Document:

Exhibit
10.2 

 

ELECTROMEDICAL
TECHNOLOGIES, INC.

 

Rule
10b5-1 Sales Plan  

(Stock
Only) 

 

NOTE: This
Sales Plan contains conditional limitations on the Seller’s ability to sell stock registered on Form

S-1 and receive dollar values from the sales of stock.

 

Sales
Plan dated January 9, 2020 (together with all Exhibits hereto, this “Sales Plan”) between Matthew Wolfson (“Seller”),
Glendale Securities (“Glendale”), Wilson Davis, Pacific Stock Transfer Company and ElectroMedical Technologies, Inc.
(“EMED” or “Issuer”), and Plan Administrator Mailander Law Office, Inc.

 

	 	A.	Recitals 

  

	 	1.	This
    Sales Plan is entered into between Seller, Seller’s brokerage firm Glendale, Glendale’s clearing firm Wilson Davis,
    EMED’s transfer agent Pacific Stock Transfer Company and EMED and its Plan Monitor and Administrator Mailander Law Office,
    Inc. for the purpose of establishing a trading plan that complies with the requirements of Rule 10b5-1(c)(1) under the Securities
    Exchange Act of 1934, as amended (the “Exchange Act”). 

 

	 	2.	Seller
    is establishing this Sales Plan in order to permit the orderly disposition of a portion of Seller’s holdings of EMED
    common stock, $0.001 par value (the “Stock”), which is currently trading on the OTC Markets OTCQB tier tier (“Principal
    Market”). This Sales Plan relates to a total of 2,000,000 shares of the Issuer’s common stock registered
    in an S-1 registration statement filed with the Securities and Exchange Commission on November 12, 2019. As of the date of
    this Sales Plan, the S-1 registration statement is not effective. Seller and Issuer intend that this Sales Plan apply to and
    be considered an exhibit to Issuer’s S-1/A. 

 

	 	B.	Seller’
    Representations, Warranties and Covenants 

 

	 	1.	As
    of the date hereof, Seller is not subject to any legal, regulatory, or contractual restriction or undertaking that would prevent
    him from entering into this Sales Plan or from conducting restricted trading in accordance with the Sales Plan. Seller is
    entering into this Sales Plan in good faith and not as part of a plan or scheme to evade compliance with the federal securities
    laws. 

 

	 	2.	The
    securities to be sold under this Sales Plan are beneficially owned by Seller and are not subject to any liens, security interests
    or other encumbrances or limitations on disposition other than those that may be imposed by the Securities Act. 

 

	 	3.	While
    this Sales Plan is in effect, Seller agrees to not enter into or alter any corresponding or hedging transaction or position
    with respect to the securities covered by this Sales Plan, unless this Sales Plan is modified or terminated in accordance
    with the terms hereof, and agrees not to alter or deviate from the terms of this Sales Plan. 

 

	 	4.	Seller agrees to: 

 

	 	a.	Provide EMED, Pacific
    Stock Transfer, Glendale and Wilson Davis with a certificate or certificates dated as of the date of this Sales Plan and signed
    by the Seller to this Sales Plan prior to commencement of the Plan Sales Period (as defined below). 

  

 

	 	b.	Notify Glendale’s
    Legal and Trading Departments as soon as practicable if Seller becomes aware of (i) the occurrence of any event contemplated
    by paragraph 3 of the certificate set forth as Exhibit A to this Sales Plan; (ii) a change in EMED’s
    insider trading policies, so that the sales to be made by Seller pursuant to the Sales Plan would violate these policies;
    or (iii) a determination by EMED’s board of directors or chief financial officer that purchases or sales pursuant
    to the Sales Plan would have a material adverse effect on the Issuer’s financial condition. In the case of a notice
    relating to clause (i) above, such notice shall indicate the anticipated duration of the restriction, but shall not include
    any other information about the nature of the restriction or its applicability to Seller and shall not in any way communicate
    any material nonpublic information about EMED or its securities to Glendale.

 

    1 

     

    

	 	5.	The
    execution and delivery of this Sales Plan by Seller and the transactions contemplated by this Sales Plan will not contravene
    any provision of applicable law or any agreement or other instrument binding on Seller or any judgment, order or decree of
    any governmental body, agency or court having jurisdiction over Seller.

 

	 	6.	Seller
    agrees with respect to the Stock subject to trading pursuant to this Sales Plan (“Stock”), that until this Sales
    Plan has been terminated, Seller shall not (i) enter into a binding contract with respect to the purchase or sale of
    Stock with another broker, dealer or financial institution (each, a “Financial Institution”), (ii) instruct
    another Financial Institution to purchase or sell Stock or (iii) adopt a plan for trading with respect to Stock other
    than this Sales Plan. Notwithstanding the foregoing, Seller shall notify EMED in connection with any sales of Stock of the
    Issuer prior to such sale.

