Document:

Exhibit 10.20

 

PURCHASE AGREEMENT

 

PURCHASE AGREEMENT
(the “Agreement”), dated as of September 21, 2020, by and between SUNHYDROGEN, INC., a Nevada corporation
(the “Company”), and GHS Investments, LLC, a Nevada limited liability company (the “Investor”).

 

WHEREAS:

 

Subject to the terms
and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from the
Company, up to Four Million Dollars ($4,000,000) of the Company’s registered common stock, $0.001 par value per share (the
“Common Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase
Shares.”

 

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 the Investor hereby agree as follows:

 

1. CERTAIN
DEFINITIONS.

 

For purposes of this
Agreement, the following terms shall have the following meanings:

 

(a) “Available
Amount” means, initially, Four Million Dollars ($4,000,000) in the aggregate, which amount shall be reduced by the Purchase
Amount each time the Investor purchases shares of Common Stock pursuant to Section 2 hereof.

 

(b) “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(c) “Base
Prospectus” means the Company’s final base prospectus, dated July 8, 2020, a preliminary form of which is included
in the Registration Statement, including the documents incorporated by reference therein.

 

(d) “Business
Day” means any day on which the Principal Market is open for trading, including any day on which the Principal Market
is open for trading for a period of time less than the customary time.

   

(e) “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(f) “DTC”
means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

(g) “DWAC
Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and
without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar
program hereafter adopted by DTC performing substantially the same function.

 

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

  

     

     

    

 

(i) “Initial
Prospectus Supplement” means the prospectus supplement of the Company relating to the Purchase Shares, including the
accompanying Base Prospectus, to be prepared and filed by the Company with the SEC pursuant to Rule 424(b)(5) under the Securities
Act and in accordance with Section 5(a) hereof, together with all documents and information incorporated therein by reference.

  

(j) “Material
Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document, (ii) the results
of operations, assets, business or financial condition of the Company, other than any material adverse effect that resulted exclusively
from (A) any change in the United States or foreign economies or securities or financial markets in general that does not have
a disproportionate effect on the Company taken as a whole, (B) any change that generally affects the industry in which the Company
operates that does not have a disproportionate effect on the Company, (C) any change arising in connection with earthquakes, hostilities,
acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of
war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken by the Investor, its affiliates
or its or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the effect of any change
in applicable laws or accounting rules that does not have a disproportionate effect on the Company, or (F) any change resulting
from compliance with terms of this Agreement or the consummation of the transactions contemplated by this Agreement, or (iii) the
Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document to
be performed as of the date of determination.

 

(k) “Maturity
Date” means the six month anniversary of the date of this Agreement or March 20, 2021.

  

(l) “Person”
means an individual or entity including but not limited to any limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

 

(m) “Principal
Market” means the OTC Pink (or any nationally recognized successor thereto); provided, however, that in the event the
Company’s Common Stock is ever listed or traded on The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global
Select Market, the New York Stock Exchange, the NYSE American, or the OTCQX or OTCQB operated by the OTC Markets Group, Inc. (or
any nationally recognized successor to any of the foregoing), then the “Principal Market” shall mean such other market
or exchange on which the Company’s Common Stock is then listed or traded

 

(n) “Prospectus”
means the Base Prospectus, as supplemented from time to time by any Prospectus Supplement (including the Initial Prospectus Supplement),
including the documents and information incorporated by reference therein.

 

(o) “Prospectus
Supplement” means any prospectus supplement to the Base Prospectus (including the Initial Prospectus Supplement) filed
with the SEC pursuant to Rule 424(b) under the Securities Act in connection with the transactions contemplated by this Agreement,
including the documents and information incorporated by reference therein.

 

(p) “Purchase
Amount” means, with respect to any Purchase, the portion of the Available Amount to be purchased by the Investor pursuant
to Section 2 hereof.

 

(q) “Purchase
Date” means, with respect to a Purchase made pursuant to Section 2(a) hereof, the Business Day on which the Investor
receives a valid Purchase Notice in accordance with this Agreement.

 

(r) “Purchase
Notice” means, with respect to a Purchase pursuant to Section 2(a) hereof, an irrevocable written notice from the Company
to the Investor, substantially in the form of Exhibit A hereto, directing the Investor to buy a specified amount of Purchase Shares
(subject to the Purchase Share limitations contained in Section 2(a) hereof) at the applicable Purchase Price for such Purchase
in accordance with this Agreement. Purchase Notices shall be delivered between 4PM through 11:59PM (Eastern Time). If the Investor
deems that the Purchase Notice is not compliant according to the terms of this Agreement, then the Investor shall notify the Company
with details of the non-compliance before 9:30AM (Eastern Time) on the next Business Day, and the Purchase Notice shall be null
and void. Otherwise, the Purchase Notice shall be deemed valid by 9:31AM (Eastern Time).

 

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(s) “Purchase
Price” means, with respect to a Purchase made pursuant to Section 2(a) hereof, 90% of the lowest end-of-day VWAP
during the Valuation Period.

  

(t) “Registration
Statement” means the Company’s registration statement on Form S-3 (File No. 333-239632), including the documents
incorporated by reference therein.

   

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

 

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

 

(w) “Settlement
Date” means the date on which the Company delivers the Purchase Shares against the payment of the Purchase Price by the
Investor, which date will be one Business Day following the Valuation Period. If the Company fails to deliver the Purchase Shares
on the Settlement Date, then the Purchase Notice is automatically null and void.

 

(x) “Transaction
Documents” means, collectively, this Agreement and the schedules and exhibits hereto, and each of the other agreements,
documents, certificates and instruments entered into or furnished by the parties hereto in connection with the transactions contemplated
hereby and thereby.

 

(y) “Transfer
Agent” means Worldwide Stock Transfer, LLC, or such other Person who is then serving as the transfer agent for the Company
in respect of the Common Stock.

 

(z) “Valuation
Period” means the five (5) consecutive Business Days immediately preceding the Purchase Date, including the Purchase
Date.

 

(aa) “VWAP”
means the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal Market.

 

2. PURCHASE
OF COMMON STOCK.

 

Subject to the terms
and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has the obligation
to purchase from the Company, Purchase Shares as follows:

  

(a) Sales of Common
Stock. Subject to the satisfaction of all of the conditions set forth in Sections 6 and 7 hereof (the “Commencement”
and the date of satisfaction of such conditions the “Commencement Date”), at any time commencing on the Commencement
Date and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor
of a Purchase Notice from time to time, to purchase a minimum of $10,000 and up to a maximum of $400,000 of Purchase Shares (the
number of Purchase Shares being determined in accordance with Section 2(b) hereunder) for each Purchase Notice (subject to the
Available Amount, and provided that, the Purchase Amount for any Purchase will not exceed two times the average of the daily trading
dollar volume of the Common Stock during the 10 Business Days preceding the Purchase Date), at the Purchase Price on the Purchase
Date (each, a “Purchase”). Each Purchase Notice will set forth the Purchase Price and number of Purchase Shares,
in accordance with the terms of this Agreement. If the Company delivers any Purchase Notice for a Purchase Amount in excess of
the limitations contained herein, such Purchase Notice shall be void ab initio to the extent of the amount by which the
amount of Purchase Shares set forth in such Purchase Notice exceeds the amount of Purchase Shares which the Company is permitted
to include in such Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase
Shares in respect of such Purchase Notice; provided, however, that the Investor shall remain obligated to purchase
the amount of Purchase Shares which the Company is permitted to include in such Purchase Notice. The Company may not deliver more
than one Purchase Notice to the Investor every ten Business Days unless, from time to time, the Company and the Investor mutually
agree to different timing of the delivery Purchase Notices.

