Document:

Document

Exhibit 10.64

ADDENDUM TO PARTNERCONNECTTM  EVM DISTRIBUTION AGREEMENT (RENTAL SERVICES ADDENDUM)
Region: North America

THIS RENTAL SERVICES ADDENDUM ("Addendum") is entered between:

Zebra Technologies International, LLC, an Illinois limited liability company operating as a subsidiary of Zebra Technologies Corporation, with its registered office at 3 Overlook Point, Lincolnshire IL 60069 (“Zebra”)

and

SCANSOURCE, INC., a corporation incorporated in South Carolina, with a place of business at 6 Logue Court, Greenville, South Carolina 29615 ("Distributor”).

Zebra and the Distributor are referred to collectively as “Parties” and individually as a “Party”.

WHEREAS Distributor has agreed to the Zebra® PartnerConnect EVM Distribution Agreement terms (as amended), which are hereby incorporated by reference (the “Distribution Agreement”); and

WHEREAS Zebra’s Asset Identification and Tracking (“AIT”) products and services, shall continue not to be within the scope of the Distribution Agreement and shall not be within the scope of this Addendum; and

WHEREAS Distributor is looking to resell to Zebra Authorized Resellers (as defined in Exhibit A), Rental Services, the delivery of which will be governed by the terms and conditions specified in Exhibit A hereof; and

WHEREAS the Parties hereto agree to enter into this Rental Services Addendum, the terms of which are supplemental to the Distribution Agreement terms.

NOW, THEREFORE, the Parties agree as follows:

1.Distribution Agreement Terms and Conditions

Unless otherwise noted herein, all terms not herein defined shall have the meanings ascribed thereto in the Distribution Agreement. Except as expressly set forth in this Rental Services Addendum (“Addendum”), the terms and conditions of the Distribution Agreement shall remain unchanged and in full force and effect. In the event of any inconsistency between this Addendum and the Distribution Agreement in relation to the subject herein, this Addendum shall prevail. The section headings used herein are for descriptive purposes only and shall not be used in construing the provisions of the Addendum.

2.    Definition

“Equipment” shall mean the Zebra products listed on a Rental Services Form that at the time of execution of this Addendum may consist of various configurations of Zebra’s MC32, MC92, TC51, TC70, TC75, MC18, MC40, MC55, MC67, RS50 product families. Zebra may add and remove product families from its rental offering by a written message to Distributor and without the need to formally amend this Addendum.

“End User” shall mean the legal entity that purchases the Rental Services for their internal use and not for further resale.

“Rental Services” shall mean the rights granted by Zebra to Distributor under the Rental Services Contract, or to End Users via Authorized Resellers under a Sell Through Rental Services Agreement, which is identified by a designated SKU number, and is related to the use of the Equipment listed in each Rental Services Form, including the maintenance and support thereof.

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Exhibit 10.64

“Rental Services Contract” shall mean the completed Rental Services Form accepted by Zebra for a specific Rental Services opportunity, and the terms of the Distribution Agreement, as supplemented by the terms of this Addendum, including the Rental Services Agreement terms (and its Schedules) attached to this Addendum as Exhibit A.

“Rental Services Form” shall mean the Zebra form which an Authorized Reseller must fill out (with Rental Charges redacted) and submit to Zebra (via Distributor) for approval prior to the Distributor’s purchase of Rental Services for a specific End User opportunity. A blank template of a Rental Services Form is attached to this Addendum as Exhibit B.

“Sell Through Rental Services” shall mean the Rental Services Distributor purchases from Zebra for resale to End Users ( via Authorized Resellers) under the terms of Exhibit A, and which will be delivered by Zebra directly to the End-Users identified in each Rental Services Form.

“Sell Through Rental Services Agreement” shall mean the contract in the form of Exhibit A and the completed Exhibit B (Rental Charges redacted) which will form an integral part thereof, to be entered into between Zebra and an End User for the delivery of the Rental Services to such End User, following Distributor’s purchase of Sell Through Rental Services from Zebra and their resale (via an Authorized Reseller) to such End User.

3.    Authorization to offer and sell Zebra Rental Services and the Applicable Terms.

a.The Rental Services are classified as Class 5 - Restricted in Zebra’s PartnerConnect program, which means that an Authorized Reseller must have appropriate Zebra authorization to purchase them for resale.

b.Subject to the Authorized Reseller having obtained Zebra’s authorization to purchase Rental Services for resale (which Zebra will confirm to the Distributor on a case by case basis upon Distributor’s request), the Distributor acknowledges and agrees that:

1.The Distributor will offer the Rental Services as Sell Through Rental Services to Authorized Resellers, only on the Zebra Sell Through Rental Services Agreement terms set out herein as Exhibit A.

2.In any acceptance notice issued by Distributor, to indicate its acceptance of Authorized Reseller’s purchase order for Sale Through Rental Services, Distributor shall include a notice that advises the Authorized Reseller that all purchases of Sell Through Rental Services are subject to the Sell Through Rental Services Agreement posted at www.zebra.com/partnerconnect-tc (or any equivalent thereof) or attached. Distributor will require Authorized Reseller to have similar provisions in their acceptance notice that advises the End User that all purchases of the Rental Service are subject to the Sell Through Rental Services Agreement.

c.In the event Distributor does not comply with the terms of sub sections 3 (b) (1) and (2) above, and a claim is asserted or brought by an End User or Authorized Reseller against Zebra, which arise out of or is in any way connected to:

i.End User’s or Authorized Reseller’s assertion that the Sell Through Rental Services Agreement does not regulate the supply of the Sell Through Rental Services from Zebra to End User; or

ii.End User’s or Authorized Reseller’s exertion of its contractual rights against Zebra where End User has not entered into the Sell Through Rental Services Agreement with Authorized Reseller and instead is relying upon different contractual terms 
(the “Rental Services Claim”),

Distributor agrees to defend Zebra in the Rental Services Claim (at Zebra’s request) and indemnify and hold Zebra and its Affiliates harmless from and against: any costs, settlement, service credits, or similar losses due and/ or 
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Exhibit 10.64

payable as a result of the Rental Services Claim; and any judgment awarding damages or other remedy against Zebra in the Rental Services Claim.
Zebra shall have the right to participate in the defense of a Rental Services Claim and Distributor will not settle such claim without Zebra’s prior written consent.

4.    Rental Services Charges, Payment Terms, and Delivery Terms.

The specific rental charges for each transaction shall be as communicated to Distributor by Zebra upon approval of such transaction. The payment terms specified in the Distribution Agreement will apply between Zebra and the Distributor. Zebra will deliver the Equipment to the Distributor, or drop ship it to the Authorized Reseller or the End User location, in accordance with the delivery terms set out in Exhibit A. For the avoidance of doubt, risk of loss or damage to the Equipment shall pass with delivery per the applicable INCOTERMS® 2010, however title in the Equipment and/or software shall never pass and shall remain vested with Zebra or its suppliers as appropriate.

5.    Return of Equipment.

Distributor agrees that when it resells Rental Services other than under the terms of Exhibit A, the terms of the Rental Services Contract will apply as between Distributor and Zebra. In such event, Distributor will be responsible for the return of Equipment units to Zebra at the end of rental period for which rental charges have been paid to Zebra, and in the event such Equipment units are not returned to Zebra within fourteen (14) days thereof, Distributor shall pay to Zebra the then-current Equipment list price for each unreturned units, plus any applicable federal, state, or local sales, use, goods, VAT or services taxes, and such payment shall be due upon receipt of Zebra’s invoice therefore. Zebra may offset any payments that may be owed to Distributor under the Distribution Agreement, or under any other agreement between Zebra and Distributor against the amounts owed by Distributor pursuant to this Addendum. Additionally, Distributor shall be liable to Zebra for all legal costs, fees and expenses incurred in securing payment of all amounts owed by Distributor under this Addendum.

6.    Term and Termination.

This Addendum shall continue until terminated: (i) by either Party for any or no reason upon thirty (30) days’ prior written notice to the other Party; (ii) by Zebra immediately for upon occurrence of any of the following events as described in Section 18.1b of the Distribution Agreement; (iii) by Zebra if Distributor fails to, or Distributor fails to ensures that its Authorized Reseller supplies the information required under the Rental Services Form and fails to remedy any such default(s) within thirty (30) days after the receipt of notice to that effect; or (iv) if Distributor ceases for whatever reason to be a Zebra Authorized Distributor.

7.    Effects of Termination

Upon the expiration or termination of this Addendum for any reason:

a.Distributor’s authorization to offer for sale and sell the Rental Services shall cease, and Zebra will not accept any new orders for Rental Services from Distributor.

b.All monies due and owing by Distributor to Zebra for Rental Services under this Addendum shall become immediately due and payable.

c.Distributor shall deliver to Zebra any and all Confidential Information provided to Distributor in support of this Addendum and promptly return to Zebra all property of Zebra in its possession, including but not limited to loaned equipment, if any.

d.Distributor shall be responsible to complete all the procedures and processes associated with Rental Services Agreements sold by Zebra to, or through, Distributor prior to the effective date of termination, and shall provide Zebra with such other information and assistance, including without limitation, consent to novation or assignment, as Zebra may reasonably request in order to ensure an orderly termination with minimal commercial disruption.

8.    Entire Agreement and Order of Precedence
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Exhibit 10.64

a.This Addendum, together with the Exhibits thereto and the other documents comprising the Distribution Agreement represent the entire agreement of the Parties with respect to the subject matter contained herein. Any and all prior discussions or agreements with respect hereto are merged into and superseded by this Addendum. None of these terms and conditions may be added to, modified, superseded or otherwise altered except by a written instrument that is signed by an authorized representative of Zebra and Distributor, and that expressly refers to this Addendum and states an intention to modify or amend it.

b.Notwithstanding the precedence provision of the Distribution Agreement in the event of any conflicts or ambiguities in the Distribution Agreement, the order of precedence shall be as follows: (a) the terms and conditions of this Addendum; (b) the Exhibits to this Addendum; and (d) The Distribution Agreement.

IN WITNESS WHEREOF, the Parties hereto have caused this Addendum to be executed by their respective duly authorized officers or agents, to take effect on the date of the last signature hereof (the “Effective Date”).

																		
	ZEBRA TECHNOLOGIES INTERNATIONAL LLC.	ScanSource, Inc.
						
	By:	/s/ Michael Mughetto			By:	/s/ Brenda McCurry
						
	Name:	Michael Mughetto			Name:	Brenda McCurry
						
	Title:	VP NA Channel Sales			Title:	VP Supplier Services
						
	Date:	May 6, 2021			Date:	May 6, 2021
						
						

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Exhibit 10.64

Exhibit A

Rental Services Agreement

This Rental Services Agreement, together with the completed Rental Services Form (collectively, the “Agreement”), shall govern: (i) all direct sales of Rental Services by Zebra Technologies International, LLC, or any of its Affiliates (collectively and individually referred to as "Zebra") to End Users; (ii) all sales of Rental Services by Zebra to End Users through Authorized Sellers; and (iii) all sales of Rental Services by Zebra to Company.

TERMS OR CONDITIONS THAT ARE DIFFERENT FROM OR IN ADDITION TO THOSE CONTAINED
HEREIN ARE HEREBY REJECTED AND OF NO FORCE OR EFFECT. Any prior or contemporaneous representations, agreements, comments, covenants, or assertions that relate to the subject matter of the Agreement, whether written or oral, are not enforceable.

1.    DEFINITIONS.

“Affiliates” means any other entity directly or indirectly controlling or controlled by or with common control with one of the parties of more than 50% of the voting stock, limited liability company interest, general partnership interest or voting interest in any such corporation, limited liability company or partnership.

“Authorized Reseller” means a reseller or a distributor who participate in the Zebra PartnerConnect program.

“Company” means an Authorized Seller who is a direct party to this Agreement, while contracting with a reseller or an End User (as the case may be) for the Rental Services via contract other than this Rental Services Agreement.

“Contracting Party” means the Party with which Zebra consummates the sale of Rental Services (depending on the structure of the sale) and to which the Agreement shall apply. For direct sales by Zebra to End Users and sales of Rental Services by Zebra to End Users through Authorized Resellers, the Contracting Party means: End Users. For sales of Rental Services by Zebra or by a Distributor to Company, the Contracting Party means: Company.

“Effective Date” means the date specified on the first Rental Services Form submitted under this Agreement as the “Rental Services Start Date”.

“End User” means a customer who buys Rental Services for its own use and not for resale, either directly from Zebra or through an Authorized Seller.

“Equipment” means the Zebra products listed on each Rental Services Form.

“Location” means the full address where the Equipment will be used by End User as specified in the Rental Services Form.

“Parties” or “Party” means Zebra, Authorized Reseller, and/or the Contracting Party, as applicable.
“Region” means one of the four geographic divisions in which Zebra operates. The four regions are (i) North America (ii) Latin America (iii) Europe, Middle East, and Africa; and (iv) Asia Pacific.

“Rental Charges” means the amounts specified on the Rental Services Form which includes Equipment maintenance services, software/firmware license, and shipping of the Equipment to End User.

“Rental Services” means the rights granted by Zebra related to the use of the Equipment under the terms and subject to the conditions of this Agreement.

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Exhibit 10.64

“Rental Services Form” means the document, a sample of which is attached to the Agreement as Schedule A, which must be submitted by End User or the Authorized Reseller to Zebra in conjunction with placing a Purchase Order for Rental Services. The completed Rental Services Form(s) form an integral part of this Agreement.

2.    AGREEMENT; SCHEDULES. The Agreement sets forth the terms and conditions upon which Zebra shall rent the Equipment to the Contracting Party. The Agreement is non-cancellable and End User and the Authorized Reseller are responsible for payment of the full Rental Charges regardless of whether End User decides to return the Equipment to Zebra at the end of the Rental Term or at any earlier time. The Agreement includes the attached Schedules A, B, and C:
a.Schedule A - Rental Services Form which covers the specifics of each Rental Services transaction conducted during the term of the Agreement.
b.Schedule B - The End User software/firmware license terms (EULA); and
c.Schedule C - The Equipment maintenance and support specification (Zebra OneCare® Essential Service Description Document).

3.    AGREEMENT TERM AND RENTAL TERM.
a.The term of the Agreement shall commence on the Effective Date and extend for the later of one year or the last to expire Rental Term.
b.The Rental Term shall commence on the date Equipment is received by End User and shall terminate on the date Zebra receives all the Equipment back from End User (“Rental Term”). The initial rental period is as specified in the Rental Services Form, which in no event can be less than three (3) months (“Initial Rental Term”). Thereafter, the term may be renewed for successive one (1)-month periods, subject to Zebra’s receipt of purchase orders, in accordance with Section 10 (PURCHASE ORDER) of the Agreement.

4.    RENTAL CHARGES. End User and Authorized Reseller agree to pay the Rental Charges for each unit of the Equipment to Zebra. If the Rental Term does not start on the first day of a calendar month or end on the last day of a month, the Rental Charge will be prorated accordingly. The Rental Charges shall be invoiced and payable until all Equipment is received by Zebra from End User.

