Document:

Exhibit 10.1

 

 

January 29, 2013

Sameer Harish

[Address]

 

		Re:	Offer
                                                                                                        of Employment as Chief
                                                                                                        Financial Officer

 

Dear Mr. Harish:

 

Oculus Innovative Sciences, Inc. (the “Company”)
is pleased to offer you (the “Executive”) the position of Chief Financial Officer (“CFO”)
of Ruthigen, Inc. (“Ruthigen”), a wholly-owned subsidiary of the Company, reporting directly to the Chief Executive
Officer of Ruthigen. The purpose of this letter is to outline the terms and conditions of your employment, so please review this
offer letter carefully. Your signature in the space provided at the end of this letter indicates that you accept our offer of employment
on these terms.

 

Salary/Benefits: You will be paid
a salary rate of two hundred and twenty five thousand ($225,000) USD per year commencing on the Employment Date (as defined below).
In addition, you will receive 350,000 shares of Ruthigen’s common stock in the form of founder’s shares. Shares will
vest monthly over 60-months as further defined by the Ruthigen’s Board of Directors at a future date. You will be eligible
to participate in the Company’s medical, dental, vision and retirement (401(k)) plans on the same terms as other Company
executives.

 

Duration: This is a full time position
subject to change with or without notice.

 

Employment Date: We would like you
to begin employment in this new position on February 1, 2013.

 

Employment At-Will: Employment with
the Company is not for a specific term and can be terminated by you or by the Company at any time for any reason, with or without
cause. Any contrary representations which may have been made or which may be made to you are superseded by this offer.

 

Termination Upon Sale of Business: In
the event of a merger, consolidation, sale of assets of greater than 50% of Ruthigen that occurs after Ruthigen’s planned
initial public offering, or other change of control of Ruthigen after its planned initial public offering (a “Change in
Control Event”), and should the Executive be terminated without cause within one year after such Change in Control Event,
the Executive shall be entitled to full vesting of outstanding shares, common or restricted, and/or stock options held by the Executive
as of his date of termination after the Change in Control Event. Other than the foregoing, there shall be no accelerated vesting
in any Change in Control Event.

 

Indemnification: The Company shall indemnify the
Executive, to the maximum extent permitted by applicable law and by its Restated Certificate of Incorporation, as may be amended
from time to time, against all costs, charges and expenses incurred or sustained by the Executive in connection with any action,
suit or proceeding to which he may be made a party by reason of being an officer, director or employee of the Company or of any
subsidiary or affiliate of the Company or any other corporation for which the Executive serves in good faith as an officer, director,
or employee at the Company’s request. Further, the Company shall maintain a directors & officers liability insurance
policy covering the Executive to the extent the Company provides such coverage for its other executives.

 

    	 

    	 

    

 

Confidential and Proprietary
Information: The Company expects that you work all your business hours exclusively for Ruthigen, and that you will not directly
or indirectly engage in any other employment, consulting or business activity elsewhere. This policy is further detailed in a certain
Confidentiality Agreement, a copy of which is attached for your signature. The Company has a firm policy against its employees
using any trade secrets or other proprietary information of third parties or previous employers in the course of performing their
duties for the Company. This policy is set forth in a certain separate agreement entitled “Proprietary Information and Inventions
Agreement,” a copy of which is attached for your signature. During your employment with Ruthigen and with the Company, you
may not disclose to the Company or use, or induce the Company to use, any trade secrets or other proprietary information of others,
including your prior employers. By accepting employment with the Company, you agree that you will not, in the performance of your
duties at the Company, utilize or disclose any proprietary information of former employers and that you will take with you no tangible
items such as drawings or reports when you leave your current employer. This offer letter sets forth the entire agreement between
you and the Company concerning your employment and neither you nor the Company shall be bound by any condition or understanding
with the respect to your employment other than is expressly provided in this letter. This offer can only be amended in writing,
signed by the Company and you.

 

Your employment is contingent
upon the following: (1) signing the attached Proprietary Information and Inventions Agreement, (2) signing the attached Confidentiality
Agreement, (3) providing the Company with legally required proof of identity and authorization to work in the United States, and
(4) any and all other documents customarily executed at the time of starting employment.

 

We look forward to having you join the Ruthigen team and believe it will be a challenging and rewarding
opportunity. Please indicate your acceptance of this offer by signing and returning one copy of this letter to me.

 

 

	Sincerely,	 	 	 	 
	 	 	 	 	 
	/s/ Hojabr Alimi	 	 	 
	Hojabr Alimi	 	 	 	 
	Chief Executive Officer of Ruthigen, Inc.	 	 	 	 
	 	 	 	 	 
	Agreed and accepted:	 	 	 	 
	 	 	 	 	 
	/s/ Sameer Harish	 	Date:	2/1/13	 
	Sameer Harish	 	 	 	 

 

    	 

    	 

    

 

 

 

May 23, 2013

 

Sameer Harish

[address]

 

		Re:	Amendment to the Offer of Employment as Chief Financial
Officer

 

Dear Mr. Harish:

 

The purpose of this letter is to amend
the terms and conditions of your employment, so please review this letter carefully. Your signature in the space provided at the
end of this letter indicates that you accept the amendment of the Company’s offer of employment.

 

The paragraph titled “Salary/Benefits”
in your offer letter dated January 29, 2013 will be entirely removed and replaced with the following paragraph.

 

Salary/Benefits: You will be paid a salary rate of two
hundred and twenty five thousand ($225,000) USD per year commencing on the Employment Date (as defined below). You will be eligible
to participate in the Company’s medical, dental, vision and retirement (401(k)) plans on the same terms as other Company
executives. If Ruthigen completes an Initial Public Offering, then Ruthigen intends to issue you equity in Ruthigen. The form of
such equity and the value of such equity will be determined at the time of the grant, if any.

In addition, the following language will
be added as a new paragraph below the paragraph titled “Employment At-Will”:

 

Termination Without Cause: In the
event of termination without cause prior to a grant of equity in Ruthigen if any, Ruthigen will make a payment of six (6) months’
base salary to the Executive as severance pay.

 

Additionally, we agree such changes will
be effective with a retroactive date of January 29, 2013. All other terms of your employment will continue as described in your
offer letter of January 29, 2013.

