Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into as of the    1st       day
of January, 2015 (“Effective Date”), by and between OXYSURE SYSTEMS, INC., a corporation duly organized
and existing pursuant to the laws of the state of Delaware, (hereinafter referred to as "OSI" or the “Company”),
and JULIAN T. ROSS (hereinafter referred to as the "Executive").

 

W
I T N E S S E T H:

 

WHEREAS,
the Company desires to have the benefit of the Executive's efforts and services;

 

WHEREAS,
the Company recognizes that circumstances may arise which may cause uncertainty of continued employment of the Executive without
regard to the Executive's competence or past contributions;

 

WHEREAS,
such uncertainties may result in the loss of valuable services of the Executive to the detriment of the Company and its shareholders;

 

WHEREAS,
the Executive will be in a better position to consider the best interests of the Company if the Executive is afforded reasonable
security, as provided in this Agreement, against altered conditions of employment which may result from situations now unknown,
and

 

NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties hereto
mutually covenant and agree as follows:

 

1.          
 DEFINITIONS.  Whenever used in this Agreement, the following terms shall have the meanings set forth below:

 

	 	(a)	"Accrued
    Benefits" shall mean the amount payable not later than fifteen (15) days following an applicable Termination Date and
    which shall be equal to the sum of the following amounts:

 

	 	(i)  	All
    salary earned or accrued through the Termination Date;

 

	 	(ii)  	Reimbursement
    for any and all moneys advanced in connection with the Executive's employment for pre-approved, reasonable and necessary expenses
    incurred by the Executive through the Termination Date;

 

	 	(iii)  	Any
    and all other cash benefits previously earned through the Termination Date and deferred at the election of the Executive or
    pursuant to any deferred compensation plans then in effect;

 

	 	(iv)  	The
    full amount of any stated bonus payable to the Executive with respect to the year in which termination occurs provided that
    the events necessary to have earned said bonus have been achieved; and

 

	 	(v)  	All
    other payments and benefits to which the Executive may be entitled under the terms of any benefit plan of the Company.

 

	 	(b) 	"Act"
    shall mean the Securities Exchange Act of 1934;

 

	 	(c)	"Affiliate"
    shall have the same meaning as given to that term in Rule 12b-2 of Regulation 12B promulgated under the Act;

  

	 	(d)	"Base
    Period Income" shall be an amount equal to the Executive's annualized compensation calculated pursuant to section 6 herein
    for the initial term of this agreement;

 

	 	(e) 	"Board"
    shall mean the Board of Directors of the Company;

 

    	1

    	 

    

 

	 	(f)	"Cause"
    shall mean any of the following:

 

	 	i.  	The
    engaging by the Executive in illegal or fraudulent conduct, which conduct is proven to be materially and demonstrably injurious
    to the Company as determined by a vote of the majority of the Board members then in office; provided, however that the Board
    has given the Executive advance notice of such intent to terminate for Cause including the reasons therefor, together with
    a reasonable opportunity for the Executive to appear with counsel before the Board and to reply to such notice.

 

	 	ii.  	A
    conviction of a felony, which the Board determines has a significant adverse impact on the Company in the conduct of the Company’s
    business;

 

	 	iii.  	Willful
    or grossly negligent failure by Executive to perform his duties in a manner consistent with the Company’s best interests;
    or

 

	 	iv.  	Willful
    violation by the Executive of the Company’s policies and procedures.

 

	 	(g) 	"Code"
    shall mean the Internal Revenue Code of 1986, as amended from time to time;

 

	 	(h)	“Consolidated
    Group” means and includes the Company, all of OSI’s current or future subsidiaries and any other corporations
    or divisions thereof, which are hereafter acquired by or consolidated with the OSI and which collectively carry on the business
    of OSI, the Company or any part thereof.;

 

	 	(i) 	"Notice
    of Termination" shall mean the notice described in Section 9 herein;

 

	 	(j)	"Person"
    shall mean any individual, partnership, joint venture, association, trust, corporation or other entity, other than an Executive
    benefit plan of the Company or an entity organized, appointed or established pursuant to the terms of any such benefit plan;

 

	 	(k)	"Termination
    Date" shall mean, except as otherwise provided in Section 10 herein,

 

	 	(i)  	The
    Executive's date of death;

 

	 	(ii)  	Thirty
    (30) days after the delivery of the Notice of Termination if the Executive's employment is terminated by the Executive voluntarily;
    and

 

	 	(iii)  	Sixty
    (60) days after the delivery of the Notice of Termination if the Executive's employment is terminated by the Company for any
    reason other than Cause.

 

2.           EMPLOYMENT.

 

The
Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company, on the terms and conditions
set forth herein.

 

3.           TERM.

 

The
employment of the Executive by the Company pursuant to the provisions of this Agreement shall commence on the Effective Date and
end on the One Thousand Ninety Fifth (1,095th) day thereafter, unless sooner terminated as hereinafter provided.

 

    	2

    	 

    

 

4.            POSITIONS
AND DUTIES.

 

The
Executive shall hold the position of Chairman & CEO of the Company. The Executive shall also perform such
duties as the Board shall direct and shall serve in such additional capacities as set forth in Section 7 herein.  In
connection with the foregoing positions, the Executive shall have such duties, responsibilities and authority as may from time
to time be assigned to the Executive by the Board.  The Executive shall devote substantially all of the Executive's
working time and efforts to the business and affairs of the Company.

 

5.            PLACE
OF PERFORMANCE.

 

In
connection with the Executive's employment by the Company, the Executive shall be based at the principal Executive offices of
the Company in North Dallas, Texas, except for where travel is required, or where otherwise required by the operations of the
Company.

 

6.            COMPENSATION
AND RELATED MATTERS.

 

	 	(a)	Commencing
    on the Effective Date hereof, and during the Period of Employment, the Company shall compensate the Executive
    in accordance with Exhibit A hereto. The Company will also issue to the Executive options as to the Common
    Stock of the Company as outlined in Exhibit A hereto.

 

	 	(b)	During
    the term of the Executive's employment hereunder, the Executive shall be entitled to receive prompt reimbursement for all
    pre-approved, reasonable expenses incurred by the Executive in performing services hereunder, including all business travel
    and reasonable business expenses while away from home on business or at the request of and in the service of the Company,
    provided that such expenses are incurred and accounted for in accordance with the policies and procedures presently established
    by the Company and OSI or as may be changed from time to time.

 

	 	(c) 	The
    Executive shall also be entitled to all other benefits provided by the Company to its general Executives.

 

7.            OFFICES.

 

The
Executive agrees to serve without additional compensation, if elected or appointed thereto, as a member of the Board of Directors
of the Company, or any subsidiary; provided, however, that the Executive is indemnified for serving in any and all such capacities
on a basis no less favorable than is currently provided in the Company's bylaws, or otherwise.

 

8.            (a)
TERMINATION FOR CAUSE.

 

If
the Executive's employment with the Company is terminated by the Company for Cause, subject to the procedures set forth in Section
9 herein, the Executive shall be entitled to receive the Executive's Accrued Benefits as of the Termination Date.  The
Executive shall not be entitled to the receipt of any Termination Payment.

 

                (b)
TERMINATION NOT FOR CAUSE.

 

If
the Company terminates the Executive for any reason other than Cause, then the Executive shall be entitled to a Termination Payment
equal to Twelve Months Base Salary. Base Salary refers to Base Salary as defined in Exhibit A hereto.

 

    	3

    	 

    

 

9.            TERMINATION NOTICE AND PROCEDURE.

 

Any
termination by the Company or the Executive of the Executive's employment during the Employment Period shall be communicated by
written Notice of Termination to the Executive, if such Notice of Termination is delivered by the Company, and to the Company,
of such Notice of Termination is delivered by the Executive, all in accordance with the following procedures:

 

	 	(a)	The
    Notice of Termination shall indicate the specific termination provision in this Agreement relied upon and shall set forth
    in reasonable detail the facts and circumstances alleged to provide a basis for termination.

 

10.          NONDISCLOSURE
OF PROPRIETARY INFORMATION.

 

	 	(a)	For
    the purposes of this Paragraph 11, including all subparagraphs, “the Company” shall mean the Company or OSI.  Recognizing
    that the Company is presently engaged, and may hereafter continue to be engaged, in the research and development of processes,
    the obtainment and sale of products or performance of services, which involve experimental and inventive work and that the
    success of its business depends upon the protection of the processes, products and services by patent, copyright or by secrecy
    and that the Executive has had, or during the course of his engagement may have, access to Proprietary Information, as hereinafter
    defined, of the Company or other information and data of a secret or proprietary nature of the Company which the Company wishes
    to keep confidential and the Executive has furnished, or during the course of his engagement may furnish, such information
    to the Company, the Executive agrees that (a) "Proprietary Information" shall mean any and all methods, inventions,
    improvements or discoveries, whether or not patentable or copyrightable, and any other information of a similar nature related
    to the business of the Company disclosed to the Executive or otherwise made known to him as a consequence  of or
    through his engagement by the Company (including information originated by the Executive) in any technological area previously
    developed by the Company or developed, engaged in, or researched, by the Company during the term of the Executive's engagement,
    including, but not limited to, trade secrets, processes, products, formulae, apparatus, techniques, know-how, marketing plans,
    data, improvements, strategies, forecasts, customer lists, and technical requirements of customers, unless such information
    is in the public domain to such an extent as to be readily available to competitors.

