Document:

EXECUTIVE
EMPLOYMENT

AGREEMENT

 

This
EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 12th day of May, 2018 by and
between PolarityTE, Inc., a Delaware corporation headquartered at 1960 S 4250 W, Salt Lake City, UT 84104 (“Parent”)
and Paul Mann, an individual (“Executive”). As used herein, the “Effective Date” of this
Agreement shall mean the date as written above and signed below.

 

W
I T N E S S E T H:

 

WHEREAS,
the Executive desires to be employed by the Parent as its Chief Financial Officer and the Parent wishes to employ the Executive
in such capacities, in each case, commencing on and as of the Effective Date.

 

NOW,
THEREFORE, in consideration of the foregoing and their respective covenants and agreements contained in this document, the Parent
and the Executive hereby agree as follows:

 

1.
Employment and Duties. The Parent agrees to employ and the Executive agrees to serve as the Parent’s Chief Financial
Officer. The duties and responsibilities of the Executive shall include the duties and responsibilities as the Parent’s
Board of Directors (“Board”) and Chief Executive Officer may from time to time assign to the Executive.

 

The
Executive shall devote his full-time efforts and services to the business and affairs of the Parent and its subsidiaries. Nothing
in this Section 1 shall prohibit the Executive from: (A) serving as a director or member of any other board, committee thereof
of any other entity or organization; (B) delivering lectures, fulfilling speaking engagements, and any writing or publication
relating to his area of expertise; (C) serving as a director or trustee of any governmental, charitable or educational organization;
(D) engaging in additional activities in connection with personal investments and community affairs, including, without limitation,
professional or charitable or similar organization committees, boards, memberships or similar associations or affiliations, or
(E) performing advisory activities, provided, however, such activities are not in competition with the business and affairs of
the Parent or would tend to cast executive of Parent in a negative light in the reasonable judgment of the Board.

 

2.
Term. The term of this Agreement shall commence on the Effective Date and shall continue for a period of one (1) year following
the Effective Date and shall be automatically renewed for successive one (1) year periods thereafter unless either party provides
the other party with written notice of his or its intention not to renew this Agreement at least three (3) months prior to the
expiration of the initial term or any renewal term of this Agreement. “Employment Period” shall mean the initial
one (1) year term plus one (1) year renewals, if any.

 

3.
Place of Employment. The Executive’s services shall be performed at such location or locations as the Executive shall
determine, in his sole discretion.

 

4.
Base Salary and Board Fees. The Parent agrees to pay the Executive a base salary (“Base Salary”) of
$400,000 per annum for the position(s) of Chief Financial Officer. Annual adjustments after the first year of the Employment Period
shall be determined by the Board. The Base Salary shall be paid in periodic installments in accordance with the Parent’s
regular payroll practices. Executive shall, subject to policies and procedures of the Parent’s Board of Directors, be eligible
to additional fees for service on the Parent’s Board.

 

5.
Incentive Compensation and Bonuses.

 

(a)
Annual Bonus: For each fiscal year during the term of employment, the Executive
shall be eligible to receive a bonus in the amount of 100% of annual salary, if any, as may be determined from time to time by
the Board in its discretion. The Annual Bonus shall be paid by the Parent to the Executive promptly after determination
that the relevant targets, if any, have been met, it being understood that the attainment of any financial targets associated
with any bonus shall not be determined until following the completion of the Parent’s annual audit and public announcement
of such results and shall be paid promptly following the Parent’s announcement of earnings. In the event that the Compensation
Committee is unable to act or if there shall be no such Compensation Committee, then all references herein to the Compensation
Committee (except in the proviso to this sentence) shall be deemed to be references to the Board. Upon his termination from employment,
the Executive shall be entitled to receive a pro-rata portion of the Annual Bonus calculated based upon his final day of employment,
regardless of whether he is employed by the Parent through the conclusion of the fiscal quarter or year, as the case may be, on
which the Annual Bonus is based.

 

    	 	1	 

    	 

    

 

(b)
Equity Awards and Incentive Compensation: During the term of employment, the Executive shall be eligible to participate
in any equity-based incentive compensation plan or program adopted by the Parent (such awards under such plan or program, the
“Share Awards”) as the Compensation Committee or Board may from time to time determine. Share Awards shall
be subject to applicable plan terms and conditions. And any additional terms and conditions as determined by the Compensation
Committee or the Board. On the Effective Date, the Board of Directors of the Company shall award and reserve for issuance (i)
10-year options to purchase 350,000 shares of common stock which shall vest (provided Employee is still employed by the Company)
in twenty-four equal monthly installments beginning on the one-month anniversary of the Effective Date and (ii) a restricted stock
award equal to 100,000 shares of common stock which shall vest (provided Employee is still employed by the Company) in equal installments
on the six-, twelve-, eighteen-, and twenty-four-month anniversary of the Effective Date, and each of which shall be issued pursuant
to the Company’s Incentive Stock and Option Plan at the fair market value thereof (as determined by NASDAQ) to Employee.

