Document:

EXHIBIT 10.1

 

EMPLOYMENT,
CONFIDENTIALITY AND PROPRIETARY RIGHTS AGREEMENT

 

This
Employment, Confidentiality and Proprietary Rights Agreement (“Agreement”) is entered into as of the 19th
day of June, 2015 (the “Effective Date”) by and between DigiPath, Inc. (the “Company”), and Todd
Peterson (the “Employee”).

 

WHEREAS,
the Company desires to employ the Employee as the Chief Financial Officer of the Company in accordance with the terms and provisions
of this Agreement, and the Employee desires to serve the Company in such capacity.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree
as follows:

 

1.
Employment. The Company hereby employs the Employee, and the Employee hereby accepts employment by the Company,
upon the terms and subject to the conditions set forth in this Agreement. Employee shall be employed as the Chief Financial Officer
of the Company, and shall render such services and have such duties as are customary for such position, including, without limitation,
those services and duties set forth in the Schedule attached hereto or as the Board of Directors or Chief Executive Officer of
the Company may request from time to time.

 

2.
Compensation. For the services rendered by Employee under this Agreement, the Company shall pay the Employee the
compensation specified in the Schedule.

 

3.
Term and Survivability. The term of this Agreement shall be for successive three-month periods starting from the
Effective Date and shall renew automatically at the end of each three-month term unless cancelled by either party upon not less
than ten (10) day’s written notice prior to the end of the term. Upon termination of this Agreement the following sections
of this Agreement shall survive such termination: Sections 3, 5, 6, 7, 8, 10, 11, 12 and 14.

 

4. Costs
and Expenses of Employee’s Performance. Except as set forth on the Schedule, all costs and expenses
of Employee’s performance hereunder shall be borne by the Employee.

 

5.
Confidentiality. Employee agrees that Employee will not, except when required by applicable law or order of a court,
during the term of this Agreement or thereafter, disclose directly or indirectly to any person or entity, or copy, reproduce or
use, any Trade Secrets (as defined below) or Confidential Information (as defined below) or other information treated as confidential
by the Company, known, learned or acquired by the Employee during the period of the Employee’s employment by the Company.
For purposes of this Agreement, “Confidential Information” shall mean any and all Trade Secrets, knowledge, data or
know-how of the Company, any of its affiliates or of third parties in the possession of the Company or any of its affiliates,
and any nonpublic technical, training, financial and/or business information treated as confidential by the Company or any of
its affiliates, whether or not such information, knowledge, Trade Secret or data was conceived, originated, discovered or developed
by Employee hereunder. For purposes of this Agreement, “Trade Secrets” shall include, without limitation, any formula,
concept, pattern, processes, designs, device, software, systems, list of customers, training manuals, marketing or sales or service
plans, business plans, marketing plans, financial information, or compilation of information which is used in the Company’s
business or in the business of any of its affiliates. Any information of the Company or any of its affiliates, which is not readily
available to the public, shall be considered to be a Trade Secret unless the Company advises Employee in writing otherwise. Employee
acknowledges that all of the Confidential Information is proprietary to the Company and is a special, valuable and unique asset
of the business of the Company, and that Employee’s employment by the Company has created, creates and will continue to
create a relationship of confidence and trust between the Employee and the Company with respect to the Confidential Information.
Furthermore, Employee shall immediately notify the Company of any information, which comes to its attention, which might indicate
that there has been a loss of confidentiality with respect to the Confidential Information. In such event, Employee shall take
all reasonable steps within its power to limit the scope of such loss.

 

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6.
Return of the Company’s Proprietary Materials. Employee agrees to deliver promptly to the Company on termination
of this Agreement for whatever reason, or at any time the Company may so request, all documents, records, artwork, designs, data,
drawings, flowcharts, listings, models, sketches, apparatus, notebooks, disks, notes, copies and similar repositories of Confidential
Information and any other documents of a confidential nature belonging to the Company, including all copies, summaries, records,
descriptions, modifications, drawings or adaptations of such materials which Employee may then possess or have under its control.
Concurrently with the return of such proprietary materials to the Company, Employee agrees to deliver to the Company such further
agreements and assurances to ensure the confidentiality of proprietary materials.

