Document:

Blueprint

 

 Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

 

FOR

 

ORBITAL
TRACKING CORP.

Dated:
October 13, 2016

Orbital
Tracking Corp.

18851
N.E. 29th
Avenue, Suite 700

Aventura,
Florida 33180

 

Ladies
and Gentlemen:

1. Subscription. The undersigned (the
“Purchaser”)
will purchase from Orbital Tracking Corp. (the
“Company”) the number of shares of Series H Preferred
Stock of the Company (the “Shares”) as set forth on the
signature page to this Subscription Agreement, at a purchase price
of $4.00 per share (the “Purchase Price”). The shares
of Common Stock underlying the Preferred Stock may hereinafter be
referred to as the “Conversion
Shares”). The Preferred Stock shall have the rights
and preferences as set forth in the Certificate of Designation of
Preferences, Rights and Limitations (the “COD”)
attached as Exhibit A hereto. The Subscription Agreement and the
COD are collectively referred to as the “Transaction
Documents. The Shares are being
offered (the “Offering”)
by the Company pursuant to this Subscription
Agreement.

 

The
Shares are being offered on a “reasonable efforts all or none”,
basis with respect to the minimum of $300,000 (the
“Minimum
Offering Amount”). The Shares are being offered on a
“reasonable efforts” basis with respect to up to
$800,000 of Shares (the “Maximum Offering Amount”). Any
purchase of Shares by the Company’s officers, directors, or
employees shall be included, and counted towards, the Minimum and
Maximum Offering Amounts.

The
Initial Closing (as defined herein) of this Offering shall be
subject to subscriptions being received from qualified investors
and accepted by the Company for the Minimum Offering Amount. Upon
acceptance by the Company after the date hereof of such
subscriptions, the Company shall have the right at any time
thereafter, prior to the Termination Date (as defined below), to
effect an initial closing with respect to this Offering (the
“Initial
Closing”). Thereafter, the Company shall continue to
accept, and continue to have closings (together with the Initial
Closing, each a “Closing”) for,
additional subscriptions for Securities from investors from time to
time up to Maximum Offering Amount.

The
Shares will be offered for a period (the “Initial Offering
Period”) commencing on the date of this Subscription
Agreement and continue until the earliest of (i) October 18, 2016
(the “Maximum Offering
Deadline”), (ii) the date upon which subscriptions for
the Maximum Offering offered hereunder have been accepted, or (iii)
the date upon which the Company elects to terminate the Offering
(the “Termination
Date”), subject to the right of the Company to extend
the Offering until as late as November 18, 2016 (the
“Final
Termination Date”), without further notice to or
consent by investors, if the Maximum Offering Amount has not been
subscribed by the Offering Deadline. This additional period,
together with the Initial Offering Period, shall be referred to
herein as the “Offering
Period.”

The
minimum investment amount that may be purchased by an investor is
$25,000 (the “Investor Minimum
Investment”); provided however, the Company, in its
discretion, may accept an investor subscription for an amount less
than the Investor Minimum Investment. The subscription for the
Shares will be made in accordance with and subject to the terms and
conditions of this Subscription Agreement.

 

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In the
event that (i) subscriptions for the Offering are rejected in whole
(at the sole discretion of the Company), (ii) no Shares are
subscribed for prior to October 18, 2016 or, if extended, prior to
November 18, 2016, or (iii) the Offering is otherwise terminated by
the Company prior to the expiration of the Initial Offering Period
or, if extended, prior to the Final Termination Date, then the
Company will refund all subscription funds held by it to the
persons who submitted such funds, without interest, penalty or
deduction. If a subscription is rejected in part (at the sole
discretion of the Company) and the Company accepts the portion not
so rejected, the funds for the rejected portion of such
subscription will be returned without interest, penalty, expense or
deduction.

2.           

Payment. The Purchaser encloses herewith
a check payable to, or will immediately make a wire transfer
payment to, “Orbital Tracking
Corp,” in the full amount of the purchase price of the
Shares being subscribed for. Together with the check for, or wire
transfer of, the full purchase price, the Purchaser is delivering a
completed and executed Signature Page to this Subscription
Agreement along with a completed and executed Investor
Questionnaire, which is attached hereto as Schedule
A.

3.           

Deposit of Funds. All payments made as
provided in Section
2 hereof will be deposited by the Purchaser to the Company
no later than within two business days. In the event that the
Company does not effect a Closing during the Offering Period, the
Company will refund all subscription funds, without deduction
and/or interest accrued thereon, and will return the subscription
documents to each Purchaser. The Company will notify the Purchaser
within five (5) business days of its intent to reject the
subscription. If the Company rejects a subscription, either in
whole or in part (at the sole discretion of the Company), the
rejected subscription funds or the rejected portion thereof will be
returned promptly to such Purchaser without interest, penalty,
expense or deduction.

4.           

Acceptance of Subscription. The
Purchaser understands and agrees that the Company, each in its sole
discretion, reserves the right to accept this or any other
subscription for the Shares, in whole or in part, notwithstanding
prior receipt by the Purchaser of notice of acceptance of this or
any other subscription. The Company will have no obligation
hereunder until the Company executes an executed copy of the
Subscription Agreement. If Purchaser’s subscription is
rejected in whole (at the sole discretion of the Company), the
Offering is terminated or no subscriptions are made and accepted
prior to the expiration of the Initial Offering Period or, if
extended, prior to the Final Termination Date, all funds received
from the Purchaser will be returned without interest, penalty,
expense or deduction, and this Subscription Agreement will
thereafter be of no further force or effect. If Purchaser’s
subscription is rejected in part (at the sole discretion of the
Company) and the Company accepts the portion not so rejected, the
funds for the rejected portion of such subscription will be
returned without interest, penalty, expense or deduction, and this
Subscription Agreement will continue in full force and effect to
the extent such subscription was accepted. The Purchaser may revoke
its subscription and obtain a return of the subscription amount at
any time before the date of the Initial Closing. The Purchaser may
not revoke this subscription or obtain a return of the subscription
amount paid to the Company on or after the date of the Initial
Closing. Any subscription received after the Initial Closing but
prior to the Termination Date shall be irrevocable.

5.           

Representations and Warranties of the
Purchaser. The Purchaser hereby acknowledges, represents,
warrants, and agrees as follows:

(a)           

None of the
Preferred Stock or the Conversion Shares, (collectively referred to
hereafter as the “Securities”)
are registered under the Securities Act of 1933, as amended (the
“Securities
Act”), or any state securities laws. The Purchaser
understands that the offering and sale of the Securities is
intended to be exempt from registration under the Securities Act,
by virtue of Section 4(a)(2) thereof and the provisions of
Regulation D promulgated thereunder, based, in part, upon the
representations, warranties and agreements of the Purchaser
contained in this Subscription Agreement;

(b)           

The Purchaser and
the Purchaser’s attorney, accountant, purchaser
representative and/or tax advisor, if any (collectively,
“Advisors”),
have received and have carefully reviewed this Subscription
Agreement, and each of the Transaction Documents, the
Company’s filings with the US Securities and Exchange
Commission (the “Commission”) under the Securities
Exchange Act of 1934 as amended (the “SEC Documents”)
and all other documents requested by the Purchaser or its Advisors,
if any, and understand the information contained therein, prior to
the execution of this Subscription Agreement;

(c)           

Neither the
Commission nor any state securities commission has approved or
disapproved of the Securities or passed upon or endorsed the merits
of the Offering or confirmed the accuracy or determined the
adequacy of this Subscription Agreement. This Subscription
Agreement has not been reviewed by any Federal, state or other
regulatory authority. Any representation to the contrary may be a
criminal offense;

(d)           

All SEC Documents,
records, and books pertaining to the investment in the Securities
including, but not limited to, all information regarding the
Company and the Securities, have been made available for inspection
and reviewed by the Purchaser and its Advisors, if
any;

(e)           

The Purchaser and
its Advisors, if any, have had a reasonable opportunity to ask
questions of and receive answers from the Company’s officers
and any other persons authorized by the Company to answer such
questions, concerning, among other related matters, the Offering,
the Securities, the Transaction Documents and the business,
financial condition, results of operations and prospects of the
Company and all such questions have been answered by the Company to
the full satisfaction of the Purchaser and its Advisors, if
any;

(f)           

In evaluating the
suitability of an investment in the Company, the Purchaser has not
relied upon any representation or other information (oral or
written) other than as stated in this Subscription
Agreement;    

 

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(g)           

