Document:

Exhibit 10.2

 

SECURITIES PURCHASE AGREEMENT

 

  

This SECURITIES PURCHASE AGREEMENT (the
“Agreement”), dated as of March 13, 2015, by and among Oculus Innovative Sciences, Inc., a Delaware corporation,
with its principal place of business at 1129 N. McDowell Blvd., Petaluma, CA 94954 (the “Seller”), the investors
listed on Schedule A hereto respective assignee(s) (collectively, the “Buyers”) and, solely with respect to
Section 4 and 10 of this Agreement, Ruthigen, Inc., a Delaware corporation (the “Company”) and Dawson
James Securities, Inc. (the “Underwriter”).

 

WHEREAS, the Seller owns 350,000 unregistered
issued and outstanding shares of common stock, $0.0001 par value per share (the “Shares”) of the Company; and

 

WHEREAS, subject to the terms and conditions
set forth herein, the Seller desires to sell the Shares to the Buyers and Buyers desire to acquire the same subject to the terms
in this Agreement;

 

NOW, THEREFORE, for and in consideration
of the premises, the mutual agreements and covenants herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.                 
Definitions. In addition to the terms defined elsewhere in this Agreement,
for the purposes of this Agreement, the following terms have the meanings set forth below:

 

“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
banking institutions in the State of California are authorized or required by law or other governmental action to close.

 

“Closing”
shall have the meaning ascribed to such term in Section 5(a) of this Agreement.

 

“Closing Date”
shall have the meaning ascribed to such term in Section 5(a) of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Event” means
any merger or consolidation of the Company with or into another company, corporation or similar entity or the merger or consolidation
of another company, corporation, or assets of a corporation or company into the Company, or in the case of any sale or conveyance
to another corporation or the assets or other property of the Company.

 

“Event Closing”
means the closing of an Event for which the Company enters into an Event Definitive Agreement prior to the Expiration Date.

 

“Expiration Date”
means March 13, 2015, as may be extended one or more times for one or more days as long as the total periods of extensions do not
exceed a period of up to sixty (60) calendar days by Seller at its sole discretion by delivering written notice to Buyers, which
may be via e-mail, prior to the Expiration Date.

 

“Event Definitive Agreement”
means the entry by the Company into a definitive agreement for an Event. For purposes of clarity, such definitive agreement could
be subject to or pending customary closing conditions, regulatory approvals and/or shareholder approval and still be considered
definitive for purposes of this Agreement.

 

    	 

    	 

    

  

“Person” means
an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares”
shall have the meaning ascribed to such term in the preamble to this Agreement.

 

“Transfer Agent”
means the Company’s transfer agent, and any successor transfer agent of the Company.

 

		2.	sELLER’S
STANDSTILL AND BUYERS’ PURCHASE.

 

(a) Seller agrees not
to market, offer or sell the Shares to any Person from the date of this Agreement until the Expiration Date (such period of time,
the “Standstill Period”) other than the Buyers.

 

(b) Buyers irrevocably
agree to purchase all of the Shares upon the Closing Date (as defined below) (such obligation, the “Purchase”),
subject to the further terms in this Agreement. Seller shall sell to Buyers, and Buyers shall purchase from the Seller on the Closing
Date (as defined below), the Shares.

 

3. Purchase
Price. The purchase price for the Shares to be purchased by Buyers at the Closing (the “Purchase Price”)
shall be $2.75 per share, or an aggregate of $962,500 for all of the Shares.

 

4. CONSENT
TO SALE of THE Shares PURSUANT TO SEPARATION AGREEMENT. Pursuant to Section 2.1 of that certain Amended Separation Agreement
between the Seller and the Company, dated January 31, 2014, the consent of the Underwriter and the board of directors of the Company
is required for the sale of the Shares in accordance with the terms of this Agreement. Now, therefore, subject to and contingent
upon the occurrence of an Event Closing, the Underwriter and the Company hereby consent to the Purchase (the “Consent”),
which Consent shall become effective only upon the occurrence of an Event Closing, if at all, subject to the other conditions set
forth in this Section 4. The Company and Underwriter further warrant that all necessary corporate actions and approvals by their
respective boards of directors have been obtained in order to provide the Consent. The Consent provided hereby shall terminate
upon the (i) the Expiration Date, if the Company has not entered into an Event Definitive Agreement by such date; or (ii) the termination
date of the Event Definitive Agreement, if the Company has entered into an Event Definitive Agreement by the Expiration Date.