5.    PAYMENT. (a) Rental Charges are payable in advance. For Rental Services purchased directly from Zebra, invoices will be provided by Zebra in advance of the applicable month. Unless specified otherwise in any other agreement between the Parties covering the subject matter hereof, all payment terms are net thirty (30) days from the date of Zebra’s invoice. End User or Authorized Reseller shall pay Zebra interest at one and one-half percent (1.5%) per month or the highest lawful rate, whichever is less, on any delinquent payment from the date such payment was due until fully paid. Zebra reserves the right, at any time, to revoke any credit extended if payment is in arrears for more than ten (10) days after notice, or if in Zebra’s sole and absolute discretion, Zebra determines that the End User or Authorized Reseller credit does not warrant further extension of credit. (b) If units are not returned within fourteen (14) days of the end of the rental period for which Rental Charges have been paid, End User shall pay to Zebra the then-current Equipment list price for the unreturned units, and such payment shall be due upon receipt of Zebra’s invoice therefore. (c) Zebra may also, in its sole and absolute discretion, suspend the Rental Services or any part thereof due to non-payment of any sums due or payable until all such outstanding sums have been fully paid. For Rental Services purchased through an Authorized Reseller or from Company, the payment terms agreed to between End User and such Authorized Seller or Company will apply.

6.    SECURITY DEPOSIT. Prior to taking possession of the Equipment, End User may be required to deposit with Zebra (or with the Authorized Reseller), in trust, a security deposit equal to two (2) times the Rental Charges for the Initial Rental Term (the “Security Deposit”) as security for the performance by End User of the terms under the Agreement and for any damages caused to the Equipment during the Rental Term. Zebra may use all or part of the Security Deposit to cover unpaid Rental Charges and to repair any damage to Equipment caused during the Rental Term, and End User or the Authorized Reseller shall reimburse Zebra for such charges and costs out of the Security Deposit. The Security Deposit is not a limit on the amount Zebra is entitled to recoup under this Agreement and End User and the Authorized Reseller remain liable for any balance thereof. End User and Authorized Reseller shall not apply or deduct any portion of any Security Deposit and shall not use any Security Deposit at any time in 
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Exhibit 10.64

lieu of payment of Rental Charges. If End User breaches any of the terms or conditions of the Agreement, End User shall forfeit any Security Deposit, as permitted by applicable law.

7.    RECALL NOTICE. Zebra may recall any Equipment, upon ten (10) days written notice to End User.

8.    LABELS. End User shall not remove, alter, disfigure, or cover up any serial numbering, lettering, logo, or insignia displayed on the Equipment.

9.    EQUIPMENT MAINTENANCE SERVICES. During the Rental Term, Zebra shall provide End User telephone support and depot maintenance for the Equipment, all as described in Schedule C.

10.    PURCHASE ORDER. End User or Authorized Reseller shall issue a purchase order for the Rental Services that binds them to their payment obligations during the Initial Rental Term. For continued Rental Services beyond the Initial Rental Term, End User or the Authorized Reseller (as the case will be) shall issue subsequent purchase order(s) to Zebra or to Authorized Reseller in advance of each successive monthly period beyond the Initial Rental Term. Purchase orders to Zebra shall be emailed to Attn: Zebra Service Contracts Administration
- Refer to Schedule A for applicable Zebra email address.

11.    EQUIPMENT OWNERSHIP; LIENS; LOCATION. Zebra is the sole owner of the Equipment and has sole title thereto. The Contracting Party warrants that it will not encumber the Equipment or their respective interest in the Equipment in any manner whatsoever, nor create or permit to exist any levy, lien or encumbrance thereof except those created by or through Zebra. End User shall not move the Equipment or any part thereof from the Location without Zebra's prior written consent.

12.    POSSESSION AND SURRENDER OF EQUIPMENT. Possession of the Equipment shall be transferred to End User on the first day of the Initial Rental Term. At the expiration of the Rental Term, End User shall surrender the Equipment to Zebra (or to Authorized Reseller, as instructed by Zebra) in good condition and working order, ordinary wear and tear excepted, as it was at the commencement of the Initial Rental Term.

13.    RISK OF LOSS AND INSURANCE.
a.Company assumes any and all risk of loss or damage to the Authorized Devices during the Term. Company agrees to keep the Authorized Devices insured at Company’s expense against all risks of loss from any cause whatsoever, and such insurance shall cover not less than the replacement cost of the Authorized Devices.
b.Company shall carry commercial general liability insurance in an amount not less than $2,000,000 total liability per occurrence with Zebra named loss payee and additional insured under such insurance policies.
c.Company shall provide to Zebra, at the following email address: nkq674@zebra.com, certificates of insurance evidencing insurance coverage throughout the Term. If Company fails to provide Zebra with such evidence, then Zebra will have the right, but not the obligation, to purchase insurance protecting Zebra at Company's expense.

14.    MAINTENANCE, DAMAGE AND LOSS. End User will, at End User's sole expense, keep and maintain the Equipment clean and in good working order and repair during the Rental Term. In the event the Equipment is lost or damaged beyond repair, End User shall pay to Zebra (or to Authorized Reseller) as replacement costs for the Equipment the amount equal to the then-current list price of such Equipment, in addition to End User’s obligation to pay the full Rental Charges under the Agreement.

15.    ENCUMBRANCES, TAXES AND OTHER LAWS. End User shall keep the Equipment free and clear of any liens or other encumbrances and shall not permit any act where Zebra’s title or rights may be negatively affected. End User shall be responsible for complying with and conforming to all laws and regulations relating to the possession, use or maintenance of the Equipment. Furthermore, End User shall promptly pay all taxes, fees, licenses, and governmental charges, together with any penalties or interest thereon, relating to the possession, use or maintenance of the Equipment.

16.    ZEBRA’S REPRESENTATIONS. Zebra represents that it has the right to rent the Equipment as provided in the Agreement and that End User shall be entitled to quietly hold and possess the Equipment, and (subject to 
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Section 7, RECALL NOTICE) Zebra will not interfere with that right as long as Zebra is paid the Rental Charges in a timely manner and all other obligations to Zebra under the Agreement are performed.

17.    SEVERABILITY. If any part or parts of the Agreement shall be held unenforceable for any reason, the remainder of the Agreement shall continue in full force and effect. If any provision of the Agreement is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

18.    LIMITATION OF LIABILITY.
TO THE MAXIMUM EXTENT PERMITTED BY LAW, ZEBRA WILL NOT BE LIABLE TO CONTRACTING PARTY AND/OR TO AUTHORIZED RESELLERS, THEIR AFFILIATES OR ANY OTHER PERSON FOR ANY LOST REVENUES, PROFITS, GOODWILL OR USE, THE COST OF SUBSTITUTED PRODUCTS OR SERVICES, BUSINESS INTERRUPTION OR ANY DAMAGE TO OR LOSS OF ANY SOFTWARE PROGRAMS, DATA OR REMOVABLE DATA STORAGE MEDIA, FOR THE RESTORATION OR REINSTALLATION OF ANY SOFTWARE PROGRAMS OR DATA, OR FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES OF ANY KIND HOWEVER CAUSED RELATED TO THE RENTAL SERVICES OR THE AGREEMENT, OR THE INABILITY TO USE THE EQUIPMENT, WHETHER ARISING UNDER CONTRACT, TORT (INCLUDING STRICT LIABILITY AND NEGLIGENCE), EQUITY OR ANY OTHER THEORY OF LIABILITY, EVEN IF ZEBRA HAS BEEN ADVISED OF THE POSSIBILITY OF THOSE DAMAGES OR EVEN IF THOSE DAMAGES ARE FORESEEABLE. CONTRACTING PARTY’S AND/OR AUTHORIZED RESELLER’S EXCLUSIVE REMEDY IS EXPRESSLY LIMITED TO PERFORMANCE OF THE RENTAL SERVICES PROVIDED FOR BY THE AGREEMENT OR THE FAIR MARKET VALUE THEREOF.

ZEBRA’S ENTIRE LIABILITY FOR DAMAGES TO THE CONTRACTING PARTY AND/OR AUTHORIZED RESELLERS OR OTHERS RESULTING FROM THE RENTAL SERVICES UNDER THE AGREEMENT SHALL IN NO EVENT EXCEED THE ANNUAL RENTAL CHARGES PAID BY CONTRACTING PARTY AND/OR AUTHORIZED RESELLERS, EXCEPT FOR INSTANCES OF PHYSICAL INJURY TO PERSON OR TANGIBLE PERSONAL PROPERTY DAMAGE. TANGIBLE PERSONAL PROPERTY DOES NOT INCLUDE, WITHOUT LIMITATION, DATA, RECORDS, OR DOCUMENTS OR ANY OTHER RECORDED INFORMATION. (SUCH DATA, RECORDS, DOCUMENTS OR OTHER RECORDED INFORMATION ARE NOT TO BE CONSIDERED TANGIBLE PROPERTY REGARDLESS OF THE MEDIUM, INCLUDING ELECTRONIC, THEY ARE STORED). EXCEPT AS STATED HEREIN, ZEBRA DISCLAIMS ALL WARRANTIES WITH RESPECT TO THE RENTAL SERVICES, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE OR NON-INFRINGEMENT. NEITHER PARTY MAY BRING A LEGAL ACTION UNDER THE AGREEMENT OR RELATED TO THE RENTAL SERVICES MORE THAN TWO (2) YEARS AFTER THE CAUSE OF ACTION AROSE UNLESS PROVIDED OTHERWISE BY APPLICABLE NON- WAIVABLE LAW.

19.    ASSIGNMENT. Neither the Agreement nor the Contracting Party’s rights hereunder are assignable except with Zebra’s prior written consent.

20.    BINDING EFFECT. The covenants and conditions contained in the Agreement shall apply to and bind the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties.

21.    DISPUTE RESOLUTION/GOVERNING LAW. (a) The Agreement will be interpreted under, and any disputes whether sounding in contract, tort or otherwise arising out of the Agreement will be governed by, the laws of the State of Illinois, excluding its conflicts of law principles. The Contracting Party irrevocably consents to the exclusive jurisdiction of the state and federal courts located in Cook or Lake County in the State of Illinois, USA, in connection with all actions arising out of or in connection with the Agreement, and waives any objections that venue is an inconvenient forum. The Contracting Party further agrees that it will not initiate any action against Zebra in any other jurisdiction. The Contracting Party agrees that a final judgment in any such action or proceeding will be conclusive and may be enforced in any other jurisdiction (including without limitation, the appropriate courts of the jurisdiction in which the Contracting Party is resident or in which any property or an office of Contracting Party is located) by suit on the judgment or in any other manner provided by law. (b) The Parties will attempt to settle any claim or controversy arising out of the Agreement through consultation and negotiation in good faith and in the spirit 
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of mutual cooperation; provided, however that this does not preclude either Party from initiating a legal proceeding. Agreement, by the Parties, to any alternative dispute resolution procedure will not be construed under the doctrines of laches, waiver, or estoppel to adversely affect the rights of either Party. the Contracting Party’s performance under the Agreement will not be suspended during the pendency of any dispute. (c) The provisions of this Section 21 (DISPUTE RESOLUTION/GOVERNING LAW) shall survive the termination or expiration of the Agreement. In the event that any provision of the Agreement shall be held unenforceable, such provision shall be enforced to the maximum extent permissible, and the remaining provisions of the Agreement shall remain in effect.

22.    NOTICE. Any notice required or otherwise given pursuant to the Agreement shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service to the address for notice listed on the Rental Services Form.

23.    ENTIRE AGREEMENT. The Agreement constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of the Agreement. There are no other promises, conditions, understandings, or other agreements, whether oral or written, relating to the subject matter of the Agreement. The Agreement may be modified in writing and must be signed by both Zebra and the Contracting Party.

24.    CUMULATIVE RIGHTS. Zebra’s and the Contracting Party’s rights under the Agreement are cumulative, and shall not be construed as exclusive of each other unless stated otherwise or required by law.

25.    WAIVER. The failure of either Party to enforce any provisions of the Agreement shall not be deemed a waiver or limitation of that Party's right to subsequently enforce and compel strict compliance with every provision of the Agreement. The acceptance of Rental Charges by Zebra does not waive Zebra’s right to enforce any provisions of the Agreement.

26.    INDEMNIFICATION. Except for damages, claims or losses due to Zebra’s negligence, the Contracting Party, to the extent permitted by law, will indemnify and hold Zebra and Zebra’s property, free and harmless from any liability for losses, claims, injury to or death of any person, including the Contracting Party, or for damage to property arising from End User using and possessing the Equipment or from the acts or omissions of any person or persons, including End User, using or possessing the Equipment with End User’s express or implied consent.

27.    DEFAULTS. If the Contracting Party fails to perform or fulfill any obligation under the Agreement( including timely payment) they shall be in default of the Agreement and shall have seven (7) days from the date of notice of default by Zebra to cure the default. In the event the default is not cured, Zebra may, at Zebra’s option, (a) cure such default and the cost of such action may be added to the respective Party’s financial obligations under the Agreement; or (b) declare the default and terminate the Agreement. If the Contracting Party and/or Authorized Reseller shall become insolvent, cease to do business as a going concern or if a petition has been filed by or against it under the Bankruptcy Act or similar federal or state statute, Zebra may immediately declare a default and terminate the Agreement. In the event of a default, Zebra may, as permitted by law, re-take possession of the Equipment. Zebra may, at its option, hold the Contracting Party liable for any difference between the Rental Charges that would have been payable under the Agreement during the balance of the unexpired term and any amount paid by any successive lessee if the Equipment is re-let, minus the cost and expenses of such reletting. In the event Zebra is unable to re-let the Equipment during any remaining term of the Agreement, after default, Zebra may, at its option, hold End User, the Contracting Party and/or the Authorized Reseller liable for the balance of the unpaid Rental Charges under the Agreement as if the Agreement had continued in force.

28.    FORCE MAJEURE. Zebra shall not be responsible or liable for any failure to perform hereunder if such failure is caused by acts of God, acts of government, strikes or labor disputes, pandemic, failures of transportation, fire or flood or other casualty, failures of subcontractors or suppliers, or any other cause or causes (whether or not similar in nature to any of those herein specified) that are beyond Zebra’s reasonable control.

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Schedule A – Rental Services Form

						
	

AGREEMENT (the “Agreement”)
	Rental Services Agreement - North America
sold to the Reseller named herein (through the named Distributor for the Reseller to resell Rental Services to the named End-User

	Agreement Effective Date (“Effective
Date”)
	May 6, 2021
	

Zebra Technologies International, LLC (“Zebra”)
	Zebra Technologies International, LLC 3 Overlook Point, Lincolnshire IL 60069
Attn: Service Contracts Administration
a.All NA Distributors, send to: cs.nadisti@zebra.com
b.All other US End Users, send to: cs.northamerica@zebra.com
c.All other Canada End Users, send to: cs.canada@zebra.com

Notices to Zebra: Include cc: Zebra Law Department-NKQ674@zebra.com

	

Distributor’s Full Legal Name and Registered Address (if applicable due to the Authorized Reseller purchasing from a Distributor)
	
	

Authorized Reseller Full Legal Name and Registered Address
	
	

End User’s Full Legal Name
	
	End User Tax Identification Number	
	End User Legal Address & Contact
Street Address, City, State, Zip 
Contact Name, Phone, Email
	
	End User Bill-To Address & Contact Street Address, City, State, Zip 
Contact Name, Phone, Email
	
	Delivery Location	
	End User Equipment Location (where Equipment will be used)
Street Address, City, State, Zip
	

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Exhibit 10.64

						
	Equipment List (Rental Services Part Number and Description)
(Minimum Quantity: 25
	
	Initial Rental Term	[Minimum of three (3) months]
	Rental Charges for the Initial R
Term (USD)
	

Schedule B - LICENSE AGREEMENT (RESTRICTED SOFTWARE)

This End User License Agreement (“EULA”) is a legal agreement between End User (either an individual or a company) (“Licensee”) and Zebra Technologies Corporation (“Zebra”) for Software, owned by Zebra and its affiliated companies and its third-party suppliers and licensors, that accompanies this EULA. For purposes of this EULA, “Software” shall mean machine-readable instructions used by a processor to perform specific operations. BY USING THE SOFTWARE, LICENSEE ACKNOWLEDGES ACCEPTANCE OF THE TERMS OF THIS EULA. IF LICENSEE DOES NOT ACCEPT THESE TERMS, LICENSEE MAY NOT USE THE SOFTWARE.

