Document:

Exhibit 10.24

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of ______ __, 2020, between InVivo Therapeutics Holdings Corp., a Nevada
corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act
of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each
Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in
this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(l).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to
be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential
employee”  or any other similar orders or restrictions or the closure of any physical branch locations at the direction
of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks
in The City of New York generally are open for use by customers on such day.

 

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

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and
(ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event
later than the second (2nd) Trading Day following the date hereof.

 

     

     

    

  

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

 

“Common
Stock” means the common stock of the Company, par value $0.00001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Company
Counsel” means (i) Ballard Spahr LLP, Nevada legal counsel to the Company, dated as of such Closing Date, and (ii) Wilmer
Cutler Pickering Hale and Dorr LLP, Boston, Massachusetts, 02109.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disclosure
Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York
City time) and before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day
immediately following the date hereof, unless otherwise instructed as to an earlier time by the Placement Agent, and (ii) if
this Agreement is signed between midnight (New York City time) and 9:00 a.m. (New York City time) on any Trading Day, no later
than 9:01 a.m. (New York City time) on the date hereof, unless otherwise instructed as to an earlier time by the Placement
Agent.

 

“EGS”
means Ellenoff Grossman & Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105-0302.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(t).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock, options or other equity awards to employees, officers
or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by the Board of Directors or a
committee thereof for services rendered to the Company, (b) securities upon the exercise or exchange of or conversion of any
Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock
issued and outstanding on the date of this Agreement or upon exercise or vesting of options or other equity awards granted to employees,
officers or directors of the Company pursuant to stock incentive plans, provided that such securities have not been amended since
the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities,
(c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors
of the Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144) and
carry no registration rights that require or permit the filing of any registration statement in connection therewith during the
prohibition period in Section 4.11(a) herein, and provided that any such issuance shall only be to a Person (or to the
equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business
synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment
of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital
or to an entity whose primary business is investing in securities, and (d) up to $________ of Securities, including Shares,
Series A Warrants, and Series B Warrants issued to other purchasers pursuant to the Prospectus concurrently with the
Closing at the Per Share Purchase Price or the Pre-Funded Warrant Purchase Price.

 

     

     

    

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(ee).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(ee).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(cc).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(q).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(l).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Per
Share Purchase Price” equals $____, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

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

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(ee).

 

     

     

    

 

“Placement
Agent” means H.C. Wainwright & Co., LLC.

 

“Pre-Funded
Warrant Purchase Price” means the Per Share Purchase Price minus $0.00001.

 

“Preliminary
Prospectus” means any preliminary prospectus included in the Registration Statement, as originally filed or as part of
any amendment thereto.

 

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

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement on Form S-1 with Commission File No. 333-236572 which
registers the sale of the Shares, the Warrants and the Warrant Shares to the Purchasers.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(j).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Series A
Warrants” means, collectively, the Series A Common Stock purchase warrants delivered to the Purchasers at the Closing
in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable immediately and have a term of exercise
equal to five years, in the form of Exhibit A-1 attached hereto.

 

“Series B
Warrants” means, collectively, the Series B Pre-Funded Common Stock purchase warrants delivered to the Purchasers
at the Closing in accordance with Section 2.2(a) hereof, which Series B Warrants shall be exercisable immediately
and have a term of exercise equal to ten years, in the form of Exhibit A-2 attached hereto.

 

     

     

    

 

“Shares”
means the shares of Common Stock issued or issuable to certain Purchasers pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but
shall not be deemed to include locating and/or borrowing shares of Common Stock).

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for (i) Shares and Series A Warrants,
and/or (ii) Series B Warrants and Series A Warrants purchased hereunder as specified below such Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars
and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(d), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or
the New York Stock Exchange (or any successors to any of the foregoing).

 

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

 

“Transfer
Agent” means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing
address of 1 State Street 30th Floor, New York, NY 10004,and any successor transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.11(b).

 

“Warrants”
means, collectively, the Series A Warrants and the Series B Warrants.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

     

     

    

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, up to an aggregate of $_______ of Shares and Series A Warrants; provided, however, that,
to the extent that a Purchaser determines, in its sole discretion, that such Purchaser (together with such Purchaser’s Affiliates,
and any Person acting as a group together with such purchaser or any of such Holder’s Affiliates) would beneficially own
in excess of the Beneficial Ownership Limitation, or as such Purchaser may otherwise choose, in lieu of purchasing Shares and Series A
Warrants such Purchaser may elect to purchase Series B Warrants and Series A Warrants in lieu of Shares and Series A
Warrants in such manner to result in the same aggregate purchase price less the aggregate exercise price of such Series B
Warrants being paid by such Purchaser to the Company. The “Beneficial Ownership Limitation” shall be 4.99% (or,
at the election of the Purchaser at Closing, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of the Securities on the Closing Date. Each Purchaser’s Subscription Amount as set forth on the signature
page hereto executed by such Purchaser shall be made available for “Delivery Versus Payment” settlement with the
Company or its designee. The Company shall deliver to each Purchaser its respective Shares or Series B Warrants (as applicable
to such Purchaser) and Series A Warrants as determined pursuant to Section 2.2(a), and the Company and each Purchaser
shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and
conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of EGS or such other location as the parties
shall mutually agree. Unless otherwise directed by the Placement Agent, settlement of the Shares shall occur via “Delivery
Versus Payment” (“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the
Purchasers’ names and addresses and released by the Transfer Agent directly to the account(s) at the Placement Agent
identified by each Purchaser; upon receipt of such Shares, the Placement Agent shall promptly electronically deliver such Shares
to the applicable Purchaser, and payment therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer
to the Company). Notwithstanding the foregoing, with respect to any Notice(s) of Exercise (as defined in the Series A
Warrants and Series B Warrants, as applicable) delivered on or prior to 12:00 p.m. (New York City time) on the Closing
Date, which may be delivered at any time after the time of execution of this Agreement, the Company agrees to deliver the Warrant
Shares subject to such notice(s) by 4:00 p.m. (New York City time) on the Closing Date against payment therefor and the
Closing Date shall be the Warrant Share Delivery Date (as defined in the Series A Warrants and Series B Warrants, as
applicable) for purposes hereunder. Each Purchaser acknowledges that, concurrently with the Closing and pursuant to the Prospectus,
the Company may sell up to $______ of additional Securities to purchasers not party to this Purchase Agreement, and will issue
to each such purchaser such additional Shares and Series A Warrants or Series B Warrants and Series A Warrants in
the same form and at the same Per Share Purchase Price or Pre-Funded Warrant Purchase Price.

 

2.2           Deliveries.

 

(a)            On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)            this
Agreement duly executed by the Company;

 

(ii)           legal
opinions of Company Counsel, and each opinion in form and substance satisfactory to the Placement Agent;

 

     

     

    

 

(iii)          subject
to the second-to-last sentence of Section 2.1, the Company shall have provided each Purchaser with the Company’s wire
instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)          subject
to the second-to-last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the
Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”)
Shares equal to the portion of such Purchaser’s Subscription Amount applicable to Shares divided by the Per Share Purchase
Price, registered in the name of such Purchaser;

 

(v)           for
each Purchaser of Series B Warrants pursuant to Section 2.1, a Series B Warrant registered in the name of such Purchaser
to purchase up to a number of shares of Common Stock equal to the portion of such Purchaser’s Subscription Amount applicable
to Series B Warrants divided by the Per Share Purchase Price, with an exercise price equal to $0.00001, subject to adjustment
therein;

 

(vi)          a
Series A Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100%
of such Purchaser’s Shares or Series B Warrants, with an exercise price equal to $___, subject to adjustment therein;
and

 

(vii)         the
Prospectus (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)            On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company, the following:

 

(i)            this
Agreement duly executed by such Purchaser; and

 

(ii)           such
Purchaser’s Subscription Amount with regard to the Shares and Series A Warrants purchased by such Purchaser, which shall
be made available for “Delivery Versus Payment” settlement with the Company or its designee; and

 

(iii)         (ii)     such
Purchaser’s Subscription Amount with regard to the Series B Warrants and Series A Warrants purchased by such Purchaser,
if any, minus an amount of $0.00001 per Series B Warrant purchased by such Purchaser, by wire transfer to the account specified
by the Company in Section 2.2(a)(iii) above, or as otherwise agreed by the Company and the Placement Agent.

