Document:

Exhibit 10.3

 

NUGENE
INTERNATIONAL, INC.

RESTRICTED
STOCK UNITS AGREEMENT

 

THIS RESTRICTED
STOCK UNITS AGREEMENT (the “Agreement”) is made and entered into as of the 22nd day
of September, 2016 (the “Grant Date”), by and between NUGENE INTERNATIONAL, INC., a Nevada corporation
(the “Company”); and, ALI KHARAZMI (the “Grantee”), the Chairman of the Company’s
Board of Directors. The Company has granted to the Grantee an award (the “Award”) consisting of two million
(2,000,000) Restricted Stock Units (the “Total Number of Units”), subject to the terms and conditions of
this Agreement. Each Unit represents a right to receive upon settlement one (1) share of Stock. The Award has not been granted
pursuant to any compensatory, bonus, or similar plan maintained or otherwise sponsored by the Company (collectively, the “Plan”),
and the shares of Stock that may become issuable upon settlement the Units shall not reduce the number of shares of Stock available
for issuance under any Plan. The Company and Grantee are sometimes referred to collectively herein as the “Parties”,
and each individually as a “Party”.

 

		1.	DEFINITIONS AND INTERPRETATION.

 

1.1           Definitions.
In addition to other capitalized terms defined elsewhere in this Agreement, the following capitalized terms shall have the following
meanings:

 

“Board” means
the Board of Directors of the Company. If one or more committees of the Board of Directors have been appointed by the Board to
administer this Agreement, “Board” also means such committee(s).

 

“Cause” shall
have the same meaning as under the Chairman Agreement executed concurrently by and between the Parties (the “Chairman
Agreement”).

 

“Change
in Control” shall have the same meaning as under the Chairman Agreement.

 

“Code” means
the Internal Revenue Code of 1986, as amended, and any applicable regulations and administrative guidelines promulgated thereunder.

 

“Complete
Disability” shall have the same meaning as under the Chairman Agreement.

 

“Dividend
Equivalent Units” mean additional Restricted Stock Units credited pursuant to Section 2.3, below.

 

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

 

“Expiration
Date” means the seventh (7th) anniversary of the Grant Date.

 

“Fair
Market Value” means as of any date, the value of a share of Stock or other property as determined by the Board,
in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject
to the following:

 

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(a)          If,
on such date, the Stock is listed or quoted on a national or regional securities exchange or quotation system, the Fair Market
Value of a share of Stock shall be the closing price of a share of Stock as quoted on the national or regional securities exchange
or quotation system constituting the primary market for the Stock, as reported in The Wall Street Journal or such
other source as the Board deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities
exchange or quotation system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock
was so traded or quoted prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion.

 

(b)          If,
on such date, the Stock is not listed or quoted on a national or regional securities exchange or quotation system, the Fair Market
Value of a share of Stock shall be as determined by the Board in good faith without regard to any restriction other than a restriction
which, by its terms, will never lapse.

 

“Participating
Company” means the Company and any subsidiary of the Company.

 

“Restricted
Stock Unit” or “Unit” means a right to receive on the applicable Settlement
Date and in accordance with this Agreement one (1) share of Stock, and includes the Total Number of Units originally granted
pursuant to this Agreement and the Dividend Equivalent Units credited pursuant to Section 2.3, as both may be adjusted from
time to time pursuant to Section 7.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Service” means
the Grantee’s service to the Company as a director or consultant. The Grantee’s Service shall not be deemed to have
been interrupted or terminated if the Grantee takes any sick leave, or other bona fide leave of absence approved by the Company’s
Board of Directors.

 

“Service
Condition” means the condition to the vesting of the Award. The Service Condition is satisfied based on the
duration of the Grantee’s continuous Service from the Grant Date, as provided by Section 3.1.

 

“Settlement
Date” means, for each Vested Unit, the earliest of (i) the six-month anniversary of the date the Service
Condition is satisfied with respect to such Vested Unit (or, at the sole discretion of the Board, at such later date during the
same calendar year); (ii) the date the Grantee’s Service ceases for any reason and such cessation constitutes a “separation
from service” within the meaning of Section 409A of the Code; or (iii) the date of a Change in Control that constitutes
a “change in control event” within the meaning of Section 409A of the Code.

 

“Stock” means
the common stock of the Company, subject to adjustment as provided by Section 7.

 

“Trading
Compliance Policy” means the written policy of the Company pertaining to the purchase, sale, transfer or other
disposition of the Company’s equity securities by directors, officers, employees or other service providers who may possess
material, nonpublic information regarding the Company or its securities.

 

“Vested
Unit” means a Unit that has vested in accordance with Section 3 and ceased to be subject to the Company
Reacquisition Right described in Section 4.1.

 

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		1.2	Interpretation.

 

1.2.1.          Provision
Not Construed Against Drafting Party. This Agreement is the result of negotiations by and between the Parties, and each
Party has had the opportunity to be represented by independent legal counsel of its choice. This Agreement is the product of the
work and efforts of all Parties, and shall be deemed to have been drafted by all Parties. In the event of a dispute, no Party shall
be entitled to claim that any provision should be construed against any other Party by reason of the fact that it was drafted by
one particular Party.

 

1.2.2.          Agreement
Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section, Subsection, Exhibit,
or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits and Schedules identified
in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

1.2.3.          Entire
Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the entire agreement
and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly not relied upon
any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly set forth or referred
to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and negotiations between
the Parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or usage of the trade
inconsistent with any of the terms hereof.

 

1.2.4.          Severability.
Each and every provision of this Agreement is severable and independent of any other term or provision of this Agreement. If any
term or provision hereof is held void or invalid for any reason by a court of competent jurisdiction, such invalidity shall not
affect the remainder of this Agreement.

 

1.2.5.          Successors
and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions, conditions,
and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties.

 

1.2.6.          Time.
All Parties agree that time is of the essence as to this Agreement.

 

1.2.7.          Governing
Law. This Agreement shall be governed by the laws of the State of California, without giving effect to any choice or conflict
of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of California. If any court action is necessary to enforce the terms and conditions
of this Agreement, the Parties hereby agree that the Superior Court of California, County of Orange, shall be the sole jurisdiction
and venue for the bringing of such action.

 

1.3           Additional
Definitions and Interpretation Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended.

 

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		2.	THE AWARD.

 

2.1           Grant
of Units. On the Grant Date, the Grantee shall acquire, subject to the provisions of this Agreement, the Total Number
of Units, subject to adjustment as provided in Section 7. Each Unit represents a right to receive one (1) share of Stock
on the applicable Settlement Date and in accordance with this Agreement.

 

2.2           No
Monetary Payment Required. The Grantee is not required to make any monetary payment (other than applicable tax withholding,
if any) as a condition to receiving the Units or shares of Stock issued upon the vesting or settlement of the Units, the consideration
for which shall be services to be rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, if required
by applicable law, the Grantee shall furnish consideration in the form of cash or past services rendered to a Participating Company
or for its benefit having a value not less than the par value of the shares of Stock issued upon settlement of the Units.

 

2.3           Dividend
Equivalent Units. On the date that the Company pays a cash dividend or other cash distribution to holders of Stock
generally, the Grantee shall be credited with a number of additional whole Dividend Equivalent Units determined by dividing (a) the
product of (i) the dollar amount of the cash dividend or distribution paid per share of Stock on such date and (ii) the
total number of Units previously credited to the Grantee pursuant to this Agreement which have not been settled or forfeited pursuant
to the Company Reacquisition Right (as defined below) as of such date, by (b) the Fair Market Value per share of Stock on
such date. Any resulting fractional Dividend Equivalent Unit shall be rounded to the nearest whole number. Such additional Dividend
Equivalent Units shall be subject to the same terms and conditions and shall be settled or forfeited in the same manner and at
the same time as the Units originally subject to this Agreement with respect to which they have been credited.

