Document:

Exhibit 10.11

 

HOTH
THERAPEUTICS, INC.

 

2018 EQUITY INCENTIVE PLAN

EFFECTIVE AS OF MAY 4, 2018

 

     

     

    

 

HOTH
THERAPEUTICS, INC.

2018 EQUITY INCENTIVE PLAN

EFFECTIVE AS OF MAY 4, 2018

 

SECTION
1. INTRODUCTION.

 

The
Company’s Board of Directors adopted the Hoth Therapeutics, Inc. 2018 Equity Incentive Plan effective as of the Adoption
Date subject to obtaining Company shareholder approval as provided in Section 15 below.

 

The
purpose of the Plan is to promote the long-term success of the Company and the creation of shareholder value by offering Key Employees
an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, and to encourage
such Key Employees to continue to provide services to the Company and to attract new individuals with outstanding qualifications.

 

The
Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute Incentive Stock Options
or Nonstatutory Stock Options), Stock Appreciation Rights, Restricted Stock Grants, Stock Units, Other Equity Awards and/or Cash
Awards.

 

Capitalized
terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any related Award Agreement.

 

SECTION
2. DEFINITIONS. If
a Participant’s employment agreement or Award Agreement (or other written agreement executed by and between Participant
and the Company) expressly includes defined terms that expressly are different from and/or conflict with the defined terms contained
in this Plan then the defined terms contained in the employment agreement or Award Agreement (or other written agreement executed
by and between Participant and the Company) shall govern and shall supersede the definitions provided in this Plan.

 

(a)           “Adoption
Date” means May 4, 2018.

 

(b)           “Affiliate”
means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity.

 

(c)           “Award”
means any award of an Option, SAR, Restricted Stock Grant, Stock Unit, Other Equity Award or Cash Award under the Plan.

 

(d)           “Award Agreement” means an agreement between the Company and a Participant evidencing the award of an Option,
SAR, Restricted Stock Grant, Stock Unit, Other Equity Award or Cash Award as applicable.

 

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(e)           “Board”
means the Board of Directors of the Company, as constituted from time to time.

 

(f)            “Cash
Award” means, a cash incentive opportunity awarded under this Plan and which is (i) payable only in cash and is (ii)
not an Option, SAR, Restricted Stock Grant, Stock Unit or Other Equity Award.

 

(g)           “Cashless
Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by applicable law and in accordance
with any procedures established by the Committee, an arrangement whereby payment of some or all of the aggregate Exercise Price
may be made all or in part by delivery of an irrevocable direction to a securities broker to sell Shares and to deliver all or
part of the sale proceeds to the Company. Cashless Exercise may also be utilized to satisfy an Option’s tax withholding
obligations as provided in Section 14(b).

 

(h)           “Cause”
means, with respect to a Participant, the occurrence of any of the following: (i) a conviction of a Participant for a felony crime
or the failure of a Participant to contest prosecution for a felony crime, or (ii) a Participant’s misconduct, fraud, disloyalty
or dishonesty (as such terms may be defined by the Committee in its sole discretion), or (iii) any unauthorized use or disclosure
of confidential information or trade secrets by a Participant, or (iv) a Participant’s negligence, malfeasance, breach of
fiduciary duties, neglect of duties, or (v) any material violation by a Participant of a written Company or Subsidiary or Affiliate
policy or any material breach by a Participant of a written agreement with the Company or Subsidiary or Affiliate, or (vi) any
other act or omission by a Participant that, in the opinion of the Committee, could reasonably be expected to adversely affect
the Company’s or a Subsidiary’s or an Affiliate’s business, financial condition, prospects and/or reputation.
In each of the foregoing subclauses (i) through (vi), whether or not a “Cause” event has occurred will be determined
by the Committee in its sole discretion or, in the case of Participants who are directors or Officers or Section 16 Persons, the
Board, each of whose determination shall be final, conclusive and binding. A Participant’s Service shall be deemed to have
terminated for Cause if, after the Participant’s Service has terminated, facts and circumstances are discovered that would
have justified a termination for Cause, including, without limitation, violation of material Company policies or breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the Participant.