 

2.3            Closing
Conditions.

 

(a)            The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)            the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

     

     

    

 

(ii)           all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii)          the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)            The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)            the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)           all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(iii)          the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)          there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)           from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

     

     

    

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1            Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a)           Securities
Law Filings. The Company has filed with the Commission the Registration Statement under the Securities Act, which was filed
on October 6, 2020 and declared effective on [________], 2020 for the registration of the Securities under the Securities
Act. Following the determination of pricing of the Securities, the Company will file with the Commission pursuant to Rules 430A
and 424(b) under the Securities Act, and the rules and regulations (the “Rules and Regulations”)
of the Commission promulgated thereunder, the Prospectus, their respective pricings and the plan of distribution thereof and will
advise the Purchasers of all further information (financial and other) with respect to the Company required to be set forth therein.
The “Time of Sale Disclosure Package” shall mean the Preliminary Prospectus, any subscription agreement between
the Company and the Purchasers, and any issuer free writing prospectus as defined in Rule 433 of the Act (each, a “Company
Free Writing Prospectus”), if any, that the Company and the Placement Agent expressly agree in writing to treat as part
of the Time of Sale Disclosure Package, and “any Prospectus” shall mean, as the context requires, the Preliminary
Prospectus, the Prospectus, and any supplement to either thereof. Any reference in this Agreement to the Registration Statement,
the Preliminary Prospectus, the Time of Sale Disclosure Package or the Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein (the “Incorporated Documents”), if any, which were or are filed under the
Exchange Act, at any given time, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement, the Preliminary Prospectus, the Time of Sale Disclosure
Package or the Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act after the date
of this Agreement, or the issue date of the Preliminary Prospectus, the Time of Sale Disclosure Package or the Prospectus, as the
case may be, deemed to be incorporated therein by reference. All references in this Agreement to financial statements and schedules
and other information which is “contained,” “included,” “described,” “referenced,”
 “set forth” or “stated” in the Registration Statement, the Preliminary Prospectus, the Time of Sale Disclosure
Package or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Preliminary
Prospectus, the Time of Sale Disclosure Package or the Prospectus, as the case may be. As used in this paragraph and elsewhere
in this Agreement. The Company has not received any notice that the Commission has issued or intends to issue a stop order suspending
the effectiveness of the Registration Statement or the use of the Preliminary Prospectus or the Time of Sale Disclosure Package
or intends to commence a proceeding for any such purpose.

 

     

     

    

 

(b)           Assurances.
The Registration Statement, as amended, (and any further documents to be filed with the Commission) contains all exhibits and schedules
as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it
became effective, complied in all material respects with the Securities Act and the applicable Rules and Regulations and did
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. The Preliminary Prospectus, and the Prospectus, each as of its respective date,
comply or will comply in all material respects with the Securities Act and the applicable Rules and Regulations. Each of the
Preliminary Prospectus and the Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations promulgated
thereunder, and none of such documents, when they were filed with the Commission, contained any untrue statement of a material
fact or omitted to state a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated
by reference in the Preliminary Prospectus or Prospectus), in light of the circumstances under which they were made not misleading.
No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent,
individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission.
Except for this Agreement, there are no documents required to be filed with the Commission in connection with the transaction contemplated
hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite
time period. Except for this Agreement, there are no contracts or other documents required to be described in the Preliminary Prospectus
or Prospectus, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as
required.

 

(c)           Offering
Materials. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior
to each Closing Date, any offering material in connection with the offering of the Securities hereunder other than the Time of
Sale Disclosure Package.

 

(d)           Subsidiaries.
All of the direct and indirect subsidiaries of the Company (the “Subsidiaries”) are set forth on Schedule
3.1(d). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free
and clear of any Liens), and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and
are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(e)            Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no action, claim, suit, investigation
or Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

     

     

    

  

(f)            Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement, each of the other Transaction Documents, and the Time of Sale Disclosure Package and otherwise to carry out
its obligations hereunder and thereunder. The execution and delivery of this Agreement and the other Transaction Documents by the
Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s
stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This
Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

(g)           No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby,
thereby and by the Time of Sale Disclosure Package do not and will not (i) conflict with or violate any provision of the Company’s
or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, 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, result in the
creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination,
amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or
affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary
is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably
be expected to result in a Material Adverse Effect.

 

     

     

    

 

(h)           Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the
filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus, (iii) application(s) to
each applicable Trading Market for the listing of the Shares and Warrant Shares for trading thereon in the time and manner required
thereby, and (iv) such filings as are required to be made under applicable state securities laws (collectively, the “Required
Approvals”).

 

(i)            Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the Prospectus,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company, other than restrictions
on transfer provided for in the Transaction Documents. The Warrant Shares, when issued and paid for in accordance with the terms
of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The
Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the
Prospectus.

 

(j)            Capitalization.
The capitalization of the Company as of the date hereof is as set forth on Schedule 3.1(j), which Schedule 3.1(j) shall
also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date
hereof. The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other
than pursuant to the exercise of employee stock options under the Company’s equity incentive plans, the issuance of shares
of Common Stock to employees pursuant to the Company’s employee stock purchase plans and Common Stock Equivalents outstanding
as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement and the transactions
contemplated by the Preliminary Prospectus. Except as disclosed in the Time of Sale Disclosure Package and the Prospectus with
respect to the Company’s equity incentive plans and employee stock purchase plans, and except as a result of the purchase
and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional
shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities
will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the
Purchasers). There are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts
the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company
or any Subsidiary. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any outstanding stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding
shares of capital stock of the Company are duly authorized. All of the outstanding shares of capital stock of the Company are validly
issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

     

     

    

  

(k)           SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with
the Prospectus and any prospectus supplement, being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for
the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments.

 

(l)            Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as set forth on Schedule 3.1(l), (i) there has been no event, occurrence or development
that has had or that could reasonably be expected to result in: (i) a material adverse effect on the legality, validity or
enforceability of this Agreement or any other agreement entered into between the Company and the Purchasers, (ii) a material
adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and
the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations under this Agreement or the transactions contemplated by the Prospectus (any of (i),
(ii) or (iii), a “Material Adverse Effect”), (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with
past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans and shares issued as a
result of rounding in connection with the Company’s reverse stock split effected on February 11, 2020. The Company does
not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities
contemplated by this Agreement or as set forth on Schedule 3.1(l), no event, liability, fact, circumstance, occurrence or
development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries
or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed
by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
disclosed at least one Trading Day prior to the date that this representation is made.

 

     

     

    

 

(m)          Litigation.
Except as set forth on Schedule 3.1(m), there is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity
or enforceability of any of the Transaction Documents or the transactions contemplated by the Time of Sale Disclosure Package or
the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any
Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

 

(n)           Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. No executive officer of the Company or any Subsidiary, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all applicable U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

     

     

    

  

(o)           Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor
has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of
any court, arbitrator or governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(p)           Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the Time of Sale
Disclosure Package, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

 

(q)           Title
to Assets. The Company and the Subsidiaries do not own any real property and have good and marketable title, or have valid
and marketable rights to lease or otherwise use, all real property and all personal property that is material to the business of
the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens described in the Registration
Statement, (ii) Liens as do not materially affect the value of such property and do not materially interfere with the use
made and proposed to be made of such property by the Company and the Subsidiaries and (iii) Liens for the payment of federal,
state or other taxes, for which appropriate reserves have been made in accordance with GAAP, and the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are
held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all
material respects.

 

     

     

    

 

(r)            Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property
rights and similar rights necessary or material for use in connection with their respective businesses as described in the SEC
Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date
of the latest audited financial statements included within the SEC Reports, a notice (written or otherwise) of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not
have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there
is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have
taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except
where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(s)            Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

(t)            Transactions
With Affiliates and Employees. Except as set forth on Schedule 3.1(t), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for: (i) payment of salary, bonus or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including equity award agreements under
any equity incentive plan of the Company.

 

     

     

    

 

(u)           Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations
promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to provide reasonable assurance
that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s
certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures of the Company and
the Subsidiaries as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over
financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected,
or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(v)           Certain
Fees. Except as set forth in the Preliminary Prospectus, or as provided for hereunder, no brokerage or finder’s fees
or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by this Agreement and the transactions contemplated
by the Preliminary Prospectus. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by this Agreement and the transactions contemplated by the Preliminary Prospectus.

 

(w)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

     

     

    

 

(x)            Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary, other than those rights that have been disclosed on Schedule 3.1(x) or
have been waived or satisfied.

