Document:

Exhibit 10.8

 

SECURITY
AGREEMENT

 

THIS
SECURITY AGREEMENT (this “Agreement”) is made as of February 3, 2015 (the “Funding Date”)
by and among Redwood Scientific Technologies, Inc. a Nevada corporation (the "Company" or
“Debtor”), Redwood Scientific Technologies, Inc. a California corporation (“Cali
Corp” or together with the Company, the “Pledgors” and individually, “Pledgor”)
and the Purchasers Listed On Exhibit A (individually the "Secured Party" and collectively, the
“Secured Parties” or the “Purchasers”) to that certain Secured Convertible
Note Purchase Agreement dated as of February 3, 2015 between the Company and the Secured Parties (the "Purchase
Agreement"). 

 

RECITALS

 

A.        The
Secured Parties and Debtor have entered into the Purchase Agreement.

 

B.        The
Debtor is entering into this Agreement in order to further induce the Secured Parties to enter into the Purchase Agreement.

 

C.        On
the Funding Date, the Secured Parties have purchased Notes (the "Notes") in an amount of up to $1,5000,000 from
the Company (the “Loan”).

 

D.        As
collateral to secure payment and performance of the Obligations set forth in the Purchase Agreement and the Note, the Company
and Pledgor have entered into this Agreement and Pledgors have granted to the Secured Party a Lien and security interest in and
to all of the Collateral (as defined below).

 

E.        Unless
otherwise expressly defined in this Agreement, all capitalized terms when used herein, shall have the same meanings defined in
the Purchase Agreement.

 

F.        The
Recitals shall be deemed to be an integral part of this Agreement as though more fully set forth at length in the body of this
Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows:

 

1.        Grant
of Security Interest. To secure the full and timely performance of all of Debtor’s Obligations and liabilities to the
Secured Parties pursuant to Purchase Agreement, the Note and the Transaction Documents, Pledgors hereby unconditionally and irrevocably
pledge, grant and hypothecate to the Secured Parties a continuing Lien and security interest (the “Security Interest”)
in and to all of the property described on Exhibit “A” to this Agreement, which is incorporated
into this Agreement, and all products and proceeds thereof (the “Collateral”).

 

     

     

    

 

2.        Priority
of Security Interest. The Secured Party, Debtor and Pledgor each acknowledge and agree that:

 

(a)
     the Security Interest granted by Pledgors in the Collateral owned by Pledgors pursuant to this Agreement represents a priority
lien and Security Interest in such Collateral; and

 

(b)       upon
the occurrence and continuation of an Event of Default under the Purchase Agreement, the Notes or any of the Transaction Documents
or hereunder, the Secured Party may exercise any of its rights and remedies with respect to the Collateral owned by Pledgors or
the Security Interest granted by Pledgors hereunder, all as provided in this Agreement.

 

3.        Representations
and Covenants.

 

 (a)      Other
Liens. Each Pledgor owns all rights, title and interest in the respective Collateral (or has appropriate rights to use in
the case of property subject to leases, licenses or similar arrangements in which each such Pledgor is the licensee or lessee)
and, except for Liens in favor of the Secured Party or other Permitted Liens as defined in the Purchase Agreement, Pledgors will
not permit its Collateral to be subject to any adverse lien, security interest or encumbrance (other than Permitted Liens), and
Pledgors will defend its Collateral against the claims and demands of all persons at any time claiming the same or any interest
therein. Except as disclosed to the Secured Party, no financing statements covering any Collateral or any proceeds thereof are
on file in any public office.

 

(b)       This
Agreement creates in favor of the Secured Party a valid security interest in the Collateral, subject only to Permitted Liens (as
defined in the Purchase Agreement) securing the payment and performance of the Obligations. Upon making the filings described
in the immediately following paragraph, all security interests created hereunder in any Collateral, which may be perfected by
filing Uniform Commercial Code (“UCC”) financing statements and other filings, if any, as may be required under
the laws of the United States (together with the UCC, the “Required Filings”) in order to perfect a Security
Interest, shall have been duly perfected. Without limiting the generality of the foregoing, except for the Required Filings and
subject to the requirements of the laws of Nevada, no consent of any third parties and no authorization, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory body is required for: (i) the execution, delivery
and performance of this Agreement; (ii) the creation or perfection of the Security Interests in the United States created hereunder
in the Collateral; or (iii) the enforcement of the rights of the Secured Party hereunder.

 

(c)       Filing
Authorization. Pledgors hereby authorize the Secured Party, or through the Collateral Agent (as hereinafter defined), if appointed,
as the agent and attorney-in-fact for Pledgors to file one or more financing statements under the UCC and all other Required Filings,
as well as any filings required to be made in any other jurisdiction, with respect to the Security Interests, with the proper
filing and recording agencies in any jurisdiction deemed proper by it.

 

(d)       Further
Documentation. At any time and from time to time, at the sole expense of Pledgors, Pledgors will promptly and duly execute
and deliver such further instruments and documents and take such further action as the Secured Party may reasonably request for
the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted. The undersigned
Pledgors hereby authorize Secured Party to file with the appropriate filing office, now or hereafter from time to time, financing
statements, continuation statements and amendments thereto, naming the undersigned as Pledgor and covering all of the respective
Collateral of each such Pledgor, including but not limited to any specific listing, identification or type of all or any portion
of the assets of the undersigned.  The Secured Party shall provide Pledgors with a copy of any such filing. The undersigned
acknowledges and agrees, by evidence of its signature below, that this authorization is sufficient to satisfy the requirements
of Revised Article 9 of the Uniform Commercial Code and the laws of all other jurisdictions in which Required Filings are to be
made.

 

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(e)       Indemnification.
Debtor and Pledgor agree to defend, indemnify and hold harmless Secured Party against any and all liabilities, costs and expenses
(including, without limitation, all reasonable legal fees and expenses): (i) with respect to, or resulting from, any delay
in paying any and all excise, sales or other taxes which may be payable or are determined to be payable with respect to any of
the Collateral; (ii) with respect to, or resulting from, any breach of any law, rule, regulation or order of any governmental
authority applicable to any of the Collateral; or (iii) in connection with a breach of any of the transactions contemplated by
this Agreement; provided, however, that this indemnification shall not extend to any damages caused by the gross
negligence or willful misconduct of the Secured Party.

 

(f)        Change
of Jurisdiction of Organization; Relocation of Business or Collateral. Pledgors shall not change its jurisdiction of organization,
relocate its chief executive office, principal place of business or its records or allow the relocation of any Collateral (unless
such relocation is in the ordinary course of business) without thirty (30) days prior written notice to the Secured Party.

 

(g)        Limitations
on Modifications of Accounts, Etc. Upon the occurrence and during the continuation of any Event of Default (as defined in
the Purchase Agreement or Notes), Pledgors shall not, without the Secured Party’s prior written consent, grant any extension
of the time of payment of any of the accounts, chattel paper, instruments or amounts due under any contract or document, compromise,
compound or settle the same for less than the full amount thereof, release, wholly or partly, any person liable for the payment
thereof, or allow any credit or discount whatsoever thereon other than trade discounts and rebates or payment extensions granted
in the ordinary course of Pledgors’ respective business.