 

(i)            “Change
in Control” means the occurrence of any of the following:

 

(i)            The
consummation of an acquisition, a merger or consolidation of the Company with or into another entity or any other corporate reorganization,
if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately
after such acquisition, merger, consolidation or other reorganization is owned by persons who in the aggregate owned less than
20% of the Company’s combined voting power represented by the Company’s outstanding securities immediately prior to
such acquisition, merger, consolidation or other reorganization;

 

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(ii)           A
sale of more than fifty percent (50%) of the outstanding shares of each class of capital stock of the Company to a person, entity
or group other than a person, entity or group affiliated with the Company; or

 

(iii)          The
sale, transfer or other disposition of all or substantially all of the Company’s assets to a person, entity or group other
than a person, entity or group affiliated with the Company.

 

A
transaction shall not constitute a Change in Control if: (i) its principal purpose is to change the state of the Company’s
incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held
the Company’s securities immediately before such transactions; or (ii) it is an equity financing primarily for capital raising
purposes. In addition, an IPO shall not constitute a Change in Control. If the timing of payments provided under an Award Agreement
is based on or triggered by a Change in Control then, to extent necessary to avoid violating Code Section 409A, a Change in Control
must also constitute a Change in Control Event.

 

(j)            “Change
in Control Event” has the meaning provided to such term under Code Section 409A and the applicable regulations and guidance
promulgated thereunder.

 

(k)           “Charter”
means the Company’s Amended and Restated Certificate of Incorporation, as amended as may be amended from time to time.

 

(l)            “Code”
means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder.

 

(m)          “Committee”
means a committee consisting of members of the Board that is appointed by the Board (as described in Section 3) to administer
the Plan. If no Committee has been appointed, the full Board shall constitute the Committee.

 

(n)           “Common
Stock” means the Company’s common stock (as defined in the Charter and with the rights and obligations provided
under the Charter) and any other securities into which such shares are changed, for which such shares are exchanged or which may
be issued in respect thereof.

 

(o)           “Company”
means Hoth Therapeutics, Inc., a Nevada corporation.

 

(p)           “Consultant”
means an individual (or entity) which performs bona fide services to the Company, a Parent, a Subsidiary or an Affiliate other
than as an Employee or Non-Employee Director.

 

(q)           “Disability”
means the following with respect to a Participant:

 

i.             For
all ISOs, the permanent and total disability of the Participant within the meaning of Section 22(e)(3) of the Code;

 

ii.            For
all Awards which are considered nonqualified deferred compensation under Code Section 409A and for which payment can be made on
account of the Participant’s disability, the disability of the Participant within the meaning of Section 409A of the Code;
or

 

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iii.           For
all other Awards, the Participant’s medically determinable physical or mental incapacitation such that for a continuous
period of not less than twelve (12) months, the Participant is unable to engage in any substantial gainful activity or which can
be expected to result in death.

 

Any
question as to the existence of the Participant’s physical or mental incapacitation as to which the Participant or Participant’s
representative and the Company cannot agree shall be determined in writing by a qualified independent physician selected by the
Company. The physician’s determination of Disability shall be made in writing to the Company and the determination shall
be final and conclusive for all purposes of the Participant’s Awards.

 

(r)           “Employee”
means any individual who is a common-law employee of the Company, or of a Parent, or of a Subsidiary or of an Affiliate.

 

(s)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(t)           “Exercise
Price” means, in the case of an Option, the amount for which a Share may be purchased upon exercise of such Option,
as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as
specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value in determining the amount payable to
a Participant upon exercise of such SAR.

