Document:

Exhibit 10.25

 

		[***]	Certain confidential information contained in this
document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

EXECUTION VERSION

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (the “Agreement”), is dated as of November 6, 2016, by and between Energous Corporation,
a Delaware corporation (the “Company”) and Dialog Semiconductor plc., a public limited company organized under
the laws of England and Wales (the “Investor”).

 

BACKGROUND

 

A.        The
Company and Dialog Semiconductor (UK) Ltd are concurrently herewith entering into that certain Strategic Alliance Agreement, of
even date herewith (the “Strategic Alliance Agreement”).

 

B.         The Company and the Investor are executing and delivering this Agreement in reliance upon the exemption
from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and/or Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States
Securities and Exchange Commission (the “SEC”) under the Securities Act.

 

C.         The
Investor wishes to purchase, and the Company wishes to sell and issue to the Investor, upon the terms and subject to the conditions
stated in this Agreement, (i) an aggregate of up to 763,552 shares of the Common Stock at a purchase price of $13.0967 per share
(as adjusted by any stock split, dividend or other distribution, recapitalization or similar event, the “Shares”)
and (ii) warrants to purchase an aggregate of up to 763,552 shares (subject to adjustment as described in the Warrants) of Common
Stock (the “Warrants”) in the form attached hereto as Exhibit B, which Warrants shall have an exercise
price equal to $17.0257 per share (subject to adjustment as described Warrants) and a term of exercise of three (3) years from
and after the Closing.

 

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 the Investor agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1        Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:

 

“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 144 under the Securities Act.

 

“Agreement”
has the meaning set forth in the Preamble.

 

     

     

    

 

“Applicable
Law” collectively means any and all laws, rules, regulations, and governmental, judicial or administrative decrees, orders
and decisions that are applicable to the Company or any of its Subsidiaries, this Agreement, the other Transaction Documents, including
the U.S. Gramm-Leach-Bliley Act of 1999, as amended, and the regulations promulgated under such Act, the U.S. Fair Credit Reporting
Act of 1970, as amended, or any regulations or guidelines promulgated under such Act, the U.S. Bank Secrecy Act, orders and guidelines
of the Office of Foreign Assets Control and the USA Patriot Act, and any other applicable data protection, privacy, consumer protection
or confidentiality laws or regulations (including the rules and regulations of any self-regulatory organization to which the Company
or its securities are subject, including The Nasdaq Stock Market or comparable securities trading market).

 

“Board”
has the meaning set forth in Section 2.2.

 

“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required
by Applicable Law to remain closed.

 

“Change of Control
of the Company” means a change in ownership or control of the Company effected through any of the following transactions:
(a) a merger, consolidation or other reorganization approved by the Company’s stockholders, unless securities representing
more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately
thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the Persons who beneficially
owned the Company’s outstanding voting securities immediately prior to such transaction; (b) a stockholder-approved sale,
transfer or other disposition of all or substantially all of the Company’s assets; or (c) the closing of any transaction
or series of transactions to which any Person or any group of Persons comprising a “group” within the meaning of Rule
13d-5(b)(1) of the Exchange Act becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 or the Exchange
Act) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the
total combined voting power of the Company’s securities (as measured in terms of the power to vote with respect to the election
of Board members) outstanding immediately after the consummation of such transaction or series of transactions, whether such transaction
involves a directly issuance from the Company or the acquisition of outstanding securities held by one or more of the Company’s
existing stockholders.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing Date”
means the date and time of the Closing and shall be a date no later than November 11, 2016 or such other date and time as is mutually
agreed to by the Company and the Investor.

 

“Common Stock”
means the common stock of the Company, par value $0.00001 per share.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Plans”
has the meaning set forth in Section 3.1(k).

 

    	 	-2-	 

     

    

 

“Disclosure
Letter” has the meaning set forth in the lead-in paragraph to Article III.

 

“Disclosure
Materials” has the meaning set forth in Section 3.1(h).

 

“Effectiveness
Period” has the meaning set forth in Section 6.1(b).

 

“Environmental
Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution
and the protection of the environment or the release of any materials into the environment, including but not limited to those
related to Hazardous Materials.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“GAAP”
has the meaning set forth in Section 3.1(h).

 

“Hazardous Material”
means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the
removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted,
prohibited or penalized by any applicable law, including, without limitation, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

 

“Indemnified
Party” has the meaning set forth in Section 6.4(c).

 

“Indemnifying
Party” has the meaning set forth in Section 6.4(c).

 

“Insolvent”
has the meaning set forth in Section 3.1(i).

 

“Investor”
has the meaning set forth in the Preamble.

 

“Investor Controlled
Entity” shall mean an entity of which the Investor collectively owns or controls, directly or indirectly, not less than
a majority of the outstanding voting power entitled to vote in the election of directors of such entity (or, in the event the entity
is not a corporation, the governing members, board or other similar body of such entity).

 

“Lien”
means, with respect to any asset, any pledge, lien, collateral assignment, security interest, encumbrance, right of first refusal,
mortgage, deed of trust, title retention, conditional sale or other security arrangement, or adverse claim of title.

 

“Losses”
means any and all losses, claims, damages, liabilities, settlement costs and expenses, including, without limitation, reasonable
attorneys’ fees.

 

    	 	-3-	 

     

    

 

“Material Adverse
Effect” means (i) a material adverse effect on the legality, validity, or enforceability of any of the Transaction
Documents, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company
and the Subsidiaries, taken as a whole on a consolidated basis, or (iii) a material adverse effect on the Company’s
ability to perform on a timely basis its obligations under any of the Transaction Documents.

 

“Material Permits”
has the meaning set forth in Section 3.1(m).

 

“Non-Voting
Convertible Securities” means any securities of the Company that are convertible into, exchangeable for or otherwise
exercisable to acquire Voting Stock of the Company, including convertible securities, warrants, rights or options to purchase Voting
Stock of the Company.

 

“Person”
means any individual, corporation, limited liability company, partnership, joint venture, trust, incorporated or unincorporated
association, joint stock company, unincorporated organization, a government or any department, subdivision or agency thereof, or
other entity of any kind.

 

“Preferred Stock”
means the preferred stock of the Company, par value $0.00001 per share.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, or a partial proceeding, such as a deposition),
whether commenced or threatened in writing.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the
Prospectus including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Purchase Price”
has the meaning set forth in Section 2.1.

 

“Registrable
Securities” means the Shares and the Warrant Shares issued or issuable pursuant to the Transaction Documents, together
with any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event
with respect to the foregoing.

 

“Registration
Statement” means each registration statement filed under Article VI, including (in each case) the Prospectus,
amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Regulation
D” has the meaning set forth in the Background.

 

    	 	-4-	 

     

    

 

“Rule 144,”
“Rule 144(c),” “Rule 415,” and “Rule 424” means Rule 144, Rule 144(c),
Rule 415 and Rule 424, respectively, promulgated by the SEC pursuant to the Securities Act, as such Rules may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“SEC”
has the meaning set forth in the Background.

 

“SEC Reports”
has the meaning set forth in Section 3.1(h).

 

“Securities”
means, collectively, the Shares purchased hereunder, the Warrants and the Warrant Shares.

 

“Securities
Act” has the meaning set forth in the Background.

 

“Shares”
has the meaning set forth in the Background.

 

“Subsidiary”
means any direct or indirect subsidiary of the Company.

 

“Trading Day”
means (a) any day on which the Securities are listed or quoted and traded on The Nasdaq Stock Market or comparable securities trading
market, or (b) if trading ceases to occur on any such market, any Business Day.

 

“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, and the Warrants.

 

“Transfer Agent”
means Wells Fargo or any successor transfer agent for the Company.

 

“Voting Period”
means the period beginning on the Closing Date and ending on the earlier of (i) the three year anniversary of the Closing Date
or (ii) the effective date of the termination of the Strategic Alliance Agreement.

 

“Voting Stock”
means shares of Common Stock and any other securities of the Company having the ordinary power to vote in the election of members
of the Board.

 

“Warrants”
has the meaning set forth in the Background.

 

“Warrant Shares”
means the shares of Common Stock to be issued upon exercise of the Warrants (as adjusted by any stock split, dividend or other
distribution, recapitalization or similar event).

 

“13D Group”
means any group of Persons that would be required under Section 13(d) of the Exchange Act, and the rules and regulations promulgated
thereunder, to file a statement on Schedule 13D or Schedule 13G with the SEC as a “person” within the meaning
of Section 13(d)(3) of the Exchange Act if such group beneficially owned Voting Stock representing more than 5% of any class
of Voting Stock then outstanding.

 

    	 	-5-	 

     

    

 

ARTICLE
II

PURCHASE AND SALE

 

2.1         Purchase
and Sale of the Shares and Warrants. Subject to the terms and conditions of this Agreement, the Investor hereby agrees to purchase,
and the Company hereby agrees to sell and issue to the Investor, the Shares and Warrants as set forth opposite the Investor’s
name on Exhibit A for the aggregate purchase price (the “Purchase Price”) set forth opposite the
Investor’s name on Exhibit A.

 

2.2         Closing.

 

(a)          At
the Closing, the Company shall deliver to the Investor (i) the Shares and Warrants, registered in the name of the Investor as indicated
on Exhibit A and (ii) a certificate, in the form set forth on Exhibit C, executed by the secretary of the
Company and dated as of the Closing Date, as to the Certificate of Incorporation, by-laws, foreign qualification, incumbency of
the Company’s officers and good standing of the Company and the resolutions adopted by the Company’s Board of Directors
(the “Board”) authorizing the transactions contemplated by the Transaction Documents.

 

(b)          At
the Closing, the Investor shall deliver to the Company the Purchase Price to the Company by wire transfer of immediately available
funds to an account specified by the Company in writing.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as disclosed in the SEC Reports filed since March 27, 2014 (but excluding all disclosures
contained in the exhibits to such SEC Reports and the schedules to such exhibits, excluding the “Risk Factors” section
contained in such SEC Reports, and excluding forward-looking statements identifying risks and uncertainties that are not historical
facts contained in such SEC Reports) or the Disclosure Letter delivered by the Company to the Investor concurrently with the execution
hereof (the “Disclosure Letter”), the Company hereby represents and warrants to the Investor as follows:

 

(a)          Subsidiaries.
The Company has no Subsidiaries other than those listed on Section 3.1(a) of the Disclosure Letter. Except as disclosed
in Section 3.1(a) of the Disclosure Letter, the Company owns, directly or indirectly, all of the capital stock or comparable
equity interests of each Subsidiary free and clear of any Lien and all the issued and outstanding shares of capital stock or comparable
equity interest of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights.

 

(b)          Organization
and Qualification. Each of the Company and its Subsidiaries is an entity duly organized, validly existing and in good standing
under the Applicable Laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite legal authority
to own or lease and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor
any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation or by-laws or
other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified to do 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, has not had and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	-6-	 

     

    

 

(c)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of the Company and no further consent or action is required
by the Company, its officers, the Board or its stockholders. The issuance of the Shares, the Warrants and the Warrant Shares do
not require the approval of the stockholders of the Company. Each of the Transaction Documents has been (or upon delivery will
be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and
binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by (i)
applicable bankruptcy, insolvency, reorganization or other Applicable Laws of general application relating to or affecting the
enforcement of creditors rights generally; and (ii) the effect of rules of law governing the availability of specific performance
and other equitable remedies.

 

(d)          No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents and the consummation by the
Company 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, by-laws or other organizational or charter
documents; (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, 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) 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) result in a violation of any Applicable Law, except, in the case of clause (ii) or (iii), to the extent that such conflict
or violation has not had and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give 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 or the consummation of the
transactions contemplated hereby and thereby, other than (i) the filings required to comply with the Company’s registration
obligations hereunder, (ii) the application(s) to The Nasdaq Stock Market for the listing of the shares of Common Stock purchased
pursuant to this Agreement and the Warrant Shares for trading thereon in the time and manner required thereby, and (iii) filings
required under applicable U.S. federal and state securities laws.

 

    	 	-7-	 

     

    

 

(f)          The
Securities. The Securities are duly authorized and, when issued and paid for in accordance with the Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and will not be subject to preemptive
rights, rights of first refusal, or similar rights of stockholders. The Company has reserved from its duly authorized capital stock
the maximum number of shares of Common Stock issuable pursuant to this Agreement and upon exercise of the Warrants.

 

(g)          Capitalization.
As of November 3, 2016, the aggregate number of shares and type of all authorized, issued and outstanding classes of capital stock,
options and other securities of the Company (whether or not presently convertible into or exercisable or exchangeable for shares
of capital stock of the Company) consists of (i) 50,000,000 authorized shares of Common Stock, with 19,130,892 shares of Common
Stock outstanding; (ii) 10,000,000 shares of Preferred Stock, none of which are outstanding; (iii) 1,683,462 shares of Common Stock,
on a diluted basis, reserved for issuance upon the exercise of outstanding warrants; and (iv) 4,676,508 shares of Common Stock,
reserved for issuance upon the exercise of outstanding employee stock options and/or restricted stock units. Since November 3,
2016, the Company has not issued or granted, as applicable, any capital stock, options or other securities of the Company (whether
or not presently convertible into or exercisable or exchangeable for shares of capital stock of the Company). All outstanding shares
of capital stock are duly authorized, validly issued, fully paid and nonassessable and have been issued in compliance with all
applicable securities laws and regulations. Except as disclosed in this Section 3.1(g) or in Section 3.1(g)
of the Disclosure Letter, the Company does not have outstanding any other options, warrants, 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 entered into any agreement giving any Person any right to subscribe for or acquire, any shares of Preferred Stock or Common
Stock, or securities or rights convertible or exchangeable into shares of Preferred Stock or Common Stock. There are no anti-dilution
or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security
holders) and the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities
to any Person (other than the Investor) and will not result in a right of any holder of securities to adjust the exercise, conversion,
exchange or reset price under such securities. To the knowledge of the Company, based solely on an examination of Schedules 13D
and Schedules 13G on file with the SEC, except pursuant to this Agreement, no Person or group of related Persons beneficially
owns (as determined pursuant to Rule 13d-3 under the Exchange Act) or has the right to acquire, by agreement with or by obligation
binding upon the Company, beneficial ownership of in excess of five percent (5%) of the outstanding Common Stock.