 

(h)        Insurance.
Pledgors shall maintain insurance policies insuring the Collateral against loss or damage from such risks and in such amounts
and forms and with such companies as are customarily maintained by businesses of similar type and size to each respective Pledgor.

 

(i)        Authority.
Each Pledgor has all requisite corporate or other powers and authority to execute this Agreement and to perform all of its obligations
hereunder, and this Agreement has been duly executed and delivered by Pledgors and constitutes the legal, valid and binding obligation
of Pledgors, enforceable in accordance with its terms. The execution, delivery and performance by Pledgors of this Agreement have
been duly authorized by all necessary corporate action and do not (i) require any authorization, consent or approval by any
governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign; (ii) violate any provision
of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to Pledgors
or the articles of incorporation or by-laws of each Pledgor; or (iii) result in a breach of or constitute a default under
any material indenture, Loan or credit agreement or any other agreement, lease or instrument to which each Pledgor is a party
or by which it or its properties may be bound or affected.

 

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(j)        Defense
of Intellectual Property. Debtor and Pledgor shall (i) use commercially reasonable efforts to protect, defend and maintain
the validity and enforceability of its material copyrights, patents, trademarks and trade secrets; (ii) use commercially
reasonable efforts to detect infringements of its copyrights, patents, trademarks and trade secrets and promptly advise Secured
Party in writing of material infringements detected; and (iii) not allow any copyrights, patents, trademarks or trade secrets
material to each Pledgor’s respective businesses to be abandoned, forfeited or dedicated to the public domain without the
written consent of Secured Party.

 

(k)        Maintenance
of Records. Pledgors will keep and maintain at its own cost and expense satisfactory and complete records of the Collateral
and may not relocate such books of account and records or tangible Collateral unless it delivers to the Secured Party at least
thirty (30) days prior to such relocation (i) written notice of such relocation and the new location thereof; and (ii) evidence
that appropriate financing statements under the UCC and other Required Filings have been filed and recorded and other steps have
been taken to create in favor of the Secured Party, a valid, perfected and continuing perfected first priority lien in the Collateral.

 

(l)        Inspection
Rights. Secured Party will have full access during normal business hours, and upon reasonable prior notice, to all of the
books, correspondence and other records of each Pledgor relating to the respective Collateral, and Secured Party or their representatives
may examine such records and make photocopies or otherwise take extracts from such records, subject to Pledgor’s reasonable
confidentiality requirements. Pledgors agree to render to Secured Party, at the expense of Pledgors, such clerical and other assistance
as may be reasonably requested with regard to the exercise of its rights pursuant to this paragraph.

 

(m)       Compliance
with Laws, Etc. Pledgors shall comply in all material respects with all laws, rules, regulations and orders of any governmental
authority applicable to any part of its respective Collateral or to the operation of each Pledgor’s businesses; provided,
however, that Pledgors may contest any such law, rule, regulation or order in any reasonable manner which does not, in
the reasonable opinion of Pledgors, adversely affect Secured Party’s rights or the priority of its liens on the Collateral.

 

(n)        Payment
of Obligations. Pledgors shall pay before delinquency all obligations associated with the Collateral, including license fees,
taxes, assessments and governmental charges or levies imposed upon the Collateral or with respect to any of its income or profits
derived from the Collateral; as well as all claims of any kind (including, without limitation, claims for labor, materials and
supplies) against or with respect to the Collateral, except that no such charge need be paid if (i) the validity or amount
of such charge is being contested in good faith by appropriate proceedings; (ii) such proceedings do not involve any material
danger of the sale, forfeiture or loss of any of the Collateral or any interest in the Collateral; and (iii) such charge
is adequately reserved against on the books of each Pledgor in accordance with generally accepted accounting principles. The obligation
of the Company to repay the Loan evidenced by the Note, together with all interest accrued thereon, is absolute and unconditional,
and there exists no right of set off or recoupment, counterclaim or defense of any nature whatsoever to payment of the Loan.

 

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(o)        Limitations
on Liens on Collateral. Except for Permitted Liens, neither Pledgor shall not create, incur or permit to exist, any liens
on the respective Collateral outside the scope of this Agreement other than purchase money liens, liens incurred in the ordinary
course of business, liens for taxes not yet delinquent or which are being contested in good faith , any lien on any real or personal
property at the time it is acquired, any lien renewing any of the foregoing, and shall defend the Collateral against, and shall
take such other action as is necessary to remove, any lien or claim on or to the Collateral, and shall defend the rights, title
and interest of Secured Party in and to any of the Collateral against the claims and demands of all other persons. Any prior security
interest and lien granted by Pledgors to Secured Party in connection with the Collateral shall remain in full force and effect,
and Secured Party shall continue to have a first-priority, perfected security interest in and lien upon the collateral described
therein.

 

(p)        Limitations
on Dispositions of Collateral. Neither Pledgor shall sell, transfer, lease or otherwise dispose of a material portion of the
respective Collateral, or offer or contract to do so without the written consent of Secured Party; provided, however,
that Pledgors will be allowed to (i) sell its respective inventories in the ordinary course of business, sell and grant non-exclusive
licenses to its products, intellectual property and related documentation in the ordinary course of business; and (iii) dispose
of obsolete or worn out inventory.

 

(q)        Good
Standing. Commencing on a date which shall be not more than thirty (30) days from the date of this Agreement, Pledgors shall
be and at all times preserve and keep in full force and effect its valid existence and good standing and any rights and franchises
material to its business.

 

(r)        Inventory.
Except in the ordinary course of business, Pledgor may not consign any of its inventory or sell any of its inventory on bill and
hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Secured Party which shall
not be unreasonably withheld or delayed.

 

(s)        Offices.
Cali Corp’s executive office is as set forth in Section 11(f) and the Company’s executive office is as set forth in
the Purchase Agreement; neither Pledgor may relocate its respective chief executive office to a new location without providing
thirty (30) days prior written notification thereof to the Secured Party and so long as, at the time of such written notification,
the respective Pledgor provides any financing statements or fixture filings necessary to perfect and continue the perfection of
the Security Interests granted and evidenced by this Agreement.

 

(t)        Certificates.
At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, such Pledgor shall deliver such Collateral
to the Secured Parties or Collateral Agent, as applicable.

 

(u)        Tangible
Chattel. Pledgors shall cause all tangible chattel paper constituting Collateral to be delivered to the Secured Party, or,
if such delivery is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the
security interest created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the respective
Pledgor shall cause the underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or
successor section thereto).

 

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(v)        Letter-of-Credit.
To the extent that any Collateral consists of letter-of-credit rights other than Permitted Liens, the respective Pledgor shall
cause the issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the Secured Party.

