and shall provide
evidence of such actions promptly upon request of any Purchaser. Each Purchaser shall provide any information reasonably requested
by the Company to comply with Section 5.10.

 

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

 

5.12  Other Actions. Except as otherwise set forth in this Agreement, from the date of this Agreement until the earlier to occur
of the Closing or the termination of this Agreement in accordance with the terms hereof, the Company and the Purchasers shall
not, and shall not permit any of their respective Affiliates to, take, or agree or commit to take, any action that would reasonably
be expected to, individually or in the aggregate, prevent, materially delay or materially impede the consummation of the transactions
contemplated by this Agreement.

 

ARTICLE
6

TERMINATION

 

6.1   Termination.
The obligations of the Company, on the one hand, and the Purchasers, on the other hand, to effect the Closing shall terminate
as follows:

 

(a)          Upon
the mutual written consent of the Company and the Purchasers;

 

(b)          By
the Company if any of the conditions set forth in Section 2.5(a) shall have become incapable of fulfillment, and shall
not have been waived by the Company;

 

(c)          By
a Purchaser (with respect to itself only) if any of the conditions set forth in Section 2.5(b) shall have become incapable
of fulfillment, and shall not have been waived by such Purchaser; or

 

(d)          By
either the Company or any Purchaser (with respect to itself only) if the Closing has not occurred on or prior to May 9, 2018;
provided, however, that the Principal Purchasers may, in their sole discretion, extend such date to May 11, 2018,
in the event that stockholder approval for the consummation of the transactions contemplated by the Transaction Documents is required
under the NASDAQ rules; provided, however, that, except in the case of clause (a) above, the party seeking to terminate
its obligation to effect the Closing shall not then be in breach of any of its representations, warranties, covenants or agreements
contained in his Agreement or the other Transaction Documents if such breach has resulted in the circumstances giving rise to
such party’s seeking to terminate its obligation to effect the Closing.

 

    16

     

    

 

6.2   Notice
of Termination; Effect of Termination. In the event of termination by the Company or any Purchaser of its obligations to effect
the Closing pursuant to this ARTICLE 6, written notice thereof shall forthwith be given to the other Purchasers by the
Company and the other Purchasers shall have the right to terminate their obligations to effect the Closing upon written notice
to the Company and the other Purchasers. Nothing in this ARTICLE 6 shall be deemed to release any party from any liability
for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the
right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction
Documents.

 

6.3   Fees
and Expenses. All costs and expenses incurred in connection herewith, including, without limitation, all legal, accounting,
financial advisory, consulting and all other fees and expenses of third parties incurred by a party in connection with the negotiation
and effectuation of the terms and conditions of this Agreement and the transactions contemplated hereby, shall be the obligation
of the respective party incurring such costs and expenses.

 

6.4   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.

 

6.5   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: (a) 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 5:30 p.m. (New York City
time) on a Trading Day, (b) 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 Exhibit A attached hereto on a day that is not a Trading Day or later
than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as follows:

 

if
to the Company, to:

 

Second
Sight Medical Products, Inc. 

12744
San Fernando Road, Building 3 

Sylmar,
California 91342 

Attention:
Chief Financial Officer 

 

With
a copy to: 

 

Law
Offices of Aaron A. Grunfeld & Associates 

11111
Santa Monica Boulevard, Suite 1840 

Los
Angeles, California 90025 

 

and, 

 

if
to the Purchasers, to their respective addresses as set forth on Exhibit A attached hereto. 

 

6.6   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 Principal Purchasers or, in the case of a waiver, by the party against whom
enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement
of this Agreement 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.

 

    17

     

    

 

6.7   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.

 

6.8   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. With the consent of the Company which will not be unreasonably withheld, 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
a Purchaser may assign any or all rights under this Agreement to an Affiliate of such Purchaser without the consent of the Company,
and provided, further: (i) such transferor agrees in writing with the transferee or assignee to assign such rights,
and a copy of such agreement is furnished to the Company after such assignment; (ii) the Company is furnished with written notice
of the name and address of such transferee or assignee; (iii) following such transfer or assignment, the further disposition of
such securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws, unless
such disposition was made pursuant to an effective registration statement or an exemption under Rule 144 under the Securities
Act; (iv) such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the
Transaction Documents that apply to the “Purchasers”; and (v) such transfer shall have been made in accordance with
the applicable requirements of this Agreement and with all laws applicable thereto. 

 

6.9   No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 5.7. 

 

6.10  Governing
Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of
California without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of the state and federal courts located in the State of California for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection
with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified
for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

6.11  WAIVER
OF JURY TRIAL. 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.

 

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

 

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

 

6.14  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.

