Document:

ipix_ex101.htm

EXHIBIT 10.1
  
 SECURITIES PURCHASE AGREEMENT
  
 This Securities Purchase Agreement (this “Agreement”) is dated as of December 9, 2020, between Innovation Pharmaceuticals Inc., a Nevada corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”). The Company agrees that in this case, there will be only one Purchaser.
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement on Form S-3 filed under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, registered securities of the Company as more fully described in this Agreement.
  
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:
  
 ARTICLE I.
 DEFINITIONS
  
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Certificate of Designation (as defined herein), and (b) the following terms have the meanings set forth in this Section 1.1:
  
 “Acquiring Person” shall have the meaning ascribed to such term in Section 4.8.
  
 “Action” shall have the meaning ascribed to such term in Section 3.1(j).
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. 
  
 “Aspire Purchase Agreement” means the Common Stock Purchase Agreement, dated July 31, 2020, between the Company and Aspire Capital Fund, LLC.
  
 “Board of Directors” means the board of directors of the Company.
  
 “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
  
 “Certificate of Designation” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary of State of Nevada, in the form of Exhibit A attached hereto. 
   
 	 
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 “First Closing” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the initial Subscription Amount and (ii) the Company’s obligations to deliver the Securities purchased at the Closing, in each case, have been satisfied or waived, but in no event later than the second (2nd) Trading Day following the date hereof.
  
 “Closing Date” means the First Closing Date and the Second Closing Date, as applicable.
  
 “Closing Shares” means the 3,053 shares of Preferred Stock issuable to the Purchasers at the First Closing and the 2,036 shares of Preferred Stock issuable to the Purchasers at the Second Closing.
  
 “Closing Statement” means the Closing Statement in the form on Annex A attached hereto.
  
 “Commission” means the United States Securities and Exchange Commission.
  
 “Common Stock” means the Class A common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.
  
 “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 “Conversion Price” shall have the meaning ascribed to such term in the Certificate of Designation.
  
 “Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock or the issuance of shares of Common Stock in form of dividends on the Preferred Stock in accordance with the terms of the Certificate of Designation.
  
 “Disclosure Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.
  
 “Evaluation Date” shall have the meaning ascribed to such term in Section 3.1(s). 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
   
 	 
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 “Exempt Issuance” means the issuance of (a) shares of Common Stock, restricted stock units or options to employees, consultants, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, provided that any issuances to consultants under this clause (a) shall not exceed 1,000,000 shares (adjusted for reverse and forward stock splits, recapitalizations and similar transactions) in any 6 month period, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection therewith during the prohibition period in Section 4.14(a) herein, and, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, and (d) for purposes of Section 4.13 herein only, shares of Common Stock pursuant to the Aspire Purchase Agreement.
  
 “FCPA” means the Foreign Corrupt Practices Act of 1977, as amended.
  
 “FDA” shall have the meaning ascribed to such term in Section 3.1(jj).
  
 “FDCA” shall have the meaning ascribed to such term in Section 3.1(jj).
  
 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h).
  
 “Indebtedness” shall have the meaning ascribed to such term in Section 3.1(bb).
  
 “Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).
  
 “Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction. 
  
 “Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).
  
 “Material Permits” shall have the meaning ascribed to such term in Section 3.1(n).
   
 	 
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 “Maximum Rate” shall have the meaning ascribed to such term in Section 5.17.
  
 “NMRS” means Nelson Mullins Riley & Scarborough LLP, with offices located at 4140 Parklake Avenue, 2nd Floor, Raleigh, NC 27612.
  
 “Participation Maximum” shall have the meaning ascribed to such term in Section 4.13(a). 
  
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
  
 “Pharmaceutical Product” shall have the meaning ascribed to such term in Section 3.1(jj).
  
 “Preferred Stock” means the Company’s Series B-2 5% Convertible Preferred Stock issued hereunder having the rights, preferences and privileges set forth in the Certificate of Designation. 
  
 “Pre-Notice” shall have the meaning ascribed to such term in Section 4.13(b). 
  
 “Pro Rata Portion” shall have the meaning ascribed to such term in Section 4.13(e).
  
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.
  
 “Prospectus” means the final prospectus filed for the Registration Statement.
  
 “Prospectus Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered by the Company to each Purchaser at the Closing.
  
 “Purchaser Party” shall have the meaning ascribed to such term in Section 4.11.
  
 “Registration Statement” means the effective registration statement with the Commission File No. 333-239817 which registers the sale of the Preferred Stock, Warrants, the Warrant Shares and the Conversion Shares to the Purchasers.
  
 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e).
   
 	 
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 “Required Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then potentially issuable in the future pursuant to the Transaction Documents, including any Conversion Shares issued or issuable upon conversion in full of all shares of Preferred Stock (including all shares of Preferred Stock issuable upon exercise of the Warrants and issuable as dividends on the Preferred Stock), ignoring any conversion or exercise limits set forth in the Certificate of Designation and the Warrants, and assuming that the Conversion Price is at all times on and after the date of determination 85% of the VWAP on the Trading Day immediately prior to the date of determination and any previously unconverted shares of Preferred Stock are held until the three (3) year anniversary of the date of issuance of such shares of Preferred Stock.
  
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
  
 “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
  
 “Second Closing Date” means the date on which sixty (60) Trading Days have elapsed from the First Closing Date,
  
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h).
  
 “Securities” means the Preferred Stock, the Warrants, the Warrant Shares and the Conversion Shares.
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Series 1 Warrants” means, collectively, the Preferred Stock purchase warrants delivered to the Purchasers at each Closing, which Series 1 Warrants shall be exercisable immediately and have a term of exercise equal to eighteen (18) months, in the form of Exhibit B attached hereto.
  
 “Series 2 Warrants” means, collectively, the Preferred Stock purchase warrants delivered to the Purchasers at each Closing, which Series 2 Warrants shall be exercisable immediately and have a term of exercise equal to twenty four (24) months, in the form of Exhibit B attached hereto.
  
 “Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or borrowing shares of Common Stock). 
  
 “Stated Value” means $1,080 per share of Preferred Stock.
  
 “Subscription Amount” means $5,000,000.
   
 	 
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 “Subsequent Financing” shall have the meaning ascribed to such term in Section 4.13(a).
  
 “Subsequent Financing Notice” shall have the meaning ascribed to such term in Section 4.13(b). 
  
 “Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.
  
 “Trading Day” means a day on which the principal Trading Market is open for trading.
  
 “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).
  
 “Transaction Documents” means this Agreement, the Certificate of Designation, the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.
  
 “Transfer Agent” means West Coast Stock Transfer, Inc., the current transfer agent of the Company, with a mailing address of 721 N. Vulcan Avenue, Ste. 205, Encinitas, California 92024 and a facsimile number of (760) 452-4423, and any successor transfer agent of the Company.
  
 “Triggering Event” shall have the meaning ascribed to such term in the Certificate of Designation.
  
 “Variable Rate Transaction” shall have the meaning ascribed to such term in Section 4.14(b).
  
 “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
  
 	 
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 “Warrants” means, collectively, the Series 1 Warrants and the Series 2 Warrants.
  
 “Warrant Shares” means the shares of Preferred Stock issuable upon exercise of the Warrants.
  
 ARTICLE II.
 PURCHASE AND SALE
  
 2.1 Closing. 
  
 (a) On the First Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, an aggregate of 3,053 shares of Preferred Stock, 3,053 Series 1 Warrants and 3,053 Series 2 Warrants for a total purchase price of $3,000,000 (each share being purchased for $982.50). Each Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available funds equal to its Subscription Amount as set forth on the signature page hereto executed by such Purchaser, and the Company shall deliver to each Purchaser its respective First Closing Shares and Warrants, as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of NMRS or such other location as the parties shall mutually agree. The Company covenants that, if the Purchaser delivers a Notice of Conversion (as defined in the Certificate of Designation) to convert any Closing Shares between the date hereof and 12:00 p.m. (New York City time) on the First Closing Date, the Company shall deliver Conversion Shares subject to such Notice(s) of Conversion to the Purchaser by 4:00 p.m. (New York City time) on the First Closing Date.
  
 (b) On the Second Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, an aggregate of 2,036 shares of Preferred Stock, 2,036 Series 1 Warrants and 2,036 Series 2 Warrants for a total purchase price of $2,000,000 (each share being purchased for $982.50). Each Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available funds equal to its Subscription Amount as set forth on the signature page hereto executed by such Purchaser, and the Company shall deliver to each Purchaser its respective Second Closing Shares and Warrants, as determined pursuant to Section 2.2(d), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of NMRS or such other location as the parties shall mutually agree. The Company covenants that, if the Purchaser delivers a Notice of Conversion (as defined in the Certificate of Designation) to convert any Closing Shares between the date hereof and 12:00 p.m. (New York City time) on the Second Closing Date, the Company shall deliver Conversion Shares subject to such Notice(s) of Conversion to the Purchaser by 4:00 p.m. (New York City time) on the Second Closing Date.
  
 	 
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 2.2 Deliveries.
  
 (a) On or prior to First Closing Date (except as otherwise indicated), the Company shall deliver or cause to be delivered to each Purchaser the following:
  
 (i) this Agreement duly executed by the Company;
  
 (ii) a legal opinion of the Company’s counsel, in form and substance reasonably satisfactory to the Purchasers; 
  
 (iii) a certificate evidencing the 3,053 Closing Shares, registered in the Purchaser;
  
 (iv) evidence of the filing and acceptance of the Certificate of Designation from the Secretary of State of Nevada that is reasonably satisfactory to the Purchasers;
  
 (v) a Series 1 Warrant registered in the name of such Purchaser to purchase up to 3,053 shares of Preferred Stock, with an exercise price equal to $982.50, subject to adjustment therein;
  
 (vi) a Series 2 Warrant registered in the name of such Purchaser to purchase up to 3,053 shares of Preferred Stock, with an exercise price equal to $982.50, subject to adjustment therein;
  
 (vii) the Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;
  
 (viii) the Company’s standby authorization letter to the Transfer Agent in the form of Exhibit C attached hereto; and
  
 (ix) the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act)..
  
 (b) On or prior to the First Closing Date (except as otherwise indicated), each Purchaser shall deliver or cause to be delivered to the Company the following: 
  
 (i) this Agreement duly executed by such Purchaser; and
  
 (ii) such Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.
  
 	 
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 (c) On or prior to Second Closing Date (except as otherwise indicated), the Company shall deliver or cause to be delivered to each Purchaser the following:
  
 (i) this Agreement duly executed by the Company;
  
 (ii) a legal opinion of the Company’s counsel, in form and substance reasonably satisfactory to the Purchasers; 
  
 (iii) a certificate evidencing the 2,036 Closing Shares, registered in the Purchaser;
  
 (iv) a Series 1 Warrant registered in the name of such Purchaser to purchase up to a number of shares of Preferred Stock equal to 2,036 shares of Preferred Stock, with an exercise price equal to $982.50, subject to adjustment therein;
  
 (v) a Series 2 Warrant registered in the name of such Purchaser to purchase up to 3,053 shares of Preferred Stock, with an exercise price equal to $982.50, subject to adjustment therein;
  
 (vi) the Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;
  
 (vii) the Company’s standby authorization letter to the Transfer Agent in the form of Exhibit C attached hereto; and
  
 (d) On or prior to the Second Closing Date (except as otherwise indicated), each Purchaser shall deliver or cause to be delivered to the Company the following: 
  
 (i) this Agreement duly executed by such Purchaser; and
  
 (ii) such Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.
  
 2.3 Closing Conditions. 
  
 (a) The obligations of the Company hereunder in connection with each Closing are subject to the following conditions being met:
  
 (i) the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) on the applicable Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);
  
 (ii) all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the applicable Closing Date shall have been performed; and
  
 	 
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 (iii) the delivery by each Purchaser of the items set forth in Section 2.2 of this Agreement.
  
 (b) The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:
  
 (i) the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the applicable Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);
  
 (ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall have been performed; 
  
 (iii) the delivery by the Company of the items set forth in Section 2.2 of this Agreement; 
  
 (iv) the Company shall have suspended sales under the Aspire Purchase Agreement and shall have delivered evidence thereof that is satisfactory to the Purchasers in their sole discretion;
  
 (v) there is no breach of any obligations, covenants or agreements under the Transaction Documents and no existing event which, with the passage of time or the giving of notice, would constitute a breach under the Transaction Documents;
  
 (vi) there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and
  
 (vii) from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal Trading Market, and, at any time prior to the Closing, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.
  
 	 
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 (c) The respective obligations of the Purchasers hereunder in connection with the Second Closing are subject to the following conditions (the “Equity Conditions”) being met:
  
 	  
	 1. 
	Minimum trading price of the stock for each of the past 10 trading days prior to the 2nd Closing date shall be greater than $0.07 and
	  
	  
	  

	  
	 2. 
	Minimum daily dollar volume of the stock for each of the past 10 trading days prior to the 2nd Closing date shall be greater than $50,000.

  
 In the event the Equity Conditions are not met, a Purchaser may waive such conditions in its discretion, and the Purchaser and the Company shall conduct the Second Closing as scheduled.
  
 ARTICLE III.
 REPRESENTATIONS AND WARRANTIES
  
 3.1 Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser as of the date hereof and as of each Closing:
  
 (a) Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.
  
 (b) Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
  
 	 
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 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.
  
 (d) No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected, except, in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.
  
 	 
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 (e) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.7 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Securities and the listing or quotation of the Conversion Shares for trading thereon in the time and manner required thereby and (iv) such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).
  