 

(w)       Third
Party. To the extent that any Collateral is in the possession of any third party, the respective Pledgor shall join with the
Secured Party in notifying such third party of the Secured Party’ security interest in such Collateral and shall use its
best efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance
reasonably satisfactory to the Secured Party.

 

(x)        Tort
Claims. If a Pledgor shall at any time hold or acquire a commercial tort claim, such Pledgor shall promptly notify the Secured
Party in a writing signed by the Pledgor of the particulars thereof and grant to the Secured Party in such writing a security
interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance
satisfactory to the Collateral Agent.

 

(y)        Further
Identification of Collateral. Each Pledgor has full rights, title and interest in and to all respective identified Collateral
listed on Exhibit “A”. Pledgors shall furnish to Secured Party from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the Collateral as Secured Party may reasonably
request, all in reasonable detail.

 

(x)       Keepwell
Agreement. Debtor acknowledges and confirms its obligations pursuant to this Agreement. While the Notes, the Loan and any
of the Obligations are outstanding, Debtor shall use its best efforts to take all actions as shall be necessary to enable it to
perform its obligations pursuant to this Agreement and shall not enter into any agreement the terms of which would restrict or
impair the ability of Cali Corp to perform its obligations under this Agreement.

 

4.        Collateral
Agent

 

a)        Appointment
of Collateral Agent. The holders of a majority of the then outstanding Notes (the “Majority Holders”) may collectively
appoint a Collateral Agent to act for them as collateral agent, to hold any pledged collateral and any other collateral perfected
by perfection or control for the benefit of the Purchasers and (ii) authorizes the Collateral Agent (and its officers, directors,
employees and agents) to take such action on such Purchaser's behalf in accordance with the terms hereof. Simultaneous with the
Majority Holders’ appointment of a Collateral Agent, such Collateral Agent shall agree to be a party to this Agreement by
executing and delivering the Collateral Agent counter signature page attached to this Agreement (the “Collateral Agent Document”),
following which the Collateral Agent shall be bound by each of the applicable terms and conditions of this Agreement and be a
party to this Agreement, effective as of the date of such execution. The Majority Holders shall promptly deliver a copy of the
Collateral Agent Document to the Debtor and Pledgor.

 

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b)        Liability.
The Collateral Agent shall not have, by reason hereof or pursuant to any Transaction Documents, a fiduciary relationship in
respect of any Purchaser. Neither the Collateral Agent nor any of its officers, directors, employees and agents shall have any
liability to any Purchaser for any action taken or omitted to be taken in connection hereof or the Transaction Documents except
to the extent caused by its own willful misconduct, and each Purchaser agrees to defend, protect, indemnify and hold harmless
the Collateral Agent and all of its officers, directors, employees and agents (collectively, the "Collateral Agent Indemnitees")
from and against any losses, damages, liabilities, obligations, penalties, actions, judgments, suits, fees, costs and expenses
(including, without limitation, reasonable attorneys' fees, costs and expenses) incurred by such Collateral Agent Indemnitee,
whether direct, indirect or consequential, arising from or in connection with the performance by such Collateral Agent Indemnitee
of the duties and obligations of the Collateral Agent pursuant hereto or any of the Transaction Documents except to the extent
caused by its own willful misconduct, including without limitation, in connection with the collection of such indemnification
from the Purchasers, up to such Purchaser's Pro Rata Indemnification Amount (as defined below). In the event a Purchaser does
not indemnify the Collateral Agent within five (5) Business Days of a ruling a court of competent jurisdiction to so indemnify
the Collateral Agent, the Collateral Agent shall be entitled to get indemnification from the other Purchasers for such unpaid
indemnification amount up to such other Purchasers' respective pro rata portion of such unpaid indemnification calculated by multiplying
(i) the aggregate dollar amount of such unpaid indemnification to the Collateral Agent, by (ii) the fraction, the numerator of
which is the sum of the aggregate principal amount of the Notes held by such Purchaser and the denominator of which is the sum
of the aggregate principal amount of the Notes then outstanding excluding the aggregate principal amount of the Note held by any
unpaying Purchaser. Each Purchaser may seek indemnification from other Purchasers to the extent it indemnified the Collateral
Agent pursuant to this Section 4(b) in excess of such Purchaser's pro rata portion of the Notes that are then outstanding calculated
by multiplying (i) the aggregate dollar amount of such indemnification to the Collateral Agent, by (ii) the fraction, the numerator
of which is the sum of the aggregate principal amount of the Notes held by such Purchaser and the denominator of which is the
sum of the aggregate principal amount of the Notes then outstanding (such fraction with respect to each holder is referred to
as its "Indemnification Allocation Percentage," and such amount with respect to each holder is referred to as
its "Pro Rata Indemnification Amount"); provided, however, that in the event that any
holder's Pro Rata Indemnification Amount exceeds the outstanding principal amount of such holder's Note, then such excess Pro
Rata Indemnification Amount shall be allocated amongst the remaining holders of Notes in accordance with the foregoing formula.
In the event that the initial holder of any Notes shall sell or otherwise transfer any of such holder's Notes, the transferee
shall be allocated a pro rata portion of such holder's Indemnification Allocation Percentage and Pro Rata Indemnification Amount.

 

c)        Reliance.
The Collateral Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or
any telephone message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper
person, and with respect to all matters pertaining to this Agreement or any of the other Transaction Documents and its duties
hereunder or thereunder, upon advice of counsel selected by it.

 

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d)        Resignation.
The Collateral Agent may resign from the performance of all its functions and duties hereunder and under the Transaction Documents
at any time by giving at least ten (10) Business Days prior written notice to the Company and each holder of the Notes. Such resignation
shall take effect upon the acceptance by a successor Collateral Agent of appointment as provided below. Upon any such notice of
resignation, the Majority Holders shall appoint a successor Collateral Agent. Upon the acceptance of the appointment as Collateral
Agent, such successor Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Collateral Agent, and the retiring Collateral Agent shall be discharged from its duties and obligations under
this Agreement, the Notes and the Transaction Documents. After any Collateral Agent's resignation hereunder, the provisions of
this Section 4 shall inure to its benefit. If a successor Collateral Agent shall not have been so appointed within said
ten (10) Business Day period, the retiring Collateral Agent, shall then appoint a successor Collateral Agent who shall
serve until such time, if any, as the Majority Holders appoints a successor Collateral Agent as provided above.

 

e)        The
Company hereby covenants and agrees to take all actions as promptly as practicable reasonably requested by either the Majority
Holders or the Collateral Agent (or its successor), from time to time pursuant to the terms of this Section 4, to secure a successor
Collateral Agent satisfactory to such requesting part(y)(ies), in their sole discretion, including, without limitation, by paying
all fees of such successor Collateral Agent, by having the Company agree to indemnify any successor Collateral Agent and by executing
a collateral agency agreement or similar agreement and/or any amendment to the Transaction Documents reasonably requested or required
by the successor Collateral Agent.

