Document:

Form of Common Stock Purchase Warrant

 Exhibit 10.16 
 NOVABAY PHARMACEUTICALS, INC. 
 COMMON STOCK PURCHASE WARRANT 
 THIS WARRANT AND THE UNDERLYING SHARES OF COMMON STOCK SHALL NOT BE SOLD DURING THE INITIAL PUBLIC OFFERING OF THE COMPANY’S COMMON STOCK (THE
“IPO”) OR SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF THIS WARRANT OR THE SECURITIES
UNDERLYING THIS WARRANT BY ANY PERSON FOR A PERIOD OF 360 DAYS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS OR COMMENCEMENT OF SALES OF THE IPO. ADDITIONAL RESTRICTIONS ON TRANSFER ARE DESCRIBED IN SECTIONS 3 AND 12 HEREOF. 
 THE WARRANT IS EXERCISABLE ON OR AFTER OCTOBER_____, 2008 AND BEFORE 5:00 P.M. (EASTERN TIME) ON OCTOBER_____, 2010, AFTER WHICH TIME THE WARRANT SHALL BE DEEMED
TO BE VOID AND OF NO FURTHER FORCE OR EFFECT. 
 Issuance Date: October ___, 2007 
 THIS COMMON STOCK PURCHASE WARRANT certifies that, for value received, _____________ (the “Holder”) is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after October ___, 2008 (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (Eastern Time) on October ___, 2010 (the
“Termination Date”) but not thereafter, to subscribe for and purchase from NovaBay Pharmaceuticals, Inc., a corporation incorporated in the State of California (the “Company”), up to ________ shares of the
Company’s Common Stock, par value $0.01 per share (the “Common Stock”). The purchase price of one share of Common Stock (the “Exercise Price”) under this Warrant shall be U.S.$_____, subject to adjustment
hereunder. “Warrant” as used herein shall include this Common Stock Purchase Warrant and any warrants delivered in substitution or exchange therefor as provided herein. “Warrant Shares” refers to the shares of
Common Stock (or other securities or property to which Holder is entitled pursuant to Section 6 or Section 7 hereof) issuable upon the exercise of the purchase rights represented by this Warrant. The Warrant Shares are
entitled to the benefits, and subject to the obligations, set forth in the Registration Rights Agreement, dated concurrently herewith, by and among the Company, the Holder and certain other parties. 
 1. Exercise of Warrant. 
 (a) Except as provided in Section 2 herein, the purchase rights represented by this Warrant may be exercised in whole or in part, at any time, or from time to time, on or after the Initial Exercise Date and on or before the
Termination Date by delivering this Warrant and the Notice of Exercise form annexed hereto duly completed and executed to the 

  

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principal executive office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at
the address of such Holder appearing on the books of the Company) and by payment of the Exercise Price of the Warrant Shares thereby purchased by wire transfer, cash or check. 
 (b) If, but only if, (i) at any time after the tenth day after the Initial Exercise Date, a registration statement under the Securities
Act of 1933, as amended (the “Act”), registering the resale of the Warrant Shares issuable upon exercise of this Warrant is not then effective or is unavailable for use as reasonably determined by the Company or (ii) at any time on
or after the Initial Exercise Date, the Company consents to such “cashless exercise” (as described in this Subsection (b)), then this Warrant may also be exercised, in whole or in part, at any such time by means of a “cashless
exercise,” by delivering this Warrant and the Cashless Exercise Election Notice form annexed hereto duly completed and executed to the principal executive office of the Company (or such other office or agency of the Company as it may designate
by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company), pursuant to which the Holder shall be entitled to receive that number of Warrant Shares calculated using the following formula:

  

					
	 X
	 	=	  	  Y (A – B)  
	 		  	          A
		
	 where
	  	
	 X
	 	=	  	the number of Warrant Shares to be issued to Holder pursuant to this Section 1(b)
			
	 Y
	 	=	  	the number of Warrant Shares covered by this Warrant in respect of which the cashless exercise election is made pursuant to this Section 1(b) (and the rights to purchase which are
surrendered, as specified in the Cashless Exercise Election Notice, and deemed exercised)
			
	 A
	 	=	  	the Market Price of one Warrant Share on the date of surrender of this Warrant and delivery of the completed Cashless Exercise Election Notice (such date, the “Valuation
Date”)
			