 

    	 	-8-	 

     

    

 

(h)          SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and the
Exchange Act since March 27, 2014, including pursuant to Sections 13(a) or 15(d) of the Exchange Act, 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. Such reports
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) of the Exchange Act, together with any materials filed or furnished by the Company under the Securities Act and the Exchange
Act, whether or not any such reports were required being collectively referred to herein as the “SEC Reports”
and, together with this Agreement and the Disclosure Letter, the “Disclosure Materials”. As of their respective
dates, the SEC Reports filed by the Company complied in all material respects with the requirements of the Securities Act and the
Exchange Act, as applicable, and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when
filed by the Company, 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 SEC 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 consolidated financial position of the Company and its consolidated Subsidiaries
taken as a whole 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. All material agreements to which the Company
or any Subsidiary is a party or to which the property or assets of the Company or any Subsidiary are subject that are required
to be filed with the SEC or identified on the SEC Reports are included as part of or identified in the SEC Reports. The Company
is eligible to use Form S-3 to register the resale of the Registrable Securities. The Company has not received any comments from
the SEC or the staff of the SEC Division of Corporation Finance on the Company’s SEC Reports (or any Company filings with
the SEC during the years ended December 31, 2014 and 2015) that remain unresolved.

 

(i)          No
Change. Except as otherwise disclosed in the SEC Reports, since March 27, 2014, (A) there has been no event, occurrence or
development that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect,
(B) the Company has not incurred any liabilities (contingent or otherwise) other than those arising from operations in the ordinary
course of business consistent with past practice, and (C) 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 pursuant to the Company’s stock repurchase plan described in the SEC Reports. The Company has
not taken any steps to seek protection pursuant to any bankruptcy law nor does the Company believe that its creditors intend to
initiate involuntary bankruptcy Proceedings or have any actual knowledge of any fact which would reasonably lead a creditor to
do so. The Company is not Insolvent (as hereinafter defined) as of the date hereof, and will not be Insolvent after giving effect
to the transactions contemplated hereby to occur at the applicable Closing. For purposes of this Section 3.1(i), “Insolvent”
means (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s
total indebtedness, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured or (iii) the Company has unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is proposed to be conducted.

 

    	 	-9-	 

     

    

 

(j)          Litigation.
Except as disclosed in Section 3.1(j) of the Disclosure Letter or the SEC Reports, there is no Proceeding pending or,
to the knowledge of the Company, threatened against the Company or any Subsidiary or any of its properties that has or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect. Neither the Company, nor, to the knowledge of
the Company, any director or officer thereof, is or has been the subject of any Proceeding 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 involving the Company or, to the knowledge of the Company,
any current or former director or officer of the Company. Except as disclosed in the Disclosure Letter, neither the Company nor
any Subsidiary is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. There is no Proceeding by the Company or any Subsidiary currently pending or which the Company or any Subsidiary intends
to initiate that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Since March
27, 2014, (i) the Common Stock has been designated for quotation on The Nasdaq Stock Market, (ii) trading in the Common Stock has
not been suspended by the SEC or The Nasdaq Stock Market and (iii) the Company has received no communication, written or oral,
from the SEC or The Nasdaq Stock Market regarding the suspension or delisting of the Common Stock.

 

(k)          Key
Employees. There are no currently effective employment contracts, offer letters containing economic terms, consulting agreements,
deferred compensation arrangements, bonus plans, incentive plans, profit sharing plans, retirement agreements or other employee
compensation plans or agreements (“Company Plans”) containing terms and conditions that would result in the
material payment to any employee or former employee of the Company or any of its Subsidiaries of any material money or other property
or the acceleration, vesting or provision of any other material rights or benefits to any employee or former employee of the Company
or any of its Subsidiaries by virtue of the issuance of the Securities pursuant to this Agreement (either alone or upon the occurrence
of any other event).

 

(l)           Registration
Rights and Voting Rights. Except as required pursuant to Article VI of this Agreement, the Company is presently not
under any obligation, and has not granted any rights, to register any of the Company’s presently outstanding securities or
any of its securities that may hereafter be issued that have not expired or been satisfied. To the knowledge of the Company, no
stockholder of the Company has entered into any agreement with respect to the voting of equity securities of the Company.

 

(m)         Compliance
with Laws; Permits. Neither the Company nor any of its Subsidiaries is, or since March 27, 2014 has been, in violation of any
Applicable Law in respect of the conduct of its business or the ownership of its properties, which violation has had or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company and its 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 (“Material Permits”), except where the
failure to possess such permits has not had and would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, and neither the Company nor any Subsidiary has received any notice of Proceedings relating to the revocation or
modification of any Material Permit, the revocation or modification of which has had or would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

    	 	-10-	 

     

    

 

(n)          Foreign
Assets Control Regulations, Etc.

 

(i) Neither
the sale of the Securities by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy
Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating thereto.

 

(ii)
Neither the Company nor any Subsidiary (i) is a Person described or designated in the Specially Designated Nationals
and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages
in any dealings or transactions with any such Person. The Company and its Subsidiaries are in compliance, in all material respects,
with the USA Patriot Act.

 

(iii) No part of
the proceeds from the sale of the Securities hereunder will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company.

 

(o)          Status
under Certain Statutes. Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of
1940, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.

 

(p)          Environmental
Matters.

 

(i) Neither
the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted
raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned,
leased or operated by any of them or other assets, alleging any damage to the environment or violation of any Environmental Laws,
except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

 

(ii) Neither the Company
nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental
Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned,
leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected
to result in a Material Adverse Effect.

 

(iii) Neither the Company
nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them
and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that
could reasonably be expected to result in a Material Adverse Effect.

 

(iv) All buildings
on all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental
Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.

 

    	 	-11-	 

     

    

 

(q)          Title
to Property; Leases. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually
or in the aggregate are material, including all such properties reflected in the most recent audited balance sheet or purported
to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary
course of business), in each case free and clear of Liens. All leases that individually or in the aggregate are material are valid
and subsisting and are in full force and effect in all material respects.

 

(r)          Offering
Valid. Assuming the accuracy of the representations and warranties of the Investor contained in Section 3.2 hereof,
the offer, sale and issuance of the Common Stock, the Warrants, and the Warrant Shares will be exempt from the registration requirements
of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification) under the
registration, permit or qualification requirements of all applicable state securities laws.

 

(s)          Private
Placement. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of
the Securities. Neither the Company nor any of its Affiliates nor, any Person acting on the Company’s behalf has, directly
or indirectly, at any time within the past six (6) months, made any offer or sale of any security or solicitation of any offer
to buy any security under circumstances that would (i) eliminate the availability of the exemption from registration under Regulation
D in connection with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of the
Securities pursuant to the Transaction Documents to be integrated with prior offerings by the Company for purposes of any Applicable
Law or stockholder approval provisions, including, without limitation, under the rules and regulations of The Nasdaq Stock Market,
in a manner which would require any stockholder approval.

 

(t)          Transfer
Taxes. On the Closing Date, all documentary, stamp, issue, stock transfer and other taxes (other than income taxes) required
to be paid in connection with the sale and transfer of the shares of Common Stock to be sold to the Investor hereunder will be,
or will have been, fully paid or provided for by the Company, and all Applicable Laws imposing such taxes will be or will have
been complied with fully.

 

(u)          Placement
Agent’s Fees. The Company has not employed any broker, investment banker, finder or other Person in a similar capacity
and has not incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no
broker, investment banker, finder or other Person in a similar capacity has acted, directly or indirectly, for the Company or any
of its Subsidiaries, in connection with this Agreement or the transactions contemplated hereby. The Company shall pay, and hold
the Investor harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees
and out-of-pocket expenses) arising in connection with any such claim for fees arising out of the issuance of the Securities pursuant
to this Agreement and the Transaction Documents.

 

    	 	-12-	 

     

    

 

(v)         Application
of Takeover Protections. Except as described in Section 3.1(v) of the Disclosure Letter, there is no control share
acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Company’s charter documents or the Applicable Laws of its state of incorporation or otherwise, that is
or could become applicable to the Investor as a result of the Investor 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 (including the issuance of the Warrant Shares) and the Investor’s ownership of the Securities.

 

3.2         Representations,
Warranties and Covenants of the Investor. The Investor hereby represents and warrants to the Company as follows:

 

(a)          Organization;
Authority. The Investor is an entity duly organized, validly existing and in good standing under the Applicable Laws of the
jurisdiction of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate
the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The purchase
by the Investor of the Securities hereunder has been duly authorized by all necessary corporate, partnership or other action on
the part of the Investor. This Agreement has been duly executed and delivered by the Investor and constitutes the valid and binding
obligation of the Investor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization or other Applicable Laws of general application relating to or affecting the enforcement of creditors
rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable remedies.
The Investor is not required to obtain any consent, waiver, authorization or order of, give 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 Investor of the Transaction Documents or the consummation of the transactions contemplated hereby
and thereby, other than filings required under applicable U.S. federal and state securities laws.

 

(b)          No
Public Sale or Distribution. The Investor is (i) acquiring the Common Stock and the Warrants and (ii) upon exercise of the
Warrants will acquire the Warrant Shares issuable upon exercise thereof, not with a view towards, or for resale in connection with,
the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from
such registration and in compliance with applicable federal and state securities laws, and the Investor does not have a present
arrangement to effect any distribution of the Securities to or through any person or entity; provided, however, that
by making the representations herein, the Investor does not agree to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the Securities Act.

 

(c)          Investor
Status. At the time the Investor was offered the Securities, it was, and at the date hereof it is, an “accredited investor”
as defined in Rule 501(a) under the Securities Act or a “qualified institutional buyer” as defined in Rule 144A(a)
under the Securities Act.

 

    	 	-13-	 

     

    

 

(d)          Experience
of the Investor. The Investor, 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. The Investor understands that it must bear the economic risk of this
investment in the Securities, and is able to bear such risk and is able to afford a complete loss of such investment.

 

(e)          Access
to Information. The Investor acknowledges that it has had access to the Disclosure Materials and information about the Company
and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment. No information, inquiry, or investigation conducted by or on behalf of the
Investor or its representatives or counsel shall modify, amend or affect the Investor’s right to rely on the truth, accuracy
and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction
Documents.

 

(f)          Restricted
Securities. The Investor understands that the Securities are characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act
only in certain limited circumstances. The Investor has been advised or is aware that it may be deemed to be an “affiliate”
of the Company within the meaning of the Securities Act following the execution of this Agreement.

 

(g)          Placement
Agent’s Fees. The Investor has not employed any broker, investment banker, finder or other Person in a similar capacity
or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no broker, investment
banker, finder or other Person in a similar capacity has acted, directly or indirectly, for the Company or any of its Subsidiaries,
in connection with this Agreement or the transactions contemplated hereby. The Investor shall pay, and hold the Company harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses)
arising in connection with any such claim for any such fees described in the preceding sentence arising out of the purchase of
the Securities pursuant to this Agreement.

 

(h)          Litigation.
There is no Proceeding pending or, to the Investor’s knowledge, threatened against the Investor or any subsidiary or any
of its properties which in any manner challenge or seek to prevent, enjoin, alter or materially delay the transactions contemplated
by this Agreement.

 

(i)           No
Ownership of Company Securities. Except as set in disclosure provided to the Company, as of the date of this Agreement, neither
the Investor, nor any Investor Controlled Entity or Affiliate of the Investor (other than any officer or director of the Investor)
beneficially owns any shares of Common Stock, or any other equity securities of the Company, or any options, warrants or other
rights to acquire equity securities of the Company or any other securities convertible into equity securities of the Company. Except
as set in disclosure provided to the Company, since March 27, 2014, neither the Investor, nor any Investor Controlled Entity, or
Affiliate of the Investor (other than any officer or director of the Investor), has purchased, sold, transferred, made any short
sale of, granted any option for the purchase of, or entered into any hedging or similar transaction with the same economic effect
as a sale of, any equity securities or any options, warrants or other rights to acquire equity securities of the Company.

 

    	 	-14-	 

     

    

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer
Restrictions.

 

(a)          The
Investor covenants that the Securities will only be disposed of pursuant to an effective registration statement under, and in compliance
with the requirements of, the Securities Act, to the Company or pursuant to an available exemption from the registration requirements
of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or to the Company, the Company may require the transferor to provide
to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration under the Securities Act. Notwithstanding the foregoing,
the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent, without any such
legal opinion, except to the extent that the Transfer Agent requests such legal opinion, any transfer of Securities by the Investor
to an Affiliate of the Investor, provided, that (i) the transferee certifies to the Company that it is an “accredited
investor,” as defined in Rule 501(a) under the Securities Act and (ii) the transferee agrees in writing to be subject to
the terms and conditions of this Agreement.