 

	 	(b)	The
    Executive acknowledges that the Company has exclusive property rights to all Proprietary Information and the Executive hereby
    assigns all rights he might otherwise possess in any Proprietary Information to the Company. Except as required in the performance
    of his duties to the Company or otherwise as required by law, the Executive will not at any time during or after the term
    of his engagement, which term shall include any time in which the Executive may be retained by the Company as a consultant,
    directly or indirectly use, communicate, disclose or disseminate any Proprietary Information or any other information of a
    secret, proprietary, confidential or generally undisclosed nature relating to the Company, its products, customers, processes
    and services, including information relating to testing, research, development, manufacturing, marketing and selling.

 

	 	(c)	All
    documents, records, notebooks, notes, memoranda and similar repositories of, or containing, Proprietary Information or any
    other information of a secret, proprietary, confidential or generally undisclosed nature relating to the Company or its operations
    and activities made or compiled by the Executive at any time or made available to him prior to or during the term of his engagement
    by the Company, including any and all copies thereof, shall be the property of the Company, shall be held by him in trust
    solely for the benefit of the Company, and shall be delivered to the Company by him on the termination of his engagement or
    at any other time on the  request of the Company.

 

	 	(d)	The
    Executive will not assert any rights under any inventions, copyrights, discoveries, concepts or ideas, or improvements thereof,
    or know-how related thereto, as having been made or acquired by him prior to his being engaged by the Company or during the
    term of his engagement if based on or otherwise related to Proprietary Information.

 

    	4

    	 

    

 

11.          ASSIGNMENT
OF INVENTIONS.

 

	 	(a)	For
    purposes of this Paragraph 12, the term "Inventions" shall mean discoveries, concepts, and ideas, whether patentable
    or copyrightable or not, including but not limited to improvements, know-how, data, processes, methods, formulae, and techniques,
    as well as improvements thereof or know-how related thereto, concerning any past, present or prospective activities of the
    Company which the Executive makes, discovers or conceives (whether or not during the hours of his engagement or with the use
    of the Company's facilities, materials or personnel), either solely or jointly with others during his engagement by the Company
    or any affiliate and, if based on or related to Proprietary Information, at any time after termination of such engagement.  All
    inventions shall be the sole property of the Company, and Executive agrees to perform the provisions of this paragraph 12
    with respect thereto without the payment by the Company of any royalty or any consideration therefor other than the regular
    compensation paid to the Executive in the capacity of an Executive or consultants;

 

	 	(b)	The
    Executive shall maintain written notebooks in which he shall set forth, on a current basis, information as to all Inventions,
    describing in detail the procedures employed and the results achieved as well as information as to any studies or research
    projects undertaken on the Company's behalf.  The written notebooks shall at all times be the property of the Company
    and shall be surrendered to the Company upon termination of his engagement or, upon request of the Company, at any time prior
    thereto.

 

	 	(c)	The
    Executive shall apply, at the Company's request and expense, for United States and foreign letters patent or copyrights as
    the Company shall desire.

 

	 	(d)	The
    Executive hereby assigns to the Company all of his rights to such Inventions, and to applications for United States and/or
    foreign letters patent or copyrights and to United States and/or foreign letters patent or copyrights granted upon such Inventions.

 

	 	(e)	The
    Executive shall acknowledge and deliver promptly to the Company, without charge to the Company, but at its expense, such written
    instruments (including applications and assignments) and do such other acts, such as giving testimony in support of the Executive's
    inventorship, as may be necessary in the opinion of the Company to obtain, maintain, extend, reissue and enforce United States
    and/or foreign letters patent and copyrights relating to the Inventions and to vest the entire right and title thereto in
    the Company or its nominee.  The Executive acknowledges and agrees that any copyright developed or conceived of
    by the Executive during the term of Executive's employment which is related to the business of the Company shall be a "work
    for hire" under the copyright law of the United States and other applicable jurisdictions.

 

	 	(f)	The
    Executive represents that his performance of all the terms of this Agreement and as an Executive of or consultant to the Company
    does not and will not breach any trust prior to his employment by the Company.  The Executive agrees not to enter
    into any agreement either written or oral in conflict herewith and represents and agrees that he has not brought and will
    not bring with him to the Company or use in the performance of his responsibilities at the Company any materials or documents
    of a former  employer which are not generally available to the public, unless he has obtained written authorization
    from the former employer for their possession and use, a copy of which has been provided to the Company.

 

	 	(g)	No
    provisions of this Paragraph shall be deemed to limit the restrictions applicable to the Executive under Paragraph 11.

 

12.          SHOP
RIGHTS.

 

The
Company shall also have the royalty-free right to use in its business, and to make, use and sell products, processes and/or services
derived from any inventions, discoveries, concepts and ideas, whether or not patentable, including but not limited to processes,
methods, formulas and techniques, as well as improvements thereof or know how related thereto, which are not within the scope
of Inventions as defined in Paragraph 12 but which are conceived or made by the Executive during the period he is engaged by the
Company or with the use or assistance of the Company's facilities, materials or personnel.

 

    	5

    	 

    

 

13.          NON-COMPETE.

 

The
Executive hereby agrees that during the term of this Agreement and for twelve months (12) months following a termination for any
reason, unless otherwise specified in this agreement, shall not:

 

	 	(a)	Within
    any jurisdiction or marketing area in the United States in which the Company or any subsidiary thereof is doing business,
    own, manage, operate or control any business of the engaged in catalytic oxygen generation.  For purposes of this
    paragraph, ownership of securities of not in excess of five percent (5%) of any class of securities of a public company shall
    not be considered to be competition with OSI, or any subsidiary thereof; or

 

	 	(b)	Within
    any jurisdiction or marketing area in the United States in which the Consolidated Group or any member thereof is doing business,
    act as, or become employed as, an officer, director, Executive, consultant or agent of any business engaged in catalytic oxygen
    generation; or

 

	 	(c)	Solicit
    any business that is the same as that of the Consolidated Group for, or sell any products involving catalytic oxygen to, any
    company in the United States, which is, as of the date hereof, a customer or client of the Consolidated Group or any of its
    members, or was such a customer or client thereof within two years prior to the date of this Agreement; or

 

	 	(d)	Solicit
    the employment of, or hire any full time employee employed by the Company or its subsidiaries as of the date of termination
    of this Agreement.

 

Restrictions
Reasonable. Executive represents and agrees that the provisions hereof are reasonable in order to protect the business and proprietary
interests of the Consolidated Group both as to the duration of time and any geographic limitation therein provided, based on the
present business, plans and prospects of the Consolidated Group and the confidential and proprietary information to which Executive
has had and will have access, and that compliance with the provisions hereof will not be unduly burdensome
on him.  Executive represents that prior to executing and delivering this agreement, he has reviewed the provisions
of this agreement with his attorney.

 

14.          REMEDIES
AND INJUNCTIVE RELIEF

 

The
Executive hereby acknowledges and agrees that a breach or threatened breach by him or the non-performance of certain of the covenants
or promises contained herein by him may cause serious and irreparable harm to the Consolidated Group and that any remedy at law,
including any award of money damages, may be inadequate.  Accordingly, Executive agrees and accepts that a threatened
breach, a breach or a violation of the provisions of this agreement by him shall entitle the Company, as a matter of right, to
an injunction issued by any court of competent jurisdiction, restraining any further or continued breach or violation of the provisions
of this agreement.  Such right to an injunction shall be cumulative and in addition to, and not in lieu of, any other
remedies to which the Company may be entitled. The Executive specifically acknowledges that the requirement of the Consolidated
Group or any member thereof to post a bond for the issuance of a temporary restraining order or temporary injunction should be
waived.

 

15.          ATTORNEY’S
FEES.

 

In
the event that either party hereunder institutes any legal proceedings in connection with its rights or obligations under this
Agreement, the prevailing party in such proceeding shall be entitled to recover from the other party, all costs incurred in connection
with such proceeding, including reasonable attorneys' fees, together with interest thereon from the date of demand at the rate
of twelve percent (12%) per annum.