The Purchaser is
unaware of, is in no way relying on, and did not become aware of
the offering of the Securities through or as a result of, any form
of general solicitation or general advertising including, without
limitation, any article, notice, advertisement or other
communication published in any newspaper, magazine or similar media
or broadcast over television, radio or over the Internet, in
connection with the offering and sale of the Securities and is not
subscribing for the Securities and did not become aware of the
Offering through or as a result of any seminar or meeting to which
the Purchaser was invited by, or any solicitation of a subscription
by, a person not previously known to the Purchaser in connection
with investments in securities generally;

(h)           

The Purchaser has
taken no action which would give rise to any claim by any person
for brokerage commissions, finders’ fees or the like relating
to this Subscription Agreement or the transactions contemplated
hereby;

(i)           

The Purchaser,
either alone or together with its Advisors, if any, has such
knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable it
to utilize the information made available to it in connection with
the Offering to evaluate the merits and risks of an investment in
the Securities and the Company and to make an informed investment
decision with respect thereto;

(j)           

The Purchaser is
not relying on the Company, or any of its employees or agents with
respect to the legal, tax, economic and related considerations of
an investment in any of the Securities and the Purchaser has relied
on the advice of, or has consulted with, only its own
Advisors;

(k)           

The Purchaser is
acquiring the Securities solely for such Purchaser’s own
account for investment and not with a view to resale or
distribution thereof, in whole or in part. The Purchaser has no
agreement or arrangement, formal or informal, with any person to
sell or transfer all or any part of any of the Securities and the
Purchaser has no plans to enter into any such agreement or
arrangement;

(l)           

The Purchaser
understands and agrees that purchase of the Securities is a high
risk investment and the Purchaser is able to afford an investment
in a speculative venture having the risks and objectives of the
Company. The Purchaser must bear the substantial economic risks of
the investment in the Securities indefinitely because none of the
Securities may be sold, hypothecated or otherwise disposed of
unless subsequently registered under the Securities Act and
applicable state securities laws or an exemption from such
registration is available. Legends will be placed on the
certificates representing the Preferred Stock and the Conversion
Shares to the effect that such securities have not been registered
under the Securities Act or applicable state securities laws and
appropriate notations thereof will be made in the Company’s
books;

(m)           

The Purchaser has
adequate means of providing for such Purchaser’s current
financial needs and foreseeable contingencies and has no need for
liquidity from its investment in the Securities for an indefinite
period of time;

(n)           

The Purchaser is
aware that an investment in the Securities involves a number of
very significant risks and has carefully read and considered the
disclosure in the Company’s Form 10-K for the year ended
December 31, 2015 and its Form 10-Q for the quarter ended June 30,
2016, both of which are available on the Edgar System at SEC.gov
and understands that certain risks may materially adversely affect
the Company’s operations and future prospects;

(o)           

At the time such
Purchaser was offered the Securities, it was, and as of the date
hereof it is, and on each date on which it converts any Shares, it
will be an “accredited investor” within the meaning of
Regulation D, Rule 501(a), promulgated by the Securities and
Exchange Commission under the Securities Act and has truthfully and
accurately completed the Investor Questionnaire attached as
Schedule A to this
Subscription Agreement and will submit to the Company such further
assurances of such status as may be reasonably requested by the
Company;

(p)           

The Purchaser: (i)
if a natural person, represents that the Purchaser has reached the
age of 21 and has full power and authority to execute and deliver
this Subscription Agreement and all other related agreements or
certificates and to carry out the provisions hereof and thereof;
(ii) if a corporation, partnership, or limited liability company,
or association, joint stock company, trust, unincorporated
organization or other entity, represents that such entity was not
formed for the specific purpose of acquiring the Securities, such
entity is duly organized, validly existing and in good standing
under the laws of the state of its organization, the consummation
of the transactions contemplated hereby is authorized by, and will
not result in a violation of state law or its charter or other
organizational documents, such entity has full power and authority
to execute and deliver this Subscription Agreement and all other
related agreements or certificates and to carry out the provisions
hereof and thereof and to purchase and hold the Securities, the
execution and delivery of this Subscription Agreement has been duly
authorized by all necessary action, this Subscription Agreement has
been duly executed and delivered on behalf of such entity and is a
legal, valid and binding obligation of such entity; or (iii) if
executing this Subscription Agreement in a representative or
fiduciary capacity, represents that it has full power and authority
to execute and deliver this Subscription Agreement in such capacity
and on behalf of the subscribing individual, ward, partnership,
trust, estate, corporation, or limited liability company or
partnership, or other entity for whom the Purchaser is executing
this Subscription Agreement, and such individual, partnership,
ward, trust, estate, corporation, or limited liability company or
partnership, or other entity has full right and power to perform
pursuant to this Subscription Agreement and make an investment in
the Company, and represents that this Subscription Agreement
constitutes a legal, valid and binding obligation of such entity.
The execution and delivery of this Subscription Agreement will not
violate or be in conflict with any order, judgment, injunction,
agreement or controlling document to which the Purchaser is a party
or by which it is bound;

 

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(q)           

The Purchaser and
its Advisors, if any, have had the opportunity to obtain any
additional information, to the extent the Company had such
information in its possession or could acquire it without
unreasonable effort or expense, necessary to verify the accuracy of
the information contained herein including, but not limited to, the
terms and conditions of the Securities as set forth therein and the
Transaction Documents and all other related documents, received or
reviewed in connection with the purchase of the Securities and have
had the opportunity to have representatives of the Company provide
them with such additional information regarding the terms and
conditions of this particular investment and the financial
condition, results of operations, business and prospects of the
Company deemed relevant by the Purchaser or its Advisors, if any,
and all such requested information, to the extent the Company had
such information in its possession or could acquire it without
unreasonable effort or expense, has been provided by the Company in
writing to the full satisfaction of the Purchaser and its Advisors,
if any;

(r)           

The Purchaser has
significant prior investment experience, including investment in
non-listed and unregistered securities. The Purchaser has a
sufficient net worth to sustain a loss of its entire investment in
the Company in the event such a loss should occur. The
Purchaser’s overall commitment to investments which are not
readily marketable is not excessive in view of the
Purchaser’s net worth and financial circumstances and the
purchase of the Securities will not cause such commitment to become
excessive. This investment is a suitable one for the
Purchaser;

(t)           

The Purchaser is
satisfied that it has received adequate information with respect to
all matters which it or its Advisors, if any, consider material to
its decision to make this investment;

(u)           

No oral or written
representations have been made, or oral or written information
furnished, to the Purchaser or its Advisors, if any, in connection
with the offering of the Securities which are in any way
inconsistent with the information contained in this Subscription
Agreement;

(v)           

Within five (5)
days after receipt of a request from the Company, the Purchaser
will provide such information and deliver such documents as may
reasonably be necessary to comply with any and all laws and
ordinances to which the Company is subject;

(w)           

In making an
investment decision, Purchasers must rely on their own examination
of Company and the terms of the Offering, including the merits and
risks involved. Purchasers should be aware that they will be
required to bear the financial risks of this investment for an
indefinite period of time;

(y)           

(For ERISA plans only) The fiduciary of
the ERISA plan (the “Plan”)
represents that such fiduciary has been informed of and understands
the Company’s investment objectives, policies and strategies,
and that the decision to invest “plan assets” (as such
term is defined in ERISA) in the Company is consistent with the
provisions of ERISA that require diversification of plan assets and
impose other fiduciary responsibilities. The Purchaser or Plan
fiduciary (a) is responsible for the decision to invest in the
Company; (b) is independent of the Company and any of its
affiliates; (c) is qualified to make such investment decision; and
(d) in making such decision, the Purchaser or Plan fiduciary has
not relied on any advice or recommendation of the Company or any of
its affiliates; and

(z)           

The Purchaser
represents that (i) the Purchaser was contacted regarding the sale
of the Securities by the Company (or another person whom the
Purchaser believed to be an authorized agent or representative
thereof) with whom the Purchaser had a prior substantial
pre-existing relationship and (ii) it did not learn of the offering
of the Securities by means of any form of general solicitation or
general advertising, and in connection therewith, the Purchaser did
not (A) receive or review any advertisement, article, notice or
other communication published in a newspaper or magazine or similar
media or broadcast over television or radio, whether closed
circuit, or generally available; or (B) attend any seminar meeting
or industry investor conference whose attendees were invited by any
general solicitation or general advertising;

(aa)           

The Purchaser
consents to the placement of a legend on any certificate or other
document evidencing the Securities and, when issued, the Conversion
Shares, that such securities have not been registered under the
Securities Act or any state securities or “blue sky”
laws and setting forth or referring to the restrictions on
transferability and sale thereof contained in this Agreement. The
Purchaser is aware that the Company will make a notation in its
appropriate records with respect to the restrictions on the
transferability of such Securities. The legend to be placed on each
certificate shall be in form substantially similar to the
following:

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) OR ANY STATE SECURITIES OR “BLUE SKY
LAWS,” AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH
ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED.”

