Document:

Exhibit 10.1

 

HILL INTERNATIONAL, INC.

2015 SENIOR EXECUTIVE RETENTION PLAN

 

1.                                      Purpose.

 

The purpose of the 2015 Senior Executive Retention Plan (the “Plan”) of Hill International, Inc. (the “Company”) is to assure that the Company will have the continued dedication of certain key senior executive officers (each, an “Executive”), notwithstanding the possibility, threat or occurrence of a future Change in Control (as defined below).  The Company believes it is in its best interests to minimize the inevitable distraction of the Executives by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and to encourage the Executives’ full attention and dedication to the Company currently and in the event of any threatened or pending Change in Control, and to provide the Executive with compensation and benefit arrangements upon a Change in Control which ensure that the compensation and benefits expectations of the Executives will be satisfied.

 

2.                                      Definitions.

 

As used in the Plan, “Change in Control” of the Company will be deemed to occur on the earliest to occur of any of the following events:

 

(i)                                     Change in Ownership:  A change in ownership of the Company occurs on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, excluding the acquisition of additional stock by a person or more than one person acting as a group who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company.

 

(ii)                                  Change in Effective Control:  A change in effective control of the Company occurs on the date that either:

 

(1)                                 Any one person, or more than one person acting as a group, acquires (or has acquired during the two-year period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty percent (30%) or more of the total voting power of the stock of the Company; or

 

(2)                                 A majority of the members of the Company’s Board of Directors is replaced during any two-year period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; provided, that this paragraph (2) will apply to the Company only if no other corporation is a majority shareholder.

 

 

3.                                      Termination.

 

(a)                                 In the event an Executive’s employment hereunder is terminated by the Company during the two-year period immediately following a Change in Control of the Company for any reason other than (i) conviction of any felony or any other crime involving moral turpitude, (ii) fraud against the Company or any of its subsidiaries or affiliates or theft of or maliciously intentional damage to the property of the Company or any of their subsidiaries or affiliates, or (iii) willful breach of Executive’s fiduciary duties to the Company, the Company shall as additional severance make a cash payment to such Executive within thirty (30) days after the effective date of such termination of an amount equal to one year of Executive’s then base annual salary.

 

(b)                                 Executive’s employment hereunder may be terminated by Executive for Good Reason (as defined below) at any time during the two-year period immediately following a Change in Control.  For purposes of this Agreement, Executive’s voluntary termination of employment for Good Reason will be treated as a termination by the Company “without cause” if such termination of employment occurs following the existence of one or more of the following conditions arising without the consent of the Executive:

 

(i)                                     Any diminution in base annual salary;

 

(ii)                                  Any material diminution in the amount, time or form of any benefit provided to Executive;

 

(iii)                               Any material diminution in Executive’s authority, duties or responsibilities;

 

(iv)                              Any change in the geographic location at which Executive must perform the services to the Company.

 

(c)                                  Executive shall provide notice to the Company of the existence of the “Good Reason” condition within thirty (30) days after Executive becomes aware of the initial existence of such “Good Reason” condition, upon notice of which the Company shall have a period of thirty (30) days during which it may remedy such condition.

 

(d)                                 Nothing contained in this Agreement shall affect the terms of any employee stock options, stock grants or other equity-based compensation that may have been issued by the Company to Executive, which in the event of termination of Executive’s employment with the Company shall continue to be governed by their own terms and conditions; provided, however, that if Executive’s employment is terminated by the Company “without cause” during the two-year period immediately following a Change in Control, including Executive’s voluntary termination under Section 3(b), any and all stock options, stock grants or other equity-based compensation granted to Executive shall then immediately vest.

 

4.                                      Arbitration.

 

4.1                               If any dispute arises between the parties under or concerning the Plan or the terms hereof, the sole remedy shall be to submit such dispute to final and binding arbitration in

 

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accordance with the then existing National Rules for the Resolution of Employment Disputes of the American Arbitration Association.  The interpretation and enforcement of the arbitration provisions in the Plan will be governed exclusively by the Federal Arbitration Act (the “FAA”), 9 U.S.C. § 1 et seq., provided that they are enforceable under the FAA, and will otherwise be governed by the laws of the State of New Jersey.

 

4.2                               The Company will pay all arbitrator’s fees.

 

4.3                               Unless otherwise agreed by the Company and such Executive, arbitration will take place in Burlington County, New Jersey.  Any arbitration award will be accompanied by a written statement containing a summary of the issues in controversy, a description of the award, and an explanation of the reasons for the award.  The decision of the arbitrator will be made within thirty (30) days following the close of the hearing.  The parties agree that the award will be enforceable exclusively by any state or federal court of competent jurisdiction.

 

5.                                      Miscellaneous.

 

5.1                               Executives Included in Plan.  The Board of Directors of the Company may add Executives to the Plan at any time at its sole discretion, provided, however, than no Executive shall be removed from the Plan without the consent of such Executive; and no Executive shall continue to be included in the Plan following the termination of their employment with the Company prior to a Change in Control.

 

5.2                               Governing Law.  The Plan shall be governed by and construed and interpreted in accordance with the laws of the State of New Jersey.

 

5.3                               Attorneys’ Fees and Costs.  In the event of any dispute arising out of the subject matter of the Plan, the prevailing party shall recover, in addition to any other damages assessed, its attorneys’ fees, legal expenses and court costs incurred in litigating, arbitrating or otherwise attempting to enforce the terms of the Plan or resolve such dispute.

 

5.4                               Headings.  The section and other headings contained in the Plan are for reference purposes only and shall not in any way affect the meaning and interpretation of the Plan.