 

6.
Severance Compensation:

 

Upon
termination of employment for any reason, the Executive shall be entitled to: (A) the sum of his annual Base Salary from the date
of termination to be paid according to Section 4; (B) any and all reasonable expenses paid or incurred by the Executive in connection
with and related to the performance of his duties and responsibilities for the Parent during the period ending on the termination
date to be paid according to Section 8; (C) any accrued but unused vacation time through the termination date in accordance with
Parent policy; and (D) the sum of his annual Bonus from the date of termination to be paid according to Section 5(a); and (E)
all Share Awards earned and vested prior to termination. With respect to any Share Awards held by the Executive as of his death
that are not vested and exercisable as of such date, the Parent shall fully accelerate the vesting and exercisability of such
Share Awards, so that all such Share Awards shall be fully vested and exercisable as of the Executive’s death, such options
(as well as any Share Awards that previously became vested and exercisable) to remain exercisable, notwithstanding anything in
any other agreement governing such options, until the earlier of (A) a period of one (1) year after the Executive’s death
or (B) the original term of the option, if such Share Awards is an option.

 

The
Executive may continue coverage with respect to the Parent’s group health plans as permitted by the Consolidated Omnibus
Budget Reconciliation Act of 1985 (“COBRA”) for himself and each of his “Qualified Beneficiaries”
as defined by COBRA (“COBRA Coverage”). The Parent shall reimburse the amount of any COBRA premium paid for
COBRA Coverage timely elected by and for the Executive and any Qualified Beneficiary of the Executive, and not otherwise reimbursed,
during the period that ends on the earliest of (x) the date the Executive or the Qualified Beneficiary, as the case may be, ceases
to be eligible for COBRA Coverage, (y) the last day of the consecutive eighteen (18) month period following the date of the Executive’s
termination of employment and (z) the date the Executive or the Qualified Beneficiary, as the case may be, is covered by another
group health plan. To reimburse any COBRA premium payment under this paragraph, the Parent must receive documentation of the COBRA
premium payment within ninety (90) days of its payment.

 

7.
Clawback Rights. The Annual Bonus, and any and all stock based compensation (such as options and equity awards) (collectively,
the “Clawback Benefits”) shall be subject to “Clawback Rights” as follows: during the period
that the Executive is employed by the Parent and upon the termination of the Executive’s employment and for a period of
three (3) years thereafter, if there is a restatement of any financial results from which any Clawback Benefits to the Executive
shall have been determined, the Executive agrees to repay any amounts which were determined by reference to any Parent financial
results which were later restated (as defined below), to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits
amounts that would have been paid, based on the restatement of the Parent’s financial information. All Clawback Benefits
amounts resulting from such restated financial results shall be retroactively adjusted by the Compensation Committee to take into
account the restated results, and any excess portion of the Clawback Benefits resulting from such restated results shall be immediately
surrendered to the Parent and if not so surrendered within ninety (90) days of the revised calculation being provided to the Executive
by the Compensation Committee following a publicly announced restatement, the Parent shall have the right to take any and all
action to effectuate such adjustment. The calculation of the revised Clawback Benefits amount shall be determined by the Compensation
Committee in good faith and in accordance with applicable law, rules and regulations. All determinations by the Compensation Committee
with respect to the Clawback Rights shall be final and binding on the Parent and the Executive. The Clawback Rights shall terminate
following a Change of Control as defined in Section 11(f), subject to applicable law, rules and regulations. For purposes of this
Section 7, a restatement of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall mean
a restatement resulting from material non-compliance of the Parent with any financial reporting requirement under the federal
securities laws and shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements
or requirements which were not in effect on the date the financial statements were originally prepared (“Restatements”).
The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects
to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”)
and require recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd-Frank Act and any
and all rules and regulations promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this
Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd-Frank Act and such rules
and regulations as hereafter may be adopted and in effect.

 

    	 	2	 

    	 

    

 

8.
Expenses. The Executive shall be entitled to prompt reimbursement by the Parent for all reasonable ordinary and necessary
travel, entertainment, and other expenses incurred by the Executive while employed (in accordance with the policies and procedures
established by the Parent for its senior executive officers) in the performance of his duties and responsibilities under this
Agreement; provided, that the Executive shall properly account for such expenses in accordance with Parent policies and procedures.

 

9.
Other Benefits. During the term of this Agreement, the Executive shall be eligible to participate in incentive, stock purchase,
savings, retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental, vision, life
(including accidental death and dismemberment) and disability insurance plans (collectively, “Benefit Plans”),
in substantially the same manner and at substantially the same levels as the Parent makes such opportunities available to the
Parent’s managerial or salaried executive employees and/or its senior executives.

 

The
Parent shall pay one hundred percent (100%) of the cost for any group medical, vision and/or dental coverage elected by and for
the Executive and one hundred (100%) of the additional incremental cost for any group medical, vision and/or dental coverage elected
by the Executive for the Executive’s family.

 

The
Executive shall be entitled to air travel, including travel by business and/or first class, as is reasonable and necessary for
the performance of his duties and responsibilities, in accordance with the Parent’s policies as approved by the Board.

 

10.
Vacation. During the term of this Agreement, the Executive shall be entitled to accrue, on a pro rata basis, twenty (20)
paid vacation days per year. Vacation shall be taken at such times as are mutually convenient to the Executive and the Parent
and no more than ten (10) consecutive days shall be taken at any one time without Parent approval in advance.

 

11.
Termination of Employment:

 

(a)
Death. If the Executive dies during the Employment Period, this Agreement and the Executive’s employment with the
Parent shall automatically terminate and the Parent’s obligations to the Executive’s estate and to the Executive’s
Qualified Beneficiaries shall be those set forth in Section 6 regarding severance compensation.