 

Please indicate your acceptance of this
amendment by signing and returning one copy of this letter to me.

 

Sincerely,

  

	/s/ Hojabr Alimi	 	 
	
        Hojabr Alimi

        Chief Executive Officer of Ruthigen, Inc.
	 	 

 

 

Agreed and accepted:

 

	/s/ Sameer Harish	 	Date: May 23, 2013
	Sameer HarishExhibit 10.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is entered into by and between Hojabr Alimi (the “Executive”),
and Ruthigen, Inc., a Nevada corporation (the “Corporation”), as of March 21, 2013.

 

RECITALS

 

WHEREAS, prior
to the date hereof, the Executive has been employed by Oculus Innovative Sciences, Inc., a Delaware corporation (“Oculus”);

 

WHEREAS, the
Corporation is a wholly-owned subsidiary of Oculus;

 

WHEREAS, the
board of directors of Oculus has approved the proposed spin-off of the Corporation (the consummation of such transaction referred
to herein as the “Spin-Off’); and

 

WHEREAS, the
Executive served as the President, Chief Executive Officer and Chairman of the Board of Directors of Oculus for an employment term
(the “Oculus Employment Term”) set forth in the related employment agreement dated as of January 1, 2004, between
Oculus and the Executive (the “Oculus Employment Agreement”); and

 

WHEREAS, the
boards of directors of Oculus and of the Corporation, respectively, expect that the Executive will make substantial contributions
to the growth and prospects of the Corporation; and

 

WHEREAS, the
boards of directors of Oculus and of the Corporation desire that effective February 4, 2013 (the “Effective Date“),
the Executive shall become the President and Chief Executive Officer of the Corporation, at which time the Oculus Employment Term
and the Oculus Employment Agreement will expire with no further Oculus obligation to the Executive, except as described in Sections
3.2,3.3 and 7(c) below; and

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and promises of the parties herein, the receipt and sufficiency
of which are hereby acknowledged by each of the parties, the Corporation and the Executive hereto agree as follows:

 

1.            Employment
and Duties.

 

1.1         Position.
On the terms and subject to the conditions set forth herein, the Corporation agrees to hire, engage, and employ the Executive
as its President and Chief Executive Officer for the Period of Employment (as defined in Section 2). At the request of the Board
and without additional compensation, the Executive shall also serve as an officer and/or director of any or all of the subsidiaries
of the Corporation and on the board of Oculus. The Executive does hereby accept and agree to such hiring, engagement and employment,
on the terms and conditions expressly set forth in this Agreement.

 

1.2         Duties.
During the Period of Employment (as defined in Section 2), the Executive shall serve the Corporation as its President and Chief
Executive Officer. The Executive shall, without limitation and without limiting the Executive’s other duties to the Corporation,
and without limiting the authority of the Corporation’s Board of Directors (the “Board”), be responsible
for the general supervision, direction and control of the business and affairs of the Corporation and have such other duties and
responsibilities as the Board shall designate that are consistent with the Executive’s positions as President and Chief Executive
Officer \ of the Corporation. The Executive shall perform all of such duties and responsibilities in accordance with the legal
directives of the Board in accordance with the practices and policies of the Corporation as in effect from time to time through
the Period of Employment (as defined in Section 2) (including, without limitation, the Corporation’s insider trading and
ethics policies, as they may change from time to time). While employed as Chief Executive Officer and President of the Corporation,
the Executive shall report exclusively to the Board. Throughout the Period of Employment (as defined in Section 2), the Executive
shall not serve on the boards of directors or advisory boards of any other entity unless such service is expressly approved by
the Board, except that the Executive may continue to serve on the board of directors of Oculus.

 

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1.3         No
Other Employment; Minimum Time Commitment. Throughout the Period of Employment (as defined in Section 2), the Executive
shall both (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s
duties for the Corporation, and (ii) hold no other job. The Executive agrees that any investment or direct involvement in, or any
appointment to or continuing service on the board of directors or similar body of, any corporation or other entity must be first
approved in writing by the Corporation. For purposes of clarity, the Corporation hereby approves the continued service of the Executive
on the board of directors of Oculus. The foregoing provisions of this Section 1.3 shall not prevent the Executive from investing
in non-competitive publicly-traded securities to the extent permitted by Section 7(b). The Executive agrees that, as of the date
of execution of this Agreement, Exhibit A to this Agreement sets forth a complete and accurate description of (i) any investment
or direct involvement of the Executive in any other corporation or business that reasonably could be construed as falling outside
the scope of the foregoing permitted investments and involvement, and (b) any board of directors or similar body of any corporation
or other entity on which the Executive is a member. The Corporation may require the Executive to resign from membership on any
board or similar body of any entity, on which he may now or in the future serve, if the Corporation determines that the Executive’s
membership on such board or similar body interferes (interference shall include, without limitation, giving rise to conflicts or
competitive activity) with the performance of the Executive’s duties hereunder.

 

1.4         No
Breach of Contract. The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement
by the Executive and the Corporation, and the performance by the Executive of the Executive’s duties hereunder shall not
constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party
or otherwise bound; (ii) the Executive has no information (including, without limitation, confidential information and trade secrets)
of any other person or entity which the Executive is not legally and contractually free to disclose to the Corporation; (iii)
the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this Agreement and the Oculus
Employment Agreement) with any other person or entity.

 

1.5         Location.
The Executive acknowledges that the Corporation’s principal executive offices are currently located in Santa Rosa, California.
The Executive’s principal place of employment shall be the Corporation’s principal executive offices, as they may be
moved from time to time at the discretion of the Corporation. The Executive agrees that the Executive will be regularly present
at the Corporation’s principal executive offices and that the Executive may be required to travel from time to time in the course
of performing the Executive’s duties for the Corporation.

 

1.6         Board
of Directors of the Corporation. It is the current intention of the Board that the Executive will serve on the Board of
Directors of the Corporation, commencing on the Effective Date.

 

2.            Period
of Employment. The “Period of Employment” shall commence on the Effective Date, and shall continue in
full force and effect until the date of Executive’s termination pursuant to Section 5.1. This Agreement shall govern the
terms of Executive’s employment hereunder on and after the Effective Date.

 

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3.            Compensation.

