Document:

EXHIBIT
10.3

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of June 22, 2015 (this “Agreement”), is among MELA Sciences, Inc., a Delaware
corporation (the “Company”), any Additional Debtors (as such term is defined herein and, together with the
Company, the “Debtors”), and Broadfin Capital, LLC, as agent (the “Agent”) for the holders
(collectively, the “Purchasers”) of the Debt Securities (as defined in the Purchase Agreement (as defined below)).

 

WITNESSETH:

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement dated June 22, 2015 (the “Purchase Agreement”) the Purchasers
have severally agreed to extend the loans to the Company evidenced by the Company’s 2.25% Senior Secured Convertible Debentures
due June 22, 2015 (the “Debentures”) and by the Notes (as defined in the Purchase Agreement and, the Notes
together with the Debentures, the “Debt Securities”); and

 

WHEREAS,
in order to induce the Purchasers to extend the loans evidenced by the Debt Securities, each Debtor has agreed to execute and
deliver this Agreement and to grant the Agent, for the ratable benefit of the Purchasers, a security interest in certain property
of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under
the Debt Securities and the obligations of any Additional Debtors under the Guarantee.

 

NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.          Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC.

 

(a)          “Collateral”
means the collateral in which the Agent is granted a security interest by this Agreement and includes the following personal property
of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence, wherever situated, and all
additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts thereof,
including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering the same and
of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities, equity interest or other property
at any time and from time to time acquired, receivable or otherwise distributed in respect of, or in exchange for, any or all
of the Pledged Securities (as defined below):

 

    	 

    	 

    

 

(i)          All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature
and wherever situated, together with all documents of title and documents representing the same, all additions and accessions
thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and
useful in connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory;

 

(ii)         All
contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, other than Excluded Property, rights under any of the Organizational Documents, agreements related
to the Pledged Securities, licenses, distribution and other agreements, computer software (whether “off-the-shelf”,
licensed from any third party or developed by any Debtor), computer software development rights, leases, franchises, customer
lists, quality control procedures, grants and rights, goodwill, Intellectual Property and income tax refunds;

 

(iii)        All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

(iv)        All
documents, letter-of-credit rights, instruments and chattel paper;

 

(v)         All
commercial tort claims;

 

(vi)        All
deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)       All
investment property and all ownership and/or other equity interests in each Subsidiary, including, without limitation, the Subsidiary
Equity Interests, and, in each case, all certificates representing such shares and/or equity interests and, in each case, all
rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable or distributed
in respect of, or exchanged for, any of the foregoing and all rights arising thereunder or in connection therewith, including,
but not limited to, all dividends, interest and cash, other than Excluded Property (collectively, the “Pledged Securities”);

 

(viii)      All
supporting obligations; and

 

(ix)         All
files, records, books of account, business papers, and computer programs; and

 

(x)          the
products and proceeds of all of the foregoing.

 

    	2

    	 

    

 

Notwithstanding
the foregoing, (A) nothing herein shall be deemed to constitute the grant of a security interest in, or an assignment of,
any asset (i) in which a security interest or assignment is void by operation of applicable law, or is otherwise prohibited by
applicable law (in each case to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of
the UCC or other similar applicable law), or (ii) subject to any governmental permit, approval or license not related to Intellectual
Property, if and to the extent that a security interest therein, or assignment thereof, is prohibited by or in violation of (x)
any applicable law, or (y) a term, provision or condition of any such governmental permit, approval or license (unless in each
case, such applicable law, term, provision or condition would be rendered ineffective with respect to the creation of such security
interest pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC); provided, however, that to the extent permitted
by applicable law, this Agreement shall create a valid security interest in such asset and, to the extent permitted by applicable
law, this Agreement shall create a valid security interest in the proceeds of such asset and (B) the Collateral does not
include any Excluded Property.

 

(b)          “Event
of Default” has the meaning ascribed to such term in the Debentures.

 

(c)          “Excluded
Property” means 35% of the equity interests in any Subsidiary organized in a jurisdiction outside of the United States.

 

(d)          “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all
letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof,
and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part
thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress,
service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing
or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether
in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or
any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade
secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to
obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes
of action for infringement of the foregoing.

 

(e)          “Liens”
has the meaning ascribed to such term in the Purchase Agreement.

 

    	3

    	 

    

 

(f)          “Majority
in Interest” means, at any time of determination, the majority in interest (based on then-outstanding principal amounts
of Debt Securities at the time of such determination) of the Purchasers.

 

(g)          “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly executed and
such other instruments or documents as the Agent may reasonably request.

 

(h)          “Obligations”
means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become
due, or that are now or may be hereafter contracted or acquired, or owing to, of any Debtor to the Purchasers, under this Agreement,
the Debt Securities, the Subsidiary Guarantee (to be entered into pursuant to the terms of the Purchase Agreement by any Additional
Debtors) (the “Guarantee”) and any other instruments, agreements or other documents executed and/or delivered
in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect,
absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time
decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities
that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from any of the Purchasers
as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified
from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall include, without
limitation: (i) principal of, and interest on the Debt Securities and the loans extended pursuant thereto; (ii) any and all other
fees, indemnities, costs, obligations and liabilities of the Debtors from time to time under or in connection with this Agreement,
the Debt Securities, the Guarantee and any other instruments, agreements or other documents executed and/or delivered in connection
herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing
that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving any Debtor.

 

(i)          “Organizational
Documents” means with respect to any Debtor, the documents by which such Debtor was organized (such as a certificate
of incorporation, certificate of limited partnership or articles of organization, and including, without limitation, any certificates
of designation for preferred stock or other forms of preferred equity) and which relate to the internal governance of such Debtor
(such as bylaws, a partnership agreement or an operating, limited liability or members agreement).

 

(j)          “Permitted
Liens” has the meaning ascribed to such term in the Debentures.

 

(k)          “Pledged
Interests” has the meaning ascribed to such term in Section 4(j).

 

    	4

    	 

    

 

(l)          “Pledged
Securities” has the meaning ascribed to such term in Section 1(a).

 

(m)          “UCC”
means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time.

 

2.          Grant
of Security Interest in Collateral. As an inducement for the Purchasers to extend the loans evidenced by the Debt Securities
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations,
each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent, for the ratable benefit of the
Purchasers, a security interest in and to, a lien upon and a right of set-off against all of their respective right, title and
interest of whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively,
the “Security Interests”).

 

3.          Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, each Debtor shall
deliver or cause to be delivered to the Agent any and all certificates and other instruments or documents representing any of
the Collateral, together with all Necessary Endorsements. If and when the Collateral includes Pledged Securities, each Debtor
shall deliver or cause to be delivered to the Agent any and all certificates and other instruments representing or evidencing
such Pledged Securities, together with all Necessary Endorsements and each Organizational Document governing such Pledged Securities.

 

4.          Representations,
Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section of the disclosure
schedules delivered to the Agent concurrently herewith (the “Disclosure Schedules”), which Disclosure Schedules
shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with, the Agent and the Purchasers
as follows:

 

(a)          Each
Debtor has the requisite corporate, partnership, limited liability company or other entity power and authority to enter into this
Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this
Agreement and the filings contemplated herein have been duly authorized by all necessary action on the part of such Debtor and
no further action is required by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes
the legal, valid and binding obligation of each Debtor, enforceable against each Debtor in accordance with its terms except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application
relating to or affecting the rights and remedies of creditors and by general principles of equity.

 

(b)          The
Debtors have no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
4.(b) attached hereto. Except as disclosed on Schedule 4.(b), (i) no Debtor owns any real property and (ii) none of
the Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

 

    	5

    	 

    

 

(c)          Except
for Permitted Liens, each of the Debtors is the sole owner of the Collateral it purports to own (except for non-exclusive licenses
granted by any Debtor in the ordinary course of business), free and clear of any Liens and is fully authorized to grant the Security
Interests. Except as set forth on Schedule 4.(c) attached hereto, there is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security agreement, license or transfer or any notice
of any of the foregoing (other than those that will be filed in favor of the Agent pursuant to this Agreement) covering or affecting
any of the Collateral. Except as set forth on Schedule 4.(c) attached hereto and except pursuant to this Agreement, as
long as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such
office or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor
of the Agent pursuant to the terms of this Agreement).

 

(d)          No
written claim has been received that any material portion of Collateral or any Debtor's use of any material portion of Collateral
violates the rights of any third party. There has been no adverse decision to any Debtor's claim of ownership rights in or exclusive
rights to use the Collateral in any jurisdiction or to any Debtor's right to keep and maintain such Collateral in full force and
effect, and there is no legal proceeding involving said rights pending or, to the best knowledge of any Debtor, threatened in
writing before any court, judicial body, administrative or regulatory agency, arbitrator or other governmental authority.

 

(e)          Each
Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at the locations set forth on Schedule 4.(b) attached hereto and may not relocate such books of account
and records or tangible Collateral unless it delivers to the Agent at least 10 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate
financing statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken
to perfect the Security Interests to create in favor of the Agent, for the ratable benefit of the Purchasers, a valid, perfected
and continuing perfected first priority lien in the Collateral, subject to Permitted Liens.

 

    	6

    	 

    

 

(f)          This
Agreement creates in favor of the Agent, for the ratable benefit of the Purchasers, a valid security interest in the Collateral
located in the United States, subject only to Permitted Liens, securing the payment and performance of the Obligations. Upon making
the filings described in this Agreement, all security interests created hereunder in any Collateral located in the United States
which may be perfected by filing Uniform Commercial Code financing statements will have been duly perfected. Except for the filing
of the Uniform Commercial Code financing statements referred to in the immediately following paragraph, the recordation of the
Intellectual Property Security Agreement (as defined in Section 4(p) hereof) with respect to copyrights and copyright applications
in the United States Copyright Office referred to in paragraph (m), the execution and delivery of deposit account control agreements
satisfying the requirements of Section 9-104(a)(2) of the UCC with respect to each deposit account of the Debtors,
and the delivery of the certificates and other instruments provided in Section 3, no action is necessary to create,
perfect or protect the security interests created hereunder in Collateral located in the United States. Without limiting the generality
of the foregoing, except for the filing of said financing statements, the recordation of said Intellectual Property Security Agreement
and the execution and delivery of said deposit account control agreements, no consent of any third parties and no authorization,
approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for (i)
the execution, delivery and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder
in the Collateral located in the United States or (iii) the enforcement of the rights of the Agent and the Purchasers hereunder,
other than consents from holders of Permitted Liens obtained in writing and delivered to the Agent prior to the date of this Agreement.

 

(g)          Each
Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(h)          The
execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational
Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any material agreement, or credit facility, to which any Debtor
is a party or by which any property or asset of any Debtor is bound or affected. If any, all required consents (including, without
limitation, from stockholders or creditors of any Debtor) necessary for any Debtor to enter into and perform its obligations hereunder
have been obtained.

 

(i)          The
capital stock and other equity interests listed on Schedule 4.(i) hereto (the “Subsidiary Equity Interests”)
represent all of the capital stock and other equity interests of the Subsidiaries, and represent all capital stock and other equity
interests owned, directly or indirectly, by the Debtors. All of the Subsidiary Equity Interests are validly issued, fully paid
and nonassessable. Each Debtor that is indicated on Schedule 4.(i) to be the owner of Subsidiary Equity Interests is the
legal and beneficial owner of such Subsidiary Equity Interests, free and clear of any lien, security interest or other encumbrance
except for the security interests created by this Agreement and other Permitted Liens.

 

(j)          The
ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the
“Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of
the UCC and are not held in a securities account or by any financial intermediary.

 

    	7

    	 

    

 

(k)          Except
for Permitted Liens, each Debtor shall at all times maintain the liens and Security Interests provided for hereunder as valid
and perfected first priority liens and security interests in the Collateral located in the United States in favor of the Agent
until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof. Each Debtor hereby
agrees to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all
Collateral for the account of the Agent. At the request of the Agent, each Debtor will authorize the Agent at any time or from
time to time as reasonably necessary one or more financing statements pursuant to the UCC in form reasonably satisfactory to the
Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Agent to be, necessary
to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing, each Debtor shall
pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interests hereunder, and each Debtor
shall obtain and furnish to the Agent from time to time, upon reasonable request, such releases and/or subordinations of claims
and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l)          No
Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive
licenses granted by a Debtor in its ordinary course of business, sales of inventory by a Debtor in its ordinary course of business
and other Collateral which is no longer useful or material to a Debtor’s business) without the prior written consent of
a Majority in Interest.

 

(m)          Each
Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order, subject
to ordinary wear and tear, and shall not operate or locate any such Collateral (or cause to be operated or located) in any area
excluded from insurance coverage.

 

(n)          Each
Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover
the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and
the insurer issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional
insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason
whatsoever, such insurer will promptly notify the Agent and such cancellation or material change shall not be effective as to
the Agent for at least thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend
or increase coverage under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any
default in the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default
exists and if the aggregate insurance policy proceeds arising out of any claim or series of related claims do not exceed $100,000,
loss payments in each instance will be applied by the Debtors to the repair and/or replacement of property with respect to which
the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent
not so applied, shall be payable to the Debtors; provided, however, that payments received by the Debtors after
an Event of Default occurs and is continuing or in excess of $100,000 for any occurrence or series of related occurrences shall
be paid to the Agent and, if received by the Debtors, shall be held in trust for the Purchasers and immediately paid over to the
Agent unless otherwise directed in writing by the Agent. Copies of such policies or the related certificates, in each case, naming
the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and at the time any new
policy of insurance is issued.

 

    	8

    	 

    

 

(o)          Each
Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Agent promptly, in sufficient detail, of any material
adverse change in the Collateral as a whole, and of the occurrence of any event which would have a material adverse effect on
the value of the Collateral as a whole or on the Agent’s security interest therein.

 

(p)          Each
Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time
to time reasonably request to perfect, protect or enforce the Agent’s security interest in the Collateral including, without
limitation, if applicable, the execution and delivery of a separate security agreement with respect to each Debtor’s Intellectual
Property (“Intellectual Property Security Agreement”) in which the Agent has been granted a security interest
hereunder, substantially in a form reasonably acceptable to the Agent, which Intellectual Property Security Agreement, other than
as stated therein, shall be subject to all of the terms and conditions hereof.

 

(q)          Each
Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon
at least two (2) Business Day’s prior notice, and to make copies of records pertaining to the Collateral as may be reasonably
requested by the Agent from time to time.

 

(r)          Each
Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

(s)          Each
Debtor shall promptly notify the Agent in sufficient detail upon becoming aware of any attachment, garnishment, execution or other
legal process levied against any Collateral and of any other information received by such Debtor that may reasonably be expected
to materially and adversely affect the value of the Collateral as a whole, the Security Interest or the rights and remedies of
the Agent and the Purchasers hereunder.

    	9

    	 

    

 

(t)          All
information heretofore, herein or hereafter supplied to the Agent or the Purchasers by or on behalf of any Debtor with respect
to the Collateral is accurate and complete in all material respects as of the date furnished.

 

(u)          The
Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any
rights and franchises material to its business.

 

(v)         No
Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has
one), legal or corporate structure, or identity, unless it provides at least 10 days prior written notice to the Agent of such
change and, at the time of such written notification, such Debtor provides any financing statements or fixture filing necessary
to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(w)          Except
in the ordinary course of business, no Debtor will consign any of its inventory or sell any of its inventory on bill and hold,
sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent, which consent shall not
be unreasonably withheld.

 

(x)          No
Debtor will relocate its chief executive office to a new location without (i) providing 30 days prior written notification thereof
to the Agent and (ii) providing any financing statements or fixture filings necessary to perfect and continue the perfection of
the Security Interests granted and evidenced by this Agreement.

 

(y)          Each
Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor’s name in Schedule
4.(y) attached hereto, which Schedule 4.(y) sets forth each Debtor’s organizational identification number or,
if any Debtor does not have one, states that one does not exist.

 

(z)          
(i) The actual name of each Debtor is the name set forth in Schedule 4.(y) attached hereto; (ii) no Debtor has any trade
names except as set forth on Schedule 4.(z) attached hereto; (iii) no Debtor has used any name other than that stated in
the preamble hereto or as set forth on Schedule 4.(z) for the preceding five years; and (iv) no entity has merged into
any Debtor or been acquired by any Debtor within the past five years except as set forth on Schedule 4.(z).

 

(aa)         At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver
such Collateral to the Agent.

 

(bb)         Each
Debtor, in its capacity as issuer, shall comply with any and all orders and instructions of Agent regarding the Pledged Interests
consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106 (or any
successor section) of the UCC. Further, no Debtor shall enter into any agreement with any person or entity other than Agent that
would confer “control”, within the meaning of Article 8 of the UCC, of any Pledged Interests.

 

    	10

    	 

    

 

(cc)         Each
Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery is not
possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created
by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall cause the
underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(dd)         If
there is any investment property or deposit account included as Collateral that (i) can be perfected by “control”
through an account control agreement, and (ii) at any time has a balance (in either cash or value of investment property,
or both) exceeding $25,000, the applicable Debtor shall cause such an account control agreement, in form and substance in each
case satisfactory to the Agent, to be entered into and delivered to the Agent for the ratable benefit of the Purchasers, unless
the Major Investors waive the foregoing requirement with respect to any such investment property or deposit account otherwise
constituting Collateral; provided, that (x) as of the date of this Agreement, Debtor is not required to provide an account control
agreement over the account maintained by Debtor with J.P. Morgan in Germany as of the date of this Agreement (the “Germany
Account”), (y) Debtor shall notify the Agent at any time that the Germany Account has a balance (in either cash or value
of investment property, or both) exceeding $1,000,000 (a “Germany Account Notice”), and (z) Debtor shall cause
an account control agreement, in form and substance satisfactory to the Agent, to be entered into and delivered to the Agent for
the ratable benefit of the Purchasers in respect of the Germany Account upon instructions from the Agent to do so given by the
Agent to Debtor at any time after Debtor is obligated to deliver a Germany Account Notice pursuant to the preceding clause (y).

 

(ee)         To
the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Agent, for the ratable benefit of the Purchasers.

 

(ff)         To
the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Agent in notifying
such third party of the Agent’s security interest in such Collateral and shall use commercially reasonable efforts to obtain
an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory
to the Agent.

 

(gg)         If
any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Agent in a writing
signed by such Debtor of the particulars thereof and grant to the Agent, for the ratable benefit of the Purchasers, in such writing
a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form
and substance satisfactory to the Agent.

 

    	11

    	 

    

 

(hh)         Each
Debtor shall immediately provide written notice to the Agent of any and all accounts which arise out of contracts with any governmental
authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in such accounts
and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate with the
Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal,
state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds
thereof.

 

(ii)          Each
Debtor shall cause each wholly-owned Subsidiary that is organized in a jurisdiction within the United States to promptly become
a party hereto (an “Additional Debtor”), by executing and delivering an Additional Debtor Joinder in substantially
the form of Annex A attached hereto and comply with the provisions hereof applicable to the Debtors. Concurrent therewith,
the Additional Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred to in) this
Agreement, as applicable, which replacement schedules shall supersede, or supplements shall modify, the Schedules then in effect.
The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates, incumbency
certificates, organizational documents, financing statements and other information and documentation as the Agent may reasonably
request. Upon delivery of the foregoing to the Agent, the Additional Debtor shall be and become a party to this Agreement with
the same rights and obligations as the Debtors, for all purposes hereof as fully and to the same extent as if it were an original
signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date
of execution and delivery of such Additional Debtor Joinder, and all references herein to the “Debtors” shall be deemed
to include each Additional Debtor.

 

(jj)           Each
Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Debt Securities.

 

(kk)         Each
Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify each
issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Agent on the books
of such issuer. Further, except with respect to certificated securities delivered to the Agent, the applicable Debtor shall deliver
to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant UCC with respect
to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement shall confirm
that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the continuation
of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of any designee
of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions of Agent
regarding such Pledged Securities without the further consent of the applicable Debtor.

 

    	12

    	 

    

 

(ll)         In
the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another party
or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities,
each Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of
incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences
of indebtedness, books of account, financial records and all other Organizational Documents and records of the Debtors and their
direct and indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and
directors of the Debtors and their direct and indirect subsidiaries, if so requested; and (iii) use its best efforts to obtain
any approvals that are required by any governmental or regulatory body in order to permit the sale of the Pledged Securities to
the Transferee or the purchase or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the
business of the Debtors and their direct and indirect subsidiaries.

 

(mm)         Without
limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be registered
at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby
with respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark
Office to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely
or by license) or creates any additional material Intellectual Property on a quarterly basis.

 

(nn)         Each
Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further
instruments and documents, and take all such further action as the Agent may reasonably request, in order to perfect and protect
any security interest granted or purported to be granted hereby or to enable the Agent and the Purchasers to exercise and enforce
their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this Agreement.