 

	 	7.	Seller
    agrees that he  shall not, directly or indirectly, communicate any material, nonpublic information relating to the Stock
    or the Issuer to any employee of Glendale or its affiliates who are involved, directly or indirectly, in executing this Sales
    Plan at any time while this Sales Plan is in effect. 

 

	 	8.	Seller
    agrees: 

 

	 	a.	to
    make all filings, if any, required under the Exchange Act in a timely manner, to the extent any such filings are applicable
    to Seller. In order to promote compliance with such filing requirements, Glendale agrees to use reasonable efforts to transmit
    transaction information for open market transactions under this Sales Plan via email to EMED by the close of business on the
    day of any sale, and shall in any event transmit such information no later than the close of the business on the second business
    day after any sale. Emails with transaction information shall be sent to: 

-
Tad Mailander: tmailander@gmail.com, Plan Monitor and Administrator

 

	 	b.	that
    Seller shall at all times during the Plan Sales Period (as defined below), in connection with the performance of this Sales
    Plan, comply with all applicable laws, including, without limitation, Section 16 of the Exchange Act and the rules and
    regulations promulgated thereunder. 

 

	 	C.	Implementation
    of the Plan 

 

	 	1.	Seller
    hereby appoints Glendale to sell shares of Stock pursuant to the terms and conditions set forth below. Subject to such terms
    and conditions, Glendale hereby accepts such appointment. 

 

	 	2.	Seller
    and Glendale are authorized to begin selling Stock under this Sales Plan only after the following events occur: (a) Issuer’s
    S-1 registration statement is deemed effective by the Securities and Exchange Commission; and, (b) Forty-five days after the
    completion by the Issuer of the Direct Offering of 10,000,000 Shares of Common Stock being sold at $1.94 per share pursuant
    to the Primary Direct Offering disclosed in the S-1 registration statement. Glendale shall cease selling Stock on the earliest
    to occur of: (i) the date on which EMED is required to terminate sales under this Sales Plan pursuant to paragraph D.1.a
    below; (ii) the date on which EMED receives notice of the death of Seller; (iii) the date that EMED or any other
    person publicly announces a tender or exchange offer with respect to the Stock; (iv) the date of public announcement
    of a merger, acquisition, reorganization, recapitalization or comparable transaction affecting the securities of the Issuer
    as a result of which the Stock will be exchanged or converted into shares of another company; (v) the date on which EMED
    receives notice of the commencement of any proceedings in respect of or triggered by Seller’s bankruptcy or insolvency;
    (vi) the date on which EMED or Seller reasonably determines that the Sales Plan does not comply with Rule 10b5-1 or applicable
    securities laws; and (vii): 

 

    2 

     

    

	 	☐	                     (Date)
    at the close of the Principal Market. 

 

	 	☒	the date that the
    aggregate number of shares of Stock sold under this Sales Plan is 2,000,000 shares; 

 

	 	☐	The date every month
    that the aggregate proceeds of sales pursuant to this Sales Plan (after deducting commissions and other expenses of sale)
    reaches ______________. 

 

(the
period during which Seller are authorized to sell stock under this paragraph C.2 is referred to in this Sales Plan as the
“Plan Sales Period”).

 

	 	3.	Glendale
    and the Seller shall not sell Stock under this Sales Plan at any time when: 

 

	 	a.	EMED,
    in its sole discretion, has determined that a market disruption, banking moratorium, outbreak or escalation of hostilities
    or other crisis or calamity has occurred, or 

 

	 	b.	EMED,
    in its sole discretion, has determined that it is prohibited from doing so by a legal, contractual or regulatory restriction
    applicable to it or its affiliates or to Seller (other than any such restriction relating to Seller’s possession or
    alleged possession of material nonpublic information about the Issuer or the Stock), or 

 

	 	c.	EMED
    has received notice from the Issuer or Seller of the occurrence of any event contemplated by paragraph 3 of the certificate
    set forth as Exhibit A to this Sales Plan, or 

 

	 	d.	a
    sale effected under the Sales Plan fails to comply (or in the reasonable opinion of EMED and/or Glendale is not likely to
    comply) with Rule 144 of the Securities Act), or

 

	 	e.	EMED
    has received notice from Seller to terminate this Sales Plan in accordance with paragraph D.1 below. 

 

	 	f.	Seller
    and Glendale shall withdraw Stock from the Plan Account in order to effect sales of Stock under this Sales Plan. Glendale
    agrees to notify Seller promptly if at any time during the Plan Sales Period the number of shares of Stock in the Plan Account
    is less than the number of Plan Shares remaining to be sold under this Sales Plan. Upon such notification, Seller agrees to
    deliver promptly to the Plan Account the number of shares of Stock necessary to eliminate this shortfall. 