 

(b)
Disability. In the event that, during the term of this Agreement the Executive shall be prevented from performing his essential
functions hereunder to the full extent required by the Parent by reason of Disability (as defined below), this Agreement and the
Executive’s employment with the Parent shall automatically terminate. The Parent’s obligation to the Executive under
such circumstances shall be those set forth in Section 6 regarding severance compensation. For purposes of this Agreement, “Disability”
shall mean a physical or mental disability that prevents the performance by the Executive, with or without reasonable accommodation,
of his essential functions hereunder for an aggregate of ninety (90) days or longer during any twelve (12) consecutive months.
The determination of the Executive’s Disability shall be made by an independent physician who is reasonably acceptable to
the Parent and the Executive (or his representative), be final and binding on the parties hereto and be made taking into account
such competent medical evidence as shall be presented to such independent physician by the Executive and/or the Parent or by any
physician or group of physicians or other competent medical experts employed by the Executive and/or the Parent to advise such
independent physician.

 

    	 	3	 

    	 

    

 

(c)
Cause.

 

(1)
At any time during the Employment Period, the Parent may terminate this Agreement and the Executive’s employment hereunder
for Cause. For purposes of this Agreement, “Cause” shall mean: (a) the willful and continued failure of the Executive
to perform substantially his duties and responsibilities for the Parent (other than any such failure resulting from the Executive’s
death or Disability) after a written demand by the Board for substantial performance is delivered to the Executive by the Parent,
which specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties
and responsibilities, which willful and continued failure is not cured by the Executive within thirty (30) days following his
receipt of such written demand; (b) the conviction of, or plea of guilty or nolo contendere to, a felony, or (c) fraud,
dishonesty or gross misconduct which is materially and demonstratively injurious to the Parent. Termination under clauses (b)
or (c) of this Section 11(c)(1) shall not be subject to cure.

 

(2)
For purposes of this Section 11(c), no act, or failure to act, on the part of the Executive shall be considered “willful”
unless done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in, or not
opposed to, the best interest of the Parent. Between the time the Executive receives written demand regarding substantial performance,
as set forth in subparagraph (1) above, and prior to an actual termination for Cause, the Executive will be entitled to appear
(with counsel) before the full Board to present information regarding his views on the Cause event. After such hearing, termination
for Cause must be approved by a majority vote of the full Board (other than the Executive). After providing the written demand
regarding substantial performance, the Board may suspend the Executive with full pay and benefits until a final determination
by the full Board has been made.

 

(3)
Upon termination of this Agreement for Cause, the Parent shall have no further obligations or liability to the Executive or his
heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the
Executive any Base Salary earned through the date of termination to be paid according to Section 4; any unpaid Annual Bonus to
be paid according to Section 5; reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection
with and related to the performance of his duties and responsibilities for the Parent during the period ending on the termination
date to be paid according to Section 8; and any accrued but unused vacation time through the termination date in accordance with
Parent policy. The Parent shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and
FUTA, and other appropriate deductions.

 

(d)
For Good Reason or a Change of Control or Without Cause.

 

(1)
At any time during the term of this Agreement and subject to the conditions set forth in Section 12(d)(2) below the Executive
may terminate this Agreement and the Executive’s employment with the Parent for “Good Reason” or for
a “Change of Control” (as defined in Section 12(f)). For purposes of this Agreement, “Good Reason” shall
mean the occurrence of any of the following events without Executive’s consent: (A) the assignment to the Executive of duties
that are significantly different from, and/or that result in a substantial diminution of, the duties that he assumed on the Effective
Date (including reporting to anyone other than solely and directly to the Board); (B) the assignment to the Executive of a title
that is different from and subordinate to the title Chief Financial Officer of the Parent; provided, however, for the absence
of doubt following a Change of Control, should the Executive be required to serve in a diminished capacity in a division or unit
of another entity (including the acquiring entity), such event shall constitute Good Reason regardless of the title of the Executive
in such acquiring company, division or unit; or (C) material breach by the Parent of this Agreement.

 

(2)
The Executive shall not be entitled to terminate this Agreement for Good Reason unless and until he shall have delivered written
notice to the Parent within ninety (90) days of the date upon which the facts giving rise to Good Reason occurred of his intention
to terminate this Agreement and his employment with the Parent for Good Reason, which notice specifies in reasonable detail the
circumstances claimed to provide the basis for such termination for Good Reason, and the Parent shall not have eliminated the
circumstances constituting Good Reason within thirty (30) days of its receipt from the Executive of such written notice. In the
event the Executive elects to terminate this Agreement for Good Reason in accordance with Section 11(d)(1), such election must
be made within the twenty-four (24) months following the initial existence of one or more of the conditions constituting Good
Reason as provided in Section 11(d)(1). In the event the Executive elects to terminate this Agreement for a Change in Control
in accordance with Section 11(d)(1), such election must be made within one hundred eighty (180) days of the occurrence of the
Change of Control.

 

    	 	4	 

    	 

    

 

(3)
In the event that the Executive terminates this Agreement and his employment with the Parent for Good Reason or for a Change of
Control or the Parent terminates this Agreement and the Executive’s employment with the Parent without Cause, the Parent
shall pay or provide to the Executive (or, following his death, to the Executive’s heirs, administrators or executors) the
severance compensation set forth in Section 6 above. The Parent shall deduct, from all payments made hereunder, all applicable
taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

(4)
The Executive shall not be required to mitigate the amount of any payment provided for in this Section 11(d) by seeking other
employment or otherwise, nor shall the amount of any payment provided for in this Section 11(d) be reduced by any compensation
earned by the Executive as the result of employment by another employer or business or by profits earned by the Executive from
any other source at any time before and after the termination date. The Parent’s obligation to make any payment pursuant
to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other
right that the Parent may have against the Executive for any reason.

