Document:

Exhibit 10.1

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT 

 

by and among

 

Pasithea Therapeutics
Corp.,

 

Alpha-5 integrin, LLC,

 

The Persons listed on Schedule 1.1,

 

and

 

Paul B. Manning,
as the Representative 

 

Dated June 21, 2022

 

     

     

    

 

EXHIBITS AND SCHEDULES

 

Exhibit A – Form of Employment Offer Letters

 

Disclosure Schedule

 

Schedule 1.1 – Sellers      

 

     

     

    

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

This Membership Interest Purchase Agreement (this “Agreement”)
is entered into on June 21, 2022 by and among Pasithea Therapeutics Corp., a Delaware Corporation (“Buyer”), Alpha-5
integrin, LLC, a Delaware limited liability company (the “Company”), the Persons listed on Schedule 1.1 (each
individually a “Seller” and collectively, “Sellers”), and Paul B. Manning, not individually but
in his capacity as the representative of Sellers (the “Representative”). Buyer, the Company, Sellers and the Representative
are referred to collectively herein as the “Parties” and individually as a “Party.” Unless otherwise
specifically stated, each Seller shall be severally and not jointly liable with each other Seller for the liabilities and obligations
of each and all Sellers hereunder.

 

RECITALS

 

WHEREAS, Sellers in the aggregate own all of the Company Securities;

 

WHEREAS, each Seller desires to sell, transfer, assign, convey, and
deliver to Buyer, and Buyer desires to purchase, acquire, and accept from each Seller, all (but not less than all) of the Company Securities
held by each such Seller, as set forth opposite each Seller’s name on Schedule 1.1, upon the terms and subject to the conditions
set forth in this Agreement;

 

WHEREAS, concurrently with the execution and delivery of this Agreement,
each of the Key Executives shall enter into the Employment Offer Letters, each of which shall be effective as of the Closing; and

 

WHEREAS, the respective governing bodies of Buyer and the Company have
approved this Agreement and the transactions contemplated hereby, in each case, upon the terms and subject to the conditions set forth
herein.

 

AGREEMENT

 

Now, therefore, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, covenants and other valuable consideration herein contained, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE 1

 

PURCHASE
AND SALE OF COMPANY SECURITIES

 

1.1
Basic Transaction. In accordance with the terms and upon the conditions of this Agreement, at the Closing each Seller shall
sell, transfer, assign, convey and deliver to Buyer, and Buyer shall purchase, acquire, and accept from each Seller, all right, title
and interest in and to all of such Seller’s Company Securities, free and clear of all Liens.

 

1.2
Purchase Consideration. Subject to adjustment as provided in this Article 1, the purchase consideration for the Company
Securities (the “Purchase Consideration”) shall consist of:

 

(a)  
3,260,870 shares of common stock, $0.0001 par value per share, of Buyer (the “Buyer Shares”) allocated by the
Representative between Sellers in accordance with each Seller’s pro rata percentage (the “Pro Rata Percentage”)
as set forth on Schedule 1.1; plus

 

(b)  
warrants to acquire 1,000,000 shares of common stock of Buyer in the aggregate at an exercise price of $1.88 per share (the “Warrants”)
(which may be exercised on a cashless basis) for a period of five years commencing on the Closing Date, allocated by the Representative
between Sellers in accordance with each Seller’s Pro Rata Percentage; plus

 

(c)  
the Earnout Amount, to the extent payable to the Representative (for the benefit of Sellers) in accordance with Section 1.5.

 

1.3
Debt and Transaction Expenses. The Representative has delivered to Buyer (a) a certificate signed by the Representative
(the “Closing Statement”) setting forth the Representative’s best estimate of the Debt Amount and the Transaction
Expenses Amount, in each case as of the Closing Date, and, based on such estimates, the Final Purchase Consideration and (b) all records
and work papers necessary to compute and verify the information set forth in such certificate.

 

     

     

    

 

1.4
Delivery of Purchase Consideration.

 

(a)
Closing Payments. At the Closing, Buyer shall:

 

(i)
pay the Debt Amount, if any, pursuant to any payoff letters delivered by the Representative to Buyer;

 

(ii)
pay the Sellers Loan Amount pursuant to Section 1.9; and

 

(iii)
pay the Transaction Expenses Amount pursuant to the direction of the Representative.

 

(b)
Buyer Shares. Subject to adjustment as provided in this Article 1, at the Closing, Buyer shall issue the Buyer Shares
(as adjusted to reflect the Final Purchase Consideration) and the Warrants, in each case, issued to each Seller as set forth opposite
such Seller’s name on Schedule 1.1, and cause and direct the Transfer Agent to deliver to the Representative reasonable evidence
of the same.

 

(c)
Payments. Any payments to the Parties pursuant to this Agreement shall be made by wire transfer of immediately available
funds to an account designated by the recipient Party or Parties in writing.

 

1.5
Earnout Amount.

 

(a)
For each Earnout Measurement Period, the Earnout Amount payable to Sellers according to Sellers’ Pro Rata Percentages shall
be as follows:

 

(i)
For Net Sales of up to $100 million during any Earnout Measurement Period, Sellers shall be entitled to an Earnout Amount of 2%
of such Net Sales.

 

(ii)
For Net Sales in excess of $100 million and up to $400 million during any Earnout Measurement Period, Sellers shall be entitled
to an Earnout Amount of 3% of such Net Sales.

 

(iii)
For Net Sales in excess of $400 million during any Earnout Measurement Period, Sellers shall be entitled to an Earnout Amount of
4% of such Net Sales.

 

(b)
Payment of the applicable Earnout Amount shall be made no later than five Business Days after the applicable Earnout Report becomes
final or the delivery of the Accountants’ determination, as applicable, with respect to the corresponding Earnout Measurement Period.

 

(c)
Notwithstanding anything to the contrary herein, any sales of the Drug generated in a market after the Drug is no longer subject
to any patent protection or regulatory exclusivity (under the FDA, including the Biologics Price Competition and Innovation Act in the
US, or equivalent law in such other non-US market) shall, with respect any such market, be excluded from the calculation of Net Sales
hereunder.

 

1.6
Determination of Earnout Amount. Within 120 days after the end of the applicable Earnout Measurement Period, Buyer shall
prepare and deliver to the Representative a report certified by an officer of Buyer (the “Earnout Report”) setting
forth Buyer’s calculation of the Net Sales for such Earnout Measurement Period and the resulting Earnout Amount with respect to
such Earnout Measurement Period. If the Representative has any objections to the calculation of the Net Sales and the resulting Earnout
Amount, then the Representative will deliver a detailed written statement (the “Earnout Objections Statement”) describing
its objections to Buyer within thirty (30) days after delivery of the Earnout Report. Upon reasonable advance written notice, Buyer shall
grant the Representative reasonable access to the documents and records evidencing the Net Sales generated in an Earnout Period requested
by the Representative for its inspection at the Representative’s sole cost and expense. If the Representative fails to deliver an
Earnout Objections Statement within such thirty (30) day period, then the calculation of the Net Sales and the resulting Earnout Amount
set forth in the Earnout Report shall become final and binding on all Parties. If the Representative delivers an Earnout Objections Statement
within such thirty (30) day period, then the Representative and Buyer will use commercially reasonable efforts to resolve any such disputes,
but if a final resolution is not obtained within thirty (30) days after the Representative has submitted the Earnout Objections Statement,
any remaining matters which are in dispute will be resolved by the Accountants. The Accountants will prepare and deliver a written report
to Buyer and the Representative and will submit a resolution of such unresolved disputes promptly, but in any event within thirty (30)
days after the dispute is submitted to the Accountants. The Accountants’ determination of such unresolved disputes will be final
and binding upon all Parties; provided, however, that no such determination shall be any more favorable to Buyer than is
set forth in the Earnout Report or any more favorable to the Representative than is proposed in the Earnout Objections Statement. The
costs, expenses and fees of the Accountants shall be borne by the Party whose calculation of the Earnout Amount has the greatest difference
from the final Earnout Amount as determined by the Accountants under this Section 1.6; otherwise, such costs, fees and expenses
shall be borne equally by Buyer, on the one hand, and the Representative (on behalf of Sellers), on the other hand. Upon the Earnout Amount
becoming final and binding in accordance with this Section 1.6, Buyer shall pay such Earnout Amount to the Representative (for
distribution to the Sellers in accordance with their Pro Rata Percentages) in accordance with Section 1.5.

 

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1.7
Calculations. All calculations of Net Sales under this Agreement, whether estimates or otherwise, shall be determined in
accordance with GAAP, consistently applied.

 

1.8
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place
electronically by the mutual exchange of portable document format (.PDF) signatures on the date of this Agreement (the “Closing
Date”). All transactions contemplated herein to occur on and as of the Closing Date shall be deemed to have occurred simultaneously
and to be effective as of 12:01 a.m. eastern time on such date.

 

1.9
Pre-Closing Funding. In order to address any working capital needs of the Company prior to the Closing, Sellers, or an Affiliate
thereof, made non-interest bearing loans to the Company in the aggregate amount of $157,331.82 outstanding immediately prior to the Closing
for expenses approved by Buyer (the “Sellers Loan Amount”).  Buyer shall reimburse Sellers for the Sellers Loan
Amount by paying, at Closing, cash to the Representative on behalf of Sellers; provided, that the Representative produces documentation
reasonably satisfactory to Buyer of the loans, which aggregate to the Sellers Loan Amount, concurrently with the Representative’s
delivery of the Closing Statement.

 

1.10
Tax Treatment. The Parties agree that the sale of the Company Securities pursuant to this Agreement shall be treated for
federal (and, where applicable, state and local) income Tax purposes as a transaction described in Rev. Rul. 99-6, 1999-1 C.B. 432 (situation
2). The Purchase Consideration shall be allocated for income Tax purposes to goodwill, going concern value and other similar intangible
assets.

 

ARTICLE 2

 

REPRESENTATIONS
AND WARRANTIES CONCERNING TRANSACTION

 

2.1
Representations and Warranties of Sellers. Each Seller, severally and not jointly, represents and warrants to Buyer that
the statements contained in this Section 2.1 are correct and complete as of the Closing Date, except as set forth in the corresponding
section of the Disclosure Schedule.

 

(a)
Authorization of Transaction. Such Seller has full power and legal capacity to execute and deliver this Agreement and the
Ancillary Agreements to which such Seller is a party and to perform such Seller’s obligations hereunder and thereunder. Assuming
the due authorization, execution and delivery of this Agreement and the Ancillary Agreements by the other parties thereto, this Agreement
and each Ancillary Agreement to which such Seller is a party constitute the valid and legally binding obligation of such Seller, enforceable
against such Seller in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors generally and by the availability of equitable remedies. Except as set forth on Section
2.1(a) of the Disclosure Schedule, such Seller is not required to give any notice to, make any filing with, or obtain any Consent
of any Governmental Body or any other Person in order to consummate the transactions contemplated by this Agreement or the Ancillary Agreements
to which such Seller is a party.

 

(b)
Non-contravention. Neither the execution and the delivery of this Agreement nor the Ancillary Agreements to which such Seller
is a party, nor the consummation of the transactions contemplated hereby and thereby, will (i) violate or conflict with any Law or Order
to which such Seller is subject, (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any Contract to which such Seller
is a party or by which such Seller is bound or to which any of such Seller’s assets are subject, or (iii) result in the imposition
or creation of a Lien upon or with respect to the Company Securities.

 

(c)
Brokers’ Fees. Such Seller has no liability or obligation to pay any fees or commissions to any broker, finder, or
agent with respect to the transactions contemplated by this Agreement or any Ancillary Agreement.

 

(d)
Company Securities. Such Seller holds of record and owns beneficially the number of Company Securities set forth next to
such Seller’s name in Schedule 1.1, free and clear of any Liens. Such Seller is not a party to, and such Seller’s Company
Securities are not subject to, any option, warrant, purchase right or other Contract that could require such Seller to sell, transfer,
or otherwise dispose of any Company Securities (other than this Agreement). Such Seller is not a party to any voting trust, proxy or other
Contract with respect to the voting of any Company Securities.

 

(e)
Litigation. Such Seller is not engaged in or a party to or, to the Knowledge of such Seller, threatened with any complaint,
charge, Proceeding, Order or other process or procedure for settling disputes or disagreements with respect to the Company or the transactions
contemplated by this Agreement, and such Seller has not received written or, to the Knowledge of such Seller, oral notice of a claim or
dispute that is reasonably likely to result in any such complaint, charge, Proceeding, Order or other process or procedure for settling
disputes or disagreements with respect to the Company or the transactions contemplated by this Agreement.

 

    -3-

     

    

 

(f)
Ancillary Agreements. Such Seller has reviewed the Ancillary Agreements and has had the opportunity to ask questions and
receive answers concerning the terms, conditions and provisions of the same. Such Seller has had full access to such information and materials
concerning Buyer as such Seller has requested. Buyer has answered all inquiries that such Seller has made to Buyer, including relating
to the issuance of the Buyer Shares.

 

(g)
Investment. Such Seller is not acquiring the Buyer Shares with a view to or for sale in connection with any distribution
thereof within the meaning of the Securities Act.

 

(h)
Accredited Investor. Such Seller is an accredited investor within the meaning of the Securities Act and has made inquiries
to his satisfaction concerning all material facts relevant to his decision to consummate the transactions contemplated by this Agreement,
including acquiring the Buyer Shares.

 

2.2
Representations and Warranties of Buyer. Buyer represents and warrants to Sellers that the statements contained in this
Section 2.2 are correct and complete as of the Closing Date.

 

(a)
Organization of Buyer. Buyer is a corporation duly formed, validly existing and in good standing under the Laws of the State
of Delaware.

 

(b)
Authorization of Transaction. Buyer has full corporate power and authority to execute and deliver this Agreement and the
Ancillary Agreements to which Buyer is a party and to perform Buyer’s obligations hereunder and thereunder. The execution and delivery
by Buyer of this Agreement and the Ancillary Agreements to which Buyer is a party and the performance by Buyer of the transactions contemplated
hereby and thereby have been duly approved by all requisite corporate action of Buyer. Assuming the due authorization, execution and delivery
of this Agreement and the Ancillary Agreements by the other parties thereto, this Agreement and each Ancillary Agreement to which Buyer
is a party constitute the valid and legally binding obligation of Buyer enforceable against Buyer in accordance with their terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors generally
and by the availability of equitable remedies. Except as required to comply with applicable federal and state securities Laws, Buyer is
not required to give any notice to, make any filing with, or obtain any Consent of any Governmental Body or any other Person in order
to consummate the transactions contemplated by this Agreement or the Ancillary Agreements to which Buyer is a party.

 

(c)
Non-contravention. Neither the execution and the delivery of this Agreement nor the Ancillary Agreements to which Buyer
is a party, nor the consummation of the transactions contemplated hereby and thereby, will (i) violate or conflict with any Law or Order
to which Buyer is subject, (ii) violate any provision of the Organizational Documents of Buyer or (iii) conflict with, result in a breach
of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel,
or require any notice under any Contract to which Buyer is a party or by which Buyer is bound or to which any of its assets are subject.

 

(d)
Brokers’ Fees. Buyer does not have any liability or obligation to pay any fees or commissions to any broker, finder
or agent with respect to the transactions contemplated by this Agreement for which any Seller could become liable or obligated.

 

(e)  Investment.
Buyer is not acquiring the Company Securities with a view to or for sale in connection with any distribution thereof within the
meaning of the Securities Act.

 

(f)
Capitalization. As of March 23, 2022, the authorized capital stock of Buyer consists of 495,000,000 shares of common stock,
$0.0001 par value per share (“Buyer Common Stock”), of which 22,858,371 are issued and outstanding, and 5,000,000 shares
of preferred stock (“Buyer Preferred Stock”), of which no shares have been issued. All issued and outstanding shares
of Buyer Common Stock have been duly authorized and validly issued, are fully paid and non-assessable and have been issued without violation
of any preemptive right or other right to purchase. Immediately after the Closing (assuming no adjustment to the Purchase Consideration
and prior to the exercise of the Warrants), 26,119,241 shares of Buyer Common Stock will be issued and outstanding, and no shares of Buyer
Preferred Stock will be issued and outstanding. There are no other stock or other ownership interests in Buyer or outstanding securities
convertible or exchangeable into stock or other ownership interests of Buyer.

 

    -4-

     

    

 

(g)
Litigation. Buyer is not engaged in or a party to or, to the Knowledge of Buyer, threatened with any complaint, charge,
Proceeding, Order or other process or procedure for settling disputes or disagreements, and Buyer has not received written or, to the
Knowledge of Buyer, oral notice of a claim or dispute that is reasonably likely to result in any such complaint, charge, Proceeding, Order
or other process or procedure for settling disputes or disagreements, in each case, as would not reasonably be expected to have a material
adverse effect on Buyer’s ability consummate the transactions contemplated by this Agreement.

 

(h)
SEC Filings; Financial Statements.

 

(i)
To the Knowledge of Buyer, Buyer has timely filed or furnished all registration statements, prospectuses, definitive proxy statements,
schedules and reports required to be filed or furnished by it under the Securities Act or the Exchange Act, as the case may be, since
June 1, 2021 (collectively, the “Buyer SEC Filings”). Each Buyer SEC Filing as of its applicable filing date, or on
such date as it was amended and supplemented prior to the date of this Agreement, if applicable, complied in all material respects with
the requirements of the Securities Act or the Exchange Act, as the case may be. To the Knowledge of Buyer, no Buyer SEC Filing contained
any untrue statement of a material fact as of its applicable filing date or omitted to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading as
of its applicable filing date.

 

(ii)
Each of the consolidated financial statements (including, in each case, any notes thereto) contained in the Buyer SEC Filings (the
“Buyer Financial Statements”), as of their respective dates (or if amended or supplemented in a Buyer SEC Filing filed
prior to the date of this Agreement, as of the date amended or supplemented) was prepared in accordance with GAAP applied (except as may
be indicated in the notes thereto and, in the case of unaudited quarterly financial statements, as permitted by Form 10-Q under the Exchange
Act) on a consistent basis throughout the periods indicated, and each presented fairly in all material respects the consolidated financial
position, results of operations and cash flows of Buyer as of the respective dates thereof and for the respective periods indicated therein
(subject to, in the case of unaudited financial statements, (A) normal year-end adjustments and (B) the absence of footnotes that would
appear in audited financial statements). The books and records of Buyer have been, and are being, maintained in material compliance with
applicable legal and accounting requirements. To the Knowledge of Buyer, there are no inquiries or investigations by the SEC or any internal
investigations pending or threatened, in each case, regarding any violation of accounting practices of Buyer.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY

 

Sellers, severally and not jointly, represent and warrant to Buyer
that the statements contained in this Article 3 are correct and complete as of the Closing Date, except as set forth in the corresponding
section of the Disclosure Schedule.

 

3.1
Organization, Qualification, and Power.

 

(a)
Section 3.1(a) of the Disclosure Schedule sets forth the jurisdiction of incorporation or formation of the Company and each
state or other jurisdiction in which the Company is licensed or qualified to do business. The Company is duly organized, validly existing
and in good standing under the Laws of its jurisdiction of incorporation or formation. The Company is duly authorized to conduct its business
and is in good standing under the Laws of each jurisdiction where such qualification is required. The Company has full limited liability
company power and authority and all Permits necessary to carry on the businesses in which it is engaged and to own, lease and use the
properties owned, leased and used by it.

 

(b)
Section 3.1(b) of the Disclosure Schedule lists each member of the board of directors or managers, management board and
officers, as the case may be, of the Company. Sellers have delivered to Buyer correct and complete copies of the Organizational Documents,
the minute book and stock record books for the Company, each of which is correct and complete. The Company is not in default under or
in violation of any provision of its Organizational Documents.

 

3.2
Authorization of Transaction. The Company has full limited liability company power, authority and legal capacity to execute
and deliver the Agreement and the Ancillary Agreements to which it is a party and to perform its obligations hereunder and thereunder.
The execution and delivery by the Company of the Agreement and the Ancillary Agreements to which it is a party and the performance by
the Company of the transactions contemplated hereby and thereby have been duly approved by all requisite limited liability company action
of the Company. Assuming the due authorization, execution and delivery of this Agreement and the Ancillary Agreements by the other parties
thereto, this Agreement and each Ancillary Agreement to which the Company is a party constitute the valid and legally binding obligation
of the Company, enforceable against the Company in accordance with their terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors generally and by the availability of equitable remedies. Except
as set forth on Section 3.2 of the Disclosure Schedule, the Company is not required to give any notice to, make any filing with,
or obtain any Consent of any Governmental Body or any other Person in order to consummate the transactions contemplated by this Agreement
or the Ancillary Agreements to which the Company is a party.

 

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3.3
Capitalization and Subsidiaries.

 

(a) All of the Company Securities are owned beneficially and of record by Sellers. The Company Securities represent 100% of the outstanding
membership interests or other ownership or equity interests in the Company. All of the Company Securities have been duly authorized, are
validly issued, fully paid, and non-assessable and have been issued without violation of any preemptive right or other right to purchase.
Section 3.3(a) of the Disclosure Schedule lists the Company’s authorized membership interests and the record and beneficial
owner of such membership interests, and each such owner has good and indefeasible title to all of the membership interests listed next
to such holder’s name on Schedule 1.1 free and clear of all Liens. There are no other membership interests or other ownership
or equity interests in the Company or outstanding securities convertible or exchangeable into membership interests or other ownership
or equity interests of the Company, and there are no options, warrants, purchase rights, subscription rights, conversion rights, exchange
rights, calls, puts, rights of first refusal or other Contracts that could require the Company to issue, sell or otherwise cause to become
outstanding or to acquire, repurchase or redeem membership interests or other ownership or equity interests in the Company. There are
no outstanding or authorized equity appreciation, phantom equity, profit participation or similar rights with respect to the Company.
There are no voting trusts, proxies or other Contracts with respect to the voting of the stock or other ownership or equity interests
of the Company. Upon the Closing, the Company Securities will be delivered to Buyer free and clear of all Liens (other than any Liens
which may result from any actions taken by Buyer), and Buyer will have good and marketable title to the Company Securities.

