Document:

Exhibit 10.69

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is entered into by and between Robert Miller (the “Executive”), and Oculus
Innovative Sciences, Inc., a Delaware corporation (the “Corporation”), as of June 20, 2013 (the “Effective
Date”). This Agreement replaces that certain employment agreement dated as of June 1, 2004 and entered into by and between
the Executive and the Corporation.

 

RECITALS

 

WHEREAS, prior to
the date hereof, the Executive has served as Chief Financial Officer of the Corporation in accordance with the terms and conditions
set forth in the related employment agreement dated as of June 1, 2004 between the Corporation and the Executive;

 

WHEREAS, the Corporation
desires that the Executive continue to be employed by the Corporation as its Chief Financial Officer, and to carry out the duties
and responsibilities described below, all on the terms and conditions set forth herein; and

 

WHEREAS, the Executive
is willing to accept such employment on such terms and conditions.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and promises of the parties herein, the receipt and sufficiency
of which are hereby acknowledged by each of the parties, the Corporation and the Executive hereto agree as follows:

 

1. Employment
and Duties.

 

1.1 Position.
On the terms and subject to the conditions set forth herein, the Corporation agrees to continue to employ the Executive as its
Chief Financial Officer for the Period of Employment (as defined in Section 2). The Executive does hereby accept and agree to such
employment, on the terms and conditions expressly set forth in this Agreement.

 

1.2 Duties.
During the Period of Employment (as defined in Section 2), the Executive shall serve the Corporation as its Chief Financial Officer
(“CFO”). The Executive shall, without limitation and without limiting the Executive’s other duties to
the Corporation, and without limiting the authority of the Corporation’s Board of Directors (the “Board”),
be responsible for the financial affairs of the Corporation and have such other duties and responsibilities as the Chief Executive
Officer (“CEO”) shall designate that are consistent with the Executive’s position as CFO. The Executive
shall perform all of such duties and responsibilities in accordance with the legal directives of the Board and in accordance with
the practices and policies of the Corporation as in effect from time to time throughout the Period of Employment (as defined in
Section 2) (including, without limitation, the Corporation’s insider trading and ethics policies, as they may change from
time to time). While employed as CFO, the Executive shall report exclusively to the CEO. Throughout the Period of Employment (as
defined in Section 2), the Executive shall not serve on the boards of directors or advisory boards of any other entity, except
for any wholly or majority owned subsidiaries of the Corporation, unless such service is expressly approved by the Board.

 

1.3 No Other Employment;
Minimum Time Commitment. Throughout the Period of Employment (as defined in Section 2), the Executive shall both (i) devote
substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s duties for
the Corporation, and (ii) hold no other job. The Executive agrees that any investment or direct involvement in, or any appointment
to or continuing service on the board of directors or similar body of, any corporation or other entity, other than wholly or majority
owned subsidiaries of the Corporation, must be first approved in writing by the Corporation. The foregoing provisions of this Section
1.3 shall not prevent the Executive from investing in non-competitive, publicly-traded securities to the extent permitted by Section
7(b). The Executive agrees that, as of the Effective Date, Exhibit A to this Agreement sets forth a complete and accurate
description of (i) any investment or direct involvement of the Executive in any other corporation or business that reasonably could
be construed as falling outside of the scope of the foregoing permitted investments and involvement, and (ii) any board of directors
or similar body of any corporation or other entity on which the Executive is a member, other than wholly or majority owned subsidiaries
of the Corporation.

 

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1.4 No Breach of
Contract. The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement by the
Executive and the Corporation and the performance by the Executive of the Executive’s duties hereunder shall not constitute
a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise
bound; (ii) the Executive has no information (including, without limitation, confidential information and trade secrets) of any
other person or entity which the Executive is not legally and contractually free to disclose to the Corporation; and (iii) the
Executive is not bound by any confidentiality, trade secret or similar agreement (other than this Agreement) with any other person
or entity.

 

1.5 Location.
The Executive acknowledges that the Corporation’s principal executive offices are currently located in Petaluma, California.
The Executive’s principal place of employment shall be the Corporation’s principal executive offices, though such principal
place of employment of the Executive may be moved from time to time upon mutual agreement by the Executive and the Corporation.
The Executive agrees that the Executive will be regularly present at the Corporation’s principal executive offices, or such
other location as the parties may designate, and that the Executive may be required to travel from time to time in the course of
performing the Executive’s duties for the Corporation.

 

2. Period of Employment. The “Period
of Employment” shall commence on the Effective Date, and shall continue in full force and effect until the date of the
Executive’s termination pursuant to Section 5. This Agreement shall govern the terms of Executive’s employment hereunder
on and after the Effective Date.

 

3.Compensation.

 

3.1 Base Salary.
As of the Effective Date and during the Period of Employment, the Corporation shall pay to the Executive a base salary at the rate
of $250,000 per year, subject to increase (but not decrease) by the Board (the “Base Salary”) with the sole
exception set forth in Section 3.2 below. The Executive’s Base Salary shall be paid in accordance with the Corporation’s
regular payroll practices in effect from time to time, but not less frequently than in monthly installments.

 

3.2 Stock Awards.
The Executive shall continue to vest in those options to purchase the Corporation’s common stock previously granted to the
Executive in accordance with the terms of such option grants. The Corporation may, in its sole discretion, grant additional stock
options and/or make other stock-based awards to the Executive.

 

4.Benefits.

 

4.1 Health and Welfare.
During the Period of Employment, the Executive shall be entitled to participate in all employee pension and welfare benefit plans
and programs made available by the Corporation to the Corporation’s senior-level employees generally, as such plans or programs
may be in effect from time to time.

 

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4.2 Reimbursement
of Business Expenses. The Executive is authorized to incur reasonable expenses in carrying out the Executive’s duties
for the Corporation under this Agreement and entitled to reimbursement for all such expenses the Executive incurs during the Period
of Employment in connection with carrying out the Executive’s duties for the Corporation, subject to the Corporation’s
reasonable expense reimbursement policies in effect from time to time. The Corporation shall reimburse the Executive to the extent
required by the preceding sentence.

 

4.3 Vacation and
Other Leave. During the Period of Employment, the Executive shall accrue and be entitled to take paid vacation in accordance
with the Corporation’s standard vacation policies in effect from time to time, including the Corporation’s policies
regarding vacation accruals. The Executive shall also be entitled to all other holiday and leave pay generally available to all
other employees of the Corporation.

 

5.Termination.

 

5.1 Termination
by the Corporation. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated at
any time by the Corporation: (i) with Cause (as defined in Section 5.5), or (ii) without Cause (as defined in Section 5.5), or
(iii) in the event of the Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive
has a Disability (as defined in Section 5.5).

 

5.2 Termination
by the Executive. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated at any
time by the Executive, on no less than thirty (30) days’ prior written notice to the Corporation. Any termination by the
Executive for Good Reason (as defined in Section 5.5) shall be communicated by a Notice of Termination to the Corporation. For
purposes of this Agreement, in the case of a notice given by the Executive to the Corporation, a “Notice of Termination”
means a written notice which (i) is communicated to the Corporation within thirty (30) days of the initial existence of the condition
giving rise to the Executive’s right to terminate for Good Reason, (ii) indicates the specific termination provision in this
Agreement relied upon, (iii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated, (iv) waives the Executive’s right to terminate for
Good Reason if the Corporation within thirty (30) days of such notice cures the condition otherwise giving rise to the Executive’s
right to terminate for Good Reason, and (v) if the termination date is other than the date that is thirty-one (31) days after the
communication of such notice, specifies the termination date.

