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  Exhibit
4.5

 

 

Tenax
Therapeutics, Inc.

 

and

 

Direct
Transfer LLC, as

Warrant
Agent

 

 

 

Warrant
Agency Agreement

 

Dated
as of December __, 2018

 

 

 

 

 

 

 

 

 

 

 

WARRANT AGENCY AGREEMENT

 

WARRANT
AGENCY AGREEMENT, dated as of December __, 2018
(“Agreement”),
between Tenax Therapeutics, Inc., a Delaware corporation (the
“Company”), and Direct
Transfer LLC, a Delaware limited liability company (the
“Warrant
Agent”).

 

W I T N
E S S E T H

 

WHEREAS, pursuant
to a registered offering by the Company of shares of Series A
convertible preferred stock (the “Preferred Stock”) that
are convertible into shares of common stock, par value
$0.0001
per share (the “Common Stock”), and
Warrants (as defined below), pursuant to an effective registration
statement on Form S-1 (File No. 333-228212) (the
“Registration
Statement”), the Company wishes to issue Warrants in
book entry form entitling the respective holders of the Warrants
(the “Holders”, which term
shall include a Holder’s transferees, successors and assigns
and “Holder” shall include, if the Warrants are held in
“street name”, a Participant (as defined below) or a
designee appointed by such Participant) to purchase an aggregate of
up to _______ shares of Common Stock underlying the Series 1
Warrants (as defined below) and up to ________ shares of Common
Stock underlying the Series 2 Warrants (as defined below) upon the
terms and subject to the conditions hereinafter set forth (the
“Offering”);

 

WHEREAS, the shares
of Preferred Stock and Warrants to be issued in connection with the
Offering shall be immediately separable and will be issued
separately, but will be purchased together in the Offering;
and

 

WHEREAS, the
Company wishes the Warrant Agent to act on behalf of the Company,
and the Warrant Agent is willing so to act, in connection with the
issuance, registration, transfer, exchange, exercise and
replacement of the Warrants and, in the Warrant Agent’s
capacity as the Company’s transfer agent, the delivery of the
Warrant Shares (as defined below).

 

NOW,
THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as
follows:

 

Section
1. Certain
Definitions. For purposes of this Agreement, the following
terms have the meanings indicated:

 

(a)
“Business
Day” means any day except any Saturday, any Sunday,
any day which is a federal legal holiday in the United States or
any day on which the Nasdaq Stock Market is authorized or required
by law or other governmental action to close.

 

(b)
“Close of
Business” on any given date means 5:00 p.m., New York
City time, on such date; provided, however, that if such date is
not a Business Day it means 5:00 p.m., New York City time, on the
next succeeding Business Day.

 

(c)
“Person” means an
individual, corporation, association, partnership, limited
liability company, joint venture, trust, unincorporated
organization, government or political subdivision thereof or
governmental agency or other entity.

 

(d)
“Series 1
Warrants” means Series 1 Common Stock purchase
warrants of the Company with a term of exercise of two (2) years
following the Initial Exercise Date.

 

(e)
“Series 2
Warrants” means Series 2 Common Stock purchase
warrants of the Company with a term of exercise of five (5) years
following the Initial Exercise Date.

 

(f)
“Series 1 Warrant
Certificate” means a certificate in substantially the
form attached as Exhibit
1 hereto, representing such number of Warrant Shares as is
indicated therein, provided that any reference to the delivery of a
Series 1 Warrant Certificate in this Agreement shall include
delivery of notice from the Depositary or a Participant (each as
defined below) of the transfer or exercise of Series 1 Warrant in
the form of a Series 1 Global Warrant (as defined
below).

 

(g)
“Series 2 Warrant
Certificate” means a certificate in substantially the
form attached as Exhibit
1 hereto, representing such number of Warrant Shares as is
indicated therein, provided that any reference to the delivery of a
Series 2 Warrant Certificate in this Agreement shall include
delivery of notice from the Depositary or a Participant (each as
defined below) of the transfer or exercise of Series 2 Warrant in
the form of a Series 2 Global Warrant (as defined
below)

 

(h)
“Warrant
Certificates” means, collectively, the Series 1
Warrant Certificate and the Series 2 Warrant Certificate and, each,
a “Warrant
Certificate”.

 

 

(i)
“Warrant
Shares” means the shares of Common Stock underlying
the Warrants and issuable upon exercise of the
Warrants.

 

(j)
“Warrants” means,
collectively, the Series 1 Warrants and the Series 2 Warrants and,
each, a “Warrant”.

 

All
other capitalized terms used but not otherwise defined herein shall
have the meaning ascribed to such terms in the Warrant
Certificates.

 

Section
2. Appointment of Warrant
Agent. The Company hereby appoints the Warrant Agent to act
as agent for the Company in accordance with the express terms or
conditions hereof (and no implied terms and conditions), and the
Warrant Agent hereby accepts such appointment. The Company may from
time to time appoint such Co-Warrant Agents as it may, in its sole
discretion, deem necessary or desirable. The Warrant Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or
omissions of any such co-Warrant Agent. In the event the Company
appoints one or more co-Warrant Agents, the respective duties of
the Warrant Agent and any co-Warrant Agent shall be as the Company
shall reasonably determine, provided that such duties and
determination are consistent with the terms and provisions of this
Agreement.

 

Section
3. Global
Warrants.

 

(a) The
Series 1 Warrants and the Series 2 Warrants, respectively, shall be
issuable in book entry form (the “Series 1 Global Warrant”
and the “Series 2
Global Warrant”, respectively, and, collectively, the
“Global
Warrants” and, each, a “Global Warrant”). All of
the Series 1 Warrants and the Series 2 Warrants, respectively,
shall initially be represented by one or more Series 1 Global
Warrants and Series 2 Global Warrants, respectively, deposited with
the Warrant Agent and registered in the name of Cede & Co., a
nominee of The Depository Trust Company (the “Depositary”), or as
otherwise directed by the Depositary. Ownership of beneficial
interests in the Series 1 Warrants and the Series 2 Warrants,
respectively, shall be shown on, and the transfer of such ownership
shall be effected through, records maintained by (i) the Depositary
or its nominee for each Global Warrant or (ii) institutions that
have accounts with the Depositary (such institution, with respect
to a Warrant in its account, a “Participant”).

 

(b) If
the Depositary subsequently ceases to make its book-entry
settlement system available for the Warrants, the Company may
instruct the Warrant Agent regarding other arrangements for
book-entry settlement. In the event that the Warrants are not
eligible for, or it is no longer necessary to have the Warrants
available in, book-entry form, the Warrant Agent shall provide
written instructions to the Depositary to deliver to the Warrant
Agent for cancellation each Global Warrant, and the Company shall
instruct the Warrant Agent in writing to deliver to each Holder a
Warrant Certificate.

 

(c) A
Holder has the right to elect at any time or from time to time a
Warrant Exchange (as defined below) pursuant to a Warrant
Certificate Request Notice (as defined below). Upon written notice
by a Holder to the Warrant Agent for the exchange of some or all of
such Holder’s Global Warrants for a Series 1 Warrant
Certificate or a Series 2 Warrant Certificate, as applicable,
evidencing the same number of Warrants, which request shall be in
the form attached hereto as Annex A (a “Warrant Certificate Request
Notice” and the date of delivery of such Warrant
Certificate Request Notice by the Holder, the “Warrant Certificate Request Notice
Date” and the deemed surrender upon delivery by the
Holder of a number of Global Warrants for the same number of
Warrants evidenced by a Warrant Certificate, a “Warrant Exchange”), the
Warrant Agent shall promptly effect the Warrant Exchange and shall
promptly issue and deliver, at the expense of the Company, to the
Holder a Series 1 Warrant Certificate or a Series 2 Warrant
Certificate, as applicable, for such number of Warrants in the name
set forth in the Warrant Certificate Request Notice. Such Series 1
Warrant Certificate or a Series 2 Warrant Certificate, as
applicable, shall be dated the original issue date of the Warrants
and shall be executed by manual signature by an authorized
signatory of the Company. In connection with a Warrant Exchange,
the Company agrees to deliver, or to direct the Warrant Agent to
deliver, the Series 1 Warrant Certificate or a Series 2 Warrant
Certificate, as applicable, to the Holder within three (3) Business
Days of the Warrant Certificate Request Notice pursuant to the
delivery instructions in the Warrant Certificate Request Notice
(“Warrant
Certificate Delivery Date”). Notwithstanding anything
herein to the contrary, the Company shall act as warrant agent with
respect to any physical Series 1 Warrant Certificate or Series 2
Warrant Certificate issued pursuant to this section. If the Company
fails for any reason to deliver to the Holder the Series 1 Warrant
Certificate or the Series 2 Warrant Certificate subject to the
Warrant Certificate Request Notice by the Warrant Certificate
Delivery Date, the Company shall pay to the Holder, in cash, as
liquidated damages and not as a penalty, for each $1,000 of Warrant
Shares evidenced by such Series 1 Warrant Certificate or Series 2
Warrant Certificate (based on the VWAP (as defined in the Warrants)
of the Common Stock on the Warrant Certificate Request Notice
Date), $10 per Business Day for each Business Day after such
Warrant Certificate Delivery Date until such Series 1 Warrant
Certificate or Series 2 Warrant Certificate, as applicable, is
delivered or, prior to delivery of such Series 1 Warrant
Certificate or Series 2 Warrant Certificate, the Holder rescinds
such Warrant Exchange. In no event shall the Warrant Agent be
liable for the Company’s failure to deliver the Series 1
Warrant Certificate or the Series 2 Warrant Certificate by the
Warrant Certificate Delivery Date. The Company covenants and agrees
that, upon the date of delivery of the Warrant Certificate Request
Notice, the Holder shall be deemed to be the holder of the Series 1
Warrant Certificate or Series 2 Warrant Certificate, as applicable,
and, notwithstanding anything to the contrary set forth herein, the
Series 1 Warrant Certificate or Series 2 Warrant Certificate shall
be deemed for all purposes to contain all of the terms and
conditions of the Series 1 Warrants or Series 2 Warrants, as
applicable, evidenced by such Series 1 Warrant Certificate or
Series 2 Warrant Certificate, as applicable, and the terms of this
Agreement, other than Sections 3(c) and 9 herein, shall not apply
to the Warrants evidenced by the Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable.