 

(y)            Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as set forth on Schedule 3.1(y), the Company has not, in the 12 months preceding the
date hereof, received notice from the Trading Market on which the Common Stock is or has been listed or quoted to the effect that
the Company is not in compliance with the listing or maintenance requirements of the Trading Market. The Common Stock is currently
eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company
is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection
with such electronic transfer.

 

(z)            Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and
the Company fulfilling their obligations or exercising their rights under this Agreement and the transactions contemplated by the
Prospectus, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’
ownership of the Securities.

 

(aa)         Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by this Agreement and the transactions
contemplated by the Preliminary Prospectus, the Company confirms that neither it nor any other Person acting on its behalf has
provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute
material, non-public information which is not otherwise disclosed in the Time of Sale Disclosure Package. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and, its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules, is true and correct in all
material respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press
releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company
acknowledges and agrees that no Purchaser makes or has made any representations or warranties transactions contemplated hereby
other than those specifically set forth in Section 3.2 hereof.

 

     

     

    

 

(bb)        No
Integrated Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause the offering of securities hereunder to be integrated with prior offerings by the Company for purposes of any applicable
shareholder approval provisions of any trading market on which any of the securities of the Company are listed or designated.

 

(cc)         Solvency.
Based on the consolidated financial condition of the Company as of each Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets
exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and
capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to
incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt). Except as disclosed on Schedule 3.1(cc), the Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. Schedule 3.1(cc) sets forth as of the date hereof all outstanding secured
and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the
purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed
in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties,
endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected
in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease
payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

 

(dd)        Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to
be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the
Company or of any Subsidiary know of no basis for any such claim.

 

     

     

    

 

(ee)         Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made
any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or
made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(ff)          Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to
each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(gg)        Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(f) and 4.13 hereof), it is understood and acknowledged by the Company that: (i) none of the
Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or
short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold
the Securities for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future
private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) any
Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly,
presently may have a “short” position in the Common Stock, and (iv) each Purchaser shall not be deemed to have
any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company
further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during
the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Warrant
Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce
the value of the existing stockholders' equity interests in the Company at and after the time that the hedging activities are
being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any
of the Transaction Documents.

 

     

     

    

 

 

(hh)        FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal
Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating
to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good
laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports,
except where the failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the
Company's knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding,
charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries
has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests
the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging
of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval
of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional
materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company
or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters
or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise
alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually
or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company have been and
are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. 
The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States
of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving
or clearing for marketing any product being developed or proposed to be developed by the Company.

 

(ii)           Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in
accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the
fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law.
No stock option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted,
and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly
coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company
or its Subsidiaries or their financial results or prospects.

    

     

    

 

(jj)           Accountants.
RSM US LLP (the “Company Auditor”) is an independent registered public accounting firm as required by the Exchange
Act. The Company Auditor has not, during the periods covered by the financial statements included in the Prospectus, provided
to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

 

(kk)         Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation
paid to the Company’s placement agent in connection with the placement of the Securities.

 

(ll)           Office
of Foreign Assets Control. Neither the Company nor any Subsidiary, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(mm)       U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(nn)        Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

 

(oo)        Reliance.
The Company acknowledges that the Purchaser will rely upon the accuracy and truthfulness of the foregoing representations
and warranties and hereby consents to such reliance.

    

     

    

 

3.2          Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they
shall be accurate as of such date):

 

(a)           Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar
as indemnification and contribution provisions may be limited by applicable law.

 

(b)           Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation
and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise
in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the
ordinary course of its business.

 

(c)           Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it exercises any Warrants, it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act.

 

(d)           Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)           Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents and the SEC
Reports and has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers
from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and
risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense
that is necessary to make an informed investment decision with respect to the investment.  Such Purchaser acknowledges and
agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such Purchaser with any information
or advice with respect to the Securities nor is such information or advice necessary or desired.  Neither the Placement Agent
nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities and the Placement Agent
and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser agrees need not be
provided to it.  In connection with the issuance of the Securities to such Purchaser, neither the Placement Agent nor any
of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

    

     

    

 

(f)            Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any
purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material pricing terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.
Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the
investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation
set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such
Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors,
employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection
with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance
of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating
or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

The Company acknowledges and agrees that
the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely
on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained
in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing
shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1          Warrant
Shares. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover
the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant
to any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement
(or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or is not otherwise
available for the sale or resale of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing
that such registration statement is not then effective and thereafter shall promptly notify such holders when the registration
statement is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the
foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in compliance
with applicable federal and state securities laws). The Company shall use best efforts to keep a registration statement (including
the Registration Statement) registering the issuance or resale of the Warrant Shares effective during the term of the Warrants.

    

     

    

 

4.2          Furnishing
of Information. Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired,
the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all
reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then
subject to the reporting requirements of the Exchange Act.

 

4.3          Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the
rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such
other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4          Securities
Laws Disclosure; Publicity. The Company shall (a) by the Disclosure Time, issue a press release disclosing the material
terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction
Documents as exhibits thereto, with the Commission within the time required by the Exchange Act; provided, that the Company shall
not be required to file the Transaction Documents on Form 8-K if the Transaction Documents were previously filed as exhibits
to the Registration statement on a pre-effective or post-effective amendment to the Registration Statement. From and after the
issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public
information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective
upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other
hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing any press releases (other than
the press release referred to in the first sentence of this Section 4.4 and a press release announcing consummation of the
transactions contemplated hereby (subject to the last sentence of this Section 4.4)) with respect to the transactions contemplated
hereby, and neither the Company nor any Purchaser shall issue any such other press release nor otherwise make any such public
statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent
of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed,
except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior
notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name
of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market,
without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with
the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or
Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted
under this clause (b).

    

     

    

4.5          Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that
any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted
by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of
receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.6          Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other
Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the
Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented
to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.7          Use
of Proceeds. Except as set forth on Schedule 4.7 attached hereto, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes and shall not use such proceeds: (a) for the satisfaction of any
portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business
and prior practices), (b) for the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement
of any outstanding litigation or (d) in violation of FCPA or OFAC regulations.

    

     

    

 

4.8          Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and
its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers,
shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any
action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder
of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder
or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is
finally judicially determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly
notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser
Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action
there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company
and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses
of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for
any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable
to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser
Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8 shall be
made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received
or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any
Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

    

     

    

4.9          Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company
to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10        Listing
of Common Stock. The Company hereby agrees to use reasonable best efforts to maintain the listing or quotation of the Common
Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list
or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and
Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any
other Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other
action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly
as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock
on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic
transfer through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely
payment of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic
transfer.

 

4.11        Subsequent
Equity Sales.

 

(a)            From
the date hereof until ninety (90) days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into
any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.

 

(b)            From
the date hereof until the one (1) year anniversary of the Closing Date, the Company shall be prohibited from effecting or
entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents
(or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means
a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable
or exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares
of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise
or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security
or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the
market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited
to, an equity line of credit, whereby the Company may issue securities at a future determined price; provided, however, that,
after the 90th day following the Closing Date, the Company’s issuance of shares of Common Stock pursuant to an at-the-market offering
facility with the Placement Agent shall not be deemed a Variable Rate Transaction hereunder. Any Purchaser shall be entitled to
obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to
collect damages.

    

     

    

(c)            Notwithstanding
the foregoing, this Section 4.11 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction
shall be an Exempt Issuance.

 

4.12        Equal
Treatment of Purchasers. No consideration (including any modification Transaction Document) shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is also
offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right granted
to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers
as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

 

4.13        Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers, covenants
that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the
initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and
terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding the foregoing and notwithstanding
anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser
makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the
Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial
press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions
in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no
Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries
after the issuance of the initial press release as described in Section 4.4.  Notwithstanding the foregoing, in the
case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of
such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement.

 

4.14        Capital
Changes. Until the six-month anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split
or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of
the Shares and Pre-Funded Warrant Shares, except to the extent required to enable the Company to comply (i) with required
listing standards of the Company’s Trading Market or (ii) with the initial listing requirements promulgated from time
to time by another Trading Market as determined in good faith by the Company.

    

     

    

4.15        Exercise
Procedures. The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required of the
Purchasers in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of the Purchasers to exercise their Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall
be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be
required in order to exercise the Warrants. The Company shall honor exercises of the Warrants and shall deliver Warrant Shares
in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

ARTICLE V.

MISCELLANEOUS

 

5.1         Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before the fifth (5th) Trading Day following the date hereof; provided, however,
that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2          Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company
and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery
of any Securities to the Purchasers.