 (f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than the restrictions on transfer provided for in the Transaction Documents. The Warrant Shares and the Conversion Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Conversion Shares at least equal to the Required Minimum on the date hereof. The Company has reserved from its duly authorized capital stock a number of shares of Preferred Stock for the issuance of all of the Warrant Shares and the issuance of all shares of Preferred Stock issuable as dividends under the Certificate of Designation assuming for purposes hereof that the Preferred Stock shall remain outstanding for three years. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on July 17, 2020 (the “Effective Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of this Agreement. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and regulations of the Commission, shall file the Prospectus with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company was at the time of the filing of the Registration Statement eligible to use Form S-3. The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction requirements as set forth in General Instruction I.B.1 of Form S-3.
  
 	 
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 (g) Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g). The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to (i) the exercise of employee stock options under the Company’s equity incentive plans, and the issuance of shares of Common Stock to employees pursuant to the Company’s equity incentive plans, and (ii) the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities or as set forth on Schedule 3.1(g), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. Except as set forth on Schedule 3.1(g), the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.
  
 	 
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 (h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.
  
 (i) Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as set forth on Schedule 3.1(i): (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting other than to adopt new or revised accounting standards, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, other than purchases and redemptions of shares of Common Stock held by employees, officers or directors of the Company in connection with the satisfaction of the exercise price of compensatory awards or the satisfaction of tax withholding obligations, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.
  
 	 
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 (j) Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Other than as set forth on Schedule 3.1(j), neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 
  
 (k) Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
  
 	 
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 (l) Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.
  
 (m) Environmental Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.
  
 (n) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.
  
 (o) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.
  
 	 
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 (p) Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement, other than such expiration, termination or abandonment as has been approved by the Board of Directors. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
  
 (q) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage in such amount as is customary for companies in the same type of business as is conducted by the Company. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.
  
 (r) Transactions With Affiliates and Employees. Except as set forth on Schedule 3.1(r), none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option or restricted stock agreements under any equity incentive plan of the Company.
  
 	 
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 (s) Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.
  
 (t) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents. 
  
 (u) [RESERVED]
  
 (v) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.
  
 	 
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 (w) Registration Rights. Except as set forth on Schedule 3.1(w), and other than pursuant to this Agreement, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.
  
 (x) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.
  
 (y) Application of Takeover Protections. The Company and the 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 certificate or articles of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.
  
 (z) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither the Company nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.
  
 	 
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 (aa) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, neither the Company, nor any of its 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 circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated. 
  
 (bb) Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature, taking into account the timing and amounts of cash to be payable on or in respect of its debt. The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(bb) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.
  
 	 
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 (cc) Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.
  
 (dd) [RESERVED]
  
 (ee) Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of FCPA.
  
 (ff) Accountants. The Company’s accounting firm is set forth on Schedule 3.1(ff) of the Disclosure Schedules. To the knowledge and belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2021.
  
 (gg) Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. 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 Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.
  
 	 
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 (hh) Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.16 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, may presently have a “short” position in the Common Stock and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Conversion Shares and Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.
  
 (ii) Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.
  
 	 
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 (jj) FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company.
  
 (kk) Stock Option Plans. Each stock option granted by the Company under the Company’s equity incentive plans was granted (i) in accordance with the terms of the Company’s equity incentive plans and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s equity incentive plans has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects. 
  
 (ll) Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).
  
 (mm) U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.
  
 	 
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 (nn) Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.
  
 (oo) Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.
  
 3.2 Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):
  
 (a) Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.
  
 	 
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 (b) Understandings or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.
  
 (c) Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and it expects to be on each date on which it exercises any Warrants or converts any shares of Preferred Stock, an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.
  
 (d) Experience of Purchaser. Each Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.
  
 (e) Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates that were required to be informed in connection with Purchaser’s review of the Transaction Documents, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order to effect Short Sales or similar transactions in the future.
  
 The Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.
  
 	 
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 ARTICLE IV.
 OTHER AGREEMENTS OF THE PARTIES
  
 4.1 Underlying Shares. The shares of Preferred Stock (including, without limitation, any shares of Preferred Stock issued as dividends on the Preferred Stock pursuant to the terms of the Certificate of Designation) and the shares of Common Stock issuable upon conversion of the shares of Preferred Stock shall be issued free of legends. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale of the Warrant Shares, the Warrant Shares issued pursuant to any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or is not otherwise available for the sale or resale of the Warrant Shares (a “Registration Statement Availability Failure”), the Company shall immediately notify the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify such holders when the registration statement is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in compliance with applicable federal and state securities laws). The Company shall use best efforts to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares effective during the term of the Warrants.
  
 4.2 [RESERVED]
  
 4.3 Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Conversion Shares and Warrant Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.
  
 4.4 Furnishing of Information; Public Information. Until the earliest of the time that (i) no Purchaser owns any Securities or (ii) the Warrants have expired, the Company covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.
  
 	 
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 4.5 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 
  
 4.6 Conversion and Exercise Procedures. Each of the form of Notice of Exercise included in the Warrants and the form of Notice of Conversion included in the Certificate of Designation set forth the totality of the procedures required of the Purchasers in order to exercise the Warrants or convert the Preferred Stock. Without limiting the preceding sentences, no ink-original Notice of Exercise or Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise or Notice of Conversion form be required in order to exercise the Warrants or convert the Preferred Stock. No additional legal opinion, other information or instructions shall be required of the Purchasers to exercise their Warrants or convert their Preferred Stock. The Company shall honor exercises of the Warrants and conversions of the Preferred Stock and shall deliver Conversion Shares and Warrant Shares, respectively, in accordance with the terms, conditions and time periods set forth in the Transaction Documents.
  
 4.7 Securities Laws Disclosure; Publicity. The Company shall by 9:30 a.m. (New York City time) on the Trading Day immediately following execution by the Company and Purchasers of this Agreement, file a Current Report on Form 8-K with the Commission disclosing the material terms of the transactions contemplated hereby, including the Transaction Documents as exhibits thereto (“Signing Form 8-K”). From and after the filing of the Signing Form 8-K, the Company represents to the Purchasers that the Company shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the Signing Form 8-K, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing any press release with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except: (a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).
  
 	 
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 4.8 Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.
  
 4.9 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall be disclosed pursuant to Section 4.7, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
  
 4.10 Use of Proceeds. Except as set forth on Schedule 4.10 attached hereto, the Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes, including, but not limited to, research and development activities, and shall not use such proceeds: (a) for the redemption of any Common Stock or Common Stock Equivalents (other than purchases and redemptions of shares of Common Stock held by employees, officers or directors of the Company in connection with the satisfaction of the exercise price of compensatory awards or the satisfaction of tax withholding obligations) or (b) in violation of FCPA or OFAC regulations.
  
 	 
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 4.11 Indemnification of Purchasers. Subject to the provisions of this Section 4.11, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands or causes of action and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action, suit, proceeding (including any investigation, litigation or inquiry), demand or cause of action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is finally judicially determined to constitute fraud, gross negligence or willful misconduct), provided that no Purchaser Party shall be entitled to recover special or punitive damages under this Section 4.11. If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.The indemnification required by this Section 4.11 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.
  
 	 
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 4.12 Reservation and Listing of Securities.
  
 (a) The Company shall maintain a reserve from its duly authorized shares of Common Stock and its duly authorized shares of Preferred Stock for issuance pursuant to the Transaction Documents in such amounts as may then be required to fulfill its obligations in full under the Transaction Documents. Upon request by a Purchaser, the Company shall deliver, or cause the Transfer Agent to deliver, to each Purchaser a statement of number of shares of Common Stock and shares of Preferred Stock that are currently reserved for issuance pursuant to the Transaction Documents. On the Closing Date, the Company shall authorize the Transfer Agent that, at any time while any Preferred Stock or Warrants remain outstanding, upon delivery by a Purchaser to the Transfer Agent of a notice to increase the number of shares of Common Stock and/or Preferred Stock that are reserved for issuance pursuant to the Transaction Documents, the Transfer Agent shall promptly increase the reserved amount of shares of Common Stock and/or Preferred Stock and provide confirmation in writing thereof to the Purchaser.
  
 (b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum on such date, the Company shall use commercially reasonable best efforts to hold a special meeting of shareholders (which may also be at the annual meeting of shareholders) or take action by written consent of shareholders at the earliest practicable date to obtain shareholder approval to amend the Company’s articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum. The Company shall use its commercially best efforts to obtain such shareholder approval to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at the earliest possible date, but in no event later than 75 days following the date of on which number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum. If, at any time, the Company fails to or is unable to deliver shares of Common Stock upon conversion of the Preferred Stock (including upon conversion of the shares of Preferred Stock issuable upon exercise of the Warrants) on account of the unavailability of authorized but unissued (and otherwise unreserved) shares of Common Stock (an “Authorized Share Failure”), the Company shall pay to each Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of the reduction of such Purchaser’s ability to convert the Preferred Stock, an amount in cash equal to 2% of such Purchaser’s aggregate Subscription Amount on the date of the Authorized Share Failure and on each thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the Authorized Share Failure is cured by the availability of a number of shares of Common Stock that are authorized and unreserved that equals to at least 150% of the Required Minimum and evidence thereof is provided to the Purchasers and is reasonably satisfactory to the Purchasers. Such liquidated damages shall be paid on the earlier of (i) the last day of the calendar month during which such liquidated damages are incurred and (ii) the third (3rd) Business Day after the Authorized Share Failure is cured. In the event that the Company fails to make the payment of liquidated damages in a timely manner, such accrued liquidated damages shall bear interest at the rate of 1.5% per month (pro-rated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages for Authorized Share Failure and such Purchaser shall have the right to pursue all remedies available to it at low or in equity.
  
 	 
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 (c) To the extent applicable, the Company shall (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum on such date on such Trading Market or another Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.
  
 (d) Upon request by a Purchaser, the Company shall file a Current Report on Form 8-K with the Commission that discloses the number of issued and outstanding shares of Common Stock as of the date thereof (the “Outstanding Shares Form 8-K”). The Company shall file the Outstanding Shares Form 8-K within three (3) Trading Days of the date of delivery of the request by such Purchaser (the “Outstanding Shares Form 8-K Request”). The Purchasers may deliver an Outstanding Shares Form 8-K Request at any time while the Purchasers hold any Preferred Stock or Warrants.
  
 4.13 Participation in Future Financing. 
  
 (a) From the date hereof until the date that is the earlier of (i) eighteen (18) month anniversary of the Closing Date or (ii) the first Trading Day upon which no Warrants or Preferred Stock remain outstanding, upon any issuance by the Company or any of its Subsidiaries of Common Stock, Common Stock Equivalents for cash consideration, Indebtedness or a combination of units thereof (a “Subsequent Financing”), the Purchasers shall, in the aggregate, have the right to participate in up to an amount of the Subsequent Financing equal to 30% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing. For purposes of clarity, subject to the terms of this Section 4.13, each Purchaser may elect to participate up to the Participation Maximum, but the aggregate participation right hereunder shall not exceed the Participation Maximum.
  
 (b) Between the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the Trading Day immediately prior to the Trading Day of the expected announcement of the Subsequent Financing (or, if the Trading Day of the expected announcement of the Subsequent Financing is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00 pm (New York City time) on the Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the day immediately prior to the Trading Day of the expected announcement of the Subsequent Financing), the Company shall deliver to each Purchaser a written notice of its intention to effect a Subsequent Financing (a “Pre-Notice”), which Pre-Notice shall ask such Purchaser if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”). Upon the request of a Purchaser, and only upon a request of such Purchaser, for a Subsequent Financing Notice, the Company shall promptly, but no later than two (2) hours after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet and transaction documents relating thereto as an attachment.
  
 	 
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 (c) Any Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by 6:30 am (New York City time) on the Trading Day following the date on which the Pre-Notice is delivered to all of the Purchasers (the “Notice Termination Time”) that such Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation, and representing and warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company receives no such notice from a Purchaser as of such Notice Termination Time, such Purchaser shall be deemed to have notified the Company that it does not elect to participate in such Subsequent Financing.
  
 (d) [RESERVED].
  
 (e) If, by the Notice Termination Time, the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of the Participation Maximum. “Pro Rata Portion” means the ratio of (x) the Subscription Amount of Securities purchased at the Closing by a Purchaser participating under this Section 4.13 and (y) the sum of the aggregate Subscription Amounts of Securities purchased at the Closing by all Purchasers participating under this Section 4.13.
  
 (f) The Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of participation set forth above in this Section 4.13, if the definitive agreement related to the initial Subsequent Financing Notice is not entered into for any reason on the terms set forth in such Subsequent Financing Notice within two (2) Trading Days after the date of delivery of the initial Subsequent Financing Notice.
  
 (g) The Company and each Purchaser agree that, if any Purchaser elects to participate in the Subsequent Financing, the transaction documents related to the Subsequent Financing shall not include any term or provision that, directly or indirectly, will, or is intended to, exclude one or more of the Purchasers from participating in a Subsequent Financing, including, but not limited to, provisions whereby such Purchaser shall be required to agree to any restrictions on trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior written consent of such Purchaser. In addition, the Company and each Purchaser agree that, in connection with a Subsequent Financing, the transaction documents related to the Subsequent Financing shall include a requirement for the Company to issue a widely disseminated press release by 9:30 am (New York City time) on the Trading Day of execution of the transaction documents in such Subsequent Financing (or, if the date of execution is not a Trading Day, on the immediately following Trading Day) that discloses the material terms of the transactions contemplated by the transaction documents in such Subsequent Financing.
  
 	 
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 (h) Notwithstanding anything to the contrary in this Section 4.13 and unless otherwise agreed to by such Purchaser, the Company shall either confirm in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser will not be in possession of any material, non-public information, by 9:30 am (New York City time) on the second (2nd) Trading Day following date of delivery of the Subsequent Financing Notice. If by 9:30 am (New York City time) on such second (2nd) Trading Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by such Purchaser, such transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.
  
 (i) Notwithstanding the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance.
  
 4.14 Subsequent Equity Sales. 
  
 (a) From the date hereof until ninety (90) days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.
  
