Document:

Consulting Agreement by and between Redwood Consultants, LLC and the Company

 Exhibit 10.10 
 INVESTOR RELATIONS CONSULTING AGREEMENT 
 This Consulting Agreement
(the “Agreement”) effective as of March 2, 2010 is entered into by and between Ampio Pharmaceuticals Inc, formerly referred to as DMI Life Sciences, Inc., a Colorado corporation (herein referred to as the “Company”) and
Redwood Consultants, LLC, a California Limited Liability Company (herein referred to as “RC” or the “Redwood”) or it’s successors, designees or assignees, and replaces and supercedes any and all other agreements between the
above parties. 
 RECITALS 
 WHEREAS, Company is a publicly-held corporation with its common stock traded on the OTC BB Market under the symbol CHYE; and 
 WHEREAS, Company desires to engage the services of Redwood to advise the Company regarding investor communications, and public relations with existing shareholders, brokers, dealers and other
investment professionals as to the Company’s current and proposed activities, and to consult with management concerning such Company activities; 
 NOW THEREFORE, in consideration of the promises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows: 
 1. Term of Consultancy. Company hereby agrees to retain Redwood to act in an advisory and consulting capacity to the Company and Redwood hereby agrees to provide services to the Company commencing
upon March 2, 2010 and ending, unless extended, on January 12, 2011. 
 2. Duties of Redwood. Redwood agrees that it will
generally provide the following specified advisory and consulting services through its officers, employees, consultants and other professionals during the term specified in Section 1: 
  

	 	(a)	Advise, consult and assist the Company in developing and implementing appropriate plans and means for presenting the Company and its business plans, strategy and
personnel to the financial community, assist in establishing an image for the Company in the financial community, and assist in creating the foundation for subsequent financial public relations efforts; 

  

	 	(b)	Assist in making new introductions of the Company to the financial community; 

  

	 	(c)	With the cooperation and support of the Company and its management and directors, maintain an awareness during the term of this Agreement of the Company’s plans,
strategy and personnel, as they may evolve during such period, and consult and assist the Company in communicating appropriate information regarding such plans, strategy and personnel to the financial community; 

  

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	 	(d)	Advise, assist and consult the Company with respect to its (i) relations with stockholders, (ii) relations with brokers, dealers, analysts and other
investment professionals, and (iii) financial public relations generally; 

  

	 	(e)	Perform the functions generally assigned to shareholder relations and public relations departments in major corporations, including responding to telephone and written
inquiries (which may be referred to Redwood by the Company); if requested, assist in the preparation of press releases for the Company with the Company’s involvement and approval of all Company press releases, reports and other communications
with or to shareholders, the investment community and the general public; consulting with respect to the timing, form, distribution and other matters related to such releases, reports and communications; and, at the Company’s request and
subject to the Company’s securing its own rights to the use of its names, marks, and logos, consulting with respect to corporate symbols, logos, names, assist in the presentation of such symbols, logos and names, and other matters relating to
corporate image; 

  

	 	(f)	Under the Company’s direction and approval, disseminate information regarding the Company to shareholders, brokers, dealers, other investment community
professionals and the general investing public; 

  

	 	(g)	Under the Company’s direction and approval conduct meetings, in person or by telephone, with brokers, dealers, analysts and other investment professionals to
communicate with them regarding the Company’s plans, goals and activities, and assist the Company in preparing for press conferences and other forums involving the media, investment professionals and the general investment public;

  

	 	(h)	At the Company’s request, and under the Company’s direction and approval, review business plans, strategies, mission statements budgets, proposed transactions
and other plans for the purpose of advising the Company of the public relations implications thereof; and, 

  

	 	(i)	Otherwise perform as the Company’s advisor and consultant for public relations and relations with financial professionals. 

 3. Duties of Company. The Parties hereto recognize that the success of Redwood’s services to be provided pursuant to this Agreement rely heavily
on cooperation and communication between Redwood and the Company. In this regard, the Company and Redwood agree that the Company will use its best efforts in cooperating and communicating with Redwood, and in so doing, agrees to perform all of the
acts set out in Exhibit A hereto, attached to this Agreement and incorporated herein by reference as though fully set out. The Parties further acknowledge that all of the items listed in Exhibit A are material to the ability of Redwood to perform
its obligations hereunder, and that the Company’s failure to use its best efforts to satisfy the requirements of Exhibit A would materially hinder Redwood’s performance herein. The above notwithstanding, the Company agrees and understands
that the status of the Company’s Intellectual Property rights and defenses constitutes an important part of Redwood’s understanding of and ability to perform its duties pursuant to this Agreement. 
  

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 4. Allocation of Time and Energies. Redwood hereby promises to perform and discharge faithfully the
targeted responsibilities which may be assigned to Redwood from time to time by the officers and duly authorized representatives of the Company in connection with the conduct of its financial and public relations and communications activities, so
long as such activities are in compliance with applicable securities laws and regulations. Redwood and staff shall diligently and thoroughly provide the advisory and consulting services required hereunder. Although no specific hours-per-day
requirement is required of Redwood pursuant to this Agreement; Redwood and the Company agree that Redwood will perform the duties set forth herein above in a diligent and professional manner. The parties acknowledge and agree that a
disproportionately large amount of the effort to be expended and the costs to be incurred by Redwood are expected to occur within or shortly after the first two months of the effectiveness of this Agreement. In addition to and notwithstanding the
above, the Company represents and warrants that it is, as of the date of this Agreement, fully compliant with the reporting requirements of the United States Securities and Exchange Commission (“SEC”). The Company represents and warrants
that it will continue to maintain compliance with applicable SEC rules and regulations governing the filings required by public corporations. In the event that the Company is either not fully compliant as of the effective date of this Agreement, or
at any time during the term of this Agreement, then the Company and Redwood shall agree on a schedule for achieving such compliance. In the event that the parties cannot agree on such a schedule, then the dispute resolution provisions of Articles 15
and 17 herein may be invoked by either party. 
 5. Remuneration. As full and complete compensation for services described in this
Agreement, the Company shall compensate RC by issuing Company common stock as follows: 
 5.1 For undertaking this engagement and
for other good and valuable consideration, the Company agrees to issue to Consultant an initial payment of eight hundred fifteen thousand (815,000) restricted shares of the Company’s Common Stock (“Common Stock” or
“compensation shares”) to be delivered to Consultant within ten (10) business days of the signing of this Agreement. This initial payment shall be issued to the Consultant immediately following execution of this Agreement and shall,
when issued and delivered to Consultant, be fully paid and non-assessable. The Company understands and agrees that Consultant has foregone significant opportunities to accept this engagement and that the Company derives substantial benefit from the
execution of this Agreement and the ability to announce its relationship with Consultant. The 815,000 restricted shares of Common Stock issued as an initial payment, therefore, constitute payment for Consultant’s agreement to consult to the
Company and are a nonrefundable, non-apportionable, and non-ratable retainer; such shares of common stock are not a prepayment for future services. If the Company decides to terminate this Agreement prior to January 12, 2011 for any reason
whatsoever, it is agreed and understood that Consultant will not be requested or demanded by the Company to return any of the shares of Common Stock paid to it as the initial payment hereunder. Further, if and in the event the Company is acquired in
whole or in part, during the term of this agreement, it is agreed and understood Consultant will not be requested or demanded by the Company to return any of the 815,000 restricted shares of Common Stock paid to it hereunder. It is further agreed
that if at any time during the term of this agreement, the Company or substantially all of the Company’s assets are merged with or acquired by another entity, or some other change occurs in the legal entity that constitutes the Company, the
Consultant shall retain and will not be requested by the Company to return any of the shares. 
  