 

7.
Assignment of Proprietary Rights. Other than the Proprietary Rights (as defined below) listed on the Schedule attached
hereto, if any, Employee hereby assigns and transfers to the Company all right, title and interest that Employee may have, if
any, in and to all Proprietary Rights (whether or not patentable or copyrightable) made, conceived, developed, written or first
reduced to practice by Employee, whether solely or jointly with others, during the period of Employee’s employment with
the Company which relate in any way to the actual or anticipated business or research and development of the Company, or result
from or are suggested by any task assigned to Employee or by any of the work Employee has performed or may perform for the Company.
Employee acknowledges and agrees that the Company shall have all right, title and interest in, among other items, all research
information and all documentation or manuals related thereto that Employee develops or prepares for the Company during the period
of Employee’s employment by the Company and that such work by Employee shall be work made for hire and that the Company
shall be the sole author thereof for all purposes under applicable copyright and other intellectual property laws. Other than
the Proprietary Rights listed on the Schedule attached hereto, Employee represents and covenants to the Company that there are
no Proprietary Rights relating to the Company’s business which were made by Employee prior to Employee’s employment
by the Company. Employee agrees promptly to disclose in writing to the Company all Proprietary Rights in order to permit the Company
to claim rights to which it may be entitled under this Agreement. With respect to all Proprietary Rights which are assigned to
the Company pursuant to this Section 7, Employee will assist the Company in any reasonable manner to obtain for the Company’s
benefit patents and copyrights thereon in any and all jurisdictions as may be designated by the Company, and Employee will execute,
when requested, patent and copyright applications and assignments thereof to the Company, or other persons designated by the Company,
and any other lawful documents deemed necessary by the Company to carry out the purposes of this Agreement. Employee will further
assist the Company in every way to enforce any patents, copyrights and other Proprietary Rights of the Company. “Proprietary
Rights” means any ideas, concepts, information, materials, processes, data, programs, know-how, improvements, discoveries,
developments, designs, artwork, formulae, other copyrightable works, and techniques and all Intellectual Property Rights in any
of the items listed above. The term “Intellectual Property Rights” means all trade secrets, copyrights, trademarks,
mask work rights, patents and other intellectual property rights recognized by the laws of any jurisdiction or country.

 

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8.
Trade Secrets of Others. Employee represents to the Company that its performance of all the terms of this Agreement
does not and will not breach any agreement to keep in confidence proprietary information or trade secrets acquired by Employee
in confidence or in trust prior to his employment by the Company, and Employee will not disclose to the Company, or induce the
Company to use, any confidential or proprietary information or material belonging to others. Employee agrees not to enter into
any agreement, either written or oral, in conflict with this Agreement.

 

9.
Other Obligations. Employee acknowledges that the Company, from time to time, may have agreements with other persons
which impose obligations or restrictions on the Company regarding proprietary rights made or developed during the course of work
hereunder or regarding the confidential nature of such work. Employee agrees to be bound by all such obligations and restrictions
and to take all action necessary to discharge the obligations of the Company hereunder.

 

10.
Non-Solicit. Employee will not, during the term this Agreement and for one year thereafter, directly or indirectly
(whether as an owner, partner, shareholder, agent, officer, director, employee, independent contractor, consultant, or otherwise)
with or through any individual or entity: (i) employ, engage or solicit for employment any individual who is, or was at any time
during the twelve-month period immediately prior to the termination of this Agreement for any reason, an employee of the Employee,
or otherwise seek to adversely influence or alter such individual’s relationship with the Employee; or (ii) solicit or encourage
any individual or entity that is, or was during the twelve-month period immediately prior to the termination of this Agreement
for any reason, a customer or vendor of the Employee to terminate or otherwise alter his, her or its relationship with the Employee
or any of its affiliates.