1.    GRANT OF LICENSE. Zebra grants Licensee, the following rights provided that Licensee complies with all terms and conditions of this EULA: For Software provided with Zebra hardware, Zebra hereby grants Licensee a limited, personal, non-exclusive license during the Rental Term to use the Software solely and exclusively for Licensee’s internal use in support of the operation of Licensee’s associated Zebra hardware and for no other purpose. Licensee has no right to use Software provided with Zebra hardware to support non-Zebra hardware. To the extent that non-device specific Software is provided to Licensee in a manner that is designed to be installed by Licensee, Licensee may install one copy of the installable Software on one hard disk or other device storage for one printer, computer, workstation, terminal, controller, access point or other digital electronic device, as applicable (an “Electronic Device”), and Licensee may access and use that Software as installed on that Electronic Device so long as only one copy of such Software is in operation. Licensee may install, use, access, display and run only the number of copies of the Software to which Licensee is entitled under a purchase order, support contract or other agreement with Zebra. In the absence of a support contract, Licensee is entitled, for a period of ninety (90) days from when the instance of Software (or hardware including the Software) are first shipped by Zebra or downloaded by Licensee, to obtain, if available, updates, from Zebra and operational technical support, not including implementation, integration or deployment support (“Entitlement Perio d”). Licensee may not obtain updates from Zebra after the Entitlement Period, unless covered by a Zebra support contract or other written agreement with Zebra. Certain items of the Software may be subject to open source licenses. The open source license provisions may override some of the terms of this EULA. Zebra makes the applicable open source licenses available to Licensee on a Legal Notices readme file available on Licensee’s device and/or in System Reference guides or in Command Line Interface (CLI) reference guides associated with certain Zebra software or products.

1.1    Authorized Users. The licenses granted herein are subject to the condition that Licensee ensures the maximum number of authorized users accessing and using the Software either alone or concurrently is equal to the number of user licenses for which Licensee is entitled to use either through a Zebra channel partner member or Zebra. Licensee may purchase additional user licenses at any time upon payment of the appropriate fees to the Zebra channel partner member or Zebra.

1.2    Software Transfer. Licensee may only transfer this EULA and the rights to the Software or updates granted herein to a third-party in connection with the support or sale of a device which the Software accompanied during the Entitlement Period or as covered by a Zebra support contract. In such event, the transfer must include all of the Software (including all component parts, the media and printed materials, any upgrades, and this EULA) and Licensee may not retain any copies of the Software. The transfer may not be an indirect transfer, such as a consignment. Prior to the transfer, the end user receiving the Software must agree to all the EULA terms. If Licensee is purchasing Zebra products and licensing Software for end use by a U.S. Government end user, Licensee may transfer such Software license, but only if: (i) Licensee transfers all copies of such Software to the U.S. Government end user or to an interim transferee, and (ii) Licensee has first obtained from the transferee (if applicable) and ultimate end user an enforceable end user license agreement containing restrictions substantially identical to the ones contained in this EULA. Except as stated in the foregoing, Licensee and any transferee(s) authorized by this 
11

Exhibit 10.64

provision may not otherwise use or transfer or make available any Zebra software to any third-party nor permit any party to do so.

2.    RESERVATION OF RIGHTS AND OWNERSHIP. Zebra and its suppliers and licensors reserve all rights not expressly granted to Licensee in this EULA. The Software is protected by copyright and other intellectual property laws and treaties. Zebra or its suppliers or licensors own the title, copyright, and other intellectual property rights in the Software. The Software is licensed, not sold. Licensee understands and agrees that Zebra may license the Software or part of the Software from one or more third-party licensors and any such applicable third-party licensor is an intended third-party beneficiary to this EULA and any such third-party licensor and its successors and assigns may enforce and all terms of this EULA, and nothing herein shall limit such third-party licensor’s legal or equitable rights (including injunctive relief), benefits, or remedies of any nature whatsoever under or by reason of this EULA.

3.    LIMITATIONS ON END USER RIGHTS. Licensee may not reverse engineer, decompile, disassemble, or otherwise attempt to discover the source code or algorithms of, the Software or modify, or disable any features of, the Software, or create derivative works based on the Software. Licensee may not rent, lease, lend, sublicense or provide commercial hosting services with the Software.

4.    MACHINE DATA. “Machine Data” means usage data collected by software or devices sold (or licensed) under this EULA such as battery management (time to empty, standby current, average current), device system time, CPU processing load, application usage time, free RAM, number of running processes, network information (name, identifier), device identifier, firmware version, hardware version device type, audio volume, LED state, beeper volume, backlight level, key light, odometer count, reboot, reboot cause, total storage and memory availability, power cycle count, and device up time. Notwithstanding anything else in this EULA, all title and ownership rights in and to Machine Data are held by Zebra. In the event, and to the extent Licensee is deemed to have any ownership rights in Machine Data, Licensee hereby grants Zebra a limited, irrevocable, non-exclusive right and license to use Machine Data.

5.    AGGREGATE DATA COLLECTION. Licensee acknowledges and agrees that Zebra may as permitted by law (a) collect, process, and use aggregated data, stored by or related to the Software, including, without limitation, data generated by the Software or data generated by any device incorporating the Software, and create anonymized and/or aggregated data records that do not allow Zebra to identify any natural person (“Aggregate Data”), (b) use such Aggregate Data to improve the Software, develop new software or services, understand industry trends, create and publish white papers, reports, or databases summarizing the foregoing, and generally for any legitimate purpose related to Zebra’s business, and (c) use Aggregate Data to investigate and help address and/or prevent actual or potential unlawful activity.

6.    LOCATION INFORMATION. The Software may enable Licensee to collect location-based data from one or more client devices which may allow Licensee to track the actual location of those client devices. Zebra specifically disclaims any liability for Licensee’s use or misuse of the location-based data. Licensee agrees to pay all reasonable costs and expenses of Zebra arising from or related to third-party claims resulting from Licensee’s use or misuse of the location- based data.

7.    PRIVACY. Zebra’s Privacy Policy (located at: https://www.zebra.com/us/en/about-zebra/company- information/legal/privacy-statement.html), as amended from time to time, is hereby incorporated by reference into this EULA. If end users submit personal data to Zebra in connection with the use of Zebra hardware or Software, the ways in which Zebra collects and uses that data are regulated by Zebra’s Privacy Policy in accordance with applicable law. Zebra is committed to GDPR compliance and Zebra’s GDPR Addendum (located at: https://www.zebra.com/us/en/about- zebra/company-information/legal/gdpr.html) supplements Zebra’s Privacy Policy to the extent personal data is provided to Zebra and the GDPR is applicable to the end user.

8.    SOFTWARE RELEASES. During the Entitlement Period, Zebra or Zebra’s channel partner members may make software releases available to Licensee as those releases become available after the date Licensee obtains its initial copy of the Software. This EULA applies to all and any component of the release that may be made available to Licensee after the date Licensee obtains its initial copy of the Software unless Zebra provides other license terms along with such release. To receive Software provided through the release, Licensee must first be licensed for the 
12

Exhibit 10.64

Software identified by Zebra as entitled to the release.   Zebra recommends that Licensee enter into a Zebra support contract to ensure that Licensee is entitled to receive any available Software releases. Some features of the Software may require Licensee to have access to the internet and may be subject to restrictions imposed by Licensee’s network or internet provider.

9.    EXPORT RESTRICTIONS. Licensee acknowledges that the Software is subject to export restrictions of various countries. Licensee agrees to comply with all applicable international and national laws that apply to the Software, including all the applicable export restriction laws and regulations.

10.    ASSIGNMENT. Licensee may not assign this EULA or any of Licensee’s rights or obligations hereunder (by operation of law or otherwise) without the prior written consent of Zebra. Zebra may assign this EULA and its rights obligations without Licensee’s consent. Subject to the foregoing, this EULA shall be binding upon and inure to the benefit of the parties to it and their respective legal representatives, successors and permitted assigns.

11.    TERMINATION. This EULA is effective until terminated. Licensee’s rights under this EULA will terminate automatically without notice from Zebra if Licensee fails to comply with any of the terms and conditions of this EULA. Zebra may terminate this EULA by offering Licensee a superseding agreement for the Software or for any new release of the Software and conditioning Licensee’s continued use of the Software or such new release on Licensee’s acceptance of such superseding agreement. Upon termination of this EULA, Licensee must cease all use of the Software and destroy all copies, full or partial, of the Software.

12.    DISCLAIMER OF WARRANTY. UNLESS SEPARATELY STATED IN A WRITTEN EXPRESS LIMITED WARRANTY, ALL SOFTWARE PROVIDED BY ZEBRA IS PROVIDED “AS IS” AND ON AN “AS AVAILABLE” BASIS, WITHOUT WARRANTIES OF ANY KIND FROM ZEBRA, EITHER EXPRESS OR IMPLIED. TO THE FULLEST EXTENT POSSIBLE PURSUANT TO APPLICABLE LAW, ZEBRA DISCLAIMS ALL WARRANTIES EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, SATISFACTORY QUALITY OR WORKMANLIKE EFFORT, FITNESS FOR A PARTICULAR PURPOSE, RELIABILITY OR AVAILABILITY, ACCURACY, LACK OF VIRUSES, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR OTHER VIOLATION OF RIGHTS. ZEBRA DOES NOT WARRANT THAT THE OPERATION OF THE SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE. TO THE EXTENT THAT THE SOFTWARE COVERED BY THIS EULA INCLUDES EMULATION LIBRARIES, SUCH EMULATION LIBRARIES DO NOT WORK 100% CORRECTLY OR COVER 100% OF THE FUNCTIONALITY BEING EMULATED, ARE OFFERED “AS IS” AND WITH ALL FAULTS, AND ALL THE DISCLAIMERS AND LIMITATIONS CONTAINED IN THIS PARAGRAPH AND THIS EULA APPLY TO SUCH EMULATION LIBRARIES. SOME JURISDICTIONS DO NOT ALLOW EXCLUSIONS OR LIMITATIONS OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSIONS OR LIMITATIONS MAY NOT APPLY TO LICENSEE. NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY LICENSEE FROM ZEBRA OR ITS AFFILIATES SHALL BE DEEMED TO ALTER THIS DISCLAIMER BY ZEBRA OF WARRANTY REGARDING THE SOFTWARE, OR TO CREATE ANY WARRANTY OF ANY SORT FROM ZEBRA.

13.    THIRD-PARTY APPLICATIONS. Certain third-party applications may be included with or downloaded with this Software. Zebra makes no representations whatsoever about any of these applications. Since Zebra has no control over such applications, Licensee acknowledges and agrees that Zebra is not responsible for such applications. Licensee expressly acknowledges and agrees that use of third-party applications is at Licensee’s sole risk and that the entire risk of unsatisfactory quality, performance, accuracy and effort is with Licensee. Licensee agrees that Zebra shall not be responsible or liable, directly or indirectly, for any damage or loss, including but not limited to any damage to or loss of data, caused or alleged to be caused by, or in connection with, use of or reliance on any such third-party content, products, or services available on or through any such application. Licensee acknowledges and agrees that the use of any third-party application is governed by such third-party application provider's Terms of Use, License Agreement, Privacy Policy, or other such agreement and that any information or personal data Licensee provides, whether knowingly or unknowingly, to such third-party application provider, will be subject to such third-party application provider's privacy policy, if such a policy exists. ZEBRA DISCLAIMS ANY RESPONSIBILITY FOR ANY DISCLOSURE OF INFORMATION OR ANY OTHER PRACTICES OF ANY THIRD-PARTY APPLICATION PROVIDER. ZEBRA EXPRESSLY DISCLAIMS ANY WARRANTY REGARDING WHETHER LICENSEE’S PERSONAL INFORMATION IS CAPTURED BY ANY THIRD-
13

Exhibit 10.64

PARTY APPLICATION PROVIDER OR THE USE TO WHICH SUCH PERSONAL INFORMATION MAY BE PUT BY SUCH THIRD-PARTY APPLICATION PROVIDER.

14.    LIMITATION OF LIABILITY. ZEBRA WILL NOT BE LIABLE FOR ANY DAMAGES OF ANY KIND ARISING OUT OF OR RELATING TO THE USE OR THE INABILITY TO USE THE SOFTWARE OR ANY THIRD-PARTY APPLICATION, ITS CONTENT OR FUNCTIONALITY, INCLUDING BUT NOT LIMITED TO DAMAGES CAUSED BY OR RELATED TO ERRORS, OMISSIONS, INTERRUPTIONS, DEFECTS, DELAY IN OPERATION OR TRANSMISSION, COMPUTER VIRUS, FAILURE TO CONNECT, NETWORK CHARGES, IN-APP PURCHASES, AND ALL OTHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES EVEN IF ZEBRA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE EXCLUSIONS OR LIMITATIONS MAY NOT APPLY TO LICENSEE. NOTWITHSTANDING THE FOREGOING, ZEBRA’S TOTAL LIABILITY TO LICENSEE FOR ALL LOSSES, DAMAGES, CAUSES OF ACTION, INCLUDING BUT NOT LIMITED TO THOSE BASED ON CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF LICENSEE’S OF THE SOFTWARE OR THIRD-PARTY APPLICATIONS, OR ANY OTHER PROVISION OF THIS EULA, SHALL NOT EXCEED THE FAIR MARKET VALUE OF THE SOFTWARE LICENSE OR AMOUNT PURCHASER PAID SPECIFICALLY FOR THE SOFTWARE LICENSE. THE FOREGOING LIMITATIONS, EXCLUSIONS, AND DISCLAIMERS (INCLUDING SECTIONS 11, 12, 13, 14 AND 18) SHALL APPLY TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EVEN IF ANY REMEDY FAILS ITS ESSENTIAL PURPOSE.

15.    INJUNCTIVE RELIEF. Licensee acknowledges that, in the event Licensee breaches any provision of this EULA, Zebra will not have an adequate remedy in money or damages. Zebra shall therefore be entitled to seek to obtain an injunction against such breach from any court of competent jurisdiction immediately upon request without posting bond. Zebra's right to obtain injunctive relief shall not limit its right to seek further remedies.

16.    MODIFICATION. No modification of this EULA shall be binding unless it is in writing and is signed by an authorized representative of the party against whom enforcement of the modification is sought. Continued usage of the Software shall, following modification to the updated EULA, constitute consent to be bound by the updated terms.

17.    U.S. GOVERNMENT END USERS RESTRICTED RIGHTS. This provision only applies to U.S. Government end users. The Software is a “commercial item” as that term is defined at 48 C.F.R. Part 2.101, consisting of “commercial computer software” and “computer software documentation” as such terms are defined in 48 C.F.R. Part 252.227 - 7014(a)(1) and 48 C.F.R. Part 252.227-7014(a)(5), and used in 48 C.F.R. Part 12.212 and 48 C.F.R. Part 227.7202, as applicable. Consistent with 48 C.F.R. Part 12.212, 48 C.F.R. Part 252.227-7015, 48 C.F.R. Part 227.7202-1 through 227.7202-4, 48 C.F.R. Part 52.227-19, and other relevant sections of the Code of Federal Regulations, as applicable, the Software is distributed and licensed to U.S. Government end users (a) only as a commercial item, and (b) with only those rights as are granted to all other end users pursuant to the terms and conditions contained herein.