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 5.2 The compensation shares issued pursuant to this agreement shall be issued in the name of
Redwood Consultants, LLC, Tax ID # 68-047-3637 or its designees to be provided under separate cover email. 
 5.3 With each
transfer of shares of Common Stock to be issued pursuant to this Agreement (collectively, the “Shares”); Company shall cause to be issued a certificate representing the Common Stock and, if required by applicable law, a written opinion of
counsel for the Company stating that said shares are validly issued, fully paid and non-assessable and that the issuance and eventual transfer of them to Redwood has been duly authorized by the Company. Company warrants that all Shares and share
equivalents issued to Redwood pursuant to this Agreement shall have been validly issued, fully paid and non-assessable and that the issuance and any transfer of them to Redwood shall have been duly authorized by the Company’s board of
directors. 
 5.4 Redwood acknowledges that the eight hundred fifteen thousand (815,000) Rule 144 restricted shares of
Common Stock to be issued pursuant to this Agreement (collectively, the “144 Securities”) have not been registered under the Securities Act of 1933, and accordingly are “restricted securities” within the meaning of Rule 144 of
the Act. As such, the 144 Securities may not be resold or transferred unless the Company has received an opinion of counsel reasonably satisfactory to the Company that such resale or transfer is exempt from the registration requirements of that Act.
The Company agrees to take any and all action(s) necessary to clear the subject securities of restriction upon presentation of any Rule 144(d) application by Redwood or its broker, including, but not limited to: (1) Authorizing the
Company’s transfer agent to remove the restrictive legend on the subject securities; (2) Expediting either the acquisition of a legal opinion from Company’s counsel authorizing the removal of the restrictive legend, or accepting a
third party legal opinion acknowledging same; and (3) Cooperating and communicating with Redwood and its broker in order to use Company’s best efforts to clear the subject securities of restriction as soon as possible after presentation of
a Rule 144(d) application by Redwood (or its broker) to either the Company and/or the Company’s transfer agent. Further, the Company agrees to not unreasonably withhold or delay approval of any application filed by Redwood under Rule 144(d) of
the Act to clear the subject securities of restriction. 
  

	 	(a)	Redwood and the Company acknowledge and agree that Redwood will suffer irreparable harm and anticipated and actual damages in the event that the Company unreasonably
withholds or delays any Rule 144(d) application by Redwood to either the Company or the Company’s transfer agent. The Company agrees that money damages could not compensate Redwood for its irreparable harm. 

  

	 	(b)	 Redwood and the Company therefore agree that the Company shall have a period of five (5) business days from the date Redwood’s Rule 144(d)
application is tendered to either the Company or its transfer agent by either Redwood and/or its broker, to take any and all necessary action to clear the subject securities of restriction, consistent the covenants in Section 5.4 above. The
Company and Redwood agree that this five (5) day

  

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period is reasonable and consistent with industry standards concerning the handling and processing of restricted securities under Rule 144 by publicly traded companies. The Company also
acknowledges that Redwood’s ability to clear the subject securities of restriction, by virtue of the Company’s best efforts, cooperation, covenants and representations in this regard is a material part of this Agreement and is a reasonable
and material expectation of Redwood in entering into this Agreement. Should events occur that require further expense of time beyond this five (5) day time period, the Company and Redwood shall reasonably agree in a writing signed by each to an
extension for a specific amount of time. In no event shall an extension be agreed to unless the Company comports with its “best efforts” obligations, as set out above, and communicates with Redwood bona fide and reasonable attempts at
meeting Company’s obligations to clear the subject restricted securities, as described herein. Any written extension herein may be executed in counterparts by the principals of the Company and Redwood, and facsimile signatures may be tendered
in lieu of originals. It is agreed that the separate signature of each principal on any agreement to extend time shall be deemed a complete original. 

  

	 	(c)	Should the Company fail to successfully take any and all actions necessary to clear the subject securities of restriction within the five (5) day time period after
Redwood or its broker’s presentation of a Rule 144(d) application, or seek to extend time as provided for above in sub-section (b), and in light of the irreparable harm that Redwood will suffer in the event of any intentional and/or
unintentional delay in Redwood’s Rule 144(d) application, Company herein irrevocably consents and agrees that Redwood shall be entitled to injunctive relief in order to immediately enforce Redwood’s right to removal of the restrictive
legend on the Company’s securities. Company further agrees that Redwood shall be entitled to immediately seek the injunctive relief contemplated and described herein in the Superior Court of California, Marin County. Both the Company and
Redwood agreed that Redwood’s access to injunctive relief; and the Company’s consent to Redwood’s ability to obtain such injunctive relief shall not otherwise amend, supersede or modify the parties’ agreement to submit any other
disputes to mediation and arbitration as provided herein. 

 5.5 In connection with the acquisition of Securities
hereunder, Redwood represents and warrants to the Company, to the best of its/his knowledge, as follows: 
  

	 	(a)	Redwood acknowledges that Redwood has been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of
the Company concerning an investment in the Securities, and any additional information which Redwood has requested. 

  

	 	(b)	 Redwood’s investment in restricted securities is reasonable in relation to Redwood’s net worth, which is in excess of ten (10) times
Redwood’s cost basis in the Shares. Redwood has had experience in investments in restricted and publicly traded securities, and Redwood has had experience in investments in speculative securities and other investments which involve the risk of
loss of investment. Redwood

  

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acknowledges that an investment in the Securities is speculative and involves the risk of loss. Redwood has the requisite knowledge to assess the relative merits and risks of this investment
without the necessity of relying upon other advisors, and Redwood can afford the risk of loss of his entire investment in the Securities. Redwood is (i) an accredited investor, as that term is defined in Regulation D promulgated under the
Securities Act of 1933, and (ii) a purchaser described in Section 25102 (f) (2) of the California Corporate Securities Law of 1968, as amended. 

  

	 	(c)	Redwood is acquiring the Securities for Redwood’s own account for long-term investment and not with a view toward resale or distribution thereof except in
accordance with applicable securities laws. 

 5.6 Additionally, for a period of two years after the effective
date hereof, should the Company make any public offering of its securities pursuant to an effective registration statement under the Securities Acts of 1933 or 1934, as amended, Redwood shall be entitled, and the Company agrees, to include in such
registration, pari passu with the Piggyback Registration Rights” available to founding management; any or all of the common stock or common stock equivalents issued to Redwood by the Company as consideration hereunder [commonly referred
to as “Piggyback Registration Rights”]. Such piggyback registration rights include, at Redwood’s option, registration on Form S-1. 
 5.7 In addition to the above, in the event that the Company requests that Redwood introduce Company to an investment banker or other person or entity that is lawfully engaged in the business of assisting
public and private companies with raising debt and/or equity capital (a “financing”); Redwood agrees to use its best efforts to make such introductions. Both the Company and Redwood agree that any and all transactions and discussions and
negotiations relating thereto will be the exclusive and sole responsibility of Company. Company and Redwood agree that Redwood has informed Company that Redwood is not a FINRA member firm. In the event that Company obtains debt or equity
financing as a result of Redwood’s introduction, Company agrees to pay Redwood a Finder’s Fee equal to three percent (3%) of the total amount raised on behalf of the company. This Finder’s Fee shall be payable in cash, directly
to Redwood, by the financing source at the time of the Closing on the financing. 
 6. Non-Assignability of Services. Redwood’s
services under this contract are offered to Company only and may not be assigned by Company to any entity with which Company merges or which acquires the Company or substantially all of its assets. In the event of such merger or acquisition, all
compensation to Redwood herein under the schedules set forth herein shall remain non cancellable and due and payable, and any compensation received by Redwood may be retained in the entirety by Redwood, all without any reduction or pro-rating and
shall be considered and remain fully paid and non-assessable. Notwithstanding the non-Assignability of Redwood’s services, Company shall assure that in the event of any merger, acquisition, or similar change of form of entity, that its
successor entity shall agree to complete all obligations to Redwood, including the provision and transfer of all compensation herein, and the preservation of the value thereof consistent with the rights granted to Redwood by the Company herein, and
to Shareholders. 
  