 

5.3          Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Preliminary Prospectus and the
Prospectus, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede
all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

 

5.4          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is
delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached
hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as
set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to
be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. To
the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information
regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K.

    

     

    

  

5.5          Amendments;
Waivers. 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 Company and Purchasers which purchased at least 50.1% in interest of the Securities based
on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived
provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser
(or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required.
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.
Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser
relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely
affected Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder
of Securities and the Company.

 

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

 

5.7          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8          No
Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and warranties
of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this
Section 5.8.

 

5.9          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents 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. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (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. Each party 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 (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action
or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence
an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company
under Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such Action or Proceeding.

    

     

    

5.10        Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11        Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.12        Severability.
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.

 

5.13        Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that, in
the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common
Stock subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate exercise price
paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such
Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

    

     

    

5.14        Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15        Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.16         Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17        Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through EGS. EGS does not represent any of the
Purchasers and only represents the Placement Agent. The Company has elected to provide all Purchasers with the same terms and
Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.
It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is
between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among
the Purchasers.

    

     

    

5.18        Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.19        Saturdays,
Sundays, Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

 

5.20        Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition,
each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that
occur after the date of this Agreement.

 

5.21        WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(Signature Pages Follow)

    

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

 

	INVIVO THERAPEUTICS HOLDINGS CORP.

         

         
	 	Address for Notice:
	By:
	 

        

        

        
	 	 

        

        

	 	Name:	 	E-Mail:
	 	Title:	 	Fax:
	 	 	 
	With a copy to (which shall not constitute notice):	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

    

     

    

 

[PURCHASER SIGNATURE PAGES TO NVIV
SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Name of Purchaser: _________________________________________________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: ___________________________________________________________________________

 

Name of Authorized Signatory: _________________________________________________________________________________________

 

Title of Authorized Signatory: __________________________________________________________________________________________

 

Email Address of Authorized Signatory:
__________________________________________________________________________________

 

Facsimile Number of Authorized Signatory: ________________________________________________________________________________

 

Address for Notice to Purchaser:

 

Address for Delivery of Securities to Purchaser (if not same
as address for notice):

 

Subscription Amount: $_________________

 

Shares: _________________

 

	Series B Warrants:______________	Beneficial
Ownership Blocker o 4.99% or o 9.99%

 

	Series A Warrants:______________	Beneficial
Ownership Blocker o 4.99% or o 9.99%

 

EIN Number: _______________________

 

[SIGNATURE PAGES CONTINUE]Exhibit 10.35

 

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT

AGREEMENT

 

This AMENDED AND
RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement"), is made and entered June 29, 2020 (the "Effective
Date"), by and between ORGANICELL REGENERATIVE MEDICINE, a Nevada corporation, (the "Company")
and ALBERT MITRANI, an individual (the "Executive").

 

RECITALS

 

WHEREAS, the
Company and the Executive have heretofore entered into an Employment Agreement, made and entered into effective as of April 13,
2018 (the "Original Employment Agreement"), pursuant to which the Company employed the Executive; and

 

WHEREAS, in
connection with the Company's continued employment of the Executive, the Company and the Executive wish to modify and amend certain
terms of the Executive's employment by the Company and in connection therewith, restate the Original Employment Agreement in its
entirety by entering into this Agreement.

 

AGREEMENT

 

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

 

1.             
Recitals. The above recitals are true and correct and are incorporated herein by reference.

 

2.             
Position and Duties. The Executive shall serve as Acting Chief Executive Officer, President and Chief
Operating Officer of the Company reporting to the Company's board of directors (the "Board"). The Executive shall
perform those services customary to those offices and such other lawful duties that may be reasonably assigned to him from time
to time by the Board, provided those duties are consistent with the Executive's position and authority. The Executive further
agrees to use his best efforts to promote the interests of the Company and to devote his full business time and energies to the
business and affairs of the Company.

 

3.             
Term. The Company shall continue to employ the Executive and the Executive shall continue to serve the
Company, on the terms and conditions set forth herein, for the period commencing on the Effective Date and expiring on the December
31, 2025, unless this Agreement is sooner terminated as set forth herein (the "Initial Term"). This Agreement
shall automatically renew for successive three (3) year periods (each, a "Renewal Term," and together with the
Initial Term, the "Term"), unless either party give notice of non-renewal of this Agreement at least sixty (60)
days prior to expiration of the Initial Term or any Renewal Term, or unless this Agreement is sooner terminated as set forth herein.

 

3.               Compensation
and Related Matters.

 

(a)         
Base Salary. The Executive's annual base salary shall be three hundred thousand dollars ($300,000), retroactive to
January 1, 2019 (together with any subsequent increases thereto as hereinafter provided, the "Base Salary"),
including the salary adjustments described below in 3(b) below.

 

(b)          The
Executive's Base Salary shall be increased upon such time that the Company achieves monthly revenues in the amounts provided below,
provided such monthly revenue increase occurs for four consecutive months ("Revenue Milestone"). Upon the achievement
of the defined Revenue Milestone, the salary adjustment will be retroactive to the first month in which the salary threshold was
met. Any adjustment pursuant to this provision shall not be reduced for any future reduction in revenues that may occur.

 

 

 

    	 	1	 

     

    

 

	Monthly Revenues (in 
 millions)	Base Salary 
 Increase
	$	1.00	 	$	130,000	 
	$	1.50	 	$	200,000	 
	$	2.00	 	$	275,000	 
	$	3.50	 	$	630,000	 
	$	5.00	 	$	900,000	 

 

 

(c)           $162,500
of the Base Salary ("Original Base Salary") shall be payable in accordance with the Company's normal payroll procedures
in effect from time to time. Any Base Salary amount in excess of the Original Base Salary shall only be paid only upon there being
sufficient available cash and when payable, shall be in accordance with the Company's normal payroll procedures in effect from
time to time.

 

(d)          
Beginning July 1, 2020, at the sole option of the Executive, any portion of unpaid Original Base Salary for periods
after January 1, 2020, including unpaid bonus salary, may be converted by Executive into common stock of the Company at a conversion
rate equal to the average trading price during the month in which the accrued salary pertains. For any unpaid Original Base Salary
that existed prior to January 1, 2020, including unpaid bonus salary, the amounts may be converted at a conversion price using
the closing trading price of the stock on the last trading day in December 2019.

 

Beginning December
1, 2020, at the sole option of the Executive, all unpaid Base Salary in excess of the Original Base Salary ("Incremental Salary")
for periods after January 1, 2020 may be converted by the Executive into common stock of the Company at a conversion rate equal
to the average trading price during the month in which the accrued salary pertains. For any unpaid Incremental Salary that existed
prior to January 1, 2020, the amounts may be converted at a conversion price using the closing trading price of the stock on the
last trading day in December 2019.

 

Until such
time as the Executive elects to convert, the accrued and unpaid salary, including Original Base Salary and Incremental Salary shall
remain an obligation of the Company.

 

(e)           
In addition to the foregoing, the Base Salary may be increased by the Board or its compensation committee (the "Committee"),
if any, from time to time during the Term, but shall be reviewed by the Board or the Committee, if any, at least annually.

 

(f)           Annual
Bonus. During the Term, the Executive may be paid a performance bonus to the extent earned, based on criteria
established by the Board or the Committee from time to time during the Term (the "Bonus"). The amount of any
Bonus and the performance criteria for earning the Bonus, if any for any subsequent fiscal year shall be determined by the Board
or the Committee, in good faith, no later than sixty (60) days after the commencement of the relevant fiscal year. The Executive's
Bonus for a bonus period shall be determined by the Board or the Committee after the end of the applicable bonus period and be
paid to the Executive in the year following the year to which the Bonus relates when annual bonuses for that year are paid to
other senior executives of the Company generally.

 

(g)          Performance
Plan Incentives. During the Term, the Executive will be entitled to participate in the Company's Management and
Consultants Performance Stock Plan (the "MCPP"). The MCPP shall provide the Executive fully vested shares of common
stock of the Company based on the achievement of certain defined operational performance milestones as determined by the
Board ("Milestones"), during the Term of the Agreement and for a period of thirty-six (36) months after the
expiration or earlier termination of the Agreement, provided that expiration or termination is not for "Cause" or
the Executive's Non-Renewal of the Agreement.