 

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(bb)           The
Purchaser understands, acknowledges and agrees with the Company
that this subscription may be rejected, in whole or in part, by the
Company, in the sole and absolute discretion of the Company, at any
time before any Closing notwithstanding prior receipt by the
Purchaser of notice of acceptance of the Purchaser’s
subscription.

(cc)           The
Purchaser acknowledges that the information contained in the
Transaction Documents or otherwise made available to the Purchaser
is confidential and non-public and agrees that all such information
shall be kept in confidence by the Purchaser and neither used by
the Purchaser for the Purchaser’s personal benefit (other
than in connection with this subscription) nor disclosed to any
third party for any reason, notwithstanding that a
Purchaser’s subscription may not be accepted by the Company;
provided, however, that (a) the Purchaser may disclose such
information to its affiliates and advisors who may have a need for
such information in connection with providing advice to the
Purchaser with respect to its investment in the Company so long as
such affiliates and advisors have an obligation of confidentiality,
and (b) this obligation shall not apply to any such information
that (i) is part of the public knowledge or literature and readily
accessible at the date hereof, (ii) becomes part of the public
knowledge or literature and readily accessible by publication
(except as a result of a breach of this provision) or (iii) is
received from third parties without an obligation of
confidentiality (except third parties who disclose such information
in violation of any confidentiality agreements or obligations,
including, without limitation, any subscription or other similar
agreement entered into with the Company).

6.           

Representations and Warranties of the
Company. The Company represents and warrants to each of the
Purchasers that the statements made in this Section 6, except as
qualified in any disclosure schedules referenced herein and
attached hereto (the “Schedules”), are true and correct
on the date hereof, as of the Initial Closing and shall be true and
correct as of each Subsequent Closing, all of which qualifications
in the Schedules attached hereto and updated Schedules delivered at
the Subsequent Closing shall be deemed to be representations and
warranties as if made hereunder. The Schedules shall be arranged to
correspond to the numbered paragraphs contained in this Section 6,
and the disclosure in any paragraph of the Schedules shall qualify
other subsections in Section 6 only to the extent that it is
readily apparent from a reading of the disclosure that such
disclosure is applicable to such other subsections. For purposes of
this Section 6, “knowledge” shall mean the personal
knowledge of any of the Company’s officers or directors or
what they would have known upon having made reasonable
inquiry.

6.1           

Organization, Good Standing and
Qualification. The Company is a corporation duly
incorporated, validly existing and in good standing under the
corporate and general laws of the State of Nevada. Each of Orbital
Satcom Corp. and Global Telesat Communications Limited (the
“Subsidiaries”) is a corporation duly incorporated,
validly existing and in good standing under the laws of its
jurisdiction of incorporation. Each of the Company and its
Subsidiaries has all requisite corporate power and authority to own
and operate its properties and assets. Neither the Company nor any
Subsidiary is in violation nor default of any of the provisions of
its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. Each of the Company and
its Subsidiaries is duly qualified to conduct business and is in
good standing as a foreign corporation in each jurisdiction, except
where failure to be so qualified or in good standing, as the case
may be, could not reasonably be expected to result in: (i) a
material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the
results of operations, assets, business, prospects or condition
(financial or otherwise) of the Company and its Subsidiaries, taken
as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a
timely basis its obligations under any Transaction Document (any of
(i), (ii) or (iii), a “Material Adverse Effect”) and no
Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.

6.2           

Subsidiaries. The SEC Reports
include a true and complete list of each of the Subsidiaries and
their respective jurisdictions of organization. Neither the Company
nor any Subsidiary owns or controls any ownership interest or
profits interest in any other corporation, limited liability
company, limited partnership or other entity. The Company owns,
directly or indirectly, all of the capital stock or other equity
interests of each Subsidiary free and clear of any liens, and all
of the issued and outstanding shares of capital stock of each
Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or
purchase securities.

6.3           

Authorization; Enforcement. The
Company has the requisite corporate power and authority to enter
into and to consummate the transactions contemplated by this
Agreement and each of the other Transaction Documents and otherwise
to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement and each of the other
Transaction Documents by the Company and the consummation by it of
the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and
no further action is required by the Company, the Board of
Directors or the Company’s stockholders in connection
herewith or therewith other than in connection with the required
approvals. This Agreement and each other Transaction Document to
which it is a party has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the
terms hereof and thereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in
accordance with its terms, except: (i) as limited by general
equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

 

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6.4           

No Conflicts. The execution,
delivery and performance by the Company of this Agreement and the
other Transaction Documents to which it is a party, the issuance
and sale of the Securities and the consummation by it of the
transactions contemplated hereby and thereby do not and will not:
(i) conflict with or violate any provision of the Company’s
or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, (ii) conflict
with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, result in the
creation of any lien upon any of the properties or assets of the
Company or any Subsidiary, or give to others any rights of
termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or
Subsidiary debt or otherwise) or other understanding to which the
Company or any Subsidiary is a party or by which any property or
asset of the Company or any Subsidiary is bound or affected, or
(iii) conflict with or result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset
of the Company or a Subsidiary is bound or affected; except in the
case of each of clauses (ii) and (iii), such as could not have or
reasonably be expected to result in a Material Adverse
Effect.

6.5           

Filings, Consents and
Approvals. The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other federal,
state, local or other governmental authority or other person in
connection with the execution, delivery and performance by the
Company of the Transaction Documents that has not been obtained or
waived.

6.6           

Issuance of the Securities. The
shares of Preferred Stock are duly authorized and, when issued and
paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free
and clear of all liens imposed by the Company other than
restrictions on transfer provided for in the Transaction Documents.
The Conversion Shares, when issued in accordance with the terms of
the Preferred Stock, will be validly issued, fully paid and
nonassessable, free and clear of all liens imposed by the Company
other than restrictions on transfer provided for in the Transaction
Documents. The Company has reserved from its duly authorized
capital stock a number of shares of Common Stock for issuance upon
the conversion of any Preferred Stock.

6.7           

Capitalization. The
capitalization of the Company is as set forth in the SEC Reports,
except as set forth in Schedule 6.7 hereto. Except as disclosed on
the SEC Reports or as disclosed on Schedule 6.7 hereto, there are
no outstanding securities of the Company or any Subsidiary which
contain any right of first refusal, preemptive right, right of
participation, or any similar right which has not been waived. No
Person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents which has
not been waived. Except as a result of the purchase and sale of the
Securities, and except as set forth in the SEC Reports, there are
no outstanding options, warrants, scrip rights to subscribe to,
calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe
for or acquire any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional shares of
Common Stock or common stock equivalents. Except as disclosed on
Schedule 6.7 hereto, the issuance and sale of the Securities will
not obligate the Company to issue shares of Common Stock or other
securities to any Person (other than the Purchasers) and will not
result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under any of such
securities. There are no proxies, stockholder agreements, or any
other agreements between the Company or any Subsidiary and any
securityholder of such entity or, to the knowledge of the Company,
among any securityholders of the Company or any Subsidiary,
including agreements relating to the voting, transfer, redemption
or repurchase of any securities of such entity. Neither the Company
nor any Subsidiary has any outstanding shareholder purchase rights
or “poison pill” or any similar arrangement in effect
giving any person the right to purchase any equity interest in such
entity upon the occurrence of certain events. All of the
outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid and nonassessable, have been
issued in compliance with all federal and state securities laws,
and none of such outstanding shares was issued in violation of any
preemptive rights or similar rights to subscribe for or purchase
securities. No further approval or authorization of any
stockholder, the Board of Directors or others is required for the
issuance and sale of the Securities. There are no
stockholders’ agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to
which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders. Except as
required by law, including any federal securities rules and
regulations, there are no restrictions upon the voting or transfer
of any of the shares of capital stock of the Company or any
Subsidiary pursuant to its organizational documents or other
governing documents or any agreement or other instruments to which
the Company or any Subsidiary is a party or by which it is
bound.

