Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into effective as of January 27, 2022 among SmartKem,
Inc., a Delaware corporation (the “Company”) and the persons who have purchased the Offering Shares (as
defined below) and have executed omnibus or counterpart signature page(s) hereto (each, a “Purchaser” and collectively,
the “Purchasers”). Capitalized terms used herein shall have the meanings ascribed to them in Section 1
below or in the Subscription Agreement (as defined below).

 

RECITALS:

 

WHEREAS,
the Company has offered and sold in compliance with Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated
thereunder to accredited investors in a private placement offering (the “Offering”) shares of the common stock
of the Company, par value $0.0001 per share, pursuant to certain Subscription Agreements entered into by and between the Company and Purchasers
of the Offering Shares set forth on the signature pages affixed thereto (the “Subscription Agreements”); and

 

WHEREAS,
the Company has agreed to enter into a registration rights agreement with each of the Purchasers in the Offering who purchased the Offering
Shares.

 

NOW,
THEREFORE, in consideration of the mutual promises, representations, warranties, covenants, and conditions set forth herein,
the parties mutually agree as follows:

 

1.    Certain
Definitions. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Approved Market”
means the OTCQB, OTCQX, the Nasdaq Stock Market, the New York Stock Exchange or the NYSE American.

 

“Blackout Period”
means, with respect to a distribution or registration, a period during which the Company, in the good faith judgment of its board of directors,
determines (because of the existence of, or in anticipation of, any acquisition, financing activity, or other material corporate development
or other material transaction involving the Company, or the unavailability for reasons beyond the Company’s control of any required
financial statements, disclosure of material information which is in its best interest not to publicly disclose, or any other event or
condition of similar material significance to the Company) that the registration and/or distribution of the Registrable Securities to
be covered by such registration statement, if any, or the circumstances described in Section 4(h) below, would be seriously detrimental
to the Company and its stockholders, in each case commencing on the day the Company notifies the Holders that they are required, because
of the determination described above, to suspend offers and sales of Registrable Securities and ending on the earlier of (1) the
date upon which the material non-public information resulting in the Blackout Period is disclosed to the public or ceases to
be material and (2) such time as the Company notifies the selling Holders that sales pursuant to such Registration Statement or a
new or amended Registration Statement or prospectus may resume; provided, however, that the aggregate of all Blackout
Periods shall not exceed thirty (30) consecutive Trading Days or more than sixty (60) Trading Days in any twelve (12) month
period (except for suspension of the use of the Registration Statement in connection with the filing of a post-effective amendment to
the Registration Statement to update the prospectus therein in connection with the filing of the Company’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q or Periodic Reports on Form 8-K, which Blackout Period may extend for the amount of time reasonably
required to respond to comments of the staff of the Commission (the “Staff”) on such amendment).

 

    	 	 	 

     

    

 

“Business Day”
means any day of the year, other than a Saturday, Sunday, or other day on which banks in the State of New York are required or authorized
to close.

 

“Commission”
means the U. S. Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

“Common Stock”
means the common stock, par value $0.0001 per share, of the Company and any and all shares of capital stock or other equity securities
of: (i) the Company which are added to or exchanged or substituted for the Common Stock by reason of the declaration of any stock
dividend or stock split, the issuance of any distribution or the reclassification, readjustment, recapitalization or other such modification
of the capital structure of the Company; and (ii) any other corporation, now or hereafter organized under the laws of any state or
other governmental authority, with which the Company is merged, which results from any consolidation or reorganization to which the Company
is a party, or to which is sold all or substantially all of the shares or assets of the Company, if immediately after such merger, consolidation,
reorganization or sale, the Company or the stockholders of the Company own equity securities of such other corporation.

 

“Effective Date”
means the date of the closing of the Offering.

 

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

 

“Excluded Registrable
Securities” shall have the meaning set forth in Section 3(d)(i) of this Agreement.

 

“Family Member”
means (a) with respect to any individual, such individual’s spouse, any descendants (whether natural or adopted), any trust
all of the beneficial interests of which are owned by any of such individuals or by any of such individuals together with any organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any such individual, and any corporation,
association, partnership or limited liability company all of the equity interests of which are owned by those above described individuals,
trusts or organizations and (b) with respect to any trust, the owners of the beneficial interests of such trust.

 

“Holder”
means (i) each Purchaser or any of such Purchaser’s respective successors and Permitted Assignees who acquire rights in accordance
with this Agreement with respect to any Registrable Securities directly or indirectly from a Purchaser or from any Permitted Assignee;
(ii) each Broker or any of such Broker’s respective successors and Permitted Assignees who acquire rights in accordance with this
Agreement with respect to any Registrable Securities directly or indirectly from an Broker or from any Permitted Assignee; (iii) each
holder of Registrable Pre-Exchange Shares or its respective successors and Permitted Assignees who acquire rights in accordance with
this Agreement with respect to any Registrable Securities directly or indirectly from such holder or from any Permitted Assignee thereof;
(iv) each holder of the Exchange Shares or its respective successors and Permitted Assignees who acquire rights in accordance with
this Agreement with respect to any Registrable Securities directly or indirectly from such holder or from any Permitted Assignee thereof;
and (v) each holder of Advisory Shares or its respective successors and Permitted Assignees who acquire rights in accordance with this
Agreement with respect to any Registrable Securities directly or indirectly from such holder or from any Permitted Assignee thereof.

 

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“Majority Holders”
means, at any time, Holders of both (i) a majority of the Registrable Securities then outstanding and (ii) a majority of the Offering
Shares then outstanding or issuable that constitute Registrable Securities.

 

“Offering
Shares” means the shares of Common Stock issued to the Purchasers pursuant to the Subscription Agreements, and any shares
of Common Stock issued or issuable with respect to such shares upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing.

 

“Permitted Assignee”
means (a) with respect to a partnership, its partners or former partners in accordance with their partnership interests, (b) with
respect to a corporation, its stockholders in accordance with their interest in the corporation, (c) with respect to a limited liability
company, its members or former members in accordance with their interest in the limited liability company, (d) with respect to an
individual party, any Family Member of such party and any trust for the direct or indirect benefit of an individual or a Family Member
of such individual, (e) with respect to a trust, to the trustor or beneficiary of such trust or to the estate of a beneficiary of such
trust, (f) an entity or trust that is controlled by, controls, or is under common control with a transferor, (g) any affiliate of
a transferor in any transaction in which the transferor distributes Restricted Securities to such affiliate for no consideration or (h) a
party to this Agreement.

 

“Piggyback Registration”
shall have the meaning set forth in Section 3(d)(i) of this Agreement.

 

“Registrable Securities”
means (a) the Offering Shares or (b) other shares of Restricted Common Stock held by the Holders, hereinafter acquired or issuable
in respect of the foregoing shares of Common Stock by way of conversion, dividend, stock-split, distribution or exchange, merger, consolidation,
recapitalization or reclassification or similar transaction. Such securities shall cease to be Registrable Securities hereunder when they
are (i) sold or otherwise transferred pursuant to a Registration Statement, (ii) sold under Rule 144 of the Securities Act.

 

“Registration
Default Period” means the period beginning on the date of which any Registration Event occurs and ending on the date on
which such Registration Event is cured, inclusive.

 

“Registration
Effectiveness Date” means the date that is one hundred and fifty (150) calendar days after the Effective Date, which one
hundred and fifty day period shall be extended for each day of a U.S. government shut down that results in the Commission temporarily
discontinuing review of, or acceleration of the effectiveness of, registration statements, if any.

 

“Registration
Event” means the occurrence of any of the following events:

 

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(a)    the
Company fails to file with the Commission the Registration Statement on or before the Registration Filing Date;

 

(b)    the
Registration Statement is not declared effective by the Commission on or before the Registration Effectiveness Date;

 

(c)    after
the SEC Effective Date, the Registration Statement ceases for any reason to remain effective or the Holders of Registrable Securities
covered thereby are otherwise not permitted to utilize the prospectus therein to resell the Registrable Securities covered thereby, except
for Blackout Periods permitted herein; or

 

(d)    following
the listing or inclusion for quotation on an Approved Market, the Registrable Securities, if issued and outstanding, are not listed or
included for quotation on an Approved Market, or trading of the Common Stock is suspended or halted on the Approved Market, which at the
time constitutes the principal markets for the Common Stock, for more than three (3) full, consecutive Trading Days (other than as
a result of (A) actions or inactions of parties other than the Company or its affiliates or of the Approved Market not reasonably in the
control of the Company, or (B) suspension or halt of substantially all trading in equity securities (including the Common Stock) on the
Approved Market).

 

“Registration
Filing Date” means the date that is fifteen (15) calendar days after the Company files its Annual Report on Form 10-K
for the fiscal year ended December 31, 2021.

 

“Registration
Statement” means any registration statement that the Company is required to file or files pursuant to Section 3(a)
or 3(d) of this Agreement to register the Registrable Securities and any successor registration statement.

 

“Restricted Common
Stock” means any shares of Common Stock that are subject to resale restrictions pursuant to the Securities Act and the rules
and regulations promulgated thereunder, including, but not limited to, securities: (1) acquired directly or indirectly from the issuer
or an affiliate of the issuer in unregistered offerings such as private placements; (2) acquired through an employee stock benefit plan
or as compensation for professional services; or (3) considered “restricted securities” under Rule 144. For purposes of clarity
Restricted Common Stock does not include Common Stock that is restricted solely as a result of contractual restrictions, including but
not limited to lock-up or similar contractual agreements.

 

“Rule 144”
means Rule 144 promulgated by the Commission under the Securities Act, as such rule may be amended or supplemented from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

“Rule 145”
means Rule 145 promulgated by the Commission under the Securities Act, as such rule may be amended or supplemented from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

“Rule 415”
means Rule 415 promulgated by the Commission under the Securities Act, as such rule may be amended or supplemented from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

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“Securities Act”
means the Securities Act of 1933, as amended, or any similar federal statute promulgated in replacement thereof, and the rules and regulations
of the Commission promulgated thereunder, all as the same shall be in effect at the time.

 

“SEC Effective
Date” means the date the Registration Statement is declared effective by the Commission.

 

“Trading Day”
means any day on which the Approved Market that at the time constitutes the principal securities market for the Common Stock, is open
for general trading of securities (or if there is no Approved Market that at the time constitutes the principal securities market for
the Common Stock, then any day on which the New York Stock Exchange is open for general trading of securities).

 

2.    Term.
This Agreement shall terminate with respect to each Holder on the earlier of: (i) the date that is five (5) years from the SEC
Effective Date, and (ii) the date on which no Registrable Securities are outstanding (the “Term”). Notwithstanding
the foregoing, Section 3(b), Section 6, Section 8, Section 9 and Section 10 shall survive the termination of this
Agreement.