 

5.5                               Compliance with Code Section 409A.  To the extent the payments and benefits under the Plan are subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Plan shall be interpreted, construed and administered in a manner that satisfies the requirements of Code Sections 409A(a)(2), (3) and (4) and the Treasury Regulations thereunder (and any applicable transition relief under Code Section 409A).  If the Executive and the Company determine that any payments or benefits payable under the Plan do not comply with Code Section 409A, the Executive and the Company agree to amend the Plan, or take such other actions as the Executive and the Company deem reasonably necessary or appropriate, to comply with the requirements of Code Section 409A, the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the parties.  Subject to the preceding sentence, if any provision of the Plan would cause such payments or benefits to fail to so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision shall otherwise remain in full force and effect.  If the Executive is a

 

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Specified Employee, within the meaning of Code Section 409A, on the date of the Executive’s “separation from service,” as defined in Treasury Regulation Section 1.409A-l(h), any amounts payable on account of such separation from service that constitute “deferred compensation” within the meaning of Code Section 409A shall be paid no earlier than the earlier of the Executive’s death or six (6) months following such separation from service, but only to the extent necessary to avoid the imposition of additional taxes under Code Section 409A.

 

5.6                               Termination of Plan.  The Plan shall terminate and thereafter be of no further effect on the tenth anniversary of its adoption by the Board of Directors of the Company.  Other than as provided herein, the Plan cannot be terminated by the Board of Directors without the consent of all Executives covered hereunder.

 

Adopted by the Board of Directors of

Hill International, Inc. on January 27, 2015.

 

4

 

HILL INTERNATIONAL, INC.

2015 SENIOR EXECUTIVE RETENTION PLAN

 

EXHIBIT A

 

Raouf S. Ghali

Thomas J. Spearing III

Mohammed Al Rais

Frederic Z. Samelian

Renny Borhan

Frank J. Giunta

John Fanelli III

Ronald F. Emma

William H. Dengler, Jr.

Catherine H. Emma

 

5Exhibit 4.13

 

FORM
OF Amendment to WAIVER AND CONSENT OF, AND NOTICE TO, HOLDER

OF PREFERRED STOCK OF SKYLINE MEDICAL
INC. (this “Amendment”)

 

Dated
as of February ___, 2015

 

WHEREAS,
the undersigned and Skyline Medical Inc. (the “Company”) are parties to that certain Waiver and Consent of,
and Notice to, Holder of Preferred Stock of Skyline Medical Inc., dated July ___, 2014 (the “Consent”); and

 

WHEREAS,
the undersigned and the Company have agreed to amend the Consent as provided herein.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties
hereto amend the Consent as follows:

 

		1.	Effectiveness

 

This Amendment
shall become effective when all of the following conditions precedent have been satisfied:

 

a.          This Amendment
shall satisfy the requirements of Section 14.1 of the Agreement;

 

b.          The Company shall
have delivered to each Purchaser a certificate of the Secretary of the Company certifying the resolutions duly adopted by the board
of directors of the Company or a duly authorized committee thereof approving the transactions contemplated by this Amendment and
the issuance of the additional amount of the Additional Shares that may be issued by reason of the amendments in this Amendment,
and such resolutions shall be reasonably satisfactory in form, scope and substance to the Required Holders; and

 

c.          The Company shall
have paid the invoice specified in the first sentence of Section 5f.

 

		2.	Definitions

 

All capitalized
terms used in this Amendment and not otherwise defined or modified herein shall have the respective meanings set forth in the Consent
or the Agreement, as applicable.

 

		3.	Amendments to the Consent

 

The Consent
is hereby amended as follows:

 

a.   The
fourth bullet point under the second paragraph is hereby deleted in its entirety and replaced with the following:

 

    	 

    	 

    

 

		·	“an agreement by the undersigned that, (A) without the prior written consent of the underwriters,
it or its affiliates will not, directly or indirectly, for a period of 90 days from the closing of either (1) an underwritten public
offering of the Common Stock with gross offering proceeds of at least $6.0 million and the concurrent listing of the Common Stock
on a national securities exchange (a “NASDAQ Public Offering”) or (2) an underwritten public offering of Common
Stock with gross offering proceeds of at least $4.0 million (an “OTC Public Offering” and, together with a NASDAQ
Public Offering, the “Qualified Public Offerings” and each individually, a “Qualified Public Offering”),
(i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, any shares of capital stock of the Company
or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company or (ii) enter into
any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of
capital stock of the Company, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of
shares of capital stock of the Company or such other securities, in cash or otherwise, and (B) if requested by the underwriters
in such Qualified Public Offering, it will execute a standard lock-up agreement in the same form as executed by the Company’s
officers and directors, solely to reflect the lock-up provided for in clause (A) above, which agreement will become effective at
the closing of such Qualified Public Offering (clauses (A) and (B) together referred to herein as the “Purchaser Lock-Up”).”

 

b.   Section
(A) of the fourth paragraph is hereby deleted in its entirety and replaced with the following:

 

“(A) upon
the closing of a Qualified Public Offering, all outstanding shares of the Preferred Stock shall be automatically converted into
shares of Common Stock at the then applicable Conversion Price on the terms provided in this instrument and otherwise as if such
conversion were made by the Holders pursuant to the Certificate (such shares, the “Automatic Conversion Amount”),
and this Consent serves as the Company’s notice to the Holders of such conversion for all purposes; provided, however, that
to the extent that (i) the Qualified Public Offering closes within seven (7) months of the first closing of the Additional Financing
(“Qualified Public Offering Deadline”) and (ii) 70% of the public offering price per share of the Common Stock
in the Qualified Public Offering (the “QPO Discount Price”) is less than the Conversion Price floor contained
in Section 7(e)(i) of the Certificate (the “Conversion Price Floor”), the Company shall issue additional shares
of Common Stock (the “QPO True-Up Amount”) to the Holders pro rata such that the total number of shares of Common
Stock received by the Holders (consisting of the sum of the Automatic Conversion Amount and the QPO True-Up Amount) shall equal
the quotient of (i) the product of the Stated Value and the aggregate number of outstanding shares of Preferred Stock held by such
Holders and (ii) the QPO Discount Price.”

