Document:

Exhibit 10.3

 

GP NURMENKARI INC.

22 ELIZABETH STREET SONO SQUARE SUITE 1J

NORWALK, CT 06854

TEL: 212-447-5550

Member: FINRA & SIPC

 

PLACEMENT AGENCY AGREEMENT

 

December 17, 2018

 

Mr. Robert Weinstein

Chief Financial Officer

Neurotrope, Inc.

1185 Avenue of the Americas 3rd Floor

New York NY 10036

 

		Re:	Neurotrope, Inc.

 

Dear Mr. Weinstein:

 

This
Placement Agency Agreement (“Agreement”) sets forth the terms upon which GP Nurmenkari Inc., a registered broker-dealer
and member of the Financial Industry Regulatory Authority (“FINRA”) (hereinafter referred to as the “Placement
Agent”), shall be engaged by Neurotrope Inc., a publicly
traded Nevada corporation (hereinafter referred to as the “Company”), to act as Placement Agent in connection with
the registered direct offering (the “Offering”) of the securities of the Company referred to below (the “Securities”)
directly to various investors (each, an “Investor” and, collectively, the “Investors”). The
Closing (as defined below) of the Offering will be conditioned upon certain conditions described herein. 

 

1.           Appointment
of Placement Agent.

 

(a)          On
the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and conditions
of this Agreement, the Placement Agent shall be the Placement Agent, during the Offering Period (as defined in Section 3(b) below),
in connection with the offering and sale by the Company of the Securities pursuant to the Company's registration statement on Form
S-3 (File No. 333-217089), with the terms of the Offering to be subject to market conditions and negotiations between the Company,
the Placement Agent and the Investors. The Placement Agent may offer the Securities through other broker-dealers who are FINRA
members (collectively, the “Sub Agents”) and may reallow all or a portion of the Placement Agent’s Broker Compensation
(as defined in Sections 3(a) and 3(b) below) it receives to such other Sub Agents or pay a finders or consultant fee as allowed
by applicable law. On the basis of such representations and warranties and subject to such terms and conditions, the Placement
Agent hereby accepts such appointment and agrees to perform the services hereunder diligently and in good faith and in a professional
and businesslike manner and in compliance with applicable law and to use its reasonable best efforts to assist the Company in finding
subscribers of the Securities. The Placement Agent has no obligation to purchase any of the Securities or sell any Securities.
Unless sooner terminated in accordance with this Agreement, the engagement of the Placement Agent hereunder shall continue until
the later of the Termination Date or the Final Closing (as defined below). The Offering is currently anticipated to be the registered
direct offering of Units (“Units”), with each Unit consisting of (i) one share of the Company’s Common Stock,
par value $0.0001 (each, a “Share”) and (ii) one warrant exercisable for a period of five (5) years to purchase one
share of Common Stock with an above market exercise price per share (each, a “Warrant” and collectively with the Shares,
the “Securities”). The Offering is for a maximum of gross proceeds of Twenty-five Million Dollars ($25,000,000) (the
“Maximum Offering”). The offering price will be above market per Unit in an amount equal to the lesser of (1) the average
closing market price of the Common Stock for the last five (5) consecutive trading days ending on the close of trading day immediately
preceding the entry into the binding securities purchase agreement plus 1/8 of one point (or $0.125), or (2) the closing market
price of the Common Stock on the trading day immediately preceding the entry into the binding securities purchase agreement plus
1/8 of one point (or $0.125) (the “Purchase Price”).

 

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(b)          Placement
of the Securities by the Placement Agent will be made on a reasonable best efforts basis. The Company agrees and acknowledges that
the Placement Agent is not acting as underwriter with respect to the Offering and the Company shall determine the purchasers in
the Offering in its sole discretion. The Securities will be offered by the Company to potential subscribers, which may include
related parties of the Placement Agent or the Company through December 17, 2018, (the “Offering Period”). The date
on which the Offering is terminated shall be referred to as the “Termination Date”. The Closing of the Offering may
be held up to four days after the Termination Date.

 

(c)          The
offering of Securities will be made by the Placement Agent on behalf of the Company solely pursuant to the Securities Purchase
Agreement and the Exhibits to the Securities Purchase Agreement, including, but not limited to, and to the extent applicable, a
Summary Term Sheet, the Warrant and any documents, agreements, supplements and additions thereto (collectively, the “Subscription
Documents”), which at all times will be in form and substance reasonably acceptable to the Company and the Placement Agent
and their counsel and contain such legends and other information as the Company and the Placement Agent and their counsel, may,
from time to time, deem necessary and desirable to be set forth therein.

 

(d)          With
respect to the Offering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer all of the
available Securities being offered during the Offering Period (subject to prior offer and sale of some of the Securities, if applicable).
It is understood that no sale shall be regarded as effective unless and until accepted by the Company. The Company may, in its
sole discretion, accept or reject, in whole or in part, any prospective investment in the Securities or allot to any prospective
subscriber less than the number of Securities that such subscriber desires to purchase. Purchases of Securities may be made by
the Placement Agent and any selected sub-dealers and their respective officers, directors, employees and affiliates and by the
officers, directors, employees and affiliates of the Company (collectively, the “Affiliates”) for the Offering and
such purchases will be made by the Affiliates based solely upon the same information that is provided to the Investors in the Offering.

 

2.           Representations,
Warranties and Covenants.

 

A.           Representations,
Warranties and Covenants of the Company. Except as set forth in the Prospectus or the Prospectus Supplement, including the
documents incorporated by reference therein, the Company hereby represents and warrants to the Placement Agent that each of the
representations and warranties contained in this Section 2 is true in all respects as of the date hereof and will be true in all
respects as of the Closing Date and any subsequent Closing Dates, as defined under Section 4(e). In addition to the representations
and warranties set forth herein, the Placement Agent and any Sub Agents shall be entitled to rely upon the representations and
warranties made or given by the Company to any acquirer of Securities in the Offering in any agreement, certificate, legal opinion
or otherwise in connection with an Offering. For purposes of this Section 2(A), the term Company includes all of the Company’s
subsidiaries (if any).

 

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(a)          The
Company has filed with the Securities and Exchange Commission (the “SEC”) the Registration Statement (as defined
below) under the Securities Act of 1933, as amended (the “Securities Act”), which became effective on April
21, 2017, for the registration under the Securities Act of the Securities. Following the determination of pricing among the Company
and the prospective Investors introduced to the Company by Placement Agent, the Company will file with the SEC pursuant to Rule
424(b) under the Securities Act, and the Rules and Regulations (the “Rules and Regulations”) of the Commission
promulgated thereunder, a final prospectus supplement relating to the placement of the Securities, their respective pricings and
the plan of distribution thereof and will advise the Placement Agent of all further information (financial and other) with respect
to the Company required to be set forth therein. Such registration statement, at any given time, including the exhibits thereto
filed at such time, as amended at such time, is hereinafter called the “Registration Statement”; such prospectus
in the form in which it appears in the Registration Statement is hereinafter called the “Base Prospectus”; and
the amended or supplemented form of prospectus, in the form in which it will be filed with the SEC pursuant to Rule 424(b) (including
the Base Prospectus as so amended or supplemented) is hereinafter called the “Prospectus Supplement.” Any reference
in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and
include the documents incorporated by reference therein (the “Incorporated Documents”), if any, which were or
are filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), at any given time, as
the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include
the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or
the Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement
to financial statements and schedules and other information which is “contained,” “included,” “described,”
“referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or
the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Base
Prospectus or the Prospectus Supplement, as the case may be. The Company has not received any notice that the SEC has issued or
intends to issue a stop order suspending the effectiveness of the Registration Statement or the use of the Base Prospectus or the
Prospectus Supplement or intends to commence a proceeding for any such purpose. The Shares, and the shares issued upon the exercise
of the Warrants will be quoted on the OTCQB or the Nasdaq Stock Market (the “Principal Market”). The Company
has taken no action designed to, or likely to have the effect of, terminating the quotation of the Common Stock on the Principal
Market. The Company, on the Closing Date, will be in compliance with all of the then-applicable requirements for continued quotation
of the Common Stock on the Principal Market.

 

(b)          The
Subscription Documents, as prepared and contemplated by the Company, will not and do not include any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. To the knowledge of the Company, none of the statements, documents,
certificates or other items made, prepared or supplied by the Company with respect to the transactions contemplated hereby contains
an untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein not
misleading in light of the circumstances in which they were made. There is no fact which the Company has not disclosed in the Subscription
Documents or which is not disclosed in the filings (the “SEC Filings”) that the Company makes with the SEC and of which
the Company is aware that materially adversely affects or that could reasonably be expected to have a material adverse effect on
the (i) assets, liabilities, results of operations, condition (financial or otherwise), business or business prospects of the Company
or (ii) ability of the Company to perform its obligations under this Agreement and the other Subscription Documents (the “Company
Material Adverse Effect”). Notwithstanding anything to the contrary herein, the Company makes no representation or warranty
with respect to any estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying
such estimates, projections and other forecasts and plans) that may have been delivered to the Placement Agent or its representatives,
except that such estimates, projections and other forecasts and plans have been prepared in good faith on the basis of assumptions
stated therein, which assumptions were believed to be reasonable at the time of such preparation. Other than the Company’s
SEC Filings, the Company has not distributed and will not distribute prior to the Closing any offering material in connection with
the offering and sale of the Securities, unless such offering materials are provided to the Placement Agent prior to or simultaneously
with such delivery to the offerees of the Securities.

 

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(c)          The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and is qualified
and in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted by the Company
or the property owned or leased by the Company requires such qualification, except to the extent that the failure to be so qualified
or be in good standing would not have a Company Material Adverse Effect. The Company has all requisite corporate power and authority
to conduct its business as presently conducted and as proposed to be conducted (as described in the Subscription Documents and/or
the SEC Filings), has all the necessary and requisite documents and approvals from all state authorities, has all requisite corporate
power and authority to enter into and perform its obligations under this Agreement, the Securities Purchase Agreement substantially
in the form made part of the Subscription Documents (the “Securities Purchase Agreement”), the form of Warrant substantially
in the form made part of the Subscription Documents (the “Warrant”), and the other agreements, if any, contemplated
by the Offering (this Agreement, Securities Purchase Agreement, the Warrant and the other agreements contemplated hereby that the
Company is required to execute and deliver are collectively referred to herein as the “Company Transaction Documents”)
and subject to necessary Board and stockholder approvals, to issue, sell and deliver the Shares and the shares of Common Stock
issuable upon exercise of the Warrants and the Broker Warrants (as hereinafter defined) (the shares of Common Stock issuable upon
exercise of the Warrants and the Broker Warrants are hereinafter referred to collectively as the “Warrant Shares”)
and to make the representations in this Agreement accurate and not misleading. Prior to the Closing, as defined under Section 4(e),
each of the Company Transaction Documents and the Offering will have been duly authorized. This Agreement has been duly authorized,
executed and delivered and constitutes, and each of the other Company Transaction Documents, upon due execution and delivery, will
constitute, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms
(i) except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect related to laws affecting creditors’ rights generally, including the effect of statutory and other
laws regarding fraudulent conveyances and preferential transfers, and except that no representation is made herein regarding the
enforceability of the Company’s obligations to provide indemnification and contribution remedies under the securities laws
and (ii) subject to the limitations imposed by general equitable principles (regardless of whether such enforceability is considered
in a proceeding at law or in equity).