 

f)         Appointment
as Attorney-in-Fact. Pledgors and Secured Party hereby appoint the Collateral Agent to act on behalf of Secured Party, with
full power of substitution, as its attorney-in-fact with full irrevocable power and authority in the place of Pledgors and in
the name of Pledgors or in its own name, so long as an Event of Default has occurred and is continuing, for the purpose of carrying
out the terms of this Agreement, to take any and all appropriate action and to execute any instrument which may be necessary or
desirable to accomplish the purposes of this Agreement. Without limiting the foregoing, so long as an Event of Default has occurred
and is continuing, Secured Party, through the Collateral Agent, in its discretion, will have the right, without notice to, or
the consent of Pledgors, to do any of the following on behalf of Pledgors:

 

(i)        to
pay or discharge any obligations in connection with the Collateral, including license fees and taxes or liens levied or placed
on or threatened against the Collateral;

 

(ii)       to
direct any party liable for any payment under any of the Collateral to make payment of any and all amounts due or to become due
thereunder directly to Secured Party or as Secured Party directs;

 

(iii)      to
ask for or demand, collect and receive payment of and receipt for any payments due or to become due at any time in respect of
or arising out of any Collateral;

 

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(iv)     to
commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to enforce
any right in respect of any Collateral;

 

(v)      to
defend any suit, action or proceeding brought against any Pledgors with respect to any Collateral;

 

(vi)     to
settle, compromise or adjust any suit, action or proceeding described in subsection (v) above and, to give such discharges or
releases in connection therewith as Secured Party may deem appropriate;

 

(vii)    to
assign any license or patent right included in the respective Collateral of a Pledgor (along with the goodwill of the business
to which any such license or patent right pertains), throughout the world for such term or terms, on such conditions and in such
manner as Secured Party in their sole discretion determine;

 

(viii)   to
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral and to take, at Secured
Party’s option and Pledgors’ expense, any actions which Secured Party deem necessary to protect, preserve or realize
upon the Collateral and Secured Party’s liens on the Collateral and to carry out the intent of this Agreement, in each case
to the same extent as if Secured Party were the absolute owners of the Collateral for all purposes;

 

(ix)      to
exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of Pledgors to
receive the dividends and interests which it would otherwise be authorized to receive and retain, shall cease. Upon such notice,
Collateral Agent shall have the right to receive, for the benefit of the Secured Party, any interest, cash dividends or other
payments on the Collateral and, at the option of the Collateral Agent, to exercise in such Collateral Agent’s discretion
all voting rights pertaining thereto. Without limiting the generality of the foregoing, Collateral Agent shall have the right
(but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof,
including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection
with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral of
Pledgors or any of its direct or indirect subsidiaries;

 

(x)       to
operate the Business of Debtor using the Collateral, and shall have the right to assign, sell, lease or otherwise dispose of and
deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or
stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place
or places, and upon such terms and conditions as the Collateral Agent may deem commercially reasonable, all without (except as
shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of
redemption of a Pledgor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral,
the Secured Party, may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral
being sold, free from and discharged of all trusts, claims, right of redemption and equities of any Pledgor, which are hereby
waived and released;

 

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(xi)        to
sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents relating to the Collateral;
and

 

(xii)        to
notify Pledgors and any obligors under instruments or accounts to make payments directly to the Collateral Agent, on behalf of
the Secured Party, and to enforce Pledgors’ rights against such account Pledgor and obligors.

 

Pledgors
hereby ratify whatever actions Secured Party or the Collateral Agent, as applicable lawfully does or causes to be done in accordance
with this Section 4. This power of attorney will be a power coupled with an interest and will be irrevocable.

 

g)        No
Duty on Secured Party’s Part. The powers conferred on Secured Party and the Collateral Agent by this Section 4
are solely to protect Secured Party’s interest in the Collateral and do not impose any duty upon it to exercise any such
powers. Secured Party will be accountable only for amounts that it actually receives as a result of the exercise of such powers,
and neither Secured Party nor any of their officers, directors, employees or agents will, in the absence of willful misconduct
or gross negligence, be responsible to Pledgors for any act or failure to act pursuant to this Section 4.

 

h)        Application
of Proceeds. The proceeds of any sale, lease or other disposition of the Collateral hereunder or from payments made on account
of any insurance policy insuring any portion of the Collateral shall be applied: (i) first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable fees of the Collateral Agent and reasonable attorneys’
fees and expenses incurred by the Collateral Agent in enforcing the Secured Party’ rights hereunder and in connection with
collecting, storing and disposing of the Collateral; and, (ii) second, to satisfaction of the Obligations pro rata among
the Secured Parties (based on then-outstanding principal amounts of the Notes at the time of any such determination), and to the
payment of any other amounts required by applicable law, after which the Secured Party shall pay to the respective Pledgor any
surplus proceeds.

 

i)         Liability
for Deficiency. Upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay
all amounts to which the Secured Party are legally entitled, Debtor will be liable for the deficiency, together with interest
thereon, at the Default Rate set forth in the Notes or the lesser amount permitted by applicable law (the “Default Rate”),
and the reasonable fees of any attorneys employed by the Secured Party to collect such deficiency. To the extent permitted by
applicable law, Pledgor and Debtor waive all claims, damages and demands against the Secured Party arising out of the repossession,
removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Party
as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

 

5.        Duty
To Hold In Trust. Upon the occurrence of any Event of Default and at any time thereafter, the respective Pledgor shall, upon
receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant to
the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any
such sum, hold the same in trust for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments,
or both, in accordance with the provisions of Section 4(h) above and if any amounts are remaining to the Secured Parties, pro
rata in proportion to their respective then-currently outstanding principal amount of Note for application to the satisfaction
of the Obligations.

 

    	 	10	 

     

    

 

6.        Expenses
Incurred by Secured Party. If either Pledgor fails to perform or comply with any of its agreements or covenants contained
in this Agreement, and Secured Party performs or complies, or otherwise causes performance or compliance, with such agreement
or covenant in accordance with the terms of this Agreement, then the reasonable expenses of Secured Party incurred in connection
with such performance or compliance will be payable by the respective Pledgor to the Secured Parties on demand and will constitute
Obligations secured by this Agreement.