 

5.3 Benefits Upon
Termination. If the Executive’s employment by the Corporation is terminated during the Period of Employment for any reason
by the Corporation or by the Executive, the Corporation shall have no further obligation to make or provide to the Executive, and
the Executive shall have no further right to receive or obtain from the Corporation, any payments or benefits, except:

 

(a) the Corporation
shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations (as defined in Section
5.5); and

 

(b) if, during
the Period of Employment, the Executive’s employment is terminated by the Corporation without Cause (as defined in Section
5.5) or by the Executive for Good Reason (as defined in Section 5.5) (and, in each case, other than due to either the Executive’s
death, or a good faith determination by the Board that the Executive has a Disability (as defined in Section 5.5)):

 

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(i) the Corporation
shall, subject to the conditions set forth in Section 5.3(c) and the constraints set forth in Section 5.8, also pay the Executive
a lump sum severance benefit equal to eighteen (18) times the average monthly Base Salary paid to the Executive over the twelve
(12) whole months preceding the month in which the termination of the Executive’s employment occurs (or, if the Period of
Employment has not been in effect for twelve (12) whole months preceding the month in which the termination of the Executive’s
employment occurs, the average monthly Base Salary for this purpose shall be determined based on the average monthly Base Salary
paid to the Executive over the whole months in the Period of Employment occurring prior to the month in which the termination of
the Executive’s employment occurs). Subject to the conditions set forth in Section 5.3(c), such lump sum amount shall be
paid to the Executive (without interest) no later than seven (7) days following the date on which the Executive’s employment
by the Corporation terminates;

 

(ii) the Corporation shall, subject
to the conditions set forth in Section 5.3(c), pay as a severance benefit one hundred percent (100%) of the Executive’s premiums
under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for the same or reasonably equivalent medical
coverage as in effect on the date the Executive’s employment terminated for a period not to exceed the lesser of one year
following the date of such termination or until the Executive becomes eligible for medical insurance coverage provided by another
employer; and

 

(iii) as of the date the Executive’s
employment terminates, any and all stock options, stock appreciation rights, restricted stock awards, and similar equity and equity-based
awards granted by the Corporation to the Executive outstanding immediately prior to such termination of employment shall thereupon
be deemed fully vested and shall be exercisable for a period of no less than twelve (12) months thereafter or until the stated
expiration date for such option or award at the end of its maximum term, whichever is earlier; provided, however, that this Section
5.3(b)(iii) shall not affect any right of the Corporation to terminate such option or award in connection with a change in control
of the Corporation or similar event to the extent such right exists under the provisions of any agreement evidencing such option
or award.

 

(c) Any obligation
of the Corporation pursuant to Section 5.3(b) to pay a severance benefit in the circumstances described therein is further subject
to the following two conditions precedent: (i) such severance obligation shall be paid only if the Executive has remained in compliance
with all of the provisions of Section 5.6 and Sections 7 through 12, and such obligation shall terminate immediately if the Executive
is for any reason not in compliance with one or more of the provisions of Section 5.6, and Sections 7 through 12; and (ii) the
Executive’s satisfaction of the release obligations set forth in Section 5.4. For purposes of the preceding sentence, if
the Executive is not in compliance with one or more provisions of Section 5.6, and Sections 7 through 12, and a cure is reasonably
possible in the circumstances, the Executive will not be deemed to have breached such provision(s) unless the Executive is given
notice and a reasonable opportunity (in no case shall more than a 10 business day cure period be required) to cure such breach
and such breach is not cured within such time period. The parties agree that a cure will not be reasonably possible in all circumstances
including, without limitation, a material breach of confidentiality or similar occurrence.

 

(d) Except as expressly
provided herein, the foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt of benefits otherwise
due to terminated employees under group insurance coverage consistent with the terms of the applicable welfare benefit plan of
the Corporation; (ii) the Executive’s rights under COBRA to continue participation in medical, dental, hospitalization and
life insurance coverage; (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the Corporation’s
401(k) plan (if any); or (iv) any rights that the Executive may have under and with respect to a stock option, stock appreciation
right, restricted stock award, or similar equity or equity-based award, to the extent that such award was granted before the date
that the Executive’s employment by the Corporation terminated and to the extent expressly provided in the written agreement
evidencing such award.

 

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5.4 Release; Exclusive Remedy.

 

(a) This Section 5.4
shall apply notwithstanding anything else contained in this Agreement to the contrary. As a condition precedent to any obligation
of the Corporation to the Executive pursuant to Section 5.3(b), the Executive shall, upon or promptly following his last day of
employment with the Corporation, provide the Corporation with a valid, executed, written Release (as defined in Section 5.5) (in
a form provided by the Corporation) and such Release (as defined in Section 5.5) shall have not been revoked by the Executive pursuant
to any revocation rights afforded by applicable law. The Corporation shall have no obligation to make any payment to the Executive
pursuant to Section 5.3(b) unless and until the Release (as defined in Section 5.5) contemplated by this Section 5.4 becomes irrevocable
by the Executive in accordance with all applicable laws, rules and regulations.

 

(b) The Executive agrees
that the payments contemplated by Section 5.3 shall constitute the exclusive and sole remedy for any termination of his employment
and the Executive covenants not to assert or to pursue any other remedies, at law or in equity, with respect to any termination
of employment. The Corporation and Executive acknowledge and agree that there is no duty of the Executive to mitigate damages under
this Agreement. All amounts paid to the Executive pursuant to Section 5.3 shall be paid without regard to whether the Executive
has taken or takes actions to mitigate damages.

 

5.5 Certain Defined Terms.

 

(a) As used herein,
“Accrued Obligations” means:

 

(i) any Base
Salary that has accrued but has not yet been paid to the Executive (including accrued and unpaid vacation time) prior to the date
of termination; and

 

(ii) any
reimbursement due to the Executive pursuant to Section 4.2 for expenses incurred by the Executive prior to the date of termination.

 

(b) As used herein,
“Cause” shall mean the reasonable and good faith determination by a majority of the Board based on its reasonable
belief at the time, that, during the Period of Employment, any of the following events or contingencies exists or has occurred:

 

(i) the Executive
is convicted of, or has pled guilty to, a felony (as such term is defined under the laws of the United States or any state thereof);
or

 

(ii) the
Executive has engaged in acts of fraud, material dishonesty or other acts of willful misconduct in the course of his duties hereunder,
unless the Executive believed in good faith that such acts were in the interests of the Corporation; or

 

(iii) the Executive
willfully and repeatedly fails to perform or uphold his duties under this Agreement; or

 

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(iv) the Executive
willfully fails to comply with reasonable directives of the CEO which are communicated to him in writing.

 

(c) As used herein,
“Disability” shall mean a physical or mental impairment which substantially limits a major life activity of
the Executive and which renders the Executive unable to perform the essential functions of the Executive’s position, even
with reasonable accommodation which does not impose an undue hardship on the Corporation, for ninety (90) days in any consecutive
twelve (12) month period, but only if the Executive is considered to be disabled within the meaning of Treasury Regulation section
1.409A-3(i)(4). Without limiting the circumstances in which the Executive may be determined to be disabled as defined in Treasury
Regulation section 1.409A-3(i)(4), the Executive will be presumed to be disabled if determined to be totally disabled by the Social
Security Administration or if determined to be disabled in accordance with a disability insurance program, provided the definition
of disability applied under such disability insurance program complies with the requirements of Treasury Regulation section 1.409A-3(i)(4).

 

(d) As used herein,
“Good Reason” shall mean the occurrence of one or more of the following without the Executive’s written
consent:

 

(i) the assignment
of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities and status
(including titles and reporting requirements) as CFO of the Corporation, or a material reduction or alteration in the nature or
status of the Executive’s authorities, duties or responsibilities, other than an insubstantial and inadvertent act that is
remedied by the Corporation promptly after receipt of notice thereof given by the Executive; or

 

(ii) a reduction
by the Corporation in the Executive’s Base Salary as in effect on the Effective Date or as the same shall be increased from
time to time, other than as specified in Section 3.2, or the Corporation otherwise fails to satisfy its compensation obligations
to the Executive under this Agreement, after written notice by the Executive and a reasonable opportunity to cure; or

 

(iii) only
after a sale of the Corporation, the Corporation’s requirement that the Executive to be based at any office or location more
than fifty (50) miles from the Corporation’s headquarters in Petaluma, California; or

 

(iv) the
failure of the Corporation to obtain a satisfactory agreement from any successor to the Corporation to assume and agree to perform
this Agreement.