 

c.   The
fourth paragraph is hereby amended by adding the following at the end thereof:

 

    	-2-

    	 

    

 

“(H) When
the OTC Public Offering is consummated and at the time of each subsequent publicly or privately offered financing that the Company
consummates concurrent with or prior to the listing of the Common Stock on a national securities exchange, including, without limitation,
the NASDAQ Public Offering, in any such case in which (i) the Company issues or is deemed by Section 2 of the Warrants (as defined
herein) to have issued shares of Common Stock and (ii) the gross proceeds of such subsequent financing or financings, individually
or in the aggregate, since the closing of the OTC Public Offering are greater than or equal to $500,000 (each such offering or
financing, a “Warrant Adjustment Financing”), if at the time of consummation of any such Warrant Adjustment
Financing 125 percent of the weighted average price at which the Company has sold shares of Common Stock in such Warrant Adjustment
Financing (the “Warrant Adjustment Price”) is less than the “Exercise Price” (as defined in the
Warrants to Purchase Common Stock that have been issued pursuant to the Agreement or that may hereafter be issued pursuant to the
Agreement or this Consent (the “Warrants”)) as the Exercise Price would otherwise be in effect at the time of
such Warrant Adjustment Financing, then at the time of each such Warrant Adjustment Financing the Exercise Price of the Warrants
shall be reduced to the Warrant Adjustment Price. Once the Company meets the $500,000 individual or cumulative threshold for a
Warrant Adjustment Financing, each subsequent financing that meets the specification in the immediately preceding clause (i) of
this paragraph and that occurs concurrent with or prior to the listing of the Common Stock on a national securities exchange shall
be a Warrant Adjustment Financing. The price or prices at which the Company shall have sold or is deemed to have sold shares of
Common Stock in a Warrant Adjustment Financing shall be determined in accordance with Section 2 of the Warrants.”

 

d.   Section
(G) of the fourth paragraph is hereby amended by adding the following at the end thereof:

 

“(14) Certain
Convertible Securities. 

 

(a) The attached
Schedule 1 sets forth for the Convertible Notes issued in the Additional Financing the name of each holder, the outstanding
principal and accrued and unpaid interest as of January 23, 2015, the holders and the amounts of principal thereof and interest
thereon for those holders who have agreed in writing with the Company to convert their Convertible Notes into shares of Common
Stock at the time of closing of the Qualified Public Offering (the “Converting Noteholders”), and the names
of holders of Convertible Notes and the principal amounts thereof and repayment premium thereon the holders of which have not agreed
so to convert their Convertible Notes (the “Non-Converting Noteholders”). A holder that is converting a portion of
its Convertible Notes shall be considered a Converting Noteholder with respect to the portion of the Convertible Note being converted
and a Non-Converting Noteholder with respect to the remaining portion of such Convertible Note. 

 

(b) Each of the
Converting Noteholders has executed and delivered a written agreement with the Company to convert its Convertible Notes into shares
of Common Stock at the closing of the Qualified Public Offering, and such agreements are legal, valid and binding obligations of
the Company and to the Company’s knowledge, each such Converting Noteholder. The Company will not amend, waive or terminate
any such agreement and will not extend the time for performance thereof by any Converting Noteholder.

 

    	-3-

    	 

    

 

(c) At the time
of closing of the Qualified Public Offering, the Company will repay in full the portion of the Convertible Note held by each Non-Converting
Noteholder and will cancel all of the Convertible Notes.

 

(d) At the time
of closing of the Qualified Public Offering, after giving effect to the automatic conversion of the Preferred Stock and the conversion
or repayment, as the case may be, of the Convertible Notes, the Company will not have outstanding any shares of Preferred Stock
or indebtedness that is convertible into, exchangeable for, or otherwise would entitle the holder to acquire, shares of Common
Stock.

 

		4.	Representations and Warranties

 

The Company
represents and warrants to the undersigned that the statements contained in Section (G) of the Consent are true and correct as
of the date the Company executes this Amendment and will be true and correct as of the date this Amendment becomes effective by
its terms; provided, that for purposes of the statements in paragraph (7) of Section (G), the fees and commissions to the underwriters
in connection with the Qualified Public Offering shall not be considered to be “in connection with the transactions contemplated
by this Consent”. For purposes of the representations and warranties made by the Company under this Section 4, the term “Additional
Shares” shall include the additional amount of Additional Shares that may be issued by reason of the amendments in this Amendment.

 

		5.	Certain Covenants and Agreements

 

The Company
covenants and agrees with the Holders as follows:

a.          The
Company hereby confirms and agrees that on July 23, 2014 the Conversion Price of the Preferred Stock adjusted to $.13 per share
and the Exercise Price of the Warrants outstanding at that time adjusted to $.13 per share by reason of issuance of Convertible
Notes in the Additional Financing. Such prices adjusted to $9.75 per share following the 1-for-75 reverse stock split of the Common
Stock that became effective on October 24, 2014 (the “Reverse Stock Split”).