 

    18

     

    

 

6.15  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 in part without prejudice to its future actions and rights. 

 

6.16  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 hereof or thereto, shall be 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 be 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. The Company has elected to provide all Purchasers with
the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do
so by any of the Purchasers.

 

6.17  Adjustments
in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common
Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares
of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in any
Transaction Document to a number of shares or a price per share shall be deemed to be amended to appropriately account for such
event. 

 

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.

 

	 	SECOND SIGHT MEDICAL PRODUCTS, INC.
	 	 
	 	By:  	/s/
    Will McGuire
	 	Name: Will McGuire
	 	Title: President & Chief Executive
    Officer

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.

    19

     

    

	 	Gregg G. Williams 2006 Trust 
	 	 
	 	By:  	/s/
    Gregg G. Williams,
	 	Name: Gregg G. Williams,
	 	Title: Trustee
	 	 
	 	Sam
B. Williams 1995 Generation Skipping Trust
	 	 
	 	By:  	/s/
    Gregg G. Williams,
	 	Name: Gregg G. Williams,
	 	Title: Trustee

 

    20

     

    

  

EXHIBIT
A

 

 

SCHEDULE
OF PURCHASERS

 

	 	Shares
    

Purchased	Shares
    Purchase 

Price
	Gregg
G. Williams 2006 Trust 

        [address]

         

        Sam
B. Williams 1995 Generation-Skipping Trust 

        [address]
	2,027,027

         

          

         

         

        4,729,730
	$2,999,999.96

         

         

         

         

        $7,000,000.40

	 	 	 
	TOTAL	6,756,757	$10,000,000.36

 

    21

     

    

 

EXHIBIT
B

 

Stock
Certificate Questionnaire

 

Pursuant
to Section 2.1 of the Agreement, please provide us with the following information:

 

	1.     The
    exact name that the Securities are to be registered in (this is the name that will appear on the common stock certificate(s)):	 

         

	2.     The
    relationship between the Purchaser of the Securities and the Registered Purchaser listed in response to Item 1 above:	 

         

	3.     The
    mailing address, telephone and telecopy number of the Registered Purchaser listed in response to Item 1 above:	 

         

	 	 

         

	 	 

         

	 	 

         

	 	 

         

	4.     The
    Tax Identification Number (or, if an individual, the Social Security Number) of the Registered Purchaser listed in response
    to Item 1 above:	 

         

  

    22

     

    

 

 EXHIBIT
C

 

SECOND
SIGHT MEDICAL PRODUCTS, INC.

 

ACCREDITED
INVESTOR QUALIFICATION QUESTIONNAIRE

 

I.
ACCREDITED INVESTOR STATUS

 

The
undersigned (the “Investor”) has represented to Second Sight Medical Products, Inc., a California corporation
(the “Company”), that he, she, or it is an “accredited investor” as that term is defined
in the Securities Act of 1933, as amended. Please indicate below the category or categories that so qualify you as an accredited
investor. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY CONFIDENTIAL.

 

Investor
agrees to furnish any additional information the Company deems necessary in order to verify the information provided below: 

 

	Category
    I	☐	The
                                         undersigned is an individual (not a partnership, corporation, etc.) whose individual
                                         net worth, or joint net worth with his or her spouse, presently exceeds $1,000,000.

         

        Explanation.
        In calculating net worth, you may include equity in personal property and real estate, cash, short-term investments, stock
        and securities. Equity in personal property and real estate should be based on the fair market value of such property
        less debt secured by such property.

         

        The
value of your primary residence must be excluded. The related amount of indebtedness secured by the primary residence
up to its fair market value may also be excluded. However, indebtedness secured by the residence in excess of the value of the
home should be considered a liability and deducted from net worth. 

	 	 	 
	Category
    II	☐	The
    undersigned is a corporation, partnership, business trust or a non-profit organization within the meaning of Section 501(c)(3)
    of the Internal Revenue Code of 1986, as amended, that was not formed for the specific purpose of acquiring the securities
    offered and that has total assets in excess of $5,000,000.
	 	 	 
	Category
    III	☐	The
                                         undersigned is an individual (not a partnership, corporation, etc.) who reasonably expects
                                         an individual income in excess of $200,000 in the current year and had an individual
                                         income in excess of $200,000 in each of the last two years (including foreign income,
                                         tax exempt income and the full amount of capital gains and losses but excluding any income
                                         of the undersigned’s spouse or other family members and any unrealized capital
                                         appreciation);

         

        Or 

 

    23

     

    

 

	 	☐	The
    undersigned is an individual (not a partnership, corporation, etc.) who, together with his or her spouse, reasonably expects
    joint income in excess of $300,000 for the current year and had joint income in excess of $300,000 in each of the last two
    years (including foreign income, tax exempt income and the full amount of realized capital gains and losses).
	 	 	 