 

7.        Remedies.
If an Event of Default has occurred and is continuing, Secured Party may exercise, in addition to all other rights and remedies
granted to it in this Agreement and in any other instrument or agreement relating to the Obligations, all rights and remedies
of a Secured Party under the Nevada Uniform Commercial Code, as amended from time to time (the “Nevada Code”)
and the California Commercial Code, as amended form time to time (the “California Code,” together with the
Nevada Code, the “Code”). Without limiting the foregoing, in such circumstances, without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law) to or upon Pledgors
or any other person (all of which demands, defenses, advertisements and notices are hereby waived), Secured Party may collect,
receive, appropriate and realize upon any or all of the Collateral and/or may sell, lease, assign, give an option or options to
purchase or otherwise dispose of and deliver any or all of the Collateral (or contract to do any of the foregoing), in one or
more parcels at public or private sale or sales, at any exchange, broker’s board or office of Secured Party or elsewhere
upon such terms and conditions as Secured Party may deem advisable, for cash or on credit or for future delivery without assumption
of any credit risk. Secured Party will have the right upon any such public sale or sales and, to the extent permitted by law,
upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of any right or equity of redemption
in Pledgors, which right or equity is hereby waived or released. Subject to the provisions of Section 4(h), Secured Party will
apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable
expenses incurred therein or in connection with the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of Secured Party under this Agreement (including, without limitation, reasonable attorneys’ fees
and expenses) to the payment in whole or in part of the Obligations, in such order as Secured Party may elect, and only after
such application and after the payment by Secured Party of any other amount required by any provision of law, need Secured Party
account for the surplus, if any, to the respective Pledgor. To the extent permitted by applicable law, Pledgors waive all claims,
damage and demands it may acquire against Secured Party arising out of the exercise by Secured Party of any of its rights hereunder.
If any notice of a proposed sale or other disposition of Collateral is required by law, such notice will be deemed reasonable
and proper if given at least ten (10) days before such sale or other disposition. Pledgors will remain liable for any deficiency
of Pledgors if the proceeds of any sale or other disposition of the Collateral are insufficient to pay the Obligations and the
reasonable fees and disbursements of any attorneys employed by Secured Party to collect such deficiency.

 

    	 	11	 

     

    

 

8.        Limitation
on Duties Regarding Preservation of Collateral. The sole duty of Secured Party with respect to the custody, safekeeping and
preservation of the Collateral, under the appropriate Code section or otherwise, will be to deal with it in the same manner as
Secured Party deals with similar property for its own account. Neither Secured Party nor any of its employees, affiliates or agents
will be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or
will be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgors or otherwise.

 

9.        Powers
Coupled with an Interest. All authorizations and agencies contained in this Agreement with respect the Collateral are irrevocable
and powers coupled with an interest.

 

10.       No
Waiver; Cumulative Remedies. Secured Party will not by any act (except by a written instrument pursuant to Section 11(a)
hereof) of delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any Event of Default under the Note or in any breach of any of the terms and conditions of this Agreement. No failure to exercise,
nor any delay in exercising, on the part of Secured Party, any right, power or privilege hereunder will operate as a waiver thereof.
No single or partial exercise of any right, power or privilege hereunder will preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by Secured Party of any right or remedy under this Agreement on
any one occasion will not be construed as a bar to any right or remedy that Secured Party would otherwise have on any subsequent
occasion. The rights and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently and are not
exclusive of any rights or remedies provided by law.

 

11.       Miscellaneous.

 

(a)       Amendments
and Waivers. Any term of this Agreement may only be amended by prior written consent of Debtor, Cali Corp and the Majority
Holders, as defined in the Purchase Agreement. Any amendment or waiver effected in accordance with this Section 11(a) will be
binding upon all of the parties hereto and their respective successors and assigns.

 

(b)       Transfer;
Successors and Assigns. This Agreement will be binding upon and inure to the benefit of Pledgors and Secured Party, and their
respective successors or assigns. Pledgors may not assign any of its/his rights or delegate any of its/his duties under this Agreement.

 

(c)       Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of Nevada without regard to
the laws that might be applicable under conflicts of laws principles.

 

(d)       Counterparts.
This Agreement may be executed in any number of counterparts (including by facsimile), each of which will be an original, but
all of which together will constitute one instrument.

 

(e)       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

    	 	12	 

     

    

 

(f)        Notices.
All notices, requests and demands to or upon the Secured Party or Debtor hereunder shall be effected in the manner provided for
in the Purchase Agreement. All notices, requests and demands to or upon Cali Corp. shall be effected in the manner provided for
in the Purchase Agreement and the address for such notice is: 250 W. 1st Street, Suite 310, Claremont, CA 91711, Facsimile:
888-323-6960.

  

(g)       Term.
This Agreement shall terminate on the date on which all payments under the Notes have been indefeasibly satisfied in full and
all other Obligations have been satisfied in full or discharged (through cash payment or conversion); provided, however, that
all indemnities of the Notes contained in this Agreement shall survive and remain operative and in full force and effect regardless
of the termination of this Agreement. Upon such termination, any party may terminate the financing statement(s) filed pursuant
hereto.

 

(h)       Severability.
In the event that any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such provision(s) shall be ineffective only to the extent of such invalidity, illegality or unenforceability
without invalidating the remainder of such provision or the remaining provisions of this Agreement and such invalidity, illegality
or unenforceability shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

(i)        Entire
Agreement. This Agreement and the other documents evidencing, securing, or relating to the Notes constitute the entire understanding
and agreement between the parties with regard to the subjects hereof and thereof and supersede all prior agreements, representations
and undertakings of the parties, whether oral or written, with respect to such subject matter.

 

 Signature
pages follow

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, Debtor, Cali Corp. and Secured Party have caused this Agreement to be duly executed and delivered as of the date
first above written.

  

SECURED
PARTY:

  

The
Secured Parties have executed a Purchase Agreement with the Company which provides, among other things, that by executing the
Purchase Agreement, each Purchaser is deemed to have executed this Agreement in all respects and is bound to purchase the Notes
set forth in the Purchase Agreement.

 

Debtor
and Pledgors Signature Page Follows

 

    	 	14	 

     

    

 

	 	DEBTOR & PLEDGOR:
	 	REDWOOD SCIENTIFIC TECHNOLOGIES, INC. (A Nevada Corporation)
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	PLEDGOR:
	 	REDWOOD SCIENTIFIC TECHNOLOGIES,
	 	INC. (A California Corporation)
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Collateral
Agent (if applicable) Signature Page Follows

 

    	 	15	 

     

    

  

	 	COLLATERAL AGENT:
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
		Date:	 

 

    	 	16	 

     

    

 

EXHIBIT
“A”

 

DESCRIPTION
OF COLLATERAL

 

"Collateral”
means the collateral in which the Secured Party are granted a security interest by this Agreement and which shall include
the following personal property of Pledgors, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds,
products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of
insurance covering the same and of any tort claims in connection therewith:

 

(i)       
All accounts receivable and other rights to receive payments from customers;

 

(ii)       all
goods and equipment, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers),
any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions and
improvements to any of the foregoing;

 

(iii)      all
inventory, including, without limitation, all merchandise, raw materials, parts, supplies, all documents of title representing
any of the foregoing, packing and shipping materials, work in process and finished products including such inventory as is temporarily
out of Pledgors’ custody or possession or in transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any
of the above;

 

(iv)     all
contract rights (including license rights and option rights) and general intangibles (including payment intangibles);

 

