Document:

Exhibit 10.3

 

PLACEMENT AGENT AGREEMENT

 

May 14, 2015

 

LATTICE FUNDING, LLC

Suite E-401

766 Shrewsbury Avenue

Tinton Falls, NJ 07724

 

RE: Placement
Agent Agreement for Participations in 8% Secured Convertible Note Issued by Lattice Incorporated

 

Gentlemen:

 

This letter confirms our agreement that
Lattice Funding, LLC, a Pennsylvania limited liability company (the “Issuer ” or the "Company”) has engaged
Cantone Research, Inc. (“CRI” or the “Placement Agent”) to act as the Company’s exclusive Placement
Agent in connection with the proposed offering (the “Offering”) of certificates of participation (the “Securities”)
in a 8% Senior Secured Convertible Note due April 30, 2020 issued by Lattice Incorporated (the “Note” of “Lattice”),
pursuant to the Company’s private offering memorandum dated April 15, 2015 (the “Memorandum”). The terms of the
Offering and the proposed uses of the gross proceeds of such Offering are summarized in Exhibit A to this Placement Agent Agreement
(the “Agreement”). Lattice is a party to this Agreement. The Offering will be made solely to “accredited investors”
(the “Accredited Investors”), as such term is defined in Rule 501(a) of Regulation D (“Regulation D”) promulgated
under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to an exemption from registration under
applicable federal and state securities laws available under Rule 506(b) of Regulation D and in accordance with the terms of this
Agreement. The gross proceeds of the Offering will be on a best efforts basis (no minimum) up to an aggregate of $1,500,000 (with
a 10% over-allotment option at the Company’s discretion). Any term capitalized in this Agreement, but not defined herein,
shall have the same meaning as defined in the Memorandum.

 

Upon acceptance, (indicated by your signature
below), this Agreement will confirm the terms of the engagement between the Placement Agent and the Company.

 

1.            Appointment.

 

On the basis of the representations, warranties
and covenants contained in this Agreement, and subject to the terms and conditions of this Agreement, the Company hereby retains
the Placement Agent, and the Placement Agent hereby agrees to act, as the Company’s exclusive Placement Agent in connection
with the Offering. As Placement Agent for the Offering, CRI will advise and assist the Company in identifying, and assisting the
Company in issuing, the Securities to selected suitable investors (the “Offerees”) in the Offering under the terms
and conditions described in the Memorandum. The Company acknowledges and agrees that the Placement Agent is only required to use
its “commercially reasonable best efforts” in connection with the Offering and that this Agreement does not constitute
a commitment by the Placement Agent to purchase the Securities or introduce the Company to Offerees. The Company retains the right
to determine all of the terms and conditions of the Offering.

 

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2.            Information.

 

(a)            The Company recognizes that, in completing its engagement hereunder, the Placement Agent will be using and relying on the Memorandum,
publicly available information and on data, material and other information furnished to Placement Agent by the Company, Lattice
or the Company’s and Lattice’s affiliates and agents. The Company and Lattice will cooperate with CRI and furnish,
and cause to be furnished, to CRI, any and all information and data concerning the Company and Lattice, their subsidiaries (if
any) and the Offering that CRI deems appropriate, including, without limitation, Lattice’s acquisition and/or merger plans
and plans for raising capital or additional financing that is reasonably requested by CRI (the “Information”), including
subscription agreements, and the form of the Note (together with the Memorandum, the “Private Placement Materials”).
Any Information and Private Placement Materials forwarded to Offerees will be in form reasonably acceptable to Placement Agent
and its counsel. The Company represents and warrants that all Information and Private Placement Materials, including, but not limited
to, the Company’s financial statements and all information incorporated by reference therein and the Company’s filings
(the “Public Filings”) with the Securities and Exchange Commission (the “Commission”) under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), are, or will be, complete and correct in all material respects
and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein not misleading. For its part, Lattice represents and warrants that all Information and Private Placement Materials regarding
Lattice and the Collateral will be complete and correct in all material respects and will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein not misleading, except where such
statement or omission does not have a material adverse effect on Lattice, the payment of interest and principal of the Note or
the Collateral securing the Note.

 

(b)            It is further agreed that CRI will conduct a due diligence investigation of the Company and Lattice and the Company and Lattice
will reasonably cooperate with such investigation as a condition of CRI’s obligations hereunder. The Company and Lattice
recognize and confirm that the Placement Agent: (i) will use and rely primarily on the Information, the Private Placement Materials,
the Public Filings and information available from generally recognized public sources in performing the services contemplated by
this letter without having independently verified the same; (ii) is authorized as the Placement Agent to transmit to any prospective
investors a copy or copies of the Private Placement Materials and any other legal documentation supplied to the Placement Agent
for transmission to any prospective investors by or on behalf of the Company or by any of the Company’s officers, representatives
or agents, in connection with the performance of the Placement Agent’s services hereunder or any transaction contemplated
hereby; (iii) does not assume responsibility for the accuracy or completeness of the Information or the Private Placement Materials
and such other information, if any provided to the Offerees; (iv) will not make an appraisal of any assets of the Company or Lattice
or the Company generally; and (v) retains the right to continue to perform due diligence of the Company and Lattice, its business
and its officers and directors during the course of the engagement.

 

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(c)            Until the date that is one year from the date hereof, CRI will keep all information obtained from the Company and Lattice confidential
except: (i) Information which is otherwise publicly available, or previously known to or obtained by, CRI independently of the
Company or Lattice and without breach of any agreement known to CRI with the Company or Lattice; (ii) CRI may disclose such information
to its officers, directors, employees, agents, representatives, attorneys, and to its other advisors and financial sources on a
need to know basis only and will ensure that all such persons will keep such information strictly confidential. No such obligation
of confidentiality shall apply to information that: (i) is in the public domain as of the date hereof or hereafter enters the public
domain without a breach by CRI, (ii) was known or became known by CRI prior to the Company’s or Lattice’s disclosure
thereof to CRI, (iii) becomes known to CRI from a source other than the Company or Lattice, as applicable, and other than by the
breach of an obligation of confidentiality owed to the Company or Lattice, (iv) is disclosed by the Company or Lattice to a third
party without restrictions on its disclosure, (v) is independently developed by CRI without the use of Lattice confidential information,
or (vi) in the opinion of its counsel, is required to be disclosed by CRI or its officers, directors, employees, agents, attorneys
and to its other advisors and financial sources, pursuant to any order of a court of competent jurisdiction or other governmental
body or as may otherwise be required by law.