 

(b)
The Company has no Subsidiaries and does not own any equity or other ownership interest in any Person.

 

3.4
Non-contravention. Neither the execution and the delivery of this Agreement nor the Ancillary Agreements to which the Company
is a party, nor the consummation of the transactions contemplated hereby or thereby, will (i) violate or conflict with any Law or Order
to which the Company is subject, (ii) violate or conflict with any provision of the Organizational Documents of the Company, or (iii)
conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice or payment under any Contract or Permit to which the Company is a party or by which
it is bound or to which any of its assets is subject (or result in the imposition of any Lien upon any of its assets).

 

3.5
Brokers’ Fees. Except as set forth on Section 3.5 of the Disclosure Schedule, the Company has no liability
or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.

 

3.6
Assets.

 

(a)
The Company has good and marketable title to, or a valid leasehold interest or license in, the properties and assets (tangible
and intangible) used by it, located on its premises or shown on the Most Recent Balance Sheet or acquired after the date thereof (other
than inventory sold in the Ordinary Course of Business), free and clear of all Liens, except for Permitted Liens. Except as set forth
on Section 3.6(a) of the Disclosure Schedule, the assets, properties and rights owned by the Company are all the assets, properties
and rights necessary to operate the businesses of the Company, consistent with past practice.

 

(b)
The machinery, equipment and other tangible assets that the Company owns and leases are free from material defects (patent and
latent), have been maintained in accordance with normal industry practice, are in good operating condition and repair (subject to normal
wear and tear) and are suitable for the purposes for which they are presently used.

 

3.7
Financial Statements; Interim Conduct.

 

(a)
Attached to Section 3.7(a) of the Disclosure Schedule are correct and complete copies of the following financial statements
of the Company (collectively, the “Financial Statements”): (i) an unaudited consolidated balance sheet, statement of
income, stockholders’ equity and cash flows as of and for the fiscal year ended December 31, 2021 (the “Most Recent Fiscal
Year End”); and (ii) unaudited consolidated balance sheets, statements of income, stockholders’ equity and cash flows
(the “Most Recent Financial Statements”) as of and for the four month period ended April 30, 2022 (the “Most
Recent Fiscal Month End”). The Financial Statements are correct and complete and consistent with the books and records of the
Company, have been prepared in accordance with GAAP consistently applied, and present fairly in all material respects the financial condition,
results of operation, changes in equity and cash flow of the Company as of and for their respective dates and for the periods then ending;
provided, however, that the Most Recent Financial Statements are subject to normal, recurring year-end adjustments and lack
notes (none of which will be material individually or in the aggregate).

 

    -6-

     

    

 

(b)
Since the Most Recent Fiscal Year End, the business of the Company has been conducted in the Ordinary Course of Business, and there
has not been any Material Adverse Change and no event has occurred which could reasonably be expected to result in a Material Adverse
Change. Without limiting the generality of the foregoing, except as set forth on Section 3.7(b) of the Disclosure Schedule, since
the Most Recent Fiscal Year End the Company has not:

 

(i)
sold, leased, transferred or assigned any assets or property (tangible or intangible) with a value in excess of $1,000, other than
sales of inventory in the Ordinary Course of Business;

 

(ii)
experienced any damage, destruction or loss (whether or not covered by insurance) to its assets or property (tangible or intangible)
in excess of $1,000;

 

(iii)
received notice from any Person regarding the acceleration, termination, modification or cancelation a Contract, which, if in existence
on the date hereof, would be required to be listed on Section 3.13(a) of the Disclosure Schedule;

 

(iv)  
issued, created, incurred or assumed any Debt involving more than $1,000;

 

(v)
forgave, canceled, compromised, waived or released any Debt owed to it or any right or claim;

 

(vi)
issued, sold or otherwise disposed of any of its membership interests or other ownership or equity interests, or granted any options,
warrants or other rights to acquire (including upon conversion, exchange, exercise or otherwise) any of its membership interests or other
ownership or equity interests or declared, set aside, made or paid any dividend or distribution with respect to its membership interests
or other ownership or equity interests or redeemed, purchased or otherwise acquired any membership interest or other ownership or equity
interest or amended or made any change to any of its Organizational Documents or made any other payment to its members (or any Affiliates
of such members);

 

(vii)
granted any increase in salary or bonus or otherwise increased the compensation or benefits payable or provided to any director,
officer, employee, consultant, advisor or agent, except wage or salary increases set forth on Section 3.7(b)(vii) of the Disclosure
Schedule required by existing Contracts;

 

(viii)
engaged in any promotional or sales activities;

 

(ix)
made any commitment outside of the Ordinary Course of Business or in excess of $10,000 in the aggregate for capital expenditures
to be paid after the Closing or failed to incur capital expenditures in accordance with its capital expense budget;

 

(x)
instituted any material change in the conduct of its business or any material change in its accounting practices or methods, cash
management practices or method of purchase, sale, lease, management, marketing, or operation;

 

(xi)
taken or omitted to take any action which could be reasonably anticipated to have a Material Adverse Effect;

 

(xii)
made, changed or rescinded any Tax election, adopted or changed any Tax accounting method, settled or compromised any Tax liability,
amended any Tax Return or took any action that would have the effect of materially increasing the Tax liability or materially reducing
any Tax assets of the Company in respect of any taxable period ending after the Closing Date;

 

(xiii)
collected its accounts receivable or paid any accrued liabilities or accounts payable or prepaid any expenses or other items, in
each case other than in the Ordinary Course of Business;

 

(xiv)
entered into any transaction with any Affiliate; or

 

(xv)
agreed or committed to any of the foregoing.

 

(c)
The accounts payable of the Company reflected on the Most Recent Financial Statements arose from bona fide transactions in the
Ordinary Course of Business, and all such accounts payable have either been paid, are not yet due and payable in the Ordinary Course of
Business or are being contested by the Company in good faith.

 

    -7-

     

    

 

3.8
Undisclosed Liabilities. The Company does not have any liability (whether known or unknown, whether asserted or unasserted,
whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), except
for liabilities that (a) are accrued or reserved against in the Most Recent Financial Statements, (b) were incurred subsequent to the
Most Recent Fiscal Month End in the Ordinary Course of Business, (c) result from the obligations of the Company under this Agreement or
the Ancillary Agreements or (d) liabilities and obligations pursuant to any Contract listed on Section 3.13(a) of the Disclosure
Schedule or not required by the terms of Section 3.13(a) to be listed on Section 3.13(a) of the Disclosure Schedule,
in either case which arose in the Ordinary Course of Business and did not result from any default, tort, breach of contract or breach
of warranty.

 

3.9
Legal Compliance.

 

(a)
The Company and its respective predecessors and Affiliates have complied and are in compliance with all applicable Laws and Orders,
and no Proceeding has been filed or commenced or, to the Knowledge of the Company, threatened alleging any failure so to comply. Since
January 1, 2021, the Company has not received any notice or communication alleging any non-compliance of the foregoing.

 

(b)
The Company does not hold, and is not required to hold, any Permits to conduct its business or operations in the Ordinary Course
of Business.

 

(c)
Neither the Company, nor any of its officers, managers, members, directors, agents, employees or any other Persons acting on its
behalf, has (i) made any illegal payment or provided any unlawful compensation or gifts to any officer or employee of any Governmental
Body, or any employee, Customer or supplier of the Company, or (ii) accepted or received any unlawful contributions, payments, expenditures
or gifts; and no Proceeding has been filed or commenced alleging any such payments, contributions or gifts.

 

3.10
Tax Matters.

 

(a)
The Company has filed with the appropriate taxing authorities all Tax Returns it was required to file. All such Tax Returns are
correct and complete in all material respects. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been
paid or are reflected as reserves on the Most Recent Financial Statements. The Company is not currently the beneficiary of any extension
of time within which to file any Tax Return or pay any Tax. There are no Liens for Taxes (other than Taxes not yet due and payable) upon
the Company Securities or any of the assets of the Company.

 

(b)
Adequate reserves and accruals have been established to provide for the payment of all Taxes which are not yet due and payable
with respect to the Company.

 

(c)
No deficiency or proposed adjustment for any amount of Tax has been proposed, asserted or assessed by any taxing authority against
the Company that has not been paid, settled or otherwise resolved. There is no Proceeding or audit now pending, proposed or, to the Knowledge
of the Company, threatened against the Company or concerning the Company with respect to any Taxes. The Company has not been notified
by any taxing authority that any issues have been raised with respect to any Tax Return. There has not been, within the past five (5)
calendar years, an examination or written notice of potential examination of the Tax Returns filed with respect to the Company by any
taxing authority.

 

(d)
All Taxes that are required to be withheld or collected by the Company, including, but not limited to, Taxes arising as a result
of payments (or amounts allocable) to foreign persons or to employees, agents, contractors or stockholders of the Company, have been duly
withheld and collected and, to the extent required, have been properly paid or deposited as required by applicable Laws.

 

(e)
No claim has ever been made by any taxing authority in a jurisdiction where the Company does not file Tax Returns that it is or
may be subject to taxation by that jurisdiction.

 

(f)
The Company is not a party to any Tax allocation, sharing, indemnity, or reimbursement agreement or arrangement, and is not liable
for the Taxes of any other Person as a transferee or successor, by Contract or otherwise.

 

(g)
The Company will not be required as a result of (i) a change in method of accounting or improper use of an accounting method
for a taxable period ending on or prior to the Closing Date, (ii) any “closing agreement,” as described in Section 7121
of the Code (or any corresponding provision of state, local or foreign Law), (iii) any installment sale or open transaction disposition,
or (iv) the receipt of any prepaid income or deferred revenue, to include any item of income or exclude any item of deduction for
any taxable period (or portion thereof) beginning after the Closing Date that would not have otherwise so been included or excluded as
the case may be.

 

    -8-

     

    

 

(h)
The Company is not a “United States real property holding corporation” within the meaning of Section 897(c)(2) of the
Code.

 

(i)
Section 3.10(i) of the Disclosure Schedule lists all Tax Returns filed by the Company for Tax periods ended on or after
January 1, 2021, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of
audit. The Company has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to the
payment of any Tax or any Tax assessment or deficiency.

 

(j)
There is no Contract to which the Company is a party that will, individually or collectively, result in the payment of any amount
that would not be deductible by reason of Section 280G (as determined without regard to Section 280G(b)(4)), 162 or 404 of the Code.

 

(k)
The Company is, and has been at all times since its formation, classified as a partnership for U.S. federal (and, where applicable,
state and local) income Tax purposes.

 

(l)
The Company has not deferred (i) any “applicable employment taxes” under Section 2302 of the CARES Act, or (ii) any
payroll Tax obligations (including those imposed by Sections 3101(a) and 3201 of the Code) pursuant to or in connection with the Memorandum
on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, dated August 8, 2020 or Notice 2020-22.

 

(m) The Company has not elected to apply the partnership audit rules enacted as part of the Bipartisan Budget Act of 2015 for any taxable
year beginning prior to January 1, 2021.

 

3.11
Real Property.

 

(a)
The Company does not own any Owned Property.

 

(b) Section 3.11(b) of the Disclosure Schedule sets forth the address of each parcel of Leased Real Property, and a true and
complete list of all Leases for each parcel of Leased Real Property. Sellers have made available to Buyer a true and complete copy of
each Lease, and in the case of any oral Lease, a written summary of the material terms of such Lease.

 

(c)
Subject to the respective terms and conditions in the Leases, the Company is the sole legal and equitable owner of the leasehold
interest in the Leased Real Property and possesses good and marketable, indefeasible title thereto, free and clear of all Liens (other
than Permitted Liens).

 

3.12
Intellectual Property.

 

(a)
Except as set forth on Section 3.12(a) of the Disclosure Schedule, the Company owns, licenses or otherwise has the
right to use, free and clear of all Liens except for Permitted Liens, the Intellectual Property material to the conduct of the business
of the Company as currently conducted (collectively, the “Company IP Rights”).  Section 3.12(a) of the
Disclosure Schedule sets forth a list Company IP Rights, whether registered and unregistered.  The Company has made all necessary
filings and paid all necessary fees to maintain all registrations or pending applications for any Company IP Rights. Except as set forth
on Section 3.12(a) of the Disclosure Schedule, there are no outstanding deadlines that will expire within six (6) months of
the Closing Date for any registrations or applications for any Company IP Rights.

 

(b)
The Company IP Rights owned or used by the Company immediately prior to the Closing Date will be owned or available for use by
Buyer immediately after the Closing Date on substantially identical terms and conditions as owned or used by the Company immediately prior
to the Closing Date.

 

(c)
Section 3.12(c) of the Disclosure Schedule sets forth a list of all agreements to which the Company IP Rights are bound
or that affect the Company IP Rights, including but not limited to license agreements.

 

(d)
Except as set forth on Section 3.12(d) of the Disclosure Schedule, (i) there are no claims pending against the Company (or,
to the Knowledge of the Company, its employees, agents, distributors, suppliers, or vendors) contesting the use or ownership of the Company
IP Rights owned by the Company, or alleging that the Company (or its employees, agents, distributors, suppliers, or vendors, as applicable)
is currently infringing, misappropriating or otherwise violating the Intellectual Property of any other Person, and (ii) there are no
claims pending that have been brought by the Company against any Person currently alleging infringement, misappropriation or other violation
of any Company IP Rights.

 

    -9-

     

    

 

(e)
Except as set forth on Section 3.12(e) of the Disclosure Schedule, to the Knowledge of the Company, (i) the conduct of the
businesses of the Company as currently conducted, and the continued operation of such businesses consistent with past practices, does
not infringe, misappropriate, or otherwise violate any Intellectual Property of any Person, and (ii) no Person is currently infringing,
misappropriating, or otherwise violating the Company IP Rights.

 

(f)
Except as set forth on Section 3.12(f) of the Disclosure Schedule, all Company IP Rights owned by or developed by and/or
for the Company was developed by (i) employees of the Company within the scope of their employment; or (ii) independent contractors who
have entered into written agreements with the Company that assigned all right, title and interest in and to any Intellectual Property
developed to the Company.

 

(g)
Except as set forth on Section 3.12(g) of the Disclosure Schedule, the Company is not a party to or otherwise bound by any
settlement or consent agreement, covenant not to sue, non-assertion assurance, release or other similar agreement that could reasonably
be expected, individually or in the aggregate, to materially and adversely affect the Company’s rights to own, use, make, transfer,
encumber, assign, license, distribute, convey, sell or otherwise exploit any Company IP Rights.

 

(h)
The Company has taken reasonable steps to protect and preserve the confidentiality of the Company’s trade secrets, know-how,
confidential information, inventions and discoveries, ideas, formulas, methods, proprietary information, technical information, information
that derive economic value from not being generally known, and any other information that would constitute a trade secret as defined in
the Uniform Trade Secrets Act and under corresponding foreign statutory Law and common law,  and
all use, disclosure or appropriation thereof by or to any third party has been pursuant to the terms of a written agreement between such
third party and the Company.  The Company has not breached any contracts or agreements of non-disclosure or confidentiality.

 

3.13
Contracts.

 

(a)
Section 3.13(a) of the Disclosure Schedule lists the following Contracts to which the Company is a party:

 

(i)
each Contract with consideration paid or payable of more than $10,000 in the aggregate over any 12-month period;

 

(ii)
each lease, rental or occupancy agreement, license, installment and conditional sale agreement, and other Contract affecting the
ownership of, leasing of, title to, use of, or any leasehold or other interest in, any real or personal property (except personal property
leases and installment and conditional sales agreements having aggregate payments of less than $10,000 and with terms of less than one
year);

 

(iii)
each joint venture, partnership or Contract involving a sharing of profits, losses, costs or liabilities with any other Person;

 

(iv)
each Contract relating to the acquisition, sale, transfer or disposition by the Company of any material assets or properties, or
of the operating business or the capital stock of or other equity interests in any other Person that were consummated in the last three
years or under which there is any surviving liability (including indemnification obligations, contingent payments, or purchase price adjustments)
against the Company;

 

(v)
each Contract containing any covenant that purports to restrict the business activity of the Company or limit the freedom of the
Company to engage in any line of business, to do business in any geographic area, or to compete with any Person;

 

(vi)
each Contract involving the payment of royalties or other amounts calculated based on the revenues or income of the Company or
income or revenues related to any product or services provided by the Company;

 

(vii)
each power of attorney;

 

(viii)
each related-party Contract between the Company, on the one hand, and any Affiliate thereof, on the other hand;

 

    -10-

     

    

 

(ix)
each Contract for or relating to, or evidencing or guaranteeing, Debt;

 

(x)
each Contract providing for the payment of any cash or other compensation or benefits upon the consummation of the transactions
contemplated by this Agreement;

 

(xi) each Contract under which the Company has advanced or loaned to any other Person amounts in the aggregate exceeding $10,000;

 

(xii)
each Contract with any Seller or any Affiliate of the Company or any Seller;

 

(xiii)
any settlement agreement;

 

(xiv)
each employment or consulting Contract or other Contract with any of Company’s officers, managers, partners, directors, consultants
or employees;

 

(xv)  
each Intellectual Property License;

 

(xvi)
each Contract under which the Company agree to purchase or sell goods or services from any Person on a “most favored nations”
basis;

 

(xvii)
each confidentiality agreement and non-disclosure agreement still in effect;

 

(xviii)
each Contract which purports to be binding on Affiliates of the Company; and

 

(xix)
any other agreement material to the Company whether or not entered into in the Ordinary Course of Business.

 

(b) The Company has delivered to Buyer a correct and complete copy of each written Material Contract, together with all amendments,
addenda, modifications, exhibits, attachments, waivers or other changes thereto. Section 3.13(b) of the Disclosure Schedule contains
an accurate and complete description of all material terms of all oral Material Contracts (if any).

 

(c)
To the Knowledge of the Company, each Material Contract is legal, valid, binding, enforceable, in full force and effect and will
continue to be legal, valid, binding and enforceable on identical terms following the Closing Date. To the Knowledge of the Company, except
as specifically disclosed and described in Section 3.13(c) of the Disclosure Schedule, (i) no Material Contract has been breached
or canceled by the Company, or any other party thereto, (ii) the Company has performed all obligations under such Material Contracts required
to be performed by the Company, (iii) there is no event which, upon giving of notice or lapse of time or both, would constitute a breach
or default under any such Material Contract or would permit the termination, modification or acceleration of such Material Contract, and
(iv) the Company has not assigned, delegated or otherwise transferred to any Person any of its rights, title or interest under any such
Material Contract.

 

3.14
Litigation. To the Knowledge of the Company, except as set forth in Section 3.14 of the Disclosure Schedule, there
are no (and during the last three years, there have not been any) complaints, charges, Proceedings, Orders, or investigations pending
or threatened or anticipated relating to or affecting the Company. There is no outstanding Order to which the Company is subject. The
Company is fully insured with respect to each of the matters set forth on Section 3.14 of the Disclosure Schedule.

 

    -11-

     

    

 

3.15 Employees.

 

(a)
Section 3.15 of the Disclosure Schedule sets forth a complete and correct list of all employees of the Company, showing
for each: (i) name, (ii) hire date, (iii) current job title, (iv) actual base salary, bonus, commission or other remuneration paid during
2021, (v) 2022 base salary level and 2022 target bonus, and (vi) indicating whether there has been any increase in compensation, bonus,
incentive, or service award or any grant of any severance or termination pay or any other increase in benefits or any commitment to do
any of the foregoing since January 1, 2021.

 

(b) The employment arrangement of each officer, director, manager, employee or consultant of the Company is, subject to applicable
Laws involving the wrongful termination of employees, terminable at will (without the imposition of penalties or damages) by the Company
as the case may be, and the Company has no severance obligations if any such officer, director, manager, employee or consultant is terminated.

 

(c) The Company has not committed any material unfair labor practice. The Company has paid in full to all of its employees all wages,
salaries, commissions, bonuses, benefits and other compensation due and payable to such employees.

 

(d) All individuals who have performed services for the Company or who otherwise have claims for compensation from the Company have
been properly classified as an employee or an independent contractor pursuant to all applicable Laws, including, but not limited to, the
Code and ERISA.

 

3.16
Employee Benefits.

 

(a) Section 3.16(a) of the Disclosure Schedule lists each Employee Benefit Plan that the Company maintains, to which the Company
contributes or has any obligation to contribute, or with respect to which the Company has any liabilities.

 

(b)
Neither the Company nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any material liability
under or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in ERISA §3(35))
or a Multiemployer Plan.

 

(c) Except as set forth in Section 3.16(c) of the Disclosure Schedule, neither the execution, delivery or performance of this
Agreement nor the consummation of the transactions contemplated hereby, either alone or in conjunction with any other event, will (i)
result in any payment or benefit (including severance, retention, unemployment compensation or otherwise) becoming due to any current
or former officer, director, manager, employee or independent contractor of the Company (or any beneficiary or permitted transferee thereof);
(ii) increase any benefits otherwise payable under any Employee Benefit Plan; (iii) result in any acceleration of the timing of payment
or vesting or funding, or forfeiture of, any such benefits or compensation to any extent; or (iv) give rise to (or already has resulted
in) a payment or provision of any other benefit (including accelerated vesting) that, individually or collectively, would not be deductible
by reason of Section 280G of the Code. Neither the Company nor any Seller has any obligation to “gross-up,” compensate, reimburse,
“make-whole,” or otherwise indemnify any individual for the imposition of any Tax under Sections 4999 or 409A of the Code.