 

(d)          None
of the execution and delivery of or performance by the Company under this Agreement or any of the other Company Transaction Documents
or the consummation of the transactions in this Agreement or in the Subscription Documents (including the issuance and sale of
the Shares, the issuance of the Warrants or the issuance of the Warrants Shares conflicts with or violates, or causes a default
under (with our without the passage of time or the giving of notice), or will result in the creation or imposition of, any lien,
charge or other encumbrance upon any of the assets of the Company under any agreement, evidence of indebtedness, joint venture,
commitment or other instrument to which the Company is a party or by which the Company or its assets may be bound, any statute,
rule, law or governmental regulation applicable to the Company, or any term of the Article of Incorporation as in effect on the
date hereof or any closing date for the Offering (the “Articles of Incorporation”) or By-Laws as in effect on the date
hereof or any closing date for the Offering (the “By-Laws”) of the Company, or any license, permit, judgment, decree,
order, statute, rule or regulation applicable to the Company or any of its assets, except in the case of a conflict, violation,
lien, charge or other encumbrance (except with respect to the Company’s Articles of Incorporation or By-Laws) which would
not, or could not reasonably be expected to, have a Company Material Adverse Effect. No consent, approval, authorization or other
order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body
is required for the execution and delivery of this Agreement by the Company and the valid issuance or sale of the Shares, the Warrants,
the Broker Warrants and the Warrant Shares by the Company pursuant to this Agreement, other than such as have been made or obtained
and that remain in full force and effect, and except for the filing of a Form D or any filings required to be made under state
securities laws, which shall be timely filed by the Company.

 

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(e)          The
Company’s financial statements, together with the related notes, if any, included in the Subscription Documents or the Company’s
SEC Filings, present fairly, in all material respects, the financial position of the Company as of the dates specified and the
results of operations for the periods covered thereby. Such financial statements and related notes were prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis throughout the periods indicated, except
that the unaudited financial statements omit full notes, and except for normal year-end adjustments. If the financials for the
Company are unaudited financial statements, it will state such clearly on the financials. During the period of engagement of the
Company’s independent certified public accountants, there have been no disagreements between the accounting firm and the
Company on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures. The
Company has made and kept books and records and accounts which are in reasonable detail and which fairly and accurately reflect
the activities of the Company in all material respects, subject only to year-end adjustments. Except as set forth in such financial
statements or otherwise disclosed in the Subscription Documents, the Company’s senior management has no knowledge of any
material liabilities of any kind, whether accrued, absolute or contingent, or otherwise, and subsequent to the date of the Subscription
Documents and prior to the date of the Closing, it shall not enter into any material transactions or commitments without promptly
thereafter notifying the Placement Agent and the purchasers in the Offering in writing of any such material transaction or commitment.
The other financial and statistical information with respect to the Company and any pro forma information and related notes included
in the SEC Filings present fairly the information shown therein on a basis consistent with the financial statements of the Company
included in the SEC Filings. Except as disclosed in the Subscription Documents, the Company does not know of any facts, circumstances
or conditions which could materially adversely affect its operations, earnings or prospects that have not been fully disclosed
in the financial statements appearing in the SEC Filings or other financial statements appearing in the SEC Filings or other documents
or information provided by the Company.

 

(f)          Immediately
prior to the Closing, the Shares, the Warrants, the shares underlying the Warrants (“Warrant Shares”), the Broker Warrants
and the Shares underlying the Broker Warrants (“Broker Warrant Shares”) will have been duly authorized and, when issued
and delivered against payment therefor as provided in the Company Transaction Documents, will be validly issued, fully paid and
nonassessable. No holder of any of the Shares, Warrants Shares or Broker Warrant Shares will be subject to personal liability solely
by reason of being such a holder, and except as described in the Subscription Documents, none of the Shares, Warrants, Warrant
Shares, Broker Warrants or Broker Warrant Shares will be subject to preemptive or similar rights of any stockholder or security
holder of the Company or an adjustment under the antidilution or exercise rights of any holders of any outstanding shares of capital
stock, options, warrants or other rights to acquire any securities of the Company. Immediately prior to the Closing, a sufficient
number of authorized but unissued shares of Common Stock will have been reserved for issuance upon the exercise of the Warrants
and the Brokers Warrants.

 

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(g)          Except
as described in the Subscription Documents, the Prospectus and/or the Company’s SEC Filings and for the Warrants, and as
of the date of each Closing: (i) there will be no outstanding options, stock subscription agreements, warrants or other rights
permitting or requiring the Company or others to purchase or acquire any shares of capital stock or other equity securities of
the Company or to pay any dividend or make any other distribution in respect thereof; (ii) there will be no securities issued or
outstanding which are convertible into or exchangeable for any of the foregoing and there are no contracts, commitments or understandings,
whether or not in writing, to issue or grant any such option, warrant, right or convertible or exchangeable security; (iii) no
Securities of the Company or other securities of the Company are reserved for issuance for any purpose; (iv) there will be no voting
trusts or other contracts, commitments, understandings, arrangements or restrictions of any kind with respect to the ownership,
voting or transfer of shares of stock or other securities of the Company, including, without limitation, any preemptive rights,
rights of first refusal, proxies or similar rights, and (v) no person prior to the execution of this Agreement by the Company holds
a right to require the Company to register any securities of the Company under the Act or to participate in any such registration.
Immediately prior to the Closing, the issued and outstanding shares of capital stock of the Company will conform in all material
respects to all statements in relation thereto contained in the Company’s SEC Filings and the Company’s SEC Filings
describe all material terms and conditions thereof. All issuances by the Company of its securities have been issued pursuant to
either a current effective registration statement under the Securities Act or an exemption from registration requirements under
the Act, and were issued in accordance with any applicable Federal and state securities laws.

 

(h)          Except
as described in the Subscription Documents, the Prospectus and/or the Company’s SEC Filings, the Company has no subsidiaries
and does not own any equity interest and has not made any loans or advances to or guarantees of indebtedness to any person, corporation,
partnership or other entity and is not a party to any joint venture. The Company’s subsidiaries are duly incorporated or
organized, validly existing and in good standing under the laws of their jurisdiction of incorporation or organization and have
all requisite power and authority to carry on their business as now conducted. Such subsidiaries are duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on
their respective business or properties. All of the outstanding capital stock or other voting securities of such subsidiaries are
owned by the Company, directly or indirectly, free and clear of any liens, claims, or encumbrances. The conduct of business by
the Company as presently and proposed to be conducted is not subject to continuing oversight, supervision, regulation or examination
by any governmental official or body of the United States, or any other jurisdiction wherein the Company conducts or proposes to
conduct such business, except as described in the Subscription Documents and/or the Company’s SEC Filings and except as such
regulation is applicable to US public companies and commercial enterprises generally. The Company has obtained all material licenses,
permits and other governmental authorizations necessary to conduct its business as presently conducted. The Company has not received
any notice of any violation of, or noncompliance with, any federal, state, local or foreign laws, ordinances, regulations and orders
(including, without limitation, those relating to environmental protection, occupational safety and health, securities laws, equal
employment opportunity, consumer protection, credit reporting, “truth-in-lending”, and warranties and trade practices)
applicable to its business, the violation of, or noncompliance with, would have a Company Material Adverse Effect, and the Company
knows of no facts or set of circumstances which could give rise to such a notice.

 

(i)          Except
as described in the Subscription Documents, the Prospectus and/or the Company’s SEC Filings, no default by the Company or,
to the knowledge of the Company, any other party, exists in the due performance under any material agreement to which the Company
is a party or to which any of its assets is subject (collectively, the “Company Agreements”). The Company Agreements,
if any, disclosed in the Subscription Documents and/or the Company’s SEC Filings are the only material agreements to which
the Company is bound or by which its assets are subject, are accurately described in the Subscription Documents and/or the Company’s
SEC Filings and are in full force and effect in accordance with their respective terms, subject to any applicable bankruptcy, insolvency
or other laws affecting the rights of creditors generally and to general equitable principles and the availability of specific
performance.

 

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(j)           Subsequent
to the respective dates as of which information is given in the Subscription Documents, the Company has operated its business in
the ordinary course and, except as may otherwise be set forth in the Subscription Documents or the Company’s SEC Filings,
there has been no: (i) Company Material Adverse Effect; (ii) material transaction otherwise than in the ordinary course of business
consistent with past practice; (iii) issuance of any securities (debt or equity) or any rights to acquire any such securities other
than pursuant to equity incentive plans approved by its Board of Directors; (iv) damage, loss or destruction, whether or not covered
by insurance, with respect to any material asset or property of the Company; or (v) agreement to permit any of the foregoing.

 

(k)          Except
as set forth in the Subscription Documents, the Prospectus and/or the Company’s SEC Filings, there are no actions, suits,
claims, hearings or proceedings pending before any court or governmental authority or, to the knowledge of the Company, threatened,
against the Company, or involving its assets or any of its officers or directors (in their capacity as such) which, (i) if determined
adversely to the Company or such officer or director, could reasonably be expected to have a Company Material Adverse Effect or
adversely affect the transactions contemplated by this Agreement or the Company Transaction Documents (as defined in this Agreement)
or the enforceability hereof or (ii) would be required to be disclosed in the Company’s Annual Report on Form 10-K under
the requirements of Item 103 of Regulation S-K. The Company is not subject to any injunction, judgment, decree or order of any
court, regulatory body, arbitral panel, administrative agency or other government body.

 

(l)           The
Articles of Incorporation and By-laws of the Company are true, correct and complete copies of the certificate of incorporation
and bylaws of the Company, as in effect on the date hereof. Any subsequent amendments to the certificate of incorporation or bylaws
will be provided promptly to the Placement Agent and Investors in the Offering. The Company is not: (i) in violation of its Articles
of Incorporation or By-Laws; (ii) in default of any contract, indenture, mortgage, deed of trust, note, loan agreement, security
agreement, lease, alliance agreement, joint venture agreement or other agreement, license, permit, consent, approval or instrument
to which the Company is a party or by which it is or may be bound or to which any of its assets may be subject, the default of
which could reasonably be expected to have a Company Material Adverse Effect; (iii) in violation of any statute, rule or regulation
applicable to the Company, the violation of which would have a Company Material Adverse Effect; or (iv) in violation of any judgment,
decree or order of any court or governmental body having jurisdiction over the Company and specifically naming the Company, which
violation or violations individually, or in the aggregate, could reasonably be expected to have a Company Material Adverse Effect.

 

(m)          Except
as disclosed in the Subscription Documents and/or the Company’s SEC Filings, as of the date of this Agreement, no current
or former stockholder, director, officer or employee of the Company, nor, to the knowledge of the Company, any affiliate of any
such person is presently, directly or indirectly through his/her affiliation with any other person or entity, a party to any loan
from the Company or any other transaction (other than as an employee) with the Company.

 

(n)          Except
as described in the Prospectus Supplement, the Company is not obligated to pay, and has not obligated the Placement Agent to pay,
a finder’s or origination fee in connection with the Offering other than to the Placement Agent under this Agreement, and
hereby agrees to indemnify the Placement Agent from any such claim made by any other person as more fully set forth in Section
8 hereof. Except as set forth in the Subscription Documents or the Prospectus Supplement, no other person has any right to participate
in any offer, sale or distribution of the Company’s securities to which the Placement Agent’s rights, described herein,
shall apply.