 

(oo)         Schedule
4.(oo) attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by any of the Debtors as of the date hereof. Schedule 4.(oo) lists all material licenses in favor
of any Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All United States material
patents and trademarks of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material
copyrights of the Debtors have been duly recorded at the United States Copyright Office.

 

(pp)         Except
as set forth on Schedule 4.(pp) attached hereto, none of the account debtors or other persons or entities obligated on
any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state
or local statute or rule in respect of such Collateral.

 

(qq)         Until
the Obligations shall have been paid and performed in full (other than inchoate indemnification obligations), the Company covenants
that it shall promptly cause any Additional Debtor to enter into a Subsidiary Guarantee in favor of the Agent, for the ratable
benefit of the Purchasers, in the form of Exhibit F to the Purchase Agreement.

    	13

    	 

    

 

5.           Effect
of Pledge on Certain Rights. The parties hereto agree that, if any of the Collateral subject to this Agreement consists of
nonvoting equity or ownership interests (regardless of class, designation, preference or rights) that may be converted into voting
equity or ownership interests upon the occurrence of certain events (including, without limitation, upon the transfer of all or
any of the other stock or assets of the issuer), the pledge of such equity or ownership interests pursuant to this Agreement or
the enforcement of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such
conversion rights, notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject
or to which any Debtor is party.

 

6.           Defaults.
The following events shall be “Events of Default”:

 

(a)          The
occurrence of an Event of Default under the Debt Securities;

 

(b)          Any
representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)          The
failure by any Debtor to observe or perform any of its obligations hereunder for ten (10) days after delivery to such Debtor of
notice of such failure by the Agent unless such default is capable of cure but cannot be cured within such time frame and such
Debtor is all commercially reasonable efforts to cure same in a timely fashion; or

 

(d)          Any
provision of this Agreement is at any time for any reason declared to be null and void, any Debtor contests the validity or enforceability
of this Agreement, any Debtor governmental authority having jurisdiction over any Debtor commences any proceeding seeking to establish
the invalidity or unenforceability of this Agreement, or any Debtor denies that any Debtor has any liability or obligation purported
to be created under this Agreement.

 

7.           Duty
To Hold In Trust.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter that such Event of Default remains continuing, each Debtor shall,
upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant
to the Debt Securities or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation
to pay any such sum, hold the same in trust for the Purchasers and shall forthwith endorse and transfer any such sums or instruments,
or both, to the Agent, for the ratable benefit of the Purchasers, for application to the satisfaction of the Obligations (and
if any Debt Securities are not outstanding, pro-rata in proportion to the initial purchases of the remaining Debt Securities).

    	14

    	 

    

 

(b)          If
any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation,
shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in
exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Purchasers;
(ii) hold the same in trust on behalf of and for the benefit of the Purchasers; and (iii) to deliver any and all certificates
or instruments evidencing the same to Agent on or before the close of business on the fifth business day following the receipt
thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the
terms of this Agreement as Collateral.

 

8.           Rights
and Remedies Upon Default.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter that such Event of Default remains continuing, the Purchasers,
acting through the Agent, shall have the right to exercise all of the remedies conferred hereunder and under the Debt Securities,
and the Purchasers, acting through the Agent, shall have all the rights and remedies of a secured party under the UCC. Without
limitation, the Agent, for the benefit of the Purchasers, shall have the following rights and powers:

 

(i)         The Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor
shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at
such Debtor's premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective premises
and facilities for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable
form.

 

(ii)         Upon
notice to the Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be authorized
to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the ratable benefit of the Purchasers,
any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s
discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right
(but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof,
including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection
with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or
any Debtor or any of its direct or indirect subsidiaries.

 

    	15

    	 

    

 

(iii)         The Agent shall have the right to use the Collateral and shall have the right to assign, sell, lease or otherwise dispose of and
deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or
stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place
or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all without (except as shall be required
by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption of a Debtor,
which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral, the Agent, for the
ratable benefit of the Purchasers, may, unless prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of any Debtor, which
are hereby waived and released.

 

(iv)        The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Purchasers, and to enforce the Debtors’ rights against such account
debtors and obligors.

 

(v)         The
Agent, for the ratable benefit of the Purchasers, may (but is not obligated to) direct any financial intermediary or any other
person or entity holding any investment property to transfer the same to the Agent, on behalf of the Purchasers, or its designee.

 

(vi)        The
Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Purchasers or any designee or any purchaser of
any Collateral.

 

(b)          The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtors
will only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it
may have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including,
without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its
rights and remedies with respect thereto.

 

    	16

    	 

    

 

(c)          For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement
or applicable law, each Debtor hereby grants to the Agent, for the ratable benefit of the Purchasers an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense following
an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same may be located,
and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer
software and programs used for the compilation or printout thereof.

 

9.          Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on
account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Agent
in enforcing its and the Purchasers’ rights hereunder and in connection with collecting, storing and disposing of the Collateral,
and then to satisfaction of the Obligations pro rata among the Purchasers (based on then-outstanding principal amounts of Debt
Securities at the time of any such determination), and to the payment of any other amounts required by applicable law, after which
the Purchasers shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of the
Collateral, the proceeds thereof are insufficient to pay all amounts to which the Agent and the Purchasers are legally entitled,
the Debtors will be liable for the deficiency, together with interest thereon, at the rate of 12% per annum or the lesser amount
permitted by applicable law (the “Default Rate”), and the reasonable fees of any attorneys employed by the
Agent and the Purchasers to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims,
damages and demands against the Agent and the Purchasers arising out of the repossession, removal, retention or sale of the Collateral,
unless due solely to the gross negligence or willful misconduct of the Agent and the Purchasers as determined by a final judgment
(not subject to further appeal) of a court of competent jurisdiction.

 

10.         Securities
Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part
of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales
to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for
investment and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be at prices and
on terms less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the
sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public under
the Securities Laws. Each Debtor shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws
(including, without limitation, registration thereunder if requested by Agent) applicable to the sale of the Pledged Securities
by Agent.

 

    	17

    	 

    

 

11.         Costs
and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with
any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.
The Debtors will also, upon demand, pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees
and expenses of its counsel, which the Agent, for the benefit of the Purchasers, may incur in connection with the creation, perfection,
protection, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance,
amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable
fees and expenses of its counsel, which the Agent, for the benefit of the Purchasers, and the Purchasers may incur in connection
with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization
upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Purchasers under the Debt Securities.
Until so paid, any fees payable hereunder shall be added to the principal amount of the Debt Securities and shall bear interest
at the Default Rate.

 

12.         Responsibility
for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Purchaser (i) has
any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights
relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each
Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed
by such Debtor thereunder. Neither the Agent nor any Purchaser shall have any obligation or liability under any such contract
or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Purchaser of any payment relating
to any of the Collateral, nor shall the Agent or any Purchaser be obligated in any manner to perform any of the obligations of
any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Agent or any Purchaser in respect of the Collateral or as to the sufficiency of any performance by any party under
any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to the Agent or to which the Agent or any Purchaser may be entitled at any
time or times.

 

13.         Security
Interests Absolute. All rights of the Agent and the Purchasers and all of the Obligations are absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debt Securities or any agreement entered into
in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or
performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to
any departure from the Debt Securities or any other agreement entered into in connection with the foregoing; (c) any exchange,
release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other
collateral for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Agent and the
Purchasers to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection
with the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to
a Debtor, or a discharge of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid
and performed in full (other than inchoate indemnification obligations), the rights of the Agent and the Purchasers shall continue
even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or
bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for
performance. In the event that at any time any transfer of any Collateral or any payment received by the Agent and the Purchasers
hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent
conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other
than the Agent and the Purchasers, then, in any such event, each Debtor’s obligations hereunder shall survive cancellation
of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement,
but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives
all right to require the Agent and the Purchasers to proceed against any other person or entity or to apply any Collateral which
the Agent and the Purchasers may hold at any time, or to marshal assets, or to pursue any other remedy.

 

    	18

    	 

    

 

14.         Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Debt Securities
have been paid in full and all other Obligations have been paid or discharged (other than inchoate indemnification obligations);
provided, however, that all indemnities of the Debtors contained in this Agreement shall survive and remain operative
and in full force and effect regardless of the termination of this Agreement.

 

15.         Power
of Attorney; Further Assurances.

 

(a)          Each
Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors or assigns
with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of the Agent
or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts,
money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect
of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant to the
UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv)
to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the
expense of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to
do all acts and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests
granted therein in order to effect the intent of this Agreement and the Debt Securities all as fully and effectually as the Debtors
might or could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long
as any of the Obligations (other than inchoate indemnification obligations) shall be outstanding. The designation set forth herein
shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents or agreements
to which any Debtor is subject or to which any Debtor is a party. Without limiting the generality of the foregoing, after the
occurrence and during the continuance of an Event of Default, each Purchaser is specifically authorized to execute and file any
applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property
with the United States Patent and Trademark Office and the United States Copyright Office.

 

    	19

    	 

    

 

(b)          On
a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule 4.(y)
attached hereto, all such instruments, and take all such action as may reasonably be requested by the Agent, to perfect the
Security Interests granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring and
confirming to the Agent the grant or perfection of a perfected security interest in all the Collateral under the UCC.

 

(c)          Each
Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact, with full authority in the place and instead
of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and to execute
any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing,
in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral
without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral
as “all assets” or “all personal property” or words of like import, and ratifies all such actions taken
by the Agent. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter
as long as any of the Obligations shall be outstanding.

 

16.         Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement.

 

17.         Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the
guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the right,
in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any
way modifying or affecting any of the Purchasers’ rights and remedies hereunder.

 

18.         [Reserved]

 

    	20

    	 

    

 

19.         Miscellaneous.

 

(a)          No
course of dealing between the Debtors, on the one hand, and the Agent and the Purchasers, on the other hand, nor any failure to
exercise, nor any delay in exercising, on the part of the Agent or any of the Purchasers, any right, power or privilege hereunder
or under the Debt Securities shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or
privilege.

 

(b)          All
of the rights and remedies of the Agent and the Purchasers with respect to the Collateral, whether established hereby or by the
Debt Securities or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly
or concurrently.

 

(c)          This
Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which
the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this Agreement
may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Debtors
and the Purchasers holding 67% or more of the principal amount of Debt Securities then outstanding, or, in the case of a waiver,
by the party against whom enforcement of any such waived provision is sought; provided, however, unanimous consent
shall be required for any amendment that would adversely affect any Purchaser.

 

(d)          If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(e)          No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)          This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. No Debtor
may assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than
by merger). The Purchasers are third-party beneficiaries of this Agreement. Any Purchaser may assign any or all of its rights
under this Agreement to any Person (as defined in the Purchase Agreement) to whom such Purchaser assigns or transfers any Obligations,
provided such transferee agrees in writing to be bound, with respect to the transferred Obligations, by the provisions of this
Agreement that apply to the “Purchasers.”

 

    	21

    	 

    

 

(g)          Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(h)
        Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, each Debtor agrees that all proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Debt Securities
(whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan.
Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, each Debtor hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby.

 

(i)          This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)          All
Debtors shall jointly and severally be liable for the obligations of each Debtor to the Agent and the Purchasers hereunder.

 

    	22

    	 

    

 

(k)          Each
Debtor shall indemnify, reimburse and hold harmless the Agent and the Purchasers and their respective partners, members, shareholders,
officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively,
“Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and
expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the foregoing) imposed
on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from this Agreement
or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result from
the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision of a court of competent
jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification provision
in the Debt Securities, the Purchase Agreement or any other agreement, instrument or other document executed or delivered in connection
herewith or therewith.

 

(l)          Nothing
in this Agreement shall be construed to subject Agent or any Purchaser to liability as a partner in any Debtor or any of its direct
or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries that
is a limited liability company, nor shall Agent or any Purchaser be deemed to have assumed any obligations under any partnership
agreement or limited liability company agreement, as applicable, of any such Debtor or any of its direct or indirect subsidiaries
or otherwise, unless and until the Agent or any such Purchaser exercises its right to be substituted for such Debtor as a partner
or member, as applicable, pursuant hereto.

 

(m)          To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or
compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and approval and
waive any such noncompliance with the terms of said documents.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	23

    	 

    

 

EXHIBIT
10.3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

	 	MELA SCIENCES, INC.
	 	 	 
	 	By:	 
	 	 	Michael R. Stewart
	 	 	Chief Executive Officer
	 	 	 
	 	agent:
	 	 
	 	BROADFIN CAPITAL, LLC
	 	 	 
	 	By:	 
	 	 	Name:

 

    	 

    	 

    

 

ANNEX A

to

SECURITY

AGREEMENT

 

FORM
OF ADDITIONAL DEBTOR JOINDER

 

to that certain
Security Agreement dated as of June 22, 2015 made by MELA Sciences, Inc. (the “Company”) and its subsidiaries
party thereto from time to time, as Debtors, to and in favor of the Agent identified therein (the “Security Agreement”),
relating to the Company’s 2.25% Senior Secured Convertible Debentures due June 22, 2020 and 9% Senior Secured Notes

 

Reference
is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have
the meanings given to such terms in, or by reference in, the Security Agreement.

 

The
undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Agent referred to above, the undersigned
shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtors under the
Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to
have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor
Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE AGENT, FOR THE RATABLE BENEFIT
OF THE PURCHASERS, A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND
AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

 

Attached
hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable.

 

The
undersigned shall deliver an executed copy of this Joinder to the Agent, and the Agent may rely on the matters set forth herein
on or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent of the
Agent.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	[INSERT NAMES OF ADDITIONAL DEBTORS]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Dated:  ______ __, 20__EXHIBIT 10.4

 

ASSET PURCHASE AGREEMENT

 

by and among

 

MELA SCIENCES, INC.,

 

PhotoMedex,
Inc.

 

and

 

PHOTOMEDEX TECHNOLOGY, INC.

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS; INTERPRETATION	1
	Section 1.1	Definitions	1
	Section 1.2	Additional Defined Terms	8
	Section 1.3	Interpretation	9
	 	 	 
	ARTICLE II PURCHASE AND SALE; CLOSING	9
	Section 2.1	Purchase and Sale	9
	Section 2.2	Purchase Price	9
	Section 2.3	The Closing	10
	Section 2.4	Payment of Purchase Price; Closing Deliverables	10
	Section 2.5	Working Capital Adjustment	11
	Section 2.6	Withholding Tax	13
	Section 2.7	Non-Assignable Asset	13
	Section 2.8	Foreign Subsidiary	14
	Section 2.9	Consumer Business Vendor Contracts	14
	Section 2.10	FDA Audit	14
	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF PHMD	15
	Section 3.1	Organization; Power; Authorization	15
	Section 3.2	Binding Effect; Noncontravention	15
	Section 3.3	Capitalization	16
	Section 3.4	Financial Statements	16
	Section 3.5	No Undisclosed Liabilities	17
	Section 3.6	Absence of Changes	17
	Section 3.7	Title to Assets; Condition; Inventory; Accounts Receivable	18
	Section 3.8	Compliance with Laws; Permits	19
	Section 3.9	Proceedings; Orders	19
	Section 3.10	Tax Matters	20
	Section 3.11	Environmental Matters	21
	Section 3.12	Intellectual Property	22
	Section 3.13	Real Estate	23
	Section 3.14	Employee Benefits	23
	Section 3.15	Contracts	25
	Section 3.16	Labor Matters	26
	Section 3.17	Insurance	26
	Section 3.18	Affiliate Transactions	27
	Section 3.19	Brokerage	27
	Section 3.20	FDA and Regulatory Matters	27
	Section 3.21	Foreign Corrupt Practices; OFAC	27
	Section 3.22	Accounting and Disclosure Controls	28
	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER	28
	Section 4.1	Organization, Power; Authorization	28

 

    	 

    	 

    

 

	Section 4.2	Binding Effect; Noncontravention	28
	Section 4.3	Consents	29
	Section 4.4	Brokerage	29
	Section 4.5	Financing	29
	Section 4.6	Proceedings; Orders	29
	Section 4.7	Investment	29
	Section 4.8	Solvency	30
	 	 	 
	ARTICLE V COVENANTS	30
	Section 5.1	Public Announcements; SEC Filings	30
	Section 5.2	Transaction Expenses; Transfer Taxes	30
	Section 5.3	Further Assurances	31
	Section 5.4	Post-Closing Access	31
	Section 5.5	Employees; Employees Benefit Plans	31
	Section 5.6	Non-Compete and Non-Solicitation	33
	Section 5.7	PhotoMedex Name	34
	Section 5.8	PHMD Korea Employee	34
	 	 	 
	ARTICLE VI [RESERVED]	34
	 	 
	ARTICLE VII [RESERVED]	34
	 	 
	ARTICLE VIII INDEMNIFICATION	34
	Section 8.1	Indemnification	34
	Section 8.2	Procedures for Indemnification	35
	Section 8.3	Limitations on Indemnification	37
	Section 8.4	Escrow Amount	38
	Section 8.5	Adjustments to Purchase Price	39
	 	 	 
	ARTICLE IX TAX MATTERS	39
	Section 9.1	Cooperation on Tax Matters	39
	Section 9.2	Tax Indemnification	40
	Section 9.3	Straddle Period	40
	Section 9.4	Responsibility for Filing Tax Returns for Periods through Closing Date	41
	Section 9.5	Amended Returns and Retroactive Elections	42
	Section 9.6	Refunds and Tax Benefits	42
	Section 9.7	Purchase Price Allocations	42
	Section 9.8	Tax Sharing Agreements	43
	Section 9.9	Tax Clearance Certificates	43
	 	 	 
	ARTICLE X MISCELLANEOUS	43
	Section 10.1	Confidentiality	43
	Section 10.2	Consent to Amendments	43
	Section 10.3	Entire Agreement	43
	Section 10.4	Successors and Assigns	43

 

    	ii

    	 

    

 

	Section 10.5	Governing Law; Consent to Jurisdiction; Venue; Waiver of Jury Trial	44
	Section 10.6	No Additional Representations; Disclaimer	44
	Section 10.7	Notices	45
	Section 10.8	Disclosure Letter	46
	Section 10.9	Counterparts	46
	Section 10.10	Time is of the Essence	47
	Section 10.11	No Third Party Beneficiaries	47
	Section 10.12	No Strict Construction	47
	Section 10.13	Headings	47
	Section 10.14	Waiver of Conflict	47

 

    	iii

    	 

    

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE
AGREEMENT (this “Agreement”) is made as of June 22, 2015, by and among MELA Sciences, Inc., a Delaware corporation
(“Purchaser”), PhotoMedex, Inc., a Nevada corporation (“PHMD”) and PhotoMedex Technology,
Inc., a Delaware corporation (“P-Tech” and, together with PHMD, the “Sellers” and each, a
“Seller”). Purchaser and the Sellers are each sometimes referred to herein as a “Party” and,
collectively, as the “Parties.” Capitalized terms which are used but not otherwise defined herein are defined
in Section 1.1 below.

 

A.           As
of the date hereof, PHMD directly or indirectly owns all of the issued, subscribed and paid-up share capital (the “Securities”)
of PhotoMedex India Private Limited, a private limited company limited by shares, incorporated under the laws of India (the “Foreign
Subsidiary”);

 

B.           The
Seller Companies, together with one or more direct or indirect wholly-owned Subsidiaries of PHMD, own all of the Business Assets;
and

 

C.           The Parties
desire to enter into this Agreement pursuant to which (i) the Sellers agree to sell, or cause to be sold, to Purchaser, and
Purchaser agrees to purchase from the Sellers, and one or more of PHMD’s Subsidiaries, as the case may be, all of the Transferred
Assets, and (ii) Purchaser agrees to assume and become responsible for paying, performing and discharging the Business Liabilities,
on the terms and subject to the conditions contained herein.

 

NOW, THEREFORE, in
consideration of the representations, warranties, covenants and agreements contained herein, intending to be legally bound, the
Parties hereby agree as follows:

 

ARTICLE
I

DEFINITIONS; INTERPRETATION

 

Section 1.1           Definitions.
For the purposes of this Agreement, the following terms have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person who directly or indirectly controls, is controlled by, or is under common control
with, such Person. The term “control” means the possession, directly or indirectly, 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, and the terms “controlled” and “controlling” have meanings correlative thereto.

 

“Business”
means the XTRAC and VTRAC domestic and international lines of business of P-Tech and certain of PHMD’s other Subsidiaries,
as described within the descriptions of “Physician Recurring” and “Professional” business segments as described
in Form 10-K filed by PHMD with the SEC for the fiscal year ending on December 31, 2014.

 

“Business
Assets” means (i) the assets and properties of the Sellers, PHMD Korea and PHMD UK to the extent such assets or properties
are primarily used in, or otherwise necessary for, the operation of the Business, or (ii) are otherwise listed on Appendix I,
but, in each case, specifically excluding the Excluded Assets.

