Document:

exp-ex106_166.htm

EXHIBIT 10.6

EAGLE MATERIALS INC.

 

 

AMENDED AND RESTATED INCENTIVE PLAN

 

RESTRICTED STOCK AGREEMENT

 

(Time Vesting)

 

 

 

Eagle Materials Inc., a Delaware corporation (the "Company"), and __________ (the "Grantee") hereby enter into this Restricted Stock Agreement (the "Agreement") in order to set forth the terms and conditions of the Company’s award (the "Award") to the Grantee of certain shares of Common Stock of the Company granted to the Grantee on May 17, 2018 (the "Award Date"). 

 

1.Award.  The Company hereby awards to the Grantee _______ shares of Common Stock of the Company (the "Shares").  

2.Relationship to the Plan.  The Award shall be subject to the terms and conditions of the Eagle Materials Inc. Amended and Restated Incentive Plan (the “Plan”), this Agreement and such administrative interpretations of the Plan, if any, as may be in effect on the date of this Agreement.  Except as defined herein, capitalized terms shall have the meanings ascribed to them under the Plan.  For purposes of this Agreement:

	
 
	
(a)
	
“Disability” shall be determined by the Committee.

	
 
	
(b)
	
“Retirement” shall mean a retirement approved by the Board.

3.Vesting.

	
 
	
(a)
	
Vesting Criteria.  The Grantee’s interest in the Shares shall vest on the date designated (a "Vesting Date") in accordance with the following vesting schedule (the "Vesting Schedule"):

			
	
Vesting Date

 
	
 
	
Shares

 

	
March 31, 2019
	
 
	
_____

	
March 31, 2020
	
 
	
_____

	
March 31, 2021
	
 
	
_____

	
March 31, 2022
	
 
	
_____

	
Total
	
 
	
_____

 

	
 
	
(b)
	
Restrictions.  The period beginning on the Award Date and ending on the date immediately preceding the Vesting Date for a Share shall be known as the restriction period (the “Restriction Period”).  During the Restriction Period, the Grantee may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of any unvested Shares or any right or interest related to such unvested Shares, other than as required by the Grantee’s will or beneficiary designation, in accordance with the laws of descent and distribution or by a qualified domestic relations order.

	
 
	
(c)
	
Cancellation Right.  The Grantee must be in continuous service as an employee of the Company or any of its Affiliates or as a Director from the Award Date through the applicable Vesting Date for a Share to become vested.  Subject to Section 4, Grantee’s termination of employment and, if applicable, service as a Director prior to the vesting of any Shares shall cause any unvested Shares to be automatically forfeited.  

4.Change-in-Control; Death or Disability; Retirement.  The restrictions set forth above in Section 3 shall lapse with respect to any unvested Shares not previously forfeited and the remaining shares of this Award shall become fully vested without regard to the limitations set forth in Section 3 above, provided that the Grantee has been in continuous employment with the Company or any of its Affiliates or has been in continuous service as a Director from the Award Date through:  (A) the occurrence of a Change in Control (as defined in Exhibit A to this Agreement), unless either:  (i) the Committee determines that the terms of the transaction giving rise to the Change in Control provide that the Award is to be replaced within a reasonable time after the Change in Control with an award of equivalent value of shares of the surviving parent corporation, or (ii) the Award is to be settled in cash in accordance with the last sentence of this Section 4, or (B) Grantee’s termination of employment and, if applicable, discontinuation of service as a Director, by reason of death, Disability or Retirement.  Upon a Change in Control, pursuant to Section 15 of the Plan, the Company may, in its discretion, settle the Award by a cash payment that the Committee shall determine in its sole discretion is equal to the fair market value of the Award on the date of such event.

5.Stockholder Rights.  Until such time as any of the unvested Shares are forfeited, the Grantee shall have the right to vote any Shares, and the Grantee shall have the right to receive any cash dividends declared and paid on unvested Shares after the date hereof at the same time such amounts are paid with respect to all other shares of Common Stock.  

6.Capital Adjustments and Corporate Events.  If, from time to time during the term of the Restriction Period, there is any capital adjustment affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, including as a result of a spin-off or business disposition, the Shares and other applicable terms of this Award shall be adjusted in accordance with the provisions of Section 15 of the Plan, which adjustment shall include (as may be applicable) without limitation, equitable adjustments to the type of property or securities to which the Award relates, in each case as determined by the Committee in its discretion.  Any and all new, substituted or additional securities to which the Grantee may be entitled by reason of the Grantee’s ownership of the Shares hereunder because of a capital adjustment shall be immediately subject to the restrictions set forth herein (as may be modified pursuant to this Agreement) and included thereafter as Shares for purposes of this Agreement.  