18.    APPLICABLE LAW. This EULA is governed by the laws of the state of Illinois, without regard to its conflict of law provisions. This EULA shall not be governed by the UN Convention on Contracts for the International Sale of Goods, the application of which is expressly excluded.

------------------------
Schedule C: Zebra OneCare® Essential Service Description Document

Available here:
https://partnerportal.zebra.com/PartnerPortal/product_services/services/Zebra_OneCare_Support_Services_reso.aspx
14

Exhibit 10.64

Exhibit B - Rental Services Form (to be submitted to Zebra for each transaction)

						
	

AGREEMENT (the “Agreement”)
	Rental Services Agreement - North Am
sold to the Reseller named herein (through the named Distributor for the Reseller to resell Rental Services to End-User

	Agreement Effective Date (“Effect
Date”)
	May 6, 2021
	

Zebra Technologies International, LLC (“Zebra”)
	Zebra Technologies International, LLC 3 Overlook Point, Lincolnshire IL 60069 
Attn: Service Contracts Admin
a.All NA Distributors, send to: cs.nadisti@zebra.com
b.All other US End Users, send to: cs.northamerica.com
c.All other Canada End Users, send to: cs.canada@zebra.com

Notices to Zebra: Include cc: Zebra Law Department-NKQ674@zebra.com

	

Distributor’s Full Legal Name and Registered Address (if applicable due to the Authorized Reseller purchasing from a Distributor)
	
	

Authorized Reseller Full Legal Name and Registered Address
	
	

End User’s Full Legal Name
	
	End User Tax Identification Number	
	End User Legal Address & Contact
Street Address, City, State, Zip 
Contact Name, Phone, Email
	
	End User Bill-To Address & Contact Street Address, City, State, Zip 
Contact Name, Phone, Email
	
	

Delivery Location
	
	End User Equipment Location (where Equipment will be used)
Street Address, City, State, Zip
	
	Equipment List (Rental Services Part Number and Description)
(Minimum Quantity: 26
	

15

Exhibit 10.64

						
	Initial Rental Term	[Minimum of three (3) months]
	Rental Charges for Initial Rental Term (USD) payable by Distributor to Zebra	

						
		
		

16Exhibit 4.1

 

Execution Version

 

SECURITIES PURCHASE AGREEMENT

 

This Securities
Purchase Agreement (this “Agreement”), dated as of August 19, 2021, is made by and among Palisade
Bio, Inc., a Delaware corporation (the “Company”), and the Purchaser listed on Exhibit A
hereto, together with its permitted transferees (each, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A. The Company and the Purchaser are executing
and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities
Act.

 

B. The Purchaser desires to purchase and the
Company desires to sell, upon the terms and conditions stated in this Agreement, 1,509,896 shares of Common Stock and Warrants to purchase
up to 377,474 shares of Common Stock of the Company, as described below.

 

C. The capitalized terms used herein and not
otherwise defined have the meanings given them in Article 7.

 

AGREEMENT

 

In consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company
and the Purchaser hereby agree as follows:

 

Article 1

PURCHASE AND SALE OF SECURITIES

 

1.1              
Purchase and Sale of Securities. At the Closing, the Company will issue and sell to the Purchaser, and the Purchaser will purchase
from the Company the number of shares of Common Stock (the “Shares”) set forth opposite the Purchaser’s
name on Exhibit A hereto, at a purchase price of $3.45 (the “Share Purchase Price”). For every four
(4) Shares, the Company shall issue a warrant in substantially the form of Exhibit B hereto (the “Warrants”),
which shall be exercisable for one (1) share of Common Stock at an exercise price of $3.45. The Shares and the Warrants are referred
to collectively as the “Securities.” The Purchaser’s aggregate purchase price for the Shares purchased
at the Closing by the Purchaser hereunder is referred to as the “Aggregate Purchase Price.”

 

1.2              
Payment. At the Closing, the Purchaser will pay the Aggregate Purchase Price set forth opposite its name on Exhibit A hereto
by wire transfer of immediately available funds in accordance with wire instructions provided by the Company to the Purchaser prior to
the Closing. The Company will instruct its transfer agent to credit the Purchaser the number of Shares set forth on Exhibit A and
will deliver the applicable Warrants to the Purchaser against delivery of the Aggregate Purchase Price promptly following the Closing
Date.

 

1.3              
Closing Date. The closing of the transaction contemplated by this Agreement will take place on August 19, 2021 (the “Closing
Date”) and the closing (the “Closing”) will be held remotely via the exchange of documents and
signatures or at such other time and place as shall be agreed upon by the Company and the Purchaser.

 

    1

     

    

 

Article 2

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as specifically contemplated by this Agreement
or as disclosed in the SEC Documents, the Company hereby represents and warrants to the Purchasers that:

 

2.1              
Organization and Qualification. The Company is duly incorporated, validly existing and in good standing under the laws of the State
of Delaware, with full corporate power and authority to conduct its business as currently conducted as disclosed in the SEC Documents.
The Company is duly qualified to do business and is in good standing in every jurisdiction in which the nature of the business conducted
by it or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not reasonably be expected to have a Material Adverse Effect.

 

2.2              
Authorization; Enforcement. The Company has all requisite corporate power and authority to enter into and to perform its obligations
under this Agreement, to consummate the transactions contemplated hereby and to issue the Securities in accordance with the terms hereof.
The execution, delivery and performance of this Agreement by the Company and the consummation by it of the transactions contemplated hereby
(including the issuance of the Securities) have been duly authorized by the Company’s Board of Directors and no further consent
or authorization of the Company, its Board of Directors, or its stockholders is required. This Agreement has been duly executed by the
Company and constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of
equity and except as rights to indemnity and contribution may be limited by state or federal securities laws or public policy underlying
such laws.

 

2.3              
Capitalization. The authorized capital stock of the Company consists of 300,000,000 shares of Common Stock, $0.01 par value per share,
and 7,000,000 shares of Preferred Stock, $0.01 par value per share. As of the date hereof, 11,398,698 shares of Common Stock were issued
and outstanding and 200,000 shares of Preferred Stock were issued or outstanding. All of the issued and outstanding shares of Common Stock
have been duly authorized, validly issued, fully paid, and nonassessable. Equity awards representing an aggregate of 802,455 shares of
Common Stock were outstanding as of the date hereof. The Company does not have outstanding any options to purchase, or any preemptive
rights or other rights to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments
to issue or sell, shares of its capital stock or any such options, rights, convertible securities or obligations other than awards and
purchase rights granted under the Company’s stock option plans and its employee stock purchase plan and warrants to purchase Common
Stock described in the SEC Documents. The Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate
of Incorporation”), as in effect on the date hereof, and the Company’s Amended and Restated Bylaws (the “Bylaws”)
as in effect on the date hereof, are each filed as exhibits to the SEC Documents.

 

2.4              
Issuance of Securities. The Shares and the shares of Common Stock issuable upon exercise of the Warrants (the “Warrant
Shares”) are duly authorized and, upon issuance in accordance with the terms of this Agreement (and, in the case of the
Warrant Shares, the Warrants), will be validly issued, fully paid and non-assessable and will not be subject to preemptive rights or other
similar rights of stockholders of the Company, taxes, liens, and charges or other encumbrances with respect to the issuance thereof. As
of the date hereof, a number of shares of Common Stock have been duly authorized and reserved for issuance which equals the maximum number
of shares of Common Stock as shall from time to time be necessary to effect the exercise in full of the Warrant (as adjusted for stock
dividends, recapitalizations, reorganizations, reclassifications, combinations, reverse stock splits, or other similar events relating
to the Common Stock occurring after the date hereof).

 

    2

     

    

 

2.5              
No Conflicts; Government Consents and Permits.

 

(a)               
The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated
hereby (including the issuance of the Securities) will not (i) conflict with or result in a violation of any provision of its Certificate
of Incorporation or Bylaws or, assuming the accuracy of the Purchaser’s representations and warranties contained herein, require
the approval of the Company’s stockholders, (ii) violate or conflict with, or result in a breach of any provision of, or constitute
a default under, any agreement, indenture, or instrument to which the Company is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including United States federal and state securities laws and regulations and regulations of any
self-regulatory organizations to which the Company or its securities are subject) applicable to the Company, except in the case of clauses
(ii) and (iii) only, for such conflicts, breaches, defaults, and violations as would not reasonably be expected to have a Material Adverse
Effect.

 

(b)              
The Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or
governmental agency or any regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations
under this Agreement in accordance with the terms hereof, or to issue and sell the Securities in accordance with the terms hereof other
than such as have been made or obtained, and except for the registration of the Shares and the Warrant Shares under the Securities Act
pursuant to Section 6 hereof, any filings required to be made under federal or state securities laws after the date hereof, and any required
filings or notifications regarding the issuance or listing of additional shares with Nasdaq.

 

(c)               
The Company has all franchises, permits, licenses, and any similar authority necessary for the conduct of its business as now being
conducted by it and as currently proposed to be conducted as disclosed in the SEC Documents, except for such franchise, permit, license
or similar authority, the lack of which would not reasonably be expected to have a Material Adverse Effect. The Company has not received
any actual notice of any proceeding relating to revocation or modification of any such franchise, permit, license, or similar authority
except where such revocation or modification would not reasonably be expected to have a Material Adverse Effect.

 

2.6              
SEC Documents, Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC since April 28, 2021, pursuant to the reporting requirements of the Exchange Act (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than
exhibits) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). The
Company is eligible to register its Common Stock for resale using Form S-3 promulgated under the Securities Act. The Company has delivered
to each Purchaser, or each Purchaser has had access to, true and complete copies of the SEC Documents. The Company is not, and never has
been, a “shell company” (as defined in Rule 12b-2 under the Exchange Act). As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the Exchange Act or the Securities Act, as the case may be, and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective
dates, the Financial Statements and the related notes complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto. The Financial Statements and the related notes have been prepared
in accordance with accounting principles generally accepted in the United States, consistently applied, during the periods involved (except
(a) as may be otherwise indicated in the Financial Statements or the notes thereto, or (b) in the case of unaudited interim statements,
to the extent they may not include footnotes, may be condensed or summary statements or may conform to the SEC’s rules and instructions
for Quarterly Reports on Form 10-Q) and fairly present in all material respects the consolidated financial position of the Company as
of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal and recurring year-end audit adjustments). All material agreements that were required to be filed as exhibits
to Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
under Item 601(b)(10) of Regulation S-K (collectively, the “Material Agreements”) to which the Company or any
Subsidiary of the Company is a party, or the property or assets of the Company or any Subsidiary of the Company are subject, have been
filed as exhibits to the SEC Documents. All Material Agreements are valid and enforceable against the Company in accordance with their
respective terms, except (i) as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or moratorium or similar
laws affecting creditors’ and contracting parties’ rights generally, and (ii) as enforceability may be subject to general
principles of equity and except as rights to indemnity and contribution may be limited by state or federal securities laws or public policy
underlying such laws. The Company is not in breach of or default under any of the Material Agreements, and to the Company’s knowledge,
no other party to a Material Agreement is in breach of or default under such Material Agreement, except in each case, for such breaches
or defaults as would not reasonably be expected to have a Material Adverse Effect. The Company has not received a notice of termination
nor is the Company otherwise aware of any threats to terminate any of the Material Agreements.

 

    3

     

    

 

2.7              
Absence of Litigation. As of the date hereof, there is no action, suit, proceeding or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to the Company’s knowledge, threatened against the Company
that if determined adversely to the Company would reasonably be expected to have a Material Adverse Effect or would reasonably be expected
to impair the ability of the Company to perform its obligations under this Agreement. To the knowledge of the Company, there is not pending
or contemplated any investigation by the SEC of the Company or any director or executive officer of the Company. The Company has not received
any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the Exchange Act or
the Securities Act and, to the Company’s knowledge, the SEC has not issued any such order.

 

2.8              
Intellectual Property Rights. The Company owns or possesses, or has a reasonable basis on which it believes it can obtain on reasonable
terms, licenses or sufficient rights to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks,
trademark applications, service marks, service names, trade names and copyrights necessary to enable it to conduct its business as conducted
as of the date hereof and, to its knowledge, as proposed to be conducted as described in the SEC Documents. As used in this Agreement,
the “Intellectual Property” means all patents, patent applications, patent rights, inventions, know-how, trade
secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights necessary to enable the Company
to conduct its business as conducted as of the date hereof and, to its knowledge, as proposed to be conducted as described in the SEC
Documents. To the Company’s knowledge, the Company has not infringed the intellectual property rights of third parties and no third
party, to the Company’s knowledge, is infringing the Intellectual Property, in each case, which could reasonably be expected to
result in a Material Adverse Effect. There are no material options, licenses or agreements relating to the Intellectual Property that
are not described in the SEC Documents, nor is the Company bound by or a party to any material options, licenses or agreements relating
to the patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks,
service names, trade names or copyrights of any other Person that are not described in the SEC Documents. There is no material claim or
action or proceeding pending or, to the Company’s knowledge, threatened that challenges any of the rights of the Company in or to,
or otherwise with respect to, any Intellectual Property.

 

2.9              
Investment Company. The Company is not and, after giving effect to the offering and sale of the Securities, will not be an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
The Company has no commitments or plans with respect to operating its business that would cause it to become subject to the Investment
Company Act.

 

2.10          
No Material Adverse Change. Since April 28, 2021, except as described or referred to in the SEC Documents, there has not been any
change in the assets, business, properties, financial condition or results of operations of the Company that would reasonably be expected
to have a Material Adverse Effect. Since April 28, 2021, (a) there has not been any dividend or distribution of any kind declared, set
aside for payment, paid or made by the Company on any class of capital stock, (b) the Company has not sustained any material loss or interference
with the Company’s business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, and (c) the
Company has not incurred any material liabilities except in the ordinary course of business.

 

    4

     

    

 

2.11            
The Nasdaq Capital Market. The Common Stock is listed on The Nasdaq Capital Market, and to the
Company’s knowledge, there are no proceedings to revoke or suspend such listing. The Company is in material compliance with the
requirements of Nasdaq for continued listing of the Common Stock thereon and any other Nasdaq listing and maintenance requirements.

 

2.12          
Insurance. The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts
as the Company believes are prudent and customary for a company (a) in the businesses and location in which the Company is engaged,
(b) with the resources of the Company, and (c) at a similar stage of development as the Company. The Company has not received any
written notice that the Company will not be able to renew its existing insurance coverage as and when such coverage expires. The Company
believes it will be able to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business.

 

2.13          
Foreign Corrupt Practices. Since January 1, 2018, neither the Company, nor to the Company’s knowledge, any director, officer,
agent, employee or other Person acting on behalf of the Company has, in the course of its actions for, or on behalf of, the Company (a)
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity,
(b) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (c)
violated or is in violation of in any material respect any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or
(d) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

2.14          
Private Placement. Neither the Company, nor to the Company’s knowledge any Person acting on its behalf, has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under any circumstances that would require registration
of the Securities under the Securities Act. Assuming the accuracy of the representations and warranties of the Purchaser contained in
Article 3 hereof, the issuance of the Securities and the Warrant Shares are exempt from registration under the Securities Act.