 

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11.
Equitable Remedies. In the event of a breach or threatened breach of the terms of this Agreement by Employee, the
parties hereto acknowledge and agree that it would be difficult to measure the damage to the Company from such breach, that injury
to the Company from such breach would be impossible to calculate and that monetary damages would therefore be an inadequate remedy
for any breach. Accordingly, the Company, in addition to any and all other rights which may be available, shall have the right
of specific performance, injunctive relief and other appropriate equitable remedies to restrain any such breach or threatened
breach without showing or proving any actual damage to the Company.

 

12.
Governing Law. This Agreement shall be governed, construed and interpreted in accordance with the internal laws
of the State of Nevada. In the event a judicial proceeding is necessary, the sole forum for resolving disputes arising under or
relating to this Agreement are the federal and State courts located in Las Vegas, Nevada and all related appellate courts, and
the parties hereby consent to the jurisdiction of such courts, and that venue shall be in Las Vegas, Nevada.

 

13.
Entire Agreement: Modifications and Amendments. The terms of this Agreement are intended by the parties as a final
expression of their agreement with respect to such terms as are included in this Agreement and may not be contradicted by evidence
of any prior or contemporaneous agreement. The Schedule referred to in this Agreement is incorporated into this Agreement by this
reference. This Agreement may not be modified, changed or supplemented, nor may any obligations hereunder be waived or extensions
of time for performance granted, except by written instrument signed by the parties or by their agents duly authorized in writing
or as otherwise expressly permitted herein.

 

14.
Attorney Fees. Should any party institute any action or proceeding to enforce this Agreement or any provision hereof,
or for damages by reason of any alleged breach of this Agreement or of any provision hereof, or for a declaration of rights hereunder,
the prevailing party in any such action or proceeding shall be entitled to receive from the other party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in connection with such action or proceeding.

 

15. Prohibition
of Assignment. This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by
Employee without the prior written consent of the Company. Any assignment of rights or delegation of duties or
obligations hereunder made without such prior written consent shall be void and of no effect.

 

16.
Binding Effect: Successors and Assignment. This Agreement and the provisions hereof shall be binding upon each of
the parties, their successors and permitted assigns.

 

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17.
Validity. This Agreement is intended to be valid and enforceable in accordance with its terms to the fullest extent
permitted by law. If any provision of this Agreement is found to be invalid or unenforceable by any court of competent Jurisdiction,
the invalidity or unenforceability of such provision shall not affect the validity or enforceability of all the remaining provisions
hereof.

 

18.
Notices. All notices and other communications hereunder shall be in writing and, unless otherwise provided herein,
shall be deemed duly given if delivered personally or by telecopy or mailed by registered or certified mail (return receipt requested)
or by Federal Express or other similar courier service to the parties at the following addresses or (at such other address for
the party as shall be specified by like notice).

 

	 	(i)
    If to the Company:	 
	 	 	 
	 	 	DigiPath, Inc.
	 	 	6450 Cameron Street
    Suite 113 
	 	 	Las Vegas, NV
    89118
	 	 	Todd@digipath.com
	 	 	 
	 	(ii) If to the
    Employee:	 
	 	 	 
	 	 	Todd Peterson
	 	 	3608 Mallardwood
    Drive
	 	 	Las Vegas, Nevada
    89129
	 	 	email:
    accounting@digipath.com

 

Any
such notice, demand or other communication shall be deemed to have been given on the date personally delivered or as of the date
mailed, as the case may be.

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date written above.

 

	 	DIGIPATH, INC.
	 	 	 
	 	By:	/s/
    Todd Denkin
	 	Name:	Todd Denkin
	 	Title:	Chief Executive
    Officer
	 	 	 
	 	EMPLOYEE:
	 	 
	 	/s/
    Todd Peterson
	 	Todd
    Peterson

 

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Schedule

 

	1.
	DUTIES
	 	 
	 	The
    Employee shall have the titles CFO, Treasurer and Secretary with duties and responsibilities commensurate with such titles
    of a publicly-reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
    shall be responsible for the following:

 

	 	a)
    	Preparation
    of the Company’s financial statements
	 	 	 
	 	b)	Oversight
and management of the Company’s accounting function
	 	 	 
	 	c)
    	Oversight
    of the Company’s internal controls
	 	 	 
	 	d)
    	Review
    of contracts and agreements
	 	 	 
	 	e)
    	Act
    as Company point person in connection with auditor quarterly reviews and annual audits 
	 	 	 
	 	f)
    	Be
    primarily responsible for timely filing of all required periodic reports under the Exchange Act
	 	 	 
	 	g)
    	Perform
    additional duties from time to time as reasonable requested by email from the Chief Executive Officer 

 

	2.	SCHEDULE AND
    COMMITMENT OF TIME:
	 	 
	 	Employee will
    work a minimum of 30 hours per week. Work need not be performed at Company offices unless reasonably requested by the Company’s
    Chief Executive Officer.
	 	 
	3.	REPORTING SCHEDULE:
	 	 
	 	Employee shall
    report to the Chief Executive Officer and Board of Directors.
	 	 
	4.	COMPENSATION
    AND PAYMENT TERMS:
	 	 
	 	The Employee
    shall be paid $7,500 per month for the above services in accordance with the Company’s regular payroll practices. An
    additional $500 per month will be paid to Employee to cover medical insurance until such time as the company provides benefits.
	 	 
	 	In addition,
    Employee will be granted cashless options to purchase 100,000 shares of the Company’s common stock with an exercise
    price equal to the closing price of the Company’s common stock on the Effective Date, vesting quarterly over the one-year
    period following the grant date, exercisable over a ten year period from the Effective Date.
	 	 
	5.	EXPENSES:
	 	 
	 	All expenses
    shall be pre-approved in advance by Company in order to qualify for reimbursement. An email authorization by an officer of
    Company shall be deemed valid for this approval.Exhibit 10.1

 

AMENDMENT TO SERIES A WARRANTS AND
SERIES C WARRANTS TO PURCHASE COMMON STOCK

 

This Amendment to Series
A Warrants and Series C Warrants to Purchase Common Stock (the “Amendment”) by and between Arch Therapeutics,
Inc., a Nevada corporation (the “Company”), and Cranshire Capital Master Fund, Ltd. (“Cranshire”)
is made as of June 22, 2015 (the “Effective Date”).

 

RECITALS

 

WHEREAS, on
January 30, 2014, the Company entered into that certain Securities Purchase Agreement (the “Securities Purchase Agreement”)
with the investors named on the Schedule of Buyers attached thereto (collectively, the “Holders”) pursuant to
which, among other things, the Company issued to the Holders shares of Common Stock (as defined in the Series A Warrants and Series
C Warrants (each as defined in the Securities Purchase Agreement)) and the Series A Warrants and Series C Warrants;

 

WHEREAS, Section
2(b) of the Series A Warrants and Series C Warrants provides that upon certain issuances or sales or deemed issuances or sales
of shares of Common Stock for a consideration per share (the “New Issuance Price”) at less than a price equal
to the Exercise Price in effect immediately prior to such issuance or sale or deemed issuance or sale (a “Dilutive Issuance”),
the Exercise Price in effect immediately prior to such Dilutive Issuance shall be reduced to an amount equal to the New Issuance
Price (the “Anti-Dilution Adjustment Provision”);

 

WHEREAS, the
Expiration Date of the Series C Warrants is 5:00 p.m., New York time, on July 2, 2015;

 

WHEREAS, Section
9 of the Series A Warrants and Series C Warrants provides that the provisions of the Series A Warrants and Series C Warrants
may be amended only with the written consent of the Company and the Significant Buyers (as defined in the Securities Purchase Agreement);

 

WHEREAS, Cranshire
is the only Significant Buyer;

 

WHEREAS, the
Company and Cranshire, in its capacity as the only Significant Buyer, now wish to amend (i) the Series A Warrants and Series C
Warrants to terminate the Anti-Dilution Adjustment Provision; and (ii) the Series C Warrants to extend the Expiration Date, in
each case on the terms and conditions set forth herein (collectively, the “Warrant Amendments”); and

 

WHEREAS, in
consideration for Cranshire entering into the Warrant Amendments, the Company has agreed to offer to issue to the Holders or their
successors and assigns, as applicable, the Inducement Shares (as defined below), on the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the foregoing and for good and valuable consideration, the receipt and sufficiency which are hereby acknowledged,
the Parties hereby agree as follows:

 

		1.	Definitions. Capitalized terms not otherwise defined in this Amendment shall have the meaning given to them in the Series
A Warrants and Series C Warrants.