 

	 	g.	To
    the extent that any Stock remains in the Plan Account after the end of the Plan Sales Period or upon termination of this Sales
    Plan, Glendale agrees to return such Stock promptly to the Issuer’s transfer agent for re-legending to the extent that
    such Stock would then be subject to transfer restrictions in the hands of the Seller. 

 

	 	4.	Glendale
    shall in no event effect any sale under this Sales Plan if the Stock to be sold is not in the Plan Account. 

 

	 	5.	Seller
    and Glendale may sell Stock on the OTC Markets OTCQB tier trading tier or otherwise, but only once registered in the Issuer’s
    S-1 registration statement, and after forty five days after the Issuer has completed its direct offering under the S-1. 

 

	 	6.	Seller
    may instruct Glendale to sell or purchase other non-EMED shares of Stock other than pursuant to this Sales Plan. The parties
    hereto agree that any such sale or purchase transaction (i) will not be deemed to modify this Sales Plan unless Seller
    so requests in writing in accordance with paragraph D.1.d below and (ii) will be given by Seller to Glendale only if
    such transaction does not contravene any of the representations, warranties or covenants set forth in Section B of this Sales
    Plan. 

 

	 	D.	Amendment and
    Termination 

 

	 	1.	This
    Sales Plan may not be terminated prior to the end of the Plan Sales Period, except that: 

 

	 	a.	it
    may be terminated due to the death of the Seller.

 

    3 

     

    

	 	b.	it
    may be terminated pursuant to Paragraph C.3.a of this Sales Plan 

 

	

                                                   
	c.	it
    may be, at Glendale’s option, terminated if Glendale has received notice from the Issuer of the occurrence of any event
    contemplated by paragraph 3 of the certificate set forth as Exhibit A to this Sales Plan. 

 

	 	d.	Notwithstanding
    the provisions of paragraph D.1. herein, this Sales Plan may only be amended pursuant to the Issuer’s insider trading
    policy, as enacted.

 

	 	e.	This
    Plan may be amended by Seller only upon the written consent of EMED and receipt by EMED of the following documents, each dated
    as of the date of such amendment: 

 

	 	(i)	a
    representation signed by the Issuer substantially in the form of Exhibit A to this Sales Plan, 

 

	 	(ii)	a
    certificate signed by Seller certifying that the representations and warranties of Seller contained in this Sales Plan are
    true at and as of the date of such certificate as if made at and as of such date and 

 

	 	(iii)	a
    Seller’s Representation Letter completed and executed by Seller.

 

	 	E.	Indemnification;
    Limitation of Liability 

 

	 	1.	a. Seller
    agree to indemnify and hold harmless EMED and its directors, officers, employees and affiliates from and against all claims,
    losses, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection
    with defending or investigating any such action or claim) arising out of or attributable to EMED’s actions taken or
    not taken in compliance with this Sales Plan or arising out of or attributable to any breach by Seller of this Sales Plan
    (including Seller’s representations and warranties in this Sales Plan) or any violation by Seller of applicable laws
    or regulations; provided, however, that the indemnification provisions of this paragraph E.1.a shall not apply in the case
    of any claims, losses, damages or liabilities finally judicially determined to have resulted from EMED’s gross negligence
    or willful misconduct. This indemnification shall survive termination of this Sales Plan. 

 

	 	b.	Notwithstanding
    any other provision of this Sales Plan, neither party shall be liable to the other party for: 

 

	 	(i)	special,
    indirect, punitive, exemplary or consequential damages, or incidental losses or damages of any kind, even if advised of the
    possibility of such losses or damages or if such losses or damages could have been reasonably foreseen, or 

 

	 	(ii)	any
    failure to perform or to cease performance or any delay in performance that results from a cause or circumstance that is beyond
    its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common
    carrier or utility systems, severe weather, market disruptions or other causes commonly known as “acts of God.” 

 

	 	2.	Seller
    consulted with Seller’s own advisors as to the legal, tax, business, financial and related aspects of, and has not relied
    upon EMED or any person affiliated with EMED in connection with Seller’s adoption and implementation of this Sales Plan. 

 

	 	3.	Seller
    acknowledge and agree that in performing Seller’s obligations under this Sales Plan, neither EMED nor any of its affiliates
    nor any of their respective officers, employees or other representatives is exercising any discretionary authority or
    discretionary control respecting management of Seller’s assets, or exercising any authority or control respecting management
    or disposition of Seller’s assets, or otherwise acting as a fiduciary (within the meaning of Section 3(21) of the Employee
    Retirement Income Security Act of 1974, as amended, or Section 2510.3-21 of the Regulations promulgated by the United States
    Department of Labor) with respect to Seller’s assets. Without limiting the foregoing, Seller further acknowledges and
    agrees that neither EMED nor any of its affiliates nor any of their respective officers, employees or other representatives
    has provided any “investment advice” within the meaning of such provisions, and that no views expressed by any
    such person will serve as a primary basis for investment decisions with respect to Seller’s assets.