 

 

 

 

Section
4. Form of Warrant
Certificates. The Warrant Certificates, together with the
form of election to purchase Common Stock (“Exercise Notice”) and the
form of assignment to be printed on the reverse thereof, shall be
in the form of Exhibit
1 hereto.

 

Section
5. Countersignature and
Registration. The Warrant Certificates shall be executed on
behalf of the Company by its Chief Executive Officer, Chief
Financial Officer or Vice President, either manually or by
facsimile signature, and have affixed thereto the Company’s
seal or a facsimile thereof which shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually
or by facsimile signature. The Warrant Certificates shall be
countersigned by the Warrant Agent by either manually or by
facsimile signature and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have
signed any of the Warrant Certificates shall cease to be such
officer of the Company before countersignature by the Warrant Agent
and issuance and delivery by the Company, such Warrant
Certificates, nevertheless, may be countersigned by the Warrant
Agent, issued and delivered with the same force and effect as
though the person who signed such Warrant Certificate had not
ceased to be such officer of the Company; and any Warrant
Certificate may be signed on behalf of the Company by any person
who, at the actual date of the execution of such Warrant
Certificate, shall be a proper officer of the Company to sign such
Warrant Certificate, although at the date of the execution of this
Agreement any such person was not such an officer.

 

The
Warrant Agent will keep or cause to be kept, at its office
designated for such purposes, books for registration and transfer
of the Warrant Certificates issued hereunder. Such books shall show
the names and addresses of the respective Holders of the Warrant
Certificates, the number of warrants evidenced on the face of each
of such Warrant Certificate and the date of each of such Warrant
Certificate. The Warrant Agent will create a special account for
the issuance of Warrant Certificates.

 

Section
6. Transfer, Split Up,
Combination and Exchange of Warrant Certificates; Mutilated,
Destroyed, Lost or Stolen Warrant Certificates. With respect
to the Series 1 Global Warrant and the Series 2 Global Warrant,
respectively, subject to the provisions of the Series 1 Warrant
Certificate and the Series 2 Warrant Certificate, respectively, and
the last sentence of this first paragraph of Section 6 and subject
to applicable law, rules or regulations, or any “stop
transfer” instructions the Company may give to the Warrant
Agent, at any time after the closing date of the Offering, and at
or prior to the Close of Business on the Termination Date (as such
term is defined in the Warrant Certificate), any Warrant
Certificate or Warrant Certificates or Global Warrant or Global
Warrants may be transferred, split up, combined or exchanged for
another Warrant Certificate or Warrant Certificates or Global
Warrant or Global Warrants, entitling the Holder to purchase a like
number of shares of Common Stock as the Warrant Certificate or
Warrant Certificates or Global Warrant or Global Warrants
surrendered then entitled such Holder to purchase. Any Holder
desiring to transfer, split up, combine or exchange any Warrant
Certificate or Global Warrant shall make such request in writing
delivered to the Warrant Agent, and shall surrender the Warrant
Certificate or Warrant Certificates, together with the required
form of assignment and certificate duly executed and properly
completed and such other
documentation as the Warrant Agent may reasonably request, to be
transferred, split up, combined or exchanged at the office of the
Warrant Agent designated for such purpose, provided that no such
surrender is applicable to the Holder of a Global Warrant. Any
requested transfer of Warrants, whether in book-entry form or
certificate form, shall be accompanied by evidence of authority of
the party making such request that may be reasonably
required by the Warrant Agent. Thereupon the Warrant Agent shall,
subject to the last sentence of this first paragraph of Section 6,
countersign and deliver to the Person entitled thereto a Warrant
Certificate or Warrant Certificates, as the case may be, as so
requested. The Company may require payment from the Holder of a sum
sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or
exchange of Warrant Certificates. The Warrant Agent shall not have any
duty or obligation to take any action under any section of this
Agreement that requires the payment of taxes and/or charges unless
and until it is satisfied that all such payments have been
made.

 

Upon
receipt by the Warrant Agent of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of a Warrant
Certificate, which evidence shall include an affidavit of loss, or
in the case of mutilated certificates, the certificate or portion
thereof remaining, and, in case of loss, theft or destruction, of
indemnity or security reasonably acceptable to the Company and the
Warrant Agent, and satisfaction of any other reasonable
requirements established by Section 8-405 of the Uniform Commercial
Code as in effect in the State of Delaware, and reimbursement to
the Company and the Warrant Agent of all reasonable expenses
incidental thereto, and upon surrender to the Warrant Agent and
cancellation of the Warrant Certificate if mutilated, the Company
will make and deliver a new Warrant Certificate of like tenor to
the Warrant Agent for delivery to the Holder in lieu of the Warrant
Certificate so lost, stolen, destroyed or mutilated.

 

 

 

 

Section
7. Exercise of Warrants;
Exercise Price; Termination Date.

 

(a) The
Series 1 Warrants and the Series 2 Warrants shall be exercisable
commencing on the Initial Exercise Date. The Series 1 Warrants and
the Series 2 Warrants shall cease to be exercisable and shall
terminate and become void, and all rights thereunder and under this
Agreement shall cease, at or prior to the Close of Business on the
Termination Date (as such term is defined in the Series 1 Warrant
Certificate and the Series 2 Warrant Certificate, respectively).
Subject to the foregoing and to Section 7(b) below, the Holder of a
Series 1 Warrant or a Series 2 Warrant, as applicable, may exercise
the Series 1 Warrant and the Series 2 Warrant, as applicable, in
whole or in part upon surrender of the Series 1 Warrant Certificate
or the Series 2 Warrant Certificate, as applicable, if required,
with the properly completed and duly executed Exercise
Notice and payment of the
Exercise Price (unless exercised via a cashless exercise), which
may be made, at the option of the Holder, by wire transfer or by
certified or official bank check in United States dollars, to the
Warrant Agent at the office of the Warrant Agent designated for
such purposes. In the case of the Holder of a Global Warrant, the
Holder shall deliver the duly executed Exercise Notice and the
payment of the Exercise Price as described herein. Notwithstanding
any other provision in this Agreement, a holder whose interest in a
Global Warrant is a beneficial interest in a Global Warrant held in
book-entry form through the Depositary (or another established
clearing corporation performing similar functions), shall effect
exercises by delivering to the Depositary (or such other clearing
corporation, as applicable) the appropriate instruction form for
exercise, complying with the procedures to effect exercise that are
required by the Depositary (or such other clearing corporation, as
applicable). The Company acknowledges that the bank accounts
maintained by the Warrant Agent in connection with the services
provided under this Agreement will be in its name and that the
Warrant Agent may receive investment earnings in connection with
the investment at Warrant Agent risk and for its benefit of funds
held in those accounts from time to time. Neither the Company nor
the Holders will receive interest on any deposits or Exercise
Price. No ink-original Exercise Notice shall be required, nor shall
any medallion guarantee (or other type of guarantee or
notarization) of any Exercise Notice be required.

 

(b)
Upon receipt of an Exercise Notice for a cashless exercise pursuant
to Section 2(c) of the Warrant Certificates (each, a
“Cashless Exercise”), the Warrant Agent shall deliver a
copy of the Exercise Notice to the Company and request from the
Company, and the Company shall promptly calculate and transmit to
the Warrant Agent in writing, the number of Warrant Shares issuable
in connection with such Cashless Exercise. The Warrant Agent shall
have no obligation under this Agreement to calculate, the number of
Warrant Shares issuable in connection with a Cashless Exercise nor
shall the Warrant agent have any duty or obligation to investigate
or confirm whether the Company’s determination of the number
of Warrant Shares issuable upon such exercise, pursuant to this
Section 7, is accurate or correct.

 

(c)
Upon the Warrant Agent’s receipt of a Series 1 Warrant
Certificate or a Series 2 Warrant Certificate, as applicable, at or
prior to the Close of Business on the Termination Date set forth in
such Series 1 Warrant Certificate or Series 2 Warrant Certificate,
as applicable, with the executed Exercise Notice and payment of the
Exercise Price for the shares to be purchased (other than in the
case of a Cashless Exercise) and an amount equal to any applicable
tax, or governmental charge referred to in Section 6 by wire
transfer, or by certified check or bank draft payable to the order
of the Company (or, in the case of the Holder of a Global Warrant,
the delivery of the executed Exercise Notice and the payment of the
Exercise Price (other than in the case of a Cashless Exercise) and
any other applicable amounts as set forth herein), the Warrant
Agent shall cause the Warrant Shares underlying such Series 1
Warrant Certificate or Series 2 Warrant Certificate, as applicable,
or Series 1 Global Warrant or Series 2 Global Warrant, as
applicable, to be delivered to or upon the order of the Holder of
such Series 1 Warrant Certificate or Series 2 Warrant Certificate,
as applicable, or Series 1 Global Warrant or Series 2 Global
Warrant, as applicable, registered in such name or names as may be
designated by such Holder, no later than the Warrant Share Delivery
Date (as such term is defined in the Series 1 Warrant Certificate
or Series 2 Warrant Certificate, as applicable). If the Company is
then a participant in the DWAC system of the Depositary and either
(A) there is an effective registration statement permitting the
issuance of the Warrant Shares to or resale of the Warrant Shares
by Holder or (B) the Warrant is being exercised via Cashless
Exercise, then the certificates for Warrant Shares shall be
transmitted by the Warrant Agent to the Holder by crediting the
account of the Holder’s broker with the Depositary through
its DWAC system. For the avoidance of doubt, if the Company becomes
obligated to pay any amounts to any Holders pursuant to Section
2(d)(i) or 2(d)(iv) of the Series 1 Warrant Certificate or Series 2
Warrant Certificate, as applicable, such obligation shall be solely
that of the Company and not that of the Warrant Agent.
Notwithstanding anything else to the contrary in this Agreement,
except in the case of a Cashless Exercise, if any Holder fails to
duly deliver payment to the Warrant Agent of an amount equal to the
aggregate Exercise Price of the Warrant Shares to be purchased upon
exercise of such Holder’s Warrant as set forth in Section
7(a) hereof by the Warrant Share Delivery Date, the Warrant Agent
will not obligated to deliver such Warrant Shares (via DWAC or
otherwise) until following receipt of such payment, and the
applicable Warrant Share Delivery Date shall be deemed extended by
one day for each day (or part thereof) until such payment is
delivered to the Warrant Agent.