(v)      all
intellectual property rights, patents, patent applications, trademarks, accounts, contract rights, royalties, license rights and
all other forms of obligations owing to Pledgor and arising out of the sale or lease of goods, the licensing of technology or
other intellectual property rights or the rendering of services by Pledgors, whether or not earned by performance, and any and
all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Pledgors;

 

(vi)     all
documents, cash, deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets,
letters of credit, certificates of deposit, supporting obligations, instruments and chattel paper and Pledgors’ books relating
to the foregoing;

 

(vii)    all
of Pledgors’ books, records and data relating to any of the foregoing in any form whatsoever and any and all claims, rights
and interests in any of the above and all substitutions therefore, additions and accessions thereto and proceeds thereof;

 

(viii)   all
rights, remedies, powers and/or privileges of Pledgors with respect to any of the foregoing;

 

    	 	A-1	 

     

    

 

(ix)       any
and all proceeds and products of the foregoing, including, all money, accounts, general intangibles, deposit accounts, documents,
instruments, letter-of-credit rights, investment property, chattel paper, goods, insurance proceeds and any other tangible or
intangible property received upon the sale or disposition of any of the foregoing; provided that, to the extent that the
provisions of any contract, license or agreement expressly prohibit (which prohibition is enforceable under applicable law) the
assignment thereof and the grant of a security interest therein, Pledgors’ rights in such contract, license or agreement
shall be excluded from the foregoing assignment and grant for so long as such prohibition continues, it being understood
that upon request of Secured Party, Pledgors shall in good faith use commercially reasonable efforts to obtain consent for the
creation of a security interest in favor of Secured Party in Pledgors’ rights under such contract, license or agreement;
and,

 

(x)       all
of the shares of Cali Corp. owned by the Company.

 

 

A-2Exhibit 10.9

 

Employment
Agreement

     

This EMPLOYMENT AGREEMENT (“Agreement”)
dated effective as of January 29, 2016 (the “Effective Date”), is between Redwood Scientific Technologies, Inc., a
Nevada Corporation (the “Company”), and Jason E. Cardiff (“Executive”).

 

WITNESSETH

 

WHEREAS, the Company desires to employ Executive
as President and Chief Executive Officer (“CEO”) of the Company;

 

WHEREAS,
the Company and Executive desire to enter into the Agreement as to the terms of his employment by the Company;

 

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

 

This
Agreement is 9 pages. This Agreement constitutes the entirety of the terms of employment between Employer and Employee.
This Agreement, along with any exhibits, appendices, addendums, schedules, and amendments hereto, encompasses the entire agreement
of the parties, and supersedes all previous understandings and agreements between the parties, whether oral or written. The parties
hereby acknowledge and represent, by affixing their hands and seals hereto, that said parties have not relied on any representation,
assertion, guarantee, warranty, collateral contract or other assurance, except those set out in this Agreement, made by or on
behalf of any other party or any other person or entity whatsoever, prior to the execution of this Agreement. The parties hereby
waive all rights and remedies, at law or in equity, arising or which may arise as the result of a party’s reliance on such
representation, assertion, guarantee, warranty, collateral contract or other assurance, provided that nothing herein contained
shall be construed as a restriction or limitation of said party’s right to remedies associated with the gross negligence,
willful misconduct or fraud of any person or party taking place prior to, or contemporaneously with, the execution of this Agreement.

 

	 	 	 	 
	Company Initial	 	Executive Initial	 

 

1.
Formation of Agreement.

 

This
is an offer for employment according to the terms recited herein. Acceptance of this offer for employment, and formation of the
employment contract, is effectuated upon Employer’s receipt of a duly signed Agreement.

 

     

     

    

 

2. Position
and Responsibilities.

          

(a) The Company hereby
employs Executive and Executive hereby accepts continued employment by the Company as the Company’s President and CEO. In
this capacity Executive shall have such duties, authorities and responsibilities commensurate with the duties, authorities and
responsibilities of persons in similar capacities in similarly sized companies, and such other duties and responsibilities as
determined by the Board of Directors (“Board”). Executive shall report directly to the Board.

          

(b) Throughout
the term of this Agreement, Executive shall devote substantially all of his working time (excluding periods of vacation and other
approved leaves of absence), energy, attention, skill and best efforts to the affairs of the Company and to the performance of
his duties hereunder in a manner that will faithfully and diligently further the business and interests of the Company. Approval
of board memberships will be at the discretion of the CEO, however, such approval will not be unreasonably withheld, provided
that such activities do not significantly interfere with Executive’s duties under this Agreement. Executive shall comply
with the Company’s Code of Ethical Standards and Business Practices.

 

3.
Employment Term.

 

(a) Executive’s
term of employment under this agreement shall be for a term commencing on January 29, 2016 and, unless terminated earlier as provided
for in Section 7 hereof, end twelve (12) months later.

            

(b)
Renewal or extension of the Employment term may only be effectuated by mutual written agreement between the parties. In absence
of such written Agreement, Executive’s employment will continue according to the terms of this Agreement on a monthly basis.

 

4. Compensation.

          

(a) Salary. Executive
shall receive a base salary (the “Base Salary”) at the annual rate of $65,000 plus three percent (3%) of EBIDA not
to exceed $300,000 beginning on the effective date of this agreement. Executive shall only receive salary when this agreement
is effective.

 

(b)
Stock Award. Company intends to establish a Stock Award Plan. Although such plan is not currently in place, it is expressly
contemplated that CEO be part of this stock plan. Once the stock plan is established an implemented, a “Stock Plan Addendum”
will be duly executed and attached to this Agreement as an addendum. Company and CEO agree to negotiate this future stock plan
in good faith.

 

(c)
Discretionary Grants. In addition to the Stock Award contemplated under this Section, at the sole discretion of the Board,
Executive shall be eligible for grants of stock options and other equity awards.

 

    2

     

    

 

(d)
Notwithstanding any other provision, in the event of a change in control, all equity awards (including, but not limited to, any
options or stock grants made subsequent to the date of this Agreement) shall fully vest and be immediately exercisable. A change
in control means the consummation after the date hereof of a transaction or series of related transactions that results in any
person or group (“group”) as defined in the rules and regulations promulgated under the Securities Exchange Act of
1934, as amended) acquiring (i) directly or indirectly by merger or otherwise more than 50% of the Company’s securities
entitled to vote in the election of directors, (ii) all or substantially all of the assets of the Company or (iii) the right to
elect a majority of members of the Company’s Board of Directors.

 

(e)
Option to Have Company Repurchase Stock and Options. If Executive dies while employed, the Company shall, subject to any
restrictions contained in any credit or similar agreements or that exist under California state law, offer to purchase all of
Executive’s stock and any outstanding options, which are vested at the time of death at fair market value.