 

    4 

     

    

 

	 	F.	Agreement to
    Arbitrate Certain Disputes 

 

The
following disclosure is required by various regulatory bodies but should not limit the applicability of the following arbitration
provision to or in any claim or controversy which may arise between Seller and EMED. 

 

This
Agreement contains a pre-dispute arbitration clause. By signing this Sales Plan, which includes the following arbitration agreement,
the parties agree as follows: 

 

	 	•	 	Arbitration
    is final and binding on the parties. All parties to this Agreement are giving up the right to sue each other in court, including
    the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed. 
	 	 	 	 

	 	•	 	The
    parties are waiving their right to seek remedies in court, including the right to a jury trial. Arbitration awards are generally
    final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited. 
	 	 	 	 

	 	•	 	Pre-arbitration
    discovery is generally more limited than and different from court proceedings. The ability of the parties to obtain documents,
    witness statements, and other discovery is generally more limited in arbitration than in court proceedings. 

 

	 	•	 	The
    arbitrators’ award is not required to include factual findings or legal reasoning, and any party’s right to appeal
    or seek modifications of rulings of the arbitrators is strictly limited. The arbitrators do not have to explain the reason(s)
    for their award. 

 

	 	•	 	The
    panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.

 

	 	•	 	The
    rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is
    ineligible for arbitration may be brought in court. 

 

	 	•	 	The
    rules of the arbitration forum in which the claim is filed, and any amendments thereto, are hereby incorporated into this
    Agreement.

 

	 	•	 	The
    award of the arbitrators or of the majority of them shall be final, and judgment upon the award rendered may be entered in
    any court, state or federal, having jurisdiction. 

 

	 	•	 	No
    person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement
    against any person who has initiated in court a putative class action, or who is a member of a putative class action who has
    not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification
    is denied; or (ii) the class is decertified; or (iii) the Seller is excluded from the class by the court. Such forbearance
    to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent
    stated herein. 

 

	 	•	 	Seller
    agrees, and in consideration of EMED carrying an account for Seller, EMED agrees, that all controversies which may arise between
    us, including any dispute involving EMED’s present or former agents, employees, officers, and directors and including,
    but not limited to those involving transactions in this or any other account you have individually or jointly with or on behalf
    of another party at EMED, including those in which you have a beneficial interest, or the construction, performance, or breach
    of this or any other agreement between us, whether entered into prior, on, or subsequent to the date hereof, shall be fully
    and finally determined by binding arbitration. Any arbitration under this Agreement shall be determined pursuant to the arbitration
    laws of the State of Missouri and Federal Arbitration Act, where applicable, before the Financial Industry Regulatory Authority
    (FINRA). 

 

	 	•	 	If
    Seller files a complaint in court against EMED or its present or former employees, officers, or directors, EMED may seek to
    compel arbitration of any such claims. If EMED seeks to compel arbitration of such claims, EMED must agree to arbitrate all
    of the claims contained in the complaint if the Seller so requests.  

 

    5 

     

    

 

Seller
acknowledges that the preferred forum for any dispute resolution involving controversies which may arise between
Seller and EMED is through arbitration pursuant to the terms of the arbitration provision found in this Agreement. In the unlikely
event any controversy or dispute arising under this Agreement with EMED is determined to be ineligible for arbitration, Seller
agrees as follows: THE PARTIES TO THIS AGREEMENT SHALL NOT EXERCISE ANY RIGHTS THEY MAY HAVE TO ELECT OR DEMAND A TRIAL
BY JURY. The Seller and EMED hereby expressly waive any right to a trial by jury. The Seller acknowledges and agrees
that this provision is a specific and material aspect of the agreement between the parties and that EMED would not enter into
this Agreement with Seller if this provision were not part of the agreement. 

 

Dispute
Resolution Locale: Any suit, arbitration proceeding, reparation proceeding, claim, or action against EMED or its present or past
officers, agents, or employees shall be brought and heard in the city where the branch sales office of EMED is or was located
with which Seller dealt. If the court, arbitration forum, or reparations tribunal does not conduct hearings in that city, then
any such action must be brought and heard in the locale closest to that city in which the court, arbitration forum, or reparations
tribunal conducts hearings. This paragraph shall apply even if Seller has related disputes with other parties which cannot be
resolved in the same locale. 

 

	 	G.	General 

 

	 	1.	Seller
    and EMED acknowledge and agree that this Sales Plan is a “securities contract,” as such term is defined in Section 741(7)
    of Title 11 of the United States Code (the “Bankruptcy Code”), entitled to all of the protections given such contracts
    under the Bankruptcy Code. 

 

	 	2.	This
    Sales Plan constitutes the entire agreement between the parties with respect to this Sales Plan and supersedes any prior agreements
    or understandings with regard to the Sales Plan. 