 

16.          SUCCESSORS.

 

This
Agreement and all rights of the Executive shall inure to the benefit of and be enforceable by the Executive's personal or legal
representatives, estates, executors, administrators, heirs and beneficiaries. In the event of the Executive's death, all amounts
payable to the Executive under this Agreement shall be paid to the  Executive's surviving spouse, or the Executive's
estate if the Executive  dies without a surviving spouse.  This Agreement shall inure to the benefit of, be
binding upon and be enforceable by, any successor, surviving or resulting corporation or other entity to which all or substantially
all of the business and assets of the Company shall be transferred whether by merger, consolidation, transfer or sale.

 

    	6

    	 

    

 

17.          ENFORCEMENT.

 

The
provisions of this Agreement shall be regarded as divisible, and if any of said provisions or any part hereof are declared invalid
or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remainder of such provisions or
parts hereof and the applicability thereof shall not be affected thereby.

 

18.          AMENDMENT
OR TERMINATION.

 

This
Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by written instrument
signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof.  Nor shall any waiver on the part of any
party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude
any further exercise thereof or the exercise of any other such right, power or privilege. This Agreement replaces that certain
fifth amended employment agreement between the Company and Executive dated January 15, 2010 and ending on January 15, 2015.

 

19.          SEVERABILITY.

 

The
provisions of paragraphs 11, 12, 13 and 14 shall survive termination of this Agreement.

 

20.          ENTIRE
AGREEMENT.

 

This
Agreement sets forth the entire agreement between the Executive and the Company with respect to the subject matter hereof, and
supersedes all prior oral or written agreements, negotiations, commitments and understandings with respect thereto.  Each
party to this Agreement acknowledges that no representations, inducements, or agreements, oral or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and no other agreement, statement or promise
not contained in this Agreement shall be valid or binding.  The parties hereto have had an opportunity to consult with
their respective attorneys concerning the meaning and the import of this Agreement and each has read this Agreement, as signified
by his/their signatures below, and are executing the same for the purposes and consideration herein expressed.

 

21.          GOVERNING
LAW.

 

This
Agreement and the Executive's and Company's respective rights and obligations hereunder shall be governed by and construed in
accordance with the laws of the State of Texas applicable to agreements made and to be performed entirely within such State without
giving effect to the provisions, principles, or policies thereof relating to choice or conflict laws, except to the extent that
Federal law may apply.

 

22.          NOTICE.

 

Any
notice or other communication required or permitted hereunder shall be deemed given if in writing and delivered personally, or
sent by certified, registered or express mail, postage prepaid.  Any such notice shall be deemed given when so delivered
personally or sent by overnight air courier or, if mailed, two days after the date of deposit in the United States mails, as follows:

 

if
to OSI:

 

Board
of Directors

OxySure® Systems,
Inc.

10880
John W. Elliott Road

Suite
600

Frisco,
TX  75033

 

if
to the Executive:

 

Mr.
Julian T. Ross

6912
Stony Hill Road

McKinney,
TX 75070

 

    	7

    	 

    

 

Any
party may be given notice in accordance with this Section to the other parties designate another address or person for receipt
of notices by such party hereunder. All notices must require the signature of an accepting party.

 

23.          BINDING
EFFECT: NO ASSIGNMENT.

 

This
Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and legal representatives.  This
Agreement and any rights hereunder are not assignable except by operation of law or by OSI to any of its subsidiaries or affiliates.  Any
other purported assignment shall be null and void.

 

24.          VARIATIONS
IN PRONOUNS.

 

Wherever
the context shall so require, all words herein in the male gender shall be deemed to include the female or neuter gender and vice
versa, all singular words shall include the plural, and all plural words shall include the singular.  All pronouns and
any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.

 

25.          REPRESENTATION
BY COUNSEL

 

Intentionally
omitted.

 

26.          PRESUMPTION
AGAINST SCRIVENER

 

Each
party waives the presumption that this Agreement is presumed to be in favor of the party which did not prepare it, in case of
a dispute as to interpretation.

 

27.          CAPACITY

 

Each
party represents and warrants that he has the authority to enter into this Agreement either on his own behalf or in an official
capacity on behalf of a corporate party.

 

28.          OTHER
INSTRUMENTS

 

The
Parties hereto covenant and agree that they will execute such other and further instruments and documents as are or may become
necessary or convenient to effectuate and carry out the business obligations and duties created by this Agreement.

 

    	8

    	 

    

 

29.          NO
WAIVER.

 

No
waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this
Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same time or any prior or subsequent time.

 

30.          HEADINGS.

 

The
headings used in this Agreement are for administrative purposes only and do not constitute substantive matter to be considered
in construing the terms and shall not affect the interpretation of this Agreement.

 

31.          COUNTERPARTS.

 

This
Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute one and the same instrument.  Each counterpart may
consist of a number of copies hereof each signed by less than all, but together signed by all of the parties hereto.

 

IN
WITNESS WHEREOF, the Company, has caused this Agreement to be executed by its duly authorized officer, and the Executive has executed
this Agreement, on the date and year first above written.

 

OXYSURE
SYSTEMS, INC.

 

	/s/
    Vicki Jones	 
	Ms.
    Vicki Jones, Director	 
	 	 
	/s/
    Jeremy M. Jones	 
	Mr.
    Jeremy M. Jones, Director	 
	 	 
	/s/
    Julian T. Ross	 
	Mr.
    Julian T. Ross, Executive	 

 

    	9

    	 

    

 

Exhibit
A

 

	To
        the Employment Agreement by and between OxySure Systems, Inc. and

        Julian
        T. Ross

        Dated
        January 1, 2015

 

	(1)	 Stock
    Options, Restricted Stock Units

 

(a)
Stock Options: Subject to SEC regulations and the provisions of (1) (a)-(b) herein, the Executive shall be issued with Options
(the “Option”) as to the Common Stock of OxySure Systems, Inc. (“OSI” or the “Company”) pursuant
to the Company’s Voting Stock Option Plan, which Options shall become vested and exercisable in accordance with the following
table.

 

	Issue Condition	 	Option

Value	 	 	Exercise

Price	 
	Annual Option Value; Vesting Monthly	 	$	200,000	 	 	$	market	 

 

Where/if
applicable, option grants will be prorated for partial periods.

 

(b)
Restricted Stock Units: (i) Base Restricted Stock Units (“RSUs”): $100,000 per year; Up to an additional $200,000
per year at the Board’s sole and absolute discretion. (ii) Performance Restricted Stock Units: 150,000 units subject to
achieving both positive net earnings and positive EBITDA for a 6 month period (one time issuance).

 

(c)
Acceleration Upon Change of Control: The Executive shall enjoy full acceleration of all unvested Options and RSUs hereunder
if terminated by the acquirer upon a Change of Control event (as described in the Company’s Voting Stock Option Plan).

 

(b)
Dilution: There shall be no upward adjustments made to Options granted hereunder upon future stock issuances or option issuances
by the Company.

 

If
any of these terms outlined in this §1 conflict with any terms in any other agreements, then the terms outlined in this Exhibit
A shall prevail.

 

	(2)	 Salary,
    Bonus and Benefits

 

(a) Base
Salary: Base Salary shall be $275,000 per annum. Escalating at a percentage set at the end of each year by the Board.
Base Salary will increase to $300,000 upon closing of a 20% accretive acquisition.

 

(b) Annual
Bonus: 40% of Base Salary, provided that:

 

a.
30% of Bonus is subject to achievement of MBOs determined by the Board

b.
70% of Bonus is subject to achievement of financial performance metrics set by the Board (e.g., Revenue or Revenue Growth, Stock
Price, and so forth ).

 

(c) Executive
Benefits:

 

Participation
in OSI benefits established for senior management from time to time, such as for example, 401(k), health insurance, key man insurance,
etc. PTO shall be 4 weeks per annum.

 

(d) Travel:
All pre-approved travel expenses reasonably incurred are reimbursed.

 

(e)
Severance Provisions: If the Executive is terminated subsequent to the Effective Date by the Company for anything other than
cause, then the Executive shall receive a severance (“Severance”) in an amount equal to 12 months’ Base
Salary.

 

(f)
Reimbursement of Salary Relinquishment: A one-time payment of $135,000 as recoupment of 3 quarters of salary relinquishment,
subject to free cash availability.

 

 

10EX-10.44

 Exhibit 10.44 

PURCHASE AGREEMENT 

THIS PURCHASE AGREEMENT (“Agreement”) is made as of the 20th day of January, 2015 by and among Aldeyra Therapeutics, Inc., a
Delaware corporation (the “Company”), and the Investors set forth on the signature pages affixed hereto (each an “Investor” and collectively the “Investors”). 