 

(f)
Compliance with Section 409A. The Company agrees not to take any action (or omit to take any action that is required to
be taken) in respect of the Stock Award (or any other similar award) that is materially inconsistent with, contrary to or in material
breach of the terms of the SA, that causes Executive to incur tax in respect of a violation of Section 409A of the Code. If Executive
or the Company believes, at any time, that any feature of Executive’s compensation or benefits (including the SA) does not
comply with (or is not exempt from) Section 409A of the Code or that any action taken or contemplated to be taken (including any
failure to take action) in regards to compensation or benefits caused or might cause a violation of Section 409A of the Code,
Executive or the Company will promptly advise the other and will reasonably negotiate in good faith to amend the terms of the
payments or benefits or alter the action or contemplated action in order that such payments or benefit arrangements comply with
(or are exempt from) the requirements of Section 409A of the Code or in order to mitigate any additional taxes that may apply
under Section 409A of the Code if compliance or exemption is not practicable.

 

For
the avoidance of doubt, the Company is not responsible for the payment of any taxes, including income and excise taxes, that Executive
may incur under Section 409A of the Code, nor will the Company indemnify Executive for any such liability, unless the Company
breaches a material term of this Agreement or of any compensatory program in which Executive participates and that breach is the
cause of the 409A taxation/penalties.

 

    3

     

    

 

5. Executive
Benefits.

 

		(a)	Medical
                                         Insurance. During the term of his employment, Executive and his eligible dependents
                                         shall be eligible to participate in the Company’s group medical, dental and vision
                                         plans (the “Health Plans”) in accordance with the terms of the Health Plans
                                         and, subject to the restrictions and limitations contained in the insurance agreement
                                         or agreements.

 

		(b)	Benefit
                                         Plans. Executive shall be eligible to participate in the Company’s profit sharing
                                         plan, deferred compensation plan, 401k plan, long-term disability plan and Executive
                                         benefit programs, if any, generally made available to other Executives of the Company,
                                         subject to their respective generally applicable eligibility requirements, terms, conditions
                                         and restrictions; provided, however, that severance payments under this Agreement shall
                                         be in lieu of any severance benefits otherwise provided by the Company. However, nothing
                                         in this Agreement shall preclude the Company from amending or terminating any such insurance,
                                         benefit, program or plan so long as the amendment or termination is applicable to the
                                         Company’s executives participating in such insurance, benefit, program or plan
                                         generally.

 

		(c)	Paid
                                         Time Off. Executive shall be entitled  four weeks paid vacation per calendar year,
                                         which vacation entitlement shall be pro-rated in any calendar year in which Executive
                                         does not work the entire calendar year.

 

		(d)	Business
                                         and Entertainment Expenses. Upon presentation of appropriate documentation, and written
                                         approval by the CEO, Executive shall be reimbursed in accordance with the Company’s
                                         expense reimbursement policy for all reasonable and necessary business and entertainment
                                         expenses incurred in connection with the performance of his duties hereunder, including
                                         but not limited to:

 

		a.	The
                                         cost and provision of a mobile telephone service; and the provision of a personal computer
                                         and broadband connection for remote/home office use; and
	 	 	 
		b.	The
                                         reasonable costs of attending conferences, seminars, training and professional development
                                         courses and study relevant to the performance of his duties; and
	 	 	 
		c.	Membership
                                         fees and subscriptions payable to professional associations, the membership of which
                                         is reasonably necessary or desirable to hold in the performance of his duties.

        

    4

     

    

 

6. Termination
of Employment. Notwithstanding any other provision of this Agreement, Executive’s employment and all of the Company’s
obligations or liabilities under this Agreement may be terminated immediately in any of the following circumstances:

          

(a)
Disability or Incapacity. In the event of Executive’s physical or mental inability to perform his essential duties
hereunder, for a period of greater than six (6) months and where all leave entitlements have been exhausted during the term of
this Agreement.

          

(b)
Death of Executive. In the event of Executive’s death.

          

(c)
Resignation for Good Reason. Executive may resign for “Good Reason,” defined below, upon 30 days’
written notice by Executive to the Company. The Company may waive Executive’s obligation to work during this 30-day notice
period and terminate his employment immediately, but if the Company takes this action in the absence of agreement by Executive,
Executive shall receive the salary that otherwise would be due through the end of the notice period. For purposes of this Agreement,
“Good Reason” shall mean any of the following violations of this Agreement by the Company: any reduction in Executive’s
Base Salary; except as provided in this Agreement, any reduction in Executive’s potential bonus percentage amounts; a material
change in geographic location from which Executive must perform his services, notwithstanding provisions in Section 6; any significant
diminution of Executive’s responsibility or authority, any material failure of the successors to the Company after a Change
of Control to perform or cause the Company to perform the obligations of the Company under this Agreement; and any substantial
breach by the Company of any material provision of this Agreement. Notwithstanding the foregoing, the acts or omissions described
above shall not constitute “Good Reason” unless Executive provides the Company with written notice detailing the matters
she asserts to be “Good Reason” which the Company does not cure within thirty (30) days of receiving the written
notice.

          

(d) Discharge
for Cause. The Company may discharge Executive at any time for “Cause,” which shall be limited
to: Executive’s material and serious breach or neglect of Executive’s responsibilities; willful violation or
disregard of standards of conduct established by law; willful violation or disregard of standards of conduct established by
Company policy as may from time to time be communicated to Executive; fraud, willful misconduct, misappropriation of funds or
other dishonesty; conviction of a crime of moral turpitude; or any material breach by Executive of any provision of this
Agreement. Executive shall not be discharged for Cause unless and until the CEO provides written notice of the ground for the
termination for "Cause", specifying the particulars thereof in detail.  

 

(e)
Discharge without Cause. Notwithstanding any other provision of this Agreement, Executive’s employment and any and
all of the Company’s obligations under this Agreement (excluding any obligations the Company may have under paragraph 8
below) may be terminated by the Company at any time without Cause.

 

(f)
Return of Company Property. When the employment relationship between the Company and the Executive is terminated for whatever
reason, the Executive agrees to immediately return to the Company all tangible and intangible property belonging to, leased, or
otherwise provided to the Executive by the Company, including without limitation any and all: stationery, books, business cards,
documents, records, disks, access cards, mobile telephone, computer hardware, credit cards, cars or keys; materials provided to
the Executive by the Company, unless otherwise agreed in writing by the Company.

     

    5

     

    

 

7. Payments
Upon Termination.

          

(a)
Discharge Without Cause, or Resignation for Good Reason. If Executive is discharged without Cause or resigns for Good Reason during the Initial Term, Executive shall
receive severance pay equal his Base Salary for six (6) months. The severance payment shall be payable in a lump sum as soon as
practicable, but no later than 60 days of Executive’s termination of employment. The severance payment will be made provided
that Executive signs and does not timely revoke a general release of claims (including, without limitation, contractual, common
law and statutory claims) against the Company and its officers, directors, Executives and agents. Executive will also receive any
vested benefits to which Executive is entitled under the Company’s compensation and Executive benefit plans in accordance
with, to the extent provided in, and subject to the restrictions and payout schedules contained in those plans, including, but
not limited to the company’s Stock Plan.