 

	 	3.	All
    notices to Glendale under this Sales Plan shall be given to Glendale’s Legal and Trading Services Department in the
    manner specified by this Sales Plan by telephone at 818-907-1505 or by certified mail to the address below: 

 

	 	4.	 

Glendale
Securities  

15233
Ventura Blvd Suite 712 

Sherman
Oaks, CA 91403 

(818)
907-1505

 

Notices
to the Issuer shall be given to:

 

ElectroMedical
Technologies, Inc.  

c/o
Mailander Law Office, Inc. [Sales Plan Administrator and Monitor] 

945
4th Avenue, Ste. 311 

San
Diego, CA 92101 

Tmailander@gmail.com 

Telephone:
(619) 239-9034saf

 

Notices
to Pacific Stock Transfer shall be given to:

 

Pacific
Stock Transfer Company 

6725
Via Austi Pkwy, Suite 300 

Las
Vegas NV 89119 

Attention:
Ms. Joslyn Claiborne  

(Joslyn@pacificstocktransfer.com) 

Telephone:
(702) 361-3033

 

	 	5.	Each
    Party’s rights and obligations under this Sales Plan may not be assigned or delegated without the written permission
    of the other party, which may be withheld in such party’s sole discretion. 

 

    6 

     

    

 

	 	6.	This
    Sales Plan may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the
    signatures on all counterparts were upon the same instrument. 

 

	 	7.	If
    any provision of this Sales Plan is or becomes inconsistent with any applicable present or future law, rule or regulation,
    that provision will be deemed modified or, if necessary, rescinded in order to comply with the relevant law, rule or
    regulation. All other provisions of this Sales Plan will continue and remain in full force and effect. 

 

	 	8.	This
    Sales Plan shall be governed by and construed in accordance with the internal laws of the State of Missouri, applicable to
    agreements made and to be fully performed therein and may be modified or amended only by a writing signed by the parties to
    this Sales Plan. 

 

NOTICE:
THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE IN 

PARAGRAPH
F.

 

IN
WITNESS WHEREOF, the undersigned have signed this Sales Plan as of the date first written above. 

 

Date:
January 9, 2020

 

	Signature:	 /s/ Matthew Wolfson	 
	Print Name:	 MATTHEW WOLFSON	 

 

ELECTROMEDICAL
TECHNOLOGIES, INC.

 

	By:	 /s/ Tad Mailander	 
	 	 	 
	Print Name:	 TAD MAILANDER	 
	 	 LEGAL
                                    COUNSEL, SALES PLAN

         MONITOR/ADMINISTRATOR

         
	 

GLENDALE
SECURITIES

 

	By:	 	 
	 	 	 
	Print Name:	 	 
	 	 	 
	Title:	 	 

 

PACIFIC
STOCK TRANSFER COMPANY

	 	 	 
	By:	 	 
	 	 	 
	Print Name:	 	 
	 	 	 
	Title:	 	 

 

    7 

     

    

 

EXHIBIT
A  

SELLER
REPRESENTATION 

 

	1.	Matthew Wolfson (“Seller”)
    represents that he approved the Sales Plan dated January 9, 2020, (the “Sales Plan”) with EMED  relating
    to the common stock, $0.001, par value of the Issuer (the “Stock”). 

 

	2.	The Seller confirms the following: 

	 	 
	1. Position/Affiliation
    with Issuer	Stockholder,
    affiliate
	2. Is Seller a Form
    4 filer?	YES ☒ NO ☐
	3. Is Seller a Form
    144 Filer?	YES ☒ NO ☐

 

	3.	The sales to be
    made by Seller under the Sales Plan will not violate the EMED’s insider trading policies, as enacted, and to the best
    of the Seller’ knowledge there are no legal, contractual or regulatory restrictions applicable to Seller or Seller’
    affiliates as of the date of this representation that would prohibit the Seller from entering into the Sales Plan or prohibit
    any sale under the Sales Plan. 

 

	4.	If at any time during
    the Sales Plan Period (as defined in the Sales Plan), (i) Seller become aware of a legal, contractual or regulatory restriction
    that is applicable to Seller and that would prohibit any sale under the Sales Plan (other than any such restriction relating
    to Seller’s possession or alleged possession of material nonpublic information about the Issuer or its securities),
    (ii) there is a change in the EMED’s insider trading policies, so that the sales to be made by Seller pursuant
    to the Sales Plan would violate these policies, or (iii) EMED’s board of directors or chief financial officer determines
    that purchases or sales pursuant to the Sales Plan would have a material adverse effect on the Issuer’s financial condition,
    Seller agree to give Glendale notice of such restriction by telephone as soon as practicable, and shall indicate the anticipated
    duration of the restriction, but shall not include any other information about the nature of the restriction or its applicability
    to Seller. In any event, the Issuer shall not communicate any material nonpublic information about the Issuer or its securities
    to Glendale.