 

3.17
Debt. Except as set forth on Section 3.17 of the Disclosure Schedule, the Company does not have any Debt and are
not liable for any Debt of any other Person. The Company has not applied for or received any governmental funding, including under the
Paycheck Protection Program administered by the Small Business Administration in response to the COVID-19 pandemic, or otherwise.

 

3.18
Certain Business Relationships with the Company. Except as set forth on Section 3.18 of the Disclosure Schedule,
none of Sellers, nor any officer, manager, partner or director of the Company nor any of the Affiliates of any of the foregoing (other
than the Company):

 

(a)
owns, directly or indirectly, any stock or other ownership interest or investment in any Person that is a competitor, supplier,
customer, lessor or lessee of the Company; provided, however, that the foregoing representation shall be deemed not to be
made as to the ownership of not more than 5% of the capital stock of any such Person that has securities registered pursuant to Section
13 or Section 15 of the Securities Exchange Act;

 

    -12-

     

    

 

(b)
has any claim against or owes any amount to, or is owed any amount by, the Company;

 

(c) has any interest in or owns any assets, properties or rights used in the conduct of the business of the Company;

 

(d)
is a party to any Contract to which the Company is a party or which otherwise benefits the business of the Company; or

 

(e)
has received from or furnished to the Company any goods or services since the Most Recent Fiscal Year End or is involved in any
business relationship with the Company.

 

3.19
Restrictions on Business Activities. There is no Contract, Order, or other instrument binding upon the Company, Sellers,
or the current or former officers, managers or directors of the Company which restricts or prohibits the Company from competing with any
other Person, from engaging in any business or from conducting activities in any geographic area, or which otherwise restricts or prohibits
the conduct of the business of the Company.

 

3.20
Clinical Trials. The entirety of the business of the Company with respect to the Drug or any other drug, product, procedure
or otherwise developed, produced, created, manufactured or researched by the Company is in the pre-clinical stage, and no clinical trials
have been conducted by the Company regarding any of the foregoing.

 

ARTICLE 4

POST-CLOSING COVENANTS

 

The Parties agree as follows with respect to the period following the
Closing.

 

4.1
General. In case at any time after the Closing any further action is necessary to carry out the purposes of this Agreement,
each of the Parties will take such further action (including the execution and delivery of such further instruments, agreements, certificates,
and documents) as any other Party reasonably may request, all at the sole cost and expense of the requesting Party (unless the requesting
Party is entitled to indemnification therefor under Article 6 below). Sellers acknowledge and agree that, from and after the Closing,
Buyer will be entitled to possession of all documents, books, records (including Tax records), agreements and financial data of any sort
relating to the Company.

 

4.2
Litigation Support. In the event and for so long as Buyer or the Company actively is contesting or defending against any
Proceeding in connection with any fact, situation, circumstance, action, failure to act, or transaction on or prior to the Closing Date
involving the Company , each of Sellers will cooperate with Buyer and its counsel in the contest or defense and provide such testimony
and access to such Seller’s books and records as shall be necessary in connection with the contest or defense, all at the sole cost
and expense of Buyer and the Company (unless Buyer or the Company is entitled to indemnification therefor under Article 6 below).

 

4.3
Transition. None of Sellers shall take any action that is designed or intended to have the effect of discouraging any lessor,
licensor, Customer, supplier, or other business associate of the Company from maintaining the same business relationships with the Company
after the Closing as it maintained with the Company prior to the Closing.

 

4.4
Confidentiality. Each Seller agrees not to disclose (other than to such Seller’s affiliates (for the sole purpose
of consummating the transactions contemplated hereby or performing such Seller’s obligations hereunder) or the attorneys, accountants
or tax advisors of such Seller or their affiliates (for the sole purpose of consummating the transactions contemplated hereby or performing
such Seller’s obligations hereunder)) or use any Confidential Information other than in connection with this Agreement and the transactions
contemplated herein; provided, that any Person to whom a Seller discloses Confidential Information as permitted pursuant to this
sentence shall, prior to such disclosure, agree to adhere to the confidentiality obligations set forth herein. If any Seller is requested
or required pursuant to written or oral question or request for information or documents in any Proceeding, interrogatory, subpoena, civil
investigation demand or similar process to disclose any Confidential Information, then such Seller will notify Buyer promptly of the request
or requirement so that Buyer may seek an appropriate protective order or waive compliance with the provisions of this Section 4.4.
If, in the absence of a protective order or the receipt of a waiver hereunder, any Seller is, on the advice of counsel, compelled to disclose
any Confidential Information to any tribunal or else stand liable for contempt, then such Seller may disclose the Confidential Information
to the tribunal; provided, however, that the disclosing Seller shall use his best efforts to obtain, at the request of Buyer,
an order or other assurance that confidential treatment will be accorded to such portion of the Confidential Information required to be
disclosed as Buyer shall designate. The foregoing provisions shall not apply to any Confidential Information that is generally available
to the public immediately prior to the time of disclosure unless such Confidential Information is so available due to the actions of a
Seller in breach of this Section 4.4.

 

    -13-

     

    

 

4.5
Covenant Not to Compete. During the Restricted Period, each Seller (and with respect to a Seller who is an entity, such
Seller’s owner or Person in control of such Seller) will not, directly or indirectly, in any manner (whether on his own account,
or as an owner, operator, manager, consultant, officer, director, employee, investor, representative, agent or otherwise), anywhere in
the Applicable Area, engage in the Restricted Business or any business that competes with the Restricted Business, manage, control, participate
in (whether as an owner, operator, manager, consultant, officer, director, employee, agent, representative or otherwise), or consult with
or render services for any Person that is engaged in the Restricted Business or in any activity that competes with the Restricted Business;
provided, that a passive investment of less than 5% by such Seller in a company will not be a violation of this Section 4.5.

 

4.6
Covenant Not to Solicit. During the Restricted Period, each Seller will not (and with respect to a Seller who is an entity,
such Seller’s owner or Person in control of such Seller), directly or indirectly, in any manner take any affirmative steps to (whether
on his own account, or as an owner, operator, manager, consultant, officer, director, employee, investor, representative, agent or otherwise), (a)
hire or engage, or recruit, solicit or otherwise attempt to employ or engage, or enter into any business relationship with any Person
currently employed by, or providing consulting services to, the Company, or induce or attempt to induce any Person to leave such employment
or consulting arrangement, or (b) in any way interfere with the relationship between the Company or Buyer and any such Person (including,
without limitation, by making any negative or disparaging statements or communications regarding the Company, Buyer or any of their businesses,
operations, officers, directors or investors).

 

4.7
Enforcement. If the final judgment of a court of competent jurisdiction declares that any term or provision of Sections
4.5 or 4.6 is invalid or unenforceable, then the Parties agree that the court making the determination of invalidity or unenforceability
shall have the power to reduce the scope, duration or area of the term or provision, to delete specific words or phrases, or to replace
any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closer to expressing
the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration
of the time within which the judgment may be appealed. In the event of a Proceeding involving Sections 4.4, 4.5 or
4.6, the non-prevailing party shall reimburse the prevailing party for all costs and expenses, including reasonable attorneys’
fees and expenses, incurred in connection with any such Proceeding, including any appeal therefrom. The existence of any claim or cause
of action by any Seller against Buyer, the Company or any of their respective Affiliates, whether predicated on this Agreement or otherwise,
will not constitute a defense to the enforcement by Buyer of the provisions of Section 4.4, 4.5 or 4.6, which
Sections will be enforceable notwithstanding the existence of any breach by Buyer or the Company. Notwithstanding the foregoing, no Seller
will be prohibited from pursuing such claims or causes of action against Buyer or the Company.

 

4.8
Release. Each Seller, for himself, itself and his or its Affiliates, heirs, personal representatives, successors and assigns,
as applicable, (collectively, the “Releasors”), hereby (a) forever fully and irrevocably releases and discharges Buyer,
the Company, each of its respective Affiliates, and each of their respective predecessors, successors, direct or indirect Subsidiaries
and past and present stockholders, members, managers, directors, officers, employees, agents, and other representatives (collectively,
the “Released Parties”) from any and all actions, suits, claims, demands, debts, agreements, obligations, promises,
judgments, or liabilities of any kind whatsoever in law or equity and causes of action of every kind and nature, or otherwise (including,
claims for damages, costs, expense, and attorneys’, brokers’ and accountants fees and expenses) arising out of or related
to events, facts, conditions or circumstances existing or arising prior to the Closing Date, which the Releasors can, shall or may have
against the Released Parties, whether known or unknown, suspected or unsuspected, contingent or matured, unanticipated as well as anticipated
(collectively, the “Released Claims”), and (b) irrevocably agree to refrain from directly or indirectly asserting any
claim or demand or commencing (or causing to be commenced) any Proceeding against any Released Party based upon any Released Claim. Notwithstanding
the preceding sentence of this Section 4.8, “Released Claims” does not include, and the provisions of this Section 4.8
shall not release or otherwise diminish the obligations of any Party set forth in or arising under any provisions of this Agreement
or the Ancillary Agreements.

 

4.9
Standstill. So long as any Seller owns at least 5% of Buyer Common Stock, such Seller shall not, without the prior written
Consent of the board of directors of Buyer, acquire any additional Buyer Common Stock or any other securities in Buyer which have voting
rights or are convertible into Buyer Common Stock or other security in Buyer which have voting rights.

 

    -14-

     

    

 

4.10
Registration Statement. As promptly as practicable after the execution of this Agreement, subject to the terms of this Section
4.10, Sellers and Buyer shall jointly prepare and Buyer shall file with the SEC a registration statement (together with the prospectus
forming a part thereof and amendments thereto, the “Registration Statement”) in connection with the registration under
the Securities Act of the Buyer Shares. Sellers and Buyer shall furnish all information concerning such Party as the other Party may reasonably
request in connection with such actions and the preparation of the Registration Statement. The Parties shall use their reasonable best
efforts to (a) cause the Registration Statement, when filed with the SEC, to comply in all material respects with all legal requirements
applicable thereto, (b) respond as promptly as reasonably practicable to and resolve all comments received from the SEC concerning the
Registration Statement, and (c) cause the Registration Statement to be declared effective as promptly as practicable. In furtherance of
the foregoing, the Parties shall cause their respective officers, directors, managers, employees, representatives and agents, as applicable,
to be reasonably available to the other Parties and their respective counsel in connection with the drafting of the Registration Statement
and to respond in a timely manner to comments thereto from the SEC.

 

ARTICLE 5

CLOSING DELIVERIES

 

5.1
Closing Deliveries of Sellers. At or prior to the Closing, the Representative, on behalf of Sellers and the Company, shall
deliver to Buyer:

 

(a)  
a certificate of the Secretary of the Company, dated as of the Closing Date, attaching and certifying (i) the Organizational Documents
of the Company, (ii) the authorizing resolutions of the Company and (iii) the incumbency and signatures of the Persons signing this Agreement
and the other Ancillary Agreements to which the Company is a party;

 

(b)  
good standing certificates for the Company from the jurisdiction of each such Person’s organization and each jurisdiction
in which the Company is qualified to do business;

 

(c)  
counterpart signature pages to the Employment Offer Letters signed by each of the Key Executives;

 

(d)  
resignation letters from each member of the board of directors or managers, management board and officers, as the case may be,
of the Company set forth on Section 3.1(b) of the Disclosure Schedule;

 

(e)  
a termination agreement from each party to the related party Contracts identified with an asterisk (*) on Section 3.13(a)(viii)
of the Disclosure Schedule;

 

(f)
an affidavit of non-foreign status, certified by each Seller under penalties of perjury, meeting the requirements of Treasury Regulations
Section 1.1445-2(b)(2); and

 

(g)  
all other instruments and documents required by this Agreement to be delivered by the Company, Sellers or the Representative to
Buyer, and such other instruments and documents which Buyer or its counsel may reasonably request to effectuate the transactions contemplated
hereby.

 

All such agreements, documents and other items shall be in form and
substance satisfactory to Buyer.

 

5.2
Closing Deliveries of Buyer. At or prior to the Closing, Buyer shall deliver to the Representative:

 

(a)  
a certificate from an officer of Buyer, dated as of the Closing Date, attaching and certifying (i) the Organizational Documents
of Buyer, (ii) the authorizing resolutions of Buyer and (iii) the incumbency and signatures of the Persons signing this Agreement and
the other Ancillary Agreements to which Buyer is a party;

 

(b)  
counterpart signature pages to the Employment Offer Letters signed by Buyer;

 

(c)  
reasonable evidence of the book entry issuance of the Buyer Shares and the Warrants pursuant to Section 1.4(b); and

 

(d)  
all other instruments and documents required by this Agreement to be delivered by Buyer to the Company, Sellers or the Representative,
and such other instruments and documents which the Representative or its counsel may reasonably request to effectuate the transactions
contemplated hereby.

 

All such agreements, documents
and other items shall be in form and substance satisfactory to the Representative.

 

    -15-

     

    

 

ARTICLE 6

REMEDIES FOR BREACHES OF THIS AGREEMENT

 

6.1 Indemnification
by Sellers.

 

(a) Subject
to the terms and conditions of this Article 6, Sellers, severally and not jointly and in accordance with their Pro Rata Percentages,
will indemnify, defend and hold harmless Buyer, the Company, each of their respective Subsidiaries, Affiliates, and successors and assigns
(the “Buyer Indemnitees”) from and against the entirety of any Adverse Consequences that any Buyer Indemnitee may suffer
or incur (including any Adverse Consequences they may suffer or incur after the end of any applicable survival period, provided that an
indemnification claim with respect to such Adverse Consequence is made pursuant to this Article 6 prior to the end of any applicable
survival period) resulting from, arising out of, relating to, in the nature of, or caused by (i) any breach or inaccuracy of any representation
or warranty made in Article 3 or (ii) any breach of any covenant or agreement of the Company, or the Representative in this Agreement.

 

(b) Sellers,
severally and not jointly and in accordance with their Pro Rata Percentages, agree that they shall pay and otherwise fully satisfy and
discharge all Designated Excluded Liabilities, and shall indemnify, defend and hold all Buyer Indemnitees harmless from, and shall reimburse
all Buyer Indemnitees for, all Adverse Consequences that any Buyer Indemnitee may suffer or incur in connection with any Designated Excluded
Liabilities.

 

(c) Subject
to the terms and conditions of this Article 6, each Seller, severally and not jointly and in accordance with their Pro Rata Percentages,
will indemnify, defend and hold harmless the Buyer Indemnitees from and against the entirety of any Adverse Consequences that any Buyer
Indemnitee may suffer or incur (including any Adverse Consequences they may suffer or incur after the end of any applicable survival period,
provided that an indemnification claim with respect to such Adverse Consequence is made pursuant to this Article 6 prior to the
end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by (i) any breach or inaccuracy
of any representation or warranty made by such Seller in Section 2.1 or (ii) any breach of any covenant or agreement of such
Seller in this Agreement.

 

    -16-

     

    

 

6.2 Indemnification
by Buyer. Subject to the terms and conditions of this Article 6, Buyer will indemnify, defend and hold harmless Sellers, their
respective Affiliates, and their respective successors and assigns (the “Seller Indemnitees”) from and against the
entirety of any Adverse Consequences they may suffer or incur (including any Adverse Consequences they may suffer or incur after the end
of any applicable survival period, provided that an indemnification claim with respect to such Adverse Consequence is made pursuant to
this Article 6 prior to the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of,
or caused by (a) any breach or inaccuracy of any representation or warranty made by Buyer in Section 2.2 or (b) any breach of any
covenant or agreement of Buyer in this Agreement.

 

6.3 Survival
and Time Limitations. All representations, warranties, covenants and agreements of the Parties in this Agreement or any other certificate
or document delivered pursuant to this Agreement will survive the Closing for the period of time set forth in this Article 6 with
respect to such representations, warranties, covenants and agreements. The right to indemnification, payment of any losses or other remedy
based on such representations, warranties, covenants, and obligations will not be affected by any investigation conducted with respect
to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement,
with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant, or obligation. Notwithstanding
the foregoing, (a) any claim relating to any representation or warranty made in Sections 3.9 (Legal Compliance) and 3.10
(Tax Matters) may be made at any time until the expiration of the statute of limitations applicable to any claim brought by a Governmental
Body or other Person relating to the underlying subject matter of the relevant representation or warranty, (b) any claim relating
to any representation or warranty made in Sections 2.1(a) (Authorization of Transaction), 2.1(c) (Brokers’ Fees),
2.1(d) (Company Securities), 3.2 (Authorization of Transaction), 3.3 (Capitalization and Subsidiaries), and 3.5
(Brokers’ Fees) may be made at any time within two years of Closing; provided, that any claim relating to any representation
or warranty made in 3.12 (Intellectual Property) may be made at any time within three years of Closing (collectively, the representations
and warranties described in clauses (a) and (b) are referred to as the “Fundamental Representations”), (c) any claim
relating to any representation or warranty made in Article 2 or Article 3 (other than Fundamental Representations) may be
made at any time within twelve months of Closing, and (d) any claim related to intentional or fraudulent breaches of the representations
and warranties may be made at any time without limitation. Buyer will have no liability with respect to any claim for any breach or inaccuracy
of any representation or warranty in this Agreement unless the Representative notifies Buyer of such a claim within twelve months of Closing;
provided, however, that any claim relating to any representation made in Sections 2.2(b) (Authorization of Transaction)
and 2.2(d) (Brokers’ Fees) may be made at any time without any time limitation. Notwithstanding anything to the contrary
contained herein, if Buyer or the Representative, as applicable, provides notice of a claim in accordance with the terms of this Agreement
within the applicable time period set forth above, then liability for such claim will continue until such claim is fully resolved.

 

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6.4 Limitations
on Indemnification by Sellers.

 

(a) With
respect to the matters described in Sections 6.1(a)(i) and 6.1(c)(i), Sellers will have no liability with respect to such
matters until the Buyer Indemnitees have suffered aggregate Adverse Consequences by reason of all such breaches in excess of $175,000
(the “Threshold”), after which point Sellers will be obligated to indemnify Buyer Indemnitees from and against all
Adverse Consequences from the first dollar; provided, that the foregoing limitations shall not apply in respect of any Adverse
Consequences relating to (i) breaches of the Fundamental Representations or (ii) any intentional or fraudulent breach of a representation
or warranty.

 

(b) With
respect to the matters described in Sections 6.1(a)(i) and 6.1(c)(i), the aggregate maximum liability of all Sellers shall
be $350,000; (the “Cap”); provided, that the foregoing limitations shall not apply in respect of any Adverse
Consequences relating to (i) breaches of the Fundamental Representations or (ii) any intentional or fraudulent breach of representation
or warranty.

 

(c) With
respect to (i) the matters described in Sections 6.1(a)(i) and 6.1(c)(i) relating to breach of any Fundamental Representation,
(ii) the matters described in Sections 6.1(a)(ii), 6.1(b) and 6.1(c)(ii), or (iii) any intentional or fraudulent
breach of a representation or warranty, the aggregate maximum liability of all Sellers shall be the cash amount equal to $4 million.

 

6.5 Limitations
on Indemnification by Buyer.

 

(a) With
respect to the matters described in Section 6.2(a), Buyer will have no liability with respect to such matters until Seller Indemnitees
have suffered Adverse Consequences by reason of all such breaches in excess of the Threshold, after which point Buyer will be obligated
to indemnify Seller Indemnitees from and against all Adverse Consequences from the first dollar; provided, that the foregoing limitations
shall not apply in respect of any Adverse Consequences relating to (a) breaches of any representation made in Sections 2.2(b) (Authorization
of Transaction) and 2.2(d) (Brokers’ Fees) or (b) any intentional or fraudulent breach of a representation or warranty.

 

(b) With
respect to the matters described in Section 6.2(b), the aggregate maximum liability of Buyer shall be the Cap; provided,
that the foregoing limitation shall not apply in respect of any Adverse Consequences relating to (a) breaches of any representation made
in Sections 2.2(b) (Authorization of Transaction) and 2.2(d) (Brokers’ Fees) or (b) any intentional or fraudulent
breach of a representation or warranty.

 

(c) Notwithstanding
anything to the contrary herein, the aggregate maximum liability of Buyer with respect to the matters described in this Article 6
shall be the cash amount equal to $4 million.

 

6.6 Third-Party
Claims.

 

(a) If
a third party initiates a claim, demand, dispute, lawsuit or arbitration (a “Third-Party Claim”) against any Person
(the “Indemnified Party”) with respect to any matter that the Indemnified Party might make a claim for indemnification
against any Party (the “Indemnifying Party”) under this Article 6, then the Indemnified Party must promptly
notify the Indemnifying Party in writing of the existence of such Third-Party Claim and must deliver copies of any documents served on
the Indemnified Party with respect to the Third-Party Claim; provided, however, that any failure on the part of an Indemnified
Party to so notify an Indemnifying Party shall not limit any of the obligations of the Indemnifying Party under this Article 6
(except to the extent such failure materially prejudices the defense of such Proceeding).