	 B
	 	=	  	the Exercise Price in effect under this Warrant on the Valuation Date

 “Market Price” means, for any Valuation Date, the price
determined by the first of the following clauses that applies: (i) the average of the closing sale prices of one Warrant Share on the primary securities exchange or market on which the Warrant Shares are then listed, as reported by such
exchange or market, over the five trading days immediately preceding the Valuation Date; (ii) if the Warrant Shares are not then listed on an exchange or market and if prices for the Warrant Shares are then quoted on the OTC Bulletin Board, the
average of the closing sale prices of the Warrant Shares over the five trading days immediately preceding the Valuation Date on the OTC Bulletin Board; (iii) if the Warrant Shares are not then listed or quoted on the OTC Bulletin Board and if
prices for the Warrant Shares are then reported 

  

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in the “Pink Sheets” published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of
reporting prices), the average of the average of the bid and ask price per share of the Warrant Shares over the five trading days immediately preceding the Valuation Date; or (iv) in all other cases, the fair market value of one Warrant Share
as determined in good faith by the Company’s Board of Directors. 
 (c) If this Warrant shall have been exercised in
part, the Company shall, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase that number of Warrant Shares in respect of which
the Holder has not exercised the rights evidenced by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 (d) As promptly as practicable after the date the Company receives either (i) this Warrant and a duly completed and executed Notice of Exercise and payment of the Exercise Price or (ii) this Warrant and a
duly completed and executed Cashless Exercise Election Notice (in either case, the “Exercise Date”) and, in any event, within five (5) business days of the Exercise Date, the Company shall (x) issue and deliver to the
Holder, registered in the name of the Holder, a certificate or certificates for the number of Warrant Shares specified in the Notice of Election or calculated under the Cashless Exercise Election Notice, as the case may be, or (y) if eligible,
deliver the Warrant Shares to the Holder via the Depository Trust Company’s (“DTC”) Deposit Withdrawal Agent Commission (“DWAC”) system via the DTC instructions provided to the Company in the Notice of Exercise
or Cashless Exercise Election Notice, as the case may be. To the extent permitted by law, such exercise shall be deemed to have been effected as of the close of business on the Exercise Date, and at such time the rights of the Holder with respect to
the Warrant (or portion thereof) which has been exercised shall cease, and the Holder shall be deemed to have become the holder or holders of record of the Warrant Shares issuable upon such exercise. 
 2. No Fractional Shares. This Warrant may not be exercised for fractional Warrant Shares; and no fractional Warrant Shares shall be issued upon
exercise of the Warrant. Notwithstanding the foregoing, if the number of Warrant Shares issuable upon exercise of this Warrant is not a whole number as of the date of the full or final exercise of this Warrant, then the Holder may exercise this
Warrant for such fractional Warrant Share and the Company shall, in lieu of delivering such fractional interest, pay to the Holder an amount in cash equal to the Market Price (as defined above, the Valuation Date being the Exercise Date) of such
fractional interest. 
 3. No Transfer of Warrants. This Warrant and the rights hereunder are not transferable, in whole or in part.

 4. No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to
such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment (or delivery of Cashless Exercise Election Notice, if applicable). 
  

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 5. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and upon surrender and cancellation of such Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor and
dated as of such cancellation, in lieu of such Warrant. 
 6. Adjustments of Exercise Price and Number of Warrant Shares; Stock Splits,
Etc. The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the happening of any of the following. In case the Company shall (a) pay a
dividend in shares of Common Stock or make a distribution in shares of Common Stock or other securities exchangeable for or convertible into shares of Common Stock for no additional consideration to holders of its outstanding Common Stock,
(b) split or subdivide its outstanding shares of Common Stock into a greater number of shares, (c) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (d) issue any shares of its capital
stock in a reclassification of the Common Stock (any of such events in subsections (a), (b), (c) and (d) above, a “Share Reorganization”), then the number (and, in the case of a Share Reorganization in (d) above,
kind) of Warrant Shares purchasable upon exercise of this Warrant shall be deemed to have been adjusted so that the Holder shall be entitled to receive the number (and, in the case of a Share Reorganization in (d) above, kind) of Warrant Shares
equal to the amount of shares of Common Stock or, in the case of a Share Reorganization in (d) above, other securities of the Company which the Holder would have owned or have been entitled to receive had such Warrant been exercised prior to
the record date or effective date, as applicable, of such Share Reorganization (which includes, in the case of a Share Reorganization in (a) above involving a distribution of securities exchangeable for or convertible into shares of Common
Stock after the date of issuance of this Warrant, the number of shares of Common Stock that would be outstanding had all such securities been so exchanged or converted). Upon each such adjustment of the number (and, in the case of a Share
Reorganization in (d) above, kind) of Warrant Shares which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant Shares resulting from such adjustment at an Exercise Price per Warrant Share
obtained by multiplying the Exercise Price in effect immediately prior to the earlier of the record date for or the effective date of such Share Reorganization by the number of Warrant Shares purchasable pursuant hereto immediately prior to such
date and dividing by the number of Warrant Shares resulting from such adjustment. 
 7. Reorganization, Reclassification, Merger,
Consolidation or Disposition of Assets. In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another entity (where the Company is not the surviving entity or where there is a change in
or distribution with respect to the Common Stock), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business to another entity (each, a “Reorganization”) and, pursuant to the terms of such
Reorganization, shares of common stock of the successor or acquiring entity, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition to or in
lieu of common stock of the successor or acquiring entity (“Other Property”), are to be received by or distributed to the holders of Common Stock, then this Warrant shall thereafter represent the right to receive, upon exercise of
this Warrant, the number of shares of common stock and/or Other Property as would have been issuable upon or as a result of such 