 

(b)          The
Investor agrees to the imprinting, so long as is required by this Section 4.1(b), of the following legends on any certificate
evidencing any of the Securities:

 

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

 

THESE SECURITIES ARE SUBJECT
TO TRANSFER RESTRICTIONS AS SET FORTH IN A CERTAIN SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF
THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.

 

    	 	-15-	 

     

    

 

Certificates evidencing
Securities shall not be required to contain the legends set forth above (i) following any sale of such Securities pursuant to a
Registration Statement covering the resale of the Securities is effective under the Securities Act; (ii) following any sale of
such Securities pursuant to Rule 144 if the holder provides the Company with a legal opinion reasonably acceptable to the Company
to the effect that the Securities have been sold under Rule 144; (iii) if the Securities are eligible for sale under Rule 144(b)(1);
or (iv) if the holder provides the Company with a legal opinion reasonably acceptable to the Company to the effect that the legend
is not required under applicable requirements of the Securities Act (including controlling judicial interpretations and pronouncements
issued by the staff of the SEC). The Company may not make any notation on its records or give instructions to the Transfer Agent
that enlarge the restrictions on transfer set forth in this Section 4.1(b) unless required by Applicable Law.

 

(c)          Notwithstanding
the foregoing provisions of this Section 4.1, during the Voting Period, Investor agrees that it shall not sell, transfer or dispose
of, directly or indirectly, any Securities, other than pursuant to an effective registration statement, pursuant to Rule 144, pursuant
to another available exemption from the registration requirements of the Securities Act in an unregistered block trade executed
on behalf of Investor, to the Company, in response to a Change of Control (or agreement related to a Change of Control), or a tender
or exchange offer for the Common Stock, as part of a merger or other transaction in which all outstanding shares of Common Stock
of the Company are converted into or exchanged for other consideration and is approved by the stockholders of the Company, or with
prior Board approval, unless the transferee agrees in writing to be bound by and subject to the terms and conditions of this Agreement.

 

4.2           Furnishing
of Information. During the time a Registration Statement is required to be effective, the Company covenants 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. Upon the request of the Investor, the Company shall deliver to the Investor
a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. As long as the
Investor owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish
to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the Investor to
sell the Securities under Rule 144. The Company further covenants that it will take such further action as the Investor may reasonably
request, all to the extent necessary from time to time to enable such Person to sell such Securities without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144.

 

4.3           Integration.
The Company shall not, and shall use its commercially reasonably efforts to ensure that no Affiliate thereof shall, 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 in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Investor or that would be integrated with the offer or sale of the Securities
such that approval of the stockholders of the Company would be required pursuant to the rules and regulations of The Nasdaq Stock
Market or a comparable securities trading market.

 

    	 	-16-	 

     

    

 

4.4           Reservation
of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to
the Transaction Documents in such amount as may be required to fulfill its obligations to issue Warrant Shares under the Transaction
Documents. In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy
its obligations to issue such Warrant Shares under the Transaction Documents, the Company shall promptly take such actions as may
be required to increase the number of authorized shares.

 

4.5           Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing of the Common Stock on The Nasdaq Stock
Market or a comparable securities trading market, and promptly following the Closing (but not later than the 30 day anniversary
of the Closing) to list the Shares and Warrant Shares on The Nasdaq Stock Market. The Company further agrees, if the Company applies
to have the Common Stock traded on any other securities trading market, it will include in such application the Shares and the
Warrant Shares, and will take such other action as is necessary or desirable in the reasonable opinion of the Investor to cause
the Shares and Warrant Shares to be listed on such other securities trading market as promptly as possible. The Company will take
all action reasonably necessary to continue the listing and trading of its Common Stock on The Nasdaq Stock Market or comparable
securities trading market and will comply in all material respects with the Company’s reporting, filing and other obligations
under the by-laws or rules of such market.

 

4.6           Anti-Takeover
Provisions. If any control share acquisition, business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s charter documents or the Applicable Laws of its state
of incorporation or otherwise, that is or would reasonably be expected to become applicable to the Investor as a result of the
Investor 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/or Investor’s exercise of Warrants and the
Investor’s ownership of the Securities, shall become applicable to the transactions contemplated by the Transaction Documents,
the Company and the Board shall use best efforts to grant such approvals and take such actions as are necessary so that the transactions
contemplated by the Transaction Documents may be consummated as promptly as practicable on the terms contemplated hereby and otherwise
act to minimize the effects of any such statute or regulation on the transactions contemplated hereby.

 

4.7           Notice
of Transactions. Notwithstanding anything to the contrary herein, including Section 4.9, the Company agrees that until the
effective date of the termination of the Strategic Alliance Agreement, [***]. 

 

* Confidential
Treatment Requested

    	 	-17-	 

     

    

 

4.8         Voting
Agreement.

 

(a)          During
the Voting Period, each of the Investor, any Investor Controlled Entity or any Affiliate of the Investor (other than any officer
or director of the Investor) (the “Investor Group”) shall:

 

(i)          vote
all Common Stock of the Company they hold in each vote of the Company’s stockholders in the manner recommended by the Board;
provided that this Section 4.8(a) shall not apply to proposals (i) seeking approvals of the Company’s stockholders with respect
to amendments to the Company’s Certificate of Incorporation or by-laws that directly conflict with the rights of the Investor
under this Agreement, (ii) that directly affect the Investor by naming the Investor specifically in such amendment or (iii) that
seek approval of, or are otherwise made in connection with, any transaction, offer or proposal that would, if consummated, result
in a Change of Control of the Company; and

 

(ii)         with
respect to votes of the Company’s stockholders relating to the election of members of the Board, vote all Common Stock of
the Company they hold in favor of individuals recommended by the Board for election to the Board.

 

(b)          During
the Voting Period, the Investor shall take such actions as may be reasonably necessary to ensure that any Common Stock held by
any member of the Investor Group are present for any vote of the Company’s stockholders for purposes of establishing a quorum
with respect to such vote.

 

4.9         Standstill.

 

(a)          The
Investor agrees that during the Voting Period, no member of the Investor Group shall directly or indirectly:

 

(i)          act,
alone or in concert with others, to seek to control the management, Board or policies of the Company;

 

(ii)         enter
into any joint venture, securities lending or option agreement, put or call, guarantee of loans, guarantee of profits or division
of losses or profits, contract, arrangement or understanding with any Person with respect to any securities of the Company or any
Subsidiary of the Company;

 

(iii)        acquire
additional shares of Voting Stock without the consent of the Board, except for the Warrant Shares;

 

(iv)        solicit
or participate in the solicitation of proxies with respect to any Voting Stock, or seek to advise or influence any person with
respect to the voting of any Voting Stock (other than as otherwise provided or contemplated by this Agreement);

 

    	 	-18-	 

     

    

 

(v)         deposit
any Voting Stock in a voting trust or, except as otherwise provided or contemplated herein, subject any Voting Stock to any arrangement
or agreement with any third party with respect to the voting of such Voting Stock;

 

(vi)        join
a 13D Group (other than a group comprising solely of the Investor and its Affiliates) for the purpose of acquiring, holding, voting
or disposing of Voting Stock or Non-Voting Convertible Securities;

 

(vii)       take
any action which would reasonably be expected to require the Company to make a public announcement regarding the possibility of
a business combination or merger involving the Company or any of its Subsidiaries;

 

(viii)      publically
disclose any intention, plan or arrangement inconsistent with the foregoing;

 

(ix)         knowingly
advise, assist or encourage any other Persons in connection with any of the foregoing; or

 

(x)          request
that the Company (or its respective directors, officers, affiliates, employees or agents), directly or indirectly, amend or waive
any provision of this Section 4.9(a) in a manner that requires public disclosure of such request.

 

Notwithstanding anything
to the contrary in this Agreement, (i) the prohibitions in this Article IV shall not affect the Investor’s ability
to hold the Shares, the Warrants and the Warrant Shares, (ii) the provisions of Section 4.8 and this Section 4.9 shall not prohibit
any member of the Investor Group from making or disclosing any offer or proposal on a confidential basis to the Board (and, if
the Board rejects that offer or proposal or fails to enter onto a binding agreement with respect to such offer or proposal within
30 days, making a public announcement regarding such offer or proposal) in connection with a potential business combination or
merger transaction with Investor that would result in a Change of Control of the Company, (iii) if a Change of Control of the Company
has occurred, then the provisions of Section 4.7, Section 4.8 and this Section 4.9 shall immediately terminate without further
force or effect and the Company and the Investor shall be released from compliance therewith, (iv) if (x) the Company has entered
into any agreement to effect a Change of Control of the Company or (y) a third party has made a public offer or proposal (including
a tender or exchange offer) or publicly announced an intention to make any such offer or proposal that would, if consummated, result
in a Change of Control of the Company, then, in each case in this clause (iv), the Company and the Investor shall be released from
the provisions of Section 4.7, Section 4.8 and this Section 4.9 for the pendency of such agreement, offer or proposal, and (v)
the provisions of Section 4.8 and this Section 4.9 shall not prohibit the Investor from disclosing the acquisition of the Shares,
Warrants and Warrant Shares hereunder on Form 13D or Form 13G, provided that the Investor shall give the Company prior notice of
such filing.

 

    	 	-19-	 

     

    

 

4.10       Lock-Up.
The Investor hereby agrees not to sell, transfer or otherwise dispose of, directly or indirectly, any Shares or Warrant Shares
or enter into any swap or other arrangement that transfers to another Person any of the economic consequences of ownership of Shares
or Warrant Shares until the six month anniversary of the Closing, except (i) to the Company, (ii) in response to a Change of Control
(or agreement related to a Change of Control), or a tender or exchange offer for the Common Stock (other than a tender or exchange
offer by any member of the Investor Group), (iii) as part of a merger or other transaction in which all outstanding shares of Common
Stock of the Company are converted into or exchanged for other consideration and is approved by the stockholders of the Company,
(iv) a transfer to an Affiliate of the Investor, provided such Affiliate agrees in writing to be bound by the terms of Section
4.1, Section 4.8, Section 4.9, and this Section 4.10, or (v) with prior Board approval. From and after the six month anniversary
of the Closing Date through the end of the Voting Period, the Investor hereby agrees not to sell, transfer or otherwise dispose
of Shares or Warrant Shares in any calendar week in an amount in excess of 1% of the total outstanding shares of the Company, other
than (i) in any transaction provided for in clauses (i) – (v) of the immediately preceding sentence or (ii) pursuant to an
underwritten offering or a block trade executed on behalf of Investor.

 

4.11       Press
Releases. No later than the Trading Day immediately following the execution of this Agreement, the Company will issue a press
release disclosing the transactions contemplated by the Agreement, and the Company shall file a Form 8-K relating to the Transaction
Documents. The Company shall provide the Investor with a reasonable opportunity to review and provide comments on the drafts of
such press release and Form 8-K. The Company and the Investor shall consult with each other in issuing any subsequent press releases
with respect to the transactions contemplated hereby, and the Company and the Investor shall not issue any such subsequent press
release or otherwise make any such public statement without the prior consent of the other party, which consent shall not be unreasonably
withheld, conditioned or delayed, except if such disclosure is required by Applicable Law, in which case the disclosing party shall
if possible promptly provide the other party with prior notice of such public statement or communication.

 

4.12       Antitrust
Filings. If the exercise of the Warrants requires any antitrust filings under Applicable Law, then the Investor and the Company
agree to make any such required filings and to cooperate with each other in making any such filings.

 

4.13       
Information Rights. Until such time that Investor has sold, transferred or otherwise disposed of, directly or indirectly, more
than 381,776 Shares, the Company will furnish, or cause to be furnished, to the Investor such additional information regarding
the Investor's investment in the Company as the Investor may reasonably request, including such information as is necessary or
appropriate to permit the Investor Group to comply on a timely basis with their financial reporting obligations in respect of the
Investor's investment in the Company. Any such information will be subject to the provisions of, and treated as “Confidential
Information” under, that certain strategic alliance agreement, dated as of November 6, 2016, between the Company and Investor.

 

ARTICLE
V

CONDITIONS PRECEDENT

 

5.1         Conditions
Precedent to the Obligations of the Investor. The obligation of the Investor to acquire Securities at the Closing is subject
to the satisfaction or waiver by the Investor, at the Closing, of each of the following conditions:

 

    	 	-20-	 

     

    

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material
respects (other than those representations and warranties that are qualified by materiality or Material Adverse Effect qualifiers,
which shall be true and correct in all respects) as of the date when made and as of the Closing as though made on and as of such
date.

 

(b)          Performance.
The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

 

(c)          No
Stockholder Approval Required. No approval on the part of the stockholders of the Company shall be required in connection with
the execution and delivery by the Company of this Agreement and the other Transaction Documents and the consummation of the transactions
to be performed by the Company contemplated by the Transaction Documents.

 

(d)          Regulatory
Approvals. All material approvals, authorizations and consents of any governmental entity or Person required to consummate
the transactions contemplated by this Agreement and the other Transaction Documents (including any such approvals, authorizations
and consents under applicable foreign antitrust laws) shall have been obtained and remain in full force and effect, and all statutory
waiting periods relating to such approvals, authorizations and consents shall have expired or been terminated.