 

(d)            The Company and Lattice recognize that in order for CRI to perform properly its obligations in a professional manner, the Company
and Lattice will keep CRI informed of and, to the extent practicable and as allowed by law, permit CRI to participate in meetings
and discussions between the Company or Lattice and any third party relating to the matters covered by the terms of CRI’s
engagement. If at any time during the course of CRI’s engagement, the Company or Lattice become aware of any material change
in any of the information previously furnished to CRI, it will promptly advise CRI of the change.

 

(e)            The Offering shall be conditioned upon, among other things, the satisfactory completion by CRI of its due diligence investigation
and analysis of the Company and Lattice.

 

3.            Compensation. As compensation for services rendered and to be rendered hereunder by Placement Agent, the Company agrees to pay
Placement Agent the following fees in consideration of the services rendered by the Placement Agent in connection with the Offering,
which shall be reimbursed by Lattice at each closing:

 

(a)            The Company agrees to pay CRI a cash fee payable upon each closing of the transaction contemplated by this Agreement (“Closing”)
equal to eight percent (8%) of the gross amount of Securities sold, plus 1,000 shares of restricted common stock of Lattice (the
“Restricted Stock”) for each $1,000.00 of gross proceeds of the Offering (the “Placement Fee”).

 

(b)            The Company agrees to pay CRI a non-accountable expense allowance in cash (the “Non-Accountable Fee”) equal to 1% of
the gross amount of Participations sold.

 

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(c)            The Company will pay CRI’s legal fees of 1% of the Offering.

 

(d)            If CRI or the Company exercise their piggyback registration rights found in Section 2(e) of the related Loan and Security Agreement
of even date, CRI shall assist and cooperate with legal counsel to Lattice in effecting a filing of a Registration Statement with
the Securities and Exchange Commission with respect to the public offering of the Conversion Shares into which the Note is convertible
and the resale of any restricted securities shares of Lattice common stock issued to CRI or the Company in connection with the
Offering (the “SEC Filing”). Lattice will be responsible for the reasonable costs and expenses of CRI and the Company
in connection with the SEC Filing, but in no event less than 1% of the offering amount to be sold for the benefit of selling securityholders
as disclosed on the cover of the Registration Statement.

 

(e)            Lattice agrees to reimburse the Company for the Placement Fee, the Non-accountable Fee, legal fees and other expenses of the Offering
in cash from the Gross Proceeds of the Offering. In addition, at the Closing or as soon as practicable thereafter, Lattice agrees
to issue 1,000,000 shares of Lattice restricted common stock to the Company as part of its administration fee and the shares of
Lattice restricted common stock to CRI as part of the Placement Fee, disclosed above.

 

4.            Term of Engagement.

 

(a)            This Agreement will remain in effect until June 30, 2015, after which either party shall have the right to terminate it on fifteen
(15) days prior written notice to the other. The date of termination of this Agreement is referred to in this Agreement from time
to time as the “Termination Date.” The period of time during which this Agreement remains in effect is referred to
herein from time to time as the “Term.” In the event, however in the course of CRI’s performance of due diligence
it deems it necessary to terminate the engagement, CRI may do so prior to the Termination Date and upon immediate written notice.

 

(b)            Notwithstanding anything herein to the contrary, the obligation to pay the compensation and expenses described in Section 3, this
Section 4, Sections 7 and 9-18 and all of Exhibit A, will survive any termination or expiration of this Agreement. The termination
of this Agreement shall not affect the Company’s or Lattice’s obligations to pay fees to the extent provided for in
Section 3 above and shall not affect their obligations to reimburse the expenses accruing prior to such termination to the extent
provided for in this Agreement. All such fees and reimbursements due shall be paid to the Placement Agent on or before the Termination
Date (in the event such fees and reimbursements are earned or owed as of the Termination Date) or upon the closing of the Offering
or any applicable portion thereof (in the event such fees are due pursuant to the terms of Section 3 hereof).

 

5.            Certain Placement Procedures. The Company and the Placement Agent each represents to the other that it has not taken, and the Company
and the Placement Agent each agrees with the other that it will not take any action, directly or indirectly, so as to cause the
Offering to fail to be entitled to rely upon the exemption from registration afforded by Section 4(a)(2) of the Securities Act
and Rule 506(b) of Regulation D. In effecting the Offering, the Company and the Placement Agent each agrees to comply in all material
respects with applicable provisions of the Securities Act and any regulations thereunder and any applicable state laws and requirements.
In order to induce CRI to enter into this Agreement, the Company agrees that CRI may rely upon any representations and warranties
made to any Offeree in this Offering (as if fully set forth herein) for its benefit, and that all such representations and warranties
shall be true and correct in all material respects, and shall be true and correct in all material respects as of the date of each
Closing. The Company agrees that it shall cause any opinion of its counsel delivered to any Offerees in the Offering also to be
addressed and delivered to the Placement Agent, or to cause such counsel to deliver to the Placement Agent a letter authorizing
it to rely upon such opinion.

 

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6.            Representations, Warranties and Covenants of CRI.