 

3.1         Base
Salary. As of the Effective Date and during the Period of Employment, the Corporation shall pay to the Executive a base
salary at the rate of $375,000 per year, subject to increase (but not decrease) by the Board (the “Base Salary”).
The Executive’s Base Salary shall be paid in accordance with the Corporation’s regular payroll practices in effect from time
to time, but not less frequently than in monthly installments.

 

3.2         Stock-based
Incentive Compensation.

 

3.2.1           Options
Granted by Oculus to the Executive. The Executive shall continue to vest in the options to purchase the Oculus common
stock previously granted to the Executive in accordance with the terms of such options grants.

 

3.2.2           Eligibility
for Stock-Based Incentive Compensation. The Executive shall be eligible to participate in the Corporation’s stock-based
incentive compensation plan or plans pursuant to the terms and conditions of such plan or plans. The Corporation may, in its sole
discretion, grant stock options and/or make other stock-based awards to the Executive.

 

3.3         Bonus
and Incentive Plans.

 

3.3.1           Oculus
2013 Bonus Plan. The Executive was a participant in Oculus’ incentive bonus plan for Oculus’ fiscal year ending
March 31, 2013 (the “2013 Bonus Plan”) until his resignation as Oculus’ President and Chief Executive
Officer. Oculus’ Compensation Committee has determined that the Executive is entitled to a pro-rated bonus payment pursuant
to the 2013 Bonus Plan. To determine the pro-rated bonus payment, Oculus’ Compensation Committee shall review Oculus’
2013 Bonus Plan, objectives, milestones, comparable company data, historical bonus information and target and stretch milestones
for the fiscal year ending March 31, 2013 as it relates to the Executive and the Executive’s contributions to Oculus until
his resignation and transfer to Corporation, and determine an appropriate bonus award for the Executive’s contributions
to Oculus pursuant to the terms of the 2013 Bonus Plan. Such pro-rated bonus payment shall not limit or prohibit the Corporation
from approving additional incentive compensation to the Executive.

 

3.3.2           Bonus
Plans and Incentive Programs. The Executive shall be eligible to participate in the Corporation’s bonus plans and
incentive plans as established from time to time by the Corporation. Any bonus shall be paid no later than March 15 of the year
following the year with respect to which such bonus is earned.

 

4.            Benefits.

 

4.1         Health
and Welfare. During the Period of Employment, the Executive shall be entitled to participate in all employee pension and
welfare benefits plans and programs made available by the Corporation to the Corporation’s senior-level employees generally,
as such plans or programs may be in effect from time to time.

 

4.2         Reimbursement
of Business Expenses. The Executive is authorized to incur reasonable expenses in carrying out the Executive’s duties
for the Corporation under this Agreement and entitled to reimbursement for all such expenses the Executive incurs during the Period
of Employment in connection with carrying out the Executive’s duties for the Corporation, subject to the Corporation’s reasonable
expenses reimbursement policies in effect from time to time. The Corporation shall reimburse the Executive to the extent required
by the preceding sentence.

 

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4.3         Vacation
and Other Leave. During the Period of Employment, the Executive shall accrue and be entitled to take paid vacation in accordance
with the Corporation’s standard vacation policies in effect from time to time, including the Corporation’s policies
regarding vacation accruals. The Executive shall also be entitled to all other holiday and leave pay generally available to all
other employees of the Corporation.

 

5.            Termination.

 

5.1         Termination
by the Corporation. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated
at any time by the Corporation: (i) with Cause (as defined in Section 5.5), or (ii) without Cause, or (iii) in the event of the
Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive has a Disability (as
defined in Section 5.5).

 

5.2         Termination
by the Executive. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated
at any time by the Executive, on no less than sixty (60) days’ prior written notice to the Corporation. Any termination by
the Executive for Good Reason (as defined in Section 5.5) shall be communicated by Notice of Termination to the Corporation. For
purposes of this Agreement, in the case of a notice given by the Executive to the Corporation, a “Notice of Termination”
means a written notice which (i) is communicated to the Corporation within ninety (90) days of the initial existence of the condition
giving rise to the Executive’s right to terminate for Good Reason, (ii) indicates the specific termination provision in this
Agreement relied upon, (iii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated, (iv) waives the Executive’s right to terminate for Good Reason
if the Corporation within thirty (30) days of such notice cures the condition otherwise giving rise to the Executive’s right
to terminate for Good Reason, and, (v) if the termination date is other than the date that is thirty-one (31) days after the communication
of such notice, specifies the termination date (which date shall be not more than forty-five (45) days after the giving of such
notice).

 

5.3         Benefits
Upon Termination. If the Executive’s employment by the Corporation is terminated during the Period of Employment
for any reason by the Corporation or by the Executive, the Corporation shall have no further obligations to make or provide to
the Executive, and the Executive shall have no further right to receive or obtain from the Corporation, any payments or benefits
except:

 

(a)          the
Corporation shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations (as defined
in Section 5.5); and

 

(b)          if,
during the Period of Employment, the Executive’s employment is terminated by the Corporation without Cause or by the Executive
for Good Reason (as defined in Section 5.5) (and, in each case, other than due to either the Executive’s death, or a good
faith determination by the Board that the Executive has a Disability):

 

(i)          the
Corporation shall, subject to the conditions set forth in Section 5.3(c) and the constraints set forth in Section 5.8, also pay
the Executive a lump sum severance benefit equal to twenty-four (24) times the average monthly Base Salary paid to the Executive
over the twelve (12) whole months preceding the month in which the termination of the Executive’s employment occurs (or,
if the Period of Employment has not been in effect for twelve (12) whole months preceding the month in which the termination of
the Executive’s employment occurs, the average monthly Base Salary for this purpose shall be determined based on the average
monthly Base Salary paid to the Executive over the whole months in the Period of Employment occurring prior to the month in which
the termination of the Executive’s employment occurs). Subject to the conditions set forth in Section 5.3(c), such lump sum
amount shall be paid to the Executive (without interest) no later than seven (7) days following the date on which the Executive’s
employment by the Corporation terminates;

 

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(ii)         the
Corporation shall, subject to the conditions set forth in Section 5.3(c), pay as a severance benefit one hundred percent (100%)
of the Executive’s premiums under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for the
same or reasonably equivalent medical coverage, as in effect on the date the Executive’s employment terminated, for a period
not to exceed the lesser of one year following the date of such termination or until the Executive becomes eligible for medical
insurance coverage provided by another employer; and

 

(iii)        as
of the date the Executive’s employment terminates, any and all stock options, stock appreciation rights, restricted stock
awards, and similar equity and equity-based awards granted by the Corporation to the Executive outstanding immediately prior to
such termination of employment shall thereupon be deemed fully vested and shall be exercisable for a period of no less than twelve
(12) months thereafter or until the stated expiration date for such option or award at the end of its maximum term, whichever is
earlier; provided, however that this Section 5.3(b)(iii) shall not affect any right of the Corporation to terminate
such option or award in connection with a change in control of the Corporation or similar event to the extent such right exists
under the provisions of any agreement evidencing such option or award.