 

(b)
Vesting Acceleration. If the Company terminates your Employment for any reason other than Cause, death or Disability, then
Executive receives those shares that vested during Executive’s employment with Company, plus the shares set to vest upon
the next immediate vestment period. The remainder of shares to be vested are forfeited.

                    

(c)
Discharge for Cause. If Executive is discharged for Cause or resigns without Good Reason, Executive’s sole entitlement
will be the receipt of Base Salary for any days worked through the date of termination and any vested benefits to which Executive
is entitled under the Company’s compensation and Executive benefit plans in accordance with, to the extent provided in,
and subject to the restrictions and payout schedules contained in those plans, including, but not limited to the company’s
Stock Plan.

              

8. Company
Property. All advertising, sales, manufacturers’ and other materials or articles or information, including, without
limitation, data processing reports, customer sales analyses, invoices, price lists or information or any other materials or data
of any kind furnished to Executive by the Company or developed by Executive on behalf of the Company or at the Company’s
direction or for the Company’s use or otherwise in connection with Executive’s employment with the Company, are and
shall remain the sole and confidential property of the Company.

     

9. Non-Solicitation
and Confidentiality. To the maximum extent permissible by law:

          

(a) During
his employment with the Company and for a period of one year after the termination of his employment with the Company for any
reason whatsoever, whether by Executive or by the Company and whether during the term of this Agreement or subsequent to the expiration
of this Agreement, Executive shall not, directly or indirectly induce or intentionally influence any customer, Executive, consultant,
independent contractor or supplier of the Company to change his, her or its business relationship with or terminate employment
with the Company.  

     

    6

     

    

          

(b) During
his employment with the Company and at all times thereafter, and except as required by law, Executive shall not use for his personal
benefit, or disclose, communicate or divulge to, or use for the direct or indirect benefit of, any person, firm, association or
company other than the Company, any confidential information of the Company that Executive acquires in the course of his employment,
which is not otherwise lawfully known by and readily available to the general public. This confidential information includes,
but is not limited to: any non-public information regarding the business, marketing, policies, plans, procedures, strategies or
techniques; research or development projects or results; trade secrets or other knowledge or processes of or developed by the
Company; names and addresses of Executives, suppliers or customers. Executive confirms that such information is confidential and
constitutes the exclusive property of the Company, and agrees that, immediately upon his termination, whether by Executive or
by the Company and whether during the term of this Agreement or subsequent to the expiration of this Agreement, Executive shall
deliver to the Company all correspondence, documents, books, records, lists, computer programs and other writings relating to
the Company’s business.

 

(c) Both during his
employment with the Company and following his termination for any reason, whether by Executive or by the Company and whether during
the term of this Agreement or following the expiration of the Agreement, Executive shall, upon reasonable notice, furnish to the
Company such information pertaining to his employment with the Company as may be in his possession. The Company shall reimburse
Executive for all reasonable expenses incurred by his in fulfilling his obligation under this subparagraph (c).

 

(d) The provisions
of subparagraphs (a), (b) and (c) shall survive the cessation of Executive’s employment for any reason, as well as
the expiration of this Agreement at the end of its term or at any time prior thereto.

 

(e) Executive agrees
that if any or any portion of the foregoing covenants, or the application thereof, is construed to be invalid or unenforceable,
the remainder of such covenant or covenants or the application thereof shall not be affected and the remaining covenant or covenants
will then be given full force and effect without regard to the invalid or unenforceable portions. If any covenant is held to be
unenforceable because of the area covered, the duration thereof, or the scope thereof, Executive agrees that the Court making
such determination shall have the power to reduce the area and/or the duration, and/or limit the scope thereof, and the covenant
shall then be enforceable in its reduced form. If Executive violates any of the restrictions contained in subparagraphs (a) or
(b), the period of such violation (from the commencement of any such violation until such time as such violation shall be cured
by Executive to the satisfaction of the Company) shall not count toward or be included in the restrictive period contained in
subparagraphs (a) and (b).

       

    7

     

    

   

10. Entire
Understanding. This Agreement contains the entire understanding between the Company and Executive with respect to the subject
matter hereof and supersedes all prior and contemporary agreements and understandings, inducements or conditions, express or implied,
written or oral, between the Company and Executive except as herein contained. The express terms hereof control and supersede
any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

     

11. Modifications.
This Agreement may not be modified orally but only by written agreement signed by Executive and the Company’s CEO or such
other person as the Board may designate specifically for this purpose.

     

12. Provisions
Separable. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

     

13. Consolidation,
Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from consolidating or merging into or with,
or transferring all or substantially all of its assets to, another entity that assumes this Agreement and all obligations and
undertakings of the Company hereunder. Under such a consolidation, merger or transfer of assets and assumption, the term “the
Company” as used herein, shall mean such other entity and this Agreement shall continue in full force and effect.

 

14.
Notice. “Notice”, “Written Notice”, or “Written Consent” under this agreement is deemed
satisfied by any written method of transmission, whether electronic or otherwise. Such written transmissions expressly include
email and text message transmissions. If notice of any fact is established by the acts of the Employee, “Notice”,
“Written Notice”, or “Written Consent” by the Employer shall be deemed waived.     

         

15. No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or
similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect.  

     

16. Binding
Agreement. This Agreement shall be binding upon, and shall inure to the benefit of the Company and its successors, representatives,
and assigns and shall be binding upon Executive, his heirs, executors and legal representatives.

    

17. No
Assignment by Executive. Executive acknowledges that the services to be rendered by his are unique and personal. Accordingly,
Executive may not assign or delegate any of his rights or obligations hereunder, except that he may assign certain rights hereunder
if agreed to in writing by the Board.

    

    8

     

    

 

18. Indulgences.
Neither the failure nor any delay on the part of either party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right,
remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with
respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have
granted such waiver.

          

19. Choice
of Law and Forum. Any controversy between the parties to this Agreement regarding the construction, application, or performance
of any duty under this Agreement and any claim arising out of or relating to this Agreement or its breach shall be governed by
the laws of the State of California. Additionally, the forum for any such controversy shall be JAMS Arbitration, Mediation, and
ADR Service Center in Orange, California.

 

20.
Mandatory Binding Arbitration. Any controversy between the parties to this Agreement regarding the construction, application,
or performance of any duty under this Agreement and any claim arising out of or relating to this Agreement or its breach shall
be submitted to mandatory binding arbitration. The cost of arbitration shall be governed by JAMS Commercial Arbitration Rules.

 

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound, have duly executed and delivered, this Agreement as of the
date first above written.

 

	Redwood
    Scientific Technologies, Inc.  	 
	 	 	 
	By:	 	 
	 	Jason
    Cardiff, CEO, President	 

 

	EXECUTIVE:	 
	 	 
	 	 
	Jason E. Cardiff
	 

 

 

9

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