 

CRI,
its affiliates and any person acting on its or their behalf (the “Placement Agent Parties”) hereby represent and warrant
to, and covenant with, the Company that:

 

(a)            The Securities offered and sold by the Placement Agent have been and will be offered and sold in compliance with all federal and
state securities laws and regulations governing the registration and conduct of broker-dealers, and each Placement Agent Party
making an offer or sale of Securities was or will be, at the time of any such offer or sale, registered as a broker-dealer pursuant
to Section 15(b) of the Exchange Act, and under the laws of each applicable state of the United States (unless exempted from the
respective state’s broker-dealer registration requirements), and in good standing with FINRA;

 

(b)            The Securities offered and sold by the Placement Agent have been and will be offered and sold only to Accredited Investors in accordance
with Rule 506(b) of Regulation D and applicable state securities laws; provided, however, the Company shall make all necessary
filings under Rule 503 of Regulation D and such similar notice filings under applicable state securities laws. The Placement Agent
Parties represent and warrant that they have reasonable grounds to believe and do believe that each person to whom a sale, offer
or solicitation of an offer to purchase Securities was or will be made was and is an Accredited Investor. Prior to the sale and
delivery of a Company security to any such investor, the Placement Agent Parties will obtain an executed subscription agreement
and purchaser questionnaire in the form agreed upon by the Company and the Placement Agent (the “Subscription Documents”).

 

(c)            (i) Sales of the Securities by the Placement Agent will be made only in such jurisdictions in which: (A) the Placement Agent is
a registered broker-dealer; and (B) the Placement Agent has been advised by counsel that the offering and sale of the Securities
is registered under, or is exempt from registration under, applicable laws. (ii) offers and sales of the Securities by the Placement
Agent will be made in compliance with the provisions of Regulation D and/or Section 4(a)(2) of the Securities Act, and the Placement
Agent shall furnish to each Offeree a copy of the Memorandum (including all Schedules and Exhibits thereto) prior to accepting
any subscriptions for Securities.

 

(d)            In connection with the offers and sales of the Securities, the Placement Agent Parties have not and will not:

 

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i.            Offer or sell, or solicit any offer to buy, any Securities by any form of “general solicitation” or “general
advertising”, as such terms are used in Regulation D, or in any manner involving a public offering within the meaning of
Section 4(a)(2) of the Securities Act;

 

ii.           Use any written material other than the Memorandum, a copy of which is attached hereto as Exhibit C , and the Subscription Documents,
and shall only rely upon and communicate information that is publicly available regarding the Company to any potential investors
(without limiting the foregoing, none of the Placement Agent Parties is authorized to make any representation or warranty to any
Offeree concerning the Company or an investment in the Securities); or

 

iii.          Take any action that would constitute a violation of Regulation M under the Exchange Act.

 

(e)            The Placement Agent will periodically notify the Company of the jurisdictions in which it intends the Securities to be offered
by it or will be offered by it pursuant to this Agreement, and will periodically notify the Company of the status of the Offering
conducted pursuant to this Agreement.

 

(f)             The Placement Agent shall cause each affiliate or each party acting on its or their behalf with whom they enter into contractual
arrangements relating to the offer and sale of any Securities to agree, for the benefit of the Company, to the same provisions
contained in this Agreement.

 

7.            Indemnification. The Company and Lattice agree to indemnify the Placement Agent in accordance with the indemnification and other
provisions attached to the Agreement as Exhibit B (the “Indemnification Provisions”), which provisions are incorporated
herein by reference and shall survive the termination or expiration of the Agreement.

 

8.            Other Activities. Lattice acknowledges that CRI has been, and may in the future be, engaged to provide services as an underwriter,
placement agent, finder, advisor and investment banker to other companies in the industry in which Lattice is involved. Subject
to the confidentiality provisions of CRI contained in Section 2 hereof, Lattice acknowledges and agrees that nothing contained
in this Agreement shall limit or restrict the right of CRI or of any member, manager, officer, employee, agent or representative
of CRI, to be a member, manager, partner, officer, director, employee, agent or representative of, investor in, or to engage in,
any other business, whether or not of a similar nature to Lattice’s business, nor to limit or restrict the right of CRI to
render services of any kind to any other corporation, firm, individual or association; provided that CRI and any of its member,
manager, officer, employee, agent or representative shall not use the Information to the detriment of Lattice. CRI may, but shall
not be required to, present opportunities to Lattice.

 

9.            Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement will be governed as to validity, interpretation, construction,
effect and in all other respects by the internal law of the Commonwealth of Pennsylvania. The Company, Lattice and CRI each (i)
agree that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in
the Court of Common Pleas of the Commonwealth of Pennsylvania, County of Delaware, or in the United States District Court for the
Eastern District of Pennsylvania sitting in the City of Philadelphia (ii) waives any objection to the venue of any such suit, action
or proceeding, and the right to assert that such forum is an inconvenient forum, and (iii) irrevocably consents to the jurisdiction
of the Court of Common Pleas of the Commonwealth of Pennsylvania, County of Delaware, or the United States District Court for the
Eastern District of Pennsylvania sitting in the City of Philadelphia in any such suit, action or proceeding. Each of the Company,
Lattice and CRI further agrees to accept and acknowledge service of any and all process that may be served in any such suit, action
or proceeding in the Court of Common Pleas of the Commonwealth of Pennsylvania, County of Delaware, or in the United States District
Court for the Eastern District of Pennsylvania and agree that service of process upon it mailed by certified mail to its address
shall be deemed in every respect effective service of process in any such suit, action or proceeding. The parties hereby expressly
waive all rights to trial by jury in any suit, action or proceeding arising under this Agreement.

 

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10.          Securities Law Compliance. The Company, at its own expense, will obtain any registration or qualification required to sell any
Securities under the Blue Sky laws of any applicable jurisdictions within the applicable required time periods.