 

(c)          Any
obligation of the Corporation pursuant to Section 5.3(b) to pay a severance benefit in the circumstances described therein is further
subject to the following two conditions precedent: (i) such severance obligation shall be paid only if the Executive has remained
in compliance with all of the provisions of Section 5.6 and Sections 7 through 12, and such obligation shall terminate immediately
if the Executive is for any reason not in compliance with one or more of the provisions of Section 5.6, and Sections 7 through
12; and (ii) the Executive’s satisfaction of the release obligations set forth in Section 5.4. For purposes of the preceding
sentence, if the Executive is not in compliance with one or more provisions of Section 5.6, and Sections 7 through 12, and a cure
is reasonably possible in the circumstances, the Executive will not be deemed to have breached such provision(s) unless the Executive
is given notice and a reasonable opportunity (in no case shall more than a 10-day cure period be required) to cure such breach
and such breach is not cured within such time period. The parties agree that a cure will not be reasonably possible in all circumstances
including, without limitation, a material breach of confidentiality or similar occurrence.

 

(d)          Except
as expressly provided herein, the foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt
of benefits otherwise due to terminated employees under group insurance coverage consistent with the terms of the applicable Corporation
welfare benefit plan; (ii) the Executive’s rights under COBRA to continue participation in medical, dental, hospitalization
and life insurance coverage; (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the
Corporation’s 401 (k) plan (if any); or (iv) any rights that the Executive may have under and with respect to a stock option,
stock appreciation right, restricted stock award, or similar equity or equity-based award, to the extent that such award was granted
before the date that the Executive’s employment by the Corporation terminates and to the extent expressly provided in the
written agreement evidencing such award.

 

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5.4         Release;
Exclusive Remedy.

 

(a)          This
Section 5.4 shall apply notwithstanding anything else contained in this Agreement to the contrary. As a condition precedent to
any Corporation obligation to the Executive pursuant to Section 5.3(b), the Executive shall, upon or promptly following his last
day of employment with the Corporation, provide the Corporation with a valid, executed, written Release (as defined in Section
5.5) (in a form provided by the Corporation) and such Release shall have not been revoked by the Executive pursuant to any revocation
rights afforded by applicable law. The Corporation shall have no obligation to make any payment to the Executive pursuant to Section
5.3(b) unless and until the Release contemplated by this Section 5.4 becomes irrevocable by the Executive in accordance with all
applicable laws, rules, and regulations.

 

(b)          The
Executive agrees that the payments contemplated by Section 5.3 shall constitute the exclusive and sole remedy for any termination
of his employment and the Executive covenants not to assert or to pursue any other remedies, at law or in equity, with respect
to any termination of employment. The Corporation and Executive acknowledge and agree that there is no duty of the Executive to
mitigate damages under this Agreement. All amounts paid to the Executive pursuant to Section 5.3 shall be paid without regard to
whether the Executive has taken or takes actions to mitigate damages.

 

5.5         Certain
Defined Terms.

 

(a)          As
used herein, “Accrued Obligations” means:

 

(i)          any
Base Salary that has accrued but had not been paid (including accrued and unpaid vacation time) prior to the date of termination;
and

 

(ii)         any
reimbursement due to the Executive pursuant to Section 4.2 for expenses incurred by the Executive prior to the date the Period
of Employment terminates.

 

(b)          As
used herein, “Cause” shall mean the reasonable and good faith determination by a majority of the Board based
on its reasonable belief at the time, that, during the Period of Employment, any of the following events or contingencies exists
or has occurred:

 

(i)          the
Executive is convicted of, or has pled guilty to, a felony (under the laws of the United States or any state thereof); or

 

(ii)         the
Executive has engaged in acts of fraud, material dishonesty or other acts of willful misconduct in the course of his duties hereunder,
unless the Executive believed in good faith that such acts were in the interests of the Corporation; or

 

(iii)        the
Executive willfully and repeatedly fails to perform or uphold his duties under this Agreement; or

 

(iv)        the
Executive willfully fails to comply with reasonable directives of the Board which are communicated to him in writing.

 

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(c)          As
used herein, “Disability” shall mean a physical or mental impairment which substantially limits a major life
activity of the Executive and which renders the Executive unable to perform the essential functions of the Executive’s position,
even with reasonable accommodation which does not impose an undue hardship on the Corporation, for ninety (90) days in any consecutive
twelve (12) month period, but only if the Executive is considered to be disabled within the meaning of Treasury Regulation section
1.409A-3(i)(4). Without limiting the circumstances in which the Executive may be determined to be disabled as defined in Treasury
Regulation section 1.409A-3(i)(4), the Executive will be presumed to be disabled if determined to be totally disabled by the Social
Security Administration or if determined to be disabled in accordance with a disability insurance program, provided the definition
of disability applied under such disability insurance program complies with the requirements of Treasury Regulation section 1.409A-3(i)(4).

 

(d)          As
used herein, “Good Reason” shall mean the occurrence of one of more of the following without the Executive’s
written consent:

 

(i)          the
assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities,
and status (including titles and reporting requirements) as Chief Executive Officer of the Corporation, or a material reduction
or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities, other than an insubstantial
and inadvertent act that is remedied by the Corporation promptly after receipt of notice thereof give by the Executive; or

 

(ii)         a
reduction by the Corporation in the Executive’s Base Salary as in effect on the Effective Date or as the same shall be increased
from time to time, or the Corporation otherwise fails to satisfy its compensation obligations to the Executive under this Agreement,
after notice by the Executive and a reasonable opportunity to cure; or

 

(iii)        the
failure of the Corporation to obtain a satisfactory agreement from any successor to the Corporation to assume and agree to perform
this Agreement.