 

 

 

    	 	2	 

     

    

 

(h)          Tax
True-up. During the Term, the Executive will be entitled to receive additional compensation equal to the amount of personal
income tax that the Executive is required to pay in connection with federal and or state income taxes associated with any equity
award granted to the Executive during the Executive's employment with the Company ("Tax True-up"), provided however
that the amount of the Tax True-up shall only be provided to the extent of any shortfall in the amount of proceeds that the Executive
is reasonably able to obtain through timely liquidation of the associated equity award that is subject to income taxes through
non-distressed open market sales or loans obtained by Executive secured by such equity award. The Company shall provide the additional
cash compensation to the Executive in a timely manner in order to allow Executive the ability to timely make the Executive's required
income tax payments.

 

In addition
to the above, the Company will also reimburse Executive for any incremental taxes (excluding income taxes) which the Executive
is liable as a result of the Company not paying its applicable portion of payroll related taxes associated with compensation paid
to Executive.

 

(i)            Commissions.
During the Term, the Executive shall be entitled to receive commissions equal to five percent (5%) of "Net Sales"
on all sales of the Company's products directly attributable to him. As used in this Agreement, "Net Sales"
means that amount actually paid by the Company's customers for its products, excluding returns, cost of goods sold (including
freight-in and freight out) and all allowances, rebates and discounts, including but not limited to volume discounts, early payment
discounts, promotional discounts and other discounts approved by the Company. Commissions earned during each calendar month shall
be calculated and paid to the Executive within twenty (20) days after the end of such calendar month.

 

(j)            Car
and Mileage Allowance. During the Term (and retroactive to January 1, 2020), the Company shall pay the
Executive a monthly car and mileage allowance of up to two thousand dollars ($2,000) based on actual costs incurred (which
may be increased by the Board or the Committee in their sole discretion).

 

(k)           Cellular
Telephone and Internet Service Allowance. During the Term (and retroactive to January 1, 2020), the Company the Company
shall reimburse the Executive for costs associated with (i) the Executive's use of multiple cellular telephones at Executive's
cost and expense; and (ii) the Executive's monthly interne service in an amount of up to two hundred dollars ($200).

 

(l)            Business
Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable pre-approved business
expenses incurred by him in performing services hereunder, in accordance with the policies and procedures then in effect and established
by the Company for its senior executive officers. Partially or wholly in the alternative, the Company may furnish the Executive
with a Company credit card on which he may charge all authorized business expenses.

 

(m)          Life
Insurance. The Executive shall be entitled to receive prompt reimbursement for Executive's costs to obtain individual
life insurance on himself, in an amount of $1,000,000, which shall contain customary coverage provisions. The beneficiary of the
life insurance shall be to the Executive's designee.

 

(n)           Directors'
and Officers' Liability Insurance. Promptly following the Effective Date, the Company shall use commercially reasonable
efforts to secure Directors' and Officers' Liability Insurance in an amount not less than $1,000,000, which shall contain customary
coverage for the Executive. The Company shall maintain such coverage in effect during the Term as long as it can be secured at
commercially reasonable cost.

 

 

 

    	 	3	 

     

    

 

(o)           Other
Benefits. The Executive (including Executive's spouse and dependents) shall be eligible to participate in the employee
benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company,
including, without limitation, the Company's group medical, dental, vision, disability, life insurance, and flexible-spending
account plans.

 

If during anytime throughout
the Term (and retroactive to January 1, 2020), the Company does not provide Executive with acceptable health, dental and/or vision
insurance coverage, the Executive shall be entitled to obtain and the Company shall reimburse the Executive for all costs associated
with such health, dental and/or vision insurance paid by Executive.

 

(p)           Vacation
and Personal Time Off.

 

(i)       The
Executive shall be entitled to four (4) weeks of vacation during each year of the Term, which shall accrue at the rate of one
(1) week for each consecutive three (3) month period. The Executive shall take vacation time at such times as the Executive
may select, and the affairs of the Company may permit.

 

(ii)       The
Executive shall also be entitled to ten (10) personal days of personal time off during each year of the Term or such greater number
of days of personal time off as may be afforded employees generally under the Company's policy in effect from time to time during
the Term.

 

(iii)      Vacation and personal time off days shall be taken by the Executive without loss of compensation or other benefits
to which he is entitled under this Agreement. Unused vacation or personal days at the end of each year of the Term shall accrue
and be carried over to the subsequent year but shall not be paid out to the Executive in any circumstance, including termination
of the Executive's employment for any reason.

 

(q)          Withholding.
All amounts payable to the Executive under this Section 3 shall be subject to all required federal, state and local withholding,
payroll and insurance taxes.

 

(r)           Board
Discretion. Nothing in this Section 3 shall obligate the Board to implement any particular benefit plan or prevent
the Board from amending or terminating any benefit plan implemented.

 

4.               Termination.
The Executive's employment may be terminated and this Agreement terminated under the following circumstances:

 

(a)           Death.
The Executive's employment hereunder shall terminate upon his death.

 

(b)          
Disability. The Company may terminate the Executive's employment if the Executive becomes subject to
a Disability. For purposes of this Agreement, "Disability" means the Executive is unable to perform the essential
functions of his position, with or without a reasonable accommodation, for a period of one hundred twenty (120) consecutive calendar
days or one hundred eighty (180) non-consecutive calendar days within any rolling twelve (12) month period because of physical,
mental, or emotional incapacity, resulting from injury, sickness, or disease, as determined by the Executive's physician (or his
guardian).

 

 

 

    	 	4	 

     

    

 

(c)           Termination
by Company for Cause. The Company may terminate the Executive's employment for Cause. For purposes of this Agreement,
"Cause" means the Executive (i) is convicted of a felony which is related to the Executive's employment or the
business of the Company; (ii) in carrying out his duties hereunder, the Executive has been found in a civil action to have committed
gross negligence or intentional misconduct resulting, in either case, in material harm to the Company; (iii) subject to a preliminary
or permanent injunction issued by a court of competent jurisdiction enjoining the Executive from violating any federal securities
law or any rule or regulation thereunder promulgated by the Securities and Exchange Commission (the "SEC"); (iv) the
Executive becomes subject to a cease and desist order or other order issued by the SEC after an opportunity for a hearing; or
(v) the Executive has been found in a civil action to have materially breached any provision of Section 8 and/or Section
9 and to have thereby caused material harm to the Company. The term "found in a civil action" shall not apply
until all appeals permissible under the applicable rules of procedure or statutes have been determined and no further appeals
are permissible. to the extent curable.

 

(d)           Termination
by the Company Without Cause. A termination of the Executive's employment by the Company for any reason, except death,
disability or Cause, will be deemed to be a termination "Without Cause."

 

(e)           Termination
by the Executive for Good Reason. The Executive may terminate his employment for "Good Reason." For purposes
of this Agreement, "Good Reason" means (i) without the Executive's written consent, a material reduction of his
duties, positions or responsibilities; (ii) without the Executive's written consent, a reduction by the Company in Base Salary
as in effect immediately prior to such reduction; (iii) the occurrence of a "Change in Control" (as defined in
Section 6); or (iii) the Company's material breach of this Agreement; provided that within ninety (90) days of the Company's
act or omission giving rise to a resignation for Good Reason, the Executive notifies the Company in writing of the act or omission,
the Company fails to correct the act or omission (to the extent curable) within thirty (30) days after receiving the Executive's
written notice and the Executive actually terminates his employment within sixty (60) days after the date the Company receives
the Executive's notice.

 

(f)           Termination
by the Executive Without Good Reason. A resignation of the Executive's employment for any reason other than Good Reason
will be deemed to be a resignation "Without Good Reason." The Executive may terminate his employment at any time
Without Good Reason, upon thirty (30) days prior written notice to the Company, provided however, the Company may accelerate the
date of such termination to any date following the receipt of such written notice.

 

(g)          Termination
by the Company due to Non-renewal. A termination of the Executive's employment by the Company due to the
Company's non-renewal of this Agreement pursuant to Section 3, will be deemed to be a termination
"Non-Renewal."

 

(h)           Termination
Date. The "Termination Date" means (i) if the Executive's employment is terminated by his death under
Section 4(a), the date of his death; (ii) if the Executive's employment is terminated on account of his Disability under
Section 4(b), the date on which the Company provides the Executive a written termination notice; (iii) if the Company terminates
the Executive's employment for Cause under Section 4(c), the date on which the Company provides the Executive a written
termination notice; (iv) if the Company terminates the Executive's employment Without Cause under Section 4(d), the date
on which the Company provides the Executive a written termination notice; (v) if the Executive resigns his employment for Good
Reason under Section 4(e), the date on which the Executive provides the Company a written termination notice; (vii) if
the Executive resigns his employment Without Good Reason under Section 4(f), thirty (30) days after the date on which the
Executive provides the Company a written termination notice or (viii) if the Company terminates this Agreement though Non-Renewal
under Section 4(g), the date on which the Agreement expires.