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 7. Expenses. Redwood agrees to pay for all its expenses (phone, mailing, labor, etc.), other than
extraordinary items (travel required by/or specifically requested by the Company, luncheons or dinners to large groups of investment professionals, mass faxing to a sizable percentage of the Company’s constituents, investor conference calls,
print advertisements in publications, etc.) approved by the Company prior to its incurring an obligation for reimbursement. 
 8.
Indemnification. The Company warrants and represents that all oral communications, written documents or materials furnished to Redwood by the Company with respect to financial affairs, operations, profitability and strategic planning of the
Company are accurate and Redwood may rely upon the accuracy thereof without independent investigation. The Company will protect, indemnify and hold harmless Redwood against any claims or litigation including any damages, liability, cost and
reasonable attorney’s fees as incurred with respect thereto resulting from Redwood’s performance of its obligations under this Agreement, communication or dissemination of any said information, documents or materials excluding any such
claims or litigation resulting from Redwood’s communication or dissemination of information not provided or authorized by the Company. 
 9. Representations and Warranties. The Company represents and warrants that any information furnished to Redwood will contain no untrue statement of any material fact nor omit any material facts, which would make the information
misleading. The Company represents and warrants that it will adhere to any and all local, state and federal laws, rules and regulations governing the Company’s businesses and any and all actions and activities involving the
Company, its shareholders and the investment community. The Company further warrants that if the circumstances relating to information or documents furnished to Redwood change at any time, the Company will inform Redwood promptly of the changes and
immediately deliver to Redwood documents or information necessary to ensure the continued accuracy and completeness of all information and documents. Redwood represents to the Company that it will not, to the best of Redwood’s knowledge and
belief, make any untrue statement of material fact. Redwood further represents and warrants to the Company that, to the best of Redwood’s knowledge and belief, all actions taken by it, on behalf of the Company, in connection with its’
advisory services will be conducted in compliance with all applicable state and federal laws. Further, Redwood shall comply with any procedures that might be reasonably imposed by the Company or its legal counsel to ensure compliance with such laws.
Both the Company and Redwood agree and acknowledge that they and their employees, advisors and consultants and therefore the parties’ duties and obligations under this Agreement will be performed and governed by applicable state and federal
law, including without limitation the federal securities laws. All parties expressly understand, agree and acknowledge that Redwood’s performance of its duties hereunder cannot and therefore will in no way be measured by the price of the
Company’s common stock, nor the trading volume of the Company’s common stock. It is also understood that the Company is entering into this Agreement with Redwood Consultants, LLC (“RC”), a California Limited Liability Company and
not any individual member of RC, and, as such, Redwood will not be deemed to have breached this Agreement if any member, officer or director of RC leaves the firm or dies or becomes physically unable to perform any meaningful activities during the
term of the Agreement, provided the Redwood otherwise performs its obligations under this Agreement. Redwood represents that it is not required to maintain any licenses and registrations under federal or any state regulations necessary to perform
the services set forth herein. Redwood acknowledges that, to the best of its knowledge, the performance of the

  

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services set forth under this Agreement will not violate any rule or provision of any regulatory agency having jurisdiction over Redwood. Redwood acknowledges that, to the best of its knowledge,
Redwood and its officers and directors are not the subject of any investigation, claim, decree or judgment involving any violation of the SEC or securities laws. Redwood further acknowledges that it is not a securities Broker Dealer or a registered
investment advisor. Company acknowledges that, to the best of its knowledge, that it has not violated any rule or provision of any regulatory agency having jurisdiction over the Company. Company acknowledges that, to the best of its knowledge,
Company is not the subject of any investigation, claim, decree or judgment involving any violation of the SEC or securities laws. 
 10.
Legal Representation. The Company acknowledges that it has been represented by independent legal counsel in the preparation of this Agreement. Redwood represents that it has consulted with independent legal counsel and/or tax, financial and
business advisors, to the extent the Redwood deemed necessary. 
 11. Status as Independent Contractor. Redwood’s engagement
pursuant to this Agreement shall be as independent contractor, and not as an employee, officer or other agent of the Company. Neither party to this Agreement shall represent or hold itself out to be the employer or employee of the other. Redwood
further acknowledges the consideration provided hereinabove is a gross amount of consideration and that the Company will not withhold from such consideration any amounts as to income taxes, social security payments or any other payroll taxes. All
such income taxes and other such payment shall be made or provided for by Redwood and the Company shall have no responsibility or duties regarding such matters. Neither the Company nor the Redwood possesses the authority to bind each other in any
agreements without the express written consent of the entity to be bound. 
 12. Attorney’s Fee. If any legal action or any
arbitration or other proceeding is brought for the enforcement or interpretation of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with or related to this Agreement, the successful or prevailing
party shall be entitled to recover reasonable attorneys’ fees and other costs in connection with that action or proceeding, in addition to any other relief to which it or they may be entitled. 
 13. Waiver. The waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a
waiver of any subsequent breach by such other party. 
 14. Notices. All notices, requests, and other communications hereunder shall be
deemed to be duly given if sent by U.S. mail, postage prepaid, addressed to the other party at the address as set forth herein below: 
 To
the Company: 
 Ampio Pharmaceuticals, Inc. 
 8400 East Crescent Parkway Suite 600 
 Greenwood Village, CO 80111 
 Attn: 
 Don Wingerter, CEO 
  

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 To Redwood: 
 Redwood Consultants, LLC 
 250 Bel Marin Keys Blvd., Bldg. A-1 
 Novato, CA 94949 
 Attn: 
 Jens Dalsgaard, Managing Director 
 It is understood that either party may change the address to which notices for it shall be addressed by providing notice of such change to the other party in the manner set forth in this paragraph. 
 15. Term and Termination of Agreement. 
  

	 	a.	This Agreement shall remain in full force and effect for a term of twelve (12) months. During the terms of this Agreement the indemnity provisions set forth
paragraph in 14 shall survive any termination of this Agreement. 

  

	 	b.	 After the original term of this agreement is expired, this agreement may be extended upon either party giving the other party 30 days written notice,
which written notice shall be sent by certified mail return receipt. Extension of the agreement shall be effective on the 30th day after said written notice has been mailed or delivered, whichever is earlier. 

  

	 	c.	Notwithstanding anything to the contrary, if either party materially breaches this agreement, the non-breaching party may, at his or its election, immediately terminate
the agreement thereby relieving the non-breaching party of any obligation there under. Alternatively, the non-breaching party may proceed with performance without waiving any rights under the agreement. A material breach will mean and refer to a
party’s failure to comply with any covenants or obligation specified in this agreement. 

  

	 	d.	In the event of a dispute arising between parties the dispute shall be submitted to mediation before the Judicial Arbitration and Mediation Services (“JAMS”)
in San Francisco, California. The parties shall bear the costs of mediation equally. In the event that either party refuses to participate in mediation said party shall be prohibited from recovering attorney fees notwithstanding anything to the
contrary in this agreement. 