 

    	 

    	 

    

 

“Business
Day” means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New
York, or is a day on which banking institutions located in New York, NY are authorized or required by Legal Requirement or other
governmental action to close.

 

“Business
Employee” means an employee, officer, director or other service provider of P-Tech or another wholly-owned Subsidiary
of PHMD who is primarily or exclusively engaged in providing services to the Business.

 

“Business
Intellectual Property” means all Intellectual Property of the Sellers, PHMD Korea and PHMD UK to the extent such Intellectual
Property is primarily used in, or otherwise necessary for, the operation of the Business, including the Intellectual Property listed
on Section 1.1(a) of the Disclosure Letter. 

 

“Business
Liabilities” means the liabilities listed on Appendix II.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Consumer
Business Vendor Contracts” means all vendor and supplier Contracts that are primarily used in any business of the Seller
or its Affiliates, but that are not primarily used in the Business, including the Contracts with vendors and suppliers listed on
Section 3.15(a)(ii) of the Disclosure Letter that are marked with an asterisk, which are not being assigned to Purchaser.

 

“Contract”
means any agreement or contract or other binding obligation, commitment or undertaking whether written or verbal.

 

“Credit Agreement”
means that certain Credit Agreement, dated May 12, 2014, as amended, by and between PHMD, JPMorgan Chase Bank, NA as Administrative
Agent, First Niagara Bank, N.A. and PNC Bank, National Association as Co-Syndication Agents, and J.P. Morgan Securities LLC, as
Lead Arranger and Bookrunner, as amended.

 

“Disclosure
Letter” means the Disclosure Letter delivered by the Sellers to Purchaser concurrently with the execution and delivery
of this Agreement.

 

“Employee
Benefit Plan” means each “employee benefit plan” as such term is defined in Section 3(3) of ERISA and each
other material employee benefit plan, program or arrangement relating to deferred compensation, bonus, severance, retention, employment,
change of control, fringe benefit, profit sharing, unemployment compensation or other employee benefits, excluding any Multiemployer
Plan, (i) established, maintained, sponsored or contributed to (or with respect to which an obligation to contribute has or
had been undertaken) by a Seller on behalf of any current or former Business Employee or their beneficiaries or (ii) with
respect to which a Seller has any current obligation or liability (continuing or otherwise) on behalf of a Business Employee.

 

    	2

    	 

    

 

“Environmental
Laws” means all federal and state statutes or regulations concerning the pollution, protection or cleanup of the environment,
including those relating to the treatment, storage, Disposal, handling, transportation, discharge, emission or release of Hazardous
Substances, including the Clean Air Act, the Clean Water Act, the Solid Waste Disposal Act, the Resource Conservation and Recovery
Act, and the Comprehensive Environmental Response, Compensation, and Liability Act.

 

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

 

“ERISA Affiliate”
of any entity means each entity that is treated as a single employer with such entity for purposes of Section 4001(b)(1) of
ERISA or Section 414(b), (c), (m) or (o) of the Code.

 

“Escrow Agent”
means U.S. Bank National Association.

 

“Escrow Agreement”
means that certain Escrow Agreement, dated as of the Closing Date, by and among Purchaser, PHMD and the Escrow Agent, in the form
previously agreed by the Parties.

 

“Escrow Amount”
means seven hundred fifty thousand dollars ($750,000).

 

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

 

“Excluded
Liabilities” means all of the liabilities and obligations of the Sellers or their Affiliates other than the Business
Liabilities.

 

“Foreign Subsidiary Cash Amount”
means $28,500.00, representing the cash and cash equivalents of the Foreign Subsidiary as of the Closing Date.

 

“Fundamental
Representations” means, collectively, the representations and warranties set forth in Section 3.1 (Organization;
Power; Authorization), Section 3.2(a) (Binding Effect; Noncontravention), Section 3.3(b) (Capitalization), Section
3.7(a) (Title to Assets), Section 3.10 (Tax Matters), Section 3.11 (Environmental Matters), Section 3.14
(Employee Benefits), Section 3.19 (Brokerage), Section 4.1, (Organization; Power; Authorization), Section 4.2(a)
(Binding Effect; Noncontravention), and Section 4.4 (Brokerage).

 

“GAAP”
means United States generally accepted accounting principles as in effect from time to time.

 

“Governmental
Entity” means any transnational, domestic or foreign federal, state, local or other governmental, regulatory or administrative
authority, department, court, agency or official, including any political subdivision thereof.

 

“Hazardous
Substance” means any waste, pollutant, contaminant, hazardous, radioactive, or toxic substance, petroleum, petroleum-based
or petroleum-derived substance or waste or asbestos-containing material, the presence of which requires investigation or remediation
under any Environmental Laws.

 

    	3

    	 

    

 

“Intellectual
Property” means (a) United States and foreign patents, patent applications, continuations, continuations-in-part,
divisions, reissues, patent disclosures, inventions (whether or not patentable) and improvements thereto, (b) United States
and foreign trademarks, service marks, logos, trade dress and trade names or other source-identifying designations or devices,
(c) United States and foreign copyrights and design rights, whether registered or unregistered, and pending applications to
register the same, (d) Internet domain names and registrations thereof, (e) confidential ideas, trade secrets, computer
software, including source code, derivative works, moral rights, know-how, works-in-progress, concepts, methods, processes, inventions,
invention disclosures, formulae, reports, data, customer lists, mailing lists, business plans or other proprietary information,
and (f) any and all other intellectual property rights throughout the world.

 

“IRS”
means the United States Internal Revenue Service.

 

“Lease”
means all leases, subleases and other Contracts under which any Seller Company leases, uses or occupies, or has the right to use
or occupy, any real property that is primarily used in, or otherwise necessary for, the operation of the Business.

 

“Leased Real
Estate” means all real property that any Seller Company leases, subleases or otherwise uses or occupies, or has the right
to use or occupy, pursuant to a Lease.

 

“Legal Requirement”
means any requirement arising under any action, law, treaty, rule or regulation, determination or direction of a Governmental Entity.

 

“Liens”
means any mortgage, pledge, lien, security interest, charge, hypothecation, option, right of first refusal, easement, right of
way, restriction on transfer or use, title defect, encroachment or other encumbrance or other adverse claim of any kind.

 

“Losses”
means, with respect to any Person, any and all liabilities, costs, damages, deficiencies, penalties, fines or other losses or expenses
incurred by such Person (including reasonable out-of-pocket expenses of investigation and reasonable out-of-pocket attorneys’
or consultants’ fees and expenses as a result or arising out of any action, suit or proceeding whether involving a Third
Party Claim or a claim solely between the Parties to enforce the provisions hereof), but not including any consequential damages,
special damages, incidental damages, indirect damages, punitive damages, diminution in value or lost profits, except to the extent
payable by an Indemnified Person to a Person in a Third-Party Claim.

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations or condition (financial
or otherwise) of the Business, but excluding any effect resulting from (a) general economic conditions or general effects
on the industry in which the Business is primarily engaged (including as a result of an outbreak or escalation of hostilities involving
the United States or the declaration by the United States of a national emergency or war, or the occurrence of any other calamity
or crisis (including any act of terrorism) or any change in financial, political or economic conditions in the United States or
elsewhere) not having a materially disproportionate effect on P-Tech or the Business relative to other participants in the industry
in which the Business is primarily engaged, or (b) any change or amendment to any Legal Requirement or any change in the manner
in which any Legal Requirement is enforced generally affecting the industry in which the Business is primarily engaged and not
specifically relating to or having a materially disproportionate effect on P-Tech or the Business relative to other participants
in the industry in which the Business is primarily engaged, (c) any public announcement of the transactions contemplated by
this Agreement in accordance with the terms of this Agreement, or (d) any action taken by Purchaser or its Representatives
in accordance with the terms of this Agreement, or (ii) the ability of the Sellers to perform their material obligations hereunder
or to consummate the transactions contemplated hereby.

 

    	4

    	 

    

 

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

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

 

“Ordinary
Course of Business” means the ordinary course of the operation of the Business consistent with past practices of the
Seller Companies.

 

“Permits”
means all permits, licenses, franchises, approvals, authorizations, and consents required to be obtained from Governmental Entities
necessary to conduct and operate the Business as currently conducted or operated.

 

“Permitted
Liens” means (i) liens for Taxes, which either (a) are not delinquent or (b) are set forth on Section
1.1(b) of the Disclosure Letter and are being contested in good faith and by appropriate proceedings and for which an appropriate
reserve has been established on the Reference Balance Sheet in accordance with GAAP, (ii) mechanics’, materialmen’s
or contractors’ liens or encumbrances for construction in progress and workmen’s, repairmen’s, warehousemen’s
and carriers’ liens arising in the Ordinary Course of Business and which do not materially impair the occupancy or use, value
or marketability of the property which they encumber, (iii) zoning, entitlement, building and other land use regulations imposed
by Governmental Entities having jurisdiction over the real property which do not materially impair the occupancy or use, value
or marketability of the property which they encumber, (iv) covenants, conditions, restrictions, easements and other matters
affecting the assets or property of the Business which do not materially impair the occupancy or use, value or marketability of
the property which they encumber, and (v) any matters set forth on Section 1.1(b) of the Disclosure Letter.

 

“Person”
means an individual, a partnership, a corporation, an association, a limited liability company, a joint stock company, a trust,
a joint venture, an unincorporated organization or a Governmental Entity.

 

“PHMD Korea”
means PhotoMedex Korea Limited, a company organized under the laws of South Korea.

 

“PHMD UK”
means Photo Therapeutics Limited, a company organized under the laws of England and Wales.

 

    	5

    	 

    

 

“Post-Closing
Tax Period” means (a) any Taxable Period beginning after the Closing Date and (b) the portion of any Straddle Period
beginning after the Closing Date and ending at the end of such Straddle Period.

 

“Pre-Closing
Tax Period” means (a) any Taxable Period ending on or before the Closing Date and (b) the portion of any Straddle
Period beginning on the first day of such Straddle Period and ending at the close of the Closing Date.

 

“Proceeding”
means any action, audit, arbitration, audit, examination, hearing, litigation, or suit (whether civil, criminal or administrative)
commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Entity or arbitrator.

 

“Reference
Balance Sheet” means the unaudited balance sheet of the Business as of March 31, 2015.

 

“Representatives”
means, with respect to any Person, each of the Affiliates, directors, officers, employees, agents and other representatives (including
attorneys, accountants and financial advisors) of such Person.

 

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

 

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

 

“Seller Companies”
means, collectively, PHMD, P-Tech and the Foreign Subsidiary.

 

“Sellers’
Knowledge” means the actual knowledge of Dennis McGrath, Dolev Rafaeli, Christina L. Allgeier and Michele Pupach, after
conducting a reasonable inquiry and investigation (consistent with such Person’s title and/or responsibility) concerning
the existence of a particular fact or matter.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity
of which (i) if a corporation or a limited liability company (with voting securities), a majority of the total voting power
of shares of stock or interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company (without voting securities),
partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is
at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or shall be or control any managing director or general
partner of such limited liability company, partnership, association or other business entity.

 

“Target Working
Capital” means $0.

 

    	6

    	 

    

 

“Taxable Period”
means any period prescribed by any Governmental Entity for which a Tax Return is required to be filed or a Tax is required
to be paid.

 

“Taxing Authority”
means any U.S. or non-U.S. federal, national, state, provincial, county, or municipal or other local government, any subdivision,
agency, commission, or authority thereof (or any quasi-governmental body) exercising any taxing authority, or any other authority
exercising tax regulatory authority in its capacity as doing such.

 

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

 

“Tax Sharing
Agreement” means any Tax allocation or sharing agreement or similar Contract (other than this Agreement) that obligates
the Taxpayer to make any payment computed by reference to the Taxes, taxable income or taxable Losses of any other Person, other
than the indemnification and gross-up provisions of the Taxpayer’s credit facilities, if any, and similar provisions of any
other agreement entered into in the Ordinary Course of Business, the principal purpose of which is not related to Taxes.

 

“Taxes”
means (i) any and all taxes, installments, assessments, charges, duties, fees, levies or other governmental charges, including
income, franchise, margin, capital stock, real property, personal property, tangible, withholding, employment, payroll, social
security, land transfer, employer, health, goods and services, harmonized sales, social contribution, employment insurance premium,
unemployment compensation, disability, transfer, sales, use, service, escheat, unclaimed property, license, excise, gross receipts,
value-added (ad valorem), add-on or alternative minimum, environmental, severance, stamp, occupation, premium, unclaimed property,
escheat and all other taxes of any kind for which a Person may have any liability imposed by any Taxing Authority, whether disputed
or not, and any charges, fines, interest or penalties imposed by any Taxing Authority or any additional amounts attributable or
imposed with respect to such amounts, (ii) any liability for the payment of any amounts of the type described in clause (i)
as a result of being a member of an affiliated, combined, consolidated or unitary group for any Taxable Period; (iii) any
liability for the payment of amounts of the type described in clause (i) or clause (ii) as a result of being a transferee of, or
a successor in interest to, any Person or as a result of an express or implied obligation to indemnify any Person.

 

“Third Party
Claim” means any claim or Proceeding by any Person, other than the Sellers, Purchaser or any of their respective Affiliates.

 

“Transaction
Documents” means this Agreement, the Escrow Agreement, the Transition Services Agreement and the Transfer Documentation.

 

“Transfer
Documentation” means the Bill of Sale, Assignment and Assumption Agreement, Patent Assignment, Domain Name Assignment,
Trademark Assignment and such other transfer documents as the Parties shall agree, all in form and substance previously agreed
by the Parties.

 

“Transferred
Assets” means, collectively, the Securities and the Business Assets.

 

    	7

    	 

    

 

“Transition
Services Agreement” means that certain Transition Services Agreement, dated as of the Closing Date, among the Sellers
and Purchaser, in the form and substance previously agreed by the Parties.

 

“Working Capital”
means, as of the Closing Date, the sum of the current assets of the Business of the types listed on Appendix IV less the
sum of the current liabilities of the Business of the types listed on Appendix IV; provided, that, for the avoidance
of doubt, Working Capital shall not include any cash of the Business, all of which (other than the Foreign Subsidiary Cash Amount)
will be transferred to PHMD prior to Closing. Working Capital will be calculated in accordance with GAAP, all as set forth in more
detail on Appendix IV.

 

Section 1.2           Additional
Defined Terms.

 

Each of the following
terms is defined in the Section set forth opposite such term:

 

	Accounts Receivable	3.7(d)
	Agreement	Preamble
	Allocation Schedule	9.7
	Applicable Provisions	5.6(h)
	Business Assets	Preamble
	Business Contracts	3.15(a)
	Collar	2.5(e)
	Closing	2.3
	Closing Date	2.3
	Closing Date Balance Sheet	2.5(a)
	Closing Date Statement	2.5(a)
	Continuing Employees	5.5(a)
	Designated Accounting Firm	2.5(e)
	Excluded Assets	2.1
	FDA	2.10
	FFDCA	3.20
	Financial Statements	3.4(b)
	Foreign Subsidiary	Recitals
	Health Care Laws	3.20
	Increased Escrow Amount	8.4
	Indemnified Person	8.2(a)
	Indemnifying Person	8.2(b)
	Inventory	3.7(c)
	Non-Assignable Asset	2.7
	Notice of Claim	8.2(a)
	Offered Employees	5.5(a)
	P-Tech	Preamble
	Party	Preamble
	Proskauer	10.14
	Purchase Price	2.3
	Purchaser	Preamble
	Purchaser Indemnified Persons	8.1(a)

 

    	8

    	 

    

 

	Purchaser Plan	5.5(a)
	SEC Documents	3.4(a)
	Securities	Recitals
	Sellers	Preamble
	Seller Indemnified Persons	8.1(b)
	Sellers Objections	2.5(e)
	Straddle Period	9.3
	Strategic Transaction	8.4
	Third Party Notice	8.2(b)
	Transfer Date	5.5(c)
	Transfer Taxes	5.2(b)

 

Section 1.3           Interpretation.
Unless otherwise indicated to the contrary herein by the context or use thereof (i) the words, “herein,” “hereto,”
“hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph
hereof, (ii) the word “including” means “including, but not limited to,” (iii) words importing
the singular will also include the plural, and vice versa, and (iv) any reference to any federal, state, local, or foreign
statute or law (including within the definition of Legal Requirement) will be deemed also to refer to all rules and regulations
promulgated thereunder. References to $ will be references to United States Dollars, and with respect to any Contract, obligation,
liability, claim or document that is contemplated by this Agreement but denominated in currency other than United States Dollars,
the amounts described in such Contract, obligation, liability, claim or document will be deemed to be converted into United States
Dollars for purposes of this Agreement as of the applicable date of determination.

 

ARTICLE
II

PURCHASE AND SALE; CLOSING

 

Section 2.1           Purchase
and Sale. At the Closing (or, with respect to the Securities, as provided in Section 2.8) upon the terms and subject
to the conditions set forth herein, (i) Purchaser shall purchase from PHMD or its applicable Subsidiaries, and PHMD shall,
and shall cause its applicable Subsidiaries to, sell, convey, assign, transfer, and deliver to Purchaser, the Securities, (ii) Purchaser
shall purchase from the Sellers, and one or more of their wholly-owned Subsidiaries, and the Sellers shall, or shall cause one
or more of their wholly-owned Subsidiaries to, as applicable, sell, convey, assign, transfer and deliver to Purchaser, the Business
Assets, and (iii) the Sellers shall, or shall cause one or more of their wholly-owned Subsidiaries, as applicable, to assign,
and Purchaser shall assume and become responsible for paying, performing and discharging, the Business Liabilities. For the avoidance
of doubt, the Business Assets shall not, and shall not be deemed to, include any of the assets or properties set forth on Appendix
III (the “Excluded Assets”).

 

Section 2.2           Purchase
Price. At the Closing, Purchaser shall (a) pay to PHMD for the Transferred Assets an aggregate cash purchase price equal to
the sum of $42,500,000, plus the Foreign Subsidiary Cash Amount (the “Purchase Price”) and (b) assume the
Business Liabilities. The Purchase Price shall be payable at the Closing as described in Section 2.4.

 

    	9

    	 

    

 

Section 2.3          The
Closing. The closing of the transactions contemplated hereby (collectively, the “Closing”) shall take place
at the offices of Proskauer Rose LLP, Eleven Times Square, New York, New York 10036 (or at such other location as the Parties may
agree), on the date hereof. The date of the Closing is referred to as the “Closing Date.”

 

Section 2.4          Payment
of Purchase Price; Closing Deliverables. At the Closing (or, with respect to the Securities, as provided in Section 2.8),
as applicable:

 

(a)          Purchaser
shall deliver or cause to be delivered to PHMD or its designees:

 

(i)          an
amount equal to the Purchase Price less the Escrow Amount by wire transfer of immediately available funds in the amount(s) and
to the account(s) specified by the Sellers;

 

(ii)         the
Escrow Agreement duly executed by Purchaser;

 

(iii)        the
Transition Services Agreement duly executed by Purchaser;

 

(iv)        the
Transfer Documentation duly executed by Purchaser;

 

(v)         a
certificate, dated as of the Closing Date and executed on behalf of Purchaser by its secretary, certifying the resolutions of the
board of directors of Purchaser approving this Agreement and the transactions contemplated hereby; and

 

(vi)        transfer
documentation in respect of the Securities in the forms provided by Shardul Amarchand Mangaldas & Co.

 

(b)          Purchaser
shall deliver to the Escrow Agent, by wire transfer of immediately available funds to an account specified by the Escrow Agent,
the Escrow Amount.

 

(c)          PHMD
shall deliver or cause to be delivered to Purchaser or its designees:

 

(i)          transfer
documentation in respect of the Securities in the forms provided by Shardul Amarchand Mangaldas & Co.;

 

(ii)         the
Escrow Agreement duly executed by PHMD;

 

(iii)        the
Transition Services Agreement duly executed by the Sellers;

 

(iv)        the
Transfer Documentation duly executed by the applicable Seller;

 

(v)         certificates,
dated as of the Closing Date, and executed by the secretary of each Seller and PHMD UK, certifying the resolutions of the board
of directors of such Seller or PHMD UK, as applicable, approving this Agreement and the transactions contemplated hereby;

 

(vi)        a
certificate from the Governmental Entity in the state or other jurisdiction in which each Seller is organized certifying that such
entity is in good standing;

 

    	10

    	 

    

 

(vii)       subject
to Section 2.8, resignations from the officers and directors of the Foreign Subsidiary effective as of the Closing Date;

 

(viii)      a
certificate stating that neither Seller is a foreign person within the meaning of Section 1445(f)(3) of the Code, prepared in accordance
with Treasury Regulation Section 1.1445-2(b)(2);

 

(ix)         a
mutual release among the Sellers and their Subsidiaries (other than the Foreign Subsidiary), on the one hand, and the Foreign Subsidiary,
on the other hand, in the form previously agreed by the Parties; and

 

(x)          evidence
reasonably satisfactory to Purchaser of the termination and release of all Liens (other than any Permitted Liens) on all Transferred
Assets.