 

(o)          Until
the earlier of (i) the Termination Date or (ii) the Final Closing (as hereinafter defined), the Company will not issue any press
release, grant any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering without
the Placement Agent’s prior written consent, which consent will not unreasonably be withheld or delayed, and subject to any
applicable laws and regulations.

 

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(p)          No
representation or warranty contained in Section 2A of this Agreement contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements herein not misleading in the context of such representations and warranties.
The Placement Agent shall be entitled to rely on such representations and warranties.

 

(q)          No
consent, authorization or filing of or with any court or governmental authority is required in connection with the issuance or
the consummation of the transactions contemplated herein or in the other Company Transaction Documents, except for required filings
with the SEC and the applicable state securities commissions relating specifically to the Offering (all of which filings will be
duly made by, or on behalf of, the Company) and The Nasdaq Capital Market and FINRA, and those which are required to be made after
the Closing (all of which will be duly made on a timely basis).

 

(r)           Neither
the sale of the Securities by the Company nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended,
nor any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company is not (a) a person
whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001))
or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such person. The Company and
its subsidiaries, if any, are in compliance, in all material respects, with the USA Patriot Act of 2001 (signed into law October
26, 2001). Each of the Company, its affiliates and any of their respective officers, directors, supervisors, managers, agents,
or employees, has not violated, its participation in the offering will not violate, and the Company has instituted and maintains
policies and procedures designed to ensure continued compliance with, each of the following laws: (a) anti-bribery laws, including
but not limited to, any applicable law, rule, or regulation of any locality, including but not limited to any law, rule, or regulation
promulgated to implement the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions,
signed December 17, 1997, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other law, rule or regulation
of similar purposes and scope, (b) anti-money laundering laws, including but not limited to, applicable federal, state, international,
foreign or other laws, regulations or government guidance regarding anti-money laundering, including, without limitation, Title
18 US. Code section 1956 and 1957, the Bank Secrecy Act, and international anti-money laundering principles or procedures by an
intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States
is a member and with which designation the United States representative to the group or organization continues to concur, all as
amended, and any Executive order, directive, or regulation pursuant to the authority of any of the foregoing, or any orders or
licenses issued thereunder or (c) laws and regulations imposing U.S. economic sanctions measures, including, but not limited to,
the International Emergency Economic Powers Act, the United Nations Participation Act and the Syria Accountability and Lebanese
Sovereignty Act, all as amended, and any Executive Order, directive, or regulation pursuant to the authority of any of the foregoing,
including the regulations of the United States Treasury Department set forth under 31 CFR, Subtitle B, Chapter V, as amended, or
any orders or licenses issued thereunder. Neither the Company nor any director, officer, agent, employee or other person acting
on behalf of the Company has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iii) made any unlawful bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

    	Placement Agency Agreement (PIPE)	Page 8

     

    

 

(s)          None
of Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating
in the Offering, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on
the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company
in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”)
is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)–(viii) under the Securities
Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) or has been
involved in any matter which would be a Disqualification Event except for the fact that it occurred before September 23, 2013.
The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.
The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the
Placement Agent a copy of any disclosures provided thereunder.

 

(t)           Except
as described in the Prospectus Supplement, the Company is not aware of any person (other than any Issuer Covered Person or Placement
Agent Covered Person (as defined below) that has been or will be paid (directly or indirectly) remuneration for solicitation of
purchasers in connection with the sale of any the Securities. For purposes of this Agreement Placement Agent Covered Persons shall
mean Nurmenkari Inc., or any of its respective directors, executive officers, general partners, managing members or other officers
participating in the Offering.

 

(u)          The
Company will promptly notify the Placement Agent in writing of (A) any Disqualification Event relating to any Issuer Covered Person
and (B) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.
The Company will notify the Placement Agent in writing, prior to the Closing Date of (i) any Disqualification Event relating to
any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to
any Issuer Covered Person.

 

(v)         The
authorized capital stock of the Company as of the Closing will be set forth in the Securities Purchase Agreement. As of the Closing,
the Company’s issued and outstanding capital stock will be set forth in the Securities Purchase Agreement. All issued and
outstanding shares of capital stock have been duly authorized and validly issued, are fully paid and nonassessable, were not issued
in violation of any preemptive rights or similar rights to subscribe for or purchase securities, and, except as disclosed in the
Company’s SEC Filings, have been issued and sold in compliance with the registration requirements of federal and state securities
laws or the applicable statutes of limitation have expired. Except as set forth in the Securities Purchase Agreement and the Company’s
SEC Filings, there are no (i) outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire,
or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company,
or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company or its subsidiaries is a
party and relating to the issuance or sale of any capital stock or convertible or exchangeable security of the Company; or (ii)
obligations of the Company to purchase redeem or otherwise acquire any of its outstanding capital stock or any interest therein
or to pay any dividend or make any other distribution in respect thereof.

 

    	Placement Agency Agreement (PIPE)	Page 9

     

    

 

(w)          The
Company has ownership or license or legal right to use all patents, copyrights, trade secrets, know-how, trademarks, trade names,
customer lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results or other
proprietary rights used in the business of the Company or its subsidiaries (collectively “Intellectual Property”).
All of such patents, registered trademarks and registered copyrights have been duly registered in, filed in or issued by the United
States Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of other jurisdictions
and have been maintained and renewed in accordance with all applicable provisions of law and administrative regulations in the
United States and all such jurisdictions. The Company believes it has taken all reasonable steps required in accordance with sound
business practice and business judgment to establish and preserve its and its subsidiaries’ ownership of all material Intellectual
Property with respect to their products and technology. To the knowledge of the Company, there is no infringement of the Intellectual
Property by any third party. To the knowledge of the Company, the present business, activities and products of the Company and
its subsidiaries do not infringe any intellectual property of any other person. There is no proceeding charging the Company or
its subsidiaries with infringement of any adversely held Intellectual Property has been filed and the Company is unaware of any
facts which are reasonably likely to form a basis for any such proceeding. There are no proceedings have been instituted or pending
or, to the knowledge of the Company, threatened, which challenge the rights of the Company or its subsidiaries to the use of the
Intellectual Property. The Intellectual Property owned by the Company and its subsidiaries, and to the knowledge of the Company,
the Intellectual Property licensed to the Company and its subsidiaries, has not been adjudged invalid or unenforceable, in whole
or in part. There is no pending or, to the knowledge of the Company, threatened proceeding by others challenging the validity or
scope of any such Intellectual Property, and the Company is unaware of any facts which are reasonably likely to form a basis for
any such claim. Each of the Company and its subsidiaries has the right to use, free and clear of material claims or rights of other
persons, all of its customer lists, designs, computer software, systems, data compilations, and other information that are required
for its products or its business as presently conducted. Neither the Company nor its subsidiaries is making unauthorized use of
any confidential information or trade secrets of any person. The activities of any of the employees on behalf of the Company or
of its subsidiaries do not violate any agreements or arrangements between such employees and third parties are related to confidential
information or trade secrets of third parties or that restrict any such employee’s engagement in business activity of any
nature. Each former and current employee or consultant of the Company or its subsidiaries is a party to a written contract with
the Company or its subsidiaries that assigns to the Company or its subsidiaries, or has received an employee handbook that requires
an employee to assign, all rights to all inventions, improvements, discoveries and information relating to the Company or its subsidiaries,
except for any failure to so do as would not reasonably be expected to result in a Material Adverse Effect. All licenses or other
agreements under which (i) the Company or its subsidiaries employs rights in Intellectual Property, or (ii) the Company or its
subsidiaries has granted rights to others in Intellectual Property owned or licensed by the Company or its subsidiaries are in
full force and effect, and there is no default (and there exists no condition which, with the passage of time or otherwise, would
constitute a default by the Company or such subsidiary) by the Company or its subsidiaries with respect thereto.

 

(x)          Friedman
LLP, which expressed its opinion with respect to the consolidated financial statements contained in the Company SEC Documents,
has advised the Company that it is or was, and to the knowledge of the Company it is or was, a registered independent public accounting
firm as and when required by the Securities Act and the rules and regulations promulgated thereunder.

 

(y)          The
Company has filed all necessary federal, state, local and foreign income and franchise tax returns and have paid or accrued all
taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been or might be asserted or threatened
against it by any taxing jurisdiction, other than any deficiency which the Company is contesting in good faith and with respect
to which adequate reserves for payment have been established.

 

(z)          The
Company maintains and will continue to maintain insurance of the types and in the amounts that the Company reasonably believes
are adequate for its business, including, but not limited to, insurance covering all real and personal property owned or leased
by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly
situated companies, all of which insurance is in full force and effect.

 

(aa)         On each Closing
Date, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection with the sale and
transfer of the Securities and the Brokers Warrants will be, or will have been, fully paid or provided for by the Company and the
Company will have complied with all laws imposing such taxes.

 

(bb)         The
Company (including its subsidiaries) is not an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940 and
will not be deemed an “investment company” as a result of the transactions contemplated by the Offering.

 

    	Placement Agency Agreement (PIPE)	Page 10

     

    

 

(cc)         The
books, records and accounts of the Company accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions
of, the assets of, and the operations of, the Company.

 

(dd)        The
Company’s report on its disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act,
is set forth in its SEC Filings, including its most recent Quarterly Report on Form 10-Q and its Annual Report on Form 10-K for
the year ended December 31, 2015.

 

(ee)         The
Registration Statement, as amended, (and any further documents to be filed with the SEC) contains all exhibits and schedules as
required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became
effective, at the date of this Agreement and at the Closing Date, complied or will comply in all material respects with the Securities
Act and the applicable rules and regulations and did not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. The Base Prospectus, and the Prospectus
Supplement, each as of its respective date, at the date of this Agreement and at the Closing Date, comply or will comply in all
material respects with the Securities Act and the applicable Rules and Regulations. Each of the Base Prospectus and the Prospectus
Supplement, as amended or supplemented, at the date of this Agreement and at the Closing Date, did not and will not contain as
of the date thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. The Registration Statement is effective under
the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or
preventing the use of the Base Prospectus or Prospectus Supplement has been issued by the SEC and no proceedings for that purpose
have been instituted or, to the knowledge of the Company, are threatened by the SEC. The Incorporated Documents, when they were
filed with the SEC, conformed in all material respects to the requirements of the Exchange Act and the applicable rules and regulations
promulgated thereunder, and none of such documents, when they were filed with the Commission, contained any untrue statement of
a material fact or omitted to state a material fact necessary to make the statements therein (with respect to Incorporated Documents
incorporated by reference in the Base Prospectus or Prospectus Supplement), in light of the circumstances under which they were
made not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the
date thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required
to be filed with the SEC. Except for this Agreement, and the various agreements entered into with prospective Investors, there
are no documents required to be filed with the SEC in connection with the transaction contemplated hereby that (x) have not been
filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. Except for this Agreement,
and the various agreements entered into with prospective Investors, there are no contracts or other documents required to be described
in the Base Prospectus or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement, which have
not been described or filed as required.

 

(ff)         The
Company is in compliance in all material respects with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that
are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are
effective as of the date hereof.