 

provided, however,
that none of the events specified in clause (i), (ii), or (iii) above shall constitute Good Reason unless the Executive shall have
notified the Corporation in writing describing the events which constitute Good Reason and the Corporation shall have failed to
cure such event within a reasonable period, not to exceed ten (10) business days, after the Corporation’s actual receipt
of such written notice.

 

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(e) As used herein,
“Release” shall mean a written release, discharge and covenant not to sue entered into by the Executive on behalf
of himself, his descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, of and in
favor of the Corporation, its parent (if any), the Corporation’s subsidiaries and affiliates, past and present, and each
of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, shareholders, members,
representatives, assigns, and successors, past and present, and each of them (the “releasees”), with respect to and
from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations,
debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity
or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which the Executive
may then own or hold, or the Executive at any time theretofore owned or held, or may in the future hold as against any or all of
said releasees, arising out of or in any way connected with the Executive’s employment relationship with each and every member
of the Company Group (as defined in Section 7) with which the Executive has had such a relationship, or the termination of his
employment or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, known or unknown,
suspected or unsuspected, resulting from any act or omission by or on the part of said releasees, or any of them, committed or
omitted prior to the date of such Release including, without limiting the generality of the foregoing, any claim under Section
1981 of the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the California Fair Employment and Housing Act, the
California Family Rights Act, any other claim under any other federal, state or local law or regulation, and any other claim for
severance pay, bonus or incentive pay, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any
other fringe benefit, medical expenses, or disability (except that such Release shall not constitute a release of any Corporation
obligation to the Executive that may be due to the Executive pursuant to Section 5.3(b) upon the Corporation’s receipt of
such Release). The Release shall also contain the Executive’s representation and warranty that he has not theretofore assigned
or transferred to any other person or entity, other than the Corporation, any released matter or any part or portion thereof and
that he will defend, indemnify and hold harmless the Corporation and the aforementioned releasees from and against any claim (including
the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) that is directly or indirectly
based on or in connection with or arising out of any such assignment or transfer made, purported or claimed.

 

(f)As
used herein, a “Change of Control” shall mean the occurrence of any of the following:

 

i.           
a sale, lease or other disposition of all or substantially all of the assets of the Corporation and its subsidiaries, taken
as a whole;

 

ii.           
any consolidation or merger of the Corporation with or into any other corporation or other person, or any other corporate
reorganization or transaction (including the acquisition of capital stock of the Corporation), whether or not the Corporation
is a party thereto, in which the stockholders of the Corporation immediately prior to such consolidation, merger, reorganization
or transaction, own capital stock and either:

 

a. represent directly,
or indirectly through one or more entities, less than fifty percent (50%) of the economic interests in or voting power of the
Corporation or other surviving entity immediately after such consolidation, merger, reorganization or transaction; or

   

b. do not
directly, or indirectly through one or more entities, have the power to elect a majority of the entire board of directors of the
Corporation or other surviving entity immediately after such consolidation, merger, reorganization or transaction; or

 

iii.           
any stock sale or other transaction or series of related transactions, whether or not the Corporation is a party thereto,
after giving effect to which in excess of fifty percent (50%) of the Corporation’s voting power is owned directly, or indirectly
though one or more entities, by any person and its “affiliates” or “associates” (as such terms are defined
in the rules adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended).

 

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(g)For purposes of the
definition of “Change of Control”, the following definitions shall be applicable:

 

i.           
The term “person” shall mean any individual, corporation or other entity and any group as such term is used
in Section 13(d) (3) or 14(d) (2) of the Exchange Act.

 

ii.           
Any person shall be deemed to be the beneficial owner of any shares of capital stock of the Corporation:

 

 a. which that person owns directly whether or not of record, or

 

 b. which that person has the right to acquire pursuant to any agreement or understanding or upon exercise of conversion rights, warrants, or options, or otherwise, or

 

 c. which are beneficially owned, directly or indirectly (including shares deemed owned through application of clause (b) above, by an “affiliate” or “associate” (as defined in the rules of the Securities and Exchange Commission under the Securities Act of 1933, as amended) of that person, or

 

 d. which are beneficially owned, directly or indirectly (including shares deemed owned through application of clause (b) above), by any other person with which that person or his “affiliate” or “associate” (defined as aforesaid) has any agreement, arrangement, or understanding for the purpose of acquiring, holding, voting or disposing of capital stock of the Corporation.

 

iii.           
The outstanding shares of capital stock of the Corporation shall include shares deemed owned through application of clause
(ii) (b), (c), and (d) above, but shall not include any other shares which may be issuable pursuant to any agreement or upon exercise
of conversion rights, warrants or options, or otherwise, but which are not actually outstanding.

 

5.6 Resignation
From Boards and Committees. Upon or promptly following any termination of Executive’s employment with the Corporation,
the Executive agrees to resign, if applicable, as of the date of such termination, from (i) each and every board of directors (or
similar body, as the case may be) of the Corporation and each of its affiliates on which the Executive may then serve (if any),
and (ii) each and every office of the Corporation and each of its affiliates that the Executive may then hold, and all positions
that he may have previously held with the Corporation and any of its affiliates.

 

5.7 Excise Tax Gross-Up.
During and after the Period of Employment with the Corporation, the Executive shall be entitled to the excise tax protections set
forth in Exhibit B hereto.

 

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5.8Section 409A
of the Internal Revenue Code.

 

(a)This Agreement is
intended to comply with Section 409A of the Internal Revenue Code of 1986 (“Section 409A”) and shall be construed
and interpreted consistent with that intent. In the event that any payment or benefit payable under Section 5.3 of this Agreement
is not compliant with Section 409A and any taxes, penalties or interest are imposed on the Executive under Section 409A as a result
of such noncompliance (the “Section 409A Penalties”), the Corporation shall put the Executive in an after tax
economic position equivalent to the position the Executive would have been in without the imposition of such Section 409A Penalties.
The Executive shall notify the Corporation in writing of any claim by the Internal Revenue Service or state tax authorities that,
if successful, would require the payment of any such Section 409A Penalties or related state tax statutes. The Executive’s
right to be put in an equivalent after tax economic position is subject to the Executive providing such notification no later than
ten (10) business days after Executive is informed in writing of such claim. If the Corporation desires to contest such claim,
Executive shall (i) cooperate with the Corporation in good faith in order to effectively contest such claim and (ii) permit the
Corporation to participate in any proceedings relating to such claim. The Corporation shall control all proceedings taken in connection
with such contest; provided, however, that the Corporation shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest. This section shall also apply to any taxes, penalties, or interest
imposed by any state that are calculated in a manner similar to taxes, penalties, or interest imposed by Section 409A(a)(1)(B),
including those amounts imposed by the California Revenue and Taxation Code (R&TC) Sections 17501 and 24601.

 

(b)If and to the extent
that any payment or benefit under this Agreement, or any plan or arrangement of the Corporation, is determined by the Corporation
to constitute “non-qualified deferred compensation” subject to Section 409A and is payable to the Executive by reason
of the Executive’s termination of employment, then (a) such payment or benefit shall be made or provided to the Executive
only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations (a “Separation
from Service”) and (b) if the Executive is a “specified employee” (within the meaning of Section 409A and
as determined by the Corporation), such payment or benefit shall not be made or provided before the date that is six (6) months
after the date of the Executive’s Separation from Service (or the Executive’s earlier death). For the purposes of clarity,
the first payment thereof will include a catch-up payment covering the amount that would have otherwise been paid to the Executive
during the period between the termination of Executive’s employment and the first payment date but for the application of
this provision, and the balance of the installments (if any) will be payable in accordance with their original schedule.

 

(c)To the extent any
expense reimbursement or in-kind benefit is determined to be subject to Section 409A, the amount of any such expenses eligible
for reimbursement or in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or
in-kind benefits provided in any other taxable year (except under any lifetime limit applicable to expenses for medical care),
in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive
incurred such expenses, and in no event shall any right to reimbursement or in-kind benefits be subject to liquidation or exchange
for another benefit.