	Category
    IV	☐	The
    undersigned is a director or executive officer of the Company.
	 	 	 
	Category
    V	☐	The
                                         undersigned is a bank, savings and loan association or credit union, insurance company,
                                         registered investment company, registered business development company, licensed small
                                         business investment company, or employee benefit plan within the meaning of Title 1 of
                                         ERISA whose plan fiduciary is either a bank, insurance company or registered investment
                                         advisor or whose total assets exceed $5,000,000.

         

        Describe
entity: _________________________________________________________________________________

         

	 	 	 
	Category
    VI	☐	The
    undersigned is a private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.
	 	 	 
	Category
    VII	☐	The
    undersigned is a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities
    offered, whose purchase is directed by a sophisticated person (a person who either alone or with his or her purchaser representative(s)
    has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and
    risks of the prospective investment). A copy of the declaration of trust or trust agreement and a representation as to the
    sophistication of the person directing purchases for the trust is enclosed.
	 	 	 
	Category
    VIII	☐	The
    undersigned is a self-directed employee benefit plan for which all persons making investment decisions are “accredited
    investors” within one or more of the categories described above. 
	 	 	 
	Category
    IX	☐	The
                                         undersigned is an entity in which all of the equity owners are “accredited investors”
                                         within one or more of the categories described above. If relying upon this category
                                         alone, each equity owner must complete a separate copy of this agreement.

         

        Describe
entity: _________________________________________________________________________________

	 	 	 
	 	 	 
	Category
    X	☐	The
undersigned does not come within any of the Categories I – IX set forth above. 

 

    24

     

    

 

II.
BASIC INVESTOR INFORMATION

  

Name
of Investor/Investor Entity:

 

(EXACT
NAME AS IT SHOULD APPEAR ON SECURITIES DOCUMENTS)

 

	Contact
Address of Investor/Investor Entity:  	Attn:
	Address:	 
	 	 

  

III.
SIGNATURE

  

The
above information is true and correct and the undersigned recognizes that the Company and its counsel are relying on the truth
and accuracy of such information in reliance on the exemption contained in Subsection 4(2) of the United States Securities Act
of 1933, as amended, and Regulation D promulgated thereunder. The undersigned agrees to notify the Company promptly of any changes
in the foregoing information which may occur prior to the investment.

 

IF
THE UNDERSIGNED IS AN ENTITY:

 

	 	 
	(Name of Entity – Please Print)
	 	 
	By:	 

 

	Name: 	 	 

 

	Title:  	 	 

 

  

IF
THE UNDERSIGNED IS AN INDIVIDUAL: 

	 	 
	(Name – Please Print)
	 
	(Signature)

 

    25

     

    

 

	 	THIS
    SHALL NOT BE DEEMED AN OFFER TO SELL SECURITIES. NEITHER THE COMPANY NOR ANY EQUITYHOLDER SHALL HAVE ANY OBLIGATION TO SELL
    OR PURCHASE SECURITIES UNTIL DEFINITIVE DOCUMENTATION OF SUCH SALE HAS BEEN EXECUTED AND DELIVERED BY THE PARTY AGAINST WHOM
    SUCH OBLIGATION IS SOUGHT TO BE ENFORCED.	 

 

    26Exhibit

EXHIBIT 10.01
February 15, 2018

Dear Shai,
We welcome the opportunity to offer you a salaried, exempt position with FormFactor, Inc. (the "Company") as Chief Financial Officer, with a start date of March 5th, 2018. We look forward to having you join us at this exciting time for the Company. We are very impressed with your background, demonstrated abilities, and fundamental understanding of the challenges involved in our company, and look forward to your participation in meeting the opportunities ahead.
In your capacity as Chief Financial Officer, you will report to Mike Slessor, Chief Executive Officer, and will receive an annual salary of $275,000, which will be paid bi-weekly in accordance with, and subject to, the Company's normal payroll procedures. You will participate in our Employee Incentive Plan (EIP) that rewards you for our performance towards FormFactor’s achievement of financial objectives. You are eligible to receive 67% of your paid annual salary as part of this plan. This bonus is paid out quarterly and is conditioned upon the Company’s performance and achievement of objectives. Your first quarterly participation is prorated based upon your start date through the end of the bonus period.  The Company reserves the right to review or change the Employee Incentive Plan at any time. The Company will pay you a one time “sign on” bonus of $30,000, which you will receive as a separate check, less applicable withholding taxes, included with your first paycheck. Should you voluntarily terminate your employment with FormFactor at any time during the 12-month period after your start date, the “sign on” bonus must be paid back to the Company no later than your last day of employment.  
As long as you remain a regular full-time employee of the Company, you are eligible to receive certain employee benefits that are offered to our regular full-time employees which may from time to time change at the Company's discretion. These currently include:
		