 

    	Placement Agency Agreement (PIPE)	Page 11

     

    

 

(gg)        The
Company is not a party to any collective bargaining agreement or employs any member of a union. The Company believes that its relations
with its employees are good. No executive officer of the Company has notified the Company that such officer intends to leave the
Company or otherwise terminate such officer’s employment with the Company. No executive officer of the Company, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant,
and the continued employment of each such executive officer does not subject the Company to any liability with respect to any of
the foregoing matters. The Company and its subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except
where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Company
Material Adverse Effect.

 

(hh)        None
of the Company, its subsidiaries or any executive officer of the Company has taken and will not take any action designed to or
that might reasonably be expected to cause or result in an unlawful manipulation of the price of the Common Stock to facilitate
the sale or resale of the Securities or the Warrant Shares. The Company confirms that, to its knowledge, with the exception of
the proposed sale of Securities and the use of proceeds therefrom, the terms and conditions of the Securities Purchase Agreement
and the proposed warrant modification transaction described in Schedule 4(c) to the
Securities Purchase Agreement, neither it nor any other person acting on its behalf has provided any of the potential Investors
or their agent or counsel with any information that constitutes or might constitute material, non-public information, except for
certain potential Investors that shall have entered into a confidential disclosure agreement with the Company that prohibits trading
in the Company’s securities until the material, non-public information received is publicly announced. The Company understands
and confirms that the potential Investors shall be relying on the foregoing representations in effecting transactions in securities
of the Company.

 

(ii)          The
Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision
under the Company’s certificate of incorporation or the laws of the jurisdiction of its formation which is or could become
applicable to any potential investor as a result of the transactions contemplated by the Offering, including, without limitation,
the Company’s issuance of the Securities and any potential investor’s ownership of the Securities. The Company has
not adopted a stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of its capital stock
or a change in control of the Company.

 

(jj)          The
Company acknowledges that the Placement Agent, any sub agents, legal counsel to the Company and/or their respective affiliates,
principals, representatives or employees may now or hereafter own shares of the Company.

 

B.           Representations,
Warranties and Covenants of the Placement Agent.

 

The Placement Agent hereby
represents and warrants to the Company that the following representations and warranties are true and correct as of the date of
this Agreement:

 

(a)          The
Placement Agent represents that neither it, nor to its knowledge any of its Placement Agent Covered Persons, is or will be subject
to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”) or has or will have been involved in any matter which would be a Disqualification Event except for the fact that
it occurred before September 23, 2013.

 

(b)          The
Placement Agent will notify the Company promptly in writing of any Disqualification Event relating to any Placement Agent Covered
Person not previously disclosed to the Company in accordance with the prior section.

 

    	Placement Agency Agreement (PIPE)	Page 12

     

    

 

3.           Placement
Agent’s Compensation.

 

(a)          In
connection with the Offering, the Company will pay a cash fee (the “Broker Cash Fee”) to the Placement Agent at each
Closing equal to Eight Percent (8%) of each Closing’s gross proceeds from any sale of Securities in the Offering during the
Term to Investors first contacted by the Placement Agent in connection with the Offering. The Broker Cash Fee shall be paid to
the Placement Agent in cash by wire transfer from the Company at the time of the Closing, and as a condition to closing, simultaneous
with the distribution of funds to the Company.

 

(b)          Also,
at each Closing, the Company will deliver to the Placement Agent (or its designees), warrants to purchase shares of the Company’s
Common Stock, substantially in the form of Attachment I, equal, in the aggregate, to Eight Percent (8%) of the number of
shares of Common Stock sold in the Offering (which shall not include the Warrant Shares) on which the Placement Agent receives
compensation pursuant to Section 3(a), with an initial exercise price equal to the Purchase Price (the “Broker Warrants”).
The Broker Warrants shall expire five (5) years from the date of the grant, include a net exercise provision (in the event of the
resale of the shares of common stock underlying the Broker Warrants are not then registered or in the event of a sale of the Company),
and include the customary anti-dilution provisions covering stock splits, dividends, mergers and similar transactions. To the extent
permitted by applicable laws, all warrants shall permit unencumbered transfer to the Placement Agent’s employees and affiliates
and the warrants may be issued directly to the Placement Agent’s employees and affiliates at the Placement Agent’s
request. The Broker Cash Fee and the Broker Warrants are sometimes referred to collectively as the “Placement Agent’s
Broker Compensation”.

 

(c)          All
cash compensation and warrants under this Agreement shall be paid directly by the Company to and in the name provided to the Company
by the Placement Agent.

 

B. Tail Compensation

 

Provided that an Offering
is consummated during the Offering Period, the Placement Agent shall be entitled to the Broker Cash Fee and the Broker Warrants
calculated in the manner provided in Sections 3(a) and 3(b) above with respect to any subsequent public or private offering or
other financing or capital-raising transaction of any kind (“Subsequent Financing”) to the extent that such financing
or capital is provided the Company, or to any Affiliate of the Company, by Investors whom the Placement Agent had “introduced”
(as defined below), directly or indirectly, to the Company during the Offering Period if such Subsequent Financing is consummated
at any time within the eighteen (18) month period following the earlier of expiration or termination of this Agreement or the closing
of the Offering, if an Offering is consummated (the “Tail Period”). A party “introduced” by the Placement
Agent shall mean an investor who either (i) participated in the Offering, (ii) Phil Proujansky, or (iii) participated in the 2016
financing of the Company and was introduced by the Placement Agent. An “Affiliate” of an entity shall mean any individual
or entity controlling, controlled by or under common control with such entity and any officer, director, employee, stockholder,
partner, member or agent of such entity.

 

4.           Subscription
and Closing Procedures.

 

(a)          The
Company shall cause to be delivered to the Placement Agent copies of the Subscription Documents and has consented, and hereby consents,
to the use of such copies for the purposes permitted by the Act and applicable securities laws and in accordance with the terms
and conditions of this Agreement, and hereby authorizes the Placement Agent and its agents and employees to use the Subscription
Documents in connection with the sale of the Securities until the earlier of (i) the Termination Date or (ii) the Final Closing,
and no person or entity is or will be authorized to give any information or make any representations other than those contained
in the Subscription Documents or to use any offering materials other than those contained in the Subscription Documents in connection
with the sale of the Securities, unless the Company first provides the Placement Agent with notification of such information, representations
or offering materials.

 

    	Placement Agency Agreement (PIPE)	Page 13

     

    

 

(b)          The
Company shall make available to the Placement Agent and its representatives such information, including, but not limited to, financial
information, and other information regarding the Company (the “Information”), as may be reasonably requested in making
a reasonable investigation of the Company and its affairs. The Company shall provide access to the officers, directors, employees,
independent accountants, legal counsel and other advisors and consultants of the Company as shall be reasonably requested by the
Placement Agent. The Company recognizes and agrees that the Placement Agent (i) will use and rely primarily on the Information
and generally available information from recognized public sources in performing the services contemplated by this Agreement without
independently verifying the Information or such other information, (ii) does not assume responsibility for the accuracy of the
Information or such other information, and (iii) will not make an appraisal of any assets or liabilities owned or controlled by
the Company or its market competitors.

 

(c)          Each
prospective purchaser will be required to complete and execute the Subscription Documents, Anti-Money Laundering Form, Accredited
Investor Certification and other documents which will be forwarded or delivered to the Placement Agent at the Placement Agent’s
offices at the address set forth in Section 12 hereof or to an address identified in the Subscription Documents.

 

(d)          Simultaneously
with the delivery to the Placement Agent of the Subscription Documents, the subscriber’s check or other good funds will be
forwarded directly by the subscriber to the Company. Subject to the receipt of subscriptions for the amount for Closing, the Company
will either accept or reject, for any or no reason, the Subscription Documents in a timely fashion and at each Closing will countersign
the Subscription Documents and provide duplicate copies of such documents to the Placement Agent for distribution to the subscribers.
The Company will give notice to the Placement Agent of its acceptance of each subscription. The Company, or the Placement Agent
on the Company’s behalf, will promptly return to subscribers incomplete, improperly completed, improperly executed and rejected
subscriptions and give written notice thereof to the Placement Agent upon such return.

 

(e)          If
subscriptions for have been accepted prior to the Termination Date, the funds therefor have been collected by the Company and all
of the conditions set forth elsewhere in this Agreement are fulfilled, a closing shall be held promptly with respect to the Securities
sold (the “Closing”). Thereafter, the remaining Securities will continue to be offered and sold until the earlier of
the Termination Date or the date that additional subscription amounts up to the Maximum Offering amount have been collected by
the Company. Executed certificates for the Shares and the Warrants will be in such authorized denominations and registered in such
names as the Placement Agent may request on or before the date of the Closing (“Closing Date”). The certificates will
be forwarded to the subscriber directly by the stock transfer agent as within ten (10) business days following each Closing. At
each Closing, the Company will (i) deliver irrevocable issuance instruction to its stock transfer agent for the issuance of certificates
representing the Shares being sold, and (ii) issue and deliver the applicable Warrants.

 

5.           Further
Covenants. The Company hereby covenants and agrees that:

 

(a)          Except
upon prior written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take
any action which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct
in all material respects on and as of the date of each Closing with the same force and effect as if such representations and warranties
had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

    	Placement Agency Agreement (PIPE)	Page 14

     

    

 

(b)          If,
at any time prior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect which as a result it
becomes necessary to amend or supplement the Subscription Documents so that the representations and warranties herein remain true
and correct in all material respects, or in case it shall be necessary to amend or supplement the Subscription Documents to comply
with the Securities Act or any other applicable securities laws or regulations, the Company will promptly notify the Placement
Agent and shall, at its sole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements
in such quantities as the Placement Agent may reasonably request. The Company will not at any time before the Final Closing prepare
or use any amendment or supplement to the Subscription Documents of which the Placement Agent will not previously have been advised
and furnished with a copy, or which is not in compliance in all material respects with the Act and other applicable securities
laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent and its counsel, and confirm the advice
in writing, of any order preventing or suspending the use of the Subscription Documents, or the suspension of any exemption for
such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened institution of
any proceedings for any of such purposes, and the Company will use its best efforts to prevent the issuance of any such order and,
if issued, to obtain as soon as reasonably possible the lifting thereof.

 

(c)          The
Company shall comply with the Act, the Exchange Act, the rules and regulations thereunder, all applicable state securities laws
and the rules and regulations thereunder in the states in which the Company’s Blue Sky counsel has advised the Placement
Agent and/or the Company that the Securities are exempt from qualification or registration, so as to permit the continuance of
the sales of the Securities, and will file or cause to be filed with the SEC, and shall promptly thereafter forward or cause to
be forwarded to the Placement Agent, any and all reports on Form D as are required. The Company will pay the attorney’s fee
and out of pocket expenses related to the filings for exemption from such qualifications or registration with any state securities
commissions and any other regulatory agencies. Such fees will be paid at the time of invoicing, or at the time of Closing, if known,
and if not yet invoiced, funds will be held by the Company to cover the estimated invoice. The Company will pay the invoice within
five (5) days of receipt of invoice.

 

(d)          The
Company shall apply the net proceeds from the sale of the Securities for the purposes set forth in the Subscription Documents.
Except as set forth in the Subscription Documents, the Company shall not use any of the net proceeds of the Offering to repay indebtedness
to officers (other than accrued salaries incurred in the ordinary course of business) or directors of the Company without the prior
written consent of the Placement Agent.