 

(d)To the extent that
any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner
so that all payments hereunder comply with Section 409A. To the extent any payment under this Agreement may be classified as a
“short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even
if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this section
are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

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6. Means and Effect of Termination.
Any termination of the Executive’s employment under this Agreement shall be communicated by written notice of termination
from the terminating party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement
relied upon in effecting the termination.

 

7. Non-Competition. The Executive
acknowledges and recognizes the highly competitive nature of the businesses of the Corporation, the amount of sensitive and confidential
information involved in the discharge of the Executive’s position with the Corporation, and the harm to the Corporation that
would result if such knowledge or expertise was disclosed or made available to a competitor. Based on that understanding, the Executive
hereby expressly agrees as follows:

 

(a) As a result of
the particular nature of the Executive’s relationship with the Corporation, in the capacities identified earlier in this
Agreement, for the Period of Employment, the Executive hereby agrees that he will not, directly or indirectly, (i) engage in any
business for the Executive’s own account or otherwise derive any personal benefit from any business that competes with the
business of the Corporation or any of its affiliates (the Corporation and its affiliates are referred to, collectively, as the
“Company Group”), (ii) enter the employ of, or render any services to, any person engaged in any business that
competes with the business of any entity within the Company Group, (iii) acquire a financial interest in any person engaged in
any business that competes with the business of any entity within the Company Group, directly or indirectly, as an individual,
partner, member, shareholder, officer, director, principal, agent, trustee or consultant, or (iv) interfere with business relationships
(whether formed before or after the Effective Date) between the Corporation, any of its respective affiliates or subsidiaries,
and any customers, suppliers, officers, employees, partners, members or investors of any entity within the Company Group. For purposes
of this Agreement, businesses in competition with the Company Group shall include, without limitation, businesses which any entity
within the Company Group may conduct operations, and any businesses which any entity within the Company Group has specific plans
to conduct operations in the future and as to which the Executive is aware of such planning, whether or not such businesses have
or have not as of that date commenced operations.

 

(b) Notwithstanding
anything to the contrary in this Agreement, the Executive may, directly or indirectly, own, solely as an investment, securities
of any Person which are publicly traded on a national or regional stock exchange or on the over-the-counter market if the Executive
(i) is not a controlling Person of, or a member of a group that controls, such Person, and (ii) does not, directly or indirectly,
beneficially own one percent (1%) or more of any class of securities of such Person. For purposes of this Section 7(b), “Person”
shall have the meaning ascribed to such terms in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as described in Section 13(d) thereof.

 

8. Confidentiality. As a material
part of the consideration for the Corporation’s commitment to the terms of this Agreement, the Executive hereby agrees that
the Executive will not at any time (whether during or after the Executive’s employment with the Corporation), other than
in the course of the Executive’s duties hereunder, or unless compelled by lawful process after written notice to the Corporation
of such notice along with sufficient time for the Corporation to try and overturn such lawful process, disclose or use for the
Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association,
corporation or other business organization, entity or enterprise, any trade secrets, or other confidential data or information
relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial
data, financing methods, or plans of any entity within the Company Group; provided, however, that the foregoing shall
not apply to information which is generally known to the industry or the public, other than as a result of the Executive’s
breach of this covenant. The Executive further agrees that the Executive will not retain or use for his own account, at any time,
any trade names, trademark or other proprietary business designation used or owned in connection with the business of any entity
within the Company Group.

 

    	10

    	 

    

 

9.Inventions and Developments.

 

(a) All inventions,
policies, systems, developments or improvements conceived, designed, implemented and/or made by the Executive, either alone or
in conjunction with others, at any time or at any place during the Period of Employment, whether or not reduced to writing or practice
during such Period of Employment, which directly or indirectly relate to the business of any entity within the Company Group, or
which were developed or made in whole or in part using the facilities and/or capital of any entity within the Company Group, shall
be the sole and exclusive property of the Company Group. The Executive shall promptly give notice to the Corporation of any such
invention, development, patent or improvement, and shall at the same time, without the need for any request by any person or entity
within the Company Group, assign all of the Executive’s rights to such invention, development, patent and/or improvement
to the Company Group. The Executive shall sign all instruments necessary for the filing and prosecution of any applications for,
or extensions or renewals of, letters patent of the United States or any foreign country that any entity in the Company Group desires
to file.

 

(b) All copyrightable
work by the Executive during the Period of Employment that relates to the business of any entity in the Company Group is intended
to be “work made for hire” as defined in Section 101 of the Copyright Act of 1976, and shall be the property of the
Company Group. If the copyright to any such copyrightable work is not the property of the Company Group by operation of the law,
the Executive will, without further consideration, assign to the Company Group all right, title and interest in such copyrightable
work and will assist the entities in the Company Group and their nominees in every way, at the Company Group’s expense, to
secure, maintain and defend for the Company Group’s benefit, copyrights and any extensions and renewals thereof on any and
all such work including translations thereof in any and all countries, such work to be and to remain the property of the Company
Group whether copyrighted or not.

 

10. Anti-Solicitation. In light
of the amount of sensitive and confidential information involved in the discharge of the Executive’s duties, and the harm
to the Corporation that would result if such knowledge or expertise were disclosed or made available to a competitor, and as a
reasonable step to help protect the confidentiality of such information, the Executive promises and agrees that during the Period
of Employment and for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually or as
a consultant to, or as an employee, officer, shareholder, director or other owner or participant in any business, influence or
attempt to influence the customers, vendors, suppliers, joint venturers, associates, consultants, agents, or partners of any entity
within the Company Group, either directly or indirectly, to divert their business away from the Company Group, to any individual,
partnership, firm, corporation or other entity then in competition with the business of any entity within the Company Group, and
he will not otherwise materially interfere with any business relationship of any entity within the Company Group.

 

11. Soliciting Employees. In light
of the amount of sensitive and confidential information involved in the discharge of the Executive’s duties, and the harm
to the Corporation that would result if such knowledge or expertise were disclosed or made available to a competitor, and as a
reasonable step to help protect the confidentiality of such information, the Executive promises and agrees that during the Period
of Employment and for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually or as
a consultant to, or as an employee, officer, shareholder, director, or other owner of or participant in any business, solicit (or
assist in soliciting) any person who is then, or at any time within six (6) months prior thereto was, an employee of an entity
within the Company Group, who earned annually $25,000 or more as an employee of such entity during the last six (6) months of his
or her own employment to work for (as an employee, consultant or otherwise) any business, individual, partnership, firm, corporation,
or other entity whether or not engaged in competitive business with any entity in the Company Group.

 

    	11

    	 

    

 

12. Return of Property. The Executive
agrees to truthfully and faithfully account for and deliver to the Corporation all property belonging to the Corporation, any other
entity in the Company Group, or any of their respective affiliates, which the Executive may receive from or on account of the Corporation,
any other entity in the Company Group, or any of their respective affiliates, and upon the termination of the Period of Employment,
or the Corporation’s demand, the Executive shall immediately deliver to the Corporation all such property belonging to the
Corporation, any other entity in the Company Group, or any of their respective affiliates.

 

13. Withholding Taxes. Notwithstanding
anything else herein to the contrary, the Corporation may withhold (or cause there to be withheld, as the case may be) from any
amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other
taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

14. Cooperation in Litigation. The
Executive agrees that, during the Period of Employment or after the termination of the Executive’s employment, he will reasonably
cooperate with the Corporation, subject to his reasonable personal and business schedules, in any litigation which arises out of
events occurring prior to the termination of his employment, including but not limited to, serving as a witness or consultant and
producing documents and information relevant to the case or helpful to the Corporation. The Corporation agrees to reimburse the
Executive for all reasonable costs and expenses he incurs in connection with his obligations under this Section 14 and, in addition,
to reasonably compensate the Executive for time actually spent in connection therewith following the termination of his employment
with the Corporation.

 

15. Assignment. This Agreement is
personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement
or any rights or obligations hereunder; provided, however, that in the event of a merger, consolidation, or transfer
or sale of all or substantially all of the assets of the Corporation with or to any other individual(s) or entity, this Agreement
shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge
and perform all the promises, covenants, duties, and obligations of the Corporation hereunder.