 

(u)           “Fair
Market Value” means the market price of a Share, determined by the Committee as follows:

 

(i)            If
the Shares were traded on a stock exchange (such as the New York Stock Exchange, NYSE Amex, the NASDAQ Global Market or NASDAQ
Capital Market) at the time of determination, then the Fair Market Value shall be equal to the regular session closing price for
such stock as reported by such exchange (or the exchange or market with the greatest volume of trading in the Shares) on the date
of determination, or if there were no sales on such date, on the last date preceding such date on which a closing price was reported;

 

(ii)           If
the Shares were traded on the OTC Markets at the time of determination, then the Fair Market Value shall be equal to the last-sale
price reported by the OTC Markets for such date, or if there were no sales on such date, on the last date preceding such date
on which a sale was reported; and

 

(iii)          If
neither of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith
using a reasonable application of a reasonable valuation method as the Committee deems appropriate.

 

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Whenever
possible, the determination of Fair Market Value by the Committee shall be based on the prices reported by the applicable exchange
or the OTC Markets, as applicable, or a nationally recognized publisher of stock prices or quotations (including an electronic
on-line publication). Such determination shall be conclusive and binding on all persons.

 

(v)           “Incentive
Stock Option” or “ISO” means an incentive stock option described in Code section 422.

 

(w)          “IPO”
means an initial public offering by the Company of its equity securities pursuant to an effective registration statement filed
with the SEC.

 

(x)           “Key
Employee” means an Employee, Non-Employee Director or Consultant who has been selected by the Committee to receive an
Award under the Plan.

 

(y)           “Net
Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by applicable law, an arrangement
pursuant to which the number of Shares issued to the Optionee in connection with the Optionee’s exercise of the Option will
be reduced by the Company’s retention of a portion of such Shares. Upon such a net exercise of an Option, the Optionee will
receive a net number of Shares that is equal to (i) the number of Shares as to which the Option is being exercised minus (ii)
the quotient (rounded down to the nearest whole number) of the aggregate Exercise Price of the Shares being exercised divided
by the Fair Market Value of a Share on the Option exercise date. The number of Shares covered by clause (ii) will be retained
by the Company and not delivered to the Optionee. No fractional Shares will be created as a result of a Net Exercise and the Optionee
must contemporaneously pay for any portion of the aggregate Exercise Price that is not covered by the Shares retained by the Company
under clause (ii). The number of Shares delivered to the Optionee may be further reduced if Net Exercise is utilized under Section
14(b) to satisfy applicable tax withholding obligations.

 

(z)           “Non-Employee
Director” means a member of the Board who is not an Employee.

 

(aa)         “Nonstatutory
Stock Option” or “NSO” means a stock option that is not an ISO.

 

(bb)        “Officer”
means an individual who is an officer of the Company within the meaning of Rule 16a-1(f) of the Exchange Act.

 

(cc)         “Option”
means an ISO or NSO granted under the Plan entitling the Optionee to purchase Shares under the Plan as provided in Section 6.

 

(dd)        “Optionee”
means an individual, estate or other entity that holds an Option.

 

(ee)         “Other
Equity Award” means an award (other than an Option, SAR, Stock Unit, Restricted Stock Grant or Cash Award) which derives
its value from the value of Shares and/or from increases in the value of Shares. Settlement of Other Equity Awards may be in the
form of Shares and/or cash as determined by the Committee.

 

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(ff)          “Parent”
means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations
other than the Company owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the Adoption
Date shall be considered a Parent commencing as of such date.

 

(gg)        “Participant”
means an individual or estate or other entity that holds an Award.

 

(hh)        “Plan”
means this 2018 Equity Incentive Plan as it may be amended from time to time.

 

(ii)           “Re-Load
Option” means a new Option or SAR that is automatically granted to a Participant as result of such Participant’s
exercise of an Option or SAR.

 

(jj)           “Re-Price”
means that the Company has lowered or reduced the Exercise Price of outstanding Options and/or outstanding SARs and/or outstanding
Other Equity Awards for any Participant(s) in a manner described by SEC Regulation S-K Item 402(d)(2)(viii) (or as described in
any successor provision(s) or definition(s)). For avoidance of doubt, Re-Price also includes any exchange of Options or SARs for
other Awards or cash.