 

(e)          During
the Offering Period, the Company shall afford each prospective purchaser of Securities the opportunity to ask questions of and
receive answers from an officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain
such other additional information necessary to verify the accuracy of the Subscription Documents to the extent the Company possesses
such information or can acquire it without unreasonable expense.

 

(f)          Except
with the prior written consent of the Placement Agent, the Company shall not, at any time prior to the earlier of the Final Closing
or the Termination Date, except as contemplated by the Subscription Documents (i) engage in or commit to engage in any transaction
outside the ordinary course of business as described in the Subscription Documents, (ii) issue, agree to issue or set aside for
issuance any securities (debt or equity) or any rights to acquire any such securities, (iii) incur, outside the ordinary course
of business, any material indebtedness, (iv) dispose of any material assets, (v) make any material acquisition or (vi) change its
business or operations in any material respect.

 

    	Placement Agency Agreement (PIPE)	Page 15

     

    

 

(g)          Whether
or not the transactions contemplated hereby are consummated, or this Agreement is terminated, the Company shall pay
all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents
and instruments related to the Offering and the issuance of the Securities and the Brokers Warrants and will also pay for
the Company’s expenses for accounting fees, legal fees, printing costs, and other costs involved with the Offering.
The Company will provide at its own expense such quantities of the Subscription Documents and other documents and
instruments relating to the Offering as the Placement Agent may reasonably request. The Company will pay at its own expense
in connection with the creation, authorization, issuance, transfer and delivery of the Securities, including, without
limitation, fees and expenses of any transfer agent or registrar; all fees and expenses of legal, accounting and other
advisers to the Company. In addition to any fees payable to the Placement Agent hereunder and regardless of whether the
Offering is consummated, the Company hereby agrees to promptly reimburse the Placement Agent’s legal counsel fees in
the amount of Twenty-Five Thousand Dollars ($25,000) (the “Placement Agent
Legal Fee”), paid directly from the Company’s account at the time of the Closing and if no Closing, then
within five (5) days of written request to the Company by wire transfer. The Placement Agent Legal Fee is separate and apart
from the Placement Agent Broker Compensation and other expenses described herein. This reimbursement obligation is in
addition to the reimbursement of fees and expenses relating to attendance by the Placement Agent at proceedings or to
indemnification and contribution as contemplated elsewhere in this agreement. In the event any of the Placement Agent’s
personnel must attend or participate in judicial or other proceedings to which we are not a party relating to the subject
matter of this agreement, the Company shall pay the Placement Agent an additional per diem payment, per person, at its
customary rates, together with reimbursement of all out-of-pocket expenses and disbursements, including reasonable
attorneys’ fees and disbursements incurred by it in respect of its preparation for and participation in such
proceedings.

 

(h)          On
each Closing Date, the Company permits the Placement Agent to rely on any representations and warranties made by the Company to
the Investors and will cause its counsel to permit the Placement Agent to rely upon any opinion furnished to the Investors.

 

(i)          The
Company will comply with all of its obligations and covenants set forth in its agreements with the Investors in the Offering. If
not filed on EDGAR, the Company will promptly deliver to the Placement Agent and its counsel copies of any and all filings with
the SEC and each amendment or supplement thereto, as well as all prospectuses and free writing prospectuses, prior to the closing
of the Offering and six months thereafter. The Placement Agent is authorized on behalf of the Company to use and distribute copies
of any Subscription Documents, including Company’s SEC Filings in connection with the sale of the Securities as, and to the
extent, permitted by federal and applicable state securities laws. The Company acknowledges and agrees that the Placement Agent
will be relying, without assuming responsibility for independent verification, on the accuracy and completeness of all financial
and other information that is and will be furnished to them by the Company and the Company will be liable for any material misstatements
or omissions contained therein.

 

6.          Conditions
of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder to affect a Closing are subject
to the fulfillment, at or before each Closing, of the following additional conditions:

 

(a)          Each
of the representations and warranties made by the Company shall be true and correct on each Closing Date.

 

(b)          The
Company shall have performed and complied in all material respects with all agreements, covenants and conditions required to be
performed, and complied with by it at or before the Closing.

 

(c)          The
Subscription Documents do not, and as of the date of any amendment or supplement thereto will not, include any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(d)          No
order suspending the use of the Subscription Documents or enjoining the Offering or sale of the Securities shall have been issued,
and no proceedings for that purpose or a similar purpose shall have been initiated or pending, or, to the best of the Company’s
knowledge, be contemplated or threatened.

 

    	Placement Agency Agreement (PIPE)	Page 16

     

    

 

(e)          No
holder of any of the Securities from the Offering will be subject to personal liability solely by reason of being such a holder,
and except as described in the Subscription Documents, none of the Shares and Warrant Shares will be subject to preemptive or similar
rights of any stockholder or security holder of the Company, or an adjustment under the antidilution or exercise rights of any
holders of any outstanding shares of capital stock, membership units, options, warrants or other rights to acquire any securities
of the Company.

 

(f)          There
shall have been no material adverse change nor development involving a prospective change in the financial condition, operations
or projects of the Company, except where such change would not have a Company Material Adverse Effect on the business activities,
financial or otherwise, results of operations or prospects of the Company, taken individually or in the aggregate.

 

(i)          The
Placement Agent shall have received a certificate of the Chief Executive Officer of the Company, dated as of each Closing Date,
certifying, as to the fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d), (e) and (f) above.

 

(j)          The
Company shall have delivered to the Placement Agent: (i) a good standing certificate dated as of a date within 10 days prior to
the date of the Closing from the secretary of state of its jurisdiction of incorporation and (ii) resolutions of the Company’s
Board of Directors approving this Agreement and the transactions and agreements contemplated by this Agreement, and the Subscription
Documents, all as certified by the Chief Executive Officer of the Company.

 

(k)          At
Closing, the Company shall have (i) paid to the Placement Agent the respective Compensation as set forth in Section 3 above in
respect of all Securities sold at such Closing, and (ii) paid all fees, costs and expenses as set forth in Section 5 hereof. Within
five (5) Business Days of the Closing, the Company shall deliver the Brokers Warrants to the Placement Agent.

 

(l)          There
shall have been delivered to the Placement Agent a signed opinion of counsel to the Company dated as of each Closing Date, reasonably
satisfactory to the Placements Agent and its counsel.

 

(m)          All
proceedings taken at or prior to the Closing in connection with the authorization, issuance and sale of the Shares and the Warrants
will be reasonably satisfactory in form and substance to the Placement Agent and its counsel, and such counsel shall have been
furnished with all such documents, certificates and opinions as it may reasonably request upon reasonable prior notice in connection
with the transactions contemplated hereby.

 

(n)          If
in connection with the Offering, the Placement Agent determines that the Company or the Placement Agent would be required to make
a filing with the FINRA to enable the Placement Agent to act as agent in the Offering, the Company will do the following: The Company
will cooperate with the Placement Agent with respect to all FINRA filings that the Company or the Placement Agent may be required
to make and provide all information and documentation necessary to make the filings in a timely manner. The Company will pay all
any FINRA filing fees incurred in making the FINRA filings.

 

The Company agrees and
understands that this Agreement in no way constitutes a guarantee that the Offering will be successful. The Company acknowledges
that the Company is ultimately responsible for the successful completion of a transaction.

 

7.          Conditions
of the Company’s Obligations. The obligations of the Company hereunder are subject to the satisfaction of each of
the following conditions:

 

(a)          The
satisfaction or waiver of all conditions to Closing as set forth herein.

 

(b)          As
of each Closing, each of the representations and warranties made by Placement Agent herein being true and correct as of the Closing
Date for such Closing.

 

    	Placement Agency Agreement (PIPE)	Page 17

     

    

 

(c)          At
each Closing, the Company shall have received the proceeds from the sale of the Securities that are part of such Closing less applicable
Broker Fees and other deductions contemplated by this Agreement.

 

(d)          At
each Closing, the Company shall have received a copy of Subscription Documents signed by Investors delivered by the Placement Agent.

 

7A.        Mutual
Condition. The obligations of the Placement Agent and the Company hereunder are subject to the execution by each investor
of a Securities Purchase Agreement in form and substance acceptable to the Placement Agent and the Company and deposit by such
investor with the Company of all funds required to be so deposited by such investor.

 

8.           Indemnification.

 

(a)          The
Company will: (i) indemnify and hold harmless the Placement Agent, jointly and severally, their agents and their respective officers,
directors, employees, agents, selected dealers and each person, if any, who controls the Placement Agent within the meaning of
the Act and such agents (each an “Indemnitee” or a “Placement Agent Party”) against, and pay or reimburse
each Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations
in respect thereof (collectively, “Proceedings”), joint or several (which will, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including
appeals), to which any Indemnitee may become subject (a) under the Act or otherwise, in connection with the offer and sale of the
Securities and (b) as a result of the breach of any representation, warranty or covenant made by the Company herein or the failure
of the Company to perform its obligations under the Agreement, regardless of whether such losses, claims, damages, liabilities
or expenses shall result from any claim by any Indemnitee or by any third party; and (ii) reimburse each Indemnitee for any legal
or other expenses reasonably incurred in connection with investigating or defending against any such loss, claim, action, proceeding
or investigation; provided, however, the Company will not be liable in any such case to the extent that any such claim, damage
or liability of a Placement Agent resulted from that Placement Agent’s gross negligence or willful misconduct. In addition
to the foregoing agreement to indemnify and reimburse, the Company will indemnify and hold harmless each Indemnitee against any
and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof),
joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense
and investigation and all reasonable attorneys’ fees, including appeals) to which any Indemnitee may become subject insofar
as such costs, expenses, losses, claims, damages or liabilities arise out of or are based upon the claim of any person or entity
that he or it is entitled to broker’s or finder’s fees from any Indemnitee in connection with the Offering as a result
of the Company obligating itself or any Indemnitee to pay such a fee, other than fees due to the Placement Agent, their dealers,
sub-agents or finders. The foregoing indemnity agreements will be in addition to any liability the Company may otherwise have.
The Indemnitees are intended third party beneficiaries of this provision.

 

    	Placement Agency Agreement (PIPE)	Page 18

     

    

 

(b)          Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding or investigation
(the “Action”), such indemnified party, if a claim in respect thereof is to be made against the indemnifying party
under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission to so notify the indemnifying
party will not relieve it from any liability that it may have to any indemnified party under this Section 8 unless the indemnifying
party has been substantially prejudiced by such omission. The indemnifying party will be entitled to participate in and, to the
extent that it may wish, jointly with any other indemnifying party, to assume the defense thereof subject to the provisions herein
stated, with counsel reasonably satisfactory to such indemnified party. The indemnified party will have the right to employ separate
counsel in any such Action and to participate in the defense thereof, but the fees and expenses of such counsel will not be at
the expense of the indemnifying party if the indemnifying party has assumed the defense of the Action with counsel reasonably satisfactory
to the indemnified party, provided, however, that if the indemnified party shall be requested by the indemnifying party to participate
in the defense thereof or shall have concluded in good faith and specifically notified the indemnifying party either that there
may be specific defenses available to it that are different from or additional to those available to the indemnifying party or
that such Action involves or could have a material adverse effect upon it with respect to matters beyond the scope of the indemnity
agreements contained in this Agreement, then the counsel representing it, to the extent made necessary by such defenses, shall
have the right to direct such defenses of such Action on its behalf and in such case the reasonable fees and expenses of such counsel
in connection with any such participation or defenses shall be paid by the indemnifying party. No settlement of any Action against
an indemnified party will be made without the consent of the indemnifying party and the indemnified party, which consent shall
not be unreasonably withheld or delayed in light of all factors of importance to such party, and no indemnifying party shall be
liable to indemnify any person for any settlement of any such claim effected without such indemnifying party’s consent. Notwithstanding
the immediately preceding sentence, if at any time an indemnified party requests the indemnifying party to reimburse the indemnified
party for legal or other expenses in connection with investigating, responding to or defending any Proceedings as contemplated
by this indemnity agreement, the indemnifying party will be liable for any settlement of any Proceedings effected without its written
consent if (i) the proposed settlement is entered into more than 30 days after receipt by the indemnifying party of the request
for reimbursement, (ii) the indemnifying party has not reimbursed the indemnified party within 30 days of such request for reimbursement,
(iii) the indemnified party delivered written notice to the indemnifying party of its intention to settle and the failure to pay
within such 30 day period, and (iv) the indemnifying party does not, within 15 days of receipt of the notice of the intention to
settle and failure to pay, reimburse the indemnified party for such legal or other expenses and object to the indemnified party’s
seeking to settle such Proceedings.