   

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(b) Settlement for
Purchase Shares. On each Settlement Date, for each Purchase hereunder, the Company shall deliver a number of Purchase Shares
equal to 112.5% of the aggregate Purchase Amount for such Purchase divided by the Purchase Price per share for such Purchase, against
payment by the Investor to the Company of the Purchase Amount with respect to such Purchase (less documented deposit and clearing
fees, if any), as full payment for such Purchase Shares via wire transfer of immediately available funds. The Company shall not
issue any fraction of a share of Common Stock upon the any Purchase. If any issuance hereunder would result in the issuance of
a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up or down to the nearest
whole share. All Purchase Shares issued hereunder will be DWAC Shares. All payments made under this Agreement shall be made in
lawful money of the United States of America by wire transfer of immediately available funds to such account as the Company may
from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed
to be due by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next
succeeding day that is a Business Day.

 

(c) Beneficial Ownership
Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not issue or sell, and
the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when aggregated with all other
shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the
Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor and its affiliates
of more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”).
Upon the written or oral request of the Investor, the Company shall promptly (but not later than one Business Day) confirm orally
or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor and the Company shall each cooperate
in good faith in the determinations required hereby and the application hereof. The Investor’s written certification to the
Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall
be conclusive with respect to the applicability thereof and such result absent manifest error.

  

3. INVESTOR’S
REPRESENTATIONS AND WARRANTIES.

 

The Investor represents
and warrants to the Company as of the date hereof and as of the Commencement Date that:

 

(a) Organization,
Authority. Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, with the requisite power and authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder and thereunder.

 

(b) Investment Purpose.
The Investor is acquiring the Purchase Shares as principal for its own account for investment only and not with a view to or for
distributing or reselling such Purchase Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of such Purchase Shares in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or understandings with any other Persons to distribute or regarding
the distribution of such Purchase Shares in violation of the Securities Act or any applicable state securities law (this representation
and warranty not limiting the Investor’s right to sell the Purchase Shares at any time pursuant to the Registration Statement
described herein or otherwise in compliance with applicable federal and state securities laws). The Investor is acquiring the Purchase
Shares hereunder in the ordinary course of its business.

 

(c) Accredited Investor
Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation D promulgated
under the Securities Act.

 

(d) Information.
The Investor understands that its investment in the Company and the Purchase Shares involves a high degree of risk including without
limitation the risks set forth in the Registration Statement. The Investor (i) is able to bear the economic risk of an investment
in the Purchase Shares including a total loss thereof, (ii) has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of the proposed investment in the Purchase Shares, (iii) has had an opportunity
to ask questions of and receive answers from the officers of the Company concerning the financial condition and business of the
Company and others matters related to an investment in the Purchase Shares, and (iv) has had the opportunity to review the Registration
Statement. Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall
modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties contained in Section
4 below. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Purchase Shares. The Investor acknowledges and agrees that the Company neither
makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 4 hereof.

 

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(e) Validity; Enforcement.
This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a valid and binding
agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general
principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(f) No Short Selling.
The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has any of the Investor,
its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short
sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction,
which establishes a net short position with respect to the Common Stock.

 

4. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to the Investor as of the date hereof and as of the Commencement Date, that:

 

(a) Organization,
Good Standing. The Company is a corporation, validly existing and in good standing under the laws of Nevada.

 

(b) Authority.
The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement 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.

 

(c) No
Conflicts. The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Purchase
Shares and the consummation by it of the transactions contemplated hereby party do not and will not conflict with or violate any
provision of the Company’s articles of incorporation or other organizational or charter documents. The Purchase Shares, upon
issuance in accordance with this Agreement, will be duly issued, fully paid, and nonassessable.

 

(d) Validity,
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and is a
valid and binding agreement of the Company enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

  

(e)  Registration
Statement. The Company has prepared and filed the Registration Statement with the SEC in accordance with the Securities Act.
The Registration Statement was declared effective by order of the SEC on July 8, 2020. The Registration Statement is effective
pursuant to the Securities Act and available for the issuance of the Purchase Shares thereunder. No stop order suspending the effectiveness
of the Registration Statement has been issued by the SEC, and no proceeding for that purpose or pursuant to Section 8A of the Securities
Act against the Company or related to the offering of the Purchase Shares has been initiated or, to the knowledge of the Company,
threatened by the SEC. The “Plan of Distribution” section of the Prospectus permits the issuance of the Purchase Shares
under the terms of this Agreement. At the time the Registration Statement and any amendments thereto became effective, at the date
of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the Securities Act, the Registration
Statement and any amendments thereto complied and will comply in all material respects with the requirements of the Securities
Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading; and the Base Prospectus and any Prospectus Supplement
thereto, at the time such Base Prospectus or such Prospectus Supplement thereto was filed and on the Commencement Date, complied
and will comply in all material respects with the requirements of the Securities Act and did not and will not contain an 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; provided that this representation and warranty does not apply to statements
in or omissions from any Prospectus Supplement made in reliance upon and in conformity with information relating to the Investor
furnished to the Company in writing by or on behalf of the Investor expressly for use therein. The Company meets all of the requirements
for the use of a registration statement on Form S-3 pursuant to the Securities Act for the offering and sale of the Purchase Shares
contemplated by this Agreement in reliance on General Instruction I.B.1., and the SEC has not notified the Company of any objection
to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) of the Securities Act. The Company hereby confirms
that the issuance of the Purchase Shares to the Investor pursuant to this Agreement would not result in non-compliance with the
Securities Act or any of the General Instructions to Form S-3. The Registration Statement, as of its effective date, meets the
requirements set forth in Rule 415(a)(1)(x) pursuant to the Securities Act.

 

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5. COVENANTS.

 

(a) Filing of Current
Report and Initial Prospectus Supplement. The Company agrees that it shall, within the time required under the Exchange Act,
file with the SEC a Current Report on Form 8-K relating to the transactions contemplated by, and describing the material terms
and conditions of, the Transaction Documents (the “Current Report”). The Company further agrees that it shall,
within the time required under Rule 424(b) under the Securities Act, file with the SEC the Initial Prospectus Supplement pursuant
to Rule 424(b) under the Securities Act specifically relating to the transactions contemplated by, and describing the material
terms and conditions of, the Transaction Documents, containing information previously omitted at the time of effectiveness of the
Registration Statement in reliance on Rule 430B under the Securities Act, and disclosing all information relating to the transactions
contemplated hereby required to be disclosed in the Registration Statement and the Prospectus as of the date of the Initial Prospectus
Supplement, including, without limitation, information required to be disclosed in the section captioned “Plan of Distribution”
in the Prospectus. The Investor acknowledges that it will be identified in the Initial Prospectus Supplement as an underwriter
within the meaning of Section 2(a)(11) of the Securities Act. The Investor shall furnish to the Company such information regarding
itself, the Purchase Shares held by it and the intended method of distribution thereof, including any arrangement between the Investor
and any other Person relating to the sale or distribution of the Purchase Shares, as shall be reasonably requested by the Company
in connection with the preparation and filing of the Current Report and the Initial Prospectus Supplement, and shall otherwise
cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Current
Report and the Initial Prospectus Supplement with the SEC.