 

(kk)         “Restricted
Stock Grant” means Shares awarded under the Plan as provided in Section 9.

 

(ll)           “Restricted
Stock Grant Agreement” means the agreement described in Section 9 evidencing each Award of a Restricted Stock Grant.

 

(mm)       “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to
time.

 

(nn)        “SAR
Agreement” means the agreement described in Section 8 evidencing each Award of a Stock Appreciation Right.

 

(oo)        “SEC”
means the Securities and Exchange Commission.

 

(pp)        “Section
16 Persons” means those Officers or directors or Non-Employee Directors or other persons who are subject to Section
16 of the Exchange Act.

 

(qq)        “Securities
Act” means the Securities Act of 1933, as amended.

 

(rr)          “Separation
From Service” means a Participant’s separation from service with the Company within the meaning of Code Section
409A.

 

(ss)         “Service”
means service as an Employee, Non-Employee Director or Consultant. Service will be deemed terminated as soon as the entity to
which Service is being provided is no longer either (i) the Company, (ii) a Parent, (iii) a Subsidiary or (iv) an Affiliate. The
Committee determines when Service commences and when Service terminates. The Committee may determine whether any Company transaction,
such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in termination of
Service for purposes of any affected Awards, and the Committee’s decision shall be final, conclusive and binding.

 

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(tt)          “Share”
means one share of Common Stock.

 

(uu)        “Stock
Appreciation Right or SAR” means a stock appreciation right awarded under the Plan as provided in Section 8.

 

(vv)        “Stock
Option Agreement” means the agreement described in Section 6 evidencing each Award of an Option.

 

(ww)       “Stock
Unit” means a bookkeeping entry representing the equivalent of one Share awarded under the Plan as provided in Section
10.

 

(xx)          “Stock
Unit Agreement” means the agreement described in Section 10 evidencing each Award of Stock Units.

 

(yy)        “Shareholder
Approval Date” means the date that the Company’s shareholder approve this Plan.

 

(zz)          “Shareholders
Agreement” means any applicable agreement between the Company’s shareholders and/or investors that provides certain
rights and obligations for shareholders.

 

(aaa)       “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status
of a Subsidiary on a date after the Adoption Date shall be considered a Subsidiary commencing as of such date.

 

(bbb)      “Termination
Date” means the date on which a Participant’s Service terminates as determined by the Committee.

 

(ccc)       “10-Percent
Shareholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes
of outstanding stock of the Company, its Parent or any of its Subsidiaries. In determining stock ownership, the attribution rules
of section 424(d) of the Code shall be applied.

 

SECTION
3. ADMINISTRATION.

 

(a)           Committee
Composition. A Committee appointed by the Board shall administer the Plan. The Board shall designate one of the members of
the Committee as chairperson. Members of the Committee shall serve for such period of time as the Board may determine and shall
be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume
all powers and authority previously delegated to the Committee.

 

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Effective
with the Shares being publicly traded or the Company being subject to the reporting requirements of the Exchange Act, with respect
to Awards to Section 16 Persons, the Committee shall consist either (i) solely of two or more individuals who satisfy the requirements
of Rule 16b-3 (or its successor) under the Exchange Act or (ii) of the full Board. The Board may also appoint one or more separate
committees of the Board, each composed of directors of the Company who need not qualify under Rule 16b-3, who may administer the
Plan with respect to Key Employees who are not Section 16 Persons, may grant Awards under the Plan to such Key Employees and may
determine all terms of such Awards. To the extent permitted by applicable law, the Board may also appoint a committee, composed
of one or more Officers of the Company, that may authorize Awards to Employees (who are not Section 16 Persons) within parameters
specified by the Board and consistent with any limitations imposed by applicable law.