 

2.4           Termination
of the Award. The Award shall terminate upon the first to occur of (a) the final settlement of all Vested Units
in accordance with Section 5 (including a final settlement upon the cessation of Grantee’s Services) or (b) the
Expiration Date if settlement has not occurred on or before the Expiration Date.

 

		3.	VESTING OF UNITS.

 

3.1           Satisfaction
of Service Condition. Except as provided by Section 3.2 below and subject to the Grantee’s continuous Service
through the applicable date set forth in the table below (each a “Service Date”), the Service Condition will
be satisfied in accordance with the following schedule:

 

	Service Date	 	Percentage of Units	 
	 	 	 	 
	22 August 2017	 	 	33.34	%
	22 August 2018	 	 	33.33	%
	22 August 2019	 	 	33.33	%

 

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3.2           Vesting
Upon Change in Control or Upon Removal Without Cause or Due to Death, or Complete Disability. Upon the Occurrence
of a Change in Control, the Service Condition will be satisfied with respect to one-hundred percent (100%) of the Total Number
of Units effective as of the date of such Change in Control. If the Grantee’s Service is involuntarily ceased by the Company
for any reason other than Cause or the Grantee’s Service ends as a result of the Grantee’s death or Complete Disability,
then the Service Condition will be satisfied with respect to one-hundred percent (100%) of the Total Number of Units effective
as of the date of such end of Service. If the Grantee voluntarily terminates his Service there shall be no acceleration of the
Service Condition.

 

3.3           Effect
of the End of Service. Subject to the vesting provisions in Sections 3.1 and 3.2 above, upon the end of Grantee’s
Service (whether by the Company or by Grantee and whether for Cause or for any or no reason), then:

 

(a)          all
Units for which the Service Condition has not been satisfied as of the date of such end of Service shall be subject to
the Company Reacquisition Right (as defined in Section 4.1) immediately upon the end of Grantee’s Service; and

 

(b)          all
Units for which the Service Condition has been satisfied as of the date of such end of Service (including as a result
of Section 3.2) shall not be subject to the Company Reacquisition Right, but instead shall remain Vested Units.

 

3.4           Payments
Upon Vesting. On the day of Vesting of any Units pursuant to Section 3.1, above, the Company shall:

 

(a)          if
Grantee is an employee at the time of Vesting, withhold, on behalf of Grantee, the Federal Insurance Contributions Act tax imposed
pursuant to Sections 3101 and 3121(v)(2) of the Code on the Vested Units (the “FICA Amount”). In addition, the
Company shall pay Grantee an amount equal to the sum of (A) the FICA Amount, plus (B) a tax gross-up payment (computed
at the highest applicable marginal rate) in an amount that, after payment of all federal, state, and local income and employment
taxes, results in the Grantee’s receipt and retention, on an after-tax basis, of an amount equal to all federal, state, and
local taxes payable by Grantee on the FICA Amount.

 

(b)          if
Grantee is a director or consultant at the time of Vesting, pay Grantee an amount equal to the sum of (A) the taxes imposed
pursuant to Section 1401 of the Code on the Vested Units that are treated as “self-employment income” (as defined
in Section 1402(b) of the Code), plus (B) a tax gross-up payment (computed at the highest applicable marginal rate) in
an amount that, after payment of all federal, state, and local income and employment taxes, results in the Grantee’s receipt
and retention, on an after-tax basis, of an amount equal to all federal, state, and local taxes payable by Grantee on the amount
specified in Section 3.4(ii)(A).

 

The Company shall make any payments due
to Grantee pursuant to this Section 3.4 within 24 hours of the Vesting of any Units by wire transfer to the account designated
by Grantee.

 

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		3.5	Federal Excise Tax Under Section 4999 of
the Code.

 

3.5.1.          Excess
Parachute Payment. If any acceleration of vesting pursuant to the Award and any other payment or benefit (collectively,
the “Payments”) received or to be received by the Grantee would, but for this Section, subject the Grantee
to any excise tax pursuant to Section 4999 of the Code or any similar or successor provision (the “Excise Tax”)
due to the characterization of such acceleration of vesting, payment or benefit as an “excess parachute payment” under
Section 280G of the Code, then the aggregate amount of the Payments will be either fully payable or reduced to the largest
portion of the Payments that would result in no portion of the Payments (after reduction) being subject to the Excise Tax, whichever
results in the Grantee receiving the greatest amount of Payments, on an after-tax basis (accounting for federal, state, and local
income taxes and the Excise Tax), even if some or all of the Payments are subject to the Excise Tax. Any reduction in the Payments
required by this Section will be made in the following order: (i) reduction of cash payments; (ii) reduction of accelerated
vesting of equity awards other than stock options; (iii) reduction of accelerated vesting of stock options; and (iv) reduction
of other benefits paid or provided to the Grantee. In the event that acceleration of vesting of equity awards is to be reduced,
such acceleration of vesting will be cancelled in the reverse order of the date of grant of the Grantee’s equity awards.
If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.

 

3.5.2.          Determination
by Tax Firm. No later than the date of the occurrence of any event that might reasonably be anticipated to result
in an “excess parachute payment” to the Grantee, the Company shall request a determination in writing by the professional
firm engaged by the Company for general tax purposes, or, if the tax firm so engaged by the Company is serving as accountant or
auditor for the acquiror, the Company will appoint a regionally recognized tax firm to make the determinations required by this
Section (the “Tax Firm”). As soon as practicable thereafter, the Tax Firm shall determine the Grantee
the amount of such acceleration of vesting, payments and benefits to be reduced, if any. For the purposes of such determination,
the Tax Firm may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.
The Company and the Grantee shall furnish to the Tax Firm such information and documents as the Tax Firm may reasonably request
in order to make its required determination. The Company shall bear all reasonable fees and expenses the Tax Firm charges in connection
with its services contemplated by this Section.

 

		4.	COMPANY REACQUISITION RIGHT.

 

4.1           Grant
of Company Reacquisition Right. In the event that the Grantee’s Service ends for any reason, the Grantee shall
forfeit and the Company shall automatically reacquire all Units for which the Service Condition has not been satisfied as of the
time of such end of Grantee’s Service in accordance with Section 3 (the “Unvested Units”),
and the Grantee shall not be entitled to any payment therefor (the “Company Reacquisition Right”).

 

4.2           Dividends,
Distributions, and Adjustments. Upon the occurrence of a dividend or distribution to the stockholders of the
Company paid in shares of Stock or other property, or any other adjustment upon a change in the capital structure of the Company
as described in Section 7, any and all new, substituted or additional securities or other property to which the Grantee is
entitled by reason of the Grantee’s ownership of Unvested Units shall be immediately subject to the Company Reacquisition
Right and included in the terms “Units” and “Unvested Units” for all purposes of the Company Reacquisition
Right with the same force and effect as the Unvested Units immediately prior to the dividend, distribution or adjustment, as the
case may be. For purposes of determining the number of Units for which the Service Condition has been satisfied following a dividend,
distribution or adjustment, credited Service shall include all Service with any corporation which is a Participating Company at
the time the Service is rendered, whether or not such corporation is a Participating Company both before and after any such event.

 

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		5.	SETTLEMENT OF THE UNITS.

 

5.1           Issuance
of Shares of Stock. Subject to the provisions of Section 5.3 below, the Company shall issue to the Grantee on
the Settlement Date with respect to each Vested Unit to be settled on such date one (1) share of Stock.

 

5.2           Beneficial
Ownership of Shares. A certificate for the shares acquired by the Grantee shall be registered in the name of the Grantee,
or, if applicable, in the names of the heirs of the Grantee.