 

    -18-

     

    

 

(b) Upon
receipt of the notice described in Section 6.6(a), the Indemnifying Party will have the right to defend the Indemnified Party against
the Third-Party Claim with counsel reasonably satisfactory to the Indemnified Party, provided, that (i) the Indemnifying Party notifies
the Indemnified Party in writing within fifteen (15) days after the Indemnified Party has given notice of the Third-Party Claim that the
Indemnifying Party will indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party
may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim, (ii) the Indemnifying Party
provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the
financial resources to defend against the Third-Party Claim and fulfill its indemnification obligations hereunder, (iii) the Third-Party
Claim involves only money damages and does not seek an injunction or other equitable relief, (iv) settlement of, or an adverse judgment
with respect to, the Third-Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential
custom or practice adverse to the continuing business interests or the reputation of the Indemnified Party, and (v) the Indemnifying Party
conducts the defense of the Third-Party Claim actively and diligently. The Indemnifying Party will keep the Indemnified Party apprised
of all material developments, including settlement offers, with respect to the Third-Party Claim and permit the Indemnified Party to participate
in the defense of the Third-Party Claim. So long as the Indemnifying Party is conducting the defense of the Third-Party Claim in accordance
with this Section 6.6(b), the Indemnifying Party will not be responsible for any attorneys’ fees or other expenses incurred
by the Indemnified Party regarding the defense of the Third-Party Claim.

 

(c) In
the event that any of the conditions under Section 6.6(b) is or becomes unsatisfied, however, (i) the Indemnified Party may defend
against, and consent to the entry of any judgment on or enter into any settlement with respect to, the Third-Party Claim in any manner
it may reasonably deem appropriate, (ii) the Indemnifying Parties will reimburse the Indemnified Party promptly and periodically for the
costs of defending against the Third-Party Claim (including reasonable attorneys’ fees and expenses), and (iii) the Indemnifying
Parties will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating
to, in the nature of, or caused by the Third-Party Claim to the fullest extent provided in this Article 6.

 

(d) Except
in circumstances described in Section 6.6(c), neither the Indemnified Party nor the Indemnifying Party will consent to the entry
of any judgment or enter into any settlement with respect to the Third-Party Claim without the prior written Consent of the other party,
which Consent will not be unreasonably withheld or delayed.

 

6.7 Other
Indemnification Matters. All indemnification payments under this Article 6 will be deemed adjustments to the Purchase
Consideration. For purposes of determining whether there has been any misrepresentation or breach of a representation or warranty, and
for purposes of determining the amount of Adverse Consequences resulting therefrom, all qualifications or exceptions in any representation
or warranty relating to or referring to the terms “material”, “materiality”, “in all material respects”,
“Material Adverse Effect” or any similar term or phrase shall be disregarded, it being the understanding of the Parties that
for purposes of determining liability under this Article 6, the representations and warranties of the Parties contained in this
Agreement shall be read as if such terms and phrases were not included therein. Each Seller agrees that (a) such Seller will not make
any claim for indemnification against a Buyer Indemnitee by virtue of the fact that any of Sellers or such Seller’s equityholders,
directors, managers, partners, officers, employees, representatives or other Affiliates was an equityholder, partner, trustee, director,
manager, officer, employee or agent of the Company or was serving as an equityholder, partner, trustee, director, manager, officer, employee
or agent of any Person, regardless of the nature of the Adverse Consequences claimed, with respect to any Proceeding brought by any Buyer
Indemnitee against any Seller or any claim of any Buyer Indemnitee against any Seller in connection with this Agreement or the transactions
contemplated hereby, and (b) such Seller has no claims or rights to contribution or indemnity from the Company with respect to any amounts
paid by any Seller pursuant to this Article 6.

 

    -19-

     

    

 

6.8 Setoff.
If any Buyer Indemnitee makes a claim for indemnification in accordance with this Article 6 with respect to which Buyer commences
legal proceedings, then Buyer shall be entitled to recover any amounts due from Sellers under this Agreement by setting off such amounts
against any portion of the Earnout Amount corresponding to any Earnout Measurement Period or any other payment owed by Buyer pursuant
to Article 6. The exercise of such right of set off by Buyer, whether or not ultimately determined to be justified, will not
constitute a breach of this Agreement. Neither the exercise nor the failure to exercise such right of set off will constitute an election
of remedies or limit Buyer in any manner in the enforcement of any other remedies that may be available to Buyer.

 

6.9 Time
to Bring Claims. Subject to the limitations set forth in Section 6.3, pursuant to Section 8106, Title 10 of the Delaware
Code, the Parties agree that this Agreement involves at least U.S. $100,000, and that any Proceeding arising out of or relating to this
Agreement or the transactions contemplated by this Agreement may be brought within twenty (20) years of the date from which the underlying
cause of action accrued; it being the intention of the Parties that, except as otherwise expressly provided in Section 6.3
with respect to shorter periods of time, the Parties shall have the maximum amount of time permitted under the Laws of the State of Delaware
to bring a Proceeding arising out of or relating to this Agreement or the transactions contemplated herein. Except as otherwise expressly
provided in Section 6.3 with respect to shorter periods of time, each Party hereby waives the right to assert any statute
of limitations of less than twenty (20) years in defense of any such Proceeding; provided, however, that this waiver shall
not bar a defense to any Proceeding that was not commenced within the twenty (20) year time limit imposed by this Section 6.9.

 

ARTICLE 7

TAX MATTERS

 

The following provisions will
govern the allocation of responsibility as between Buyer, on the one hand, and Sellers, on the other hand, for certain Tax matters following
the Closing Date:

 

7.1 Tax
Indemnification. In addition to the indemnification provisions of Article 6, Sellers shall be liable for, and shall indemnify
and hold Buyer Indemnitees harmless from, (a) all Taxes of Sellers, (b) all Taxes imposed on or incurred by the Company with respect to
all Tax periods ending on or prior to the Closing Date, (c) for any Tax period that begins before the Closing Date and ends after the
Closing Date, all Taxes of the Company that relate to the portion of such Tax period ending on the Closing Date, and (d) all Taxes of
any Person imposed on any of the Company as a transferee or successor, by contract or otherwise, which Taxes relate to an event or transaction
occurring before the Closing.

 

    -20-

     

    

 

7.2 Tax
Periods Ending on or Before the Closing Date. Buyer will prepare, or cause to be prepared, and file, or cause to be filed, all Tax
Returns for the Company for all Tax periods ending on or prior to the Closing Date that are filed after the Closing Date. Buyer will provide
the Representative with copies of any such Tax Returns for the Representative’s reasonable review and comment, at least thirty (30)
days prior to the due date hereof (giving effect to any extensions thereto) in the case of income Tax Returns and as soon as practicable
in the case of all other Tax Returns. The Representative, on behalf of Sellers, will pay all Taxes due with respect to such Tax Returns
in accordance with Section 7.1.

 

7.3 Tax
Periods Beginning Before and Ending After the Closing Date. Buyer will prepare, or cause to be prepared, and file, or cause to be
filed, all Tax Returns for the Company for Tax periods that begin before the Closing Date and end after the Closing Date (the “Straddle
Period Returns”). Buyer will provide the Representative with copies of any Straddle Period Returns at least thirty (30) days
prior to the due date thereof (giving effect to any extensions thereto) in the case of income Tax Returns and as soon as practicable in
the case of all other Tax Returns, accompanied by a statement (the “Straddle Statement”) setting forth and calculating
in reasonable detail the Taxes that relate to the portion of such Tax period ending on the Closing Date (the “Pre-Closing Taxes”).
If the Representative agrees with the Straddle Period Returns and Straddle Statement, the Representative shall pay to Buyer, not later
than five (5) Business Days before the due date for the payment of Taxes with respect to such Straddle Period Returns, an amount equal
to the Pre-Closing Taxes as shown on the Straddle Statement. If, within twenty (20) days after the receipt of the Straddle Period Returns
and Straddle Statement, the Representative (a) notifies Buyer that it disputes the manner of preparation of the Straddle Period Returns
or the Pre-Closing Taxes calculated in the Straddle Statement and (b) provides Buyer with a statement setting forth in reasonable detail
its computation of the Pre-Closing Taxes and its proposed form of the Straddle Period Returns and Straddle Statement, then Buyer and the
Representative shall attempt to resolve their disagreement within five (5) days following the Representative’s notification of Buyer
of such disagreement. If Buyer and the Representative are not able to resolve their disagreement, the dispute shall be submitted to the
Accountants. The Accountants will resolve the disagreement within thirty (30) days after the date on which they are engaged or as soon
as possible thereafter. The determination of the Accountants shall be binding on the Parties. The cost of the services of the Accountants
will be borne by the Party whose calculation of the matter in disagreement differs the most from the calculation as finally determined
by the Accountants. If each of the Party’s calculation differs equally from the calculation as finally determined by the Accountants,
then such cost will be borne half by the Representative and half by Buyer. For purposes of this Section 7.3, in the case of any
Taxes that are imposed on a periodic basis and are payable for a Tax period that includes (but does not end on) the Closing Date, the
portion of such Tax that relates to the portion of such Tax period ending on the Closing Date (i.e., the Pre-Closing Taxes) will (a) in
the case of any Taxes other than Taxes based upon or related to income, receipts or payroll, be deemed to equal the amount of such Tax
for the entire Tax period multiplied by a fraction the numerator of which is the number of days in the Tax period ending on the Closing
Date and the denominator of which is the number of days in the entire Tax period, and (b) in the case of any Tax based upon or related
to income, receipts or payroll, be deemed to equal the amount that would be payable if the relevant Tax period ended on the Closing Date.

 

    -21-

     

    

 

7.4 Cooperation
on Tax Matters. Buyer and the Representative will cooperate, as and to the extent reasonably requested by the other Party, in connection
with the filing and preparation of Tax Returns pursuant to this Article 7 and any Proceeding related thereto. Such cooperation
will include the retention and (upon the other Party’s request) the provision of records and information that are reasonably relevant
to any such Proceeding and making employees available on a mutually convenient basis to provide additional information and explanation
of any material provided hereunder. Buyer and the Representative will retain all books and records with respect to Tax matters pertinent
to the Company relating to any Tax period beginning before the Closing Date until thirty (30) days after the expiration of the statute
or period of limitations of the respective Tax periods.

 

7.5 Certain
Taxes. All transfer (including real estate transfer), documentary, sales, use, stamp, registration and other such Taxes and fees (including
any penalties and interest) incurred in connection with this Agreement or the transactions contemplated hereby will be paid by Buyer,
when due, and Buyer will file all necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales,
use, stamp, registration and other Taxes and fees, and, if required by applicable Law, the Representative will join in the execution of
any such Tax Returns and other documentation.

 

ARTICLE 8

DEFINITIONS

 

“Accountants” means a nationally recognized firm
of independent certified public accountants mutually agreed to by the Parties.

 

“Adverse Consequences” means all Proceedings, Orders,
dues, penalties, fines, costs, amounts paid in settlement, liabilities, obligations, Taxes, Liens, losses, damages, deficiencies, costs
of investigation, court costs, and other expenses (including interest, penalties and reasonable attorneys’ fees and expenses, whether
in connection with Third Party Claims or claims among the Parties related to the enforcement of the provisions of this Agreement).

 

“Affiliate” means, with respect to the Person to
which it refers, (a) a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under
common control with, such Person, (b) any officer, director or shareholder of such Person, (c) any parent, sibling, descendant or spouse
of such Person or of any of the Persons referred to in clauses (a) and (b), and (d) any corporation, limited liability company, general
or limited partnership, trust, association or other business or investment entity that directly or indirectly, through one or more intermediaries
controls, is controlled by or is under common control with any of the foregoing individuals. For purposes of this definition, the term
“control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning set forth in the preface
above.

 

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“Ancillary Agreements” means all of the agreements
being executed and delivered pursuant to this Agreement.

 

“Applicable Area” means (a) anywhere in the world,
but if such area is determined by judicial action to be too broad, then it means (b) North America, but if such area is determined by
judicial action to be too broad, then it means (c) any country in which the Company engaged in any business prior to the Closing Date,
but if such area is determined by judicial action to be too broad, then it means (d) any state within the United States of America in
which the Company engaged in any business prior to the Closing Date.

 

“Business Day” means any day that is not a Saturday,
Sunday or any other day on which banks are required or authorized by Law to be closed in New York, New York.

 

“Buyer” has the meaning set forth in the preface
above.

 

“Buyer Common Stock” has the meaning set forth in
Section 2.2(f) above.

 

“Buyer Financial Statement” has the meaning set
forth in Section 2.2(h)(ii) above.

 

“Buyer Indemnitee” has the meaning set forth in
Section 6.1 above.

 

“Buyer Preferred Stock” has the meaning set forth
in Section 2.2(f) above.

 

“Buyer SEC Filings” has the meaning set forth in
Section 2.2(h)(i) above.

 

“Buyer Shares” has the meaning set forth in Section
1.2(a) above.

 

“Cap” has the meaning set forth in Section 6.4(b)
above.

 

“CERCLA” means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, and any applicable rules, regulations, directives, Orders, and guidance promulgated
thereunder, and any successor to such statute, rules, regulations, directives, Orders or guidance.

 

“Closing” has the meaning set forth in Section
1.8 above.

 

“Closing Date” has the meaning set forth in Section
1.8 above.

 

“Closing Statement” has the meaning set forth in
Section 1.3 above.

 

“COBRA” means the requirements of Part 6 of Subtitle
B of Title I of ERISA and Code §4980B and of any similar state Law.

 

    -23-

     

    

 

“Code” means the Internal Revenue Code of 1986,
as amended, and any applicable rules and regulations thereunder, and any successor to such statute, rules or regulations.

 

“Company” has the meaning set forth in the preface
above.

 

“Company IP Rights” has the meaning set forth in
Section 3.12(a).

 

“Company Securities” means all of the outstanding
equity of the Company, as set forth on Schedule 1.1.

 

“Confidential Information” means any information
concerning the business and affairs of the Company not already generally available to the public.

 

“Consent” means, with respect to any Person, any
consent, approval, authorization, permission or waiver of, or registration, declaration or other action or filing with or exemption by
such Person.

 

“Contract” means any oral or written contract, obligation,
understanding, commitment, lease, license, purchase order, bid or other agreement.

 

“Customer” means any Person who (a) purchased
products or services from the Company (or their predecessors) during the three years prior to the Closing Date, (b) was called upon
or solicited by the Company (or their predecessors) during such three year period, or (c) was a distributor, sales representative,
agent or broker for the Company during such three year period.

 

“Debt” means any (a) obligations relating to indebtedness
for borrowed money, (b) obligations evidenced by bonds, notes, debentures or similar instruments, (c) obligations in respect of capitalized
leases (calculated in accordance with GAAP), (d) the principal or face amount of banker’s acceptances, surety bonds, performance
bonds or letters of credit (in each case whether or not drawn), (e) obligations for the deferred purchase price of property or services,
including, without limitation, the maximum potential amount payable with respect to earnouts, purchase price adjustments or other payments
related to acquisitions (other than current accounts payable to suppliers and similar accrued liabilities incurred in the Ordinary Course
of Business, paid in a manner consistent with industry practice and reflected as a current liability in the Most Recent Balance Sheet),
(f) obligations under any existing interest rate, commodity or other swap, hedge or financial derivative agreement entered into by the
Company prior to Closing, (g) Off-Balance Sheet Financing of the Company in existence immediately prior to the Closing, (h) other long
term or non-ordinary course liabilities, (i) indebtedness or obligations of the types referred to in the preceding clauses (a) through
(h) of any other Person secured by any Lien on any assets of the Company, even though the Company has not assumed or otherwise become
liable for the payment thereof, (j) obligations in the nature of guarantees of obligations of the type described in clauses (a) through
(h) above of any other Person, in each case together with all accrued interest thereon and any applicable prepayment, redemption, breakage,
make-whole or other premiums, fees or penalties. For the avoidance of doubt, “Debt” shall not include the Sellers Loan Amount.

 

“Debt Amount” means all Debt of the Company (on
a consolidated basis) as of the Closing Date plus, without duplication, any amounts required to fully pay or otherwise satisfy
all such Debt (including, but not limited to, any prepayment premium or penalty, breakage costs, accrued interest and costs and expenses),
but excluding the Seller Loan Amount.

 

    -24-

     

    

 

“Designated Courts” has the meaning set forth in
Section 9.19 below.

 

“Designated Excluded Liabilities” means (a) any
Debt of the Company as of the Closing Date that did not reduce the Final Purchase Consideration (other than the Sellers Loan Amount),
(b) all Transaction Expenses that did not reduce the Final Purchase Consideration, (c) any and all liabilities or losses which accrue
or are otherwise incurred by the Company prior to the Closing, and (d) any obligation of the Company to indemnify or hold harmless any
current or former director, employee or officer of the Company for claims that relate to periods prior to the Closing, in each case (i)
including, without limitation, any of the foregoing arising from matters disclosed to Buyer or its Affiliates or otherwise referenced
in this Agreement, and whether any related claim arises before or after the Closing and (ii) whether such matters are known or unknown,
contingent or otherwise, whether accrued, liquidated, matured or unmatured.

 

“Disclosure Schedule” means the disclosure schedule
delivered by Sellers to Buyer on the date hereof.

 

“Drug” means a monoclonal antibody targeting alpha5
beta1 integrin currently in development by the Company as of the date hereof.

 

“Earnout Amount” means, with respect to each Earnout
Measurement Period, the amount determined pursuant to Section 1.5 above.

 

“Earnout Measurement Period” means, with respect
to a market, each of the consecutive twelve-month periods beginning on the date when the Company or Buyer, as applicable, first manufactures,
sells and distributes the Drug in such market, ending on the date that the Drug loses both (a) patent protection and (b) the regulatory
exclusivity described in Section 1.5; provided, that in the event that the last Earnout Measurement Period ends prior to
the full twelve months of such Earnout Measurement Period, any Net Sales payable for such Earnout Measurement Period shall be calculated
pursuant to Section 1.5 based on the Net Sales actually received at the time immediately prior to the end of such Earnout Measurement
Period and not on an annualized basis.

 

“Earnout Objections Statement” has the meaning specified
in Section 1.6 above.

 

“Earnout Report” has the meaning specified in Section
1.6 above.

 

“Employee Benefit Plan” means any (a) qualified
or nonqualified Employee Pension Benefit Plan or deferred compensation or retirement plan, fund, program, or arrangement, (b) Employee
Welfare Benefit Plan, (c) “employee benefit plan” (as such term is defined in ERISA §3(3)), (d) equity-based plan, program,
or arrangement (including any stock option, stock purchase, stock ownership, stock appreciation, phantom stock, or restricted stock plan)
or (e) other retirement, severance, bonus, profit-sharing, incentive, health, medical, surgical, hospital, indemnity, welfare, sickness,
accident, disability, death, apprenticeship, training, day care, scholarship, tuition reimbursement, education, adoption assistance, prepaid
legal services, termination, unemployment, vacation or other paid time off, change in control, or other similar plan, fund, program, or
arrangement, whether written or unwritten, that is sponsored, maintained, or contributed to, or required to be maintained or contributed
to, by the Company or any ERISA Affiliate for the benefit of any present or former officers, employees, agents, directors, consultants,
or independent contractors of the Company or an ERISA Affiliate.

 

    -25-

     

    

 

“Employee Pension Benefit Plan” has the meaning
set forth in ERISA §3(2).

 

“Employee Welfare Benefit Plan” has the meaning
set forth in ERISA §3(1).

 

“Employment Offer Letters” means those certain Employment
Offer Letters dated as of the date hereof between Buyer and each of the Key Executives, substantially in the form attached hereto as Exhibit
A.

 

“Enterprise Value” means $3,750,000.

 

“Environmental, Health, and Safety Requirements”
means all Laws and Orders concerning public health and safety, worker and occupational health and safety, natural resources and pollution
or protection of the environment, including all those relating to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control, or cleanup
of any Hazardous Substances, materials, or wastes, chemical substances, or mixtures, pesticides, pollutants, contaminants, toxic chemicals,
petroleum products or byproducts, fuel oil products and byproducts, mold, asbestos, polychlorinated biphenyls, noise, or radiation.

 

“ERISA” means the Employee Retirement Income Security
Act of 1974, as amended.

 

“ERISA Affiliate” means any Person that, together
with the Company, would be treated as a single employer under Section 414 of the Code or Section 4001 of ERISA and the regulations thereunder.

 

“FDA” means the Food and Drug Administration.

 

“Fiduciary” has the meaning set forth in ERISA §3(21).

 

“Final Purchase Consideration” means the number
of Buyer Shares issued to Sellers at the Closing calculated as follows: the Enterprise Value, (A) minus the sum of the Debt Amount
plus the Transaction Expenses Amount, in each case as set forth in the Closing Statement, (B) divided by $1.15.

 

“Fundamental Representations” has the meaning set
forth in Section 6.3 above.

 

“Financial Statements” has the meaning set forth
in Section 3.7(a) above.

 

“GAAP” means generally accepted accounting principles
in effect from time to time in the United States as set forth in pronouncements of the Financial Accounting Standards Board (and its predecessors)
and the American Institute of Certified Public Accountants.

 

    -26-

     

    

 

“Governmental Body” means any foreign or domestic
federal, state or local government or quasi-governmental authority or any department, agency, subdivision, court or other tribunal of
any of the foregoing.

 

“Hazardous Substances” means (a) petroleum or petroleum
products, flammable materials, explosives, radioactive materials, radon gas, lead-based paint, asbestos in any form, urea formaldehyde
foam insulation, polychlorinated biphenyls (PCBs), transformers or other equipment that contain dielectric fluid containing PCBs and toxic
mold or fungus of any kind or species, (b) any chemicals or other materials or substances which are defined as or included in the definition
of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “toxic substances,”
“toxic pollutants,” “contaminants,” “pollutants,” or words of similar import under any applicable
Environmental, Health, and Safety Requirements, and (c) any other chemical, material or substance exposure to which is prohibited,
limited or regulated under any applicable Environmental, Health, and Safety Requirements.