 

9.          Contribution.
To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section
8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification
may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or
indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute
to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and the Placement Agent on the other in connection with the
statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Placement
Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before deducting expenses)
received by the Company bear to the total Placement Agent’s Compensation received by the Placement Agent. The relative fault,
in the case of an untrue statement, alleged untrue statement, omission or alleged omission will be determined by, among other things,
whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by the
Placement Agent and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement, alleged statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust
and inequitable if the respective obligations of the Company and the Placement Agent for contribution were determined by pro rata
allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method or allocation that does not
reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent misrepresentation (within
the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, each person, if any, who controls the Placement Agent within the meaning of
the Act will have the same rights to contribution as the Placement Agent, and each person, if any, who controls the Company within
the meaning of the Act will have the same rights to contribution as the Company, subject in each case to the provisions of this
Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be liable for contribution with respect to
the settlement of any claim or action effected without its written consent. This Section 9 is intended to supersede, to the extent
permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available.

 

    	Placement Agency Agreement (PIPE)	Page 19

     

    

 

10.         Termination.

 

(a)          The
Offering may be terminated by the Placement Agent at any time prior to the expiration of the Offering Period in the event that:
(i) any of the representations, warranties or covenants of the Company contained herein or in the Subscription Documents shall
prove to have been false or misleading in any material respect when actually made; (ii) the Company shall have failed to perform
any of its material obligations hereunder or under any other Company Transaction Document or any other transaction document; (iii)
there shall occur any event, within the control of the Company that is reasonably likely to materially and adversely affect the
transactions contemplated hereunder or the ability of the Company to perform hereunder; or (iv) the Placement Agent determines
that it is reasonably likely that any of the conditions to Closing to be fulfilled by the Company set forth herein will not, or
cannot, be satisfied.

 

(b)        This
Offering may be terminated by the Company at any time prior to the Termination Date in the event that (i) the Placement Agent shall
have failed to perform any of its material obligations hereunder or (ii) on account of the Placement Agent’s fraud, illegal
or willful misconduct or gross negligence. In the event of any termination by the Company, the Placement Agent shall be entitled
to receive, on the Termination Date, all unpaid respective compensation as set forth in Sections 3(a) and 3(b) herein earned or
accrued through the Termination Date and reimbursement of all expenses as provided for in this Agreement, but shall be entitled
to no other amounts whatsoever except as may be due under any indemnity or contribution obligation for provided herein, at law
or otherwise. On such Termination Date, the Company shall pay the Placement Agent’s counsel fees in connection with the Offering,
as provided for herein.

 

(c)          This
Offering may be terminated upon mutual agreement of the Company and the Placement Agent at any time prior to the expiration of
the Offering Period.

 

(d)          This
Offering and this Agreement may be terminated by the Company at any time after December 31, 2018, in the event that the Company
has not formally accepted subscriptions by such date. In the event of any termination by the Company under this clause (d) prior
to the Closing, the Placement Agent shall be entitled to receive, on the Termination Date, payment of the Placement Agent Legal
Fee and reimbursement of the Placement Agent Expenses as provided for in paragraph 5(g) of this Agreement, but the Placement Agent
shall be entitled to no other amounts whatsoever except as may be due under any indemnity or contribution obligation for provided
herein, at law or otherwise. 

 

(e)          Except
as otherwise provided above, before any termination by the Placement Agent under Section 10(a) or by the Company under Section
10(b) shall become effective, the terminating party shall give ten (10) day prior written notice to the other party of its intention
to terminate the Offering (the “Termination Notice”). The Termination Notice shall specify the grounds for the proposed
termination. If the specified grounds for termination, or their resulting adverse effect on the transactions contemplated hereby,
are curable, then the other party shall have five (5) days from the Termination Notice within which to remove such grounds or to
eliminate all of their material adverse effects on the transactions contemplated hereby; otherwise, the Offering shall terminate.

 

(f)          Upon
any termination pursuant to this Section 10, the Company will cause all monies received with respect to the subscriptions for Securities
not accepted by the Company to be promptly returned to such subscribers without interest, penalty or deduction.

 

    	Placement Agency Agreement (PIPE)	Page 20

     

    

  

11.        Survival.

 

(a)          The
obligations of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided
herein shall survive any termination hereunder. In addition, the provisions of Sections 3, and 8 through 20 shall survive the sale
of the Securities or any termination of the Offering hereunder.

 

(b)          The
respective indemnities, covenants, representations, warranties and other statements of the Company and the Placement Agent set
forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of, and regardless of any access to information by the Company or the Placement Agent, or any of their officers or directors
or any controlling person thereof, and will survive the sale of the Securities or any termination of the Offering hereunder.

 

12.        Notices.
All notice and other communications hereunder will be in writing and shall be deemed effectively given to a party by (a) personal
delivery; (b) upon deposit with the United States Post Office, by certified mail, return receipt requested, first-class mail, postage
prepaid; (c) delivered by hand or by messenger or overnight courier, addressee signature required, to the addresses below or at
such other address and/or to such other persons as shall have been furnished by the parties:

 

	If to the Company:	Neurotrope, Inc.
	 	1185 Avenue of the Americas 3rd Fl.
	 	New York NY 10036
	 	Attention: Robert Weinstein
	 	Chief Financial Officer
	 	 
	With a copy to:	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	(which shall not	666 Third Avenue
	constitute notice) 	New York, NY 10017
	 	Attention: Jeffrey Schultz, Esq.
	 	 
	If to GP Nurmenkari Inc.	GP Nurmenkari Inc.
	 	22 Elizabeth Street SONO Square Suite 1J
	 	Norwalk, CT 06854
	 	Attention:  Robert Fitzpatrick
	 	Chief Compliance Officer

 

13.         Governing
Law, Jurisdiction. This Agreement shall be deemed to have been made and delivered in New York City and shall be governed
as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State of New York without
regard to principles of conflicts of law thereof.

 

    	Placement Agency Agreement (PIPE)	Page 21

     

    

 

THE
PARTIES HERETO AGREE TO SUBMIT ALL CONTROVERSIES TO THE EXCLUSIVE JURISDICTION OF FINRA ARBITRATION IN ACCORDANCE WITH THE PROVISIONS
SET FORTH BELOW AND UNDERSTAND THAT (A) ARBITRATION IS FINAL AND BINDING ON THE PARTIES, (B) THE PARTIES ARE WAIVING THEIR RIGHTS
TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL, (C) PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT
FROM COURT PROCEEDINGS, (D) THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY
PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULES BY ARBITRATORS IS STRICTLY LIMITED, (E) THE PANEL OF FINRA ARBITRATORS
WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY, AND (F) ALL CONTROVERSIES
WHICH MAY ARISE BETWEEN THE PARTIES CONCERNING THIS AGREEMENT SHALL BE DETERMINED BY ARBITRATION PURSUANT TO THE RULES THEN PERTAINING
TO FINRA. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. JUDGMENT ON ANY AWARD OF ANY SUCH ARBITRATION
MAY BE ENTERED IN THE SUPREME COURT OF THE STATE OF NEW YORK OR IN ANY OTHER COURT HAVING JURISDICTION OVER THE PERSON OR PERSONS
AGAINST WHOM SUCH AWARD IS RENDERED. THE PARTIES AGREE THAT THE DETERMINATION OF THE ARBITRATORS SHALL BE BINDING AND CONCLUSIVE
UPON THEM. THE PREVAILING PARTY, AS DETERMINED BY SUCH ARBITRATORS, IN A LEGAL PROCEEDING SHALL BE ENTITLED TO COLLECT ANY COSTS,
DISBURSEMENTS AND REASONABLE ATTORNEY’S FEES FROM THE OTHER PARTY.  PRIOR TO FILING AN ARBITRATION, THE PARTIES
HEREBY AGREE THAT THEY WILL ATTEMPT TO RESOLVE THEIR DIFFERENCES FIRST BY SUBMITTING THE MATTER FOR RESOLUTION TO A MEDIATOR, ACCEPTABLE
TO ALL PARTIES, AND WHOSE EXPENSES WILL BE BORNE EQUALLY BY ALL PARTIES. THE MEDIATION WILL BE HELD IN THE COUNTY OF NEW YORK,
STATE OF NEW YORK, ON AN EXPEDITED BASIS. IF THE PARTIES CANNOT SUCCESSFULLY RESOLVE THEIR DIFFERENCES THROUGH MEDIATION, THE MATTER
WILL BE RESOLVED BY ARBITRATION. THE ARBITRATION SHALL TAKE PLACE IN THE COUNTY OF NEW YORK, THE STATE OF NEW YORK, ON AN EXPEDITED
BASIS. 

 

14.         Miscellaneous.

 

(a)          No
provision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.
Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations
hereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;
provided, however, that any such waiver shall be in writing specifically setting forth those provisions waived thereby. No such
waiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this Agreement. Neither party
may assign its rights or obligations under this Agreement to any other person or entity without the prior written consent of the
other party.

 

(b)          Each
party shall, without payment of any additional consideration by any other party, at any time on or after the date of any Closings,
take such further action and execute such other and further documents and instruments as the other party may reasonably request
in order to provide the other party with the benefits of this Agreement.

 

(c)          The
Parties to this Agreement each hereby confirm that they will cooperate with each other to the extent that it may become necessary
to enter into any revisions or amendments to this Agreement, in the future to conform to any federal or state regulations as long
as such revisions or amendments do not materially alter the obligations or benefits of either party under this Agreement.

 

15.         Entire
Agreement; Severability. This Agreement together with any other agreement referred to herein supersedes all prior understandings
and written or oral agreements between the parties with respect to the Offering and the subject matter hereof. If any portion of
this Agreement shall be held invalid or unenforceable, then so far as is reasonable and possible (i) the remainder of this Agreement
shall be considered valid and enforceable and (ii) effect shall be given to the intent manifested by the portion held invalid or
unenforceable.

 

    	Placement Agency Agreement (PIPE)	Page 22

     

    

 

16.         Counterparts.
This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall
be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages
by facsimile transmission or in pdf format shall constitute effective execution and delivery of this Agreement as to the parties
and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or in pdf
format shall be deemed to be their original signatures for all purposes.