 

3.    Registration.

 

(a)    Registration
on Form S-1. The Company shall prepare and file with the Commission a Registration Statement on Form S-1, or any other
form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for
the resale by the Holders of all of the Registrable Securities on a delayed or continuous basis (including in stock exchange transactions
and underwritten offerings), and the Company shall (i) make the initial filing of the Registration Statement with the Commission
no later than the Registration Filing Date, (ii)  use its commercially reasonable efforts to cause such Registration Statement to
be declared effective no later than the Registration Effectiveness Date and (iii) use its commercially reasonable efforts to keep
such Registration Statement continuously effective (including by filing a new Registration Statement if the initial Registration Statement
expires) for a period of five (5) years after the SEC Effective Date or for such shorter period as such securities no longer constitute
Registrable Securities hereunder (the “Effectiveness Period”); provided, however, that
the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 3(a), or keep
such registration effective pursuant to the terms hereunder, in any particular jurisdiction in which the Company would be required to
qualify to do business as a foreign corporation or as a dealer in securities under the securities laws of such jurisdiction or to execute
a general consent to service of process in effecting such registration, qualification or compliance, in each case where it has not already
done so. Upon the Company becoming eligible to register the Registrable Securities for resale by the Holders on Form S-3, the Company
shall use commercially reasonable efforts to amend the Registration Statement to a Registration Statement on Form S-3 or file a Registration
Statement on Form S-3 in substitution of the Registration Statement as initially filed as soon as reasonably practicable thereafter. The
Company shall be entitled to suspend sales of Registrable Securities pursuant to a Registration Statement and the use of any related prospectus
during a Blackout Period for the reasons and time periods set forth in the definition thereof. In the event that the Staff should limit
the number of Registrable Securities that may be sold pursuant to the Registration Statement, the Company may remove from the Registration
Statement such number of Registrable Securities as specified by the Commission on behalf of all of the holders of Registrable Securities
from the Registrable Securities on a pro rata basis among the holders thereof (such Registrable Securities, the “Reduction
Securities”). In such event, the Company shall give the Holders prompt notice of the number of Registrable Securities excluded
from the Registration Statement. The Company shall use its commercially reasonable efforts at the first opportunity that is permitted
by the Commission to, register for resale the Reduction Securities (pro rata among the Holders of such Reduction Securities) using one
or more Registration Statements that it is then entitled to use, until all of the Reduction Securities have been so registered; provided,
however, that the Company shall not be required to register such Reduction Securities during a Blackout Period. The Company shall use
its commercially reasonable efforts to cause each such Registration Statement to be declared effective under the Securities Act as soon
as possible, and shall use its commercially reasonable efforts to keep such Registration Statement continuously effective (including by
filing a new Registration Statement if the initial Registration Statement expires) under the Securities Act during the Effectiveness Period.
Notwithstanding the foregoing, the Company shall be entitled to suspend the effectiveness of such Registration Statement at any time prior
to the expiration of the Effectiveness Period for the reasons and time periods during a Blackout Period. No liquidated damages shall accrue
or be payable to any Holder pursuant to Section 3(b) below with respect to any Registrable Securities that are excluded by reason
of (i) the Staff limiting the number of Registrable Securities that may be sold pursuant to a registration statement (provided that the
Company continues to use commercially reasonable efforts to register such Reduction Securities for resale by other available means) or
(ii) such Holder failing to provide to the Company information concerning the Holder and the manner of distribution of the Holder’s
Registrable Securities that is required by the SEC or in response to SEC comments to be disclosed in a registration statement utilized
in connection with the registration of registrable securities. Notwithstanding anything herein to the contrary, if the Commission limits
the Company’s ability to file, or prohibits or delays the filing of a new registration statement, the Company’s compliance
with such limitation, prohibition or delay solely to the extent of such limitation, prohibition or delay shall not be deemed a failure
by the Company to use commercially reasonable efforts as set forth above or elsewhere in this Agreement and shall not require the payment
of any liquidated damages by the Company under this Agreement.

 

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(b)    Liquidated
Damages. If a Registration Event occurs, then the Company will make payments to each Holder of Registrable Securities, as liquidated
damages to such Holder by reason of the Registration Event, a cash sum calculated at a rate of twelve percent (12%) per annum of the aggregate
purchase price paid by such Holder pursuant to the Subscription Agreement for the Offering Shares with respect to Registrable Securities
held by such Holder as of the date of such Registration Event, only with respect to such Holder’s Registrable Securities that are
affected by such Registration Event and only for the applicable Registration Default Period. Notwithstanding the foregoing, (i) the maximum
amount of liquidated damages that may be paid by the Company pursuant to this Section 3(b) shall be an amount equal to five percent
(5%) of the applicable foregoing amounts in the preceding sentence with respect to such Holder’s Registrable Securities that are
affected by all Registration Events in the aggregate, and (ii) no penalties shall accrue with respect to any Registrable Securities removed
from the Registration Statement in response to a comment from the Staff limiting the number of shares of Registrable Securities which
may be included in the Registration Statement, or after the shares may be resold without volume or other limitations under Rule 144 under
the Securities Act or another exemption from registration under the Securities Act. For clarity, and by way of example, if the sum of
clauses (i) and (ii) for a specified Holder in the first sentence of this Section 3(b) is $10,000,000, liquidated damages payable by the
Company to such Holder by reason of one or more Registration Events affecting all Registrable Securities of such Holder would accrue at
a rate of twelve percent (12%) per annum until such time that all liquidated damages payable to such Holder reached a cap of $500,000
in the aggregate for all Registration Events. Each payment of liquidated damages pursuant to this Section 3(b) shall be due and payable
in cash in arrears within five (5) days after the end of each full 30-day period of the Registration Default Period until
the termination of the Registration Default Period and within five (5) days after such termination. Until the maximum amount of liquidated
damages is paid, such payments shall constitute the Holder’s sole and exclusive remedy for any Registration Event. The Registration
Default Period shall terminate upon the earlier of such time as the Registrable Securities that are affected by the Registration Event
cease to be Registrable Securities or (i) the filing of the Registration Statement in the case of clause (a) of the definition
of Registration Event, (ii) the SEC Effective Date in the case of clause (b) of the definition of Registration Event, (iii) the
ability of the Holders to effect sales pursuant to the Registration Statement in the case of clause (c) of the definition of Registration
Event, and (iv) the listing or inclusion and/or trading of the Common Stock on an Approved Market, as the case may be, in the case
of clause (d) of the definition of Registration Event; provided, that in the event of a cure of one or more of the Registration Events
described in clauses (i)-(iv) above when a separate Registration Event shall be continuing, the Registration Default Period shall continue
until all such Registration Events have ceased. The amounts payable as liquidated damages pursuant to this Section 3(b) shall be payable
in lawful money of the United States.

 

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(c)    Other
Limitations. Notwithstanding the provisions of Section 3(b) above, if the Commission does not declare the Registration Statement
effective on or before the Registration Effectiveness Date, and the reason for the Commission’s determination is that (i) the offering
of any of the Registrable Securities constitutes a primary offering of securities by the Company, (ii) Rule 415 may not be relied upon
for the registration of the resale of any or all of the Registrable Securities, and/or (iii) a Holder of any Registrable Securities must
be named as an underwriter and such Holder does not consent to be so named in the Registration Statement, the Holders shall not be entitled
to liquidated damages with respect to the Registrable Securities not registered; provided that the Company continues to use its commercially
reasonable efforts at the first opportunity that is permitted by the Commission to register for resale all such Registrable Securities,
using one or more registration statements that it is then entitled to use. The Company shall use its commercially reasonable efforts to
cause each such registration statement to be declared effective under the Securities Act as soon as possible, and shall use its commercially
reasonable efforts to keep such registration statement continuously effective under the Securities Act during the Effectiveness Period.
Notwithstanding the foregoing, the Company shall be entitled to suspend the effectiveness of such Registration Statement at any time prior
to the expiration of the Effectiveness Period for the reasons and time periods during a Blackout Period. No liquidated damages shall accrue
or be payable to any Holder with respect to any Registrable Securities that are excluded by reason of the Staff limiting the number of
Registrable Securities that may be sold pursuant to a registration statement; provided that the Company continues to use commercially
reasonable efforts to register such Registrable Securities for resale by other available means. Notwithstanding anything herein to the
contrary, if the Commission limits the Company’s ability to file, or prohibits or delays the filing of a new registration statement,
the Company’s compliance with such limitation, prohibition or delay solely to the extent of such limitation, prohibition or delay
shall not be deemed a failure by the Company to use commercially reasonable efforts as set forth above or elsewhere in this Agreement
and shall not require the payment of any liquidated damages by the Company under this Agreement.

 

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(d)    Piggyback
Registrations.

 

(i)       With
respect to any Registrable Securities not otherwise included in a Registration Statement pursuant to Section 3(a) as a result of any limitation
imposed by the Staff, or otherwise (the “Excluded Registrable Securities”), whenever the Company proposes to
register (including, for this purpose, a registration effected by the Company for other shareholders) any of its securities under the
Securities Act (other than pursuant to (i) a Registration pursuant to Section 3(a) hereof or (ii) registration pursuant to a registration
statement on Form S-4 or S-8 or any successor forms thereto), and the registration form to be used may be used for the registration of
Registrable Securities, the Company will give written notice to each holder of Excluded Registrable Securities of its intention to effect
such a registration and will, subject to the provisions of Subsection 3(d)(ii) hereof, and to the extent permitted by the Staff, include
in such registration all Excluded Registrable Securities with respect to which the Company has received a written request for inclusion
therein within twenty (20) days after the receipt of the Company’s notice (a “Piggyback Registration”).

 

(ii)       If
a Piggyback Registration is an underwritten secondary registration on behalf of holders of the Company’s securities, and the managing
underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration
exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company will
include in such registration a pro rata share of Excluded Registrable Securities requested to be included in such Registration Statement
as calculated by dividing the number of Excluded Registrable Securities requested to be included in such Registration Statement by the
number of the Company’s securities requested to be included in such Registration Statement by all selling security holders. In such
event, the holder of Excluded Registrable Securities shall continue to have registration rights under this Agreement with respect to any
Excluded Registrable Securities not so included in such Registration Statement.

 

(iii)       Notwithstanding
the foregoing, if, at any time after giving a notice of Piggyback Registration and prior to the effective date of the Registration Statement
filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such determination to each record holder of Excluded Registrable
Securities and, following such notice, (i) in the case of a determination not to register, shall be relieved of its obligation to register
any Excluded Registrable Securities in connection with such registration, and (ii) in the case of a determination to delay registering,
shall be permitted to delay registering any Excluded Registrable Securities for the same period as the delay in registering such other
securities.

 

4.    Registration
Procedures. The Company will keep each Holder reasonably advised as to the filing and effectiveness of the Registration Statement.
At its expense with respect to the Registration Statement, the Company will:

 

(a)    subject
to compliance with Section 5(b), prepare and file with the Commission with respect to the Registrable Securities, the Registration Statement
in accordance with Section 3(a) hereof, and use its commercially reasonable efforts to cause such Registration Statement to become
effective and to remain effective for the Effectiveness Period;

 

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(b)    not
name any Holder in the Registration Statement as an underwriter without that Holder’s prior written consent;

 

(c)    if
the Registration Statement or any post-effective amendment thereto is subject to review by the Commission, promptly respond to all comments,
diligently pursue resolution of any comments to the satisfaction of the Commission and file all amendments and supplements to such Registration
Statement as may be required to respond to comments from the Commission and otherwise to enable such Registration Statement to be declared
effective;

 

(d)    during
the Effectiveness Period, prepare and file with the Commission such amendments and supplements to such Registration Statement as may be
necessary to keep such Registration Statement continuously effective, current and up-to-date for the applicable time period required hereunder
and, if applicable, file any Registration Statement pursuant to Rule 462(b) under the Securities Act; cause the related prospectus to
be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions
then in force) promulgated under the Securities Act;

 

(e)    not
less than four (4) Trading Days prior to filing the Registration Statement or any related prospectus or any amendment or supplement
thereto, the Company shall furnish to the Holders (or, if so specified by any Holder, legal counsel to such Holder) copies of or a link
to all such documents proposed to be filed (other than those incorporated by reference) and duly consider in good faith any comments received
from the Holders (or from legal counsel to such Holders, as applicable);

 

(f)    furnish,
without charge, to each Holder of Registrable Securities covered by such Registration Statement (i) a reasonable number of copies
of such Registration Statement (including any exhibits thereto other than exhibits incorporated by reference), each amendment and supplement
thereto as such Holder may reasonably request, (ii) such number of copies of the prospectus included in such Registration Statement
(including each preliminary prospectus and any other prospectus filed under Rule 424 of the Securities Act) as such Holders may reasonably
request, in conformity with the requirements of the Securities Act, and (iii) such other documents as such Holder may reasonably
require to consummate the disposition of the Registrable Securities owned by such Holder, but only during the Effectiveness Period; provided
that the Company shall have no obligation to furnish any document pursuant to this clause that is available on the Electronic Data Gathering,
Analysis, and Retrieval (“EDGAR”) system;

 