 

Section 2.5           Working
Capital Adjustment.

 

(a)          Not
later than forty-five (45) days after the Closing Date, Purchaser shall cause to be delivered to PHMD a statement setting forth
Purchaser’s calculation of Working Capital, as of 11:59 p.m. on the Closing Date (the “Closing Date Statement”)
together with the balance sheet of the Business prepared as of the Closing Date from which such Closing Date Statement was derived
(the “Closing Date Balance Sheet”). The Closing Date Balance Sheet for purposes of the calculation of Working
Capital set forth in the Closing Date Statement shall be determined in a manner consistent with the principles used in the preparation
of the Reference Balance Sheet. The review of the calculation of Working Capital set forth in the Closing Date Balance Sheet in
accordance with this Section 2.5 shall be limited to a review of the changes, if any, in Working Capital as of 11:59 p.m.
on the Closing Date as compared to the Target Working Capital and not a review of any changes in accounting policy or any other
matter but in all events in accordance with GAAP.

 

(b)          Purchaser
shall permit PHMD and its Representatives reasonable access during normal business hours to the books and records, accountant’s
work papers, personnel, and facilities of the Purchaser pertaining to the operation of the Business in order to complete its review
of the Closing Date Statement, the calculation of the Working Capital, as of 11:59 p.m. on the Closing Date and the Closing Date
Balance Sheet and for the purpose of resolving any disputes with respect thereto.

 

(c)          Within
thirty (30) days after receipt of the Closing Date Statement, PHMD may either inform Purchaser in writing that the Closing Date
Statement is acceptable or object thereto in writing, setting forth its objections (the “Seller Objections”).
The Seller Objections shall set forth PHMD’s calculation of the applicable amounts and shall specify those items or amounts
as to which PHMD disagrees, and PHMD shall be deemed to have agreed with all other items and amounts contained in the Closing Date
Statement. If PHMD delivers the Seller Objections and PHMD and Purchaser do not resolve all such Seller Objections on a mutually
agreeable basis within fifteen (15) Business Days after Purchaser’s receipt of the Seller Objections, any Sellers Objection
as to which Purchaser and PHMD cannot agree upon may be submitted by either Purchaser or PHMD to a mutually acceptable accounting
firm (the “Designated Accounting Firm”) for resolution as provided herein. If PHMD and Purchaser cannot agree
on a Designated Accounting Firm within five (5) Business Days after the expiration of the fifteen (15) Business Day period set
forth above, then Deloitte LLP shall be the Designated Accounting Firm. The Designated Accounting Firm shall have the power, authority
and duty to resolve any outstanding Seller Objections and the decision of the Designated Accounting Firm shall be final and binding
upon the Parties. Upon the agreement of PHMD and Purchaser or the decision of the Designated Accounting Firm, the Closing Date
Statement, as adjusted in accordance with this Section 2.5, if necessary, shall be final and conclusive with respect to
the calculation of Working Capital, as of 11:59 p.m. on the Closing Date. If PHMD fails to deliver any Seller Objections to Purchaser
within the first thirty (30) day period referred to above or if PHMD informs Purchaser in writing that the Closing Date Statement
is acceptable, the Closing Date Statement delivered by Purchaser shall be final and binding on the Parties.

 

    	11

    	 

    

 

(d)          In
resolving any disputed item, the Designated Accounting Firm (i) shall be bound by the provisions of this Section 2.5,
(ii) may not assign a value to any item greater than the highest value claimed for such item or less than the lowest value
for such item claimed by either Purchaser or PHMD, (iii) shall restrict its decision to such items included in the Seller
Objections which are then in dispute, (iv) may review only the written presentations of Purchaser and PHMD in resolving any
matter which is in dispute, and (v) shall render its decision in writing within thirty (30) days after the disputed items
have been submitted to it. Upon the resolution of all Seller Objections, the Closing Date Balance Sheet shall be revised to reflect
the resolution. If PHMD makes any Seller Objections, the fees, costs and expenses of the Designated Accounting Firm shall be paid
(x) by PHMD, if the Seller Objections are resolved in favor of Purchaser, or (y) by Purchaser, if the Seller Objections
are resolved in favor of PHMD. If the Seller Objections are resolved part in favor of PHMD and part in favor of Purchaser, such
fees, costs and expenses shall be shared by Purchaser and PHMD in proportion to the aggregate amount of the Seller Objections resolved
in favor of PHMD compared to the aggregate amount of the Seller Objections resolved in favor of Purchaser.

 

(e)          If
the Working Capital as of 11:59 p.m. on the Closing Date as finally determined in accordance with this Section 2.5 exceeds
the Target Working Capital, Purchaser shall, within five (5) Business Days after such final determination, pay an amount equal
to such excess to PHMD in cash by wire transfer of immediately available funds to an account specified by PHMD; provided,
however, that in no event shall Purchaser be required to make any such payment to PHMD unless and until the amount of such
excess exceeds $450,000 (the “Collar”), whereupon Purchaser shall be required to pay only the amount of such
excess exceeding the Collar, up to a maximum payment amount of $500,000. If the Working Capital as of 11:59 p.m. on the Closing
Date as finally determined in accordance with this Section 2.5 is less than the Target Working Capital, PHMD shall, within
five (5) Business Days after such final determination, pay an amount equal to the absolute value of such shortfall to Purchaser
in cash by wire transfer of immediately available funds to an account specified by Purchaser; provided, however,
that in no event shall PHMD be required to make any such payment to Purchaser unless and until the absolute value of the amount
of such shortfall exceeds the Collar, whereupon PHMD shall be required to pay only the amount of the absolute value of such shortfall
exceeding the Collar, up to a maximum payment amount of $500,000. If the Working Capital as of 11:59 p.m. on the Closing Date as
finally determined in accordance with this Section 2.5 (i) is equal to the Target Working Capital, or (ii) exceeds or is
less than the Target Working Capital by an amount that is less than or equal to the Collar, then neither Purchaser nor PHMD shall
owe any amount to the other Party pursuant to this Section 2.5. The Parties shall treat any payments in accordance with
this Section 2.5(e) as an adjustment to the Purchase Price.

 

    	12

    	 

    

 

(f)          Purchaser
agrees that, following the Closing through the date that payment, if any, is made pursuant to Section 2.5(e), Purchaser
will not knowingly take any actions that would make it impossible to calculate Working Capital as of the Closing Date in the manner
and utilizing the methods required by this Agreement.

 

Section 2.6           Withholding
Tax. Purchaser shall be entitled to deduct and withhold from the Purchase Price all Taxes that Purchaser may be required to
deduct and withhold under any provision of the Code or any provision of applicable Legal Requirements. To the extent that amounts
are so withheld, all such amounts withheld by Purchaser shall be treated for all purposes of this Agreement as having been paid
to the Sellers by Purchaser. To the extent that Purchaser becomes aware of any withholding Taxes applicable to the payment of the
Purchase Price (other than due to a failure to provide the certificates specified in Section 2.4(c)(viii)), Purchaser shall
provide prompt written notice to the Sellers of the amount of such Tax and the reason for such withholding. The Parties will undertake
commercially reasonable efforts to minimize withholding Taxes on the payments contemplated by this Agreement.

 

Section 2.7           Non-Assignable
Asset. To the extent that any Business Asset is not assignable without the consent of another party, this Agreement shall not
constitute an assignment or an attempted assignment thereof if such assignment or attempted assignment would constitute a breach
thereof or a default thereunder. The Sellers, on the one hand, and Purchaser, on the other hand, shall use commercially reasonable
efforts to obtain the consent of such other party to the assignment of any such Business Asset to Purchaser in all cases in which
such consent is or may be required for such assignment. If any such consent shall not be obtained with respect to any such Business
Asset (each, a “Non-Assignable Asset”), to the extent permitted by Legal Requirement, (i) the Sellers shall
cooperate with Purchaser in any mutually agreeable reasonable arrangement designed to provide to Purchaser substantially equivalent
benefits to those that would have been assigned to Purchaser with respect to the relevant Non-Assignable Asset had such consent
been obtained, including enforcement thereof and of all rights of the Sellers against any other Person with respect to such Non-Assignable
Asset, (ii) the Sellers shall take all such actions and do, or cause to be done, all such things as shall reasonably be necessary
and proper in order that the value of any Non-Assignable Assets shall be preserved and shall inure to the benefit of Purchaser,
(iii) the Sellers shall pay over to Purchaser promptly following receipt, all monies collected by or paid to the Sellers in
respect of such Non-Assignable Assets, and (iv) the Purchaser shall have the sole responsibility for all obligations and liabilities
arising out of such Non-Assignable Assets to the extent that the same would have constituted Assumed Liabilities had such consent
been obtained.

 

    	13

    	 

    

 

Section 2.8           Foreign
Subsidiary. To the extent that any action necessary to evidence or otherwise give effect to the transfer of the Securities
to Purchaser shall not yet have been taken as of the Closing Date, the Parties shall cooperate with respect to taking such action
as promptly as reasonably practicable following the Closing Date and, notwithstanding anything herein to the contrary, the failure
of the transfer of the Securities to Purchaser to have been evidenced or otherwise effectuated as of the Closing Date shall not
in and of itself constitute or be deemed to constitute a breach of this Agreement. In the interim, to the extent permitted by Legal
Requirement, (i) the Sellers shall cooperate with Purchaser in any mutually agreeable reasonable arrangement designed to provide
to Purchaser substantially equivalent benefits to those that would have inured to Purchaser with respect to the Securities had
all such actions been taken as of the Closing Date, and (ii) at Purchaser’s request and reasonable expense, the Sellers
shall take all such actions and do, or cause to be done, all such things as shall reasonably be necessary and proper in order that
the existence of the Foreign Subsidiary shall be preserved. Such actions shall include, without limitation, the current directors
and officers of the Foreign Subsidiary remaining in such positions until their respective successors are duly elected and qualified
(but in any event, no later than December 31, 2015); provided, however, that (A) Purchaser shall use its commercially
reasonable efforts to elect and qualify successor directors and officers as expeditiously as reasonably practicable; and (B) Purchaser
shall indemnify and hold harmless the current directors and officers of the Foreign Subsidiary for any claim, liability or Loss
to the extent arising out of or relating to the period commencing from and after the Closing and ending on the date of their respective
resignations to the same extent that such indemnification would be provided to such directors and officers under (x) the Articles
of Association of the Foreign Subsidiary as in effect immediately prior to the Closing, and (y) the Form of Indemnification Agreement
annexed to Form 10-K filed by PHMD with the SEC for the fiscal year ending on December 31, 2014. In no event shall the Securities
be transferred, or any rights thereto be granted, other than if requested or consented to by Purchaser. Notwithstanding anything
to the contrary in the transfer documentation in respect of the Securities, to the maximum extent permitted by applicable Legal
Requirements, the Parties shall, as between themselves, treat the Closing Date as the date that the Securities were transferred
from PHMD, and Radiancy, Inc., to Purchaser.

 

Section 2.9           Consumer
Business Vendor Contracts. To the extent any Consumer Business Vendor Contracts are used in, or otherwise necessary for, the
operation of the Business, the Sellers shall, at Purchaser’s sole cost and expense, cooperate with Purchaser in any mutually
agreeable reasonable arrangement designed to provide to Purchaser substantially equivalent benefits to those that would have been
assigned to Purchaser with respect to the relevant Consumer Business Vendor Contract(s) had such Contract(s) been assigned to Purchaser
at Closing, from the Closing Date until no later than December 31, 2015; provided, however, that Purchaser shall
use its commercially reasonable efforts to negotiate its own Contract(s) with the counter party(s) to such Consumer Business Vendor
Contract(s) or other substitute arrangements as expeditiously as reasonably practicable. The consummation of the transactions contemplated
hereby, in and of itself, shall not be deemed to limit or prevent either Party from entering into, maintaining, pursuing or negotiating
its own business relationship with any counter party to a Consumer Business Vendor Contract, subject to the Parties’ compliance
with the other provisions of this Agreement, including without limitation Section 5.6.

 

Section 2.10         FDA
Audit. PHMD has represented to the U.S. Food and Drug Administration (the “FDA”) that the observations contained
in the Form 483 report dated June 16, 2015 will be remediated and finalized within the timeframes proposed by PHMD to the FDA.
To the extent that such remediation actions are under the control of PHMD, PHMD shall be responsible for taking such remediation
actions. To the extent that such remediation actions are under the control of Purchaser, Purchaser will use commercially reasonable
efforts to take such actions; provided, that in no event shall Purchaser incur any out-of-pocket costs and expenses as a result
thereof unless they are reimbursed by PHMD. If (a) such observations are not remediated within such timeframes to the satisfaction
of the FDA, (b) the remediation of such observations is otherwise unsatisfactory to the FDA (in either (a) or (b), other than
as a result of Purchaser failing to use commercially reasonable efforts to take such remediation actions that are under its control
but subject to the limit on out-of-pocket costs and expenses stated above) or (c) the steps necessary to remediate are other
than as represented by PHMD to Purchaser, PHMD shall be responsible for any and all out-of-pocket costs and expenses resulting
from such failure and/or unanticipated circumstances.

 

    	14

    	 

    

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF PHMD

 

As a material inducement
to Purchaser to enter into this Agreement and to purchase the Transferred Assets, PHMD hereby represents and warrants to Purchaser
as follows:

 

Section 3.1           Organization;
Power; Authorization. Each Seller is a corporation duly organized, validly existing and in good standing under the laws of
its state of organization. Each Seller has all necessary corporate power and authority to enter into, deliver and carry out its
obligations pursuant to this Agreement and the Transaction Documents to which it is or will be a party. Each Seller’s execution,
delivery and performance of this Agreement and the Transaction Documents to which such Seller is or will be a party has been duly
authorized by all necessary action on the part of such Seller. The Foreign Subsidiary is a company duly organized and validly existing
under the laws of India. The Foreign Subsidiary does not own, or have any interest in any equity or an ownership interest in, any
other Person. Each Seller Company, as the case may be, has all necessary power and authority to operate the applicable portion
of the Business as currently conducted by it and to own and use the properties owned and used by it. The Seller Companies are duly
authorized to conduct business and are in good standing under the laws of each jurisdiction where such qualification is required,
except where the failure to be so qualified would not have a Material Adverse Effect.

 

Section 3.2           Binding
Effect; Noncontravention.

 

(a)          This
Agreement has been, and each other Transaction Document to which a Seller is a party will be, duly executed and delivered by such
Seller and (assuming due authorization, execution and delivery by Purchaser) constitutes (or in the case of the other Transaction
Documents, will constitute) a valid and binding obligation of such Seller which is enforceable against such Seller in accordance
with its terms, except as such enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium
or other similar laws affecting creditors’ rights generally, and (ii) general equitable principles (whether considered
in a Proceeding at law or in equity).

 

(b)          Except
as set forth on Section 3.2(b) of the Disclosure Letter, neither the execution and the delivery of this Agreement or the
other Transaction Documents by the Sellers nor the consummation of the transactions contemplated hereby, will (i) conflict
with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under (or an event which with
notice or lapse of time or both would become a default), give to others any rights of termination, amendment, acceleration or cancellation
of or result in a violation of, (iii) result in the creation of any Lien (other than Permitted Liens) upon any Transferred
Asset pursuant to, or (iv) require any authorization, consent, approval, exemption or other action by or declaration or notice
to any Person or Governmental Entity pursuant to (A) any Business Contract or any material Contract to which any Seller Company
is a party, by which it is bound, or to which any of its assets are subject, (B) the certificate of incorporation, bylaws
or similar governing documents of any Seller Company, or (C) under any Legal Requirement.

 

    	15

    	 

    

 

Section 3.3           Capitalization.

 

(a)          The
authorized capital stock of P-Tech consists of 5,000 shares of common stock, all of which are issued and outstanding. All of the
authorized capital stock of P-Tech has been duly authorized, is validly issued, fully paid and nonassessable and is owned of record
and beneficially by PHMD, free and clear of all Liens (other than Permitted Liens and restrictions on transfer arising under the
Securities Act and state or foreign securities laws).

 

(b)          The
authorized share capital of the Foreign Subsidiary is INR 24,000,000 (Indian Rupee Twenty Four Million only) divided into 24,000,000
(Twenty Four Million) ordinary equity shares of INR 1 (Indian Rupee One only) each. The issued, subscribed and paid-up share capital
of the Foreign Subsidiary is INR 1,795,685 (Indian Rupees One Million Seven Hundred Ninety Five Thousand Six Hundred Eighty Five
only) divided into 1,795,685 (One Million Seven Hundred Ninety Five Thousand Six Hundred Eighty Five) fully paid-up ordinary equity
shares of INR 1 (Indian Rupee One only) each, which constitute the Securities. Except as set forth on Section 3.3(b) of
the Disclosure Schedule, the Securities have been duly authorized and validly issued. PHMD is the owner of record of 1,795,684
(One Million Seven Hundred Ninety Five Thousand Six Hundred Eighty Four) fully paid-up ordinary equity shares of INR 1 (Indian
Rupee One only) each and holds beneficial interest over the entire Securities. Out of the Securities, 1 (One) fully paid-up ordinary
equity share of INR 1 (Indian Rupee One only) has been registered in the name of Radiancy Inc. as a nominee of PHMD, and PHMD holds
the beneficial interest over this equity share. All of the Securities are free and clear of all Liens (other than Permitted Liens
and restrictions on transfer arising under applicable securities laws).

 

(c)          Except
as set forth on Section 3.3(c) of the Disclosure Letter, there are no outstanding or authorized options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights, or other Contracts that could require the Foreign Subsidiary to
issue, sell, or otherwise cause to become outstanding any of its capital stock. There are no outstanding or authorized stock appreciation,
phantom stock, profit participation or similar rights with respect to the Foreign Subsidiary. No Seller Company is a party to,
and there are no, voting trusts, proxies, or other agreements or understandings with respect to the voting or transfer of any of
the Securities.

 

Section 3.4           Financial
Statements.

 

(a)          All
reports, schedules, forms, statements and other documents that were required to be filed prior to the date hereof by PHMD with
the SEC pursuant to the reporting requirements of the Exchange Act, as amended, are referred to herein as the “SEC Documents.”
All such SEC Documents are available on the EDGAR system. As of their respective dates, the disclosures and other information within
the SEC Documents that related to the Business or the Transferred Assets complied in all material respects with the requirements
of the Exchange Act or the Securities Act, as the case may be, and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact related to the Business or the Transferred Assets or omitted to state a material fact related to the
Business or the Transferred Assets required to be stated therein or necessary in order to make the statements therein with respect
to the Business and/or the Transferred Assets, in light of the circumstances under which they were made, not misleading.

 

    	16

    	 

    

 

(b)          The
following financial statements for the Business are referred to hereafter, collectively, as the “Financial Statements”:
(i) audited balance sheet and related statements of income and cash flows of the Business as of and for the calendar years
ended December 31, 2013 and December 31, 2014, and (ii) reviewed Reference Balance Sheet and the related statement of income
of the Business as of and for the calendar quarter ended March 31, 2015. Each Financial Statement (including the notes thereto,
if any) has been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby and fairly
presents in all material respects the financial condition of the Business and its results of operations as of such dates and for
the periods specified; provided, however, that the Financial Statements described in clause (ii) above lack footnotes
and other presentation items required by GAAP and are subject to normal year-end adjustments, the effect of which is not material
to the presentation thereof.

 

Section 3.5           No
Undisclosed Liabilities. Except as set forth in Section 3.5 of the Disclosure Letter, the Business has no liabilities
or obligations of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, except for
(i) liabilities reflected or reserved against in the Reference Balance Sheet, (ii) current liabilities incurred in the
Ordinary Course of Business since the date of the Reference Balance Sheet, (iii) liabilities or obligations explicitly disclosed
in the Disclosure Letter as such, (iv) future performance obligations under Business Contracts or Employee Benefit Plans that
did not result from any breach or default thereunder, and (v) obligations to comply with applicable Legal Requirements that
did not result from any breach or default thereunder.