 

    	 

    	 

    

 

		2.	Amendments to Series B Warrants.

 

		a.	Section 2(b). Section 2(b)
to the Series A Warrants is hereby deleted in its entirety and replaced with the following as of the Effective Date:

 

“(b)     [Reserved]”

 

		3.	Amendments to Series C Warrants.

 

		a.	Section 2(b). Section 2(b)
to the Series C Warrants is hereby deleted in its entirety and replaced with the following as of the Effective Date:

 

“(b)     [Reserved]”

 

		b.	Section 16(h). Section 16(h)
of the Series C Warrants is hereby deleted in its entirety and replaced with the following as of the Effective Date:

 

“(h)     “Expiration
Date” means 5:00 p.m., New York time, on July 2, 2016.”

 

		4.	Inducement Shares. In consideration for Cranshire entering into the Warrant Amendments, and subject to each Holder’s
(or such Holder’s successors or assigns, as applicable) execution and delivery to the Company of an investor certificate,
substantially in the form attached hereto as Exhibit A (an “Investor Certificate”), the Company
shall issue to the Holders or their successors and assigns, as applicable, an aggregate total of 570,000 shares of Common Stock
(the “Inducement Shares”) in direct proportion to the amount invested by such Holders under the Securities Purchase
Agreement. The allocation of the Inducement Shares, is set forth on Exhibit B hereto.

 

		5.	Representations and Warranties of the Company. The Company represents and warrants to Cranshire that:

 

		a.	After giving effect to the Amendment, the Warrant Shares shall remain eligible for resale under the Company’s resale
registration statement on Form S-1 (File Number 333-194745) that became effective July 2, 2014.

 

		b.	The Company has the requisite power and authority to enter into and perform its obligations under this Amendment and to issue
the Inducement Shares in accordance with the terms hereof. The execution and delivery of this Amendment by the Company and the
consummation by the Company of the transactions contemplated hereby (including, without limitation, the issuance of the Inducement
Shares) have been duly authorized by the Company’s board of directors and (other than the filing with the SEC of a Current
Report on Form 8-K to disclose the transactions contemplated hereby and any other filings as may be required by any state securities
agencies) no further filing, consent or authorization is required by the Company, its board of directors or its stockholders or
other governing body. This Amendment has been duly executed and delivered by the Company, and constitutes the legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with it terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except
as rights to indemnification and to contribution may be limited by federal or state securities law.

 

    	-2-

    	 

    

 

		c.	The issuance of the Inducement Shares are duly authorized and, upon issuance in accordance with the terms of the Amendment,
will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and
other encumbrances with respect to the issue thereof, with the holders thereof being entitled to all rights accorded to a holder
of Common Stock with respect to the Inducement Shares issued to such holder hereunder.

 

		d.	The execution, delivery and performance of the Amendment by the Company and the consummation by the Company of the transactions
contemplated hereby (including, without limitation, the issuance of the Inducement Shares) will not (i) result in a violation of
the Company’s articles of incorporation (including, without limitation, any certificates of designation contained therein)
or other organizational documents of the Company or any of its subsidiaries, any capital stock of the Company, or bylaws; (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to
which the Company or any of its subsidiaries is a party; or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including, without limitation, federal and state securities laws and regulations and the rules and regulations of the
OTCQB tier of the OTC Marketplace applicable to the Company or any of its Subsidiaries or by which any property or asset of the
Company or any of its subsidiaries is bound or affected except, in the case of clause (ii) above, for such conflicts, defaults
or rights that could not reasonably be expected to have a any material adverse effect on the business, properties, assets, liabilities,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any subsidiary, either
individually or taken as a whole.