6.8           

Shell Company Status; SEC Reports;
Financial Statements. The Company has not been a
“shell” company as described in Rule 144(i)(1) under
the Securities Act for the last 12 months. The Company has filed
all reports, schedules, forms, statements and other documents
required to be filed by it under the Securities Exchange Act ,
including pursuant to Section 13(a) or 15(d) thereof, for the two
years preceding the date hereof (or such shorter period as the
Company was required by law or regulation to file such material)
(the foregoing materials and any amendments filed through the date
hereof, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the
“SEC Reports”) on a timely basis or has received a
valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act,
as applicable, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order
to make the statements therein not misleading. The financial
statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the
rules and regulations of the Commission with respect thereto as in
effect at the time of filing. The financial statements (the
“Financial Statements”) of the Company included in SEC
Reports been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be
otherwise specified in such financial statements or the footnotes
thereto except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material
respects the financial position of the Company and its Subsidiaries
as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject to normal,
immaterial, year-end audit adjustments. There is no transaction,
arrangement, or other relationship between the Company or any
Subsidiary and an unconsolidated or other off balance sheet entity
that is not disclosed in its financial statements that should be
disclosed in accordance with GAAP and that would be reasonably
likely to have a material adverse effect.

 

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6.9           

Absence of Liabilities. Except
as set forth in the SEC Reports, since the Balance Sheet Date
(hereinafter defined): (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to
result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A)
trade payables and accrued expenses incurred in the ordinary course
of business consistent with past practice and (B) liabilities not
required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the
Commission, (iii) the Company has not altered its method of
accounting, (iv) the Company has not declared or made any dividend
or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem
any shares of its capital stock and (v) the Company has not issued
any equity securities to any officer, director or Affiliate, except
pursuant to existing Company stock option plans. Except for the
issuance of the Securities contemplated by this Agreement or as set
forth in the SEC Reports no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably
expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, properties,
operations, assets or financial condition, that would be required
to be disclosed by the Company under applicable securities laws at
the time this representation is made or deemed made. Except as set
forth in the SEC Reports, neither the Company nor any Subsidiary is
a guarantor or indemnitor of any liability of any other
Person.

For
purposes of this Section 6.9, June 30, 2016 is referred to as the
“Balance Sheet Date”.

6.10 
  

Changes. Except disclosed in
the SEC Reports, or where the occurrence of any of the following
events would not have a Material Adverse Effect, since June 30,
2016 there has not been:

6.10.1.

any effect, event,
condition or circumstance (including, without limitation, the
initiation of any litigation or other legal, regulatory or
investigative proceeding) against the Company that individually or
in the aggregate, with or without the passage of time, the giving
of notice, or both, has had or could reasonably be expected to have
a Material Adverse Effect;

6.10.2.       

any resignation or
termination of any director, officer or key employee of the Company
or any Subsidiary, and neither the Company nor any Subsidiary has
received notification of any impending resignation from any such
Person;

6.10.3.       

any material change
in the contingent obligations of the Company or any Subsidiary by
way of guaranty, endorsement, indemnity, warranty or
otherwise;

6.10.4.       

any material
damage, destruction or loss adversely affecting the assets,
properties, business, financial condition or prospects of the
Company and its Subsidiaries taken as a whole, whether or not
covered by insurance;

6.10.5.       

any waiver by the
Company or any Subsidiary of a valuable right or of any
debt;

6.10.6.       

any development,
event, change, condition or circumstance that constitutes, whether
with or without the passage of time or the giving of notice or
both, a default under any outstanding debt obligation of the
Company or any Subsidiary;

6.10.7.       

any change in any
compensation arrangement or agreement with any employee,
consultant, officer, director or stockholder of the Company or any
Subsidiary that would increase the cost of any such agreement or
arrangement to the Company or any Subsidiary by more than $10,000
in each instance, except as set forth in Schedule 6.7 hereto
;

6.10.8.       

any labor
organization activity of the employees of the Company or any
Subsidiary;

6.10.9.       

any declaration or
payment of any dividend or other distribution of the assets of the
Company or any Subsidiary;

6.10.10.     

any change in the
accounting methods or practices followed by the Company or any
Subsidiary; or

6.10.11.     

any Contract or
commitment made by the Company or any Subsidiary to do any of the
foregoing.

6.11           

Title to Properties and Assets; Liens,
etc. Except where a violation of this Section 6.11 could not
reasonably be expected to have a Material Adverse Effect, the
Company and each Subsidiary has good and marketable title to the
properties and assets it owns, and the Company and each Subsidiary
has a valid license in all properties and assets licensed by it,
including the properties and assets reflected as owned in the most
recent balance sheet included in the Financial Statements, and has
a valid leasehold interest in its leasehold estates, in each case
subject to no encumbrance, other than those resulting from taxes
which have not yet become delinquent or those of the lessors of
leased property or assets. All facilities, machinery, equipment,
fixtures, vehicles and other properties owned, leased or used by
the Company or any Subsidiary are in good operating condition and
repair, ordinary wear and tear excepted and are fit and usable for
the purposes for which they are being used. Each of the Company and
its Subsidiaries is in compliance with all terms of each lease to
which it is a party or is otherwise bound.

6.12           

Intellectual
Property.

6.12.1.       

The Company or the
applicable Subsidiary is the owner or licensee of all intellectual
property and all Licensed Intellectual Property as described in the
SEC Documents (collectively, the “Intellectual
Property”). Neither the Company nor any Subsidiary has
licensed any Intellectual Property to any Person. All of the
registrations and applications for registration of the Intellectual
Property are valid, subsisting and in full force and effect, and
all actions and payments necessary for the maintenance and
continuation of such Intellectual Property have been taken or paid
on a timely basis. The Company and its Subsidiaries owns or
possesses sufficient legal rights to use all of the Intellectual
Property and the exclusive right to use all Owned Intellectual
Property and all Licensed Intellectual Property as being licensed
to the Company and its Subsidiaries.

 

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6.13           

Compliance with Other
Instruments. Except as set forth in the SEC Reports, neither
the Company nor any Subsidiary (i) is in default under or in
violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or
credit agreement or any other agreement or instrument to which it
is a party or by which it or any of its properties is bound
(whether or not such default or violation has been waived), (ii) is
in violation of any judgment, decree or order of any court,
arbitrator or other governmental authority or (iii) is or has been
in violation of any statute, rule, ordinance or regulation of any
governmental authority, including without limitation all foreign,
federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and
safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material
Adverse Effect.

6.14           

Litigation. Except as set forth
in the SEC Reports, there is no legal proceeding pending or, to the
knowledge of the Company, threatened against the Company or any
Subsidiary or any investigation of the Company or any Subsidiary,
nor is the Company aware of any fact that would make any of the
foregoing reasonably likely to arise. Neither the Company nor any
Subsidiary is a party or subject to the provisions of any Order.
Except as set forth in the SEC Reports, there is no Legal
Proceeding by the Company or any Subsidiary currently pending or
that the Company or any Subsidiary intends to initiate. Neither the
Company nor any Subsidiary, nor any director or officer thereof, is
or has been the subject of any Order involving a claim of violation
of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any
current or former director or officer of the Company.

6.15            

Tax Returns and
Payments.

6.15.1.        

Except as set forth
in the SEC Reports and as set forth in Schedule 6.15 hereto, the
Company and each Subsidiary has filed all Tax Returns required to
be filed by it, and each such entity has timely paid all Taxes owed
(whether or not shown on any Tax Return). All such Tax Returns were
complete and correct, and such Tax Returns correctly reflected the
facts regarding the income, business, assets, operations,
activities, status and other matters of such entity and any other
information required to be shown thereon. The Company and each
Subsidiary has withheld and paid all Taxes required to have been
withheld and paid in connection with amounts paid or owing to any
Employee, creditor, independent contractor, shareholder, member or
other third party. The Company and each Subsidiary has established
adequate reserves for all Taxes accrued but not yet payable. No
deficiency assessment with respect to or proposed adjustment of the
Company and/or any Subsidiaries Taxes is pending or, to the
knowledge of the Company, threatened. There is no tax lien (other
than for current Taxes not yet due and payable), imposed by any
taxing authority, outstanding against the assets, properties or the
business of the Company or any Subsidiary.

6.15.2.        

Neither the Company
nor any Subsidiary has agreed to make any adjustment under Section
481(a) of the Internal Revenue Code of 1986, as amended (the
“Code”) (or any corresponding provision of state, local
or foreign tax law) by reason of a change in accounting method or
otherwise, and neither the Company nor any Subsidiary will be
required to make any such adjustment as a result of the
transactions contemplated by this Agreement. Neither the Company
nor any Subsidiary has been or is a party to any tax sharing or
similar agreement. Neither the Company nor any Subsidiary is or has
ever been a party to any joint venture, partnership, limited
liability company, or other arrangement or Contract which could be
treated as a partnership for federal income tax purposes. Neither
the Company nor any Subsidiary is or has ever been a “United
States real property holding corporation” as that term is
defined in Section 897 of the Code.

6.16           

Employees.

6.16.1.           