 

		5.	Closing.

 

(a) The date and time
of the closing of the purchase of the Shares (the “Closing”) by the Buyers shall be 12 noon, New York City time,
on such date as shall be mutually agreed to by the Seller and Buyers, which in no event shall be more than ten (10) Business Days
after the Expiration Date (such date on which the Closing actually occurs, the “Closing Date”), at the offices
of Trombly Business Law, PC, 1434 Spruce St., Suite 100, Boulder, CO 80302.

 

(b) On the Closing
Date, (i) Buyers shall pay the Purchase Price to the Seller, by wire transfer of immediately available funds in accordance with
the Seller’s written wire instructions, and (ii) the Seller shall irrevocably instruct the Transfer Agent to deliver to Buyers
one or more stock certificates, evidencing the Shares Buyers are purchasing and duly executed on behalf of the Seller and registered
in the name of Buyers, within three (3) Business Days after the Closing.

 

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(c) Each Party to this
Agreement will pay any banker’s, broker’s or finder’s fees or commissions for which such Party is responsible.

 

		6.	VOTING OF THE SHARES.

 

(a)
Voting rights. Buyers and Seller acknowledge and agree that Seller retains the voting rights for the Shares until and through
the date of closing of the Event, provided however, that the Shares remain subject to the resale restrictions and voting obligations
set forth in the Amended Separation Agreement between Seller and the Company,
dated January 31, 2014, as if the Shares were still held by Seller. After the closing of the Event, Buyers shall have full voting
rights for the Shares. From the Closing Date through the date of the closing of the Event, Buyers agree and acknowledge that they
cannot sell or transfer the Shares. In the event there is no closing of the Event on or prior to September 30, 2015, the Shares
will become fully tradable and full voting rights will transfer to the Buyers.

 

(b)
Power of Attorney. For good and valuable consideration, receipt of which is hereby acknowledged, each of the undersigned
Buyers and the Seller hereby irrevocably appoint Amy Trombly, Esq. as such Buyer’s attorney-in-fact with powers of substitution,
to vote the Shares in the same manner and pursuant to the same obligations and requirements applicable to the Seller set forth
in the Amended Separation Agreement between Seller and the Company, dated January 31, 2014. Such appointment will terminate on
the earlier of (i) the closing of the Event or (2) September 30, 2015. The Company is an
express third party beneficiary of this Section 6, with rights of enforcement.

 

7. Buyer’s
Representations and Warranties. Buyers represent and warrant to Seller that, as of the date hereof and as of the Closing
Date:

 

(a) Due Organization;
Authority. Buyers, if not a natural person, are an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder.

 

(b) No Public Sale
or Distribution. Buyers, together and individually, are acquiring the Shares for their own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under
the Securities Act; provided, however, by making the representations herein, Buyers do not agree to hold any of the Shares for
any minimum or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to
a registration statement or an exemption under the Securities Act and in accordance with the terms of this Agreement. Buyers are
acquiring the Shares hereunder in the ordinary course of business. Buyers do not presently have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Shares.

 

(c) Accredited Investor
Status. At the time Buyers were offered the Shares, they were, and as of the date hereof, and the Closing Date, are (i) an
“accredited investor” as that term is defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities
Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Buyers are not required
to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

(d) Experience.
Buyers, either alone or together with their representatives, as applicable, have such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares,
and has so evaluated the merits and risks of such investment. Buyers are able to bear the economic risk of an investment in the
Shares and is able to afford a complete loss of such investment.

 

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(e) No General Solicitation.
Buyers did not learn of the investment in the Shares as a result of any general solicitation or general advertising.

 

(f) No Governmental
Review. Buyers understand that no United States federal or state agency or any other government or governmental agency has
passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of an investment in the Shares
nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

(g) Validity; Enforcement.
This Agreement has been duly and validly authorized, executed and delivered on behalf of Buyers and shall constitute the legal,
valid and binding obligation of Buyers enforceable against Buyers in accordance with its respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(j) No Conflicts.
The execution, delivery and performance by Buyers of this Agreement and the consummation by Buyers of the transactions contemplated
hereby will not, (i) result in a violation of the organizational documents of Buyers, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Buyers are a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
to Buyers, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of Buyers to perform
the obligations hereunder.