 

2.15          
No Registration Rights. No Person has the right to prohibit the Company from filing a Registration Statement for the Securities except
for rights which have been properly waived. The granting and performance of the registration rights under this Agreement will not violate
or conflict with, or result in a breach of any provision of, or constitute a default under, any agreement, indenture, or instrument to
which the Company is a party. The Company is eligible to register the Securities for resale by the Purchaser using Form S-3 promulgated
under the Securities Act.

 

2.16          
Taxes. The Company has filed (or has obtained an extension of time within which to file) all necessary federal, state and foreign
income and franchise tax returns and has paid all taxes shown as due on such tax returns, except where the failure to so file or the failure
to so pay would not reasonably be expected to have a Material Adverse Effect.

 

2.17          
Real and Personal Property. The Company has good and marketable title to, or has valid rights to lease or otherwise use, all items
of real and personal property that are material to the business of the Company free and clear of all liens, encumbrances, claims and defects
and imperfections of title except those that (a) do not materially interfere with the use of such property by the Company or (b) would
not reasonably be expected to have a Material Adverse Effect.

 

    5

     

    

 

2.18          
No Manipulation of Stock. The Company has not taken, directly or indirectly, any action designed to stabilize or manipulate the price
of the Common Stock or any security of the Company to facilitate the sale or resale of any of the Shares.

 

2.19          
Related Party Transactions. Except with respect to the transactions (a) that are not required to be disclosed and (b) contemplated
hereby to the extent an affiliate of any director purchases Securities hereunder, all transactions that have occurred between or among
the Company, on the one hand, and any of its officers or directors, or any affiliate or affiliates of any such officer or director, on
the other hand, prior to the date hereof have been disclosed in the SEC Documents to the extent required to be disclosed by the Securities
Act or Exchange Act, as the case may be.

 

Article 3

PURCHASER’S REPRESENTATIONS AND WARRANTIES

 

Each Purchaser represents and warrants to the Company, severally and not
jointly, with respect to itself and its purchase hereunder, that:

 

3.1              
Investment Purpose. The Purchaser is purchasing the Securities for its own account and not with a present view toward the public sale
or distribution thereof in violation of the Securities Act and has no intention of selling or distributing any of such Securities or any
arrangement or understanding with any other Persons regarding the sale or distribution of such Securities except in accordance with the
provisions of Article 6 and except as would not result in a violation of the Securities Act. The Purchaser will not, directly or indirectly,
offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of)
any of the Securities except in accordance with the provisions of Article 6 or pursuant to and in accordance with the Securities Act.
By making the representations herein, such Purchaser does not agree to hold any of the Securities for any minimum or other specific term
and reserves the right to assign, transfer or otherwise dispose of any of the Securities at any time in accordance with or pursuant to
a registration statement or a valid exemption under the Securities Act.

 

3.2              
Information. The Purchaser has been given access to all relevant materials relating to the business, finances and operations of the
Company necessary to make an investment decision, and materials relating to the offer and sale of the Securities, that have been requested
by the Purchaser, including, without limitation, the SEC Documents, and the Purchaser has had the opportunity to review the SEC Documents.
The Purchaser has been afforded the opportunity to ask questions of the Company. Neither the Purchaser’s review or inquiries, nor
any other due diligence investigations conducted by the Purchaser or its advisors, if any, or its representatives shall modify, amend
or affect the Purchaser’s right to rely on the Company’s representations and warranties contained herein or in the Warrants.

 

3.3              
Acknowledgement of Risk.

 

(a)               
The Purchaser acknowledges and understands that its investment in the Securities involves a significant degree of risk, including,
without limitation, (i) the Company remains a clinical stage business and requires substantial funds in addition to the proceeds from
the sale of the Securities, (ii) an investment in the Company is speculative, and only Purchasers who can afford the loss of their entire
investment should consider investing in the Company and the Securities, (iii) the Purchaser may not be able to liquidate its investment,
(iv) transferability of the Securities is extremely limited, (v) in the event of a disposition of the Securities, the Purchaser could
sustain the loss of its entire investment, and (vi) the Company has not paid any dividends on its Common Stock since inception and does
not anticipate the payment of dividends in the foreseeable future. Such risks are more fully set forth in the SEC Documents;

 

    6

     

    

 

(b)              
The Purchaser is able to bear the economic risk of holding the Securities for an indefinite period, and has knowledge and experience
in financial and business matters such that it is capable of evaluating the risks of the investment in the Securities; and

 

(c)               
The Purchaser has, in connection with the Purchaser’s decision to purchase Securities, not relied upon any representations or
other information (whether oral or written) other than as set forth in the representations and warranties of the Company contained herein
and the information disclosed in the SEC Documents, and the Purchaser has, with respect to all matters relating to this Agreement and
the offer and sale of the Securities, relied solely upon the advice of such Purchaser’s own counsel and has not relied upon or consulted
any counsel to the Company.

 

3.4              
Governmental Review. The Purchaser understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities or an investment therein.

 

3.5              
Transfer or Resale. The Purchaser understands that:

 

(a)               
the Securities have not been and are not being registered under the Securities Act (other than as contemplated in Article 6) or any
applicable state securities laws and, consequently, the Purchaser may have to bear the risk of owning the Securities for an indefinite
period of time because the Securities may not be transferred unless (i) the resale of the Securities is registered pursuant to an effective
registration statement under the Securities Act, as contemplated in Article 6, (ii) the Purchaser has delivered to the Company an
opinion of counsel (in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the
Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, or (iii) the Securities
are sold or transferred pursuant to Rule 144;

 

(b)              
any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and, if Rule 144
is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under
the Securities Act or the rules and regulations of the SEC thereunder; and

 

(c)               
except as set forth in Article 6, neither the Company nor any other Person is under any obligation to register the resale of the Securities
under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder in connection
with the resale of the Securities.

 

3.6              
Legends.

 

(a)               
Without limiting the Company’s registration obligations in Section 6.1, the Purchaser understands that any certificates representing
the Securities will bear a restrictive legend in substantially the following form, in addition to any other legend required by applicable
state securities laws or as may be appropriate to legend any restrictions on transfer set forth in this Agreement (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT THAT SUCH OPINION IS REQUIRED PURSUANT TO THAT CERTAIN SECURITIES
PURCHASE AGREEMENT UNDER WHICH THE SECURITIES WERE ISSUED.

 

    7

     

    

 

(b)              
To the extent the resale of the Shares or Warrant Shares is registered under the Securities Act pursuant to an effective Registration
Statement, the Company agrees to promptly (i) authorize the removal of the legend set forth in Section 3.6(a) and any other legend not
required by applicable law from such Shares or Warrant Shares and (ii) cause its transfer agent to issue such Shares or Warrant Shares
without such legends to the holders thereof by electronic delivery at the applicable balance accounts of the holders or their designees
at the Depository Trust Company (“DTC”) within two Business Days after surrender of any stock certificates evidencing
such Shares or Warrant Shares or after exercise of the Warrants, as applicable. With respect to any Shares or Warrant Shares for which
restrictive legends are removed pursuant to this Section 3.6(b), the holder thereof agrees to only sell such Shares or Warrant Shares
when and as permitted by the effective Registration Statement covering such resale or pursuant to Rule 144 and in accordance with applicable
securities laws and regulations.

 

(c)               
The Purchaser may request that the Company remove, and the Company agrees to authorize the removal of, any legend from the Shares
or Warrant Shares, and shall issue any Warrant Shares upon exercise of any Warrants free of any restrictive or other legend (i) following
any sale of such Shares or Warrant Shares pursuant to Rule 144, or (ii) if such Shares or Warrant Shares are eligible for sale under Rule
144 following the expiration of the six-month holding requirement under subparagraphs (b)(1)(i) and (d) thereof (giving effect to any
tacking in the case of a proper cashless exercise of the Warrants) and the Purchaser is not an affiliate of the Company, in each case
following receipt from the Purchaser of an appropriate certification to such effect. Following the time a legend is no longer required
for the Shares or Warrant Shares under this Section 3.6(c), the Company will, no later than two Business Days following the delivery by
a Purchaser to the Company or the Company’s transfer agent of a legended certificate representing such securities and appropriate
certifications that the applicable requirements have been satisfied, deliver or cause to be delivered to such Purchaser a certificate
representing such securities that is free from all restrictive and other legends or, at the election of such Purchaser, deliver such securities
by electronic delivery to such Purchaser’s or its designee’s balance account at DTC (not subject to any restrictive or other
legends).

 

3.7              
Authorization; Enforcement. The Purchaser has the requisite power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. The Purchaser has taken all necessary action to authorize the execution, delivery and performance of
this Agreement. Upon the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation of the
Purchaser enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may
be subject to general principles of equity and except as rights to indemnity and contribution may be limited by state or federal securities
laws or public policy underlying such laws.

 

3.8              
Residency. Unless the Purchaser has otherwise notified the Company in writing, the Purchaser is a resident of the jurisdiction set
forth immediately below such Purchaser’s name on the signature pages hereto.

 

3.9              
Purchaser Status. At the time the Purchaser was offered Securities, it was, and at the date hereof is, an “accredited investor”
as defined in Rule 501(a) of the Securities Act. Neither the Purchaser nor any of its Rule 506(d) Related Parties is a “bad
actor” within the meaning of Rule 506(d) of the Securities Act. For purposes of this Agreement, a “Rule 506(d)
Related Party” shall mean a person or entity covered by the “Bad Actor disqualification” provision of Rule 506(d)
of the Securities Act.

 

    8

     

    

 

3.10          
Foreign Purchasers. If any Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code
of 1986, as amended) or is a U.S. subsidiary or affiliate of a foreign parent company (a “Foreign Purchaser”),
each such Foreign Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in
connection with any invitation to subscribe for the Securities or any use of this Agreement, including (a) the legal requirements within
its jurisdiction for the purchase of the Securities, (b) any foreign exchange restrictions applicable to such purchase, (c) any government
or other consents that may need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the
purchase, holding, redemption, sale or transfer of the Securities. Each Foreign Purchaser further represents that either (i) it does not
now, nor will it after the Closing, hold 10% or greater, directly or indirectly, of the voting interest in the Company or (ii) if it does
or will, such Foreign Purchaser shall notify the Company and shall provide such information as the Company may reasonably request to comply
with state, federal, or local regulations. The Company’s offer and sale and the Foreign Purchaser’s subscription and
payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Foreign
Purchaser’s jurisdiction.

 

3.11          
Purchaser Ownership. Assuming that the Company’s representations in Section 2.3 with respect to the number of outstanding shares
of Common Stock are accurate as of the Closing, neither the Purchaser nor any of its affiliates will beneficially own more than 19.9%
of the Common Stock immediately following the Closing. For purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act.

 

3.12          
General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

 

Article 4

COVENANTS

 

4.1              
Reporting Status. The Common Stock is registered under Section 12 of the Exchange Act. During the Registration Period, the Company
will use reasonable best efforts to timely file all documents with the SEC, and the Company will not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination.

 

4.2              
Expenses. The Company and each Purchaser is liable for, and will pay, its own expenses incurred in connection with the negotiation,
preparation, execution and delivery of this Agreement, including, without limitation, attorneys’ and consultants’ fees and
expenses.

 

4.3              
Financial Information. The financial statements of the Company to be included in any documents filed with the SEC will be prepared
in accordance with accounting principles generally accepted in the United States, consistently applied (except (a) as may be otherwise
indicated in such financial statements or the notes thereto, or (b) in the case of unaudited interim statements, to the extent they may
not include footnotes, may be condensed or summary statements or may conform to the SEC’s rules and instructions for Quarterly Reports
on Form 10-Q), and will fairly present in all material respects the consolidated financial position of the Company and consolidated results
of its operations and cash flows as of, and for the periods covered by, such financial statements (subject, in the case of unaudited statements,
to normal and recurring year-end audit adjustments).

 

4.4              
Securities Laws Disclosure. On or before 9:00 a.m., New York local time, on the Business Day following the date hereof, the Company
shall issue a press release and/or Current Report on Form 8-K announcing the signing of this Agreement and describing the material terms
of the transactions contemplated by this Agreement.

 

    9

     

    

 

4.5              
Sales by Purchasers. Each Purchaser will sell any Securities and, if applicable, any Warrant Shares held by it in compliance with
applicable prospectus delivery requirements, if any, or otherwise in compliance with the requirements for an exemption from registration
under the Securities Act and the rules and regulations promulgated thereunder. No Purchaser will make any sale, transfer or other disposition
of the Securities or, if applicable, Warrant Shares in violation of federal or state securities laws.

 

4.6              
Reservation of Common Stock. The Company shall reserve and keep available at all times during which the Warrants remain exercisable,
free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue the Warrant
Shares (as adjusted for stock dividends, recapitalizations, reorganizations, reclassifications, combinations, reverse stock splits, or
other similar events relating to the Common Stock occurring after the date hereof) upon exercise of the Warrants in accordance with the
terms thereof.

 

Article 5

CONDITIONS TO CLOSING

 

5.1              
Conditions to Obligations of the Company. The Company’s obligation to complete the purchase and sale of the Securities to be
purchased and sold at the Closing and deliver such Securities to the Purchaser is subject to the waiver by the Company or fulfillment
as of the Closing Date of the following conditions:

 

(a)               
Receipt of Funds. The Company shall have received immediately available funds in the full amount of the Aggregate Purchase Price for
the Securities being purchased hereunder as set forth opposite such Purchaser’s name on Exhibit A hereto.

 

(b)              
Representations and Warranties. The representations and warranties made by the Purchaser in Article 3 shall be true and correct in
all respects as of the Closing Date.

 

(c)               
Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the Purchasers on or prior to the
Closing Date shall have been performed or complied with in all material respects.

 

(d)              
Blue Sky. The Company shall have obtained all necessary blue sky law permits and qualifications, or secured exemptions therefrom,
required by any state for the offer and sale of the Securities.

 

(e)               
Nasdaq Qualification. The Shares to be issued shall be duly authorized for listing by Nasdaq, subject to official notice of issuance,
to the extent required by the rules of Nasdaq.

 

(f)                
Absence of Litigation. No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter,
prevent or materially delay the Closing, shall have been instituted or be pending before any court, arbitrator, governmental body, agency
or official.

 

(g)               
No Governmental Prohibition. The sale of the Securities by the Company shall not be prohibited by any law or governmental order or
regulation.

 

5.2              
Conditions to Purchaser’s Obligations at the Closing. The Purchaser’s obligation to complete the purchase and sale of
the Securities is subject to the waiver by such Purchaser or fulfillment as of the Closing Date of the following conditions:

 

(a)               
Representations and Warranties. The representations and warranties made by the Company in Article 2 shall be true and correct in all
material respects as of the Closing Date.

 

    10

     

    

 

(b)              
Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the
Closing Date shall have been performed or complied with in all material respects.

 

(c)               
Blue Sky. The Company shall have obtained all necessary blue sky law permits and qualifications, or secured exemptions therefrom,
required by any state or foreign or other jurisdiction for the offer and sale of the Securities.

 

(d)              
Transfer Agent Instructions. The Company shall have delivered to its transfer agent irrevocable instructions to issue to such Purchaser
or in such nominee name(s) as designated by such Purchaser in writing such number of Shares set forth opposite such Purchaser’s
name on Exhibit A hereto and the Warrants set forth opposite such Purchaser’s name on Exhibit A hereto.