 

5.3           Restrictions
on Grant of the Units and Issuance of Shares. As of the date of this Agreement, the grant of the Units and issuance
of shares of Stock upon settlement of the Units have not been registered under federal or state securities laws, and as a result,
shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.
No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal,
state, or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which
the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority,
if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to this Agreement
shall relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority
shall not have been obtained. As a condition to the settlement of the Units, the Company may require the Grantee to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the Company.

 

5.4           Transfer
of Shares. The Grantee may not transfer the shares of Stock issued upon settlement of the Units except in compliance
with applicable federal and state securities laws and the Company’s insider trading policy.

 

5.5           Fractional
Shares. The Company shall not be required to issue fractional shares upon the settlement of the Units.

 

		6.	TAX WITHHOLDING.

 

6.1           In
General. Grantee understands and agrees that the Grantee is an independent contractor and not an employee of the
Company. As a result, the Company will not make deductions for taxes from any amounts payable to Grantee as a result of his Services
to the Company or as a result of the vesting or settlement of the Units (except as otherwise specified in Section 3.4(i)
or required by applicable law or regulation). Any taxes imposed on the Grantee due to Services to the Company (including upon
the issuance, vesting and settlement of the Units) will be the sole responsibility of the Consultant (except as otherwise specified
in Section 3.4(i)).

 

6.2           Cancellation
of Shares. The Company shall, upon request by the Grantee, allow Grantee to satisfy all or any portion of the Grantee’s
tax obligations upon the settlement of the Units by having the Company cancel the shares of Stock otherwise deliverable to the
Grantee in settlement of the Units in an amount equal to the number of whole shares having a fair market value, as determined by
the Company as of the date on which the tax obligations arise, not in excess of the amount of such tax obligations determined by
the applicable minimum statutory withholding rates. Upon cancellation of the shares, the Company shall pay the fair market value
of such cancelled shares to the Grantee in cash so that the Grantee can satisfy his tax obligations.

 

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6.3           Notice
and Payment. On our before the date of each settlement of Units, the Grantee shall notify the Company of his election to
cancel shares of Stock pursuant to Section 6.2 upon the settlement of such Units. The Company shall make the payment due to
Grantee pursuant to Section 6.2 within 24-hours of the date of the settlement of the Units for which Grantee has elected to
cancel shares of Stock pursuant to Section 6.2 by wire transfer to the account designated by Grantee.

 

7.          ADJUSTMENTS
FOR CHANGES IN CAPITAL STRUCTURE. Subject to any required action by the stockholders of the Company and the requirements
of Section 409A of the Code to the extent applicable, in the event of any change in the Stock effected without receipt of
consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification,
stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or
similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders
of the Company in a form other than Stock (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments
shall be made in the number of Units subject to this Agreement and/or the number and kind of shares or other property to be issued
in settlement of the Units, in order to prevent dilution or enlargement of the Grantee’s rights under this Agreement. For
purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without
receipt of consideration by the Company.” Any and all new, substituted or additional securities or other property (other
than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) to which the Grantee is entitled
by reason of ownership of Units acquired pursuant to this Agreement will be immediately subject to the provisions of this Agreement
on the same basis as all Units originally acquired hereunder. Any fractional Unit or share resulting from an adjustment pursuant
to this Section shall be rounded down to the nearest whole number. Such adjustments shall be determined by the Board, and its determination
shall be final, binding, and conclusive.

 

8.          RIGHTS
AS A STOCKHOLDER OR DIRECTOR. The Grantee shall have no rights as a stockholder with respect to any shares which may be
issued in settlement of the Units until the date of the issuance of such shares (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions
or other rights for which the record date is prior to the date the shares of Stock are issued, except as provided in Section 2.3
or Section 7. The Grantee understands and acknowledges that the Grantee’s Services to the Company is dictated by the
Chairman Agreement. Nothing in this Agreement shall confer upon the Grantee any right to continue in the Service of a Participating
Company or interfere in any way with any right of a Participating Company to end the Grantee’s Service at any time.

 

9.          LEGENDS.
The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions
on all certificates representing shares of stock issued pursuant to this Agreement. The Grantee shall, at the request of the Company,
promptly present to the Company any and all certificates representing shares acquired pursuant to this Agreement in the possession
of the Grantee in order to carry out the provisions of this Section. Unless otherwise specified by the Company, legends placed
on such certificates may include, but shall not be limited to, the following:

 

“THE SECURITIES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED
OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN
ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT.”

 

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10.         COMPLIANCE
WITH SECTION 409A. The Parties intend that any election, payment, or benefit which is made or provided pursuant to or in
connection with this Agreement that may result in or relate to the deferral of compensation within the meaning of Section 409A
of the Code (“Section 409A Deferred Compensation”) shall comply in all respects with the applicable requirements
of Section 409A of the Code (including applicable regulations or other administrative guidance thereunder, as determined by
the Board in good faith) to avoid the unfavorable tax consequences provided therein for non-compliance. In connection with compliance
with Section 409A of the Code, the following shall apply:

 

10.1         Separation
from Service; Required Delay in Payment to Specified Grantee. Notwithstanding anything set forth herein to the contrary,
no amount payable pursuant to this Agreement on account of the Grantee’s end of Service which constitutes Section 409A
Deferred Compensation shall be paid unless and until the Grantee has incurred a “separation from service” within the
meaning of Section 409A of the Code. Furthermore, to the extent that the Grantee is a “specified employee” within
the meaning of the Section 409A as of the date of the Grantee’s separation from service, no amount that constitutes
a deferral of compensation which is payable on account of the Grantee’s separation from service shall be paid to the Grantee
before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of
the Grantee’s separation from service or, if earlier, the date of the Grantee’s death following such separation from
service. All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated
and paid on the Delayed Payment Date.

 

10.2         Other
Changes in Time of Payment. Neither the Grantee nor the Company shall take any action to accelerate or delay the payment
of any benefits under this Agreement in any manner which would not be in compliance with Section 409A of the Code.

 

10.3         Amendments
to Comply with Section 409A; Indemnification. Notwithstanding any other provision of this Agreement to the contrary,
the Company is authorized to amend this Agreement, to void or amend any election made by the Grantee under this Agreement and/or
to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by the Company, in its
discretion, to be necessary or appropriate to comply with Section 409A of the Code without prior notice to or consent of the
Grantee. The Grantee hereby releases and holds harmless the Company, its directors, officers and stockholders from any and all
claims that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the
Grantee in connection with this Agreement, including as a result of the application of Section 409A of the Code.

 

10.4         Advice
of Independent Tax Advisor. The Company has not obtained a tax ruling or other confirmation from the Internal Revenue
Service with regard to the application of Section 409A to this Agreement, and the Company does not represent or warrant that
this Agreement will avoid adverse tax consequences to the Grantee, including as a result of the application of Section 409A
of the Code. The Grantee hereby acknowledges that he or she has been advised to seek the advice of his or her own independent tax
advisor prior to entering into this Agreement and is not relying upon any representations of the Company or any of its agents as
to the effect of or the advisability of entering into this Agreement.

 

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11.         ADMINISTRATION.
All questions of interpretation concerning this Agreement or any other form of agreement or other document employed by the
Company in the administration of this Agreement shall be determined by the Board. All such determinations by the Board shall be
final, binding and conclusive upon all persons having an interest in this Agreement, unless fraudulent or made in bad faith. Any
and all actions, decisions, and determinations taken or made by the Board in the exercise of its discretion pursuant to this Agreement
or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be
final, binding, and conclusive upon all persons having an interest in this Agreement. Any officer of the Company shall have the
authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility
of or which is allocated to the Company herein, provided the officer has apparent authority with respect to such matter, right,
obligation, or election.