 

Section 3.6           Absence
of Changes. Since March 31, 2015, except as set forth in Section 3.6 of the Disclosure Letter, the Business has been
operated in the Ordinary Course of Business in all material respects and there has been, with respect to the Business, no:

 

(a)          event
that has had or would reasonably be expected to have a Material Adverse Effect;

 

(b)          change
in the Foreign Subsidiary’s authorized or issued equity securities; grant of any option or right to purchase equity securities
of the Foreign Subsidiary; issuance of any security convertible into such equity securities; grant of any registration rights;
or purchase, redemption, retirement, or other acquisition by the Foreign Subsidiary of any such equity securities;

 

(c)          amendment
to the certificate of incorporation, bylaws or other organizational documents of the Foreign Subsidiary;

 

    	17

    	 

    

 

(d)          payment
or increase by any Seller Company of any bonuses, salaries, or other compensation to any director, officer, or employee of the
Business, in each case, other than as required by any existing Contract, Legal Requirement or the terms of an Employee Benefit
Plan, or entry into any employment, severance, or similar Contract with any director, officer, or employee of the Business;

 

(e)          adoption
of, or material increase in the payments to or benefits under, any profit sharing, bonus, deferred compensation, savings, insurance,
pension, retirement, or other Employee Benefit Plan for or with any employees of the Business;

 

(f)          damage
to or destruction or loss of any asset or property of the Business, whether or not covered by insurance, that materially and adversely
affects the properties, assets, business, financial condition, or prospects of the Business or the Transferred Assets, taken as
a whole;

 

(g)          entry
into, termination of, or receipt of notice of termination of (i) any license, distributorship, dealer, sales representative,
joint venture, credit, or similar agreement that is material to the Business, (ii) any Contract included in the Business Assets
or transaction involving the Business with a total remaining commitment by or to any Seller Company that is or is reasonably expected
to be in excess of $25,000, or (iii) any other Business Contract, in each case, other than in the Ordinary Course of Business;

 

(h)          sale,
lease or other disposition of any Business Assets, other than (i) in the Ordinary Course of Business, (ii) assets or
property having an aggregate value of less than $25,000, or (iii) payments of cash dividends;

 

(i)          mortgage,
pledge, or imposition of any Lien (other than Permitted Liens) on any Business Asset;

 

(j)          cancellation
or waiver of any claims or rights with respect to a Business Asset with a value in excess of $25,000;

 

(k)          material
change in the accounting methods or policies used by any Seller Company in respect of the Business; or

 

(l)          agreement,
whether oral or written, by any Seller Company to do any of the foregoing in respect of the Business.

 

Section 3.7           Title
to Assets; Condition; Inventory; Accounts Receivable.

 

(a)          Except
as set forth in Section 3.7 of the Disclosure Letter, the Seller Companies, and one or more of their wholly-owned Subsidiaries,
collectively have good and marketable title to, or a valid and binding leasehold interest in or right to use, all of the Business
Assets, free and clear of all Liens except for Permitted Liens. Except for the Excluded Assets, the Business Assets comprise all
assets that are primarily used in, or otherwise necessary for, the operation of the Business as conducted immediately prior to
the Closing. The Business Assets, together with the services to be provided by the Sellers to the Purchaser pursuant to the Transition
Services Agreement, are sufficient for the continued conduct of the Business immediately after the Closing in substantially the
same manner as conducted immediately prior to the Closing.

 

    	18

    	 

    

 

(b)          To
Sellers’ Knowledge, the buildings, plants, structures, and equipment of the Business are (i) structurally sound, (ii) in
good operating condition and repair, ordinary wear and tear excepted, and (iii) adequate for the uses to which they are being
put, in each case, in all material respects.

 

(c)          All
inventory, finished goods, raw materials, work in progress, supplies, and other inventories of the Business (“Inventory”),
consists of a quality and quantity usable and salable in the Ordinary Course of Business, except for obsolete, damaged, defective
or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established.
All Inventory is owned by the Seller Companies free and clear of all Liens, except for Permitted Liens, and no Inventory is held
on a consignment basis. The quantities of each item of Inventory (whether raw materials, work-in-process or finished goods) are
not excessive, but are reasonable in the present circumstances of the Business.

 

(d)          All
accounts and notes receivable of the Business held by any of the Seller Companies, and any security, claim, remedy or other right
related to any of the foregoing (the “Accounts Receivable”), have arisen from bona fide, arm’s length
transactions entered into by the Seller Companies involving the sale of goods or the rendering of services in the Ordinary Course
of Business and there is no pending or, to Sellers’ Knowledge, threatened dispute regarding the Accounts Receivable.

 

Section 3.8           Compliance
with Laws; Permits. Section 3.8 of the Disclosure Letter correctly lists each Permit that is material to the operation
of the Business as conducted immediately prior to the Closing, together with the name of the Governmental Entity issuing such Permit.
Each Permit is held by a Seller Company and is valid and in full force and effect, no Seller Company is in default in any material
respect under, and, to Sellers’ Knowledge, no condition exists that with notice or lapse of time or both would constitute
a default under, any such Permit and none of such Permits will be terminated, become terminable or otherwise be materially and
adversely affected solely as a result of the transactions contemplated hereby. The Seller Companies have made all material filings
with Governmental Entities necessary to conduct and operate the Business as currently conducted or operated and, with respect to
the Foreign Subsidiary, to permit the Foreign Subsidiary to own or use its assets in the manner in which such assets are currently
owned or used. The Seller Companies are in material compliance with all applicable Legal Requirements relating to the operation
of the Business.

 

Section 3.9           Proceedings;
Orders. Except as set forth on Section 3.9 of the Disclosure Letter, there is no pending or, to Sellers’ Knowledge,
threatened Proceeding (or any reasonable basis therefor) (i) that challenges the validity of this Agreement or any action
taken or to be taken by the Sellers in connection herewith or seeks to prevent, enjoin or otherwise delay the transactions contemplated
by this Agreement, or (ii) that has been commenced by or against any Seller Company or any of their respective assets, officers
or directors that would adversely affect the Business or the Transferred Assets. Except as set forth on Section 3.9 of the
Disclosure Letter, (x) there is no Order to which the Foreign Subsidiary, the Business or the Transferred Assets is subject,
and (y) neither Seller is subject to any Order that relates to the Foreign Subsidiary, the Business or the Transferred Assets.

 

    	19

    	 

    

 

Section 3.10         Tax
Matters. Except as set forth in Section 3.10 of the Disclosure Letter:

 

(a)          All
income, franchise and material Tax Returns required to be filed by or with respect to the Business, the Transferred Assets and
the Foreign Subsidiary have been timely filed (taking into account all validly-obtained extensions). All such Tax Returns are true,
correct, and complete in all material respects and all material Taxes due and owing (whether or not shown on such Tax Returns)
have been paid. Solely with respect to the Business and the Transferred Assets, the Seller Companies have complied with all material
Legal Requirements relating to the withholding of Taxes and have withheld and paid on a timely basis all material Taxes required
to have been withheld and paid in connection with amounts paid or owing to any employee, company clinician, independent contractor,
creditor, stockholder, or other third party. No Seller Company has received any notice that any Taxing Authority has threatened
that it is in the process of imposing any lien for Taxes (other than a Permitted Lien) on the Transferred Assets or assets of the
Foreign Subsidiary for the failure to pay any Taxes. No material deficiencies or assessments for any Taxes have been or are being
asserted, or to Seller’s Knowledge, proposed or threatened against the Business, Transferred Assets or the Foreign Subsidiary.

 

(b)          No
material Proceedings before any Taxing Authority are currently pending with regard to any Taxes or Tax Returns of the Sellers or
their Affiliates (other than the Foreign Subsidiary where the Foreign Subsidiary files Tax Returns, separately from the Sellers
and their Affiliates), or with respect to the Transferred Assets or the Business. No Proceedings before any Taxing Authority are
currently pending with regard to any Taxes or Tax Returns of the Foreign Subsidiary (where the Foreign Subsidiary files Tax Returns,
separately from the Sellers and their Affiliates). No Seller Company has received any written notice (or to Sellers’ Knowledge,
any threat) of any such audits or Proceedings as described in this Section 3.10(b).

 

(c)          No
written claims (or, to Sellers’ Knowledge, oral claims) has ever been made by a Taxing Authority in a jurisdiction in which
the Foreign Subsidiary does not file Tax Returns that a Seller Company or the Foreign Subsidiary is or may be subject to taxation
by that jurisdiction.

 

(d)          There
are not now any extensions of time in effect with respect to the dates on which any Tax Returns of the Foreign Subsidiary were
or are due to be filed.

 

(e)          There
are no outstanding or requested waivers of any statutes of limitations or agreements by or on behalf of the Foreign Subsidiary
for the extension of time for the assessment of any Taxes or deficiency thereof, nor are there any requests for rulings, outstanding
subpoenas or requests for information, notice of proposed reassessment of the Transferred Assets or any property owned or leased
by the Foreign Subsidiary or any other matter pending between the Foreign Subsidiary, on the one hand, and any Taxing Authority,
on the other hand.

 

    	20

    	 

    

 

(f)          The
Foreign Subsidiary has not entered into any transaction that constitutes a “listed transaction” within the meaning
of U.S. Treasury Regulation Section 1.6011-4(b)(2).

 

(g)          No
power of attorney that is currently in force has been granted with respect to any matter relating to Taxes of the Foreign Subsidiary
that would have continuing effect after the Closing Date;

 

(h)          Neither
Seller is a “foreign person” as that term is defined in Section 1445 of the Code;

 

(i)          Since
the date of its formation, the Foreign Subsidiary (i) has been classified as and properly treated as a regarded entity for U.S.
federal income tax purposes and applicable provisions of state and local law, and (ii) has not made an election to be treated as
other than a corporation for U.S. federal, state or local income tax purposes;

 

(j)          The
Foreign Subsidiary will not be required to include any material item of income in, or exclude any material item of deduction from,
taxable income for any Taxable Period (other than a Pre-Closing Taxable Period) as a result of any:

 

(i)          use
of an improper method of accounting for a Taxable Period ending on or before the Closing Date;

 

(ii)         “closing
agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of any state, local or
foreign Tax Legal Requirements) executed on or during the Pre-Closing Tax Period;

 

(iii)        installment
sale or open transaction disposition made during the Pre-Closing Tax Period; or

 

(iv)        prepaid
amount received on or prior to the Closing Date.

 

(k)          Notwithstanding
anything in this Agreement to the contrary, (i) the representations and warranties in this Section 3.10 and Section 3.14
are the sole and exclusive representations and warranties of the Sellers concerning Tax matters, and (ii) cannot be relied upon
with respect to Tax liabilities to the extent attributable to a Post-Closing Tax Period (using the methodology of Section 9.3
for the purpose of allocating Straddle Period Taxes), except to the extent that such Tax liabilities result from the breach of
any of the representations in Section 3.10(j).

 

Section 3.11         Environmental
Matters.

 

(a)          Except
for such matters as would not, individually or in the aggregate, have a Material Adverse Effect:

 

(i)          The
operation of the Business by the Seller Companies is, and has been, in compliance with all Environmental Laws, which compliance
includes the possession, maintenance of, compliance with, or application for, all Permits required under applicable Environmental
Laws for the operation of the Business as currently conducted.

 

    	21

    	 

    

 

(ii)         With
respect to the operation of the Business, the Seller Companies have not (i) produced, processed, manufactured, generated,
transported, treated, handled, used, stored, disposed of or released any Hazardous Substances, except in compliance with Environmental
Laws, at any Leased Real Estate, or (ii) exposed any employee or any third party to any Hazardous Substances.

 

(iii)        The
Seller Companies have not received written notice of and there is no Proceeding pending, or to Sellers’ Knowledge, threatened
against any of the Seller Companies, alleging any liability or responsibility under or non-compliance with any Environmental Law
or seeking to impose any financial responsibility for any investigation, cleanup, removal, containment or any other remediation
or compliance under any Environmental Law. None of the Seller Companies is subject to any Order or written agreement by or with
any Governmental Entity imposing any liability or obligation with respect to any of the foregoing.

 

(iv)        The
Seller Companies have all Permits necessary for the conduct of the Business that are required under applicable Environmental Laws
and are in compliance with the terms and conditions of all such Permits.

 

(v)         The
Seller Companies have provided or made available to Purchaser all environmental reports, assessments, audits, studies, investigations
and data in its custody or possession concerning the Business.

 

(vi)        None
of the transactions contemplated by this Agreement or the Transaction Documents will trigger any filing requirement or other action
under any applicable Environmental Law, including any environmental “transfer law.”

 

(b)          The
representations and warranties in this Section 3.11 are the sole and exclusive representations of the Seller Companies concerning
the environmental matters addressed in this Section 3.11, including, without limitation, any matters arising under Environmental
Laws.

 

Section 3.12         Intellectual
Property.

 

(a)          Except
as set forth in Section 3.12(a) of the Disclosure Letter, the Business Intellectual Property constitutes all material Intellectual
Property that is necessary for the operation of the Business as conducted immediately prior to the Closing. The Seller Companies,
or one or more of their wholly owned Subsidiaries, have good title to, or a valid and binding license to, all of the Business Intellectual
Property, free and clear of all Liens except for Permitted Liens.

 

(b)          Except
as set forth in Section 3.12(b) of the Disclosure Letter, there is no pending or, to Sellers’ Knowledge, threatened
Proceeding by any Person: (i) challenging the applicable Seller Company’s rights in or to any Business Intellectual
Property; (ii) challenging the validity, enforceability or scope of any Business Intellectual Property; or (iii) asserting
that any Business Intellectual Property infringes, misappropriates or otherwise violates, or would upon the commercialization of
any product or service under development violate, the Intellectual Property of any Person. This Section 3.12(b) constitutes
the sole representation and warranty of the Seller Companies under this Agreement with respect to any actual or alleged infringement,
misappropriation or other violation by the Seller Companies of the Intellectual Property of any other Person.

 

    	22

    	 

    

 

(c)          Except
as set forth in Section 3.12(c) of the Disclosure Letter, no third Person has rights to any Business Intellectual Property.
No Person is infringing, misappropriating or otherwise violating any Business Intellectual Property. The Seller Companies, or one
or more of their wholly owned Subsidiaries, as applicable, have taken all steps reasonably necessary to secure their interest in
Business Intellectual Property, including obtaining all necessary assignments from each of its employees, consultants and contractors
pursuant to a written agreement containing a present tense assignment of all Intellectual Property created by such employee, consultant
or contractor. The Seller Companies, or one or more of their wholly owned Subsidiaries, as applicable, have taken commercially
reasonable steps to protect and maintain all Business Intellectual Property, including without limitation to preserve the confidentiality
of any trade secrets.

 

Section 3.13         Real
Estate. The Seller Companies do not own any real property that is used in the operation of the Business. Section 3.13
of the Disclosure Letter contains a true, complete and accurate list of the Leased Real Estate, including, each relevant Lease,
the date of such Lease and any amendments thereto. Except as would not, individually or in the aggregate, be material to the Business,
(i) each Seller Company has a valid and subsisting leasehold estate in each parcel of real property demised under a Lease
to it for the full term of the respective Lease, free and clear of any Liens other than Permitted Liens and Liens under the Credit
Agreement, (ii) all Leases are valid and in full force and effect except to the extent they have previously expired or terminated
in accordance with their terms, and (iii) no Seller Company nor, to Sellers’ Knowledge, any third party, has violated
any provision of, or committed or failed to perform any act which, with or without notice, lapse of time or both, would constitute
a default under the provisions of, any Lease. Except for Liens granted under the Credit Agreement, the Seller Companies have not
assigned, pledged, mortgaged, hypothecated or otherwise transferred any Lease nor have the Seller Companies entered into with
any other Person any sublease, license or other agreement that is material to the Business and that relates to the use or occupancy
of all or any portion of the Leased Real Estate.

 

Section 3.14         Employee
Benefits.

 

(a)          Section
3.14(a) of the Disclosure Letter sets forth a true, complete and accurate list of all material Employee Benefit Plans. The
Sellers have delivered or otherwise made available to Purchaser: (i) copies of all material documents embodying and relating
to each Employee Benefit Plan, including the plan document, all amendments thereto and all related trust documents; (ii) the
most recent annual report (Form 5500), if any, required under ERISA or the Code in respect of each Employee Benefit Plan; (iii) the
most recent actuarial report (if applicable) for all Employee Benefit Plans; (iv) the most recent summary plan description,
if any, required under ERISA with respect to each Employee Benefit Plan; and (v) the most recent IRS determination or opinion
letter issued with respect to each Employee Benefit Plan intended to be qualified under Section 401(a) of the Code. Other than
as set forth in Section 411(d)(3) of the Code, there are no restrictions on the ability of the sponsor of each Employee Benefit
Plan to amend or terminate any Employee Benefit Plan, and the sponsor of each Employee Benefit Plan has reserved such rights to
amend or terminate such Employee Benefit Plan.

 

    	23

    	 

    

 

(b)          (i) Each
Employee Benefit Plan intended to qualify under Section 401(a) of the Code has received a determination or opinion letter
from the Internal Revenue Service upon which it may rely regarding its tax-qualified status under the Code and, to Sellers’
Knowledge, no event has occurred that would reasonably be expected to cause the loss of such qualification, (ii) all payments
and contributions (including insurance premiums) due and payable as of the Closing Date to each Employee Benefit Plan required
to be paid by P-Tech pursuant to the terms of an Employee Benefit Plan or by applicable Legal Requirement with respect to all prior
periods have been made or provided for by P-Tech in accordance with the provisions of such Employee Benefit Plan or applicable
Legal Requirement, (iii) no Proceeding has been instituted or, to Sellers’ Knowledge, is threatened against any of the
Employee Benefit Plans (other than routine claims for benefits and appeals of such claims), (iv) each Employee Benefit Plan
complies in form and has been established, administered and maintained in all material respects in accordance with its terms and
applicable Legal Requirements, including, without limitation, ERISA and the Code, (v) no Employee Benefit Plan is under an
audit or investigation by the Internal Revenue Service, U.S. Department of Labor, Pension Benefit Guaranty Corporation or any other
Governmental Entity, (vi) no Employee Benefit Plan provides any post-retirement health and welfare benefits to any current
or former employee of P-Tech, except as required under Section 4980B of the Code, Part 6 of Title I of ERISA or any other
applicable state or local Legal Requirement, and (vii) no non-exempt “prohibited transaction,” as such term is
defined in Section 406 of ERISA and Section 4975 of the Code, has occurred or is reasonably expected to occur with respect to any
Employee Benefit Plan, and no circumstance has occurred that would subject P-Tech to a Tax or penalty imposed by either Section
502(i) of ERISA or Section 4975 of the Code.

 

(c)          No
Employee Benefit Plan to which P-Tech or any ERISA Affiliate made, or was required to make, contributions, or which any of them
maintained or sponsored, during the past six years, is subject to Title IV of ERISA. Neither P-Tech nor any ERISA Affiliate contributes
to, or has during the past six years contributed to, a Multiemployer Plan.

 

(d)          Except
as set forth on Section 3.14(d) of the Disclosure Letter, the consummation of the transactions contemplated by this Agreement,
either alone or in combination with any other event, will not give rise to any liability under any Employee Benefit Plan, including,
without limitation, liability for severance pay, unemployment compensation, termination pay or withdrawal liability, or accelerate
the time of payment or vesting or increase the amount of compensation of benefits due to any current or former employee, officer,
director, stockholder or other service provider of P-Tech or their beneficiaries. No amount that could be reasonably expected to
be received (i) by a Business Employee (whether in cash or property), as a result of the consummation of the transactions contemplated
by this Agreement, or (ii) by any employee, officer, director, stockholder or other service provider under any Employee Benefit
Plan or otherwise would not be expected to be deductible by reason of Section 280G of the Code or would be subject to the excise
Tax under Section 4999 of the Code. P-Tech has no indemnity obligation on or after the Closing Date for any Taxes imposed under
Section 4999 or Section 409A of the Code.

 

    	24

    	 

    

 

(e)          The
representations and warranties in this Section 3.14 are the sole and exclusive representations and warranties of Seller
related to the employee benefit matters addressed by such Section 3.14.

 

Section 3.15         Contracts.

 

(a)          Section
3.15(a) of the Disclosure Letter sets forth an accurate list of the following Contracts to which any Seller Company is a party
or by which any Seller Company is bound that is primarily used in, or otherwise necessary for, the operation of the Business (collectively,
the “Business Contracts”):

 

(i)          each
Contract (other than purchase orders for Inventory) that involves performance of services or delivery of goods or materials by
any Seller Company of an amount or value in excess of $50,000; provided, that Seller shall not be required to list any XTRAC customer
Contract;

 

(ii)         each
Contract (other than purchase orders for Inventory) that involves performance of services or delivery of goods or materials to
any Seller Company of an amount or value in excess of $25,000;

 

(iii)        each
Lease, rental or occupancy agreement, license, installment and conditional sale agreement, and other Contract affecting the ownership
of, leasing of, title to, use of, or any leasehold or other interest in, any personal property (except personal property leases
and installment and conditional sales agreements having aggregate payments of less than $50,000);

 

(iv)        each
Contract in respect of Business Intellectual Property (other than licenses for shrinkwrap, clickwrap or other similar commercially
available off-the-shelf software that has not been modified or customized by a third party for the Business);

 

(v)         each
collective bargaining agreement and other Contract to or with any labor union or other employee representative of a group of employees;

 

(vi)        each
joint venture, partnership, and other Contract (however named) involving a sharing of profits, losses, costs, or liabilities by
any Seller Company with any other Person;

 

(vii)       any
agreement relating to indebtedness for borrowed money or extensions of credit;

 

(viii)      each
Contract containing covenants that restrict the business activity of any Seller Company, including, but not limited to, any exclusivity
covenants, or limit the freedom of any Seller Company to engage in any line of business or to compete with any Person;

 

(ix)         any
agreement providing for indemnification by any Seller Company, other than indemnification provided to customers or vendors in the
Ordinary Course of Business;

 

    	25

    	 

    

 

(x)          any
employment or consulting Contract with any Business Employee, or any consultant or contractor of the Business, other than at-will
arrangements that do not include severance or “change of control” provisions; and

 

(xi)         each
amendment, supplement, and modification (whether oral or written) in respect of any of the foregoing.