(g)    use
its reasonable best efforts to register or qualify the securities covered by such Registration Statement under such other applicable securities
laws of such jurisdictions within the United States, including Blue Sky laws, as any Holder of Registrable Securities covered by such
Registration Statement reasonably requests and as may be reasonably necessary for the marketability of the Registrable Securities (such
request to be made by the time the applicable Registration Statement is deemed effective by the Commission) and do any and all other acts
and things reasonably necessary to enable such Holder to consummate the disposition in such jurisdictions of the Registrable Securities
owned by such Holder; provided, that the Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph or (ii) consent to general service of process
in any such jurisdiction where it has not already done so;

 

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(h)    as
promptly as practicable after becoming aware of any event, notify each Holder of Registrable Securities at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of the happening of any event that will, after the occurrence of
such event, cause the prospectus included in such Registration Statement, if not amended or supplemented, to contain an untrue statement
of a material fact or an omission to state a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading and the Company shall promptly thereafter prepare and furnish
to such Holder a supplement or amendment to such prospectus (or prepare and file appropriate reports under the Exchange Act) so that,
as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, unless suspension of the use of such prospectus otherwise is authorized herein
or in the event of a Blackout Period, in which case no supplement or amendment need be furnished (or Exchange Act filing made) until the
termination of such suspension or Blackout Period; provided that any and all information provided to the Holder pursuant to such notification
shall remain confidential to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required by
law;

 

(i)    comply,
and continue to comply during the Effectiveness Period, in all material respects with the Securities Act and the Exchange Act and with
all applicable rules and regulations of the Commission with respect to the disposition of all securities covered by such Registration
Statement;

 

(j)    as
promptly as practicable after becoming aware of such event, notify each Holder of Registrable Securities being offered or sold pursuant
to the Registration Statement of the issuance by the Commission or any other federal or state governmental authority of any stop order
or other suspension of effectiveness of the Registration Statement or the initiation of any proceedings for that purpose;

 

(k) use commercially reasonable
efforts to obtain all other approvals, consents, exemptions or authorizations from such governmental agencies or authorities as may be
necessary to enable the Holders and underwriters to consummate the disposition of Registrable Securities;

 

(l) enter into customary
agreements (including any underwriting agreements in customary form, including any representations and warranties and lock-up provisions
therein), and take such other actions as may be reasonably required in order to expedite or facilitate the disposition of Registrable
Securities;

 

(m)    use
its commercially reasonable efforts to furnish, or cause to be furnished, on the date that such Registrable Securities are delivered to
the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel
representing the Company for the purposes of such registration, in form and substance reasonably acceptable to the managing underwriter,
addressed to the underwriters and (ii) a “comfort” letter dated as of such date, from the independent certified public accountants
of the Company, in form and substance reasonably acceptable to the managing underwriter, addressed to the underwriters;

 

(n) use commercially reasonable
efforts to comply with all applicable rules and regulations of the Commission and make available to its shareholders, as soon as reasonably
practicable, but no later than sixteen (16) months after the effective date of any Registration Statement (as defined in Rule 168(c) under
the Securities Act), an earnings statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

    	 	10	 

     

    

 

(o) provide officers’
certificates and other customary closing documents;

 

(p)    use
its commercially reasonable efforts to cause the shares of Common Stock to be quoted or listed on an Approved Market;

 

(q)    cooperate
with each Holder and each underwriter participating in the disposition of such Registrable Securities and underwriters’ counsel
in connection with any filings required to be made with the Financial Industry Regulatory Authority;

 

(r)       use
its commercially reasonable efforts to cause the Common Stock to be DTC-, DWAC- and DRS-eligible no later than the initiation of quotation
of the Common Stock on an Approved Market.

 

(s) cause appropriate officers
as are reasonably requested by a managing underwriter or investment bank to participate in a “road show” or similar marketing
effort being conducted by such underwriter with respect to an underwritten public offering;

 

(t)    provide
a transfer agent and registrar that is/are registered with the Commission, which may be a single entity, for the shares of Common Stock
at all times, and cooperate with the Holders to facilitate the timely preparation and delivery of the Registrable Securities to be delivered
to a transferee pursuant to a resale of Registrable Securities pursuant to the Registration Statement (whether electronically or in certificated
form) which Registrable Securities shall be free, to the extent permitted by the applicable Subscription Agreement, of all restrictive
legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request;

 

(u)    cooperate
with the Holders of Registrable Securities being offered pursuant to the Registration Statement to issue and deliver, or cause its transfer
agent to issue and deliver, certificates or evidence of book-entry positions representing Registrable Securities to be offered pursuant
to the Registration Statement within a reasonable time after the delivery of certificates or evidence of book-entry positions representing
the Registrable Securities to the transfer agent or the Company, as applicable, and enable such certificates or positions to be in such
denominations or amounts as the Holders may reasonably request and registered in such names as the Holders may request;

 

(v)    notify
the Holders and their counsel as promptly as reasonably possible and (if requested by any such Person) confirm such notice in writing
no later than one (1) Trading Day following the day: (i)(A) when a Prospectus or any prospectus supplement or post-effective amendment
to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “no
review,” “review” or a “completion of a review” of such Registration Statement and whenever the Commission
comments in writing on such Registration Statement (in which case the Company shall provide true and complete copies thereof and all written
responses thereto to each of the Holders that pertain to the Holders as a selling stockholder, but not information which the Company believes
would constitute material and non-public information); and (C) with respect to the Registration Statement or any post-effective
amendment, when the same has been declared effective, provided, however, that such notice under this clause (C) shall be delivered
to each Holder; (ii) during the Effectiveness Period, of any request by the Commission or any other federal or state governmental
authority for amendments or supplements to a Registration Statement or prospectus or for additional information that pertains to the Holders
as selling stockholders; or (iii) during the Effectiveness Period, of the receipt by the Company of any notification with respect
to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any proceeding for such purpose;

 

    	 	11	 

     

    

 

(w)    during
the Effectiveness Period, refrain from bidding for or purchasing any Common Stock or any right to purchase Common Stock or attempting
to induce any person to purchase any such security or right if such bid, purchase or attempt would in any way limit the right of the Holders
to sell Registrable Securities by reason of the limitations set forth in Regulation M of the Exchange Act;

 

(x)    use
its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement or suspending or preventing the use of any related prospectus, or (ii) any suspension of
the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment;

 

(y) use commercially reasonable
efforts to assist a Holder in facilitating any sales (including but not limited to private sales) or other transfers of Registrable Securities
by, among other things, providing officers’ certificates and other customary closing documents reasonably requested by a Holder
without charge to the Holder (but the Holder shall be responsible for any third-party expenses) ; and

 

(aa)(i) cause legal
counsel to the Company, at the Company’s expense, to issue to the transfer agent for the Common Stock, within one (1) Trading Day
after the SEC Effective Date, a “blanket” legal opinion in customary form to the effect that the shares covered by the Registration
Statement have been registered for resale under the Securities Act and may be reissued upon resale by each selling stockholder named in
the Registration Statement without any legend or restriction relating to their status as “restricted securities” as defined
in Rule 144, upon receipt by the transfer agent of a certification by the holder thereof in form and substance reasonably satisfactory
to the Company’s counsel, that such selling stockholder has sold such shares in accordance with the plan of distribution included
in the Registration Statement, and (ii) cause the transfer agent for the Common Stock to issue such shares without any such legend within
one (1) Trading Day after the transfer agent’s receipt of such certification.

 

5.    Obligations
of the Holders.

 

(a)    At
any time, and from time to time, after the Registration Effectiveness Date, the Company may notify one or more of the Holders (in each
case, the “Specified Holders”) in writing (each, a “Suspension Notice”) of the happening
of: (i) any event of the kind described in Section 4(h) or (j); (ii) any Blackout Period; or (iii) only with respect to a Holder who is
an “insider” covered by such program, any suspension by the Company, pursuant to a written insider trading compliance program
adopted by the Company’s Board of Directors, of the ability of all “insiders” covered by such program to transact in
the Company’s securities because of the existence of material non-public information (each, a “Suspension Event”).
Upon receipt of any Suspension Notice, each Specified Holder shall as promptly as practicable discontinue disposition of such Holder’s
Registrable Securities covered by the Registration Statement until such Specified Holder receives the supplemented or amended prospectus
contemplated by Section 4(h), such blackout period shall have terminated or the restriction on the ability of “insiders” to
transact in the Company’s securities is removed, as applicable, and, if so directed by the Company, each such Specified Holder will
deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Specified Holder’s
possession, of the most recent prospectus covering such Specified Holder’s Registrable Securities at the time of receipt of such
Suspension Notice. The foregoing right to delay or suspend may be exercised by the Company for no longer than sixty (60) Trading
Days in any consecutive 12-month period (and for the avoidance of doubt, if the delay or suspension relates to a Blackout Period, the
period of delay or suspension shall also count against the maximum number of days for Blackout Periods in the definition of such term).

 

    	 	12	 

     

    

 

(b)    The
Holders of the Registrable Securities shall provide such information as may reasonably be requested by the Company in connection with
the preparation of the Registration Statement, including amendments and supplements thereto, in order to effect the registration of any
Registrable Securities under the Securities Act pursuant to Section 3(a) of this Agreement and in connection with the Company’s
obligation to comply with federal and applicable state securities laws, including a completed questionnaire in the form attached to this
Agreement as Annex A (a “Selling Securityholder Questionnaire”).

 

(c)    Each
Holder, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of the Registration Statement hereunder, unless such Holder has notified the Company in writing
of its election to exclude all of its Registrable Securities from such Registration Statement.

 

6.    Registration
Expenses. The Company shall pay all expenses arising from or incident to the performance of, or compliance with, this Agreement, including,
without limitation, (i) the Commission, stock exchange, OTC Markets Group, FINRA and other registration and filing fees, (ii) rating agencies
fees, (iii) all fees and expenses incurred in connection with complying with any securities or blue sky laws (including reasonable and
documented fees, charges and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (iv)
all printing (including financial printer), messenger and delivery expenses, (v) the fees, charges and disbursements of counsel to the
Company and of its independent public accountants and any other accounting and legal fees, charges and expenses incurred by the Company
(including any expenses arising from any special audits or “comfort letters” required in connection with or incident to any
registration), (vi) the fees, charges and disbursements of any special experts retained by the Company in connection with any registration
pursuant to the terms of this Agreement, (vii) all internal expenses of the Company (including all salaries and expenses of its officers
and employees performing legal or accounting duties), (viii) the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange and (ix) Securities Act liability insurance (if the Company elects to obtain such insurance), regardless
of whether a Registration Statement filed in connection with such registration is declared effective; provided, that, in any
underwritten registration, the Company shall have no obligation to pay any underwriting discounts, selling commissions or transfer taxes
attributable to the Registrable Securities being sold by the Holders thereof, which underwriting discounts, selling commissions and transfer
taxes shall be borne by such Holders. Except as provided in this Section 6 and Section 8 of this Agreement, the Company shall
not be responsible for the expenses of any attorney or other advisor employed by a Holder or for any other fees, disbursements and expenses
incurred by Holders not specifically agreed to in this Agreement.

 

    	 	13	 

     

    

 

7.    Assignment
of Rights. No Holder may assign its rights under this Agreement to any party without the prior written consent of the Company; provided, however,
that any Holder may assign its rights under this Agreement without such consent (a) to a Permitted Assignee with respect to the Registrable
Securities transferred to such Permitted Assignee (which Registrable Securities continue to constitute Restricted Common Stock following
such assignment) as long as (i) such transfer or assignment is effected in accordance with applicable securities laws; (ii) such
transferee or assignee agrees in writing to become bound by and subject to the terms of this Agreement; and (iii) such Holder notifies
the Company in writing of such transfer or assignment, stating the name and address of the transferee or assignee and identifying the
Registrable Securities with respect to which such rights are being transferred or assigned; or (b) as otherwise permitted under the
applicable Subscription Agreement. The Company may not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Majority Holders (other than by merger or consolidation or to an entity which acquires the Company including by
way of acquiring all or substantially all of the Company’s assets, which shall not require such consent).