 

12.         REPRESENTATIONS
AND WARRANTIES OF THE GRANTEE. In connection with the acquisition of securities pursuant to this Agreement, the Grantee
hereby agrees, represents, and warrants as follows:

 

12.1         Investment
Intent. The Grantee is acquiring shares of Stock pursuant to this Agreement solely for the Grantee’s own account
for investment and not with a view to or for sale in connection with any distribution of the shares or any portion thereof and
not with any present intention of selling, offering to sell or otherwise disposing of or distributing the shares or any portion
thereof in any transaction other than a transaction exempt from registration under the Securities Act. The Grantee further represents
that the entire legal and beneficial interest of the shares is being acquired, and will be held, for the account of the Grantee
only and neither in whole nor in part for any other person.

 

12.2         Absence
of Solicitation. The Grantee was not presented with or solicited by any form of general solicitation or general advertising,
including, but not limited to, any advertisement, article, notice, or other communication published in any newspaper, magazine,
or similar media, or broadcast over television, radio or similar communications media, or presented at any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising.

 

12.3         Capacity
to Protect Interests. The Grantee has either (a) a preexisting personal or business relationship with the Company
or any of its officers, directors, or controlling persons, consisting of personal or business contacts of a nature and duration
to enable the Grantee to be aware of the character, business acumen and general business and financial circumstances of the person
with whom such relationship exists, or (b) such knowledge and experience in financial and business matters (or has relied
on the financial and business knowledge and experience of the Grantee’s professional advisor who is unaffiliated with and
who is not, directly or indirectly, compensated by the Company or any affiliate or selling agent of the Company) as to make the
Grantee capable of evaluating the merits and risks of the investment in shares acquired pursuant to this Agreement and to protect
the Grantee’s own interests in the transaction, or (c) both such relationship and such knowledge and experience.

 

    	 	10	 

     

    

 

12.4         Restricted
Securities. The Grantee understands and acknowledges that:

 

(a)          The
issuance to Grantee of shares pursuant to this Agreement has not been registered under the Securities Act, and the shares must
be held indefinitely unless a transfer of the shares is subsequently registered under the Securities Act or an exemption from such
registration is available, and that the Company is under no obligation to register the shares; and

 

(b)          The
Company will make a notation in its records of the aforementioned restrictions on transfer and legends.

 

12.5         Disposition
Under Rule 144. The Grantee understands that if the shares acquired pursuant to this Agreement are not registered
prior to the Company’s issuance of such shares, the share will be restricted securities within the meaning of Rule 144 promulgated
under the Securities Act (“Rule 144”). In addition, Grantee understands that he is an “affiliate”
for purposes of Rule 144, and as such, remains subject to the “affiliate” restrictions set forth in Rule 144. As a
result, Grantee understands and agrees that any future transfers of the Stock must be conducted in compliance with Rule 144.

 

12.6         Reliance
by the Company. The Grantee understands that the shares acquired pursuant to this Agreement have not been registered
under the Securities Act or under applicable state securities laws by reason of specific exemptions therefrom, which exemptions
may depend upon, among other things, the bona fide nature of the Grantee’s representations as expressed herein. The Grantee
understands that the Company is relying on the Grantee’s representations and warrants that the Company is entitled to rely
on such representations and that such reliance is reasonable.

 

		13.	ADDITIONAL PROVISIONS.

 

13.1         Executed
Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together shall be considered
one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the event that any signature
is delivered by Fax or by E-Mail, such signature shall create a valid and binding obligation of that Party (or on whose behalf
such signature is executed) with the same force and effect as an original thereof. Any photographic, photocopy, or similar reproduction
copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be considered for all purposes
as if it were an executed counterpart of this Agreement.

 

13.2         Enforcement.
The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed that the Parties shall be entitled
to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. The remedies of the
Parties under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

 

13.3         Waiver.
No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition of this Agreement or
to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other covenant, duty, agreement,
or condition.

 

    	 	11	 

     

    

 

13.4         Recovery
of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret the provisions
of this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees, costs, and expenses (including expert
witness fees) of the prevailing Party in such amount as the court shall determine. In addition, such non-prevailing Party shall
pay reasonable attorneys’ fees incurred by the prevailing Party in enforcing, or on appeal from, a judgment in favor of the
prevailing Party. The preceding sentence is intended by the Parties to be severable from the other provisions of this Agreement
and to survive and not be merged into such judgment.

 

13.5         Termination
or Amendment. The Board may terminate or amend this Agreement at any time; provided, however, no such termination
or amendment may adversely affect the Grantee’s rights under this Agreement without the consent of the Grantee unless such
termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A
of the Code. No amendment or addition to this Agreement shall be effective unless in writing.

 

13.6         Nontransferability
of Units. Prior to the issuance of shares of Stock on the applicable Settlement Date, neither this Agreement nor any
Units subject to this Agreement shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Grantee or the Grantee’s beneficiary, except transfer by will or
by the laws of descent and distribution. All rights with respect to this Agreement shall be exercisable during the Grantee’s
lifetime only by the Grantee or the Grantee’s guardian or legal representative.

 

13.7         Further
Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information; (ii) to
execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another Party
may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall be
required to incur any material expense or potential exposure to legal liability pursuant to this Section 13.7.

 

13.8         Notices.

 

13.8.1.          Method
and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic Transmission,
by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be deemed given (a)
if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt of same; (c)
if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified mail, postage
prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

13.8.2.          Consent
to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for communications
and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a communication
(i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient on record with
the sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that may thereafter
be rendered into clearly legible tangible form.

 

13.8.3.          Address
Changes. Any party may alter the Fax number, E-Mail address, physical address, or postage address to which communications
or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the provisions of this
Section 13.11.

 

    	 	12	 

     

    

 

13.9         Best
Efforts. Each Party shall cooperate in good faith with the other Parties generally, and in particular, the Parties shall
use and exercise their best efforts, taking all reasonable, ordinary and necessary measures to ensure an orderly and smooth relationship
under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences or problems which
may arise in the future. However, the obligations under this Section 13.9 shall not include any obligation to incur substantial
expense or liability.

 

XIV

EXECUTION

 

IN WITNESS WHEREOF,
this RESTRICTED STOCK UNITS AGREEMENT has been duly executed by the Parties in Orange County, California, and shall be effective
as of and on the Grant Date. The Company hereby represents and warrants that it (i) has the requisite power and authority to enter
into and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder; and, (ii) it
is duly authorized and empowered to execute and deliver this Agreement.

 

	 	NUGENE:
	 	 
	 	NUGENE INTERNATIONAL, INC.,
	 	a Nevada corporation 

 

	 	BY:	/s/ M. Saeed Kharazmi

 

	 	NAME:  M. Saeed Kharami
	 	 
	 	TITLE:  CFO/Secretary
	 	 
	 	DATED:  22 September 2016

 

XV

ACCEPTANCE

 

The Grantee represents
that the Grantee has read and is familiar with the terms and provisions of this Agreement and hereby accepts the Award subject
to all of the terms and provisions hereof. The Grantee hereby agrees to accept as binding, conclusive, and final all decisions
or interpretations of the Board of Directors of the Company upon any questions arising under this Agreement.

 

	DATED: 22 September 2016	/s/ Ali Kharzmi
	 	ALI KHARAZMI

 

    	 	13Exhibit 10.4

 

	
         

        EXECUTIVE EMPLOYMENT AGREEMENT

         

 

M. SAEED KHARAZMI

 

and

 

NUGENE INTERNATIONAL, INC.