7.Refusal to Transfer.  

The Company shall not be required:

	
 
	
(a)
	
to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or the Plan; or

	
 
	
(b)
	
to treat such purchaser or other transferee as owner of such Shares, accord such purchaser or other transferee the right to vote; or pay or deliver dividends or other distributions to such purchaser or other transferee with respect to such Shares.

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8.Legends.  If the Shares are certificated, the certificate or certificates evidencing the Shares, if any, issued hereunder shall be endorsed with the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AND, ACCORDINGLY, MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN CONFORMITY WITH THE TERMS OF THAT CERTAIN RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES.  A COPY OF SUCH AGREEMENT IS MAINTAINED AT THE ISSUER’S PRINCIPAL CORPORATE OFFICES.

9.Tax Consequences.  The Grantee has reviewed with the Grantee’s own tax advisors the federal, state, and local tax consequences of this investment and the transactions contemplated by this Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee understands that the Grantee (and not the Company) shall be responsible for the Grantee’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. The Grantee understands that Section 83 of the Code taxes as ordinary income the difference between the purchase price, if any, for the Shares and the Fair Market Value of the Shares as of the date any restrictions on the Shares lapse.  In this context, “restriction” means the restrictions imposed during the Restriction Period. The Grantee understands that the Grantee may elect to be taxed at the time the Shares are awarded rather than when and as the restrictions lapse by filing an election under Section 83(b) of the Code with the Internal Revenue Service within 30 days from the Award Date.  THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY (AND NOT THE COMPANY’S) TO FILE TIMELY THE ELECTION UNDER SECTION 83(B), EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE GRANTEE’S BEHALF.

10.Withholding of Taxes.  At the time and to the extent vested Shares become compensation income to the Grantee for federal or state income tax purposes, the Grantee either shall deliver to the Company such amount of money as required to meet the withholding obligation under applicable tax laws or regulations, or, in lieu of cash, the Grantee, in his or her sole discretion, may elect to surrender, or direct the Company to withhold from the vested Shares, shares of Common Stock in such number as necessary to satisfy the tax withholding obligations.  Further, any dividends paid to you pursuant to Section 5 above prior to the end of the Restriction Period will generally be subject to federal, state and local withholding, as appropriate, as additional compensation.

11.Entire Agreement; Governing Law.  The Plan and this Agreement constitute the entire agreement of the Company and the Grantee (collectively, the “Parties”) with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Parties.  Nothing in the Plan and this Agreement (except as expressly provided therein or herein) is intended to confer any rights or remedies on any person other than the Parties.  The Plan and this Agreement are to be construed in accordance with and governed by the internal laws of the State of Texas, without giving effect to any choice-of-law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Texas to the rights and duties of the Parties.  Should any provision of the Plan or this Agreement relating to the Shares be determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

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12.Interpretive Matters.  Whenever required by the context, pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, or neuter, and the singular shall include the plural, and vice versa.  The term “include” or “including” does not denote or imply any limitation.  The term “business day” means any Monday through Friday other than such a day on which banks are authorized to be closed in the State of Texas.  The captions and headings used in this Agreement are inserted for convenience and shall not be deemed a part of the Award or this Agreement for construction or interpretation.  

13.Notice.  Any notice or other communication required or permitted hereunder shall be given in writing and shall be deemed given, effective, and received upon prepaid delivery in person or by courier or upon the earlier of delivery or the third business day after deposit in the United States mail if sent by certified mail, with postage and fees prepaid, addressed to the other Party at its address as shown beneath its signature in this Agreement, or to such other address as such Party may designate in writing from time to time by notice to the other Party.

14.Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the Company and their respective permitted successors and assigns (including personal representatives, heirs and legatees), except that the Grantee may not assign any rights or obligations under this Agreement except to the extent and in the manner expressly permitted herein.

[Signature page follows.]

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EAGLE MATERIALS INC.

 

 

				
	
Dated:  , 2018
	
 
	
By:
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
Name:
	
David B. Powers

	
 
	
 
	
 
	
 

	
 
	
 
	
Its:
	
President and Chief Executive Officer

	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
3811 Turtle Creek Boulevard, Suite 1100

Dallas, Texas 75219

The Grantee acknowledges receipt of a copy of the Plan, represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof.  The Grantee has reviewed this Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and fully understands all provisions of this Agreement and the Plan.  The Grantee further agrees to notify the Company upon any change in the address for notice indicated in this Agreement.