 

(b)           Authority
of the Committee. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take any
actions it deems necessary or advisable for the administration of the Plan. Such actions shall include without limitation:

 

(i)            selecting
Key Employees who are to receive Awards under the Plan;

 

(ii)           determining
the type, number, vesting requirements, performance conditions (if any) and their degree of satisfaction, and other features and
conditions of such Awards and amending such Awards;

 

(iii)          correcting
any defect, supplying any omission, or reconciling or clarifying any inconsistency in the Plan or any Award Agreement;

 

(iv)         accelerating
the vesting, or extending the post-termination exercise term, or waiving restrictions, of Awards at any time and under such terms
and conditions as it deems appropriate;

 

(v)           interpreting
the Plan and any Award Agreements;

 

(vi)          making
all other decisions relating to the operation of the Plan; and

 

(vii)        granting
Awards to Key Employees who are foreign nationals on such terms and conditions different from those specified in the Plan, which
may be necessary or desirable to foster and promote achievement of the purposes of the Plan, and adopting such modifications,
procedures, and/or subplans (with any such subplans attached as appendices to the Plan) and the like as may be necessary or desirable
to comply with provisions of the laws or regulations of other countries or jurisdictions to ensure the viability of the benefits
from Awards granted to Participants employed in such countries or jurisdictions, or to meet the requirements that permit the Plan
to operate in a qualified or tax efficient manner, and/or comply with applicable foreign laws or regulations.

 

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The
Committee may adopt such rules or guidelines, as it deems appropriate to implement the Plan. The Committee’s determinations
under the Plan shall be final, conclusive and binding on all persons. The Committee’s decisions and determinations need
not be uniform and may be made selectively among Participants in the Committee’s sole discretion. The Committee’s
decisions and determinations will be afforded the maximum deference provided by applicable law.

 

(c)           Indemnification.
To the maximum extent permitted by applicable law, each member of the Committee, or of the Board, or any persons (including without
limitation Employees and Officers) who are delegated by the Board or Committee to perform administrative functions in connection
with the Plan, shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense
that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or
proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to
act under the Plan or any Award Agreement, and (ii) from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Bylaws or
Charter, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold
them harmless.

 

SECTION
4. GENERAL.

 

(a)           Eligibility.
Only Employees, Non-Employee Directors and Consultants shall be eligible for designation as Key Employees by the Committee.

 

(b)           Incentive
Stock Options. Only Key Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible
for the grant of ISOs. In addition, a Key Employee who is a 10-Percent Shareholder shall not be eligible for the grant of an ISO
unless the requirements set forth in section 422(c)(5) of the Code are satisfied. If and to the extent that any Shares are issued
under a portion of any Option that exceeds the $100,000 limitation of Section 422 of the Code, such Shares shall not be treated
as issued under an ISO notwithstanding any designation otherwise. Certain decisions, amendments, interpretations and actions by
the Committee and certain actions by a Participant may cause an Option to cease to qualify as an ISO pursuant to the Code and
by accepting an Option the Participant agrees in advance to such disqualifying action taken by either the Participant, the Committee
or the Company.

 

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(c)           Restrictions
on Shares. Any Shares issued pursuant to an Award shall be subject to such Company policies, rights of repurchase, rights
of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall apply in addition to
any restrictions that may apply to holders of Shares generally and shall also comply to the extent necessary with applicable law.
In no event shall the Company be required to issue fractional Shares under this Plan.

 

(d)           Beneficiaries.
A Participant may designate one or more beneficiaries with respect to an Award by timely filing the prescribed form with the
Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Participant’s
death. If no beneficiary was designated or if no designated beneficiary survives the Participant, then after a Participant’s
death any vested Award(s) shall be transferred or distributed to the Participant’s estate.

 

(e)           Performance
Conditions. The Committee may, in its discretion, include performance conditions in any Award.

 

(f)            Shareholder
Rights. A Participant, or a transferee of a Participant, shall have no rights as a shareholder (including without limitation
voting rights or dividend or distribution rights) with respect to any Common Stock covered by an Award until such person becomes
entitled to receive such Common Stock, has satisfied any applicable withholding or tax obligations relating to the Award and the
Common Stock has been issued to the Participant. No adjustment shall be made for cash or stock dividends or other rights for which
the record date is prior to the date when such Common Stock is issued, except as expressly provided in Section 11. The issuance
of an Award may be subject to and conditioned upon the Participant’s agreement to become a party to a Shareholders Agreement
and be bound by its terms.