 

 

 

(d) The
Warrant Agent shall deposit all funds received by it in payment of
the Exercise Price for all Warrants in the account of the Company
maintained with the Warrant Agent for such purpose (or to such
other account as directed by the Company in writing) and shall
advise the Company via email at the end of each day on which
exercise notices are received or funds for the exercise of any
Warrant are received of the amount so deposited to its
account.

 

(e) In
case the Holder of any Warrant Certificate shall exercise fewer
than all Warrants evidenced thereby and surrenders such Warrant
Certificate in connection with such partial exercise, a new Warrant
Certificate evidencing the number of Warrants equivalent to the
number of Warrants remaining unexercised may be issued by the
Warrant Agent to the Holder of such Warrant Certificate or to his
duly authorized assigns in accordance with Section 2(d)(ii) of the
Warrant Certificate, subject to the provisions of Section 6
hereof.

 

Section
8. Cancellation and
Destruction of Warrant Certificates. All Warrant
Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the
Company or to any of its agents, be delivered to the Warrant Agent
for cancellation or in canceled form, or, if surrendered to the
Warrant Agent, shall be canceled by it, and no Warrant Certificates
shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver
to the Warrant Agent for cancellation and retirement, and the
Warrant Agent shall so cancel and retire, any other Warrant
Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof. The Warrant Agent shall deliver all
canceled Warrant Certificates to the Company, or shall, at the
written request of the Company, destroy such canceled Warrant
Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company, subject to any applicable law,
rule or regulation requiring the Warrant Agent to retain such
canceled certificates.

 

Section
9. Certain
Representations; Reservation and Availability of Shares of Common
Stock or Cash.

 

(a)
This Agreement has been duly authorized, executed and delivered by
the Company and, assuming due authorization, execution and delivery
hereof by the Warrant Agent, constitutes a valid and legally
binding obligation of the Company enforceable against the Company
in accordance with its terms, and the Warrants have been duly
authorized, executed and issued by the Company and, assuming due
execution thereof by the Warrant Agent pursuant hereto and payment
therefor by the Holders as provided in the Registration Statement,
constitute valid and legally binding obligations of the Company
enforceable against the Company in accordance with their terms and
entitled to the benefits hereof; in each case except as
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally or by general equitable
principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

(b) As
of the date hereof, the authorized capital stock of the Company
consists of (i) 400,000,000 shares of Common Stock, of which
_______ shares of Common Stock are issued and outstanding, and
______ shares of Common Stock are reserved for issuance upon
exercise of the Warrants, and (ii) 10,000,000 shares of preferred
stock, of which ____ shares are issued and outstanding designated
as Series A Convertible Preferred Stock, and ______ shares of
Common Stock are reserved for issuance upon conversion of the
Preferred Stock. Except as disclosed in the Registration Statement,
there are no other outstanding obligations, warrants, options or
other rights to subscribe for or purchase from the Company any
class of capital stock of the Company.

 

(c) The
Company covenants and agrees that it will cause to be reserved and
kept available out of its authorized and unissued shares of Common
Stock or its authorized and issued shares of Common Stock held in
its treasury, free from preemptive rights, the number of shares of
Common Stock that will be sufficient to permit the exercise in full
of all outstanding Warrants.

 

(d) The
Warrant Agent will create a special account for the issuance of
Common Stock upon the exercise of Warrants.

 

(e) The
Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges
which may be payable in respect of the original issuance or
delivery of the Warrant Certificates or certificates evidencing
Common Stock upon exercise of the Warrants. The Company shall not,
however, be required to pay any tax or governmental charge which
may be payable in respect of any transfer involved in the transfer
or delivery of Warrant Certificates or the issuance or delivery of
certificates for Common Stock in a name other than that of the
Holder of the Warrant Certificate evidencing Warrants surrendered
for exercise or to issue or deliver any certificate for shares of
Common Stock upon the exercise of any Warrants until any such tax
or governmental charge shall have been paid (any such tax or
governmental charge being payable by the Holder of such Warrant
Certificate at the time of surrender) or until it has been
established to the Company’s and the Warrant Agent’s
reasonable satisfaction that no such tax or governmental charge is
due.

 

 

 

 

Section
10. Common Stock Record
Date. Each Person in whose name any certificate for shares
of Common Stock is issued (or to whose broker’s account is
credited shares of Common Stock through the DWAC system) upon the
exercise of Warrants shall for all purposes be deemed to have
become the holder of record for the Common Stock represented
thereby on, and such certificate shall be dated, the date on which
submission of the Exercise Notice was made, provided that the
Warrant Certificate evidencing such Warrant was duly surrendered
(but only if required herein) and payment of the Exercise Price
(and any applicable transfer taxes) was received on or prior to the
Warrant Share Delivery Date; provided, however, that, if the date of
submission of the Exercise Notice is a date upon which the Common
Stock transfer books of the Company are closed, such Person shall
be deemed to have become the record holder of such shares on, and
such certificate shall be dated, the next succeeding day on which
the Common Stock transfer books of the Company are
open.

 

Section
11. Adjustment of Exercise
Price, Number of Shares of Common Stock or Number of the Company
Warrants. The Exercise Price, the number of shares covered
by each Warrant and the number of Warrants outstanding are subject
to adjustment from time to time as provided in Section 3 of the
Series 1 Warrant Certificate or the Series 2 Warrant Certificate,
as applicable. In the event that at any time, as a result of an
adjustment made pursuant to Section 3 of the Series 1 Warrant
Certificate or the Series 2 Warrant Certificate, as applicable, the
Holder of any Warrant thereafter exercised shall become entitled to
receive any shares of capital stock of the Company other than
shares of Common Stock, thereafter the number of such other shares
so receivable upon exercise of any Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the
shares contained in Section 3 of the Warrant Certificate, and the
provisions of Sections 7, 9 and 13 of this Agreement with respect
to the shares of Common Stock shall apply on like terms to any such
other shares. All Warrants originally issued by the Company
subsequent to any adjustment made to the Exercise Price pursuant to
the Series 1 Warrant Certificate or the Series 2 Warrant
Certificate, as applicable, shall evidence the right to purchase,
at the adjusted Exercise Price, the number of shares of Common
Stock purchasable from time to time hereunder upon exercise of the
Warrants, all subject to further adjustment as provided
herein.

 

Section
12. Certification of
Adjusted Exercise Price or Number of Shares of Common Stock.
Whenever the Exercise Price or the number of shares of Common Stock
issuable upon the exercise of each Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable, is adjusted as
provided in Section 11 or 13, the Company shall (a) promptly
prepare a certificate setting forth the Exercise Price of each
Series 1 Warrant Certificate or the Series 2 Warrant Certificate,
as applicable, as so adjusted, and a brief, reasonably detailed
statement of the facts accounting for such adjustment, (b) promptly
file with the Warrant Agent and with each transfer agent for the
Common Stock a copy of such certificate and (c) instruct the
Warrant Agent, at the Company’s expense, to send a brief
summary thereof to each Holder of a Series 1 Warrant Certificate or
the Series 2 Warrant Certificate, as applicable.

 

Section
13. Fractional Shares of
Common Stock.

 

(a) The
Company shall not issue fractions of Warrants or distribute Warrant
Certificates which evidence fractional Warrants. Whenever any
fractional Warrant would otherwise be required to be issued or
distributed, the actual issuance or distribution shall reflect a
rounding of such fraction to the nearest whole Warrant (rounded
down).

 

(b) The
Company shall not issue fractions of shares of Common Stock upon
exercise of Warrants or distribute stock certificates which
evidence fractional shares of Common Stock. Whenever any fraction
of a share of Common Stock would otherwise be required to be issued
or distributed, the actual issuance or distribution in respect
thereof shall be made in accordance with Section 2(d)(v) of the
Warrant Certificate.

 

Section
14. Conditions of the
Warrant Agent’s Obligations. The Warrant Agent accepts
its obligations herein set forth upon the terms and conditions
hereof, including the following to all of which the Company agrees
and to all of which the rights hereunder of the Holders from time
to time of the Warrant shall be subject:

 

(a) 

Compensation and
Indemnification. The Company agrees promptly to pay the Warrant
Agent the compensation detailed on Exhibit 2 hereto for all
services rendered by the Warrant Agent and to reimburse the Warrant
Agent for reasonable out-of-pocket expenses (including reasonable
counsel fees) incurred without gross negligence, bad faith or
willful misconduct by the Warrant Agent in connection with the
services rendered hereunder by the Warrant Agent. The Company also
agrees to indemnify the Warrant Agent for, and to hold it harmless
against, any loss, liability or expense incurred without gross
negligence, bad faith or willful misconduct on the part of the
Warrant Agent, arising out of or in connection with its acting as
Warrant Agent hereunder, including the reasonable costs and
expenses of defending against any claim of such
liability.

 

(b) 

Agent for the
Company. In acting under this Warrant Agreement and in connection
with the Warrant Certificates, the Warrant Agent is acting solely
as agent of the Company and does not assume any obligations or
relationship of agency or trust for or with any of the Holders of
Warrant Certificates or beneficial owners of Warrants.

 

 

 

 

(c) 

Counsel. The
Warrant Agent may consult with counsel satisfactory to it, which
may include counsel for the Company, and the written advice of such
counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in
good faith and in accordance with the advice of such
counsel.

 

(d) 

Documents. The
Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or omitted by it in reliance upon
any Warrant Certificate, notice, direction, consent, certificate,
affidavit, statement or other paper or document reasonably believed
by it to be genuine and to have been presented or signed by the
proper parties.

 

(e) 

Certain
Transactions. The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it
were not the Warrant Agent hereunder, and, to the extent permitted
by applicable law, it or they may engage or be interested in any
financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of
Holders of Warrant Securities or other obligations of the Company
as freely as if it were not the Warrant Agent hereunder. Nothing in
this Warrant Agreement shall be deemed to prevent the Warrant Agent
from acting as trustee under any indenture to which the Company is
a party.

 

(f) 

No Liability for
Interest. Unless otherwise agreed with the Company, the Warrant
Agent shall have no liability for interest on any monies at any
time received by it pursuant to any of the provisions of this
Agreement or of the Warrant Certificates.

 

(g) 

No Liability for
Invalidity. The Warrant Agent shall have no liability with respect
to any invalidity of this Agreement or any of the Warrant
Certificates (except as to the Warrant Agent's countersignature
thereon).