 

 

 

    	 	5	 

     

    

 

5.                Compensation
Upon Termination.

 

(a)          Termination
by the Company for Cause or by the Executive Without Good Reason. If the Executive's employment with the Company is terminated
pursuant to Sections 4(c), or 4(f), the Company shall pay or provide to the Executive (or to his authorized representative
or estate) (1) any earned but unpaid Base Salary as of the Termination Date; (ii) unpaid expense reimbursements as of the Termination
Date; (iii) any unpaid Tax True-up amounts, (iv) any earned but unpaid Bonus as of the Termination Date; and (v) any vested benefits
the Executive may be entitled to under any employee benefit plan of the Company, equity securities (stock, options, and/or warrants)
awarded during the Term or all equity securities eligible to the Executive pursuant to the MCPP based on identified milestones
achieved as of the date of Termination and/or which may be achieved within twelve (12) months after the date of Termination (the
"Accrued Obligations"), on or before the time required by law but in no event more than thirty (30) days after
the Termination Date (and or no more than thirty (30) days after any shares that become eligible to Executive pursuant to the
MCPP within the 12 months after date of Termination).

 

(b)          Termination
for Disability, Death or Non-renewal. If the Executive's Employment is terminated by reason of Disability pursuant to
Section 4(a), 4(b) or 4(g) then the Executive shall be entitled to the following:

 

(i)        The
Company shall pay the Executive the Accrued Obligations earned through the Termination Date, on or before thirty (30) days after
the Termination Date.

 

(ii)       All equity securities granted to the Executive during the Term shall immediately be issued, become immediately vested,
and/or exercised, if applicable, by the Executive or his legal representatives in accordance with the terms of the applicable
employees plan or award document.

 

(iii)      All equity securities eligible to the Executive pursuant to the MCPP based on identified milestones not yet achieved
as of the date of Termination shall remain eligible to Executive for a period thirty-six (36) months after the expiration or earlier
termination of the Agreement, provided that expiration or termination is not for "Cause" or the Executive's Non-Renewal
of the Agreement. The Company shall provide to the Executive no more than thirty (30) days after any shares that become eligible
to Executive pursuant to the MCPP pursuant to this Section 5(b)(iii)).

 

(iv)     a lump sum payment equal to two hundred ninety-nine percent (299%) of Executive's "base period income"
as determined under (e) below, plus an additional amount representing a gross-up of any state or federal taxes payable by
Executive as a result of any such payment plus any amount of Tax True-up associated with issuance of equity securities pursuant
to 5(b)(ii) and 5(b)(iii) above. Such amounts will be paid to Executive within thirty (30) days after his termination of his affiliation
with the Company and/or upon such time that the Tax True-up amount is determinable.

 

(v)      The
Executive's "base period income" shall be his Base Salary and Bonuses paid or payable to him during or with
respect to the twelve (12) month period preceding the date of his termination of affiliation (excluding any equity issued to
Executive pursuant to the MCPP).

 

(vi)     Subject
to the Executive's timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended ("COBRA"), the Company shall reimburse the Executive the monthly premium payable to continue his and
his eligible dependents' participation in the Company's group health plan (to the extent permitted under applicable law and the
terms of such plan) which covers the Executive (and the Executive's eligible dependents) for a period of one year from the Termination
Date, provided, however, that the Executive remains eligible for COBRA coverage during such one-year period.

 

 

 

    	 	6	 

     

    

 

(c)           Termination
by the Company Without Cause or by the Executive With Good Reason. If the Executive's employment is terminated by the
Company Without Cause or the Executive terminates his employment for Good Reason, then the Executive shall be entitled to the
following:

 

(i)        The Company shall pay the Executive the Accrued Obligations earned through the Termination Date, on or before thirty (30)
days after the Termination Date.

 

(ii)       The Company shall pay the Executive his Base Salary (less applicable withholding taxes) for the balance of the Term or for
a period of four years from the Termination Date, whichever is longer, in accordance with the Company's normal payroll practices
in effect on the Termination Date.

 

(iii)      Two
hundred percent (200%) of the greater of the Executive's Bonus for the year of termination or the Bonus actually earned for the
year prior to the year of termination, if any; which amount will be paid within sixty (60) days of the later of the Termination
Date or the calculation of such Bonus. This provision shall exclude any equity grants to Executive pursuant to the MCPP.

 

(iv)     All
equity securities granted to the Executive during the Term shall immediately be issued, become immediately vested, and/or exercised,
if applicable, by the Executive or his legal representatives in accordance with the terms of the applicable employees plan or
award document.

 

(v)      All equity securities eligible to the Executive pursuant to the MCPP based on identified milestones not yet achieved as
of the date of Termination shall remain eligible to Executive for a period thirty-six (36) months after the expiration or earlier
termination of the Agreement, provided that expiration or termination is not for "Cause" or the Executive's Non-Renewal
of the Agreement. The Company shall provide to the Executive no more than thirty (30) days after any shares that become eligible
to Executive pursuant to the MCPP pursuant to this Section 5(c)(viii)).

 

(vi)     a lump sum payment equal to any amount of Tax True-up associated with issuance of equity securities pursuant to 5(c)(iv)
and 5(b)(v) above. Such amounts will be paid to Executive within thirty (30) days after his termination of his affiliation with
the Company and/or upon such time that the Tax True-up amount is determinable.

 

(vii)    Subject to the Executive's timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended ("COBRA"), the Company shall reimburse the Executive the monthly premium payable to
continue his and his eligible dependents' participation in the Company's group health plan (to the extent permitted under
applicable law and the terms of such plan) which covers the Executive (and the Executive's eligible dependents) for the
period that the Executive is eligible and remains eligible for COBRA coverage, provided, however, that in the event
that the Executive obtains other employment that offers group health benefits, such continuation of coverage by the Company
shall immediately cease.

 

6.                Change
in Control.

 

(a)           For
the purposes of this Agreement, a "Change of Control" shall be deemed to have taken place if (i) any person who
is not an executive officer or director of the Company as of the Effective Date, either individually or as a "group"
as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, becomes the owner or beneficial owner of
Company securities, after the date of this Agreement, having fifty point one percent (50.1%) or more of the combined voting power
of the then outstanding securities of the Company that may be cast for the election of directors of the Company (other than as
a result of an issuance of securities initiated by the Company, or open market purchases approved by the Board, as long as the
majority of the Board approving the purchases is the majority at the time the purchases are made); or (ii) the persons who were
directors of the Company before such transactions shall cease to constitute a majority of the Board of the Company, or any successor
to the Company, as the direct or indirect result of or in connection with, any cash tender or exchange offer, merger or other
business combination, sale of assets or contested election, or any combination of the foregoing transaction.

 

 

 

    	 	7	 

     

    

 

(b)          
The Company and the Executive hereby agree that, if the Executive is affiliated with the Company on the date on which a
Change of Control occurs (the "Change of Control Date"), the Company will continue to retain the Executive and
the Executive will remain affiliated with the Company for the period commencing on the Change of Control Date and ending on the
fifth (5th) anniversary of the Change in Control Date, to exercise such authority and perform such executive duties as are commensurate
with the authority being exercised and duties being performed by the Executive immediately prior to the Change of Control Date.
If after the Change of Control Executive is requested, and, in his sole and absolute discretion, consents to change his principal
business location, the Company will reimburse the Executive for his reasonable relocation expenses, including, without limitation,
moving expenses, temporary living and travel expenses for a reasonable time while arranging to move his residence to the changed
location, closing costs, if any, associated with the sale of his existing residence and the purchase of a replacement residence
at the changed location, plus an additional amount representing a gross-up of any state or federal taxes payable by the Executive
as a result of any such reimbursement. If the Executive shall not consent to change his business location, the Executive may continue
to provide the services required of him hereunder from his then residence and/or business address, and the Company shall continue
to maintain an office for the Executive at that location commensurate with the Company's office prior to the Change of Control
Date.

 

(c)           During
the remaining Term of this Agreement commencing upon the Change of Control Date, the Company will (1) continue to pay Executive
a salary at not less than the level applicable to Executive on the Change of Control Date; (ii) pay Executive Bonuses in amounts
not less in amount than those paid during the twelve (12) month period preceding the Change of Control Date; and (iii) continue
employee benefit programs as to Executive at levels in effect on the Change of Control Date (but subject to such reductions as
may be required to maintain such plans in compliance with applicable federal law regulating employee benefit programs).