(a) Neither the
Company nor any Subsidiary has, or has ever had any, collective
bargaining agreements with any of its employees; (b) there is no
labor union organizing activity pending or, to the knowledge of the
Company, threatened with respect to the Company or any Subsidiary;
(c) no employee has or is subject to any agreement or Contract to
which the Company or any Subsidiary is a party (including, without
limitation, licenses, covenants or commitments of any nature)
regarding his or her employment or engagement; (d) to the best of
the Company’s knowledge, no employee is subject to any Order
that would interfere with his or her duties to the Company or any
Subsidiary or that would conflict with the businesses the Company
or any Subsidiary as currently conducted and as proposed to be
conducted; (e) no employee is in violation of any term of any
employment contract, proprietary information agreement or any other
agreement relating to the right of any such Person to be employed
by, or to contract with, the Company or any Subsidiary; (f) to the
best of the Company’s knowledge, the continued employment by
the Company or any Subsidiary of its present employees, and the
performance of their respective duties to such entity, will not
result in any violation of any term of any employment contract,
proprietary information agreement or any other agreement relating
to the right of any such individual to be employed by, or to
contract with, the Company or any Subsidiary, and neither the
Company nor any Subsidiary has received any written notice alleging
that such violation has occurred; (g) no Employee or consultant has
been granted the right to continued employment by or service to the
Company or any Subsidiary or to any compensation following
termination of employment with or service to the Company or any
Subsidiary; and (h) neither the Company nor any Subsidiary has any
present intention to terminate the employment or engagement or
service of any officer or any significant employee or
consultant

6.16.2.           

Except as set forth
in the SEC Reports, there are no outstanding or, to the knowledge
of the Company, threatened claims against the Company or any
Subsidiary or any Affiliate (whether under federal or state law,
under any employment agreement, or otherwise) asserted by any
present or former employee or consultant of the Company or any
Subsidiary. Neither the Company nor any Subsidiary is in violation
of any law or Requirement of Law concerning immigration or the
employment of persons other than U.S. citizens.

 

-8-

 

 

6.17           

Regulatory Permits. The Company
and the Subsidiaries possess all certificates, authorizations and
permits issued by the appropriate federal, state, local or foreign
regulatory authorities necessary to conduct their respective
businesses, except where the failure to possess such permits could
not reasonably be expected to result in a Material Adverse Effect
(“Material Permits”), and neither the Company nor any
Subsidiary has received any notice of proceedings relating to the
revocation or modification of any Material Permit

6.18           

Offering Valid. Assuming the
accuracy of the representations and warranties of the Purchasers
contained in the subscription agreements entered into by each
Purchaser in connection with this Agreement, the offer, sale and
issuance of the Securities will be exempt from the registration
requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and will be exempt from registration
and qualification under applicable state securities
laws.

6.19           

Disclosure. Except with respect
to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has
provided any of the Purchasers or their agents or counsel with any
information that it believes constitutes or might constitute
material, non-public information. The Company understands and
confirms that the Purchasers will rely on the foregoing
representation in effecting transactions in securities of the
Company. All of the disclosure furnished by or on behalf of the
Company to the Purchasers regarding the Company and its
Subsidiaries, their respective businesses and the transactions
contemplated hereby, is, as of each Closing Date, true and correct
and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which
they were made, not misleading. The press releases disseminated by
the Company during the twelve months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a
material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made
and when made, not misleading. The Company acknowledges and agrees
that no Purchaser makes or has made any representations or
warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 7
hereof.

6.20           

Investment Company Act. Neither
the Company nor any Subsidiary is an “investment
company”, or a company “controlled” by an
“investment company”, within the meaning of the
Investment Company Act of 1940, as amended.

6.21
      

   
Foreign Payments;
Undisclosed Contract Terms

6.21.1.       

To the knowledge of
the Company, neither the Company nor any Subsidiary has made any
offer, payment, promise to pay or authorization for the payment of
money or an offer, gift, promise to give, or authorization for the
giving of anything of value to any Person in violation of the
Foreign Corrupt Practices Act of 1977, as amended and the rules and
regulations promulgated thereunder.

6.21.2.      

To the knowledge of
the Company, there are no understandings, arrangements, agreements,
provisions, conditions or terms relating to, and there have been no
payments made to any Person in connection with any agreement,
Contract, commitment, lease or other contractual undertaking of the
Company or any Subsidiary which are not expressly set forth in such
contractual undertaking.

6.22         

No Broker. Neither the Company
nor any Subsidiary has employed any broker or finder, or incurred
any liability for any brokerage or finder’s fees in
connection with the sale of the Securities.

6.23         

Compliance with Laws. Neither
the Company nor any Subsidiary is in violation of, or in default
under, any Requirement of Law applicable to such Subsidiary, or any
Order issued or pending against such Subsidiary or by which the
Company’s or such Subsidiary’s properties are bound,
except for such violations or defaults that have not had, and could
not reasonably be expected to have, a Material Adverse
Effect.

6.24         

No Integrated Offering.
Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 5, neither the Company, nor any of
its Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that
would cause this offering of any of the shares of Preferred Stock,
Conversion Shares (collectively, the “Securities”) to
be integrated with prior offerings by the Company for purposes of
(i) the Securities Act which would require the registration of any
such securities under the Securities Act, or (ii) any applicable
shareholder approval provisions of any Trading Market on which any
of the securities of the Company are listed or
designated.

6.25         

Application of Takeover
Protections. The Company and the 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 similar charter documents) or the
laws of its state of incorporation that is or could become
applicable to the Purchasers as a result of the Purchasers and the
Company fulfilling their obligations or exercising their rights
under the Transaction Documents, including without limitation as a
result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

6.26         

No General Solicitation.
Neither the Company nor any person acting on behalf of the Company
has offered or sold any of the Securities by any form of general
solicitation or general advertising. The Company has offered the
Securities for sale only to the Purchasers and certain other
“accredited investors” within the meaning of Rule 501
under the Securities Act.

 

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6.27         

Foreign Corrupt Practices.
Neither the Company nor any Subsidiary, nor to the knowledge of the
Company or any Subsidiary, any agent or other person acting on
behalf of the Company or any Subsidiary, has: (i) directly or
indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or
domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any
foreign or domestic political parties or campaigns from corporate
funds, (iii) failed to disclose fully any contribution made by the
Company or any Subsidiary (or made by any person acting on its
behalf of which the Company is aware) which is in violation of law
or (iv) violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended.

6.28         

[Intentionally Deleted]

6.29         

Office of Foreign Assets
Control. Neither the Company nor any Subsidiary nor, to the
Company's knowledge, any director, officer, agent, employee or
affiliate of the Company or any Subsidiary is currently subject to
any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department
(“OFAC”).

6.30         

U.S. Real Property Holding
Corporation. The Company is not and has never been a U.S.
real property holding corporation within the meaning of Section 897
of the Internal Revenue Code of 1986, as amended, and the Company
shall so certify upon Purchaser’s request.

6.31         

Money Laundering. The
operations of the Company and its Subsidiaries are and have been
conducted at all times in compliance with applicable financial
record-keeping and reporting requirements of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, applicable
money laundering statutes and applicable rules and regulations
thereunder (collectively, the “Money Laundering Laws”),
and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving
the Company or any Subsidiary with respect to the Money Laundering
Laws is pending or, to the knowledge of the Company or any
Subsidiary, threatened.

6.32         

Bad Actor Disqualification

(a)           

No Disqualification
Events. With respect to Securities to be offered and sold hereunder
in reliance on Rule 506 under the Securities Act ("Regulation D
Securities"), none of the 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) to (viii) under the Securities Act
(a "Disqualification Event"), except for a Disqualification Event
covered by Rule 506(d)(2) or (d)(3). 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 Purchasers a copy of any
disclosures provided thereunder.

(b)           

Other Covered
Persons. The Company is not aware of any person that (i) has been
or will be paid (directly or indirectly) remuneration for
solicitation of purchasers in connection with the sale of the
Securities and (ii) who is subject to a Disqualification
Event.

6.33         

Notice of Disqualification
Events. The Company will notify the Purchaser in writing 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, prior to any Closing of this Offering.

6.34         

Transactions with Affiliates and
Employees. Except as set forth in the SEC Reports, none of
the officers or directors of the Company and, to the knowledge of
the Company, none of the employees of the Company is presently a
party to any transaction with the Company or any Subsidiary (other
than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or
from any officer, director or such employee or, to the knowledge of
the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director,
trustee or partner, in each case in excess of $120,000 other than
for: (i) payment of salary or consulting fees for services
rendered, (ii) reimbursement for expenses incurred on behalf of the
Company and (iii) other employee benefits, including stock option
agreements under any stock option plan of the Company.