 (b) From the date hereof until such time as no Purchaser holds any of the Warrants, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to, an equity line of credit or an at-the-market facility, including, without limitation, the Aspire Purchase Agreement, whereby the Company may issue securities at a future determined price; provided, however, that, following the date that is ninety (90) days following the Closing Date, if and only if there is no existing Triggering Event, issuances of Common Stock by the Company pursuant to the Aspire Purchase Agreement shall not be deemed a Variable Rate Transaction. Notwithstanding anything herein to the contrary, the Company covenants it will not sell any securities under or otherwise use the Aspire Purchase Agreement until thirty (30) business days after Second Closing Date, or ninety (90) business days after the First Closing Date if the Second Closing Date does not occur. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages. 
  
 	 
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 (c) Until such time as the Purchasers hold no Preferred Stock or Warrants, in each of Company’s Quarterly Reports on Form 10-Q filed with the Commission following the date hereof, in connection with issuances of Common Stock by the Company pursuant to the Aspire Purchase Agreement as permitted pursuant to Section 4.14(b) herein during the period covered by such Quarterly Report on Form 10-Q, the Company shall disclose the number of shares of Common Stock sold pursuant to the Aspire Purchase Agreement and the sale prices for such sales thereunder, whether or not such disclosure is required by Exchange Act or guidance from the Commission.
  
 (d) If the Company enters into or effects a Variable Rate Transaction in violation of the prohibition set forth in Section 4.14(b) herein, the Company shall pay to each Purchaser, in cash, as liquidated damages and not as a penalty, an amount equal to 25% of the sum of (a) the aggregate Stated Value of the shares of Preferred Stock then held by such Purchaser plus (b) the aggregate Stated Value of the shares of Preferred Stock issuable upon exercise of the Warrants then held by such Purchaser. For purposes of clarity, the Company shall pay the liquidated damages described herein for each Variable Rate Transaction that violates the prohibition set forth in Section 4.14(b) herein. The Company shall pay to each Purchaser such amount of liquidated damages in cash by wire transfer within three (3) Trading Days of the date of such Variable Rate Transaction. Nothing herein shall limit a Purchaser’s right to pursue actual damages, or declare a Triggering Event pursuant to the terms of the Certificate of Designation, for the Company’s violation of the prohibition in Section 4.14(b) and such Purchaser shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.
  
 (e) Notwithstanding the foregoing, this Section 4.14 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance. 
  
 4.15 Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration is also offered to all of the parties to such Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.
  
 	 
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 4.16 Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Signing Form 8-K as described in Section 4.7. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the Signing Form 8-K as described in Section 4.7, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Signing Form 8-K as described in Section 4.7, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Signing Form 8-K as described in Section 4.7 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance of the Signing Form 8-K as described in Section 4.7. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.
  
 4.17 No Indebtedness for 9 Months. From the date hereof until the nine (9) month anniversary of the Closing Date, the Company shall not create, incur, assume or guarantee any indebtedness for borrowed money of any kind (other than trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice), or amend or refinance any existing indebtedness for borrowed money of any kind, including, without limitation, a guarantee on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; provided, however, that the prohibition in this Section 4.17 shall remain effective and applicable following the nine (9) month anniversary of the Closing Date if (i) the 30-day average dollar trading volume of the Common Stock (as reported as reported by Bloomberg L.P.) is less than $20,000 per Trading Day and (ii) any Closing Shares remain outstanding; provided further, however, that, if the prohibition in this Section 4.17 remains applicable after the nine (9) month anniversary of the Closing Date as provided herein, the prohibition in this Section 4.17 shall no longer apply on the earlier of (a) the date on which no Closing Shares remain outstanding and (b) the date on which the 30-day average dollar trading volume of the Common Stock (as reported on as reported by Bloomberg L.P.) is higher than $20,000 per Trading Day. 
  
 	 
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 4.18 Amended Registration Statement. If, at the time of Company’s filing of its Annual Report on Form 10-K or at any time while any Warrants remain outstanding, the Company shall cease to be eligible to use Form S-3 for the Registration Statement or a subsequent registration statement on Form S-3 for the registration of the Conversion Shares and Warrant Shares (“Form S-3 Unavailability”), the Company shall file an amendment to the Registration Statement or such subsequent registration statement with the Commission to amend the form of the Registration Statement or such subsequent registration statement to Form S-1 or such other form as is available to register the Conversion Shares and Warrant Shares for registration in a primary offering on a continuous basis pursuant to Rule 415 (the “Amended Registration Statement” ). The Company covenants that the Company shall file the Amended Registration Statement within two (2) Trading Days of (i) the date of filing of Company’s Annual Report on Form 10-K, if such filing of its Annual Report on Form 10-K results in Form S-3 Unavailability, or (ii) the date of Form S-3 Unavailability, if such unavailability occurs for any other reason (such filing of the Amended Registration Statement, the “Amendment Filing”) and the Company shall use commercially reasonable best efforts to cause the Amended Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in no event later than fifteen (15) Trading Days following the date of the Amendment Filing (the effectiveness of the Amended Registration Statement, the “Amended Registration Statement Effectiveness”).
  
 ARTICLE V.
 MISCELLANEOUS
  
 5.1 Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before the fifth (5th) Trading Day after which it was to have occurred; provided, however, that such termination will not affect the right of any party to sue for any breach by any other party (or parties).
  
 5.2 Fees and Expenses. The Company has agreed to reimburse the lead Purchaser the non-accountable sum of $35,000 for its legal fees and expenses, all of which shall be paid on the Closing Date. The Company shall deliver to each Purchaser, prior to the Closing, a completed and executed copy of the Closing Statement, attached hereto as Annex A. Upon the occurrence of a Triggering Event, the Company shall reimburse each Purchaser for any legal fees and expenses incurred by such Purchaser in connection with remedies related to such Triggering Event. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.
  
 	 
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 5.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
  
 5.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 6:00 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 6:00 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
  
 5.5 Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and Purchasers which purchased at least a majority in interest of the Closing Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.
  
 	 
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 5.6 Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
  
 5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any Purchaser may not assign any or all of its rights under this Agreement to any Person, other than to an Affiliate of such Purchaser, without the prior written consent of the Company (such consent not to be unreasonably withheld) and provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”
  
 5.8 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.11.
  
 5.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 4.11, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.
  
 5.10 Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.
  
 	 
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 5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.
  
 5.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.
  
 5.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however, that, in the case of a rescission of a conversion of the Preferred Stock or exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise notice concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).
  
 5.14 Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.
  
 	 
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 5.15 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate. 
  
 5.16 Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.
  
 5.17 Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any Action or Proceeding that may be brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the Closing Date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Purchaser’s election.
  
 5.18 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.
  
 	 
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 5.19 Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.
  
 5.20 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.
  
 5.21 Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.
  
 5.22 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 
  
 (Signature Pages Follow)
  
 	 
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 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
  
 	 INNOVATION PHARMACEUTICALS INC.
	  
	 Address for Notice:
 301 Edgewater Place, Suite 100
 Wakefield, MA 01880
  

	 By:
	 /s/ Leo Ehrlich  
	  
	 Fax: 978.921.6564

	  
	 Name: Leo Ehrlich
 Title: Chief Executive Officer
	  
	  
 E-Mail: leo@ipharminc.com

  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
 SIGNATURE PAGE FOR PURCHASER FOLLOWS]
  
 	 
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 [PURCHASER SIGNATURE PAGES TO IPIX SECURITIES PURCHASE AGREEMENT]
  
 IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
  
 Name of Purchaser: 
  
 Signature of Authorized Signatory of Purchaser: _________________________________________________
  
 Name of Authorized Signatory: _______________________________________________________________
  
 Title of Authorized Signatory: ________________________________________________________________
  
 Email Address of Authorized Signatory: ________________________________________________________
  
 Facsimile Number of Authorized Signatory: ______________________________________________________
  
 Address for Notice to Purchaser:
  
 Address for Delivery of Securities to Purchaser (if not same as address for notice):
  
 Subscription Amount (Total): 
  
 Stated Value (Total): 
  
 Shares of Preferred Stock (Total): 
  
 Series 1 Warrant Shares (Total): 
  
 Series 2 Warrant Shares (Total): 
  
  
 EIN Number: _______________________
  
 ☐ Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded, (ii) the Closing shall occur on the second (2nd) Trading Day following the date of this Agreement and (iii) any condition to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.
  
 	 
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 ANNEX A 
  
 CLOSING STATEMENT
  
 Pursuant to the attached Securities Purchase Agreement, dated as of the date hereto, the purchasers shall purchase _______ shares of Preferred Stock and Preferred Stock Purchase Warrants from Innovation Pharmaceuticals Inc., a Nevada corporation (the “Company”). All funds will be wired into an account maintained by the Company. All funds will be disbursed in accordance with this Closing Statement. 
  
 Disbursement Date: _________, 2020
  
  
 	 I. PURCHASE PRICE
  
	  

	 	 Gross Proceeds to be Received 
	 $

	  
  
	  

	 II. DISBURSEMENTS
	  

	 	  
	 $

	 	  
	  

	  
	  

	 Total Amount Disbursed:
	 $

  
 	 WIRE INSTRUCTIONS:
 Please see attached.
  
	  

 Acknowledged and agreed to
 this ____ day of _________, 2020
  
 Innovation Pharmaceuticals Inc.
  
  
 By: _________________________
 Name:
 Title:
  
 	 
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 EXHIBIT A
 Certificate of Designation
  
  
  
  
  
 	 
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 EXHIBIT B
 Form of Warrants
  
  
  
  
  
  
 	 
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 EXHIBIT C
 Transfer Agent Letter
  
  
  
  
 	48a101amendedandrestatedem

   1  66399222v.3  66677276v.1      EXHIBIT 10.1    AMENDED AND RESTATED  EMPLOYMENT AGREEMENT  This Amended and Restated Employment Agreement (this “Agreement”) is entered into as  of December 4, 2020, between Helen of Troy Nevada Corporation, a Nevada corporation (the  “Company”), and Julien R. Mininberg (the “Executive”), but effective as of the Effective Date (as  defined below).  The Company and the Executive sometimes are referred to herein collectively as  “the parties” or individually as “a party.”  WHEREAS, Executive presently serves as Chief Executive Officer of the Company and  Chief Executive Officer of Helen of Troy Limited, a Bermuda company (“Helen of Troy”); and  WHEREAS, the Company and Executive previously entered into an amended and restated  employment agreement dated as of November 7, 2018 and effective as of March 1, 2019 (as  amended, the "Prior Agreement"); and  WHEREAS, the Company and Executive desire to extend the Term (as defined below) of  Executive’s employment and amend and restate the Prior Agreement as hereinafter provided; and  WHEREAS, the Company desires to employ Executive, and Executive desires to be  employed by the Company, on the terms and subject to the conditions set forth in this Agreement;    NOW THEREFORE, in consideration of the mutual promises contained in this Agreement,  the parties agree as follows:  1. Employment and Effective Date.  The Company agrees to continue to employ  Executive as Chief Executive Officer of the Company.  Executive shall also serve as Chief  Executive Officer of Helen of Troy and agrees to serve in such additional positions as are  reasonably assigned to the Executive by the Company and the Board of Directors (the “Board”) of  Helen of Troy, from time to time, during the Term (as defined below).  Executive accepts such  employment and such appointments, on the terms and subject to the conditions set forth in this  Agreement.  For purposes of clarity, the Prior Agreement will terminate at 11:59 p.m. on February  28, 2021 and this Agreement will immediately take effect. The effective date of this Agreement  shall be March 1, 2021 (the “Effective Date”) Until the Effective Date, except as provided in  Section 4(g), neither the Company nor Executive shall have any obligations hereunder and the  Company shall have no obligation to provide any compensation or benefit or make any payment  under this Agreement.   2. Duties.  (a) Executive shall during the Term (as defined below), subject to the control of the  Board, have the executive powers of the Chief Executive Officer and exercise active management  and supervision over the business and affairs of Helen of Troy and its subsidiaries and its several  officers and shall perform such executive and/or administrative duties consistent with the office of  

 

   2    Chief Executive Officer of Helen of Troy and the Company as from time to time may be assigned  to him by the Board in its judgment and discretion.  Executive shall report to the Board.  (b) During the Term, Executive shall devote his entire professional business time and  all reasonable efforts to his employment and perform diligently his duties under this  Agreement.  Notwithstanding the foregoing, with prior written approval of the Board, Executive  may serve on one (1) “for profit” board, provided that, beginning on March 1, 2022, the Executive  may serve on no more than a total of two (2) “for profit” boards. For avoidance of doubt, “for  profit” boards can be for public or private companies. In addition, the Executive may also serve  on no more than two (2) “not for profit” governing bodies of charities and/or educational  institutions at any time during the Term so long as such service does not unreasonably interfere  with Executive’s performance of his obligations hereunder.   (c) Executive understands that El Paso, Texas is the headquarters of the Company, and  agrees that he will devote as much time as deemed required by the Board in El Paso, Texas in  performance of his duties under this Agreement.  (d) Executive understands and agrees that there will be reasonable domestic and  international travel for business purposes customarily required of Executive in his capacity as  Chief Executive Officer of Helen of Troy.  3. Term.  Subject to Section 5 below, the term of this Agreement shall commence on  March 1, 2021 and end on February 29, 2024 (the "Term").  Unless Executive’s employment is  terminated prior to the end of the Term, the Executive will retire as of the end of the Term and  receive the benefits set forth in Section 6(f).  Nothing in this Agreement shall prevent the parties  from negotiating an extension of the Term if deemed appropriate.  For the avoidance of doubt, the  non-renewal or non-extension of the Term shall not be deemed to result in Executive’s termination  by the Company without Cause (defined below) or for Good Reason (defined below) and the  severance payments under Section 6(c) shall not apply to Executive’s separation from service at  the end of the Term, but shall instead result in Executive’s termination with the Company and  Helen of Troy pursuant to, and receipt of benefits set forth in, Section 6(f).  4. Compensation.  During the Term, the Company shall pay or provide, as the case  may be, to Executive the compensation and other benefits and rights set forth in this Section 4.  (a) Annual Base Salary.  During the Term, the Company shall pay to Executive an  annual base salary of no less than $1,000,000 per year (the “Base Salary”), payable in accordance  with the Company’s usual pay practices (and in any event no less frequently than monthly).  The  Base Salary shall be reviewed by the Compensation Committee annually.  (b) Annual Incentive Bonus.  During the Term, Executive shall be eligible to participate  in the Helen of Troy Limited 2011 Annual Incentive Plan and any successor annual incentive plan  or arrangement in which executive officers of Helen of Troy are eligible to participate (as amended,  restated or modified from time to time, the “Annual Incentive Plan”).  Except as otherwise set forth  in this Agreement, any incentive award under this Section 4(b) shall be subject to, and governed  by, the terms and requirements of the Annual Incentive Plan, any applicable award agreement  granted thereunder and the following applicable terms and conditions:  