 

provided, however,
that none of the events specified in clause (i), (ii), or (iii) above shall constitute Good Reason unless the Executive shall have
notified the Corporation in writing describing the events which constitute Good Reason and the Corporation shall have failed to
cure such event within a reasonable period, not to exceed ten (10) days, after the Corporation’s actual receipt of such written
notice.

 

(e)          As
used herein, “Release” shall mean a written release, discharge and covenant not to sue entered into by the Executive
on behalf of himself, his descendants, dependants, heirs, executors, administrators, assigns, and successors, and each of them,
of and in favor of the Corporation, its parent (if any), the Corporation’s subsidiaries and affiliates, past and present,
each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, shareholders, members,
representatives, assigns, and successors, past and present, and each of them (the “releasees”), which respect to and
from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations,
debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity
or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which he may then
own or hold or he at any time theretofore owned or held or may in the future hold as against any or all of said releasees, arising
out of or in any way connected with the Executive’s employment relationship with each and every member of the Company Group
(as defined in Section 7) with which the Executive has had such a relationship, or the termination of his employment or any other
transactions, occurrences, acts or omissions or any loss, damages, or injury whatever, known or unknown, suspected or unsuspected,
resulting from any act or omission by or on the part or said releasees, or any of them, committed or omitted prior to the date
of such Release including, without limiting the generality of the foregoing, any claim under Section 1981 of the Civil Rights Act
of 1866, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act,
the Family Medical Leave Act of 1993, the California Fair Employment and Housing Act, the California Family Rights Act, any other
claim under any other federal, state, or local law or regulation, and any other claim for severance pay, bonus or incentive pay,
sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any other fringe benefit, medical expenses
or disability (except that such Release shall not constitute a release of any Corporation obligation to the Executive that may
be due to the Executive pursuant to Section 5.3(b) upon the Corporation’s receipt of such Release). The Release shall also
contain the Executive’s warrant that he has not theretofore assigned or transferred to any other person or entity, other
than the Corporation, any released matter or any part or portion thereof and that he will defend, indemnify and hold harmless the
Corporation and the aforementioned releasees from and against any claim (including the payment of attorneys’ fees and costs
actually incurred whether or not litigation is commenced)    that is directly or indirectly based on or in
connection with or arising out of any such assignment or transfer made, purported or claimed.

 

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(f)          
“Initial Public Offering” means the initial public offering of the Corporation registered on Form S-l (or any
successor form under the Securities Act of 1933, as amended).

 

(g)          For
the purposes of this Agreement, a “Change of Control” means the occurrence of any of the following:

 

		i.	a sale, lease or other disposition of all or substantially all of the assets of the Corporation
and its subsidiaries, taken as a whole;

 

		ii.	a sale, lease or other disposition of all or substantially all of the assets of Oculus and its
subsidiaries, taken as a whole, as long as Oculus still owns 51-100% of the Corporation and the Corporation is included in the
sale, lease, or other disposition of assets of Oculus and its subsidiaries;

 

		iii.	any consolidation or merger of the Corporation with or into any other corporation or other person,
or any other corporate reorganization or transaction (including the acquisition of capital stock of the Corporation), whether or
not the Corporation is a party thereto, in which the stockholders of the Corporation immediately prior to such consolidation, merger,
reorganization or transaction, own capital stock and either:

 

		a.	represent directly, or indirectly through one or more entities, less than fifty percent (50%) of
the economic interests in or voting power of the Corporation or other surviving entity immediately after such consolidation, merger,
reorganization or transaction, or

 

		b.	do not directly, or indirectly through one or more entities, have the power to elect a majority
of the entire board of directors of the Corporation or other surviving entity immediately after such consolidation, merger, reorganization
or transaction; or

 

		iv.	any stock sale or other transaction or series of related transactions, whether or not the Corporation
is a party thereto, after giving effect to which in excess of fifty percent (50%) of the Corporation’s voting power is owned
directly, or indirectly though one or more entities, by any person and its “affiliates” or “associates”
(as such terms are defined in the rules adopted by the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended).

 

    	8

    	 

    

 

but excluding, in any case referred to
in clause (iii) or (iv) of this definition, the Initial Public Offering, or any bona fide primary or secondary public offering
following the occurrence of the Initial Public Offering.

 

(g)          For
purposes of the definition of “Change of Control”, the following definitions shall be applicable:

 

		i.	The term “person” shall mean any individual, corporation or other entity and any group
as such term is used in Section 13(d) (3) or 14(d) (2) of the Exchange Act.

 

		ii.	Any person shall be deemed to be the beneficial owner of any shares of capital stock of the Corporation:

 

		a.	which that person owns directly whether or not of record, or

 

		b.	which that person has the right to acquire pursuant to any agreement or understanding or upon exercise
of conversion rights, warrants, or options, or otherwise, or

 

		c.	which are beneficially owned, directly or indirectly (including shares deemed owned through application
of clause (B) above, by an “affiliate” or “associate” (as defined in the rules of the Securities and Exchange
Commission under the Securities Act of 1933, as amended) of that person, or

 

		d.	which are beneficially owned, directly or indirectly (including shares deemed owned through application
of clause (B) above), by any other person with which that person or his “affiliate” or “associate” (defined
as aforesaid) has any agreement, arrangement, or understanding for the purpose of acquiring, holding, voting or disposing of capital
stock of the Corporation.

 

		iii.	The outstanding shares of capital stock of the Corporation shall include shares deemed owned through
application of clause (ii) (b), (c), and (d) above, but shall not include any other shares which may be issuable pursuant to any
agreement or upon exercise of conversion rights, warrants or options, or otherwise, but which are not actually outstanding.

 

5.6         Board/Committee
Resignations. Upon or promptly following any termination of Executive’s employment with the Corporation, the Executive
agrees to resign, as of the date of such termination, from (i) each and every board of directors (or similar body, as the case
may be) of the Corporation and each of its affiliates on which the Executive may then serve, including, but not limited to, the
Board (and any committees thereof) and the board of directors of Oculus (and any committees thereof), and (ii) each and every office
of the Corporation and each of its affiliates that the Executive may then hold, and all positions that he may have previously held
with the Corporation and any of its affiliates.