 

11.          Representations and Warranties.

 

Each of the Company and Lattice severally
represent and warrant that:

 

(a)            it has full right, power and authority to enter into this Agreement and to perform all of its obligations hereunder;

 

(b)            this Agreement has been duly authorized and executed and constitutes a legal, valid and binding agreement of such party enforceable
in accordance with its terms; and

 

(c)            the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby do not conflict with
or result in a breach of (i) such party’s certificate of incorporation or by-laws or (ii) any agreement to which such party
is a party or by which any of its property or assets is bound; except where such condition does not, singly or in the aggregate,
have a material adverse effect on Lattice, its business, the Collateral, or its ability to pay interest and principal on the Note.

 

12.          Parties; Assignment; Independent Contractor. This Agreement has been and is made solely for the benefit of CRI, Lattice and the
Company and each of the persons, agents, employees, officers, directors and controlling persons referred to in Exhibit A and their
respective heirs, executors, personal representatives, successors and assigns, and nothing contained in this Agreement will confer
any rights upon, nor will this Agreement be construed to create any rights in, any person who is not party to such Agreement, other
than as set forth in this paragraph. The rights and obligations of any party under this Agreement may not be assigned without the
prior written consent of the other parties and any other purported assignment will be null and void. CRI has been retained under
this Agreement as an independent contractor, and it is understood and agreed that this Agreement does not create a fiduciary relationship
among CRI, Lattice and the Company or their respective Boards of Directors or managers. CRI shall not be considered to be the agent
of Lattice or the Company for any purpose whatsoever and CRI is not granted any right or authority to assume or create any obligation
or liability, express or implied, on Lattice’s or the Company’s behalf, or to bind Lattice or the Company in any manner
whatsoever.

 

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13.          Validity. This Agreement contains the entire agreement between the parties hereto. No party has made any statement, agreement or
representation, either oral or written, in connection herewith, modifying, adding or changing the terms and conditions herein set
forth. No present or past dealings between the parties shall be permitted to contradict or modify the terms hereof. No modification
of this Agreement shall be binding unless such modification is in writing and signed by the parties hereto. In case any term of
this Agreement will be held invalid, illegal or unenforceable, in whole or in part, the validity of any of the other terms of this
Agreement will not in any way be affected thereby.

 

14.          Counterparts. This Agreement may be executed in counterparts and each of such counterparts will for all purposes be deemed to be
an original, and such counterparts will together constitute one and the same instrument.

 

15.          Notices. All notices will be in writing and will be effective when delivered in person or sent via facsimile and confirmed by letter,
to the party to whom it is addressed at the following addresses or such other address as such party may advise the other in writing
(copies shall not constitute notice):

 

	If to Lattice:	Lattice Incorporated
	 	7150 N. Park Drive
	 	Suite 500
	 	Pennsauken, NJ 08109
	 	Phone (856) 910-1166
	 	Fax (856) 910-1811
	 	 
	With copies to:	Mitchell Nussbaum, Esq.
	 	Loeb & Loeb, LLP
	 	345 Park Avenue
	 	New York, NY 10154
	 	Telephone: (212) 407-4159
	 	Facsimile: (212) 504-3013
	 	 
	If to the Company:	Lattice Funding, LLC
	 	C/o Cantone Research, Inc.
	 	766 Shrewsbury Avenue
	 	Suite E-401
	 	Tinton Falls, NJ 07724
	 	Telephone: 732-450-3500
	 	Facsimile: 732-450-3520
	 	Attention: Anthony Cantone, Managing Member

 

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	With copies to:	Christopher P. Flannery, Esq.
	 	4 Hillman Drive
	 	Suite 104
	 	Chadds Ford, PA 19317
	 	Telephone: (610) 361-8016
	 	Facsimile: (610) 558-4882
	 	 
	To the Placement Agent:	Cantone Research Inc.
	 	766 Shrewsbury Ave
	 	Tinton Falls, NJ 07724
	 	Telephone: 732-450-3500
	 	Facsimile: 732-450-3520
	 	Attention: Anthony Cantone
	 	 
	With copies to:	Christopher P. Flannery, Esq.
	 	4 Hillman Drive
	 	Suite 104
	 	Chadds Ford, PA 19317
	 	Telephone: (610) 361-8016
	 	Facsimile:  (610) 558-4882

 

16.             
Best Efforts Engagement. It is expressly understood and acknowledged that CRI’s engagement for the Offering does not constitute
any commitment, express or implied, on the part of CRI or of any of its affiliates to purchase or place the Company’s securities
or to provide any type of financing and that the Offering will be conducted by CRI on a “best efforts” (no minimum)
basis.

17.             
Announcements. The Company agrees that CRI shall, upon a successful transaction, have the right to place advertisements in financial
and other newspapers and journals at its own expense describing its services to the Company hereunder, provided that CRI shall
submit a copy of any such advertisement to the Company and Lattice for their respective approval, such approval not to be unreasonably
withheld, conditioned or delayed. The Company further agrees that it shall not issue any press release in connection with the Offering
without CRI’s prior written approval of such press release. Lattice further agrees that CRI’s counsel shall have the
right to review and comment on any Current Report on Form 8-K regarding the Offering prepared by or on behalf of Lattice before
the same is filed with the SEC.

 

Very truly yours,

 

CANTONE RESEARCH, INC.

 

 

 

By: ___________________________________

Anthony Cantone, President

 

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Agreed to and accepted this __th day of May, 2015

 

 

 

LATTICE FUNDING, LLC

 

 

 

By: /s/ Anthony J. Cantone

Anthony J. Cantone, Managing Member

 

 

 

As to the obligations of Lattice Incorporated only,

 

 

 

LATTICE INCORPORATED

 

 

 

By: /s/ Paul Burgess

Paul Burgess, President

 

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Exhibit
A

TERMS OF THE OFFERING

	Issuer	Lattice Funding, LLC
	
         

        Investor Suitability
	
         

        “Accredited Investors” as defined
        in Rule 501 of Regulation D and otherwise acceptable to us. See “Investor Suitability Standards.”

	
         

        Participations Offered
	
         

        Proportionate interest in the Lattice Note
        and Restricted Stock

	
         

        Offering Price
	
         

        100% of the face value of the Note.