 

   3    (i) Performance Opportunity.  For the annual performance period commencing  March 1, 2021 and ending February 28, 2022, and for each annual  performance period commencing thereafter during the Term, Executive  shall be eligible to receive an annual performance bonus (the “Fiscal APB”)  targeted at 200% of Executive’s Base Salary at the commencement of the  applicable annual performance period, with the opportunity to earn up to  1.6 times such target, and a threshold achievement payout of 100% of  Executive’s Base Salary at the commencement of such annual performance  period; provided that no such threshold, target or maximum opportunity  under a Fiscal APB shall exceed the APB Participant Limit (as defined  below); and provided further that, in the event of any Base Salary increases  during the performance period, any actual payout shall be adjusted for  actual Base Salary in accordance with the Annual Incentive Plan, subject to  the terms and conditions of the Annual Incentive Plan, and any maximum  amount established by the Compensation Committee for the Executive with  respect to the corresponding performance period.  Notwithstanding the  foregoing and for avoidance of doubt, except to the extent expressly set  forth in Sections 6(b)(iii), 6(c)(ii), 6(d)(ii) and 6(f), or a retirement plan or  policy described in Section 4(d), no Fiscal APB shall be earned or payable  for the applicable annual performance period if the threshold is not  achieved, and Executive shall not be entitled to a bonus with respect to any  such performance measure if the threshold amount associated with such  performance measure is not achieved.    (ii) Other Terms of Fiscal APB.  Except as expressly provided in this  Agreement, the performance goals, target awards, thresholds, maximums  and any other terms of any Fiscal APB shall be determined as set forth under  the Annual Incentive Plan and at the sole discretion of the Compensation  Committee of the Board (the “Compensation Committee”).  (iii) Certain Conditions.  (A) Completion of the Performance Period.  Except to the extent  expressly set forth in Sections 6(b)(iii), 6(c)(ii), 6(d)(ii) and 6(f), or  a retirement plan or policy described in Section 4(d), for purposes  of this Agreement, the Annual Incentive Plan and any applicable  award agreement granted thereunder, Executive shall not be deemed  to be eligible for or to have “earned” any performance-based award  under this Agreement, the Annual Incentive Plan or such award  agreement unless the applicable performance period has been fully  completed and the applicable performance goals have been  achieved.    (B)  Continued Employment; No Pro-Rata Awards.  Except to the extent  expressly set forth in Sections 6(b)(iii), 6(c)(ii), 6(d)(ii) and 6(f), or  a retirement plan or policy described in Section 4(d), to qualify for  and receive payment of any annual incentive award under the  

 

   4    Annual Incentive Plan, Executive must remain employed with the  Company and Helen of Troy through the last day of the performance  period for which such incentive award is payable.  For avoidance of  doubt, except to the extent expressly set forth in Sections 6(b)(iii),  6(c)(ii), and 6(d)(ii), Executive shall not be entitled to any pro-rata  portion of any annual incentive award for a partial performance  period if his employment is terminated at any point on or prior to  the last day of the performance period for which such incentive  award is payable.  (C) APB Participant Limit.  Notwithstanding anything contained herein  to the contrary, the threshold, target and maximum opportunity or  amount of any Fiscal APB that may be established for Executive  with respect to any performance period shall be subject to the  limitations set forth in the Annual Incentive Plan, including  Section 4.10 of the Annual Incentive Plan (or any amended or  successor provision relating thereto) (the “APB Participant  Limit”).  In the event the threshold, target and maximum  opportunity or amount of any Fiscal APB contemplated by the first  sentence of Section 4(b)(i) exceeds the APB Participant Limit, to the  extent required under the Annual Incentive Plan, the rules and  regulations of any exchange in which the Shares are traded or listed,  or applicable law, the Company shall use its commercially  reasonable efforts to obtain shareholders’ approval at an annual  general shareholders meeting of an amendment to the Annual  Incentive Plan permitting the award of the Fiscal APB as  contemplated by the first sentence of Section 4(b)(i).  In the event  Helen of Troy’s shareholders have not or do not so approve an  amendment to the APB Participant Limit, the Company and the  Compensation Committee shall be obligated only to grant to  Executive a Fiscal APB with terms that do not exceed the APB  Participant Limit.  (iv) Award Not Guaranteed.  The grant of any annual Fiscal APB does not  constitute a promise of achievement of such award or payment.    (v) Awards Granted Prior to this Agreement.  With respect to any performance  period ending on or prior to February 28, 2021, Executive shall earn or  become vested in the annual cash bonus pursuant to the same performance  conditions, payment, vesting and other terms and conditions of an award  previously granted to Executive pursuant to the Annual Incentive Plan; for  avoidance of doubt, any terms of the Prior Agreement affecting such prior  award will be deemed to remain in effect for that purpose, subject only to  Section 6 hereof.  (c) Long Term Incentive Compensation.  During the Term, Executive shall be entitled  to participate in the Helen of Troy Limited 2018 Stock Incentive Plan and any successor stock or  

 

   5    long-term incentive plan in which executive officers of Helen of Troy are eligible to participate  (as amended, restated or modified from time to time, the “Stock Incentive Plan”).  Any incentive  award under this Section 4(c) shall be subject to, and governed by, the terms and requirements of  the Stock Incentive Plan, any award agreement issued thereunder, and the following applicable  terms and conditions.  (i) Equity Incentive Award.  For the performance period commencing March  1, 2021 and ending February 29, 2024, and for each successive three-year  performance period commencing thereafter during the Term, Executive  shall be eligible to receive a long-term performance bonus (the “Fiscal  LTPB”) in the form of an equity incentive award consisting of a grant under  the Stock Incentive Plan of performance-based restricted shares  (“RSAs”).  Notwithstanding the foregoing and for the avoidance of doubt,  except to the extent expressly set forth in Sections 6(b)(iii), 6(c)(ii), 6(d)(iv)  and 6(f), or a retirement plan or policy described in Section 4(d), no Fiscal  LTPB shall be earned or payable, and Executive shall not be entitled to the  vesting of a Fiscal LTPB with respect to any such performance-based RSAs  if the threshold amount associated with such performance measure is not  achieved for a given Fiscal LTPB.    (ii) Performance Opportunity.  Executive’s total maximum equity award for  each Fiscal LTPB that is granted each fiscal year during the Term will be  the lesser of $10,400,000 (two times target) or the LTPB Plan Limit (as  defined below) calculated based on the Fair Market Value (as such term is  defined under the Stock Incentive Plan) of the RSAs (the “Maximum Grant  Amount”).  For each Fiscal LTPB, the number of common shares of Helen  of Troy (the “Shares”) subject to the performance-based RSA shall be a  quotient equal to (A) the Maximum Grant Amount divided by (B) the Fair  Market Value (rounded up to the next whole share) of the Shares provided  that the number of Shares determined pursuant to the foregoing shall not  exceed the LTPB Plan Limit.  The performance-based RSA grant under the  Stock Incentive Plan will have a threshold award of 25% and a target award  of 50% of the total performance-based RSAs granted under the Stock  Incentive Plan, which is $2,600,000 and $5,200,000, respectively.  The  Maximum Grant Amount is the maximum amount payable as a LTPB and  represents two times the target award amount such that if the target award  is subsequently increased at any time during the Term, the Maximum Grant  Amount for any grants made on or  after the effective date of such target  award increase will continue to be two times the target award amount and  the threshold award will continue to be 25% of the Maximum Grant  Amount. For purposes of this Section 4(c)(ii), the value of any RSAs shall  be calculated based on the per Share Fair Market Value on the date of the  grant of such award.   (iii) Other Terms of Fiscal LTPB.  Notwithstanding the foregoing, the  Compensation Committee may increase or decrease the targets, thresholds  or maximums for awards of performance-based RSA grants for any  

 

   6    performance period at its sole discretion.  Except as expressly provided in  this Agreement, the performance goals and other terms of any Fiscal LTPB  shall be determined at the sole discretion of the Compensation Committee.  (iv) Certain Conditions.   (A) Completion of the Performance Period.  Except to the extent  expressly set forth in Sections 6(b)(iii), 6(c)(ii)-(iii), 6(d)(iii)-(iv)  and 6(f), or a retirement plan or policy described in Section 4(d), for  purposes of this Agreement, the Stock Incentive Plan and any award  agreement granted thereunder, Executive shall not be deemed to be  eligible for payment for or to have “earned” any performance-based  award under the Stock Incentive Plan or such award agreement  unless the applicable performance period has been fully completed  and the applicable performance goals have been achieved.    (B) Continued Employment; No Pro-Rata Awards.  Except to the extent  expressly set forth in Sections 6(b)(iii), 6(c)(ii)-(iii),6(d)(iii)-(iv)  and 6(f), or a retirement plan or policy described in Section 4(d), to  qualify for any incentive payment under the Stock Incentive Plan,  Executive must remain employed with the Company and Helen of  Troy through the last day of the performance period for which such  incentive payment is payable and, at a minimum, the threshold  amount associated with the performance measures must be achieved  for such performance period.  For avoidance of doubt, except to the  extent expressly set forth in Sections 6(b)(iii), 6(c)(ii)-(iii), 6(d)(iii)- (iv) and 6(f), or a retirement plan or policy described in Section 4(d),  Executive shall not be entitled to any pro-rata portion of any Fiscal  LTPB for a partial performance period if his employment is  terminated at any point on or prior to the last day of the performance  period for which such incentive award is payable.   (C) LTPB Plan Limit.  Notwithstanding anything contained herein to the  contrary, the number of Shares that shall be established for  Executive with respect to any RSA shall be subject to the limitations  set forth in the Stock Incentive Plan, including Section 3(a) of the  Stock Incentive Plan (or any amended or successor provision  relating thereto) (the “LTPB Plan Limit”).  In the event (1) there are  not a sufficient number of Shares under the Stock Incentive Plan to  cause the grant of RSAs or (2) the number of Shares that may be  established for any threshold, target and maximum opportunity in  any Fiscal LTPB pursuant to Section 4(c)(ii) (as calculated without  giving effect to the LTPB Plan Limit) exceeds the LTPB Plan Limit,  to the extent required under the Stock Incentive Plan, the rules and  regulations of any exchange in which the Shares are traded or listed,  or applicable law, the Company shall use its commercially  reasonable efforts to obtain shareholders’ approval at an annual  

 

   7    general meeting of shareholders to approve of an amendment to the  Stock Incentive Plan permitting the award of RSA’s in excess of the  LTPB Plan Limit, as contemplated by Section 4(c)(ii).  In the event  Helen of Troy’s shareholders have not or do not so approve an  amendment to the LTPB Plan Limit, the Company and the  Compensation Committee shall be obligated only to grant to  Executive a Fiscal LTPB with terms that do not exceed the LTPB  Plan Limit.  (v) Award Not Guaranteed.  The grant of any Fiscal LTPB does not constitute  a promise of achievement of such award or payment.    (vi) Awards Granted Prior to this Agreement.  Executive shall continue to be  entitled to receive any Shares settled pursuant to any grant of restricted  stock units (“RSUs”) and RSAs prior to the Effective Date, subject to the  same performance conditions, payment, vesting and other terms and  conditions of any such RSU or RSA award previously granted to Executive  pursuant to the Stock Incentive Plan (or a predecessor plan); for avoidance  of doubt, any terms of the Prior Agreement affecting such prior award will  be deemed to remain in effect for that purpose, subject only to Section 6  hereof.  (d) Other Benefits.  During the Term, the Company shall provide to Executive such  health and welfare benefits as may be generally available to other employees of the  Company.  Executive shall be entitled to six (6) weeks of vacation and such periods of sick leave  allowance each year as are determined by the Company per its written policies, procedures and  practices applicable to all employees of the Company.  Except as described in this Section 4(d),  Executive may participate in all retirement and other benefit plans or arrangements of the Company  generally available from time to time to executive officers of the Company and for which  Executive qualifies under the terms of such plans or satisfies the conditions of such arrangements.   In addition, if the Company maintains its retirement plan or policy for executive officers,  Executive will not be eligible to participate before March 1, 2022.  On or after March 1, 2022, the  Executive, in his sole discretion, and upon ninety (90) days prior notice to the Company, may elect  to participate and retire under such plan or policy on or after March 1, 2022, but before the end of  the Term.  If the Executive makes such election, the Executive shall be entitled to receive the  benefits under such plan or policy and not those under Section 6(f).    (e) Expense Reimbursement.  The Company shall reimburse Executive for reasonable  travel and other expenses incurred by Executive, including, without limitation travel for Executive  for trips to El Paso, Texas in connection with the Executive’s performance of his duties to carry  out the Company’s business, subject to Helen of Troy’s written policies, procedures and  practices.  Notwithstanding the foregoing, Executive shall be responsible for all costs and expenses  incurred in connection with his lodging for trips to El Paso, Texas.  (f) Annual Physical.  The Executive shall be required to have an annual physical, at  the Company’s expense, at a reasonable location chosen by Executive.  It is expected that the  reimbursement or payment of Executive’s annual physical will be excluded from Executive’s  