Recitals 
 A. The Company
and the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended; and 
 B. The Investors wish to purchase, severally but not
jointly, from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions stated in this Agreement, (i) an aggregate of 211,528 shares of the Company’s Common Stock, par value $0.001 per share
(together with any securities into which such shares may, following Closing, be reclassified, whether by merger, charter amendment or otherwise, the “Common Stock”), at a purchase price of $9.33 per share (which represents the closing
consolidated bid price per share of Common Stock on the trading day immediately preceding the execution of this Agreement), and (ii) warrants to purchase an aggregate of 211,528 shares of Common Stock (subject to adjustment) at an exercise
price of $9.50 per share (subject to adjustment) in the form attached hereto as Exhibit A, at a purchase price of $0.125 per share of Common Stock subject to the warrants (the “Warrants”); and 

C. Contemporaneous with the sale of the Common Stock and Warrants, the parties hereto will execute and deliver a Registration Rights Agreement,
in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which the Company will agree to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, and applicable state securities laws. 
 In consideration of the mutual promises made herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Definitions. In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the
following terms shall have the meanings set forth below: 
 “Affiliate” means, with respect to any Person, any other Person
which directly or indirectly through one or more intermediaries Controls, is controlled by, or is under common Control with, such Person. 

 “Business Day” means a day, other than a Saturday or Sunday, on which banks in
New York City are open for the general transaction of business. 
 “Common Stock Equivalents” means any securities of the
Company or its Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or
exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 
 “Company’s Knowledge” means
the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company, after reasonable due inquiry. 

“Confidential Information” means trade secrets, confidential information and know-how (including but not limited to ideas,
formulae, compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications, support documentation, drawings, specifications, designs, business and marketing plans, and
customer and supplier lists and related information). 
 “Control” (including the terms “controlling”,
“controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise. 
 “Effective Date” means the date on which the initial Registration Statement is
declared effective by the SEC. 
 “Insider” means each director, executive officer, other officer of the Company
participating in the offering, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, and any promoter connected with the Company in any capacity on the date hereof.

 “Intellectual Property” means all of the following: (i) patents, patent applications, patent disclosures and
inventions (whether or not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and Internet domain names, together with all goodwill associated with each
of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software (including but not limited to data, data bases and
documentation). 
 “Material Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results
of operations, financial condition or business of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to perform its obligations under the Transaction Documents. 

“Material Contract” means any contract, instrument or other agreement to which the Company or any of its Subsidiaries is a
party or by which it is bound which is material to the business of the Company and its Subsidiaries, taken as a whole, including those that have been filed or were required to have been filed as an exhibit to the SEC Filings pursuant to
Item 601(b)(4) or Item 601(b)(10) of Regulation S-K. 

  
 2 

 “Person” means an individual, corporation, partnership, limited liability
company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 

“Purchase Price” means One Million Nine Hundred Ninety Nine Thousand Nine Hundred Ninety Seven Dollars and Twenty Four Cents
($1,999,997.24). 
 “Registration Statement” has the meaning set forth in the Registration Rights Agreement. 

“Required Investors” means (i) prior to Closing the Investors who, together with their Affiliates, have agreed to
purchase a majority of the Securities to be sold hereunder and (ii) from and after the Closing the Investors beneficially owning (calculated in accordance with Rule 13d-3 under the 1934 Act without giving effect to any limitation on exercise of
the Warrants set forth therein) a majority of the aggregate outstanding Shares and Warrant Shares. 
 “SEC Filings” has the
meaning set forth in Section 4.6. 
 “Securities” means the Shares, the Warrants and the Warrant Shares. 

“Shares” means the shares of Common Stock being purchased by the Investors hereunder. 

“Subsidiary” of any Person means another Person, an amount of the voting securities, other voting ownership or voting
partnership interests of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by
such first Person. 
 “Transaction Documents” means this Agreement, the Warrants and the Registration Rights Agreement.

 “Warrant Shares” means the shares of Common Stock issuable upon the exercise of the Warrants. 

“1933 Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated
thereunder. 
 “1934 Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules
and regulations promulgated thereunder. 

  
 3 

 2. Purchase and Sale of the Shares and Warrants. Subject to the terms and conditions of
this Agreement, on the Closing Date, each of the Investors shall severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, the Shares and Warrants in the respective amounts set forth opposite the Investors’
names on the signature pages attached hereto in exchange for the Purchase Price as specified in Section 3 below. 
 3. Closing.
Upon confirmation that the other conditions to closing specified herein have been satisfied or duly waived by the Investors, (i) the Company shall deliver to each Investor a certificate or certificates, registered in such name or names as such
Investor may designate, representing the Shares and Warrants purchased by such Investor, and (ii) such Investor shall cause a wire transfer in same day funds to be sent to the account of the Company as instructed in writing by the Company, in
an amount representing such Investor’s pro rata portion of the Purchase Price as set forth on the signature pages to this Agreement. The closing of the purchase and sale of the Shares and Warrants (the “Closing”) shall take place at
the offices of Lowenstein Sandler LLP, 1251 Avenue of the Americas, 18th Floor, New York, New York 10020, or at such other location and on such other date as the Company and the Investors shall mutually agree. The date on which the Closing occurs is
hereinafter referred to as the “Closing Date.” 
 4. Representations and Warranties of the Company. The Company hereby
represents and warrants to the Investors that, except as set forth in the schedules delivered herewith (collectively, the “Disclosure Schedules”): 

4. 1 Organization, Good Standing and Qualification. Each of the Company and its Subsidiaries is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own or lease its properties. Each of the Company and its
Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing necessary unless the
failure to so qualify has not had and would not reasonably be expected to have a Material Adverse Effect. The Company has no Subsidiaries. 

4.2 Authorization. The Company has full power and authority and has taken or will take prior to the Closing, all requisite action on the
part of the Company, its officers, directors and stockholders necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations of the Company hereunder
or thereunder, and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Securities. The Transaction Documents constitute the legal, valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally and to general equitable principles
and except as rights to indemnity and contribution may be limited by state or federal securities laws or public policy. 

  
 4 

 4.3 Capitalization. Schedule 4.3 sets forth as of the date hereof (a) the
authorized capital stock of the Company; (b) the number of shares of capital stock issued and outstanding; (c) the number of shares of capital stock issuable pursuant to the Company’s stock plans; and (d) the number of shares of
capital stock issuable and reserved for issuance pursuant to securities (other than the Shares and the Warrants) exercisable for, or convertible into or exchangeable for any shares of capital stock of the Company. All of the issued and outstanding
shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights and were issued in compliance with applicable state and federal securities law and any rights of
third parties. Except as described on Schedule 4.3, all of the issued and outstanding shares of capital stock of each of its Subsidiaries have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive
rights, were issued in full compliance with applicable state and federal securities law and any rights of third parties and are owned by the Company, beneficially and of record, subject to no lien, encumbrance or other adverse claim. Except as
described on Schedule 4.3, no Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company. Except as described on Schedule 4.3 and except for the Registration Rights
Agreement, there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of
any kind and except as contemplated by this Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind. Except as described on Schedule 4.3, there are no
voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of the securityholders of the Company relating to the securities of the Company held by them. Except as
described on Schedule 4.3 and except for the Registration Rights Agreement, no Person has the right to require the Company to register any securities of the Company under the 1933 Act, whether on a demand basis or in connection with the
registration of securities of the Company for its own account or for the account of any other Person. 
 Except as described on Schedule
4.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person (other than the Investors) and will not result in the adjustment of the exercise,
conversion, exchange or reset price of any outstanding security. 
 Except as described on Schedule 4.3, the Company does not have
outstanding stockholder purchase rights or “poison pill” or any similar arrangement in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence of certain events. 

4.4 Valid Issuance. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be
validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those created by the Investors), except for restrictions on transfer set forth in the Transaction Documents or imposed by
applicable securities laws. The Warrants have been duly and validly authorized. Upon the due exercise of the Warrants, including the payment of the exercise price or other exercise consideration thereunder, the Warrant Shares will be validly issued,
fully paid 

  
 5 

 
and non-assessable free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws and
except for those created by the Investors. The Company has reserved a sufficient number of shares of Common Stock for issuance upon the exercise of the Warrants. 

4.5 Consents. The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and sale of
the Securities require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant
to applicable state and federal securities laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy of the representations and warranties of each Investor set forth in Section 5 hereof, the Company
has taken all action necessary to exempt from the registration requirements of the Securities Act (i) the issuance and sale of the Securities, and (ii) the issuance of the Warrant Shares upon due exercise of the Warrants. The Company has
taken all action reasonably necessary to exempt the Investors from, the provisions of any stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business combination or control share law or statute binding on the
Company or to which the Company or any of its assets and properties may be subject and any provision of the Company’s Certificate of Incorporation or Bylaws that is or would reasonably be expected to become applicable to the Investors as a
result of the transactions contemplated hereby, including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities by the Investors or the exercise of any right granted to the Investors pursuant
to this Agreement or the other Transaction Documents. 
 4.6 Delivery of SEC Filings; Business. The Company has made available to the
Investors through the EDGAR system, true and complete copies of the Company’s Registration Statement on Form S-1 (File No. 333-193204) (the “S-1”), and all other reports filed by the Company pursuant to the 1934 Act since the
filing of the S-1 and through the date hereof (collectively with the S-1, each as amended prior to the date hereof, the “SEC Filings”). The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period
and have been timely filed as required pursuant to the 1934 Act. The Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings contain a complete and accurate description
in all material respects of the business of the Company and its Subsidiaries, taken as a whole. 
 4.7 Use of Proceeds. The net
proceeds of the sale of the Shares and the Warrants hereunder shall be used by the Company for working capital and general corporate purposes. 