 

GRANTEE:

 

 

				
	
Dated:  , 2018
	
 
	
Signed:
	
_____________________________________

	
 
	
 
	
 
	
 

	
 
	
 
	
Name:
	
____________

	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
Eagle Materials Inc.

3811 Turtle Creek Boulevard, Suite 1100

Dallas, Texas 75219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT A

 

CHANGE-IN-CONTROL

 

 

For the purpose of this Agreement, a "Change in Control" shall mean the occurrence of any of the following events:

(a)The acquisition by any Person of beneficial ownership of securities of the Company (including any such acquisition of beneficial ownership deemed to have occurred pursuant to Rule 13d-5 under the Exchange Act) if, immediately thereafter, such Person is the beneficial owner of (i) 50% or more of the total number of outstanding shares of any single class of Company Common Stock or (ii) 40% or more of the total number of outstanding shares of all classes of Company Common Stock, unless such acquisition is made (a) directly from the Company in a transaction approved by a majority of the members of the Incumbent Board or (b) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company;

(b)Individuals who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (or who is otherwise designated as a member of the Incumbent Board by such a vote) shall be considered as though such individual were a member of the Incumbent Board, except that any such individual shall not be considered a member of the Incumbent Board if his or her initial assumption of office occurs as a result of either an actual or threatened election contest (as such term is used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 

(c)The consummation of a Business Combination, unless, immediately following such Business Combination, (i) more than 50% of both the total number of then outstanding shares of common stock of the parent corporation resulting from such Business Combination and the combined voting power of the then outstanding voting securities of such parent corporation entitled to vote generally in the election of directors will be (or is) then beneficially owned, directly or indirectly, by all or substantially all of the Persons who were the beneficial owners, respectively, of the outstanding shares of Company Common Stock immediately prior to such Business Combination in substantially the same proportions as their ownership immediately prior to such Business Combination of the outstanding shares of Company Common Stock, (ii) no Person (other than any employee benefit plan (or related trust) of the Company or any corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 40% or more of the total number of then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the parent corporation resulting from such Business Combination were members of the Incumbent Board immediately prior to the consummation of such Business Combination; or

(d)Approval by the Board and the shareholders of the Company of (i) a complete liquidation or dissolution of the Company or (ii) a Major Asset Disposition (or, if there is no such approval by shareholders, consummation of such Major Asset Disposition) unless, immediately following such Major Asset Disposition, (A) Persons that were beneficial owners of the outstanding shares of Company Common Stock immediately prior to such Major Asset Disposition beneficially own, directly or indirectly, more than 50% of the total number of then outstanding shares of common stock and the combined voting power of the then outstanding shares of voting stock of the Company (if it continues to 

exist) and of the Acquiring Entity in substantially the same proportions as their ownership immediately prior to such Major Asset Disposition of the outstanding shares of Company Common Stock; (B) no Person (other than any employee benefit plan (or related trust) of the Company or such entity) beneficially owns, directly or indirectly, 40% or more of the then outstanding shares of common stock or the combined voting power of the then outstanding voting securities of the Company (if it continues to exist) and of the Acquiring Entity entitled to vote generally in the election of directors and (C) at least a majority of the members of the Board of the Company (if it continues to exist) and of the Acquiring Entity were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such Major Asset Disposition.

For purposes of the foregoing,

	
 
	
(i)
	
the term "Person" means an individual, entity or group;

	
 
	
(ii)
	
the term "group" is used as it is defined for purposes of Section 13(d)(3) of the Exchange Act;

	
 
	
(iii)
	
the terms "beneficial owner", "beneficial ownership" and "beneficially own" are used as defined for purposes of Rule 13d-3 under the Exchange Act;

	
 
	
(iv)
	
the term "Business Combination" means (x) a merger, consolidation or share exchange involving the Company or its stock or (y) an acquisition by the Company, directly or through one or more subsidiaries, of another entity or its stock or assets;

	
 
	
(v)
	
the term "Company Common Stock" shall mean the Common Stock, par value $.01 per share, of the Company;

	
 
	
(vi)
	
the term "Exchange Act" means the Securities Exchange Act of 1934, as amended; 

	
 