 

   8    taxable income under Section 105 of the Internal Revenue Code of 1986, as amended (the “Code”),  and Treasury Regulation Section 1.105-11(g).  If necessary, based on the good faith determination  of the Company, the Company will effect an amendment to the Company health plan to provide  this benefit.  (g) Legal Fees.  The Company will reimburse Executive’s documented, reasonable  legal fees billed to Executive in connection with legal advice as to the negotiation and execution  of this Agreement, subject to a maximum reimbursement of $5,000.  Any reimbursement for legal  fees shall be made as soon as practicable after Executive submits documentation of his legal fees  incurred, but in no event later than March 15 of the calendar year following the  date that this  Agreement is executed.   5. Termination.  (a) Death.  Executive’s employment hereunder shall automatically terminate upon his  death.  (b) Disability.  In the event Executive incurs a Disability (defined below) for a  continuous period of one-hundred twenty (120) consecutive days or one hundred eighty (180)  cumulative days in any calendar year, the Company may, at its election, terminate Executive’s  employment by providing Executive prior written notice of termination.  The term “Disability”  shall mean any disability or incapacity that so impairs Executive’s mental or physical health that  it prevents him from performing the essential functions of his job with or without a reasonable  accommodation.  (c) Cause.  The Company may terminate Executive’s employment for Cause (defined  below) by providing written notice, which shall set forth in reasonable detail the facts and  circumstances constituting Cause.  Except in the case of a for Cause termination under clauses (iv)  or (v) below, such termination shall be effective immediately upon the delivery of such notice.   Solely in the case of a for Cause termination under clauses (iv) or (v) below that is within the  prescribed correction period, such termination shall be effective upon the expiration of thirty (30)  days following the date of the delivery of the Company’s written notice of such event by the  Company, provided that if such event is capable of being cured as determined in the sole discretion  of the Board, then on or before the expiration of the applicable correction period, the Executive  shall be afforded an opportunity to meet with and present to the Board Executive’s position  regarding the event; provided, however, that the Compensation Committee, in its discretion, may  extend such thirty-day cure period by up to fifteen (15) additional days to arrange such  opportunity.  With respect to a Cause event, “Cause” shall mean:  (i) Executive’s commission of an act of fraud, embezzlement or similar action;  Executive’s conviction of, or plea of guilty or no contest to, (A) any felony,  (B) any crime involving fraud, embezzlement, or (C) other defalcation or  any crime involving moral turpitude;  (ii) Executive’s commission of any act of dishonesty which is injurious to the  business reputation of the Company or Helen of Troy or Executive’s  violation of the Company’s insider trading policy;  

 

   9    (iii) Executive’s failure to perform his material duties under this Agreement,  including without limitation, the failure to follow the directions of the  Board;  (iv) Executive’s breach of any material provision of this Agreement which, if in  the Board’s determination is capable of being cured or corrected, such  breach is not cured or corrected by Executive within thirty (30) days of  receiving written notice thereof from the Company;  (v) Executive’s material breach of any written policy of the Company or Helen  of Troy, including but not limited to the Code of Ethics for the Chief  Executive Officer and Senior Financial Officers of Helen of Troy Limited,  which, if in the Board’s determination is capable of being cured or  corrected, such breach is not cured or corrected by Executive within thirty  (30) days of receiving written notice thereof from the Company; or  (vi) The breach of any fiduciary duty owed to the Company, Helen of Troy  and/or its’ shareholders, which is deemed to be material in the reasonable  judgment of the Board.  (d) Good Reason.  Executive may terminate his employment during the Term for Good  Reason (defined below) by providing the Company and the Board prior written notice, which shall  set forth in reasonable detail the facts and circumstances of the event constituting Good  Reason.  “Good Reason” shall mean any of the following if such event occurs without the consent  of Executive:  (i) Executive shall fail to be vested by the Company or Helen of Troy with the  powers and authority of the Chief Executive Officer of Helen of Troy, or if  the provision of the bye-laws of Helen of Troy describing the relative duties  and responsibilities of the Chief Executive Officer, as in effect on the  Effective Date, are changed in any material respect that results in a material  diminution of the powers or authority of such office;   (ii) a significant change by the Company or Helen of Troy in Executive’s  functions, duties or responsibilities which would cause Executive’s position  with the Company or Helen of Troy to become of less responsibility or  scope from the position and attributes thereof described in Sections 1 and 2  of this Agreement. Notwithstanding the foregoing, the Company and  Executive have reasonable expectations that certain current functions,  duties, or responsibilities may be delegated to another person during the  course of this Agreement. Such delegation would only become effective  after the mutual agreement between the Executive and the Company is  reached, as evidenced in writing, and only upon such agreement would be  deemed not to constitute Good Reason;   (iii) other breach of a material provision of this Agreement by the Company;   

 

   10    (iv) the Company requires Executive to move his residence more than fifty miles  from his current residence; or  (v) the refusal of any successor to assume this Agreement in accordance with  the terms and conditions of Section 9(g).  Notwithstanding anything to the contrary contained herein, no termination for Good Reason can  occur unless: (A) the Executive first delivers written notice to the Company not later than ninety  (90) days following the date on which Executive first became aware (or reasonably should have  become aware) of the event constituting “Good Reason”; and (B) the Company or Helen of Troy,  as applicable, fails to remedy the event within thirty (30) days of the delivery of such notice, and  (C) the Executive terminates his employment not later than thirty (30) days following the end of  such cure period.  (e) Voluntary Termination.  Upon ninety (90) days’ prior written notice to the  Company, Executive may voluntarily terminate his employment with the Company prior to the  end of the Term.  For purposes of this Agreement, including the termination payments described  in Section 6 below, Executive’s separation from service at the end of the Term shall not constitute  a voluntary termination under this Section 5(e) or Section 6(a).    (f) Termination without Cause.  The Company may, upon written notice to Executive,  immediately terminate Executive’s employment at any time without Cause.   (g) Resignation of Offices and Directorships.  Upon any termination of Executive’s  employment under this Agreement for any reason, all offices and directorships held by Executive  in the Company, Helen of Troy or any of their respective subsidiaries shall be terminated  automatically and without further action by Executive as of the date of termination.  Executive  agrees, at the reasonable request of the Company or the Board, to execute and deliver further  documents or instruments and take such other action as may be reasonably necessary or desirable  to effect or document any such termination or resignation.  6. Payments to Executive upon Termination.   (a) Cause or Voluntary Termination Other than Retirement.  In the event of  Executive’s termination pursuant to Sections 5(c) or 5(e) other than retirement pursuant to Section  6(f) or, if eligible, a Company retirement plan or policy (as described in Section 4(d)), Executive  shall be entitled to no further compensation or other benefits under this Agreement, except as to  (i) that portion of any unpaid Base Salary earned by Executive hereunder up to and including the  effective date of such termination and (ii) any unpaid incentive payment earned by Executive with  respect to any award under the Annual Incentive Plan or Stock Incentive Plan and vested prior to  the effective date of such termination.  For avoidance of doubt, the Executive shall forfeit any  Fiscal APB, Fiscal LTPB, or underlying RSA’s granted that are unvested as of the date the  Executive terminates employment under this Section 6(a).  (b) Death or Disability.  In the event of Executive’s termination of employment  pursuant to Sections 5(a) or 5(b), Executive (or his legal representative or beneficiary) shall be  entitled to no further compensation or other benefits under this Agreement, except (i) that portion  of any unpaid Base Salary earned by Executive hereunder up to and including the effective date of  

 

   11    such termination, (ii) any unpaid incentive payment earned by Executive with respect to any award  under the Annual Incentive Plan or Stock Incentive Plan and vested prior to the effective date of  such termination and (iii) the pro rata portion (as defined below) of any incentive compensation  the Compensation Committee, in its reasonable discretion, determines Executive likely would have  received for the performance period during which Executive’s employment with the Company  terminated had Executive’s employment not terminated, which shall be payable at the time as such  payment would be made had Executive’s employment with the Company  continued.  Notwithstanding the foregoing, nothing in this Agreement shall affect Executive’s  right to receive death or disability benefits under the life insurance and disability insurance  programs of the Company, Helen of Troy and its subsidiaries.  For purposes of this Section 6(b),  the term “pro rata portion” shall mean a percentage, when expressed as a fraction, the numerator  of which is the number of days during the applicable performance period in which the Executive  was an employee of the Company, and the denominator of which is the number of days in such  performance period.  (c) Termination without Cause or for Good Reason (Not in Connection with a Change  of Control).  In the event of Executive’s termination of employment pursuant to Sections 5(d)  or 5(f) prior to the end of the Term, Executive shall be entitled to any unpaid Base Salary or other  benefit earned by him up to and including the date of termination (including any unpaid cash or  equity incentive payment earned under the Annual Incentive Plan or the Stock Incentive Plan and  vested prior to the effective date of such termination), to be paid in accordance with the Company’s  regular pay practices applicable to such earned and vested compensation and benefits; and, subject  to Executive’s compliance with Sections 6(i) and 9(a), and Executive’s continuing compliance  with Section 7 hereof:  (i) A cash payment equal to two (2) times Executive’s then Base Salary;  (ii) Without duplicating any payment already owed under this Section 6(c), the  pro rata portion (as defined in Section 6(b) above) of any incentive  compensation the Compensation Committee, in its reasonable discretion,  determines Executive would have received under the Annual Incentive Plan  and the Stock Incentive Plan for the performance period during which  Executive’s employment with the Company was terminated had  Executive’s employment not been terminated, based upon the actual  performance of Helen of Troy at the end of such performance period and  payable at the same time that such payment would be made during  Executive’s regular employment with the Company;  (iii) Without duplicating any payment already owed under this Section 6(c), a  pro rata portion (as defined below) of any installment of time-vesting RSUs  that would have vested as of the anniversary of the grant date that  immediately follows the Executive’s date of termination.  For purposes of  this Section 6(c)(iii), the term “pro rata portion” shall mean, with respect to  any award of time-vesting RSUs, a percentage, when expressed as a  fraction, the numerator of which is the number of days from and after the  anniversary of the grant date that begins the vesting period applicable to  such installment of RSUs during which Executive was an Employee of the  

 

   12    Company, and the denominator of which is the total number of days in the  vesting period(s) applicable to such installment of RSUs assuming  Executive was an employee throughout such period and no event or other  matter occurred that would accelerate the vesting of such award;  (iv) To the extent permitted by benefit plans of the Company or Helen of Troy  and its subsidiaries, and applicable law, and so long as Executive makes a  timely election under the Consolidated Omnibus Budget Reconciliation Act  of 1985 (“COBRA”), Executive shall be entitled to and the Company shall  pay for the continuation of health insurance benefits for Executive and his  family for a maximum of eighteen (18) months after the date of termination  under this Section 6(c) or until Executive is covered by another health  insurance policy or is eligible for coverage under an employer-sponsored  group health plan during the eighteen-month COBRA period. The Company  shall directly pay the premiums for Executive’s continuation coverage to  the COBRA administrator on behalf of Executive.  Executive acknowledges  that the Company’s payment for coverage under COBRA may be a taxable  benefit to Executive.  Executive and the Company agree that if the COBRA  continuation payments provided for in this Section 6(c)(iv) are determined  to be discriminatory under the Affordable Care Act nondiscrimination  provisions applicable to insured group health plans, the parties will  renegotiate Section 6(c)(iv), as applicable, in good faith to avoid the  imposition of any excise tax on Executive or the Company.  If at the time  of his termination under this Section 6(c) the Executive is eligible to retire  under any retirement policy of the Company (as described in Section 4(d))  which provides for continued health insurance benefits for a longer period,  or at a lower cost, than those described in this Section 6(c)(iv), then the  health insurance benefits provided in such retirement plan or policy shall  supersede those provided herein; and  (v) If the aggregate amount or value of the payments (including equity awards)  required under Sections 6(c)(i) through 6(c)(iii) is less than $6,000,000 (the  “Threshold Amount”), the Company shall make an additional cash payment  to Executive to achieve an aggregate payment amount or value equal to the  Threshold Amount, which shall be payable in accordance with the terms  and conditions of this Agreement and Section 6(g).   Except as provided above in this Section 6(c), no additional unvested or unearned awards under  the Annual Incentive Plan or the Stock Incentive Plan will be payable pursuant to a termination of  employment under this Section 6(c). Notwithstanding the foregoing, in the event the Executive  experiences a termination of employment pursuant to Sections 5(d) or 5(f) prior to the end of the  Term, but on or after March 1, 2022, such termination will be deemed to be a Company Requested  Early Retirement and Section 6(f) shall apply in lieu of this Section 6(c).  (d) Termination without Cause or for Good Reason in Connection with a Change of  Control.  If prior to the end of the Term there is a Change of Control (as defined in Section 6(e)  hereof), and if within six (6) months prior to, on, or within eighteen (18) months following the  

 