 

16. Number and Gender. Where the
context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all
other genders.

 

17. Section Headings. The section
headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purposes of convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

18. Governing Law. This Agreement,
and all questions relating to its validity, interpretation, performance and enforcement, as well as the legal relations hereby
created between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance with,
the laws of the State of California, notwithstanding any California or other conflict of law provision to the contrary. This Agreement
is intended to comply with Section 409A of the Internal Revenue Code of 1986 and the regulations promulgated thereunder.

 

    	12

    	 

    

 

19. Severability. If any provision
of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications
of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.

 

20.Entire Agreement. This Agreement
replaces and supersedes prior employment agreements, including the employment agreement executed by and between the Executive and
the Corporation dated June 1, 2004 or any prior consulting agreement. This Agreement embodies the entire agreement of the parties
hereto respecting the matters within its scope. Any prior negotiations, correspondence, agreements, proposals or understandings
relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith,
such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect. There
are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject
matter hereof, except as expressly set forth herein.

 

21. Modifications. This Agreement
may not be amended, modified or changed (in whole or in part), except by a formal definitive written agreement expressly referring
to this Agreement, which agreement is executed by both of the parties hereto.

 

22. Waiver. Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

23. Resolution of Disputes.

 

(a) Any controversy
arising out of or relating to the Executive’s employment (whether or not before or after the expiration of the Period of
Employment), any termination of the Executive’s employment, this Agreement or the enforcement or interpretation of this Agreement,
or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of this Agreement, including
(without limitation) any state or federal statutory claims, shall be submitted to arbitration in Santa Rosa, California, before
a sole arbitrator (the “Arbitrator”) selected from judicial arbitration mediation services (“JAMS”),
or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the American Arbitration Association
(“AAA”), and shall be conducted in accordance with the provisions of California Code of Civil Procedure §§
1280 et seq. as the exclusive remedy of such dispute; provided, however, that provisional injunctive relief
may, but need not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief
granted by such court shall remain effective until the matter is finally determined by the Arbitrator. Final resolution of any
dispute through arbitration may include any remedy or relief that the Arbitrator deems just and equitable, including any and all
remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator shall issue a written
decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based. Any
award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any
court of competent jurisdiction.

 

(b) The parties acknowledge
and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either
of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with any of the
matters referenced in the first sentence of Section 23(a).

 

    	13

    	 

    

 

(c) The parties agree
that the Corporation shall be responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s
fee. The parties further agree that in any proceeding with respect to such matters, the prevailing party will be entitled to recover
its reasonable attorney’s fees and costs from the non-prevailing party (other than forum costs associated with the arbitration
which in any event shall be paid by the Corporation).

 

(d) Without limiting
the remedies available to the parties and notwithstanding the foregoing provisions of this Section 23, the Executive and the Corporation
acknowledge that any breach of any of the covenants or provisions contained in Sections 5.6, and 7 through 12 could result in irreparable
injury to either of the parties hereto for which there might be no adequate remedy at law, and that, in the event of such a breach
or threat thereof, the non-breaching party shall be entitled to obtain a temporary restraining order and/or a preliminary injunction
and a permanent injunction restraining the other party hereto from engaging in any activities prohibited by any covenant or provision
in Sections 5.6, and 7 through 12 or such other equitable relief as may be required to enforce specifically any of the covenants
or provisions of Sections 5.6, and 7 through 12.

 

24.Notices.

 

(a) All notices, requests, demands and
other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly received
if (i) delivered by hand or by courier, effective upon delivery, (ii) given by facsimile or electronic version, when transmitted
if transmitted on a business day and during normal business hours of the recipient, and otherwise delivered on the next business
day following transmission, or (iii) sent by registered or certified mail, postage prepaid, return receipt requested, five (5)
business days after being deposited in the U.S. postal mail. Any notice shall be duly addressed to the parties as follows:

 

(i)
If to the Corporation:

 

Oculus Innovative Sciences,
Inc.

1129 North McDowell Boulevard

Petaluma, California 94954

Attn: General Counsel

Fax:
+1 (707) 283-0551

 

(ii) If to the Executive:

 

Robert Miller

At the address on file
with the Corporation

 

(b) Any party may alter
the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the
provisions of this Section 24 for the giving of notice..

 

25. Legal Counsel; Mutual Drafting.
Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to
consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation and preparation of this Agreement.
Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that
party being the drafter of such language.

 

    	14

    	 

    

 

26. Provisions that Survive Termination.
The provisions of 5.3, 5.4, 5.5, 5.6, 5.7, 5.8, 7 through 25, 27, and this Section 26 shall survive any termination of the Period
of Employment.

 

27. Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears
thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the
signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
the Corporation and the Executive have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	CORPORATION	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Oculus Innovative Sciences, Inc.,	 	 
	 	 	 	 	a Delaware corporation

	 	 
	 	 	
         

        By
	 	/s/ Greg French	 	 
	 	 	Name:	 	Greg French	 	 
	 	 	Title:	 	
        Chairman of the Compensation Committee of
		 
	 	 	 	 	Oculus Innovative Sciences, Inc. 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	EXECUTIVE	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert Miller	 	 
	 	 	Name:	 	Robert Miller	 	 
	 	 		 	 

 

 

    	16

    	 

    

 

EXHIBIT A — SECTION 1.3 DISCLOSURE
SCHEDULE

 

	None.
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	17

    	 

    

 

EXHIBIT B — SECTION 5.7 EXCISE TAX
GROSS-UP

 

B.1 Equalization Payment.
If any payment, distribution, transfer, or benefit (including, without limitation, any amounts received or deemed received by the
Executive within the meaning of any provision of the Internal Revenue Code of 1986, as amended (the “Code”),
or by the Executive as a result of (and not by way of limitation) any automatic vesting, lapse of restrictions and/or accelerated
target or performance achievement provisions, or otherwise, applicable to outstanding grants or awards to the Executive under any
of the Corporation’s incentive plans) by the Corporation or a successor, or by a direct or indirect subsidiary or affiliate
of the Corporation (or any successor or affiliate of any of them, and including any benefit plan of any of them), whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Total
Payments”), is subject to the excise tax imposed under Section 4999 of the Code or any similar or successor tax (the
“Excise Tax”), the Corporation shall pay in cash to Executive an additional amount (the “Gross-Up Payment”)
such that the net amount retained by the Executive after the deduction of any Excise Tax upon the Gross-Up Payment(s) provided
for by this Section B.1 shall be equal to such Total Payments had they not been subject to the Excise Tax. Such Gross-Up Payment
shall be paid by the Corporation, according to the terms of this Agreement, to the Executive by the end of the taxable year following
the taxable year in which the Executive pays the Excise Tax.

 

B.2 Calculation of Gross-Up Payment.
The determination of whether a Gross-Up Payment is required pursuant to this Exhibit B and the amount of any such Gross-Up Payment
shall be determined in writing (the “Determination”) by a nationally-recognized certified public accounting
firm selected by the Corporation (the “Accounting Firm”). The Accounting Firm shall provide its Determination
in writing, together with detailed supporting calculations and documentation and any assumptions used in making such computation,
to the Corporation and the Executive. In the event of a termination of the Executive’s employment which reasonably may require
the payment of a Gross-Up Payment or in the event of a Change in Control, such documentation shall be provided no later than twenty
(20) days following such event. Within twenty (20) days following delivery of the Accounting Firm’s Determination, the Executive
shall have the right, at the Corporation’s expense, to obtain the opinion of an “outside counsel,” which opinion
need not be unqualified, which sets forth: (i) the amount of the Executive’s “annualized includible compensation for
the base period” (as defined in Section 280G(d)(1) of the Code); (ii) the present value of the Total Payments made to the
Executive; (iii) the amount and present value of any “excess parachute payment” as such term is defined in the Code;
and (iv) detailed supporting calculations and documentation and any assumptions used in making such computations. The opinion of
such outside counsel shall be supported by the opinion of a nationally-recognized certified public accounting firm and, if necessary
or required by the Corporation, a firm of nationally-recognized executive compensation consultants. The Executive shall also have
the right to obtain such an opinion of outside counsel in the event that the Corporation has not timely submitted the initial determination
to the Accounting Firm as provided above (including, without limitation, in the event that the Corporation does not submit such
a determination to the Accounting Firm following an event in connection with which the Executive reasonably believes that he may
be entitled to a Gross-Up Payment). The outside counsel’s opinion shall be binding upon the Corporation and the Executive
and shall constitute the “Determination” for purposes of this Exhibit B instead of the initial determination by the
Accounting Firm. The Corporation shall pay (or, to the extent paid by the Executive, reimburse the Executive for) the certified
public accounting firm’s and, if applicable, the executive compensation consultant’s reasonable and customary fees
for rendering such opinion. For purposes of this Section B.2, “outside counsel” means a licensed attorney selected
by the Executive who is recognized in the field of executive compensation and has experience with respect to the calculation of
the Excise Tax; provided that the Corporation must approve the Executive’s selection, which approval shall not be unreasonably
withheld.