 

8.    Indemnification.

 

(a)    To
the fullest extent permitted by applicable law, the Company shall, and hereby does, indemnify and hold harmless, to the fullest extent
permitted by law, each Holder, its affiliates, directors, officers, stockholders, members, managers, partners, employees and agents and
each other person, if any, who controls or is under common control with such Holder within the meaning of Section 15 of the Securities
Act (collectively, the “Holder Indemnified Parties”), against any and all losses, claims, damages, liabilities,
costs, expenses, judgments, fines, penalties, charges and amounts paid in settlement (or actions or proceedings, whether commenced or
threatened, in respect thereof) (collectively, “Losses”) that arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in any registration statement prepared and filed by the Company under which
Registrable Securities were registered under the Securities Act, any preliminary prospectus, free writing prospectus as defined under
Rule 433(d) of the Securities Act (“Free Writing Prospectus”), any “testing-the-water” communication
that is a written communication within the meaning of Rule 405 under the Securities Act (“Testing the Water Communication”),
any road show communication as defined in Rule 433(h) under the Securities Act (“Road Show Communication”),
final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or arise out of or are based upon any
omission or alleged omission to state therein a material fact required to be stated or necessary to make the statements therein in light
of the circumstances in which they were made not misleading, and the Company shall reimburse the Holder Indemnified Parties for any legal
or any other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, damage,
liability, action or proceeding; provided, however, that the Company shall not be liable in any such case (i)
to the extent, but only to the extent, that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense
arises out of or is based upon (x) an untrue statement in or omission from such registration statement, any such preliminary prospectus,
Free Writing Prospectus, Testing the Water Communication, Road Show Communication, final prospectus, summary prospectus, amendment or
supplement in reliance upon and in conformity with written information included in the Selling Securityholder Questionnaire, attached
hereto as Annex A, furnished by a Holder or its representative (acting on such Holder’s behalf) to the Company expressly for use
in the preparation thereof or (y) the failure of a Holder to comply with the covenants and agreements contained in Section 5
hereof respecting the sale of Registrable Securities. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Holder Indemnified Parties and shall survive the transfer of such shares by the Holder.

 

    	 	14	 

     

    

 

(b)    As
a condition to including Registrable Securities in the registration statement filed pursuant to this Agreement, each Holder agrees, severally
and not jointly, to be bound by the terms of this Section 8 and to indemnify and hold harmless, to the fullest extent permitted by
law, the Company, each of its directors, officers, partners, and each underwriter, if any, and each other person, if any, who controls
the Company within the meaning of Section 15 of the Securities Act, against any Losses, insofar as such Losses arise out of or are
based upon any untrue statement of a material fact contained in any registration statement, any preliminary prospectus, Free Writing prospectus,
Testing the Water Communication, Road Show Communication, final prospectus, summary prospectus, amendment or supplement thereto, or arise
out of or are based upon the omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, to the extent, but only to the extent, that such untrue statement or omission is included or omitted in reliance
upon and in conformity with written information included in the Selling Securityholder Questionnaire, attached hereto as Annex A, furnished
by the Holder or its representative (acting on such Holder’s behalf) to the Company expressly for use in the preparation thereof,
and such Holder shall reimburse the Company, and its directors, officers, partners, and any such controlling persons for any legal or
other expenses reasonably incurred by them in connection with investigating, defending, or settling any such loss, claim, damage, liability,
action, or proceeding; provided, however, that the indemnity obligation contained in this Section 8(b) shall in
no event exceed the amount of the net proceeds received by such Holder as a result of the sale of such Holder’s Registrable Securities
pursuant to such registration statement. Such indemnity shall remain in full force and effect, regardless of any investigation made by
or on behalf of the Company or any such director, officer or controlling person and shall survive the transfer by any Holder of such shares.

 

(c)    Promptly
after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim referred to in this
Section 8 (including any governmental action), such indemnified party shall, if a claim in respect thereof is to be made against
an indemnifying party, give written notice to the indemnifying party of the commencement of such action; provided, however,
that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations
under this Section 8, except to the extent that the indemnifying party is actually prejudiced by such failure to give notice in any material
respect. In case any such action is brought against an indemnified party, unless in the reasonable judgment of counsel to such indemnified
party a conflict of interest between such indemnified party and indemnifying parties may exist or the indemnified party may have defenses
not available to the indemnifying party in respect of such claim, the indemnifying party shall be entitled to participate in and to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party
for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof, unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties arises in respect of such claim
or the indemnified party may have defenses not available to the indemnifying party in respect of such claim after the assumption of the
defenses thereof or the indemnifying party fails to defend such claim in a diligent manner, other than reasonable costs of investigation.
Neither an indemnified party nor an indemnifying party shall be liable for any settlement of any action or proceeding effected without
its consent (which shall not be unreasonably withheld or delayed). No indemnifying party shall, without the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement, which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. Notwithstanding
anything to the contrary set forth herein, and without limiting any of the rights set forth above, in any event any party shall have the
right to retain, at its own expense, counsel with respect to the defense of a claim. Each indemnified party shall furnish such information
regarding itself or the claim in question as an indemnifying party may reasonably request in writing and as shall be reasonably required
in connection with defense of such claim and litigation resulting therefrom.

 

    	 	15	 

     

    

 

(d)    If
an indemnifying party does not or is not permitted to assume the defense of an action pursuant to Section 8(c) or in the case of
the expense reimbursement obligation set forth in Sections 8(a) and 8(b), the indemnification required by Sections 8(a) and 8(b) shall
be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or
Losses are incurred.

 

(e)    If
the indemnification provided for in Section s 8(a) and 8(b) is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of
such loss, liability, claim, damage or expense (i) in such proportion as is appropriate to reflect the proportionate relative fault
of the indemnifying party on the one hand and the indemnified party on the other (determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or omission relates to information supplied by the indemnifying party or the
indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission), or (ii) if the allocation provided by clause (i) above is not permitted by applicable law or
provides a lesser sum to the indemnified party than the amount hereinafter calculated, then in such proportion as is appropriate to reflect
not only the proportionate relative fault of the indemnifying party and the indemnified party, but also the relative benefits received
by the indemnifying party on the one hand and the indemnified party on the other, as well as any other relevant equitable considerations.
Notwithstanding any other provision of this Section 8(e), no Holder shall be required to contribute any amount in excess of the amount
by which the net proceeds received by such Holder from the sale of the Registrable Securities pursuant to the Registration Statement exceeds
the amount of damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement of a material
fact or omission, except in the case of fraud or willful misconduct. No indemnified party guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any indemnifying party who was not guilty
of such fraudulent misrepresentation.

 

(f)    The
indemnity and contribution agreements contained in this Section 8 are in addition to any liability that the indemnifying parties
may have to the indemnified parties and are not in diminution or limitation of the indemnification provisions under the applicable Subscription
Agreement.

 

9.    (a)
Rule 144. For a period ending on the earlier of (i) five (5) years from the Effective Date, or (ii) the acquisition of the Company
(whether by merger, tender or exchange offer, sale or assignment of assets or other purchase) as a result of which the Company is no longer
subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company will use its commercially reasonable efforts
to timely file all reports required to be filed by the Company after the date hereof under the Exchange Act and the rules and regulations
adopted by the Commission thereunder, and if the Company is not required to file reports pursuant to such sections, it will prepare and
furnish to the Holders and make publicly available in accordance with Rule 144(c) such information as is required for the Holders to sell
shares of Common Stock under Rule 144.

 

    	 	16	 

     

    

 

(b) Stock Exchange Listing.
The Company shall use commercially reasonable efforts to cause the Common Stock to be registered under Section 12(b) of the Exchange Act
and listed on the Nasdaq Stock Market or the New York Stock Exchange as soon as practicable after the Company meets all of the applicable
listing criteria for any tier of such stock exchanges. Except as otherwise provided herein, all expenses in connection with the matters
contemplated by this Section 9(b) shall be borne by the Company.

 

10.    Miscellaneous.

 

(a)    Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the United States of America and the State of
New York, both substantive and remedial, without regard to New York conflicts of law principles. Any judicial proceeding brought against
either of the parties to this Agreement or any dispute arising out of this Agreement or any matter related hereto shall be brought in
the state or federal courts of the State of New York, New York County, and, by its execution and delivery of this Agreement, each party
to this Agreement accepts the jurisdiction of such courts. The foregoing consent to jurisdiction shall not be deemed to confer rights
on any person other than the parties to this Agreement.

 

(b)    Remedies.
Except as otherwise specifically set forth herein with respect to a Registration Event, in the event of a breach by the Company or by
a Holder of any of their respective obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being
entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, shall be entitled to seek specific
performance of its rights under this Agreement. Except as otherwise specifically set forth herein with respect to a Registration Event,
the Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(c)    Successors
and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors,
Permitted Assignees, executors and administrators of the parties hereto.

 

(d)    No
Inconsistent Agreements. The Company has not entered, as of the date hereof, and shall not enter, on or after the date of this Agreement,
into any agreement with respect to its securities that would have the effect of impairing the rights granted to the Holders in this Agreement
or otherwise conflicts with the provisions hereof.

 

(e)    Entire
Agreement. This Agreement and the documents, instruments and other agreements specifically referred to herein or delivered pursuant
hereto (including the Subscription Agreements) constitute the full and entire understanding and agreement between the parties with regard
to the subjects hereof.

 

    	 	17	 

     

    

 

(f)    Notices,
etc. All notices, consents, waivers, and other communications which are required or permitted under this Agreement shall be in writing
will be deemed given to a party (a) upon receipt, when personally delivered; (b) one (1) Business Day after deposit with a nationally
recognized overnight courier service with next day delivery specified, costs prepaid on the date of delivery, if delivered to the appropriate
address by hand or by nationally recognized overnight courier service (costs prepaid); (c) the time of transmission if sent by facsimile
or e-mail with confirmation of transmission by the transmitting equipment if such notice or communication is delivered prior
to 5:00 P.M., New York City time, on a Trading Day, or the next Trading Day after the date of transmission, if such notice or communication
is delivered on a day that is not a Trading Day or later than 5:00 P.M., New York City time, on any Trading Day, provided confirmation
of facsimile is mechanically or electronically generated and kept on file by the sending party and confirmation of email is kept on file,
whether electronically or otherwise, by the sending party and the sending party does not receive an automatically generated message from
the recipients email server that such e-mail could not be delivered to such recipient; (d) the date received or rejected
by the addressee, if sent by certified mail, return receipt requested, postage prepaid; or (e) seven (7) days after the placement
of the notice into the mails (first class postage prepaid), to the party at the address, facsimile number, or e-mail address
furnished by the such party,

 

If to the Company, to: 

 

SmartKem, Inc. 

Manchester Technology Center, Hexagon
Tower 

Delaunays Road, Blackley 

Manchester, M9 8GQ UK 

Attention: Robert Bahns 

Email:  R.Bahns@smartkem.com

 

with copy to:

  

Lowenstein Sandler LLP 

1251 Avenue of the Americas 

New York, NY 10020 

Attention: Jack Hogoboom 

Email: jhogoboom@lowenstein.com 

 

if to a Holder, to:

 

such Holder at
the address set forth on the signature page hereto or in the Company’s records;

 

or at such other address as any party shall have
furnished to the other parties in writing in accordance with this Section 10(h).

 

(g)    Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default of the
Company under this Agreement, shall impair any such right, power or remedy of such Holder nor shall it be construed to be a waiver of
any such breach or default, or an acquiescence therein, or of any similar breach or default thereunder occurring; nor shall any waiver
of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any Holder of any breach or default under this Agreement, or any waiver on
the part of any Holder of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to any holder, shall
be cumulative and not alternative.

 

    	 	18	 

     

    

 

(h)    Counterparts.
This Agreement may be executed in any number of counterparts, and with respect to any Purchaser, by execution of an Omnibus Signature
Page to this Agreement and the applicable Subscription Agreement, each of which shall be enforceable against the parties actually executing
such counterparts, and all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile
transmission or by an e-mail, which contains a copy of an executed signature page such as a portable document format (.pdf)
file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or e-mail of an executed signature page such as a .pdf signature page were
an original thereof.