	
(vii)
	
the phrase "parent corporation resulting from a Business Combination" means the Company if its stock is not acquired or converted in the Business Combination and otherwise means the entity which as a result of such Business Combination owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries;

	
 
	
(viii)
	
the term "Major Asset Disposition" means the sale or other disposition in one transaction or a series of related transactions of 50% or more of the assets of the Company and its subsidiaries on a consolidated basis; and any specified percentage or portion of the assets of the Company shall be based on fair market value, as determined by a majority of the members of the Incumbent Board;

	
 
	
(ix)
	
the term "Acquiring Entity" means the entity that acquires the largest portion of the assets sold or otherwise disposed of in a Major Asset Disposition (or the entity, if any, that owns a majority of the outstanding voting stock of such acquiring entity entitled to vote generally in the election of directors or members of a comparable governing body); and

	
 
	
(x)
	
the phrase "substantially the same proportions," when used with reference to ownership interests in the parent corporation resulting from a Business Combination or in an Acquiring Entity, means substantially in proportion to the number of shares of Company Common Stock beneficially owned by the applicable Persons immediately prior to the Business Combination or Major Asset Disposition, but is not to be construed in such a manner as to require that the same ratio or number of shares of such parent corporation or Acquiring Entity be issued, paid or delivered in exchange for or in respect of the shares of each class of Company Common Stock.

EXHIBIT A - 2SECURED
Convertible Promissory NOTE

(this “Note”)

 

	$200,000	July
    26, 2018

 

FOR
VALUE RECEIVED, the undersigned Provectus Biopharmaceuticals, Inc., a Delaware corporation (the “Borrower”), hereby
promises to pay to the order of Edward V. Pershing at the Lender’s office located at 2220 Sutherland Avenue, Knoxville,
TN 37919 or at such other place as the Lender may designate to the Borrower in writing from time to time, the principal sum set
forth in Paragraph A below, or, if less, so much thereof as is outstanding hereunder, in lawful money of the United States
of America and in immediately available funds, and to pay interest on said principal sum or the unpaid balance thereof, in like
money at said office. Each undersigned Subsidiary of the Borrower hereby joins this Note for the purposes of Paragraph H
of this Note, whereby the Borrower grants a Security Interest in the Intellectual Property of the Borrower and its Subsidiaries
in favor of the Lender. Capitalized terms used in this Note but not immediately defined shall have the meanings set forth in Paragraph
M below.

 

A.
Principal. This Note is one of a series of notes, all of equal par herewith, arranged by the PRH Group up to a maximum
principal amount of up to Twenty Million and no/100 Dollars ($20,000,000) (the “PRH Financing”). This Note shall have
a maximum principal amount of Two Hundred Thousand and no/100 Dollars ($200,000.00).

 

B.
Interest

 

Interest
on this Note shall accrue on the outstanding principal amount hereof at a rate equal to eight percent (8%) per annum, calculated
on the basis of a 365-day year (the “Interest Rate”).

 

C.
Payment Terms; Prepayment. Except as set forth in Paragraph D(ii) below, Payments on this Note shall be applied
in the following order: first to accrued but unpaid interest and second to principal. If any payment on this Note becomes due
and payable on a day other than a Business Day, the payment date thereof shall be extended to the next succeeding Business Day.
Principal and interest under this Note may be pre-paid in whole or in part at any time without premium or other prepayment charge.

 

D.
Events of Default; Remedies.

 

(i)
The Borrower shall be deemed to be in default under this Note if: (a) the Borrower fails to pay, when due, any payment of principal
or interest under this Note, which continues for a period of ten (10) days after the due date of such payment, (b) any action
commenced by or against the Borrower under the Federal Bankruptcy Code, or other statute for the relief of creditors, which is
not dismissed within sixty (60) days, (c) a Change of Control in the Borrower, or (d) liquidation of the Borrower.

 

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(ii)
Upon an event of default, the Lender, at his option, may (a) allow this Note to remain outstanding and continue to accrue interest
at the Interest Rate or (b) declare the outstanding principal balance of and all accrued but unpaid interest on this Note to be
immediately due and payable. Further, if the event of default is as a result of a Change of Control, in addition to the right
to declare the outstanding principal balance of and all accrued but unpaid interest on this Note to be immediately due and payable,
the Lender shall (1) be entitled to be paid all financing received by the Borrower under this Note from and after the date of
such Change of Control, whether such financing is by the issuance of equity, debt or a combination of both, before such financing
is used for any other purpose (“Change of Control Payments”) and (2) be entitled to receive a penalty payment from
the Borrower equal to ten times (10x) the outstanding principal amount under this Note as of the date of such Change of Control
(the “Change of Control Penalty”). Any amounts received by the Lender as Change of Control Payments shall be applied
in the following order: first to the Change of Control Penalty, second to accrued but unpaid interest and third to principal.