 

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6.35         

Sarbanes-Oxley; Internal Accounting
Controls. The Company is in material compliance with all
provisions of the Sarbanes-Oxley Act of 2002 which are applicable
to it as of the Closing Date. Except as disclosed in the SEC
Reports, the Company and the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable
assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset
accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Except
as disclosed in the SEC Reports, the Company has established
disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) for the Company and designed such
disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or
submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the
Commission’s rules and forms. The Company’s certifying
officers have evaluated the effectiveness of the Company’s
disclosure controls and procedures as of the end of the period
covered by the Company’s most recently filed periodic report
under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the
certifying officers about the effectiveness of the disclosure
controls and procedures based on their evaluations as of the
Evaluation Date. Since the Evaluation Date, there have been no
changes in the Company’s internal control over financial
reporting (as such term is defined in the Exchange Act) that has
materially affected, or is reasonably likely to materially affect,
the Company’s internal control over financial
reporting.

6.36         

Listing and Maintenance
Requirements. The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has
taken no action designed to, or which to its knowledge is likely to
have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has the Company received any
notification that the SEC is contemplating terminating such
registration. The Company has not, in the 12 months preceding the
date hereof, received notice from any OTC Market on which the
Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance
requirements of such Trading Market. The Company is, and has no
reason to believe that it will not in the foreseeable future
continue to be, in compliance with all such listing and maintenance
requirements.

6.37         

OFAC. Neither the Company nor
any Subsidiary or, to the Company’s knowledge, any director,
officer, agent, employee, Affiliate or person acting on behalf of
any Subsidiary, is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S.
Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of the sale of the
Securities, or lend, contribute or otherwise make available such
proceeds to any joint venture partner or other person or entity,
towards any sales or operations in Cuba, Iran, Syria, Sudan,
Myanmar or any other country sanctioned by OFAC or for the purpose
of financing the activities of any person currently subject to any
U.S. sanctions.

6.38         

Registration Rights. Except as
set forth in SEC Reports, neither the Company nor any Subsidiary is
under any obligation, or has granted any rights that have not been
terminated, to register any of such Subsidiary’s currently
outstanding securities or any of its securities that may hereafter
be issued.

6.39         

Material Non-Public
Information. Except with respect to the transactions
contemplated hereby that will be publicly disclosed, neither the
Company nor any Subsidiary has provided any Purchaser with any
information that such Subsidiary believes constitutes material
non-public information.

6.40         

Right to Receive Additional
Shares. Except as set forth in the SEC Reports, shares to be
issued to previous shareholders as set forth in Schedule 6.7
hereto, or in connection with the Shares issued in this Offering,
no existing shareholder of the Company has any right to cause the
Company to issue additional shares of Common Stock or other
securities to such shareholder.

6.41         

Post Offering Covenants. 
For a period of one
(1) year from the date hereof (i) the Company shall not issue any
or become subject to any indebtedness greater than $250,000, except
for ordinary trade payables without the written consent of
Purchasers then holding more than 50% of the Shares (the
“Required Majority”) and (ii) the Company shall not
issue any equity securities of the Company without the consent of
the Required Majority, which consent shall not be unreasonably
withheld, except for shares issued upon the conversion of currently
existing securities or shares issued pursuant to the
Company’s duly adopted equity incentive plan and as disclosed
herewith in Schedule 6.7.

7.         

Indemnification. The Purchaser agrees to
indemnify and hold harmless the Company, and each of its officers,
directors, managers, employees, agents, attorneys, control persons
and affiliates from and against all losses, liabilities, claims,
damages, costs, fees and expenses whatsoever (including, but not
limited to, any and all expenses incurred in investigating,
preparing or defending against any litigation commenced or
threatened) based upon or arising out of any actual or alleged
false acknowledgment, representation or warranty, or
misrepresentation or omission to state a material fact, or breach
by the Purchaser of any covenant or agreement made by the Purchaser
herein or in any other document delivered in connection with this
Subscription Agreement.

8.           

Binding Effect. This Subscription
Agreement will survive the death or disability of the Purchaser and
will be binding upon and inure to the benefit of the parties and
their heirs, executors, administrators, successors, legal
representatives, and permitted assigns. If the Purchaser is more
than one person, the obligations of the Purchaser hereunder will be
joint and several and the agreements, representations, warranties
and acknowledgments herein will be deemed to be made by and be
binding upon each such person and such person’s heirs,
executors, administrators, successors, legal representatives and
permitted assigns.

9.           

Modification. This Subscription
Agreement will not be modified or waived except by an instrument in
writing signed by the party against whom any such modification or
waiver is sought.

 

-11-

 

 

10.           

Notices. Any notice or other
communication required or permitted to be given hereunder will be
in writing and will be mailed by certified mail, return receipt
requested, or delivered by reputable overnight courier such as
FedEx against receipt to the party to whom it is to be given (a) if
to the Company, at the address set forth in the Unit Purchase
Agreement or (b) if to the Purchaser, at the address set forth on
the signature page hereof (or, in either case, to such other
address as the party will have furnished in writing in accordance
with the provisions of this Section 10). Any notice or other
communication given by certified mail will be deemed given at the
time of certification thereof, except for a notice changing a
party’s address which will be deemed given at the time of
receipt thereof. Any notice or other communication given by
overnight courier will be deemed given at the time of
delivery.

11.           

Assignability. This Subscription
Agreement and the rights, interests and obligations hereunder are
not transferable or assignable by the Purchaser and the transfer or
assignment of any of the Securities will be made only in accordance
with all applicable laws.

 

12.           

Applicable Law. This Subscription
Agreement will be governed by and construed under the laws of the
State of New York as applied to agreements among New York residents
entered into and to be performed entirely within New York. The
parties hereto (1) agree that any legal suit, action or proceeding
arising out of or relating to this Subscription Agreement will be
instituted exclusively in New York State Supreme Court, County of
New York, or in the United States District Court for the Southern
District of New York, (2) waive any objection which the parties may
have now or hereafter to the venue of any such suit, action or
proceeding, and (3) irrevocably consent to the jurisdiction of the
New York State Supreme Court, County of New York, and the United
States District Court for the Southern District of New York in any
such suit, action or proceeding. Each of the parties hereto further
agrees to accept and acknowledge service of any and all process
which may be served in any such suit, action or proceeding in the
New York State Supreme Court, County of New York, or in the United
States District Court for the Southern District of New York and
agrees that service of process upon it mailed by certified mail to
its address will be deemed in every respect effective service of
process upon it, in any such suit, action or proceeding. THE
PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS SUBSCRIPTION AGREEMENT OR ANY DOCUMENT OR AGREEMENT
CONTEMPLATED HEREBY.

 

13.           

Blue Sky Qualification. The purchase of
Securities pursuant to this Subscription Agreement is expressly
conditioned upon the exemption from qualification of the offer and
sale of the Securities from applicable federal and state securities
laws.

14.           

Use of Pronouns. All pronouns and any
variations thereof used herein will be deemed to refer to the
masculine, feminine, neuter, singular or plural as the identity of
the person or persons referred to may require.

15.           

Confidentiality. The Purchaser
acknowledges and agrees that any information or data the Purchaser
has acquired from or about the Company not otherwise properly in
the public domain, was received in confidence. The Purchaser agrees
not to divulge, communicate or disclose, except as may be required
by law or for the performance of this Subscription Agreement, or
use to the detriment of the Company or for the benefit of any other
person or persons, or misuse in any way, any confidential
information of the Company, including any trade or business secrets
of the Company and any business materials that are treated by the
Company as confidential or proprietary, including, without
limitation, confidential information obtained by or given to the
Company about or belonging to third parties.

16.           

Miscellaneous.

(a) 

This Subscription
Agreement, together with the other Transaction Documents,
constitute the entire agreement between the Purchaser and the
Company with respect to the subject matter hereof and supersede all
prior oral or written agreements and understandings, if any,
relating to the subject matter hereof. The terms and provisions of
this Subscription Agreement may be waived, or consent for the
departure therefrom granted, only by a written document executed by
the party entitled to the benefits of such terms or
provisions.

 

(b)           

Each of the
Purchaser’s and the Company’s representations and
warranties made in this Subscription Agreement will survive the
execution and delivery hereof and delivery of the
Securities.

(c)           

Each of the parties
hereto will pay its own fees and expenses (including the fees of
any attorneys, accountants, appraisers or others engaged by such
party) in connection with this Subscription Agreement and the
transactions contemplated hereby whether or not the transactions
contemplated hereby are consummated.

(d)           

This Subscription
Agreement may be executed in one or more counterparts each of which
will be deemed an original, but all of which will together
constitute one and the same instrument.