4.8 No Material Adverse Change. Since December 31, 2013, except as identified and described in the SEC Filings or as described on
Schedule 4.8, there has not been: 
 (i) any change in the consolidated assets, liabilities, financial condition or operating results
of the Company from that reflected in the financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, except for changes in the ordinary course of business which have not had and
would not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; 

  
 6 

 (ii) any declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or repurchase of any securities of the Company; 
 (iii) any
material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries; 

(iv) any waiver, not in the ordinary course of business, by the Company or any of its Subsidiaries of a material right or of a material debt
owed to it; 
 (v) any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or its
Subsidiaries, except in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results or business of the Company and its Subsidiaries taken as a whole (as such business is presently
conducted and as it is presently proposed to be conducted); 
 (vi) any change or amendment to the Company’s Certificate of
Incorporation or Bylaws, or material change to, or waiver of any material right under, any material contract or arrangement by which the Company or any of its Subsidiaries is bound or to which any of their respective assets or properties is subject;

 (vii) any material labor difficulties or labor union organizing activities with respect to employees of the Company or any of its
Subsidiaries; 
 (viii) any material transaction entered into by the Company or its Subsidiaries other than in the ordinary course of
business; 
 (ix) the loss of the services of any key employee, or material change in the composition or duties of the senior management of
the Company or its Subsidiaries; or 
 (x) any other event or condition of any character that has had or would reasonably be expected to
have a Material Adverse Effect. 
 4.9 SEC Filings. 

(a) At the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the 1934 Act and did
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading. 

  
 7 

 (b) Each registration statement and any amendment thereto filed by the Company since
January 1, 2014 pursuant to the 1933 Act and the rules and regulations thereunder, as of the date such statement or amendment became effective, complied as to form in all material respects with the 1933 Act and did not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein not misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act, as of its
issue date and as of the closing of any sale of securities pursuant thereto did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading. 
 4.10 No Conflict, Breach, Violation or
Default. The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities will not (i) conflict with or result in a material breach or violation of (a) any of the terms and
provisions of, or constitute a default under the Company’s Articles of Incorporation or the Company’s Bylaws, both as in effect on the date hereof (true and complete copies of which have been made available to the Investors through the
EDGAR system), or (b) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties, or
(ii) material conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, encumbrance or other adverse claim upon any of the properties or
assets of the Company or any Subsidiary or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract. 

4.11 Tax Matters. The Company and each Subsidiary of the Company has timely prepared and filed all material tax returns required to have
been filed by the Company or such Subsidiary with all appropriate governmental agencies and timely paid all taxes shown thereon or otherwise owed by it. The charges, accruals and reserves on the books of the Company in respect of taxes for all
fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary of the Company nor, to the Company’s Knowledge, any basis for the assessment of any additional taxes,
penalties or interest for any fiscal period or audits by any federal, state or local taxing authority except for any assessment which is not material to the Company and its Subsidiaries, taken as a whole. All taxes and other assessments and levies
that the Company or any Subsidiary of the Company is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due. There are no tax liens or claims pending
or, to the Company’s Knowledge, threatened against the Company or any Subsidiary of the Company or any of their respective assets or property. Except as described on Schedule 4.11, there are no outstanding tax sharing agreements or other
such arrangements between the Company and any Subsidiary of the Company or other corporation or entity. 
 4.12 Title to Properties.
Except as disclosed in the SEC Filings, the Company and each Subsidiary of the Company has good and marketable title to all real properties and all other properties and assets owned by it, in each case free from liens, encumbrances and defects that
would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except as disclosed in the SEC Filings, the Company and each Subsidiary of the Company holds any leased real or
personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them. 

  
 8 

 4.13 Certificates, Authorities and Permits. The Company and each Subsidiary of the Company
possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, the lack of which would not reasonably be expected to result in a Material Adverse
Effect, individually or in the aggregate, and neither the Company nor any Subsidiary of the Company has received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined
adversely to the Company or such Subsidiary of the Company, would reasonably be expected to have a Material Adverse Effect, individually or in the aggregate. 

4.14 Labor Matters. 
 (a)
Except as set forth on Schedule 4.14, the Company is not a party to or bound by any collective bargaining agreements or other agreements with labor organizations. The Company has not violated in any material respect any laws, regulations,
orders or contract terms, affecting the collective bargaining rights of employees, labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’ health, safety, welfare,
wages and hours, other than violations that would not reasonably be expected to be material, individually or in the aggregate. 

(b) (i) There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work
stoppages, job actions, disputes, lockouts or any other disruptions of or by the Company’s employees, (ii) there are no claims pertaining to unfair labor practices or petitions for election pending or, to the Company’s Knowledge,
threatened before the National Labor Relations Board or any other federal, state or local labor commission relating to the Company’s employees, (iii) no demand for recognition or certification heretofore made by any labor organization or
group of employees is pending with respect to the Company, (iv) to the Company’s Knowledge there exist no facts or circumstances that would reasonably be expected to give rise to the occurrence of any of the events described in clauses
(i) through (iii); and (v) to the Company’s Knowledge, the Company enjoys good labor and employee relations with its employees and labor organizations, 

(c) The Company is, and at all times since August 13, 2004 has been, in compliance in all material respects with all applicable laws
respecting employment (including laws relating to classification of employees and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration and naturalization. There are no claims
pending, or to the Company’s Knowledge threatened, against the Company before the Equal Employment Opportunity Commission or any other administrative body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the
Age Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance barring discrimination in employment. 

  
 9 

 (d) Except as disclosed in the SEC Filings or as described on Schedule 4.14, the Company
is not a party to, or bound by, any employment or other contract or agreement that contains any severance, termination pay or change of control liability or obligation, including, without limitation, any “excess parachute payment,” as
defined in Section 280G(b) of the Internal Revenue Code. 
 (e) Except as specified in Schedule 4.14, each of the Company’s
employees is a Person who is either a United States citizen or a permanent resident entitled to work in the United States. The Company has no material liability for the improper classification by the Company of such employees as independent
contractors or leased employees prior to the Closing. 
 4.15 Intellectual Property. 

(a) All material Intellectual Property of the Company and its Subsidiaries is currently in compliance with all legal requirements (including
timely filings, proofs and payments of fees) and is valid and enforceable. No Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted has been or is now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no such action is threatened. No patent of the Company or its Subsidiaries has
been or is now involved in any interference, reissue, re-examination or opposition proceeding. 
 (b) All of the licenses and sublicenses
and consent, royalty or other agreements concerning Intellectual Property which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be
conducted to which the Company or any Subsidiary of the Company is a party or by which any of their assets are bound (other than generally commercially available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than $10,000 per license) (collectively, “License Agreements”) are valid and binding obligations of the Company
or its Subsidiaries that are parties thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition which will result in a material violation or breach of or constitute (with
or without due notice or lapse of time or both) a default by the Company or any of its Subsidiaries under any such License Agreement. 
 (c)
The Company and its Subsidiaries own or have the valid right to use all of the Intellectual Property that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as
currently proposed to be conducted and for the ownership, maintenance and operation of the Company’s and its Subsidiaries’ properties and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license all such
owned Intellectual Property and Confidential Information, other than licenses entered into in the ordinary course of the Company’s and its Subsidiaries’ businesses. The Company and its Subsidiaries have a valid and enforceable right to use
all third party Intellectual Property and Confidential Information used or held for use in the respective businesses of the Company and its Subsidiaries. 

  
 10 

 (d) The conduct of the Company’s and its Subsidiaries’ businesses as currently
conducted does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any confidentiality obligation owed to a third party, and, to the Company’s Knowledge,
the Intellectual Property and Confidential Information of the Company and its Subsidiaries which are necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed
to be conducted are not being Infringed by any third party. There is no litigation or order pending or outstanding or, to the Company’s Knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the ownership, use,
validity or enforceability of any Intellectual Property or Confidential Information of the Company and its Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential Information owned by a third
party, and, to the Company’s Knowledge, there is no valid basis for the same. 
 (e) The consummation of the transactions contemplated
hereby and by the other Transaction Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential
Information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted. 