 

“Improvements” means all buildings, structures,
fixtures, building systems and equipment, and all components thereof (including the roof, foundation and structural elements), included
in the Real Property.

 

“Indemnified Party” has the meaning set forth in
Section 6.6(a) above.

 

“Indemnifying Party” has the meaning set forth in
Section 6.6(a) above.

 

“Intellectual Property” means all of the following
in any jurisdiction throughout the world: (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice),
all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations,
continuations-in-part, divisions, extensions, and reexaminations thereof, as well as patent term extensions and supplementary protection
certificates based thereon, (b) all trademarks, service marks, trade dress, logos, slogans, trade names, corporate and business names,
Internet domain names, and rights in telephone numbers, together with all translations, adaptations, derivations, and combinations thereof
and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications,
registrations, and renewals in connection therewith, (e) all trade secrets and confidential business information (including ideas, research
and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data and information,
designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals),
(f) all Software, (g) all material advertising and promotional materials, (h) all other proprietary rights, and (i) all copies and tangible
embodiments thereof (in whatever form or medium).

 

“Intellectual Property Licenses” means any Contract
pursuant to which the Company uses Intellectual Property which is not owned by the Company or pursuant to which the Company grants any
other Person the right to use any Intellectual Property owned by the Company.

 

“Key Executives” means, collectively, Graeme Currie,
Michael Leviten, and Lisa Ryner.

 

    -27-

     

    

 

“Knowledge” means (a) in the case of an individual,
the actual or constructive knowledge of such individual, upon reasonable inquiry, (b) in the case of the Company, the actual knowledge
of each Seller, and each Key Executive, in each case upon reasonable inquiry, and (c) in the case of Buyer, the actual knowledge of Tiago
Reis Marques and Mathew Lazarus, in each case, upon reasonable inquiry.

 

“Law” means any foreign or domestic federal, state
or local law, statute, code, ordinance, regulation, rule, consent agreement, constitution or treaty of any Governmental Body, including
common law.

 

“Leased Real Property” means all leasehold or subleasehold
estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures or other interest in real property held
by the Company.

 

“Leases” means all written or oral leases, subleases,
licenses, concessions and other agreements, including all amendments, extensions, renewals, guaranties, and other agreements with respect
thereto, pursuant to which the Company holds any Leased Real Property.

 

“Lien” means any lien (including liens of landlords,
carriers, warehousemen, workmen, repairmen, mechanics, materialmen and similar liens, whether or not arising in the Ordinary Course of
Business and whether or not incurred in connection with the borrowing of money), mortgage, pledge, encumbrance, charge, security interest,
adverse claim, liability, interest, charge, preference, priority, proxy, transfer restriction (other than restrictions under the Securities
Act and state securities laws), encroachment, Tax, order, community property interest, equitable interest, option, warrant, right of first
refusal, easement, profit, license, servitude, right of way, covenant or zoning restriction.

 

“Material Adverse Effect” or “Material
Adverse Change” means any event, change, development, or effect that, individually or in the aggregate, will or could reasonably
be expected to have a materially adverse effect on (a) the business, operations, assets (including intangible assets), liabilities, prospects,
operating results, value, employee, customer or supplier relations, or financial condition of the Company or (b) the ability of the Company
or Sellers to consummate timely the transactions contemplated by this Agreement.

 

“Material Contracts” means, collectively, the Contracts
required to be listed in Section 3.13(a) of the Disclosure Schedule, the Leases, and the Intellectual Property Licenses.

 

“Most Recent Balance Sheet” means the balance sheet
contained within the Most Recent Financial Statements.

 

“Most Recent Financial Statements” has the meaning
set forth in Section 3.7(a) above.

 

“Most Recent Fiscal Month End” has the meaning set
forth in Section 3.7(a) above.

 

“Most Recent Fiscal Year End” has the meaning set
forth in Section 3.7(a) above.

 

“Multiemployer Plan” has the meaning set forth in
ERISA §3(37).

 

    -28-

     

    

 

“Net Sales” means the amounts received by Buyer
or any of its Affiliates and sublicensees from the commercial use of the Drug, or the commercial sale of the Drug, from non-affiliated
third parties in arm’s length transactions, minus, to the extent such deductions or allowances can be documented by Buyer:
(i) shipping costs (including freight, postage, handling and standard transportation charges such as insurance and packing and distribution
charges), (ii) allowances or credits because of returned, rejected or recalled Drug products as actually allowed, (iii) other discounts,
credits and allowances including normal and customary quantity discounts, cash discounts (including discounts for prompt payment), and
customary trade promotional allowances and credits (including adjustments such as those granted on account of co-pay reduction programs,
price adjustments, billing errors, damaged goods, rebates, chargeback rebates, fees, reimbursements or similar payments granted or given
to wholesalers or other distributors, buying groups, healthcare insurance carriers, group purchasing organizations, managed health care
organizations, wholesalers, pharmacy benefit management or similar organizations, federal, state/provincial, local and other Governmental
Bodies, including their trade customers or other institutions), and discounts mandated by or granted in response to Law, retroactive price
reductions or rebates paid or credited to any Governmental Body or third party payor, administrator or contractee, including in respect
of any government subsidized program (including, without limitation, Medicare and Medicaid rebates), and (iv) Taxes including import,
export, use, excise and sales Taxes, tariffs and duties (including customs duties) and other governmental charges imposed on the importation,
use or sale of the Drug (including without limitation, value-added and withholding Taxes). For the avoidance of doubt, Net Sales shall
exclude (a) any gains or losses from the collection of the proceeds of any insurance policies or settlements, (b) any restoration to income
of any contingency reserve, except to the extent that provision for such reserve was made out of income accrued during any Earnout Measurement
Period, (c) any income or gain or loss during such period from (i) any prior period adjustments resulting from any change in accounting
principles in accordance with GAAP or (ii) any discontinued operations of Buyer or its Affiliates (including the Company) or disposition
thereof, and (d) any gains or losses resulting from the retirement or extinguishment of Debt or the acquisition or disposition of any
securities.

 

“Off-Balance Sheet Financing” means (a) any liability
of the Company under any sale and leaseback transactions which does not create a liability on the consolidated balance sheet of the Company
and (b) any liability of the Company under any synthetic lease, Tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product where the transaction is considered indebtedness for borrowed money for federal income Tax purposes but is classified
as an operating lease in accordance with GAAP for financial reporting purposes.

 

“Order” means any order, award, decision, injunction,
judgment, ruling, decree, charge, writ, subpoena or verdict entered, issued, made or rendered by any Governmental Body or arbitrator.

 

“Ordinary Course of Business” means the ordinary
course of business consistent with past custom and practice (including with respect to quantity and frequency).

 

“Organizational Documents” means (a) any certificate
or articles of incorporation, bylaws, certificate or articles of formation, operating agreement, stockholders’ agreement, limited
liability company agreement, voting agreement, right of co-sale and right of first refusal agreement, or partnership agreement, (b) any
documents comparable to those described in clause (a) as may be applicable pursuant to any Law and (c) any amendment or modification to
any of the foregoing.

 

    -29-

     

    

 

“Owned Real Property” means all the real property
with respect to which the Company has fee simple title.

 

“Party” has the meaning set forth in the preface
above.

 

“Permit” means any license, import license, export
license, franchise, Consent, permit, certificate, certificate of occupancy or Order issued by any Person.

 

“Permitted Lien” means any (a) liens for Taxes (i)
not yet due or payable or (ii) that the Company is contesting in good faith through appropriate Proceedings in a timely manner for which
adequate reserves have been established and shown on the Most Recent Balance Sheet, (b) restrictions, easements, covenants, reservations,
rights of way or other similar matters of title to the Leased Real Property of record, and (c) zoning ordinances, restrictions, prohibitions
and other requirements imposed by any Governmental Body, all of which do not materially interfere with the conduct of the business of
the Company.

 

“Person” means any individual, corporation, partnership,
limited liability company, firm, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Body
or other entity.

 

“Pre-Closing Taxes” has the meaning set forth in
Section 7.3 above.

 

“Proceeding”
means any action, audit, proceeding, hearing, charge, complaint, claim, demand, lawsuit, litigation, investigation or arbitration (in
each case, whether civil, criminal or administrative) brought before any Person pending by or before any Governmental Body or arbitrator.

 

“Prohibited Transaction” has the meaning set forth
in ERISA §406 and Code §4975.

 

“Pro Rata Percentage” has the meaning set forth
in Section 1.2(a) above.

 

“Purchase Consideration” has the meaning set forth
in Section 1.2 above.

 

“Real Property” means the Leased Real Property and
the Owned Property.

 

“Registration Statement” has the meaning set forth
in Section 4.10 above.

 

“Released Claims” has the meaning set forth in Section
4.8 above.

 

“Released Parties” has the meaning set forth in
Section 4.8 above.

 

“Releasors” has the meaning set forth in Section
4.8 above.

 

“Representative” has the meaning set forth in the
preface above.

 

    -30-

     

    

 

“Restricted Business” means any business and operations
(including research, discovery, development, production, distribution, and sale of treatments) primarily related to, involving or otherwise
utilizing a monoclonal antibody targeting alpha5 beta1 integrin for central nervous system disorders.

 

“Restricted Period” means a period of five years
following the Closing.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933,
as amended, and any applicable rules and regulations thereunder, and any successor to such statute, rules or regulations.

 

“Securities Exchange Act” means the Securities Exchange
Act of 1934, as amended, and any applicable rules and regulations thereunder, and any successor to such statute, rules or regulations.

 

“Seller” or “Sellers” has the
meaning set forth in the preface above.

 

“Seller Indemnitees” has the meaning set forth in
Section 6.2 above.

 

“Seller Loan Amount” has the meaning set forth in
Section 1.9 above.

 

“Straddle Period Returns” has the meaning set forth
in Section 7.3 above.

 

“Straddle Statement” has the meaning set forth in
Section 7.3 above.

 

“Software” means computer software programs (and
all enhancements, versions, releases, and updates thereto), including software compilations, software tool sets, compilers, higher level
or “proprietary” languages and all related programming and user documentation, whether in source code, object code or human
readable form, or any translation or modification thereof that substantially preserves its original identity.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association, or other business entity of which (a) if a corporation, a majority
of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of
the other Subsidiaries of that Person or a combination thereof or (b) if a limited liability company, partnership, association, or other
business entity (other than a corporation), a majority of partnership or other similar ownership or equity interest thereof is at the
time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and
for this purpose, a Person or Persons owns a majority ownership or equity interest in such a business entity (other than a corporation)
if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be or control any manager,
management board, managing director or general partner of such business entity (other than a corporation). The term “Subsidiary”
shall include all Subsidiaries of such Subsidiary.

 

    -31-

     

    

 

“Tax” or “Taxes” means any federal,
state, local and foreign net income, alternative or add-on minimum, estimated, gross income, gross receipts, sales, use, ad valorem, value
added, transfer, franchise, capital profits, lease, service, license, withholding, payroll, employment, excise, severance, stamp, occupation,
premium, property, abandoned property or escheat, environmental or windfall profit tax, customs duty or other tax, governmental fee or
other like assessment or charge (and any liability incurred or borne by virtue of the application of Treasury Regulation Section 1.1502-6
(or any similar or corresponding provision of state, local or foreign Law), as a transferee or successor, by contract or otherwise), together
with all interest, penalties, additions to tax and additional amounts with respect thereto.

 

“Tax Return” means any return, declaration, report,
claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

 

“Third Party Claim” has the meaning set forth in
Section 6.6(a) above.

 

“Threshold” has the meaning set forth in Section
6.4(a) above.

 

“Transaction Expenses” means any and all (a) legal,
accounting, tax, financial advisory, environmental consultants and other professional or transaction related costs, fees and expenses
incurred by the Company in connection with this Agreement or in investigating, pursuing or completing the transactions contemplated hereby
(including any amounts owed to any consultants, auditors, accountants, attorneys, brokers or investment bankers), (b) payments,
bonuses or severance which become due or are otherwise required to be made as a result of or in connection with the Closing or as a result
of any change of control or other similar provisions, and (c) payroll, employment or other Taxes, if any, required to be paid by Buyer
(on behalf of the Company) or the Company with respect to the amounts payable pursuant to this Agreement, the amounts described in clause (a)
and (b), or the forgiveness of any loans or other obligations owed by Sellers or Company employees in connection with the transactions
contemplated by this Agreement. “Transaction Expenses Amount” means an amount equal to all Transaction Expenses that
have not been paid prior to the Closing Date, whether or not the Company or Sellers, as applicable, have been billed for such expenses.

 

“Transfer Agent” means Vstock Transfer LLC.

 

“Warrants” has the meaning set forth in Section
1.2(b) above.

 

ARTICLE 9

MISCELLANEOUS

 

9.1 Press
Releases and Public Announcements. Neither the Representative nor any Seller shall issue any press release or make any public announcement
relating to the subject matter of this Agreement without the prior written approval of Buyer; provided, however, that any
Party may make any public disclosure it believes in good faith is required by applicable Law (in which case the disclosing Party will
use its reasonable best efforts to advise the other Parties prior to making the disclosure).

 

    -32-

     

    

 

9.2 No
Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

 

9.3 Entire
Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the Parties and supersedes
any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they relate in any way
to the subject matter hereof.

 

9.4 Succession
and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of Buyer and the Representative; provided, however, that Buyer may (a) assign any or all of its rights
and interests hereunder to one or more of its Affiliates and designate one or more of its Affiliates to perform its obligations hereunder
(in any or all of which cases Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder), (b)
assign its rights under this Agreement for collateral security purposes to any lenders providing financing to Buyer or any of its Subsidiaries
or Affiliates or (c) assign its rights under this Agreement to any Person that acquires the Company or any of its assets.

 

9.5 Counterparts.
This Agreement may be executed in one or more counterparts (including by means of electronic mail), each of which shall be deemed an original
but all of which together will constitute one and the same instrument.

 

9.6 Headings.
The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

9.7 Notices.
All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim, or
other communication hereunder shall be deemed duly given (a) when delivered personally to the recipient, (b) when sent by electronic
mail, on the date of transmission to such recipient, (c) one Business Day after being sent to the recipient by reputable overnight
courier service (charges prepaid), or (d) four Business Days after being mailed to the recipient by certified or registered mail,
return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below:

 

	 	If to Sellers or the Representative:	
    PD Joint Holdings, LLC Series 2016-A or Paul B. Manning

    c/o Tiger Lily Capital, LLC

    200 Garrett Street, Suite O

    Charlottesville, Virginia 22902

    Attention: Legal Department

    Email: legal@pbmcap.com

     

	 	If to Buyer:	
    c/o Pasithea Therapeutics Corp.

    1111 Lincoln Road, Suite 500

    Miami Beach, Florida

    Attention: Tiago Reis Marques

    Email: tiago@pasithea.com

     

	 	Copy to:	
    McDermott Will & Emery LLP

    One Vanderbilt Avenue

    New York, NY 10017

    Attention: Robert Cohen

    Email:  rcohen@mwe.com

     

Any Party may change the address to which notices,
requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein
set forth.

 

    -33-

     

    

 

9.8 Governing
Law. This Agreement and any claim, controversy or dispute arising out of or related to this Agreement, any of the transactions contemplated
hereby, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties, whether arising
in contract, tort, equity or otherwise, shall be governed by and construed in accordance with the domestic Laws of the State of Delaware
(including in respect of the statute of limitations or other limitations period applicable to any such claim, controversy or dispute),
without giving effect to any choice or conflict of Law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of Delaware.

 

9.9 Amendments
and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Buyer
and the Representative. No waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty
or covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Party making such
waiver nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

9.10 Injunctive
Relief. Sellers and the Representative hereby agree that, in the event of breach of this Agreement, damages would be difficult, if
not impossible, to ascertain, that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached, and that the character, periods and geographical area and the scope
of the restrictions on Sellers’ activities in Section 4.5 are fair and reasonably required for the protection of Buyer and
its Affiliates (including the Company). It is accordingly agreed that, in addition to and without limiting any other remedy or right it
may have, Buyer shall be entitled to an injunction or other equitable relief in any court of competent jurisdiction, without any necessity
of proving damages or any requirement for the posting of a bond or other security, enjoining any such breach (including a breach of Sections
4.5 and 4.9), and enforcing specifically the terms and provisions. Sellers and the Representative hereby waive any and all
defenses they may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief.

 

9.11 Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

 

9.12 Expenses.
Except as otherwise expressly provided in this Agreement, each Party will bear its own costs and expenses (including legal fees and expenses)
incurred in connection with the negotiation, drafting and execution of, and performance under, this Agreement and the transactions contemplated
hereby.

 

    -34-

     

    

 

9.13 Construction.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted collectively by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference
to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The
word “including” shall mean “including without limitation” and the word “or” shall mean “and/or.”

 

9.14 Incorporation
of Exhibits and Disclosure Schedule. The Exhibits, Disclosure Schedule and other Schedules identified in this Agreement are incorporated
herein by reference and made a part hereof.

 

9.15 Confidentiality.
The Representative and each Seller shall treat and hold as confidential all of the terms and conditions of the transactions contemplated
by this Agreement and the other Ancillary Agreements, including the Purchase Consideration and each of its components; provided,
however, that the Representative or any Seller may disclose such information to its legal counsel, accountants, financial planners
and/or other advisors on an as-needed basis so long as any such Person is bound by a confidentiality obligation with respect thereto.

 

9.16 Representative.

 

(a) Each
Seller hereby appoints the Representative for and on behalf of Sellers to give and receive notices and communications in connection with
this Agreement and the transactions contemplated hereby, to authorize and agree to adjustments to the Purchase Consideration and Earnout
Amount under Article 1 and other applicable provisions of this Agreement, to authorize distribution of the Purchase Consideration
(including the Earnout Amount), to take all actions on behalf of Sellers pursuant to this Agreement and any Ancillary Agreement to which
such Seller is a party, and to take all actions necessary or appropriate in the judgment of the Representative for the accomplishment
of the foregoing. More specifically, the Representative shall have the authority to make all decisions and determinations and to take
all actions (including giving Consents or agreeing to any amendments to this Agreement or any Ancillary Agreement to which it is a party
or to the termination hereof or thereof) required or permitted hereunder on behalf of each such Seller, and any such action, decision
or determination so made or taken shall be deemed the action, decision or determination of each such Seller, and any notice, communication,
document, certificate or information required (other than any notice required by Law or under the Company’s Organizational Documents)
to be given to any Seller hereunder or pursuant to any Ancillary Agreement shall be deemed so given if given to the Representative. Without
limiting the generality of the foregoing, the Representative shall be authorized, in connection with the Closing, to execute all certificates,
documents and agreements on behalf of and in the name of Sellers necessary to effectuate the Closing and related transactions. The Representative
shall be authorized to take all actions on behalf of Sellers in connection with any claims made under Articles 6 or 7 of
this Agreement, to defend or settle such claims, and to make payments in respect of such claims on behalf of Sellers. Sellers may remove
or replace the Representative by a vote of holders that own a majority of the Company Securities immediately prior to the Closing upon
not less than ten (10) Business Days’ prior written notice to Buyer. No bond will be required of the Representative, and the Representative
will receive no compensation for its services. Notices or communications to or from the Representative will constitute notice to or from
each of Sellers.

 

    -35-

     

    

 

(b) The
Representative will not be liable for any act done or omitted hereunder as the Representative while acting in good faith and not in a
manner constituting gross negligence, criminality, fraud or willful misconduct, and any act done or omitted pursuant to the advice of
counsel will be conclusive evidence of such good faith. Sellers will severally indemnify the Representative and hold the Representative
harmless against any Adverse Consequences incurred without gross negligence, criminality, fraud or willful misconduct on the part of the
Representative and arising out of or in connection with the acceptance or administration of the Representative’s duties hereunder.

 

(c) A
decision, act, Consent or instruction of the Representative will constitute a decision of all Sellers and will be final, binding and conclusive
upon each such Seller, and Buyer may rely upon any such decision, act, Consent or instruction of the Representative as being the decision,
act, Consent or instruction of each such Seller. The Buyer Indemnitees are hereby relieved from any Adverse Consequences to any Person
for any acts done by such Buyer Indemnitees in accordance with such decision, act, Consent or instruction of the Representative.

 

(d) Buyer
shall be entitled to deal exclusively with the Representative on all matters relating to this Agreement and shall be entitled to rely
conclusively (without further evidence of any kind whatsoever) on any document executed or purported to be executed on behalf of any Seller
by the Representative, and on any other action taken or purported to be taken on behalf of any Seller by the Representative, as being
fully binding upon such Seller, and no Seller shall have the right to object to, dissent from, protest or otherwise contest the same.
No Seller shall institute any Proceeding against the Representative or its Affiliates or representatives alleging that the Representative
did not have the authority to act as the Representative on such Seller’s behalf, and Buyer shall not be held liable or accountable
in any manner for any act or omission of the Representative in such capacity.

 

(e) The
provisions of this Section 9.16, including the power of attorney granted hereby, are independent and severable, are irrevocable
and coupled with an interest, are being granted in part as an inducement to the Parties hereto to enter into this Agreement, and shall
not be terminated by any act of any Seller or by operation of Law, whether by death or other event.