	
         

        Maximum Offering Amount
	
         

        Up to $1,500,000 in aggregate principal amount
        of Participations (with a 10% over-allotment option). The closing of the Offering is not conditioned upon the acceptance of subscriptions
        for any minimum aggregate principal amount of Participations.

	
         

        Minimum Investment Per Investor
	
         

        $10,000.00; provided, however,
        that we have the right to accept a lesser investment amount from any prospective purchaser in our sole discretion.

	
         

        Maturity Date
	
         

        The Participations will be due and payable
        simultaneously with the Note on its maturity date, which is April 30, 2020.

	
         

        Interest Rate
	
         

        Interest on the Note will accrue at a rate
        of 8% per annum, payable quarterly in arrears. The first interest payment will be due July 30, 2015 and subsequent payments due
        the 30th day of October, January, April and July thereafter, until the earlier of Lattice’s payment of all principal and
        accrued interest on the Note, or the principal of the Note is converted and all accrued but unpaid interest is paid.

	
         

        Conversion Shares
	
         

        The Company has the right, at any time before
        maturity of the Note, to convert the principal amount of the Note into Conversion Shares at the Conversion Price of $0.15 (subject
        to adjustment). Lattice will pay the Company a fee of 2% of the aggregate principal amount of the Note that is converted upon any
        conversion.

	
         

        Ranking
	
         

        The Note will rank equal to Lattice senior
        debt and ahead of any non-senior debt, except for trade debt.

	
         

        Use of Proceeds
	
         

        The Company intends to use the net proceeds
        from the Offering to purchase the Unit, consisting of the Note and the Restricted Stock. Lattice will use the net proceeds as described
        in the Memorandum.

 

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	Type of Offering	
        The Company is offering the Participations
        on a “best efforts, no minimum” basis, through the Placement Agent.

         

        The Company reserves the right to accept or
        reject any subscription for Participations, in whole or in part, and any subscription for Participations that is not accepted will
        be returned without interest. A subscriber may not revoke a subscription tendered to purchase any Participations.

	
         

        Escrow
	
         

        The cash subscriptions for Participations will
        be held in a non-interest bearing escrow account established by the Placement Agent.

	
         

        Offering Period
	
         

        The Offering will terminate upon the earlier
        of: (i) the Company’s acceptance of subscriptions for the Maximum Offering Amount at one or more Closings or (ii) the Offering
        Termination Date.

	
         

        Offering Termination Date
	
         

        June 30, 2015.

	
         

        Placement Agent Compensation
	
         

        As consideration for acting as Placement Agent,
        Lattice will: pay to CRI (a) a commission equal to 8% of the aggregate gross cash proceeds received by the Company from each Closing,
        (b) 1,000 shares of Lattice’s restricted Common Stock for each $1,000 face value of the Note, and (c) a non-accountable expense
        equal to 1% of the aggregate gross cash proceeds received by the Company from each Closing. Lattice will also reimburse the Company
        for all of its expenses, including legal fees of 1% of the total gross proceeds accepted at any Closing.

	
         

        Administration Fee and Stock Grant
	
         

        The Company will receive an annual administration
        fee from Lattice of 2% of the Principal balance on the Note, payable at the same time Lattice pays interest. This fee increases
        to 3% upon a default under the Note. The Company will also receive 1,000,000 shares of restricted Lattice Common Stock (with registration
        rights)

	 	 

 

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EXHIBIT B

 

INDEMNIFICATION PROVISIONS

 

Capitalized terms used in this Exhibit shall have the meanings ascribed
to such terms in the Agreement to which this Exhibit is attached.

 

Lattice agrees to indemnify and hold harmless
the Placement Agent and each of the other Indemnified Parties (as hereinafter defined) from and against any and all losses, claims,
damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements, and any and all actions, suits,
proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony
or furnishing documents in response to a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements,
as and when incurred, of investigating, preparing, pursing or defending any such action, suit, proceeding or investigation (whether
or not in connection with litigation in which any Indemnified Party is a party)) (collectively, “Losses”), directly
or indirectly, caused by, relating to, based upon, arising out of, or in connection with, Placement Agent’s acting for Lattice
or Funding, including, without limitation, any act or omission by Placement Agent in connection with its acceptance of or the performance
or non-performance of its obligations under the Agreement between Lattice and Placement Agent to which these indemnification provisions
are attached and form a part, any breach by Lattice of any representation, warranty, covenant or agreement contained in the Agreement
or the subscription agreement with the investors (or in any instrument, document or agreement relating thereto, including any agency
agreement), or the enforcement by Placement Agent of its rights under the Agreement or these indemnification provisions, except
to the extent that any such Losses are found in a final judgment by a court of competent jurisdiction (not subject to further appeal)
to have resulted primarily and directly from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification
hereunder.

 

The Company also agrees that no Indemnified
Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to Lattice for or in connection with
the engagement of Placement Agent by Lattice or for any other reason, except to the extent that any such liability is found in
a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from
such Indemnified Party’s gross negligence or willful misconduct.

 

These Indemnification Provisions shall extend
to the following persons (collectively, the “Indemnified Parties”): Placement Agent, its present and former affiliated
entities, managers, members, officers, employees, legal counsel, agents and controlling persons (within the meaning of the federal
securities laws), and the officers, directors, partners, stockholders, members, managers, employees, legal counsel, agents and
controlling persons of any of them. These indemnification provisions shall be in addition to any liability, which Lattice may otherwise
have to any Indemnified Party.