 

(e)
Without “Good Reason” by the Executive. At any time during the term of this Agreement, the Executive shall
be entitled to terminate this Agreement and the Executive’s employment with the Parent without Good Reason and other than
for a Change of Control by providing prior written notice of at least thirty (30) days to the Parent. Upon termination by the
Executive of this Agreement or the Executive’s employment with the Parent without Good Reason and other than for a Change
of Control, the Parent shall have no further obligations or liability to the Executive or his heirs, administrators or executors
with respect to compensation and benefits thereafter, except for the obligation to pay the Executive any Base Salary earned through
the date of termination to be paid according to Section 4; any unpaid Annual Bonus to be paid according to Section 5; reimbursement
of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his
duties and responsibilities for the Parent during the period ending on the termination date to be paid according to Section 8;
and any accrued but unused vacation time through the termination date in accordance with Parent policy. The Parent shall deduct,
from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

(f)
Change of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence of
any one or more of the following: (i) the accumulation (if over time, in any consecutive twelve (12) month period), whether directly,
indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended) of more than fifty percent (50%) or more of the shares of the outstanding
Common Stock of the Parent, whether by merger, consolidation, sale or other transfer of shares of Common Stock (other than a merger
or consolidation where the stockholders of the Parent prior to the merger or consolidation are the holders of a majority of the
voting securities of the entity that survives such merger or consolidation), (ii) a sale of all or substantially all of the assets
of the Parent or (iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning of such period,
constitute the Board, and any new director whose election by the Board or nomination for election by the Parent’s stockholders
was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning
of the twelve (12) month period or whose election or nomination for election was previously so approved, cease for any reason
to constitute at least a majority of the Board; provided that the following acquisitions shall not constitute a Change of Control
for the purposes of this Agreement: any acquisition of Common Stock or securities convertible into Common Stock by any employee
benefit plan (or related trust) sponsored by or maintained by the Parent.

 

(g)
Any termination of the Executive’s employment by the Parent or by the Executive (other than termination by reason of the
Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes
of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the provision so indicated, provided, however, failure
to provide timely notification shall not affect the employment status of the Executive.

 

    	 	5	 

    	 

    

 

12.
Confidential Information.

 

(a)
Disclosure of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue
to have access to secret and confidential information regarding the Parent, its subsidiaries and their respective businesses (“Confidential
Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply,
customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter
become part of the public domain, or become known to others through no fault of the Executive. The Executive acknowledges that
such information is of great value to the Parent, is the sole property of the Parent, and has been and will be acquired by him
in confidence. In consideration of the obligations undertaken by the Parent herein, the Executive will not, at any time, during
or after his employment hereunder, reveal, divulge or make known to any person, any information acquired by the Executive during
the course of his employment, which is treated as confidential by the Parent, and not otherwise in the public domain. The provisions
of this Section 12 shall survive the termination of the Executive’s employment hereunder. The Executive affirms that he
does not possess and will not rely upon the protected trade secrets or confidential or proprietary information of any prior employer(s)
in providing services to the Parent or its subsidiaries.

 

(b)
In the event that the Executive’s employment with the Parent terminates for any reason, the Executive shall deliver forthwith
to the Parent any and all originals and copies, including those in electronic or digital formats, of Confidential Information;
provided, however, the Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but
not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information
showing his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed
for tax purposes and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the
Parent. The covenants and agreements in this Section 12 shall exclude excludes information (A) which is in the public domain through
no unauthorized act or omission of Executive or (B) which becomes available to Executive on a non-confidential basis from a source
other than Parent or its affiliates without breach of such source’s confidentiality or non-disclosure obligations to Parent
or any of its affiliates.

 

13.
Non-Competition and Non-Solicitation.

 

(a)
The Executive agrees and acknowledges that the Confidential Information that the Executive has already received and will receive
is valuable to the Parent and that its protection and maintenance constitutes a legitimate business interest of the Parent, to
be protected by the non-competition restrictions set forth herein. The Executive agrees and acknowledges that the non-competition
restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens on the Executive. The Executive
also acknowledges that the Parent’s Business (as defined in Section 13(b) (1) below) is conducted worldwide (the “Territory”),
and that the Territory, scope of prohibited competition, and time duration set forth in the non-competition restrictions set forth
below are reasonable and necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other
legitimate business interests of, the Parent, its affiliates and/or its clients or customers. The provisions of this Section 13
shall survive the termination of the Executive’s employment hereunder for the time periods specified below.