 

(i)    Severability.
In the case any provision of this Agreement shall be invalid, illegal or unenforceable, such provision shall be replaced with a valid,
legal and enforceable provision that as closely as possible reflects the parties’ intent with respect thereto, and the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

 

(j)    Amendments.
Except as otherwise provided herein, the provisions of this Agreement may be amended at any time and from time to time, and particular
provisions of this Agreement may be waived, with and only with an agreement or consent in writing signed by the Company and the Majority
Holders; provided that this Agreement may not be amended and the observance of any term hereof may not be waived with respect to any Holder
without the written consent of such Holder if such amendment or waiver on its face materially and adversely affects the rights of such
Holder under this Agreement in a manner that is different than the other Holders. The Purchasers acknowledge that by the operation of
this Section 10(j), the Majority Holders may have the right and power to diminish or eliminate all rights of the Purchasers and the Brokers
under this Agreement.

 

(k)    Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the obligations
of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder
hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder
pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind
of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to
such obligations or the transactions contemplated by this Agreement or any other matters and the Company acknowledges that the Holders
are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions.
Except as expressly provided herein, each Holder shall be entitled to protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding
for such purpose. The use of a single agreement with respect to the obligations of the Company contained herein was solely in the control
of the Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was
required or requested to do so by any Holder. Except as expressly provided herein, it is expressly understood and agreed that each provision
contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders collectively and
not between and among Holders.

 

    	 	19	 

     

    

 

(l)       Subsequent
Registration Rights. The Company shall not enter into any agreement granting registration rights more favorable than the registration
rights set forth in this Agreement without the written consent of the Majority Holders.

 

[SIGNATURE
PAGE FOLLOWS] 

 

    	 	20	 

     

    

 

This Registration Rights Agreement is hereby executed
as of the date first above written.

 

	THE COMPANY:  SMARTKEM, INC.	 	 
	 	 	 
	By: 	/s/Robert Bahns	 	 
	Name: Robert Bahns 	 	 
	Title: Chief Financial Officer 	 	 
	 	 	 
	PURCHASERS	 	 
	 	 	 
	See Omnibus Signature Pages to Subscription Agreement	 	 
	 	 	 
	STOCKHOLDER (INDIVIDUAL):	 	 STOCKHOLDER (ENTITY):
	 	 	 
	 	 	 
	Print Name	 	 Print Name of Entity
	 	 	 
	 	 	By:  
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ANNEX
AEXHIBIT 10.27

 

Employment
agreement

 

NUTRIBAND INC.

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of
February 1, 2022 (“Effective Date”), by and between
GARETH SHERIDAN of 333 Fairway Blvd., Panama City Beach, FL, 32407, (“Executive”) and NUTRIBAND Inc., a Nevada corporation
(the “Company”). 

 

PREAMBLE

 

WHEREAS, the Board of Directors of the
Company recognizes Executive’s previous and potential contribution to the growth and success of the Company and desires to assure the
Company of Executive’s continued employment in an executive capacity as Chief Executive Officer and to compensate him therefore;

 

WHEREAS, Executive wants to be employed
by the Company and to commit himself to serve the Company on the terms herein provided;

 

NOW, THEREFORE, in consideration of
the foregoing and of the respective covenants and agreements of the parties, the parties agree as follows:

 

1 General Definitions.

 

“Exchange Act” shall refer to the Securities Exchange
Act of 1934, as amended.

 

“Benefits” shall
mean all the fringe benefits approved by the Board from time to time and established by the Company for the benefit of Executives generally
and/or for key Executives of the Company as a class, including, but not limited to, regular holidays, vacations, absences resulting from
illness or accident, health insurance, disability and medical plans (including dental and prescription drug), group life insurance, and
pension, profit-sharing and stock bonus plans or their equivalent.

 

“Board” shall mean the Board of Directors of the
Company, together with an executive committee thereof (if any), as same shall be constituted from time to time.

 

“Business”
shall refer to the business of the Company which is described as: Medical Products Development.

 

“Chairman” shall
mean the individual designated by the Board from time to time as its Chairman.

 

     

     

    

 

“Change of Control” shall mean a change in control
that would be required to be reported in response to Item 5.01 of Form 8-K under the Exchange Act; provided that, without limitation,
such a change in control shall be deemed to have occurred if i) any “person” (as that term is used in Sections 13(d) and 14(d)
of the Exchange Act), other than the Company, as constituted, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of
the Company’s then outstanding securities, (ii) during any period of three consecutive years during the term of this Agreement, individuals
who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election
of each director who was not a Director at the beginning of such period has been approved in advance by Directors representing at least
two-thirds of the Directors then in office who were Directors at the beginning of the period.

 

Notwithstanding anything to the contrary
in this Agreement, Executive acknowledges that the Company is seeking to raise capital from investors which would result in such investors
acquiring a significant interest in the Company. Provided that Executive consents in writing to or votes as a director in favor of the
infusion of capital to the Company in exchange for a significant equity interest in the Company, no Change in Control shall be deemed
to have occurred.

 

“Chief Executive Officer”
shall mean the individual having responsibility to the Board for direction and management of the executive and operational affairs of
the Company and who reports and is accountable only to the Board.

 

“Code” shall refer to the Internal Revenue Code
of 1986, as amended.

 

“Company” shall
mean Nutriband Inc., a Nevada corporation, together with such subsidiaries and affiliates of the Company, as may from time to time exist.

 

“Competitor” shall mean any person, entity, company,
or corporation engaged in the same Business in the same Territory as the Company.

 

“Disability” shall
mean a written determination by a physician mutually agreeable to the Company and Executive (or, in the event of Executive’s total physical
or mental disability, Executive’s legal representative) that Executive is physically or mentally unable to perform his duties of Chief
Executive Officer under this Agreement and that such disability can reasonably be expected to continue for a period of six (6) consecutive
months or for shorter periods aggregating one hundred and eighty (180) days in any twelve (12)-month period.

 

“Executive” shall
mean Gareth Sheridan and, if the context requires, his heirs, personal representatives, and permitted successors and assigns.

 

“Person” shall
mean any natural person, incorporated entity, limited or general partnership, business trust, association, agency (governmental or
private), division, political sovereign, or subdivision or instrumentality, including those groups identified as
“persons” in §§13(d)(3) and 14(d)(2) of the Exchange Act.

 

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“Term” shall mean
a period Three (3) years commencing with the Effective Date hereof (the “Initial Term”). On the third (3rd) anniversary
of the Effective Date, and on each subsequent annual anniversary of the effective date thereafter, this Agreement shall be automatically
extended for an additional year (the “Renewal Term(s)”) unless either party notifies the other in writing more than ninety
(90) days prior to the relevant anniversary date that this Agreement is no longer to be extended. The Initial Term and each subsequent
Renewal Term shall constitute the “Term” of this Agreement and all references to the “Term” shall apply accordingly.

 

2. Positions, Responsibilities,
and Terms of Employment.

 

2.01 Position. Executive shall
serve as Chief Executive Officer and in such additional management position(s) as the Board shall designate. In this capacity Executive
shall, subject to the bylaws of the Company, and to the direction of the Board, serve the Company by performing such duties and carrying
out such responsibilities as are normally related to the position of Chief Executive Officer in accordance with the standards of the industry.
The Board shall either vote or recommend to the shareholders of the Company, as appropriate, that during the term of employment pursuant
to this Agreement: (i) Executive be nominated for election as a director at each meeting of shareholders held for the election of directors;
(ii) Executive be elected to and continued in the office of Chief Executive Officer of the Company and such of its subsidiaries as he
may select; (iii) Executive be elected to and continued on the Board of each subsidiary of the Company; (iv) if the Board of the Company
or any of its subsidiaries shall appoint an executive committee (or similar committee authorized to exercise the general powers of the
Board), Executive be elected to and continued on such committee; and (v) neither the Company nor any of its subsidiaries shall confer
on any other officer or Executive authority, responsibility, powers or prerogatives superior or equal to the authority, responsibility,
prerogatives and powers vested in Executive hereunder.

 

2.02 Best Efforts Covenant. Executive
will, to the best of his ability, devote a substantial portion of his professional and business time and best efforts to the performance
of his duties for the Company and its subsidiaries and affiliates. However, this will not prevent Executive from engaging in other business
activities with other business entities that do not interfere with his responsibilities as Chief Executive Officer.

 

2.03 Non-Exclusivity; No Adverse
Participation. During this Agreement’s Term, Executive will be free to engage in any other employment, occupation or business
enterprise so long as they do not interfere with his ability to perform his duties under this Agreement. However, Executive agrees not
to acquire, assume, or participate in, directly or indirectly, any position, investment, or interest in the Territory adverse or antagonistic
to the Company, its business or prospects, financial or otherwise, or take any action towards any of the foregoing, except that such acquisition,
assumption or participation shall be permitted if such position, investment or interest is approved by the Board of Directors of the Company.
The provisions of this Section shall not prevent Executive from owning shares of any Competitor of the Company so long as such shares
(i) do not constitute more than 5% of the outstanding equity of such Competitor, and (ii) are regularly traded on a recognized securities
exchange or listed for trading in the over-the-counter market.

 

    Page 3 of 20

     

    

 

2.04 Post-Employment Non-competition/Non-Solicitation
Covenant. Except with the prior written consent of the Board, Executive shall not during the Term and for one year thereafter:

 

(i) Persuade
or attempt to persuade any person or entity which is or was a customer, client, licensee or licensor of the Company to cease doing business
with the Company, or to reduce the amount of business it does with the Company (the terms “customer,” “licensee,”
“licensor,” and “client” as used in this Section 8 to include any potential customer, licensee, licensor or client
to whom the Company submitted bids or proposals, or with whom the Company conducted negotiations, during the term of Executive’s
employment or during the twelve (12) months preceding the termination of his employment;

 

(ii) Solicit
for himself or any other person or entity other than the Company the business of any person or entity which is a customer or client of
the Company, or was a customer or client of the Company within two (2) years prior to the termination of his employment; or

 

(iii) Persuade
or attempt to persuade any employee of the Company, or any individual who was an employee of the Company during the one (1) year period
prior to the termination of this Agreement, to leave the Company’s employ, or to become employed by any person or entity other than
the Company.

 

Executive acknowledges that the restrictive
covenants (the “Restrictive Covenants”) contained in this Section 2.04 of this Agreement are a condition of his employment
and are reasonable and valid in geographical and temporal scope and in all other respects. If any court or arbitrator determines that
any of the Restrictive Covenants, or any part of any of the Restrictive Covenants, is invalid or unenforceable, the remainder of the Restrictive
Covenants and parts thereof shall not thereby be affected and shall remain in full force and effect, without regard to the invalid portion.
If any court or arbitrator determines that any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable because
of the geographic or temporal scope of such provision, such court or arbitrator shall have the power to reduce the geographic or temporal
scope of such provision, as the case may be, and, in its reduced form, such provision shall then be enforceable.

 

2.05 Confidential Information.
Executive recognizes and acknowledges that the Company’s trade secrets and proprietary information and know-how, as they may exist
from time to time (“Confidential Information”), are valuable, special and unique assets of theCompany’s business, access
to and knowledge of which are essential to the performance of Executive’s duties hereunder. Executive will not, during or after the term
of his employment by the Company, in whole or in part, disclose such secrets, information or know-how to any Person for any reason or
purpose whatsoever, nor shall Executive make use of any such property for his own purposes or for the benefit of any Person (except the
Company) under any circumstances during or after the term of his employment, provided that after the term of his employment these restrictions
shall not apply to such secrets, information and know-how which are then in the public domain (provided that Executive was not responsible,
directly or indirectly, for such secrets, information or processes entering the public domain without the Company’s consent). Executive
shall have no obligation hereunder to keep confidential any Confidential Information if and to the extent disclosure of any thereof is
specifically required by law; provided, however, that in the event disclosure is required by applicable law, Executive shall provide the
Company with prompt notice of such requirement, prior to making any disclosure, so that the Company may seek an appropriate protective
order. Executive agrees to hold as the Company’s property all memoranda, books, papers, letters, customer lists, processes, computer
software, records, financial information, policy and procedure manuals, training and recruiting procedures and other data, and all copies
thereof and therefrom, in any way relating to the Company’s business and affairs, whether made by him or otherwise coming into his
possession, and on termination of his employment, or on demand of the Company at any time, to deliver the same to the Company. Executive
agrees that he will not use or disclose to other executives of the Company, during the term of this Agreement, confidential information
belonging to his former employers.