 

(h) 

No Responsibility
for Representations. The Warrant Agent shall not be responsible for
any of the recitals or representations herein or in the Warrant
Certificates (except as to the Warrant Agent's countersignature
thereon), all of which are made solely by the Company.

 

(i) 

No Implied
Obligations. The Warrant Agent shall be obligated to perform only
such duties as are herein and in the Warrants specifically set
forth and no implied duties or obligations shall be read into this
Agreement or the Warrants against the Warrant Agent. The Warrant
Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability,
the payment of which within a reasonable time is not, in its
reasonable opinion, assured to it. The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the
Company of any of the Warrants authenticated by the Warrant Agent
and delivered by it to the Company pursuant to this Agreement or
for the application by the Company of the proceeds of the Warrants.
The Warrant Agent shall have no duty or responsibility in case of
any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrants or in the case of
the receipt of any written demand from a Holder of a Warrant
Certificate with respect to such default, including, without
limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings
at law.

 

Section
15. Purchase or
Consolidation or Change of Name of Warrant Agent. Any Person
into which the Warrant Agent or any successor Warrant Agent may be
merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Warrant
Agent or any successor Warrant Agent shall be party, or any Person
succeeding to the stock transfer or other shareholder services
business of the Warrant Agent or any successor Warrant Agent, shall
be the successor to the Warrant Agent under this Agreement without
the execution or filing of any paper or any further act on the part
of any of the parties hereto, provided that such Person would be
eligible for appointment as a successor Warrant Agent under the
provisions of Section 17. In case at the time such successor
Warrant Agent shall succeed to the agency created by this Agreement
any of the Warrant Certificates shall have been countersigned but
not delivered, any such successor Warrant Agent may adopt the
countersignature of the predecessor Warrant Agent and deliver such
Warrant Certificates so countersigned; and in case at that time any
of the Warrant Certificates shall not have been countersigned, any
successor Warrant Agent may countersign such Warrant Certificates
either in the name of the predecessor Warrant Agent or in the name
of the successor Warrant Agent; and in all such cases such Warrant
Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

In case
at any time the name of the Warrant Agent shall be changed and at
such time any of the Warrant Certificates shall have been
countersigned but not delivered, the Warrant Agent may adopt the
countersignature under its prior name and deliver Warrant
Certificates so countersigned; and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant
Agent may countersign such Warrant Certificates either in its prior
name or in its changed name; and in all such cases such Warrant
Certificates shall have the full force provided in the Warrant
Certificates and in this Agreement.

 

 

 

 

Section
16. Duties of Warrant
Agent. The Warrant Agent undertakes the duties and
obligations imposed by this Agreement upon the following express
terms and conditions (and no implied terms and conditions), by all
of which the Company, by its acceptance hereof, shall be bound and
shall not assume any obligations or relationship of agency or trust
with any of the Holders of the Warrants or any other
Person:

 

(a) The
Warrant Agent may consult with legal counsel selected by it (who
may be legal counsel for the Company), and the opinion and advice
of such counsel shall be full and complete authorization and
protection to the Warrant Agent as to any action taken or omitted
by it in good faith and in accordance with such opinion or
advice.

 

(b)
Whenever in the performance of its duties under this Agreement the
Warrant Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or
suffering any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a
certificate signed by the Chief Executive Officer, Chief Financial
Officer or Vice President of the Company; and such certificate
shall be full authorization and protection to the Warrant Agent and
the Warrant Agent shall incur no liability for or in respect of any
action taken, suffered or omitted to be taken in good faith by it
under the provisions of this Agreement in reliance upon such
certificate. The Warrant Agent shall have no duty to act without
such a certificate as set forth in this Section 16(b).

 

(c)
Subject to the limitation set forth in Section 14, the Warrant
Agent shall be liable hereunder only for its own gross negligence,
bad faith or willful misconduct, of for a breach by it of this
Agreement (each as determined in a final, non-appealable judgment
of a court of competent jurisdiction).

 

(d) The
Warrant Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Agreement or in
the Warrant Certificates (including in the case of any notation in
book entry form to reflect ownership), except its countersignature
thereof, by the Company or be required to verify the same, but all
such statements and recitals are and shall be deemed to have been
made by the Company only.

 

(e) The
Warrant Agent shall not have any liability or be under any
responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by
the Warrant Agent) or in respect of the validity or execution of
any Warrant Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant
Certificate; nor shall it be responsible for the adjustment of the
Exercise Price or the making of any change in the number of shares
of Common Stock required under the provisions of Section 11 or 13
or responsible for the manner, method or amount of any such change
or adjustment or the ascertaining of the existence of facts that
would require any such adjustment or change (except with respect to
the exercise of Warrants evidenced by Warrant Certificates after
actual notice of any adjustment of the Exercise Price); nor shall
it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any shares of
Common Stock to be issued pursuant to this Agreement or any Warrant
Certificate or as to whether any shares of Common Stock will, when
issued, be duly authorized, validly issued, fully paid and
nonassessable.

 

(f)
Each party hereto agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and
assurances as may reasonably be required by the other party hereto
for the carrying out or performing by any party of the provisions
of this Agreement.

 

(g) The
Warrant Agent is hereby authorized to accept instructions with
respect to the performance of its duties hereunder from the Chief
Executive Officer, Chief Financial Officer or Vice President of the
Company, and to apply to such officers for advice or instructions
in connection with its duties, and it shall not be liable and shall
be indemnified and held harmless for any action taken or suffered
to be taken by it in good faith in accordance with instructions of
any such officer, provided Warrant Agent carries out such
instructions without gross negligence, bad faith or willful
misconduct.

 

(h) The
Warrant Agent and any shareholder, director, officer or employee of
the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or become pecuniarily interested in
any transaction in which the Company may be interested, or contract
with or lend money to the Company or otherwise act as fully and
freely as though it were not Warrant Agent under this Agreement.
Nothing herein shall preclude the Warrant Agent from acting in any
other capacity for the Company or for any other
Person.

 

 

 

 

(i) The
Warrant Agent may execute and exercise any of the rights or powers
hereby vested in it or perform any duty hereunder either itself or
by or through its attorney or agents, and the Warrant Agent shall
not be answerable or accountable for any act, default, neglect or
misconduct of any such attorney or agents or for any loss to the
Company resulting from any such act, default, neglect or
misconduct, absent gross negligence or bad faith in the selection
and continued employment thereof (which gross negligence and bad
faith must be determined by a final, non-appealable judgment of a
court of competent jurisdiction).

 

This
Section 16 shall survive the expiration of the Warrants, the
termination of this Agreement and the resignation, replacement or
removal of the Warrant Agent. The costs and expenses incurred in
enforcing this right of indemnification shall be paid by the
Company.

 

Section
17. Change of Warrant
Agent. The Warrant Agent may resign and be discharged from
its duties under this Agreement upon 30 days’ notice in
writing sent to the Company and, in the event that the Warrant
Agent or one of its affiliates is not also the transfer agent for
the Company, to each transfer agent of the Common Stock. In the
event the transfer agency relationship in effect between the
Company and the Warrant Agent terminates, the Warrant Agent will be
deemed to have resigned automatically and be discharged from its
duties under this Agreement as of the effective date of such
termination, and the Company shall be responsible for sending any
required notice thereunder. The Company may remove the Warrant
Agent or any successor Warrant Agent upon 30 days’ notice in
writing, sent to the Warrant Agent or successor Warrant Agent, as
the case may be, and to each transfer agent of the Common Stock,
and to the Holders of the Warrant Certificates. If the Warrant
Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the
Warrant Agent. If the Company shall fail to make such appointment
within a period of 30 days after such removal or after it has been
notified in writing of such resignation or incapacity by the
resigning or incapacitated Warrant Agent or by the Holder of a
Warrant Certificate (who shall, with such notice, submit his
Warrant Certificate for inspection by the Company), then the Holder
of any Warrant Certificate may apply to any court of competent
jurisdiction for the appointment of a new Warrant Agent, provided
that, for purposes of this Agreement, the Company shall be deemed
to be the Warrant Agent until a new warrant agent is appointed. Any
successor Warrant Agent, whether appointed by the Company or by
such a court, shall be a Person, other than a natural person,
organized and doing business under the laws of the United States or
of a state thereof, in good standing, which is authorized under
such laws to exercise stock transfer powers and is subject to
supervision or examination by federal or state authority and which
has at the time of its appointment as Warrant Agent a combined
capital and surplus of at least $50,000,000. After appointment, the
successor Warrant Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally
named as Warrant Agent without further act or deed; but the
predecessor Warrant Agent shall deliver and transfer to the
successor Warrant Agent any property at the time held by it
hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose but such predecessor Warrant Agent
shall not be required to make any additional expenditure (without
prompt reimbursement by the Company) or assume any additional
liability in connection with the foregoing. Not later than the
effective date of any such appointment, the Company shall file
notice thereof in writing with the predecessor Warrant Agent and
each transfer agent of the Common Stock, and mail a notice thereof
in writing to the Holders of the Warrant Certificates. However,
failure to give any notice provided for in this Section 17, or any
defect therein, shall not affect the legality or validity of the
resignation or removal of the Warrant Agent or the appointment of
the successor Warrant Agent, as the case may be.

 

Section
18. Issuance of New
Warrant Certificates. Notwithstanding any of the provisions
of this Agreement or of the Warrants to the contrary, the Company
may, at its option, issue new Warrant Certificates evidencing
Warrants in such form as may be approved by its Board of Directors
to reflect any adjustment or change in the Exercise Price per share
and the number or kind or class of shares of stock or other
securities or property purchasable under the several Warrant
Certificates made in accordance with the provisions of this
Agreement.

 

Section
19. Notices.
Notices or demands authorized by this Agreement to be given or made
(i) by the Warrant Agent or by the Holder of any Warrant
Certificate to or on the Company, (ii) by the Company or by the
Holder of any Warrant Certificate to or on the Warrant Agent or
(iii) by the Company or the Warrant Agent to the Holder of any
Warrant Certificate, shall be deemed given when in writing (a) on
the date delivered, if delivered personally, (b) on the first
Business Day following the deposit thereof with Federal Express or
another recognized overnight courier, if sent by Federal Express or
another recognized overnight courier, (c) on the fourth Business
Day following the mailing thereof with postage prepaid, if mailed
by registered or certified mail (return receipt requested), and (d)
the date of transmission, if such notice or communication is
delivered via facsimile or e-mail attachment at or prior to 5:30
p.m. (New York City time) on a Business Day and (e) the next
Business Day after the date of transmission, if such notice or
communication is delivered via facsimile or e-mail attachment on a
day that is not a Business Day or later than 5:30 p.m. (New York
City time) on any Business Day, in each case to the parties at the
following addresses (or at such other address for a party as shall
be specified by like notice):

 

 

 

 

(a) 

If to the Company,
to:

 

Tenax
Therapeutics, Inc.