 

(b)          Except
as set forth in Section 3.15(b) of the Disclosure Letter, as of the date hereof, all of the Business Contracts are in full
force and effect and are enforceable in accordance with their terms except to the extent that such enforceability (i) may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors’ rights generally,
and (ii) is subject to general principles of equity.

 

(c)          Except
as set forth in Section 3.15(c) of the Disclosure Letter, as of the date hereof, no Seller Company is in breach in any material
respect of or default under (and to Sellers’ Knowledge, no event has occurred which with notice or the passage of time or
both would constitute a breach in any material respect of or default under) any Business Contract nor, to Sellers’ Knowledge,
is any other party to any such Business Contract in breach in any material respect of or default under such Business Contract.

 

Section 3.16         Labor
Matters. Since January 1, 2012, neither Seller with respect to the Business has been or is a party to any collective bargaining
agreement. There is no material strike, work stoppage, walkout, slowdown or picketing by any Business Employees, nor is any material
grievance proceeding in progress or pending, or to Sellers’ Knowledge, threatened, between any Seller Company, on the one
hand, and any Business Employee or any union or collective bargaining unit, on the other hand. Since January 1, 2012, (i) the
Sellers with respect to the Business have complied in all material respects with all Legal Requirements relating to employment,
equal employment opportunity, nondiscrimination, immigration, wages, hours, worker classification, benefits, collective bargaining,
the payment of social security and similar taxes, occupational safety and health and plant closings and (ii) there has not
been, there is not presently pending or existing, and, to Sellers’ Knowledge, there is not threatened, any complaint, charge
or Proceeding against the Sellers with respect to the Business relating to an alleged material violation of any Legal Requirement
pertaining to labor relations or employment matters.

 

Section 3.17         Insurance.
All policies of insurance existing on the date hereof relating to the Business, the Business Assets and the Business Employees
(except for any such policies maintained to provide benefits to employees under an Employee Benefit Plan) are in full force and
effect, and no Seller Company is in default in any material respect with respect to its obligations under any such insurance policies.
All premiums and other payments due from any Seller Company prior to the date of this Agreement under or on account of any such
insurance policies have been paid as of the date hereof. Except as set forth on Section 3.17 of the Disclosure Letter, there
is no material insurance claim by any Seller Company pending under any of the policies in respect of the Business.

 

    	26

    	 

    

 

Section 3.18         Affiliate
Transactions. Except as set forth in Section 3.18 of the Disclosure Letter, there are no Contracts relating to transactions
(other than related to continuing employment and benefit matters on arms’ length terms) between the Foreign Subsidiary, on
the one hand, and the Sellers or any stockholder, director or executive officer of any Seller Company or any member of such stockholder’s,
director’s or executive officer’s immediate family, or any Affiliate of such stockholder, director or executive officer
on the other hand (other than agreements related to their employment on arms’ length terms). Except as set forth in Section
3.18 of the Disclosure Letter, no director or executive officer of a Seller Company owns directly or indirectly on an individual
or joint basis any interest (other than passive investments in publicly traded securities) in, or serves as an executive officer
or director of, any supplier or other Person (other than the other Seller Companies or PHMD’s Subsidiaries) which has a material
business relationship with a Seller Company.

 

Section 3.19         Brokerage.
Except as set forth on Section 3.19 of the Disclosure Letter, no Seller Company has any liability or obligation to pay any
fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement for which Purchaser
could become liable or obligated.

 

Section 3.20         FDA
and Regulatory Matters. Except as set forth in Section 3.20 of the Disclosure Letter: (i) no Seller Company has
received, in respect of the Business, any written notice of adverse filing, warning letter, untitled letter or other written correspondence
or written notice from the FDA, or any other Governmental Entity, alleging or asserting noncompliance with the Federal Food, Drug
and Cosmetic Act (21 U.S.C. § 301 et seq.) (the “FFDCA”); (ii) each Seller Company is in compliance
in all material respects with applicable health care laws, including without limitation, the FFDCA, and the federal Anti-Kickback
Statute (42 U.S.C. § 1320a-7b(b)), and the regulations promulgated pursuant to such laws, and comparable state laws (collectively,
“Health Care Laws”); (iii) no Seller Company has received written notice that any Governmental Entity has
taken, is taking or intends to take action to limit, suspend, modify or revoke any Permits required by the Health Care Laws that
are applicable to the Business, which has not been resolved in such Seller Company’s favor; and (iv) no Seller Company
has, in respect of the Business, either voluntarily or involuntarily, initiated, conducted, issued or caused to be initiated, any
recall, market withdrawal, safety alert, post-sale warning, “dear doctor” letter, or other notice or action material
to the Business relating to the alleged lack of safety or efficacy of any product or any alleged product defect or violation and,
to Sellers’ Knowledge, no Person has initiated or conducted any such notice or action against any Seller Company. To Sellers’
Knowledge, the research, studies and tests conducted by or on behalf of each Seller Company in respect of the Business have been
conducted with reasonable care and in accordance in all material respects with experimental protocols, procedures and controls
adopted by such Seller Company pursuant to all Health Care Laws and Permits required by the Health Care Laws that are applicable
to such Seller Company or the Business.

 

Section 3.21         Foreign
Corrupt Practices; OFAC. No Seller Company nor, to Sellers’ Knowledge, any director, officer, agent, employee or other
person acting on behalf of any Seller Company, has (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds, (iii) violated or is in violation of any provision of the
Foreign Corrupt Practices Act of 1977, or (iv) made any bribe, unlawful rebate, payoff, influence payment, kickback or other
unlawful payment. No Seller Company nor, to Sellers’ Knowledge, any director, officer, agent, employee or Affiliate of any
Seller Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department; and the Sellers will not use the Purchase Price, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other Person, for the purpose of financing the activities of any Person currently subject
to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department.

 

    	27

    	 

    

 

Section 3.22         Accounting
and Disclosure Controls. Each applicable Seller Company maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions related to the Business are executed in accordance with management’s general
or specific authorizations, (ii) transactions related to the Business are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access
to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization
and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable
intervals and appropriate action is taken with respect to any difference. PHMD maintains disclosure controls and procedures (as
such term is defined in Rule 13a-15 under the Exchange Act) that are effective in ensuring that information required to be disclosed
by PHMD in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to
ensure that information required to be disclosed by PHMD in the reports that it files or submits under the Exchange Act is accumulated
and communicated to PHMD’s management, including its principal executive officer or officers and its principal financial
officer or officers, as appropriate, to allow timely decisions regarding required disclosure. During the twelve (12) months prior
to the date hereof, PHMD has not received any notice or correspondence from any accountant relating to any material weakness in
any part of the system of internal accounting controls of PHMD.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

As a material inducement
to the Sellers to enter into this Agreement and to sell the Transferred Assets, Purchaser hereby represents and warrants to the
Sellers as follows:

 

Section 4.1           Organization,
Power; Authorization. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. Purchaser has the requisite corporate power and authority and all material Permits necessary to enter into,
deliver and carry out its obligations pursuant to this Agreement and the Transaction Documents to which it is or will be a party.
Purchaser’s execution, delivery and performance of this Agreement and the Transaction Documents to which it is or will be
a party has been duly authorized by Purchaser.

 

Section 4.2           Binding
Effect; Noncontravention.

 

(a)          This
Agreement has been duly executed and delivered by Purchaser and (assuming due authorization, execution and delivery by the Sellers)
constitutes a valid and binding obligation of Purchaser which is enforceable against Purchaser in accordance with its terms, except
as such enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar
laws affecting creditors’ rights generally, and (ii) general equitable principles (whether considered in a Proceeding
at law or in equity).

 

    	28

    	 

    

 

(b)          The
execution, delivery and performance by Purchaser of this Agreement do not and shall not: (i) conflict with or result in a
breach of the terms, conditions or provisions of, (ii) constitute a default under or result in a violation of, (iii) result
in the creation of any Lien upon the assets of Purchaser pursuant to, or (iv) require any Permit or authorization, consent,
approval, exemption or other action by or declaration or notice to any Person pursuant to (A) any material Contract to which
Purchaser is a party, by which it is bound, or to which any of its assets are subject, or (B) the certificate of incorporation,
bylaws or similar governing documents of Purchaser.

 

Section 4.3           Consents.
No notice to, filing with, or Permit, or consent or approval of any Person (including any Person which provides financing to Purchaser
or its Affiliates) is necessary for the execution, delivery or performance of this Agreement or the consummation of the transactions
contemplated hereby by Purchaser.

 

Section 4.4          Brokerage.
Purchaser has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which the Sellers could become liable or obligated.

 

Section 4.5          Financing.
As of the date hereof and as of the Closing Date, Purchaser has and will have sufficient unrestricted funds on hand or committed
financing sources to pay the Purchase Price and to pay all fees and expenses incurred by it in connection with the transactions
contemplated hereunder.

 

Section 4.6          Proceedings;
Orders. There is no Proceeding or investigation pending or, to the knowledge of Purchaser, threatened against Purchaser, its
properties or businesses, that (i) challenges the validity of this Agreement or any action taken or to be taken by Purchaser
in connection herewith, or (ii) seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement,
or which, individually or in the aggregate, would impair or delay the ability of Purchaser to effect the Closing. Purchaser is
not subject to any Order that, individually or in the aggregate, would impair or delay the ability of Purchaser to affect the Closing.

 

Section 4.7           Investment.
Purchaser is acquiring the Securities for its own account, for investment only, and not with a view to any resale or public distribution
thereof. Purchaser shall not offer to sell or otherwise dispose of the Securities in violation of any Legal Requirement applicable
to any such offer, sale or other disposition. Purchaser acknowledges that (i) the Securities have not been registered under
the Securities Act, or any state or foreign securities laws, (ii) there is no public market for the Securities and there can
be no assurance that a public market shall develop, and (iii) it must bear the economic risk of its investment in the Securities
for an indefinite period of time. Purchaser has all requisite legal power and authority to acquire the Securities in accordance
with the terms of this Agreement and is an “Accredited Investor” within the meaning of the Securities and Exchange
Commission Rule 501 of Regulation D of the Securities Act, as presently in effect.

 

    	29

    	 

    

 

Section 4.8           Solvency.
Immediately after giving effect to the Closing, Purchaser will be able to pay its debts as they become due and will own property
which has a fair saleable value greater than the amounts required to pay its probable liability on its debts as they mature. Immediately
after giving effect to the transactions contemplated by this Agreement, Purchaser will not have unreasonably small capital with
which to carry on its business. No transfer of property is being made and no obligation is being incurred by Purchaser in connection
with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud creditors of Purchaser.

 

ARTICLE
V

COVENANTS

 

Section 5.1           Public
Announcements; SEC Filings. Neither the Sellers, nor Purchaser, nor any of their respective Affiliates, shall issue or cause
the publication of any press release or other public announcement with respect to this Agreement or the transactions contemplated
hereby without the prior consent of the other Parties, except as may be required by listing requirements or Legal Requirements.
Notwithstanding the foregoing, the Parties have prepared a joint press release to be issued by the Parties immediately following
the execution of this Agreement. The Parties shall cooperate with each other and use their reasonable best efforts to promptly
prepare and file all reports, including current reports on Form 8-K and comments thereto, in connection with this Agreement and
the transactions contemplated hereby.

 

Section 5.2           Transaction
Expenses; Transfer Taxes.

 

(a)          Purchaser
shall bear all fees and expenses incurred by Purchaser and its Representatives in connection with the negotiation and execution
of this Agreement and each other Transaction Document and the consummation of the transactions contemplated hereby and thereby.
The Sellers shall bear all fees and expenses incurred by the Sellers in connection with the negotiation and execution of this Agreement
and each other Transaction Document and the consummation of the transactions contemplated hereby and thereby. The fees and expenses
of Shardul Amarchand Mangaldas & Co. incurred by the Foreign Subsidiary (or, PHMD, as applicable) in connection with the negotiation
and execution of this Agreement and the transfer documentation in respect of the Foreign Subsidiary, and the consummation of the
transactions contemplated hereby and thereby shall be borne one half by Purchaser and one half by PHMD.

 

(b)          Notwithstanding
anything to the contrary in this Agreement, all stamp, transfer, documentary, sales, use, registration and other such Taxes, levies
and fees (including any penalties and interest) incurred in connection with this Agreement and the transactions contemplated hereby
(collectively, “Transfer Taxes”), and the reasonable costs of preparing and filing the Tax Returns associated
therewith, will be borne solely by Sellers. All Tax Returns with respect to Transfer Taxes shall be prepared and filed by the Person
that customarily is responsible for the filing of such Tax Returns. The Parties shall reasonably cooperate with one another to
lawfully minimize Transfer Taxes and Sellers shall, if Purchaser is the filing party of a particular Transfer Tax Return, pay to
Purchaser the associated Transfer Taxes (and costs) to the Purchaser within three (3) Business Days prior to the payment due date
of such Transfer Taxes and Purchaser shall duly remit such Taxes to the appropriate Taxing Authority.

 

    	30

    	 

    

 

Section 5.3           Further
Assurances. The Parties agree (a) to furnish upon request to each other such further information, (b) to execute
and deliver to each other such other documents, and (c) to do such other acts and things not inconsistent with this Agreement,
all as the other Party may reasonably request for the purpose of carrying out the intent of this Agreement and the Transaction
Documents. In addition, and without limitation of the foregoing, in the event that either Seller shall, following the Closing,
come into possession of any of the Business Assets, such Seller shall promptly cause the transfer of such Business Assets to Purchaser
and shall take such actions reasonably requested by Purchaser to memorialize such transfer.

 

Section 5.4           Post-Closing
Access. Following the Closing, Purchaser shall, and shall cause the Foreign Subsidiary to, provide to PHMD and its Representatives
reasonable access to the personnel, representatives, attorneys, accountants, properties, books and records of the Foreign Subsidiary
and the Business upon reasonable advance written notice during regular business hours, and will permit PHMD to make copies of any
such information in each case to the extent necessary for PHMD to comply with its obligations to the SEC or otherwise under the
Exchange Act.

 

Section 5.5           Employees;
Employees Benefit Plans.

 

(a)          Within
24 hours following the Closing (or such other time as the Parties may mutually agree), Purchaser shall, or shall cause one of its
Affiliates to, make written offers of employment to the active Business Employees who are listed on Section 5.5(a) of the
Disclosure Letter (collectively, the “Offered Employees”), which offer shall remain open for five days (or such
other time as the Parties may mutually agree) following the Closing Date. Each such offer shall provide (i) an annual base
salary or hourly wage rate (as the case may be) not less than the base salary or hourly wage rate in effect as of the date hereof,
and (ii) employee benefits that are substantially comparable in the aggregate to the employee benefits received by such Offered
Employee as of the date hereof, or, in the discretion of Purchaser, employee benefits offered to similarly situated employees of
Purchaser from time to time; provided, that any and all equity awards by Purchaser shall be at Purchaser’s sole discretion.
The Offered Employees who accept such offers of employment and become employees of Purchaser (or any of its Affiliates) shall be
collectively referred to as the “Continuing Employees.” Subject to Purchaser’s compliance with this Section
5.5(a), the Sellers shall be solely responsible for, and liable to pay, severance (if any) that becomes due to a Business Employee
and for the provision of health plan continuation coverage in accordance with the requirements of Section 4980B of the Code, Part
6 of Title I of ERISA or any other applicable state or local Legal Requirement who (x) is an Offered Employee but rejects Purchaser’s
(or its Affiliate’s) offer of employment provided in accordance with this Section 5.5(a) and does not continue employment
with the Sellers or any of their Affiliates on or after the Closing Date, (y) is not an Offered Employee and does not continue
employment with the Sellers or any of their Affiliates on or after the Closing Date or (z) is a former employee of Sellers
or any of their Affiliates as of the Closing Date, in each case in accordance with COBRA and the terms of the applicable plans.

 

    	31

    	 

    

 

(b)          As
soon as reasonably practicable after the Closing Date or such later date agreed to by the Parties or permitted under the Transition
Services Agreement, but in no event later than December 31, 2015, the Purchaser shall take, or shall cause one of its Affiliates
to take, all actions necessary to implement and establish “employee benefit plans” within the meaning of Section 3(3)
of ERISA and a 401(k) plan intended to be qualified under Section 401(a) of the Code (collectively, “Purchaser Plans”)
in which the Continuing Employees shall be eligible to participate from and after the date of establishment. For purposes of determining
eligibility to participate, vesting and benefit accrual in the Purchaser Plans, the service of each Continuing Employee prior to
the Closing Date shall be treated as service with Purchaser, to the extent recognized by P-Tech prior to the Closing Date; provided,
however, that such service shall not be recognized to the extent that such recognition would result in any duplication of
benefits and Purchaser shall not be required to provide service credit for benefit accrual purposes under any Purchaser Plan that
is a defined benefit pension plan. In addition, subject to applicable Legal Requirement, Purchaser shall ensure that the Purchaser
Plans (i) waive, or caused to be waived, all limitations as to preexisting conditions, exclusions and waiting periods with
respect to participation and coverage requirements applicable to Continuing Employees under any Purchaser Plan in which such Continuing
Employees may be eligible to participate after the Closing Date and (ii) provide each Continuing Employee with credit for
any co-payments and deductibles paid during the plan year in which the Closing Date occurs in satisfying any applicable deductible
or out-of-pocket requirements under any Purchaser Plans that are welfare plans in which such Continuing Employee is eligible to
participate after the Closing Date.

 

(c)          Except
as otherwise provided in the Transition Services Agreement, effective as of the later of the Closing Date and the date on which
the Continuing Employees’ employment commences with the Purchaser (such date, the “Transfer Date”), all
Continuing Employees shall cease to participate in any Employee Benefit Plan sponsored by the Sellers or any of their Affiliates.
The Sellers shall retain all liabilities accrued through the Transfer Date in respect of such Continuing Employees’ participation
in Sellers’ Employee Benefit Plans, other than liabilities that are included as liabilities in the calculation of Working
Capital. From and after the Transfer Date, the Purchaser shall, pursuant to and in accordance with the terms of the Transition
Services Agreement, have the reimbursement obligations to Seller set forth therein with respect to the costs and expenses associated
with participation by the Continuing Employees in any Employee Benefit Plans sponsored by the Sellers or any of their Affiliates.

 

(d)          Nothing
contained in this Section 5.5, expressed or implied, shall (i) be treated as the establishment, amendment or modification
of any Employee Benefit Plan or Purchaser Plan or, except as expressly set forth in this Section 5.5, constitute a limitation
on rights to amend, modify, merge or terminate after the Closing Date any Employee Benefit Plan or Purchaser Plan, (ii) give
any current or former employee, officer, director or other independent contractor (including any beneficiary or dependent of the
foregoing) of the Parties or their respective Affiliates any third party beneficiary or other rights, or (iii) except as explicitly
set forth in this Section 5.5, obligate Purchaser or any of its Affiliates to (A) maintain any particular Employee
Benefit Plan or Purchaser Plan, or (B) retain the employment or services of any current or former employee, officer, director
or other service provider.

 

    	32

    	 

    

 

Section 5.6           Non-Compete
and Non-Solicitation.

 

(a)          PHMD
agrees that for a period of four (4) years after the Closing Date neither it nor any of its Affiliates shall, either directly or
indirectly, alone or with others, engage in, own, manage, operate, finance, control, or provide services to, any Person that sells,
distributes or otherwise provides, for use in a medical practice, excimer lasers or excimer lamps; provided, that
nothing in this Section 5.6(a) shall preclude PHMD or any of its Affiliates from owning, solely as an investment, up to
5% of any Person engaged in any such business.

 

(b)          PHMD
agrees that for a period of four (4) years after the Closing Date neither it nor any of its directors or Affiliates shall, without
the prior written consent of Purchaser, directly or indirectly solicit the employment or services of, or retain, any Continuing
Employee; provided, that the restrictions contained in this Section 5.6(b) shall not apply to solicitations
through job fairs or general solicitations or advertisements not directed at any particular individual.