 

22 September 2016

 

     

     

    

 

	EXECUTIVE EMPLOYMENT AGREEMENT

 

I

PARTIES

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) is entered into effective as of the 22nd day of September, 2016 (the
“Effective Date”), by and between M. SAEED KHARAZMI, a California corporation (“Kharazmi”);
and, NUGENE INTERNATIONAL, INC., a Nevada corporation (“NuGene”). Kharazmi and NuGene are sometimes
referred to collectively herein as the “Parties”, and each individually as a “Party”.

 

II

RECITALS

 

A.           NuGene
desires assurance of the continued association and services of Kharazmi in order to retain his experience, skills, abilities,
background, and knowledge, and it desires to continue to have Kharazmi serve as NuGene’s chief medical officer (“CMO”)
and as the Vice-Chairman of NuGene’s Board of Directors (the “Board”) on the terms and conditions set
forth herein.

 

B.           Kharazmi
desires to continue to serve as the CMO and the Vice-Chairman of the Board of NuGene, and is willing to accept such continued
service on the terms and conditions set forth in this Agreement.

 

C.           NuGene
and Kharazmi desire to, among other things, provide for benefits payable to Kharazmi upon certain events and reflect the application
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the benefits that may
be provided to Kharazmi hereunder..

 

D.           NOW,
THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

III

APPOINTMENT

 

3.1          Position
and Duties. NuGene hereby appoints Kharazmi to serve as the CMO and the Vice-Chairman of the Board. As the CMO, Kharazmi
shall oversee all aspects of NuGene’s products from a medical perspective. As Vice-Chairman of the Board, Kharazmi shall
perform all functions of the Chairman of the Board when the Chairman is unable or unavailable to act, and shall perform all duties
and functions required of all other members of the Board.

 

3.2          Policies
and Practices. The appointment of Kharazmi hereunder shall be further governed by the policies and practices established
from time to time by the Board. In the event of any inconsistencies or conflict between this Agreement and such policies and practices,
the terms and conditions of this Agreement shall control.

 

3.3          Location. Kharazmi
will perform his duties at NuGene’s main production facility, as well as remotely when possible to effectively discharge
his duties as the CMO. As CMO and Vice-Chairman, Kharazmi shall attend and participate in meetings via teleconference, videoconference,
or in person, and will consult with other members of the Board regularly and as necessary via telephone, electronic mail, or other
forms of correspondence.

 

    	 	1	 

     

    

  

3.4          Loyal and Conscientious Performance.
Kharazmi will devote that amount of time reasonably necessary to effectively perform his duties hereunder, and will not take any
action that would directly or indirectly promote any competitor or impair the interests of NuGene. Subject to the foregoing, Kharazmi
may engage in other business or charitable activities to the extent that they do not interfere or create a conflict with his contractual
obligations hereunder and the fiduciary obligations of as a member of the Board. Kharazmi agrees that Kharazmi does not presently
perform, and will not perform during the Term, consulting or other services for companies whose businesses are or would be, in
any material way, competitive with NuGene.

 

IV

TERM AND TERMINATION

 

4.1          Term.

 

4.1.1.          Initial
Term. The Term of this Agreement shall commence on the 22nd day of September, 2016, and shall continue for a
period of thirty-six (36) months, unless sooner terminated as provided for herein (the “Initial Term”).

 

4.1.1.          Renewal
Term. This Agreement shall remain in full force and effect and shall renew for an additional thirty-six (36) month period
(referred to as a “Renewal Term”), provided that neither Party at least ninety (90) days prior to the end of
Initial Term gives written notice to the other of its intent to have the Agreement not remain in full force and effect for the
Renewal Term.

 

4.1.2.          Term
Defined. For purposes of this Agreement, the word “Term” shall specifically include the Initial Term and the
Renewal Term hereunder.

 

4.2          Resignation
by Kharazmi. Kharazmi may terminate this Agreement and resign from all positions with NuGene at any time, for any
reason or no reason, with or without Cause, by providing the Board 30-days advance written notice. Thereafter, all obligations
of NuGene and Kharazmi under this Agreement shall cease except that Kharazmi will be entitled to all compensation earned through
the effective date of his resignation as well as any separation compensation and benefits provided in Articles V and VI, below,
as applicable.

 

4.3          No
Removal by the Board Without Cause. The Board may remove Kharazmi from any or all of his positions with NuGene
only for Cause and for no other reason. Any attempt by the Board to remove Kharazmi other than Cause shall be null and void and
all obligations of the Parties hereunder shall remain in full force and effect.

 

4.4          Removal
by the Board for Cause. The Board may terminate this Agreement and remove Kharazmi at any time for Cause upon
30-days prior written notice to Kharazmi explaining the Cause, provided that Kharazmi does not cease the conduct constituting Cause
prior to the expiration of such thirty 30-day period. Thereafter, all obligations of NuGene and Kharazmi under this Agreement shall
cease except that Kharazmi will be entitled to all compensation earned through the effective date of his removal for Cause as well
as any separation compensation and benefits provided in Articles V and VI, below, as applicable.

 

4.5          Removal
Due to Death or Complete Disability. If Kharazmi dies or suffers a Complete Disability (as defined below)
during the Term, Kharazmi’s services hereunder shall automatically terminate upon such death or Complete Disability. Thereafter,
all obligations of NuGene under this Agreement shall cease except that Kharazmi or Kharazmi’s heirs will be entitled to
all compensation earned through the effective date of resignation as well as any separation compensation and benefits provided
in Articles V and VI, below, as applicable.

 

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

 

    	 	2	 

     

    

  

4.6.1.         Cause. “Cause”
shall mean that one or more of the following has occurred: (i) Kharazmi has been convicted for, or entered a plea of guilty
or nolo contendere to, a felony crime involving fraud, dishonesty, or violence (under the laws of the United States or any relevant
state, in the circumstances, thereof); (ii) Kharazmi has intentionally or willfully engaged in material acts of fraud, dishonesty,
or gross misconduct that have a material adverse effect on NuGene; (iii) the willful failure or refusal of Kharazmi to carry
out the lawful directions of the Board (determined by a majority of the then serving directors other than Kharazmi) or the duties
assigned to Kharazmi by the Board, which are not otherwise inconsistent with this Agreement; (iv) any material violation by
Kharazmi of any written policy applicable to Kharazmi; or, (v) any material breach by Kharazmi of any provision of this Agreement
or any other Agreement between NuGene and Kharazmi. However, notwithstanding the foregoing, the termination of Kharazmi’s
services shall be subject to the 30-day period referenced in Section 4.4, above, to correct the breach or failure or refusal. During
this 30-day notice period, Kharazmi will be afforded the opportunity to make a presentation to the Board regarding the matters
referred to in the notice.

 

4.6.2.          Complete
Disability. “Complete Disability” shall mean the inability of Kharazmi to perform his duties under
this Agreement because Kharazmi has become permanently disabled within the meaning of any policy of disability income insurance
covering employees of NuGene then in force. In the event NuGene has no policy of disability income insurance covering employees
of NuGene in force when Kharazmi becomes disabled, the term Complete Disability shall mean the inability of Kharazmi to perform
his duties under this Agreement by reason of any incapacity, physical or mental, which the Board (based on a majority vote of the
directors then serving other than Kharazmi), based upon medical advice or an opinion provided by a licensed physician acceptable
to the Board, determines to have incapacitated Kharazmi from satisfactorily performing Kharazmi’s usual services for NuGene
for a period of at least one hundred twenty (120) consecutive days during any 12-month period.

 

V

COMPENSATION

 

5.1          Base
Compensation. During and throughout the Term NuGene shall pay Kharazmi Ten Thousand Dollars ($10,000) per month (the “Base
Compensation”), payable in accordance with NuGene’s policy for payments to its employees.