  

	 	e.	If mediation should fail to resolve the dispute between the parties, the matter shall be submitted to JAMS for binding arbitration. Discovery rights shall be preserved
in said arbitration with regard to depositions and demands for production of documents as if the dispute were pending in San Francisco County Superior Court. Otherwise, discovery shall be prohibited. The costs of arbitration shall be equally shared
by the parties until the dispute is either settled or adjudicated, at which time the arbitration may award said fees and costs to the prevailing party. 

  

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 16. Choice of Law, Jurisdiction and Venue. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the State of California. The parties agree that California will be the venue of any dispute and will have jurisdiction over all parties. 
 17. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or pertaining to any and all prior or subsequent agreements between or amongst the parties; or the alleged
breach thereof, or relating to Redwood’s activities or remuneration under this Agreement, shall be settled by binding arbitration in California, in accordance with the applicable rules of the JAMS, and judgment on the award rendered by the
arbitrator(s) shall be binding on the parties and may be entered in any court having jurisdiction as provided by Paragraph 14 herein. The provisions of Title 9 of Part 3 of the California Code of Civil Procedure, including section 1283.05, and
successor statutes, permitting expanded discovery proceedings shall be applicable to all disputes that are arbitrated under this paragraph. 
 18. Complete Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof. This Agreement and its terms may not be changed orally but only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification, extension or discharge is sought. 
 This ten (10) page agreement has been
duly signed by the Parties hereto: 
 AGREED TO: 
  

											
	“Company”	 		 	Ampio Pharmaceuticals, Inc.
						
	Date:	 	  
	 		 	By:	 	 /s/ Don Wingerter
	 	
		 		 		 		 	Don Wingerter, CEO	 	
				
	“Redwood”	 		 	REDWOOD CONSULTANTS, LLC	 	
						
	Date:	 	  
	 		 	By:	 	 /s/ Jens Dalsgaard
	 	
		 		 		 		 	Jens Dalsgaard, Managing Direct	 	

  

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 EXHIBIT A 
 Redwood Consultants, LLC is committed to ensuring 
 That our clients get the most out of their relationship with us. 
 We ask that you keep our partnership
strong by 
 Making the following commitments: 
  

	1.	Update your current company website. If you don’t have one, you should immediately commission and construct one using an experienced designer. Redwood can
provide contacts for web designers if needed. The website must be able to capture investor information that will be automatically forwarded to InvestorInfo@RedwoodConsultants.com so that we can promptly send the full investor package, or make
contact via fax or telephone call. 

  

	2.	As requested by Redwood, be prepared to ensure that the Company’s website is up-to-date; including posting timely (which may include the making of weekly updates)
website updates. 

  

	3.	Place our contact information in the Investor section of your website and at the bottom of press releases: 

 For further information please contact: 
 Redwood Consultants, LLC 
 415-884-0348 
  

	4.	Prepare a comprehensive PowerPoint presentation for Redwood to use to introduce your company to potential investors and brokers. 

  

	5.	Provide Redwood with all current and future business plans; provided, however, that Redwood is not requesting, and should not be sent, any materials, business plans,
forecasts or similar materials that are materials, at the time that these materials are sent to Redwood, not in the public domain. 

  

	6.	Send Redwood a CD or email of high-quality digital files of the company logo, product pictures, videos and graphics for the investor packages our Operations team will
create. 

  

	7.	Produce a two-page fact sheet for Redwood to use. The Operations department will email an example fact sheet that can be used as a template for creating your own.

  

	8.	Provide Redwood with the names and stock symbols of all competitors and comparable companies in the sector. 

  

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	9.	Subscribe to weekly DTC sheets. Please forward the DTC password to the Redwood Operations department at Admin@RedwoodConsultants.com so that we can
monitor our shareholder base. 

  

	10.	E-mail Redwood an in-depth matrix of expected company milestones that will be the subjects of press releases used to create market awareness. The goal is to have
consistent and regular news flow. When news is issued to the business press, Team2@RedwoodConsultants.com should be copied so we can prepare national distribution to our contacts. 

  

	11.	Verify and Update your company profile and stock information on the various finance websites. The Redwood Operations department will email you a list of finance
websites and their contact information. 

  

	12.	Provide Redwood with the names of key contacts of company management, their email addresses, and direct office and cell phone numbers. 

  

					
	Angela Williams	  	Chief Operations Officer	  	AWilliams@RedwoodConsultants.com
			
	Amanda Schmieder	  	Senior Vice President of Operations	  	ASchmieder@RedwoodConsultants.com
			
	Matthew Murawski	  	Vice President of Business Development	  	MMurawski@RedwoodConsultants.com
			
	William Jeffrey Gilliam	  	Senior Advisor	  	Wj_gilliam@msn.com
			
	Richard Pisano	  	Vice President	  	RPisano@RedwoodConsultants.com
			
	Jens Dalsgaard	  	Managing Director	  	JDalsgaard@RedwoodConsultants.com

  

	13.	Each Quarter, provide Redwood with the NOBO shareholder list from the transfer agent. 

  

	14.	Announce and participate in quarterly conference calls with the investing public. Redwood will host, organize and handle all logistics, including writing the press
release, announcing the calls, and creating a digital archive with toll-free phone numbers for access and a verbal transcript to be stored and accessible for 30 days to comply with SEC Rule FD. 

  

	15.	Provide Redwood with the names and phone numbers of any financial experts, market makers, investment bankers, previous PIPE investors, stockbrokers, significant
shareholders, etc., known to your company (i.e., your Rolodex of Wall Street contacts), so we can send them an IR package and fax news to them regularly. 

  

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	16.	Provide Redwood with the names and phone numbers of personal stockbrokers and financial contacts for inclusion in our database. Brokerage contacts can be provided for
management to deposit their restricted rule 144 shares. This creates goodwill with supporters of the deal. 

  

	17.	E-mail corporate updates at least once a week, preferably on Sunday or Monday prior to market open, to the senior Redwood team:
Team2@RedwoodConsultants.com. We truly are a team, so please copy everyone on company e-mails. 

  

	18.	Meet regularly with the entire Redwood team. Redwood will commit to visiting your office, and your senior management will commit to visiting Redwood’s San
Francisco Bay area office for quarterly meetings so that everyone involved can fully understand your business, market, news, strategy, challenges, etc. This ensures that we can continually position, plan and refine the appropriate message for Wall
Street.

  

	19.	Be available to regularly answer calls from top mutual fund managers, stockbrokers and significant shareholders, and to inform Redwood about those discussions so we are
all on the same page with communication. 

  

	20.	Inform Redwood of your senior management’s major travel plans. They must be willing to meet with top fund managers, stockbrokers and significant shareholders
during their travels. 

  

	21.	Provide the past 6 months and future 12 months of company revenue, expense, earnings forecasts/expectations and financing needs, broken down by quarter. Disclose
structures and the likelihood of achieving such funding to Redwood and the investment community in timely fashion in order to avoid and/or ameliorate any potential liquidity issues, shortfalls or similar issues of concern to the investing public. As
in item 5 above, this information request should not be read to include and/or solicit any information of any kind that is not in the public domain. 

  

	22.	Provide Redwood with a matrix of all 144 restricted shares issued in the past 12 months, with dates issued, so we can better manage those surprises. Please also provide
the contact information for your legal counsel. 

  

	23.	Appoint a media relations firm to communicate with the financial community, if you don’t handle media relations internally. We should expect to receive significant
media attention. 