 

(g)           Buyout
of Awards. The Committee may at any time offer to buy out, for a payment in cash or cash equivalents (including without limitation
Shares issued at Fair Market Value that may or may not be issued under this Plan), an Award previously granted based upon such
terms and conditions as the Committee shall establish.

 

(h)           Termination
of Service. Unless the applicable Award Agreement or employment agreement provides otherwise (and in such case, the Award
Agreement or employment agreement shall govern as to the consequences of a termination of Service for such Awards), the following
rules shall govern the vesting, exercisability and term of outstanding Awards held by a Participant in the event of termination
of such Participant’s Service (in all cases subject to the term of the Option or SAR or Other Equity Award as applicable):

 

(i)   
if the Service of a Participant is terminated for Cause, then all Options, Cash Awards, Other Equity Awards, SARs, unvested portions
of Stock Units and unvested portions of Restricted Stock Grants shall terminate and be forfeited immediately without consideration
as of the Termination Date (except for repayment of any amounts the Participant had paid to the Company to acquire unvested Shares
underlying the forfeited Awards);

 

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(ii)
  if the Service of Participant is terminated due to the Participant’s death or Disability, then the vested portion of his/her
then-outstanding Options/SARs/Other Equity Awards may be exercised by such Participant or his or her personal representative within
six months after the Termination Date and all unvested portions of any outstanding Awards shall be forfeited without consideration
as of the Termination Date (except for repayment of any amounts the Participant had paid to the Company to acquire unvested Shares
underlying the forfeited Awards); and

 

(iii)
  if the Service of Participant is terminated for any reason other than for Cause or other than due to death or Disability, then
the vested portion of his/her then-outstanding Options/SARs/Other Equity Awards may be exercised by such Participant within three
months after the Termination Date and all unvested portions of any outstanding Awards shall be forfeited without consideration
as of the Termination Date (except for repayment of any amounts the Participant had paid to the Company to acquire unvested Shares
underlying the forfeited Awards).

 

(i)            Intentionally
Omitted.

 

(j)            Suspension
or Termination of Awards. To the extent provided in an Award Agreement, if at any time (including after a notice of exercise
has been delivered) the Committee (or the Board), reasonably believes that a Participant has committed an act of Cause (which
includes a failure to act), the Committee (or Board) may suspend the Participant’s right to exercise any Option or SAR (or
vesting of Restricted Stock Grants or Stock Units) pending a determination of whether there was in fact an act of Cause. To the
extent provided in an Award Agreement, if the Committee (or the Board) determines a Participant has committed an act of Cause,
neither the Participant nor his or her estate shall be entitled to exercise the outstanding Option or SAR whatsoever and the Participant’s
outstanding Awards shall then terminate without consideration. Any determination by the Committee (or the Board) with respect
to the foregoing shall be final, conclusive and binding on all interested parties.

 