  

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Reorganization with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to the record date or, if there
is no record date, the effective date of such Reorganization and the Exercise Price therefor shall be adjusted to be the amount determined by multiplying the Exercise Price in effect immediately prior to the Reorganization by the number of Warrant
Shares purchasable pursuant hereto immediately prior to the Reorganization, and dividing the product thereof by the number of shares of common stock and/or Other Property to which the holder of that number of Warrant Shares purchasable pursuant
hereto would have been entitled to by reason of such Reorganization. In case of any such Reorganization, the successor or acquiring entity (if other than the Company) shall expressly assume the observance and performance of each and every covenant
and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of Warrant Shares for which this Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 7. For purposes of
this Section 7, “common stock” of a corporation shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 7 shall similarly apply to successive Reorganizations. 
 8. Offering to Shareholders. If and whenever at any time prior to the Termination Date, the Company shall fix a record date or if a date of
entitlement to receive is otherwise established (any such date being hereinafter referred to in this Section 8 as the “record date”) for the issuance of rights, options or warrants or other property to all or substantially all
the holders of the outstanding shares of Common Stock, entitling them, for a period expiring not more than 45 days after such record date, to subscribe for or purchase shares of Common Stock or securities convertible into or exchangeable for shares
of Common Stock at a price per share or, as the case may be, having a conversion or exchange price per share less than 95% of the Market Price (as defined above, with the Valuation Date being the record date) on such record date, the Exercise Price
shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction, of which (a) the numerator shall be (i) the total number of
shares of Common Stock outstanding on such record date plus (ii) a number equal to the number arrived at by dividing (A) the aggregate subscription or purchase price of the total number of additional shares of Common Stock offered for
subscription or purchase or, as the case may be, the aggregate conversion or exchange price of the convertible or exchangeable securities so offered by (B) such Market Price, and (b) the denominator shall be the (i) total number of
shares of Common Stock outstanding on such record date plus (ii) the total number of additional shares of Common Stock so offered (or into which the convertible or exchangeable securities so offered are convertible or exchangeable); shares of
Common Stock owned by or held for the account of the Company or any subsidiary of the Company shall be deemed not to be outstanding for the purpose of any such computation; such adjustment shall be made successively whenever such a record date is
fixed; to the extent that any rights or warrants are not so issued or any such rights or warrants are not exercised prior to the expiration thereof, the Exercise Price shall then be readjusted to the 

  

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Exercise Price which would then be in effect if such record date had not been fixed or to the Exercise Price which would then be in effect based upon the
number of shares of Common Stock or conversion or exchange rights contained in convertible or exchangeable securities actually issued upon the exercise of such rights or warrants, as the case may be. 
 9. Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall state the number of Warrant Shares (and/or other securities or Other Property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and/or other securities or Other Property) after such adjustment, setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such
adjustment was made. 
 10. Other Notices. In case at any time: 
 (a) the Company shall declare any dividend (other than a dividend described in Section 6(a)) upon its Common Stock;

 (b) the Company shall offer for subscription pro rata to the holders of its Common Stock any additional shares of any class
or other rights; 
 (c) there shall be any capital reorganization or reclassification of the capital stock of the Company, or
consolidation, amalgamation or merger of the Company with, or sale of all or substantially all of its assets to, another corporation; or 
 (d) there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Company, 
 then, in any one or
more of such cases, the Company shall give to the Holder (A) at least 10 days’ prior written notice of the date on which a record shall be taken for such dividend, distribution or subscription rights or for determining rights to vote in
respect of any such reorganization, reclassification, consolidation, merger, amalgamation, sale, dissolution, liquidation or winding-up and (B) in the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up, at least 10 days’ prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause (A) shall also specify, in the case of any such dividend, distribution or
subscription rights, the date on which the holders of Common Stock shall be entitled thereto, and such notice in accordance with the foregoing clause (B) shall also specify the date on which the holders of Common Stock shall be entitled to
exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, amalgamation, sale, dissolution, liquidation or winding-up, as the case may be. 
 11. Authorized Shares. The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company covenants and agrees that all Warrant Shares will, upon issuance, be duly
authorized, fully paid, non-assessable and free from all 