 

8. Representations
and Warranties of the Seller. The Seller represents and warrants to Buyers that, as of the date hereof and as of the Closing
Date:

 

(a) Due Organization,
Authority. Seller is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction
of its incorporation with the requisite power and authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder.

 

(b) Validity; Enforcement.
This Agreement has been duly and validly authorized, executed and delivered on behalf of Seller and shall constitute the legal,
valid and binding obligation of Seller enforceable against Seller in accordance with its respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(c) No Conflicts.
The execution, delivery and performance by Seller of this Agreement and the consummation by Seller of the transactions contemplated
hereby will not, (i) result in a violation of the organizational documents of Seller, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Seller is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
to Seller, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of Seller to perform
its obligations hereunder.

 

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(d) Title. Seller
is the lawful owner of the Shares, free and clear of all security interests, liens, encumbrances, equities and other charges that
would limit the transferability of the Shares; except for a restriction on transferability which may be required by U.S. federal
and state securities laws and the Separation Agreement.

 

(e) Taxes. Seller
has paid all taxes on the Shares and there are no liens or claims on the Shares.

 

(f) No Rights.
There are no existing warrants, options, stock purchase agreements, redemption agreements, calls or rights to subscribe of any
character relating to the Shares.

 

(g) Litigation.
The Shares are not subject to current or pending litigation or to Seller’s knowledge, threatened litigation.

 

(h) No General Solicitation.
Neither the Seller, nor any Person acting on its behalf, has engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with the offer or sale of the Shares. Seller has not engaged any placement agent
or other agent in connection with the sale of the Shares.

 

		9.	Acknowledgments
of BuyerS.

 

(a) There have been
no representations, guarantees or warranties made to the undersigned Buyers by the Seller, its agents or employees, or any of its
agents or employees, or any other person, expressly or by implication, with respect to (i) the length of time that Buyers will
be required to remain as owner of the Shares; and (ii) the possibility that the past performance or experience on the part of the
Company might in any way indicate the predictable results of the ownership of the Shares or of the overall business of the Company.

 

(b) Buyers consents
to the placement of a legend on any stock certificate evidencing the Shares being purchased by Buyers, which legend shall be in
form as follows:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY SIMILAR STATE SECURITIES LAWS.
WITHOUT REGISTRATION, THESE SECURITIES MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED AT ANY TIME WHATSOEVER,
EXCEPT UPON DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER AND/OR THE SUBMISSION
TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY SUCH TRANSFER WILL
NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, AND/OR APPLICABLE STATE SECURITIES LAWS AND/OR ANY RULE OR REGULATION
PROMULGATED THEREUNDER.”

 

		10.	MISCELLANEOUS.

 

(a) Entire Agreement.
This Agreement (including the exhibits hereto and any written amendments hereof executed by the parties) constitutes the entire
Agreement and supersedes all prior agreements and understandings, oral and written, between the parties hereto with respect to
the subject matter hereof and may be amended only by a writing executed by all Parties.

 

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(b) Amendments.
Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of Seller and Buyers; provided, however, Section 4
and Section 10 of this Agreement shall not be amended or waived without the written consent of the Company and the Underwriter.

 

(c) Negotiated Agreement.
Each of the Seller and Buyers acknowledges that it has been advised and represented by counsel in the negotiation, execution and
delivery of this Agreement and accordingly agrees that, if an ambiguity exists with respect to any provision of this Agreement,
such provision shall not be construed against any party because such party or its representatives drafted such provision. Each
of the Seller and Buyers further acknowledges that the Company has not participated in the negotiation, execution or delivery of
this Agreement, other than with respect to Section 4 and Section 10.

 

(d) Sections and
Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

 

(e) Governing Law.
This Agreement and all transactions contemplated hereby, shall be governed by, construed and enforced in accordance with the internal
laws of the State of California, without regard to conflicts of laws principles that would result in the application of the laws
of another jurisdiction. The parties herein waive trial by jury. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties
agree to reimburse the prevailing party’s reasonable attorney’s fees, court costs, and all other expenses, whether
or not taxable by the court as costs, in addition to any other relief to which the prevailing party may be entitled. The Parties
herein agree 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 California or the United States District Court for the Northern District of
California, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The parties herein waive any objection
to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

(f) Execution.
This Agreement and any amendments, waivers, or consents may be executed in counterparts, each of which shall be deemed an original,
but all of which shall constitute the same agreement. Signed facsimile copies of this Agreement will legally bind the Parties to
the same extent as original documents.