 

(e)           

Each provision of
this Subscription Agreement will be considered separable and, if
for any reason any provision or provisions hereof are determined to
be invalid or contrary to applicable law, such invalidity or
illegality will not impair the operation of or affect the remaining
portions of this Subscription Agreement.

(f)           

Paragraph titles
are for descriptive purposes only and will not control or alter the
meaning of this Subscription Agreement as set forth in the
text.

 

-12-

 

 

17.           Signature
Page. It is hereby agreed by
the parties hereto that the execution by the Purchaser of this
Subscription Agreement, in the place set forth hereinbelow, will be
deemed and constitute the agreement by the Purchaser to be bound by
all of the terms and conditions hereof as well as each of the other
Transaction Documents, and will be deemed and constitute the
execution by the Purchaser of all such Transaction Documents
without requiring the Purchaser’s separate signature on any
of such Transaction Documents.

[Remainder
of page intentionally left blank.]

 

 

 

-13-

 

 

ANTI-MONEY LAUNDERING REQUIREMENTS

 

	

The USA PATRIOT Act

	
 

	

What is money laundering?

 

	
 

	

How big is the problem and why is it important?

 

	

 

The USA
PATRIOT Act is designed to detect, deter, and punish terrorists in
the United States and abroad. The Act imposes new anti-money
laundering requirements on brokerage firms and financial
institutions. Since April 24, 2002 all brokerage firms have been
required to have new, comprehensive anti-money laundering programs.
To help you understand these efforts, we want to provide you with
some information about money laundering and our steps to implement
the USA PATRIOT Act.

 

	
 

	

 

Money
laundering is the process of disguising illegally obtained money so
that the funds appear to come from legitimate sources or
activities. Money laundering occurs in connection with a wide
variety of crimes, including illegal arms sales, drug trafficking,
robbery, fraud, racketeering, and terrorism.

	
 

	

 

The use
of the U.S. financial system by criminals to facilitate terrorism
or other crimes could well taint our financial markets. According
to the U.S. State Department, one recent estimate puts the amount
of worldwide money laundering activity at $1 trillion a
year.

 

	

  
What are we required to do to eliminate money laundering?
 

	

Under
new rules required by the USA PATRIOT Act, our anti-money
laundering program must designate a special compliance officer, set
up employee training, conduct independent audits, and establish
policies and procedures to detect and report suspicious transaction
and ensure compliance with the new laws.

 

	
 

	

As part
of our required program, we may ask you to provide various
identification documents or other information. Until you provide
the information or documents we need, we may not be able to affect
any transactions for you.

 

 

-14-

 

 

 ORBITAL TRACKING CORP.

SIGNATURE PAGE TO

SUBSCRIPTION AGREEMENT

 

Purchaser
hereby elects to purchase a total of $_________________,
representing ________Shares of Preferred Stock, at a purchase price
of $4.00 per Share.

Date
(NOTE: To be completed by the Purchaser): __________________,
2016

If
the Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS,
as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

	
____________________________

Print Name(s)

	

____________________________

Social Security
Number(s)

	

____________________________

Print Name(s)

	

____________________________

Social Security
Number(s)

	

____________________________

Signature(s) of Purchaser(s)

	

____________________________

Signature

	
 

	
 

	
Address:

	
 

	

____________________________

	

____________________________

	

 

____________________________

	
Date

	

 

____________________________

	
 

 

If the Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY
COMPANY or TRUST:

 

	
Name of Entity

____________________________

 

____________________________

Name of
Partnership, 

Corporation,
Limited

Liability Company
or Trust

 

	

__________________________

           
Federal Taxpayer

Identification Number

	

By: _______________________

       Name:

       
Title:

	

__________________________
State of Organization

	
 

	
 

	
Address:

	
 

	

____________________________

	

___________________________

	

 

____________________________

	
Date

	

 

____________________________

	
 

AGREED
AND ACCEPTED:

 

ORBITAL
TRACKING CORP.

	
By: /s/ David
Phipps

	
 Date: October 13, 2016

	
      Name: David
Phipps

	
 

	
      Title: Chief Executive
Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

-15-

 

 

Schedules

 

Schedule
6.15

 

The Company has not
filed its federal and state tax returns for the 2015 year. The
Company had a net loss during such year and believes that no taxes
are due for 2015.

 

The Company has
been informed by the Internal Revenue Service that it has neglected
to file a Form W-3 Transmittal with accompanying Employee Form
W-2’s for tax year 2009. Failure to file the aforesaid forms
will result in an estimated penalty of $6,600. The Company has
reached out to its former officers to retrieve the forms, but has
been unsuccessful. The Company is in the process of requesting a
waiver for this penalty.

 

Schedule
6.7

 

Capitalization

 

 

Preferred Stock – 50,000,000
shares authorized; $0.0001 par value

Series A –
20,000 authorized and -0- outstanding

Series B –
30,000 authorized and 6,666 outstanding

Series C –
4,000,000 authorized and 3,090,365 outstanding

Series D –
5,000,000 authorized and 3,613,984 outstanding

Series E –
8,746,000 authorized and 8,357,826 outstanding

Series F –
1,100,000 authorized and 1,099,998 outstanding

Series G –
10,090,000 authorized and 10,083,351 outstanding

 

Common Stock – 750,000,000
authorized; $0.0001 par value, 46,123,701 issued and outstanding.
Reg S Common stock; 3,913 authorized, issued and
outstanding.

 

Options – 2,850,000 fully vested
options to purchase common stock, at an exercise price of $0.05.
The Company intends to grant to its Chief Executive Officer, David
Phipps, 10,000,000 fully vested options at an exercise price of
$0.01.

 

Warrants – 5,000 warrants to
purchase common stock at an exercise price of $4.50.

 

Upon the completion
of this Offering, the Company will be required to issue to
subscribers who participated in the Company’s private
offerings prior to February 15, 2015, pursuant to certain
anti-dilution protection, additional shares of Series C Preferred
Stock, Series F Preferred Stock and Series G Preferred Stock. The
Company will issue an aggregate of 550,000 shares of Series C
Preferred Stock. However, in lieu of issuing such additional shares
of Series F Preferred Stock and Series G Preferred Stock, the
Company will create a new series of preferred stock, to be
designated as “Series I Preferred Stock” and to issue
to such shareholder an aggregate of 114,944 shares of such Series I
Preferred Stock, each of which shall be convertible into one
hundred (100) shares of the Company’s common
stock.

 

 

-16-

 

 

Schedule A

 

FORM
OF INVESTOR QUESTIONNAIRE

 

ORBITAL
TRACKING CORP.

 

For
Individual Investors Only

(All
individual investors must INITIAL where appropriate. Where there
are joint investors both parties must INITIAL):

 

Initial _______ 

I certify
that I have a
“net worth” of at least $1 million either individually
or through aggregating my individual holdings and those in which I
have a joint, community property or other similar shared ownership
interest with my spouse. For purposes of calculating net worth
under this paragraph, (i) the primary residence shall not be
included as an asset, (ii) to the extent that the indebtedness that
is secured by the primary residence is in excess of the fair market
value of the primary residence, the excess amount shall be included
as a liability, and (iii) if the amount of outstanding indebtedness
that is secured by the primary residence exceeds the amount
outstanding 60 days prior to the execution of this Subscription
Agreement, other than as a result of the acquisition of the primary
residence, the amount of such excess shall be included as a
liability.

 

Initial _______ 

I certify
that I have had an
annual gross income for the past two years of at least $200,000 (or
$300,000 jointly with my spouse) and expect my income (or joint
income, as appropriate) to reach the same level in the current
year.

  

For
Non-Individual Investors  
(all
Non-Individual Investors must INITIAL where
appropriate):

  
 

Initial _______ 

The undersigned
certifies that it is a partnership, corporation, limited liability
company or business trust that is 100% owned by persons who meet
either of the criteria for Individual Investors,
above.

 

Initial _______ 

The undersigned
certifies that it is a partnership, corporation, limited liability
company or business trust that has total assets of at least $5
million and was not formed for the purpose of investing in
Company.

 

Initial _______ 

The undersigned
certifies that it is an employee benefit plan whose investment
decision is made by a plan fiduciary (as defined in ERISA
§3(21)) that is a bank, savings and loan association,
insurance company or registered investment adviser.

 

Initial _______ 

The undersigned
certifies that it is an employee benefit plan whose total assets
exceed $5,000,000 as of the date of the Subscription
Agreement.

 

Initial _______ 

The undersigned
certifies that it is a self-directed employee benefit plan whose
investment decisions are made solely by persons who meet either of
the criteria for Individual Investors, above.

 

Initial _______ 

The undersigned
certifies that it is a U.S. bank, U.S. savings and loan association
or other similar U.S. institution acting in its individual or
fiduciary capacity.