  

	24.	Unless other arrangements reasonably agreeable to Redwood are made, be willing to issue restricted Rule 144 stock for a new research report in the first 60 days of the
campaign. Redwood can discuss with you the quality firms that accept 144 stock and provide their names upon request. 

  

	25.	If not a fully reporting company, write an annual shareholder letter that will be released to the wire services for public information. 

  

 13Vitamin Shoppe 2010 Employee Stock Purchase Plan

 Exhibit 10.16 
 VITAMIN SHOPPE 2010 
 EMPLOYEE STOCK PURCHASE PLAN

 Table of Contents 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	Purpose	  	1
			
	 2.
	  	Definitions	  	1
			
	 3.
	  	Eligibility	  	3
			
	 4.
	  	Exercise Periods	  	3
		  	(a)	  	In General	  	3
		  	(b)	  	Changes by Committee	  	3
			
	 5.
	  	Participation	  	3
			
	 6.
	  	Plan Contributions	  	3
		  	(a)	  	Contribution by Payroll Deduction	  	3
		  	(b)	  	Payroll Deduction Election on Enrollment Agreement	  	3
		  	(c)	  	Commencement of Payroll Deductions	  	3
		  	(d)	  	Automatic Continuation of Payroll Deductions	  	4
		  	(e)	  	Change of Payroll Deduction Election	  	4
		  	(f)	  	Automatic Changes in Payroll Deduction	  	4
			
	 7.
	  	Grant of Option	  	4
		  	(a)	  	Shares of Common Stock Subject to Option	  	4
		  	(b)	  	Exercise Price	  	5
		  	(c)	  	Fair Market Value	  	5
		  	(d)	  	Limitation on Option that may be Granted	  	5
		  	(e)	  	No Rights as Shareholder	  	5
			
	 8.
	  	Exercise of Options	  	6
		  	(a)	  	Automatic Exercise	  	6
		  	(b)	  	Carryover of Excess Contributions	  	6
			
	 9.
	  	Issuance of Shares	  	6
		  	(a)	  	Delivery of Shares	  	6
		  	(b)	  	Registration of Shares	  	6
		  	(c)	  	Compliance with Applicable Laws	  	6
		  	(d)	  	Withholding	  	6
			
	 10.
	  	Participant Accounts	  	7
		  	(a)	  	Bookkeeping Accounts Maintained	  	7
		  	(b)	  	Participant Account Statements	  	7
		  	(c)	  	Withdrawal of Account Balance Following Exercise Date	  	7
			
	 11.
	  	Designation of Beneficiary	  	7
		  	(a)	  	Designation	  	7

  

 i 

							
		  	(b)	  	Change of Designation	  	7
			
	 12.
	  	Transferability	  	8
			
	 13.
	  	Withdrawal; Termination of Employment	  	8
		  	(a)	  	Withdrawal	  	8
		  	(b)	  	Effect of Withdrawal on Subsequent Participation	  	8
		  	(c)	  	Termination of Employment	  	8
			
	 14.
	  	Common Stock Available under the Plan	  	9
		  	(a)	  	Number of Shares	  	9
		  	(b)	  	Adjustments Upon Changes in Capitalization; Corporate Transactions	  	9
			
	 15.
	  	Administration	  	10
		  	(a)	  	Committee	  	10
		  	(b)	  	Requirements of Exchange Act	  	10
			
	 16.
	  	Amendment, Suspension, and Termination of the Plan	  	10
		  	(a)	  	Amendment of the Plan	  	10
		  	(b)	  	Suspension of the Plan	  	10
		  	(c)	  	Termination of the Plan	  	11
			
	 17.
	  	Notices	  	11
			
	 18.
	  	Expenses of the Plan	  	11
			
	 19.
	  	No Employment Rights	  	11
			
	 20.
	  	Applicable Law	  	11
			
	 21.
	  	Additional Restrictions of Rule 16b-3	  	11
			
	 22.
	  	Effective Date	  	12

  

 ii 

 VITAMIN SHOPPE  
 EMPLOYEE STOCK PURCHASE PLAN 
 1.
Purpose. The purpose of the Plan is to provide incentive for present and future employees of the Company and any Designated Subsidiary to acquire a proprietary interest (or increase an existing proprietary interest) in the Company through the
purchase of Common Stock. It is the Company’s intention that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. Accordingly, the provisions of the Plan shall be administered, interpreted and
construed in a manner consistent with the requirements of that section of the Code. 
 2. Definitions. 
 (a) “Applicable Percentage” means the percentage specified in Section 7(b), subject to adjustment by the Committee as
provided in Section 7(b). 
 (b) “Board” means the Board of Directors of the Company. 
 (c) “Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. 
 (d) “Committee” means the committee appointed by the Board to administer the Plan as described in Section 15 of the Plan or,
if no such Committee is appointed, the Board. 
 (e) “Common Stock” means the Company’s common stock, par value
$0.01 per share, after giving effect to the Company’s common stock split in connection with the Company’s planned Initial Public Offering (the “Common Stock Split”). All Common Stock share numbers set forth in this Plan refer to
numbers of shares of Common Stock after giving effect to the Common Stock Split. 
 (f) “Company” means Vitamin
Shoppe, Inc., a Delaware corporation. 
 (g) “Compensation” means, with respect to each Participant for each pay
period, the full base salary and overtime paid to such Participant by the Company or a Designated Subsidiary. Except as otherwise determined by the Committee, “Compensation” does not include: (i) bonuses or commissions, (ii) any
amounts contributed by the Company or a Designated Subsidiary to any pension plan, (iii) any automobile or relocation allowances (or reimbursement for any such expenses), (iv) any amounts paid as a starting bonus or finder’s fee,
(v) any amounts realized from the exercise of any stock options or incentive awards, (vi) any amounts paid by the Company or a Designated Subsidiary for other fringe benefits, such as health and welfare, hospitalization and group life
insurance benefits, or perquisites, or paid in lieu of such benefits, or (vii) other similar forms of extraordinary compensation. 
 (h) “Continuous Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed
to in writing by the Company or the Designated Subsidiary that employs the Employee, provided that such leave is for a period of not more than 90 days or reemployment upon the expiration of such leave is guaranteed by contract or statute.

 (i) “Designated Subsidiaries” means the Subsidiaries that have been designated by
the Board from time to time in its sole discretion as eligible to participate in the Plan. 
 (j) “Employee” means any
person, including an Officer, whose customary employment is with the Company or one of its Designated Subsidiaries. 
 (k)
“Entry Date” means the first Trading Day of each Exercise Period. 
 (l) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
 (m) “Exercise Date” means the last Trading Day of each Exercise Period.

 (n) “Exercise Period” means, subject to adjustment as provided in Section 4(b), the approximately three
(3) calendar month period beginning on the first Trading Day on or after the first day of each calendar quarter and ending the last Trading Day on or before the last day of that same calendar quarter of such year, or beginning on the first
Trading Day on or after the respective: April 1; July 1; October 1; and January 1; and ending the last Trading Day on or before the respective June 30; September 30; December 31; and
March 31 of each calendar quarter of such year. 
 (o) “Exercise Price” means the price per share of Common Stock
offered in a given Exercise Period determined as provided in Section 7(b). 
 (p) “Fair Market Value” means, with
respect to a share of Common Stock, the Fair Market Value as determined under Section 7(c). 
 (q) “Officer”
means a person who is an officer of the Company within the meaning of Section 16 under the Exchange Act and the rules and regulations promulgated thereunder. 
 (r) “Participant” means an Employee who has elected to participate in the Plan by filing an enrollment agreement with the Company as provided in Section 5 hereof. 
 (s) “Plan” means the Vitamin Shoppe 2010 Employee Stock Purchase Plan, as in effect from time to time. 
 (t) “Plan Contributions” means, with respect to each Participant, the lump sum cash transfers, if any, made by the Participant to
the Plan pursuant to Section 6(a) hereof, plus the after-tax payroll deductions, if any, withheld from the Compensation of the Participant and contributed to the Plan for the Participant as provided in Section 6 hereof, and any other
amounts contributed to the Plan for the Participant in accordance with the terms of the Plan. 
 (u) “Subsidiary”
means any corporation, domestic or foreign, of which the Company owns, directly or indirectly, 50% or more of the total combined voting power of all classes of stock, and that otherwise qualifies as a “subsidiary corporation” within the
meaning of Section 424(f) of the Code. 
  