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(k)           Code
Section 409A. Notwithstanding anything in the Plan to the contrary, the Plan and Awards granted hereunder are intended to
comply with the requirements of Code Section 409A and shall be interpreted in a manner consistent with such intention. In the
event that any provision of the Plan or an Award Agreement is determined by the Committee to not comply with the applicable requirements
of Code Section 409A or the Treasury Regulations or other guidance issued thereunder, the Committee shall have the authority to
take such actions and to make such changes to the Plan or an Award Agreement as the Committee deems necessary to comply with such
requirements (including without limitation, after the grant date of an Award, increasing the Exercise Price to equal what was
the Fair Market Value on the grant date of the Award). Each payment to a Participant made pursuant to this Plan shall be considered
a separate payment and not one of a series of payments for purposes of Code Section 409A. Notwithstanding the foregoing or anything
elsewhere in the Plan or an Award Agreement to the contrary, if upon a Participant’s Separation From Service he/she is then
a “specified employee” (as defined in Code Section 409A), then solely to the extent necessary to comply with Code
Section 409A and avoid the imposition of taxes under Code Section 409A, the Company shall defer payment of “nonqualified
deferred compensation” subject to Code Section 409A payable as a result of and within six (6) months following such Separation
From Service under this Plan until the earlier of (i) the first (1st) business day of the seventh (7th)
month following the Participant’s Separation From Service, or (ii) ten (10) days after the Company receives written confirmation
of the Participant’s death. Any such delayed payments shall be made without interest. While it is intended that all payments
and benefits provided under this Plan will be exempt from or comply with Code Section 409A, the Company makes no representation
or covenant to ensure that the Awards and payments under this Plan are exempt from or compliant with Code Section 409A. The Company
will have no liability to any Participant or any other party if a payment or benefit under this Plan or any Award is challenged
by any taxing authority or is ultimately determined not to be exempt or compliant. Each Participant further understands and agrees
that each Participant will be entirely responsible for any and all taxes on any benefits payable to the Participant as a result
of this Plan or any Award. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that
may be imposed on a Participant by Code Section 409A or for any damages for failing to comply with Code Section 409A.

 

(l)            Electronic
Communications. Subject to compliance with applicable law and/or regulations, an Award Agreement or other documentation or
notices relating to the Plan and/or Awards may be communicated to Participants by electronic media.

 

(m)          Unfunded
Plan. Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with
respect to Participants who are granted Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience.
The Company shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this Plan
be construed as providing for such segregation, nor shall the Company or the Committee be deemed to be a trustee of stock or cash
to be awarded under the Plan.

 

(n)           Liability
of Company Plan. The Company (or members of the Board or Committee) shall not be liable to a Participant or other persons
as to: (i) the non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory body having
jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder; and (ii) any unexpected or adverse tax consequence or any tax consequence expected, but not realized, by any Participant
or other person due to the grant, receipt, exercise or settlement of any Award granted under this Plan.

 

(o)           Reformation.
In the event any provision of this Plan shall be held illegal or invalid for any reason, such provisions will be reformed
by the Board if possible and to the extent needed in order to be held legal and valid. If it is not possible to reform the illegal
or invalid provisions then the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall
be construed and enforced as if the illegal or invalid provision had not been included.

 

    12 

     

    

 

(p)           Successor
Provision. Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation, is a reference
to that statute, rule, regulation, or section as amended from time to time, both before and after the Adoption Date and including
any successor provisions.

 

(q)           Governing
Law. This Plan, and (unless otherwise provided in the Award Agreement) all Awards, shall be construed in accordance with and
governed by the laws of the State of Delaware, but without regard to its conflict of law provisions. The Committee may provide
that any dispute as to any Award shall be presented and determined in such forum as the Committee may specify, including through
binding arbitration. Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit
to the exclusive jurisdiction and venue of the federal or state courts of Delaware to resolve any and all issues that may arise
out of or relate to the Plan or any related Award Agreement.

 

(r)            No
Re-Pricing of Options or SARs or Other Equity Awards or Award of Re-Load Options. 

 

Notwithstanding
anything to the contrary, (i) outstanding Options or SARs or Other Equity Awards may not be Re-Priced and (ii) Re-Load Options
may not be awarded, in each case without the approval of Company shareholders. Moreover, any amendment to the Plan or any Award
Agreement that results in the Re-Pricing of an Option or SAR or Other Equity Award issued under the Plan shall not be effective
without prior approval of the shareholders of the Company. For this purpose, repricing includes a reduction in the Exercise Price
of an Option or a SAR or the cancellation of an Option or SAR in exchange for cash, Options or SARs or Other Equity Award with
an Exercise Price less than the Exercise Price of the cancelled Option or SAR, other Awards under the Plan or any other consideration
provided by the Company.

 

(s)           Other
Awards. The Committee may in its discretion issue Other Equity Awards and/or Cash Awards to Key Employees. The terms and conditions
of any such Awards shall be evidenced by an Award Agreement between the Participant and the Company.