ONE
Copley Parkway, Suite 490

Morrisville, NC
27560

Attention: Michael
B. Jebsen

Facsimile: (919)
855-2133

E-mail:
m.jebsen@tenaxthera.com

 

(b) 

If to the Warrant
Agent, to:

 

Direct
Transfer LLC

500
Perimeter Park Drive, Suite D

Morrisville, NC
27560

Attention: Eddie
Tobler

Facsimile:
646-225-7274

E-mail:
transfer@issuerdirect.com

 

For any
notice delivered by email to be deemed given or made, such notice
must be followed by notice sent by overnight courier service to be
delivered on the next Business Day following such email, unless the
recipient of such email has acknowledged via return email receipt
of such email.

 

(c) If
to the Holder of any Warrant Certificate, to the address of such
Holder as shown on the registry books of the Company. Any notice
required to be delivered by the Company to the Holder of any
Warrant may be given by the Warrant Agent on behalf of the Company.
Notwithstanding any other provision of this Agreement, where this
Agreement provides for notice of any event to a Holder of any
Warrant, such notice shall be sufficiently given if given to the
Depositary (or its designee) pursuant to the procedures of the
Depositary or its designee.

 

Section
20. Supplements and
Amendments.

 

(a) The
Company and the Warrant Agent may from time to time supplement or
amend this Agreement without the approval of any Holders of Global
Warrants in order to (i) add to the covenants and agreements of the
Company for the benefit of the Holders of the Global Warrants, (ii)
to surrender any rights or power reserved to or conferred upon the
Company in this Agreement, (iii) to cure any ambiguity, (iv) to correct or
supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, or (v) to make any
other provisions with regard to matters or questions arising
hereunder which the Company and the Warrant Agent may deem
necessary or desirable, provided that such addition,
correction or surrender shall not adversely affect the interests of
the Holders of the Global Warrants or Warrant Certificates in any
material respect.

 

(b) In
addition to the foregoing, with the consent of Holders of Warrants
entitled, upon exercise thereof, to receive not less than a
majority of the shares of Common Stock issuable thereunder, the
Company and the Warrant Agent may modify this Agreement for the
purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or modifying in
any manner the rights of the Holders of the Global Warrants;
provided,
however, that no
modification of the terms (including but not limited to the
adjustments described in Section 11) upon which the Warrants are
exercisable or reducing the percentage required for consent to
modification of this Agreement may be made without the consent of
the Holder of each outstanding warrant certificate affected
thereby; provided
further,
however, that no
amendment hereunder shall affect any terms of any Warrant
Certificate issued in a Warrant Exchange. As a condition precedent
to the Warrant Agent’s execution of any amendment, the
Company shall deliver to the Warrant Agent a certificate from a
duly authorized officer of the Company that states that the
proposed amendment complies with the terms of this Section
20. No supplement or
amendment to this Agreement shall be effective unless duly executed
by the Warrant Agent.

 

Section
21. Successors. All
covenants and provisions of this Agreement by or for the benefit of
the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns
hereunder.

 

Section
22. Benefits of this
Agreement. Nothing in this Agreement shall be construed to
give any Person other than the Company, the Holders of Warrant
Certificates and the Warrant Agent any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be
for the sole and exclusive benefit of the Company, the Warrant
Agent and the Holders of the Warrant Certificates.

 

 

 

 

Section
23. Governing Law;
Jurisdiction. This Agreement and each Warrant Certificate
issued hereunder shall be governed by, and construed in accordance
with, the laws of the State of New York without giving effect to
the conflicts of law principles thereof. Each party to this Agreement hereby
agrees that any action, proceeding or claim against it arising out
of or relating in any way to this Agreement shall be brought and
enforced in the courts of the State of New York or the United
States District Court for the Southern District of New York, and
irrevocably submits to such jurisdiction, which jurisdiction shall
be exclusive. Each party to this Agreement hereby waives any
objection to such exclusive jurisdiction and that such courts
represent an inconvenience forum.

 

Section
24. Counterparts.
This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but
one and the same instrument. A signature to this Agreement
transmitted electronically shall have the same authority, effect
and enforceability as an original signature.

 

Section
25. Captions. The
captions of the sections of this Agreement have been inserted for
convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

 

Section
26. Information.
The Company agrees to promptly provide to the Holders of the
Warrants any information it provides to the holders of the Common
Stock, except to the extent any such information is publicly
available on the EDGAR system (or any successor thereof) of the
Securities and Exchange Commission.

 

Section
27. Severability.
Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall
be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the
remaining provisions of this Agreement; provided, however, that if
such prohibited and invalid provision shall adversely affect the
rights, immunities, liabilities, duties or obligations of the
Warrant Agent, the Warrant Agent shall be entitled to resign
immediately upon written notice to the Company.

 

Section
28. Force Majeure.
Notwithstanding anything to the contrary contained herein, the
Warrant Agent will not be liable for any delays or failures in
performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts,
shortage of supply, breakdowns or malfunctions, interruptions or
malfunction of computer facilities, or loss of data due to power
failures or mechanical difficulties with information storage or
retrieval systems, labor difficulties, war, or civil unrest, it
being understood that the Warrant Agent shall use reasonable best
efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the
circumstances.

 

Section
29. Entire
Agreement. The parties hereto acknowledge that there are no
agreements or understandings, written or oral, between them with
respect to matters contemplated hereunder other than as set forth
herein and the Warrant Certificates, that this Agreement and the
Warrant Certificates contain the entire agreement between them with
respect to the subject matter hereof and thereof.

 

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above
written.

 

 

	

 

	
TENAX
THERAPEUTICS, INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
 

	

 

	

 

	

 

	
Name 

	

 

	

 

	

 

	

Title 

	

 

 

 

	

 

	
DIRECT
TRANSFER LLC

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
 

	

 

	

 

	

 

	
Name: Eddie
Tobler

	

 

	

 

	

 

	

Title:
VP Stock Transfer

	

 

 

 

 

 

 

Annex A: Form of Warrant Certificate Request Notice

 

WARRANT
CERTIFICATE REQUEST NOTICE

 

To:
Direct Transfer LLC as Warrant Agent for Tenax Therapeutics, Inc.
(the “Company”)

 

The
undersigned Holder of [Series 1] [Series 2] Common Stock Purchase
Warrants (“Warrants”) in the form of [Series 1] [Series
2] Global Warrants issued by the Company hereby elects to receive a
Warrant Certificate evidencing the Warrants held by the Holder as
specified below:

 

1. 

Name of Holder of
[Series 1] [Series 2] Warrants in form of Global Warrants:
___________________________

 

2. 

Name of Holder in
[Series 1] [Series 2] Warrant Certificate (if different from name
of Holder of [Series 1] [Series 2] Warrants in form of Global
Warrants): ________________________________

 

3. 

Number of [Series
1] [Series 2] Warrants in name of Holder in form of Global
Warrants: ___________________

 

4. 

Number of [Series
1] [Series 2] Warrants for which [Series 1] [Series 2] Warrant
Certificate shall be issued: __________________

 

5. 

Number of [Series
1] [Series 2] Warrants in name of Holder in form of Global Warrants
after issuance of [Series 1] [Series 2] Warrant Certificate, if
any: ___________

 

6. 

[Series 1] [Series
2] Warrant Certificate shall be delivered to the following
address:

 

______________________________

 

______________________________

 

______________________________

 

______________________________

 

The
undersigned hereby acknowledges and agrees that, in connection with
this Warrant Exchange and the issuance of the Warrant Certificate,
the Holder is deemed to have surrendered the number of Warrants in
form of Global Warrants in the name of the Holder equal to the
number of Warrants evidenced by the Warrant
Certificate.

 

[SIGNATURE OF
HOLDER]

 

Name of
Investing Entity:
____________________________________________________

 

Signature of Authorized Signatory of Investing
Entity: ______________________________

 

Name of
Authorized Signatory:
________________________________________________

 

Title
of Authorized Signatory:
_________________________________________________

 

Date:
_______________________________________________________________

 

 

 

 

Exhibit 1: Form of Series [1]/[2] Warrant Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 2: Schedule of FeesExhibit

Exhibit 10.5

RETIREMENT AGREEMENT
THIS RETIREMENT AGREEMENT (this "Agreement"), is made and entered into as of the 27th day of September, 2018, by and between LOWE'S COMPANIES, INC., a North Carolina corporation (the "Company"), and Marshall A. Croom (the "Executive").
W I T N E S S E T H:
WHEREAS, the Executive is employed as the Chief Financial Officer of the Company; and
WHEREAS, the Company and the Executive have negotiated and agreed upon the terms of this Agreement providing for his retirement as an employee and officer of the Company and for the ongoing obligations of the parties following the Executive's retirement.
NOW, THEREFORE, the parties hereby agree as follows:
1. Continued Service; Retirement. The Executive shall continue to serve as the Chief Financial Officer of the Company until October 5, 2018 or such earlier date as the Company may determine.  The Executive shall remain an employee of the Company until October 5, 2018 (the "Retirement Date"). Upon the Retirement Date, the Executive shall retire and relinquish all positions and responsibilities with the Company and its subsidiaries and affiliates.
2. Obligations of the Company.  
(a) Salary and Benefits. For his service to the Company through the Retirement Date, the Executive shall continue to receive his current annual base salary and participate in all of the Company's incentive compensation and benefit plans and fringe benefit and perquisite programs and shall receive any and all payments and benefits earned thereunder up to and through the Retirement Date. Nothing in this Agreement shall limit Executive’s participation in the Lowe’s Management Bonus Plan (the “Bonus Plan”).  Should Executive qualify for a bonus payment under the terms of the Bonus Plan, such payment (if any) will be made in accordance with the provisions of the Bonus Plan.