 

17.         Announcement
of Offering. The Placement Agent and its counsels and advisors may, subsequent to the closing of any Offering, make
public their involvement with the Company, including use of the Company’s trademarks and logos. The Placement Agent’s
counsels and advisors are intended third party beneficiaries of this Section.

 

18.         Advice
to the Board. The Company acknowledges that any advice given by the Placement Agent to the Company is solely for benefit
and use of the Company’s board of directors and officers, who will make all decisions regarding whether and how to pursue
any opportunity or transaction, including any potential Offering. The Company’s board of directors and management may consider
such advice, but will also base their decisions on the advice of legal, tax and other business advisors and other factors which
they consider appropriate. Accordingly, as an independent contractor, the Placement Agent will not assume the responsibilities
of a fiduciary to the Company or its stockholders in connection with the performance of the services. Any advice provided may not
be used, reproduced, disseminated, quoted or referred to without prior written consent of the providing party. The Placement Agent
does not provide accounting, tax or legal advice. The Company is a sophisticated business enterprise that has retained the Placement
Agent for the limited purposes set forth in this Agreement. The parties acknowledge and agree that their respective rights and
obligations are contractual in nature. Each party disclaims an intention to impose fiduciary obligations on the other by virtue
of the engagement contemplated by this Agreement.

 

19.         Other
Investment Banking Services. The Company acknowledges that the Placement Agent and its affiliates, if applicable, are securities
firms engaged in securities trading and brokerage activities and providing investment banking and financial advisory services.
In the ordinary course of business, the Placement Agent and its affiliates may at any time hold long or short positions, and may
trade or otherwise effect transactions, for their own account or the accounts of customers, in the Company’s debt or equity
securities, its affiliates or other entities that may be involved in the transactions contemplated by this Agreement. In addition,
the Placement Agent and its affiliates may from time to time perform various investment banking and financial advisory services
for other clients and customers who may have conflicting interests with respect to the Company or the Offering. The Company also
acknowledges that the Placement Agent and its affiliates have no obligation to use in connection with this engagement or to furnish
the Company, confidential information obtained from other companies. Furthermore, the Company acknowledges the Placement Agent
may have fiduciary or other relationships whereby it or its affiliates may exercise voting power over securities of various persons,
which securities may from time to time include securities of the Company or others with interests in respect of any Offering. The
Company acknowledges that the Placement Agent or such affiliates may exercise such powers and otherwise perform our functions in
connection with such fiduciary or other relationships without regard to the Placement Agent’s relationship to the Company
hereunder.

 

20.         Successors.
This Agreement shall inure to the benefit of and be binding upon the successors of the Placement Agent and of the Company
(including any party that acquires the Company or all or substantially all of its assets or merges with the Company). Nothing expressed
or mentioned in this Agreement is intended or shall be construed to give any person or corporation, other than the parties hereto
and parties expressly referred to herein, any legal or equitable right, remedy or claim under or in respect to this Agreement or
any provision hereof. The term “successors” shall not include any purchaser of the Securities merely by reason of such
purchase. No subrogee of a benefited party shall be entitled to any benefits hereunder. Each party hereto disclaims any an intention
to impose any fiduciary obligation on any other party by virtue of the arrangements contemplated by this Agreement.

 

[Signatures on following page.]

 

    	Placement Agency Agreement (PIPE)	Page 23

     

    

 

 

If the foregoing is
in accordance with your understanding of the agreement among the Company and the Placement Agent, kindly sign and return this Agreement,
whereupon it will become a binding agreement as provided herein, between the Company and the Placement Agent in accordance with
its terms.

 

This Agreement contains
a pre-dispute arbitration provision in paragraph 13.

 

	 	NEUROTROPE, INC.
	 	 	 
	 	By:	 
	 	 	Robert Weinstein
	 	 	Chief Financial Officer
	 	 	 
	 	GP NURMENKARI INC.
	 	 	 
	 	By:	 
	 	 	Robert Fitzpatrick
	 	 	Chief Compliance Officertrtc_ex101.htm

EXHIBIT 10.1
  
 TERRA TECH CORP.
  
 2018 EQUITY INCENTIVE PLAN
  
 1. DEFINITIONS.
  
 Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Terra Tech Corp. 2018 Equity Incentive Plan, have the following meanings:
  
 Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the term Administrator means the Committee.
  
 Affiliate means a corporation, which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.
  
 Agreement means a written or electronic document setting forth the terms of a Stock Right delivered pursuant to the Plan in such form as the Administrator shall approve.
  
 Beneficial Owner has the meaning assigned to such term in Rule 13d-3 and Rule 13d 5 under the Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" shall be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.
  
 Board of Directors means the Board of Directors of the Company.
  
 California Participant means a Participant who resides in the State of California.
  
 Cause means, with respect to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non‐feasance of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate, and (e) conduct substantially prejudicial to the business of the Company or any Affiliate; provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant. The determination of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.
  
  	 
	1
	 
 
	 

  
 Change of Control means the occurrence of any one or more of the following events (unless otherwise specified in an Award Agreement that is subject to Section 409A of the Code):
  
 (i) any Person (other than the Company, any trustee, or other fiduciary holding securities under any employee benefit plan of the Company or any entity owned, directly or indirectly, by the stockholders of the Company immediately prior to the occurrence with respect to which the evaluation is being made in substantially the same proportions as their ownership of the Common Stock of the Company) becomes the Beneficial Owner (except that a Person shall be deemed to be the Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants, or options or otherwise, without regard to the 60-day period referred to in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company, representing 35% or more of the combined voting power of the Company's then-outstanding securities;
  
 (ii) during any twelve-month period, a majority of the members of the Board is replaced by individuals, who were not members of the Board at the Effective Date and whose election by the Board or nomination for election by the Company's stockholders was not approved by a vote of at least a majority of the directors then still in office, who either were directors at the Effective Date or whose election or nomination for election was previously so approved;
  
 (iii) the consummation of a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity) 35% or more of the combined voting power of the surviving or resulting entity outstanding immediately after such merger or consolidation; or
  
 (iv) the consummation of a sale or disposition of all or substantially all of the assets of the Company (other than such a sale or disposition immediately after which such assets will be owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock of the Company immediately prior to such sale or disposition).
  
 Code means the United States Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.
  
 Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.
  
  	 
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 Common Stock means shares of the Company’s common stock, $.001 par value per share.
  
 Company means Terra Tech Corp., a Nevada corporation.
  
 Consultant means any natural person who is an advisor or consultant who provides bona fide services to the Company or its Affiliates, provided that such services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities.
  
 Corporate Transaction means a merger, consolidation, or sale of all or substantially all of the Company’s assets or the acquisition of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity other than a transaction to merely change the state of incorporation.
  
 Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code.
  
 Effective Date shall mean the date as of which this Plan is adopted by the Board.
  
 Employee means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.
  
 Exchange Act means the United States Securities Exchange Act of 1934, as amended.
  
 Fair Market Value of a Share of Common Stock means:
  
 If the Common Stock is listed on a national securities exchange or traded in the over‐the‐counter market and sales prices are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; 
  
 If the Common Stock is not traded on a national securities exchange but is traded on the over‐the‐counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and
  
  	 
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 If the Common Stock is neither listed on a national securities exchange nor traded in the over‐the‐counter market, such value as the Administrator, in good faith, shall determine in compliance with applicable laws.
  
 ISO means an option intended to qualify as an incentive stock option under Section 422 of the Code.
  
 Non‐Qualified Option means an option which is not intended to qualify as an ISO.
  
 Option means an ISO or Non‐Qualified Option granted under the Plan.
  
 Participant means an Employee, director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As used herein, “Participant” shall include “Participant’s Survivors” where the context requires.
  
 Performance-Based Award means a Stock Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set forth in Paragraph 9 hereof.
  
 Performance Goals means performance goals determined by the Committee in its sole discretion and set forth in an Agreement. The satisfaction of Performance Goals shall be subject to certification by the Committee. The Committee has the authority to take appropriate action with respect to the Performance Goals (including, without limitation, making adjustments to the Performance Goals or determining the satisfaction of the Performance Goals in connection with a Corporate Transaction) provided that any such action does not otherwise violate the terms of the Plan.
  
 Person has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including "group" as defined in Section 13(d) thereof. 
  
 Plan means this Terra Tech Corp. 2018 Equity Incentive Plan.
  
 Securities Act means the United States Securities Act of 1933, as amended.
  
 Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.
  
 Stock-Based Award means a grant by the Company under the Plan of an equity award or an equity based award, which is not an Option or a Stock Grant.
  
 Stock Grant means a grant by the Company of Shares under the Plan.
  
  	 
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 Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.
  
 Survivor means a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution.
  
 2. PURPOSES OF THE PLAN.
  
 The Plan is intended to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non‐Qualified Options, Stock Grants and Stock-Based Awards.
  
 3. SHARES SUBJECT TO THE PLAN.
  
 (a) The number of Shares which may be issued from time to time pursuant to this Plan shall be the sum of: (i) 6,600,000 shares of Common Stock and (ii) any shares of Common Stock that are represented by awards granted under the Company’s Terra Tech Corp. 2016 Equity Incentive Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which result in the forfeiture of shares of Common Stock back to the Company on or after December 11, 2018, or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 25 of this Plan; provided, however, that no more than 2,000,000 Shares shall be added to the Plan pursuant to subsection (ii).
  
 (b) If an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender or withholding of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by the tender or withholding of Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued. In addition, Shares repurchased by the Company with the proceeds of the option exercise price may not be reissued under the Plan. However, in the case of ISOs, the foregoing provisions shall be subject to any limitations under the Code.
  
  	 
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 4. ADMINISTRATION OF THE PLAN.
  
 The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to:
  
 (a) Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable for the administration of the Plan;
  
 (b) Determine which Employees, directors and Consultants shall be granted Stock Rights;
  
 (c) Determine the number of Shares for which a Stock Right or Stock Rights shall be granted.
  
 (d) Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted provided that no dividends or dividend equivalents shall be paid on any Stock Right prior to the vesting of the underlying Shares.
  
 (e) Amend any term or condition of any outstanding Stock Right, other than reducing the exercise price or purchase price or extending the expiration date of an Option, provided that (i) such term or condition as amended is not prohibited by the Plan; (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors; and (iii) any such amendment shall be made only after the Administrator determines whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section 409A of the Code; 
  
 (f) Determine and make any adjustments in the Performance Goals included in any Performance-Based Awards in compliance with (d) above; and
  
 (g) Adopt any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;
  
 provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of potential tax consequences under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.
  
  	 
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 To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing, only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any “officer” of the Company as defined by Rule 16a-1 under the Exchange Act.
  
 5. ELIGIBILITY FOR PARTICIPATION.
  
 The Administrator will, in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to Employees who are deemed to be residents of the United States for tax purposes. Non‐Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate. The granting of any Stock Right to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.
  
 6. TERMS AND CONDITIONS OF OPTIONS.
  
 Each Option shall be set forth in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions:
  
 (a) Non‐Qualified Options: Each Option intended to be a Non‐Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non‐Qualified Option:
  
  	  
	(i)	Exercise Price: Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of the Common Stock on the date of grant of the Option.
	  