 

E.
Use of Proceeds. This Note may be used to fund the completion of the Borrower’s clinical development program
as currently conducted and as modified in the future by the Board of Directors and for general corporate and administrative expenses
approved by the Board of Directors.

 

F.
Conversion.

 

(i)
Voluntary Conversion. The Lender may elect to convert all of the outstanding principal and accrued but unpaid interest
of this Note at any time into Series D Shares. If the Lender elects to effect a conversion of this Note into Series D Shares,
the Lender shall: (a) deliver a copy of the fully executed notice of conversion in the form attached hereto as Exhibit A
(a “Notice of Conversion”) to the Borrower and (b) surrender or cause to be surrendered this Note with delivery of
the Notice of Conversion. On the Voluntary Conversion Date, the Borrower shall issue and deliver to the Lender confirmation of
the number of Series D Shares that have been issued to the Lender upon conversion of this Note, which number of Series D Shares
shall be calculated by dividing the Conversion Amount on the Voluntary Conversion Date by the Conversion Price. The Lender shall
be treated for all purposes as the record holder of such Series D Shares at 12:01 am Eastern Time on the Voluntary Conversion
Date and such Series D Shares shall be issued and outstanding as of such date. The Note will be deemed terminated on the Voluntary
Conversion Date, and no interest will be deemed to accrue on or after the close of business on the Voluntary Conversion Date.

 

(ii)
Automatic Conversion. In the event that any amount of principal and accrued but unpaid interest remains outstanding on
the Automatic Conversion Date, then such amount of the outstanding principal due under this Note plus all accrued but unpaid interest
shall automatically convert into such number of Series D Shares equal to (a) the Conversion Amount on the Automatic Conversion
Date divided by (b) the Conversion Price effective as of 12:01 am Eastern Time on the Automatic Conversion Date. If this Note
is to be automatically converted, prompt written notice shall be delivered to the Lender at the address last shown on the records
of the Borrower, notifying the Lender of the conversion to be effected. Upon such conversion of this Note, the Lender hereby agrees
to surrender or cause to be surrendered this Note, duly endorsed, as soon as practicable thereafter. The Note will be deemed terminated
on the Automatic Conversion Date, and no interest will be deemed to accrue on or after the Automatic Conversion Date.

 

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(iii)
No Fractional Shares. No fractional Series D Shares are to be issued upon the conversion of this Note, but instead of any
fraction of a Series D Share which would otherwise be issuable, the fraction of such Series D Share shall be rounded up to the
nearest whole share.

 

(iv)
Insufficient Series D Shares. Notwithstanding the foregoing, if this Note is converted, whether voluntarily or automatically
under the terms hereof, and the number of authorized but unissued Series D Shares are insufficient to permit the conversion of
the Conversion Amount in full, Borrower will take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued Series D Shares to such number of shares as shall be sufficient for such purposes. Until
Borrower is able to effectuate such corporate action, Series D Shares shall be issued to the Lender in an amount equal to the
amount of authorized but unissued Series D Shares available for issuance, and the portion of the Conversion Amount that remains
unissued shall continue to be outstanding principal and accrued but unpaid interest of the Note.

 

G.
Maturity Date.

 

This
Note, including interest and principal, shall be due and payable in full (i) on such date upon which the Borrower defaults under
this Note (beyond the applicable notice and cure periods), (ii) upon a Change of Control of the Borrower, or (iii) the eighteen
(18) month anniversary of the funding of the Final Tranche, the earliest of such dates being the “Maturity Date.”

 

H.
Security Interest. 

 

(i)
As collateral security for the full and timely payment of the principal, interest and other amounts owing under this Note and
the performance of the Borrower under this Note, Borrower hereby assigns, conveys, delivers and grants to the Lender a general
and continuing first priority security interest in the Intellectual Property of the Borrower (including any Subsidiary) now existing
and all Records of the Borrower and the proceeds of any of the foregoing (the “Security Interest”), which Security
Interest shall be pari passu with all other notes arranged by the PRH Group.