 

(c)          PHMD
agrees that for a period of four (4) years after the Closing Date neither it nor any of its Affiliates shall, without the prior
written consent of Purchaser, knowingly cause or attempt to cause any customer of the Business to reduce or terminate its business
relationship with Purchaser.

 

(d)          Purchaser
agrees that for a period of four (4) years after the Closing Date neither it nor any of its directors or Affiliates shall, without
the prior written consent of the Sellers, directly or indirectly solicit the employment or services of, or retain any employee
of either Seller (other than any Business Employee) as of the Closing; provided, that the restrictions contained
in this Section 5.6(d) shall not apply to solicitations through job fairs or general solicitations or advertisements not
directed at any particular individual.

 

(e)          Purchaser
agrees that for a period of four (4) years after the Closing Date neither it nor any of its Affiliates shall, without the prior
written consent of the Sellers, knowingly cause or attempt to cause any customer of any Seller or any of their Affiliates to reduce
or terminate its business relationship with such Seller or such Affiliate.

 

(f)          If
a final judgment of a court or tribunal of competent jurisdiction determines that any term or provision contained in Section
5.6(a), (b), (c), (d) or (e) is invalid or unenforceable, then the Parties agree that the court
or tribunal will have the power to reduce the scope, duration or geographic area of the term or provision, to delete specific words
or phrases or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable
and that comes closest to expressing the intention of the invalid or unenforceable term or provision. This Section 5.6 will
be enforceable as so modified after the expiration of the time within which the judgment may be appealed.

 

(g)          In
the event of any breach or attempted breach of any provision contained in Section 5.6(a), (b), (c), (d)
or (e), the aggrieved Party shall be entitled to injunctive and other temporary relief without the need to post a bond and,
subject to the other limitations herein, to such other and further legal and equitable relief and damages as may be proper.

 

    	33

    	 

    

 

(h)          PHMD
agrees that, for the shorter of the period ending on (i) the date that is four (4) years after the Closing Date, or (ii) the date
that the restrictions set forth in Section 13(e) of each of the agreements listed on Section 5.6(h) of the Disclosure Letter
(the “Applicable Provisions”) would otherwise expire in accordance with their terms, PHMD shall, and shall cause
its Affiliates to, enforce, including by way of seeking equitable remedies and/or damages, the restrictions set forth in the Applicable
Provisions for the benefit of Purchaser and its Affiliates with respect to the Business. In no event shall PHMD consent to any
amendment or waive any of its rights under such agreements to the extent that the same would (x) shorten the duration of the Applicable
Provisions, or (y) permit the executives restricted by the Applicable Provisions to either directly or indirectly, alone or with
others, engage in, own, manage, operate, finance, control, or provide services to, any Person that sells, distributes or otherwise
provides, for use in a medical practice, excimer lasers or excimer lamps.

 

Section 5.7           PhotoMedex
Name. Purchaser understands that subsequent to the Closing, the Sellers will use the name “PhotoMedex” and that
such name and any and all derivations thereof are excluded from the Transferred Assets hereunder. Immediately following the Closing,
Purchaser shall change the name of the Foreign Subsidiary to a name that does not include “PhotoMedex,” “PHMD”
or any other names which are confusingly similar thereto, and after the Closing, Purchaser shall, and shall cause the Foreign Subsidiary
to, not use, directly or indirectly, the name “PhotoMedex,” “PHMD” or any other name which is confusingly
similar thereto, except as necessary to satisfy its obligations hereunder.

 

Section 5.8           PHMD
Korea Employee. Purchaser agrees that it shall, and shall cause its Affiliates to (i) enforce any and all rights of Purchaser
or its Affiliates against Kosmo Meditech (“Kosmo”) to cause Kosmo to fulfill its obligations pursuant to Section
3.3 of that certain Termination of Services Agreement, dated as of March 4, 2015, by and between PhotoMedex Korea Ltd. and Kosmo
(the “Termination Agreement”), and (ii) pay over to PHMD promptly following receipt, all monies paid to Purchaser
or its Affiliates by Kosmo pursuant to Section 3.3 of the Termination Agreement.

 

ARTICLE
VI

[RESERVED]

 

ARTICLE
VII

[RESERVED]

 

ARTICLE
VIII

INDEMNIFICATION

 

Section 8.1           Indemnification.

 

(a)          Subject
to the limitations set forth in Section 8.3, PHMD agrees from and after the Closing Date to indemnify, defend and hold harmless
Purchaser and all of its officers, managers, directors, shareholders, members, Affiliates, employees and agents (the “Purchaser
Indemnified Persons”) from and against any Losses actually incurred by such Purchaser Indemnified Persons arising out
of or resulting from (i) any breach by any Seller Company of any representation or warranty of such Seller Company contained
in this Agreement or any other Transaction Document, (ii) any breach by any Seller Company of any covenant or other obligation
or agreement contained in this Agreement or any other Transaction Document, and (iii) the Excluded Liabilities; provided,
in each case, that the relevant Purchaser Indemnified Person has submitted to PHMD a Notice of Claim or Third Party Notice, as
applicable, in respect thereof prior to the date of expiration of any applicable survival period specified in Section 8.3.

 

    	34

    	 

    

 

(b)          Subject
to the limitations set forth in Section 8.3, Purchaser agrees from and after the Closing Date to indemnify, defend and hold
harmless PHMD and all of its and its Affiliates’ respective officers, managers, directors, shareholders, members, Affiliates,
employees and agents (the “Seller Indemnified Persons”) from and against any Losses actually incurred by the
Seller Indemnified Persons arising out of or resulting from (i) any breach by Purchaser of any representation or warranty
of Purchaser contained in this Agreement or any other Transaction Document, (ii) any breach by Purchaser of any covenant or
other obligation or agreement of Purchaser contained in this Agreement or any other Transaction Document, and (iii) the Business
Liabilities; provided, in each case, that the relevant Seller Indemnified Person has submitted to Purchaser a Notice of
Claim or Third Party Notice, as applicable, in respect thereof prior to the date of expiration of any applicable survival period
specified in Section 8.3.

 

Section 8.2           Procedures
for Indemnification.

 

(a)          If
any Purchaser Indemnified Person or Seller Indemnified Person (each, an “Indemnified Person”) shall claim indemnification
hereunder for any matter (other than a Third Party Claim) for which indemnification is provided in Section 8.1, the Indemnified
Person shall promptly after it first obtains knowledge of facts which could reasonably be expected to give rise to Losses that
will serve the basis for such claim, give written notice (a “Notice of Claim”) to PHMD or Purchaser, as applicable,
setting forth the basis for such claim and the nature and estimated amount of the claim to the extent then feasible (which estimate
shall not be conclusive of the final amount of the claim), all in reasonable detail; provided, that the failure of
any Indemnified Person to give timely notice thereof shall not affect any of its rights to indemnification hereunder nor relieve
PHMD or Purchaser, as the case may be, from any of its indemnification obligations hereunder, except to the extent that it is actually
prejudiced by such failure. If PHMD or Purchaser, as applicable, disputes any claim set forth in the Notice of Claim, it may, at
any time deliver to the Indemnified Person that has given the Notice of Claim a written notice indicating its dispute of such Notice
of Claim, and the Parties shall attempt in good faith for a period of thirty (30) days after delivery of the dispute notice to
agree upon the rights of the Parties with respect to such Notice of Claim. If no such agreement can be reached after good faith
negotiation, the Parties shall have the rights and remedies, if any, available to them under this Agreement or applicable Legal
Requirements.

 

    	35

    	 

    

 

(b)          If
an Indemnified Person shall claim indemnification hereunder arising from any Third Party Claim for which indemnification is provided
in Section 8.1, the Indemnified Person shall promptly after it first obtains knowledge of such Third Party Claim, give written
notice (a “Third Party Notice”) to PHMD or Purchaser, as applicable (each, an “Indemnifying Person”),
of the basis for such claim, setting forth the nature of the claim or demand in reasonable detail to the extent known by the Indemnified
Person; provided, that the failure of any Indemnified Person to give timely notice thereof shall not affect any of
its rights to indemnification hereunder nor relieve PHMD or Purchaser, as the case may be, from any of its indemnification obligations
hereunder, except to the extent that it is actually prejudiced by such failure. The Indemnifying Person, upon notice to the Indemnified
Person, may at any time within thirty (30) days after receiving a Third Party Notice, at its own cost and through counsel of its
choosing and reasonably acceptable to the Indemnified Person, defend any claim or demand set forth in a Third Party Notice. The
Indemnifying Person shall have the right to compromise and settle all indemnifiable matters related to Third Party Claims which
are susceptible to being settled and as to which it shall have properly assumed the defense; provided, that the Indemnifying
Party shall not, without the prior written consent of the Indemnified Person settle or compromise any Third Party Claim or consent
to the entry of any final judgment that does not include as an unconditional term thereof the delivery by the claimant or plaintiff
of a written release or releases from all liability in respect of such Third Party Claim of all Indemnified Persons named in such
Third Party Claim and the sole relief for which are monetary damages that are paid in full by the Indemnifying Party. In the event
that a particular Third Party Claim is subject to the limitations set forth in Section 8.3(b) and the aggregate amount of
such Third Party Claim exceeds the Indemnifying Person’s applicable maximum aggregate liability, the Indemnifying Person
shall not reject any settlement or compromise offer without the prior consent of the Indemnified Person. The Indemnifying Person
shall from time to time and otherwise at the Indemnified Person’s request apprise the Indemnified Person of the status of
the claim, liability or expense and any resulting Proceeding and shall furnish the Indemnified Person with such documents and information
filed or delivered in connection with such claim, liability or expense or otherwise thereto as the Indemnified Person may reasonably
request, and shall diligently defend the applicable Third-Party Claim. The Indemnified Person shall not admit any liability to
any third party in connection with any matter which is the subject of a Notice of Claim as to which the Indemnifying Party shall
have properly assumed the defense and shall cooperate fully in the manner requested by the Indemnifying Party in the defense of
such claim. Notwithstanding anything herein stated, the Indemnified Person shall at all times have the right to fully participate
in such defense at its own expense directly or through counsel; provided, however, that if there exists a material
conflict of interest between the Indemnified Person, on the one hand, and the Indemnifying Party, on the other hand, or if the
Indemnified Person has been advised by counsel that there may be one or more legal or equitable defenses available to it that are
different from or additional to those available to the Indemnifying Party, which, in either case, would make it inappropriate for
the same counsel to represent both the Indemnifying Party and the Indemnified Person, then the Indemnified Person shall be entitled
to retain its own counsel at the cost and expense of the Indemnifying Person (except that the Indemnifying Party shall not be obligated
to pay the fees and expenses of more than one separate counsel for all Indemnified Persons, taken together). Until such time as
the Indemnifying Person has timely delivered a notice of intent to defend a Third Party Claim to the Indemnified Person, the Indemnified
Person shall, at the expense of the Indemnifying Person, undertake the defense of (with counsel selected by the Indemnified Person
and reasonably acceptable to the Indemnifying Person) such claim, liability or expense, and shall have the right to compromise
or settle such claim, liability or expense exercising reasonable business judgment; provided, that, such compromise
or settlement shall not be effected within the first thirty (30) days after Indemnifying Party’s receipt of such Third Party
Notice without the prior written consent of the Indemnifying Person (such consent not to be unreasonably withheld, conditioned
or delayed).

 

    	36

    	 

    

 

Section 8.3           Limitations
on Indemnification.

 

(a)          The
representations and warranties made in this Agreement shall terminate upon the twelve (12) month anniversary of the Closing Date,
except for the Fundamental Representations, which shall survive as follows: the representations and warranties in Section 3.10
(Tax Matters), Section 3.11 (Environmental Matters), and Section 3.14 (Employee Benefits) shall survive until sixty
(60) days following the expiration of the statute of limitations applicable thereto (giving effect to any waiver, mitigation or
extension thereof) and all other Fundamental Representations shall survive in perpetuity.

 

(b)          Subject
to Section 8.3(d), PHMD’s maximum aggregate liability to Purchaser Indemnified Persons for indemnification (including
costs incurred in the defense of such claim) under (i) Section 8.1(a)(i) (other than with respect to Fundamental Representations)
shall not exceed $3,600,000; and (ii) Section 8.1 and Section 9.2, in the aggregate, shall not exceed the Purchase
Price. Subject to Section 8.3(d), Purchaser’s maximum aggregate liability to Seller Indemnified Persons for indemnification
(including costs incurred in the defense of such claim) under Section 8.1 shall not exceed the Purchase Price.

 

(c)          No
Purchaser Indemnified Person shall be entitled to indemnification pursuant to Section 8.1(a)(i) (other than with respect
to Fundamental Representations which shall not be subject to the limitations of this Section 8.3(c)) unless and until the
aggregate Losses incurred by all Purchaser Indemnified Persons in respect of all claims under Section 8.1(a)(i) (other than
with respect to Fundamental Representations) collectively exceeds $450,000 whereupon Purchaser Indemnified Persons shall only be
entitled to indemnification hereunder (subject to the other provisions of this Article VIII) from PHMD for all such
Losses incurred by Purchaser Indemnified Persons in excess of such $450,000 threshold.

 

(d)          The
amount of any Losses for which indemnification is provided under this Agreement shall be reduced by (i) any amounts realized by
the Indemnified Person as a result of any indemnification, contribution or other payment by any third party, (ii) any insurance
proceeds actually recovered by any Indemnified Person (which amount shall be reduced by the amount by which insurance premiums
for the Indemnified Person are increased as a direct result of the Losses for which such insurance proceeds were received by the
Indemnified Person) or any amounts actually recovered by any Indemnified Person pursuant to any indemnification agreement with
any Person and (iii) any Tax savings actually realized by the Indemnified Person (or its Affiliate) in the taxable year in which
the Loss is incurred. The Indemnified Persons shall use their commercially reasonable efforts to pursue any claims for insurance,
Tax benefits, indemnification, contribution and/or other payments available from third parties with respect to Losses for which
it will seek, or has sought, indemnification hereunder. 

 

(e)          Notwithstanding
anything to the contrary in this Agreement, the limitations, thresholds and qualifications set forth in this Article VIII:
(i) shall not apply in the case of fraud or willful breach, or (ii) in any manner preclude an Indemnified Person from
seeking any non-monetary equitable remedy, including specific performance or a preliminary or permanent injunction.

 

    	37

    	 

    

 

(f)          No
claim for indemnification may be made by a Purchaser Indemnified Person and no indemnification shall be required to the extent
that the Losses sustained or incurred by such Purchaser Indemnified Person for which indemnification is sought were treated and
taken into account as a liability in the Working Capital.

 

(g)          Subject
to Section 8.3(f), the indemnification provided in this Article VIII and in Section 9.2 (including all
limitations contained herein) shall be the sole and exclusive remedy for all matters relating to this Agreement, the transactions
contemplated hereby, and for the breach of any representation, warranty, covenant or agreement contained herein, and Purchaser
and PHMD each expressly waive any and all claims which it may have with respect to the foregoing, other than any Indemnification
Claims to the extent provided for in this Article VIII and in Section 9.2.

 

(h)          The
representations, warranties, covenants and obligations of a Party and the rights and remedies that may be exercised by the Indemnified
Persons based on such representations, warranties, covenants and obligations, will survive and not be limited or affected by any
investigation conducted by any Indemnified Person with respect to, or any knowledge acquired (or capable of being acquired) by
such Indemnified Person at any time, whether before or after the execution and delivery of this Agreement or the Closing, with
respect to the accuracy or inaccuracy of, or compliance with or performance of, any such representation, warranty, covenant or
obligation, and no Indemnified Person shall be required to show that it relied on any such representation, warranty, covenant or
obligation of a Party in order to be entitled to indemnification pursuant to this Article VIII.

 

(i)          Solely
for the purpose of calculating Losses arising under this Article VIII in respect of a breach of any representation
or warranty (but, for the avoidance of doubt, not for the purpose of determining whether any such breach occurred), any Material
Adverse Effect, materiality, material or similar limitation set forth in such representation or warranty shall be disregarded.

 

Section 8.4           Escrow
Amount. If at any time prior to the date that is twelve (12) months from the Closing Date, (i) PHMD and/or any of its
Affiliates shall enter into one or more definitive agreements with any other Person (other than a direct or indirectly wholly-owned
Subsidiary of PHMD) to sell or otherwise transfer all or substantially all of PHMD’s assets to such third party(s) or shall
otherwise engage in any material collaboration or other strategic transaction with any other Person (other than a direct or indirectly
wholly-owned Subsidiary of PHMD) outside of the Ordinary Course of Business with respect thereto (a “Strategic Transaction”),
then, PHMD shall deposit with the Escrow Agent, simultaneously with the consummation of such Strategic Transaction, an additional
sum such that the total amount then deposited with the Escrow Agent shall equal three million six-hundred thousand dollars ($3,600,000)
(such amount, the “Increased Escrow Amount”); provided, however, if at any time during such twelve
(12) month period, PHMD and/or any of its Affiliates shall enter into one or more definitive agreements with any other Person (other
than a direct or indirectly wholly-owned Subsidiary of PHMD) to sell or otherwise transfer all or a substantial portion of the
assets comprising the Neova business and/or the Surgical Laser Technology business, or shall otherwise engage in any material collaboration
or other strategic transaction with any other Person (other than a direct or indirectly wholly-owned Subsidiary of PHMD) outside
of the Ordinary Course of Business with respect thereto, PHMD shall deposit with the Escrow Agent, simultaneously with the consummation
of such transaction, an amount equal to two-hundred and fifty-thousand dollars ($250,000), and (ii) the cash and cash equivalents
of PHMD (either individually or on a consolidated basis) exceeds $12,000,000 at the end of any calendar month, PHMD shall, within
ten (10) days of the end of each such calendar month, deposit with the Escrow Agent an amount equal to such excess; provided,
that, with respect to each of the foregoing clauses (i) and (ii), once the total amount deposited with the Escrow Agent
equals the Increased Escrow Amount, PHMD shall not be required to deposit any additional sum(s) with the Escrow Agent pursuant
to this Section 8.4. In the event that any deposits are made with the Escrow Agent pursuant to the foregoing clauses (i)
or (ii) and a Strategic Transaction is thereafter consummated, PHMD’s obligation to deposit funds with the Escrow Agent shall
be reduced on a dollar-for-dollar basis by the aggregate amount of such other deposits. Any payments required to be made to a Purchaser
Indemnified Person pursuant to Section 8.1(a) or Section 9.2 shall be paid first from the Escrow Amount or the Increased
Escrow Amount, as applicable, and thereafter, to the extent the Escrow Amount or the Increased Escrow Amount, as applicable, has
been depleted, shall be paid by PHMD.

 

    	38

    	 

    

 

Section 8.5           Adjustments
to Purchase Price. All payments under this Article VIII shall be treated as adjustments to the Purchase Price,
unless otherwise required by applicable Legal Requirement.

 

ARTICLE
IX

TAX MATTERS

 

Section 9.1           Cooperation
on Tax Matters.

 

(a)          The
Parties shall reasonably cooperate with each other and with each other’s agents, including accounting firms and legal counsel,
in connection with: (i) the preparation and filing of Tax Returns pursuant to this Article IX; and (ii) Tax
Proceedings. Further, each Party shall provide to the other reasonable access to the books and records in such Party’s possession
in connection with the preparation and filing of Tax Returns of or relating to the Foreign Subsidiary, or the conduct of a Tax
Proceeding. Any information or documents provided under this Section 9.1 shall be kept confidential by the Party receiving
the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection
with any Proceedings relating to Taxes.

 

(b)          Purchaser
shall promptly notify PHMD in writing upon receipt by Purchaser or any of their Affiliates of notice of any Proceeding with respect
to Taxes of a Foreign Subsidiary which could result in any Tax liability for which a Seller may be liable to a Purchaser Indemnified
Person hereunder (“Tax Proceedings”), provided, that the failure of Purchaser to give prompt notice
thereof shall not affect any of its rights to indemnification hereunder nor relieve PHMD from any of its indemnification obligations
hereunder, except to the extent that Purchaser is materially prejudiced by such failure. The disposition of such Tax Proceedings
shall be governed by the procedures of Section 8.2; provided, however, that, notwithstanding any other provision of this
Agreement, PHMD shall have sole control over all Tax Proceedings that are disclosed on the Disclosure Letter hereto, and all Tax
Proceedings with respect to the Foreign Subsidiary where the applicable Tax Returns are not filed by a Foreign Subsidiary separately
from PHMD or its Affiliates, and neither Purchaser nor any of its Affiliates shall have participation rights, or the ability to
approve settlements of, such Tax Proceedings, and Purchaser shall promptly cause PHMD to receive all authorizations necessary to
conduct and dispose of such Tax Proceedings, provided however, that no settlement of such Tax Proceedings shall entered
into without the prior written consent of the Purchaser (not to be unreasonably withheld or delayed) if the settlement has an adverse
tax effect on Purchaser or its Affiliates (including the Foreign Subsidiary) for taxable periods (or portions thereof) beginning
after the Closing Date or results in a Tax liability for which Purchaser would not be fully indemnified by PHMD under this Agreement.