 

5.7         Excise
Tax Gross-Up. During and after the Period of Employment, the Executive shall be entitled to the excise tax protections
set forth in Exhibit B hereto.

 

    	9

    	 

    

 

5.8         Section
409A of the Internal Revenue Code.

 

(a)   This
Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986 (“Section 409A”) and
shall be construed and interpreted consistent with that intent. In the event that any payment or benefit payable under Section
5.3 of this Agreement is not compliant with Section 409A and any taxes, penalties or interest are imposed on the Executive under
Section 409A as a result of such noncompliance (the “Section 409A Penalties”), the Corporation shall put the
Executive in an after tax economic position equivalent to the position the Executive would have been in without the imposition
of such Section 409A Penalties. The Executive shall notify the Corporation in writing of any claim by the Internal Revenue Service
or state tax authorities that, if successful, would require the payment of any such Section 409A Penalties or related state tax
statutes. The Executive’s right to be put in an equivalent after tax economic position is subject to the Executive providing
such notification no later than ten business days after Executive is informed in writing of such claim. If the Corporation desires
to contest such claim, Executive shall (i) cooperate with the Corporation in good faith in order to effectively contest such claim
and (ii) permit the Corporation to participate in any proceedings relating to such claim. The Corporation shall control all proceedings
taken in connection with such contest; provided, however, that the Corporation shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest. This section shall also apply to any taxes,
penalties, or interest imposed by any state that are calculated in a manner similar to taxes, penalties, or interest imposed by
Section 409A(a)(l)(B), including those amounts imposed by the California Revenue and Taxation Code (R&TC) Sections 17501 and
24601.

 

(b)   If
and to the extent that any payment or benefit under this Agreement, or any plan or arrangement of the Corporation, is determined
by the Corporation to constitute “non-qualified deferred compensation” subject to Section 409A and is payable to the
Executive by reason of the Executive’s termination of employment, then (a) such payment or benefit shall be made or provided
to the Executive only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations
(a “Separation from Service”) and (b) if the Executive is a “specified employee” (within the meaning
of Section 409A and as determined by the Corporation), such payment or benefit shall not be made or provided before the date that
is six months after the date of the Executive’s separation from service (or the Executive’s earlier death). For the
purposes of clarity, the first payment thereof will include a catch-up payment covering the amount that would have otherwise been
paid to the Executive during the period between the termination of Executive’s employment and the first payment date but
for the application of this provision, and the balance of the installments (if any) will be payable in accordance with their original
schedule.

 

(c)   To
the extent any expense reimbursement or in-kind benefit is determined to be subject to Section 409A, the amount of any such expenses
eligible for reimbursement or in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement
or in-kind benefits provided in any other taxable year (except under any lifetime limit applicable to expenses for medical care),
in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive
incurred such expenses, and in no event shall any right to reimbursement or in-kind benefits be subject to liquidation or exchange
for another benefit.

 

(d)   To
the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read
in such a manner so that all payments hereunder comply with Section 409A. To the extent any payment under this Agreement may be
classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term
deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant
to this section are intended to constitute separate payments for purposes of Section 1. 409A-2(b)(2) of the Treasury Regulations.

 

    	10

    	 

    

 

6.           Means
and Effects of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated
by written notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific
prevision(s) of this Agreement relied upon in effecting the termination.

 

7.            Non-Competition.
The Executive acknowledges and recognizes the highly competitive nature of the businesses of the Corporation, the amount of
sensitive and confidential information involved in the discharge of the Executive’s position with the Corporation, and the harm
to the Corporation that would result if such knowledge or expertise was disclosed or made available to a competitor. Based on that
understanding, the Executive hereby expressly agrees as follows:

 

(a)          As
a result of the particular nature of the Executive’s relationship with the Corporation, in the capacities identified earlier
in this Agreement, for the Period of Employment, the Executive hereby agrees that he will not, directly or indirectly, (i) engage
in any business for the Executive’s own account or otherwise derive any personal benefit from any business that competes with the
business of the Corporation or any of its affiliates (the Corporation and its affiliates are referred to, collectively, as the
“Company Group”), (ii) enter the employ of, or render any services to, any person engaged in any business that
competes with the business of any entity within the Company Group, (iii) acquire a financial interest in any person engaged in
any business that competes with the business of any entity within the Company Group, directly or indirectly, as an individual,
partner, member, shareholder, officer, director, principal, agent, trustee, or consultant, or (iv) interfere with business relationships
(whether formed before or after the date of execution of this Agreement) between the Corporation, any of its respective affiliates
or subsidiaries, and any customers, suppliers, officers, employees, partners, members or investors of any entity within the Company
Group. For purposes of this Agreement, businesses in competition with the Company Group shall include, without limitation, businesses
which any entity within the Company Group may conduct operations, and any business which any entity within the Company Group has
specific plans to conduct operations in the future and as to which the Executive is aware of such planning, whether or not such
businesses have or have not as of that date commenced operations.

 

(b)          Notwithstanding
anything to the contrary in this Agreement, the Executive may, directly or indirectly, own, solely as an investment, securities
of any Person which are publicly traded on a national or regional stock exchange or on the over-the-counter market if the Executive
(i) is not a controlling Person of, or a member of a group that controls, such Person, and (ii) does not, directly or indirectly,
beneficially own one percent (1%) of more of any class of securities of such Person. For purposes of this Section 7(b), “Person”
shall have the meaning ascribed to such terms in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as described in Section 13(d) thereof.