  

(b) Listing/DTC.
The Company shall use commercially reasonable efforts to maintain the listing of the Common Stock on the Principal Market and to
comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules and regulations
of the Principal Market. The Company shall not take any action that would reasonably be expected to result in the delisting or
suspension of the Common Stock on the Principal Market. The Company shall promptly, and in no event later than the following Business
Day, provide to the Investor copies of any notices it receives from any Person regarding the continued eligibility of the Common
Stock for listing on the Principal Market; provided, however, that the Company shall not be required to provide the Investor copies
of any such notice that the Company reasonably believes constitutes material non-public information and the Company would not be
required to publicly disclose such notice in any report or statement filed with the SEC and under the Exchange Act or the Securities
Act. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5(c).
The Company shall take all action necessary to ensure that its Common Stock can be transferred electronically as DWAC Shares.

 

(c) Prohibition
of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending on the
date of termination of this Agreement as provided in Section 9, the Investor and its agents, representatives and affiliates shall
not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short
position with respect to the Common Stock.

    

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(d) Purchase Records.
The Investor and the Company shall each maintain records showing the remaining Available Amount at any given time and the dates
and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Accelerated Purchase or shall use such other
method, reasonably satisfactory to the Investor and the Company.

  

(e) Use of Proceeds.
The Company will use the net proceeds from the offering for any corporate purpose at the sole discretion of the Company.

  

6. CONDITIONS TO
THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK.

 

The right of the Company
hereunder to commence sales of Purchase Shares is subject to the satisfaction of each of the following conditions:

 

(a) The Investor shall
have executed each of the Transaction Documents and delivered the same to the Company; and

 

(b) No stop order with
respect to the Registration Statement shall be pending or threatened by the SEC.

 

7. CONDITIONS TO
THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

The obligation of the
Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on or prior
to the Commencement Date and, once such conditions have been initially satisfied, there shall not be any ongoing obligation to
satisfy such conditions after the Commencement has occurred:

 

(a) The Company shall
have executed each of the Transaction Documents and delivered the same to the Investor;

  

(b) The Common Stock
shall be listed on the Principal Market, trading in the Common Stock shall not have been within the last 365 days suspended by
the SEC or the Principal Market and such suspension has not subsequently been cured;

 

(c) The representations
and warranties of the Company shall be true and correct in all material respects (except to the extent that any of such representations
and warranties is already qualified as to materiality in Section 4 above, in which case, such representations and warranties
shall be true and correct without further qualification) as of the date hereof and as of the Commencement Date as though made at
that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such
date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date. The Investor
shall have received a certificate, executed by the chief executive officer of the Company, dated as of the Commencement Date, to
the foregoing effect in the form attached hereto as Exhibit B;

 

(d) The Registration
Statement shall continue to be effective and no stop order with respect to the Registration Statement shall be pending or threatened
by the SEC. The Company shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement
which is sufficient to issue to the Investor not less than the full Available Amount worth of Purchase Shares. The Current Report
and the Initial Prospectus Supplement each shall have been filed with the SEC, as required pursuant to Section 5(a). The
Prospectus shall be current and available for issuances and sales of all of the Purchase Shares by the Company to the Investor.
Any other Prospectus Supplements required to have been filed by the Company with the SEC under the Securities Act at or prior to
the Commencement Date shall have been filed with the SEC within the applicable time periods prescribed for such filings under the
Securities Act;

 

(e) The Company will
have delivered to the Transfer Agent irrevocable instructions, in a form reasonably acceptable to the Investor, to issue Purchase
Shares in accordance with this Agreement; and

 

(f) No Event of Default
has occurred and is continuing.

    

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8. EVENTS
OF DEFAULT.

 

An “Event
of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a) the effectiveness
of the Registration Statement lapses for any reason (including, without limitation, the issuance of a stop order or similar order)
or such Registration Statement (or the prospectus forming a part thereof) is unavailable to the Investor for resale of any or all
of the Purchase Shares to be issued to the Investor under the Transaction Documents;

 

(b) the suspension
of the Common Stock from trading on the Principal Market for a period of two (2) Business Days, provided that the Company may not
direct the Investor to purchase any shares of Common Stock during any such suspension;

 

(c) the delisting of
the Common Stock from the OTC Pink provided, however, that the Common Stock is not immediately thereafter trading on The NASDAQ
Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE American, or the
OTCQB or the OTCQX operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing);

 

(d) the failure for
any reason by the Transfer Agent to issue Purchase Shares to the Investor within three (3) Business Days after the applicable date
on which the Investor is entitled to receive such Purchase Shares;

 

(e) the Company breaches
any representation, warranty, covenant or other term or condition under any Transaction Document if such breach could have a Material
Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such breach continues for
a period of at least five (5) Business Days;

 

(f) if any Person or
entity commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g) if the Company,
pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the entry of an order
for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially
all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally unable to pay its debts
as the same become due;

 

(h) a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case,
(ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the
Company; or

 

(i) if at any time
the Company is not eligible to transfer its Common Stock electronically as DWAC Shares.

 

So long as an Event of Default has occurred
and is continuing, the Company shall not deliver to the Investor any Purchase Notice.

 

9. TERMINATION

 

This Agreement may
be terminated only as follows:

 

(a) If pursuant to
or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against
the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general
assignment for the benefit of its creditors (any of which would be an Event of Default as described in Sections 9(f), 9(g)
and 9(h) hereof), this Agreement shall automatically terminate without any liability or payment to the Company (except as
set forth below) without further action or notice by any Person.

 

(b) At any time after
the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no reason by delivering
notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement without any liability
whatsoever of any party to any other party under this Agreement (except as set forth below). The Company Termination Notice will
be effective upon delivery by the Company.

 

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(c) This Agreement
shall automatically terminate on the date that the Company sells and the Investor purchases the full Available Amount as provided
herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any other party
under this Agreement (except as set forth below).

 

(d) If, for any reason
or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of this Agreement by the
Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of any
party and without any liability whatsoever of any party to any other party under this Agreement (except as set forth below).

  

Except as set forth in Sections 9(a)
(in respect of an Event of Default under Sections 8(f), 8(g) and 8(h)), 9(c) and 9(d), any termination
of this Agreement pursuant to this Section 9 shall be effected by written notice from the Company to the Investor, or the
Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations and warranties
and covenants of the Company and the Investor contained in Sections 3, 4, and 5, hereof, and the agreements
and covenants set forth in Sections 8, 9 and 10 shall survive the execution and delivery of this Agreement
and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s
rights or obligations under (A) this Agreement with respect to any pending Purchases, and the Company and the Investor shall complete
their respective obligations with respect to any pending Purchases under this Agreement or (ii) be deemed to release the Company
or the Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction Documents.

 

10. MISCELLANEOUS.

 

(a) Governing Law;
Jurisdiction; Jury Trial. The corporate laws of the State of Nevada shall govern all issues concerning the relative rights
of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York, County of New York, for
the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

 

(b) Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

(c) Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d) Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

  

    9

     

    

 

(e) Entire Agreement.
The Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company, their affiliates
and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other Transaction Documents
and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters.