(b) Unvested Equity Compensation Awards. The Executive's retirement in accordance with the terms and provisions of this Agreement shall constitute retirement with "the approval of the Board" for purposes of the grant agreements evidencing all unvested nonqualified stock option, restricted stock and performance share unit awards held by the Executive.
(c) Indemnification; Liability Insurance.  The Company agrees that if the Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact the Executive was a director, officer or employee of the Company or was serving at the request of the Company as director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, the Executive shall be indemnified and held harmless by the Company to the fullest extent permitted or authorized by the Company’s articles of incorporation and bylaws and such indemnification shall continue to the Executive even though the Executive has ceased to be a director, member, employee or agent of the Company or other entity and shall inure to the benefit of the Executive’s heirs, executors and administrators.  The Company shall advance to the Executive all reasonable costs and expenses incurred by the Executive in connection with a Proceeding within twenty (20) days after receipt by the Company of a written request for such advance.  Such request, however, must include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined the Executive is not entitled to be indemnified against such costs and expenses.  The Company further agrees to continue and maintain a directors’ and officers’ liability insurance policy covering the Executive to the same extent as the Company’s directors and officers are covered until such time as suits against the Executive are no longer permitted by law.
     3. Obligations of the Executive.
(a) Release. Not earlier than the Retirement Date, and not later than twenty-one (21) days after the Retirement Date (the "Restricted Period"), the Executive will execute and deliver to the Company the general release (the "Release") in the form attached hereto as Exhibit A. The Executive shall have a 

period of seven (7) days after executing the Release to revoke the Release by providing written notice of revocation to the Company.
(b) Restrictive Covenants. For a period of twenty-four (24) months following the Retirement Date, the Executive will not:
(i) directly or indirectly provide or perform any services for a "Competing Enterprise" (as defined below), whether as an employee, consultant, agent, contractor, officer, director or any other capacity; or
(ii) interfere directly or indirectly with any of the Company's relationships with its existing or potential employees, suppliers, customers or developers.
For purposes of this Agreement, the term "Competing Enterprise" means any business: (A) with total annual sales of at least five hundred million dollars ($500 million USD) with retail locations or distribution facilities in any state or territory of the United States; and (B) that provides goods or services to customers in the United States, through retail or electronic means (internet, mobile application, etc.), that are the same as, substantially similar to, or otherwise in competition with the Company's products or services, and such term shall include, but not be limited to, the following entities: The Home Depot, Inc.; Sears Holdings, Inc.; Costco Wholesale Corporation; Wal-Mart Stores, Inc.; Menard, Inc.; Amazon.com, Inc.; Best Buy, Inc.; Ace Hardware Corp.; Tractor Supply Co.; Lumber Liquidators Holdings, Inc.; Wayfair, LLC; Jet.com, Inc.; and True Value Company.
     (c) Confidential Information. The Executive shall not without limitation in time, disclose to others or use, whether directly or indirectly, any Confidential Information (as hereinafter defined). For purposes of this Agreement, the term "Confidential Information" shall mean information about the Company, its subsidiaries and affiliates or any of their respective clients or customers that was learned by the Executive in the course of his employment by the Company, including (without limitation) any proprietary knowledge, trade secrets, data, formulae, information and client and customer lists and all papers, resumes, and records (including computer records) of the documents containing such Confidential 

Information, but excludes information (i) which is in the public domain through no unauthorized act or omission of Executive; or (ii) which becomes available to the Executive on a non-confidential basis from a source other than the Company without breach of such source's confidentiality or non-disclosure obligations to the Company. Pursuant to the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1833(b)), the Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. 
If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the trade secret to the Executive's attorney and use the trade secret information in the court proceeding, if the Executive (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Notwithstanding any provision in any agreement between the Executive and the Company, the Executive may disclose any confidential or non-public information (i) to report possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the United States Congress and any agency Inspector General, or make other disclosures that are protected under the whistleblower provisions of federal law or regulation or (ii) as required by law or order by a court; provided, however, the Executive agrees to notify the Company in advance if the Executive is required to provide information or testimony in connection with any action brought by a nongovernmental or non-regulatory person or entity.
(d) Continuing Cooperation.  Executive agrees to provide continuing cooperation to the Company in the defense of any asserted or unasserted claims, charges or lawsuits pending against it.  

Such cooperation shall include, but not be limited to, providing the Company with information, affidavits, deposition testimony or testimony as a witness in any forum. The Executive shall be reimbursed for any reasonable, third-party out of pocket expenses incurred at the Company's request in connection with providing such continuing cooperation.
(e) Enforcement. The Company and the Executive agree that, in the event of the breach or a threatened breach by Executive of any of the provisions of this Section, the Company would suffer irreparable harm and money damages alone would be an inadequate remedy therefor, and in addition and supplementary to other rights and remedies existing in its favor, the Company shall be entitled to specific performance or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions of this Section hereof. In addition, in the event of an alleged breach or violation by Executive of this Section, (i) the Restricted Period shall be tolled until such breach or violation has been duly cured, and (ii) the Company shall be entitled to recover from the Executive all profit, remuneration or other consideration the Executive gains from breaching the covenant and damages that the Company suffers as a result of the breach.
4. Tax Withholding and Reporting. The Company shall be entitled to withhold from the benefits and payments described herein all income and employment taxes required to be withheld by applicable law.
5. Governing Law; Venue. The interpretation and enforcement of this Agreement shall be governed by the internal laws and judicial decisions of the State of North Carolina, without regard to any principles of conflicts of laws.  Each of the Parties to this Agreement consents to submit to the personal jurisdiction and venue of the North Carolina Superior Court in Iredell County, North Carolina in any action or proceeding arising out of or relating to this Agreement and specifically waives any right to attempt to deny or defeat personal jurisdiction of the North Carolina Superior Court by motion or request for leave from any such court.  Each of the Parties further waives any right to seek change of venue due to inconvenient forum or other similar justification and will pay to the other Parties the costs associated 

with responding to or otherwise opposing any motion or request for such relief. 
6. Entire Agreement. This Agreement and the Release constitute the entire agreement between the parties pertaining to the subject matter contained herein and in the Release and supersede any and all prior and contemporaneous agreements, representations, promises, inducements and understandings of the parties. This written Agreement cannot be varied, contradicted or supplemented by evidence of any prior or contemporaneous oral or written agreements. Moreover, this written Agreement may not be later modified except by a further writing signed by a duly authorized officer of the Company and the Executive.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

	
						
	LOWE’S COMPANIES, INC.
	 
	Marshall A. Croom
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Ross. W. McCanless

	 
	/s/ Marshall A. Croom
	 

	 
	 
	 
	 
	 
	 

	Name:
	Ross W. McCanless
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Title:
	EVP, General Counsel and Corporate Secretary
	 
	 

	 
	 
	 
	 
	 
	 

	Date:
	9/27/2018
	 
	Date:
	9/20/2018
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

Exhibit A to Retirement Agreement

RELEASE AND SEPARATION AGREEMENT
THIS RELEASE AND SEPARATION AGREEMENT (“Agreement”), is made and entered into this the 16th  day of October, 2018 by and between LOWE’S COMPANIES, INC., a North Carolina corporation, its parents, subsidiaries and affiliates (hereinafter referred to as “Lowe’s” or “the Company”) and Marshall A. Croom (“Employee”).
NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties do hereby agree, covenant and stipulate as follows:
1.Termination of Employment.  Employee agrees that Employee’s employment with Lowe’s was terminated effective October 5, 2018 by way of Employee’s voluntary resignation (“Termination Date”). 

2.Retirement Treatment for Certain Equity.   As consideration for Employee’s release of Lowe’s, the Company has permitted Employee continued post-termination vesting of certain equity awards granted Employee during employment in accordance with the terms of that certain Retirement Agreement between Employee and Lowe’s, dated September 27, 2018 (the “Retirement Agreement”). Employee acknowledges that absent Employee’s release, the Company would not be required to consider Employee’s request and that Employee would forfeit the rights to certain equity awards under the terms of the respective grant agreements associated with each grant award. 

3.Right to Revoke Agreement.  Following Employee’s execution and delivery of this Agreement to Lowe’s, Employee shall have a 7-day period in which to revoke the release of claims under the Age Discrimination in Employment Act (“ADEA”), as provided in the Older Workers Benefit Protection Act (OWBPA).  During this 7-day period, Employee shall exercise this right by delivering written notice of Employee’s revocation.  Lowe’s shall not have the right to revoke this Agreement during the 7-day period.  

4.Confidentiality.  Employee acknowledges that, during Employee’s employment with Lowe’s, Employee learned information that is confidential to Lowe’s (“Confidential Information”).  Such Confidential Information includes, but is not limited to: trade secrets; plans for opening, closing, expanding, or relocating stores; distribution, replenishment, logistics and information technology strategies and information; purchasing and product information; advertising and promotional programs and plans; financial or statistical data; sales and account information; customer information; sales and marketing plans and strategies; pricing strategies and reports; product cost information; personnel information; and any other information of a similar nature that is not known or made available to the public or to Lowe’s competitors, which, if misused or disclosed, could adversely affect the business of Lowe’s.  
Employee agrees not to disclose any Confidential Information to any person (including any Lowe’s employee who does not need to know such Confidential Information), agency, institution, company or other entity without first obtaining the written consent of Lowe’s.  Employee acknowledges and agrees that the duties and obligations under this Section will continue for as long as such Confidential Information remains confidential to Lowe’s. Employee further acknowledges and agrees that any breach of this Section would be a material breach of this Agreement.

Employee agrees that the terms and conditions of this Agreement shall be strictly confidential and shall not be disclosed to any person or persons at any time, unless a party is legally compelled to do so.  Excepted from this confidentiality provision are the attorneys, accountants, and/or tax advisors for Employee and those required by law to be given such information, and then only such terms as may be necessary.  Employee agrees that actual damages will be sustained by Lowe’s by reason of a breach of this paragraph providing for confidentiality of this Agreement, and that injunctive relief is appropriate in the event of a breach of this provision of the Agreement.

If Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, employee may disclose the trade secret to Employee’s attorney and use the trade secret information in the court proceeding, if Employee (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Notwithstanding any provision in any agreement between Employee and the Company, Employee may disclose any confidential or non-public information (i) to report possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the United States Congress and any agency Inspector General, or make other disclosures that are protected under the whistleblower provisions of federal law or regulation or (ii) as required by law or order by a court; provided, however, Employee agrees to notify the Company in advance if Employee is required to provide information or testimony in connection with any action brought by a nongovernmental or non-regulatory person or entity.