 

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Executive shall use his best efforts
to prevent the removal of any Confidential Information from the premises of the Company, except as required in his normal course of employment
by the Company. Executive shall use his best efforts to cause all persons or entities to whom any Confidential Information shall be disclosed
by him hereunder to observe the terms and conditions set forth herein as though each such person or entity was bound hereby.

 

2.06 Records, Files. All records,
files, drawings, documents, equipment and the like relating to the business of the Company which are prepared or used by Executive during
the Term of his employment under this Agreement shall be and shall remain the sole property of the Company.

 

2.07 Hired to Invent. Executive
agrees that every improvement, invention, process, apparatus, method, design and any other creation that Executive may invent, discover,
conceive, or originate by himself or in conjunction with any other Person during the term of Executive’s employment under this Agreement
that relates to the business carried on by the Company during the Term of Executive’s employment under this Agreement shall be the exclusive
property of the Company. Executive agrees to disclose to the Company every patent application, notice of copyright, or other action taken
by Executive or any affiliate or assignee to protect intellectual property during the twelve (12) months following Executive’s termination
of employment at the Company, for whatever reason, so that the Company may determine whether to assert a claim under this Section or any
other provision of this Agreement.

 

2.08 Equitable Relief. Executive
acknowledges that his services to the Company are of a unique character which give them a special value to the Company. Executive further
recognizes that violations by Executive of any one or more of the provisions of this Section 2 may give rise to losses or damages for
which the Company cannot be reasonably or adequately compensated in an action at law and that such violations may result in irreparable
and continuing harm to the Company. Executive agrees that, therefore, in addition to any other remedy which the Company may have at law
and equity, including the right to withhold any payment of compensation under Section 4 of this Agreement, the Company shall be entitled
to injunctive relief, without posting any bond or showing actual damages, to restrain any violation, actual or threatened, by Executive
of the provisions of this Agreement.

 

3. Compensation.

 

(b) 3.01
Minimum Annual Compensation. For his services to the Company during the Term, the Company shall pay Executive an annual salary
(“Salary”) at the rate of $250,000. The Executive’s Salary shall be reviewed at least annually by the compensation committee
of the Board and may be increased (but not decreased) in the sole discretion of the compensation committee. All Salary payments shall
be payable in such installments as the Company regularly pays its executive officers, but not less frequently than semi-monthly. In the
event that the Company does not have a compensation committee, all references in this Agreement to the compensation committee shall be
deemed to refer to the Board without the participation or attendance by the Executive unless such participation is required in order that
there be a quorum.

 

    Page 5 of 20

     

    

 

Executive’s salary shall be payable in periodic installments in accordance
with the Company’s usual practice for Executives of the Company.

 

3.02 Incentive Compensation. In
addition to the Minimum Annual Compensation, Executive shall be entitled to receive payments as set forth herein:

 

(a) Bonus Programs. Under the
Company’s incentive compensation and/or bonus program(s) (as in effect from time to time), if any (“Incentive Compensation”),
in such amounts as are determined by the Company to be appropriate for Executives of the Company. Any Incentive Compensation which is
not deductible, in the opinion of the Company’s counsel, under § 162(m) of the Internal Revenue Code shall except as otherwise
provided in this Agreement be deferred and paid, without interest, in the first (1st) year or years when and to the extent such payment
may be deducted, Executive’s right to such payment being absolute, subject only to the provisions of Section 2.08.

 

(b)(1) Performance Bonus. Notwithstanding anything to the contrary in this Agreement, in addition to the payments and other benefits
described in this Section 3 above, Executive shall be entitled to a Performance Bonus while rendering services as Chief Executive Officer
or in such similar capacity.  Such bonus shall be based on the Net Operating Profit Before Income Taxes as shown on the Annual
Financial Statements or as provided by the accountants regularly engaged by the Company.  In the event Executive’s employment
becomes less than the entire year covered by the Annual Financial Statements, Executive shall be entitled to a prorated bonus.  The
prorated bonus shall be the amount Executive would have received if Executive had been employed as Chief Executive Officer or in such
similar capacity for the entire annual period, prorated to the portion of the annual period Executive was actually employed as such.

 

(2) The Performance Bonus shall be calculated as follows:

 

	Net Operating Profit Before Income Taxes	 	Performance
 Bonus	 
	 	 	 	 
	On the First $10 Million	 	 	3.5	%
	 	 	 	 	 
	On the Next $40 Million	 	 	3.5	%
	 	 	 	 	 
	On the Next $50 Million	 	 	3.0	%
	 	 	 	 	 
	On all Amounts Over $100 Million	 	 	2.5	%

 

(b Notwithstanding anything to the contrary in this Agreement,
all bonuses described herein shall be paid within thirty (30) days after the audited Annual Financial Statements are completed and furnished
to the Company or filed with the SEC, whichever is earlier. In the event Executive’s employment is for a period less than the entire year
covered by the Annual Financial Statements, Executive shall be entitled to a prorated bonus. The prorated bonus shall be the amount Executive
would have received if Executive had been employed as Chief Executive Officer or in such similar capacity for the entire annual period,
prorated to the portion of the annual period Executive was actually employed as such.

 

    Page 6 of 20

     

    

 

(c) Stock Compensation. The Employee
shall be entitled to receive in the form of Common Stock options in an amount as determined annually by the Compensation Committee
of the Board. In the event the Employee’s employment by the Company is terminated on or before January 31, 2025 or following a
Change of Control, any stock options provided for above shall be deemed to be earned in full and shall be paid by the Company
simultaneously with such change in control.

 

3.03 Participating in Benefits.
Executive shall be entitled to all Benefits for as long as such Benefits may remain in effect and/or any substitute or additional Benefits
made available in the future to Executives of the Company, subject to and on a basis consistent with the terms, conditions, and overall
administration of such Benefits adopted by the Company. Benefits paid to Executive shall not be deemed to be in lieu of other compensation
to Executive hereunder as described in this Section 3.

 

3.04 Specific Benefits. During the term of this Agreement
(and thereafter to the extent this Agreement shall require):

 

(i) Executive shall be entitled to
five (5) weeks of paid vacation time per year, to be taken at times mutually acceptable to the Company and Executive.

 

(ii) The Company shall provide fully
paid accident and health insurance for Executive and his family unless waived by Executive in writing. Any waiver of such benefits may
be revoked at any time by Executive.

 

(iii) In recognition of the necessity
of the use of an automobile to the efficient and expeditious performance of Executive’s services, duties and obligations to and on behalf
of the Company, the Company shall provide to Executive, at the Company’s sole cost and expense, two vehicles to be chosen by Executive,
one in the Orlando, Florida, metropolitan region and one in the Salt Lake City, Utah, metropolitan region, with an aggregate car allowance
cost to the Company for both vehicles of not more than two thousand and 00/100 dollars ($2,000) per month. In addition thereto, the Company
shall bear the expense of insurance, fuel, and maintenance of said vehicle.

 

(iii) In addition to the vacation provided
pursuant to Section 3.04 (A) hereof, Executive shall be entitled to not less than ten (10) paid holidays (other than weekends) per year,
generally on such days on which the New York Stock Exchange is closed to trading.

 

(iv) Executive shall be entitled to
receive prompt reimbursement for all reasonable business expenses incurred by him (in accordance with the policies and procedures established
by the Company or the Board for the similarly situated Executives of the Company) in performing services hereunder.

 

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(vi) Upon submission of travel and
expense reports accompanied by proper vouchers, the Company will pay or reimburse Executive for all transportation, hotel, living, and
related expenses incurred by Executive on business trips away from the Company’s principal office, and for all other business and
entertainment expenses reasonably incurred by him in connection with the business of the Company and its subsidiaries and affiliates during
the term of this Agreement.

 

(vii) Executive shall be eligible to
participate during the Employment Period in Benefits not inconsistent or duplicative of those set forth in this Section 3.04 as the Company
shall establish or maintain for its Executives or executives generally.

 

(viii) During and following the Term
of this Agreement, the Company shall indemnify and hold the Executive harmless to the maximum extent permitted under the Private Corporations
Law of Nevada for acts taken within the scope of his employment. To the extent that the Company obtains coverage under a director and
officer indemnification policy, the Executive shall be entitled to such coverage on a basis that is no less favorable than the coverage
provided to any other officer or director of the Company. This provision shall survive termination of this Agreement.

 

3.05 Indemnification.
The Company will indemnify and hold harmless the Executive to the fullest extent permitted in Nevada Revised Statutes Chapter 78 (Private
Corporations Law) in connection with the defense of any action, suit or proceeding to which he is a party or threatened thereby, by reason
of his being or having been an officer or director of the Company. The right to indemnification provided by this Section 3.06 shall be
superseded as of the effective date of any indemnification agreement entered into between the Company and its directors and executives
by the terms of such indemnification agreement.

 

4. Termination of Employment.

 

4.01. Death or Permanent Disability.
The Executive’s employment shall terminate automatically upon the Executive’s death during the Term hereof. If the Company
determines in good faith that the Permanent Disability of the Executive has occurred during the Term of this Agreement (pursuant to the
definition of Permanent Disability set forth below), it may provide the Executive with written notice in accordance with Section 8.09
of this Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with
the Company shall terminate effective on the thirtieth (30th) day after receipt of such notice by the Executive (the “Disability
Effective Date”), provided that, within the 30 days after such receipt, the Executive shall not have returned to full-time performance
of the Executive’s duties. For purposes of this Agreement, “Permanent Disability” shall have such meaning as under the
Company’s disability plan in which the Executive participates or, if the Executive does not participate in any such plan, shall
mean the absence of the Executive from the Executive’s duties with the Company on a full-time basis for one hundred eighty (180)
consecutive business days as a result of incapacity due to mental or physical illness, as determined by a physician selected by the Company
or its insurers and acceptable to the Executive or the Executive’s legal representative.

 

    Page 8 of 20

     

    

 

4.02. Termination for Cause.
The Company may terminate the Executive’s employment during the Term hereof either with or without Cause. For purposes of this Agreement,
“Cause” shall mean:

 

(i) the willful failure of the Executive
to perform the Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental
illness) which Executive fails to correct within fifteen (15) days of receiving written notice of the Board’s intention to terminate Executive
if such failure or conduct is not corrected;

 

(ii) the willful engaging by the Executive
in illegal conduct or willful misconduct which is materially and demonstrably injurious to the Company;

 

(iii) the
Executive’s indictment for, or plea of guilty or nolo contendere to, a charge of commission of a felony;

 

(iv) the Executive’s disclosure
of confidential information in violation of the Company’s written policies which is materially and demonstrably injurious to the
Company which Executive fails to correct within fifteen (15) days of receiving written notice of the Board’s intention to terminate
Executive if such failure o r conduct is not corrected; or

 

(v) the Executive’s material
willful breach of this Agreement which Executive fails to correct within fifteen (15) days of receiving written notice of the Board’s
intention to terminate Executive if such failure or conduct is not corrected.

 

For purposes of this Section, no act
or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by
the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice
of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the
best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there
shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of
the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to
the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, the Executive is guilty of the conduct described in clauses (i), (ii) or (iv) above, and specifying the particulars
thereof in detail.

 

4.03 Good
Reason. “Good Reason” shall mean (in the absence of the written consent of the Executive):

 

(i) any failure by the Company to comply with any
of the provisions of Section 3 of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and that is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

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(ii) any
other material breach of this Agreement by the Company;

 

(iii) any
failure by the Company to comply with Section 8.01 of this Agreement; or

 

(iv) an
event that results in a Change of Control occurs.