 

    	13

    	 

    

 

If any action, suit, proceeding or investigation
is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall notify Lattice with reasonable promptness;
provided, however, that any failure by an Indemnified Party to notify Lattice shall not relieve Lattice from its obligations hereunder,
except to the extent that such Indemnified Party’s failure has materially prejudiced the Indemnifying Party’s rights
or materially increased its liabilities and obligations hereunder. An Indemnified Party shall have the right to retain counsel
of its own choice to represent it at its own expense. Any such counsel shall, to the extent consistent with its professional responsibilities,
cooperate with Lattice and any counsel designated by Lattice. The Company shall be liable for any settlement of any claim against
any Indemnified Party made with Lattice’s written consent. The Company shall not, without the prior written consent of Placement
Agent, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such
settlement, compromise or consent (i) includes, as an unconditional term thereof, the giving by the claimant to all of the Indemnified
Parties of an unconditional release from all liability in respect of such claim, and (ii) does not contain any factual or legal
admission by or with respect to an Indemnified Party or an adverse statement with respect to the character, professionalism, expertise
or reputation of any Indemnified Party or any action or inaction of any Indemnified Party.

 

In order to provide for just and equitable contribution,
if a claim for indemnification pursuant to these indemnification provisions is made but it is found in a final judgment by a court
of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though
the express provisions hereof provide for indemnification in such case, then Lattice shall contribute to the Losses to which any
Indemnified Party may be subject (i) in accordance with the relative benefits received by Lattice and its stockholders, subsidiaries
and affiliates, on the one hand, and the Indemnified Party, on the other hand, and (ii) if (and only if) the allocation provided
in clause (i) of this sentence is not permitted by applicable law, in such proportion as to reflect not only the relative benefits,
but also the relative fault of Lattice, on the one hand, and the Indemnified Party, on the other hand, in connection with the statements,
acts or omissions which resulted in such Losses as well as any relevant equitable considerations. No person found liable for a
fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for fraudulent misrepresentation.
The relative benefits received (or anticipated to be received) by Lattice and its stockholders, subsidiaries and affiliates shall
be deemed to be equal to the aggregate consideration payable or receivable by such parties in connection with the transaction or
transactions to which the Agreement relates relative to the amount of fees actually received by Placement Agent in connection with
such transaction or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties
exceed the amount of fees previously received by Placement Agent pursuant to the Agreement.

 

Neither termination nor completion of the Agreement
shall affect these Indemnification Provisions which shall remain operative and in full force and effect. The Indemnification Provisions
shall be binding upon Lattice and its successors and assigns and shall inure to the benefit of the Indemnified Parties and their
respective successors, assigns, heirs and personal representatives.

 

    	14EX-10.1

 Exhibit 10.1 

CAPNIA, INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is entered into as of
                    , 2015, (the “Effective Date”) by and between Capnia, Inc. (the “Company”), and
                            (“Executive”). 

1. Duties and Scope of Employment. 

(a) Positions and Duties. Executive’s employment with the Company commenced on
            , 20    (the “Start Date”). As of the Effective Date, Executive will continue to serve as
                            of the Company. Executive will render such business and professional services in
the performance of Executive’s duties, consistent with Executive’s position within the Company, as will reasonably be assigned to Executive by the Company’s Board of Directors (the “Board”). The Board may modify
Executive’s job title and duties as it deems necessary and appropriate in light of the Company’s needs and interests from time to time. The period of Executive’s employment under this Agreement is referred to herein as the
“Employment Term.” 
 (b) Obligations. During the Employment Term, Executive will perform
Executive’s duties faithfully and to the best of Executive’s ability and will devote substantially all of Executive’s business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively
engage in any other employment, occupation or consulting activity for any direct or indirect remuneration that would impact in any material respect Executive’s ability to perform Executive’s duties and obligations hereunder. 

2. At-Will Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and
may be terminated at any time with or without Cause or notice. Executive understands and agrees that neither Executive’s job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the
basis for modification, amendment, or extension, by implication or otherwise, of Executive’s employment with the Company. However, as described in this Agreement, Executive may be entitled to severance benefits depending on the circumstances of
Executive’s termination of employment with the Company. 
 3. Term of Agreement. This Agreement will commence on the Effective
Date. If Executive becomes entitled to benefits under Section 8 during the term of this Agreement, the Agreement will not terminate until all of the obligations of the parties hereto with respect to this Agreement have been satisfied. 

 4. Compensation. 

(a) Base Salary. During the Employment Term, the Company will pay Executive an annual salary of
$            as compensation for Executive’s services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal
payroll practices and be subject to the usual, required withholding. Executive’s Base Salary will be subject to review and adjustments will be made based upon the Company’s normal performance review practices. 

(b) Annual Bonus. Executive will be eligible to participate in any bonus plans or programs maintained from time to time
by the Company on such terms and conditions as determined by the Board or its compensation committee (the “Committee”), including eligibility for a bonus of up to
[            ] of Executive’s Base Salary, upon achievement of performance objectives to be determined by the Board in its sole discretion (the “Target Bonus”). Any
earned bonus will be paid in the next regular payroll period after the Board or the Committee determines that it has been earned, but in no event shall the bonus be paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the close of the Company’s fiscal year in which the bonus is earned, or
(ii) March 15 following the calendar year in which the bonus is earned. 
 (c) Stock Option.
Executive will be granted an option to purchase             shares of the Company’s common stock, at an exercise price equal to the fair market value of Company common stock per share
on the date of grant (the “Option”). Subject to the accelerated vesting provisions set forth herein, the Option will vest as to             of the shares subject to the
Option on the one month anniversary of date of grant of the Option, and as to an additional             of the shares subject to the Option monthly thereafter on the same day of the month
as the date of grant of the Option, so that the Option will be fully vested and exercisable             years from the date of grant of the Option, subject to Executive continuing to
provide services to the Company through the relevant vesting dates. The Option will be subject to the terms, definitions and provisions of the 2014 Equity Incentive Plan (the “2014 Plan”) and the stock option agreement by and
between Executive and the Company (the “Option Agreement”), both of which documents are incorporated herein by reference. 