 

(e)          Qualification
Under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required to be obtained prior
to the Closing under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance
of this Agreement and the other Transaction Documents, including, without limitation, the offer and sale of the Securities.

 

(f)           No
Litigation. No litigation, order, writ, injunction, judgment, decree or other claim shall be pending or, to the knowledge of
the Investor, threatened that questions the validity of this Agreement or the other Transaction Documents or the right of the Company
or the Investor to enter into such agreements or to consummate the transactions contemplated hereby and thereby.

 

(g)           No
Violation. No statute, rule, regulation, order, or interpretation shall have been enacted, entered or deemed applicable by
any domestic or foreign government or governmental or administrative agency or court which would make the transactions contemplated
by the Agreement or the other Transaction Documents illegal.

 

5.2         Conditions
Precedent to the Obligations of the Company. The obligation of the Company to sell the Securities at the Closing is subject
to the satisfaction or waiver by the Company, at the Closing, of each of the following conditions:

 

(a)           Representations
and Warranties. The representations and warranties of the Investor contained herein shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made on and as of such date.

 

    	 	-21-	 

     

    

 

(b)          Performance.
The Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by this Agreement and the other Transaction Documents to be performed, satisfied or complied with by the Investor at or
prior to the Closing.

 

(c)          Regulatory
Approvals. All material approvals, authorizations and consents of any governmental entity or Person required to consummate
the transactions contemplated by this Agreement and the other Transaction Documents (including any such approvals, authorizations
and consents under applicable foreign antitrust laws) shall have been obtained and remain in full force and effect, and all statutory
waiting periods relating to such approvals, authorizations and consents shall have expired or been terminated.

 

(d)          Qualification
Under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required to be obtained prior
to the Closing under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance
of this Agreement and the other Transaction Documents, including, without limitation, the offer and sale of the Securities.

 

(e)          No
Litigation. No litigation, order, writ, injunction, judgment, decree or other claim shall be pending or, to the knowledge of
the Company, threatened that questions the validity of this Agreement or the other Transaction Documents or the right of the Company
or the Investor to enter into such agreements or to consummate the transactions contemplated hereby and thereby.

 

(f)          No
Violation. No statute, rule, regulation, order, or interpretation shall have been enacted, entered or deemed applicable by
any domestic or foreign government or governmental or administrative agency or court which would make the transactions contemplated
by this Agreement or the other Transaction Documents illegal.

 

ARTICLE
VI

REGISTRATION RIGHTS

 

6.1         Registration
Statement.

 

(a)          Until
such time as the date that all Registrable Securities covered by such Registration Statement have been sold or can be sold publicly
under Rule 144 without volume limitation, upon written request by the Investor, the Company shall, as soon as reasonably practicable
following Investor’s request, prepare and file with the SEC a Registration Statement covering the resale of such portion
of the Registrable Securities requested by the Investor for an offering to be made on a continuous basis pursuant to Rule 415.
Each Registration Statement shall be on Form S-3 or any successor form thereto (except if the Company is not then eligible to register
for resale the Registrable Securities on Form S-3 or any successor form thereto, in which case such registration shall be on another
appropriate form in accordance with the Securities Act and the Exchange Act). The Company shall not be obligated to file and have
declared effective more than two (2) Registration Statements per year pursuant to this Article VI and each registration
hereunder shall include Registrable Securities consisting of not less than 100,000 shares of Common Stock (as adjusted by any stock
split, dividend or other distribution, recapitalization or similar event).

 

    	 	-22-	 

     

    

 

(b)          The
Company shall use its best efforts to cause each Registration Statement to be declared effective by the SEC as promptly as practical
after the filing thereof (but in no event sooner than six (6) months after the Closing Date of this Agreement), and, subject to
Section 6.1(e), shall use its best efforts to keep each Registration Statement continuously effective under the Securities
Act for all Registrable Securities for a period up to the earlier of seventy five (75) days or until the date that all Registrable
Securities covered by such Registration Statement have been sold or can be sold publicly under Rule 144 on a single day (the “Effectiveness
Period”).

 

(c)          The
Company shall notify the Investor in writing promptly (and in any event within two (2) Trading Days) after receiving notification
from the SEC that a Registration Statement has been declared effective.

 

(d)          The
Company may require the Investor to provide such information regarding the Investor as may be required under the Securities Act
to effect the registration contemplated hereunder.

 

(e)          If
at any time after a Registration Statement has become effective, the Company is engaged in any plan, proposal or agreement with
respect to any financing, acquisition, recapitalization, reorganization or other material transaction or development the public
disclosure of which would be detrimental to the Company, then the Company may direct that such request be delayed or that use of
the Prospectus contained in such Registration Statement be suspended, as applicable, for a period of up to forty-five (45) days.
The Company will notify the Investor of the delay or suspension. In the case of notice suspending an effective Registration Statement,
the Investor will immediately discontinue any sales of Registrable Securities pursuant to such Registration Statement until the
Investor has received copies of a supplemented or amended Prospectus or until the Investor is advised in writing by the Company
that the then-current Prospectus may be used and has received copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in such Prospectus. The Company may exercise the rights provided by this Section 6.1(e)
for an aggregate of ninety (90) days within any 365-day period.

 

(f)          The
Company will use its best efforts to cooperate with the Investor in the disposition of the Registrable Securities covered by a
Registration Statement.

 

6.2         Registration
Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)          (i) Prepare
and file with the SEC such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep each Registration Statement continuously effective, as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the SEC such additional Registration Statements in order to register
for resale under the Securities Act all of the Registrable Securities during the Effectiveness Period; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant
to Rule 424; (iii) respond as promptly as reasonably practical, to any comments received from the SEC with respect to each
Registration Statement or any amendment thereto; and (iv) comply in all material respects with the provisions of the Securities
Act and the Exchange Act applicable to the Company with respect to the disposition of all Registrable Securities covered by a Registration
Statement during the applicable period in accordance with the intended methods of disposition by the Investor thereof set forth
in a Registration Statement as so amended or in such Prospectus as so supplemented.

 

    	 	-23-	 

     

    

 

(b)          Notify
the Investor as promptly as reasonably practical, and confirm such notice in writing no later than two (2) Trading Days thereafter,
of any of the following events: (i) any Registration Statement or any post-effective amendment is declared effective; (ii)
the Company becomes aware that the SEC has issued any stop order suspending the effectiveness of any Registration Statement or
initiates any Proceedings for that purpose; (iii) the Company receives notice of any suspension of the qualification or exemption
from qualification of any Registrable Securities for sale in any jurisdiction, or the initiation or threat of any Proceeding for
such purpose; or (iv) the financial statements included in any Registration Statement become ineligible for inclusion therein or
any Registration Statement or Prospectus or other document contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

(c)          Use
its best efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of
any Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, as soon as possible.

 

(d)          If
requested by the Investor, promptly provide the Investor, without charge, at least one conformed copy of each Registration Statement
and each amendment thereto, including financial statements and schedules, and all exhibits to the extent requested by the Investor
(including those previously furnished or incorporated by reference) promptly after the filing of such documents with the SEC.

 

(e)          Promptly
deliver to the Investor, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and
each amendment or supplement thereto as the Investor may reasonably request. The Company hereby consents to the use of such Prospectus
and each amendment or supplement thereto by the Investor in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto to the extent permitted by federal and state securities laws
and regulations.

 

(f)          Prior
to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with the Investor in
connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as the Investor requests
in writing, to keep each such registration or qualification (or exemption therefrom) effective for so long as required, but not
to exceed the duration of the Effectiveness Period, and to do any and all other acts or things reasonably necessary or advisable
to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided,
however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it would not otherwise be required to qualify but for this
Section 6.2(f) or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise
so subject.

 

    	 	-24-	 

     

    

 

(g)          Upon
sale of such Registrable Securities pursuant to an effective Registration Statement, cooperate with the Investor to facilitate
the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee, which
certificates shall be free, to the extent permitted by this Agreement and under Applicable Law, of all restrictive legends, and
to enable such Registrable Securities to be in such denominations and registered in such names as any the Investor may reasonably
request.

 

(h)          Promptly
upon the occurrence of any event described in Section 6.2(b)(iv), prepare a supplement or amendment, including a post-effective
amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as thereafter delivered, neither such Registration Statement
nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(i)          Comply
with all rules and regulations of the SEC applicable to the Company in connection with the registration of the Securities.

 

(j)          The
Company shall comply with all applicable rules and regulations of the SEC under the Securities Act and the Exchange Act, including,
without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement or amendment thereof,
with the SEC pursuant to Rule 424 under the Securities Act, promptly inform the holders in writing if, at any time during the Effectiveness
Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the holders are required to
make available a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be
reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

6.3         Registration
Expenses. The Company shall pay all fees and expenses incident to the performance of or compliance with Article VI
of this Agreement, including, without limitation, (a) all registration and filing fees and expenses, including without limitation
those related to filings with the SEC, The Nasdaq Stock Market or comparable securities trading market and in connection with applicable
state securities or Blue Sky laws, (b) printing expenses (including without limitation expenses of printing certificates for Registrable
Securities), (c) messenger, telephone and delivery expenses incurred by the Company, (d) fees and disbursements of counsel for
the Company, (e) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, (f) reasonable fees and expenses of one special counsel for the Investor (not to exceed $25,000
per registration or $100,000 in the aggregate for all registrations pursuant to this Agreement); and (g) all listing fees to be
paid by the Company to The Nasdaq Stock Market or comparable securities trading market; provided, however, that the
Company shall not be responsible for underwriting discounts and commissions of the Investor.

 

    	 	-25-	 

     

    

 

6.4         Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless the Investor,
the officers, directors, partners, members, agents and employees of each of them, each Person who controls the Investor (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members,
agents and employees of each such controlling Person, to the fullest extent permitted by Applicable Law, from and against all Losses
arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement,
any Prospectus or any form of Company prospectus or in any amendment or supplement thereto or in any Company preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, provided, however, that the Company shall not be liable
in any such case to the extent that such Losses arise out of, or are based upon, an untrue statement or omission or alleged untrue
statement or omission made in such Registration Statement in reliance upon and in conformity with information that relates solely
to the Investor or the Investor’s proposed method of distribution of Registrable Securities and was provided by the Investor
in writing for use in such Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement
thereto.

 

(b)          Indemnification
by the Investor. The Investor shall, notwithstanding any termination of this Agreement, indemnify and hold harmless the Company,
its officers, directors, partners, members, agents and employees of each of them, each Person who controls the Company (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the officers, directors, partners, members,
agents and employees of each such controlling Person, to the fullest extent permitted by Applicable Law, from and against all Losses
arising out of any untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of Company
prospectus or in any amendment or supplement thereto or in any Company preliminary prospectus, or arising out of or relating to
any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were
made) not misleading, in each case, on the effective date thereof, but only to the extent that such untrue statement or omission
is based solely upon information regarding the Investor furnished to the Company by the Investor in writing expressly for use therein,
or to the extent that such information solely relates to the Investor or the Investor’s proposed method of distribution of
Registrable Securities and was provided by the Investor for use in such Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto. In no event shall the liability of the Investor under this Article VI
be greater in amount than the dollar amount of the net proceeds received by the Investor upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

 

    	 	-26-	 

     

    

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable fees and expenses
incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that such failure shall have materially and adversely prejudiced the Indemnifying Party. An Indemnified Party shall have the right
to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to
pay such fees and expenses; (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding; or
(iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party or that additional or different defenses may be available
to the Indemnified Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the
defense thereof and the reasonable fees and expenses of separate counsel shall be at the expense of the Indemnifying Party), it
being understood, however, that the Indemnifying Party shall not, in connection with any one such Proceeding (including separate
Proceedings that have been or will be consolidated before a single judge) be liable for the fees and expenses of more than one
separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent, unless such consent is unreasonably withheld or delayed. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding. All reasonable fees and expenses of the Indemnified Party
(including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding
in a manner not inconsistent with this Section 6.4(c)) shall be paid to the Indemnified Party, as incurred, within twenty
(20) Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party shall reimburse all
such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification
hereunder).

 

    	 	-27-	 

     

    

 

(d)          Contribution.
If a claim for indemnification under Section 6.4(a) or (b) is unavailable to an Indemnified Party (by reason of public
policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6.4(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 6.4(d) was
available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 6.4(d) were determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions
of this Section 6.4(d), the Investor shall not be required to contribute, in the aggregate, any amount in excess of the
amount by which the net proceeds actually received by the Investor from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that the Investor has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

6.5         Dispositions.
The Investor agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in
connection with sales of Registrable Securities pursuant to a Registration Statement and shall sell its Registrable Securities
in accordance with the Plan of Distribution set forth in the Prospectus. The Investor further agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Sections 6.2(b)(ii), (iii) or (iv),
the Investor will use best efforts to discontinue disposition of Registrable Securities under a Registration Statement until the
Investor is advised in writing by the Company that the use of the Prospectus, or amended Prospectus, as applicable, may be used.
The Investor acknowledges and agrees that the provisions of Section 4.9 of this Agreement shall apply with respect to any
proposed disposition pursuant to a Registration Statement filed pursuant to this Article VI. The Company may provide appropriate
stop orders to enforce the provisions of this paragraph.