 

(e)               
Nasdaq Qualification. The Shares shall be duly authorized for listing by Nasdaq, subject to official notice of issuance, to the extent
required by the rules of Nasdaq.

 

(f)                
Absence of Litigation. No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter,
prevent or materially delay the Closing, shall have been instituted or be pending before any court, arbitrator, governmental body, agency
or official.

 

(g)               
No Governmental Prohibition. The sale of the Securities by the Company shall not be prohibited by any law or governmental order or
regulation.

 

(h)               
Company Officer’s Certificate. An executive officer of the Company shall have provided
a certificate to the Purchaser, in form and substance reasonably satisfactory to the Purchaser, certifying that the conditions set forth
in Sections 5.1(d) through (g) above have been satisfied. 

 

Article 6

REGISTRATION RIGHTS

 

6.1              
On or before the date that is 60 days after the Closing Date (the “Filing Date”), the Company shall prepare
and file a registration statement covering the resale of the Registrable Securities with the SEC for an offering to be made on a continuous
basis pursuant to Rule 415, or if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of
distribution of Registrable Securities as the Holders of a majority of the Registrable Securities may reasonably specify (the “Initial
Registration Statement”). The Initial Registration Statement shall be on Form S-3 (except if the Company is ineligible to
register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form) and
the Company shall effect the registration, qualifications or compliances (including, without limitation, the execution of any required
undertaking to file post-effective amendments, appropriate qualifications or exemptions under applicable blue sky or other state securities
laws and appropriate compliance with applicable securities laws, requirements or regulations) as promptly as possible after the filing
thereof, but in any event prior to the date which is 90 days in the event of no review by the SEC, or 110 days in the event of a review
by the SEC, after the Closing Date. Notwithstanding anything else herein to the contrary, the Company’s obligation to register the
Shares and the Warrant Shares shall continue at least until a Registration Statement or Registration Statements covering the resale of
all Shares and Warrant Shares held by Holders are or have become effective and shall not be canceled prior to the expiration of the applicable
Registration Period. In the event the SEC informs the Company that all of the Registrable Securities cannot, as a result of the application
of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (a) inform
each of the Holders thereof, (b) use its reasonable best efforts to file amendments to the Initial Registration Statement as required
by the SEC and/or (c) withdraw the Initial Registration Statement and file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the SEC,
on Form S-3 or, if the Company is ineligible to register for resale the Registrable Securities on Form S-3, such other form available
to register for resale the Registrable Securities as a secondary offering; provided, however, that prior to filing such amendment
or New Registration Statement, the Company shall be obligated to use its reasonable best efforts to advocate with the SEC for the registration
of all of the Registrable Securities. In the event the Company amends the Initial Registration Statement or files a New Registration Statement,
as the case may be, under clauses (b) or (c) above, the Company will use its best efforts to file with the SEC, as promptly as allowed
by the SEC, one or more registration statements on Form S-3 or, if the Company is ineligible to register for resale the Registrable Securities
on Form S-3, such other form available to register for resale those Registrable Securities that were not registered for resale on the
Initial Registration Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”).
Notwithstanding any other provision of this Agreement, if the SEC limits the number of Registrable Securities permitted to be registered
on a particular Registration Statement (and notwithstanding that the Company used diligent efforts to advocate with the SEC for the registration
of all or a greater number of Registrable Securities), any required cutback of Registrable Securities shall be applied to the Purchasers
pro rata in accordance with the number of such Registrable Securities sought to be included in such Registration Statement by reference
to the amount of Registrable Securities set forth opposite such Purchaser’s name on Exhibit A (and in the case of a subsequent
transfer, the initial Purchaser’s transferee) relative to the aggregate amount of all Registrable Securities.

 

    11

     

    

 

6.2              
All Registration Expenses incurred in connection with any registration, qualification, exemption or compliance pursuant to Section
6.1 shall be borne by the Company. All Selling Expenses relating to the sale of securities registered by or on behalf of any Holder shall
be borne by such Holder.

 

6.3              
In the case of the registration, qualification, exemption or compliance effected by the Company pursuant to this Agreement, the Company
shall, upon reasonable request, inform each Holder as to the status of such registration, qualification, exemption and compliance. At
its expense the Company shall:

 

(a)               
except for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a Registration Statement,
use its reasonable best efforts to keep each such registration, and any qualification, exemption or compliance under state securities
laws which the Company determines to obtain, continuously effective with respect to a Holder, and to keep the applicable Registration
Statement free of any material misstatements or omissions, until the earlier of the following: (i) the fifth anniversary of the effective
date of the Initial Registration Statement, (ii) the date all Shares and, if applicable, Warrant Shares, held by such Holder (other than
a Holder that would beneficially own 10% or more of the outstanding shares of Common Stock assuming all Warrant Shares held by such Holder
were outstanding) may be sold under Rule 144 without limitation or restriction within a three-month period or (iii) immediately prior
to the closing of a Change of Control. The period of time during which the Company is required hereunder to keep a Registration Statement
effective is referred to herein as the “Registration Period.”

 

(b)              
advise the Holders within five Business Days:

 

when a Registration Statement or any amendment thereto (other than an amendment
pursuant to a periodic or current report) has been filed with the SEC and when such Registration Statement or any post-effective amendment
thereto has become effective;

 

of any request by the SEC for amendments or supplements to any Registration
Statement or the prospectus included therein or for additional information;

 

of the issuance by the SEC of any stop order suspending the effectiveness
of any Registration Statement or the initiation of any proceedings for such purpose; and

 

of the receipt by the Company of any notification with respect to the suspension
of the qualification of the Registrable Securities included therein for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose.

 

    12

     

    

 

(c)               
use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement as
soon as reasonably practicable;

 

(d)              
if a Holder so requests in writing, promptly furnish to each such Holder, without charge, at least one copy of each Registration Statement
and each post-effective amendment thereto, including financial statements and schedules, and, if explicitly requested, all exhibits in
the form filed with the SEC;

 

(e)               
during the Registration Period, if a Holder so requests in writing, deliver to each Holder, without charge, (i) one copy of the following
documents, other than those documents available via EDGAR: (A) its annual report to its stockholders, if any (which annual report
shall contain financial statements audited in accordance with generally accepted accounting principles in the United States of America
by a firm of certified public accountants of recognized standing), (B) if not included in substance in its annual report to stockholders,
its annual report on Form 10-K (or similar form), (C) its definitive proxy statement with respect to its annual meeting of stockholders,
(D) each of its quarterly reports to its stockholders, and, if not included in substance in its quarterly reports to stockholders, its
quarterly report on Form 10-Q (or similar form), and (E) a copy of each full Registration Statement (the foregoing, in each case, excluding
exhibits); and (ii) if explicitly requested, all exhibits excluded by the parenthetical to the immediately preceding clause (E);

 

(f)                
prior to any public offering of Registrable Securities pursuant to any Registration Statement, promptly take such actions as may be
necessary to register or qualify or obtain an exemption for offer and sale under the securities or blue sky laws of such United States
jurisdictions as any such Holders reasonably request in writing, provided that the Company shall not for any such purpose be required
to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to consent to general
service of process in any such jurisdiction, and do any and all other acts or things reasonably necessary or advisable to enable the offer
and sale in such jurisdictions of the Registrable Securities covered by any such Registration Statement;

 

(g)               
upon the occurrence of any event that requires the making of any changes in any Registration Statement or prospectus so that, as of
such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary
to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading,
except for such times as the Company is permitted hereunder to suspend the use of a prospectus forming part of a Registration Statement,
the Company shall use its best efforts to as soon as reasonably practicable prepare a post-effective amendment to such Registration Statement
or a supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers of the Registrable
Securities included therein, such prospectus will not include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(h)              
use its reasonable best efforts to cause all Registrable Securities to be listed on each securities exchange or market, if any, on
which the Common Stock has been listed;

 

(i)                
use its reasonable best efforts to take all other steps necessary to effect the registration of the Registrable Securities contemplated
hereby and to enable the Holders to sell Registrable Securities under Rule 144;

 

(j)                
provide to each Purchaser and its representatives, if requested, the opportunity to conduct a reasonable inquiry of the Company’s
financial and other records during normal business hours and make available its officers, directors and employees for questions regarding
information which such Purchaser may reasonably request in order to fulfill any due diligence obligation on its part; and

 

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(k)              
permit a single counsel for the Purchasers to review any Registration Statement and all amendments and supplements thereto (other
than supplements to a Registration Statement on Form S-1 solely for the purpose of incorporating other filings with the SEC into such
Registration Statement and other than an amendment to a Registration Statement on Form S-1 or Form S-3 for the purpose of converting such
Registration Statement into a Registration Statement on Form S-3), within two Business Days prior to the filing thereof with the SEC;

 

provided that, in the case of clauses (j) and (k) above, the Company
shall not be required (A) to delay the filing of any Registration Statement or any amendment or supplement thereto as a result of any
ongoing diligence inquiry by or on behalf of a Holder or to incorporate any comments to any Registration Statement or any amendment or
supplement thereto by or on behalf of a Holder if such inquiry or comments would require a delay in the filing of such Registration Statement,
amendment or supplement, as the case may be, or (B) to provide, and shall not provide, any Purchaser or its representatives with material,
non-public information unless such Purchaser agrees to receive such information and enters into a written confidentiality agreement with
the Company in a form reasonably acceptable to the Company.

 

6.4              
The Holders shall have no right to take any action to restrain, enjoin or otherwise delay any registration pursuant to Section 6.1
hereof as a result of any controversy that may arise with respect to the interpretation or implementation of this Agreement.

 

6.5              
(a)To the extent permitted by law, the Company shall indemnify each Holder and each Person controlling such Holder within the
meaning of Section 15 of the Securities Act, with respect to which any registration that has been effected pursuant to this Agreement,
against all claims, losses, damages and liabilities (or action in respect thereof), including any of the foregoing incurred in settlement
of any litigation, commenced or threatened (subject to Section 6.5(c) below), arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any Registration Statement, prospectus, any amendment or supplement thereof, or other
document incident to any such registration, qualification or compliance or based on any omission (or alleged omission) to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading, in light of the circumstances
in which they were made, or any violation by the Company of any rule or regulation promulgated by the Securities Act applicable to the
Company and relating to any action or inaction required of the Company in connection with any such registration, qualification or compliance,
and will reimburse each Holder and each Person controlling such Holder, for reasonable legal and other out-of-pocket expenses reasonably
incurred in connection with investigating or defending any such claim, loss, damage, liability or action as incurred; provided that the
Company will not be liable in any such case to the extent that any untrue statement or omission or allegation thereof is made in reliance
upon and in conformity with written information furnished to the Company by or on behalf of any Holder for use in preparation of any Registration
Statement, prospectus, amendment or supplement; provided further, that the Company will not be liable in any such case where the
claim, loss, damage or liability arises out of or is related to the failure of any Holder to comply with the covenants and agreements
contained in this Agreement respecting sales of Registrable Securities, and except that the foregoing indemnity agreement is subject to
the condition that, insofar as it relates to any such untrue statement or alleged untrue statement or omission or alleged omission made
in any preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at the time any Registration Statement
becomes effective or in an amended prospectus filed with the SEC pursuant to Rule 424(b) which meets the requirements of Section 10(a)
of the Securities Act (each, a “Final Prospectus”), such indemnity shall not inure to the benefit of any such
Holder or any such controlling Person, if a copy of a Final Prospectus furnished by the Company to the Holder for delivery was not furnished
or deemed delivered to the Person asserting the loss, liability, claim or damage at or prior to the time such furnishing is required by
the Securities Act and a Final Prospectus would have cured the defect giving rise to such loss, liability, claim or damage.

 

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(b)              
Each Holder will severally, and not jointly, indemnify the Company, each of its directors and officers, and each Person who controls
the Company within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section
6.5(c) below), arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any Registration
Statement, prospectus, or any amendment or supplement thereof, incident to any such registration, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in
light of the circumstances in which they were made, and will reimburse the Company, such directors and officers, and each Person controlling
the Company for reasonable legal and any other expenses reasonably incurred in connection with investigating or defending any such claim,
loss, damage, liability or action as incurred, in each case to the extent, but only to the extent, that such untrue statement or omission
or allegation thereof is made in reliance upon and in conformity with written information furnished to the Company by or on behalf of
such Holder for use in preparation of any Registration Statement, prospectus, amendment or supplement; provided that the indemnity shall
not apply to the extent that such claim, loss, damage or liability results from the fact that a current copy of a prospectus was not made
available to the Person asserting the loss, liability, claim or damage at or prior to the time such furnishing is required by the Securities
Act and a Final Prospectus would have cured the defect giving rise to such loss, claim, damage or liability. Notwithstanding the foregoing,
a Holder’s aggregate liability pursuant to this subsection (b) and subsection (d) shall be limited to the net amount received by
the Holder from the sale of the Registrable Securities.

 

(c)               
Each party entitled to indemnification under this Section 6.5 (the “Indemnified Party”) shall give notice
to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified
Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party (at its expense)
to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall
conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such Indemnified Party’s expense, and provided further that
the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under
this Agreement, unless such failure is materially prejudicial to the Indemnifying Party in defending such claim or litigation. An Indemnifying
Party shall not be liable for any settlement of an action or claim effected without its written consent (which consent will not be unreasonably
withheld). No Indemnifying Party, in its defense of any such claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.

 

(d)              
If the indemnification provided for in this Section 6.5 is held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying
such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the
one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in such loss, liability,
claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

6.6              
(a)Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event requiring the preparation
of a supplement or amendment to a prospectus relating to Registrable Securities so that, as thereafter delivered to the Holders, such
prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, each Holder will forthwith discontinue disposition of Registrable Securities
pursuant to a Registration Statement and prospectus contemplated by Section 6.1 until its receipt of copies of the supplemented or amended
prospectus from the Company and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than permanent
file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt
of such notice.

 

    15

     

    

 

(b)              
Each Holder shall suspend, upon request of the Company, any disposition of Registrable Securities pursuant to any Registration Statement
and prospectus contemplated by Section 6.1 during no more than two periods of no more than 30 calendar days each during any 12-month period
to the extent that the Company determines in good faith that the sale of Registrable Securities under any such Registration Statement
would be reasonably likely to cause a violation of the Securities Act or Exchange Act.

 

(c)               
As a condition to the inclusion of its Registrable Securities, each Holder shall furnish to the Company such information regarding
such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing, including completing a Registration
Statement Questionnaire in the form provided by the Company, or as shall be required in connection with any registration referred to in
this Article 6.

 

(d)              
Each Holder hereby covenants with the Company not to make any sale of the Registrable Securities pursuant to a Registration Statement
without effectively causing the prospectus delivery requirements under the Securities Act to be satisfied.

 

(e)               
At the end of the Registration Period the Holders shall discontinue sales of shares pursuant to any Registration Statement upon receipt
of notice from the Company of its intention to remove from registration the shares covered by any such Registration Statement which remain
unsold, and such Holders shall notify the Company of the number of shares registered which remain unsold immediately upon receipt of such
notice from the Company.

 

6.7              
With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which at any time permit the
sale of the Registrable Securities to the public without registration, so long as the Holders still own Registrable Securities (including
Warrant Shares issuable upon exercise of the Warrants), the Company shall use best efforts to:

 

(a)               
make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all
times;

 

(b)              
file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act; and

 

(c)               
so long as a Holder owns any Registrable Securities, furnish to such Holder, upon any reasonable request, a written statement by the
Company as to its compliance with Rule 144 under the Securities Act, and of the Exchange Act, a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents of the Company as such Holder may reasonably request in availing itself of
any rule or regulation of the SEC allowing a Holder to sell any such securities without registration.