 

(f) Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be:

 

If to the Company:

 

SunHydrogen, Inc. 10 E. Yanonali, Suite 36

Santa Barbara, CA 93101

	 	Telephone:	805-966-6566
	 	E-mail:	tyoung@sunhydrogen.com

	 	Attention:	Timothy Young

 

With a copy to (which shall not
constitute notice or service of process):

 

Sichenzia Ross Ference LLP

1185 Avenue of the Americas, 37th
Floor

New York, New York 10036

	 	Telephone:	(212) 930-9700
	 	E-mail:	gsichenzia@srf.law
	 	Attention:	Gregory Sichenzia

 

If to the Investor:

 

GHS Investments, LLC

420 Jericho Turnpike, Suite 102,

Jericho, NY 11753

	 	Telephone: 	 
	 	 	 
	 	E-mail: 	 
	 	Attention: Sarfraz Hajee

 

or at such other address, email address
and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party one (1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s
facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as applicable, or
(C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or email or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii)
above, respectively.

 

(g) Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor,
including by merger or consolidation. The Investor may not assign its rights or obligations under this Agreement.

 

    10

     

    

 

(h) No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

  

(j) Further Assurances.
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to consummate
and make effective, as soon as reasonably possible, the Commencement, and to carry out the intent and accomplish the purposes of
this Agreement and the consummation of the transactions contemplated hereby.

   

(k) No Strict Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party.

  

(l) Enforcement
Costs. In the event of a dispute arising out of or relating to this Agreement, if a court of competent jurisdiction determines
in a final, non-appealable order that a party has breached this Agreement, then, in addition to any other available remedies, the
non-breaching party shall be entitled to, and the breaching party shall be liable for, the reasonable legal fees and expenses incurred
by the non-breaching party in connection with the dispute, including any appeals in connection therewith.

 

(m) Amendment and
Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement (i) may be amended other than by a written instrument
signed by both parties hereto and (ii) may be waived other than in a written instrument signed by the party against whom enforcement
of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege.

 

    11

     

    

 

IN WITNESS WHEREOF,
the Investor and the Company have caused this Purchase Agreement to be duly executed as of the date first written above.

 

	 	THE COMPANY:
	 	 	 
	 	SUNHYDROGEN, INC.
	 	 	 
	 	By:	/s/ Timothy Young 
	 	Name:	Timothy Young 
	 	Title:	Chief Executive Officer
	 	 	 
	 	INVESTOR:
	 	 
	 	GHS INVESTMENTS, LLC
	 	 	 
	 	By:	/s/ Sarfraz Hajee
	 	Name:	Sarfraz Hajee
	 	Title:	Member

 

     

     

    

 

EXHIBIT A

 

FORM OF PURCHASE NOTICE

 

     

     

    

 

EXHIBIT B

 

FORM OF OFFICER’S CERTIFICATEExhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This Employment
Agreement (“Agreement”) is made as of the 23rd day of September, 2020 between Rubius Therapeutics,
Inc., a Delaware corporation (the “Company”), and Jose Carmona (the “Executive”).

 

WHEREAS,
the Company desires to employ the Executive and the Executive desires to be employed by the Company beginning on October 1, 2020
(the “Effective Date”) on the terms and conditions contained herein.

 

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.	Employment.

 

(a)          
Term. The term of this Agreement shall commence on the Effective Date and continue until terminated in accordance
with the provisions hereof (the “Term”).

 

(b)           Position and Duties. During the Term, the Executive shall serve as the Chief Financial Officer of the Company, and
shall have supervision and control over and responsibility for the day-to-day business and affairs of the Company as may from
time to time be prescribed by the Chief Executive Officer of the Company (the “CEO”), provided that such duties are
consistent with the Executive’s position or other positions that the Executive may hold from time to time. The Executive
shall devote the Executive’s full working time and efforts to the business and affairs of the Company. Notwithstanding the
foregoing, except as previously agreed to with the Board of Directors of the Company (the “Board”), the Executive
may not serve on other boards of directors or engage in outside business activities without the prior written consent of the Board,
but the Executive may engage in religious, charitable or other community activities as long as such services and activities are
disclosed to the Board and do not interfere with the Executive’s performance of the Executive’s duties to the Company.
To the extent applicable, the Executive shall be deemed to have resigned from all officer and board member positions that the
Executive holds with the Company or any of its respective subsidiaries and affiliates upon the termination of the Executive’s
employment for any reason. The Executive shall execute any documents in reasonable form as may be requested to confirm or effectuate
any such resignations.

 

		2.	Compensation and Related Matters.

 

(a)           Base
Salary. The Executive’s initial base salary shall be paid at a rate of $450,000 per year. The Executive’s base
salary shall be reviewed annually by the Board or the Compensation Committee of the Board (the “Compensation Committee”).
The base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable
in a manner that is consistent with the Company’s usual payroll practices for executive officers.

 

    	 	 	 

     

    

 

(b)           Cash
Incentive Compensation. During the Term, the Executive shall be eligible to receive cash incentive compensation as
determined by the Board or the Compensation Committee from time to time. The Executive’s initial target annual
cash incentive compensation shall be 40 percent of the Executive’s Base Salary beginning in the fiscal year 2021.
Except as otherwise provided herein, to earn cash incentive compensation, the Executive must be employed by the Company on
the day such cash incentive compensation is paid.

 

(c)           Signing Bonus. In connection with the Executive’s commencement of employment, the Company will pay the Executive
a signing bonus of $200,000 (the “Signing Bonus”), 100 percent of which will be paid concurrently with the annual
bonus payouts for fiscal year 2020 to the current employees of the Company (the “Payment Date”). The Signing Bonus
will be subject to tax-related deductions and withholdings. If the Executive resigns the Executive’s employment for any
reason or the Executive’s employment is terminated by the Company for Cause (as defined below) before the first anniversary
of the Payment Date, the Executive will be obligated to repay the Company 100 percent of the Signing Bonus within ten days following
the Date of Termination. There will be no obligation for repayment of any portion of the Signing Bonus after the first anniversary
of the Payment Date.

 

(d)           Equity Compensation. In connection with the Executive’s commencement of employment, Company management will
recommend to the Board or the Compensation Committee that the Executive receive a stock option to purchase 400,000 shares of the
Company’s common stock under the Company’s 2018 Stock Option and Incentive Plan at a per share exercise price determined
on the grant date in accordance with the Company’s equity grant policies, with 25 percent of the shares underlying the option
vesting on the first anniversary of the Effective Date and the remainder of the shares underlying the option vesting thereafter
in 12 equal quarterly installments until the fourth anniversary of the Effective Date, subject to the Executive’s continued
employment with the Company through each such vesting date.

 

(e)           Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable and documented expenses
incurred by the Executive during the Term in performing services hereunder, in accordance with the policies and procedures then
in effect and established by the Company for its executive officers.

 

(f)            Other Benefits. During the Term, the Executive shall be eligible to participate in or receive benefits under the
Company’s employee benefit plans in effect from time to time, subject to the terms of such plans.

 

(g)           Vacations. During the Term, the Executive shall be entitled to accrue up to 20 paid vacation days each year, which
shall be accrued in accordance with the Company’s policies and procedures. The Executive shall also be entitled to all paid
holidays given by the Company to its executive officers.

 

3.           Termination. During the Term, the Executive’s employment hereunder may be terminated without any breach of
this Agreement under the following circumstances:

 

(a)           Death. The Executive’s employment hereunder shall terminate upon the Executive’s death.