   13    effective date of such Change of Control, Executive’s employment terminates pursuant to  Sections 5(d) or 5(f) hereof, Executive shall be entitled to any unpaid Base Salary and other  benefits earned by him up to and including the date of termination (including any unpaid cash or  equity incentive payment earned under the Annual Incentive Plan or the Stock Incentive Plan and  vested prior to the effective date of such termination), to be paid in accordance with the Company’s  regular pay practices applicable to such earned and vested compensation and  benefits.  Additionally, subject to Executive’s compliance with Sections 6(i) and 9(a), and  Executive’s continuing compliance with Section 7 hereof:    (i) Subject to Section 6(g)(ii), a cash payment equal to two times:  (A) Executive’s then Base Salary at the time of the Change of Control (or  if higher, the Executive’s date of termination of employment) plus (B) an  amount equal to the target annual incentive under the Annual Incentive Plan  for the performance period during which Executive’s employment  terminated;  (ii) Without duplicating any payment already owed under this Section 6(d), the  pro rata portion (as calculated in Section 6(b) above) of any target annual  incentive compensation under the Annual Incentive Plan for the  performance period during which Executive’s employment with the  Company terminated;  (iii) Accelerated vesting of all unvested, time-vesting RSUs issued pursuant to  the Stock Incentive Plan as of the date on which Executive’s employment  with the Company terminated;  (iv) Accelerated vesting at the payout level described in this clause (iv) of all  outstanding, unearned, performance-based RSAs or RSUs issued pursuant  to the Stock Incentive Plan as of the date on which Executive’s employment  with the Company terminated (including any outstanding, unearned  performance-based RSAs or RSUs covered by Section 4(c)(vi)). The payout  shall be at either of the following levels: (1) at the target level, if the grant  was made less that one year before the Executive’s date of termination,; or  (2) the level at which such performance-based RSAs or RSUs are  reasonably on track to perform, as determined by the Compensation  Committee of the Company in its sole discretion after reviewing the most  recent Company forecast and any other information provided by the Chief  Financial Officer or the Executive, if the grant was made exactly one year  or more than one year before the Executive’s date of termination; and  (v) To the extent permitted by benefit plans of the Company or Helen of Troy  and its subsidiaries, and applicable law, and subject to the Executive’s  timely COBRA election, the continuation of health insurance benefits for  Executive and his family for a maximum of eighteen (18) months after the  date of termination or until Executive is covered by another health insurance  policy or is eligible for coverage under an employer-sponsored group health  plan, if that occurs earlier than eighteen (18) months.  The Company shall  

 

   14    pay for Executive’s COBRA continuation coverage for so long as such  coverage is maintained, and Executive acknowledges that the Company’s  payment for coverage under COBRA may be a taxable benefit to  Executive.  Executive and the Company agree that if the COBRA  continuation payments provided for in this Section 6(d)(v) are determined  to be discriminatory under the Affordable Care Act nondiscrimination  provisions applicable to insured group health plans, the parties will  renegotiate this Section 6(d)(v), as applicable, in good faith to avoid the  imposition of any excise tax on Executive or the Company.  The Company  shall pay the COBRA premium directly to the COBRA administrator on  behalf of Executive.  If, at the time of his termination, under this Section  6(d), Executive is eligible to retire under any retirement policy of the  Company (as described in Section 4(d)) which provides for continued health  insurance benefits for a longer period, or at a lower cost, than those  described in this Section 6(d)(v), then the health insurance benefits provided  in such retirement plan or policy shall supersede those provided herein; and  (vi) If the aggregate amount or value of the payments (including equity awards)  required under Sections 6(d)(i) through 6(c)(iv) is less than the Threshold  Amount (as set out in Section 6(c)(v)), the Company shall make an  additional cash payment to Executive to achieve an aggregate payment  amount or value equal to the Threshold Amount, which shall be payable in  accordance with the terms and conditions of this Agreement and  Section 6(g).   In the event any outstanding equity awards issued pursuant to the Stock Incentive Plan are not  assumed in connection with a Change of Control, such awards will immediately vest in accordance  with the terms of the Stock Incentive Plan.  For the avoidance of any doubt, any payments or  benefits provided under this Section 6(d) shall not duplicate or be combined with any payments or  benefits owed under Section 6(c).    (e) Change of Control Defined.  “Change of Control” shall have the same meaning  assigned under the Stock Incentive Plan, but, solely for purposes of this Agreement, ignoring the  application of the last sentence of the Stock Incentive Plan in effect as of the date of this Agreement  (or any equivalent or successor or amended provisions thereof).   (f) Retirement or Company Requested Early Retirement (“CRER”).  At the end of the  Term or earlier if due to a CRER, the Executive shall be entitled to retire and receive the benefits  below.  For purposes of clarity, a CRER may only occur on or after March 1, 2022 and before  February 29, 2024. The Executive shall be entitled to any unpaid Base Salary and other benefits  earned by him up to and including the date of termination (including any unpaid Fiscal APB or  Fiscal LTPB under the Annual Incentive Plan or the Stock Incentive Plan, respectively, and vested  prior to the effective date of such termination), to be paid in accordance with the Company’s  regular pay practices applicable to such earned and vested compensation and benefits.  Notwithstanding the foregoing and without duplicating any payment already owed under this  Section 6(f), the Executive will be entitled to the following with respect to the Fiscal APB for the  performance period during which the Executive’s employment is terminated under this Section  

 

   15    6(f): (A) if such termination occurs before October 1, 2023, the pro rata portion (as defined in  Section 6(b) above) of any incentive compensation which the Compensation Committee, in its  reasonable discretion, determines Executive would have received under the Annual Incentive Plan  for such performance period had Executive’s employment not been terminated, or (B) if such  termination occurs on or after October 1, 2023 and before February 29, 2024, the full Fiscal APB  for such year. Under either (A) or (B) in the preceding sentence, the payout will be based upon the  actual performance of Helen of Troy at the end of such performance period and payable at the  same time that such payment would be made during Executive’s regular employment with the  Company. Additionally, subject to Executive’s compliance with Sections 6(i) and 9(a), and  Executive’s continuing compliance with Section 7 hereof, Executive shall be entitled to the  following:  (i) Continued eligibility to vest in any Fiscal LTPB award issued pursuant to  the Stock Incentive Plan during the Term or under the Prior Agreement and  that remains outstanding as of the date on which Executive’s employment  with the Company terminated as of the end of the Term or earlier if due to  a CRER.  Any RSAs that are eligible to vest under this Section 6(f)(i) shall  vest to the Executive at the same time that other participants are eligible to  vest in similar awards in accordance with the Stock Incentive Plan and  determined based on actual achievement of performance measures.  During  the vesting period under this Section 6(f)(i), Executive shall make himself  available as reasonably necessary to serve as a mentor to his successor and  to provide consulting services to the Company to ensure a successful  transition following Executive’s retirement.  Executive’s mentoring and  consulting services shall be provided on an “as needed” basis with the  amount and manner of access determined as mutually agreed upon by the  Company and the Executive; provided, however, that Executive shall not  be considered to have breached this Agreement by reason of a failure of the  parties to agree as to the amount or manner of access.  Notwithstanding  anything to the contrary in the respective award agreements or hereunder,  death or Disability after the Term and before payout shall not have any  impact on the payout pursuant to this clause.  In such circumstance, the  Executive, his personal representative or beneficiary shall have the right to  vest in the Fiscal LTPB awards to the same extent that other participants are  eligible to vest in similar awards in accordance with the Stock Incentive  Plan and determined based on actual achievement of performance measures.  (ii) Following the Executive’s retirement at the end of the Term or earlier if due  to a CRER, Executive and his spouse will each have an independent right  to elect to either (i) continue coverage under the Company’s health plan  under the Consolidated Omnibus Budget Reconciliation Act of 1985, as  amended (“COBRA”) or (ii) to receive “Retiree Coverage” under the  Company’s health plan as described below.  Either the Executive or spouse,  but not both, may make the election of COBRA or Retiree Coverage apply  to any of Executive’s eligible dependents.  The Retiree Coverage will be  provided under the Company’s group health plan and will be the same  coverage as applies to active employees from time to time.  The Retiree  

 

   16    Coverage will continue for Executive until the earlier of December 26, 2029  or the date of his death, for Executive’s spouse until December 26, 2029,  regardless if the Executive dies before such date, and for each of  Executive’s dependents until the earlier of December 26, 2029, the date of  Executive’s death, or the date each such dependent ceases to satisfy the  definition of dependent under the health benefit plan; provided, however,  that such Retiree Coverage will end before the dates specified above if  Executive, his spouse, or his dependents, as applicable, become covered  under another employer group health plan. Executive must notify the  Company within 30 days of any such acquisition of employer group health  coverage.  If the Executive or spouse elects Retiree Coverage in lieu of  COBRA coverage, then at the end of the required COBRA election period,  Executive and/or his spouse, as applicable, will have no additional COBRA  rights with respect to Executive’s retirement.  If Executive or his spouse  elect COBRA coverage, Executive will be obligated to pay the full cost  (employer and employee premium amounts) for such COBRA coverage and  will be responsible for directly remitting payment of the monthly premium  for COBRA coverage to the COBRA administrator.  If Executive or his  spouse elect Retiree Coverage, Executive will be obligated to pay the  employee portion of the premium and the Company will pay the employer  portion of such premium; however, in order to comply with applicable tax  rules and to the extent required, the Company will impute the amount of the  employer premium to Executive as income and report it on Form W-2.   Executive will be responsible for directly remitting his portion of the  monthly premium for Retiree Coverage to the plan administrator.  If the  health benefit plan does not allow for such Retiree Coverage, the Company  will amend the plan to provide for such coverage.  If at the time of his  retirement the Executive is eligible to retire under any retirement policy of  the Company (as described in Section 4(d)) which provides for continued  health insurance benefits for a longer period, or at a lower cost, than those  described in this Section 6(f)(ii), then the health insurance benefits provided  in such retirement plan or policy will supersede those provided herein;  provided, that the Executive or his spouse, as applicable, elect to receive  such continued health insurance benefits in lieu of COBRA.  (iii) In the event a Change of Control occurs following the end of the Term and  while Executive is entitled to receive the foregoing benefits, the following  shall apply:  (A) If, upon a Change of Control, any unearned, performance based  RSAs are not assumed in full (including the underlying performance  objectives related thereto), then in lieu of clause (i), any restrictions  on any unearned, performance based RSAs issued under the Stock  Incentive Plan that remain outstanding as of the Change of Control  shall immediately lapse and be paid out at one of the following  levels: (1) at the target level, if the grant was made less that one year  before the Change of Control; (2) the level at which such  

 

   17    performance-based RSAs are reasonably on track to perform, as  determined by the Compensation Committee of the Company in its  sole discretion after reviewing the most recent Company forecast  and any other information provided by the Chief Financial Officer  or the Executive, if  the grant was made exactly one year or greater  than one year before the Change of Control; or (3) the level specified  by the terms of the Change of Control if the amount would be higher  that the payout specified in (1) or (2) above. For the avoidance of  doubt, the RSAs will not be treated as assumed in full if the nature  of the Change of Control renders the performance measures  practically inapplicable and/or unmeasurable.    (B) The Company shall cause the successor to continue to provide the  health benefits provided for in clause (ii).  (g) Timing of Payments.  Subject to Executive’s compliance with Sections 6(i)  and 9(a), and Executive’s continuing compliance with Section 7:  (i) The amount, if any, to be paid under Section 6(c)(i) shall be payable in  twenty-four (24) equal, monthly installments, commencing on the first  payroll date that is at least sixty (60) but not more than seventy-five (75)  days after Executive’s date of termination and continuing on a monthly  basis thereafter on the first payroll date of each ensuing calendar month;   (ii) The amount, if any, to be paid under Section 6(d)(i) shall be payable in a  lump sum cash payment on the first payroll date that is at least sixty (60)  but not more than seventy-five (75) days after the later of Executive’s date  of termination and the date of the Change of Control; provided, however,  that if the Change of Control does not constitute a change in control event  with respect to Executive as defined in Section 409A of the Code, then the  portion of such amount that is equal to the amount that would have been  paid under Section 6(c)(i) had the termination not been in connection with  a Change of Control, and that would have been subject to Section 409A of  the Code, shall be paid in installments in the same manner as provided in  Section 6(g)(i), and the amount equal to the difference between the amount  payable under Section 6(d)(i) and the aggregate amount payable under  Section 6(c)(i) and that is subject to Section 409A of the Code shall be paid  in a lump sum at the same time that the seventh (7th) monthly installment  is paid;  (iii) The amount, if any, to be paid under Sections 6(c)(v) or 6(d)(vi) shall be  added to the payments pursuant to Sections 6(g)(i) or 6(g)(ii), as applicable,  allocated proportionally according to the number of monthly installments  remaining at the time the amount is determined or in a lump sum payment  within thirty (30) days if such monthly installments have been completed.   In the event that no monthly installments were paid under Section 6(g)(ii),  the amount, if any, to be paid under Section 6(d)(vi) shall be made in a lump  

 