 

6.8              
The rights to cause the Company to register Registrable Securities granted to the Holders by the Company under Section 6.1 may be
assigned by a Holder in connection with a transfer by such Holder of all or a portion of its Registrable Securities, provided, however,
that (i) such transfer may be effected in accordance with applicable securities laws; (ii) such Holder gives written notice to the Company
within a reasonable time after such assignment; and (iii) such transferee agrees to comply with the terms and provisions of this Agreement,
and such transfer is otherwise in compliance with this Agreement.

 

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6.9              
The rights of any Holder under any provision of this Article 6 may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely) or amended by an instrument in writing signed
by such Holder.

 

Article 7

DEFINITIONS

 

7.1              
“Aggregate Purchase Price” has the meaning set forth in Section 1.1.

 

7.2              
“Agreement” has the meaning set forth in the preamble.

 

7.3              
“Affiliate” means, with respect to any Person, any other Person controlling, controlled by or under direct
or indirect common control with such Person (for the purposes of this definition “control,” when used with respect
to any specified Person, shall mean the power to direct the management and policies of such Person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
shall have meanings correlative to the foregoing).

 

7.4              
“Business Day” means a day Monday through Friday on which banks are generally open for business in New York
City.

 

7.5              
“Bylaws” has the meaning set forth in Section 2.3.

 

7.6              
“Certificate of Incorporation” has the meaning set forth in Section 2.3.

 

7.7              
“Change of Control” means a sale, conveyance or other disposition of all or substantially all of the property
or business of the Company (other than to a wholly-owned subsidiary of the Company), or a merger of consolidation with or into any other
corporation or other business transaction or series of transactions as a result of which stockholders of the Company immediately prior
to the transaction would hold less than a majority of the voting interests of the Company (or successor or parent company thereof) after
the transaction; provided that a “Change of Control” shall not include any transaction or series of related transaction
principally for bona fide equity financing purposes.

 

7.8              
“Closing” has the meaning set forth in Section 1.3.

 

7.9              
“Closing Date” has the meaning set forth in Section 1.3.

 

7.10          
“Common Stock” means the new common stock, par value $0.01 per share, of the Company.

 

7.11          
“Company” means Palisade Bio, Inc.

 

7.12          
“Evaluation Date” has the meaning set forth in Section 2.7.

 

7.13          
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

7.14          
“Filing Date” has the meaning set forth in Section 6.1.

 

7.15          
“Final Prospectus” has the meaning set forth in Section 6.5(a).

 

7.16          
“Financial Statements” means the financial statements of the Company included in the SEC Documents.

 

    17

     

    

 

7.17          
“Financing” has the meaning set forth in Section 8.13.

 

7.18          
“Foreign Purchaser” has the meaning set forth in Section 3.10.

 

7.19          
“Holders” means any Person holding Registrable Securities or any Person to whom the rights under Article
6 have been transferred in accordance with Section 6.8 hereof.

 

7.20          
“Indemnified Party” has the meaning set forth in Section 6.5(c).

 

7.21          
“Indemnifying Party” has the meaning set forth in Section 6.5(c).

 

7.22          
“Initial Registration Statement” has the meaning set forth in Section 6.1.

 

7.23          
“Intellectual Property” has the meaning set forth in Section 2.10.

 

7.24          
“Investment Company Act” has the meaning set forth in Section 2.11.

 

7.25          
“Material Adverse Effect” means a material adverse effect on (a) the business, operations, assets or financial
condition of the Company, taken as a whole, or (b) the ability of the Company to perform its obligations pursuant to the transactions
contemplated by this Agreement.

 

7.26          
“Material Agreements” has the meaning set forth in Section 2.6.

 

7.27          
“Nasdaq” means The Nasdaq Stock Market LLC.

 

7.28          
“New Registration Statement” has the meaning set forth in Section 6.1.

 

7.29          
“Offering” means the private placement of the Securities contemplated by this Agreement.

 

7.30          
“Person” means any person, individual, corporation, limited liability company, partnership, trust or other
nongovernmental entity or any governmental agency, court, authority or other body (whether foreign, federal, state, local or otherwise).

 

7.31          
“Purchasers” mean the Purchaser whose name is set forth on the signature pages of this Agreement, and its
permitted transferees.

 

7.32          
The terms “register,” “registered” and “registration”
refer to the registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration
or ordering of the effectiveness of such registration statement.

 

7.33          
“Registrable Securities” means (i) the Shares (and any capital stock of the Company issued or issuable with
respect to the Shares as a result of any stock split, stock dividend, recapitalization, exchange or similar event) and (ii) the Warrant
Shares (and any capital stock of the Company issued or issuable with respect to the Warrant as a result of any stock split, stock dividend,
recapitalization, exchange or similar event); provided, however, that securities shall only be treated as Registrable Securities
if and only for so long as they (A) have not been disposed of pursuant to a registration statement declared effective by the SEC, (B)
have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act so that all
transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale, or (C)  are held
by a Holder or a permitted transferee pursuant to Section 6.8.

 

7.34          
“Registration Expenses” means all expenses incurred by the Company in complying with Section 6.1 hereof,
including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and expenses of counsel
for the Company, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration (but
excluding the fees of legal counsel for any Holder).

 

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7.35          
 “Registration Statement” means any one or more registration statements of the Company filed under the Securities
Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation
the Initial Registration Statement, the New Registration Statement and any Remainder Registration Statements) and amendments and supplements
to such Registration Statements, including post-effective amendments.

 

7.36          
“Registration Period” has the meaning set forth in Section 6.3(a).

 

7.37          
“Remainder Registration Statements” has the meaning set forth in Section 6.1.

 

7.38          
“Rule 144” means Rule 144 promulgated under the Securities Act, or any successor rule.

 

7.39          
“Rule 415” means Rule 415 promulgated under the Securities Act, or any successor rule.

 

7.40          
“Rule 506(d) Related Party” has the meaning set forth in Section 3.9.

 

7.41          
“SEC” means the United States Securities and Exchange Commission.

 

7.42          
“SEC Documents” has the meaning set forth in Section 2.6.

 

7.43          
“Securities” has the meaning set forth in Section 1.1.

 

7.44          
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder,
or any similar successor statute.

 

7.45          
“Selling Expenses” means all selling commissions applicable to the sale of Registrable Securities and all
fees and expenses of legal counsel for any Holder.

 

7.46          
“Share Purchase Price” has the meaning set forth in Section 1.1.

 

7.47          
“Shares” has the meaning set forth in Section 1.1.

 

7.48          
“Subsidiary” of any Person shall mean any corporation, partnership, limited liability company, joint venture
or other legal entity of which such Person (either above or through or together with any other subsidiary) owns, directly or indirectly,
more than 50% of the stock or other equity interests the holders of which are generally entitled to vote for the election of the board
of directors or other governing body of such corporation or other legal entity.

 

7.49          
“Warrants” has the meaning set forth in Section 1.1.

 

7.50          
“Warrant Shares” has the meaning set forth in Section 2.4.

 

Article 8

GOVERNING LAW; MISCELLANEOUS

 

8.1              
Governing Law; Jurisdiction. This Agreement will be governed by and interpreted in accordance with the laws of the State of Delaware
without regard to the principles of conflict of laws.

 

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8.2              
Counterparts; Signatures by Facsimile. This Agreement may be executed in two or more counterparts, all of which are considered one
and the same agreement and will become effective when counterparts have been signed by each party and delivered to the other parties.
This Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile or e-mail transmission of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

 

8.3              
Headings. The headings of this Agreement are for convenience of reference only, are not part of this Agreement and do not affect its
interpretation.

 

8.4              
Severability. If any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such
provision will be deemed modified in order to conform with such statute or rule of law. Any provision hereof that may prove invalid or
unenforceable under any law will not affect the validity or enforceability of any other provision hereof.

 

8.5              
Entire Agreement; Amendments. This Agreement (including all schedules and exhibits hereto) constitutes the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein or therein. This Agreement supersedes all prior agreements and understandings among the
parties hereto with respect to the subject matter hereof. This Agreement and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the Company and either (a) Purchasers holding Securities representing a majority
of the number of shares of Common Stock issued or issuable pursuant to this Agreement (assuming the exercise in full of all Warrants issued
or issuable hereunder); provided, however, that such modification, amendment or waiver is made with respect to all Purchasers
and does not adversely affect the Purchaser in a manner different than all other holders of Securities, or (b) the Purchaser to be
charged with enforcement of such modification, amendment or waiver. Any amendment or waiver by a party effected in accordance with this
Section 8.5 shall be binding upon such party, including with respect to any Securities purchased under this Agreement at the time outstanding
and held by such party (including securities into which such Securities are convertible and for which such Securities are exercisable)
and each future holder of all such securities.

 

8.6              
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the party to be notified, (b) when sent by confirmed email, telex or facsimile if sent during normal business hours of the
recipient, if not, then on the next Business Day, (c) five days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one Business Day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. The addresses for such communications are:

 

	If to the Company:	 	Palisade Bio, Inc.
	 	 	5800 Armada Drive
	 	 	Suite 210
	 	 	Carlsbad, CA 92008
	 	 	Attn: Chief Executive Officer
	 	 	 
	With a copy to:	 	Cooley LLP
	 	 	4401 Eastgate Mall
	 	 	San Diego, CA 92121
	 	 	Attn: Karen Deschaine

 

If to a Purchaser: To the address set forth immediately below such Purchaser’s
name on the signature pages hereto. Each party will provide ten days’ advance written notice to the other parties of any change
in its address.

 

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8.7              
Successors and Assigns. This Agreement is binding upon and inures to the benefit of the parties and their successors and assigns.
The Company will not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchasers,
and no Purchaser may assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company, except
as permitted in accordance with Section 6.8 hereof.

 

8.8              
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto, their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

8.9              
Further Assurances. Each party will do and perform, or cause to be done and performed, all such further acts and things, and will
execute and deliver all other agreements, certificates, instruments and documents, as another party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

8.10          
No Strict Construction. The language used in this Agreement is deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

 

8.11          
Equitable Relief. The Company recognizes that, if it fails to perform or discharge any of its obligations under this Agreement, any
remedy at law may prove to be inadequate relief to the Purchasers. The Company therefore agrees that the Purchasers are entitled to seek
temporary and permanent injunctive relief in any such case. Each Purchaser also recognizes that, if it fails to perform or discharge any
of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Company. Each Purchaser therefore
agrees that the Company is entitled to seek temporary and permanent injunctive relief in any such case.

 

8.12          
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under this Agreement are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under this Agreement. Nothing contained herein and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that the Purchasers are in any way acting in concert or as a group, or are deemed affiliates with respect to such obligations
or the transactions contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined
as an additional party in any proceeding for such purpose.

 

8.13          
Waiver of Conflicts. Each Purchaser acknowledges that Cooley LLP, outside general counsel to the Company, may now or in the future
represent one or more Purchasers or their affiliates in matters unrelated to the transactions contemplated by this Agreement (the “Financing”),
including representation of such Purchasers or their affiliates in matters of a similar nature to the Financing. The applicable rules
of professional conduct require that Cooley LLP inform the Purchasers hereunder of this representation and obtain their consent. Cooley
LLP has served as outside general counsel to the Company and has negotiated the terms of the Financing solely on behalf of the Company.
Each Purchaser hereby (a) acknowledges that they have had an opportunity to ask for and have obtained information relevant to such
representation, including disclosure of the reasonably foreseeable adverse consequences of such representation, (b) acknowledges
that with respect to the Financing, Cooley LLP has represented solely the Company, and not any Purchaser or any stockholder, director
or employee of the Company or any Purchaser, and (c) gives its informed consent to Cooley LLP’s representation of the Company
in the Financing.

 

 

[Signature Page Follows]

 

    21

     

    

 

IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase
Agreement to be duly executed as of the date first above written.

 

 

Palisade Bio, Inc.

 

	By:	/s/ Thomas M. Hallam	 
	Name:	Thomas M. Hallam	 
	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Securities Purchase Agreement]

 

     

     

    

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase
Agreement to be duly executed as of the date first above written.

 

Purchaser:

 

Yuma Regional Medical Center

 

	By:	/s/ Robert Trenschel	 
	Name:	Robert Trenschel	 
	Title:	President and Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Securities Purchase Agreement]

 

     

     

    

 

EXHIBIT A

 

SCHEDULE OF PURCHASERS

 

	Purchaser	 	Shares	 	Warrants	 	Aggregate

                                                                                Purchase Price

                                                                                for Shares

	Yuma Regional Medical Center 	 	1,509,896	 	377,474	 	$5,209,141.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT B

 

FORM OF WARRANT

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER APPLICABLE SECURITIES LAWS OR UNLESS OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT THAT AN OPINION IS REQUIRED PURSUANT TO THE AGREEMENT UNDER WHICH THE SECURITIES
WERE ISSUED.

 

PALISADE BIO, INC.

 

WARRANT TO PURCHASE COMMON STOCK 

 

	 	 	 
	No. CW-1	 	August 19, 2021

 

Void After August 19, 2026

 

THIS CERTIFIES THAT, for value received, Yuma
Regional Medical Center or its permitted assigns (the “Holder”), is entitled to subscribe for and purchase at
the Exercise Price (defined below) from Palisade Bio, Inc., a Delaware corporation (the “Company”), up to 377,474
shares of the Common Stock of the Company (the “Common Stock”), subject to adjustment as provided herein. This
Warrant is one of a series of Warrants being issued pursuant to the terms of the Securities Purchase Agreement, dated August 19, 2021,
by and among the Company and the original Holder of this Warrant and the other parties named therein (the “Purchase Agreement”).
Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the Purchase Agreement.

 

1. DEFINITIONS. As used herein, the following terms shall have the
following respective meanings:

 

(a) “Exercise Period” shall
mean the period commencing August 19, 2021 and ending August 19, 2026, unless sooner terminated as provided below.

 

(b) “Exercise Price” shall
mean $3.45 per share, subject to adjustment pursuant to Section 5 below.

 

(c) “Exercise Shares” shall
mean the shares of the Company’s Common Stock issued upon exercise of this Warrant, subject to adjustment pursuant to the terms
herein, including but not limited to adjustment pursuant to Section 5 below.

 

2. EXERCISE OF WARRANT.

 

2.1 Method of Exercise. The rights represented
by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company
at its address set forth above (or at such other address as it may designate by notice in writing to the Holder):

 

(a) An executed Notice of Exercise in the
form attached hereto;

 

(b) Payment of the Exercise Price either (i) in
cash or by check or wire transfer of immediately available funds, or (ii) pursuant to a Cashless Exercise, as described and permitted
below; and

 

(c) This Warrant.

 

     

     

    

 

Upon the exercise of the rights represented by this
Warrant, shares of Common Stock shall be issued for the Exercise Shares so purchased, and shall be registered in the name of the Holder
or persons affiliated with the Holder, if the Holder so designates, within a reasonable time after the rights represented by this Warrant
shall have been so exercised and shall be issued in certificate form and delivered to the Holder, if so requested.

 

The person in whose name any Exercise Shares are to
be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant
was surrendered and payment of the Exercise Price was made, irrespective of the date of issuance of the shares of Common Stock, except
that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be
deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books
are open.