 2 

 (v) “Trading Day” means a day on which the New York Stock Exchange is open for
trading. 
 3. Eligibility. Any individual who has completed at least three (3) months of employment with the
Company or any Subsidiary and who is an Employee as of the Entry Date of a given Exercise Period shall be eligible to become a Participant as of the Entry Date of such Exercise Period. 
 4. Exercise Periods. 
 (a) In General. The Plan shall generally be implemented by a series of Exercise Periods, each of which last approximately three (3) months. 
 (b) Changes by Committee. The Committee shall have the power to make changes to the duration and/or the frequency of Exercise Periods
with respect to future offerings if such change is announced at least five (5) days prior to the scheduled beginning of the first Exercise Period to be affected. 
 5. Participation. Employees meeting the eligibility requirements of Section 3 hereof may elect to participate in the Plan commencing on any Entry Date by completing an enrollment agreement on
the form provided by the Company and filing the enrollment agreement with the Company on or prior to such Entry Date, unless a later time for filing the enrollment agreement is set by the Committee for all eligible Employees with respect to a given
offering. 
 6. Plan Contributions. 
 (a) Contribution by Payroll Deduction. Except as otherwise authorized by the Committee, all contributions to the Plan shall be made only by payroll deductions. The Committee may, but need not,
permit Participants to make after-tax contributions to the Plan at such times and subject to such terms and conditions as the Committee may in its discretion determine. All such additional contributions shall be made in a manner consistent with the
provisions of Section 423 of the Code or any successor thereto, and shall be treated in the same manner as payroll deductions contributed to the Plan as provided herein. 
 (b) Payroll Deduction Election on Enrollment Agreement. At the time a Participant files the enrollment agreement with respect to an
Exercise Period, the Participant may authorize payroll deductions to be made on each payroll date during the portion of the Exercise Period that he or she is a Participant in an amount not less than one half of one percent (0.5%) and not more than
ten percent (10%) of the Participant’s Compensation on each payroll date during the portion of the Exercise Period that he or she is a Participant. 
 (c) Commencement of Payroll Deductions. Except as otherwise determined by the Committee under rules applicable to all Participants, payroll deductions shall commence with the earliest
administratively practicable payroll period that begins on or after the Entry Date with respect to which the Participant files an enrollment agreement in accordance with Section 5. 
  

 3 

 (d) Automatic Continuation of Payroll Deductions. Unless a Participant elects
otherwise prior to the Exercise Date of an Exercise Period, including the Exercise Date prior to termination in the case of an Exercise Period terminated under Section 4(b) hereof, such Participant shall be deemed (i) to have elected to
participate in the immediately succeeding Exercise Period (and, for purposes of such Exercise Period the Participant’s “Entry Date” shall be deemed to be the first day of such Exercise Period) and (ii) to have authorized the same
payroll deduction for the immediately succeeding Exercise Period as was in effect for the Participant immediately prior to the commencement of the succeeding Exercise Period. 
 (e) Change of Payroll Deduction Election. A Participant may decrease or increase the rate or amount of his or her payroll deductions
during an Exercise Period (within the limitations of Section 6(b) above) by completing and filing with the Company a new enrollment agreement authorizing a change in the rate or amount of payroll deductions; provided, that a Participant may not
change the rate or amount of his or her payroll deductions more than once in any Exercise Period. Except as otherwise determined by the Committee under rules applicable to all Participants, the change in rate or amount shall be effective as of the
earliest administratively practicable payroll period that begins on or after the date the Committee receives the new enrollment agreement. Additionally, a Participant may discontinue his or her participation in the Plan as provided in
Section 13(a). 
 (f) Automatic Changes in Payroll Deduction. Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b) (8) of the Code, Section 7(d) hereof, or any other applicable law, a Participant’s payroll deductions for any calendar year may be decreased, including to 0%, at such time during such calendar year
that the aggregate of all payroll deductions accumulated during such calendar year are equal to the product of $25,000 multiplied by the Applicable Percentage for the calendar year. Payroll deductions shall recommence at the rate provided in the
Participant’s enrollment agreement at the beginning of the first Exercise Period beginning in the following calendar year, unless the Participant terminates participation as provided in Section 13(a). No Participant may be permitted to
purchase stock under all employee stock purchase plans of the Company and its subsidiaries at a rate that exceeds $25,000 in fair market value of the stock (determined at the time the option to purchase stock is granted) for each calendar year in
which any such option granted to the Participant is outstanding at any time. 
 (g) Leaves of Absence. During a leave of
absence meeting the requirements of Treasury Regulation Section 1.421-1(h) (2), a Participant may continue to participate in the Plan by making cash payments to the Company on each payday equal to the amount of the Participant’s payroll
deductions under the Plan for the payday immediately preceding the first day of such Participant’s leave of absence. 
 7.
Grant of Option. 
 (a) Shares of Common Stock Subject to Option. On a Participant’s Entry Date, subject to
the limitations set forth in Section 7(d) and this Section 7(a), the Participant shall be granted an option to purchase on the subsequent Exercise Date (at the Exercise Price determined as provided in Section 7(b) below) up to a
number of shares of Common Stock determined by dividing such Participant’s Plan Contributions accumulated prior to such Exercise

  

 4 

 
Date and retained in the Participant’s account as of such Exercise Date by the Exercise Price; provided that subject to the $25,000 limitation on purchases in any calendar year, the maximum
number of shares that a Participant may purchase during any Exercise Period shall be 5,000. 
 (b) Exercise Price. The
Exercise Price per share of Common Stock offered to each Participant in a given Exercise Period shall be the Applicable Percentage of the lesser of the Fair Market Value of a share of Common Stock on the Exercise Date or the Fair Market Value of a
share of Common Stock on the Entry Date, provided that in no event shall the Exercise Price be less than the price allowed pursuant to Code Section 423. The Applicable Percentage with respect to each Exercise Period shall be 85%, unless and
until such Applicable Percentage is increased by the Committee, in its sole discretion, provided that any such increase in the Applicable Percentage with respect to a given Exercise Period must be established not less than fifteen (15) days
prior to the Entry Date thereof. 
 (c) Fair Market Value. The Fair Market Value of the Common Stock is (a) while
the Common Stock is readily traded on an established national or regional securities exchange, the closing transaction price of such Common Stock as reported by the principal exchange on which such Common Stock is traded on the date as of which such
value is being determined or, if there were no reported transaction for such date, the opening transaction price as reported by exchange for the first trading date following the date by which such value is being determined on the next preceding date
for which a transaction was reported, (b) if the Common Stock is not readily traded on an established national or regional securities exchange, the average of the bid and ask prices for such Common Stock on the date as of which such value is
being determined, where quoted for such Common Stock, or (c) if Fair Market Value cannot be determined under clause (a) or clause (b) above, or if the Committee determines in its sole discretion that the Common Stock is too thinly
traded for Fair Market Value to be determined pursuant to clause (a) or clause (b), the value as determined by the Committee, in its sole discretion, on a good faith basis. 
 (d) Limitation on Option that may be Granted. Notwithstanding any provision of the Plan to the contrary, no Participant shall be
granted an option under the Plan (i) to the extent that if, immediately after the grant, such Employee (including any stock which is attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold
outstanding options to purchase stock possessing, in the aggregate, 5% or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary of the Company as computed under Section 423(b)(3) of the
Code and the Treasury Regulations thereunder, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans of the Company and its Subsidiaries intended to qualify under Section 423 of the Code
accrue at a rate which exceeds $25,000 of Fair Market Value of stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time, as determined in accordance with section 423(b)(8) of the
Code and the Treasury Regulations thereunder. 
 (e) No Rights as Shareholder. A Participant will have no interest or
voting right in shares covered by his option until such option has been exercised. 
  