 

(c)          Oculus
Non-Competition Clause. From the Effective Date until one year following the Effective Date, the Executive hereby expressly
agrees that the non-competition clauses as contained therein in the Oculus Employment Agreement will continue to be applicable
to the Executive. Accordingly, the Executive hereby agrees that he will not, directly or indirectly, for a period of one year following
the Effective Date, (i) engage in any business for the Executive’s own account or otherwise derive any personal benefit from
any business that competes with the business of Oculus, its subsidiaries (which includes the Corporation) or any of its affiliates
(Oculus, its subsidiaries, and its affiliates are referred to, collectively, as the “Oculus Group”), (ii) enter
the employ of, or render any services to, any person engaged in any business that competes with the business of any entity within
Oculus Group, (iii) acquire a financial interest in any person engaged in any business that competes with the business of any entity
within Oculus Group, directly or indirectly, as an individual, partner, member, shareholder, officer, director, principal, agent,
trustee, or consultant, or (iv) interfere with business relationships (whether formed before or after the Effective Date) between
Oculus, any of its respective affiliates or subsidiaries, and any customers, suppliers, officers, employees, partners, members
or investors of any entity within the Oculus Group. For purposes of this Agreement, businesses in competition with the Oculus Group
shall include, without limitation, businesses which any entity within the Oculus Group may conduct operations, and any business
which any entity within the Oculus Group has specific plans to conduct operations in the future and as to which the Executive is
aware of such planning, whether or not such businesses have or have not as of that date commenced operations. For clarity, the
parties acknowledge that there is overlap between Section 7(a) and Section 7(c) of this Agreement. It is the intent of the parties
that the prevailing provision, in the event of conflict, be the most constrictive to that of the Executive in regards to non-competition
of Oculus and/or the Corporation.

 

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8.          Confidentiality.
As a material part of the consideration for the Corporation’s commitment to the terms of this Agreement, the Executive
hereby agrees that the Executive will not at any time (whether during or after the Executive’s employment with the Corporation),
other than in the course of the Executive’s duties hereunder, or unless compelled by lawful process after written notice
to the Corporation of such notice along with sufficient time for the Corporation to try and overturn such lawful process, disclose
or use for the Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint
venture, association, corporation or other business organization, entity or enterprise, any trade secrets, or other confidential
data or information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion,
credit and financial data, financing methods, or plans of any entity within the Company Group; provided, however,
that the foregoing shall not apply to information which is generally known to the industry or the public, other than as a result
of the Executive’s breach of this covenant. The Executive further agrees that the Executive will not retain or use for his
own account, at any time, any trade names, trademark or other proprietary business designation used or owned in connection with
the business of any entity within the Company Group.

 

9.          Inventions
and Developments.

 

(a)          All
inventions, policies, systems, developments or improvements conceived, designed, implemented and/or made by the Executive, either
alone or in conjunction with others, at any time or at any place during the Period of Employment, whether or not reduced to writing
or practice during such Period of Employment, which directly or indirectly relate to the business of any entity within the Company
Group, or which were developed or made in whole or in part using the facilities and/or capital of any entity within the Company
Group, shall be sole and exclusive property of the Company Group. The Executive shall promptly give notice to the Corporation of
any such invention, development, patent or improvement, and shall at the same time, without the need for any request by any person
or entity within the Company Group, assign all of the Executive’s rights to such invention, development, patent and/or improvement
to the Company Group. The Executive shall sign all instruments necessary for the filing and prosecution of any applications for,
or extensions or renewals of, letters patent of the United States or any foreign country that any entity in the Company Group desires
to file.

 

(b)          All
copyrightable work by the Executive during the Period of Employment that relates to the business of any entity in the Company Group
is intended to be “work made for hire” as defined in Section 101 of the Copyright Act of 1976, and shall be the property
of the Company Group. If the copyright to any such copyrightable work is not the property of the Company Group by operation of
the law, the Executive will, without further consideration, assign to the Company Group all right, title and interest in such copyrightable
work and will assist the entities in the Company Group and their nominees in every way, at the Company Group’s expense, to
secure, maintain and defend the Company Group’s benefit copyrights and any extensions and renewals thereof on any and all
such work including translations thereof in any and all countries, such work to be and to remain the property of the Company Group
whether copyrighted or not.

 

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10.         Anti-Solicitation.
In light of the amount of sensitive and confidential information involved in the discharge of the Executive’s duties,
and the harm to the Corporation that would result if such knowledge or expertise were disclosed or made available to a competitor,
and as a reasonable step to help protect the confidentiality of such information, the Executive promises and agrees that during
the Period of Employment and for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually
or as a consultant to, or as an employee, officer, shareholder, director or other owner or participant in any business, influence
or attempt to influence any customers, vendors, suppliers, joint venturers, associates, consultants, agents, or partners of any
entity within the Company Group, either directly or indirectly, to divert their business away from the Company Group, to any individual,
partnership, firm, corporation or other entity then in competition with the business of any entity within the Company Group, and
he will not otherwise materially interfere with any business relationship of any entity within the Company Group.

 

11.         Soliciting
Employees. In light of the amount of sensitive and confidential information involved in the discharge of the Executive’s
duties, and the harm to the Corporation that would result if such knowledge or expertise were disclosed or made available to a
competitor, and as a reasonable step to help protect the confidentiality of such information, the Executive promises and agrees
that during the Period of Employment and for a period of two (2) years thereafter, the Executive will not, directly or indirectly,
individually or as a consultant to, or as an employee, officer, shareholder, director, or other owner of or participant in any
business, solicit (or assist in soliciting) any person who is then, or any time within six (6) months prior thereto was, an employee
of an entity within the Company Group, who earned annually $25,000 or more as an employee of such entity during the last six (6)
months of his or her own employment to work for (as an employee, consultant or otherwise) any business, individual, partnership,
firm, corporation, or other entity whether or not engaged in competitive business with any entity in the Company Group.

 

12.         Return
of Property. The Executive agrees to truthfully and faithfully account for and deliver to the Corporation all property
belonging to the Corporation, any other entity in the Company Group, or any of their respective affiliates, which the Executive
may receive from or on account of the Corporation, any other entity in the Company Group, or any of their respective affiliates,
and upon the termination of the Period of Employment, or the Corporation’s demand, the Executive shall immediately deliver
the Corporation all such property belonging to the Corporation, any other entity in the Company Group, or any of their respective
affiliates.

 

13.         Withholding
Taxes. Notwithstanding anything else herein to the contrary, the Corporation may withhold (or cause there to be withheld,
as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local
income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

14.         Cooperation
in Litigation. The Executive agrees that he will reasonably cooperate with the Corporation, subject to his reasonable personal
and business schedules, in any litigation which arises out of events occurring prior to the termination of his employment, including
but not limited to, serving as a witness or consultant and producing documents and information relevant to the case or helpful
to the Corporation. The Corporation agrees to reimburse the Executive for all reasonable costs and expenses he incurs in connection
with his obligations under this Section 14 and, in addition, to reasonably compensate the Executive for time actually spent in
connection therewith following the termination of his employment with the Corporation.