 

(ii)
The Security Interest granted hereunder shall automatically terminate, without any action of the Borrower or the Lender, upon
the occurrence of any of the following events:

 

(a)
a voluntary conversion of the Note under Paragraph F;

 

(b)
an automatic conversion of the Note under Paragraph F; and

 

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(c)
the failure of the Lender (i) to fund the entire First Tranche into Escrow following the Borrower’s delivery of the First
Tranche Funding Certificate.

 

I.
Cumulative Remedies; No Waiver. The Lender’s rights and remedies under this Note are cumulative and in addition
to all rights and remedies provided by applicable law from time to time. The exercise or direction to exercise by the Lender of
any right or remedy shall not constitute a cure or waiver of any default, nor invalidate any notice of default or any act done
pursuant to any such notice, nor prejudice the Lender in the exercise of any other rights or remedy. No waiver of any default
shall be implied from any omission by the Lender to take action on account of such default if such default persists or is repeated.
No waiver of any default shall affect any default other than the default expressly waived, and any such waiver shall be operative
only for the time and to the extent stated. No waiver of any provision of this Note shall be construed as a waiver of any subsequent
breach of the same provision. The consent of the Lender to any act by the Borrower requiring further consent or approval shall
not be deemed to waive or render unnecessary the Lender’s consent to or approval of any subsequent act. The Lender’s
acceptance of the late performance of any obligation shall not constitute a waiver by the Lender of the right to require prompt
performance of all further obligations. The Lender’s acceptance of any performance following the sending or filing of any
notice of default shall not constitute a waiver of the Lender’s right to proceed with the exercise of remedies for any unfulfilled
obligations, and the Lender’s acceptance of any partial performance shall not constitute a waiver by the Lender of any rights
relating to the unfulfilled portion of the applicable obligation.

 

J.
No Usury. Nothing herein contained, nor any transaction related hereto, shall be construed or so operate as to require
the Borrower to pay interest in an amount or at a rate greater than the maximum allowed by applicable law. Should any interest
or other charged paid by the Borrower result in computation or earning of interest in excess of the maximum legal rate of interest
permitted under the law in effect while said interest is being earned, then any and all of that excess shall be and is waived
by the Lender, and all that excess shall be automatically credited against and in reduction of the principal balance, and any
portion of the excess that exceeds the principal balance shall be paid by the Lender to the Borrower so that under no circumstances
shall the Borrower be required to pay interest in excess of the maximum rate allowed by applicable law.

 

K.
Jurisdiction; Waiver of Jury Trial.

 

(i)
This Note shall be governed by the internal laws of the State of TENNESSEE except to the
extent superseded by Federal law. THE BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT
LOCATED IN Knox COUNTY, Tennessee
AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO
THIS NOTE, OR ANY TRANSACTION RELATING TO OR ARISING FROM THIS NOTE, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING.
Nothing herein shall limit the Lender’s right to bring proceedings against the Borrower
in the competent courts of any other jurisdiction.

 

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(ii)
THE BORROWER AND THE LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER WRITTEN OR VERBAL) OR ACTIONS OF EITHER PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
BORROWER AND THE LENDER FOR ENTERING INTO THIS AGREEMENT.

 

L.
Miscellaneous.

 

(i)
TIME IS OF THE ESSENCE WITH RESPECT TO THIS NOTE.

 

(ii)
This Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought.

 

(iii)
The Borrower hereby waives presentment for payment, demand, notice, protest, notice of protest and notice of dishonor.

 

M.
Definitions. The following terms used in this Note shall have the following meanings:

 

“Affiliate”
means, with respect to any Person that directly or indirectly, through one or more intermediaries, Controls, or is controlled
by, or is under common control with, such Person.

 

“Automatic
Conversion Date” means the 18-month anniversary of the funding of the Final Tranche; provided, that the Automatic
Conversion Date (i) shall be extended if, at the time of such 18-month anniversary date, a lawsuit is pending or threatened against
the Borrower with respect to this Note, and shall be extended until the resolution of such lawsuit, (ii) shall be extended if
the Borrower’s proxy contest with the Culpepper Group is ongoing on such 18-month anniversary date until the date such proxy
contest is finalized in favor of the Borrower, and (iii) shall never be deemed to occur if the Borrower ever loses the proxy contest
to the Culpepper Group or any other group of investors led by Peter Culpepper or an Affiliate of the Culpepper Group or Peter
Culpepper.

 

“Board
of Directors” means the Board of Directors of the Borrower.

 

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday or Friday on which banking institutions are not authorized or obligated
by law, regulation or executive order to close in Knoxville, Tennessee.