 5 

 8. Exercise of Options. 
 (a) Automatic Exercise. A Participant’s option for the purchase of shares will be exercised automatically on each Exercise Date,
and the maximum number of full shares subject to the option shall be purchased for the Participant at the applicable Exercise Price with the accumulated Plan Contributions then credited to the Participant’s account under the Plan. During a
Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by the Participant. 
 (b) Excess Contributions. Any amount remaining to the credit of a Participant’s account after the purchase of shares by the Participant on an Exercise Date, which is insufficient to purchase a full share of Common Stock, shall
remain in the Participant’s account, and be carried over to the next Exercise Period, unless the Participant withdraws from participation in the Plan or elects to withdraw his or her account balance in accordance with Section 10(c).

 9. Issuance of Shares. 
 (a) Delivery of Shares. The Company will hold in book-entry the shares of Common Stock purchased by each Participant under the Plan. Upon receipt of written request from or on behalf of a
Participant, the Company shall, as promptly as practicable, arrange for the delivery to such Participant (or the Participant’s beneficiary), as appropriate, or to a custodial account for the benefit of such Participant (or the
Participant’s beneficiary) as appropriate, of a certificate representing the shares purchased under the Plan, and the Company shall assume, for tax purposes, such Participant’s disposition of the underlying shares (unless such Participant
clearly advises the Company otherwise in writing). In the event that a Participant provides a written statement of his intention not to sell or otherwise dispose of such shares as set forth in the foregoing sentence, such Participant shall be
required to report to the Company any subsequent disposition of such shares prior to the expiration of the holding periods specified by Section 422 (a) (1) of the Code. If and to the extent that such disposition imposes upon the
Company federal, state, local or other withholding tax requirements, or any such withholding is required to secure for the Company an otherwise available tax deduction, the Participant must remit to the Company an amount sufficient to satisfy those
requirements. 
 (b) Registration of Shares. Shares to be delivered to a Participant under the Plan will be registered in
the name of the Participant or in the name of the Participant and his or her spouse, as requested by the Participant. 
 (c)
Compliance with Applicable Laws. The Plan, the grant and exercise of options to purchase shares under the Plan, and the Company’s obligation to sell and deliver shares upon the exercise of options to purchase shares shall be subject to
compliance with all applicable federal, state and foreign laws, rules and regulations and the requirements of any stock exchange on which the shares may then be listed. 
 (d) Withholding. The Company may make such provisions as it deems appropriate for withholding by the Company pursuant to federal or state tax laws of such

  

 6 

 
amounts as the Company determines it is required to withhold in connection with the purchase or sale by a Participant of any Common Stock acquired pursuant to the Plan. The Company may require a
Participant to satisfy any relevant tax requirements before authorizing any issuance of Common Stock to such Participant. 
 10.
Participant Accounts. 
 (a) Bookkeeping Accounts Maintained. Individual bookkeeping accounts will be maintained
for each Participant in the Plan to account for the balance of his Plan Contributions, options issued, and shares purchased under the Plan. However, all Plan Contributions made for a Participant shall be deposited in the Company’s general
corporate accounts, and no interest shall accrue or be credited with respect to a Participant’s Plan Contributions. All Plan Contributions received or held by the Company may be used by the Company for any corporate purpose, and the Company
shall not be obligated to segregate or otherwise set apart such Plan Contributions from any other corporate funds. 
 (b)
Participant Account Statements. Statements of account will be given to Participants quarterly, which statements will set forth the amounts of payroll deductions, the per share purchase price and the number of shares purchased. 
 (c) Withdrawal of Account Balance Following Exercise Date. A Participant may elect at any time within the first thirty (30) days
following any Exercise Period, or at such other time as the Committee may from time to time prescribe, to receive in cash any amounts carried-over in accordance with Section 8(b). An election under this Section 10(c) shall not be treated
as a withdrawal from participation in the Plan under Section 13(a). 
 11. Designation of Beneficiary. 

(a) Designation. A Participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from
the Participant’s account under the Plan in the event of the Participant’s death subsequent to an Exercise Date on which the Participant’s option hereunder is exercised but prior to delivery to the Participant of such shares and cash.
In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of the Participant’s death prior to the exercise of the option. 
 (b) Change of Designation. A Participant’s beneficiary designation may be changed by the Participant at any time by written
notice. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  

 7 

 12. Transferability. Neither Plan Contributions credited to a Participant’s
account nor any rights to exercise any option or receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will or the laws of descent and distribution, or as provided in
Section 11). Any attempted assignment, transfer, pledge or other distribution shall be without effect, except that the Company may treat such act as an election to withdraw in accordance with Section 13(a). 
 13. Withdrawal; Termination of Employment. 
 (a) Withdrawal. A Participant may withdraw from the Plan at any time except that no Participant may withdraw during the last seven (7) days of an Exercise Period. A Participant who wishes to
withdraw from the Plan must deliver written notice to the Company at least seven (7) days prior to the Exercise Date. Payroll deductions, if any have been authorized, shall cease as soon as administratively practicable after receipt of the
Participant’s notice of withdrawal, and, subject to administrative practicability, no further purchases shall be made for the Participant’s account. All Plan Contributions credited to the Participant’s account, if any, and not yet
invested in Common Stock, will be paid to the Participant as soon as administratively practicable after receipt of the Participant’s notice of withdrawal. The Participant’s unexercised options to purchase shares pursuant to the Plan
automatically will be terminated. Payroll deductions will not resume on behalf of a Participant who has withdrawn from the Plan (a “Former Participant”) unless the Former Participant enrolls in a subsequent Exercise Period in accordance
with Section 5 and subject to the restriction provided in Section 13(b), below. 
 (b) Effect of Withdrawal on
Subsequent Participation. A Former Participant who has withdrawn from the Plan pursuant to this Section 13(b) shall not again be eligible to participate in the Plan prior to the beginning of the Exercise Period that commences at least 12
months from the date the Former Participant withdrew, and the Former Participant must submit a new enrollment agreement in order to again become a Participant as of that date. 
 (c) Disability Situations or Termination of Employment. Upon termination of a Participant’s Continuous Status as an Employee
prior to any Exercise Date for any reason, including death, the Plan Contributions credited to the Participant’s account and not yet invested in Common Stock will be returned to the Participant; in the case of death the Plan Contributions
credited to the Participant’s account will be returned without interest to the executor of such Participant’s will or the administrator of such Participant’s estate. If we do not receive such notice of the Participant’s death
prior to the Exercise Date, the Participant’s right to purchase shares under the Purchase Plan will be deemed to have been exercised on the Exercise Date. Any amount remaining to the credit of a Participant’s account after the purchase of
shares by the Participant on such Exercise Date which is insufficient to purchase a full share of Common Stock will be returned to Participant. In the case of disability, any Plan Contributions credited to the Participant’s account and not yet
invested in Common Stock will be used to acquire Common Stock on the Exercise Date following the Participant’s disability pursuant to Section 8. A Participant on disability may continue to participate in the Plan by making cash payments to
the Company on each payday equal to the amount of the Participant’s payroll deductions under the Plan for the payday immediately preceding the first day of such Participant’s disability. 
  