 

(g) Due Diligence.
Both the Buyers and Seller acknowledge they have obtained as much information about the Company as they believe necessary to consummate
the transaction described in this Agreement. Both Parties represent that they are sophisticated investors, have access to counsel
and such other advisors as they deem advisable regarding the transaction. Both Buyers and Seller acknowledge the sale of the Shares
is an off market private transaction and that either Buyers or Seller may have information about the Company that the other party
does not. Both Buyers and Seller agree that no liability will exist for failure to disclose any information known by that party
about the Company to the other party and specifically waive any rights that may arise from failure of Buyers or Seller to reveal
what may be material, non-public information about the Company.

 

(h) Survival.
The representations, warranties, agreements and covenants shall survive the Closing for a period of one (1) year following the
Closing Date.

 

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(i) Severability.
In case any provision in or obligation under this Agreement or any other Transaction Document shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

(j) Notices.
All notices or other communications given or made hereunder shall be in writing and shall be delivered or mailed by registered
or certified mail, return receipt requested, postage prepaid, to the addresses set forth below.

 

If to Buyers at:

 

_____________

 

_____________

 

 

 

If to Seller at:

 

Oculus Innovative Sciences, Inc.

1129 N. McDowell Blvd.

Petaluma, CA 94954

 

With a copy (for informational purposes
only) to Seller’s counsel at:

 

Amy Trombly, Esq.

Trombly Business Law, PC

1434 Spruce St., Suite 100

Boulder, CO 80203

 

If to Underwriter at:

  

Dawson
James Securities, Inc.

1 North Federal Highway, 5th Floor

Boca Raton, FL 33432

 

 

If to Company at:

 

Ruthigen, Inc.

2455 Bennett Valley Road, Suite
C116

Santa Rosa, California 95404

 

With a copy (for informational purposes
only) to Company’s counsel at:

 

Grushko & Mittman, P.C.

515 Rockaway Avenue

Valley Stream, NY 11581

Attn: Barbara R. Mittman, Esq.

Fax: (212) 697-3575

 

 

 

[Signature Page Follows.]

 

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IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By:  /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

Biscayne Pulmonary Holding, LLC

 

By: /s/ Glenn Halpryn

 

Name: Glenn Halpryn

 

Title: Manager

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

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IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By: /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

Don Stengel Defined Benefit Plan

 

By: /s/ Don Stengel

 

Name: Don Stengel

 

Title: Trustee

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

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IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By:  /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

Marlin Capital Investments LLC

 

By:  /s/ Barry Honig

 

Name: Barry Honig

 

Title: President

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

    	10

    	 

    

 

IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By: /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

Brett Nesland 

 

By: /s/ Brett Nesland

 

Name: Brett Nesland

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

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IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By: /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

David Moss

 

By: /s/ David Moss

 

Name: David Moss

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By: /s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

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IN WITNESS WHEREOF, this Agreement has
been executed by each of the parties hereto on the date first above written.

 

OCULUS INNOVATIVE SCIENCES, INC.

 

 

 

By: /s/ Jim Schutz

 

Name: Jim Schutz

 

Title: Chief Executive Officer

 

 

 

Robert B. Prag 

 

By: /s/ Robert B. Prag

 

Name: Robert B. Prag

 

 

 

DAWSON JAMES SECURITIES, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Robert D. Keyser,
Jr.

 

Name:Robert D. Keyser, Jr.

 

Title:Chief Executive Officer

 

 

 

RUTHIGEN, INC.

 

Only with respect to Sections 4
& 10 of this Agreement

 

 

 

By:/s/ Hoji Alimi

 

Name:Hoji Alimi

 

Title:Chief Executive Officer

 

    	13Exhibit 10.3

 

This Agreement (the “Agreement”), dated as
of March 13, 2015, by and among Oculus Innovative Sciences, Inc., a Delaware corporation, with its principal place of business
at 1129 N. McDowell Blvd., Petaluma, CA 94954 (“Oculus”) and Pulmatrix, Inc., a Delaware corporation, with its
principal place of business at 99 Hayden Avenue, Suite 390, Lexington, MA 02421 (“Pulmatrix”).