  

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transfer taxes, claims, liens, charges and other encumbrances (except as may be imposed as a result of actions taken by the Holder). The Company will take
all such commercially reasonable actions as may be necessary to ensure that the Warrant Shares may be issued as provided herein without violation of any applicable law or the requirements of the principal securities exchange upon which the Common
Stock may be listed. 
 12. Securities Laws. 
 (a) Own Account. The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the Warrant Shares to be
issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell, or otherwise dispose of this Warrant or Warrant Shares to
be issued upon exercise hereof except under circumstances that will not result in a violation of the Act, or any state securities laws. Upon exercise of this Warrant, the Holder shall, if reasonably requested by the Company, confirm in writing, in a
form reasonably satisfactory to the Company, that the Warrant Shares so purchased are being acquired for investment, solely for the Holder’s own account and not as a nominee for any other party. 
 (b) Accredited Investor. Holder acknowledges that it is familiar with the definition of “accredited investor” in Rule 501
of Regulation D promulgated under the Act and certifies that Holder is an accredited investor as defined in such rule. 
 (c)
Unregistered Securities. Holder understands that neither this Warrant nor the Warrant Shares have been registered under the Act, and the Warrant Shares may not be sold, assigned or transferred unless (i) a registration statement under
the Act is in effect with respect thereto or (ii) an exemption from registration is found to be available to the satisfaction of the Company. 
 (d) Legends. Holder acknowledges and agrees that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws
and that certificates evidencing the Warrant Shares shall bear a restrictive legend, substantially in the following form (in addition to such other restrictive legends as are required or deemed advisable under the provisions of this Warrant, any
applicable law or regulation or any other agreement to which Holder is a party): 
  

	
	 “The securities evidenced hereby have not been registered under the Securities Act of 1933, as amended (the “Act”), and may not be sold, offered for
sale, pledged, hypothecated or otherwise transferred in the absence of (i) a registration statement in effect with respect to the securities under the Act and any applicable state securities laws or (ii) satisfactory assurances (including
but not limited to an opinion of counsel, if so required by the Company) to the Company, stating that the transaction is exempt from the registration requirements of the Act and applicable state securities laws.”

  

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 13. Expiry Date. This Warrant shall expire and all rights to purchase Warrant Shares hereunder
shall cease and become null and void at 5:00 p.m. (Eastern Time) on October ____, 2010. 
 14. Miscellaneous. 
 (a) Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the state of California as
applied to contracts among California residents made and to be performed entirely within the state of California, without regard to its conflict of law principles or rules. 
 (b) FINRA Rules. Notwithstanding anything contained in this Warrant, the terms of this Warrant are intended to comply with the
rules and regulations of the Financial Industry Regulatory Authority, Inc. relating to the compensation of underwriters and placement agents, and any provision of this Warrant that is determined to be inconsistent with such rules shall be deemed to
be modified to the extent necessary to comply with such rules. 
 (c) Transfer Taxes. The issuance of the Warrant
Shares upon the exercise of this Warrant, and the delivery of certificates or other instruments representing such Warrant Shares, shall be made without charge to the Holder for any transfer tax or other charge in respect of such issuance.

 (d) Notices. Except as otherwise provided herein, any notice or request required or permitted to be given or
delivered pursuant to this Warrant shall be given in writing and shall be deemed effectively given (i) upon personal delivery, (ii) when sent by electronic mail or confirmed facsimile if sent during normal business hours of the recipient,
and if not sent during normal business hours, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All such notices or requests shall be sent (A) if to the Company, to the attention of the Company’s President at the
Company’s principal executive offices and (B) if to the Holder, to: ATTN: ____________, [address], Facsimile No. ___________, e-mail ___________. 
 (e) Successors. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the
successors of Holder. 
 (f) Amendment. This Warrant may be modified or amended or the provisions hereof waived with
the written consent of the Company and the Holder. 
 (g) Severability. Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
  

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 (h) Counterparts. This Warrant may be executed in two or more counterparts and via
facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 (i) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 [remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed, effective as of the Issuance Date
set forth above, by its officer thereunto duly authorized. 
  