 

b.          With
reference to the Warrants that the Company issued on August 4, 2014 pursuant to Section 1 of the Agreement, the Company will correct
the numbers of shares of Common Stock that the Holders may purchase upon exercise of such Warrants as shown on the attached Schedule
1 and issue replacement certificates that reflect such correction and that reflect the Exercise Price of $.13 per share, as
adjusted to $9.75 per share by reason of the Reverse Stock Split.

 

c.          With
respect to the dividends on the Preferred Stock for the third and fourth quarters of 2014, which dividends the Company declared
payable in shares of Common Stock, the Company will correct the number of shares by issuing additional shares of Common Stock to
the Holders in the respective amounts shown on the attached Schedule 1, thereby giving effect to calculation of the dividend
share amounts based on Conversion Prices for the Preferred Stock of (1) $.13 per share for the third quarter dividend (with the
number of shares adjusted to reflect the subsequent Reverse Stock Split), and (2) $9.75 per share, rather than $19.50 per share,
for the fourth quarter dividend.

 

    	-4-

    	 

    

 

d.          If
by February 4, 2015 the Company has not installed or received firm purchase orders (accepted
by the Company) for at least 500 STREAMWAY Automated Surgical Fluid Disposal Systems and assuming that there has been no adjustment
to the Exercise Price or the number of shares underlying the Warrants since the Reverse Stock Split and that there has been no
exercise of the Warrants after the date of this Amendment and prior to February 4, 2015, then in accordance with Section 2(d) of
the Warrants on February 4, 2015 the number of shares of Common Stock issuable upon exercise of the Warrants issued at the closing
under the Agreement and the Warrants issued on August 4, 2014 (corrected as stated in Section 5b of this Amendment) will be as
shown on the attached Schedule 1. 

 

e.          Neither
the Company nor its transfer agent or registrar will impose any charge on the Holders for reissuance of new certificates for shares
of Common Stock or Warrants that Holders may request or that the Company may issue in respect of the corrections, changes and adjustments
referred to in the preceding paragraphs of this Section 5 or in respect of the Reverse Stock Split.

 

f.          Prior
to effectiveness of this Amendment, the Company shall pay Invoice No. 714-64.34 of Pusch & Gal, counsel for certain of the
Holders, including finance charges thereon. The Company will pay such invoice by wire transfer concurrently with the closing of
the Qualified Public Offering. The Company shall pay (1) Invoice No. 115-64.34 of such counsel, previously provided to the Company,
and (2) the additional reasonable fees and costs of counsel for such Holders relating to this Amendment and the actions contemplated
hereby, in each such case in the immediately preceding clauses (1) and (2), on the earlier of the date that is five business days
after the closing of the Qualified Public Offering or March 31, 2015 (including applicable finance charges).

 

		6.	Miscellaneous

 

a.   This Amendment
may be signed by the undersigned and the Company in counterparts.

 

b.   The Consent,
as expressly amended by and together with this Amendment, constitutes the entire understanding among the parties and supersedes
any and all previous understandings or agreements between the parties with respect to the subject matter hereof. From and after
the time this Amendment becomes effective, all references in the Consent to (1) the “Consent” shall be deemed to refer
to the Consent, as amended hereby and (2) the “Additional Shares” shall include the additional amount of shares of
Common Stock that may be issued by reason of the amendments in this Amendment. All terms and conditions of the Consent not expressly
amended herein remain in full force and effect as originally executed. For ease of administration of the Consent, a conformed copy
of the Consent, as amended by this Amendment, shall be attached hereto as Schedule 2; provided, however, that in the event
of any conflict between Schedule 2 and this Amendment, this Amendment shall control. All terms and conditions of the Transaction
Documents not expressly amended by the Consent or this Amendment remain in full force and effect as originally executed or filed
with the Secretary of State of the State of Delaware, as the case may be.

 

[Signature Page follows]

 

    	-5-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto,
by their officers thereunto duly authorized or in their individual capacity, as the case may be, have executed this Amendment under
seal as of the day and year first above written.

 

	 	THE COMPANY:
	 	 
	 	Skyline Medical Inc.
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

Accepted and Agreed:

 

	INDIVIDUAL STOCKHOLDERS	 	ENTITY STOCKHOLDERS
	 	 	 
	 	 	 
	 	 	Name of Entity
	 	 	 
	Signature (Individual)	 	By:	 	 
	 	 	 	Signature
	 	 	Its:	 	 
	
        Signature

        (all record holders should sign)
	 	 	Title
	 	 	 
	 	 	 
	Names(s) Typed or Printed	 	Signatory Name Typed or Printed
	 	 	 
	Dated:	 	Dated:
	 	 	 	 	 	 	 
	 	 	 	 	 	 

 

[Signature Page to Amendment to Waiver
and Consent of Preferred Stockholders]

 

    	 

    	 

    

 

Schedule 1

 

Certain Calculations, Adjustments and
Corrections

 

    	 

    	 

    

 

Schedule 2

 

Conformed Copy of Consent

 

[see attached]

 

    	 

    	 

    

 

Execution Version

Conformed to reflect Amendment

 

WAIVER AND CONSENT OF, AND NOTICE TO,
HOLDER

OF PREFERRED STOCK OF SKYLINE MEDICAL
INC. (this “Consent”)

 

Dated
as of July ___, 2014

 

Reference is made to that
certain (1) Certificate of Designation of Preferences, Rights and Limitations of Series A Senior Convertible Preferred Stock of
Skyline Medical Inc., a Delaware corporation (the “Company”), filed with the Delaware Secretary of State on
January 24, 2014 (the “Certificate”) and (2) Securities Purchase Agreement, dated as of February 4, 2014, by
and among the Company, the undersigned purchaser and the other purchasers (collectively, the “Purchasers”) named
on Schedule I thereto (the “Agreement”). All capitalized terms used but not defined herein shall have the respective
meanings set forth in the Certificate.