 

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15.         Assignment.
This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however, that in the event of a merger, consolidation,
or transfer or sale of all or substantially all of the assets of the Corporation with or to any other individual(s) or entity,
this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor
shall discharge and perform all the promises, covenants, duties and obligations of the Corporation hereunder.

 

16.         Number
and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and
any gender shall include all other genders.

 

17.         Section
Headings. The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the
purposes of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation
thereof.

 

18.         Governing
Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as
the legal relations hereby created between the parties hereto, shall be governed by and constructed under, and interpreted and
enforced in accordance with, the laws of the State of California, notwithstanding any California or other conflict of law provision
to the contrary. This Agreement is intended to comply with Section 409A of the Code and the regulations promulgated thereunder.

 

19.         Severability.
If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions
or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the
provisions of this Agreement are declared to be severable.

 

20.         Entire
Agreement. This Agreement replaces and supersedes prior employment agreements, including the Oculus Employment Agreement
executed by and between Oculus and the Executive dated January 1, 2004, except certain sections of the Oculus Employment Agreement
as indicated in this Agreement. This Agreement embodies the entire agreement of the parties hereto respecting the matters within
its scope. This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly
bears upon the subject matter hereof. Any prior negotiations, correspondence, agreements, proposals or understandings relating
to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith,
such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect. There
are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject
matter hereof, except as expressly set forth herein.

 

21.         Modifications.
This Agreement may not be amended, modified, or changed (in whole or in part), except by a formal, definitive written agreement
expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

22.         Waiver.
Neither the failure nor any delay on the part of a 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 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 parties asserted to have granted
such waiver.

 

    	14

    	 

    

 

23.         Resolution
of Disputes.

 

(a)          Any
controversy arising out of or relating to the Executive’s employment (whether or not before or after the expiration of the
Period of Employment), any termination of the Executive’s employment, this Agreement or the enforcement or interpretation
of this Agreement, or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of
this Agreement, including (without limitation) any state or federal statutory claims, shall be submitted to arbitration in Santa
Rosa, California, before a sole arbitrator (the “Arbitrator”) selected from judicial arbitration meditation
services (“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected
from the American Arbitration Association (“AAA”), and shall be conducted in accordance with the provisions
of California Code of Civil Procedure §§ 1280 et. seq. as the exclusive remedy of such dispute; provided,
however, that provisional injunctive relief may, but need not, be sought in a court of law while arbitration proceedings
are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined
by the Arbitrator. Final resolution of any dispute through arbitration may include any remedy or relief that the Arbitrator deems
just and equitable, including any and all remedies provided by applicable state or federal statutes. At the conclusion of the
arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the
Arbitrator’s award or decision is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding
on the parties hereto and may be enforced by any court of competent jurisdiction.

 

(b)          The
parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim
brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected
with any of the matters referenced in the first sentence of the first paragraph of this Section 23.

 

(c)          The
parties agree that the Corporation shall be responsible for payment of the forum costs of any arbitration hereunder, including
the Arbitrator’s fee. The parties further agree that in any proceeding with respect to such matters, the prevailing party
will be entitled to recover its reasonable attorney’s fees and costs from the non-prevailing party (other than forum costs
associated with the arbitration which in any event shall be paid by the Corporation).

 

(d)          Without
limiting the remedies available to the parties and notwithstanding the foregoing provisions of this Section 23, the Executive and
the Corporation acknowledge that any breach of any of the covenants or provisions contained in Sections 5.6, and 7 through 12 could
result in irreparable injury to either of the parties hereto for which there might be no adequate remedy at law, and that, in the
event of such a breach or threat thereof, the non-breaching party shall be entitled to obtain a temporary restraining order and/or
a preliminary injunction and a permanent injunction restraining the other party hereto from engaging in any activities prohibited
by any covenant or provision in Sections 5.6, and 7 through 12 or such other equitable relief as may be required to enforce specifically
any of the covenants or provisions of Sections 5.6, and 7 through 12.

 

24.         Notices.

 

(a)          All
notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly received if (i) delivered by hand or by courier, effective upon delivery (ii) given by facsimile or electronic
version, when transmitted and the appropriate telephonic or electronic confirmation received if transmitted on a business day and
during normal business hours of the recipient, and otherwise on the next business day following transmission; or (iii) sent by
registered or certified mail, postage prepaid, return receipt requested, five (5) business days after being deposited in the U.S.
mails. Any notice shall be duly addressed to the parties as follows:

 

    	15

    	 

    

 

(i)          if
to the Corporation:

 

Ruthigen, Inc.

c/o Oculus Innovative Sciences,
Inc.

1129 North McDowell Boulevard

Petaluma, California 94954

Attn: General Counsel

Fax: +1 (707) 283-0551

 

(ii)         If
to the Executive:

 

Hojabr Alimi

At the address on file with the
Corporation

 

(b)          Any
party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity
with the provisions of this Section 24 for the giving of notice.

 

25.         Legal
Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and acknowledges and agrees that
they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation
and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against
either party on the basis of that party being the drafter of such language.

 

26.         Provisions
that Survive Termination. The provisions of 5.3, 5.4, 5.5, 5.6, 5.7, and 7 through 25, 27, and this Section 26 shall survive
any termination of the Period of Employment.

 

27.         Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties hereon
as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the Corporation and the Executive have executed this Agreement as of the date first written above.

 

	 	 	CORPORATION	 
	 	 	 	 
	 	 	Ruthigen, Inc.,	 
	 	 	a Nevada corporation	 
	 	 	 	 
	 	By:	/s/ Richard Conley	 
	 	Name:	Richard Conley	 
	 	Title:	Chairman of the Compensation Committee
	 	 	of Oculus Innovative Sciences, Inc.
	 	 	 	 
	 	 	EXECUTIVE	 
	 	 	 	 
	 	 	/s/ Hojabr Alimi	 
	 	 	Hojabr Alimi	 

 

    	17

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