 

Moreover,
if the sales to be made by the Seller under the Sales Plan require that EMED meet the Current Public Information provisions contained
in paragraph (c) of Rule 144 under the Securities Act of 1933, as amended, Seller agrees to give Glendale notice in the manner
provided above in the event that EMED fails to continue to satisfy the Current Public Information provisions. 

 

Date: January
9, 2020

 

	Signature:	 /s/ Matthew Wolfson	 
	 	 	 
	Print Name:	 MATTHEW WOLFSON	 

 

    8Exhibit
10.3

 

THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH
SECURITIES UNDER THE ACT OR AN OPINION OF

 

COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

ELECTROMEDICAL
TECHNOLOGIES, INC.

 

WARRANT
TO PURCHASE COMMON STOCK

 

No.
W-1 December 1, 2018

 

VOID
AFTER DECEMBER 1, 2023

 

THIS
CERTIFIES THAT, for value received, AGILITY FINANCIAL PARTNERS, LLC or assigns (the “Holder”), is entitled to subscribe
for and purchase from Electromedical Technologies, Inc., a Delaware corporation (the “Company”), the Exercise Shares
(as defined below) of the Company’s Common Stock on the terms and subject to the conditions set forth below. This Warrant is being
issued in connection with that certain Consulting Agreement among the Company and the consultants party thereto dated as of

 

September
7, 2016 (the “Consulting Agreement”).

 

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

 

(a)   
“Acquisition” shall mean either (A) a merger, consolidation, equity sale or similar transaction involving (directly
or indirectly) the Company upon which, immediately after the consummation of the transaction, the shareholders of the Company
immediately prior thereto do not own, directly or indirectly, either (i) voting securities representing more than 50% of the combined
voting power of the surviving entity in such transaction, or (ii) securities representing more than 50% of the combined voting
power of the parent of the surviving entity in such transaction; or (B) a sale, lease, transfer, exclusive license or other disposition,
in a single transaction or series of related transactions, of all or substantially all of the assets of the Company.

 

(b)  
“Exercise Period” shall mean the period commencing with the date hereof and ending on December 1, 2023, unless sooner
terminated as provided below.

 

(c)   “Exercise
Price” shall mean $0.71 per Exercise Share subject to adjustment pursuant to Section 5 below.

 

     

     

    

 

(d)
  “Exercise Shares” shall mean up to 100,000 shares of the Company’s Common Stock issuable upon exercise
of this Warrant, subject to adjustment pursuant to the terms herein.

 

(e)  
“IPO” shall mean the Company’s first firm commitment underwritten offering and sale of the Company’s Common Stock
(the “Common Stock”) to the public pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Act”).

 

2.    
EXERCISE OF WARRANT

 

(a)  
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 on the signature page hereto (or at such other address as it may designate
by notice in writing to the Holder):

 

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

 

(ii)
  Payment of the Exercise Price either in cash or by check; and

 

(iii) 
This Warrant.

 

Upon
the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so purchased, registered
in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to
the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised. In the event that
this Warrant is being exercised for less than all of the then- current number of Exercise Shares purchasable hereunder, the Company
shall, concurrently with the issuance by the Company of the number of Exercise Shares for which this Warrant is then being exercised,
issue a new Warrant exercisable for the remaining number of Exercise Shares purchasable hereunder.

 

The
person in whose name any certificate or certificates for 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 delivery of such certificate or certificates, 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.

 

     

     

    

 

(b)  
Net Exercise. In lieu of cash exercising this Warrant, the Holder of this Warrant may elect to receive shares equal to the
value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the
Company together with notice of such election, in which event the Company shall issue to the holder hereof a number of Shares
computed using the following formula: X = Y (A-B) A Where X = the number of shares of Common Stock to be issued to Holder. Y
= the number of shares of Common Stock purchasable under the Warrants being exchanged (as adjusted to the date of such
calculation). A = the Market Price on the date of receipt by the Company of the exercise documents. B = the Exercise Price of
the Warrants being exchanged (as adjusted in accordance with the terms hereof). The “Market Price” on any trading
day shall be deemed to be the average of the ask and bid price of the Common Stock over the five (5) trading days immediately
preceding receipt by the Company of the exercise documents as officially reported by the principal securities exchange or
quotation medium on which the shares of Common Stock are listed or eligible for trading. If the Market Price cannot be
determined pursuant to the sentence above, the Market Price shall be determined in good faith (using customary valuation
methods) by the Board of Directors of the Company based on the information best available to it, including recent arms-length
sales of Common Stock to unaffiliated persons. use reasonable efforts to sell the Exercise Shares to satisfy the
debt.