 

The Company has advised
the undersigned that the Company has executed a term sheet pursuant to which the Company intends to issue and sell (i) a note in
an original principal amount of $610,978 in a private placement transaction with 31 Group, LLC, comprised of, among others, Magna
Group, LLC and Aegis Capital Corp., for a purchase price of $500,000, (ii) one or more notes in an aggregate original principal
amount of up to $1,221,956 in a private placement transaction with certain affiliates of the Company and certain persons with whom
the Company has a pre-existing relationship, for an aggregate purchase price of up to $1,000,000 and (iii) one or more warrants
to purchase Common Stock in private placement transactions with 31 Group, LLC, certain affiliates of the Company and certain persons
with whom the Company has a pre-existing relationship (clauses (i), (ii) and (iii) collectively referred to herein as the “Additional
Financing”).  The Company has agreed to file a registration statement covering
the resale of the Common Stock issuable or issued and sold in connection with the Additional Financing (the “Additional
Securities”). Upon request, the Company will send the draft transaction documents for the Additional Financing to the
Purchasers. In order to facilitate the Additional Financing, the Company hereby requests the following from the undersigned:

 

		·	a waiver of the Company’s obligation under Section 6.12 of the Agreement to not enter into any
contract, transaction or arrangement or issue any security or instrument that provides for forward pricing of shares of Common
Stock (the “Forward Pricing Transaction Restriction”) with respect to the Additional Financing and, following
a Qualified Public Offering (as defined below), a waiver of the Forward Pricing Transaction Restriction for any subsequent offering
of securities by the Company;

 

		·	a consent to the inclusion of the registration of the Additional Securities on a registration statement
or registration statements of the Company to be filed under the Securities Act of 1933, as amended, pursuant to Section 10 of the
Agreement (the “Registration Statement”), covering the “Registrable Securities” as defined under
the Agreement (the “Purchasers Registrable Securities”);

 

    	 

    	 

    

 

		·	a consent to further extend the Filing Deadline and the Effectiveness Deadline pursuant to Section
10.1 of the Agreement such that the deadlines for the filing and effectiveness of the Registration Statement shall be the same
as the applicable deadlines for the Additional Financing; and

 

		·	an agreement by the undersigned that, (A) without the prior written consent of the underwriters,
it or its affiliates will not, directly or indirectly, for a period of 90 days from the closing of either (1) an underwritten public
offering of the Common Stock with gross offering proceeds of at least $6.0 million and the concurrent listing of the Common Stock
on a national securities exchange (a “NASDAQ Public Offering”) or (2) an underwritten public offering of Common
Stock with gross offering proceeds of at least $4.0 million (an “OTC Public Offering” and, together with a NASDAQ
Public Offering, the “Qualified Public Offerings” and each individually, a “Qualified Public Offering”),
(i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, any shares of capital stock of the Company
or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company or (ii) enter into
any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of
capital stock of the Company, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of
shares of capital stock of the Company or such other securities, in cash or otherwise, and (B) if requested by the underwriters
in such Qualified Public Offering, it will execute a standard lock-up agreement in the same form as executed by the Company’s
officers and directors, solely to reflect the lock-up provided for in clause (A) above, which agreement will become effective at
the closing of such Qualified Public Offering (clauses (A) and (B) together referred to herein as the “Purchaser Lock-Up”).

 

The undersigned hereby (i)
consents to waive the Forward Pricing Transaction Restriction with respect to the Additional Financing pursuant to Section 14.1
of the Agreement and waive it for all securities offerings subsequent to a Qualified Public Offering, (ii) consents to the registration
of the Additional Securities on the Registration Statement pursuant to Section 10.1 of the Agreement, (iii) consents to waive the
Filing Deadline and the Effectiveness Deadline pursuant to Section 10.1 of the Agreement, provided that the Registration Statement
covering the Purchasers Registrable Securities satisfies the applicable registration requirements relating to the Additional Financing
and (iv) agrees to comply with the Purchaser Lock-Up. 

 

    	-2-

    	 

    

 

In consideration for the waiver
and consents provided herein by the Purchasers:

 

(A) upon the closing of a Qualified Public Offering,
all outstanding shares of the Preferred Stock shall be automatically converted into shares of Common Stock at the then applicable
Conversion Price on the terms provided in this instrument and otherwise as if such conversion were made by the Holders pursuant
to the Certificate (such shares, the “Automatic Conversion Amount”), and this Consent serves as the Company’s
notice to the Holders of such conversion for all purposes; provided, however, that to the extent that (i) the Qualified Public
Offering closes within seven (7) months of the first closing of the Additional Financing (“Qualified Public Offering Deadline”)
and (ii) 70% of the public offering price per share of the Common Stock in the Qualified Public Offering (the “QPO Discount
Price”) is less than the Conversion Price floor contained in Section 7(e)(i) of the Certificate (the “Conversion
Price Floor”), the Company shall issue additional shares of Common Stock (the “QPO True-Up Amount”)
to the Holders pro rata such that the total number of shares of Common Stock received by the Holders (consisting of the sum of
the Automatic Conversion Amount and the QPO True-Up Amount) shall equal the quotient of (i) the product of the Stated Value and
the aggregate number of outstanding shares of Preferred Stock held by such Holders and (ii) the QPO Discount Price.