 

    	 	2	 

     

    

 

(b)           Disability.
The Company may terminate the Executive’s employment if the Executive is disabled and unable to perform the essential
functions of the Executive’s then existing position or positions under this Agreement with or without reasonable
accommodation for a period of 180 days (which need not be consecutive) in any 12-month period. If any question shall arise as
to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the
Executive’s then existing position or positions with or without reasonable accommodation, the Executive may, and at the
request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the
Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so
disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement
be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with
such certification. If such question shall arise and the Executive shall fail to submit such certification, the
Company’s determination of such issue shall be binding on the Executive. Nothing in this Section 3(b) shall be
construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and
Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et
seq.

 

(c)           Termination by Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause.
For purposes of this Agreement, “Cause” shall mean: (i) the Executive’s material breach of the terms of this
Agreement or the Restricted Covenants Agreement (as defined below); (ii) the Executive’s material dishonesty, willful misconduct,
gross negligence, or reckless conduct; (iii) the Executive’s commission of an act of fraud, theft, misappropriation or embezzlement;
(iv) the Executive’s commission of, or pleading nolo contendere to, any crime involving dishonesty or moral turpitude or
any felony; or (v) the Executive’s material violation of a Company policy or willful refusal to perform the Executive’s
duties to the Company that were assigned to the Executive by the CEO, following written notice of such violation or refusal by
the Company and a period of 30 days to cure the same.

 

(d)           Termination Without Cause. The Company may terminate the Executive’s employment hereunder at any time without
Cause. Any termination by the Company of the Executive’s employment under this Agreement which does not constitute a termination
for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall
be deemed a termination without Cause.

 

(e)           Termination
by the Executive. The Executive may terminate the Executive’s employment hereunder at any time for any reason,
including but not limited to, Good Reason. For purposes of this Agreement, “Good Reason” shall mean termination
of the Executive’s employment with the Company (or any of its subsidiaries) in accordance with the next sentence after
the occurrence of one or more of the following events without the Executive’s prior written consent: (i) a material
reduction in the Executive’s authority, duties, or responsibilities; (ii) a material reduction in the Executive’s
Base Salary and/or target annual cash incentive compensation opportunity as in effect immediately prior to such reduction,
except for across-the-board reductions based on the Company’s financial performance similarly affecting all or
substantially all senior management employees of the Company; or (iii) any material breach by the Company or a subsidiary of
the Company of any material provision of this Agreement. In order for termination of the Executive’s employment to be
for Good Reason, (w) the Executive must provide the Company with written notice of the acts or omissions constituting the
grounds for “Good Reason” within 60 days of the initial existence of the grounds for “Good Reason,”
(x) the Executive must cooperate in good faith with the Company’s efforts, for a cure period of 30 days following the
date of written notice (the “Cure Period”), to remedy the grounds for “Good Reason,” (y) such grounds
must not have been cured during the Cure Period, and (z) the Executive must terminate the Executive’s employment within
60 days following the Cure Period. If the Company cures the grounds for “Good Reason” during the Cure Period,
 “Good Reason” shall be deemed not to have occurred.

 

    	 	3	 

     

    

 

(f)           Notice of Termination. Except for termination as specified in Section 3(a), any termination of the Executive’s
employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the
other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon.

 

(g)          Date of Termination. “Date of Termination” shall mean: (i) if the Executive’s employment is terminated
by the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated
on account of disability under Section 3(b), by the Company for Cause under Section 3(c) or by the Company without Cause under
Section 3(d), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the
Executive under Section 3(e) other than for Good Reason, 30 days after the date on which a Notice of Termination is given, and
(iv) if the Executive’s employment is terminated by the Executive under Section 3(e) for Good Reason, the date on which
a Notice of Termination is given after the end of the Cure Period. Notwithstanding the foregoing, in the event that the Executive
gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration
shall not result in a termination by the Company for purposes of this Agreement.

 

		4.	Compensation Upon Termination.

 

(a)          Termination Generally. If the Executive’s employment with the Company is terminated for any reason, the Company
shall pay or provide to the Executive (or to the Executive’s authorized representative or estate) (i) any Base Salary earned
through the Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(d) of this Agreement)
and unused vacation that accrued through the Date of Termination on or before the time required by law but in no event more than
30 days after the Executive’s Date of Termination; and (ii) any vested benefits the Executive may have under any employee
benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance
with the terms of such employee benefit plans (collectively, the “Accrued Benefit”).

 

(b)          Termination
by the Company Without Cause or by the Executive for Good Reason. During the Term, if the Executive’s employment is
terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates the Executive’s employment
for Good Reason as provided in Section 3(e), then the Company shall pay the Executive the Accrued Benefit. In addition, subject
to the Executive signing a separation agreement in substantially the form attached hereto as Exhibit A (the “Separation
Agreement and Release”) and the Separation Agreement and Release becoming fully effective, all within the time frame set
forth in the Separation Agreement and Release but in no event more than 60 days after the Date of Termination:

 

(i)             the Company shall pay the Executive an amount equal to nine months of the Executive’s Base Salary (the “Severance
Amount”); provided in the event the Executive is entitled to any payments pursuant to the Restrictive Covenants Agreement
(as defined below), the Severance Amount received in any calendar year will be reduced by the amount the Executive is paid in
the same such calendar year pursuant to the Restrictive Covenants Agreement (the “Restrictive Covenants Agreement Setoff”);
and

 

    	 	4	 

     

    

 

(ii)            if the Executive properly elects to receive benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”), nine months of COBRA premiums for the Executive and the Executive’s eligible dependents
at the Company’s normal rate of contribution for employees for the Executive’s coverage at the level in effect immediately
prior to the Date of Termination; provided, however, if the Company determines that it cannot pay such amounts without potentially
violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), provided that the Executive
is enrolled in the Company’s health care programs immediately prior to the Date of Termination, the Company will in lieu
thereof provide to the Executive a taxable monthly payment in an amount equal to the portion of the COBRA premiums for the Executive
and the Executive’s eligible dependents to continue the Executive’s group health coverage in effect on the Date of
Termination at the Company’s normal rate of contribution for employee coverage at the level in effect immediately prior
to the Date of Termination for a period of nine months. For the avoidance of doubt, the taxable payments described above may be
used for any purpose, including, but not limited to, continuation coverage under COBRA; and

 

(iii)           the amounts payable under Section 4(b)(i) and (ii), to the extent taxable, shall be paid out in substantially equal installments
in accordance with the Company’s payroll practice over nine months commencing on the first payroll date following the effective
date of the Separation Agreement and Release and, in any case, within 60 days after the Date of Termination; provided, however,
that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount to the extent it
qualifies as “non-qualified deferred compensation” within the meaning of Section 409A of the Code, shall begin to
be paid no earlier than the first Company payroll date in the second calendar year and, in any case, by the last day of such 60-day
period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately
following the Date of Termination. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes
of Treasury Regulation Section 1.409A-2(b)(2).