 

5.2          Annual
Discretionary Bonuses. In addition to the Base Compensation, Kharazmi will be eligible to receive annual and periodic
bonuses in such amounts and upon such terms as may be determined from time to time by the Board.

 

5.3          Reductions
to Base Compensation. The Base Compensation may be reduced only by mutual written agreement of Kharazmi and NuGene.

 

5.4          Withholding
Taxes. It is the express intent of the Parties, and Kharazmi understands and agrees, that Kharazmi is an independent
contractor and not an employee of NuGene. As a result, NuGene will not make deductions for taxes from any amounts payable to Kharazmi
as a result of his services to NuGene or as a result of the vesting or settlement of any equity-based awards (except as otherwise
required by applicable law or regulation). Any taxes imposed on Kharazmi due to his services to NuGene (including upon the issuance,
vesting and settlement of any equity-based awards) will be the sole responsibility of Kharazmi.

 

5.5          Stock
Awards.

 

5.5.1.          Restricted
Stock Unit Grant. As an inducement to Kharazmi’s agreement to serve hereunder, Kharazmi will be granted an award
consisting of two million (2,000,000) Restricted Stock Units. The terms and conditions for the Restricted Stock Units are
contained in the Restricted Stock Units Agreement executed concurrently with this Agreement.

 

    	 	3	 

     

    

  

5.5.2.          Warrants.
As a further inducement to Kharazmi’s agreement to serve hereunder, Kharazmi will be granted Warrants to acquire the common
stock of NuGene. The terms and conditions for the Warrants are contained in the Warrant Agreement executed concurrently with this
Agreement.

 

5.5.3.          Additional
Stock Awards. In addition, NuGene may grant Kharazmi additional stock awards at such times and on such terms
as may be decided from time to time by the Board or its Compensation Committee, in its sole discretion.

 

5.6          Expenses.

 

5.6.1.          Ordinary
Business Expenses. Kharazmi is authorized to incur reasonable expenses in the conduct of his services to NuGene as
CMO, including expenses for meals, travel, and other similar items. NuGene shall prepay or reimburse Kharazmi for all such expenses.

 

5.6.2.          Expense
Prepayment and Reimbursement Procedures. All prepayments and reimbursements of Kharazmi’s expenses pursuant
to this Section 5.6 are subject to Kharazmi’s provision of invoices, an itemized accounting, or other appropriate documentation
evidencing such expenses no later than three (3) months following the date such expenses were incurred. Any reimbursement
payment shall be made by NuGene as soon as practicable following its receipt of such documentation, but in no event later than
the end of Kharazmi’s taxable year following the year in which Kharazmi incurred such expenses.

 

5.7          Indemnification. NuGene
shall indemnify Kharazmi to the fullest extent permitted by NuGene’s Bylaws and applicable Nevada law. The Parties further
agree that all liabilities incurred by Kharazmi in his capacity as CMO or Vice-Chairman shall be incurred for the account of NuGene,
and Kharazmi shall not be personally liable therefore. Kharazmi shall not be liable to NuGene, or any of its respective subsidiaries,
affiliates, employees, officers, directors, agents, representatives, successors, assigns, stockholders, and their respective subsidiaries
and affiliates, and NuGene shall, and hereby agrees to, indemnify, defend and hold Kharazmi harmless from and against any and
all damages and/or loss or liability (including, without limitation, all cost of defense thereof), for any acts or omissions in
the performance of service under and within the scope of this Agreement on the part of Kharazmi, other than for acts which are
deemed to be grossly negligent or criminal in nature.

 

5.8          Insurance. As
soon as practicable, NuGene shall maintain an insurance policy or policies providing officers and directors’ liability insurance
and shall include Kharazmi as an insured under the officers and directors liability insurance policy, with coverage to be in an
amount determined by the Board. Said coverage shall also specifically encompass all prior acts regarding NuGene and shall provide
coverage to Kharazmi after termination of this Agreement for all time periods prior to termination of the Agreement. This Section
5.8 shall expressly survive the termination of this Agreement.

 

VI

CHANGE OF CONTROL TERMINATION BENEFITS

 

6.1          Change
of Control Benefits. In the event that within twelve (12) months following a Change of Control either: (i) Kharazmi
is removed from any of his positions with NuGene without Cause; or, (ii)  Kharazmi resigns any of his positions with NuGene,
then NuGene shall provide Kharazmi with a single lump sum payment equal to the greater of (i) the amount of Base Compensation remaining
over the remainder of the Term (limited to the Initial Term or the Renewal Term, as applicable); or, two hundred percent (200%) of
the annual Base Compensation then in effect, to be paid within thirty (30) days after the Change in Control.

 

    	 	4	 

     

    

 

 6.2          Change
of Control Defined. “Change of Control” means the occurrence of any of the following events: (i) the
closing of the sale, transfer or other disposition of all or substantially all of NuGene’s assets or the exclusive license
of substantially all of the intellectual property of NuGene material to the business of NuGene resulting in NuGene being unable
to continue its business as in effect prior to such license; provided, however, that a mortgage, pledge or grant of a security
interest to a bona fide lender shall not by itself constitute a Change of Control; (ii) the consummation of a merger or consolidation
of NuGene with or into another entity in which the stockholders of NuGene exchange their shares of capital stock of NuGene for
cash, stock, property, or other consideration (except one in which the stockholders of NuGene as constituted immediately prior
to such transaction continue to hold after the transaction at least 50% of the voting power of the capital stock of NuGene or
the surviving or acquiring entity or parent entity of the surviving or acquiring entity); (iii) any “person,”
as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder (the “Exchange Act”) (other than (a) a trustee or other fiduciary holding securities under an employee
benefit plan of NuGene, (b) a corporation owned, directly or indirectly, by the stockholders of NuGene in substantially the
same proportions as their ownership of stock of NuGene or (c) any current beneficial stockholder or group, as defined by
Rule 13d-5 of the Exchange Act, including the heirs, assigns and successors thereof, of beneficial ownership, within the meaning
of Rule 13d 3 of the Exchange Act, of securities possessing more than 20% of the total combined voting power of NuGene’s
outstanding securities) hereafter becomes the “beneficial owner,” as defined in Rule 13d 3 of the Exchange Act, directly
or indirectly, of securities of NuGene representing 35% or more of the total combined voting power represented by NuGene’s
then outstanding voting securities; or, (iv) individuals who, as of sixty (60) days after the Effective Date of this
Agreement are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board
member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member
shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; provided further, however, that a transaction
under clauses (ii) or (iii) above shall not constitute a Change of Control: (A) if its primary purpose is to change
the state of NuGene’s incorporation, (B) if its primary purpose is to create a holding company that will be owned in
substantially the same proportions by the persons who held NuGene’s securities immediately prior to such transaction, or
(C) if it is a bona fide equity financing in which NuGene is the surviving corporation.

 

VII

TAX TREATMENT

 

7.1          Certain
Payments. Notwithstanding anything contained in this Agreement to the contrary, to the extent that any payment or benefit
(within the meaning of Section 280G(b)(2) of the Code) to Kharazmi or for Kharazmi’s benefit, paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, Kharazmi’s
services to NuGene or a Change of Control (a “Payment” or “Payments”), would be subject to the
excise tax imposed under Code Section 4999, or any interest or penalties are incurred by Kharazmi with respect to such excise
tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise
Tax”), the Payments shall be reduced (but not below zero) if and to the extent that a reduction in the Payments would
result in Kharazmi retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes
and the Excise Tax), than if Kharazmi received all of the Payments (any such reduced amount is hereinafter referred to as the
“Limited Payment Amount”). NuGene shall reduce or eliminate the Payments by (i) first reducing or eliminating
those payments which are payable in cash; and, then (ii) by reducing or eliminating acceleration of stock options, in reverse
order beginning with the options that but for the acceleration would have vested the farthest in time from the Determination (as
defined below).