 

9.17 Schedules.
Nothing in the schedules hereto shall be deemed adequate to disclose an exception to a representation or warranty made herein unless the
schedule identifies the exception with reasonable particularity and describes the relevant facts in reasonable detail. Without limiting
the generality of the foregoing, the mere listing (or inclusion of a copy) of a document or other item shall not be deemed adequate to
disclose an exception to a representation or warranty made herein (unless the representation or warranty has to do with the existence
of the document or other item itself). The Parties intend that each representation, warranty, and covenant contained herein shall have
independent legal significance. If any Party has breached any representation, warranty or covenant contained herein in any respect, the
fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels
of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first
representation, warranty, or covenant.

 

    -36-

     

    

 

9.18 Waiver
of Jury Trial. EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OR RELATED TO THIS AGREEMENT IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT
BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT
CLAIMS OR OTHERWISE. THE PARTIES AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS
AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT.

 

9.19 Exclusive
Venue. THE PARTIES AGREE THAT ALL DISPUTES, LEGAL ACTIONS, SUITS AND PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT MUST
BE BROUGHT EXCLUSIVELY IN A STATE OR FEDERAL DISTRICT COURT LOCATED IN THE STATE OF DELAWARE (COLLECTIVELY THE “DESIGNATED COURTS”).
EACH PARTY HEREBY CONSENTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE DESIGNATED COURTS. NO LEGAL ACTION, SUIT OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN ANY OTHER FORUM. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL CLAIMS OF IMMUNITY FROM JURISDICTION
AND ANY OBJECTION WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING IN ANY DESIGNATED
COURT, INCLUDING ANY RIGHT TO OBJECT ON THE BASIS THAT ANY DISPUTE, ACTION, SUIT OR PROCEEDING BROUGHT IN THE DESIGNATED COURTS HAS BEEN
BROUGHT IN AN IMPROPER OR INCONVENIENT FORUM OR VENUE. EACH OF THE PARTIES ALSO AGREES THAT DELIVERY OF ANY PROCESS, SUMMONS, NOTICE OR
DOCUMENT TO A PARTY HEREOF IN COMPLIANCE WITH SECTION 9.7 OF THIS AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY
ACTION, SUIT OR PROCEEDING IN A DESIGNATED COURT WITH RESPECT TO ANY MATTERS TO WHICH THE PARTIES HAVE SUBMITTED TO JURISDICTION AS SET
FORTH ABOVE.

 

[Remainder of Page Intentionally Left Blank]

 

    -37-

     

    

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement
as of the date first above written.

 

	 	BUYER:
	 	 
	 	Pasithea Therapeutics Corp.
	 	 	 
	 	By:	/s/ Tiago Reis Marques
	 	Name:	Tiago Reis Marques
	 	Title:	Chief Executive Officer
	 	 	 
	 	COMPANY:
	 	 
	 	Alpha-5 Integrin, LLC
	 	 	 
	 	By:	/s/ Graeme Currie
	 	Name:	Graeme Currie
	 	Title:	Chief Executive Officer
	 	 	 
	 	SELLERS:
	 	 
	 	PD Joint Holdings, LLC Series 2016-A
	 	By:	Tiger Lily Capital, LLC, its Manager
	 	 	 
	 	/s/ Paul B. Manning
	 	Name:	Paul B. Manning
	 	Title:	Manager
	 	 	 
	 	/s/ Bradford Manning
	 	Name:	Bradford Manning
	 	Title:	Manager
	 	 	 
	 	/s/ Larry Steinman
	 	Name:	Larry Steinman
	 	 	 
	 	REPRESENTATIVE:
	 	 
	 	/s/ Paul Manning
	 	Name:	Paul Manning

 

     

     

    

 

Schedule 1.1

 

Sellers

 

	Seller	 	Company Securities	 	Pro Rata

 Percentage	 	 	Buyer Shares	 	 	Warrants	 
	PD Joint Holdings, LLC Series 2016-A	 	8,000 Common Units	 	 	80	%	 	 	2,608,696	 	 	 	800,000	 
	Larry Steinman	 	2,000 Common Units	 	 	20	%	 	 	652,174	 	 	 	200,000Exhibit 4.4

 

WORKDAY, INC.

 

2022
EQUITY INCENTIVE PLAN

 

1.              PURPOSE.
The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions
are important to the success of Workday, and any Parents, Affiliates and Subsidiaries that exist now or in the future, by offering them
an opportunity to participate in Workday’s future performance through the grant of Awards. Capitalized terms not defined elsewhere
in the text are defined in Section 29.

 

2.             SHARES
SUBJECT TO THE PLAN.

 

2.1            Number
of Shares Available. Subject to Sections 2.4 and 21 and any other applicable provisions hereof, the total number of Shares reserved
and available for grant and issuance pursuant to this Plan as of the date of adoption of the Plan by the Board, is Thirty Million (30,000,000)
Shares plus (i) shares that are subject to stock options or other awards granted under Workday’s 2012 Equity Incentive Plan,
as amended and Workday’s 2005 Stock Plan, as amended (collectively, the “Prior Plans”) that cease to be
subject to such stock options or other awards by forfeiture or otherwise after the Effective Date, (ii) shares issued under the Prior
Plans before or after the Effective Date pursuant to the exercise of stock options that are, after the Effective Date, forfeited, (iii) shares
issued under the Prior Plans that are repurchased by Workday at the original issue price or otherwise forfeited, and (iv) shares
that are subject to stock options or other awards under the Prior Plans that are used to pay the exercise price of an option or withheld
to satisfy the withholding obligations for Tax-Related Items related to any award.

 

2.2            Lapsed,
Returned Awards. Shares subject to Awards, and Shares issued under the Plan under any Award, will again be available for grant and
issuance in connection with subsequent Awards under this Plan to the extent such Shares: (i) are subject to issuance upon exercise
of an Option or SAR granted under this Plan but which cease to be subject to the Option or SAR for any reason other than exercise of the
Option or SAR; (ii) are subject to Awards granted under this Plan that are forfeited or are repurchased by Workday at the original
issue price or otherwise forfeited; (iii) are subject to Awards granted under this Plan that otherwise terminate without such Shares
being issued; or (iv) are surrendered pursuant to an Exchange Program. To the extent an Award under the Plan is paid out in cash
rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Shares used
to pay the exercise price of an Award or withheld to satisfy the tax withholding obligations related to an Award will become available
for future grant or sale under the Plan. For the avoidance of doubt, Shares that otherwise become available for grant and issuance because
of the provisions of this Section 2.2 will not include Shares subject to Awards that initially became available because of the substitution
clause in Section 21.2 hereof.

 

2.3            Minimum
Share Reserve. At all times Workday will reserve and keep available a sufficient number of Shares as will be required to satisfy the
requirements of all outstanding Awards granted under this Plan.

 

    	 	 	 

     

    

 

2.4            Adjustment
of Shares. If the number or class of outstanding Shares is changed by a stock dividend, extraordinary dividend or distribution (whether
in cash, shares or other property, other than a regular cash dividend), recapitalization, stock split, reverse stock split, subdivision,
combination, consolidation, reclassification, spin off, or similar change in the capital structure of Workday, without consideration,
then, as applicable, (i) the number and class of Shares reserved for issuance and future grant under the Plan set forth in Section 2.1,
(ii) the Exercise Prices of and number and class of Shares subject to outstanding Options and SARs, (iii) the number and class
of Shares subject to other outstanding Awards, and (iv) the maximum number and class of Shares that may be issued as ISOs set forth
in Section 5.8 will be proportionately adjusted, subject to any required action by the Committee, Board, and/or the stockholders
of Workday and in compliance with applicable securities laws, provided that fractions of a Share will not be issued.

 

If, by reason of an adjustment
pursuant to this Section 2.4, a Participant’s Award Agreement or other agreement related to any Award or the Shares subject
to such Award covers additional or different shares of stock or securities, then such additional or different shares, and the Award Agreement
or such other agreement in respect thereof, will be subject to all of the terms, conditions and restrictions which were applicable to
the Award or the Shares subject to such Award prior to such adjustment.

 

3.             ELIGIBILITY.
ISOs may be granted only to Employees. All other Awards may be granted to Employees, Consultants, and Directors; provided that such Consultants,
and Directors render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction.

 

4.             ADMINISTRATION.

 

4.1           Committee
Composition; Authority. This Plan will be administered by the Committee or by the Board acting as the Committee, and such administration
may be delegated as set forth in Section 4.1(s) below. Subject to the general purposes, terms and conditions of this Plan, and
to the direction of the Board, the Committee will have full power to implement and carry out this Plan. The Committee will have the authority
to:

 

(a)            construe
and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

 

(b)            prescribe,
amend and rescind rules and regulations relating to this Plan or any Award;

 

(c)            select
eligible Employees, Consultants and Directors to receive Awards;

 

(d)            determine
the form and terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions
include, but are not limited to, the Exercise Price, the time or times when Awards may vest, be exercised or settled (which may be based
on, among other things, performance criteria, Termination due to retirement, death or Disability), any vesting acceleration or waiver
of forfeiture restrictions, the method to satisfy withholding obligations for Tax-Related Items or any other tax liabilities legally due,
and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Committee
will determine;

 

    	 	2	 

     

    

 

(e)            determine
the number of Shares or other consideration subject to Awards;

 

(f)             determine
the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market Value in connection
with circumstances that impact the Fair Market Value, if necessary;

 

(g)            determine
whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under
this Plan or any other incentive or compensation plan of Workday or any Parent, Subsidiary or Affiliate of Workday;

 

(h)            grant
waivers of Plan or Award conditions;

 

(i)             determine
the vesting, exercisability and payment of Awards;

 

(j)             correct
any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;

 

(k)            determine
whether an Award has been vested and/or earned;

 

(l)             determine
the terms and conditions of, and institute any, Exchange Program;

 

(m)           reduce,
modify or waive any criteria with respect to Performance Factors;

 

(n)            adjust
Performance Factors to take into account changes in law and accounting or tax rules as the Committee deems necessary or appropriate
to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships;

 

(o)            adopt
terms and conditions, rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and
administration of the Plan to accommodate requirements of local law and procedures or to facilitate the administration of the Plan outside
of the United States (“U.S.”) or to qualify Awards for special tax treatment under the laws of jurisdictions
other than the U.S.;

 

(p)            exercise
discretion with respect to Performance Awards;

 

(q)            make
determinations with respect to the suspension or modification of vesting of Awards while Participants are on a leave of absence, or as
a result of a reduction in hours worked (for example and for illustrative purposes only, a change in schedule from that of full-time or
part-time), provided that in no event may an Award be exercised after the expiration of the term set forth in the Award Agreement;

 

(r)             make
all other determinations necessary or advisable for the administration of this Plan;

 

    	 	3	 

     

    

 

(s)            delegate
any of the foregoing as permitted by applicable law to a subcommittee or to one or more executive officers pursuant to a specific delegation,
including but not limited to pursuant to Section 157(c) of the Delaware General Corporation Law, in which case references to
 “Committee” in this Section 4.1 will refer to such delegate(s); and

 

(t)             adopt
policies or programs relating to the foregoing.

 

4.2           Committee
Interpretation and Discretion. Any determination made by the Committee with respect to any Award will be made in its sole discretion
at the time of grant of the Award or, unless in contravention of any express term of the Plan or Award, at any later time, and such determination
will be final and binding on Workday and all persons having an interest in any Award under the Plan. Any dispute regarding the interpretation
of the Plan or any Award Agreement will be submitted by the Participant or Workday to the Committee for review. The resolution of such
a dispute by the Committee will be final and binding on Workday and the Participant. The Committee may delegate to one or more executive
officers the authority to review and resolve disputes with respect to Awards held by Participants who are not Insiders, in which case
references to “Committee” in this Section 4.2 will refer to such delegate(s) and any such resolution will be final
and binding on Workday and the Participant.

 

4.3           Section 16
of the Exchange Act. Awards granted to Insiders must be approved by two or more “non-employee directors” (as defined
in the regulations promulgated under Section 16 of the Exchange Act).

 

4.4           Documentation.
The Award Agreement for a given Award, the Plan and any other documents may be delivered to, and accepted by, a Participant or any other
person in any manner (including electronic distribution or posting) determined by Workday.

 

4.5           Non-U.S.
Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to facilitate compliance with the laws and
practices in other jurisdictions in which Workday and its Subsidiaries or Affiliates operate or have Employees or other individuals eligible
for Awards or to facilitate the operation and administration of the Plan in such jurisdictions, the Committee, in its sole discretion,
will have the power and authority to: (a) determine which Subsidiaries and Affiliates will be covered by the Plan; (b) determine
which individuals outside the U.S. are eligible to participate in the Plan (which may include individuals who provide services to Workday,
a Subsidiary or Affiliate under an agreement with a non-U.S. nation or agency); (c) modify the terms and conditions of any Award
granted to individuals outside the U.S. or non-U.S. nationals to facilitate compliance with applicable laws, policies, customs and practices;
(d) establish subplans and modify exercise procedures, vesting conditions, and other terms and procedures, to the extent the Committee
determines such actions to be necessary or advisable (and such subplans and/or modifications will be attached to this Plan as appendices,
if necessary); provided, however, that no such subplans and/or modifications will increase the share limitations contained in Section 2.1
hereof; and (e) take any action, before or after an Award is made, that the Committee determines to be necessary or advisable to
obtain approval or facilitate compliance with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing,
the Committee may not take any actions hereunder, and no Awards will be granted, that would violate the Exchange Act or any other applicable
U.S. securities law, the Code, or any other applicable U.S. governing statute or law.

 

    	 	4	 

     

    

 

5.            OPTIONS.
An Option is the right but not the obligation to purchase Share(s), subject to certain conditions, if applicable. The Committee may grant
Options to eligible Employees, Consultants, and Directors and will determine whether such Options will be Incentive Stock Options within
the meaning of the Code (“ISOs”) or Nonqualified Stock Options (“NQSOs”), the number
of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may vest and be exercised, and all
other terms and conditions of the Option, subject to the following terms of this Section.

 

5.1            Option
Grant. Each Option granted under this Plan will identify the Option as an ISO or an NQSO. An Option may (but need not) be awarded
or vest upon satisfaction of such Performance Factors during any Performance Period as are set out in advance in the Participant’s
individual Award Agreement. If the Option vests upon the satisfaction of Performance Factors, then the Committee will: (i) determine
the nature, length and starting date of any Performance Period for each Option; and (ii) select from among the Performance Factors
to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect
to Options that are subject to different performance goals and other criteria.

 

5.2            Date
of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, or
a specified future date. The Award Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

 

5.3            Exercise
Period. Options may be vested and exercisable within the times or upon the conditions as set forth in the Award Agreement governing
such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the date the Option
is granted; and provided further that no ISO granted to a person who, at the time the ISO is granted, directly or by attribution owns
more than ten percent (10%) of the total combined voting power of all classes of stock of Workday or of any Parent or Subsidiary of Workday
(“Ten Percent Stockholder”) will be exercisable after the expiration of five (5) years from the date the
ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise,
in such number of Shares or percentage of Shares as the Committee determines.

 

5.4           Exercise
Price. The Exercise Price of an Option will be determined by the Committee when the Option is granted; provided that: (i) the
Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant
and (ii) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%)
of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 11
and the applicable Award Agreement and in accordance with any procedures established by Workday.

 

    	 	5	 

     

    

 

5.5           Method
of Exercise. Any Option granted hereunder will be vested and exercisable according to the terms of the Plan and at such times and
under such conditions as determined by the Committee and set forth in the Award Agreement. An Option may not be exercised for a fraction
of a Share. An Option will be deemed exercised when Workday receives: (i) notice of exercise (in such form as the Committee or Workday
may specify from time to time) from the person entitled to exercise the Option (and/or electronic execution through the authorized third-party
administrator), and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable Tax-Related
Items that Workday has determined must be withheld). Full payment may consist of any consideration and method of payment authorized by
the Committee or Workday and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in
the name of the Participant. Until the Shares are issued (as evidenced by the appropriate entry on the books of Workday or of a duly authorized
transfer agent of Workday), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the
Shares, notwithstanding the exercise of the Option. Workday will issue (or cause to be issued) such Shares promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 2.4 of the Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

5.6           Termination
of Participant. The exercise of an Option will be subject to the following (except as may be otherwise provided in an Award Agreement):

 

(a)            If
the Participant is Terminated for any reason except for Cause or the Participant’s death or Disability, then the Participant may
exercise such Participant’s Options only to the extent that such Options would have been exercisable by the Participant on the Termination
Date no later than three (3) months after the Termination Date (or such shorter time period or longer time period not exceeding five
(5) years as may be determined by the Committee, with any exercise beyond three (3) months after the Termination Date deemed
to be the exercise of an NQSO), but in any event no later than the expiration date of the Options.

 

(b)            If
the Participant is Terminated because of the Participant’s death (or the Participant dies within three (3) months after a Termination
other than for Cause or because of the Participant’s Disability), then the Participant’s Options may be exercised only to
the extent that such Options would have been exercisable by the Participant on the Termination Date and must be exercised by the Participant’s
legal representative, or authorized assignee, no later than twelve (12) months after the Termination Date (or such shorter time period
not less than six (6) months or longer time period not exceeding five (5) years as may be determined by the Committee), but
in any event no later than the expiration date of the Options; provided that the Committee will have the authority, in its sole discretion,
to accelerate the vesting of any such Options.

 

(c)            If
the Participant is Terminated because of the Participant’s Disability, then the Participant’s Options may be exercised only
to the extent that such Options would have been exercisable by the Participant on the Termination Date and must be exercised by the Participant
(or the Participant’s legal representative or authorized assignee) no later than six (6) months after the Termination Date
(with any exercise beyond (a) three (3) months after the Termination Date when the Termination is for a Disability that is not
a “permanent and total disability” as defined in Section 22(e)(3) of the Code, or (b) twelve (12) months after
the Termination Date when the Termination is for a Disability that is a “permanent and total disability” as defined in Section 22(e)(3) of
the Code, deemed to be exercise of an NQSO), but in any event no later than the expiration date of the Options; provided that the Committee
will have the authority, in its sole discretion, to accelerate the vesting of any such Options.

 

    	 	6	 

     

    

 

(d)            Unless
otherwise determined by the Committee, if the Participant is Terminated for Cause, or if the Participant’s service is Terminated
and following such Termination the Committee has reasonably determined in good faith that such Participant could have been Terminated
for Cause (without regard to the lapsing of any required notice or cure periods in connection therewith) at the Termination Date, then
Participant’s Options (whether or not vested) will expire on the Termination Date, or at such later time and on such conditions
as are determined by the Committee, but in any event no later than the expiration date of the Options. Unless otherwise provided in an
employment agreement, Award Agreement, or other applicable agreement, Cause will have the meaning set forth in the Plan.

 

5.7           Limitations
on Exercise. The Committee may specify a minimum number of Shares that may be purchased on any exercise of an Option, provided that
such minimum number will not prevent any Participant from exercising the Option for the full number of Shares for which it is then exercisable.

 

5.8           Limitations
on ISOs. With respect to Awards granted as ISOs, to the extent that the aggregate Fair Market Value of the Shares with respect to
which such ISOs are exercisable for the first time by the Participant during any calendar year (under all plans of Workday and any Parent
or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as NQSOs. For purposes of this Section 5.8, ISOs
will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the
time the Option with respect to such Shares is granted. In the event that the Code or the regulations promulgated thereunder are amended
after the Effective Date to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, such different
limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. No
more than Ninety Million (90,000,000) Shares will be issued pursuant to the exercise of ISOs granted under the Plan.

 

5.9           Modification,
Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution
therefor, provided that any such action may not, without the written consent of a Participant, materially impair any of such Participant’s
rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated
in accordance with Section 424(h) of the Code. Subject to Section 18 of this Plan, by written notice to affected Participants,
the Committee may reduce the Exercise Price of outstanding Options without the consent of such Participants; provided, however, that
the Exercise Price may not be reduced below the Fair Market Value on the date the action is taken to reduce the Exercise Price.

 

5.10         No
Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended
or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422
of the Code or, without the consent of the Participant affected, to disqualify any ISO under Section 422 of the Code.

 

    	 	7	 

     

    

 

6.            RESTRICTED
STOCK AWARDS.

 

6.1           Awards
of Restricted Stock. A Restricted Stock Award is an offer by Workday to sell to an eligible Employee, Consultant, or Director, Shares
that are subject to restrictions (“Restricted Stock”). The Committee will determine to whom an offer will be made,
the number of Shares the Participant may purchase, the Purchase Price, the restrictions to which the Shares will be subject and all other
terms and conditions of the Restricted Stock Award, subject to the Plan.

 

6.2           Restricted
Stock Purchase Agreement. All purchases under a Restricted Stock Award will be evidenced by an Award Agreement. Except as may otherwise
be provided in an Award Agreement, a Participant accepts a Restricted Stock Award by signing and delivering to Workday an Award Agreement
with full payment of the Purchase Price, within thirty (30) days from the date the Award Agreement was delivered to the Participant. If
the Participant does not accept such Award within thirty (30) days, then the offer of such Restricted Stock Award will terminate, unless
the Committee determines otherwise.

 

6.3           Purchase
Price. The Purchase Price for a Restricted Stock Award will be determined by the Committee and may be less than Fair Market Value
on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with Section 11 of the
Plan, and the applicable Award Agreement and in accordance with any procedures established by Workday.

 

6.4           Terms
of Restricted Stock Awards. Restricted Stock Awards will be subject to such restrictions as the Committee may impose or are required
by law. These restrictions may be based on completion of a specified period of service with Workday or a Parent, Subsidiary or Affiliate
or upon completion of Performance Factors, if any, during any Performance Period as set out in advance in the Participant’s Award
Agreement. Prior to the grant of a Restricted Stock Award, the Committee will: (a) determine the nature, length and starting date
of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance
goals, if any; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and
a Participant may participate simultaneously with respect to Restricted Stock Awards that are subject to different Performance Periods
and having different performance goals and other criteria.