	•
	Medical, Dental and Vision Insurance Benefits

		
	•
	Short-Term and Long-Term Disability Insurance Coverage 

		
	•
	Group Life Insurance

		
	•
	Paid Time-Off 

		
	•
	401(k) Plan and employer match

		
	•
	Section 125 Flex Spending Plan

		
	•
	Employee Assistance Program 

		
	•
	Employee Stock Purchase Plan

Coverage for the above-mentioned medical, dental, vision, disability and life insurance benefits begin on your date of hire. Dependent coverage is also available through this plan. Employee and dependent contributions to the plan are outlined in our Benefit Plan Summary.  You will be entitled to twenty days (20) of paid time-off annually. Paid time-off will accrue at the rate of 6.16 hours per pay period starting from your first day of employment. Paid time-off may be used for vacation or sick leave.
As part of your compensation package, you will receive a grant of 46,500 Restricted Stock Units (RSUs). The price of RSUs will be the closing price of the Company stock on the NASDAQ National Market on the grant date, which will be the 1st or 15th day of the month, whichever occurs first after the date of hire, or the next market trading day if the 1st or 15th falls on a weekend or holiday. The award is subject to the terms and conditions of the Company’s Equity Incentive Plan.  The date of the award will be the “Vesting Commencement Date” for your RSUs. The RSUs will vest in three equal annual installments on the anniversary of the “Vesting Commencement Date”.  In addition, you will be a participant in the Performance Restricted Stock Unit (PRSU) plan during the next cycle of awards which will occur in July or August 2018, and will be awarded a PRSU valued at $500,000 at the time of grant.  
The measurement and vesting of this award is based on FormFactor’s Total Shareholder Return (TSR) performance against a group of peers over a three-year period.
Your agreement to accept this offer is contingent upon your ability to show proof of your legal right to work for the Company in the United States as well as successfully completing a background check required for all new hires. It is very important that employees of FormFactor act with integrity. Our Code of Conduct provides information about our responsibilities, commitments and applying good judgement to all we do. A copy of that Code of Conduct is included with this offer letter.  We require that you read and sign a copy of this document, as well as our Employment Agreement, before you are eligible to start work at FormFactor.

You should be aware that your employment with the Company is for no specified period and constitutes at will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause.
As a FormFactor employee you are required to comply at all times with the Company's various rules, policies and procedures, including those set forth in our Statement of Corporate code of Business Conduct (the "Code"), and our Statement of Policy Regarding Insider Trading ("Policy Statement"). Copies of these documents are available via the Corporate Governance section of www.FormFactor.com. Please access www.FormFactor.com and select Investors, Stockholder Information, Corporate Governance. As a condition of employment, you are required to sign and return to the Company the enclosed Acknowledgement relating to the Policy Statement and the Code.
You should understand that, while referenced in this offer letter, the Company rules, policies and procedures are not incorporated by reference into this offer letter, and they can be changed, replaced or withdrawn at any time at the discretion of the Company.
To indicate your acceptance of the Company's offer, please sign and date this letter in the space provided below and return it with all other new hire forms in the enclosed envelope. A duplicate original is enclosed for your records. This letter, along with the Agreement, set forth the terms of your employment with the Company and supersede any prior representations or agreements, whether written or oral. This letter may not be modified or amended except by a written agreement, signed by an officer of the Company and by you. This offer, if not accepted, will expire five (5) days from the offer date.  Please call me if you have any questions.
Shai, we look forward to your favorable reply and to a productive and mutually beneficial work relationship.

Sincerely,

Mike Slessor
Chief Executive Officer, FormFactor, Inc.

Offer Acceptance
I accept this offer of employment.  In so doing, I understand that I must complete the contingencies outlined herein, and agree that my employment with FormFactor is at-will, that I am not employed for any specified duration and that either the Company or I may terminate my employment at any time, with or without cause and with or without notice.
/s/ Shai Shahar                                February 15, 2018
	
			
	Shai Shahar
	 
	Date

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