 

		6.	Miscellaneous. To the extent that there are any inconsistencies between the terms of any Series A Warrant or Series
C Warrant and the terms of this Amendment, the terms of this Amendment shall prevail in effect. This Amendment may be executed
by the Parties in counterparts and may be executed and delivered by facsimile or other means of electronic communication and all
such counterparts, taken together, shall constitute one and the same agreement. A signed copy of this Amendment delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Amendment. It is expressly understood and agreed that (i) this Amendment shall be a Transaction Document and (ii)
the Transaction Documents are hereby amended to give full force and effect to the transactions contemplated by this Amendment.
Except as otherwise expressly provided herein, (1) the Series A Warrants and Series C Warrants and each other Transaction Document
is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and
after the Effective Date (A) all references in the Series A Warrants and Series C Warrants to “this Warrant,” “hereto,”
“hereof,” “hereunder” or words of like import referring to the Series A Warrants and Series C Warrants
shall mean the Series A Warrants and Series C Warrants as amended by this Amendment, (B) all references in the other Transaction
Documents to the “Warrants,” “thereto,” “thereof,” “thereunder” or words of like
import referring to the Series A Warrants and Series C Warrants shall mean the Series A Warrants and Series C Warrants as amended
by this Amendment and (C) all references in Transaction Documents to the “Transaction Documents,” “thereto,”
“thereof,” “thereunder” or words of like import referring to the Transaction Documents shall mean the Transaction
Documents as amended by this Amendment and (2) the execution, delivery and effectiveness of this Amendment shall not operate
as an amendment or waiver of any right, power, benefit or remedy of any Holder under any Transaction Document, nor constitute an
amendment of any provision of any Transaction Document and all of them shall continue in full force and effect, as amended or modified
by this Amendment. The Company shall, on or before 8:30 a.m., New York time, on the first (1st)
Business Day after the date of this Agreement, file a Current Report on Form 8-K describing all the material terms
of the transactions contemplated by this Amendment in the form required by the 1934 Act and attaching this Amendment.

 

[signature page
follows]

 

    	-3-

    	 

    

 

IN WITNESS WHEREOF, Cranshire
and the Company have caused their respective signature page to this Amendment to be duly executed as of the date first written
above.

 

	 	ARCH THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/ Terrence W. Norchi, M.D.
	 	Name:	Terrence W. Norchi, M.D
	 	Title:	President, Chief Executive Officer
	 	 	 
	 	SIGNIFICANT BUYER:
	 	 
	 	CRANSHIRE CAPITAL MASTER FUND, LTD.
	 	 	 
	 	By:	Cranshire Capital Advisors, LLC
	 	Its:	Investment Manager
	 	 	 
	 	/s/ Keith Goodman
	 	By:	Keith Goodman
	 	Its:	Authorized Signatory

 

    	 

    	 

    

 

Exhibit
A

Form of Investor Certificate

 

Arch Therapeutics, Inc.

235 Walnut St., Suite 6

Framingham, MA 01702

 

Ladies and Gentlemen:

 

Reference is made to that certain Amendment to Series A Warrants
and Series C Warrants to Purchase Common Stock (the “Amendment”) by and between Arch Therapeutics, Inc., a Nevada
corporation (the “Company”), and Cranshire Capital Master Fund, Ltd. dated as of June 22, 2015 (the “Amendment”).
Capitalized terms not otherwise defined in this Investor Certificate shall have the meaning given to them in the Amendment.

 

As a condition to receiving the undersigned’s allocation
of the Inducement Shares in accordance with the Amendment and as set forth on Exhibit B thereto (the “Allocation
Schedule”), the undersigned hereby represents and warrants to the Company as follows:

 

		1.	The undersigned was not contacted for purposes of acquiring the Inducement Shares through use of any form of general or public
advertising, such as media, public seminars or presentations, the Internet, or other means generally available to the public.