(f) The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and its Subsidiaries’ rights in their
Intellectual Property and Confidential Information. Each employee, consultant and contractor who has had access to Confidential Information of the Company which is necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such Confidential Information and has executed appropriate agreements that are substantially
consistent with the Company’s standard forms thereof. Except under confidentiality obligations, to the Company’s Knowledge there has been no material disclosure of any of the Company’s or its Subsidiaries’ Confidential
Information to any third party. 
 4.16 Environmental Matters. Neither the Company nor any Subsidiary of the Company is in violation
of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the
environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site
disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or would reasonably be expected to have a Material Adverse
Effect, individually or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened investigation by any governmental authority that might lead to such a claim. 

  
 11 

 4.17 Litigation. Except as described on Schedule 4.17, there are no pending
actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are threatened. Neither the Company nor any Subsidiary of
the Company, nor any director or officer thereof in his capacity as such, is or since January 1, 2009 has been the subject of any action involving a claim of violation of or liability under federal or state securities laws or a claim of breach
of fiduciary duty. There has not been, and to the Company’s Knowledge, there is not pending or threatened, any investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary of the Company under the 1933 Act or the 1934 Act. 

4.18 Financial Statements. The financial statements included in each SEC Filing comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent corrected by a subsequent restatement) and present fairly, in all material respects, the consolidated
financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with United States generally accepted accounting
principles applied on a consistent basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted by Form 10-Q under the 1934 Act). Except as set forth in the
financial statements of the Company included in the SEC Filings filed prior to the date hereof or as described on Schedule 4.18, neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent or otherwise, except
those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since the date of such financial statements, none of which, individually or in the aggregate, have had or would reasonably be expected to
have a Material Adverse Effect. 
 4.19 Insurance Coverage. The Company and each Subsidiary of the Company maintains in full force and
effect insurance coverage that is customary for comparably situated companies for the business being conducted and properties owned or leased by the Company and each Subsidiary of the Company, and the Company reasonably believes such insurance
coverage to be adequate against all liabilities, claims and risks against which it is customary for comparably situated companies to insure. 

4.20 Compliance with Listing Requirements. The Common Stock is registered pursuant to Section 12(b) of the 1934 Act and is listed
on The NASDAQ Capital Markets (the “NASDAQ Capital Markets”), and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the 1934 Act or removal from
listing of the Common Stock from the NASDAQ Capital Markets, nor has the Company received any notification that the SEC, the NASDAQ Capital Markets or the Financial Industry Regulatory Authority, Inc. is contemplating terminating such registration
or quotation. The Company is in compliance in all material respects with the listing and listing maintenance requirements of the NASDAQ Capital Markets applicable to it for the continued trading of its Common Stock on the NASDAQ Capital Markets.

  
 12 

 4.21 Brokers and Finders. No Person will have, as a result of the transactions
contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary of the Company or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or
understanding entered into by or on behalf of the Company. 
 4.22 No Directed Selling Efforts or General Solicitation. Neither the
Company nor any Person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities. 

4.23 No Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the
transactions contemplated hereby or would require registration of the Securities under the 1933 Act. 
 4.24 Rule 506 Compliance.
Assuming the accuracy of the representations and warranties of the Investors set forth in Section 5 hereof, to the Company’s Knowledge, neither the Company nor any Insider, is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2)(i) or (d)(3) of the 1933 Act. The Company is not disqualified from relying on Rule
506 of Regulation D under the 1933 Act (“Rule 506”) for any of the reasons stated in Rule 506(d) in connection with the issuance and sale of the Securities to the Investors pursuant to this Agreement. The Company has exercised reasonable
care, including without limitation, conducting a factual inquiry that is appropriate in light of the circumstances, into whether any such disqualification under Rule 506(d) exists. The Company has furnished to each Investor, a reasonable time prior
to the date hereof, a description in writing of any matters relating to the Company, the Insiders, that would have triggered disqualification under Rule 506(d) but which occurred before September 23, 2013, in each case, in compliance with the
disclosure requirements of Rule 506(e). The Company has exercised reasonable care, including without limitation, conducting a factual inquiry that is appropriate in light of the circumstances, into whether any such disqualification under Rule 506(d)
would have existed and whether any disclosure is required to be made to Investor under Rule 506(e). Any outstanding securities of the Company (of any kind or nature) that were issued in reliance on Rule 506 at any time on or after September 23,
2013 have been issued in compliance with Rule 506(d) and (e). 
 4.25 Private Placement. Assuming the accuracy of the representations
and warranties of the Investors set forth in Section 5, and in reliance thereon, the offer and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933 Act. 

  
 13 

 4.26 Shell Company Status. The Company is not, and has never been, an issuer identified in
Rule 144(i)(1). 
 4.27 Questionable Payments. Neither the Company nor any of its Subsidiaries nor, to the
Company’s Knowledge, any of their respective current or former stockholders, directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary of the Company, has on behalf of the Company or any
Subsidiary of the Company or in connection with their respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct or
indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the
books and records of the Company or any Subsidiary of the Company; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature. 

4.28 Transactions with Affiliates. Except as disclosed in the SEC Filings or as disclosed on Schedule 4.28, none of the officers
or directors of the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary of the Company (other than as holders of stock options and/or warrants,
and for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner. 

4.29 Internal Controls. Other than as otherwise set forth in the SEC Filings: (a) the Company is in material compliance with the
provisions of the Sarbanes-Oxley Act of 2002 currently applicable to the Company; (b) the Company has established disclosure controls and procedures (as defined in 1934 Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such
disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the Company’s certifying officers by others within those entities; (c) The Company has established
internal control over financial reporting (as defined in 1934 Act Rules 13a-15(f) and 15d-15(f)) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with GAAP; and (d) the Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with GAAP and the applicable requirements of the 1934 Act. The Company’s
certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by the most recently filed periodic report under the 1934 Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the 1934 Act the conclusions of the certifying officers about the effectiveness of such disclosure controls and procedures based on their evaluations as of the
Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s disclosure controls and procedures or, to the Company’s Knowledge, in other factors that could significantly affect the Company’s
disclosure controls and procedures. 

  
 14 

 4.30 Disclosures. Neither the Company nor any Person acting on its behalf has provided the
Investors or their agents or counsel with any information that constitutes or might constitute material, non-public information, other than the terms of the transactions contemplated hereby. The written materials delivered to the Investors in
connection with the transactions contemplated by the Transaction Documents do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading. 
 4.31 Investment Company. The Company is not required to be registered as,
and is not an Affiliate of, and immediately following the Closing will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

4.32 FDA. The Company and each of its Subsidiaries have operated and currently are in compliance with all applicable rules and
regulations of the FDA or any other federal, state, local or foreign governmental body exercising comparable authority, except where the failure to so operate or be in compliance would not have a Material Adverse Effect. All preclinical and clinical
studies conducted by or, to the Company’s Knowledge, on behalf of the Company to support approval for commercialization of the Company’s products have been conducted by the Company, or to the Company’s Knowledge by third parties, in
compliance with all applicable federal, state or foreign laws, rules, orders and regulations, except for such failure or failures to be in compliance which would not reasonably be expected to have, singly or in the aggregate, a Material Adverse
Effect. The descriptions of the tests and preclinical and clinical studies, and results thereof, conducted by or, to the Company’s Knowledge, on behalf of the Company contained in the SEC Filings are accurate and complete in all material
respects; and the Company has not received any oral or written notice or correspondence from the FDA or any foreign, state or local governmental body exercising comparable authority requiring the termination, suspension, or clinical hold of any
tests or preclinical or clinical studies, or such written notice or correspondence from any Institutional Review Board or comparable authority requiring the termination or suspension of a clinical study, conducted by or on behalf of the Company,
which termination, suspension, or clinical hold would reasonably be expected to have a Material Adverse Effect. 
 5. Representations and
Warranties of the Investors. Each Investor hereby severally, and not jointly, represents and warrants to the Company that: 
 5.1
Organization and Existence. Such Investor is a validly existing corporation, limited partnership or limited liability company and has all requisite corporate, partnership or limited liability company power and authority to purchase the
Securities pursuant to this Agreement. 
 5.2 Authorization. The execution, delivery and performance by such Investor of the
Transaction Documents to which such Investor is a party have been duly authorized and each will constitute the valid and legally binding obligation of such Investor, enforceable against such Investor in accordance with their respective terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally. 