 

6.5           Termination
of Participation. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such Participant’s
Termination Date (unless determined otherwise by the Committee).

 

7.              STOCK
BONUS AWARDS.

 

7.1           Awards
of Stock Bonuses. A Stock Bonus Award is an award to an eligible Employee, Consultant, or Director of Shares that is subject to such
conditions and restrictions (or to no restrictions) as the Committee may determine. All Stock Bonus Awards will be made pursuant to an
Award Agreement. No payment from the Participant will be required for Shares awarded pursuant to a Stock Bonus Award.

 

    	 	8	 

     

    

 

7.2           Terms
of Stock Bonus Awards. The Committee will determine the number of Shares to be awarded to the Participant under a Stock Bonus Award
and any restrictions thereon. These restrictions may be based upon completion of a specified period of service with Workday or a Parent,
Subsidiary or Affiliate or upon satisfaction of performance goals based on Performance Factors during any Performance Period as set out
in advance in the Participant’s Stock Bonus Agreement. Prior to the grant of any Stock Bonus Award, the Committee will: (a) determine
the nature, length and starting date of any Performance Period for the Stock Bonus Award; (b) select from among the Performance Factors
to be used to measure performance goals; and (c) determine the number of Shares that may be awarded to the Participant. Performance
Periods may overlap and a Participant may participate simultaneously with respect to Stock Bonus Awards that are subject to different
Performance Periods and different performance goals and other criteria.

 

7.3           Form of
Payment to Participant. Payment may be made in the form of cash, Shares, or a combination thereof, based on the Fair Market Value
of the Shares earned under a Stock Bonus Award on the date of payment, as determined in the sole discretion of the Committee.

 

7.4           Termination
of Participation. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such Participant’s
Termination Date (unless determined otherwise by the Committee).

 

8.             STOCK
APPRECIATION RIGHTS.

 

8.1           Awards
of SARs. A Stock Appreciation Right (“SAR”) is an award to a Participant that may be settled in cash or Shares
(which may consist of Restricted Stock), having a value equal to (a) the difference between the Fair Market Value on the date of
exercise over the Exercise Price multiplied by (b) the number of Shares with respect to which the SAR is being settled (subject to
any maximum number of Shares that may be issuable as specified in an Award Agreement). All SARs will be made pursuant to an Award Agreement.

 

8.2           Terms
of SARs. The Committee will determine the terms of each SAR including, without limitation: (a) the number of Shares subject to
the SAR; (b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to be distributed
on settlement of the SAR; and (d) the effect of the Participant’s Termination on each SAR. The Exercise Price of the SAR will
be determined by the Committee when the SAR is granted, and may not be less than Fair Market Value of the Shares on the date of grant.
A SAR may be awarded or may vest upon satisfaction of Performance Factors, if any, during any Performance Period as are set out in advance
in the Participant’s individual Award Agreement. If the SAR vests upon the satisfaction of Performance Factors, then the Committee
will: (i) determine the nature, length and starting date of any Performance Period for each SAR; and (ii) select from among
the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate
simultaneously with respect to SARs that are subject to different Performance Factors and other criteria.

 

8.3           Exercise
Period and Expiration Date. A SAR will be exercisable within the times or upon the occurrence of events determined by the Committee
and set forth in the Award Agreement governing such SAR. The SAR Agreement will set forth the expiration date; provided that no SAR will
be exercisable after the expiration of ten (10) years from the date the SAR is granted. The Committee may also provide for SARs to
become exercisable at one time or from time to time, periodically or otherwise (including, without limitation, upon the attainment during
a Performance Period of performance goals based on Performance Factors), in such number of Shares or percentage of the Shares subject
to the SAR as the Committee determines. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee). Notwithstanding the foregoing, the rules of
Section 5.6 also will apply to SARs.

 

    	 	9	 

     

    

 

8.4          Form of
Settlement. Upon exercise of a SAR, a Participant will be entitled to receive payment from Workday in an amount determined by multiplying
(i) the difference between the Fair Market Value of a Share on the date of exercise over the Exercise Price; times (ii) the
number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, the payment from Workday for the SAR
exercise may be in cash, in Shares of equivalent value, or in some combination thereof. The portion of a SAR being settled may be paid
currently or on a deferred basis with such interest, if any, as the Committee determines, provided that the terms of the SAR and any deferral
satisfy the requirements of Section 409A of the Code.

 

8.5          Termination
of Participation. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such Participant’s
Termination Date (unless determined otherwise by the Committee).

 

9.            RESTRICTED
STOCK UNITS.

 

9.1          Awards
of Restricted Stock Units. A Restricted Stock Unit (“RSU”) is an award to an eligible Employee, Consultant
or Director covering a number of Shares that may be settled in cash, or by issuance of those Shares (which may consist of Restricted Stock).
All RSUs will be made pursuant to an Award Agreement.

 

9.2          Terms
of RSUs. The Committee will determine the terms of an RSU including, without limitation: (a) the number of Shares subject to
the RSU; (b) the vesting conditions applicable to the RSU; (c) the time or times during which the RSU may be settled; (d) the
consideration to be distributed on settlement; and (e) the effect of the Participant’s Termination on each RSU, provided that
no RSU will have a term longer than ten (10) years. An RSU may be awarded or vest upon satisfaction of such performance goals based
on Performance Factors during any Performance Period as are set out in advance in the Participant’s Award Agreement. If the RSU
is being earned upon satisfaction of Performance Factors, then the Committee will: (i) determine the nature, length and starting
date of any Performance Period for the RSU; (ii) select from among the Performance Factors to be used to measure the performance,
if any; and (iii) determine the number of Shares deemed subject to the RSU. Performance Periods may overlap and Participants may
participate simultaneously with respect to RSUs that are subject to different Performance Periods and different performance goals and
other criteria.

 

9.3          Form and
Timing of Settlement. Payment of vested RSUs will be made as soon as practicable after the date(s) determined by the Committee
and set forth in the Award Agreement, which date(s) may include a payment schedule with respect to RSUs that are deferred compensation
within the meaning of Section 409A. The Committee, in its sole discretion, may settle vested RSUs in cash, Shares, or a combination
of both. The Committee may also permit a Participant to defer payment under a RSU to a date or dates after the RSU is vested provided
that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code.

 

    	 	10	 

     

    

 

9.4          Termination
of Participation. Except as may be set forth in the Participant’s Award Agreement or in any Workday policy that applies to the
Participant regarding vesting acceleration, as may be in effect from time to time, vesting ceases on such Participant’s Termination
Date (unless determined otherwise by the Committee).

 

10.            PERFORMANCE
AWARDS.

 

10.1        Performance
Awards. A Performance Award is an award to an eligible Employee, Consultant, or Director of Workday or any Subsidiary or Affiliate
that is based upon the attainment of performance goals, as established by the Committee, and other terms
and conditions specified by the Committee, and may be settled in cash, Shares (which may consist of, without limitation, Restricted Stock),
other property, or any combination thereof. Grants of Performance Awards shall be made pursuant to an Award Agreement. Performance Awards
shall include Performance Shares, Performance Units, and cash-based Awards as set forth in Sections 10.1(a), 10.1(b), and 10.1(c) below.

 

(a)            Performance
Shares. The Committee may grant Awards of Performance Shares, designate the Participants to whom Performance Shares are to be awarded
and determine the number of Performance Shares and the terms and conditions of each such Award. Performance Shares shall consist of a
unit valued by reference to a designated number of Shares, the value of which may be paid to the Participant by delivery of Shares or,
if set forth in the instrument evidencing the Award, of such property as the Committee shall determine, including, without limitation,
cash, Shares, other property, or any combination thereof, upon the attainment of performance goals, as established by the Committee, and
other terms and conditions specified by the Committee. The amount to be paid under an Award of Performance Shares may be adjusted on the
basis of such further consideration as the Committee shall determine in its sole discretion.

 

(b)            Performance
Units. The Committee may grant Awards of Performance Units, designate the Participants to whom Performance Units are to be awarded
and determine the number of Performance Units and the terms and conditions of each such Award. Performance Units shall consist of a unit
valued by reference to a designated amount of property other than Shares, which value may be paid to the Participant by delivery of such
property as the Committee shall determine, including, without limitation, cash, Shares, other property, or any combination thereof, upon
the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.

 

(c)            Cash-Settled
Performance Awards. The Committee may grant cash-settled Performance Awards to Participants under the terms of this Plan. Such awards
will be based on the attainment of performance goals using the Performance Factors within this Plan that are established by the Committee
for the relevant performance period.

 

    	 	11	 

     

    

 

10.2        Terms
of Performance Awards. The Committee will determine, and each Award Agreement will set forth, the terms of each grant of Performance
Awards including, without limitation: (i) the amount of any cash bonus; (ii) the number of Shares deemed subject to a Performance
Award; (iii) the Performance Factors and Performance Period that will determine the time and extent to which each Performance Award
will be settled; (iv) the consideration to be distributed on settlement; and (v) the effect of the Participant’s Termination
on each Performance Award. In establishing Performance Factors and the Performance Period the Committee will: (x) determine the nature,
length and starting date of any Performance Period; and (y) select from among the Performance Factors to be used. Prior to settlement
the Committee will determine the extent to which Performance Awards have been earned. Performance Periods may overlap and Participants
may participate simultaneously with respect to Performance Awards that are subject to different Performance Periods and different performance
goals and other criteria.

 

10.3        Termination
of Participation. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such Participant’s
Termination Date (unless determined otherwise by the Committee).

 

11.           PAYMENT
FOR SHARE PURCHASES.

 

Payment from a Participant
for Shares purchased pursuant to this Plan may be made in cash or by check or, where expressly approved for the Participant by Workday
and where permitted by applicable law (and to the extent not otherwise set forth in the applicable Award Agreement):

 

(a)            by
surrender of shares of Workday held by the Participant that have a Fair Market Value on the date of surrender equal to the aggregate exercise
or purchase price of the Shares as to which said Award will be exercised or settled;

 

(b)            by
waiver of compensation due or accrued to the Participant for services rendered or to be rendered to Workday or any Parent, Subsidiary
or Affiliate of Workday;

 

(c)            by
consideration received by Workday pursuant to a broker-assisted exercise or other form of cashless exercise program implemented by Workday
in connection with the Plan;

 

(d)            by
cancellation of indebtedness of Workday to the Participant;

 

(e)            by
any combination of the foregoing; or

 

(f)             by
any other method of payment as is permitted by applicable law.

 

The Committee may limit the
availability of any method of payment, to the extent the Committee determines, in its discretion, such limitation is necessary or advisable
to comply with applicable law or facilitate the administration of the Plan.

 

    	 	12	 

     

    

 

12.            GRANTS
TO NON-EMPLOYEE DIRECTORS.

 

12.1          Types &
Limitations of Awards. Non-Employee Directors are eligible to receive any type of Award offered under this Plan except ISOs. Awards
pursuant to this Section 12 may be automatically made pursuant to policy adopted by the Board, or made from time to time as determined
in the discretion of the Board. No Non-Employee Director may receive Awards under the Plan, when combined with cash compensation for service
as a Non-Employee Director that exceed $750,000 in value (as described below) in any calendar year, increased to $1,750,000 in value (as
described below) in the calendar year of his or her initial service as a Non-Employee Director; provided that any initial Award granted
to a Non-Employee Director in connection with the commencement of his or her services as a Non-Employee Director shall not exceed $1,000,000
in value (as described below). The value of Awards for purposes of complying with this maximum shall be determined as follows: (a) for
Options and SARs, grant date fair value on the date of grant of such Option or SAR will be calculated using the Black-Scholes valuation
methodology or Workday’s regular valuation methodology for determining the grant date fair value of Options or SARs for reporting
purposes, and (b) for all other Awards other than Options and SARs, grant date fair value will be determined by either (i) calculating
the product of the Fair Market Value per Share on the date of grant and the aggregate number of Shares subject to the Award or (ii) calculating
the product using an average of the Fair Market Value over a number of trading days and the aggregate number of Shares subject to the
Award as determined by the Committee. Awards granted to an individual while he or she was serving in the capacity as an Employee or while
he or she was a Consultant but not a Non-Employee Director will not count for purposes of the limitations set forth in this Section 12.1.

 

12.2          Eligibility.
Awards pursuant to this Section 12 will be granted only to Non-Employee Directors. A Non-Employee Director who is elected or re-elected
as a member of the Board will be eligible to receive an Award under this Section 12.

 

12.3          Vesting,
Exercisability and Settlement. Except as set forth in Section 21, Awards will vest, become exercisable and be settled as determined
by the Board. With respect to Options and SARs, the exercise price granted to Non-Employee Directors will not be less than the Fair Market
Value of the Shares at the time that such Option or SAR is granted.

 

12.4          Election
to Receive Awards in Lieu of Cash. A Non-Employee Director may elect to receive his or her annual retainer payments and/or meeting
fees from Workday in the form of cash or Awards or a combination thereof, if permitted, and as determined by the Board. Such Awards will
be issued under the Plan.

 

13.          TAXES.

 

13.1          Taxes
Generally. Whenever a taxable or tax withholding event occurs in relation to any Award granted under this Plan, the Participant shall
be responsible for any U.S. and non-U.S. federal, state, and local taxes, including all income tax, social insurance, payroll tax, fringe
benefits tax, payment on account or any other tax-related items (the “Tax-Related Items”) that are applicable
to the Participant as a result of participation in the Plan. Whenever payments in satisfaction of Awards granted under this Plan are to
be made in cash, such payment will be net of an amount sufficient to satisfy applicable withholding obligations for Tax-Related Items;
provided, however, that any Tax-Related Items may also be withheld by other methods.

 

13.2          Withholding
Methods. The Committee or its delegate(s), as permitted by applicable law, in its sole discretion and pursuant to such procedures
as it may specify from time to time and to limitations of applicable law, may require or permit a Participant to satisfy any withholding
obligation of Workday or a Parent, Subsidiary or Affiliate may have with respect to such Tax-Related Items legally due from the Participant,
in whole or in part by (without limitation) (i) paying cash, (ii) electing to have Workday withhold otherwise deliverable cash
or Shares having a Fair Market Value equal to the Tax-Related Items required to be withheld, (iii) delivering to Workday already-owned
Shares having a Fair Market Value equal to the amount required to be withheld, or (iv) withholding from the proceeds of the sale
of otherwise deliverable Shares acquired pursuant to an Award either through a voluntary sale or through a mandatory sale arranged by
Workday. Workday may withhold or account for these Tax-Related Items by considering applicable statutory withholding rates or other applicable
withholding rates, including up to the maximum permissible statutory tax rate for the applicable tax jurisdiction, to the extent consistent
with applicable laws. Unless otherwise required by applicable law or otherwise determined by the Committee, the Fair Market Value of the
Shares will be determined as of the date that the taxes are required to be withheld and such Shares will be valued based on the value
of the actual trade or, if there is none, the Fair Market Value of the Shares as of the previous trading day.

 

    	 	13	 

     

    

 

14.           TRANSFERABILITY.

 

14.1         Transfer
Generally. Unless determined otherwise by the Committee or its delegate(s) or pursuant to this Section 14, an Award may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by (i) a will or (ii) by
the laws of descent or distribution. If the Committee makes an Award transferable, including, without limitation, by instrument to an
inter vivos or testamentary trust in which the Awards are to be passed to beneficiaries upon the death of the trustor (settlor) or by
gift or domestic relations order to a Permitted Transferee, such Award will contain such additional terms and conditions as the Committee
or its delegate(s) deems appropriate. All Awards will be exercisable: (i) during the Participant’s lifetime only by (A) the
Participant, or (B) the Participant’s guardian or legal representative; (ii) after the Participant’s death, by the
legal representative of the Participant’s heirs or legatees; and (iii) in the case of all awards except ISOs, by a Permitted
Transferee (for awards made transferable by the Committee) or such person’s guardian or legal representative.

 

15.          PRIVILEGES
OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

 

15.1         Voting
and Dividends. No Participant will have any of the rights of a stockholder with respect to any Awards until the Shares subject to
the Award are issued to the Participant, except for any Dividend Equivalent Rights permitted by an applicable Award Agreement. After Shares
are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares,
including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that
if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with
respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of Workday
will be subject to the same restrictions as the Restricted Stock; provided, further, that the Participant will have no right to such stock
dividends, stock distributions or Dividend Equivalent Rights with respect to such shares of Restricted Stock and such stock dividends,
stock distributions or Dividend Equivalent Rights will be accrued and paid only at such time, if any, as such shares of Restricted Stock
become vested Shares.

 

    	 	14	 

     

    

 

15.2            Restrictions
on Shares. At the discretion of the Committee, Workday may reserve to itself and/or its assignee(s) a right to repurchase (a
 “Right of Repurchase”) a portion of any or all shares of Restricted Stock held by a Participant following such
Participant’s Termination at any time within ninety (90) days (or such longer or shorter time determined by the Committee) after
the later of the date Participant’s Service terminates and the date the Participant purchases Shares under this Plan, for cash and/or
cancellation of purchase money indebtedness, at the Participant’s Purchase Price or Exercise Price, as the case may be.

 

16.           CERTIFICATES.
All Shares or other securities whether or not certificated, delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee or Workday (in accordance with the terms of the Plan) may deem necessary or advisable, including
restrictions under any applicable U.S. and non-U.S. federal, state or local law, or any rules, regulations and other requirements of the
SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted and any non-U.S. exchange controls
or securities law restrictions to which the Shares are subject.

 

17.           ESCROW;
PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares, Workday or the Committee may require the Participant
to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by Workday or the
Committee, appropriately endorsed in blank, with Workday or an agent designated by Workday to hold in escrow until such restrictions have
lapsed or terminated, and Workday or the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates,
in each case in accordance with the Plan. Any Participant who is permitted to execute a promissory note as partial or full consideration
for the purchase of Shares under this Plan will be required to pledge and deposit with Workday all or part of the Shares so purchased
as collateral to secure the payment of the Participant’s obligation to Workday under the promissory note; provided, however, that
Workday or the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in
any event, Workday will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant’s
Shares or other collateral. In connection with any pledge of the Shares, the Participant will be required to execute and deliver a written
pledge agreement in such form as Workday will from time to time approve. The Shares purchased with the promissory note may be released
from the pledge on a pro rata basis as the promissory note is paid.

 

18.           REPRICING;
EXCHANGE AND BUYOUT OF AWARDS. Without prior stockholder approval, the Committee may not, pursuant to an Exchange Program or otherwise
(i) reprice Options or SARs or (ii) pay cash or issue new Awards in exchange for the surrender and cancellation of any, or all,
outstanding Awards.

 

19.           SECURITIES
LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be effective unless such Award is in compliance with all applicable U.S. and
non-U.S. federal and state securities and exchange control and other laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect
on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan,
Workday will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (i) obtaining any approvals
from governmental agencies that Workday determines are necessary or advisable; and/or (ii) completion of any registration or other
qualification of such Shares under any U.S. or non-U.S. state, federal or local law or ruling or other decision of any governmental body
that Workday determines to be necessary or advisable. Workday will be under no obligation to register the Shares with the SEC or to effect
compliance with the registration, qualification or listing requirements of any U.S. state securities laws, or any non-U.S. securities
or exchange control or other laws, or any stock exchange or automated quotation system, and Workday will have no liability for any inability
or failure to do so.

 

    	 	15	 

     

    

 

20.           NO
OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship with, Workday or any Parent, Subsidiary or Affiliate of
Workday or limit in any way any right Workday or any Subsidiary, Parent or Affiliate of Workday may have to terminate Participant’s
employment or other relationship at any time.

 

21.           CORPORATE
TRANSACTIONS.

 

21.1       In
the event that Workday is a party to a Corporate Transaction, all Awards will be subject to the definitive agreement memorializing such
Corporate Transaction. Such agreement need not treat all Awards in an identical manner (and treatment may vary from Award to Award and/or
from Participant to Participant), and it will provide for one or more of the following with respect to each Award:

 

(a)            The
continuation of the Award by Workday (if Workday is the surviving corporation).

 

(b)           The
assumption of the Award by the surviving corporation or its parent in a manner that does not result in the imposition of taxation under
Section 409A of the Code.

 

(c)            The
substitution by the surviving corporation or its parent of an equivalent award in a manner that does not result in the imposition of taxation
under Section 409A of the Code.

 

(d)           Full
exercisability of an Option, full vesting of the Shares subject to an Option and/or full vesting of all other Awards, followed by the
cancellation of the Option or Award; provided, that any awards that must be settled on a deferred basis to comply with Section 409A
of the Code shall be so settled. The full exercisability of an Option, full vesting of the Shares subject to the Option and/or full vesting
of all other Awards may be contingent on the closing of such merger or consolidation. The Participant will be able to exercise an Option
during a period of not less than five full business days preceding the effective date of such merger or consolidation, unless (A) a
shorter period is required to permit a timely closing of such merger or consolidation and (B) such shorter period still offers the
Participant a reasonable opportunity to exercise an Option. Any exercise of an Option during such period may be contingent on the closing
of such merger or consolidation.