			
	NOVABAY PHARMACEUTICALS, INC.
		
	By:	 	 
		 	Ron Najafi
		 	Chief Executive Officer and President

 ACKNOWLEDGED AND AGREED: 

	
	
	 

  

			
		
	By:	 	 

  

			
		
	Name:	 	 

  

			
		
	Title:	 	 

 NOTICE OF EXERCISE 
 To: NovaBay Pharmaceuticals, Inc. 
 (1) The undersigned hereby elects to purchase ______________ shares of
the Common Stock of NovaBay Pharmaceuticals, Inc. (the “Warrant Shares”) pursuant to the terms of the Common Stock Purchase Warrant dated October ___, 2007 (which is attached hereto), and tenders herewith payment of the exercise
price in full. 
 (2) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned as specified
below: 
 Special Instructions (if any): _______________________________________________________________ 
 ______________________________________________________________________________________ 
 Address: _______________________________________________________________________________ 
 ______________________________________________________________________________________ 
 Federal Tax ID / Social Security No.: ________________________________________________________ 
 and deliver the Warrant Shares as follows (check one): 
  

	 	 ̈	by certified mail to the above address 

  

	 	 ̈	electronically (provide DWAC Instructions:________________________) 

  

	 	 ̈	other (specify):_______________________________________________) 

 (3) If the number of Warrant Shares specified above are not all the Warrant Shares purchasable upon exercise of the Warrant, please issue a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant
registered in the name of the undersigned Holder and delivered to the address indicated above. 
  

									
				
	Dated:	 	 	 		 	 
		 		 		 	(Print Name of Holder)
					
		 		 		 	By:	 	 
					
		 		 		 	Name:	 	 
					
		 		 		 	Title:	 	 

 CASHLESS EXERCISE ELECTION NOTICE 
 To: NovaBay Pharmaceuticals, Inc. 
 (1) The undersigned
hereby elects under Section 1(b) of the attached Common Stock Purchase Warrant dated October ___, 2007 (the “Warrant”) to surrender the right to purchase ________________ shares of the Common Stock of NovaBay Pharmaceuticals,
Inc. (the “Warrant Shares”) pursuant to the Warrant, and requests that certificates for the shares of Common Stock issuable upon such “cashless exercise” election be issued in the name of the undersigned as specified
below: 
 Special Instructions (if any): _______________________________________________________________ 
 ______________________________________________________________________________________ 
 Address: _______________________________________________________________________________ 
 ______________________________________________________________________________________ 
 Federal Tax ID / Social Security No.: ________________________________________________________ 
 and delivered as follows (check one): 
  

	 	 ̈	by certified mail to the above address 

  

	 	 ̈	electronically (provide DWAC Instructions:________________________) 

  

	 	 ̈	other (specify):_______________________________________________) 

 (2) If the number of Warrant Shares specified above are not all the Warrant Shares purchasable upon exercise of the Warrant, please issue a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant
registered in the name of the undersigned Holder and delivered to the address indicated above. 
  

									
				
	Dated:	 	 	 		 	 
		 		 		 	(Print Name of Holder)
					
		 		 		 	By:	 	 
					
		 		 		 	Name:	 	 
					
		 		 		 	Title:Form of Registration Rights Agreement

 Exhibit 10.17 
 NOVABAY PHARMACEUTICALS, INC. 
 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into as of the
         day of October 2007 between NovaBay Pharmaceuticals, Inc., a California corporation (the “Company”), and the other parties named on the signature pages hereto. 
 Recitals 
 WHEREAS, in connection with
the Company’s initial public offering, the Company will issue to the underwriters named in Exhibit A hereto common stock purchase warrants (the “Warrants”), initially entitling the Holders thereof to purchase up to an aggregate of
             shares of common stock, par value $.01 per share, of the Company (“Common Stock”) at an exercise price of
$             per share (the “Warrant Shares”); 
 WHEREAS, the
Company has agreed to register the resale of the Warrant Shares under the Securities Act (as defined below) on the terms and subject to the conditions set forth therein and herein; and 
 NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the parties hereby agree as follows:

  

	1.	REGISTRATION RIGHTS. 

 1.1 Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 
 (a)
“Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act; 
 (b) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended; 
 (c) “Holder” shall mean any holder of Registrable Securities and any holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 1.8 hereof.