 

    	5

    	 

    

 

“Change
of Control” means, unless otherwise approved in writing by the PRH Group, the occurrence after the date hereof of any
of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d
5(b)(1) promulgated under the 1934 Act) of effective control (whether through legal or beneficial ownership of capital stock of
the Borrower, by contract or otherwise) of in excess of 33% of the voting securities of the Borrower (other than by means of conversion
or exercise of Series D Shares and any other securities issued together with such Series D Shares), (b) the Borrower merges into
or consolidates with any other Person, or any Person merges into or consolidates with the Borrower and, after giving effect to
such transaction, the stockholders of the Borrower immediately prior to such transaction own less than 66% of the aggregate voting
power of the Borrower or the successor entity of such transaction, (c) the Borrower sells or transfers all or substantially all
of its assets to another Person and the stockholders of the Borrower immediately prior to such transaction own less than 66% of
the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within
a one year period of more than one half of the members of the Board of Directors on the date hereof except for directors appointed
or approved by PRH Group, or (e) the execution by the Borrower of an agreement to which the Borrower is a party or by which it
is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Controls”
(including the terms “controlling”, “controlled by”, and “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Conversion
Amount” means (a) the entire principal amount of this Note, plus (b) all accrued and unpaid interest.

 

“Conversion
Price” means $0.2862.

 

“Culpepper
Group” means that certain group composed of Peter Culpepper and such other director nominees listed in that certain
definitive Schedule 14A proxy statement filed with the Securities and Exchange Commission on January 27, 2017 and as may be subsequently
amended or reconstituted.

 

“Escrow”
means one or more accounts agreed upon by the Borrower and the Lender to hold the amounts to be funded to the Borrower pursuant
to the terms of this Note.

 

“Final
Tranche” shall mean the earlier of: (i) the date of the funding of a Borrowing Request that results in $20,000,000 in
principal outstanding with respect to the PRH Financing or (ii) the date on which the Lender informs the Borrower that it shall
not disburse any additional funds to the Borrower hereunder; provided, however, that the Lender shall have funded to the Borrower
at least $10,000,000 under this Note.

 

    	6

    	 

    

 

“Intellectual
Property” means all of Borrower’s United States federal and state rights, title and interest, if any, in and to
(1) the applications and registrations listed on Exhibit B attached hereto and (2) to the extent not already included on
Exhibit B, all existing inventions, designs, patent applications and patents; trademarks, service marks, trade dresses,
and any applications and registrations for the foregoing; copyrights and copyright applications and registrations; trade secrets;
licenses to third-party intellectual property that lawfully may be assigned by Borrower; and other intellectual property rights
in the United States (whether or not registered) owned by Borrower.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“PRH
Group” means that group of investors led by Dominic Rodrigues, Bruce Horowitz and Ed Pershing pursuant to the terms
of the Term Sheet.

 

“Records”
means, to the extent related to the Intellectual Property of the Borrower, all books, correspondence, files, records, invoices
and other papers and documents in Borrower’s possession or custody, including without limitation to the extent so related,
all tapes, cards, computer runs, computer programs, and other papers and documents in possession or control of Borrower or any
computer bureau from time to time acting for Borrower, whether in physical or electronic formats.

 

“Series
D Shares” means shares of Series D Convertible Preferred Stock, par value $0.001 per share, of the Borrower.

 

“Subsidiary”
means, with respect to any Person, any other Person of which at least a majority of the securities or ownership interests having
by their terms voting power to elect a majority of the directors, managers or other persons performing similar functions is directly
or indirectly owned or controlled by such Person or by one or more of its respective Subsidiaries.

 

“Term
Sheet” means Amended and Restated Confidential Definitive Financing Commitment Term Sheet dated effective March 19,
2017 (the “Term Sheet”) by and between the Borrower, Dominic Rodrigues and Bruce Horowitz.

 

“Voluntary
Conversion Date” means the date which is three (3) Business Days following the date the Notice of Conversion is delivered
to the Borrower.

 

[Signatures
contained on next page.]

 

    	7

    	 

    

 

	 	BORROWER:
	 	 	 
	 	Provectus
    Biopharmaceuticals, Inc.
	 	 	
	 	 	/s/
    Timothy C. Scott                               
	 	Name:	Timothy
    C. Scott
	 	Title:	President
	 	 	 
	 	SUBSIDIARIES:
	 	 	 
	 	Provectus
    Pharmatech, Inc.
	 	 	 