 

 

Initial _______ 

The undersigned
certifies that it is a broker-dealer registered pursuant to
§15 of the Securities Exchange Act of 1934.

 

Initial _______ 

The undersigned
certifies that it is an organization described in §501(c)(3)
of the Internal Revenue Code with total assets exceeding $5,000,000
and not formed for the specific purpose of investing in
Company.

 

Initial _______ 

The undersigned
certifies that it is a trust with total assets of at least
$5,000,000, not formed for the specific purpose of investing in
Company, and whose purchase is directed by a person with such
knowledge and experience in financial and business matters that he
is capable of evaluating the merits and risks of the prospective
investment.

 

 

Initial _______ 

The undersigned
certifies that it is a plan established and maintained by a state
or its political subdivisions, or any agency or instrumentality
thereof, for the benefit of its employees, and which has total
assets in excess of $5,000,000.

 

Initial _______ 

The undersigned
certifies that it is an insurance company as defined in
§2(a)(13) of the Securities Act of 1933, as amended, or a
registered investment company.

 

 

-17-

 

 

ORBITAL
TRACKING CORP.

Investor
Questionnaire

(Must
be completed by Purchaser)

 

Section
A - Individual Purchaser Information

 

Purchaser Name(s):
________________________________________________________________________

 

Individual
executing Profile or Trustee:
_______________________________________________________________________

 

Social Security
Numbers / Federal I.D. Number:
________________________________________________________________________

 

Date of Birth:
_________________ Marital Status: _________________

 

Joint Party Date of
Birth:________________

 

Investment
Experience (Years): ___________

 

Annual Income:
_________________

 

Net Worth:
________________

 

Home Street
Address:
________________________________________________________________________

 

Home City, State
& Zip Code:
________________________________________________________________________

 

Home Phone:
________________________ Home Fax:
_____________________

 

Home Email:
_______________________________

 

Employer:
________________________________________________________________________

 

Employer Street
Address:
________________________________________________________________________

 

Employer City,
State & Zip Code:
________________________________________________________________________

 

Bus. Phone:
__________________________ Bus. Fax:
_______________________

 

Bus. Email:
________________________________

 

Type of Business:
________________________________________________________________________

 

Please check if you
are a FINRA member or affiliate of a FINRA member firm:
_______

 

 

-18-

 

 

Section
B – Entity Purchaser Information

 

Purchaser Name(s):
________________________________________________________________________

 

Authorized
Individual executing Profile or Trustee:
_____________________________________________________________________

 

Social Security
Numbers / Federal I.D. Number:
_______________________________________________________________________

 

Investment
Experience (Years): ___________

 

Annual Income:
_______________

 

Net Worth:
________________

 

Was the Trust
formed for the specific purpose of purchasing the
Securities?

[ ] Yes [ ]
No

 

Principal Purpose
(Trust)_____________________________________

 

Type of Business:
________________________________________________________

 

Street Address:
________________________________________________________________________

 

City, State &
Zip Code:
________________________________________________________________________

 

Phone:
________________________ Fax: ________________________

 

Email:
__________________________

 

 
-19-

 

 

Section C – Form of Payment – Check or Wire
Transfer

  

____ Check payable
to “ORBITAL TRACKING
CORP”

 

____ Wire funds
from my outside account according to the “To subscribe for
Shares of Preferred Stock in the private offering of ORBITAL
TRACKING CORP.”

 

Section E – Securities Delivery Instructions (check
one)

 

____ Please deliver
my securities to the address listed in the above Investor
Questionnaire.

 

____ Please deliver
my securities to the below address:

 

______________________________________

 

______________________________________

 

______________________________________

 

______________________________________

 

 

Purchaser
Signature(s)
_______________________________________Date_______________

 

Purchaser
Signature(s)
_______________________________________Date_______________

 

 

 

-20-EX-10.1

 EXHIBIT 10.1 

MATEON THERAPEUTICS, INC. 

2017 EQUITY INCENTIVE PLAN 
  

	1.	DEFINITIONS. 

 Unless otherwise specified or unless the context otherwise requires, the following terms,
as used in this Mateon Therapeutics, Inc. 2017 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 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 an
agreement between the Company and a Participant pertaining to a Stock Right delivered pursuant to the Plan in such form as the Administrator shall approve. 

Board of Directors means the Board of Directors of the Company. 

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. 

Code means the United States Internal Revenue Code of 1986, as amended, including any successor statute, regulation and guidance issued with respect
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. 
 Common Stock means shares of the Company’s common stock, $0.01 par value per share. 

Company means Mateon Therapeutics, Inc., a Delaware corporation. 

Consultant means any natural person who is an advisor or consultant that 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. 

Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code. 

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 Securities Exchange Act of 1934, as amended. 
 Fair Market Value of a Share of Common Stock means: 

(1) 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; 

 (2) 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 
 (3) 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. 

  
 1 

 Option means a 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. 
 Plan means this Mateon
Therapeutics, Inc. 2017 Equity Incentive Plan. 
 Securities Act means the 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. 

Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan, which may be 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 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 2,000,000 shares of Common Stock 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 24 of the Plan. 
 (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 of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by withholding 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. 
  

	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. 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; 

(e) Amend any term or condition of any outstanding Stock Right, other than reducing the exercise price or purchase price, 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; and 

(f) 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; 

  
 2 

 provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and
prescribed in the context of not causing any adverse tax consequences under Section 409A of the Code. 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. 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. 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 writing 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. 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 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. 

  

	 	(iii)	Vesting: 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 the attainment of stated goals or events. 

  

	 	(iv)	Additional Conditions: Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase agreement in 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)	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. 

 

	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. 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: 
  

	 	(i)	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 Delaware General Corporation Law, if any, on the date of the grant of the Stock Grant; 

  

	 	(ii)	Each Agreement shall state the number of Shares to which the Stock Grant pertains; and 

  
 3 

	 	(iii)	Each Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant. 

  

	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 to terminate the Stock-Based Award without the issuance of Shares, and the terms of any vesting conditions, or events upon which Shares shall be issued. Under no circumstances may an Agreement covering
stock appreciation rights (a) have an exercise 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.	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. 
 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. 
  

	10.	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. 
 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. 

  
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	11.	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. 
  

	12.	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. 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. 
  

	13.	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: 
  

	 	(i)	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 14, 15, and 16, 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. 

  

	 	(ii)	The provisions of this Paragraph, and not the provisions of Paragraph 15 or 16, 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. 

  

	 	(iii)	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.

  

	 	(iv)	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. 

  

	 	(v)	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. 

  

	14.	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: 
  

	 	(i)	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. 

 

	 	(ii)	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. 

  
 5 

	15.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY. 

 Except as otherwise provided in a
Participant’s Option Agreement: 
  

	 	(i)	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; 

  

	 	(ii)	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; 

  

	 	(iii)	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; and 

  

	 	(iv)	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. 

  

	16.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT. 

 Except as otherwise provided in a
Participant’s Option Agreement: 
  

	 	(i)	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; 

  

	 	(ii)	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; and 

 

	 	(iii)	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.

  

	17.	EFFECT OF TERMINATION OF SERVICE ON 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 17 and Paragraph 18 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 17 and Paragraph 18 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. 

 

	18.	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 19, 20, and 21 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. 

  
 6 

	19.	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: 

 

	 	(i)	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. 

  

	 	(ii)	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. 

 

	20.	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. 
 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. 
  

	21.	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. 
  

	22.	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: 
  

	 	(i)	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: 

 “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.” 
  

	 	(ii)	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. 

  

	23.	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. 

  
 7 

	24.	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 or purchase price per share, 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 merger, consolidation, or sale of all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation (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. 
 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 24(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 24, 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 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 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. 

  
 8 

	25.	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. 

 

	26.	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. 
  

	27.	WITHHOLDING. 

 In the event that any federal, state, or local income taxes, employment taxes, Federal
Insurance Contributions Act (“F.I.C.A.”) 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. The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding. 

 

	28.	TERMINATION OF THE PLAN. 

 The Plan will terminate on January 12, 2027 (the date which is ten years
from the date of its adoption by the Board of Directors). The Plan may be terminated at an earlier date by 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. 
  

	29.	AMENDMENT OF THE PLAN AND AGREEMENTS. 

 The Plan may be amended by the Administrator, including, without
limitation, 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. 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. 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 29 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 24. 
  

	30.	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. 
  

	31.	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 or her 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. 

  
 9 

	32.	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 any 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. 
  

	33.	GOVERNING LAW. 

 This Plan shall be construed and enforced in accordance with the law of the State of
Delaware. 

  
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