 (d) “Registrable Securities” shall mean (i) the Warrant Shares, and (ii) any Common Stock issued as a
dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i) above; provided, however, that Registrable Securities shall not include any Common Stock which has previously been registered or
which has been sold to the public either pursuant to a registered public offering or Rule 144; notwithstanding the forgoing, Warrant Shares or Common Stock held by a Holder shall cease to be Registrable Securities if all of such Warrant Shares and

 
Common Stock may be immediately resold by the Holder on both the Toronto Stock Exchange and any national securities exchange in the United States on
which the Common Stock is then listed pursuant to available exemptions from registration under the Securities Act (assuming a cashless exercise as set forth in the Warrants). 
 (e) The terms “register,” “registered” and “registration” shall refer to a registration effected by
preparing and filing the Registration Statement, and the declaration or ordering of the effectiveness of such registration statement. 
 (f) “Registration Expenses” shall mean all expenses incurred in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees,
printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but shall not include Selling Expenses,
and the compensation of regular employees of the Company, which shall be paid in any event by the Company. 
 (g)
“Registration Statement” shall mean the registration statement filed pursuant to the Securities Act relating to the resale of the Registrable Securities by the Holders, and all amendments and supplements to such Registration Statement,
including pre- and post-effective amendments. 
 (h) “Rule 144” shall mean Rule 144 as promulgated by the Commission
under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission. 
 (i) “Securities Act” shall mean the Securities Act of 1933, as amended. 
 (j)
“Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes, and the fees and disbursements of legal counsel to the Holders, applicable to the sale of Registrable Securities. 
 1.2 Registration 
 (a)
The Company shall prepare and file with the Commission, prior to or on the eleventh day following the one year anniversary of the date of this Agreement (the “Filing Due Date”), a Registration Statement for an offering to be made on a
continuous shelf basis following the date of effectiveness covering the resale of the Registrable Securities by the Holders. The Registration Statement shall be on Form S-3 under the Securities Act or another appropriate form selected by the Company
permitting registration of the resale of the Registrable Securities by the Holders from time to time. The Company shall use its reasonable best efforts to cause the Registration Statement to become effective pursuant to the Securities Act as soon as
practicable. Notwithstanding the foregoing, if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer or President of the Company stating that, in the good faith judgment of the Company’s Board of
Directors, it would be seriously detrimental to the Company and its shareholders for such Registration Statement to be filed and it is therefore essential to defer the filing of such Registration Statement, the Company shall have the right to defer
taking action with respect to such filing for a period of not more than 90 days after the Filing Due Date. 
  

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 (b) The Registration Statement shall not be deemed to have become effective under the
Securities Act (i) unless it has been filed and has been declared effective under the Securities Act by the Commission and remains effective pursuant to the Securities Act with respect to the disposition of all Registrable Securities on a
continuous shelf basis until all such Registrable Securities are sold or cease to be Registrable Securities, or (ii) if the offering of the Registrable Securities pursuant to such Registration Statement is interfered with by any stop order,
cease trade order, injunction or other order or requirement of the Commission or any other governmental agency, court or stock exchange. 
 1.3 Expenses of Registration. The Company shall pay the Registration Expenses whether or not such registration shall become effective. 
 1.4 Registration Procedures. In the case of the registration effected by the Company pursuant to this Agreement, the Company will keep each Holder advised in writing as to the initiation of such registration
and as to the completion thereof. At its expense, the Company will use its reasonable best efforts to: 
 (a) Keep such
registration effective until all such Registrable Securities are sold or cease to be Registrable Securities; 
 (b) Prepare
and file with the Commission such amendments and supplements to such Registration Statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities covered by such Registration Statement; 
 (c) Furnish such number of
prospectuses and other documents incident thereto, including any amendment of or supplement to the prospectus, as a Holder from time to time may reasonably request; 
 (d) Notify each seller of Registrable Securities covered by such Registration Statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, (i) no longer meets the requirements of Section 10(a)(3) of the
Securities Act, or (ii) includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances
then existing, and that offers and sales of Registrable Securities in reliance on the prospectus included in the Registration Statement must cease. At the request of any such seller, the Corporation shall prepare and furnish to such seller a
reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such 

  