	 	 	/s/
    Timothy C. Scott
	 	Name:	Timothy
    C. Scott
	 	Title:	President
	 	 	 
	 	Provectus
    Biotech, Inc.
	 	 	 
	 	 	/s/
    Timothy C. Scott
	 	Name:	Timothy
    C. Scott
	 	Title:	President
	 	 	 
	 	Pure-ific,
    Inc.
	 	 	 
	 	 	/s/
    Timothy C. Scott
	 	Name:	Timothy
    C. Scott
	 	Title:	President

 

    	8

    	 

    

 

	STATE
    OF TENNESSEE	)
	 	)
    ss.
	COUNTY
    OF KNOX	)

 

Before
me, the undersigned authority, on this day personally appeared Timothy C. Scott, President of each of Provectus Biopharmaceuticals,
Inc., Provectus Biotech, Inc., Provectus Pharmatech, Inc., and Pur-ific, Inc., and such person is known to me to be the person
whose name is subscribed to the foregoing instrument, and upon his oath acknowledged to me that he executed the same for the purposes
and consideration therein expressed and in the capacity therein stated.

 

Given
under my hand and seal of office this 26 day of July, 2018.

 

	 	/s/
    Heather Raines
	 	Notary
    Public

 

(SEAL)

 

My
commission expires: 3/5/22

 

    	9

    	 

    

 

Exhibit
A

 

Form
of Notice of Conversion

(See
Attached)

 

    	 

    	 

    

 

NOTICE
OF CONVERSION

 

The
undersigned hereby irrevocably elects to convert (the “Conversion”) $__________ principal amount of the Convertible
Note plus $_________ accrued and unpaid interest on such principal amount into Series D Shares of Provectus Biopharmaceuticals,
Inc. (the “Company”) according to the conditions of the Secured Convertible Promissory Note dated March [●],
2017, as of the date written below. No fee will be charged to the Lender for the conversion.

 

The
undersigned represents and warrants that it understands that all offers and sales by the undersigned of the Series D Shares issuable
to the undersigned upon Conversion of this Secured Convertible Promissory Note shall be made pursuant to registration of such
securities under the Securities Act of 1933, as amended (the “Act”), or pursuant to an exemption from registration
under the Act.

 

	 	Date
    of Conversion:	 
	 	 	 
	 	Applicable
    Conversion Price:	 
	 	 	 
	 	Number
    of Conversion Securities to be Issued:	 
	 	 	 
	 	Signature:	 
	 	Name:	 
	 	Address:	 
	 	 	 
	 	 	 

 

 

	ACKNOWLEDGED
    AND AGREED:	 
	 	 
	PROVECTUS
    BIOPHARMACEUTICALS, INC.	 
	 	                     	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 

 

    	 

    	 

    

 

Exhibit
B

 

Intellectual
Property

(See
Attached)

 

    	 

    	 

    

 

INTELLECTUAL
PROPERTY

 

U.S.
Patent Registrations

 

	U.S.
    Patent No.	 
	 	6,331,286	 
	 	6,451,597	 
	 	6,468,777	 
	 	6,493,570	 
	 	6,495,360	 
	 	6,541,223	 
	 	6,986,740	 
	 	6,991,776	 
	 	7,201,914	 
	 	7,338,652	 
	 	7,402,299	 
	 	8,470,296	 
	 	8,530,675	 
	 	8,974,363	 
	 	9,107,887	 
	 	9,273,022	 
	 	9,422,260	 

 

U.S.
Patent Applications

 

	U.S.
    Application No.	 
	 	14/748,579	
	 	14/748,608	
	 	14/748,634	
	 	14/974,357	

                                                                                 

 

    	 

    	 

    

 

U.S.
Trademark Registrations

 

	Mark	 	U.S.
    Registration No.	 
	PROVECTUS	 	 	3,919,981	 
	PROVECTUS
                                         and Design
 
 
	 	 	3,919,982	 
		 	 	 	 
	PH-10	 	 	4,974,860	 
	PV-10	 	 	5,096,447
1	 

 

U.S.
Trademark Applications

 

	Mark	 	U.S.
    Application No.	 
	TINCTURA
    DATUM EST	 	 	87/021,563	
	WHEN
    PATIENTS WIN, WE ALL WIN	 	 	86/739,133	

 

 

1
There is a misfiled security agreement recorded for U.S. Reg. No. 5,096,447 intended to be recorded for U.S. Application
Serial No. 85/096,447.

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