 

(b)
The Executive hereby agrees and covenants that he shall not without the prior written consent of the Parent, directly or indirectly,
in any capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder,
officer, director or any other individual or representative capacity (other than (i) as a holder of less than two (2%) percent
of the outstanding securities of a company whose shares are traded on any national securities exchange or (ii) as a limited partner,
passive minority interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may
hold an equity or debt position in portfolio companies that are competitive with the Parent; provided however, that the Executive
shall be precluded from serving as an operating partner, general partner, manager or governing board designee with respect to
such portfolio companies), or whether on the Executive’s own behalf or on behalf of any other person or entity or otherwise
howsoever, during the Term and thereafter to the extent described below, within the Territory:

 

(1)
Engage, own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership,
management, operation or control of any business in competition with the Business of the Parent, as defined in the next sentence.
For purposes hereof, the Parent’s “Business” shall mean research, development, techniques and technology in
any manner involving or related to regeneration of functionally polarized tissue by use of Leucine-rich repeat-containing G- protein
coupled Receptor (LGR) expressing cells and any and all inventions, technology and trade secrets related thereto or a result of
the services of Employee hereunder, as well as all activities that involve the making, use or licensing thereof;

 

(2)
Recruit, solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Parent to leave
the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor is
party to an employment agreement, for the purpose of competing with the Business of the Parent;

 

    	 	6	 

    	 

    

 

(3)
Attempt in any manner to solicit or accept from any customer of the Parent, with whom Executive had significant contact during
Executive’s employment by the Parent (whether under this Agreement or otherwise), business of the kind or competitive with
the business done by the Parent with such customer or to persuade or attempt to persuade any such customer to cease to do business
or to reduce the amount of business which such customer has customarily done or might do with the Parent, or if any such customer
elects to move its business to a person other than the Parent, provide any services of the kind or competitive with the business
of the Parent for such customer, or have any discussions regarding any such service with such customer, on behalf of such other
person for the purpose of competing with the Business of the Parent; or

 

(4)
Interfere with any relationship, contractual or otherwise, between the Parent and any other party, including, without limitation,
any supplier, distributor, co-venturer or joint venturer of the Parent, for the purpose of soliciting such other party to discontinue
or reduce its business with the Parent for the purpose of competing with the Business of the Parent.

 

With
respect to the activities described in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 13(b) shall continue
during the Term of this Agreement and for a period of one (1) year thereafter.

 

14.
Section 409A.

 

The
provisions of this Agreement are intended to comply with or are exempt from Section 409A of the Code (“Section 409A”)
and the related Treasury Regulations and shall be construed in a manner consistent with the requirements for avoiding taxes or
penalties under Section 409A. The Parent and the Executive agree to work together in good faith to consider amendments to this
Agreement and to take such reasonable actions necessary, appropriate or desirable to avoid imposition of any additional tax under
Section 409A or income recognition prior to actual payment to the Executive under this Agreement.

 

It
is intended that any expense reimbursement made under this Agreement shall be exempt from Section 409A. Notwithstanding the foregoing,
if any expense reimbursement made under this Agreement shall be determined to be “deferred compensation” subject to
Section 409A (“Deferred Compensation”), then (a) the right to reimbursement or in-kind benefits is not subject
to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement, or in-kind benefits, provided
during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
taxable year (provided that this clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered
by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in
effect) and (c) such payments shall be made on or before the last day of the taxable year following the taxable year in which
the expense was incurred.

 

With
respect to the time of payments of any amount under this Agreement that is Deferred Compensation, references in the Agreement
to “termination of employment” and substantially similar phrases, including a termination of employment due to the
Executive’s Disability, shall mean “Separation from Service” from the Parent within the meaning of Section
409A (determined after applying the presumptions set forth in Treasury Regulation Section 1.409A-1(h)(1)). Each installment payable
hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation
Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral” rule set forth
in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each other payment
is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii),
et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being
subject to Code Section 409A.

 

Notwithstanding
anything to the contrary in this Agreement, if the Executive is a “specified employee” within the meaning of Section
409A at the time of the Executive’s termination, then only that portion of the severance and benefits payable to the Executive
pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered Deferred Compensation
(together, the “Deferred Separation Benefits”), which (when considered together) do not exceed the Section
409A Limit (as defined herein) may be made within the first six (6) months following the Executive’s termination of employment
in accordance with the payment schedule applicable to each payment or benefit. Any portion of the Deferred Separation Benefits
in excess of the Section 409A Limit otherwise due to the Executive on or within the six (6) month period following the Executive’s
termination will accrue during such six (6) month period and will become payable in one lump sum cash payment on the date six
(6) months and one (1) day following the date of the Executive’s termination of employment. All subsequent Deferred Separation
Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if the Executive dies following termination but prior to the six (6) month anniversary of the
Executive’s termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum
as soon as administratively practicable after the date of the Executive’s death and all other Deferred Separation Benefits
will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

    	 	7	 

    	 

    

 

For
purposes of this Agreement, “Section 409A Limit” shall mean a sum equal to (x) the amounts payable within the
terms of the “short-term deferral” rule under Treasury Regulation Section 1.409A-1(b)(4) plus (y) the amount payable
as “separation pay due to involuntary separation from service” under Treasury Regulation Section 1.409A-1(b)(9)(iii)
equal to the lesser of two (2) times: (i) the Executive’s annualized compensation from the Parent based upon his annual
rate of pay during the Executive’s taxable year preceding his taxable year when his employment terminated, as determined
under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1); and (ii) the maximum amount that may be taken into account under a qualified
plan pursuant to Section 401(a)(17) of the Code for the year in which the Executive’s employment is terminated.

 

15.
Miscellaneous.

 

(a)
Neither the Executive nor the Parent may assign or delegate any of their rights or duties under this Agreement without the express
written consent of the other; provided, however, that the Parent shall have the right to delegate its obligation of payment of
all sums due to the Executive hereunder, provided that such delegation shall not relieve the Parent of any of its obligations
hereunder.