 

		2.	The undersigned is aware of the Company’s business affairs and financial condition, and has acquired information about
the Company sufficient to reach an informed and knowledgeable decision to acquire the Inducement Shares. The undersigned is acquiring
the Inducement Shares for its own account for investment purposes only and not with a view to, or for the resale in connection
with, any “distribution” thereof for purposes of the the Securities Act of 1933, as amended (the “1933 Act”).
The undersigned is an “accredited investor” as that term is defined in Securities and Exchange Commission Rule 501(a)
of Regulation D.

 

		3.	The undersigned understands that the Inducement Shares (i) have not been registered under the 1933 Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the truth and accuracy of the undersigned’s representations
and warranties set forth herein; and (ii) shall bear any legend as required by the “blue sky” laws of any state and
a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock
certificates):

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED
BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

    	 

    	 

    

 

		4.	The undersigned further understands that the Inducement Shares must be held indefinitely unless subsequently registered under
the 1933 Act and any applicable state securities laws, or unless exemptions from registration are otherwise available.

 

		5.	The undersigned is aware of the provisions of Rule 144, promulgated under the 1933 Act, which, in substance, permit limited
public resale of “restricted securities” acquired, directly or indirectly, from the issuer (or from an affiliate of
such issuer), in a non-public offering subject to the satisfaction of certain conditions, if applicable, including, among other
things, the availability of certain public information about the Company and the resale occurring not less than six (6) months
after the party has purchased and paid for the securities to be sold.

 

		6.	The undersigned further understands that at the time its wishes to sell Inducement Shares there may be no public market upon
which to make such a sale, and that, even if such a public market then exists, the Company may not have filed all reports and other
materials required under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, other than certain Form 8-K reports,
during the preceding 12 months, and that, in such event, because the Company used to be a “shell company” as contemplated
under Rule 144(i), Rule 144 will not be available to the undersigned.

 

		7.	The undersigned further understands that in the event all of the requirements of Rule 144 are not satisfied, registration under
the 1933 Act, compliance with Regulation A, or some other registration exemption will be required and that, notwithstanding the
fact that Rule 144 is not exclusive, the staff of the Securities and Exchange Commission has expressed its opinion that persons
proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will
have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and
that such persons and their respective brokers who participate in such transactions do so at their own risk. 

 

[signature
page follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Investor Certificate to be duly executed as of the date set forth below.

 

	 	[HOLDER]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date:	 

 

    	 

    	 

    

 

Exhibit
B

Allocation of Inducement Shares

 

	 	 	Amount Invested Under
 the Securities Purchase
 Agreement	 	 	Inducement Shares to be
 Issued Pursuant to the
 Amendment	 
	Warrant Holder	 	Dollars	 	 	% of Total	 	 	Shares	 	 	% of Total	 
	Cranshire Capital Master Fund, Ltd.	 	$	800,000	 	 	 	28.07	%	 	 	160,000	 	 	 	28.07	%
	Intracoastal Capital LLC*	 	$	200,000	 	 	 	7.02	%	 	 	40,000	 	 	 	7.02	%
	Anson Investments Master Fund, Ltd.	 	$	500,000	 	 	 	17.54	%	 	 	100,000	 	 	 	17.54	%
	Capital Ventures International	 	$	500,000	 	 	 	17.54	%	 	 	100,000	 	 	 	17.54	%
	Heng Hong Ltd	 	$	525,000	 	 	 	18.42	%	 	 	105,000	 	 	 	18.42	%
	Punit Dhillon**	 	$	175,000	 	 	 	6.14	%	 	 	35,000	 	 	 	6.14	%
	Ocean Creation Investments Limited	 	$	50,000	 	 	 	1.75	%	 	 	10,000	 	 	 	1.75	%
	Ong Kim Kiat	 	$	50,000	 	 	 	1.75	%	 	 	10,000	 	 	 	1.75	%
	Karmdeep & Harpreet Bains	 	$	50,000	 	 	 	1.75	%	 	 	10,000	 	 	 	1.75	%
	Total	 	$	2,850,000	 	 	 	100.00	%	 	 	570,000	 	 	 	100.00	%

* Assignee of Equitec Specialists, LLC

** Assignee of 0903746 B.C. Ltd

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]