 

Reference is made to (i) that certain License and Supply Agreement,
dated May 23, 2013, as amended on October 9, 2013, November 6, 2013 and January 31, 2014, by and among Ruthigen and Oculus (the
“License and Supply Agreement”), (ii) that certain Separation Agreement, dated August 2, 2013, as amended on
January 31, 2014, by and between Ruthigen, Inc. (“Ruthigen”) and Oculus (the “Separation Agreement”),
and (iii) that certain Shared Services Agreement, dated May 23, 2013, as amended on January 31, 2014, by and between Ruthigen and
Oculus (the “SSA” and collectively with the License and Supply Agreement, the Separation Agreement and any other
agreements or understandings (whether written or oral) between Ruthigen and Oculus, the “Oculus Agreements”).

 

Ruthigen and Pulmatrix entered into that certain Agreement and
Plan of Merger (the “DMA”), dated as of the date hereof, whereby, among other things, Pulmatrix will, subject
to the terms and conditions of the DMA, merge with and into a wholly-owned subsidiary of Ruthigen becoming a wholly-owned subsidiary
of Ruthigen (the “Merger”) and, in consideration therefor, Ruthigen shall issue to the pre-Merger security holders
of Pulmatrix approximately 31,327,045 shares of Ruthigen common stock (the “Merger Consideration”). Upon consummation
of the Merger and after the issuance of the Merger Consideration, in each case, in accordance with the terms of the DMA, (x) Oculus
will beneficially own less than 19.9% of the issued and outstanding shares of Ruthigen and (y) Ruthigen will devote substantially
all of its efforts and resources on the development of Pulmatrix’ new generation of inhaled therapeutics (the “Inhalation
Therapies”). Accordingly, the purpose of this Agreement is to memorialize certain understanding with respect to the relationship
of Oculus, Ruthigen and Pulmatrix after the Merger.

 

Subject to and contingent upon receipt of payment for the Ruthigen
shares under the Securities Purchase Agreement, dated January 8, 2015, and the Securities Purchase Follow-Up Agreement, dated March
13, 2015, between Oculus and Michael Brauser and Barry Honig, Ruthigen and Dawson James Securities, Inc., and the Securities Purchase
Agreements dated March 9, 2015, by and between Oculus and several investors, Oculus agrees as follows:

 

		1)	As of the date hereof, the aggregate amount due and payable to Oculus by Ruthigen pursuant to the Oculus Agreements is $4,000.
Oculus acknowledges and agrees, notwithstanding any contrary term or provision of the Oculus Agreements, that on the date that
the Merger is consummated (the “Effective Date”), the aggregate amounts due and payable to Oculus under the
Oculus Agreements will not exceed $5,000 (but in any event no more than the actual amount due and payable to Oculus under the Oculus
Agreements) (the “Effective Date Liabilities”). As of the date hereof, there are no claims for which Oculus
or Ruthigen may seek indemnification from Ruthigen or Oculus, respectively, under any Oculus Agreement, including Section 6.2 and
6.3 of the Separation Agreement.

 

		2)	As of the Effective Date, the SSA shall be mutually terminated, if not previously terminated, and be of no further force and
effect.

 

		3)	As of the Effective Date, all of Ruthigen’s and Oculus’ obligations under Article I of the Separation Agreement
and all obligations under the Funding Agreement (as defined in the Separation Agreement) have been satisfied and performed in full
and Ruthigen or Oculus have no further obligations thereunder.

 

		4)	Effective on the Effective Date, Article II and Article III of the Separation Agreement shall terminate and be of no further
force and effect. For the avoidance of doubt, Articles V – VIII of the Separation Agreement shall survive the Merger in accordance
with their terms (the “Separation Agreement Surviving Provisions”).

 