 

(b)
During the term of this Agreement, the Parent (i) shall indemnify and hold harmless the Executive and his heirs and representatives
to the maximum extent provided by the laws of the State of Delaware and by Parent’s bylaws and (ii) shall cover the Executive
under the Parent’s directors’ and officers’ liability insurance on the same basis as it covers other senior
executive officers and directors of the Parent.

 

(c)
This Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s
employment by the Parent, supersedes all prior understandings and agreements, whether oral or written, between the Executive and
the Parent, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged.
If any provision of this Agreement, or the application thereof, shall for any reason and to any extent be invalid or unenforceable,
then the remainder of this Agreement and the application of such provision to other persons or circumstances shall be interpreted
so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision
of this Agreement with a valid and enforceable provision that shall achieve, to the extent possible, the economic, business and
other purposes of the void or unenforceable provision. No waiver by either party of any provision or condition to be performed
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent time.

 

(d)
This Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective
successors, heirs, beneficiaries and permitted assigns.

 

(e)
The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

(f)
All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall
be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by reputable national overnight delivery service (e.g., Federal Express) for overnight delivery to the party at the
address set forth in the preamble to this Agreement, or to such other address as either party may hereafter give the other party
notice of in accordance with the provisions hereof. Notices shall be deemed given on the sooner of the date actually received
or the third business day after deposited in the mail or one business day after deposited with an overnight delivery service for
overnight delivery.

 

    	 	8	 

    	 

    

 

(g)
This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, and each of the
parties hereto irrevocably consents to the jurisdiction and venue of the federal and state courts located in the State of New
York, County of New York, for any disputes arising out of this Agreement, or the Executive’s employment with the Parent.
The prevailing party in any dispute arising out of this Agreement shall be entitled to his or its reasonable attorney’s
fees and costs.

 

(h)
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date
set forth above.

 

(i)
The Executive represents and warrants to the Parent, that he has the full power and authority to enter into this Agreement and
to perform his obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations
hereunder will not conflict with any agreement to which the Executive is a party.

 

(j)
The Parent represents and warrants to the Executive that it has the full power and authority to enter into this Agreement and
to perform its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations
hereunder will not conflict with any agreement to which the Parent is a party.

 

[Signature
page follows immediately]

 

    	 	9	 

    	 

    

 

IN
WITNESS WHEREOF, the Executive and the Parent have caused this Executive Employment Agreement to be executed as of the date first
above written.

 

	 	POLARITYTE,
    INC.
	 	 
	 	/s/
    Denver Lough
	 	Denver Lough, MD,
    PhD, Chairman and CEO
	 	Date: May 12, 2018

 

	 	EXECUTIVE
	 	 	 
	 	Signed:	/s/
    Paul Mann
	 	Name:	Paul Mann
	 	Date:	May 12, 2018

 

    	 	10	 

    	 

    

 

ADDENDUM
TO EMPLOYMENT AGREEMENT

 

This
ADDENDEM TO EMPLOYMENT AGREEMENT (the “Addendum”) is made and entered into this 3rd day of June 2018, by
and between PolarityTE, Inc., a Delaware corporation headquartered at 1960 S 4250 West, Salt Lake City, UT 84104 (“Parent”)
and Paul Mann, an individual (“Executive”).

 

This
Addendum amends the Employment Agreement between the Parent and Executive dated May 12, 2018 (the “Agreement”). Due
to delays in wrapping-up Executive’s employment at Highbridge Capital and applying for a VISA in the United Sates, the Effective
Date as defined in the Employment Agreement has been deferred. Accordingly, the parties agree to amend the Agreement to change
the definition of Effective Date in the preamble to the Agreement to read as follows:

 

As
used herein, the “Effective Date” of this Agreement shall mean the date Executive will commence work hereunder after
Executive’s employment at Highbridge Capital terminates and Executive applies for a VISA in the United Sates, as such date
is confirmed in writing by the Parent and Executive.

 

	PolarityTE, Inc.	 
	 	 	 
	By:	/s/
    Cameron Hoyler	 
	Name:
    	Cameron
    Hoyler	 
	Title:
    	Chief
    Legal Officer	 

 

	/s/
    Paul Mann	 
	Paul
    Mann	 

 

    	 	 	 

    	 

    

 

EMPLOYMENT
CONFIRMATION

 

This
is the EMPLOYMENT CONFIRMATION contemplated by the Addendum to Employment Agreement dated June 3, 2018, to the Employment Agreement
dated May 12, 2018 (collectively the “Agreement”), by and between PolarityTE, Inc., a Delaware corporation headquartered
at 1960 S 4250 West, Salt Lake City, UT 84104 (“Parent”) and Paul Mann, an individual (“Executive”).

 

This
will confirm the Effective Date of Executive’s employment under the Agreement is June 20, 2018.

 

	PolarityTE, Inc.	 	 
	 	 	 	 
	By:	/s/
    Denver Lough	 	June 20, 2018
	Name: 	Denver Lough,
    MD, PhD	 	 
	Title: 	Chief Executive
    Officer	 	 

 

	/s/
    Paul Mann	 	June
    20, 2018
	Paul MannPOLARITYTE,
INC.

NOTICE
OF GRANT OF STOCK OPTION

 

Notice
is hereby given of the following stock option grant (the “Option”) to purchase shares of the Common Stock of PolarityTE,
Inc. (the “Company”) under the Company’s 2017 Equity Incentive Plan adopted by the Board of Directors on December
1, 2016, and as subsequently amended from time to time (the “Plan”). Capitalized terms used herein and not otherwise
defined shall have the meaning ascribed to such terms in the Plan.