5.General Release.  Employee covenants and agrees that Employee hereby irrevocably and unconditionally releases, acquits and forever discharges Lowe’s, as well as each of Lowe’s officers, directors, employees, parents, subsidiaries, or related entities and agents (Lowe’s and Lowe’s officers, directors, employees, parents, subsidiaries, related entities, and agents being collectively referred to herein as the “Releasees”), or any of them, from any and all charges, complaints, claims, liabilities, obligations, promises, demands, costs, losses, debts, and expenses (including attorney fees and costs actually incurred), of any nature whatsoever, in law or equity, arising out of Employee’s employment with Lowe’s or the termination of Employee’s employment with Lowe’s (other than any claim arising out of the breach by Lowe’s of the terms of this Agreement), including, without limitation, all claims asserted or that could be asserted by Employee against Lowe’s in any litigation arising in federal, state, or municipal court asserting any claim arising from any alleged violation by the Releasees of any federal, state, or local statutes, ordinances, or common law, including, but not limited to, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, the Rehabilitation Act of 1973, the Civil Rights Act of 1991, the Family and Medical Leave Act, the Civil Rights Act of 1866, the North Carolina Retaliatory Employment Discrimination Act, the North Carolina Persons with Disabilities Protection Act, and any other employment discrimination laws, as well as any other claims based on constitutional, statutory, common law, or regulatory grounds, as well as any claims based on theories of retaliation, wrongful or constructive discharge, breach of contract or implied covenant, fraud, misrepresentation, intentional and/or negligent infliction of emotional distress, or defamation (“Claim” or “Claims”), which Employee now has, owns, or holds, or claims to have, own, or hold, or which Employee had, owned, or held, or claimed to have, own or hold at any time before execution of this Agreement, against any or all of the Releasees.  Notwithstanding the foregoing, however, Employee specifically does not release any right to or claim for payment of any and all vested and nonforfeitable benefits, payments, or stock rights, including all rights, if any, under the Lowe’s 401(k) Plan, Lowe’s Companies Benefit Restoration Plan, Lowe’s Companies Cash Deferral Plan, Lowe’s Companies 

Employee Stock Ownership Plan or Lowe’s Companies Employee Stock Purchase Plan – Stock Options for Everyone.  Employee specifically does not release any rights under the Retirement Agreement. 

6.Release Of Claims Under The Age Discrimination In Employment Act.  THIS AGREEMENT SPECIFICALLY WAIVES ALL OF EMPLOYEE’S RIGHTS AND CLAIMS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967 (29 U.S.C. §§ 621, et seq.), AS AMENDED, AND THE OLDER WORKERS BENEFIT PROTECTION ACT, AS AMENDED.  In connection with this waiver, Employee acknowledges and agrees to the following:

a.Employee is not waiving any rights or claims under the Age Discrimination in Employment Act of 1967, as amended, that may arise after this Agreement is executed, or any rights or claims to test the knowing and voluntary nature of this Agreement under the Older Workers Benefit Protection Act, as amended.

b.Employee acknowledges that Employee has expressly waived ADEA rights or Claims pursuant to this Agreement in exchange for consideration, the value of which exceeds payment or remuneration to which Employee already was entitled.  

c.Employee acknowledges that Employee has been advised by Lowe’s to consult with an attorney of Employee’s choosing concerning this release prior to executing it, and Employee has had ample opportunity to do so.

d.Employee understands that Employee is being provided with a period of 21 days to consider the terms of this release. In the event Employee decides to execute this Agreement in fewer than 21 days (but nevertheless on or after the Termination Date), Employee has done so with the express understanding that Employee has been given and declined the opportunity to consider this release for 21 days.  Employee acknowledges that Employee’s decision to sign the Agreement in fewer than 21 days was not induced by the Company through fraud, misrepresentation, or a threat to withdraw or alter the offer prior to the expiration of the 21-day time period.

e.Employee further understands that Employee may revoke Employee’s release of claims under the ADEA at any time during the 7 days following the date of execution of this Agreement.  Notice shall be provided to the General Counsel of Lowe’s Companies, Inc. by facsimile and certified mail, return receipt requested, to Lowe’s Companies, Inc., 1000 Lowe’s Boulevard, Mooresville, NC 28117, facsimile number 704.757.0661.  Employee has read carefully and fully understands all of the provisions and effects of this Agreement, and Employee knowingly and voluntarily chooses to enter into all of the terms set forth in this Agreement.

f.Employee knowingly and voluntarily intends to be legally bound by all of the terms set forth in this Agreement.

g.Employee has relied solely and completely upon Employee’s own judgment and the advice of Employee’s counsel in entering into this Agreement.

h.With the express exceptions set forth herein, Employee is, through this Agreement, releasing the Company from any and all Claims Employee may have against the Company relating to Employee’s employment and the termination thereof, including claims arising under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act.  Employee’s initials 

below, following this Paragraph of the Agreement, evidence Employee’s understanding and voluntary waiver of all Claims against the Company, including, but not limited to, those pursuant to the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act.        

7.Covenant Not to Sue.

a.Employee must not file or be a class representative in any claim, lawsuit or complaint against any Releasee based on the claims released in this agreement. Further, Employee must not authorize or assist any other party to institute a claim, lawsuit, or complaint against any Releasee.
b.This Agreement does not interfere with Employee’s right to file an action to endorce the Retirement Agreement or to file a charge with or participate in an investigation or proceeding conducted by, or provide information to the Equal Employment Opportunity Commission (“EEOC”) or the Securities and Exchange Commission (“SEC”) or to file a complaint under the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f), challenging the validity of this agreement.
c.Employee represents and warrants that Employee has not initiated or filed any action, complaint, or claim against the Releasees with any federal, state or local court.
d.The consideration provided to Employee under this agreement is the sole relief Employee is entitled to for the claims released and waived in this agreement. Thus, Employee will not be entitled to recover, and must waive all monetary benefits or recovery, against the Releasees in connection with any EEOC, state, or local agency charge or a representative or class action lawsuit regardless of who brings the charge or lawsuit, except that Employee does not waive any right Employee may have to an award paid by the SEC.
e.Employee further agrees that if at any time hereafter Employee shall file or join in any suit or assert any claim against the Releasees relating to any matter released—for any purpose other than those listed in 7(b) above—then a) Employee agrees that Employee will not attack and shall be estopped from attacking the legal validity or sufficiency of this agreement; and b) Employee shall reimburse Lowe’s for its reasonable attorneys’ fees and costs incurred in connection with the defense of such suit or claim. If such an action, complaint, claim, or charge has been initiated or filed by Employee or on Employee’s behalf, Employee will use Employee’s best efforts to cause it immediately to be withdrawn and dismissed with prejudice.
8.No Assignment Of Rights Under Agreement; Indemnification.  Employee represents and warrants that no portion of any of the matters released by this Agreement and no portion of the consideration or any recovery or settlement to which Employee might be entitled has been assigned or transferred to any other person, firm, or corporation not a Party to this Agreement in any manner, including by way of subrogation or operation of law or otherwise.  If any claim, action, demand, or suit should be made or instituted against the Releasees, or any of them, because of any such purported assignment, subrogation, or transfer prior to the date hereof, Employee agrees to indemnify and hold harmless the Releasees, and each of them, against such claim, action, demand, or suit, including damages, expenses of investigation, attorney fees, and costs.  
9.No Improper Actions or Omissions. Employee represents and warrants that Employee has no knowledge of any improper or illegal actions, misstatements or omissions by the Company, is not aware of any facts or evidence that could give rise to such a claim, nor does Employee know of any basis on which any third party or governmental entity could assert such a claim. The previous sentence expressly 

includes, but is not limited to, any and all conduct that potentially could give rise to claims or liability under the Securities Exchange Act of 1934 (“Exchange Act”), Sarbanes-Oxley Act of 2002 or the Dodd-Frank Wall Street Reform and Consumer Protection Act. Employee further represents and warrants that Employee has fulfilled Employee’s duties to the Company to the best of Employee’s abilities and in a reasonable and prudent manner, and that Employee has not knowingly engaged, directly or indirectly, in any actions or omissions that could be perceived as improper or unlawful, nor has Employee failed to report any such actions or omissions to the Company.
Employee affirms that Employee has no information concerning any conduct involving the Company that Employee has any reason to believe may be unlawful or that involves any false claims to the United States. Employee promises to cooperate fully in any investigation the Company undertakes into matters that occurred during Employee’s employment with the Company. Employee understands that nothing in this Agreement prevents Employee from cooperating with any government investigation, making a truthful statement or complaint to law enforcement or a government agency, testifying under oath to law enforcement or a government agency, or from complying with a properly-served and lawfully issued subpoena or similar order issued by a government agency or court of competent jurisdiction. In addition, to the fullest extent permitted by law, Employee hereby irrevocably assigns to the U.S. government any right Employee might have to any proceeds or awards in connection with any false claims proceedings against the Company or any affiliated entity arising under the False Claims Act, any state false claims statute, or any other federal, state or municipal law, statute or regulation providing for recovery to whistleblowers, except that Employee does not assign any award paid by the SEC to which Employee may be entitled.
10.Consultation with Attorney.  Employee acknowledges and agrees that Employee has been afforded sufficient time to carefully consider the terms of this Agreement and to undertake consultation with an attorney prior to entering into this Agreement.  
11.Injunctive Relief.  Lowe’s and Employee agree that the provisions herein are important to and of material consideration to Lowe’s and that Lowe’s considers that monetary damages alone are an inadequate remedy to Lowe’s for any breach of the provisions hereof. Employee further stipulates that, upon any material breach by Employee of the provisions herein Lowe’s shall be entitled to injunctive relief against Employee from a court having personal jurisdiction of Employee.  This section shall not be deemed to limit the legal and equitable remedies available to Lowe's or to limit the nature and extent of any claim by Lowe’s for damages caused by Employee for breach of this Agreement.
12.Non-Compete.  Lowe’s and its affiliated entities comprise an international, omni-channel provider of goods and services for building, expanding, enhancing, customizing, maintaining, innovating, connecting, and outfitting its customers’ living spaces (“Home Environment Business”).  Lowe’s Home Environment Business requires a complex sourcing and supply network, multi-channel distribution and delivery systems, innovative information technology resources, and a robust infrastructure support organization.  Employee recognizes and acknowledges that Lowe’s operates over 1,800 retail locations in all 50 states and the District of Columbia, and has significant internet-based sales to customers spread across the United States.  Furthermore, Employee acknowledges that the Company has a legitimate and reasonable business interest in maintaining its competitive position in a dynamic industry and that restricting employee for a reasonable period from performing work for, or providing services to an enterprise which engages in business activities which are in competition with Lowe’s and would likely cause damage to Lowe’s business would not unreasonably restrict Employee from engaging in work or business activities.  Employee further acknowledges that, in Employee’s position with Lowe’s, Employee 