 

5.             Change
in Control Payment. The provisions of this Section 5 set forth certain terms of an agreement reached between the
Executive and the Company regarding the Executive’s rights and obligations upon the occurrence of a Change in Control.
These provisions are intended to assure and encourage in advance the Executive’s continued attention and dedication to
the Executive’s assigned duties and the Executive’s objectivity during the pendency and after the occurrence of
any such event. These provisions shall apply in lieu of, and expressly supersede, the provisions of Section 4(b) regarding
severance pay and benefits upon a termination of employment, if such termination of employment occurs within 12 months after
the occurrence of the first event constituting a Change in Control. These provisions shall terminate and be of no further
force or effect beginning 12 months after the occurrence of a Change in Control.

 

    	 	5	 

     

    

 

(a)          Change in Control. During the Term, if within 12 months after a Change in Control, the Executive’s employment
is terminated by the Company without Cause as provided in Section 3(d) or the Executive terminates the Executive’s employment
for Good Reason as provided in Section 3(e), then, subject to the signing of the Separation Agreement and Release by the Executive
and the Separation Agreement and Release becoming fully effective, all within the time frame set forth in the Separation Agreement
and Release but in no event more than 60 days after the Date of Termination:

 

(i)             the
Company shall pay the Executive a lump sum in cash in an amount equal to one times the sum of (A) the Executive’s then current
Base Salary (or the Executive’s Base Salary in effect immediately prior to the Change in Control, if higher) plus (B) the
Executive’s target annual incentive compensation for the then- current year (the “Change in Control Payment”),
provided the Change in Control Payment shall be reduced by the amount of the Restrictive Covenants Agreement Setoff, if applicable,
paid or to be paid in the same calendar year; and

 

(ii)            except as otherwise expressly provided in any applicable option agreement or other stock-based award agreement, effective
as of the later of (i) the Date of Termination, or (ii) the effective date of the Separation Agreement and Release (the “Accelerated
Vesting Date”), all stock options and other stock-based awards held by the Executive that are subject to time-based vesting
(the “Time-Based Equity Awards”) shall immediately accelerate and become fully exercisable or nonforfeitable. Notwithstanding
anything to the contrary in the applicable plans and/or award agreements governing the Time-Based Equity Awards any termination
or forfeiture of unvested shares underlying the Time-Based Equity Awards that could vest pursuant to this Section 5(a)(ii) and
otherwise would have occurred on or prior to the Accelerated Vesting Date will be delayed until the Accelerated Vesting Date and
will occur only to the extent the Time- Based Equity Awards do not vest pursuant to this Section 5(a)(ii). Notwithstanding the
foregoing, no additional vesting of the Time-Based Equity Awards shall occur during the period between the Executive’s Date
of Termination and the Accelerated Vesting Date; and

 

(iii)           if
the Executive properly elects to receive benefits under COBRA, 12 months of COBRA premiums for the Executive and the
Executive’s eligible dependents at the Company’s normal rate of contribution for employees for the
Executive’s coverage at the level in effect immediately prior to the Date of Termination; provided, however, if the
Company determines that it cannot pay such amounts without potentially violating applicable law (including, without
limitation, Section 2716 of the Public Health Service Act), provided that the Executive is enrolled in the Company’s
health care programs immediately prior to the Date of Termination, the Company will in lieu thereof provide to the Executive
a taxable monthly payment in an amount equal to the portion of the COBRA premiums for the Executive and the Executive’s
eligible dependents to continue the Executive’s group health coverage in effect on the Date of Termination at the
Company’s normal rate of contribution for employee coverage at the level in effect immediately prior to the Date of
Termination for a period of 12 months. For the avoidance of doubt, the taxable payments described above may be used for any
purpose, including, but not limited to, continuation coverage under COBRA; and

 

    	 	6	 

     

    

 

(iv)           The amounts payable under Sections 5(a)(i) and (iii), to the extent taxable, shall be paid or commence to be paid on the
first payroll date following the effective date of the Separation Agreement and Release and, in any case, within 60 days after
the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar
year, such payments to the extent they qualify as “non-qualified deferred compensation” within the meaning of Section
409A of the Code, shall be paid or commence no earlier than the first Company payroll date in the second calendar year and, in
any case, by the last day of such 60-day period.

 

		(b)	Additional Limitation.

 

(i)             Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or
distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Internal Revenue Code
of 1986, as amended (the “Code”), and the applicable regulations thereunder (the “Aggregate Payments”),
would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not
below zero) so that the sum of all of the Aggregate Payments shall be

$1.00 less than
the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction
shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive
would receive if the Aggregate Payments were not subject to such reduction. In such event, the Aggregate Payments shall be reduced
in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid
the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject
to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity- based payments and acceleration;
and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments
that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts
that are subject to calculation under Treas. Reg. §1.280G-1, Q&A- 24(b) or (c).

 

(ii)            For
purposes of this Section 5(b), the “After Tax Amount” means the amount of the Aggregate Payments less all
federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive’s
receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, the Executive shall be deemed to pay
federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year
in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual
taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes.

 

    	 	7	 

     

    

 

(iii)           The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 5(b)(i) shall be
made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide
detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if
applicable, or at such earlier time as is reasonably requested by the Company or the Executive. Any determination by the Accounting
Firm shall be binding upon the Company and the Executive.

 

(c)          Definitions. For purposes of this Section 5, “Change in Control” shall mean a Sale Event as defined
in the Company’s 2018 Stock Option and Incentive Plan.

 

		6.	Section 409A.

 

(a)          Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service
within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee”
within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes
entitled to under this Agreement or otherwise on account of the Executive’s separation from service would be considered
deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a
result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not
be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service,
or (B) the Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment
shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the
application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.

 

(b)          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 (except for any lifetime or other aggregate limitation applicable to medical
expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another
benefit.

 

(c)          To
the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

    	 	8	 

     

    

 

(d)          The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent
that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read
in such a manner so that all payments hereunder comply with Section 409A of the Code. Each payment pursuant to this Agreement
or the Restrictive Covenants Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section
1.409A-2(b)(2). The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary
to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits
provided hereunder without additional cost to either party.

 

(e)          The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any
provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not
satisfy an exemption from, or the conditions of, such Section.

 

		7.	Confidential Information, Noncompetition
                                         and Cooperation.

 

(a)          Restrictive Covenants Agreement. The Executive acknowledges that the Executive previously received a copy of the
Employee Confidentiality, Assignment and Noncompetition Agreement attached hereto as Exhibit B (the “Restrictive
Covenants Agreement”) and, as a condition of the commencement of the Executive’s employment, the Executive shall enter
into the Restrictive Covenants Agreement.

 

(b)          Litigation and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate
fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the
future against or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed
by the Company. The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited
to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at
mutually convenient times. During and after the Executive’s employment, the Executive also shall cooperate fully with the
Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation
or review relates to events or occurrences that transpired while the Executive was employed by the Company. The Company shall
reimburse the Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance
of obligations pursuant to this Section 7(b).

 

    	 	9	 

     

    

 

(c)          Relief.
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 the promises set forth in the Restrictive Covenants Agreement or this Section 7, and that in any
event money damages would be an inadequate remedy for any such breach. Accordingly, the Executive agrees that if the
Executive breaches, or proposes to breach, any portion of this Agreement, the Company shall be entitled, in addition to all
other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Company. In addition, in the event the Executive breaches the Restrictive
Covenants Agreement or this Section 7 during a period when the Executive is receiving severance payments pursuant to Section
4 or Section 5, the Company shall have the right to suspend or terminate such severance payments. Such suspension or
termination shall not limit the Company’s other options with respect to relief for such breach and shall not relieve
the Executive of the Executive’s duties under this Agreement.