 

Optionee:
Paul Mann

Grant
Date: June 20, 2018

Expiration
Date: June 20, 2028

Exercise
Price: $31.88 per share

Number
of Option Shares: 350,000

Type
of Option:                        
____ Incentive Stock Option X Non-Statutory Option

 

Vesting
Schedule: The Option shall vest in twenty-four (24) equal monthly installments commencing on the one (1) month anniversary
of the Grant Date. The Optionee shall have the right to purchase Common Shares underlying the vested portion of the Option at
any time until the Expiration Date, provided the Optionee’s employment has not been terminated as of the applicable vesting
date.

 

Optionee
understands and agrees that the Option is granted subject to and in accordance with the express terms and conditions of the Plan.
Optionee further agrees to be bound by the terms and conditions of the Plan and the terms and conditions of the Option as set
forth in the Stock Option Agreement attached hereto as Exhibit A. The Company shall provide to Optionee a copy of the Plan upon
written request to the Company.

 

Dated:
June 20, 2018

 

	PolarityTE,
    Inc.	 	Optionee
	 	 	 	 	 
	By:	/s/
    Denver     Lough	 	Signature:	/s/
    Paul Mann
	 	 	 	 	 
	Title:	 Chief
    Executive Officer 	 	Name:	Paul
Mann

 

    	 	 	 

    	 

    

 

POLARITYTE,
INC.

STOCK
OPTION AGREEMENT

 

A.
The Board of Directors (the “Board”) and stockholders of PolarityTE, Inc. (“the Company”) have adopted
the 2017 Equity Incentive Plan, as amended from time to time (the “Plan”) for the purpose of attracting and retaining
the services of employees (including officers and directors), non-employee Board members and consultants and other independent
advisors. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to such terms in the Plan.

 

B.
Optionee is an individual who is to render valuable services to the Company or one or more Subsidiaries, and this Agreement
is executed pursuant to, and is intending to carry out the purposes of, the Plan in connection with the grant of a stock option
to purchase shares of the Company’s common stock (“Common Stock”) under the Plan.

 

NOW,
THEREFORE, it is hereby agreed as follows:

 

1.
Grant of Option. Subject to and upon the terms and conditions set forth in this Agreement, the Company hereby grants
to Optionee, as of the grant date (the “Grant Date”) specified in the accompanying Notice of Grant of Stock Option
(the “Grant Notice”), a stock option to purchase up to that number of shares of the Company’s Common Stock (the
“Option Shares”) as is specified in the Grant Notice. Such Option Shares shall be purchased from time to time during
the option term at the exercise price (the “Exercise Price”) specified in the Grant Notice.

 

2.
Option Term. This option shall expire at the close of business on the earlier of the expiration date specified in the
Grant Notice, the date specified in Section 6.1 of the Plan, Section 7.3 of the Plan, or the date specified by modification or
amendment of this stock option under the terms of the Plan (any such date the “Expiration Date”).

 

3.
Limited Transferability. This option shall be exercisable only by Optionee during Optionee’s lifetime and shall
not be transferable or assigned by Optionee other than by will or by the laws of descent and distribution following Optionee’s
death.

 

4.
Exercisability. This option shall become exercisable for the Option Shares in accordance with the vesting schedule
specified in the Grant Notice. As the option becomes exercisable for one or more installments of Option Shares, those installments
shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date. This option
shall not become exercisable for any additional Option Shares following Optionee’s cessation of service to the Company or
a Subsidiary.

 

5.
Privilege of Stock Ownership. The holder of this option shall not have any of the rights of a stockholder with respect
to the Option Shares until such individual shall have exercised the option and paid the Exercise Price for the purchased Option
Shares.

 

6.
Exercising Option. In order to exercise this option with respect to all or any part of the Option Shares for which
this option is at the time exercisable, Optionee (or in the case of exercise after Optionee’s death, Optionee’s executor,
administrator, heir or legatee, as the case may be) must take the following actions and otherwise comply with the requirements
of the Plan:

 

(a)
Deliver to the Corporate Secretary of the Company an executed notice of exercise in substantially the form of Exhibit I to this
Agreement (the “Exercise Notice”) in which there is specified the number of Option Shares that are to be purchased
under the exercised option.

 

(b)
Pay the aggregate Exercise Price for the purchased shares through one or more of the following alternatives, subject to any limitations
or restrictions set forth in the Plan:

 

    	 	1	 

    	 

    

 

(1)
full payment in cash or by check made payable to the Company’s order;

 

(2)
full payment in shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s earnings
for financial reporting purposes and valued at Fair Market Value on the Exercise Date;

 

(3)
full payment through a combination of shares of Common Stock held for the requisite period necessary to avoid a charge to the
Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date and cash or check
payable to the Company’s order; or

 

(4)
full payment effected through a broker-dealer sale and remittance procedure pursuant to which Optionee shall provide concurrent
irrevocable written instructions (i) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares
and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise
Price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be
withheld in connection with such purchase and (ii) to the Company to deliver the certificates for the purchased shares directly
to such brokerage firm in order to complete the sale transaction.

 

7.
Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the
state of Delaware without resort to that State’s conflict-of-laws provisions.

 

8.
No Employment/Service Contracts. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue
in the service of the Company (or any Subsidiary employing or retaining Optionee) for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Company (or any such Subsidiary) or Optionee, which rights are hereby
expressly reserved by each party, to terminate Optionee’s service at any time for any reason whatsoever, with or without
cause.