 

The Executive’s mental or physical incapacity following the occurrence
of an event described above in clauses (i) through (iv) shall not affect the Executive’s ability to terminate employment for Good
Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not affect the Executive’s
estate’s entitlement to any severance payments or benefits under Section 5(a) of this Agreement. For purposes of providing notice
pursuant to this Section, either Executive or Executives attorney-in-fact, personal representative, executor, or other legal representative
(including but not limited to Executive’s attorney) may deliver the requisite notices described herein.

 

4.04 Notice of Termination. Any
termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other
party hereto given in accordance with Section 8.04 of this Agreement. For purposes of this Agreement, a “Notice of Termination”
means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than 30 days after the giving of such notice). The failure by the Executive
or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause
shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

4.05  Date
of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause
or by the Executive with or without Good Reason, the date of receipt of the Notice of Termination or any later date specified therein
within thirty (30) days of such notice, as the case may be, (ii) if the Executive’s employment is terminated by the Company other
than for Cause or Permanent Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such
termination, and (iii) if the Executive’s employment is terminated by reason of death or Permanent Disability, the Date of Termination
shall be the date of death of the Executive or the Disability Effective Date, as the case may be. The Company and the Executive shall
take all steps necessary (including with regard to any post-termination services by the Executive) to ensure that any termination described
in this Section 4 constitutes a “separation from service” within the meaning of Section 409A of the Code, and notwithstanding
anything contained herein to the contrary, the date on which such separation from service takes place shall be the “Date of Termination.”

 

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5  Obligations of the Company
upon Termination.

 

5.01 Good
Reason or Without Cause. Subject to the Executive’s execution of the “Waiver and Release” attached hereto as
Exhibit A (the “Waiver and Release”) no later than thirty (30) days after the Date of Termination, if, during the Term
of this Agreement, the Company shall terminate the Executive’s employment without Cause or the Executive shall terminate
employment for Good Reason:

 

(i) The Company shall pay to the Executive
in a lump sum in cash within thirty (30) days after the Date of Termination (or, if later, five (5) days after the effective date of the
Waiver and Release), the aggregate of the following amounts:

 

A. the sum of (1) the Executive’s
Annual Minimum Salary through the Date of Termination to the extent not theretofore paid, (2) any annual incentive payment earned by the
Executive for a prior period to the extent not theretofore paid and not theretofore deferred, (3) any Annual Performance Bonus Payment
earned by the Executive for a prior period to the extent not theretofore paid and not theretofore deferred, (4) any accrued and unused
vacation pay and (5) any business expenses incurred by the Executive that are unreimbursed as of the Date of Termination (the sum of the
amounts described in clauses (1)-(5), shall be hereinafter referred to as the “Accrued Obligations”);

 

B. the product of (1) the Performance
Bonus Payment and (2) a fraction, the numerator of which is the number of days that have elapsed in the fiscal year of the Company in
which the Date of Termination occurs as of the Date of Termination, and the denominator of which is 365 (the “Pro-Rata Performance
Bonus”);

 

C. the amount equal to the sum of (i)
Five times the Executive’s Annual Minimum Salary; (ii)three times the Performance Bonus Payment and (iii) the Incentive Payment
(i-iii collectively, the “Severance Payment”);

 

D. in the event Executive is not fully
vested in any retirement benefits with the Company from pension, profit sharing, or any other qualified or non-qualified retirement plan(s),
the difference between the amounts Executive would have been paid if he had been vested on the date his employment was terminated and
the amounts paid or owed to the Executive pursuant to such retirement plans;

 

E. the product of (1) the Incentive
Payment and (2) a fraction, the numerator of which is the number of days that have elapsed in the fiscal year of the Company in which
the Date of Termination occurs as of the Date of Termination, and the denominator of which is 365 (the “Pro-Rata Incentive Payment”);
and

 

F. the present value of the amount
equal to the sum of five (5) years’ Performance Bonus pay with such amount being calculated based on the Performance Bonus paid
to the Employee the year prior to Termination.

 

(ii) Notwithstanding anything to the
contrary contained in any stock incentive plan or grant or award agreement, as applicable:

 

A. All stock options and warrants outstanding
as of the Date of Termination and held by the Executive shall vest in full and become immediately exercisable for the remainder of their
full term;

 

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B. All restricted stock shall no longer be restricted
to the extent permitted by law. The Company will use its best efforts, at its sole cost to register such restricted stock as expeditiously
as possible (A and B collectively, the “Equity Benefits”).

 

(iii) To the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive
is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company through the Date of Termination,
and, to the extent the Executive satisfies any “retirement” based rule of any of the foregoing that provides for more beneficial
treatment to the Executive, the Executive shall be afforded such more beneficial treatment (such other amounts and benefits and such more
beneficial treatment shall be hereinafter referred to as the “Other Benefits”).

 

5.02 Death. If the Executive’s
employment is terminated by reason of the Executive’s death during the Employment Period, this Agreement shall terminate without
further obligations to the Executive’s legal representatives under this Agreement, other than for payment of Accrued Obligations,
the Pro-Rata Performance Bonus Payment, the Pro-Rata Incentive Payment, the Equity Benefits, the provision of the Retiree Coverage for
the Executive’s spouse as of the date hereof and the timely payment or provision of the Other Benefits. Accrued Obligations, the
Pro- Rata Performance Bonus Payment, and Pro-Rata Incentive Payment shall be paid to the Executive’s estate or beneficiary, as applicable,
in a lump sum in cash within 30 days of the Date of Termination, and the payment in respect of the Retiree Coverage (which will be in
addition to any rights to COBRA Coverage) shall be paid as soon as reasonably practicable following the Executive’s death but in
no event later than the end of the COBRA Coverage period. With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 5.02 shall include, and the Executive’s estate shall be entitled after the Date of Termination to receive,
death benefits as in effect at the Date of Termination generally with respect to senior executives of the Company.

 

5.03 Permanent Disability. If
the Executive’s employment is terminated by reason of the Executive’s Permanent Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other than for payment of Accrued Obligations, the Pro-Rata Performance
Bonus Payment, the Pro-Rata Incentive Payment and the Severance Payment, the Equity Benefits, the provision of the Medical Benefits in
accordance with the 409A Medical Benefits Treatment, and the timely payment or provision of the Other Benefits. Accrued Obligations, the
Pro-Rata Performance Bonus Payment, the Pro-Rata Incentive Payment, and the Severance Payment shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination, provided, that in the event that the Executive is a Specified Executive, the Pro-Rata
Performance Bonus Payment and the Severance Payment shall be paid, with Interest, to the Executive on the Delayed Payment Date. In addition,
in the event that the Executive is a Specified Executive, any cash payments in respect of the Retiree Coverage shall be paid to the Executive
(or, as applicable, his spouse on the date hereof) on the later of (i) the Delayed Payment Date and (ii) the date that such payments would
have otherwise been paid pursuant to the Retiree Coverage. With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 5.03 shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability
and other benefits as in effect at any time thereafter generally with respect to senior executives of the Company.

 

    Page 12 of 20

     

    

 

5.04 Cause.
If the Executive’s employment shall be terminated for Cause this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay or provide to the Executive (A) the Accrued Obligations and (B) the Other Benefits.
Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.

 

5.05 Other than for Good Reason.
If the Executive’s employment shall be terminated by the Executive without Good Reason, this Agreement shall terminate without further
obligations to the Executive other than the obligation to pay or provide to the Executive (A) the Accrued Obligations, (B) the Other Benefits,
and (C) the Retiree Coverage. Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.
In addition, in the event that the Executive is a Specified Executive, any cash payments in respect of the Retiree Coverage shall be paid
to the Executive (or, as applicable, his spouse on the date hereof) on the later of (i) the Delayed Payment Date and (ii) the date that
such payments would have otherwise been paid pursuant to the Retiree Coverage.

 

6. Full Settlement; Legal Fees.
The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right, or action which the Company may have against
the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or
not the Executive obtains other employment. The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses that the Executive may reasonably incur as a result of any contest by the Company, the Executive or others of the validity
or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result
of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each case, Interest, provided that
the Executive prevails on any material issue in such contest. In order to comply with Section 409A of the Code, (i) in no event shall
the payments by the Company under this Section 6 be made later than the end of the calendar year next following the calendar year in which
such fees and expenses were incurred, provided, that the Executive shall have submitted an invoice for such fees and expenses at least
10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; (ii) the amount
of such legal fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses
that the Company is obligated to pay in any other calendar year; (iii) the Company’s obligation to pay the Executive’s legal
fees shall terminate on the 20th anniversary of the Effective Date; and (iv) the Executive’s right to have the Company pay such
legal fees and expenses may not be liquidated or exchanged for any other benefit.

 

    Page 13 of 20

     

    

 

7. Certain Additional Payments by the Company.

 

7.01 Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be determined that any payment or distribution by, or benefit from,
the Company  or any person who acquires ownership or effective control or ownership of a substantial portion of the Company’s
assets (within the meaning of section 280G of the Code) or by any affiliate of such person, to or for the benefit of Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to
any additional payments required under this Section 7) (a “Payment”) would be subject to the excise tax imposed by
section 4999 of the Code or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then Executive
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive
of all taxes (including any interest or penalties imposed with respect to such taxes), including without limitation, any income taxes
(and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount
of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.  Any Gross-Up Payment that the Company is required
to make to reimburse Executive for federal, state and local taxes imposed upon Executive, including the amount of additional taxes imposed
upon Executive due to the Company’s payment of the initial taxes on such amounts, shall be made by the Company by the end of Executive’s
taxable year next following Executive’s taxable year in which Executive remits the related taxes to the taxing authority.

 

7.02  Subject
to the provisions of Section 7.03, all determinations required to be made under this Section 7, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made by a certified public accounting firm that is (i) not serving as accountant or auditor for the person who acquires ownership or
effective control or ownership of a substantial portion of the Company’s assets (within the meaning of section 280G of the Code)
or any Affiliate of such person and (ii) agreed upon by the Company and Executive (the “Accounting Firm”).  The
Accounting Firm shall provide detailed supporting calculations both to the Company and Executive within 15 business days after appointment
by the Company and Executive and receipt of notice from Executive that there has been a Payment, or such earlier time as is requested
by the Company.  All fees and expenses of the Accounting Firm shall be borne solely by the Company.  Any Gross-Up
Payment, as determined pursuant to this Section 7 shall be paid by the Company to Executive within five days after the receipt of the
Accounting Firm’s determination and in no event later than the payment deadline specified in Section 7.01  Any determination
by the Accounting Firm shall be binding upon the Company and Executive.  As a result of the uncertainty in the application of
section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments
that will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder.  In the event that the Company exhausts its remedies pursuant to Section 7.03 and Executive thereafter
is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive.

 

    Page 14 of 20

     

    

 

7.03  Executive
shall notify the Company in writing of any claim by the Internal Revenue Service, state or other taxing authority (“Taxing Authority”)
that, if successful, would require the payment by the Company of the Gross-Up Payment (or an additional Gross-Up Payment) in the event
the Taxing Authority seeks higher payment.  Such notification shall be given as soon as practicable, but no later than ten business
days after Executive is informed in writing of such claim, and shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid.  Executive shall not pay such claim prior to the expiration of the 30-day period following
the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect
to such claim is due).  If the Company notifies Executive in writing prior to the expiration of such period that it desires
to contest such claim, Executive shall:

 

(i) give the Company any information reasonably requested by the Company relating to such claim,

 

(ii) take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including without
limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

 

(iii) cooperate
with the Company in good faith in order to effectively contest such claim, and

 

(iv) permit
the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly
all costs and expenses (including additional interest and penalties) incurred at any time during the period that ends ten years following
the lifetime of Executive in connection with such proceedings and shall indemnify and hold Executive harmless, on an after-tax basis,
for any Excise Tax and income tax (including interest and penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions of this Section 7.03, the Company shall control
all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the Taxing Authority in respect of such claim and may, at its sole option, either direct Executive
to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest
to determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company
shall determine; provided, however, that if the Company directs Executive to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to Executive, on an interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely
to such contested amount.  The Company shall not direct Executive to pay such a claim and sue for a refund if, due to the prohibitions
of section 402 of the Sarbanes-Oxley Act of 2002, the Company may not advance to Executive the amount necessary to pay such claim.  The
Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder
and Executive shall be entitled to settle or contest, as the case may be, any other issues raised by the Taxing Authority.  The
costs and expenses that are subject to be paid pursuant to this Section 7.03 shall not be limited as a result of when the costs or expenses
are incurred.  The amounts of costs or expenses that are eligible for payment pursuant to this Section 7.03 (iv) during a given
taxable year of Executive shall not affect the amount of costs or expenses eligible for payment in any other taxable year of Executive.  The
right to payment of costs and expenses pursuant to this Section 7.03 (iv) is not subject to liquidation or exchange for another
benefit.  Any payment due under this Section 7.03 (iv) to reimburse Executive for any taxes shall be made to Executive by the
Company by the end of Executive’s taxable year following Executive’s taxable year in which Executive remits the related taxes
to the applicable taxing authorities.