 

    	18

    	 

    

 

B.3 Computation Assumptions.
For purposes of determining whether any Total Payments will be subject to Excise Tax, and the amount of any such Excise Tax:

 

	 	(a)	 	Any other payments, benefits and/or amounts received or to be received by the Executive in connection with or contingent upon any change in the ownership or effective control of the Corporation or any change in the ownership of a substantial portion of the Corporation’s assets or termination of the Executive’s employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Corporation, or with any Person (as defined below) whose actions result in such a change or any Person (as defined below) affiliated with the Corporation or such Persons (as defined below)) shall be combined to determine whether the Executive has received any “parachute payment” within the meaning of Section 280G(b)(2) of the Code, and if so, the amount of any “excess parachute payments” within the meaning of Section 280G(b)(1) that shall be treated as subject to the Excise Tax, unless in the opinion of the person or firm rendering the Determination, such other payments, benefits and/or amounts (in whole or in part) do not constitute “parachute payments” within the meaning of Section 280G(b)(2) of the Code, or such excess parachute payments represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the base amount within the meaning of Section 280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax. For purposes of this Section B.3(a), “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof);
	 	 	 	 
	 	(b)	 	The value of any non-cash benefits or any deferred payment or benefit shall be determined by the person or firm rendering the Determination in accordance with the principles of Sections 280G(d)(3) and (4) of the Code;
	 	 	 	 
	 	(c)	 	The compensation and benefits provided for in Section 5 of this Agreement, and any other compensation earned prior to the termination of the Executive’s employment pursuant to the Corporation’s compensation programs (if such payments would have been made in the future in any event, even though the timing of such payment is triggered by a change in the ownership or effective control of the Corporation or any change in the ownership of a substantial portion of the Corporation’s assets or a termination of the Executive’s employment), shall for purposes of the calculation pursuant to this Section B.3 be deemed to be reasonable; and
	 	 	 	 
	 	(d)	 	The Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made. Furthermore, the computation of the Gross-Up Payment shall assume (and adjust for the fact) that (i) there is a loss of miscellaneous itemized deductions under Section 67 of the Code (or analogous federal or state provisions) on account of the Gross-Up Payment, and (ii) a loss of itemized deductions under Section 68 of the Code (or analogous federal or state provisions) on account of the Gross-Up Payment. The computation of the Gross-Up Payment shall take into account any reduction in the Gross-Up Payment due to the Executive’s share of the hospital insurance portion of FICA and any state withholding taxes (other than any state withholding tax for income tax liability). The computation of the state and local income taxes applicable to the Gross-Up Payment shall be based on the highest marginal rate of taxation in the state and locality of the Executive’s residence on the date the Executive’s employment terminates, and shall take into account the maximum reduction in federal income taxes that could be obtained from the deduction of such state and local taxes.

                                                      

		(e)	 	It is the intent of the parties that the amounts payable under this Agreement, and the Corporation’s and the Executive’s exercise of authority or discretion hereunder shall comply with and avoid the imputation of any tax, penalty, or interest under Section 409A of the Code. This Agreement and this Exhibit B shall be construed in interpretation with that intent.  

  

    	19

    	 

    

 

B.4 Executive’s Obligation
to Notify Corporation. The Executive shall promptly notify the Corporation in writing of any claim by the Internal Revenue
Service (or any successor thereof) or any state or local taxing authority (individually or collectively, the “Taxing Authority”)
that, if successful, would require the payment by the Corporation of a Gross-Up Payment in excess of any Gross-Up Payment as originally
set forth in the Determination. If the Corporation notifies the Executive in writing that it desires to contest such claim, the
Executive shall: (a) give the Corporation any information reasonably requested by the Corporation relating to such claim; (b) take
such action in connection with contesting such claim as the Corporation shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Corporation
that is reasonably acceptable to the Executive; (c) cooperate with the Corporation in good faith in order to effectively contest
such claim; and (d) permit the Corporation to participate in any proceedings relating to such claim; provided that the Corporation
shall bear and pay directly all attorneys’ fees, costs and expenses (including additional interest, penalties and additions
to tax) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for
all taxes (including, without limitation, income and excise taxes), interest, penalties and additions to tax imposed in relation
to such claim and in relation to the payment of such costs and expenses or indemnification. Without limitation on the foregoing
provisions of this Section B.4, and to the extent its actions do not unreasonably interfere with or prejudice the Executive’s
disputes with the Taxing Authority as to other issues, the Corporation shall control all proceedings taken in connection with such
contest and, in its reasonable discretion, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences
with the Taxing Authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax, interest
or penalties claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute
such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Corporation shall determine; provided, however, that if the Corporation directs Executive to pay such claim and
sue for a refund, the Corporation shall advance an amount equal to such payment to the Executive, on an interest-free basis, and
shall indemnify and hold the Executive harmless, on an after-tax basis, from all taxes (including, without limitation, income and
excise taxes), interest, penalties and additions to tax imposed with respect to such advance or with respect to any imputed income
with respect to such advance, as any such amounts are incurred; and, further, provided, that any extension of the statute of limitations
relating to payment of taxes, interest, penalties or additions to tax for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested amount; and, provided, further, that any settlement
of any claim shall be reasonably acceptable to the Executive and the Corporation’s control of the contest shall be limited
to issues with respect to which a Gross-Up Payment would be payable hereunder, and the Executive shall be entitled to settle or
contest, as the case may be, any other issue.

 

B.5 Subsequent Recalculation.
In the event of a binding or uncontested determination by the Taxing Authority that adjusts the computation set forth in the Determination
so that the Executive did not receive the greatest net benefit required pursuant to Section B.1, the Corporation shall reimburse
the Executive as provided herein for the full amount necessary to place the Executive in the same after-tax position as he would
have been in had no Excise Tax applied. In the event of a binding or uncontested determination by the Taxing Authority that adjusts
the computation set forth in the Determination so that the Executive received a payment or benefit in excess of the amount required
pursuant to Section B.1, then the Executive shall promptly pay to the Corporation (without interest) the amount of such excess.

 

    	20Exhibit 4.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of July 31, 2012, is made and entered into by and among SFX HOLDING CORPORATION, a Delaware corporation (“Parent”), and each of the stockholders of Parent set forth on Exhibit A (each such party, a “Holder” and collectively the “Holders”).   Capitalized terms appearing but not defined herein have the meanings ascribed to such terms in the Asset Contribution Agreement, dated as of the date hereof, by and among Parent, SFX-LIC Operating LLC, Dayglow LLC, Committee Entertainment, LLC, and the individuals party thereto (the “Asset Contribution Agreement”).

 

RECITALS

 

WHEREAS, pursuant to the Asset Contribution Agreement, the Transferor Parties contributed to Acquiror all of the Transferred Assets in exchange for the consideration set forth in the Asset Contribution Agreement, which included shares of common stock, par value $0.001 per share, of Parent (“Registrable Securities”); and

 

WHEREAS, Parent desires to grant, and the Holders desire to receive, certain rights with respect to the registration of the Registrable Securities under the Securities Act of 1933, as amended (the “Securities Act”).