 

(B) if a Qualified
Public Offering is not consummated by the Qualified Public Offering Deadline, then upon a Holder’s conversion of its shares
of Preferred Stock, the Company shall issue to such holder such number of shares of Common Stock as calculated using the then applicable
Conversion Price pursuant to the Certificate (“Base Conversion Amount”); provided, however, that to the extent
that 70% of the volume weighted average price of the Common Stock on the principal Trading Market of the Common Stock during the
ten Trading Days immediately preceding the Qualified Public Offering Deadline (“Non-QPO Discount Price”) is
less than the Conversion Price Floor, then upon each conversion of shares of Preferred Stock by a Holder, the Company shall issue
additional shares of Common Stock (the “Non-QPO True-Up Amount”) to such Holder such that the total number of
shares of Common Stock received by such Holder (consisting of the sum of the Base Conversion Amount and the Non-QPO True-Up Amount)
shall equal the quotient of (i) the product of the Stated Value and the aggregate number of shares of Preferred Stock that such
Holder elected to convert and (ii) the Non-QPO Discount Price.

 

(C) Whenever the
Company shall be required to issue and deliver shares for the Automatic Conversion Amount, the QPO True-Up Amount, or the Non-QPO
True-Up Amount, the Company shall issue and deliver such shares in accordance with the requirements of Section 6 of the Certificate
as if such shares were being issued upon conversion of the Preferred Stock in accordance with the Certificate.

 

(D) The Purchasers
shall have the right to participate in the Additional Financing specified in clause (ii) of the definition of that term, pro rata
up to an aggregate of $500,000 based on their respective interests in the Preferred Stock.

 

(E) The Company
shall pay on demand the reasonable attorneys’ fees and expenses of the Purchasers relating to (1) this instrument, not to
exceed $7,500 in total, (2) the negotiation, preparation or execution of any amendment, modification or waiver of, or consent with
respect to, any of the Transaction Documents that is requested by the Company, and (3) upon receipt of notice from the Purchasers
to the Company, any default or breach of any of the Company’s obligations set forth in any of the Transaction Documents,
but only for so long as such default or breach is not cured; provided however, that the Purchasers shall provide to the Company
(x) an estimated budget of such reasonable fees and expenses and (y) monthly invoices of such reasonable fees and expenses incurred
pursuant to this paragraph (E).

 

    	-3-

    	 

    

 

(F) The term “Underlying
Shares” when used in the Transaction Documents shall include the shares of Common Stock issuable or issued to the Purchasers
pursuant to this Consent (the “Additional Shares”).

 

(G) Representations
and Warranties by the Company. The Company represents and warrants to the Purchasers that the statements contained in this Section
(G) are true and correct as of the date the Company executes this Consent and will be true and correct as of the date this Consent
becomes effective by its terms:

 

(1)Consents.
Neither the execution, delivery or performance of this Consent by the Company, nor the consummation by it of the obligations and
transactions contemplated hereby (including, without limitation, the issuance, the reservation for issuance and the delivery of
the Additional Shares and the provision to the Purchasers of the rights contemplated by this Consent and the Transaction Documents
with respect to the Additional Shares) requires any consent of, authorization by, exemption from, filing with or notice to any
Governmental Entity or any other Person, other than filings required under applicable U.S. federal and state securities laws.

 

(2)Authorization;
Enforcement. The Company has all requisite corporate power and has taken all necessary corporate action required for the due authorization,
execution, delivery and performance by the Company of this Consent and the consummation of the transactions contemplated hereby
(including, without limitation, the issuance, the reservation for issuance and the delivery of the Additional Shares and the provision
to the Purchasers of the rights contemplated by this Consent and the Transaction Documents with respect to the Additional Shares).
The execution, delivery and performance by the Company of this Consent and the consummation by the Company of the transactions
contemplated hereby (including, without limitation, the issuance of the Additional Shares and the provision to the Purchasers of
the rights contemplated by this Consent and the Transaction Documents with respect to the Additional Shares), have been duly authorized
by the Company’s board of directors or a duly authorized committee thereof and no further consent or authorization of the
Company, its board of directors or its stockholders is required. This Consent has been duly executed and delivered by the Company,
and this Consent constitutes a legal, valid and binding obligation of the Company enforceable against it in accordance with its
terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited
by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(3)Valid
Issuance of Additional Shares. The Additional Shares have been duly and validly authorized and, when issued upon conversion of
the related Preferred Shares in accordance with this Consent, the Additional Shares will be validly issued, fully paid and non-assessable,
and shall be free and clear of all Encumbrances, and will not be subject to preemptive rights or other similar rights of stockholders
of the Company.

 

    	-4-

    	 

    

 

(4)No Conflicts.
The execution, delivery and performance of this Consent and the consummation of the transactions contemplated hereby (including,
without limitation, the issuance, the reservation for issuance and the delivery of the Additional Shares and the provision to the
Purchaser of the rights contemplated by this Consent and the Transaction Documents with respect to the Additional Shares) will
not (a) result in a violation of the certificate of incorporation, as amended, the by-laws, as amended, or any equivalent organizational
document of the Company or any Subsidiary (the “Charter Documents”) or require the approval of the Company’s
stockholders, (b) violate, conflict with or result in the breach of the terms, conditions or provisions of or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give rise to any right of termination,
acceleration or cancellation under, any material agreement, lease, mortgage, license, indenture, instrument or other contract to
which the Company or any Subsidiary is a party, (c) result in a violation of any law, rule, regulation, order, judgment or decree
(including, without limitation, U.S. federal and state securities laws and regulations and regulations of any self-regulatory organizations
to which the Company or its securities are subject) applicable to the Company or any Subsidiary or by which any property or asset
of the Company or any Subsidiary is bound or affected, (d) result in a violation of or require stockholder approval under any rule
or regulation of the OTCQB, or (e) result in the creation of any Encumbrance upon any of the Company’s or any of its Subsidiary’s
assets.