   18    sum payment at the same time that the single lump sum payment under  Section 6(g)(ii) is payable where the Change of Control constitutes a change  in control event as defined in Section 409A of the Code and as contemplated  under the first sentence of Section 6(g)(ii) without giving effect to the  proviso contained therein;   (iv) Payments and benefits owed, if any, under Section 6(c)(iii) hereof shall be  paid or provided within sixty (60) days following the date Executive’s  employment terminated; and  (v) Payments and benefits owed, if any, under Sections 6(d)(ii), (iii) or (iv)  hereof shall be paid or provided within 60 days following the later of the  date Executive’s employment terminated or the occurrence of the event  constituting a Change of Control.  Notwithstanding the foregoing, the timing of any amounts to be paid or provided under this  Section 6(g) is subject to compliance with Section 409A to the extent any of the payments or  benefits are considered non-qualified deferred compensation under Section 409A of the Code.  (h) No Further Compensation.  Notwithstanding any other provision of this  Agreement, the Annual Incentive Plan, the Stock Incentive Plan or any other benefit plan,  agreement or arrangement of the Company or Helen of Troy and its subsidiaries, the provisions of  this Section 6 exclusively shall govern Executive’s rights to payments upon termination of  employment with the Company and its affiliates, and except as expressly set forth in this Section 6,  Executive shall have no further right to any compensation or other benefits under this Agreement,  the Annual Incentive Plan, the Stock Incentive Plan, related award agreements or such other benefit  plans, agreements or arrangements.  Under no circumstances will any rights or awards of  Executive under the Annual Incentive Plan or the Stock Incentive Plan accelerate and vest upon  Executive’s termination, except as otherwise provided in this Section 6 or, if eligible, pursuant to  a Company retirement plan or policy (as described in Section 4(d)).  (i) Condition to Payment.  All payments and benefits due to Executive under  Sections 6(c) and 6(d) that are not otherwise required by any rule or regulation issued by any state  or federal governmental agency shall be contingent upon execution by Executive of a general  release of all claims to the maximum extent permitted by law against Helen of Troy, the Company  and their respective affiliates and their respective and former directors, employees and agents, in  such form and with such other usual and customary accompanying terms as may be determined by  the Board in its reasonable discretion; provided that such general release shall not require  Executive to waive  rights (A) to payments owed under this Section 6, (B) as a shareholder of the  Company, or (C) to any rights to indemnification he may have at the time of termination from  employment, subject to the terms and conditions thereof; and such general release shall not impose  new restrictions following termination on Executive’s competitive activities within the scope of  Section 7(b) except in accordance with this Agreement.  (j) No Mitigation or Offset.  In the event of any termination of employment under  Section 5, Executive shall be under no obligation to seek other employment and the Company will  

 

   19    have no right of offset with regard to any severance payment made under Section 6(c) (other than  Section 6(c)(iv)) or Section 6(d) (other than Section 6(d)(v)).  (k) Notwithstanding anything in the Agreement to the contrary, the Company and the  Executive mutually agree that any severance pay received under this Section 6 is intended, in part,  to be consideration for the non-competition provisions set forth in Section 7 of this Agreement.  7. Covenants and Confidential Information.  Executive acknowledges the  Company and Helen of Troy are relying on and expecting Executive’s continued commitment to  performance of his duties and responsibilities during the time when Executive is employed by the  Company under this Agreement.  Executive acknowledges and agrees that his responsibilities are  worldwide in scope and that, as a result, the geographic and other restrictions herein on Executive’s  ability to compete are fair and reasonable.  In light of such reliance and expectation on the part of  the Company and Helen of Troy, Executive agrees he will not:   (a) disclose, divulge, discuss, copy or otherwise use or suffer to be used in any manner,  in competition with, or contrary to the interests of, the Company, Helen of Troy or its subsidiaries,  any confidential information relating to the Company, Helen of Troy or any of its subsidiaries’  respective operations, properties or otherwise to its particular business or other trade secrets of the  Company, Helen of Troy or any of its subsidiaries, it being acknowledged by Executive that all  such information regarding the business of the Company, Helen of Troy or its subsidiaries  compiled or obtained by, or furnished to, Executive while Executive shall have been employed by  or associated with the Company, Helen of Troy or its subsidiaries is confidential information and  the exclusive property of Company, Helen of Troy or its subsidiaries, as the case may be; provided,  however, that the foregoing restrictions shall not apply to the extent that such information (A) is  obtainable in the public domain or known in the industry generally, (B) becomes obtainable in the  public domain or known in the industry generally, except by reason of the breach by Executive of  the terms hereof, or (C) is required to be disclosed by rule of law or by order of a court or  governmental body or agency.  (b) Beginning on the Effective Date and ending upon the conclusion of the twenty-four  (24) month period (or the duration permitted by law if shorter) immediately following the date of  termination of Executive’s employment with the Company and Helen of Troy for any reason (the  “Non-Compete Period”), Executive shall not, directly or indirectly:  (i) engage or invest in, own, manage, operate, finance, control, or participate  in the ownership, management, operation, financing or control of, be  employed by, associated with, or in any manner connected with, lend  Executive’s name or any similar name to, lend Executive’s credit to, or  render services or advice to, any business whose products or activities  compete in whole or in part with any of the products or activities sold or  engaged in, respectively, by the Company and Helen of Troy or its  subsidiaries during the Non-Compete Period, (a) anywhere in the United  States or (b) any country outside the United States in which the Company  and Helen of Troy or its subsidiaries are doing business or marketing its  services; provided, however, that Executive may purchase or otherwise  acquire up to (but not more than) five percent (5%) of any class of securities  

 

   20    of any enterprise (but without otherwise participating in the activities of  such enterprise) if such securities have been registered under Sections 12(b)  or (g) of the Exchange Act.  Executive further agrees that this covenant is  reasonable with respect to its duration, geographical area and  scope.  Executive understands and agrees that the scope of the Company  and Helen of Troy and its subsidiaries’ businesses and the geography of its  business under this Agreement may be amended as the such businesses  grow.  Notwithstanding anything in the Agreement to the contrary, in the  event the Executive is a director candidate for any business or non-profit  organization (“Organization”) that has any question about whether the  Organization may be a competing Organization, Executive shall inform the  Board of the opportunity at which time the Board shall either provide or  withhold a waiver of the foregoing non-compete restrictions with respect to  the opportunity and communicate its decision to the Executive within 10  days from Executive’s notice to the Board of such opportunity.   (ii) either for himself or any other person: (A) induce or attempt to induce any  employee of the Company or Helen of Troy or any of its subsidiaries to  leave the employ of the Company and Helen of Troy or any of its  subsidiaries, provided, however, that a general advertisement or solicitation  that is not directed specifically to any such employee shall not violate this  subsection; (B) in any way interfere with the relationship between the  Company, Helen of Troy or any of its subsidiaries and any of their  respective employees; (C) employ, or otherwise engage as an employee,  independent contractor, or otherwise, any employee of the Company, Helen  of Troy or its subsidiaries; or (D) induce or attempt to induce any customer,  supplier, licensee, or business relation of the Company, Helen of Troy or its  subsidiaries to cease doing business with the Company, Helen of Troy or its  subsidiaries, or in any way interfere with the relationship between any  customer, supplier, licensee or business relation of the Company, Helen of  Troy or its subsidiaries; or  (iii) either for himself or any other person, solicit the business of any person  known to Executive to be a customer of the Company, Helen of Troy or its  subsidiaries, whether or not Executive had personal contact with such  person, with respect to products or activities which compete in whole or in  part with the products or activities of the Company, Helen of Troy or its  subsidiaries.  (c) While the restrictive covenants under Section 7(b) are in effect, Executive agrees  to advise the Company and Helen of Troy of the identity of any employer of Executive within ten  (10) days after accepting any employment.  If Executive seeks other employment during the Non- Compete Period, Executive agrees to provide a copy of this Agreement to any prospective  employer within a reasonable period of time before accepting employment.  The Company and/or  Helen of Troy may serve notice upon each such employer that Executive is bound by this  Agreement and furnish each such employer with a copy of this Agreement or relevant portions  thereof.  

 

   21    (d) Executive and the Company agree, other than with regard to employees in the good  faith performance of Executive’s duties with the Company while employed by the Company, both  during the Term and after Executive’s employment with the Company terminates, not to  knowingly disparage the other party in any manner that is likely to be harmful to it or them or its  or their business, business reputation or personal reputation. With respect to the Company, party  includes the Company, its officers, directors, employees and agents.  This Section 7(d) shall not  be violated by statements from either party that are truthful, complete and made in good faith in  required response to legal process or governmental inquiry.   (e) Executive agrees that any breach of this Section 7 by Executive shall be deemed a  material breach of this Agreement.  Executive agrees and understands that the remedy at law for  any breach by him of this Section 7 would be inadequate and that the damages flowing from such  breach are not readily susceptible to being measured in monetary terms.  Accordingly, it is  acknowledged that, upon Executive’s violation of any provision of this Section 7, and  notwithstanding anything to the contrary in Section 9(l) of this Agreement, the Company, Helen  of Troy or its subsidiaries may be entitled to immediate injunctive relief and may obtain temporary  orders or other injunctive or provisional relief restraining any further breach in a court of  competent jurisdiction.  Nothing in this Section 7 shall be deemed to limit the Company, Helen of  Troy or any of its subsidiaries’ remedies at law or in equity for any breach by Executive of any of  the provisions of this Section 7 which may be pursued or availed of by the Company, Helen of  Troy or any of its subsidiaries.  Executive agrees that the provisions of this Section 7 shall be  enforceable and not impaired in any manner whatsoever as a result of a breach by the Company,  Helen of Troy or any of its subsidiaries of any of its obligations, if any, under this Agreement,  other than the obligations to pay salary, bonuses, and vested incentive payment awards.  Executive  agrees that the Company shall be entitled to the injunctive relief provided for herein by posting a  bond not to exceed $2,500.  (f) Executive acknowledges and agrees that the restrictions imposed by this Section 7  are reasonable with respect to subject matter, time period and geographic area.  If the final  judgment of a court of competent jurisdiction declares that any provision of this Section 7 is  invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining  provisions of this Section 7 are not affected or impaired in any way and the parties agree that the  court making such determination will have the power to limit the provision, to delete specific  words or phrases, or to replace any invalid, illegal or unenforceable provision with a provision that  is valid, legal and enforceable and that comes closest to expressing the intention of the invalid,  illegal or unenforceable provision, and this Agreement will be enforceable as so modified.  In the  event such court does not exercise the power granted to it in the prior sentence, the parties agree  to negotiate in good faith to replace such invalid, illegal and unenforceable provision with a valid,  legal and enforceable provision that achieves, to the greatest lawful extent under this Agreement,  the economic, business and other purposes of such invalid, illegal or unenforceable provision.  8. Withholding of Taxes.  The Company shall withhold from any amounts payable  under this Agreement all federal, state, local or other taxes as it shall be required legally to  withhold.  

 

   22    9. Miscellaneous.  (a) Deferred Compensation.  (i) Notwithstanding anything to the contrary in this Agreement, if Executive  is  a “specified employee” within the meaning of Section 409A the Code at the  time of Executive’s  termination of employment (other than due to death),  then the severance payable to Executive, if any, pursuant to this Agreement,  when considered together with any other severance payments or separation  benefits that are considered deferred compensation under Section 409A of  the Code (together, the “Deferred Compensation”) that is payable within the  first six (6) months following Executive’s termination of employment, will  be paid in a lump sum on the first payroll date that occurs on or after the  date six (6) months and one (1) day following the date of Executive’s  termination of employment.  All subsequent Deferred Compensation, if  any, will be payable in accordance with the payment schedule applicable to  each payment or benefit.  Notwithstanding anything herein to the contrary,  if Executive dies following his date of termination but prior to the six (6)  month anniversary of his date of termination, then any payments delayed in  accordance with this paragraph will be paid in a lump sum as soon as  administratively practicable (but not more than ninety (90) days) after the  date of Executive’s death and all other Deferred Compensation will be  payable in accordance with the payment schedule applicable to each  payment or benefit.  Each payment and benefit payable under this  Agreement is intended to constitute a separate payment for purposes of  Section 1.409A-2(b)(2) of the Treasury Regulations.  (ii) Deferred Compensation otherwise payable or provided pursuant to  Sections 6(c) or 6(d) shall be paid or provided only at the time of a  termination of Executive’s employment which constitutes a “separation  from service” within the meaning of Section 409A of the Code.  In addition,  to the extent a payment of Deferred Compensation payable pursuant to  Section 6(c) can be made (or begin to be made) during a period crossing  two (2) calendar years as a result of the condition contemplated under  Section 6(c) hereof, the payment of the Deferred Compensation shall be  made (or begin to be made) in the second calendar year.  (iii) The foregoing provisions are intended to comply with the requirements of  Section 409A of the Code so that none of the severance payments and  benefits to be provided hereunder will be subject to the additional tax  imposed under Section 409A of the Code, and any ambiguities herein will  be interpreted to so comply.  The Company and Executive agree to work  together in good faith to consider amendments to this Agreement and to take  such reasonable actions which are necessary, appropriate or desirable to  avoid imposition of any additional tax or income recognition prior to actual  payment to Executive under Section 409A of the Code.  