 

The Exercise Shares issuable upon any exercise of
this Warrant shall be issued within two Business Days following such exercise and, to the extent required in the Purchase Agreement, shall
be issued free of any restrictive or other legend and by electronic delivery to the Holder’s or its designee’s balance account
at DTC.

 

2.2 Cashless Exercise. Notwithstanding any
provisions herein to the contrary, if, at any time during the Exercise Period, (a) the Current Market Price (as defined below) of one
share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below) and (b) there is no effective
registration statement registering, or no current prospectus available for, the resale of the Exercise Shares by the Holder, then, in
lieu of exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a cashless exercise by surrender of this Warrant
at the principal office of the Company together with the properly endorsed Notice of Exercise and the Company shall issue to the Holder
a number of shares of Common Stock computed using the following formula:

 

	 	 	 	 	 
	 	 	X =	 	
    Y (B-A)

          B

    

	 	 	 
	Where:	 	X =	 	the number of shares of Common Stock to be issued to the Holder.
	 	 	 
	 	 	Y =	 	the number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised.
	 	 	 
	 	 	A =	 	the Exercise Price.
	 	 	 
	 	 	B =	 	the Current Market Price of one share of Common Stock.

 

“Current Market Price”
means on any particular date:

 

(a) if the Common Stock is traded on The Nasdaq
Stock Market, the closing price of the Common Stock of the Company on such market on the day prior to the applicable date of valuation;

 

(b) if the Common Stock is traded on any registered
national stock exchange but is not traded on The Nasdaq Stock Market, the closing price of the Common Stock of the Company on such exchange
on the day prior to the applicable date of valuation;

 

(c) if the Common Stock is traded over-the-counter,
but not on The Nasdaq Stock Market or another registered national stock exchange, the closing bid price of the Common Stock of the Company
on the day prior to the applicable date of valuation; and

 

(d) if there is no active public market for
the Common Stock, the value thereof, as determined in good faith by the Board of Directors of the Company upon due consideration of the
proposed determination thereof by the Holder.

 

2.3 Partial Exercise. If this Warrant is exercised
in part only, the Company shall, upon surrender of this Warrant, execute and deliver, within 10 days of the date of exercise, a new Warrant
evidencing the rights of the Holder, or such other person as shall be designated in the Notice of Exercise, to purchase the balance of
the Exercise Shares purchasable hereunder. In no event shall this Warrant be exercised for a fractional Exercise Share, and the Company
shall not distribute a Warrant exercisable for a fractional Exercise Share. Fractional Warrant shares shall be treated as provided in
Section 6 hereof.

 

     

     

    

 

2.4 No Settlement for Cash. The Warrant cannot
be settled with the Company for cash and except with respect to fractional shares as provided herein, the Company shall have no obligation
to pay cash upon any exercise of this Warrant.

 

3. COVENANTS OF THE COMPANY.

 

3.1 Covenants as to Exercise Shares. The Company
covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon
issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to
the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period have authorized
and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the exercise of the rights
represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Common Stock shall
not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock (or other securities as provided herein) to such number of
shares as shall be sufficient for such purposes.

 

3.2 No Impairment. Except and to the extent
as waived or consented to by the Holder or otherwise in accordance with Section 11 hereof, the Company will not, by amendment of
its Certificate of Incorporation (as such may be amended from time to time), or through any means, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in
the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order
to protect the exercise rights of the Holder against impairment.

 

3.3 Notices of Record Date. In the event of
any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or other
distribution, the Company shall mail to the Holder, at least 10 days prior to the date thereof, a notice specifying the date on which
any such record is to be taken for the purpose of such dividend or distribution.

 

3.4 Distributions. If the Company shall declare
or make any dividend or other distribution of its assets (or rights to acquire its assets) (the “Distributed Property”)
to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash,
stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement
or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each
such case, the Holder shall be entitled, upon exercise of this Warrant for the purchase of any or all of the Exercise Shares, to receive
the amount of Distributed Property which would have been payable to the Holder had such Holder been the holder of such Exercise Shares
on the record date for the determination of the stockholders entitled to receive such Distributed Property.  The Company will at
all times set aside in escrow and keep available for distribution to such Holder upon exercise of this Warrant a portion of the Distributed
Property to satisfy the distribution to which such Holder is entitled pursuant to the preceding sentence.

 

3.5 Fundamental Transactions.  If the Company
consummates (i) a merger or consolidation with or into another entity, as a result of which the holders of the Company’s outstanding
voting securities as of immediately prior to such merger or consolidation hold less than a majority of the outstanding voting securities
of the surviving or successor entity as of immediately after such merger or consolidation or (ii) a sale, transfer or other disposition
of all or substantially all its property, assets or business to another person or entity (any such transaction being hereinafter referred
to as a “Fundamental Transaction”), then the Company shall ensure that lawful and adequate provision shall be
made whereby the Holder shall thereafter have the right to purchase and receive upon the basis and upon the terms and conditions herein
specified and in lieu of the Exercise Shares immediately theretofore issuable upon exercise of this Warrant, such shares of stock, securities
or assets as would have been issuable or payable with respect to or in exchange for a number of Exercise Shares equal to the number of
Exercise Shares immediately theretofore issuable upon exercise of this Warrant, had such Fundamental Transaction not taken place. The
provisions of this Section 3.5 shall similarly apply to successive consolidations, mergers, sales, transfers or other dispositions.

 

     

     

    

 

4. REPRESENTATIONS OF HOLDER. 

 

4.1 Acquisition of Warrant for Personal Account.
The Holder represents and warrants that it is acquiring the Warrant and the Exercise Shares solely for its account for investment and
not with a present view toward the public or distribution of said Warrant or Exercise Shares or any part thereof and has no intention
of selling or distributing said Warrant or Exercise Shares or any arrangement or understanding with any other persons regarding the sale
or distribution of said Warrant or, except in accordance with the provisions of Section 6 of the Purchase Agreement, the Exercise Shares,
and except as would not result in a violation of the Securities Act. The Holder will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) the Warrant except
in accordance with the Securities Act and will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or
solicit any offers to buy, purchase or otherwise acquire or take a pledge of) the Exercise Shares except in accordance with the provisions
of Section 6 of the Purchase Agreement or pursuant to and in accordance with the Securities Act. By making the representations herein,
the Holder does not agree to hold any of the this Warrant or any of the Exercise Shares for any minimum or other specific term and reserves
the right to assign, transfer or otherwise dispose of any of such Securities at any time in accordance with or pursuant to a registration
statement or a valid exemption under the Securities Act.

 

4.2 Securities Are Not Registered.

 

(a) The Holder understands that the offer
and sale of the Warrant or the Exercise Shares have not been registered under the Securities Act on the basis that no distribution or
public offering of the securities is to be effected. The Holder realizes that the basis for the exemption may not be present if the Holder’s
representations in this Section 4 are untrue.

 

(b) The Holder recognizes that the Warrant
and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from
such registration is available. The Holder recognizes that the Company has no obligation to register the Warrant or, except as provided
in the Purchase Agreement, the Exercise Shares of the Company, or to comply with any exemption from such registration.

 

(c) The Holder is aware that neither the Warrant
nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met, including,
among other things, the availability of certain current public information about the Company and the resale following the required holding
period under Rule 144. Holder is aware that any such sale made in reliance on Rule 144, if Rule 144 is available, may be made only in
accordance with the terms of Rule 144.

 

4.3 Disposition of Warrant and Exercise Shares.

 

(a) The Holder further agrees not to make
any disposition of all or any part of the Warrant or Exercise Shares in any event unless and until:

 

(i) The Company shall have received a letter
secured by the Holder from the SEC stating that no action will be recommended to the SEC with respect to the proposed disposition;

 

(ii) There is then in effect a registration
statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration
statement; or

 

(iii) The Holder shall have notified the
Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the
proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Company with an opinion of counsel,
reasonably satisfactory to the Company, for the Holder to the effect that such disposition will not require registration of such Warrant
or Exercise Shares under the Securities Act or any applicable state securities laws; provided, that no opinion shall be required
for any disposition made or to be made in accordance with the provisions of Rule 144.

 

     

     

    

 

(b) The Holder understands and agrees that
all certificates evidencing the Exercise Shares to be issued to the Holder may bear a legend in substantially the following form; provided,
that such legend shall be removed (or such Exercise Shares shall be issued without such legend upon exercise of this Warrant) as required
pursuant to Section 3.6(b) of the Purchase Agreement:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT THAT AN OPINION IS REQUIRED PURSUANT TO THE AGREEMENT UNDER WHICH THE SECURITIES
WERE ISSUED.

 

5. ADJUSTMENT OF EXERCISE PRICE. In the event of changes in the
outstanding Common Stock of the Company by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or
exchanges of shares, separations, reorganizations, liquidations, or the like, the number and class of shares available under the Warrant
in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same
aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had the Warrant been exercised prior
to the event and had the Holder continued to hold such shares until after the event requiring adjustment. The form of this Warrant need
not be changed because of any adjustment in the number, class, and kind of shares subject to this Warrant. The Company shall promptly
provide a certificate from an executive officer of the Company notifying the Holder in writing of any adjustment in the Exercise Price
and/or the total number, class, and kind of shares issuable upon exercise of this Warrant, which certificate shall specify the Exercise
Price and number, class and kind of shares under this Warrant after giving effect to such adjustment.

 

6. FRACTIONAL SHARES. No fractional shares shall be issued upon
the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon
exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional
share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance
of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying
the Exercise Price by such fraction.

 

7. CERTAIN EVENTS. In the event of, at any time during the Exercise
Period, any capital reorganization, or any reclassification of the capital stock of the Company (other than a change in par value or from
par value to no par value or no par value to par value or as a result of a stock dividend or subdivision, split-up or combination of shares),
or the consolidation or merger of the Company with or into another corporation (other than a merger solely to effect a reincorporation
of the Company into another jurisdiction), in each case, in which the stockholders of the Company immediately prior to such capital reorganization,
reclassification, consolidation or merger, will hold less than a majority of the outstanding shares of the Company or resulting corporation
immediately after such capital reorganization, reclassification, consolidation or merger, or the sale or other disposition of all or substantially
all of the properties and assets of the Company and its subsidiaries, taken as a whole, in its entirety to any other person, other than
sales or other dispositions that do not require stockholder approval (each, an “Event”), the Company shall provide
to the Holder 10 days’ advance written notice of such Event, and the Holder shall have the option, in its sole discretion, to allow
any unexercised portion of the Warrant to be deemed automatically exercised pursuant to Section 2.2, subject to Section 2.5. This
Warrant will be binding upon the successors and assigns of the Company upon an Event.

 

8. NO STOCKHOLDER RIGHTS. This Warrant in and of itself shall not
entitle the Holder to any voting rights or other rights as a stockholder of the Company.

 

9. TRANSFER OF WARRANT. Subject to applicable laws and compliance
with Section 4.3 hereof, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney,
upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. The transferee shall
sign an investment letter in form and substance reasonably satisfactory to the Company.

 

10. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant
is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which
shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant
so lost, stolen, mutilated or destroyed and in lieu thereof.

 

     

     

    

 

11. MODIFICATIONS AND WAIVER. This Warrant and any provision hereof
may be changed, waived, discharged or terminated only by an instrument in writing signed by the Company and either (i) Purchasers
holding Warrants representing at least 75% of the number of Exercise Shares then issuable upon exercise of all Warrants sold pursuant
to the Purchase Agreement, provided, however, that such modification, amendment or waiver is made with respect to all Warrants
and does not adversely affect the Holder in a manner different than all other holders of Warrants; or (ii) the Holder.

 

12. NOTICES, ETC. All notices required or permitted hereunder shall
be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed email or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five
days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one business day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications
shall be sent to the Company at the address listed on the signature page and to the Holder at the address on the Company records, or at
such other address as the Company or Holder may designate by 10 days’ advance written notice to the other party hereto.

 

13. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute
acceptance of and agreement to all of the terms and conditions contained herein.

 

14. GOVERNING LAW. This Warrant and all rights, obligations and
liabilities hereunder shall be governed by the laws of the State of Delaware without regard to the principles of conflict of laws.

 

15. DESCRIPTIVE HEADINGS. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. The language in this Warrant
shall be construed as to its fair meaning without regard to which party drafted this Warrant.

 

16. SEVERABILITY. The invalidity or unenforceability of any provision
of this Warrant in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction, or affect
any other provision of this Warrant, which shall remain in full force and effect.

 

17. PAYMENT OF ENFORCEMENT OR OTHER COSTS. If (a) this Warrant is
placed in the hands of an attorney for collection or enforcement or is enforced through any legal proceeding or the Holder otherwise takes
action to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other
proceedings affecting Company creditors’ rights and involving a claim under this Warrant, then the Company shall pay the costs incurred
by the Holder for such enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding,
including, without limitation, attorneys’ fees and disbursements.

 

18. ENTIRE AGREEMENT. This Warrant and the Purchase Agreement (including
the schedules and exhibits) constitute the entire agreement between the parties pertaining to the subject matter contained in it and supersedes
all prior and contemporaneous agreements, representations, and undertakings of the parties, whether oral or written, with respect to such
subject matter.

 

[Signature Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be executed by its duly authorized officer as of August 19, 2021.

 

	 	 	 
	PALISADE BIO, INC.	 
	 	 	 
	By:	
	 
	 	 	 
	Name:	
    Thomas M. Hallam

    
	 
	 	 	 
	Title:	Chief Executive Officer	 
	 	 	 
	Address:	
    5800 Armada Drive

    Suite 210

    Carlsbad, CA 92008
	 

 

 

 

 

 

 

 

 

     

     

    

 

NOTICE OF EXERCISE 

TO: PALISADE BIO, INC. 

(1) The undersigned hereby elects to (check
one box only):

q purchase
         shares of the Common Stock of Palisade Bio, Inc. (the “Company”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full for such shares, together with
all applicable transfer taxes, if any.

q purchase
the number of shares of Common Stock of the Company by cashless exercise pursuant to the terms of the Warrant as shall be issuable upon
cashless exercise of the portion of the Warrant relating to          shares, and shall
tender payment of all applicable transfer taxes, if any.

(2) Please issue a certificate or certificates
representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

 

	 	 
	
	 
	(Name)	 
	 	 
	
	 
	(Address)	 

 

(3) The undersigned represents that (i) the
undersigned is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision regarding its investment in the Company; (ii) the undersigned is experienced
in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable
of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iii) the undersigned
understands that the issuance of the shares of Common Stock issuable upon exercise of this Warrant has not been registered under the Securities
Act of 1933, as amended (the “Securities Act”); (iv) the undersigned is aware that the aforesaid shares
of Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met, including a condition
that the undersigned has held or is deemed to have held the shares for the time period prescribed by Rule 144; and (v) the undersigned
agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect
a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said
registration statement, or such disposition is not required to be registered pursuant to the Securities Act or any applicable state securities
laws.

 

	 	 	 
	
	 	

	(Date)	 	(Signature)
	 	 	 
	 	 	

	 	 	(Print name)

 

 

 

 

 

 

 

 

 

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, subject to compliance with Section 4.3
thereof, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to

 

	 
	Name:
	 
	
 

	(Please Print)
	 
	Address:
	 
	
 

	(Please Print)

 

	 
	Dated:            , 20    

 

	 	 	 
	Holder’s	 	 
	Signature:	
	 
	 	 	 
	Holder’s	 	 
	Address:	
	 

 

NOTE: The signature to this Assignment Form must correspond with
the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations
and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

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