  
 15 

 5.3 Purchase Entirely for Own Account. The Securities to be received by such Investor
hereunder will be acquired for such Investor’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act, and such Investor has no present agreement, understanding
or intention of selling, granting any participation in, or otherwise distributing the same in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such
Securities in compliance with applicable federal and state securities laws. Nothing contained herein shall be deemed a representation or warranty by such Investor to hold the Securities for any period of time. Such Investor is not a broker-dealer
registered with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered. 
 5.4 Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits
and risks of the investment contemplated hereby. 
 5.5 Disclosure of Information. Such Investor has had an opportunity to receive all
information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities. Such Investor acknowledges receipt of
copies of the SEC Filings. Neither such inquiries nor any other due diligence investigation conducted by such Investor shall modify, limit or otherwise affect such Investor’s right to rely on the Company’s representations and warranties
contained in this Agreement and the truth, accuracy and completeness thereof. 
 5.6 Restricted Securities. Such Investor understands
that the Securities are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited circumstances. 
 5.7
Legends. It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend: 

(a) “The securities represented hereby have not been registered with the Securities and Exchange Commission or the securities commission
of any state in reliance upon an exemption from registration under the Securities Act of 1933, as amended, and, accordingly, may not be transferred unless (i) such securities have been registered for sale pursuant to the Securities Act of 1933,
as amended, (ii) such securities may be sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel reasonably satisfactory to it that such transfer may lawfully be made without registration under the Securities Act
of 1933, as amended.” 

  
 16 

 (b) If required by the authorities of any state in connection with the issuance of sale of the
Securities, the legend required by such state authority. 
 5.8 Investor Status. At the time such Investor was offered the Securities,
it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the 1933 Act. Such Investor is not a registered broker dealer registered under Section 15(a) of the Exchange Act, or a member of the
Financial Industry Regulatory Authority, Inc. (“FINRA”) or an entity engaged in the business of being a broker dealer. Except as otherwise disclosed in writing to the Company on or prior to the date of this Agreement, such Investor is not
affiliated with any broker dealer registered under Section 15(a) of the 1934 Act, or a member of FINRA or an entity engaged in the business of being a broker dealer. Such Investor maintains its principal executive office at the location
specified on its signature page hereto. 
 5.9 No General Solicitation. Such Investor did not learn of the investment in the
Securities as a result of any general solicitation or general advertising. 
 5.10 Brokers and Finders. No Person will have, as a
result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary of the Company or an Investor for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of such Investor. 
 5.11 Prohibited Transactions. Since the
earlier of (a) such time as such Investor was first contacted by the Company or any other Person acting on behalf of the Company regarding the transactions contemplated hereby or (b) thirty (30) days prior to the date hereof, neither
such Investor nor any Affiliate of such Investor which (x) had knowledge of the transactions contemplated hereby, (y) has or shares discretion relating to such Investor’s investments or trading or information concerning such
Investor’s investments, including in respect of the Securities, or (z) is subject to such Investor’s review or input concerning such Affiliate’s investments or trading (collectively, “Trading Affiliates”) has, directly
or indirectly, effected or agreed to effect any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock, granted any other
right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Common Stock or otherwise sought to hedge
its position in the Securities (each, a “Prohibited Transaction”). Prior to the earlier to occur of (i) the termination of this Agreement or (ii) the Effective Date, such Investor shall not, and shall cause its Trading Affiliates
not to, engage, directly or indirectly, in a Prohibited Transaction. Such Investor acknowledges that the representations, warranties and covenants contained in this Section 5.11 are being made for the benefit of the Investors as well as the
Company and that each of the other Investors shall have an independent right to assert any claims against such Investor arising out of any breach or violation of the provisions of this Section 5.11. 

  
 17 

 6. Conditions to Closing. 

6.1 Conditions to the Investors’ Obligations. The obligation of each Investor to purchase the Shares and the Warrants at the
Closing is subject to the fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be waived by such Investor (as to itself only): 

(a) The representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at
all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the
representations and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be true and correct in all material respects at all times prior to and on the Closing Date, except to the extent any such
representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date. The Company shall have performed in all material respects
all obligations and covenants herein required to be performed by it on or prior to the Closing Date. 
 (b) The Company shall have obtained
any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the Transaction Documents, all of
which shall be in full force and effect. 
 (c) No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice
or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, enjoining or preventing the
consummation of the transactions contemplated hereby or in the other Transaction Documents. 
 (d) The Company shall have delivered a
Certificate, executed on behalf of the Company by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in subsections (a), (b), and (h) of this
Section 6.1. 
 (e) The Company shall have delivered a Certificate, executed on behalf of the Company by its Secretary, dated as of the
Closing Date, certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the Securities, certifying the current
versions of the Certificate of Incorporation and Bylaws of the Company and certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company. 

(f) The Investors shall have received an opinion from Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, the
Company’s legal counsel, dated as of the Closing Date, in form and substance reasonably acceptable to the Investors and addressing such legal matters as the Investors may reasonably request. 

  
 18 

 (g) The Company shall have executed and delivered the Registration Rights Agreement. 

(h) No stop order or suspension of trading shall have been imposed or threatened in writing by the NASDAQ Capital Markets, the SEC or any
other governmental or regulatory body with respect to public trading in the Common Stock. 
 6.2 Conditions to Obligations of the
Company. The Company’s obligation to sell and issue the Shares and the Warrants at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be
waived by the Company: 
 (a) The representations and warranties made by the Investors in Section 5 hereof, other than the
representations and warranties contained in Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8 and 5.9 (the “Investment Representations”), shall be true and correct in all material respects when made, and shall be true and correct in all material
respects on the Closing Date with the same force and effect as if they had been made on and as of said date. The Investment Representations shall be true and correct in all respects when made, and shall be true and correct in all respects on the
Closing Date with the same force and effect as if they had been made on and as of said date. The Investors shall have performed in all material respects all obligations and covenants herein required to be performed by them on or prior to the Closing
Date. 
 (b) The Investors shall have delivered the Purchase Price to the Company. 

(c) The Investors shall have executed and delivered the Registration Rights Agreement. 

6.3 Termination of Obligations to Effect Closing; Effects. 

(a) The obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

 (i) Upon the mutual written consent of the Company and the Investors; 

(ii) By the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall not have been
waived by the Company; 
 (iii) By an Investor (with respect to itself only) if any of the conditions set forth in Section 6.1 shall
have become incapable of fulfillment, and shall not have been waived by the Investor; or 

  
 19 

 (iv) By either the Company or any Investor (with respect to itself only) if the Closing has not
occurred prior to 4:00 PM (New York time) on January 31, 2015; 
 provided, however, that, except in the case of clause (i) above, the party
seeking to terminate its obligation to effect the Closing shall not then be in breach of any of its representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such breach has resulted in
the circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing. 
 (b) In the event of
termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 6.3, written notice thereof shall forthwith be given to the other Investors by the Company and the other Investors shall have the right
to terminate their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this Section 6.3 shall be deemed to release any party from any liability for any breach by such party of the terms and
provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents. 

7. Covenants and Agreements of the Company. 

7.1 Reservation of Common Stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of
Common Stock, solely for the purpose of providing for the exercise of the Warrants, such number of shares of Common Stock as shall from time to time equal the number of shares sufficient to permit the exercise of the Warrants issued pursuant to this
Agreement in accordance with their respective terms. 
 7.2 Reports. The Company will furnish to the Investors and/or their assignees
such information relating to the Company and its Subsidiaries as from time to time may reasonably be requested by the Investors and/or their assignees; provided, however, that the Company shall not disclose material nonpublic information to the
Investors, or to advisors to or representatives of the Investors, unless prior to disclosure of such information the Company identifies such information as being material nonpublic information and provides the Investors, such advisors and
representatives with the opportunity to accept or refuse to accept such material nonpublic information for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company with respect
thereto. 
 7.3 No Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that
would conflict or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents. 

7.4 Insurance. The Company shall not materially reduce the insurance coverages described in Section 4.19. 

  
 20 

 7.5 Compliance with Laws. The Company will comply in all material respects with all
applicable laws, rules, regulations, orders and decrees of all governmental authorities. 
 The provisions of Sections 7.2 through 7.5 shall terminate and be
of no further force and effect on the date on which the Company’s obligations under the Registration Rights Agreement to register or maintain the effectiveness of any registration covering the Registrable Securities (as such term is defined in
the Registration Rights Agreement) shall terminate. 
 7.6 Listing of Underlying Shares and Related Matters. Promptly following the
date hereof, the Company shall use its commercially reasonable efforts to take all necessary action to cause the Shares and the Warrant Shares to be included for listing on the NASDAQ Capital Market no later than the Closing Date. Further, if the
Company applies to have its Common Stock or other securities traded on any other stock exchange or market, it shall include in such application the Shares and the Warrant Shares and will take such other action as is necessary to cause such Common
Stock to be so listed. The Company will use commercially reasonable efforts to continue the public listing and trading of its Common Stock and, in accordance, therewith, will use commercially reasonable efforts to comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of such market or exchange as the Common Stock is then listed or quoted, as applicable. 