 

s
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 and the shares of the Company’s Common Stock that may be issued upon conversion of the
Exercise Shares will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes,
liens and charges with

 

be
sufficient to permit exercise of this Warrant or the conversion of the Exercise Shares, 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 such series of the Company’s
equity securities to such number of shares as shall be sufficient for such purposes.

 

3.2
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 or other distribution, the Company Shall mail
to the Holder, at least 10 days prior to the date specified herein, a notice specifying the date on which any such record is to
be taken for the purpose of such dividend or distribution.

 

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 view to or for sale or distribution of said Warrant or Exercise Shares
or any part thereof. The Holder also represents that the entire legal and beneficial interests of the Warrant and Exercise Shares
the Holder is acquiring is being acquired for, and will be held for, its account only.

 

     

     

    

4.2
Securities Are Not Registered.

 

(a)
  The Holder understands that the Warrant and the Exercise Shares have not been registered under the Act on the basis
that no distribution or public offering of the stock of the Company is to be effected. The Holder realizes that the basis for
the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the
securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting
any participation in, or otherwise distributing the securities. The Holder has no such present intention.

 

(b)
  The Holder recognizes that the Warrant and the Exercise Shares must be held indefinitely unless they are subsequently
registered under the Act or an exemption from such registration is available. The Holder recognizes that the Company has no obligation
to register the Warrant or 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 Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the
availability of certain current public information about the Company, the resale following the required holding period under Rule
144 and the number of shares being sold during any three month period not exceeding specified limitations. Holder is aware that
the conditions for resale set forth in Rule 144 have not been satisfied and that the Company presently has no plans to satisfy
these conditions in the foreseeable future.

 

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:

 

(b)
  The Company shall have received a letter secured by the Holder from the Securities and Exchange Commission stating
that no action will be recommended to the Commission with respect to the proposed disposition;

 

(ii)  
There is then in effect a registration statement under the 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 Act or any applicable state securities laws. The Company
agrees that it will not require an opinion of counsel with respect to transactions under Rule 144 of the Securities Act of 1933,
as amended, except in unusual circumstances.

 

(b)  The
Holder understands and agrees that all certificates evidencing the shares to be issued to the Holder may bear the following legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE
ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

4.4
Accredited Investor Status. The Holder is an “accredited investor” as defined in Regulation D promulgated under the
Act.

 

5:
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF EXERCISE SHARES.

 

5.1
Changes in Securities. In the event of changes in the series of equity securities of the Company comprising the Exercise Shares
by reason of stock dividends, splits, recapitalizations, reclassifications, combinations or exchanges of shares, separations,
reorganizations, liquidations, or the like, the number and class of Exercise 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. For purposes of this
Section 5, the “aggregate Exercise Price” shall mean the aggregate Exercise Price payable in connection with the exercise
in full of this Warrant. The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares
subject to this Warrant. Whenever the Exercise Price or the number of shares of Exercise Shares purchasable hereunder shall be
adjusted pursuant to this Section 5.1, the Company at its expense shall issue a certificate signed by an authorized officer setting
forth, in reasonable detail, the event requiring the adjustment or readjustment, the amount of the adjustment or readjustment
and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment or readjustment, and
shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid, or overnight delivery service) to the
Holder of the Warrant. The Company shall, upon the written request of the Holder of the Warrant at any time, furnish or cause
to be furnished to such Holder a like certificate setting forth: (i) all such adjustments and readjustments that have been effected
under the Warrant; (ii) the Exercise Price at the time in effect and (iii) the number of shares of Exercise Shares, the type of
Exercise Shares and the amount, if any, of other property that at the time would be received upon the exercise of the Warrant.

 

     

     

    

5.2
Automatic Conversion. Upon the automatic conversion of all outstanding shares of the series of equity securities comprising the
Exercise Shares, this Warrant shall become exercisable for that number of shares of Common Stock of the Company into which the
Exercise Shares would then be convertible, so long as such shares, if this Warrant had been exercised prior to such offering,
would have been converted into shares of the Company’s Common Stock pursuant to the Company’s Certificate of Incorporation. In
such case, all references to “Exercise Shares” shall mean shares of the Company’s Common Stock issuable upon exercise
of this Warrant, as appropriate.

 

a3
Anti-Dilution Rights. The Holder shall be protected from dilution in the event that the Company subsequent to issue date of this
Warrant issues additional equity securities at a price below the Exercise Price (as adjusted per Section 5.1), other than options,
shares and warrants issued pursuant to employee incentive plans approved by the Board of the Company.

 

If
the Company issues securities as stated above at a price lower than the Exercise Price (a “Dilutive Issuance”), then
the Exercise Price shall be immediately adjusted downward to the same price as the price per share of the Dilutive Issuance.