 

(5)Right
of First Refusal; Stockholders Agreement; Voting and Registration Rights. Except with respect to options, warrants and convertible
securities disclosed in the SEC Reports or as provided in the Agreement or this Consent and for the options granted under the Company’s
stock option plans disclosed in the SEC Reports and for the Additional Financing, the Company does not have any outstanding options
to purchase, or any right of first refusal, right of first offer, right of co-sale, stockholder rights plan, preemptive right or
other right to subscribe for or to purchase any securities or obligations convertible into, or any contracts or commitments to
issue or sell, shares of its capital stock or any such options, rights, convertible securities or obligations, or any registration
right regarding the securities of the Company. There are no provisions of the Charter Documents, and no Material Contracts, other
than the Agreement and this Consent, that (a) may affect or restrict the voting rights of any Purchaser with respect to the Additional
Shares in its capacity as a stockholder of the Company, (b) restrict the ability of any Purchaser, or any successor thereto or
assignee or transferee thereof, to transfer the Additional Shares, or (c) would adversely affect the Company’s or any Purchaser’s
right or ability to consummate the transactions contemplated by this Consent or comply with the terms of this Consent and the transactions
contemplated hereby. There are no securities or instruments issued by or to which the Company is a party containing anti-dilution
or similar provisions that will be triggered by the issuance of the Additional Shares and there are no registration rights that
will be triggered by the issuance of the Additional Shares.

 

(6)No Integrated Offering.
Neither the Company, any Subsidiary, nor any of the Company’s or any Subsidiary’s Affiliates or any other Person acting
on the Company’s or any Subsidiary’s behalf, has directly or indirectly engaged in any form of general solicitation
or general advertising with respect to the Additional Shares, nor have any of such Persons made any offers or sales of any security
of the Company, any Subsidiary or any of the Company’s or any Subsidiary’s Affiliates or solicited any offers to buy
any security of the Company, any Subsidiary or any of the Company’s or any Subsidiary’s Affiliates under circumstances
that would require registration of the Additional Shares under the Securities Act or any other securities laws or cause this offering
of the Additional Shares to be integrated with any prior offering of securities of the Company or any Subsidiary for purposes of
the Securities Act in any manner that would affect the validity of the private placement exemption under the Securities Act for
the offer and sale of the Additional Shares hereunder.

 

    	-5-

    	 

    

 

(7)Brokers.
There is no investment banker, broker, finder, financial advisor or other Person that has been retained by or is authorized to
act on behalf of the Company or any Subsidiary who might be entitled to any fee or commission in connection with the transactions
contemplated by this Consent.

 

(8) Disclosure.
The Company understands and confirms that the Purchasers will rely on the foregoing representations in effecting transactions in
securities of the Company. No representation or warranty by the Company contained in this Consent contains any untrue statement
of a material fact or omits to state any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The Company confirms that neither it nor any of its officers or directors
nor any other Person acting on its or their behalf has provided, and it has not authorized any other Person to provide, any Purchaser
or its respective agents or counsel with any information that it believes constitutes material non-public information except insofar
as the existence, provisions and terms of this Consent and the proposed transactions hereunder may constitute such information,
all of which will be disclosed by the Company in a press release or SEC filing on Form 8-K.

 

(9)Application
of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company’s Charter Documents or any stockholder rights plan of the Company or the
laws of its state of incorporation (including Section 203 of the Delaware General Corporation Law) that is or could become applicable
to each Purchaser as a result of such Purchaser and the Company fulfilling their obligations or exercising their rights under this
Consent, including, without limitation, as a result of the Company’s issuance of the Additional Shares and any Purchaser’s
ownership of the Additional Shares.

 

(10) Private
Placement. Neither the Company nor its Subsidiaries or any affiliates, nor any person acting on its or their behalf, has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under any circumstances that
would require registration of the Additional Shares under the Securities Act. The issuance of the Additional Shares is exempt from
registration under the Securities Act.

 

(11)Acknowledgment
Regarding Purchasers’ Registration of Additional Shares. The Company acknowledges and agrees that each of the Purchasers
is acting solely in the capacity of an arm’s length party with respect to this Consent and the transactions contemplated
hereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity with respect to the Company) with respect to this Consent and the transactions contemplated hereby and any
advice given by any Purchaser or any of their respective representatives or agents to the Company in connection with this Consent
and the transactions contemplated hereby is merely incidental to such Purchaser’s negotiating and executing this Consent.
The Company further represents to each Purchaser that the Company’s decision to enter into this Consent has been based on
the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    	-6-

    	 

    

 

(12)No Registration
Rights. No person has the right to (i) prohibit the Company from filing a Registration Statement or (ii) require the Company to
register any securities for sale under the Securities Act by reason of the filing of a Registration Statement except in the case
of clause (ii) for rights which have been disclosed in the SEC Reports, rights which have been properly waived and rights that
the Company may grant to investors in the Additional Financing. The granting and performance of the registration rights under the
Agreement that are applicable to the Additional Shares will not violate or conflict with, or result in a breach of any provision
of, or constitute a default under, any agreement, indenture, or instrument to which the Company is a party.

 

(13)No Additional Agreements. The Company has
no other agreements or understandings (including, without limitation, side letters) with any Purchaser to purchase or otherwise
acquire shares of Common Stock on terms other than as set forth herein and in the Transaction Documents.

 

(14)Certain
Convertible Securities. 