 8 

 14. Common Stock Available under the Plan; Approval by Stockholders. 
 (a) Number of Shares. Subject to adjustment as provided in Section 14(b) below, the maximum number of shares of the
Company’s Common Stock that shall be made available for sale under the Plan shall be 200,000 shares. Shares of Common Stock subject to the Plan may be newly issued shares or shares reacquired in private transactions or open market purchases. If
and to the extent that any right to purchase reserved shares shall not be exercised by any Participant for any reason or if such right to purchase shall terminate as provided herein, shares that have not been so purchased hereunder shall again
become available for the purpose of the Plan unless the Plan shall have been terminated, but all shares sold under the Plan, regardless of source, shall be counted against the limitation set forth above. 
 (b) Adjustments Upon Changes in Capitalization; Corporate Transactions. 
 (i) If the outstanding shares of Common Stock are increased or decreased, or are changed into or are exchanged for a different number or
kind of shares, as a result of one or more reorganizations, restructurings, recapitalizations, reclassifications, stock splits, reverse stock splits, stock dividends or the like, upon authorization of the Committee, appropriate adjustments shall be
made in the number and/or kind of shares, and the per-share option price thereof, which may be issued in the aggregate and to any Participant upon exercise of options granted under the Plan. 
 (ii) In the event of the proposed dissolution or liquidation of the Company, the Exercise Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Committee. 
 (iii) In the event of a proposed sale of
all or substantially all of the Company’s assets, or the merger of the Company with or into another corporation (each, a “Sale Transaction”), each option under the Plan shall be assumed or an equivalent option shall be substituted by
such successor corporation or a parent or subsidiary of such successor corporation, unless the Committee determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, to shorten the Exercise Period then in
progress by setting a new Exercise Date (the “New Exercise Date”). If the Committee shortens the Exercise Period then in progress in lieu of assumption or substitution in the event of a Sale Transaction, the Committee shall notify each
Participant in writing, at least ten (10) days prior to the New Exercise Date, that the exercise date for such Participant’s option has been changed to the New Exercise Date and that such Participant’s option will be exercised
automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Plan as provided in Section 13(a). For purposes of this Section 14(b), an option granted under the Plan shall be deemed to have been
assumed if, following the Sale Transaction, the option confers the right to purchase, for each share of option stock subject to the option immediately prior to the Sale Transaction, the consideration (whether stock, cash or other securities or
property) received in the Sale Transaction by holders of Common Stock for each share of Common Stock held on the effective date of the Sale Transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by
the holders of a majority of the outstanding shares of Common Stock); provided, that if the consideration received in the Sale Transaction was not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of
the Code), the Committee may, with the consent of the successor corporation and the Participant, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in
fair market value to the per share consideration received by the holders of Common Stock in the Sale Transaction. 
  

 9 

 (iv) In all cases, the Committee shall have sole discretion to exercise any of the powers
and authority provided under this Section 14, and the Committee’s actions hereunder shall be final and binding on all Participants. No fractional shares of stock shall be issued under the Plan pursuant to any adjustment authorized under
the provisions of this Section 14. 
 (c) Approval by Stockholders. No options granted under the Plan shall be
exercised, and no shares of Common Stock shall be issued hereunder, until the Plan shall have been approved by the Stockholders of the Company (such stockholder approval shall be prior to June 29, 2010). In the event this Plan shall not have
been approved by the stockholders of the Company prior to June 29, 2010, all options to purchase shares under this Plan shall be cancelled and become null and void. 
 15. Administration. 
 (a) Committee. The Plan shall be administered
by the Committee. The Committee shall have the authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the
Plan. The administration, interpretation, or application of the Plan by the Committee shall be final, conclusive and binding upon all persons. 
 (b) Requirements of Exchange Act. Notwithstanding the provisions of Section 15(a) above, in the event that Rule 16b-3 promulgated under the Exchange Act or any successor provision thereto
(“Rule 16b-3”) provides specific requirements for the administrators of plans of this type, the Plan shall only be administered by such body and in such a manner as shall comply with the applicable requirements of Rule 16b-3. 

16. Amendment, Suspension, and Termination of the Plan. 
 (a) Amendment of the Plan. The Board or the Committee may at any time, or from time to time, amend the Plan in any respect; provided,
that (i) except as otherwise provided in Section 4(b) hereof, no such amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant and (ii) the Plan may not be amended in any
way that will cause rights issued under the Plan to fail to meet the requirements for employee stock purchase plans as defined in Section 423 of the Code or any successor thereto. To the extent necessary to comply with Rule 16b-3 under the
Exchange Act, Section 423 of the Code, or any other applicable law or regulation, the Company shall obtain shareholder approval of any such amendment. 
 (b) Suspension of the Plan. The Board or the Committee may, as of the close of any Exercise Date, suspend the Plan; provided, that the Board or Committee provides notice to the Participants at
least five (5) business days prior to the suspension. The Board or Committee may resume the normal operation of the Plan as of any Exercise Date; provided further, that the Board or Committee provides notice to the Participants at least twenty
(20) business days prior to the date of termination of the suspension period. A Participant shall remain

  

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a Participant in the Plan during any suspension period (unless he or she withdraws pursuant to Section 13(a)), however no options shall be granted or exercised, and no payroll deductions
shall be made in respect of any Participant during the suspension period. Participants shall have the right to withdraw carryover funds provided in Section 10(c) throughout any suspension period. The Plan shall resume its normal operation upon
termination of a suspension period. 
 (c) Termination of the Plan. The Plan and all rights of Employees hereunder shall
terminate on the earliest of: 
 (i) the Exercise Date that Participants become entitled to purchase a number of shares greater
than the number of reserved shares remaining available for purchase under the Plan; 
 (ii) such date as is determined by the
Board in its discretion; or 
 (iii) the last Exercise Date immediately preceding the tenth (10th) anniversary of the
Plan’s effective date. 
 In the event that the Plan terminates under circumstances described in Section 16(c)(i) above, reserved
shares remaining as of the termination date shall be sold to Participants on a pro rata basis, based on the relative value of their cash account balances in the Plan as of the termination date. 
 17. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed
to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
 18. Expenses of the Plan. All costs and expenses incurred in administering the Plan shall be paid by the Company, except that any stamp duties or transfer taxes applicable to participation in the
Plan may be charged to the account of such Participant by the Company. 
 19. No Employment Rights. The Plan does not,
directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company
or any Subsidiary, and it shall not be deemed to interfere in any way with the right of the Company or any Subsidiary to terminate, or otherwise modify, an employee’s employment at any time. 
 20. Applicable Law. The internal laws of the State of Delaware shall govern all matters relating to this Plan except to the extent
(if any) superseded by the laws of the United States. 
 21. Additional Restrictions of Rule 16b-3. The terms and
conditions of options granted hereunder to, and the purchase of shares by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions. 
  

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 22. Effective Date. The Plan became effective on December 16, 2009. 

 

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