 

9.
Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in
writing and addressed to the Company in care of the Company Chief Financial Officer at the Company’s principal offices at
1960 S. 4250 West, Salt Lake City, UT 84104. Any notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated on the Grant Notice. All notices shall be deemed to have been given or delivered
upon personal delivery or upon deposit in the U. S. Mail, by registered or certified mail, postage prepaid and properly addressed
to the party to be notified.

 

10.
Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all
respects limited by and subject to the express terms and provisions of the Plan, unless, in the specific instance, a provision
in this Agreement states that it supersedes a provision in the Plan. All terms used herein that are defined in the Plan shall
have the same meaning ascribed to such terms in the Plan. All decisions of the Administrator with respect to any question or issue
arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

 

11.
Additional Terms Applicable to an Incentive Stock Option. In the event this option is designated an Incentive Stock
Option in the Grant Notice, the following terms and conditions shall also apply to the grant:

 

(a)
This option shall cease to qualify for favorable tax treatment as an Incentive Stock Option under the Federal tax laws if (and
to the extent) this option is exercised for one or more Option Shares: (i) more than three months after the date Optionee ceases
to be an Employee for any reason other than death or disability or (ii) more than one year after the date Optionee ceases to be
an Employee because of death or disability. The term “disability” shall mean Grantee’s inability to engage in
any substantial gainful activity because of any medically determinable physical or mental impairment that can be expected to result
in death or lasted, or can be expected to last, for a continuous period of not less than 12 months.

 

    	 	2	 

    	 

    

 

(b)
If this option is to become exercisable in a series of installments as indicated in the Grant Notice, no such installment shall
qualify for favorable tax treatment as an Incentive Stock Option under the Federal tax laws if (and to the extent) the aggregate
Fair Market Value (determined at the Grant Date) of the shares of the Company’s Common Stock for which such installment
first becomes exercisable hereunder will, when added to the aggregate value (determined as of the respective date or dates of
grant) of the Common Stock or other securities for which this option or one or more other Incentive Stock Options granted to Optionee
prior to the Grant Date (whether under the Plan or any other option plan of the Company or any Subsidiary) first become exercisable
during the same calendar year, exceed $100,000 in the aggregate. Should the number of shares of Common Stock for which this option
first becomes exercisable in any calendar year exceeds the applicable $100,000 limitation, the option may nevertheless be exercised
for those excess shares in such calendar year as a non-statutory option.

 

(c)
Should the exercisability of this option be accelerated upon a Change in Control, then this option shall qualify for favorable
tax treatment as an Incentive Stock Option under the Federal tax laws only to the extent the aggregate Fair Market Value (determined
at the Grant Date) of the number of shares of the Company’s Common Stock for which this option first becomes exercisable
in the calendar year in which the Change in Control occurs does not, when added to the aggregate value (determined as of the respective
date or dates of grant) of the shares of Common Stock or other securities for which this option or one or more other Incentive
Stock Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Company or any
Subsidiary) first become exercisable during the same calendar year, exceed $100,000 in the aggregate. Should the number of shares
of Common Stock for which this option first becomes exercisable in the calendar year of such Change in Control exceed the applicable
$100,000 limitation, the option may nevertheless be exercised for the excess shares in such calendar year as a non-statutory option.

 

(d)
Should Optionee hold, in addition to this option, one or more other options to purchase shares of the Company’s Common Stock
that become exercisable for the first time in the same calendar year as this option, then the foregoing limitations on the exercisability
of such options as Incentive Stock Options under the Federal tax laws shall be applied on the basis of the order in which such
options are granted.

 

(e)
To the extent this option should fail to qualify for Incentive Stock Option treatment under the Federal tax laws, Optionee shall
recognize compensation income at the time the option is exercised in an amount equal to the Fair Market Value of the purchased
Option Shares less the aggregate Exercise Price paid for those shares, and Optionee must make appropriate arrangements with the
Company or any Subsidiary employing Optionee for the satisfaction of all Federal, state or local income and employment tax withholding
requirements applicable to such compensation income.

 

12.
Additional Terms Applicable to a Non-Statutory Stock Option. In the event this option is designated a non-statutory
stock option in the Grant Notice, Optionee shall make appropriate arrangements with the Company or any Subsidiary employing Optionee
for the satisfaction of all Federal, state or local income and employment tax withholding requirements applicable to the exercise
of this option. Such arrangements will be made prior to or at the time of exercise.

 

    	 	3	 

    	 

    

 

Exhibit
I

 

FORM
OF PURCHASE

(to
be signed only upon exercise of Option)

 

	TO:
    	PolarityTE,
    Inc.

 

The
Optionee, holder of the attached option, hereby irrevocable elects to exercise the purchase rights represented by the option for,
and to purchase thereunder, _________________________shares of Common Stock of PolarityTE, Inc., and herewith makes payment therefor,
and requests that the certificate(s) for such shares be delivered to the Optionee at:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

The
Optionee agrees and acknowledges that this purported exercise of the option is conditioned on, and subject to, any compliance
with requirements of applicable federal and state securities laws deemed necessary by the Company, and to Optionee’s satisfaction
of all Federal, state or local income and employment tax withholding requirements applicable to this exercise on terms acceptable
to the Company.

 

DATED
this ____________________day of________________________, ___________________.

 

Signature

 

    	 	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]