 

7.2          Determination.
An initial determination as to whether the Payments shall be reduced to the Limited Payment Amount and the amount of such Limited
Payment Amount shall be made, at NuGene’s expense, by the accounting firm that is NuGene’s independent accounting
firm as of the date of the Change of Control (the “Accounting Firm”). The Accounting Firm shall provide its
determination (the “Determination”), together with detailed supporting calculations and documentation, to NuGene
and Kharazmi within five (5) days of the termination date, if applicable, or such other time as requested by NuGene or by
Kharazmi (provided Kharazmi reasonably believes that any of the Payments may be subject to the Excise Tax) and, if the Accounting
Firm determines that no Excise Tax is payable by Kharazmi with respect to a Payment or Payments, it shall furnish Kharazmi with
an opinion reasonably acceptable to Kharazmi that no Excise Tax will be imposed with respect to any such Payment or Payments.
Within ten (10) days of the delivery of the Determination to Kharazmi, Kharazmi shall have the right to dispute the Determination
(the “Dispute”). If there is no Dispute, the Determination shall be binding, final and conclusive upon NuGene
and Kharazmi, subject to the application of Section 7.3 below.

 

    	 	5	 

     

    

  

7.3          Excess
Payments and Underpayments. As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, it
is possible that the Payments actually made to, or provided for the benefit of, Kharazmi either will be greater (an “Excess
Payment”) or less (an “Underpayment”) than the proper Limited Payment Amount provided for in Section 7.1,
above.

 

7.3.1.          Excess
Payment. If it is established, pursuant to a final and conclusive determination of a court or the Internal
Revenue Service (the “IRS”) that an Excess Payment has been made, Kharazmi must repay such Excess Payment to
NuGene; provided, that no Excess Payment will be repaid by Kharazmi to NuGene unless, and only to the extent that, the repayment
would either reduce the amount on which Kharazmi is subject to tax under Code Section 4999 or generate a refund of tax imposed
under Code Section 4999.

 

7.3.2.          Underpayment.
In the event that it is determined by (i) the Accounting Firm, NuGene (which shall include the position taken by NuGene, or
together with its consolidated group, on its federal income tax return) or the IRS, or (ii) pursuant to a determination by
a court, or (iii) upon the resolution to Kharazmi’s satisfaction of the Dispute, that an Underpayment has occurred,
NuGene shall pay an amount equal to the Underpayment to Kharazmi within ten (10) days of such determination or resolution,
together with interest on such amount at the applicable federal rate under Code Section 7872(f)(2) from the date such amount
would have been paid to Kharazmi until the date of payment.

 

7.4          Code Section 409A.

 

7.4.1.          Severance
Benefits. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Agreement
(the “Severance Benefits”) that constitute “deferred compensation” within the meaning of Section 409A
of the Code and the regulations and other guidance thereunder or any state law of similar effect (collectively “Section
409A”) and that are not exempt from Section 409A shall not commence in connection with Kharazmi’s termination
of employment unless and until Kharazmi has also incurred a “separation from service” (as such term is defined in Treasury
Regulation Section 1.409A-1(h) (“Separation From Service”). For purposes of Section 409A, each payment
provided in Article VI, above, will be treated as a separate payment.

 

7.4.2.          Exemptions.
For the avoidance of doubt, it is intended that payments of the Severance Benefits set forth in this Agreement satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections
1.409A-1(b)(4) [short-term deferral], 1.409A-1(b)(5) [stock options] and 1.409A-1(b)(9) [separation pay]. However, if NuGene (or,
if applicable, the successor entity thereto) determines that a Severance Benefit constitutes “deferred compensation”
under Section 409A and Kharazmi is, on Kharazmi’s Separation From Service, a “specified employee” of NuGene
or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code and the Treasury regulations,
then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A,
the timing of the Severance Benefit payment shall be delayed until the earlier to occur of: (i) the date that is six months
and one day after Kharazmi’s Separation From Service; or (ii) the date of Kharazmi’s death (such applicable date,
the “Specified Employee Initial Payment Date”). On the Specified Employee Initial Payment Date, NuGene (or the
successor entity thereto, as applicable) shall pay to Kharazmi a lump sum amount equal to the Severance Benefit payment that Kharazmi
would otherwise have received through the Specified Employee Initial Payment Date if the payment of the Severance Benefits had
not been so delayed pursuant to this Section. The Severance Benefits are intended to qualify for an exemption from application
of Section 409A or to comply with its requirements to the extent necessary to avoid adverse personal tax consequences under
Section 409A, and this Agreement shall be interpreted accordingly.

 

    	 	6	 

     

    

  

VIII

CONFIDENTIAL INFORMATION AND RELATED
COVENANTS

 

8.1          Trade
Secrets Covenants. Kharazmi shall not at any time, whether during or subsequent to the Term, unless specifically consented
to in writing by NuGene, either directly or indirectly use, divulge, disclose or communicate to any person, firm, or corporation,
in any manner whatsoever, any confidential information concerning any matters affecting or relating to the business of NuGene,
including, but not limited to, the names, buying habits, or practices of any of its customers, its’ marketing methods and
related data, the names of any of its vendors or suppliers, costs of materials, the prices it obtains or has obtained or at which
it sells or has sold its products or services, manufacturing and sales, costs, lists or other written records used in NuGene’s
business, compensation paid to employees and other terms of employment, or any other confidential information of, about or concerning
the business of NuGene, its manner of operation, or other confidential data of any kind, nature, or description. The Parties hereby
stipulate that as between them, the foregoing matters are important, material, and confidential trade secrets and affect the successful
conduct of NuGene’s business and its goodwill, and that any breach of any term of this Section 8.1 is a material breach
of this Agreement.

 

8.2          Customer
Accounts Covenants. As used herein, the term “Customer Accounts” shall mean all accounts, clients,
customers, and the like of NuGene and its affiliates, subsidiaries, licensees, and business associations, whether now existing
or hereafter developed or acquired, including any and all accounts developed or acquired by or through the efforts of Kharazmi.
During and through the Term and continuing for a period of thirty-six (36) months immediately following the termination of Kharazmi,
Kharazmi shall not directly or indirectly make known to any person, firm, corporation or entity the names or addresses of any
of the Customer Accounts or any other information pertaining to them. During this same time period, Kharazmi shall not, directly
or indirectly, for Kharazmi or any other person, firm, corporation or entity, divert, take away, call on or solicit, or attempt
to divert, take away, call on or solicit, any of the Customer Accounts, including but not limited to those Customer Accounts which
Kharazmi called or with whom Kharazmi became acquainted during Kharazmi’s employment with NuGene.

 

8.3          Employees
Covenant. During and through the Term of this Agreement and continuing for a period of thirty-six (36) months immediately
following Kharazmi’s termination, Kharazmi shall not, directly or indirectly, cause or induce, or attempt to cause or induce,
any employee of NuGene to terminate his or her employment with NuGene, as such employment exists at any time following the execution
of this Agreement.

 

8.4          Books
and Records. All equipment, notebooks, documents, memoranda, reports, files, samples, books, correspondence, lists, computer
disks and data bases, computer programs and reports, computer software, and all other written, graphic and computer generated
or stored records affecting or relating to the business of NuGene which Kharazmi shall prepare, use, construct, observe, possess,
or control shall be and remain the sole and exclusive property of NuGene, and shall constitute trade secret information of NuGene.
Within five (5) days of the termination of Kharazmi, Kharazmi shall promptly deliver to NuGene all such equipment, notebooks,
documents, memoranda, reports, files, samples, books, correspondence, lists, computer disks and data bases, computer programs
and reports, computer software, and all other written, graphic and computer generated or stored records relating to the business
of NuGene which are or have been in the possession or under the control of Kharazmi.