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		5)	Oculus hereby waives Ruthigen’s obligations under Section 3.1(b) and Section 4.3 of the License and Supply Agreement
for a period commencing on the date hereof and terminating on the date that is the earlier of (i) August 31, 2016 or (ii) one year
after the Effective Date (the “Waiver Period”) and otherwise agrees to forbear from exercising any rights and
remedies it may have under any Oculus Agreement arising as a result of Ruthigen’s failure to use Commercially Reasonable
Efforts (as defined in the License and Supply Agreement) or any other level of efforts to develop and commercialize the Product
(as defined in the License and Supply Agreement in effect on the date hereof). To the extent that the Waiver Period has expired
and no Sale of the Business has occurred, (i) then Oculus’ sole and exclusive remedy for Ruthigen’s failure to comply
with Section 3.1(b) or Section 4.3 of the License and Supply Agreement shall be to terminate the License and Supply Agreement and
(ii) notwithstanding any provision of the License and Supply Agreement to the contrary, Ruthigen may unilaterally terminate the
License and Supply Agreement, in each case, without any liability to Pulmatrix or Ruthigen or Oculus, respectively. If Ruthigen
intends to comply with the License and Supply Agreement following the termination of the Waiver Period, then, within 3 business
days following termination of the Waiver Period, Ruthigen will notify Oculus of such intent in writing following the procedures
established in paragraph 6 of this Agreement for notice. As part of the notice, Ruthigen will provide a written plan of compliance
and evidence of funding to support such plan consistent with the License and Supply Agreement which will be subject to approval
from Oculus, which approval will not be unreasonably withheld. If Ruthigen does not so notify Oculus of such intention or Oculus
does not approve such plan, with a reasonable opportunity for Ruthigen to resubmit its plan, then Oculus has the option to unilaterally
terminate the License and Supply Agreement.

 

		6)	Effective on the Effective Date, any of the provisions of any Oculus Agreement to the contrary, including Section 15.1 of the
License and Supply Agreement, Ruthigen may assign and/or delegate all of Ruthigen’s surviving rights and obligations under
the Oculus Agreements, including the License and Supply Agreement, to any credible third party acquiring all or substantially all
of the business and assets of Ruthigen related to the Product (the “Pre-Merger Ruthigen Business”), provided,
that the acquiror of the Pre-Merger Ruthigen Business is not a direct competitor of Oculus and is otherwise reasonably acceptable
to Oculus. Oculus shall object or consent in writing to any proposed acquiror not later than five (5) business days after receipt
of a written notice from Ruthigen of the identity of the proposed acquiror and copies of the acquisition documents with such consent
may not be unreasonably withheld by Oculus. For the purposes of this Agreement, Notice shall mean a written notice, effective upon
receipt, and shall be (i) delivered personally, mailed by First Class mail, or sent by express courier service and (ii) via Email
to Oculus Innovative Sciences, Inc., Attn. Jim Schutz, 1129 N. McDowell Blvd., Petaluma, CA 94954, jschutz@oculusis.com; with copy
to Trombly Business Law PC, Attn. Amy Trombly, 1434 Spruce St. Ste. 100, Boulder, CO 80302, amy@tromblybusinesslaw.com (or such
other addresses as specified in writing). Any contrary provision of the Oculus Agreements notwithstanding, Pulmatrix shall be entitled
to conduct any sale process for the Pre-Merger Ruthigen Business as it sees fit without the consent of or requirement to consult
or coordinate with Oculus except as provided in this Agreement, except for providing Notice with regard to the disclosure of Confidential
Information. All of the parties understand and agree that any acquiror of the Pre-Merger Ruthigen Business shall assume all of
Ruthigen’s obligations and liabilities under the Oculus Agreements “as is” unless Oculus and such acquiror otherwise
mutually agree in writing.

 

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		7)	Prior to the disclosure of any Confidential Information as defined in the License and Supply Agreement, Ruthigen or Pulmatrix
shall notify Oculus in writing at least five (5) business days in advance of such disclosure of Confidential Information to any
third party (including a third party acquiror) and provide Oculus with the names of all third parties intended to receive Confidential
Information, provided that no Confidential Information shall be disclosed to a direct competitor of Oculus. Additionally, Ruthigen
and Pulmatrix agree that in no event shall any information regarding the manufacturing process be disclosed to any third party.
Oculus shall have five (5) business days after such Notice to object to such disclosure, provided such objection is reasonable.

 

		8)	Prior to the consummation of a Sale of the Business with a minimum aggregate purchase price of $1 million pursuant to definitive
transaction documents with a credible third party acquiror (“Definitive Transaction Documents”), Ruthigen shall notify
(as defined above) Oculus in writing of such pending Sale of the Business and provide Oculus with copies of all such Definitive
Transaction Documents (a “ROFR Notice”). Oculus shall have five (5) business days after receipt of such ROFR Notice
to notify Ruthigen in writing whether it intends to acquire the Pre-Merger Ruthigen Business on exactly the same terms, including
the amount and kind of consideration (except that if part of the consideration consists of marketable securities of the proposed
acquiror, Oculus will instead deliver an amount in cash equal to the fair market value thereof), as set forth in the Definitive
Transaction Documents (the “Right of First Refusal”). If Oculus exercises its Right of First Refusal, Ruthigen shall
sell the Pre-Merger Ruthigen Business to Oculus as provided herein. If Oculus refuses to acquire the Pre-Merger Ruthigen Business,
Ruthigen may consummate the Sale of the Business in accordance with the Definitive Transaction Documents.