7.7 Removal of Legends. In connection with any sale or disposition of the Securities by an Investor pursuant to Rule 144 or pursuant to
any other exemption under the 1933 Act such that the purchaser acquires freely tradable shares and upon compliance by the Investor with the requirements of this Agreement, the Company shall or, in the case of Common Stock, shall cause the transfer
agent for the Common Stock (the “Transfer Agent”) to issue replacement certificates representing the Securities sold or disposed of without restrictive legends. Upon the earlier of (i) the effectiveness of the registration for resale
pursuant to the Registration Rights Agreement or (ii) the Shares becoming freely tradable by a non-affiliate pursuant to Rule 144, the Company shall (A) deliver to the Transfer Agent irrevocable instructions that the Transfer Agent shall
reissue a certificate representing shares of Common Stock without legends upon receipt by such Transfer Agent of the legended certificates for such shares, together with either (1) a customary representation by the Investor that Rule 144
applies to the shares of Common Stock represented thereby or (2) a statement by the Investor that such Investor has sold the shares of Common Stock represented thereby in accordance with the plan of distribution contained in the Registration
Statement, and (B) cause its counsel to deliver to the Transfer Agent one or more blanket opinions to the effect that the removal of such legends in such circumstances may be effected under the 1933 Act. From and after the earlier of such dates
(the “Legend Removal Date”), upon an Investor’s written request, the Company shall promptly cause certificates evidencing the Investor’s Securities to be replaced with certificates which do not bear such restrictive legends, and
Warrant Shares subsequently issued upon due exercise of the Warrants shall not bear such restrictive legends provided the provisions of either clause (i) or clause (ii) above, as applicable, are satisfied with respect to such Warrant
Shares. When the Company is required to cause an unlegended certificate to replace a previously issued legended certificate, if: (1) the unlegended certificate is not delivered to an Investor within three (3) Business Days of submission by
that Investor of a legended certificate and supporting 

  
 21 

 
documentation to the Transfer Agent as provided above and (2) prior to the time such unlegended certificate is received by the Investor, the Investor, or any third party on behalf of such
Investor or for the Investor’s account, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of shares represented by such certificate (a “Buy-In”), then
the Company shall pay in cash to the Investor (for costs incurred either directly by such Investor or on behalf of a third party) the amount by which the total purchase price paid for Common Stock as a result of the Buy-In (including brokerage
commissions, if any) exceeds the proceeds received by such Investor as a result of the sale to which such Buy-In relates. The Investor shall provide the Company written notice indicating the amounts payable to the Investor in respect of the Buy-In.
Additionally, at the option of an Investor, the Company shall pay to such Investor, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the Weighted Average Price (as defined in Exhibit
A) of the Common Stock on the Legend removal date), $5 per trading day for each trading day after the 2nd trading day following the Legend Removal Date until such certificate is delivered without
a legend; provided, however, that such Investor has provided the Company with at least one (1) trading day’s prior written notice of such failure to deliver certificates without legends. The foregoing shall be without prejudice to any
other rights and recourses of any Investor in connection with the failure of the Company to cause the prompt delivery to the Investor of unlegended certificates upon a written request therefor beginning on the Legend Removal Date. 

7.9 Registration Statements. The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the
Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer or sale of the Securities in a manner that would
require the registration under the 1933 Act of the sale of the Securities to the Investors, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any trading market such that it would
require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction. 

7.10 Equal Treatment of Investors. No consideration shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to
each Investor by the Company and negotiated separately by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as the Investors acting in concert or as a group with respect to the
purchase, disposition or voting of Securities or otherwise. 
 8. Survival and Indemnification. 

8.1 Survival. The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the
transactions contemplated by this Agreement. 

  
 22 

 8.2 Indemnification. The Company agrees to indemnify and hold harmless each Investor and
its Affiliates and their respective directors, officers, trustees, members, managers, employees and agents, and their respective successors and assigns, from and against any and all losses, claims, damages, liabilities and expenses (including
without limitation reasonable attorney fees and disbursements and other expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or threatened and the costs of enforcement thereof)
(collectively, “Losses”) to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under the Transaction Documents, and will
reimburse any such Person for all such amounts as they are incurred by such Person. 
 8.3 Conduct of Indemnification
Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense
of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses, or (b) the indemnifying party shall have failed to assume the
defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict of interest exists between such person and the
indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not
have the right to assume the defense of such claim on behalf of such person); and provided, further, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its
obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in
connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement that 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. 
 9. Miscellaneous. 

9.1 Successors and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the
Investors, as applicable, provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate or to a third party acquiring some or all of its Securities in a transaction complying with
applicable securities laws without the prior written consent of the Company or the other Investors. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties.
Without limiting the generality of the foregoing, in the event that the Company is a party to a merger, 

  
 23 

 
consolidation, share exchange or similar business combination transaction in which the Common Stock is converted into the equity securities of another Person, from and after the effective time of
such transaction, such Person shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to such Person and the term “Shares” shall be
deemed to refer to the securities received by the Investors in connection with such transaction. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

9.2 Counterparts; Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be deemed an original. 

9.3 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. 
 9.4 Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by facsimile or electronic mail,
then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three
days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier. All
notices shall be addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other party: 

If to the Company: 
 Aldeyra
Therapeutics, Inc. 
 131 Hartwell Avenue, Suite 320 

Lexington, MA 02421 
 Attention:
Todd C. Brady 
 Email: tbrady@aldeyra.com 

With a copy to: 
 Gunderson
Dettmer Stough Villeneuve Franklin & Hachigian, LLP 
 One Marina Park Drive, Suite 900 

Boston, MA 02210 
 Attention:
Keith J. Scherer 
 Fax: 617-648-9199 

If to the Investors: 
 to the addresses set
forth on the signature pages hereto. 

  
 24 

 9.5 Expenses. The parties hereto shall pay their own costs and expenses in connection
herewith. The Company shall reimburse the Investors upon demand for all reasonable out-of-pocket expenses incurred by the Investors, including without limitation reimbursement of attorneys’ fees and disbursements, in connection with any
amendment, modification or waiver of this Agreement or the other Transaction Documents. In the event that legal proceedings are commenced by any party to this Agreement against another party to this Agreement in connection with this Agreement or the
other Transaction Documents, the party or parties to such proceeding which do not prevail in such proceedings shall severally, but not jointly, pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs
and expenses incurred by the prevailing party in such proceedings. 
 9.6 Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investors. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities, and the Company. 

9.7 Publicity. Except as set forth below, no public release or announcement concerning the transactions contemplated hereby shall be
issued by the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors) or the Required Investors (in the case of a release or announcement by the Company) (which consents shall not
be unreasonably withheld), except as such release or announcement may be required by law or the applicable rules or regulations of any securities exchange or securities market, in which case the Company or the Investors, as the case may be, shall
allow the Investors or the Company, as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance of such issuance. On or before 5:30 p.m., New York City time, on the
date that this Agreement has been executed, the Company shall issue a press release reasonably acceptable to the Required Investors and, on or prior to 8:00 a.m., New York City time, on the next Business Day, file a Current Report on Form 8-K
describing the terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement (and all schedules and exhibits
to this Agreement), the Form of Warrant and the Registration Rights Agreement, as exhibits to such filing (including all attachments), the “8-K Filing”). By 8:30 a.m. (New York City time) on the trading day immediately following the
Closing Date, the Company shall issue a press release disclosing the consummation of the transactions contemplated by this Agreement. No later than the fourth trading day following the Closing Date, the Company will file a Current Report on Form 8-K
attaching the press release described in the foregoing sentence. In addition, the Company will make such other filings and notices in the manner and time required by the SEC or the NASDAQ Capital Markets and the Registration Rights Agreement. 

  
 25 

 9.8 Severability. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 
 9.9 Entire
Agreement. This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof. 

9.10 Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other
actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 

9.11 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County
and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in
connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT
TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER. 
 9.12 Independent Nature of
Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of
the obligations of any other Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant to the Transaction Documents has been made by such 

  
 26 

 
Investor independently of any other Investor. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the
Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by
the Transaction Documents. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection with
monitoring its investment in the Securities or enforcing its rights under the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that each of the Investors has been provided
with the same Transaction Documents for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor. 

[signature page follows] 

  
 27 

 IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written. 
  

							
	The Company:	 		 	ALDEYRA THERAPEUTICS, INC.
				
		 		 	By:	 	  

		 		 	Name:	 	Todd C. Brady, M.D., Ph.D.
		 		 	Title:	 	Chief Executive Officer

  
 28 

 
			
	  
 COWEN
INVESTMENTS LLC

		
	By:	 	  

	Name:	 	
	Title:	 	

 Aggregate Purchase Price: $1,999,997.24 

Number of Shares: 211,528 
 Number of Warrants: 211,528 

Address for Notice: 
 Cowen Investments LLC 

599 Lexington Avenue 
 New York, NY 10022 

Attention: Owen Littman 
 Email: owen.littman@cowen.com 

  
 29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]