 

(d)           If
during the remaining Term of this Agreement after the Change of Control Date (i) Executive's employment is terminated by the Company;
or (ii) there shall have occurred a material reduction in Executive's compensation or employment related benefits, or a material
change in the Executive's status, working conditions, management responsibilities or titles, and Executive voluntarily terminates
his relationship with the Company within sixty (60) days of an such occurrence, or the last in a series of occurrences, then Executive
shall be entitled to receive, in addition to the compensation provided for in Section 5(c), and subject to the provisions
of subsections (e) and (f) below, a lump sum payment equal to two hundred percent (200°x©) of Executive's "base
period income" as determined under (e) below, plus an additional amount representing a gross-up of any state or federal
taxes payable by Executive as a result of any such payment plus any amount of Tax True-up associated with issuance of equity securities
pursuant to 5(c)(iv) and 5(c)(v) above. Such amounts will be paid to Executive within thirty (30) days after his termination of
his affiliation with the Company and/or upon such time that the Tax True-up amount is determinable.

 

(e)           The
Executive's "base period income" shall be his Base Salary and Bonuses paid or payable to him during or with respect
to the twelve (12) month period preceding the date of his termination of affiliation.

 

(f)             In
the event of a proposed Change in Control, the Company will allow Executive to participate in all meetings and negotiations related
thereto.

 

7.               Section
409A Compliance.

 

(a)           All
in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred
by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively
practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year
in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year
shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

 

 

    	 	8	 

     

    

 

(b)           To
the extent that any of the payments or benefits provided for in Section 5(b) are deemed to constitute non-qualified deferred
compensation benefits subject to Section 409A of the United States Internal Revenue Code (the "Code"), the following
interpretations apply to Section 5: Any termination of the Executive's employment triggering payment of benefits under
Section 5(b) must constitute a "separation from service" under Section 409A(a)(2)(A)(i) of the Code and
Treas. Reg. §1.409A-1(h) before distribution of such benefits can commence. To the extent that the termination of the Executive's
employment does not constitute a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h)
(as the result of further services that are reasonably anticipated to be provided by the Executive to the Company or any of its
parents, subsidiaries or affiliates at the time the Executive's employment terminates), any benefits payable under Section
5 that constitute deferred compensation under Section 409A of the Code shall be delayed until after the date of a subsequent
event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes
of clarification, this Section 7(b) shall not cause any forfeiture of benefits on the Executive's part, but shall only
act as a delay until such time as a "separation from service" occurs. Further, if the Executive is a "specified
employee" (as that term is used in Section 409A of the Code and regulations and other guidance issued thereunder) on
the date his separation from service becomes effective, any benefits payable under Section 5 that constitute non-qualified
deferred compensation under Section 409A of the Code shall be delayed until the earlier of (i) the business day following the
six-month anniversary of the date his separation from service becomes effective; and (ii) the date of the Executive's death, but
only to the extent necessary to avoid such penalties under Section 409A of the Code. On the earlier of (i) the business day following
the six-month anniversary of the date his separation from service becomes effective; and (ii) the Executive's death, the Company
shall pay the Executive in a lump sum the aggregate value of the non-qualified deferred compensation that the Company otherwise
would have paid the Executive prior to that date under Section 5(b) of this Agreement. It is intended that each installment
of the payments and benefits provided under Section 5(b) of this Agreement shall be treated as a separate "payment"
for purposes of Section 409A of the Code. Neither the Company nor the Executive shall have the right to accelerate or defer
the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A of the Code.

 

8.               Confidential
Information.

 

(a)           As
used in this Agreement, "Confidential Information" means information belonging to the Company which is of value
to the Company in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage
to the Company. Confidential Information includes, without limitation, financial information, reports, and forecasts; inventions,
improvements and other intellectual property; trade secrets; know-how; designs, processes or formulae; software; market or sales
information or plans; customer lists; business plans, prospects and opportunities (such as possible acquisitions or dispositions
of businesses or facilities) which have been discussed or considered by the management of the Company. Confidential Information
includes information developed by the Executive in the course of the Executive's employment by the Company, as well as other information
to which the Executive may have access in connection with his employment. Confidential Information also includes the confidential
information of others with which the Company has a business relationship. Notwithstanding the foregoing, Confidential Information
does not include (i) information which now or in the future comes into the public domain, unless due to breach of the Executive's
duties under this Section 8(a); (ii) information which is disclosed to Executive by others who are not, to Executive's
actual knowledge, under obligation of nondisclosure to the Company; (iii) information which is independently developed by the
Executive without breach of the Executive's duties under this Section 8(a); or (iv) information which is disclosed by the
Company to others without obligation of confidentiality.

 

(b)           At
all times, both during the Executive's employment with the Company and after its termination, the Executive will keep in
confidence and trust all Confidential Information, and will not use or disclose for his own benefit or the benefit of any
other Person any such Confidential Information without the written consent of the Company, except as may be necessary in the
ordinary course of performing the Executive's duties to the Company.

 

 

 

    	 	9	 

     

    

 

9.              
Documents, Records, Etc. All documents, records, data, apparatus, equipment and other physical property,
whether or not pertaining to Confidential Information, which are furnished to the Executive by the Company or are produced by
the Executive in connection with the Executive's employment will be and remain the sole property of the Company. The Executive
will return to the Company all such materials and property as and when requested by the Company. In any event, the Executive will
return all such materials and property immediately upon termination of the Executive's employment for any reason. The Executive
will not retain any such material or property or any copies thereof after the termination of his employment.

 

10.             Non-Competition.
From the Effective Date through the second (2") anniversary of the Termination Date, regardless of the reason
for such termination or expiration (the "Restricted Period") the Executive will not, directly or indirectly,
whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, prepare to engage, participate,
assist or invest in any Competing Business anywhere in the United States or any other geographic area in which the Company is
actively distributing its products or providing its services as of the Termination Date. Notwithstanding the foregoing, (i) the
Executive may own up to two percent (2%) of the outstanding stock of a publicly held corporation which constitutes or is affiliated
with a Competing Business; and (ii) the Executive may be employed by a large organization which is engaged in a Competing Business
as its non-primary business, so long as Executive is not involved with or assisting such Competing Business, and so long as Executive
does not breach his obligations regarding Confidential Information.

 

11.            
No Solicitation. During the Restricted Period, the Executive shall not, directly or indirectly, take any
of the following actions, and, to the extent the Executive owns, manages, operates, controls, is employed by or participates in
the ownership, management, operation or control of, or is connected in any manner with, any business, the Executive shall use
his best efforts to ensure that such business does not take any of the following actions:

 

(a)          
persuade or attempt to persuade any Customer, Prospective Customer or Supplier to cease doing business with the Company,
or to reduce the amount of business it does with the Company;

 

(b)          
solicit or service for himself or for any Person the business of a Customer, Prospective Customer or Supplier in order
to provide goods or services that are competitive with the goods and services provided by the Company;

 

(c)           
persuade or attempt to persuade any Service Provider to cease providing services to the Company; or

 

(d)           solicit
for hire or hire for himself or for any third party any Service Provider. The following definitions are applicable to Sections
8, 9, 10, and 11:

 

(i)            "Competing Business" means the offering in-office ancillary opportunities and third-party billing
to physicians and clinics and any other business in which the services which the Company is engaged in as of the Termination Date.

 

(ii)           "Customer"
means any Person that purchased goods or services from the Company at any time within two (2) years prior to the date of the
solicitation prohibited by Sections 11(a) or (b).

 

(iii)          “Prospective Customer" means any Person with whom the Company met or to whom the Company presented for the
purpose of soliciting the Person to become a Customer of the Company within six (6) months prior to the date of the solicitation
prohibited by Sections 11(a) or (b).

 

(iv)          "Service Provider" means any Person who is an employee or independent contractor of the Company or
the Company or who was within twelve (12) months preceding the solicitation prohibited by Sections 11(a) or (b)
an employee or independent contractor of the Company or the Company.

 

 

 

    	 	10	 

     

    

 

(v)           "Supplier"
means any Person that sold goods or services to the Company at any time within twelve (12) months prior to the date of the
solicitation prohibited by Sections 11(a) or (b).