 

8.5          Advertising
Waiver. During the Term Kharazmi agrees to permit NuGene and/or its affiliates, and persons or other organizations authorized
by the NuGene and/or its affiliates, to use, publish, and distribute advertising or sales promotional literature concerning the
products and/or services of NuGene and/or its affiliates, or the machinery and equipment used in the provision thereof, in which
Kharazmi’s name and/or pictures of Kharazmi taken in the course of Kharazmi’s provision of services to the NuGene
and/or its affiliates, appear. Kharazmi hereby waives and releases any claim or right Kharazmi may otherwise have arising out
of such use, publication, or distribution.

 

    	 	7	 

     

    

 

 

8.6          Injunctive
Relief. Kharazmi acknowledges that if Kharazmi violates any of the provisions of this Article VIII, it will be difficult
to determine the amount of damages resulting to NuGene. In addition to any other remedies which it may have, NuGene shall also
be entitled to temporary and permanent injunctive relief without the necessity of proving actual damages.

 

8.7          Enforcement
of Covenants. It is the desire and intent of the Parties that the provisions of this Article VIII shall be enforced to
the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular portion of this Article VIII shall be adjudicated to be invalid or unenforceable, this Article
VIII shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to
apply only with respect to the operation of this Article in the particular jurisdiction in which such adjudication is made.

 

IX

ADDITIONAL PROVISIONS

 

9.1          Executed
Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together shall be considered
one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the event that any signature
is delivered by Fax or by E-Mail, such signature shall create a valid and binding obligation of that Party (or on whose behalf
such signature is executed) with the same force and effect as an original thereof. Any photographic, photocopy, or similar reproduction
copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be considered for all purposes
as if it were an executed counterpart of this Agreement.

 

9.2          Entire
Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the entire agreement
and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly not relied upon
any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly set forth or referred
to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and negotiations between
the Parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or usage of the trade
inconsistent with any of the terms hereof.

 

9.3          Severability.
Each and every provision of this Agreement is severable and independent of any other term or provision of this Agreement. If any
term or provision hereof is held void or invalid for any reason by a court of competent jurisdiction, such invalidity shall not
affect the remainder of this Agreement.

 

9.4          Governing
Law. This Agreement shall be governed by the laws of the State of California, without giving effect to any choice or conflict
of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of California. If any court action is necessary to enforce the terms and conditions
of this Agreement, the Parties hereby agree that the Superior Court of California, County of Orange, shall be the sole jurisdiction
and venue for the bringing of such action.

 

9.5          Enforcement.
The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed that the Parties shall be entitled
to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. The remedies of the
Parties under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

 

9.6          Waiver.
No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition of this Agreement or
to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other covenant, duty, agreement,
or condition.

 

    	 	8	 

     

    

  

9.7          Recovery
of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret the provisions
of this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees and other costs and expenses including
expert witness fees of the prevailing Party in such amount as the court shall determine. In addition, such non-prevailing Party
shall pay reasonable attorneys’ fees incurred by the prevailing Party in enforcing, or on appeal from, a judgment in favor
of the prevailing Party. The preceding sentence is intended by the Parties to be severable from the other provisions of this Agreement
and to survive and not be merged into such judgment.

 

9.8          Recitals.
The facts recited in Article II, above, are hereby conclusively presumed to be true as between and affecting the Parties.

 

9.9          Amendment.
This Agreement may be amended or modified only by a writing signed by all Parties.

 

9.10        Assignment and Binding Effect.
This Agreement shall be binding upon and inure to the benefit of Kharazmi and Kharazmi’s heirs, executors, personal representatives,
assigns, administrators and legal representatives. Because of the unique and personal nature of Kharazmi’s duties under
this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be assignable by Kharazmi. This
Agreement shall be binding upon and inure to the benefit of NuGene and its successors, assigns and legal representatives. As a
condition to entering into an acquisition agreement, NuGene will require any acquirer or successor to assume its obligations under
this Agreement.

 

9.11        Provision
Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between the Parties,
and each Party has had the opportunity to be represented by independent legal counsel of its choice. This Agreement is the product
of the work and efforts of all Parties, and shall be deemed to have been drafted by all Parties. In the event of a dispute, no
Party shall be entitled to claim that any provision should be construed against any other Party by reason of the fact that it was
drafted by one particular Party.

 

9.12        Agreement
Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section, Subsection, Exhibit,
or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits and Schedules identified
in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

9.13        Consents,
Approvals, and Discretion. Except as herein expressly provided to the contrary, whenever this Agreement requires consent
or approval to be given by a Party, or a Party must or may exercise discretion, the Parties agree that such consent or approval
shall not be unreasonably withheld, conditioned, or delayed, and such discretion shall be reasonably exercised. Except as otherwise
provided herein, if no response to a consent or request for approval is provided within ten (10) days from the receipt of the
request, then the consent or approval shall be presumed to have been given.

 

9.14        Further
Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information; (ii) to
execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another Party
may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall
be required to incur any material expense or potential exposure to legal liability pursuant to this Section 9.14.

 

9.15        Notices.

 

9.15.1.          Method
and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic Transmission,
by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be deemed given (a)
if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt of same; (c)
if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified mail, postage
prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

    	 	9	 

     

    

  

9.15.2.          Consent
to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for communications
and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a communication (i)
delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient on record with the
sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that may thereafter be
rendered into clearly legible tangible form.

 

9.15.3.          Address
Changes. Any Party may alter the Fax number, E-Mail address, physical address, or postage address to which communications
or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the provisions of this
Section 9.15.

 

9.16        Best
Efforts. Each Party shall cooperate in good faith with the other Parties generally, and in particular, the Parties shall
use and exercise their best efforts, taking all reasonable, ordinary and necessary measures to ensure an orderly and smooth relationship
under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences or problems which
may arise in the future. However, the obligations under this Section 9.16 shall not include any obligation to incur substantial
expense or liability.

 

9.17        Definitional
Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically defined herein shall
have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each term stated either
in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears appropriate, the masculine,
feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”, “hereunder”,
and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and not to any particular provision
of this Agreement; (v) all references to “Dollars” or “$” shall be construed as being United States Dollars;
(vi) the term “including” is not limiting and means “including without limitation”; and, (vii) all references
to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed as a reference to such
statute, statutory provision, regulation, or similar administrative provision as in force at the date of this Agreement and as
may be subsequently amended.

 

X

EXECUTION

 

IN WITNESS WHEREOF,
this EXECUTIVE EMPLOYMENT AGREEMENT has been duly executed by the Parties in Orange County, California, and shall be effective
as of and on the Effective Date. Each of the undersigned Parties hereby represents and warrants that it (i) has the requisite power
and authority to enter into and carry out the terms and conditions of this Agreement, as well as all transactions contemplated
hereunder; and, (ii) it is duly authorized and empowered to execute and deliver this Agreement.

 

	KHARAZMI:	 	NUGENE:
	 	 	 
	 	 	NUGENE INTERNATIONAL, INC.,
	/s/ M. Saeed Kharazmi	 	a Nevada corporation 
	M. SAEED KHARAZMI 	 	 	 
	 	 	 	 
	DATED:  22 September 2016	BY:	  /s/ Ali Kharazmi
	 	 	 
	 	 	NAME:  	Ali Kharazmi
	 	 	 	 
	 	 	TITLE:  	Chairman
	 	 	 	 
	 	 	DATED:  	22 September 2016

 

    	 	10

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