 

6.6         [Reserved.]

 

6.7         Assignment
of Registration Rights. The registration rights under this Article VI of this Agreement with respect to applicable shares
transferred by Investor pursuant to this agreement shall be automatically transferred to any transferee of all or any portion of
Investor’s Registrable Securities, to the extent of such shares transferred, if (a) Investor agrees in writing with the transferee
or assignee to assign such rights and a copy of such agreement is furnished to the Company within a reasonable time after such
assignment; (b) the Company is furnished with written notice of (i) the name and address of such transferee and (ii) the securities
with respect to which such registration rights are being transferred; (c) following such transfer or assignment, the further disposition
of such securities by the transferee is restricted under this Agreement, the Securities Act and applicable state securities laws;
(d) at or before the time the Company receives the written notice contemplated by clause (b) of this sentence the transferee agrees
in writing to be bound by all of the provisions of this Agreement; and (e) such transfer shall have been made in accordance with
the applicable requirements of this Agreement.

 

    	 	-28-	 

     

    

 

ARTICLE
VII

MISCELLANEOUS

 

7.1         Termination.
This Agreement may be terminated by the Company or the Investor, by written notice to the other, if the Closing has not been consummated
by the third Business Day following the date of this Agreement; provided, that no such termination will affect the right
of any party to sue for any breach by the other party (or parties).

 

7.2         Fees
and Expenses. The Company shall pay all Transfer Agent fees, documentary, stamp, issue and transfer taxes and other taxes and
duties levied in connection with the sale, issuance and transfer of the Securities.

 

7.3         Entire
Agreement. The Transaction Documents, the Strategic Alliance Agreement and the non-disclosure agreement dated April 9, 2014
between the Company and the Investor, together with the exhibits and schedules thereto, contain the entire understanding of the
parties with respect to the subject matter hereof 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.

 

7.4         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 specified in this Section 7.4 prior to 6:30 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 specified in this Section 7.4 on a day that is not a Trading Day or later than 6:30 p.m. (New York City
time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally recognized overnight courier service,
or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers for such
notices and communications are as follows:

 

Notices for the Company:

 

Energous Corporation, Inc.

3590 North First Street, Suite 210

San Jose, CA 95134

Attention:  Brian Sereda

Telephone No.:  (408) 963-0200

 

    	 	-29-	 

     

    

 

With a copy to:

 

Fenwick & West LLP

801 California Street

Mountain View, CA 94041

Attention:  Mark Leahy and Horace Nash

Telephone No.:  (650) 988-8500

Facsimile No.:   (650) 938-5200

 

Notices for the Investor:

 

Dialog Semiconductor plc

100 Longwater Avenue

Green Park

Reading, RG2 6GP

Attn: Legal Department

Telephone No.: +44 (0) 1793 757700

 

7.5         Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Investor or in the case of a waiver, by the party against whom the waiver is to be effective. 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 either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

7.6         Construction.
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. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

7.7         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 shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Investor. Notwithstanding the foregoing, nothing in this Section 7.7 shall prevent any assignment of this Agreement
by the Company or the Investor that is deemed to occur in connection with a Change of Control of the Company. The Investor may
assign some or all of its rights hereunder in connection with transfer of any of its Securities without the consent of the Company,
in which event such assignee shall be deemed to be an Investor hereunder with respect to such assigned rights.

 

7.8         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 that
each Indemnified Party is an intended third party beneficiary of Section 6.4 and (in each case) may enforce the provisions
of such Section 6.4 directly against the parties with obligations thereunder.

 

    	 	-30-	 

     

    

 

7.9         Governing
Law; Venue; Service of Process; Waiver of Jury Trial. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THAT BODY OF LAWS PERTAINING TO CONFLICT OF LAWS. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-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 SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT AND THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER.
EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, 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 MANNER PERMITTED BY LAW. THE COMPANY AND INVESTOR HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

7.10       Survival.
The representations and warranties contained herein shall survive the Closing. The agreements and covenants contained herein shall
survive the Closing in accordance with their respective terms.

 

7.11       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 the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or email attachment, 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 email-attached signature page were an original thereof.

 

7.12       Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

    	 	-31-	 

     

    

 

7.13       Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall promptly issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, and the Investor will pay only those costs and expenses that are customarily charged
by or on behalf the Company or the Transfer Agent to any stockholder of the Company in connection therewith. The Company may require
the execution by the holder thereof of a customary lost certificate affidavit of that fact and a customary agreement to indemnify
and hold harmless the Company (and Transfer Agent, if applicable) for any losses in connection therewith.

 

7.14       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by Applicable Law, including recovery of damages,
the Investor and the Company will be entitled to seek 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 described in the
foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation (other than in connection
with any action for temporary restraining order) the defense that a remedy at law would be adequate.

 

7.15       Adjustments
in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common
Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares
of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing,
each reference in any Transaction Document to a number of shares or a price per share shall be amended to appropriately account
for such event.

 

[SIGNATURE PAGES TO
FOLLOW]

 

    	 	-32-	 

     

    

 

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.

 

	 	COMPANY:
	 	 
	 	ENERGOUS CORPORATION, INC.
	 	 
	 	By: /s/ Stephen R. Rizzone
	 	 
	 	Name: Stephen R. Rizzone
	 	 
	 	Title: President and Chief Executive Officer

 

Signature Page to Securities
Purchase Agreement

 

     

     

    

 

	 	INVESTOR:
	 	 
	 	DIALOG SEMICONDUCTOR PLC
	 	 
	 	By: /s/ Mark Tyndall
	 	 
	 	Name: Mark Tyndall
	 	 
	 	Title: SVP Corporate Development and Strategy

 

Signature Page to Securities
Purchase Agreement

 

     

     

    

 

Exhibits:

 

	A	Securities Purchased	 
	 	 	 
	B	Form of Warrant	 
	 	 	 
	C	Form of Secretary’s Certificate - Company	 

 

     

     

    

 

Exhibit
A

SECURITIES PURCHASED

 

	Investor	 	Common Stock	 	 	Warrants	 	 	Purchase Price	 
	Dialog Semiconductor plc.	 	 	763,552	 	 	 	763,552	 	 	$	10,000,011.48	 

 

     

     

    

 

Exhibit B

FORM OF WARRANT

 

     

     

    

 

NEITHER THESE SECURITIES NOR THE SECURITIES
FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES IN ACCORDANCE
WITH THE PURCHASE AGREEMENT (AS DEFINED BELOW).

 

ENERGOUS CORPORATION

 

WARRANT

 

	Warrant No. 002	Dated:  November [__], 2016

 

Energous Corporation,
a Delaware corporation (the “Company”), hereby certifies that, for value received, Dialog Semiconductor plc.,
a public limited company organized under the laws of England and Wales (“Dialog”), or its successors or assigns
(the “Holder”), is entitled to purchase from the Company up to a total of 763,552 shares of common stock, $.00001
par value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share”
and all such shares, the “Warrant Shares”) at an exercise price initially equal to $17.0257 per share (as adjusted
from time to time as provided in Section 9, the “Exercise Price”), at any time on or after date
which is six months and one day after the date hereof (the “Earliest Exercise Date”) and through and including
November [__], 2019 (the “Expiration Date”), subject to the following terms and conditions. This Warrant (this
“Warrant”) is issued pursuant to that certain Securities Purchase Agreement, dated as of the date hereof, by
and among the Company and the Investor named therein (as amended from time to time, the “Purchase Agreement”)
and that certain Strategic Alliance Agreement, dated as of the date hereof, by and among the Company and Dialog Semiconductor (UK)
Ltd. (the “Strategic Alliance Agreement”).

 

1.           Definitions.
In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings
given to such terms in the Purchase Agreement.

 

2.           Registration
of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the Holder of record hereof. The Company may deem and treat the registered Holder of this
Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary. The Warrant Shares shall be afforded the registration rights set forth in Article
VI of the Purchase Agreement.

 

     

     

    

 

3.           Exercise
and Duration of Warrant.

 

(a)          This
Warrant shall be exercisable by the Holder at any time and from time to time on or after the Earliest Exercise Date to and including
the Expiration Date. At 6:30 P.M., New York City time, on the Expiration Date, the portion of this Warrant not exercised prior
thereto shall be and become void and of no value.

 

(b)          The
Holder may exercise this Warrant by delivering to the Company an exercise notice, in the form attached hereto (the “Exercise
Notice”), appropriately completed and duly signed, and the date such items are delivered to the Company (as determined
in accordance with the notice provisions hereof) is an “Exercise Date.” The Holder shall be required to deliver
the original Warrant in order to effect an exercise hereunder unless the Holder shall deliver an affidavit of loss or such other
documentation reasonably requested by the Company in lieu of such original Warrant in connection with any such exercise. Execution
and delivery of the Exercise Notice in respect of less than all the Warrant Shares issuable upon exercise of this Warrant shall
have the same effect as cancellation of the original Warrant and issuance of a new warrant to purchase Common Stock, in substantially
the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the right to purchase the remaining
number of Warrant Shares.

 

(c)          This
Warrant shall not be exercisable through the making of a cash payment of the Exercise Price, but instead the Holder may only exercise
this Warrant by converting this Warrant into shares of Common Stock, in which event the Company will issue to the Holder the number
of shares of Common Stock equal to the amount resulting from the following equation:

 

X = (A - B) x C where:

A

 

	 	X  =	the number of shares of Common Stock issuable upon exercise pursuant to this Section 3(d);
	 	 	 
	 	A  =	the Current Market Price Per Common Share (as defined in Section 10) on the date on which the Holder delivers an Exercise Notice to the Company pursuant to Section 3(b);
	 	 	 
	 	B  =	the Exercise Price; and
	 	 	 
	 	C  =	the number of shares of Common Stock as to which this Warrant is being exercised pursuant to Section 3(b).

 

If the foregoing calculation results in
zero or a negative number, then no shares of Common Stock shall be issued upon exercise pursuant to this Section 3(d).

 

     

     

    

 

4.           Delivery
of Warrant Shares.

 

(a)          Upon
exercise of this Warrant, the Company shall promptly issue or cause to be issued and cause to be delivered to or upon the written
order of the Holder and in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such
exercise (i) free of restrictive legends if (x) sold under a registration statement covering the resale of the Warrant Shares and
naming the Holder as a selling stockholder or (y) if such shares are freely transferable without volume restrictions pursuant to
Rule 144 under the Securities Act, or (ii) if such shares are not freely transferable without volume restrictions pursuant
to Rule 144 under the Securities Act, such certificate will bear the legends set forth in Section 4.1(b) of the Purchase Agreement.
The Holder, or any Person so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record
of such Warrant Shares as of the Exercise Date. The Company shall, upon request of the Holder, use best efforts to deliver, or
to cause its transfer agent to deliver, Warrant Shares hereunder electronically through The Depository Trust Company or another
established clearing corporation performing similar functions.

 

(b)          This
Warrant is exercisable, either in its entirety or, from time to time, for a portion of the number of Warrant Shares. Upon surrender
of this Warrant following one or more partial exercises, the Company shall issue or cause to be issued, at its expense, a New Warrant
evidencing the right to purchase the remaining number of Warrant Shares.

 

(c)          The
Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation
or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit
the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock upon exercise of this Warrant as required pursuant to the terms hereof.

 

5.           Exchange,
Transfer or Assignment of Warrant.

 

(a)          Each
taker and holder of this Warrant, by taking or holding the same, consents and agrees that the registered holder hereof may be treated
by the Company and all other Persons dealing with this Warrant as the absolute owner hereof for any purpose and as the Person entitled
to exercise the rights represented hereby.

 

(b)          Subject
to compliance with applicable securities laws and the Purchase Agreement, the Holder shall be entitled, without obtaining the consent
of the Company, to assign and transfer this Warrant, at any time in whole or from time to time in part, to an Affiliate of the
Holder, provided such Affiliate agrees in writing to be bound by the terms of Section 4.1, Section 4.8, Section 4.9, and Section
4.10 of the Purchase Agreement. The Holder may not otherwise sell, assign or transfer this Warrant, in whole or part. Subject
to the preceding sentence, upon surrender of this Warrant to the Company, together with the form of warrant assignment attached
hereto (the “Warrant Assignment”) duly executed, the Company shall, as promptly as practicable and without charge,
execute and deliver a new Warrant in the name of the assignee or assignees named in such Warrant Assignment and, if the Holder’s
entire interest is not being assigned, in the name of the Holder and this Warrant shall promptly be canceled.

 

     

     

    

 

6.           Charges,
Taxes and Expenses. The Company shall pay any and all documentary, stamp, issue, transfer and other similar taxes that may
be payable upon the initial issuance of the Warrants hereunder. Issuance and delivery of certificates for shares of Common Stock
upon exercise of this Warrant shall be made without charge to the Holder for any documentary, stamp, issue, transfer and other
similar tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates
upon the exercise of the Warrants hereunder, all of which taxes and expenses shall be paid by the Company; provided, however,
that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance,
delivery or registration of any certificates for Warrant Shares or Warrant in a name other than that of the Holder.

 

7.           Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company, at no cost to Holder, shall issue or cause
to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a
New Warrant, but only upon receipt of an affidavit of such loss, theft or destruction and customary indemnity, if requested.