 

(vi)          "Person"
means an individual, a sole proprietorship, a corporation, a limited liability company, a partnership, an association, a trust,
or other business entity, whether or not incorporated.

 

12.              Intellectual
Property.

 

(a)           All
creations, inventions, ideas, designs, copyrightable materials, trademarks, and other technology and rights (and any related improvements
or modifications), whether or not subject to patent or copyright protection (collectively, "Creations"), relating
to any activities of the Company which are conceived by the Executive or developed by the Executive in the course of his employment
with the Company, whether prior to or during the Term, whether conceived alone or with others and whether or not conceived or
developed during regular business hours, shall be the sole property of the Company and, to the maximum extent permitted by applicable
law, shall be deemed "works made for hire" as that term is used in the United States Copyright Act.

 

(b)          
To the extent, if any, that the Executive retains any right, title or interest with respect to any Creations delivered
to the Company or related to his employment with the Company, the Executive hereby grants to the Company an irrevocable, paid-up,
transferable, sub-licensable, worldwide right and license: (i) to modify all or any portion of such Creations, including, without
limitation, the making of additions to or deletions from such Creations, regardless of the medium (now or hereafter known) into
which such Creations may be modified and regardless of the effect of such modifications on the integrity of such Creations; and
(ii) to identify the Executive, or not to identify his, as one or more authors of or contributors to such Creations or any portion
thereof, whether or not such Creations or any portion thereof have been modified. The Executive further waives any "moral"
rights, or other rights with respect to attribution of authorship or integrity of such Creations that he may have under any
applicable law, whether under copyright, trademark, unfair competition, defamation, and right of privacy, contract, tort or other
legal theory.

 

(c)           The
Executive will promptly inform the Company of any Creations. The Executive will also allow the Company to inspect any Creations
he conceives or develops within one (1) year after the termination of his employment for any reason to determine if they are based
on Confidential Information. The Executive shall (whether during his employment or after the termination of his employment) execute
such written instruments and do other such acts as may be necessary in the opinion of the Company or its counsel to secure the
Company's rights in the Creations, including obtaining a patent, registering a copyright, or otherwise (and the Executive hereby
irrevocably appoints the Company and any of its officers as his attorney in fact to undertake such acts in his name). The Executive's
obligation to execute written instruments and otherwise assist the Company in securing its rights in the Creations will continue
after the termination of his employment for any reason. The Company shall reimburse the Executive for any out-of-pocket expenses
(but not attorneys' fees) he incurs in connection with his compliance with this Section 12(c).

 

13.             Acknowledgement.
The Executive understands that the restrictions set forth in Sections 8, 9, 10, 11 and 12 of this Agreement are
intended to protect the Company's interest in its Confidential Information, goodwill and established employee and customer relationships,
and agrees that such restrictions are reasonable and appropriate for this purpose.

 

14.             Indemnification.
During the Term and thereafter, the Company shall indemnify and hold the Executive and the Executive's heirs and representatives
harmless, to the maximum extent permitted by law, against any and all damages, costs, liabilities, losses and expenses (including
reasonable attorneys' fees) as a result of any claim or proceeding (whether civil, criminal, administrative or investigative),
or any threatened claim or proceeding (whether civil, criminal, administrative or investigative), against the Executive that arises
out of or relates to the Executive's service as an officer, director or employee, as the case may be, of the Company, or the Executive's
service in any such capacity or similar capacity with any affiliate of the Company or other entity at the Company's request, both
prior to and after the Effective Date, and to promptly advance to the Executive or the Executive's heirs or representatives such
expenses, including litigation costs and attorneys' fees, upon written request with appropriate documentation of such expense
upon receipt of an undertaking by the Executive or on the Executive's behalf to repay such amount if it shall ultimately be determined
that the Executive is not entitled to be indemnified by the Company. During the Term and thereafter, the Company also shall provide
the Executive with coverage under its current directors' and officers' liability policy to the same extent that it provides such
coverage to its other executive officers. If the Executive has any knowledge of any actual or threatened action, suit or proceeding,
whether civil, criminal, administrative or investigative, as to which the Executive may request indemnity under this provision,
the Executive will give the Company prompt written notice thereof; provided that the failure to give such notice shall not affect
the Executive's right to indemnification. The Company shall be entitled to assume the defense of any such proceeding and the Executive
will use reasonable efforts to cooperate with such defense. To the extent that the Executive in good faith determines that there
is an actual or potential conflict of interest between the Company and the Executive in connection with the defense of a proceeding,
the Executive shall so notify the Company and shall be entitled to separate representation at the Company's expense by counsel
selected by the Executive (provided that the Company may reasonably object to the selection of counsel within ten (10) business
days after notification thereof) which counsel shall cooperate, and coordinate the defense, with the Company's counsel and minimize
the expense of such separate representation to the extent consistent with the Executive's separate defense.

 

 

 

    	 	11	 

     

    

 

15.
             Survival. The provisions of Sections
8, 9, 10, 11, 12, 14, 15, 16 and 22 of this Agreement shall survive its expiration or termination.

 

16.              Disputes.

 

(a)           The
parties agree to resolve any dispute arising under or relating to the interpretation or enforcement of this Agreement, the Executive's
employment or the termination of the Executive's employment before the Florida state courts of Miami-Dade County, Florida or the
United States District Court for the Southern District of Florida, and hereby consent to the exclusive jurisdiction of such courts.
Accordingly, with respect to any such court action, the Executive and the Company each (i) submits to the personal jurisdiction
of these courts; (ii) consents to service of process under the notice provisions set forth in Section 21 of this Agreement;
(iii) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction
or service of process; and (iv) waives any objection to jurisdiction based on improper venue or improper jurisdiction.

 

(b)          
Notwithstanding anything else provided in this Agreement, the Executive agrees that it would be difficult to measure any
damages caused to the Company which might result from any breach by the Executive of Sections 8, 9, 10, 11 and 12
of this Agreement. Accordingly, if the Executive breaches or proposes to breach, any term of Sections 8, 9, 10, 11 and
12 of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to a temporary
and preliminary injunction or other appropriate equitable relief to restrain any such breach without showing or providing any
actual damage to the Company from any court having competent jurisdiction over the Executive.

 

(c)           BOTH
THE COMPANY AND THE EXECUTIVE HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE FEDERAL
OR STATE LAW.

 

(d)          
The prevailing party shall be entitled to reasonable attorneys' fees and costs from the non-prevailing party in connection
with any action filed under this Section 16.

 

17.             Integration.
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior agreements between the parties concerning such subject matter, including without limitation, the Original
Employment Agreement.

 

18.            Successors.
This Agreement shall inure to the benefit of and be enforceable by the Executive's personal representatives, executors, administrators,
heirs, distributees, devisees and legatees. In the event of the Executive's death after his termination of employment but prior
to the completion by the Company of all payments due him under this Agreement, the Company shall continue such payments to the
Executive's beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make
such designation). The Company shall require any successor to the Company to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.

 

19.            Enforceability.
If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this
Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of
this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared
illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.

 

 

 

    	 	12	 

     

    

 

20.          
Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the
waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver
by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed
a waiver of any subsequent breach.

 

21.          
Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be
sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by certified
mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with
the Company or, in the case of the Company, at its main offices, attention of the Chief Financial Officer. Notices shall be effective
on receipt, if delivered by hand, the next business day, if sent by overnight courier service or on the third (r) business day
after mailing, if sent by mail.

 

22.          
Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive
and by a duly authorized representative of the Company.

 

23.          
Governing Law. This is a Florida contract and shall be construed under and be governed in all respects by
the laws of Florida for contracts to be performed in that state and without giving effect to the conflict of laws principles of
Florida or any other state.

 

24.           
"Company" Defined. As used in this Agreement, the term "Company" shall mean the
Company, its parent, subsidiaries and divisions.

 

25.           Counterparts.
This Agreement may he executed in any number of counterparts, including by facsimile, .PDF or other electronic transmission
(which shall be deemed to be an original), each of which when so executed and delivered shall be taken to be an original; but
such counterparts shall together constitute one and the same document.

 

 

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement effective as of the Effective Date.

 

 

	 	THE COMPANY:
	 	 
	 	ORGANICELL REGENERATIVE MEDICINE, INC.
	 	 
	 	By: /s/ Ian Bothwell
	 	       Name: Ian Bothwell
	 	       Title: CFO
	 	 
	 	 
	 	THE EXECUTIVE:
	 	 
		/s/ Albert Mitrani
	 	Albert Mitrani, COO
	 	 

 

 

 

    	 	14

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