 

(a) The attached
Schedule 1 sets forth for the Convertible Notes issued in the Additional Financing the name of each holder, the outstanding
principal and accrued and unpaid interest as of January 23, 2015, the holders and the amounts of principal thereof and interest
thereon for those holders who have agreed in writing with the Company to convert their Convertible Notes into shares of Common
Stock at the time of closing of the Qualified Public Offering (the “Converting Noteholders”), and the names
of holders of Convertible Notes and the principal amounts thereof and repayment premium thereon the holders of which have not agreed
so to convert their Convertible Notes (the “Non-Converting Noteholders”). A holder that is converting a portion of
its Convertible Notes shall be considered a Converting Noteholder with respect to the portion of the Convertible Note being converted
and a Non-Converting Noteholder with respect to the remaining portion of such Convertible Note. 

 

(b) Each of the
Converting Noteholders has executed and delivered a written agreement with the Company to convert its Convertible Notes into shares
of Common Stock at the closing of the Qualified Public Offering, and such agreements are legal, valid and binding obligations of
the Company and to the Company’s knowledge, each such Converting Noteholder. The Company will not amend, waive or terminate
any such agreement and will not extend the time for performance thereof by any Converting Noteholder.

 

(c) At the time
of closing of the Qualified Public Offering, the Company will repay in full the portion of the Convertible Note held by each Non-Converting
Noteholder and will cancel all of the Convertible Notes.

 

(d) At the time of closing of the Qualified Public
Offering, after giving effect to the automatic conversion of the Preferred Stock and the conversion or repayment, as the case may
be, of the Convertible Notes, the Company will not have outstanding any shares of Preferred Stock or indebtedness that is convertible
into, exchangeable for, or otherwise would entitle the holder to acquire, shares of Common Stock.

 

    	-7-

    	 

    

 

(H)When the OTC Public Offering is consummated
and at the time of each subsequent publicly or privately offered financing that the Company consummates concurrent with or prior
to the listing of the Common Stock on a national securities exchange, including, without limitation, the NASDAQ Public Offering,
in any such case in which (i) the Company issues or is deemed by Section 2 of the Warrants (as defined herein) to have issued shares
of Common Stock and (ii) the gross proceeds of such subsequent financing or financings, individually or in the aggregate, since
the closing of the OTC Public Offering are greater than or equal to $500,000 (each such offering or financing, a “Warrant
Adjustment Financing”), if at the time of consummation of any such Warrant Adjustment Financing 125 percent of
the weighted average price at which the Company has sold shares of Common Stock in such Warrant Adjustment Financing (the “Warrant
Adjustment Price”) is less than the “Exercise Price” (as defined in the Warrants to Purchase Common Stock
that have been issued pursuant to the Agreement or that may hereafter be issued pursuant to the Agreement or this Consent (the
“Warrants”)) as the Exercise Price would otherwise be in effect at the time of such Warrant Adjustment Financing,
then at the time of each such Warrant Adjustment Financing the Exercise Price of the Warrants shall be reduced to the Warrant Adjustment
Price. Once the Company meets the $500,000 individual or cumulative threshold for a Warrant Adjustment Financing, each subsequent
financing that meets the specification in the immediately preceding clause (i) of this paragraph and that occurs concurrent with
or prior to the listing of the Common Stock on a national securities exchange shall be a Warrant Adjustment Financing. The price
or prices at which the Company shall have sold or is deemed to have sold shares of Common Stock in a Warrant Adjustment Financing
shall be determined in accordance with Section 2 of the Warrants.

 

This Consent shall serve as the Company’s
notice to the Holders of the adjustment to the Conversion Price in connection with the Additional Financing for purposes of Section
7(g)(i) of the Certificate. The Conversion Price shall be adjusted to equal the conversion price set forth in the definitive documentation
for the Additional Financing.

 

This Consent shall become effective:

 

1. only in accordance with Section 14.1
of the Agreement and then only upon the first closing of the Additional Financing; and

 

2. when the Company shall have delivered
to each Purchaser a certificate of the Secretary of the Company certifying the resolutions duly adopted by the board of directors
of the Company or a duly authorized committee thereof approving the transactions contemplated by this Consent and the issuance
of the Additional Shares, and such resolutions shall be reasonably satisfactory in form, scope and substance to the Required Holders.

 

From and after the effective day of this
Consent, each reference in the Transaction Documents to the Agreement shall be deemed a reference to the Agreement as modified
by the consent of the Purchasers relating to the Agreement and given in May 2014 and by this Consent.

 

    	-8-

    	 

    

 

This Consent may be signed by the Purchasers
and the Company in counterparts. Except as expressly modified hereby, the Agreement and the Certificate remain in full force and
effect in accordance with their terms, and the other Transaction Documents remain in full force and effect.

 

[Signature Page follows]

 

    	-9-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto,
by their officers thereunto duly authorized or in their individual capacity, as the case may be, have executed this Consent under
seal as of the day and year first above written.

 

	 	THE COMPANY:
	 	 
	 	Skyline Medical Inc.
	 	 	 
	 	By:	[Previously Executed]
	 	Name:
	 	Title:

 

Accepted and Agreed:

 

	INDIVIDUAL STOCKHOLDERS	 	ENTITY STOCKHOLDERS
	 	 	

	 	 	 
	 	 	Name of Entity
	
        [Previously Executed]
	 	 
	Signature (Individual)	 	By:	
        [Previously
        Executed]

	 	 	 	Signature
	
        [Previously
        Executed]
	 	Its:	
         

	
        Signature

        (all record holders should sign)
	 	 	Title
	 	 	 
	
         
	 	
         

	Names(s) Typed or Printed	 	Signatory Name Typed or Printed
	 	 	 
	Dated: 	 	Dated:

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