 3 

 
prospectus used shall meet the requirements of Section 10(a)(3) of the Securities Act, or not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing; 
 (e) Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar
securities issued by the Company are then listed; 
 (f) Use its reasonable best efforts to obtain all other approvals,
consents, exemptions, or authorizations from such governmental agencies or authorities as may be necessary to enable the Holders to consummate the disposition of the Registrable Securities; 
 (g) Provide a transfer agent and registrar for all Registrable Securities registered pursuant to the Registration Statement and a CUSIP
number for all such Registrable Securities, in each case not later than the effective date of such registration; 
 (h)
Otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least 12
months, but not more than 18 months, beginning with the first month after the effective date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act; and 
 (i) Subject to compliance with the requirements of the Securities Act, cooperate with the Holders to facilitate the timely preparation and
delivery of certificates not bearing any restrictive legends representing the Registrable Securities sold pursuant to the Registration Statement, and cause such Registrable Securities to be issued in such denominations and registered in such names
in accordance with instructions of the Holders that are provided to the Company. 
 1.5 Indemnification. 
 (a) The Company will indemnify each Holder, each of its officers, directors and partners, legal counsel, and accountants and each person
controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to any registration, qualification, or compliance of the Registrable Securities that has been effected pursuant to this Agreement against all expenses,
claims, losses, damages, and liabilities (or actions, proceedings, or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in the Registration Statement and any
corresponding prospectus (including any issuer free writing prospectus within the meaning of Rule 433 under the Securities Act), or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation thereunder 

  

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applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification, or compliance,
and will reimburse each such Holder, each of its officers, directors, partners, legal counsel, and accountants and each person controlling such Holder, each such underwriter, and each person who controls any such underwriter, for any legal and any
other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action, provided that the Company will not be liable in any such case to the extent that any such claim, loss,
damage, liability, or expense arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by such Holder or underwriter and stated to be specifically for use therein. It is agreed that the
indemnity agreement contained in this Section 1.5 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action (or actions in respect thereof) if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld). 
 (b) Each Holder will, if Registrable Securities held by such
Holder are included in the securities as to which a registration, qualification, or compliance is effected pursuant to this Agreement, indemnify the Company, each of its directors, officers, partners, legal counsel, and accountants, each person who
controls the Company within the meaning of Section 15 of the Securities Act, each other Holder, and each of their officers, directors, and partners, and each person controlling such other Holder, against all expenses, claims, losses, damages
and liabilities (or actions, proceedings, or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in the Registration Statement which included the indemnifying
Holder’s Registrable Securities and any corresponding prospectus (including any free writing prospectuses), or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by such Holder of the Securities Act or any rule or regulation thereunder applicable to such Holder and relating to action or inaction required of such Holder in connection with any such registration,
qualification, or compliance, and will reimburse the Company and such other Holders, directors, officers, partners, legal counsel, and accountants, persons, underwriters, or control persons for any legal and any other expenses reasonably incurred in
connection with investigating or defending or settling any such claim, loss, damage, liability, or action, in each case involving an untrue statement or omission in the Registration Statement or prospectus, to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus or other document in reliance upon and in conformity with written information furnished to the Company by
such Holder and stated to be specifically for use therein provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or actions in respect
thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided that in no event shall any indemnity under this Section 1.5 exceed the gross proceeds from the offering
received by such Holder. 
  

 5 

 (c) Each party entitled to indemnification under this Section 1.5 (the
“Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and
shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall
be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 1.5, to the extent such failure is not prejudicial. No Indemnifying Party, in the defense of any such claim or litigation, shall, except
with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom. 
 (d) If the indemnification provided for in this
Section 1.5 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations. The
relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
 1.6 Information by Holder. Each Holder shall furnish to the Company such information regarding such Holder and the distribution proposed by such
Holder as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification, or compliance referred to in this Agreement. Any failure to supply such information within 10 business
days from the date of the Company’s request shall excuse the Company from including such Holder’s Registrable Securities in the Registration Statement. 
  

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 1.7 Rule 144 Reporting. With a view to making available the benefits of certain rules and
regulations of the Commission that may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to: 
 (a) File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act at any time it is subject to such reporting requirements; 
 (b) So long as a Holder owns any Registrable
Securities, furnish to the Holder forthwith upon written request a written statement by the Company as to its compliance with the reporting requirements of Rule 144, and of the Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration.

 1.8 Transfer or Assignment of Registration Rights. The registration rights granted by the Company under this Agreement to the
original Holders on the date of execution of this Agreement may be transferred or assigned by such Holders provided that the Company is given written notice at the time of or within a reasonable time after said transfer or assignment, stating the
name and address of the transferee or assignee and identifying the Registrable Securities being transferred or assigned and such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, and
provided further that the registration rights hereunder may only be transferred in connection with permitted transfers of the Registrable Securities and may not be transferred at any time when there are more than ten Holders in the aggregate. Such
transferees (other than transferees that acquire the Registrable Securities in a registered public offering or pursuant to a sale under Rule 144) shall automatically be entitled to receive the benefits of and be conclusively deemed to have agreed to
be bound by the terms and provisions of this Agreement as if it were a party hereto, and shall be deemed to be Holders under this Agreement. 
 1.9 Delay of Registration. No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration as the result of any controversy that might arise with respect to the interpretation or
implementation of this Section 1. 
  