 

   23    (iv)  In the event that any benefits payable to Executive pursuant to this  Agreement, either alone or in conjunction with other compensatory  payments, (A) constitute “parachute payments” within the meaning of  Section 280G of the Code and (B) but for this Section 9(a)(iv) would be  subject to the excise tax imposed by Section 4999 of the Code or any  comparable successor provisions (the “Excise Tax”), then Executive’s  benefits payable hereunder shall be either (1) provided to Executive in full,  or (2) provided to Executive to such lesser extent as would result in no  portion of such benefits being subject to the Excise Tax, whichever of the  foregoing results in the receipt by Executive, on an after-Excise Tax basis,  of the more favorable outcome, notwithstanding that all or some portion of  such benefits may be taxable under the Excise Tax, in each case, as  calculated in the Company’s reasonable judgment.  In no event shall the  foregoing be interpreted or administered so as to result in an acceleration of  payment or further deferral of payment of any amounts (whether under this  Agreement or any other arrangement) in violation of Sections 409A or  457A of the Code.  Subject to the immediately preceding sentence, any  reduction pursuant to clause (2) shall be made by first reducing any cash  payments, next by reducing any non-cash benefits, next by reducing any  accelerated performance-based equity grants, and finally by reducing any  time-vested equity grants, in each case in the reverse order of payment.   (v) Notwithstanding anything to the contrary in this Agreement, this Agreement  and the benefits provided hereunder are intended to comply, to the extent  applicable thereto, with Code Sections 409A and 457A, as well as the  respective Treasury Regulations and other guidance promulgated or issued  thereunder, and the provisions of this Agreement shall be interpreted and  construed consistent with this intent.  If Executive or the Company believes,  at any time, that any benefit or right provided by this Agreement (including  any benefit or right under Section 6(f)) does not comply with Code  Section 457A, it shall promptly advise the other and shall negotiate  reasonably and in good faith to amend the terms of such benefits and rights  such that they comply with Code Section 457A (with the most limited  possible economic effect on Executive and on the Company, including  mitigating, in a manner agreeable to the Company and the Executive, any  excise tax and related interest to the Executive), which amendment may  include restructuring any equity award in a manner that complies with Code  Section 457A.  For the avoidance of doubt, the Company shall not be  obligated to reimburse or pay on behalf of Executive any excise tax and  related interest that may be imposed under Code Section 457A.  (vi) “Ineligible Compensation” means compensation relating to services  performed for the benefit or on behalf of Helen of Troy Limited as  determined by the Company in its sole discretion regardless of whether the  cost of such compensation is actually borne by Helen of Troy Limited.  To  the extent Executive performs such services for Helen of Troy Limited, as  well as for the Company, Helen of Troy and any subsidiary or affiliate of  

 

   24    Helen of Troy, the determination of what portion of such compensation  shall be considered Ineligible Compensation shall also be made by the  Company or Helen of Troy in its sole discretion.  (vii) If and to the extent required by Code Section 457A, and subject to Code  Section 409A, any Ineligible Compensation (and if applicable any earnings  and losses attributable thereto) shall be paid to Executive no later than the  last day of the twelfth (12th) month after the end of the taxable year of Helen  of Troy Limited during which the right to the payment of such Ineligible  Compensation is no longer subject to a “substantial risk of forfeiture” within  the meaning of Code Section 457A.  (b)  Representations and Covenants of Executive.  Executive represents and warrants  that he is not a party to any agreement, contract or understanding, whether employment or  otherwise, which would restrict or prohibit Executive from undertaking or performing employment  in accordance with the terms and conditions of this Agreement.  Executive further covenants that  he will not impair his ability to carry out his obligations under this Agreement by entering into any  agreement or in any way assisting others, directly or indirectly, to enter into any agreement which  will violate the confidentiality, non-solicitation and non-competition provisions of this Agreement.  Furthermore, the Executive represents that he has had the opportunity to consult with an attorney  prior to the execution of this Agreement.  (c) Decisions by Company or the Board.  Any powers or responsibilities granted to or  resting with the Board or the Board of Directors of the Company hereunder may be exercised by  a committee, appointed by the Board or the Board of Directors of the Company, as applicable, and  such committee, if appointed, shall have general responsibility for the administration and  interpretation of this Agreement.  (d) Entire Agreement; Conflicts with Other Agreements.  With respect to Executive’s  employment during the Term, this Agreement contains the entire understanding relating to the  subject matter hereof and supersedes any prior written or oral agreements, representations, and  understandings, whether written or not, if any, between the Company or any predecessor of the  Company and Executive, except as otherwise provided in Sections 4(b)(v) and (c)(vi).  The  foregoing will apply to the Prior Agreement at 11:59 p.m. on February 28, 2021.  In the event of  any conflict or inconsistency between the terms of any other agreement between the Company,  Helen of Troy, or any of their respective subsidiaries and Executive or any plan of Helen of Troy  or its subsidiaries and the terms hereof, the terms of this Agreement shall govern.  (e) Exclusivity of Representations.  The representations and warranties expressly made  in this Agreement are the exclusive representations and warranties made or relied upon by any  party in entering into this Agreement.  Company and Executive each hereby disclaim reliance on  any representation or warranty, express or implied, not expressly set forth herein with respect to  any matter whatsoever relating to the subject matter of this Agreement.    (f) Severability.  If any term, provision, covenant or restriction of this Agreement is  held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the  

 

   25    terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect  and shall in no way be affected, impaired or invalidated.  (g) Binding Effect and Assignment.  The rights and obligations of the Company under  this Agreement shall inure to the benefit of, and shall be binding on, the Company and its  successors and assigns, and the rights and obligations of Executive under this Agreement shall  inure to the benefit of, and shall be binding upon, Executive and (other than obligations to perform  services and to refrain from competition and disclosure of confidential information) his heirs,  personal representatives and assigns; provided that Executive may not assign any of his rights,  interests or obligations hereunder without the prior written consent of the Company or Helen of  Troy.  (h) Notices.  Unless otherwise provided in this Agreement, all notices, approvals, or  other communications purporting to affect the rights of the parties hereunder will be in writing and  will be delivered personally or by confirmed facsimile or certified mail, return receipt requested  or express courier to the other party at the address of the party set forth below or at such other  address as such party notifies to the other party in writing:  Company:  Helen of Troy Nevada Corporation  l Helen of Troy Plaza  El Paso, Texas 79912  Attn:  Board of Directors  With a copy to: Office of General Counsel  1 Helen of Troy Plaza  El Paso, Texas 79912  Executive:  Julien Mininberg  1 Helen of Troy Plaza  El Paso, Texas 79912  Any such notice or communication (i) sent by express courier will be considered delivered  or received the next business day; (ii) given personally will be considered delivered or received on  the date of such delivery; and (iii) sent by certified mail, return receipt requested, will be  considered delivered or received three (3) calendar days after the date of dispatch.  (i) Waiver.  The failure of either party to enforce any provision or provisions of this  Agreement shall not in any way be construed as a waiver of any such provision or provisions as to  any future violations thereof nor prevent that party thereafter from enforcing each and every other  provision of this Agreement.  The rights granted the parties in this Agreement are cumulative, and  the waiver of any single remedy shall not constitute a waiver of such party’s right to assert all other  legal remedies available to it under the circumstances.  (j) Amendments and Modifications.  This Agreement may not be modified, amended,  altered or supplemented except upon the execution and delivery of a written agreement executed  by the parties.  Notwithstanding the foregoing, nothing contained in this Agreement shall be  deemed to supersede or impair any rights of the Company, Helen of Troy and/or its subsidiaries  under any agreement which exists on the Effective Date between the Company, Helen of Troy  

 

   26    and/or its subsidiaries and Executive which relates to confidential information, trade secret or  inventions of the Company and to the extent there are any inconsistencies between this Agreement  and such other agreements, the Company, Helen of Troy and its subsidiaries may elect to determine  in its sole discretion which such provisions shall be applicable.  (k) Governing Law.  This Agreement, including all matters related to its validity,  enforceability, construction, interpretation and performance, all aspects of the relationship between  the parties contemplated hereby and any disputes or controversies arising therefrom or related  thereto, will be governed by and controlled by the laws of the State of Texas (without regard to its  conflicts-of-law provisions or principles).    (l) Resolution of Disputes.  For purposes of this Section 9(l), the term “Dispute” means  any claim or controversy that could be brought in a court of law that arises out of or relates in any  way to this Agreement or Executive’s employment by Company, including, without limitation, in  connection with any compensation award under the Stock Incentive Plan, the Annual Incentive  Plan or otherwise as made to Executive by Helen of Troy, the Company or any of its affiliates;  provided, however, a Dispute shall exclude claims for: (A) workers compensation benefits;  (B) unemployment compensation benefits; (C) benefits pursuant to any employee pension or  welfare benefit plan if that plan contains a specific grievance or other procedure for the resolution  of disputes under the plan; (D) relief obtained through a filing with a federal, state or local  administrative agency (e.g., the NLRB, EEOC); or (E) criminal activity to be reported to  appropriate public authorities.  To the extent permitted by law or as otherwise expressly provided,  Arbitration in accordance with the terms of this Section 9(1) is the exclusive means for resolution  of a Dispute.  (i) In the event of any Dispute, the “complaining party” shall give the “other  party” written notice of the Dispute.  The parties shall have ten (10) business  days to resolve the Dispute to their mutual satisfaction or, if unsuccessful,  an additional five (5) business days to deliver a request to the other party to  submit the Dispute to non-binding mediation with the assistance of a  neutral, unaffiliated mediator.  If such mediation request is accepted, the  mediation shall be completed in El Paso County, Texas, or such other  location to be agreed upon by the parties, within forty-five (45) days of  delivery of the mediation request.  Mediation fees shall be paid by  Company.    (ii) If mediation is unsuccessful, is not timely requested by any party, or is  refused by the non-requesting party, either party may then by written notice  file a demand for arbitration of the Dispute (“Arbitration Demand”) with  JAMS Alternative Dispute Resolution (“JAMS”) located in Dallas,  Texas.  Any Arbitration Demand must be filed by the initiating party with  JAMS and served on the other party within the limitations period that  governs the underlying substantive claim.  There shall be one arbitrator who  shall be jointly selected by the parties.  If the parties have not jointly agreed  upon an arbitrator within fourteen (14) calendar days of the filing of the  Arbitration Demand, either party may ask JAMS to furnish the parties with  a list of ten (10) names from which the parties shall jointly select an  

 

   27    arbitrator.  If the parties have not agreed upon an arbitrator within ten (10)  calendar days of the transmittal date of such list, then each party shall have  an additional five (5) calendar days in which to strike any names objected  to, number the remaining names in order of preference, and return the list  to JAMS, which shall then select an arbitrator.  The place of arbitration shall  be in El Paso County, Texas, unless otherwise agreed by the parties, and the  Arbitration shall be governed by JAMS Rules for Employment Arbitration.  (iii) The arbitration shall be governed by the Federal Arbitration Act, 9  U.S.C.  §§ 1-16.  By agreeing to arbitration, the parties hereto do not intend  to deprive a court of jurisdiction to issue a pre-arbitral injunction, or with  respect to other proceedings described in Sections 7(e) or (f) hereof (or  delay any such proceedings), or other order in aid of arbitration.    (iv) The arbitrator will set a limited time period and establish procedures  designed to reduce the cost and time for discovery while allowing the parties  an opportunity, adequate in the sole judgment of the arbitrator, to discover  relevant information from the opposing parties solely to the extent related  to the subject matter of the Dispute.  The arbitrator will rule upon motions  to compel or limit discovery and will have the authority to impose sanctions  to the same extent as a court of law or equity, should the arbitrator determine  that discovery was sought without reasonable justification or that discovery  was refused or objected to without reasonable justification.  The arbitration  hearing will take place within two hundred forty (240) days after the  appointment of the arbitrator.  The decision of the arbitrator will be final,  binding, and conclusive upon the parties, will be enforceable in a court of  law, and will not be appealable.  Such decision must be written and  supported by written findings of fact and conclusions which set forth the  award, judgment, decree or order awarded by the arbitrator.   (v) The foregoing arbitration provision applies to any Dispute under this  Section 9(l); provided, however, that any party to this Agreement may seek  from a court permitted under Section 9(m) such interim, provisional or  equitable relief necessary to protect the rights or property of that party,  including to equitably or provisionally enforce rights or resolve a dispute  relating to Sections 7(a) or 7(b) of this Agreement, or any similar provision  under the Stock Incentive Plan or any other plan, arrangement or agreement  between Executive and the Company.  A party does not waive any right or  remedy under this Section 9(l) by filing for such interim, provisional or  equitable relief as is provided by Sections 7(e) and (f) hereof, or as is  otherwise equitably available; moreover, any interim or provisional relief  obtained is to remain in effect until a further ruling on the interim or  provisional relief by the Arbitrator, or until the arbitration award is rendered  or the controversy is resolved.  (vi) Judgment upon the award rendered by the arbitrator may be entered in any  court having competent jurisdiction.   

 

   28    (m) Venue and Jurisdiction.  For claims or disputes that are not subject to Arbitration  under Section 9(l) hereof, such as for interim, provisional or equitable relief under Section 9(l)(v),  each party hereby consents and agrees that the state and federal courts seated in El Paso County,  Texas (and any courts from which appeals from judgments of that court are heard) shall have the  exclusive jurisdiction to determine, hear, and enforce such claims or disputes arising out of this  Agreement, or otherwise relating to Executive’s employment or separation therefrom, that may be  brought in a court of law.  Each party irrevocably and unconditionally waives any objection to  venue in such courts, including without limitation, any defense of an improper venue or an  inconvenient forum.    (n) Counterparts.  This Agreement may be executed in counterparts, each of which  shall be an original, but all of which together shall constitute one and the same agreement.  (o) Effect of Headings.  The Section headings herein are for convenience only and shall  not affect the construction or interpretation of this Agreement.  (p) Interpretation.  The definitions contained in this Agreement are applicable to the  singular as well as the plural forms of such terms and to the masculine as well as to the feminine  and neuter genders of such term.    (q) Assumption.  Helen of Troy will require any successor (whether direct or indirect,  by purchase, merger, acquisition of assets, consolidation or otherwise) to all or substantially all of  the business and/or assets of Helen of Troy to assume and agree to perform the duties and  obligations of Helen of Troy and the Company, as the case may be, under this Agreement in the  same manner and to the same extent that Helen of Troy and the Company would be required to  perform if no such succession had taken place.    [Signature Page Follows]     

 

   29        IN WITNESS WHEREOF, this Agreement has been executed on the day and year first  written above.    HELEN OF TROY NEVADA CORPORATION        By:    /s/ Tessa N. Judge    Tessa N. Judge   General Counsel      EXECUTIVE:         /s/ Julien R. Mininberg   Julien R. Mininberg, individually  The obligations of Helen of Troy Nevada Corporation to Executive hereunder are hereby  guaranteed by Helen of Troy Limited, a Bermuda company, and the undersigned subsidiary of  Helen of Troy Limited, a Barbados company.    HELEN OF TROY LIMITED,  a Bermuda company        By:   /s/ Timothy F. Meeker    Timothy F. Meeker   Chairman of the Board      HELEN OF TROY LIMITED,  a Barbados company        By:   /s/ Timothy F. Meeker    Timothy F. Meeker   Director

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