 

8.           Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (after giving
effect to the adjustments and restrictions of Section 9, if any). The Company covenants that all Warrant Shares so
issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof,
be duly and validly authorized, issued, fully paid and nonassessable and free and clear of all liens, security interests, charges
and other encumbrances or restrictions on sale, except to the extent created by the Holder. The Company will use reasonable commercial
efforts to take all such action to assure that such shares of Common Stock may be issued as provided herein without violation of
any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the
Common Stock may be listed, in each case, applicable to the Company.

 

9.           Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

(a)          Stock
Dividends, Splits and Combinations. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend
on its Common Stock or otherwise makes a distribution on its Common Stock that is payable in shares of Common Stock, (ii) 
subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause
(i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such dividend, distribution, subdivision or combination.

 

     

     

    

 

(b)          Fundamental
Transactions. If any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger
of the Company with another corporation, or sale, transfer or other disposition of all or substantially all of the Company’s
assets to another corporation shall be effected (all such transactions being hereinafter referred to as a “Fundamental
Transaction”), then the Company shall ensure that lawful and adequate provision shall be made whereby the Holder shall
thereafter have the right to purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu
of the Warrant Shares immediately theretofore issuable upon exercise of this Warrant, such shares of stock, securities or assets
as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant
Shares immediately theretofore issuable upon exercise of this Warrant, had such reorganization, reclassification, consolidation,
merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made with respect
to the rights and interests of the Holder to the end that the provisions hereof (including, without limitation, provision for adjustment
of the Exercise Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any share of stock,
securities or assets thereafter deliverable upon the exercise thereof. The Company shall not effect any such consolidation, merger,
sale, transfer or other disposition unless prior to or simultaneously with the consummation thereof the successor corporation (if
other than the Company) resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring such
assets or other appropriate corporation or entity shall assume the obligation to deliver to the Holder, at the last address of
the Holder appearing on the books of the Company, such shares of stock, securities or assets as, in accordance with the foregoing
provisions, the Holder may be entitled to purchase, and the other obligations under this Warrant. The provisions of this Section 9(b)
shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions,
each of which transactions shall also constitute a Fundamental Transaction.

 

(c)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of
Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased (as the case may be), proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the decreased or increased (as the case may be)
number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(d)          Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock. No adjustment in the
Exercise Price or the number of Warrant Shares issuable upon exercise of the Warrant, as the case may be, shall be required if
the amount of such adjustment would be less than 1/10th of a cent or 1/100th of a share, as the case may be; provided, however,
that any adjustments which by reason of this Section 9(d) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.

 

     

     

    

 

(e)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will
promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail
the facts upon which such adjustment is based. Upon any such occurrence and/or otherwise upon written request by or on behalf of
the Holder, the Company will promptly deliver a copy of each such certificate to the Holder and to the Transfer Agent.

 

(f)          Notice
of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property
in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any
capital stock of the Company, (ii) enters into any agreement contemplating, or solicits stockholder approval for, any Fundamental
Transaction or Change of Control or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of
the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction,
including the effect on the Exercise Price and the number, kind or class of securities or other property issuable upon exercise
of this Warrant, at least fifteen calendar days prior to the applicable record or effective date on which a Person would need to
hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably
necessary to facilitate the exercise of the Warrant pursuant to Section 3(b) (which exercise may be conditioned upon the
occurrence of such event); provided, however, that the failure to deliver such notice or any defect therein shall
not affect the validity of the corporate action required to be described in such notice.

 

10.          Fractional
Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this
Warrant. If any fraction of a Warrant Share would, except for the provisions of this Section 10, be issuable upon exercise
of this Warrant, then the number of Warrant Shares to be issued will be rounded down to the nearest whole share.

 

11.          Notices.
Any and all notices or other communications or deliveries hereunder (including without limitation any Exercise Notice) shall be
in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in the Purchase Agreement prior to 6:30 p.m. (New York City time)
on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in the Purchase Agreement on a day that is not a Trading Day or later than 6:30 p.m.
(New York City time) on any Trading Day, (iii) the Trading Day following the date of delivery to the courier service, if sent
by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices or communications shall be as set forth in the Purchase Agreement.

 

     

     

    

 

12.          Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the
Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a
successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice
of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register.

 

13.          Miscellaneous.

 

(a)          The
Company shall not, by amendment of its Certificate of Incorporation or Bylaws, or through any reorganization, transfer of assets,
consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out
all the provisions of this Warrant. Without limiting the generality of the foregoing, the Company (i) will not increase the
par value of any Warrant Shares above the amount payable therefor on such exercise and (ii) will not, and will not permit
its transfer agent to, close its stockholder books or records in any manner which interferes with the timely exercise of this Warrant.

 

(b)          GOVERNING
LAW; VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THAT BODY OF LAWS PERTAINING TO CONFLICT OF LAWS. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-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 SUIT, ACTION OR PROCEEDING,
ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT AND THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER.
EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, 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 MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

 

     

     

    

 

(c)          The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

 

(d)          In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(e)          No
course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of
such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate
on the Expiration Date.

 

(f)          No
provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant or purchase Warrant Shares, and
no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors
of the Company.

 

(g)          The
Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

 

(h)          Any
term of this Warrant may be amended and the observance of any term of this Warrant may be waived with the written consent of the
Company and the Holder.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	ENERGOUS CORPORATION
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to exercise
the right to purchase shares of Common Stock under the foregoing Warrant)

 

To: Energous Corporation

 

The undersigned is the Holder of Warrant
No. _______ (the “Warrant”) issued by Energous Corporation, a Delaware corporation (the “Company”).
Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

 

		1.	The Warrant is currently exercisable to purchase a total
of ______________ Warrant Shares.

 

		2.	The undersigned Holder hereby exercises its right to
purchase _________________ Warrant Shares pursuant to the Warrant.

 

		3.	Following this exercise, the Warrant shall be exercisable
to purchase a total of ______________ Warrant Shares.

 

	Dated:  ____________________, ______	Name of Holder:
	 	 
	 	(Print)	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

     

     

    

 

FORM OF WARRANT ASSIGNMENT

 

Dated ________________, _____

 

FOR VALUE RECEIVED, _______________________
hereby sells, assigns and

 

transfers unto _____________________________
(the “Assignee”),

 

(please type or print in block letters)

 

	 
	(insert address)

 

its right to purchase up to ______________ shares of Common
Stock represented by this Warrant and does hereby irrevocably constitute and appoint _______________________ Attorney, to transfer
the same on the books of the Company, with full power of substitution in the premises.

 

	 	Signature:	 	 

 

     

     

    

 

EXHIBIT C

FORM OF SECRETARY’S CERTIFICATE - COMPANY

 

     

     

    

 

Energous Corporation

Secretary’s Certificate

 

I, Brian Sereda, certify
that I am the Secretary of Energous Corporation, a Delaware corporation (the “Company”), and that, as such,
I am authorized to execute this certificate on behalf of the Company and in connection with that certain Securities Purchase Agreement,
dated as of November 6, 2016 (the “Purchase Agreement”), by and among the Company and the Investor named therein
(the “Investor”), and do hereby further certify that:

 

1.   Attached
hereto as Exhibit A is a true and complete copy of the Second Amended and Restated Certificate of Incorporation of the Company
filed with the Secretary of State of the State of Delaware (the “Certificate of Incorporation”), as amended
by that Certificate of Amendment dated March 26, 2016; no other amendments to the Certificate of Incorporation have been adopted,
the Company has not filed any amendments to the Certificate of Incorporation with the Secretary of State of the State of Delaware,
and no action has been taken by the Company, its shareholders, directors or officers in contemplation of the filing of any such
amendment or other document; the Certificate of Incorporation remains in full force and effect on the date hereof;

 

2.   Attached
hereto as Exhibit B is a certificate of good standing certified by the Secretary of State of the State of Delaware;

 

3.   Attached
hereto as Exhibit C is a certificate of foreign qualification certified by the Secretary of State of the State of California;

 

4.   Attached
hereto as Exhibit D is a true and complete copy of the By-laws of the Company; such By-laws have not been amended and are
in full force and effect as of the date hereof;

 

5.   Attached
hereto as Exhibit E are true and complete copies of the resolutions adopted by the Board of Directors of the Company, either
at a meeting or meetings properly held or by the unanimous written consent of the Board of Directors, relating to the issuance,
offering and sale of the shares of the Company’s common stock (the “Common Stock”) and the warrants to
purchase shares of Common Stock (the “Warrants”) pursuant to the Purchase Agreement; all of such resolutions
were duly adopted, have not been amended, modified or rescinded and remain in full force and effect; and such resolutions are the
only resolutions adopted by the Board of Directors with respect to the issuance, offering and sale of the Common Stock and Warrants
pursuant to the Purchase Agreement;

 

6.   Attached
hereto as Exhibit F is a true and complete copy of an incumbency certificate of the Company’s officers.

 

[Signature page follows]

 

     

     

    

 

In witness whereof,
I have hereunto signed my name this _____ day of November, 2016.

 

	 	By:	 	 
	 	Brian Sereda, Secretary

 

     

     

    

 

Exhibit A

Certificate of Incorporation

 

     

     

    

 

Exhibit B

Delaware Good Standing

 

     

     

    

 

Exhibit C

Foreign Qualification

 

     

     

    

 

Exhibit D

By-laws

 

     

     

    

 

Exhibit E

Board of Director Resolutions

 

     

     

    

 

Exhibit F

Incumbency Certificate

 

The undersigned individuals of Energous
Corporation, a Delaware corporation (the “Corporation”), are designated as appropriate parties with the power and authority
to enter into contracts, agreements and to provide written directions pertaining to services associated with stock transfer and
registrar needs:

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	Stephen R. Rizzone	 	President and Chief Executive Officer	 	 
	 	 	 	 	 
	Brian Sereda	 	Chief Financial Officer and Secretary	 	 

 

IN WITNESS WHEREOF I have hereunto set
my hand and the Corporate Seal of the Corporation this __ day of November, 2016.

 

	 	 	 
	 	Name: Brian Sereda
	 	Title:  SecretaryExhibit

Exhibit 10.8

CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT
This AGREEMENT (“Separation Agreement”) made this January 29, 2017 (the “Effective Date”), by and between Sterling Jewelers Inc., a Delaware corporation (including its successors and assigns, the “Company”), and Ed Hrabak (the “Employee”).
WHEREAS, the Company and Employee entered into that certain Termination Protection Agreement, effective October 15, 2015 (“TPA”);
WHEREAS, pursuant to the terms and conditions of the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”), the Employee was granted the following equity and equity-based awards, all or a portion of which are expected to remain unvested as of the Termination Date (defined below): (i) restricted shares of Signet pursuant to Time-Based Restricted Stock Award Agreements dated as of May 8, 2014, July 16, 2014, April 27, 2015 and April 25, 2016 (together, the “Restricted Stock Awards”) and (ii) performance-based vesting restricted stock units of Signet pursuant to Performance-Based Restricted Stock Unit Award Agreements dated as of May 8, 2014, July 16, 2014, April 27, 2015 and April 25, 2016 (the “RSU Awards” and, together with the Restricted Stock Agreements, the “Equity Awards”);
WHEREAS, the Employee gave notice of his intention to resign from the position of Chief Operations Officer of Signet Jewelers Limited and its subsidiaries (the “Signet Group”);
WHEREAS, the Company desires to continue to employ the Employee and the Employee has agreed to continue to be employed by the Company through the Termination Date; and
WHEREAS, the Employee and the Company both agree that the Employee’s employment with the Company and its subsidiaries and affiliates will terminate effective as of the Termination Date or otherwise pursuant to the terms and conditions of this Separation Agreement.
NOW, THEREFORE, in consideration of such services and the mutual covenants and promises herein contained, the Company and the Employee hereby agree as follows:
1.Resignation.  The Employee acknowledges that on July 17, 2017 or, if earlier, the date on which the Employee’s employment is terminated by the Company without Cause (as defined below), as determined by the Company, or due to the Employee’s death or Disability (as defined below) (such date, the “Termination Date” and such termination, a “Qualifying Termination”) the Employee will immediately be deemed to resign, and shall resign from and/or be removed from the Employee’s position, Chief Operations Officer of the Signet Group, and from all offices and directorships held by the Employee in the Company or any of its subsidiaries or affiliates.  The Employee agrees to execute any documentation presented by the Company to effectuate all such resignations and/or removals 

from such offices and/or directorships held by the Employee. The Employee acknowledges and agrees that until the Termination Date the Employee will continue to perform such duties as may be assigned from time to time by the Chief Executive Officer of the Signet Group or such other officer designated by the Chief Executive Officer of the Signet Group. For purposes of the Separation Agreement, “Cause” shall mean (A) fraud, embezzlement, gross insubordination or any act of moral turpitude or misconduct, in each case, on the part of the Employee; (B) conviction of or the entry of a plea of nolo contendere by the Employee for any felony; or (C) (x) a material breach by the Employee of Employee’s duties, responsibilities or obligations under this Separation Agreement, or (y) the willful failure or refusal by the Employee to perform and discharge a specific lawful directive issued to Employee by the Board of Directors of Signet Jewelers Limited (the “Board”) within a reasonable period of time, not to be less than five (5) business days, following written notice thereof to the Employee by the Company or the Board. For purposes of the Separation Agreement, “Disability” shall mean any physical or mental disability that renders the Employee incapable of performing the services required of the Employee for any period or periods aggregating six months during any twelve- month period and for purposes of the foregoing, the Employee’s physical or mental disability shall be determined in accordance with any disability plan of or applicable to the Company that is then in effect. For the avoidance of doubt, in the event Employee’s employment terminates other than in a Qualifying Termination, the Employee will immediately be deemed to resign, and shall resign from and/or be removed from the Employee’s position, Chief Operations Officer of the Signet Group, and from all offices and directorships held by the Employee in the Company or any of its subsidiaries or affiliates.
2.Termination.
(a)    Accrued Benefits. Employee shall be entitled to receive: (i) base salary and accrued and unused vacation through the date of termination of employment in accordance with the Company’s normal payroll practices, (ii) any annual bonus or long-term incentive plan payment that has been earned by the Employee for a completed fiscal year (or with respect to a long-term incentive plan payment, a completed performance cycle) ending prior to the date of termination of employment but which remains unpaid as of such date payable in accordance with the applicable plan, and (iii) any vested benefits to which Employee is entitled under the employee benefit plans of the Company, payable pursuant to the terms and conditions of such benefit plans.     
(b)    Termination Payments.  Subject to the Employee’s timely execution, delivery and non-revocation of a Release (as described in Section 2(c) below) following a Qualifying Termination on the Termination Date, and continued compliance with Sections 5, 6, 7, 8 and 9 below, the Employee shall be entitled to receive the following payments and benefits:  
(i)    continued payment of the Employee’s annual base pay in effect on the Termination Date from the Termination Date until March 15, 2018 (the 