 

    	 	16	 

     

    

 

(e)       A
payment to the Participant in exchange for cancellation of the Award equal to the excess of (A) the Fair Market Value of the Shares
subject to the Award as of the effective date of such Corporate Transaction over (B) the Exercise Price or Purchase Price of Shares,
if any, as the case may be, subject to the Award. Such payment will be made in the form of cash, cash equivalents, or securities of the
surviving corporation or its parent with a Fair Market Value equal to the required amount. The acquiring or successor corporation may
provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions
of the Awards). Subject to Section 409A of the Code, such payment may be made in installments and may be deferred until the date
or dates when the Award would have become exercisable or would have vested. The amount of such payment initially will be calculated without
regard to whether or not the Award is then exercisable or vested. However, such payment may be subject to vesting based on the Award’s
vesting schedule and the Participant’s continuing service after the Corporate Transaction. In addition, any escrow, holdback, earnout
or similar provisions in the agreement providing for the Corporate Transaction may apply to such payment to the same extent and in the
same manner as such provisions apply to the holders of Shares. If the Exercise Price of the Shares subject to an Option exceeds the Fair
Market Value of such Shares, then the Option may be cancelled without making a payment to the Participant. For purposes of this subsection,
the Fair Market Value of any security will be determined without regard to any vesting conditions that may apply to such security.

 

Notwithstanding any other
provision in this Plan to the contrary, and unless otherwise determined by the Committee, in the event of a Corporate Transaction in which
the acquiring or successor corporation refuses to continue, assume, substitute, replace, or cash out any Award in accordance with this
Section 21, then notwithstanding any other provision in this Plan to the contrary, each such Award will be accelerated in full (contingent
upon the effectiveness of the Corporate Transaction) as of immediately prior to the time of consummation of the Corporate Transaction
(or such other time prior to the consummation of the Transaction as the Committee may determine). In such event, the Committee will notify
the Participant in writing or electronically that such Award will be exercisable (as applicable) for a period of time determined by the
Committee in its sole discretion, and such Award will terminate upon the expiration of such period; provided, however, that any awards
that must be settled on a deferred basis to comply with Section 409A of the Code shall be so settled. Awards need not be treated
similarly in a Corporate Transaction.

 

21.2         Assumption
of Awards by Workday. Workday, from time to time, also may substitute or assume outstanding awards granted by another company, whether
in connection with an acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan in substitution
of such other company’s award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed
award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted
or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this
Plan to such grant. In the event Workday assumes an award granted by another company, except as otherwise provided in the definitive agreement
pursuant to which such assumption occurs or in the assumption agreement reflecting such assumption, the terms and conditions of such award
will remain unchanged (except that the Purchase Price or the Exercise Price, as the case may be, and the number and nature of Shares issuable
upon exercise or settlement of any such Award will be adjusted appropriately pursuant to Section 424(a) of the Code and, unless
otherwise determined by the Committee or Workday, the equity policies of Workday will apply to such awards). In the event Workday elects
to grant a new Option in substitution rather than assuming an existing option, such new Option may be granted with a similarly adjusted
Exercise Price. Substitute or assumed Awards will not reduce the number of Shares authorized for grant under the Plan.

 

    	 	17	 

     

    

 

21.3        Non-Employee
Directors’ Awards. Notwithstanding any provision to the contrary herein, in the event of a Corporate Transaction, the vesting
of all Awards granted to Non-Employee Directors will accelerate and such Awards will become exercisable (as applicable) in full prior
to the consummation of such event at such times and on such conditions as the Committee determines.

 

22.           ADOPTION
AND STOCKHOLDER APPROVAL. This Plan will be submitted for the approval of Workday’s stockholders, consistent with applicable
laws, within twelve (12) months before or after the date this Plan is adopted by the Board.

 

23.           TERM
OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this Plan will become effective on the Effective Date and will
terminate ten (10) years from the date this Plan is adopted by the Board. After this Plan is terminated or expires, no Awards may
be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions. This Plan
and all Awards granted hereunder will be governed by and construed in accordance with the laws of the State of Delaware in the U.S. without
regard to such state’s conflict of laws rules.

 

24.           AMENDMENT
OR TERMINATION OF PLAN. The Board may at any time terminate or amend this Plan in any respect, including, without limitation, amendment
of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without
the approval of the stockholders of Workday, amend this Plan in any manner that requires such stockholder approval. No termination or
amendment of the Plan or any outstanding Award may materially adversely affect any then outstanding Award without the consent of the Participant,
unless such termination or amendment is necessary to comply with applicable law, regulation or rule.

 

25.          NONEXCLUSIVITY
OF THE PLAN. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of Workday for approval,
nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the granting of stock awards and bonuses otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

 

26.          INSIDER
TRADING POLICY. Each Participant who receives an Award will comply with any policy adopted by Workday from time to time covering transactions
in Workday’s securities by Employees, Consultants, officers and/or Directors of Workday and its Subsidiaries or Affiliates, as well
as with any applicable insider trading or market abuse laws to which the Participant may be subject.

 

    	 	18	 

     

    

 

27.         ALL
AWARDS SUBJECT TO WORKDAY’S CLAWBACK OR RECOUPMENT POLICY. All Awards, subject to applicable law, shall be subject to clawback
or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or the Committee or required by law during
the term of Participant’s employment or other service with Workday or a Parent, Subsidiary or Affiliate that is applicable to Employees,
Directors or other service providers of Workday and its Parents, Subsidiaries or Affiliates, and in addition to any other remedies available
under such policy and applicable law, may require the cancellation of outstanding Awards and the recoupment of any gains realized with
respect to Awards. Further, unless otherwise determined by the Committee, to the extent a Participant receives any amount in excess of
the amount that the Participant should otherwise have received under the terms of an Award for any reason (including, without limitation,
by reason of mistake in calculation or other administrative error), the Participant shall promptly, upon notice from Workday of the overpayment,
be required to repay to Workday any such excess amount.

 

28.          CODE
SECTION 409A. This Plan and Awards granted hereunder are intended to comply with Section 409A of the Code and the Treasury
Regulations and guidance promulgated thereunder (collectively, “Section 409A”) to the extent subject thereto,
or otherwise be exempt from Section 409A, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered
to be in compliance therewith. Notwithstanding the foregoing, Workday does not guarantee that any payment under the Plan, any Award or
Award Agreement hereunder complies with or is exempt from Section 409A. Any payments described in the Plan that are due within the
 “short-term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless required
by applicable law. No payment, benefit or consideration shall be substituted for an Award if such action would result in the imposition
of an additional tax under Section 409A. Notwithstanding anything to the contrary in the Plan or any Award Agreement, if any provision
in the Plan or an Award Agreement would result in the imposition of an additional tax under Section 409A, that Plan or Award Agreement
provision or Award shall be reformed, to the extent permissible under Section 409A, to avoid the imposition of the additional tax,
and no such action shall be deemed to adversely affect the Participant’s rights to an Award. In no event may any Participant, directly
or indirectly, designate the calendar year of any payment to be made under this Plan or any Award Agreement hereunder which constitutes
a “deferral of compensation” within the meaning of Section 409A. With respect to any Award that constitutes a “deferral
of compensation” within the meaning of Section 409A, references in the Plan or any Award Agreement to “termination of
service,” “termination of employment” and “termination of the Participant’s Service” (and substantially
similar phrases) shall mean “separation from service” within the meaning of Section 409A. For purposes of Section 409A,
each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment. Notwithstanding
anything in the Plan or any Award Agreement to the contrary, to the extent required to avoid accelerated taxation and tax penalties under
Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan or any Award
Agreement granted pursuant hereto during the six-month period immediately following the Participant’s termination of Service (the
 “Deferred Amounts”) shall instead be paid on the first payroll date after the earlier of (i) the six-month
anniversary of the Participant’s “separation from service” (as defined in Section 409A) or (ii) the Participant’s
death (such date, the “Section 409A Payment Date”), with any portion of the Deferred Amounts that would
otherwise be payable prior to the Section 409A Payment Date aggregated and paid in a lump sum without interest on the Section 409A
Payment Date. Notwithstanding the foregoing, none of Workday or any Subsidiary or Affiliate, the Committee or any of their respective
executives, members, partners, directors, officers or affiliates shall have any obligation to take any action to prevent the assessment
of any additional tax or penalty on any Participant under Section 409A and, by accepting an Award granted hereunder, the Participant
acknowledges and agrees that none of Workday, the Committee or any of their respective affiliates will have any liability to the Participant
for any such tax or penalty.

 

    	 	19	 

     

    

 

29.            DEFINITIONS.
As used in this Plan, and except as elsewhere defined herein, the following terms will have the following meanings:

 

“Affiliate”
means (a) any entity that, directly or indirectly, is controlled by, controls or is under common control with Workday and (b) any
entity in which Workday has a significant equity interest, in either case as determined by the Committee, whether now or hereafter existing.

 

“Award”
means any award under the Plan, including any Option, Restricted Stock Award, Stock Bonus Award, Stock Appreciation Right, Restricted
Stock Unit or Performance Award.

 

“Award Agreement”
means, with respect to each Award, the written or electronic agreement between Workday and the Participant setting forth the terms and
conditions of the Award and any country-specific appendix thereto for grants to non-U.S. Participants, which will be in substantially
a form (which need not be the same for each Participant) that the Committee (or in the case of Award Agreements that are not used by Insiders,
the Committee’s delegate(s)) has from time to time approved, and will comply with and be subject to the terms and conditions of
this Plan.

 

“Board”
means the Board of Directors of Workday.

 

“Cause”
means a determination by Workday (and in the case of a Participant who is an Insider, the Committee) that the Participant has committed
an act or acts constituting the following: (i) embezzlement or misappropriation of funds; (ii) conviction of, or entry of a
plea of nolo contendere to, a felony or other crime involving moral turpitude; (iii) commission of material acts of dishonesty, fraud,
or deceit; (iv) breach of any material provisions of any employment agreement (including the Proprietary Information and Invention
Agreement) or unauthorized disclosure or use of Workday’s confidential or proprietary information or trade secrets; (v) habitual
or willful neglect of duties; (vi) breach of fiduciary duty or any other duty whether imposed by law or the Board; (vii) violation
or breach of, or failure to comply with Workday’s code of ethics or conduct, or material violation or breach of, or failure to comply
with any of Workday’s rules, policies or procedures applicable to the Participant or any agreement in effect between Workday or
the Participant; or (viii) other conduct by such Participant that could be expected to be harmful to the business, interests or reputation
of Workday. This definition does not in any way limit Workday’s or any Subsidiary’s, Parent’s or Affiliate’s ability
to terminate a Participant’s employment or services at any time as provided in Section 20 above, and the term Workday will
be interpreted to include any Subsidiary or Affiliate, as appropriate. Notwithstanding the foregoing, the foregoing definition of “Cause”
may, in part or in whole, be modified or replaced in each individual employment agreement, Award Agreement, or other applicable agreement
with any Participant provided that such document specifically supersedes this definition.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

“Committee”
means the Compensation Committee of the Board or those persons to whom administration of the Plan, or part of the Plan, has been delegated
as permitted by law.

 

    	 	20	 

     

    

 

“Common Stock”
means the Class A common stock of Workday.

 

“Consultant”
means any natural person, including an advisor or independent contractor, engaged by Workday or a Subsidiary, Parent or Affiliate of Workday
to render services to such entity.

 

“Corporate Transaction”
means the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly
or indirectly, of securities of Workday representing fifty percent (50%) or more of the total voting power represented by Workday’s
then-outstanding voting securities; (ii) the consummation of the sale or disposition by Workday of all or substantially all of Workday’s
assets; (iii) the consummation of a merger or consolidation of Workday with any other corporation, other than a merger or consolidation
which would result in the voting securities of Workday outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of Workday or such surviving entity or its parent outstanding immediately after such
merger or consolidation, (iv) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of
the Code wherein the stockholders of Workday give up all of their equity interest in Workday (except for the acquisition, sale or transfer
of all or substantially all of the outstanding shares of Workday). Notwithstanding the foregoing, to the extent that any amount constituting
deferred compensation (as defined in Section 409A of the Code) would become payable under this Plan by reason of a Corporate Transaction,
such amount will become payable only if the event constituting a Corporate Transaction would also qualify as a change in ownership or
effective control of Workday or a change in the ownership of a substantial portion of the assets of Workday, each as defined within the
meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations
and IRS guidance that has been promulgated or may be promulgated thereunder from time to time.

 

“Director”
means a member of the Board.

 

“Disability”
means in the case of incentive stock options, total and permanent disability as defined in Section 22(e)(3) of the Code and
in the case of other Awards, that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months.

 

“Dividend Equivalent
Right” means the right of a Participant, granted at the discretion of the Committee or as otherwise provided by the Plan,
to receive a credit for the account of such Participant in an amount equal to the cash, stock or other property dividends in amounts equivalent
to cash, stock or other property dividends for each Share represented by an Award held by such Participant.

 

“Effective Date”
means the date the Plan is approved by the stockholders of Workday (which shall be within twelve (12) months of the approval of the Plan
by the Board).

 

    	 	21	 

     

    

 

“Employee”
means any person, including officers and Directors, providing services as an employee to Workday or any Parent, Subsidiary or Affiliate
of Workday. Neither service as a Director nor payment of a director’s fee by Workday will be sufficient to constitute “employment”
by Workday.

 

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

 

“Exchange Program”
means a program approved by Workday’s stockholders pursuant to which (i) outstanding Awards are surrendered, cancelled or exchanged
for cash, the same type of Award or a different Award (or combination thereof) or (ii) the exercise price of an outstanding Award
is increased or reduced.

 

“Exercise Price”
means, with respect to an Option, the price at which a holder may purchase the Shares issuable upon exercise of an Option and with respect
to a SAR, the price at which the SAR is granted to the holder thereof.

 

“Fair Market Value”
means, as of any date, the value of a share of Workday’s Common Stock determined as follows:

 

(a)            its
closing price on the date of determination on the principal national securities exchange on which the Common Stock is listed or admitted
to trading as reported in such source as the Committee deems reliable, or if such principal national securities exchange is not open for
business on the date that Fair Market Value is being determined, the closing price as reported on the preceding business day on which
that exchange was open for business;

 

(b)            if
such common stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the date of determination as reported in The Wall Street Journal or such other source as the Committee
deems reliable; or

 

(c)            by
the Board or the Committee in good faith, and, if applicable, in accordance with the requirements of Section 409A of the Code.

 

“Insider”
means an officer or director of Workday or any other person whose transactions in Workday’s Common Stock are subject to Section 16
of the Exchange Act.

 

“IRS”
means the United States Internal Revenue Service.

 

“Non-Employee
Director” means a Director who is not an Employee of Workday or any Parent, or Subsidiary.

 

“Option”
means an award of an option to purchase Shares pursuant to Section 5.

 

“Parent”
means any corporation (other than Workday) in an unbroken chain of corporations ending with Workday if each of such corporations other
than Workday owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

 

    	 	22	 

     

    

 

“Participant”
means a person who holds an Award under this Plan.

 

“Performance Award”
means cash or stock granted pursuant to Section 10 of the Plan.

 

“Performance Factors”
means any of the factors selected by the Committee (or, with respect to Performance Awards to Participants who are not Insiders, the Committee’s
delegate(s), as applicable) and specified in an Award Agreement, from among the following objective measures, either individually, alternatively
or in any combination, applied to Workday as a whole or any business unit or Subsidiary, either individually, alternatively, or in any
combination, on a GAAP or non-GAAP basis, and measured, to the extent applicable on an absolute basis or relative to a pre-established
target, to determine whether the performance goals established with respect to applicable Awards have been satisfied:

 

(a)            Profit
Before Tax;

 

(b)            Billings;

 

(c)            Revenue;

 

(d)           Net
revenue;

 

(e)            Earnings
(which may include earnings before interest and taxes, earnings before taxes, and net earnings, stock-based compensation expenses, depreciation
and amortization);

 

(f)            Operating
income;

 

(g)           Operating
margin;

 

(h)           Operating
profit;

 

(i)             Controllable
operating profit, or net operating profit;

 

(j)             Net
Profit;

 

(k)            Gross
margin;

 

(l)             Operating
expenses or operating expenses as a percentage of revenue;

 

(m)           Net
income;

 

(n)           Earnings
per share;

 

(o)           Total
stockholder return or relative stockholder return;

 

(p)           Market
share;

 

(q)           Return
on assets or net assets;

 

(r)            Workday’s
stock price;

 

    	 	23	 

     

    

 

(s)            Growth
in stockholder value relative to a pre-determined index;

 

(t)             Return
on equity;

 

(u)            Return
on invested capital;

 

(v)            Cash
Flow (including free cash flow or operating cash flows) or cash flow margins;

 

(w)     
       Cash conversion cycle;

 

(x)             Economic
value added;

 

(y)   
         Individual confidential business objectives;

 

(z)       
     Contract awards or backlog;

 

(aa)    
      Overhead or other expense reduction;

 

(bb)          Credit
rating;

 

(cc)          Strategic
plan development and implementation;

 

(dd)     
    Succession plan development and implementation;

 

(ee)          Improvement
in workforce diversity;

 

(ff)           Customer
indicators;

 

(gg)         New
product invention or innovation;

 

(hh)         Attainment
of research and development milestones;

 

(ii)            Improvements
in productivity;

 

(jj)            Bookings;

 

(kk)          Attainment
of objective operating goals and employee metrics;

 

(ll)            Completion
of an identified special project, joint venture or other corporate transaction;

 

(mm)        Employee
satisfaction and/or retention; and

 

(nn)         Any
other metric as determined by the Committee.

 

The Committee may provide for one or more equitable
adjustments to the Performance Factors to preserve the Committee’s original intent regarding the Performance Factors at the time
of the initial award grant, such as but not limited to, adjustments in recognition of unusual or non-recurring items such as acquisition
related activities or changes in applicable accounting rules. It is within the sole discretion of the Committee to make or not make any
such equitable adjustments.

 

    	 	24	 

     

    

 

“Performance Period”
means one or more periods determined by the Committee (or its delegate(s) with respect to Participants who are not Insiders), which
periods may be of varying and overlapping durations, over which the attainment of one or more Performance Factors will be measured for
the purpose of determining a Participant’s right to, and the payment of, a Performance Award.

 

“Performance Share”
means a performance share bonus granted as a Performance Award.

 

“Permitted Transferee”
means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships) of the Participant, any
person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons (or the Participant)
have more than 50% of the beneficial interest, a foundation in which these persons (or the Participant) control the management of assets,
and any other entity in which these persons (or the Participant) own more than 50% of the voting interests.

 

“Plan”
means this Workday, Inc. 2022 Equity Incentive Plan.

 

“Purchase Price”
means the price to be paid for Shares acquired under the Plan, other than Shares acquired upon exercise of an Option or SAR.

 

“Restricted Stock”
means Shares that have not yet vested or are subject to a right of repurchase in favor of Workday (or any successor thereto).

 

“Restricted Stock
Award” means an award of Shares pursuant to Section 6 or Section 12 of the Plan, or issued pursuant to the early
exercise of an Option.

 

“Restricted Stock
Unit” means an Award granted pursuant to Section 9 or Section 12 of the Plan.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities Act”
means the United States Securities Act of 1933, as amended.

 

“Shares”
means shares of Workday’s Common Stock and the common stock of any successor security.

 

“Stock Appreciation
Right” means an Award granted pursuant to Section 8 or Section 12 of the Plan.

 

“Stock Bonus”
means an Award granted pursuant to Section 7 or Section 12 of the Plan.

 

“Subsidiary”
has the same meaning as “subsidiary corporation” in Sections 424(e) and 424(f) of the Code.

 

    	 	25	 

     

    

 

“Termination”
or “Terminated” means, for purposes of this Plan with respect to a Participant, that the Participant has for
any reason ceased to provide services as an Employee, Non-Employee Director, Consultant to Workday or an Affiliate, Parent or Subsidiary
of Workday. An employee will not be deemed to have ceased to provide services in the case of (i) sick or medical leave, (ii) military
leave, or (iii) any other leave of absence approved by Workday; provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to formal
policy adopted from time to time by Workday and issued and promulgated to employees in writing. In the case of any employee on an approved
leave of absence, Workday may make such provisions respecting suspension of vesting of the Award while on leave from the employ of Workday
or a Parent, Affiliate or Subsidiary of Workday as it may deem appropriate, except that in no event may an Award be exercised after the
expiration of the term set forth in the applicable Award Agreement. In the event of military leave, if required by applicable laws and
subject to applicable laws, vesting will continue for the longest period that vesting continues under any other statutory or Workday approved
leave of absence and, upon a Participant’s returning from military leave (under conditions that would entitle him or her to protection
upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she will be given vesting credit with respect
to Awards to the same extent as would have applied had the Participant continued to provide services to Workday throughout the leave on
the same terms as he or she was providing services immediately prior to such leave. Unless determined otherwise by the Committee or set
forth in an agreement between Workday and a Participant (and subject to the terms of such agreement including any applicable Award Agreement),
an employee will be considered to have terminated employment for purposes of the Plan and any Award granted hereunder as of the date he
or she ceases to provide services to Workday or one of its Parents, Subsidiaries or Affiliates (regardless of whether the termination
is in breach of local employment laws or is later found to be invalid) and employment will not be extended by any notice period or garden
leave mandated by local law, provided, however that a change in status from an Employee to a Consultant or a Non-Employee Director (or
vice versa) will not result in a Termination, unless otherwise determined by Committee. Workday, or in the case of Insiders, the Committee
will have sole discretion to determine whether a Participant has ceased to provide services for purposes of the Plan and the effective
date on which the Participant ceased to provide services (the “Termination Date”).

 

“Treasury Regulations”
means regulations promulgated by the United States Treasury Department.

 

“Workday”
means Workday, Inc., a Delaware corporation, or any successor corporation.

 

    	 	26

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