 

(d)          Protected Disclosures and Other Protected Action. Nothing in this Agreement shall be interpreted or applied to prohibit
the Executive from making any good faith report to any governmental agency or other governmental entity (a “Government Agency”)
concerning any act or omission that the Executive reasonably believes constitutes a possible violation of federal or state law
or making other disclosures that are protected under the anti- retaliation or whistleblower provisions of applicable federal or
state law or regulation. In addition, nothing contained in this Agreement limits the Executive’s ability to communicate
with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government
Agency, including the Executive’s ability to provide documents or other information, without notice to the Company. In addition,
for the avoidance of doubt, pursuant to the federal Defend Trade Secrets Act of 2016, the Executive shall not be held criminally
or civilly liable under any federal or state trade secret law or under this Agreement or the Restrictive Covenants Agreement for
the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either
directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation
of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

8.            Consent to Jurisdiction. The parties hereby consent to the jurisdiction of the state and federal courts of the Commonwealth
of Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of
such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court,
or otherwise) with respect to personal jurisdiction or service of process.

 

9.            Integration. This Agreement, together with the exhibits hereto, 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.

 

10.          Withholding. All payments made by the Company to the Executive under this Agreement shall be net of any tax or other
amounts required to be withheld by the Company under applicable law.

 

11.          Successor
to the Executive. 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 the Executive’s termination of employment but prior to the completion by the Company of all payments due
the Executive under this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated
in writing to the Company prior to the Executive’s death (or to the Executive’s estate, if the Executive fails to
make such designation).

 

    	 	10	 

     

    

 

12.          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.

 

13.          Survival. The provisions of this Agreement shall survive the termination of this Agreement and/or the termination
of the Executive’s employment to the extent necessary to effectuate the terms contained herein.

 

14.          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.

 

15.          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 registered or 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 Board.

 

16.          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.

 

17.          Governing Law. This is a Massachusetts contract and shall be construed under and be governed in all respects by
the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles thereof.

 

18.          Counterparts. This Agreement may be executed in any number of counterparts, 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.

 

19.          Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree
to perform this Agreement to the same extent that the Company would be required to perform it if no succession had taken place.
Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a
material breach of this Agreement.

 

20.          Gender Neutral. Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine
gender unless the context clearly indicates otherwise.

  

[Signature
Page Follows]

 

    	 	11	 

     

    

 

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

 

	 	Rubius Therapeutics, Inc.
	 	 	 
	 	/s/ Pablo Cagnoni
	 	By:	 Pablo Cagnoni,
M.D.
	 	Its:	 Chief Executive
Officer
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ Jose Carmona
	 	Jose Carmona

 

    

     

    

 

Exhibit
A 

 

Separation
Agreement and Release

 

THIS
SEPARATION AGREEMENT AND RELEASE is entered into between Jose Carmona (the “Executive”) as a condition to receiving
the severance benefits (“Severance Benefits”) to be provided to the Executive by Rubius Therapeutics, Inc. (the “Company”)
pursuant to the Employment Agreement, dated _____________, 2020, between the Executive and the Company (the “Employment
Agreement”), which is incorporated herein by reference. Terms with initial capitalization that are not otherwise defined
in this Separation Agreement and Release have the meanings set forth in the Employment Agreement.

 

The
Executive’s Date of Termination shall be [DATE]. Subject to the terms of the Employment Agreement, the Executive is eligible
to receive the severance benefits set forth in Section 4 or Section 5, as applicable, of the Employment Agreement (the “Severance
Benefits”) upon the terms and conditions of this Separation Agreement and Release.

 

1.    Separation
Agreement and Release. The Executive, on his or her own behalf and on behalf of his or her heirs, executors,
administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and forever discharges, the
Company and each of its affiliates, parents, successors, predecessors, and subsidiaries including, but not limited to, the
employee benefit plans of each and fiduciaries of such plans, and the current and former officers, directors, shareholders,
employees, attorneys, accountants and agents of each in their official and personal capacities (all of the foregoing,
together with the Company, the “Released Parties”) from any and all causes of action, claims and damages,
including attorneys’ fees, whether known or unknown, foreseen or unforeseen, presently asserted or otherwise arising
through the date of his or her signing of the Separation Agreement and Release. This release includes, but is not limited to,
any claim or entitlement to salary, bonuses, any other payments, benefits or damages arising under any federal law
(including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967,
the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family
and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended); any claim arising under
any state or local laws, ordinances or regulations (including, but not limited to, any state or local laws, ordinances or
regulations requiring that advance notice be given of certain workforce reductions), and any claim arising under any common
law principle or public policy, including but not limited to, all suits in tort or contract, such as wrongful termination,
defamation, emotional distress, invasion of privacy or loss of consortium and any other claim of any nature whatsoever, both
in law and equity, whether personal or economic, known or unknown, arising at any and all times up to this date against any
of the Released Parties. Nothing contained in this release shall affect the parties’ respective rights or
ability to enforce (i) their respective rights under this Separation Agreement and Release, (ii) Company’s obligation
to defend and indemnify the Executive under the terms of any separate indemnification agreement, the Company’s
certificate of incorporation and by-laws, Delaware law and any applicable directors and officers liability insurance policy
or (iii) any causes of action or claims that cannot be released as a matter of law provided further, this release shall not
affect Executive’s rights with respect to vested options and/or equity issued to the Executive by the Company,
including such options or equity issued pursuant to Time-Based Equity Awards.

 

    

     

    

 

2.   
Acknowledgements. The Executive is signing this Separation Agreement and Release knowingly and voluntarily. He or
she acknowledges that:

 

		(a)	He
                                         or she has read and understands the legal and binding
                                         effect of this document and that he or she is hereby advised in writing to consult an
                                         attorney before signing this Separation Agreement and Release;

 

		(b)	He
                                         or she has relied solely on his or her own judgment and/or that of his or her attorney
                                         regarding the consideration for and the terms of this Separation Agreement and Release
                                         and is signing this Separation Agreement and Release knowingly and voluntarily of his
                                         or her own free will;

 

		(c)	He
                                         or she is not entitled to the Severance Benefits unless he or she agrees to and complies
                                         fully with the terms of this Separation Agreement and Release;

 

		(d)	He
                                         or she has been given at least [ __days] to consider this Separation Agreement and Release,
                                         and if he or she chose to sign this Separation Agreement and Release in fewer than [
                                         __days] from receipt, that decision was entirely knowing and voluntary;

 

		(e)	To
                                         accept this Separation Agreement and Release, he or she must deliver a signed Separation
                                         Agreement and Release to the [Insert Address] within [ days] of the Executive’s
                                         receipt of this Separation Agreement and Release. The signed Separation Agreement and
                                         Release should be delivered to:

 

[Insert
Address]

 

The Executive
further understands that he or she may revoke this Separation Agreement and Release within seven (7) business days after signing
by written notice within such period to the [Insert Address] at the street address or the email address above. The Executive further
understands that this Separation Agreement and Release is not effective or enforceable until after the seven (7) business day
period of revocation has expired without revocation (the “Effective Date”), and that if he or she revokes this Separation
Agreement and Release within the seven (7) business day revocation period, he or she will not receive the Severance Benefits;

 

		(f)	He
                                         or she has read and understands the Separation Agreement and Release and further understands
                                         that it includes a general release of any all known and unknown,
foreseen and unforeseen claims presently asserted or otherwise arising through the date of his or her signing of this Separation
Agreement and Release that he or she may have against any of the Released Parties; and,

 

    	 	14	 

     

    

 

		(g)	No
                                         statements made or conduct by any of the Released Parties has in any way coerced or unduly
                                         influenced him or her to execute this Separation Agreement and Release.