was provided access to or helped develop business information proprietary to Lowe’s and that Employee would inevitably disclose or otherwise utilize such information if Employee were to work for, or provide services to a Competing Enterprise as defined below during the non-competition period.
a.Non-Competition Period.  Employee agrees that for the later of (1) a period of twenty-four (24) months following the Termination Date or (2) a period from the termination date through the last date of vesting for any non-vested equity granted Employee under the Lowe’s Long Term Incentive Plan or similar plan (the “Non-Competition Period”), Employee will not directly or indirectly provide or perform services for a Competing Enterprise, as defined below, whether as an employee, consultant, agent, contractor, officer, director or any other capacity.  Employee acknowledges that the Non-Competition Period is reasonable in duration under the terms herein.
b.Competing Enterprise.  Employee acknowledges and agrees that a “Competing Enterprise” is defined as any business: (i) with total annual sales of at least five hundred million dollars ($500 million USD) with retail locations or distribution facilities in any US State or territory; and (ii) that provides goods and/or services to customers in the United States, through retail or electronic means (internet, mobile application, etc.), that are the same as, substantially similar to, or otherwise in competition with Lowe’s products or services.  The term “Competing Business” shall specifically include, but not be limited to, the following entities:  The Home Depot, Inc.; Sears Holdings, Inc.; Costco Wholesale Corporation; Wal-Mart Stores, Inc.; Menard, Inc.; Amazon.com, Inc.; Best Buy, Inc.; Ace Hardware Corp.; Tractor Supply Co.; Lumber Liquidators Holdings, Inc.; Wayfair, LLC; Jet.com, Inc.; and True Value Company.
c.Access to Proprietary Information.  Employee acknowledges that in Employee’s position with Lowe’s, Employee was exposed to, and played a crucial role in, the development and implementation of the Company’s strategic business operations, financial performance, marketing strategy, and/or plans for existing and future products and services, and that the Company’s business success and competitive position in the industry are dependent on its exclusive possession of secret, proprietary or confidential information, knowledge or data, and its relationships with customers and suppliers.  As such, Employee agrees that the restrictions in this Agreement are reasonable as to the time, territory, and line of business, and are reasonably necessary to protect the Company’s legitimate business interests, protect customer goodwill, and prevent severe and irreparable harm to the Company.
d.Enforcement.  Employee agrees that in the event of a breach or threatened breach of this Non-Compete section, Employee hereby consents and agrees that (i) Lowe’s shall be entitled to, in addition to other available remedies, equitable relief (by injunction, restraining order, or other similar remedy) against such breach or threatened breach from a court of competent jurisdiction without the necessity of showing actual damages and without the necessity of posting a bond or other security, (ii) Lowe’s shall be entitled to recover from Employee all profit, remuneration or other consideration Employee gains from the breach or threatened breach of the covenant and damages that Lowe’s suffers as a result of the breach or threatened breach and (iii) the Non-Competition Period shall be tolled until such breach has been duly cured.  In the event of a breach of the Non-Compete provision or any other restrictive covenant herein, and in addition to any other legal or equitable relief that Lowe’s may be entitled to, Employee agrees that he will be required to immediately forfeit any and all outstanding equity awards and that Lowe’s will be entitled to monetary damages as determined by the Court.  Employee agrees that in the event a court of competent jurisdiction determines the Non-Competition Period or activities prohibited herein are more restrictive than necessary to protect Lowe’s legitimate business interests, such court may reduce the scope of the restriction, or sever and remove the unenforceable provision, to the extent necessary 

to make the restriction enforceable.
13.Non-Interference/No Solicitation.  Employee agrees that for a period of 2 years following the Termination Date or the duration of the Non-Competition Period (whichever is longer), Employee will not interfere directly or indirectly with any of Lowe’s relationships with its existing or potential employees, suppliers, customers, or developers.  The Company agrees that it will not intentionally impair Employee’s present or future employment relationships provided such relationships are not in violation of the provisions herein. 

14.Further Continuing Duties.    Employee shall fully cooperate with the Company in its defense or prosecution of litigation, administrative charges or hearings and related matters with respect to issues arising during Employee’s tenure with the Company, as may be required by the Company in connection with any formal or informal state, local, and/or federal administrative, governmental or judicial matter or investigation by or of the Company.  Employee agrees that the consideration provided under the Retirement Agreement shall compensate Employee for Employee’s time spent in connection with these matters, and Employee shall be entitled only to reasonable costs (for meals, travel, lodging etc.) incurred in connection therewith.

15.Non-Disparagement.  Employee agrees to refrain from making negative, derogatory, and/or defamatory statements, whether verbal or written, about the Releasees, and from being a party to any such statements.  This includes criticism of the Company or its management philosophies, direction, or values. 

16.No Encouragement of Claims Against The Company. Except as may be required by court order or subpoena, Employee represents and warrants that Employee will not volunteer testimony or cooperation to any other individual or entity with respect to actual or potential claims against the Releasees, and Employee will not, directly or indirectly, encourage any individual or entity to assert any claim against the Releasees. Employee agrees that Employee will notify counsel for Lowe’s in writing within 5 calendar days of being contacted by any individual or entity seeking Employee’s cooperation in this regard. This provision shall not preclude Employee from testifying truthfully pursuant to a proper subpoena issued by a court of competent jurisdiction, nor will Employee be precluded from cooperating with federal, state, or local agencies that are investigating any claims of discrimination, harassment, or other unlawful conduct.  Furthermore, this provision does not restrict or qualify the Employee’s ability to provide information to or cooperate with the SEC regarding actual or potential claims against Releasees, nor does this provision obligate Employee to notify Lowe’s in the event the SEC contacts Employee seeking Employee’s cooperation.

17.Return of Company Property.  Employee represents and warrants that Employee has returned or will return within 7 days of Employee’s execution of this Agreement, any and all property, information, data or documents belonging to the Company, including any copies or summaries currently in Employee’s possession, custody, or control, regardless of location.  Employee acknowledges that Employee has not transferred or otherwise released custody or control of any property, data or documents belonging to the Company except as expressly authorized.  Property shall also include, but not be limited to, cell phones, laptop computers, credit cards, passcards, keys, and any other items that belong to the Company.

18.Default and Notice.  In the event Lowe’s fails to make any payment due under the provisions of this Agreement, Employee shall give written notice of such failure to Lowe’s, and Lowe’s shall have 

a period of 20 business days from receipt of such notice in which to cure such failure.  For purposes of this Agreement, unless otherwise specified in this Agreement, all notices to Lowe’s shall be in writing and either hand delivered or sent by Certified Mail, Return Receipt Requested to Lowe’s General Counsel at the following address:

General Counsel
Lowe’s Companies, Inc. 
1000 Lowes Boulevard
Mooresville, NC  28117

19.Waiver of Breach. Any waiver by either party of a breach of this Agreement will not constitute a waiver of any further breach, whether of a similar or dissimilar nature.

20.Electronic Records.  You agree that Lowe’s, in its sole discretion, may convert this Agreement into an electronic record and that in the event of any dispute involving this Agreement, a copy of such electronic record may serve as the exclusive original. The parties consent to and recognize the validity, enforceability and admissibility of any electronic record or any electronic signature created in connection with this Agreement or the relationship contemplated by it. An electronic record of this Agreement and any electronic signature made in connection with this Agreement shall be deemed to have been signed by hand by the relevant parties.

21.Compliance with Section 409A.

a.For purposes of any payments to be made or benefits to be provided under this Agreement upon termination of employment to which Section 409A of the Internal Revenue Code (“Section 409A”) applies, the Termination Date shall have the same meaning as “separation from service” under Section 409A (and any regulations thereunder).

b.To the extent applicable, this Agreement is intended to comply with the distribution and other requirements under Section 409A of the Internal Revenue Code.  For any payments or reimbursements to be made (or in-kind benefits to be provided) under this Agreement that are subject to Section 409A, the Agreement shall, to the maximum extent possible, be interpreted and applied consistent with Section 409A (and any regulations thereunder).

22.Whole Agreement, Amendment and Severability.  This Agreement, any Addendum referenced herein and the Retirement Agreement, contain the whole and entire understanding and agreement between the parties hereto.  There are no other understandings, promises, covenants, or agreements between the parties regarding the subject matter of this Agreement, except as specifically set forth herein and in the Retirement Agreement.  This Agreement may not be amended, modified, or altered in any fashion except in writing executed by the parties hereto with the same formality as with which this Agreement is executed.  Employee understands and agrees that each clause of this Agreement is a separate and independent clause, and that, if any clause should be found unenforceable, such clause should be and is hereby severed from this Agreement and will not affect the enforceability of any of the other clauses herein. 

23.Governing Law; Venue. The interpretation and enforcement of this Agreement shall be governed by the internal laws and judicial decisions of the State of North Carolina, without regard to any principles of conflicts of laws.
        

Each of the Parties to this Agreement consents to submit to the personal jurisdiction and venue of the North Carolina Superior Court in Iredell County, North Carolina in any action or proceeding arising out of or relating to this Agreement and specifically waives any right to attempt to deny or defeat personal jurisdiction of the North Carolina Superior Court by motion or request for leave from any such court.  Each of the Parties further waives any right to seek change of venue due to inconvenient forum or other similar justification and will pay to the other Parties the costs associated with responding to or otherwise opposing any motion or request for such relief.  

Signature Page Follows
 

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written.
	
						
	LOWE’S COMPANIES, INC.
	 
	Marshall A. Croom
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Ross. W. McCanless
	 
	By:
	/s/ Marshall A. Croom
	 

	 
	 
	 
	 
	 
	 

	Name:
	Ross W. McCanless
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Title:
	EVP, General Counsel and Corporate Secretary
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Date:
	October 26, 2018
	 
	Date:
	October 10, 2018

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