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and other good and valuable consideration, the parties hereto hereby agree as follows:

 

ARTICLE I
 PIGGY BACK REGISTRATION RIGHTS

 

1.1          If, at any time after the date hereof and prior to December 31, 2014 when there is not an effective registration statement covering the Registrable Securities pursuant to this Agreement, Parent shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account (other than the initial registration statement relating to an offering for its own account) or the account of others under the Securities Act of any of its equity securities (other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans), Parent shall send to all of the Holders of Registrable Securities written notice of such determination and, if within twenty (20) days after receipt of such notice, or within such shorter period of time as may be specified by Parent in such written notice as may be necessary for Parent to comply with its obligations with respect to the timing of the filing of such registration statement, a Holder shall so request in writing (which request shall specify the Registrable Securities intended to be disposed of by such Holder), Parent will cause the registration under the Securities Act of all Registrable Securities which Parent has been so requested to register by such Holder, to the extent requisite to permit the disposition of the Registrable Securities so to be registered, provided that if at any time after giving written notice of its intention to register any securities and prior to the effective date of

 

Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission.

 

 

the registration statement filed in connection with such registration, Parent shall determine for any reason not to register or to delay registration of such securities, Parent may, at its election, give written notice of such determination to such Holder and, thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Securities in connection with such registration, and (ii) in the case of a determination to delay registering, shall be permitted to delay registering any Registrable Securities being registered pursuant to this Section 1.1 for the same period as the delay in registering such other securities. Parent shall include in such registration statement all or any part of such Registrable Securities that a Holder requests to be registered; provided, however, that Parent shall not be required to register any Registrable Securities pursuant to this Section 1.1 that are eligible for sale pursuant to Rule 144 of the Securities Act without volume limitations or restrictions.  In the case of an underwritten public offering, if the managing underwriter(s) or underwriter(s) should reasonably object to the inclusion of the Registrable Securities in such registration statement, then if Parent after consultation with the managing underwriter should reasonably determine that the inclusion of such Registrable Securities would materially adversely affect the offering contemplated in such registration statement (including the price at which Parent proposes to sell the securities in such offering), and based on such determination recommends inclusion in such registration statement of fewer or none of the Registrable Securities of a Holder, then (x) the number of Registrable Securities of the Holders included in such registration statement shall be reduced, pro rata based on the number of Registrable Securities that each Holder has requested be included in such registration statement and the aggregate number of Registrable Securities that the Holders and the other holders that have received shares of Parent Common Stock in connection with the Plan (the “Other Holders”) have requested be included in such registration statement (such proportion is referred to herein as “Pro Rata”), if Parent after consultation with the underwriter(s) recommends the inclusion of fewer Registrable Securities, or (y) none of the Registrable Securities of the Holders shall be included in such registration statement, if Parent after consultation with the underwriter(s) recommends the inclusion of none of such Registrable Securities; provided, however, that if securities are being offered for the account of other persons or entities as well as Parent, such reduction shall not represent a greater fraction of the number of Registrable Securities intended to be offered by the Holders than the fraction of similar reductions imposed on such other persons or entities (other than Parent).

 

1.2          Notwithstanding anything to the contrary contained in this Agreement, in the event the staff of the Commission (the “Staff”) or the Commission seeks to characterize any offering pursuant to a registration pursuant to the provisions of this Article I as constituting an offering of securities by or on behalf of Parent, or in any other manner, such that the Staff or the Commission do not permit such registration statement to become effective and used for resales in a manner that does not constitute such an offering and that permits the continuous resale at the market by the Holders participating therein (or as otherwise may be acceptable to each Holder) without being named therein as an “underwriter,” then Parent shall reduce the number of shares to be included in such registration statement by all Holders and the Other Holders until such time as the Staff and the Commission shall so permit such registration statement to become effective as aforesaid. In making such reduction, Parent shall reduce the number of shares to be included by all Holders and the Other Holders on a Pro Rata basis unless the inclusion of shares by a particular Holder or Other Holder or a particular set of Holders or Other Holders are resulting in the Staff’s or the Commission’s “by or on behalf of Parent” offering position, in which event the shares held by such Holder or Other Holder or set of Holders or Other Holders shall be the only

 

2

 

shares subject to reduction (and if by a set of Holders or Other Holders on a Pro Rata basis by such Holders or Other Holders or on such other basis as would result in the exclusion of the least number of shares by all such Holders or Other Holders).  In addition, in the event that the Staff or the Commission requires any Holder seeking to sell securities under a registration pursuant to the provisions of this Article I to be specifically identified as an “underwriter” in order to permit such registration statement to become effective, and such Holder does not consent to being so named as an underwriter in such registration statement, then, in each such case, Parent shall reduce the total number of Registrable Securities to be registered on behalf of such Holder, until such time as the Staff or the Commission does not require such identification or until such Holder accepts such identification and the manner thereof.

 

1.3          In the event of a registration pursuant to the provisions of this Article I, Parent shall use its best efforts to cause the Registrable Securities so registered to be registered or qualified for sale under the securities or blue sky laws of such jurisdictions as a majority-in-interest of the Holders together with the Other Holders may reasonably request; provided, however, that Parent shall not by reason of this Agreement be required to qualify to do business in any state in which it is not otherwise required to qualify to do business, to subject itself to taxation in any such jurisdiction or to file a general consent to service of process.

 

Parent shall use commercially reasonable efforts to keep effective any registration or qualification contemplated by this Agreement and shall, from time to time, amend or supplement each applicable registration statement, preliminary prospectus, final prospectus, application, document, and communication for such period of time as shall be required to permit the Holders to complete the offer and sale of the Registrable Securities covered thereby.  Notwithstanding the preceding sentence, Parent shall in no event be required to keep any such registration or qualification in effect for a period in excess of six (6) months from the date on which the Holders together with the Other Holders are first free to sell such Registrable Securities; provided, however, that, if Parent is required to keep any such registration or qualification in effect with respect to securities other than the Registrable Securities beyond such period, Parent shall keep such registration or qualification in effect as it relates to the Registrable Securities for so long as such registration or qualification remains or is required to remain in effect in respect of such other securities.

 

1.4          In the event of a registration pursuant to the provisions of this Article I, Parent shall furnish to a Holder such reasonable number of copies of the registration statement and of each amendment and supplement thereto (in each case, including all exhibits), such reasonable number of copies of each prospectus contained in such registration statement and each supplement or amendment thereto (including each preliminary prospectus), all of which shall conform to the requirements of the Securities Act and the rules and regulations promulgated thereunder, and such other documents, as a Holder may reasonably request to facilitate the disposition of the Registrable Securities included in such registration.

 

1.5          In the event of a registration pursuant to the provision of this Article I, Parent, the Holders and the Other Holders shall enter into a cross-indemnity agreement and a contribution agreement, each in customary form, with each underwriter, if any, and, if requested, enter into an underwriting agreement containing conventional representations, warranties, allocation of

 

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expenses, and customary closing conditions, with any underwriter who acquires any Registrable Securities.

 

1.6          Parent agrees that, until all the Registrable Securities have been sold under a registration statement or pursuant to Rule 144 promulgated under the Securities Act, it shall keep current in filing all reports, statements and other materials required to be filed with the Commission to permit holders of the Registrable Securities to sell such securities under Rule 144 promulgated under the Securities Act.

 

1.7          Parent may grant piggy back registration rights to other persons so long as such rights are pari passu or subordinate to the rights of the Holders and nothing herein contained shall prohibit Parent from granting to any person demand registration rights.

 

ARTICLE II
 INDEMNIFICATION AND CONTRIBUTION

 

2.1          Indemnification by Parent.  Parent shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, its directors, officers, agents and employees, each person or entity who controls such Holder (within the meaning of Section 15 of the Securities Act and Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), and the directors, officers, agents and employees of such controlling persons or entities, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of any untrue or alleged untrue statement of a material fact contained in a registration statement covering the Registrable Securities, any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding a Holder or such other Indemnified Party (as defined below) furnished in writing to Parent by such Holder expressly for use therein.  Parent shall notify each Holder promptly of any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened (a “Proceeding”) of which Parent is aware in connection with the transactions contemplated by this Agreement.