	2.	COVENANTS OF THE COMPANY. 

 The Company hereby
covenants and agrees, so long as any Holder owns any Registrable Securities, as follows: 
 2.1 Information and Rights. 
 The Company will deliver to Holders, as soon as practicable after transmission or occurrence and in any event within 10 days thereof,
copies of any reports or communications delivered to any class of the Company’s security holders or broadly to the financial community, including any filings by the Company with any securities exchange, the Commission or Canadian securities
regulators, in each case unless filed with the Commission on EDGAR or filed with Canadian securities regulators on SEDAR. 
  

 7 

 2.2 Maintain Listing. 
 The Company covenants that, once it has registered the Registrable Securities under the Securities Act, it shall use its reasonable best
efforts to maintain the listing of such securities on each stock exchange or quotation system on which such securities are listed or quoted for a period of at least one year. 
  

	3.	MISCELLANEOUS. 

 3.1 Governing Law. This
Agreement shall be governed in all respects by the laws of the State of New York. 
 3.2 Successors and Assigns. Except as otherwise
expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
 3.3 Entire Agreement; Amendment; Waiver. This Agreement (including the Exhibits hereto) constitutes the full and entire understanding and
agreement between the parties with regard to the subjects hereof. Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated, except by a written instrument signed by the Company and the holders of at least 50% of
the then outstanding Registrable Securities and any such amendment, waiver, discharge or termination shall be binding on all the Holders, but in no event shall the obligation of any Holder hereunder be materially increased, except upon the written
consent of such Holder. This Agreement may be amended to add additional stockholders as parties hereto with the consent of the Company only. 
 3.4 Notices, etc. All notices and other communications required of permitted hereunder shall be in writing and shall be mailed by United States first-class mail, postage prepaid, sent by facsimile or delivered personally by hand or
nationally recognized courier addressed (a) if to a Holder, as indicated on the list of Holders attached hereto as Exhibit A, or at such other address or facsimile number as such holder or permitted assignee shall have furnished to the Company
in writing, or (b) if to the Company, to the Company’s principal executive officer (Attn: President or CEO) or at such address or facsimile number as the Company shall have furnished to each Holder in writing. All such notices and other
written communications shall be effective on the date of mailing, confirmed facsimile transfer or delivery. 
 3.5 Delays or
Omissions. No delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default of the Company under this Agreement shall impair any such right, power or remedy of such Holder nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default 

  

 8 

 
therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default under
this Agreement or any waiver on the part of any Holder of any provisions or conditions of this Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this
Agreement or by law or otherwise afforded to any Holder, shall be cumulative and not alternative. 
 3.6 Rights; Separability. Unless
otherwise expressly provided herein, a Holder’s rights hereunder are several rights, not rights jointly held with any of the other Holders. In case any provision of the Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 3.7 Information
Confidential. Each Holder acknowledges that the information received by them pursuant hereto may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or
disseminate such information to any other person (other than its employees or agents having a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the
Company has made such information available to the public generally or such Holder is required to disclose such information by a governmental body. 
 3.8 Titles and Subtitles. The titles of the paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing or interpreting this Agreement. 
 3.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument. 
  

 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement effective as of
the day and year first above written. 
  

			
	NOVABAY PHARMACEUTICALS, INC.
		
	By:	 	 
	Title:	 	 
	
	DUNDEE SECURITIES CORPORATION
	
	Accepted and agreed to as of the date first above written, on behalf of itself and the other several Underwriters named in Exhibit A 
		
	By:	 	 
	Title:	 	 

  

 10 

 EXHIBIT A 
 List of Holders 
 Dundee Securities Corporation 
 1 Adelaide St. E 
 Suite 2700 Toronto ON M5C 2V9 
 Attention: Mr. Jolyon Burton 
 Desjardins Securities Inc. 
 145 King St. W 
 Suite 2750 Toronto ON M5H 1J8 
 Attention: Nitin Kaushal 
 Blackmont Capital Inc. 
 181 Bay St. 
 Suite 900 Toronto ON M5J 2T3 
 Attention: Gordon H. Larock 
 Dawson James Securities, Inc. 
 925 South Federal Highway 
 Suite 600 Boca Raton, Florida 33432 
 Attention: Scott E. Schalk 
  

 11

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