 

    	39

    	 

    

 

Section 9.2           Tax
Indemnification. PHMD shall indemnify the Purchaser Indemnified Persons and hold them harmless from and against (i) all
Taxes of the Foreign Subsidiary for the Pre-Closing Tax Period (other than Taxes attributable to extraordinary transactions undertaken
on the Closing Date at the direction of Purchaser), (ii) all Taxes of Seller Companies or any Affiliates thereof (other than
the Foreign Subsidiary), including any liability for Taxes allocable to or arising out of the Business or ownership of the Transferred
Assets for any Pre-Closing Tax Period and including all Taxes incurred by the Seller Companies or any Affiliates thereof (other
than the Foreign Subsidiary) due to the conveyance by PHMD and its Affiliates of the Transferred Assets under this Agreement);
and (iii) all Taxes that are the responsibility of Sellers pursuant to Section 5.6(b); provided, however, that in
the case of clauses (i), (ii) and (iii) above, PHMD shall be liable only to the extent that such Taxes are in excess of the amount,
if any, taken into account as a liability in determining the Working Capital on the Closing Date as finally determined under Section
2.5. PHMD’s obligation to indemnify and hold harmless Purchaser and each Purchaser Affiliate under this Section 9.2
shall survive until sixty (60) days following the expiration of the statute of limitations applicable to the underlying Tax (giving
effect to any waiver, mitigation or extension of the subject statute of limitations); provided, however, that if
notice of a claim shall have been timely given to PHMD under Section 8.2 or Section 9.1(b) on or prior to such survival
termination date, PHMD’s obligation to indemnify and hold harmless the Purchaser Indemnified Persons in respect of such claim
shall survive beyond such date until such claim for indemnification has been satisfied or otherwise resolved. Any amounts paid
or payable under this Section 9.2 shall be without duplication with amounts otherwise payable under this Agreement.

 

Section 9.3           Straddle
Period. In the case of any Taxable Period that includes (but does not end on) the Closing Date (a “Straddle Period”),
the amount of any Taxes for the Pre-Closing Tax Period shall be determined as follows:

 

(a)          In
the case of Taxes based upon income, gross receipts (such as sales taxes) or specific transactions such as the sale or other transfer
of property and payroll, the amount of Taxes attributable to any Pre-Closing Tax Period shall be determined by closing the books
of the relevant Seller Company as of the end of the Closing Date.

 

    	40

    	 

    

 

(b)          In
the case of Taxes imposed on a periodic basis (such as real or personal property Taxes), the amount of Taxes attributable to any
Pre-Closing Tax Period shall be equal to the amount of Taxes for such Straddle Period multiplied by a fraction, the numerator of
which is the number of days in the Pre-Closing Tax Period included in the Straddle Period and the denominator of which is the total
number of days in the Straddle Period.

 

Section 9.4           Responsibility
for Filing Tax Returns for Periods through Closing Date.

 

(a)          PHMD
shall prepare all Tax Returns of the Foreign Subsidiary for all Taxable Periods ending on or before the Closing Date in a manner
consistent with past practice of the Foreign Subsidiary, unless otherwise required under applicable Legal Requirements. PHMD shall
provide Purchaser with drafts of such Tax Returns (along with supporting workpapers and schedules) within sixty (60) days of the
due date therefor (including timely requested extensions), and Purchaser shall be allowed to review such Tax Returns and provide
PHMD with comments thereto, with PHMD to accept all reasonable comments provided by Purchaser within thirty (30) days of the receipt
of the original or revised draft (as applicable), and with such Tax Returns, as finally agreed between the Parties, to then be
filed by the Party legally required to file such Tax Returns. Notwithstanding the foregoing, in the case of a Tax Return that is
due within thirty (30) days after the Closing Date (including extensions thereof), PHMD shall provide a copy of such Tax Return
(along with supporting workpapers and schedules) and the Purchaser shall review and comment, in each case as soon as practical
before the filing due date (including extensions). Purchaser shall cause the Foreign Subsidiary to timely file returns as finally
agreed to. Without duplication for amounts otherwise paid under Section 8.1(a) or Section 9.2. PHMD shall pay all Taxes shown
due and payable on such Tax Returns to the extent that the amount of such Taxes exceed the amount, if any, of such Taxes that were
taken into account as a liability in determining the Working Capital on the Closing Date as finally determined under Section
2.5.

 

(b)          Purchaser
shall prepare all Tax Returns of the Foreign Subsidiary for Straddle Periods in a manner consistent with past practice of the Foreign
Subsidiary, unless otherwise required under applicable Legal Requirements. Purchaser shall provide PHMD with drafts of such Tax
Returns (along with supporting workpapers and schedules) within sixty (60) days of the due date therefor (including timely requested
extensions), and PHMD shall be allowed to review such Tax Returns and provide Purchaser with comments thereto, with Purchaser to
accept all reasonable comments provided by PHMD within thirty (30) days of the receipt of an original or revised draft (as applicable).
Notwithstanding the foregoing, in the case of a Tax Return that is due within thirty (30) days after the Closing Date or the Taxable
Period to which it relates (including extensions thereof), the Purchaser shall provide a copy of such Tax Return (along with supporting
workpapers and schedules) and PHMD shall review and comment, in each case as soon as practical before the filing due date (including
extensions). PHMD shall reimburse Purchaser for all Taxes shown due and payable on such Tax Returns that are allocable to the Pre-Closing
Tax Period no later than three (3) Business Days prior to the due date of the applicable Tax Return, to the extent that the Taxes
so allocated exceed the amount, if any, of such Taxes that were taken into account as a liability in determining the Working Capital
on the Closing Date as finally determined under Section 2.5.

 

    	41

    	 

    

 

Section 9.5           Amended
Returns and Retroactive Elections. Under otherwise required under applicable Legal Requirements, Purchaser shall not, and shall
not cause or permit the Foreign Subsidiary to, (i) amend or revoke any Tax Returns filed with respect to any Taxable Period
ending on or before the Closing Date or with respect to any Straddle Period, or (ii) make any Tax election that has retroactive
effect to any such Taxable Period or Straddle Period, in each such case without the prior written consent of PHMD (not to be unreasonably
withheld or delayed).

 

Section 9.6           Refunds
and Tax Benefits. Any Tax refunds of Taxes of the Foreign Subsidiary that are received by Purchaser or the Foreign Subsidiary,
and any amounts credited against Tax of the Foreign Subsidiary to which Purchaser or the Foreign Subsidiary become entitled, allocable
to the Pre-Closing Tax Period shall be for the account of PHMD, (excluding any refund or credit attributable to any loss in a tax
year (or portion of a Straddle Period) beginning after the Closing Date applied (e.g., as a carryback) to income in the Pre-Closing
Tax Period), and Purchaser shall pay over or cause to be paid over to PHMD any such refund or the amount of any such credit (net
of any Taxes and reasonable expenses of Purchaser or the Foreign Subsidiary attributable to such refund or credit) within fifteen
(15) days after receipt or entitlement thereto; provided, however, Purchaser shall not be required to pay over to
PHMD any such refund or the amount of any such credit up to the amount of any such refund or credit taken into account in determining
the Working Capital on the Closing Date as finally determined under Section 2.5.

 

Section 9.7           Purchase
Price Allocations. The Parties agree that the Purchase Price (plus other relevant items) shall be allocated in accordance with
Section 1060 of the Code among the Transferred Assets for all Tax purposes as shown on the allocation schedule (the “Allocation
Schedule”). A draft of the Allocation Schedule shall be prepared by Purchaser and delivered to PHMD within sixty (60)
days following the Closing Date. If, within forty-five (45) days after the receipt of the Allocation Schedule by PHMD, PHMD notifies
Purchaser in writing that PHMD objects to one or more items reflected in the Allocation Schedule, PHMD and Purchaser shall negotiate
in good faith to resolve such dispute; provided, however, that if PHMD and Purchaser are unable to resolve
any dispute with respect to the Allocation Schedule within thirty (30) days following Purchaser’s receipt of any such notice
of objection, each of Purchaser and PHMD may prepare and shall use (and shall cause its Affiliates to use) its own separate purchase
price allocation (each such allocation, a “Separate Allocation”) in connection with the preparation and filing
of all Tax Returns, and Purchaser shall have no liability to PHMD, and PHMD shall have no liability to Purchaser, for any Taxes
that may be imposed by any Taxing Authority to the extent that such Tax arises as a result of the inconsistencies between the Separate
Allocations. If no written objection is delivered by PHMD to Purchaser within the forty-five (45) day period after PHMD’s
receipt of the Allocation Schedule, the Allocation Schedule as prepared by Purchaser shall deemed to be accepted by PHMD and shall
be shall be conclusive and binding upon the Parties. The Parties shall file (and shall cause their Affiliates to file) all Tax
Returns (including amended returns and claims for refund) in a manner consistent with the Allocation Schedule if the Allocation
is agreed to (or deemed agreed to), as the case may be pursuant to the procedures set forth in this Section 9.7. Any adjustments
to the Purchase Price pursuant to Section 8.5 shall be allocated in a manner consistent with the Allocation Schedule (if
the Allocation Schedule is being used pursuant to the provisions of this Section 9.7).

 

    	42

    	 

    

 

Section 9.8           Tax
Sharing Agreements. PHMD shall cause all Tax Sharing Agreements between the Foreign Subsidiary, on the one hand, and the Sellers
(or any other Person) to be terminated effective on the Closing.

 

Section 9.9           Tax
Clearance Certificates. Purchaser acknowledges that the Seller Companies and their Affiliates have not taken, and do not intend
to take, any action required to comply with any applicable bulk sale or bulk transfer laws or similar laws and hereby waives compliance
therewith; it being understood that any liabilities arising out of the failure of the Sellers to comply with the requirements and
provisions of any such Laws in any jurisdiction shall not limit Purchaser’s rights under Section 9.2.

 

ARTICLE
X

MISCELLANEOUS

 

Section 10.1         Confidentiality.
On and after the Closing, Purchaser shall (and shall cause its Affiliates to) maintain the confidentiality of all confidential
or proprietary information of the Sellers and agrees not to, directly or indirectly, disclose any such confidential or proprietary
information except to the extent that disclosure of any portion thereof is required by Legal Requirement or determined to be necessary
to comply with any Legal Requirement or to the extent the information becomes generally available to the public other than as a
result of disclosure by Purchaser or its Affiliates. On and after the Closing, PHMD shall (and shall cause its Affiliates to) maintain
the confidentiality of all confidential or proprietary information of Purchaser and agree not to, directly or indirectly, disclose
any such confidential or proprietary information except to the extent that disclosure of any portion thereof is required by Legal
Requirement or determined to be necessary to comply with any Legal Requirement or to the extent the information becomes generally
available to the public other than as a result of disclosure by PHMD or its Affiliates. For the avoidance of doubt, upon the Closing,
information relating to the Business is not confidential or proprietary information of the Sellers.

 

Section 10.2         Consent
to Amendments. This Agreement may be amended or modified, and any provisions of this Agreement may be waived, in each case
upon the approval, in writing, executed by, each of the Parties. No other course of dealing between the Parties or any delay in
exercising any rights pursuant to this Agreement shall operate as a waiver of any rights of any Party.

 

Section 10.3         Entire
Agreement. This Agreement, including the Disclosure Letter attached hereto, and the other Transaction Documents constitute
the entire agreement among the Parties with respect to the matters covered hereby and supersedes all previous written, oral or
implied understandings among them with respect to such matters, including, without limitation, that certain Letter of Intent dated
as of April 29, 2015 by and between PHMD and Purchaser, which is hereby terminated and no longer of any further force or effect.

 

Section 10.4         Successors
and Assigns. Except as otherwise expressly provided in this Agreement, all covenants and agreements set forth in this Agreement
by or on behalf of the Parties shall bind and inure to the benefit of the respective successors and permitted assigns of the Parties,
whether so expressed or not, except that neither this Agreement nor any of the rights, interests or obligations hereunder may be
assigned by Purchaser (on the one hand), or PHMD (on the other hand) without the prior written consent of PHMD or the Purchaser,
as applicable. Any attempted assignment without such consent shall be null and void.

 

    	43

    	 

    

 

Section 10.5         Governing
Law; Consent to Jurisdiction; Venue; Waiver of Jury Trial. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE DOMESTIC LAWS OF THE STATE OF NEW YORK FOR CONTRACTS ENTERED INTO AND TO BE PERFORMED IN SUCH STATE WITHOUT GIVING EFFECT TO
ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE
APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING
IN THE COUNTY OF NEW YORK, STATE OF NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT
ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

Section 10.6         No
Additional Representations; Disclaimer.

 

(a)          Purchaser
acknowledges and agrees that neither Seller nor any of their respective Representatives, or any other Person acting on behalf of
either Seller, or any of their respective Representatives, has made any representation or warranty, express or implied, as to the
accuracy or completeness of any information regarding the Business or the Transferred Assets, except as expressly set forth in
this Agreement or as and to the extent required by this Agreement to be set forth in the Disclosure Letter. Purchaser further agrees
that neither Seller, nor any of their direct or indirect Representatives (or any of their directors, officers, employees, members,
managers, partners, agents or otherwise), will have or be subject to any liability to Purchaser resulting from the distribution
to Purchaser, or Purchaser’s use of, any such information, and any information, document or material made available to Purchaser
or its Representatives in certain “data rooms” and online “data sites,” management presentations, management
interviews, or any other form in expectation or anticipation of the transactions contemplated by this Agreement.

 

(b)          Purchaser
acknowledges and agrees that, except for the representations and warranties of PHMD expressly set forth in Article III hereof,
the Transferred Assets are being acquired AS IS WITHOUT ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR INTENDED USE OR
ANY OTHER EXPRESSED OR IMPLIED WARRANTY. Purchaser acknowledges and agrees that it is consummating the transactions contemplated
by this Agreement and the other Transaction Documents without relying on any representation or warranty, express or implied, whatsoever
by the Sellers or any of their Representatives, except for the representations and warranties of PHMD expressly set forth in Article III
hereof.

 

    	44

    	 

    

 

(c)          In
connection with Purchaser’s investigation of the Business, Purchaser has received, directly or indirectly, through its Representatives,
from or on behalf of the Sellers or their Representatives, certain projections, including projected statements of operating revenues,
income from operations, and cash flows of the Business (and the business transactions and events underlying such statements) and
certain business plan information, projections, presentations, predictions, calculations, estimates and forecasts of the Business
and other similar data. Purchaser acknowledges that there are uncertainties inherent in attempting to make such estimates, projections,
forecasts, plans, statements, predictions, presentations, calculations and other similar data, that Purchaser is well aware of
such uncertainties, that Purchaser is making its own evaluation of the adequacy and accuracy of all estimates, projections, forecasts,
plans, statements, calculations, presentations, predictions and other similar data so furnished to it (including the reasonableness
of the assumptions underlying such estimates, projections, forecasts, plans, statements, calculations, predictions and other similar
data), and that neither Purchaser, nor any Purchaser Indemnified Person, shall have any claim under any circumstances against either
Seller or any other Person with respect thereto or arising therefrom. Accordingly, the Sellers make no representations or warranties
whatsoever, to Purchaser or any other Person, with respect to such estimates, projections, forecasts, plans, statements, calculations,
presentations, predictions and other similar data (including the reasonableness of the assumptions underlying such projections,
forecasts, plans, statements, calculations, presentations, predictions and other similar data) and no such Person shall be entitled
to rely on such estimates, projections, forecasts, plans, statements, calculations, presentations, predictions and other similar
data for any purpose, including in connection with the transactions contemplated by this Agreement or the financing thereof.

 

(d)          In
no event shall any of the provisions of Section 10.6(a) through Section 10.6(c) be deemed to modify, qualify amend
or otherwise affect in any manner any of the representations and warranties of PHMD in Article III of this Agreement,
and Purchaser hereby reserves any and all rights that it may have with respect the breach or inaccuracy thereof, subject to the
other limitations set forth in this Agreement.

 

Section 10.7         Notices.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been
duly given when (a) delivered by hand, (b) sent by facsimile, or (c) sent by mail, certified or registered mail
with postage prepaid or by a nationally recognized next-day or overnight delivery service, in each case to the appropriate addresses
and facsimile numbers set forth below (or to such other addresses or facsimile numbers as a Party may designate by notice to the
other Parties). All such notices, consents, waivers and other communications shall be deemed to have been given as follows: (x) if
delivered by hand, on the day of such delivery, if prior to 5:00 p.m., (y) if by mail, certified or registered mail, next-day
or overnight delivery, on the day delivered, and (z) if by facsimile, on the Business Day on which confirmation of successful
transmission is received by the sender.

 

    	45

    	 

    

 

If to the Sellers to:

 

PhotoMedex, Inc.

100 Lakeside Drive, Suite 100

Horsham, Pennsylvania 19044

Facsimile: (215) 619-3209

Attention: President

 

with a copy, which
shall not constitute notice to the Sellers, to:

 

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

Facsimile: (212) 969-2900

Attention: Paul I. Rachlin, Esq.

                 Michael E. Callahan, Esq.

 

If to Purchaser, to:

 

MELA Sciences, Inc.

50 South Buckhout Street, Suite 1

Irvington, New York 10533

Facsimile: (914) 591-3701

Attention: Chief Executive Officer

 

with a copy, which
shall not constitute notice to Purchaser, to:

 

Duane Morris LLP

30 South 17th Street

Philadelphia, Pennsylvania 19103-4196

Facsimile: (215) 689-4382

Attention: Kathleen M. Shay, Esq.

 

Section 10.8         Disclosure
Letter. The Disclosure Letter constitutes a part of this Agreement and is incorporated into this Agreement for all purposes
as if fully set forth herein. Each disclosure made in the Disclosure Letter shall be organized by reference to the Section of this
Agreement to which it applies; provided, that disclosures in the Disclosure Letter with respect to a particular representation
or warranty in Article III of this Agreement shall be deemed to be disclosures made with respect to all representations
and warranties in Article III of this Agreement with respect to which such disclosure reasonably relates if it is readily
apparent that such disclosure would be applicable thereto. Except to the extent that the context otherwise explicitly requires,
the disclosure of any item or matter in the Disclosure Letter shall not in and of itself be taken as an indication of the materiality
thereof or the level of materiality that is applicable to any representation or warranty set forth herein.

 

Section 10.9         Counterparts.
The Parties may execute this Agreement in two or more counterparts (no one of which need contain the signatures of all Parties),
each of which shall be an original and all of which together shall constitute one and the same instrument.

 

    	46

    	 

    

 

Section 10.10         Time
is of the Essence. Purchaser and the Sellers hereby expressly acknowledge and agree that time is of the essence for each and
every provision of this Agreement.

 

Section 10.11         No
Third Party Beneficiaries. Except as otherwise expressly provided in this Agreement, no Person which is not a party shall have
any right or obligation pursuant to this Agreement.

 

Section 10.12         No
Strict Construction. Each Party acknowledges that this Agreement has been prepared jointly by the Parties, and shall not be
strictly construed against any Party.

 

Section 10.13         Headings.
The headings used in this Agreement are for the purpose of reference only and shall not affect the meaning or interpretation of
any provision of this Agreement.

 

Section 10.14         Waiver
of Conflict. Each Party acknowledges that Proskauer Rose LLP (“Proskauer”), counsel for the Seller Companies,
has in the past performed, is now performing and may continue to perform legal services for the Sellers and that, upon the Closing,
Proskauer’s representation of the Foreign Subsidiary (but not the Sellers) shall terminate. Accordingly, each Party hereby
acknowledges that Proskauer may continue to represent the Sellers in any and all matters related to this Agreement or the transactions
contemplated hereby, including any matters that are or may become adverse to the interests of the Foreign Subsidiary and including
claims arising under this Agreement. Effective upon the Closing, Purchaser, on its own behalf and on behalf of the Foreign Subsidiary,
hereby waives any actual or potential conflict of interest that exists or that may exist including, without limitation, any conflict
that exists or may arise by virtue of Proskauer’s possession of any information concerning the Foreign Subsidiary as a result
of Proskauer’s representation of the Sellers or any other Person in any matter involving this Agreement or any other Transaction
Documents.

 

*  *  *  *  *

 

    	47

    	 

    

 

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

 

	 	PURCHASER:
	 	 
	 	MELA SCIENCES, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	SELLERS:
	 	 
	 	PhotoMedex, Inc.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	PhotoMedex TECHNOLOGY, Inc.
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]