(d) Equity. Executive will be eligible to receive awards of stock options, restricted stock units or other equity awards
pursuant to any plans or arrangements the Company may have in effect from time to time. The Board or the Committee will determine in its discretion whether Executive will be granted any such equity awards and the terms of any such award in
accordance with the terms of any applicable plan or arrangement that may be in effect from time to time. 
 5. Employee Benefits.
During the Employment Term, Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including, without limitation,
the 

  
 -2- 

 
Company’s group medical, dental, vision, disability, life insurance, and flexible-spending account plans. The Company reserves the right to cancel or change the benefit plans and programs it
offers to its employees at any time. 
 6. Vacation. Executive will be entitled to receive paid annual vacation in accordance with
Company policy for other senior executive officers. 
 7. Expenses. The Company will reimburse Executive for reasonable travel,
entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to
time. 
 8. Severance. If the Company terminates Executive’s employment with the Company without Cause (excluding death or
Disability) or if Executive resigns from such employment for Good Reason, and, in each case, Executive signs and does not revoke a standard release of claims with the Company in a form acceptable to the Company and subject to Section 9
below, then Executive will receive, in addition to Executive’s salary payable through the date of termination of employment and any other employee benefits earned and owed through the date of termination, the following benefits from the
Company: 
 (a) continuing payments of severance pay in accordance with the Company’s normal payroll policies at a rate
equal to Executive’s Base Salary rate, as then in effect, for: (x)             months from the date of such termination without Cause or resignation for Good Reason, if such
termination or resignation occurs prior to             months before a Change in Control of the Company, or
(y)             months from the date of such termination without Cause or resignation for Good Reason, if such termination or resignation occurs within
            months prior to, or             months following, a Change in Control of the Company; 

(b) if such termination or resignation occurs within
            months prior to, or              months following, a Change in Control of the Company, then
            percent (        %) of any Equity Awards held by Executive as of the date of such termination without Cause or resignation for Good
Reason shall immediately vest and become fully exercisable (to the extent applicable); 
 (c) if such termination or
resignation occurs within             months prior to, or             months following, a Change in Control of the Company, then
Executive shall receive             percent (        %) of the Target Bonus for the year in which Executive was terminated without Cause or resigned
for Good Reason; and 
 (d) if Executive elects continuation coverage pursuant to the Consolidated Budget
Reconciliation Act of 1985 (“COBRA”) within the time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents, then the Company will reimburse Executive on the last day of each month for a period
ending (x)             months from the date of such termination without Cause or resignation for Good Reason, if such termination or resignation occurs prior to
            months before a Change in Control of the Company, or (y)  

  
 -3- 

 
            months from the date of such termination without Cause or resignation for Good Reason, if such termination or resignation
occurs within             months prior to, or             months following, a Change in Control of the Company, after
Executive’s employment termination date for the COBRA premiums paid during such period for such coverage (at the coverage levels in effect immediately prior to Executive’s termination); provided, that such coverage shall end upon such
earlier date that Executive and/or Executive’s eligible dependents become covered under similar plans. Notwithstanding the foregoing, if the Company determines in its sole discretion that it cannot provide the benefit described in this
Section 8(b) without potentially violating, or being subject to an excise tax under, applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a
taxable monthly payment, payable on the last day of a given month, in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue Executive’s group health coverage in effect on the termination of employment
date (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made regardless of whether Executive elects COBRA continuation coverage and will commence on the month following Executive’s
termination of employment and will end on the earlier of (A) the date upon which Executive obtains other employment or (B) the date the Company has paid an amount equal to
(x)             payments if such termination without Cause or resignation for Good Reason occurs prior to
             months before a Change in Control of the Company, or (y)             payments if such termination or
resignation occurs within             months prior to, or             months following, a Change in Control of the Company. For
the avoidance of doubt, the taxable payments in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings. 

9. Conditions to Receipt of Severance; No Duty to Mitigate. 

(a) Separation Agreement and Release of Claims. The payment of any severance set forth in Section 8 above is
contingent upon Executive signing and not revoking the Company’s standard separation and release of claims agreement upon Executive’s termination of employment and such agreement becoming effective no later than sixty (60) days
following Executive’s employment termination date (such deadline, the “Release Deadline”). In no event will severance payments be paid or provided until the release actually becomes effective. Any severance payments or benefits
under this Agreement will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or if later, such
time as required by Section 9(c). Except as required by Section 9(c), any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but
for the preceding sentence will be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments will be made as provided in the
Agreement. 

  
 -4- 

 (b) Confidential Information Agreement. Executive’s receipt of any
payments or benefits under Section 8 will be subject to Executive continuing to comply with the terms of Executive’s Confidential Information Agreement (as defined in Section 12). 

(c) Section 409A. 

(i) Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits payable upon separation that is payable to
Executive, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation (together, the “Deferred Payments”) under Section 409A
of the Internal Revenue Code, as amended (the “Code”) and the final regulations and official guidance thereunder (“Section 409A”) will be payable until Executive has a “separation from service” within the
meaning of Section 409A.  
 (ii) Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified
employee” within the meaning of Section 409A at the time of Executive’s termination (other than due to death), then the Deferred Payments, if any, that are payable within the first six (6) months following Executive’s
separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service. All subsequent Deferred Payments, if
any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service, but prior to the six
(6) month anniversary of the separation from service, then any payments delayed in accordance with this Section 9(c) will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all
other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment, installment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations. 
 (iii) Any severance payment that satisfies the requirements of the
“short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Payments for purposes herein. Any amount paid under this Agreement that qualifies as a payment made as a result
of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes herein. 

(iv) For purposes of this Agreement, “Section 409A Limit” means the lesser of two (2) times:
(x) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding Executive’s taxable year of Executive’s termination of employment as determined under
Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto, or (y) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code
for the year in which Executive’s employment is terminated. 
 (v) The foregoing provisions are intended to comply with or be
exempt from the requirements of Section 409A so that none of the severance payments and benefits to be 

  
 -5- 

 
provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. Executive and the Company agree to work
together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive
under Section 409A. 
 (d) No Duty to Mitigate. Executive will not be required to mitigate the amount of any
payment contemplated by this Agreement, nor will any earnings that Executive may receive from any other source reduce any such payment. 