	  
	  

	  
	(ii)	Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

  
  	 
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	(iii)	Option Vesting Periods: Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain performance conditions or the attainment of stated goals or events. For California Participants, the exercise period of the Option set forth in the Option Agreement shall not be more than 120 months from the date of grant.
	  
	  
	  

	  
	(iv)	Additional Conditions: Exercise of any Option may be conditioned upon the Participant’s execution of a shareholders agreement in a form satisfactory to the Administrator providing for certain protections for the Company and its other shareholders, including requirements that:

  
  	  
	A.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and
	  
	  
	  

	  
	B.	The Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

  
  	  
	(v)	Term of Option: Each Option shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement may provide.

  
 (b) ISOs: Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal Revenue Service:
  
  	  
	(i)	Minimum Standards: The ISO shall meet the minimum standards required of Non‐Qualified Options, as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.
	  
	  
	  

	  
	(ii)	Exercise Price: Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

  
  	  
	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value per share of the Common Stock on the date of grant of the Option; or
	  
	  
	  

	  
	B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of the Common Stock on the date of grant of the Option.

  
  	 
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	(iii)	Term of Option: For Participants who own:

  
  	  
	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement may provide; or
	  
	  
	  

	  
	B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may provide.

  
  	  
	(iv)	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined on the date each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed $100,000.

  
 7. TERMS AND CONDITIONS OF STOCK GRANTS.
  
 Each Stock Grant to a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. For California Participants, each Stock Grant shall be issued within ten years from the earlier of the date the Plan is adopted or approved by the Company’s shareholders. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:
  
 (a) Each Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by the Nevada General Corporation Law, if any, on the date of the grant of the Stock Grant;
  
 (b) Each Agreement shall state the number of Shares to which the Stock Grant pertains; 
  
 (c) Each Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including the time period or attainment of Performance Goals or such other performance criteria upon which such rights shall accrue and the purchase price therefor, if any; and
  
  	 
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 (d) Dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) may accrue but shall not be paid prior to the time, and may be paid only to the extent that the restrictions or rights to reacquire the Shares subject to the Stock Grant lapse.
  
 8. TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS. 
  
 The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company. Each Agreement shall include the terms of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of any vesting conditions, Performance Goals or events upon which Shares shall be issued, provided that dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) or dividend equivalents may accrue but shall not be paid prior to and may be paid only to the extent that the Shares subject to the Stock-Based Award vest. Under no circumstances may the Agreement covering stock appreciation rights (a) have an exercise or base price (per share) that is less than the Fair Market Value per share of Common Stock on the date of grant or (b) expire more than ten years following the date of grant.
  
 The Company intends that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings) shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent as described in this Paragraph 8.
  
 9. PERFORMANCE-BASED AWARDS.
  
 The Committee shall determine whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant and, if they have, to so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be issued for such performance period until such certification is made by the Committee. The number of Shares issued in respect of a Performance-Based Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such performance period , and any dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) or dividend equivalents that accrue shall only be paid in respect of the number of Shares earned in respect of such Performance-Based Award.
  
  	 
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 10. EXERCISE OF OPTIONS AND ISSUE OF SHARES.
  
 An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate cash exercise price for the number of Shares as to which the Option is being exercised; or (c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being exercised; or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator; or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code.
  
 The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.
  
 11. PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.
  
 Any Stock Grant or Stock-Based Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being granted shall be made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having a Fair Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award; or (c) at the discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may determine.
  
  	 
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 The Company shall when required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance.
  
 12. RIGHTS AS A SHAREHOLDER.
  
 No Participant to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase price, if any, for the Shares being purchased and registration of the Shares in the Company’s share register in the name of the Participant.
  
 13. ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.
  
 By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that no Stock Right may be transferred by a Participant for value. For California Participants, Stock Rights shall not be transferable by the Participant other than by will or by the laws of descent and distribution, to a revocable trust, or as permitted by Rule 701 of the Securities Act. Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph. Except as provided above during the Participant’s lifetime a Stock Right shall only be exercisable by or issued to such Participant (or his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void.
  
  	 
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 14. EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.
  
 Except as otherwise provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:
  
 (a) A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such term as the Administrator has designated in a Participant’s Option Agreement. For Options granted to California Participants, notwithstanding the terms of any Option Agreement, such Option shall be exercisable for at least 30 days from the date of a Participant’s termination of employment other than for Cause, but in no event later than the originally prescribed term of the Option.
  
 (b) Except as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be an ISO, be exercised later than three months after the Participant’s termination of employment. 
  
 (c) The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.
  
 (d) Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then such Participant shall forthwith cease to have any right to exercise any Option.
  
 (e) A Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than three months, unless pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option on the date that is six months following the commencement of such leave of absence.
  
 (f) Except as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.
  
  	 
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 15. EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE.
  
 Except as otherwise provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her outstanding Options have been exercised:
  
 (a) All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will immediately be forfeited.
  
 (b) Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited.
  
 16. EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.
  
 Except as otherwise provided in a Participant’s Option Agreement:
  
 (a) A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant to the extent that the Option has become exercisable but has not been exercised on the date of the Participant’s termination of service due to Disability; and in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability. 
  
 (b) A Disabled Participant may exercise the Option only within the period ending one year after the date of the Participant’s termination of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not been terminated due to Disability and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option. Notwithstanding the terms of any Option Agreement, for Options granted to California Participants, a Participant may exercise such rights for at least six months from the date of termination of service due to Disability but in no event later than the originally prescribed term of the Option.
  
 (c) The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.
  
  	 
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 17. EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.
  
 Except as otherwise provided in a Participant’s Option Agreement:
  
 (a) In the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors to the extent that the Option has become exercisable but has not been exercised on the date of death; and in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death.
  
 (b) If the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option. For Options granted to California Participants, notwithstanding the terms of any Option Agreement, the Participant’s Survivors shall be allowed to take all necessary steps to exercise the Option for at least six months from the date of death of such Participant but in no event later than the originally prescribed term of the Option. 
  
 18. EFFECT OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS AND STOCK-BASED AWARDS.
  
 In the event of a termination of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.
  
 For purposes of this Paragraph 18 and Paragraph 19 below, a Participant to whom a Stock Grant or a Stock-Based Award has been issued under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.
  
 In addition, for purposes of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.
  
  	 
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 19. EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH OR DISABILITY.
  
 Except as otherwise provided in a Participant’s Agreement, in the event of a termination of service for any reason (whether as an Employee, director or Consultant), other than termination for Cause, death or Disability for which there are special rules in Paragraphs 20, 21, and 22 below, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant or Stock-Based Award as to which the Company’s forfeiture or repurchase rights have not lapsed.
  
 20. EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.
  
 Except as otherwise provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause:
  
 (a) All Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.
  
 (b) Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then all Shares subject to any Stock Grant or Stock-Based Award that remained subject to forfeiture provisions or as to which the Company had a repurchase right on the date of termination shall be immediately forfeited to the Company.
  
 21. EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR DISABILITY.
  
 Except as otherwise provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability.
  
  	 
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 The Administrator shall make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.
  
 22. EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.
  
 Except as otherwise provided in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death as would have lapsed had the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of death.
  
 23. PURCHASE FOR INVESTMENT.
  
 Unless the offering and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation to issue Shares under the Plan unless and until the following conditions have been fulfilled:
  
 (a) The person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to such exercise or such grant of a Stock Right:
  
 “The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”
  
 (b) At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in compliance with the Securities Act without registration thereunder.
  
  	 
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 24. DISSOLUTION OR LIQUIDATION OF THE COMPANY.
  
 Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Agreement.
  
 25. ADJUSTMENTS.
  
 Upon the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement.
  
 (a) Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise, base or purchase price per share and in the Performance Goals applicable to outstanding Performance-Based Awards to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the occurrence of such events.
  
 (b) Corporate Transactions. If the Company is to be consolidated with or acquired by another entity in a Corporate Transaction, the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either: (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised (either (A) to the extent then exercisable or (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph) less the aggregate exercise price thereof. For purposes of determining the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in whole or in part, is other than cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.
  
  	 
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 With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived upon such Corporate Transaction).
  
 In taking any of the actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all Stock Rights held by a Participant, or all Stock Rights of the same type, identically.
  
 (c) Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.
  
 (d) Adjustments to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the Successor Board shall determine the specific adjustments to be made under this Paragraph 25, including, but not limited to, the effect of any Corporate Transaction and, subject to Paragraph 4, its determination shall be conclusive.
  
 (e) Modification of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification” of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments made with respect to Options would constitute a modification or other adverse tax consequence, it may in its discretion refrain from making such adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).
  
  	 
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 26. ISSUANCES OF SECURITIES.
  
 Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.
  
 27. FRACTIONAL SHARES.
  
 No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional shares equal to the Fair Market Value thereof.
  
 28. WITHHOLDING.
  
 In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act withholdings or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. 
  
 29. NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.
  
 Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any Shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such Shares before the later of (a) two years after the date the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Employee has died before such Shares are sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.
  
  	 
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 30. TERMINATION OF THE PLAN.
  
 The Plan will terminate on December 11, 2028, the date which is ten years from the earlier of the date of its adoption by the Board of Directors and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed prior to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights theretofore granted.
  
 31. AMENDMENT OF THE PLAN AND AGREEMENTS.
  
 The Plan may be amended by the shareholders of the Company. The Plan may also be amended by the Administrator; provided that any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval including, without limitation, to the extent necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded ISOs under Section 422 of the Code and to the extent necessary to qualify the Shares issuable under the Plan for listing on any national securities exchange or quotation in any national automated quotation system of securities dealers. Other than as set forth in Paragraph 25 of the Plan, the Administrator may not without shareholder approval reduce the exercise price of an Option or cancel any outstanding Option in exchange for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based Award or for cash. In addition, the Administrator not take any other action that is considered a direct or indirect “repricing” for purposes of the shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which the Shares are listed, including any other action that is treated as a repricing under generally accepted accounting principles. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him or her, unless such amendment is required by applicable law or necessary to preserve the economic value of such Stock Right. With the consent of the Participant affected, the Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant. Nothing in this Paragraph 31 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 25.
  
  	 
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 32. EMPLOYMENT OR OTHER RELATIONSHIP.
  
 Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period of time.
  
 33. SECTION 409A.
  
 If a Participant is a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service, or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s separation from service.
  
 The Administrator shall administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the Code, but neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person acting hereunder on behalf of the Company, the Administrator or the Board shall be liable to a Participant or any Survivor by reason of the acceleration of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure to satisfy the requirements of Section 409A of the Code or otherwise.
  
 34. INDEMNITY.
  
 Neither the Board nor the Administrator, nor any members of either, nor any employees of the Company or any parent, subsidiary, or other Affiliate, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with their responsibilities with respect to this Plan, and the Company hereby agrees to indemnify the members of the Board, the members of the Committee, and the employees of the Company and its parent or subsidiaries in respect of any claim, loss, damage, or expense (including reasonable counsel fees) arising from any such act, omission, interpretation, construction or determination to the full extent permitted by law.
  
 35. CLAWBACK.
  
 Notwithstanding anything to the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any Stock Right (whether or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that the Company’s Clawback Policy as then in effect is triggered.
  
 36. GOVERNING LAW.
  
 This Plan shall be construed and enforced in accordance with the law of the State of Nevada.
  
  
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