 

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7.04  If,
after the receipt by Executive of an amount advanced by the Company pursuant to Section 7.03, Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to the Company’s complying with the requirements of Section 7.03 promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto.  If,
after the receipt by Executive of an amount advanced by the Company pursuant to Section 7.03, a determination is made that Executive shall
not be entitled to any refund with respect to such claim and the Company does not notify Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such determination, then such advance shall not be required to be repaid.

 

8. Miscellaneous.

 

8.01 Assignment. This Agreement
and the rights and obligations of the parties hereto shall bind and inure to the benefit of each of the parties hereto and shall also
bind and inure to the benefit of any successor or successors of the Company in a reorganization, merger, or consolidation and any assignee
of all or substantially all of the Company’s business and properties, but, except as to any such successor of the Company, neither
this Agreement nor any rights or benefits hereunder may be assigned by the Company or Executive. This Agreement and any rights and benefits
hereunder shall inure to the benefit of and be enforceable by the Executive’s legal representatives, heirs and legatees.

 

8.02 Governing Law; Jurisdiction;
Venue. This Agreement shall be construed in accordance with and governed for all purposes by the laws of the State of New York, without
giving effect to any principles of conflicts of law thereunder. In any action brought to enforce this Agreement, the exclusive jurisdiction
and venue shall be the Business Court of Orange County, Florida, without regard to any conflicts of law.

 

8.03 Interpretation. In case
any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, but this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

8.04 Notice. Any notice required
or permitted to be given hereunder shall be effective when received and shall be sufficient if in writing and if personally delivered
or sent by prepaid cable, telex or registered air mail, return receipt requested, to the party to receive such notice at its address set
forth above or at the end of this Agreement or at such other address as a party may by notice specify to the other. With respect to electronic
mail communications, such communications shall be deemed effective only upon receipt of responsive electronic mail confirmation from the
receiving party to the delivering party that such mail was, in fact, received (read e-mail confirmations satisfy this notice requirement).

 

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8.05 Amendment and Waiver. This
Agreement may not be amended, supplemented or waived except by a writing signed by the party against which such amendment or waiver is
to be enforced. The waiver by any party of a breach of any provision, of this Agreement shall not operate to, or be construed as a waiver
of, any other breach of that provision nor as a waiver of any breach of another provision.

 

8.06 Binding Effect. Subject
to the provisions of Sections 5 and 8.01 hereof, this Agreement shall be binding on, and inure to the benefit of, the successors and assigns
of the parties hereto.

 

8.08 Survival of Rights and Obligations.
All rights and obligations of Executive or the Company arising during the term of this Agreement shall continue to have full force and
effect after the termination of this Agreement unless otherwise provided herein.

 

8.08 Effective Date and Prior Employment
Agreement. Executive and the Company agree that the Effective Date of this Agreement is the date first written at the beginning of
this Agreement. All prior employment agreements between the Company and Executive are hereby terminated and superseded as of the Effective
Date, provided that all rights of the Executive to any compensation or benefits which have accrued under the prior agreements and any
time or vesting accrued in the Company or any of its benefit, pension, profit-sharing, bonus, incentive or other plans shall be carried
over.

 

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

 

	COMPANY:	 	EXECUTIVE:
	Nutriband Inc.	 	 
	a Nevada corporation	 	 
	 	 	 
	By:	/s/ Serguei Melnik	 	/s/ Gareth Sheridan
	Print Name:	Serguei Melnik, 	 	Gareth Sheridan
	Title:	President	 	 

 

    Page 17 of 20

     

    

 

Exhibit A

 

WAIVER AND RELEASE

 

PLEASE READ THIS WAIVER AND RELEASE
CAREFULLY. IT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS UP TO AND INCLUDING THE DATE THAT THIS AGREEMENT AND RELEASE IS EXECUTED
BY THE EXECUTIVE.

 

For
and in consideration of the payments and other benefits due to Gareth Sheridan (the “Executive”) pursuant to the
Employment Agreement (the “Employment Agreement”) entered into as of February 1, 2021 (the “Effective
Date”), between Nutriband Inc. the Executive and for other good and valuable consideration, the Executive irrevocably and
unconditionally releases and forever discharges the Company and each and all of its present and former officers, agents, directors,
managers, Executives, representatives, affiliates, shareholders, members, and each of their successors and assigns, and all persons
acting by, through, under or in concert with it, and in each case individually and in their official capacities (collectively, the
“Released Parties”), from any and all charges, complaints, grievances, claims and liabilities of any kind or nature
whatsoever, known or unknown, suspected or unsuspected (hereinafter referred to as “claim” or “claims”)
which the Executive at any time heretofore had or claimed to have or which the Executive may have or claim to have regarding events
that have occurred up to and including the date of the Executive’s execution of this Release, including, without limitation,
any and all claims related, in any manner, to the Executive’s employment or the termination thereof. In particular, the
Executive understands and agrees that the Executive’s release includes, without limitation, all matters arising under any
federal, state, or local law, including civil rights laws and regulations prohibiting employment discrimination on the basis of
race, color, religion, age, sex, national origin, ancestry, disability, medical condition, veteran status, marital status and sexual
orientation, or any other characteristic protected by federal, state or local law including, but not limited to, claims under Title
VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Older Workers
Benefit Protection Act of 1990, as amended, the Americans with Disabilities Act, the Rehabilitation Act, the Occupational Safety and
Health Act, the Family and Medical Leave Act, the Executive Retirement Income Security Act of 1974 (except as to vested benefits, if
any), the Worker Adjustment and Retraining Notification Act, the Equal Pay Act, the Fair Labor Standards Act, as amended , the
District of Columbia Human Rights Act, as amended, the New York City Administrative Code, as amended, the New York Labor Law, as
amended, the Maryland Human Relations Act, the New York Executive Law, as amended, the District of Columbia Wage Payment and Wage
Collection Law, as amended, the Maryland Wage Payments and Collection Act, as amended, claims arising out of any legal restrictions
on an employer’s right to terminate its employees in any jurisdiction, such as claims for wrongful or constructive discharge, breach
of any express or implied contract, and/or any claims on any basis whatsoever regarding your status, pay position, or title while
employed by the Company, federal and state wage and hour laws, or any common law, public policy, contract (whether oral or written,
express or implied) or tort law, or any other federal, state or local law, regulation, ordinance or rule having any bearing
whatsoever.

 

    Page 18 of 20

     

    

 

The Executive
shall have thirty (30) days from the Date of Termination to sign and return this Release by personal or guaranteed overnight delivery
to the attention of Nutriband Inc. a Nevada corporation. Notwithstanding anything to the contrary in this Release, the Executive can
revoke this Release within seven days after executing the Release by sending written notification to the Company of Executive’s
intent to revoke the Release, and this Release shall not become effective or enforceable until such revocation period has expired. The
Executive’s written notification of the intent to revoke the Release must be sent to Nutriband I., a Nevada corporation by personal
delivery or guaranteed overnight delivery, at:

 

121 S. Orange Ave

Suite 1500

Orlando, FL 32801

 

, within seven (7) days after the Executive executed the Release.

 

The Executive acknowledges that he/she
may have sustained losses that are currently unknown or unsuspected, and that such damages or losses could give rise to additional causes
of action, claims, demands and debts in the future. Nevertheless, the Executive acknowledges that this Release has been agreed upon in
light of this realization and, being fully aware of this situation, the Executive nevertheless intends to release the Company from any
and all such unknown claims, including damages which are unknown or unanticipated. The parties understand the word “claims”
to include all actions, claims, and grievances, whether actual or potential, known or unknown, and specifically but not exclusively all
claims arising out of the Executive’s employment and the termination thereof. All such “claims” (including related attorneys’
fees and costs) are forever barred by this Release and without regard to whether those claims are based on any alleged breach of a duty
arising in a statute, contract, or tort; any alleged unlawful act, including, without limitation, age discrimination; any other claim
or cause of action; and regardless of the forum in which it might be brought.

 

Notwithstanding anything else herein
to the contrary, this Release shall not affect, and the Executive does not waive: (i) rights to indemnification the Executive may have
under (A) applicable law, (B) any other agreement between the Executive and a Released Party and (C) as an insured under any director’s
and officer’s liability insurance policy now or previously in force; (ii) any right the Executive may have to obtain contribution
in the event of the entry of judgment against the Executive as a result of any act or failure to act for which both the Executive and
any of its affiliates or subsidiaries (collectively, the “Affiliated Entities”) are jointly responsible; (iii) the Executive’s
rights to benefits and payments under any stock options, restricted stock, restricted stock units or other incentive plans or under any
retirement plan, welfare benefit plan or other benefit or deferred compensation plan, all of which shall remain in effect in accordance
with the terms and provisions of such benefit and/or incentive plans and any agreements under which such stock options, restricted shares,
restricted stock units or other awards or incentives were granted or benefits were made available; (iv) the Executive’s rights as
a stockholder of any of the Affiliated Entities; or (v) any obligations of the Affiliated Entities under the Employment Agreement.

 

    Page 19 of 20

     

    

 

The
Executive acknowledges and agrees that the Executive: (a) has been given at least 21 days within which to consider this Release and
its ramifications and discuss the terms of this Release with the Company before executing it (and that any modification of this
Release, whether material or immaterial, will not restart or change the original consideration period) and the Executive fully
understands that by signing below the Executive is voluntarily giving up any right which the Executive may have to sue or bring any
other claims against the Released Parties; (b) has been given seven days after returning the Release to the Company to revoke this
Release; (c) has been advised to consult legal counsel regarding the terms of this Release; (d) has carefully read and fully
understands all of the provisions of this Release; (e) knowingly and voluntarily agrees to all of the terms set forth in this
Release; and (f) knowingly and voluntarily intends to be legally bound by the same. The Executive also agrees that to the extent
permitted by law, Executive shall not (i) file a charge or complaint with the Equal Employment Opportunity Commission or Department
of Fair Employment and Housing or any other federal, state or local administrative or regulatory agency, or (ii) participate in any
investigation or proceedings conducted by the Equal Employment Opportunity Commission or Department of Fair Employment and Housing
or any other federal, state or local administrative or regulatory agency. Notwithstanding anything in this Release to the contrary,
nothing in this Release shall be construed to prohibit the Executive from (i) filing a charge or complaint with the Equal Employment
Opportunity Commission or Department of Fair Employment and Housing or any other federal, state or local administrative or
regulatory agency, or (ii) participating in any investigation or proceedings conducted by the Equal Employment Opportunity
Commission or Department of Fair Employment and Housing or any other federal, state or local administrative or regulatory agency if
Executive’s waiver of such rights under the preceding sentence is deemed unenforceable, illegal or against public policy.
However, in such event, the Executive expressly waives the right to any relief of any kind should the Equal Employment Opportunity
Commission or Department of Fair Employment and Housing or any other federal, state or local administrative or regulatory agency
pursue any claim on the Executive’s behalf.

 

This Release is final and binding and may not be changed
or modified except in a writing signed by both parties.

 

	Nutriband Inc.	 	 
	a Nevada corporation	 	 
	 	 	 
	Print Name:	 	 	Title:	 
	Date:	 	 	Date:	 

 

 

Page 20 of 20

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