 

In
addition, immediately following the Dilutive Issuance, the number of Exercise Shares shall be increased as follows:

 

N
= nl(pl — p2)

 

N
= the additional number of Exercise Shares

 

nl
= the original number of Exercise Shares (i.e., 100,000, subject to adjustment under Section 5.1)

 

pl
= the Exercise Price (i.e., $0.71 , Subject to adjustment under Section 5. 1)

 

p2
= the subscription price of the Dilutive Issuance

 

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) to be issued upon exercise of this Warrant shall
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 then
current fair market value of one Exercise Share by such fraction.

 

     

     

    

fe
NOTICE OF ACQUISITION. In the event of, at any time during the Exercise Period, an IPO or an Acquisition, the Company shall provide
to the Holder 30 days' advance written notice of such IPO or Acquisition.

 

8.
    MARKET STAND-OFF AGREEMENT. Holder hereby agrees that Holder Shall not sell, dispose of, transfer,
make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same
economic effect as a sale, any shares of Common Stock (or other securities) of the Company held by Holder (other than those
included in the registration) (i) during the 180-day period following the effective date of the IPO (or such longer period as
the underwriters or the Company shall request in order to facilitate compliance with FINRA Rule 2711 or NYSE Member Rule 472
or any successor or similar rule or regulation), and (ii) the 90-day period following the effective date of a registration
statement of the Company filed under the Securities Act (or such longer period as the underwriters or the Company shall
request in order to facilitate compliance with FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar tule or
regulation); provided, that, with respect to (i) and (ii) above, all officers and directors of the Company and holders of at
least one percent of the Company’s voting securities are bound by and have entered into similar agreements. Holder
agrees that any transferee of the Warrant (or other securities) of the Company held by Holder shall be bound by this
Section 8. The underwriters of the Company’s stock are intended third party beneficiaries of

 

..
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.

 

10.
 TRANSFER OF WARRANT. This Warrant and all rights hereunder are not transferable by the Holder other than, for a Holder
that is a partnership, limited liability company, corporation, or venture capital fund, to (i) a partner of such partnership,
a member of such limited liability company, or stockholder of such corporation, (ii) an affiliate of such partnership, limited
liability company or corporation (including, any affiliated investment fund of such Holder), (ii) a retired partner of such partnership
or a retired member of such limited liability company, or (iii) the estate of any such partner, member, or stockholder (such transfer,
an “Affiliate Transfer” and such transferees an “Affiliate Transferee”),

 

Affiliate
Transfers may be made upon delivery of this Warrant and the form of assignment attached hereto to any Affiliate Transferee designated
by Holder. The Company represents that it has taken all action necessary to exempt an Affiliate Transfer from any such applicable
transfer restrictions. The Affiliate Transferee shall sign an investment letter in form and substance satisfactory to the Company.

 

     

     

    

11.  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 as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not
the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

 

12.
 AMENDMENT. Any term of this Warrant may be amended or waived with the written consent of the Company and Holder.

 

13. 
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 facsimile or email 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 day after deposit with a nationally recognized Overnight courier, specifying
next day delivery, with

 

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

 

15. 
GOVERNING LAW. This Warrant and all rights, obligations and_ liabilities

 

16. 
REGISTRATION RIGHTS. If the Company grants, or has granted, any other person or entity registration rights with respect to the
Common Stock of the Company, then the Company shall enter into a substantially similar registration rights agreement with Holder
with respect to the Exercise Shares, granting such Exercise Shares pari passu registration rights.

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first set forth
above.

 

HOLDER:
COMPANY:

 

Agility
Financial Partners, LLC

 

Electromedical
Technologies, Inc.

 

By
Matthew Wolfson, CEO

 

[SIGNATURE
PAGE]

 

NOTICE
OF EXERCISE TO: ELECTROMEDICAL TECHNOLOGIES, INC.

 

(1)  
The undersigned hereby elects to purchase shares of (the “Exercise Shares”) of ELECTROMEDICAL TECHNOLOGIES, INC. (the
“Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

 

     

     

    

If
this is a Net Exercise pursuant to Section 2(b), check here:

 

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

 

(Name)

 

(Address)

 

(3)
 The undersigned represents that (i) the aforesaid Exercise Shares are being acquired for the account of the undersigned
for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has
no present intention of distributing or reselling such shares; (ii) 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; (iii) 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; (iv) the undersigned understands that Exercise Shares issuable
upon exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
by reason of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among
other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered
under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption
from such registration is available; (v) the undersigned is aware that the aforesaid Exercise Shares may not be sold pursuant
to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for
the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information
to the public about the Company and the Company has not made such information available and has no present plans to do so; and
(vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Exercise Shares 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, if reasonably requested by the Company, the undersigned has provided
the Company with an opinion of counsel, if requested, satisfactory to the Company, stating that such registration is not required.

 

(Date)
(Signature)

 

(Print
name)

 

     

     

    

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, 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 Address: Print) (Please Print)

 

Dated:
5 20

 

Holder’s
Sigmature: _________~~-__

 

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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