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“Severance Period”), less applicable withholding taxes, paid in accordance with the Company’s payroll practices; provided that, the first payment shall be paid as part of the first full payroll cycle following the forty-fifth (45th) day after the Termination Date and shall include payments of any amounts that would be due prior to such commencement date (such date, the “Payment Commencement Date”).     
(ii)    a lump sum amount equal to the annual bonus the Employee would have otherwise received for fiscal year 2018, based on actual performance, payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of fiscal year 2018.
(iii)    a taxable cash payment equal to the monthly employer contribution to the Company’s group health coverage premium for an active employee with the same level of coverage as Employee had on the Termination Date for the Severance Period, with the first payment to be made on the Payment Commencement Date and the remaining payments monthly thereafter for the duration of the Severance Period.
(iv)    for purposes of the Employee’s Equity Awards, on the Termination Date the vesting of such Equity Awards shall be calculated as if Employee’s employment terminated on March 15, 2018 and such termination of employment was due to “Retirement” (as such term is defined in the Equity Awards) and Employee shall remain subject to all terms and conditions set forth in the Omnibus Plan and Equity Awards.
If the Employee participated in direct deposit as of the Termination Date, the Employee’s payments in Sections 2(b)(i)-(iii) will be direct deposited.  If the Employee did not participate in direct deposit, the Employee will be issued a live check to the Employee’s last reported home address on file with the Company.  The termination payments and benefits described in this Section 2(b)(i)-(iv) will be reduced to cover any outstanding financial obligations the Employee owes to the Company as of the Termination Date, to the extent permissible under law, and without the incurrence of additional tax obligations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively, “Section 409A”). 
(c)    The Employee’s entitlement to the payments and benefits set forth in Section 2(b) above shall be subject to and contingent upon the Employee’s execution and delivery to the Company of a general release and waiver of claims in the form attached hereto as Exhibit A (the “Release”) on or after the Termination Date and such Release becoming irrevocable within twenty-nine (29) days following the Termination Date.  For the avoidance of doubt, the Employee shall forfeit the payments and benefits set forth in Section 2(b) if the Release has not been executed, delivered to the Company and become irrevocable within such twenty-nine (29) day period.
3.Sole Payments and Benefits.  The termination payments and benefits set forth in Section 2 shall be the sole and exclusive payments and benefits to which the Employee shall be entitled in respect of the Employee’s termination of employment with the Company.   

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4.No Long-Term Incentive Plan Grants or Merit Increase.  The Employee acknowledges and agrees that (i) he is not entitled to any future equity award grants under the Omnibus Plan or otherwise and (ii) he is not eligible for any future merit increase with respect to base salary.
5.Restrictive Covenants.  
(a)During the term of the Employee’s employment with the Company or any of its subsidiaries or affiliates and for all time thereafter, the Employee shall keep secret and retain in strictest confidence and not divulge, disclose, discuss, copy or otherwise use or suffer to be used in any manner, except in connection with the Business of the Company and of any of the subsidiaries or affiliates of the Company, any trade secrets, confidential or proprietary information and documents or materials owned, developed or possessed by or for the Company or any of the subsidiaries or affiliates of the Company pertaining to the Business of the Company or any of the subsidiaries or affiliates of the Company; provided that such information referred to in this Section 5(a) shall not include information that is or has become generally known to the public or the jewelry trade without violation of this Section 5. For purposes of the Separation Agreement, “Business” shall mean the operation of a retail jewelry business that sells to the public jewelry, watches and associated services including through e-commerce.
(b)The Employee acknowledges that all developments, including, without limitation, inventions (patentable or otherwise), discoveries, improvements, patents, trade secrets, designs, reports, computer software, flow charts and diagrams, data, documentation, writings and applications thereof (collectively, “Works”) relating to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company that, alone or jointly with others, the Employee may create, make, develop or acquire during the term of Employee’s employment with the Company or any of its subsidiaries or affiliates (collectively, the “Developments”) are works made for hire and shall remain the sole and exclusive property of the Company and its subsidiaries and affiliates and the Employee hereby assigns to the Company all of Employee’s right, title and interest in and to all such Developments and Employee shall take any action reasonably necessary to achieve the foregoing result.  Notwithstanding any provision of this Agreement to the contrary, “Developments” shall not include any Works that do not relate to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company.

(c)The Employee agrees that Employee shall not, directly or indirectly, without the prior written consent of the Company:  
		
	(i)
	during Employee’s employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon the date of Employee’s termination of employment, solicit, entice, persuade or induce any employee, consultant, agent or 

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independent contractor of the Company or of any of the subsidiaries or affiliates of the Company to terminate his or her employment or engagement with the Company or such subsidiary or affiliate, to become employed by any person, firm or corporation other than the Company or such subsidiary or affiliate or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes; or  
		
	(ii)
	during Employee’s employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon the date of Employee’s termination of employment, directly or indirectly own, manage, control, invest or participate in any way in, consult with or render services to or for any person or entity (other than for the Company or any of the subsidiaries or affiliates of the Company) which is materially engaged in the Business (“materially” meaning deriving more than 25% of its revenue from the sale of jewelry and watches per year as of the applicable date); provided that the Employee shall be entitled to own up to 1% of any class of outstanding securities of any company whose common stock is listed on a national securities exchange or included for trading on the NASDAQ Stock Market.

(d)The Employee acknowledges that the services to be rendered by the Employee are of a special, unique and extraordinary character and, in connection with such services, the Employee will have access to confidential information vital to the Business of the Company and the subsidiaries and affiliates of the Company.  By reason of this, the Employee consents and agrees that if the Employee violates any of the provisions of Section 5 hereof, the Company and the subsidiaries and affiliates of the Company would sustain irreparable injury and that monetary damages will not provide adequate remedy to the Company and that the Company shall be entitled to have Section 5 specifically enforced by any court having equity jurisdiction.  Nothing contained herein shall be construed as prohibiting the Company or any of the subsidiaries or affiliates of the Company from pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of damages from the Employee or cessation of payments and benefits hereunder without requirement for posting a bond. The Employee further acknowledges that: (i) the Employee will not at any time, directly or indirectly violate this Section 5; (ii) payment of the termination payments and benefits in Section 2(b) under this Separation Agreement shall not be made if the Employee violates this Section 5; (iii) the Company shall have no further obligation at any time to pay the termination payments and benefits in Section 2(b) under this Separation Agreement if the Employee violates this Section 5; and (iv) to the extent allowed by law, the Employee shall be required to return to the Company any termination payments and benefits the Company paid the Employee less two hundred fifty dollars ($250.00) if the Employee violates this Section 5.

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6.Cooperation.    The payments and benefits pursuant to Section 2(b) of this Separation Agreement are conditioned upon the Employee’s agreement to be reasonably available to assist and otherwise advise and consult with the Company in transitioning responsibilities to other employees of the Company.  The payments and benefits pursuant to Section 2(b) of this Separation Agreement are also conditioned upon the Employee’s full and continued cooperation in good faith with the Company, its subsidiaries and affiliates and its legal counsel, as may be necessary or appropriate: (i) to respond truthfully to any inquiries that may arise with respect to matters that the Employee was responsible for or involved with during the Employee’s employment with the Company; (ii) to furnish to the Company, as reasonably requested by the Company, from time to time, the Employee’s honest and good faith advice, information, judgment and knowledge with respect to all practices at the Company, and employees of the Company; (iii) in connection with any defense, prosecution or investigation of any and all actual, threatened, potential or pending court or administrative proceedings or other legal matters in which the Employee may be involved as a party and/or in which the Company determines, in its sole discretion, that the Employee is a relevant witness and/or possesses relevant information; and (iv) in connection with any and all legal matters relating to the Company, its subsidiaries and affiliates, and each of their respective past and present employees, managers, directors, officers, administrators, shareholders, members, agents, and attorneys, in which the Employee may be called as an involuntary witness (by subpoena or other compulsory process) served by any third-party, including, without limitation, providing the Company with written notice of any subpoena or other compulsory process served on the Employee within forty-eight (48) hours of its occurrence.
In connection with the matters described in this Section 6, the Employee agrees to notify, truthfully communicate and be represented by, and provide requested information to, the Company’s counsel, to fully cooperate and work in good faith with such counsel with respect to, and in preparation for, any response to a subpoena or other compulsory process served upon the Employee, any depositions, interviews, responses, appearances or other legal matters, and to testify truthfully and honestly with respect to all matters.  For the avoidance of doubt, the Company has no obligation to provide the Employee with separate counsel in connection with any such matter.
The Company shall reimburse the Employee for reasonable expenses, such as travel, lodging and meal expenses, incurred by the Employee pursuant to this Section 6 at the Company’s request, and consistent with the Company’s policies for employee expenses. 

The Employee further acknowledges that all documents prepared by the Company pertaining to the affairs of the Company or any legal matter relating to the Company, which may be provided to the Employee or to which the Employee may be given access pursuant to this Section 6 in connection with the Employee’s cooperation hereunder with respect to any legal matter relating to the Company, are, and shall remain, the property of the Company at all times.  Except as required by applicable law or court order, the Employee shall not 

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disclose any information or materials received in connection with any legal matter relating to the Company.  
All communications by the Company, its subsidiaries and/or affiliates, and its lawyers to the Employee and all communications by the Employee to the Company, its subsidiaries and/or affiliates and its lawyers, in connection with any legal matter relating to the Company, its subsidiaries and/or affiliates, shall, to the fullest extent permitted by law, be privileged and confidential and subject to the work product doctrine.  No such communication, information, or work product shall be divulged by the Employee to any person or entity, except at the specific direction of an authorized representative of the Company and its lawyers.

The Employee further agrees that the Employee must also: (i) complete any outstanding performance evaluations; (ii) repay any outstanding bills, advances, debts, etc., due to the Company, as of the date of Employee’s termination of employment; and (iii) cooperate with the Company in performing all transition and other matters required by the Company prior to the date of Employee’s termination of employment.

7.Return of Property and Documents. As a material provision of this Separation Agreement, and as a condition of the receipt of the termination payments and benefits described in Sections 2(b) of this Separation Agreement, as of the date of Employee’s termination of employment, the Employee shall have, and represent to have, returned to the Company all Company property (including, without limitation, any and all computers, phones, identification cards, card key passes, fobs, corporate credit cards, corporate phone cards, corporate motor vehicles, files, memoranda, keys and software) in the Employee’s possession and the Employee shall not make or retain any duplicates or reproductions of such items.  The Employee further agrees that, as a material provision of this Separation Agreement, as of the date of Employee’s termination of employment, the Employee shall have, and represent to have, delivered to the Company all copies of any confidential information of the Company in the Employee’s possession, custody or control, including all copies of any analyses, compilations, studies or other documents in the Employee’s possession, custody or control that contain any such confidential information (whether in electronic or paper form), and that as of the date of Employee’s termination of employment, the Employee shall no longer possess any such Company property or confidential information in any form.  The Company has no obligation to pay the termination payments and benefits in Section 2(b) of this Separation Agreement until it is satisfied that the Employee has returned all Company property the Employee possesses or controls.
8.Confidentiality.  The Employee acknowledges and agrees that the Employee will keep the terms, amount, and facts of, and any discussions leading up to, this Separation Agreement strictly and completely confidential, and that the Employee will not communicate or otherwise disclose to any employee of the Company (past, present, or future), or to any member of the general public, the terms, amounts, copies, or fact of this Separation Agreement, except as may be required by law or compulsory process; provided, however, 

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that the Employee may make such disclosures to Employee’s tax/financial advisors or legal counsel as long as they agree to keep the information confidential.   If asked about any of such matters, to the extent permissible, the Employee’s response shall be that Employee may not discuss any of such matters, except that nothing in this Separation Agreement shall affect the Employee’s rights to engage in activity protected by Section 7 of the National Labor Relations Act.  Notwithstanding anything herein to the contrary, nothing in this Section 7 shall: (i) prohibit the Employee from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation; or (ii) require notification or prior approval by the Company of any reporting described in clause (i).
The Employee is hereby notified, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that: (i) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; (ii) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.  Notwithstanding anything herein to the contrary, nothing in this Separation Agreement shall: (i) prohibit the Employee from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation; or (ii) require notification or prior approval by the Company of any reporting described in clause (i).