 

2.2          Indemnification by Holders.  Each Holder shall, severally but not jointly, indemnify and hold harmless Parent, its directors, officers, agents and employees, each person or entity who controls Parent (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents and employees of such controlling persons or entities, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a final judgment not subject to appeal or review), as incurred, arising solely out of or based solely upon any untrue statement of a material fact contained in a registration statement applicable to the Registrable Securities, any prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or

 

4

 

based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder or other Indemnifying Party to Parent specifically for inclusion in a registration statement applicable to the Registrable Securities or such prospectus.

 

2.3          Conduct of Indemnification Proceedings.  If any Proceeding shall be brought or asserted against any person or entity entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party promptly shall notify the person or entity from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel (which shall be reasonably acceptable to the Indemnifying Party) that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 2.3) shall be paid to the Indemnified Party, as incurred, within thirty (30) business days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

 

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2.4          Contribution.  If a claim for indemnification under Section 2.1 or 2.2 is unavailable to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party on the one hand and the Indemnified Party on the other from the offering of the Registrable Securities.  If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault, as applicable, of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 2.3, any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 2.4 was available to such party in accordance with its terms.

 

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.4 were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  No person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

 

ARTICLE III
 GENERAL

 

3.1          Amendments and Waivers.  No amendment or waiver of any term or provision of this Agreement shall be effective unless in writing signed by Parent and the Holders of at least a majority of the Registrable Securities at the time in question (the “Majority Holders”).  The waiver by Parent or the Majority Holders of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

 

3.2          Notices.  Except as otherwise provided in this Agreement, notices and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date received by hand delivery, overnight delivery, facsimile transmission or registered mail, postage prepaid, addressed as follows:

 

3.2.1       if to Parent, to:

 

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SFX Holding Corporation

650 Madison Avenue

New York, NY 10022

Attention:  Mitch Nelson, Esq.

Facsimile No.:  Fax:  (212) 750-3034

 

and

 

3.2.2       if to a Holder, to the address set forth opposite the name of such Holder on Exhibit A.

 

Parent and each Holder, by written notice given in accordance with this Section 3.2, may change the address to which such notice or other communications are to be sent.

 

3.3          Parent Representations.  Parent represents and warrants to each Holder that:

 

3.3.1       Parent has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby;

 

3.3.2       The execution and delivery of this Agreement by Parent and the consummation by Parent of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Parent;

 

3.3.3       This Agreement has been duly executed and delivered by Parent and (assuming the due authorization, execution and delivery hereof by each Holder) constitutes a valid and binding obligation of Parent, enforceable against Parent in accordance with its terms, except that such enforceability may be subject to (i) bankruptcy, insolvency, reorganization or other similar laws affecting or relating to enforcement of creditors’ rights generally and (ii) general equitable principles;

 

3.3.4       The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated hereby and compliance with the provisions hereof will not, result in any violation or default (with or without notice or lapse of time, or both) under, (i) any provision of the charter or organizational documents of Parent, (ii) any judgment, order, decree, statute, law, ordinance, rule or regulation by which Parent is bound or to which any of its properties or assets is subject, other than, in which any of its properties or assets is subject, other than, in the case of clause (ii), any such violation or default that would not reasonably be expected to have a material adverse effect on the financial condition or operations of Parent, taken as a whole, and would not impair the ability of Parent to perform its obligations under this Agreement; and

 

3.3.5       No filing or registration with, or authorization, consent or approval of, any governmental authority is required by or with respect to Parent in connection with the execution and delivery by Parent of this Agreement or the consummation by Parent of the transactions contemplated hereby, except as otherwise expressly provided herein.

 

3.4          Holder Representations.  Each Holder represents and warrants, severally but not jointly, to Parent that:

 

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3.4.1       Such Holder has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby;

 

3.4.2       This Agreement has been duly executed and delivered by such Holder and (assuming the due authorization, execution and delivery hereof by Parent) constitutes a valid and binding obligation of such Holder, enforceable against such Holder in accordance with its terms, except that such enforceability may be subject to (i) bankruptcy, insolvency, reorganization or other similar laws affecting or relating to enforcement of creditors’ rights generally and (ii) general equitable principles;

 

3.4.3       The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated hereby and compliance with the provisions hereof will not, result in any violation of or default (with or without notice or lapse of time, or both) under (i) any provision of the charter or organizational documents of such Holder, (ii) any judgment, order, decree, statute, law, ordinance, rule or regulation by which such Holder is bound or to which any of its properties or assets is subject, other than, in which any of its properties or assets is subject, other than, in the case of clause (ii), any such violation or default that would not reasonably be expected to have a material adverse effect on the financial condition or operations of such Holder, taken as a whole, and would not impair the ability of such Holder to perform its obligations under this Agreement;

 

3.4.4       No filing or registration with, or authorization, consent or approval of, any governmental authority is required by or with respect to such Holder in connection with the execution and delivery by such Holder of this Agreement or the consummation by such Holder of the transactions contemplated hereby, except as otherwise expressly provided herein.

 

3.5          This Agreement and the rights, duties and obligations of Parent hereunder may not be assigned or delegated by Parent in whole or in part.  Prior to the date that is one year from the date that the Commission declares effective a registration pursuant to the provisions of Article I, no Holder may assign or delegate their rights, duties or obligations under this Agreement in whole or in part.  Except as set forth in immediately preceding sentence, this Agreement and the rights, duties and obligations of the Holders of Registrable Securities hereunder may be assigned or delegated by such Holder of Registrable Securities in conjunction with and to the extent of any transfer of Registrable Securities by any such Holder.  This Agreement shall not confer any rights or benefits on any persons that are not parties hereto, other than as expressly set forth in this Agreement.  No assignment by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate Parent unless and until Parent shall have received (i) written notice of such assignment as provided in Section 3.2 and (ii) the written agreement of the assignee, in a form reasonably satisfactory to Parent, to be bound by the terms and provisions of this Agreement (which may be accomplished by an addendum or certificate of joinder to this Agreement).  Any transfer or assignment made other than as provided in this Section 3.5 shall be null and void.

 

3.6          Miscellaneous.

 

3.6.1       This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and the respective successors and assigns of the parties hereto.

 

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3.6.2       This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes any and all previous agreements among them relating to the subject matter hereof, whether written, oral or implied.

 

3.6.3       This Agreement shall be governed by, and interpreted in accordance with, the laws of the State of New York, without giving effect to the conflicts of law principles thereof.

 

3.6.4       The Section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation hereof.

 

3.6.5       This Agreement may be executed in one or more counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

 

3.6.6       Should any term or condition of this Agreement be determined by a court of competent jurisdiction to be unenforceable for any reason, including, without limitation, violation of statute or public policy, such provision shall, if possible, be reformed by the parties hereto, or if the parties cannot agree, by the appropriate court of competent jurisdiction to comply with applicable legal requirements in a matter that is as close in its intent and effect to the original provision as possible or, if such reformation cannot be accomplished shall be stricken without affecting the validity of any other term or condition of this Agreement.

 

3.6.7       Each party hereto 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 any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

[SIGNATURE PAGES FOLLOW]

 

9

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
SFX   HOLDING CORPORATION
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Robert F.X. Sillerman
    
	
 
    	
 
    	
Name:   Robert F.X. Sillerman
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    

 

[Signature Page — Registration Rights Agreement]

 

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

	
 
    	
SEBASTIAN   SOLANO
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
/s/   Sebastian Solano
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PAUL   CAMPBELL
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Paul Campbell
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PATRYK   TRACZ
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
/s/   Patryk Tracz
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LUKASZ   TRACZ
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
/s/   Lukasz Tracz
    

 

[Signature Page — Registration Rights Agreement]

 

 

EXHIBIT A

 

HOLDERS

 

	
Name
    	
 
    	
Address
    
	
Sebastian   Solano
    	
 
    	
###
    
	
Paul   Campbell
    	
 
    	
###
    
	
Patryk   Tracz
    	
 
    	
###
    
	
Lukasz   Tracz
    	
 
    	
###
    

 

Confidential material redacted and filed separately with the Commission.

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