 

		(h)	Other
                                         than as set forth in Section 4 or Section 5 of the Employment Agreement, all stock options
                                         and other stock-based awards held by the Executive shall be governed by the applicable
                                         equity incentive plan and award agreements (collectively, the “Equity Documents”).

 

3.   
No Admission of Liability. This Separation Agreement and Release does not constitute an admission of liability or
wrongdoing on the part of the any Released Party.

 

4.   
Protected Disclosures. Nothing contained in this Separation Agreement and Release limits the Executive’s ability
to disclose information to the extent necessary to file for unemployment assistance with an applicable state agency, or to file
a charge or complaint with any federal, state or local governmental agency or commission (a “Government Agency”).
In addition, nothing contained in this Separation Agreement and Release limits the Executive’s ability to communicate with
any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency,
including the Executive’s ability to provide documents or other information, without notice to the Company, nor does anything
contained in this Separation Agreement and Release apply to truthful testimony in litigation. If the Executive files any charge
or complaint with any Government Agency and if the Government Agency pursues any claim on the Executive’s behalf, or if
any other third party pursues any claim on the Executive’s behalf, Executive waives any right to monetary or other individualized
relief (either individually or as part of any collective or class action); provided that nothing in this Separation Agreement
and Release limits any right the Executive may have to receive a whistleblower award or bounty for information provided to the
Securities and Exchange Commission. In addition, for the avoidance of doubt, pursuant to the federal Defend Trade Secrets Act
of 2016, the Executive shall not be held criminally or civilly liable under any federal or state trade secret law or under this
Separation Agreement and Release for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state,
or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or
investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal.

 

    	 	15	 

     

    

 

5.    Noncompetition.
In order to protect the Company’s Proprietary Information (as defined in the Restrictive Covenants Agreement) and
goodwill, during the period of one (1) year following the Date of Termination (the “Restricted Period”), the
Executive shall not directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent,
employee, co- venturer or otherwise, anywhere in the world, engage or otherwise participate in any business that develops,
manufactures, or markets any products, or performs any services, that are competitive with the products or services of the
Company, or products or services that the Company or its affiliates, has under development or that are the subject of active
planning at any time during the Executive’s employment. For purposes of this Section 5, the definition of
 “Company” shall include the Company’s subsidiaries and other affiliates and its and their successors and
assigns. The Executive understands and agrees that the restrictions contained in this Section 5 are necessary for the
protection of the business and goodwill of the Company and he or she considers them to be reasonable for such purpose. Any
breach of this Section 5 is likely to cause the Company substantial and irrevocable damage and therefore, in the event of
such breach, the Company, in addition to such other remedies which may be available, will be entitled to specific performance
and other injunctive relief, without the posting of a bond. The Executive further acknowledges that a court may render an
award extending the Restricted Period as one of the remedies in the event of the Executive’s violation of this Section
5. If the Executive violates this Section 5, in addition to all other remedies available to the Company at law, in equity,
and under contract, the Executive agrees that he or she is obligated to pay all the Company’s costs of enforcement of
this Section 5, including reasonable attorneys’ fees and expenses. If any part of this Section 5 is for any reason held
to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

6.   
Continuing Obligations. As a condition of receiving the Severance Benefits, the Executive acknowledges and reaffirms
his or her continuing obligations to the Company pursuant to the Restrictive Covenants Agreement; provided that to the extent
the Company has not already waived Section 8(b) in the Restrictive Covenants Agreement, the Company’s signature on this
Separation Agreement and Release shall constitute a waiver of Section 8(b) of the Restrictive Covenants Agreement, effective as
of the Effective Date. For the avoidance of doubt, the Executive agrees that in no event will the Executive be entitled to both
garden leave pay under the Restrictive Covenants Agreement and Severance Benefits pursuant to this Separation Agreement and Release.
In addition, the Executive acknowledges and reaffirms any other agreement that the Executive has entered into with any of the
Released Parties relating to confidentiality, assignment of inventions, noncompetition and/or nonsolicitation, the terms of which
are incorporated by reference herein. All of the obligations referenced or contained in Sections 5 and 6 of this Separation Agreement
and Release are collectively referred to as the “Continuing Obligations.”

 

7.   
Unemployment Benefits. The Company will not oppose the Executive’s claim for unemployment insurance benefits.

 

8.   
Termination of Payments in the Event of Breach. If the Executive breaches any of his or her obligations under this
Separation Agreement and Release, in addition to any other legal or equitable remedies it may have for such breach, the Company
shall have the right to terminate its payments to the Executive or for the Executive’s benefit under this Separation Agreement
and Release. Any such actions in the event of the Executive’s breach will not affect his or her continuing obligations under
this Separation Agreement and Release.

 

    	 	16	 

     

    

 

9.    Entire
Agreement. This Separation Agreement and Release constitutes the entire agreement between the Company and the Executive
and supersedes any previous agreements or understandings between the Company and the Executive regarding the subject matter
hereof, except the Equity Documents, the Continuing Obligations, and any other obligations specifically preserved in this
Separation Agreement and Release. In signing this Separation Agreement and Release, the Executive is not relying on any
agreements or representations, except those expressly contained in this Separation Agreement and Release.

 

10.   
Severability. If any provision of this Separation Agreement and Release is found, held or deemed by a court of competent
jurisdiction to be void, unlawful, or unenforceable under any applicable statute or controlling law, the remainder of this Separation
Agreement and Release shall continue in full force and effect.

 

11.   
Waiver; Amendment. No waiver of any provision of this Separation Agreement and Release shall be effective unless
made in writing and signed by the waiving party. The failure of a party to require the performance of any term or obligation of
this Separation Agreement and Release, or the waiver by a party of any breach of this Separation Agreement and Release, shall
not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. This Separation
Agreement and Release may not be modified or amended except in a writing signed by both the Executive and a duly authorized officer
of the Company.

 

12.   
Governing Law. This Separation Agreement and Release shall be governed by the laws of the Commonwealth of Massachusetts
excluding the choice of law rules thereof.

 

13.   
Headings. Section and subsection headings contained in this Separation Agreement and Release are inserted for the
convenience of reference only. Section and subsection headings shall not be deemed to be a part of this Separation Agreement and
Release for any purpose, and they shall not in any way define or affect the meaning, construction or scope of any of the provisions
hereof.

 

14.   
Counterparts. This Separation Agreement and Release may be executed in separate counterparts. When both counterparts
are signed, they shall be treated together as one and the same document.

 

    	 	17	 

     

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Separation Agreement and Release effective on the Effective Date.

 

	RUBIUS THERAPEUTICS, INC.	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 	Date
	Title:	 	 	 
	 	              	 	 
	EXECUTIVE:	 	 
	 	  	 	 
	 	 	 
	Jose Carmona	 	Date

 

    	 	 	 

     

    

 

Exhibit
B

 

Restrictive
Covenants Agreement

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