 

		9)	If Oculus does not exercise its Right of First Refusal and the aggregate gross consideration received by Ruthigen from a Sale
of the Business exceed $10MM, then Ruthigen shall pay or cause to be paid 10% of such gross consideration to Oculus (the “Oculus
Share”) within 10 calendar days of receipt. For clarification, the Oculus Share of such gross consideration shall only be
payable by Ruthigen when and in such kind (e.g., marketable securities, cash, etc...) as actually received by Ruthigen. For
further clarification, the parties agree that any acquiror’s assumption of obligations and liabilities under the Oculus Agreements
shall not be included in the determination of the gross consideration received by Ruthigen.

 

		10)	Oculus acknowledges that during the Waiver Period, if any, Ruthigen is under no obligation to achieve any “milestone
event” described in Article VII of the License and Supply Agreement.

 

		11)	Oculus acknowledges and agrees that the Inhalation Therapies are not Product and do not involve the Oculus Know-how (as defined
in the License and Supply Agreement) for their development and production, and the Merger and other transactions contemplated by
the DMA are not a Sale Transaction.

 

		12)	No provision of Section 2.4(b) of the License and Supply Agreement shall apply to the development, commercialization, marketing
and sale of Pulmatrix’ products whether such products are developed before or after the Effective Date.

 

		13)	Unless Ruthigen expressly requests in writing any manufacturing services, equipment, technical support, consulting services,
training services or other services (collectively, “Services”), Ruthigen shall not be required to make any payments
to Oculus under the License and Supply Agreement or any other Oculus Agreement for any such Services, other than the required $2,000
monthly rent payments. In general, but without limiting the foregoing, Oculus agrees that during the Waiver Period no payments
or other liabilities shall accrue or become and due and payable by Ruthigen to Oculus, whether in respect of Services, milestone
events or royalties, under any Oculus Agreement other than the Effective Date Liabilities unless and until Ruthigen resumes the
Commercialization and Development (each as defined in the License and Supply Agreement) of the Product after the Effective Date.
Ruthigen shall notify Oculus in writing of the date it resumes the Commercialization and Development of the Product.

 

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In furtherance of the foregoing, and in consideration of the
substantial benefits inuring to Oculus as a result of the consummation of the Merger, Oculus, for itself and each of its affiliates
and all directors, officers, agents or employees of Oculus or any of its affiliates (in each case, in their respective capacities
as such Oculus person(s)), together with their respective heirs, executors, administrators, successors and assigns, as of the Effective
Date, acquits, releases and forever discharges Ruthigen, Pulmatrix, their respective affiliates and all persons who at any time
on or prior to such date were directors, officers, agents or employees of Ruthigen, Pulmatrix or any of their respective affiliates
(in each case, in their respective capacities as such), together with their respective heirs, executors, administrators, successors
and assigns, from and against and all claims and liabilities which Oculus may have against them arising out of or related to any
Oculus Agreement and the transactions contemplated thereby except for the Effective Date Liabilities, the Separation Agreement
Surviving Provisions and, solely to the extent that Ruthigen resumes the Commercialization and Development of the Product after
the Effective Date, liabilities arising under the License and Supply Agreement and SSA.

 

This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware. From and after the Effective Date, Ruthigen is an express third party beneficiary of this
Agreement. This Agreement may not be amended, modified or waived except in a written instrument executed by Oculus and Pulmatrix.
This Agreement shall terminate automatically to the extent that the DMA is terminated or expires prior to the consummation of the
Merger or if the Merger is never consummated or if payment is not received by Oculus under the Amendment to the Securities Purchase
Agreement. The terms of this Agreement are confidential and shall not be disclosed by either party except as may be required by
law.

 

Pulmatrix, Inc.

 

 

By: /s/ Robert Clarke                      

Name: Robert Clarke

Title: Chief Executive Officer

 

 

 

Oculus Innovative Sciences, Inc.

 

 

By: /s/ Jim Schutz                           

Name: Jim Schutz

Title: Chief Executive Officer

 

 

 

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