10. Definitions. 

(a) Cause. For purposes of this Agreement, “Cause” means: (i) Executive’s act of personal
dishonesty in connection with his responsibilities as an employee that is intended to result in Executive’s substantial personal enrichment; (ii) Executive being convicted of, or pleading no contest or guilty to, (x) a misdemeanor
that the Company reasonably believes has had or will have a material detrimental effect on the Company, or (y) any felony; (iii) Executive’s gross misconduct; (iv) Executive’s willful and continued failure to perform the
duties and responsibilities of Executive’s position after there has been delivered to Executive a written demand for performance from the Company that describes the basis for the Company’s belief that Executive has not substantially
performed Executive’s duties and Executive has not corrected such failure within thirty (30) days of such written demand; or (v) Executive’s material violation of any written Company employment policy or standard of conduct,
including a material breach of the Confidential Information Agreement. 
 (b) Change in Control. For purposes of this
Agreement, “Change in Control” has the same meaning assigned to such term in the 2014 Plan. 
 (c)
Disability. For purposes of this Agreement, “Disability” means Executive’s inability to perform Executive’s duties due to Executive’s physical or mental incapacity, as reasonably determined by the Board or its
designee, for an aggregate of 180 days in any 365 consecutive day period. 
 (d) Equity Awards. For purposes of this
Agreement, “Equity Awards” means Executive’s outstanding stock options, stock appreciation rights, restricted stock units, performance shares, performance stock units and any other Company equity compensation awards. 

(e) Good Reason. For purposes of this Agreement, “Good Reason” means Executive’s resignation
within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the following, without Executive’s consent: (i) a material reduction in Executive’s Base
Salary, excluding the substitution of substantially equivalent compensation and benefits, that is not generally 

  
 -6- 

 
applicable to all Company senior management or employees of the Company generally; (ii) a material reduction of Executive’s authority, duties or responsibilities, unless Executive is
provided with a comparable position; provided, however, that a reduction in authority, duties, or responsibilities solely by virtue of the Company being acquired and made part of a larger entity whether as a subsidiary, business unit or otherwise
(as, for example, when the Chief Executive Officer of the Company remains as such following an acquisition where the Company becomes a wholly owned subsidiary of the acquirer, but is not made the Chief Executive Officer of the acquiring corporation)
will not constitute “Good Reason”; or (iii) a material change in the geographic location of Executive’s primary work facility or location; provided, that a relocation of fifty (50) miles or less from Executive’s then
present location or to Executive’s home as Executive’s primary work location will not be considered a material change in geographic location. In order for an event to qualify as Good Reason, Executive must not terminate employment with the
Company without first providing the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a
reasonable cure period of not less than thirty (30) days following the date of such notice, and such grounds must not have been cured during such time. 

11. Limitation on Payments. In the event that the severance benefits provided for in this Agreement or otherwise payable to Executive
(i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 11, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s
severance benefits under Section 8 will be either: 
 (a) delivered in full, or 

(b) delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax
under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the
excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under
Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction will occur in the following order: (i) reduction
of cash payments, which shall occur in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; (ii) reduction
of acceleration of vesting of equity awards, which shall occur in the reverse order of the date of grant for such stock awards (i.e., the vesting of the most recently granted stock awards will be reduced first); and (iii) reduction of other
benefits paid or provided to the Executive, which shall occur in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced. If
more than one equity award was made to the Executive on the same date of grant, all such awards shall have their acceleration of vesting reduced pro rata. In no event shall the Executive have any discretion with respect to the ordering of payment
reductions. 

  
 -7- 

 Unless the Company and Executive otherwise agree in writing, any determination required under
this Section 11 will be made in writing by a nationally recognized firm of independent public accountants selected by the Company (the “Accountants”), whose determination will be conclusive and binding upon Executive and the
Company for all purposes. For purposes of making the calculations required by this Section 11, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.
The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 11. 

12. Confidential Information. Executive confirms Executive’s continuing obligations under the Company’s standard At-Will
Employment, Proprietary Information and Invention Assignment Agreement (the “Confidential Information Agreement”) dated on or about the Start Date. 

13. Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives
of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.
None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or
other disposition of Executive’s right to compensation or other benefits will be null and void. 
 14. Notices. All notices,
requests, demands and other communications called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally; (ii) one (1) day after being sent by a well established commercial
overnight service; or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the
parties may later designate in writing: 
 If to the Company: 

Capnia, Inc. 
 Attn: President

 3 Twin Dolphin Drive, Suite 160 

Redwood City, CA 94065 
 If to
Executive: 
 at the last residential address known by the Company. 

  
 -8- 

 15. Severability. In the event that any provision hereof becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

16. Integration. This Agreement, together with the 2014 Plan, Option Agreement and the Confidential Information Agreement represents
the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. This Agreement may be modified only by agreement of the parties by a written
instrument executed by the parties that is designated as an amendment to this Agreement. 
 17. Waiver of Breach. The waiver of a
breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 

18. Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this
Agreement. 
 19. Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

 20. Governing Law. This Agreement will be governed by the laws of the State of California (with the exception of its conflict of
laws provisions). 
 21. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and
obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 

22. Counterparts. This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an
original and will constitute an effective, binding agreement on the part of each of the undersigned. 
 [Remainder of Page
Intentionally Left Blank] 

  
 -9- 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company
by their duly authorized officers, as of the day and year first above written. 
  

									
	COMPANY:				
			
	CAPNIA, INC.				
					
	By:		  
				Date:		  

			
	Anish Bhatnagar, MD				
			
	Chief Executive Officer				
			
	EXECUTIVE:				
					
	By:		  
				Date:		  

 [Signature Page to             Employment
Agreement] 

  
 -10-

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