In the event of a breach of the confidentiality provisions set forth in this Section 8 of the Separation Agreement by the Employee, the Company may suspend any payments or benefits due under this Separation Agreement pending the outcome of litigation and/or arbitration regarding such claimed breach of this Separation Agreement by the Employee.
9.Non-Defamation and Non-Disparagement.  The Employee shall not at any time, publicly or privately, verbally or in writing, directly or indirectly, make or cause to be made any defaming and/or disparaging, derogatory, misleading or false statement about the Company or its products, or any current or former directors, officers, employees, or agents of the Company, or the business strategy, plans, policies, practices or operations of the 

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Company to any person or entity, including members of the investment community, press, customers, competitors, employees and advisors of the Company.  Truthful disclosure to any government agency regarding possible violations of federal law or regulation in accordance with any whistleblower protection provisions of state or federal law or regulation shall not be deemed to violate this paragraph.
Employee recognizes that the breach of this Section 9 will cause serious and irreparable injury to the Company.  The Employee further acknowledges that: (i) the Employee will not at any time, directly or indirectly, violate this Section 9 regarding non-defamation and non-disparagement; (ii) payment of the termination payments and benefits set forth in Section 2(b) of this Separation Agreement shall not be made if the Employee violates this Section 9 regarding non-defamation and non-disparagement; (iii) the Company shall have no further obligation at any time to pay the termination payments and benefits set forth in Section 2(b) of this Separation Agreement if the Employee violates this Section 9 regarding non-defamation and non-disparagement; and (iv) to the extent allowed by law, the Employee shall be required to return to the Company any termination payments and benefits paid less two hundred fifty dollars ($250.00) if the Employee violates this Section 9 regarding non-defamation and non-disparagement.
10.Consequences of Breach.  The Employee acknowledges and agrees that the obligations and responsibilities in this Separation Agreement are reasonable and not unduly restrictive.  The Employee further recognizes that damages incurred by the Company as a result of the Employee’s breach of this Separation Agreement will be difficult to measure, that monetary damages will not provide adequate relief, and that in the event of any such breach: (i) the Company shall be entitled to apply for and receive an injunction without bond to restrain any such violation; (ii) the Company shall not be obligated to provide the termination payments or benefits under this Separation Agreement; (iii) the Employee shall be obligated to pay to the Company its costs and expenses in enforcing its rights; and (iv) as an alternative to (iii), the Company may withhold and retain all but two hundred fifty dollars ($250.00) of the value of the termination payment and benefits under this Separation Agreement provided to the Employee.  The covenants in this Section 10 shall not be deemed to be a penalty nor forfeiture.
11.Severability.  In the event that any one or more of the provisions of this Separation Agreement are held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder of the Separation Agreement shall not in any way be affected or impaired thereby.
12.Waiver.  No waiver by either party of any breach by the other party of any condition or provision of this Separation Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time.

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13.Governing Law and Forum.  This Separation Agreement shall be subject to, and governed by, the laws of the State of Ohio applicable to contracts made and to be performed therein, without regard to conflict of laws principles thereof. Any action to enforce any of the provisions of this Separation Agreement shall be brought in a court of the State of Ohio located in Summit County or in a Federal court located in Cleveland, Ohio.  The parties consent to the jurisdiction of such courts and to the service of process in any manner provided by Ohio law.  Each party irrevocably waives any objection which it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding brought in such court and any claim that such suit, action, or proceeding brought in such court has been brought in an inconvenient forum and agrees that service of process in accordance with the foregoing sentences shall be deemed in every respect effective and valid personal service of process upon such party.  
EMPLOYEE ACKNOWLEDGES THAT, BY SIGNING THIS SEPARATION AGREEMENT, HE IS WAIVING ANY RIGHT THAT HE MAY HAVE TO A JURY TRIAL RELATED TO THIS SEPARATION AGREEMENT.    
14.Withholding.  The Company shall deduct or withhold, or require the Employee to remit to the Company, the minimum statutory amount to satisfy federal, state or local taxes required by law or regulation to be withheld with respect to any benefit provided hereunder.
15.Entire Agreement.  This Separation Agreement and the Release, constitute the entire agreement and understanding of the parties with respect to the subject matter herein and supersede all prior agreements, arrangements and understandings, whether written or oral, between the parties, including the TPA, except that nothing in this Separation Agreement shall negate or limit the Employee’s obligations under the Code of Business Conduct and Ethics.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. The Employee acknowledges and agrees that he is not relying on any representations or promises by any representative of the Company concerning the meaning of any aspect of this Separation Agreement or the Release.  This Separation Agreement and the Release may not be altered or modified other than in a writing signed by the Employee and an authorized representative of the Company.  
16.Notices.  All notices given hereunder shall be given in writing, shall specifically refer to this Separation Agreement and shall be personally delivered or sent by telecopy or other electronic facsimile transmission or by registered or certified mail, return receipt requested, at the address set forth below or at such other address as may hereafter be designated by notice given in compliance with the terms hereof:
If to the Employee:     To Employee’s last address set forth on the payroll records                     of the Company.

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If to the Company:     Sterling Jewelers Inc.
c/o Steven J. Becker
375 Ghent Road
Akron, Ohio 44333
Fax: (330) 664-4379
Attn: Chief Human Resources Officer 

If notice is mailed, such notice shall be effective upon mailing, or if notice is personally delivered or sent by telecopy or other electronic facsimile transmission, it shall be effective upon receipt.

17.Successors and Assigns.  This Separation Agreement is intended to bind and inure to the benefit of and be enforceable by the Employee, the Company and their respective heirs, successors and assigns, except that the Employee may not assign his rights or delegate his obligations hereunder without the prior written consent of the Company.
18.Section 409A.
(a)    The intent of the parties is that payments and benefit under this Separation Agreement comply with or be exempt from Section 409A and, accordingly, to the maximum extent permitted, this Separation Agreement shall be interpreted to be in compliance therewith or exempt therefrom, as applicable.  If any other payments of money or other benefits due to the Employee hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, the Company may (i) adopt such amendments to the Separation Agreement, including amendments with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Separation Agreement and/or (ii) take such other actions as the Company determines necessary or appropriate to comply with the requirements of Section 409A.  
(b)    A termination of employment shall not be deemed to have occurred for purposes of this Separation Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of this Separation Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If the Employee is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then, notwithstanding any other provision herein, with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided prior to 

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the date which is the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of the Employee, and (B) the date of the Employee’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 18(b) (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such delay) shall be paid or reimbursed to the Employee in a lump sum on the first business day following the Delay Period, and any remaining payments and benefits due under this Separation Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(c)    (i) All expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event any reimbursements that are non-qualified deferred compensation subject to Section 409A of the Code shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Employee; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.
(d)    For purposes of Section 409A, the Employee’s right to receive any installment payments pursuant to this Separation Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Separation Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.
(e)     Nothing contained in this Separation Agreement shall constitute any representation or warranty by the Company regarding compliance with Section 409A.  The Company has no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A on any person and the Company, its subsidiaries and affiliates, and each of their employees and representatives shall not have any liability to the Employee with respect thereto.    
19.Compliance with Board Policies. The Employee shall be subject to the written policies of the Board, including, without limitation, any policy relating to the holding of shares of Company common stock or claw back of compensation, as they exist from time to time during the Employee’s employment with the Company.
20.Counterparts.  This Separation Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above.

STERLING JEWELERS INC.
	
			
	 
	 
	 

	By:
	 
	/s/ Steven J. Becker

	Name:
	 
	Steven J. Becker

	Title:
	 
	Chief Human Resources Officer

EMPLOYEE
	
			
	 
	 
	 

	By:
	 
	/s/ Ed Hrabak

	Name:
	 
	Ed Hrabak

Exhibit A
RELEASE AGREEMENT
This RELEASE (“Release”) dated as of ___________, 20__ between Sterling Jewelers Inc., a Delaware corporation (the “Company”), and Ed Hrabak (the “Employee”).
WHEREAS, the Company and the Employee previously entered into that certain Separation Agreement dated as of January 29, 2017 (the “Separation Agreement”) pursuant to which the Employee’s employment with the Company shall terminate as of July 17, 2017 or, if earlier, the Employee’s termination of employment by the Company without Cause (as determined by the Company) or due to the Employee’s death or Disability; and
NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein and in the Separation Agreement, the Company and the Employee agree as follows:
1.Capitalized terms not defined herein shall have the meaning as defined under the Separation Agreement.
2.    In consideration of the Employee’s release under Paragraph 3 hereof, the Company shall pay to the Employee or provide benefits to the Employee as set forth in Section 2, as applicable, of the Separation Agreement, which is attached hereto and made a part hereof.
3.    The Employee, on Employee’s own behalf and on behalf of Employee’s heirs, estate and beneficiaries, does hereby release the Company, and in such capacities, any of its subsidiaries or affiliates, and each past or present officer, director, agent, employee, shareholder, and insurer of any such entities, from any and all claims made, to be made, or which might have been made of whatever nature, whether known or unknown, from the beginning of time, including those that arose as a consequence of Employee’s employment with the Company, or arising out of the severance of such employment relationship, or arising out of any act committed or omitted during or after the existence of such employment relationship, all up through and including the date on which this Release is executed, including, without limitation, any tort and/or contract claims, common law or statutory claims, claims under any local, state or federal wage and hour law, wage collection law or labor relations law, claims under any common law or other statute, claims of age, race, sex, sexual orientation, religious, disability, national origin, ancestry, citizenship, retaliation or any other claim of employment discrimination, including under Title VII of the Civil Rights Acts of 1964 and 1991, as amended (42 U.S.C. §§ 2000e et seq.), Age Discrimination in Employment Act, as amended (29 U.S.C. §§ 621, et seq.); the Americans with Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the Family and Medical Leave Act (29 

U.S.C. §§ 2601 et seq.), the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. §§ 1001 et seq.), the Ohio Civil Rights Act (Ohio Rev. Code Ann. §§ 4112.01-4112.99, the Ohio Whistleblower’s Protection Statue (Ohio Rev. Code Ann. §§ 4113.51-4113.53), and any other law (including any state or local law or ordinance) prohibiting employment discrimination or relating to employment, retaliation in employment, termination of employment, wages, benefits or otherwise.  If any arbitrator or court rules that such waiver of rights to file, or have filed on Employee’s behalf, any administrative or judicial charges or complaints is ineffective, the Employee agrees not to seek or accept any money damages or any other relief upon the filing of any such administrative or judicial charges or complaints.  Notwithstanding the preceding sentence, nothing in this Release shall be construed to limit the Employee’s right to receive any monetary award from the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934, as amended. The Employee relinquishes any right to future employment with the Company and the Company shall have the right to refuse to re-employ the Employee, in each case without liability of the Employee or the Company.  The Employee acknowledges and agrees that even though claims and facts in addition to those now known or believed by him to exist may subsequently be discovered, it is Employee’s intention to fully settle and release all claims he may have against the Company and the persons and entities described above, whether known, unknown or suspected.
4.    The Company and the Employee acknowledge and agree that the release contained in Paragraph 3 does not, and shall not be construed to, release or limit the scope of any existing obligation of the Company and/or any of its subsidiaries or affiliates (i) to indemnify the Employee for Employee’s acts as an officer or director of Company in accordance with the Certificate of Incorporation and all agreements thereunder, (ii) to pay any amounts or benefits pursuant to Section 2 of the Separation Agreement, or (iii) with respect to the Employee’s rights as a shareholder of the Company, Signet or any of their subsidiaries.  
5.    Employee acknowledges that pursuant to the Release set forth in Paragraph 3 above, Employee is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that Employee’s waiver and release of such rights is knowing and voluntary.  Employee acknowledges that the consideration given for the ADEA waiver and release under this Release is in addition to anything of value to which Employee was already entitled. 
(a)    Employee further acknowledges that he has been advised by this writing that:
(i)    Employee should consult with an attorney prior to executing this Release and has had an opportunity to do so;

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(ii)    Employee has up to twenty-one (21) days within which to consider this ADEA waiver and release;
(iii)    Employee has seven (7) days following Employee’s execution of this Release to revoke this ADEA waiver and release, but only by providing written notice of such revocation to the Company in accordance with the “Notice” provision in Section 15(f) of the Agreement; 
(iv)    the ADEA waiver and release shall not be effective until the seven (7) day revocation period has expired; and
(v)    the twenty-one (21) day period set forth above shall run from the date Employee receives this Release.  The Parties agree that any modifications made to this Release prior to its execution shall not restart, or otherwise affect, this twenty-one day (21) period. 
(b)    It is the intention of the parties in executing this Release that this Release shall be effective as a full and final accord and satisfaction and release of and from all liabilities, disputes, claims and matters covered under this Release, known or unknown, suspected or unsuspected.
6.      This Release shall become effective on the first (1st) day following the day that this Release becomes irrevocable under Paragraph 5.  All payments due to the Employee shall be payable in accordance with the terms of the Agreement.  

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IN WITNESS WHEREOF, the parties have executed this Release on the date first above written.

STERLING JEWELERS INC.

By:                
Name:
Title: 

ED HRABAK
                

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