 

(t)            Intentionally
Omitted.

 

(u)           Deferral
Elections. The Committee may permit a Participant to elect to defer his or her receipt of the payment of cash or the delivery
of Shares that would otherwise be due to such Participant by virtue of the exercise, earn out or vesting of an Award made under
the Plan. If any such election is permitted, the Committee shall establish rules and procedures for such payment deferrals, including
the possible (a) payment or crediting of reasonable interest on such deferred amounts credited in cash, and (b) the payment or
crediting of dividend equivalents in respect of deferrals credited in units of Common Stock. The Company and the Committee shall
not be responsible to any person in the event that the payment deferral does not result in deferral of income for tax purposes.

 

    13 

     

    

 

(v)           Payment
of Non-Employee Director Cash Fees with Equity Awards. If the Board affirmatively decides to authorize such a process, each
Non-Employee Director may elect to receive a Restricted Stock Grant (or Stock Units or Other Equity Awards) issued under the Plan
in lieu of payment of all or a portion of his or her annual cash retainer and/or any other cash fees including without limitation
meeting fees, committee service fees and participation fees. Any such elections made by a Non-Employee Director shall be effected
no later than the time permitted by applicable law and in accordance with the Company’s insider trading policies and/or
other policies. The aggregate grant date fair market value of any Restricted Stock Grants or Stock Units or Other Equity Awards
issued pursuant to this Section 4(v) is intended to be equivalent to the value of the foregone cash fees. Any cash fees not elected
to be received as a Restricted Stock Grant or Stock Units or Other Equity Awards shall be payable in cash in accordance with the
Company’s standard payment procedures. The Board in its discretion shall determine the terms, conditions and procedures
for implementing this Section 4(v) and may also modify or terminate its operation at any time.

 

SECTION
5. SHARES SUBJECT TO PLAN AND SHARE
LIMITS.

 

(a)           Basic
Limitations and Evergreen Share Reserve Increase.

 

(i)
The Common Stock issuable under the Plan shall be authorized but unissued Shares or treasury Shares. Subject to adjustment as
provided in Section 11, the maximum aggregate number of Shares that may be issued:

 

(A)
under the Plan shall not exceed 4,000,000 Shares (the “Share Limit”); and

 

(B)
pursuant to the exercise of ISOs granted under this Plan shall not exceed 4,000,000 Shares (the “ISO Limit”).

 

(ii)
Notwithstanding Section 5(a)(i) hereof, on the first day of each fiscal year commencing on January 1, 2019, the Share Limit and
the ISO Limit shall automatically be increased by that number of shares equal to the lowest of:

 

(A)
1,000,000 shares of our Common Stock;

 

(B)
5% of the number of shares of our Common Stock outstanding as of such date; and

 

(C)
an amount determined by the Committee.

 

(b)           Share
Accounting. This Section 5(b) describes the Share accounting process for Awards issued under the Plan with respect to the
Share Limit and ISO Limit.

 

(i)
There shall be counted against the numerical limitations in Section 5(a) the gross number of Shares subject to issuance upon
exercise or used for determining payment or settlement of Awards. The below clauses (ii), (iii), (iv), (v) and (vi) of this Section
5(b) seek to clarify the intent of the foregoing sentence. The Shares issued (or settled) under an Award will be counted against
the Share Limit (and ISO Limit if the Award is an ISO) at the time(s) of exercise or settlement of the Award. For avoidance of
doubt, Shares that are withheld as payment for the Award’s Exercise Price or applicable withholding taxes shall be counted
against the Share Limit (and ISO Limit if the Award is an ISO).

 

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(ii)
For avoidance of doubt, each Share issued (or settled or exercised) under any Award shall be counted against the Share Limit as
one Share.

 

(iii)
For avoidance of doubt, whether or not a SAR is settled with any Shares, the gross number of Shares subject to the exercise and
which are used for determining the benefit payable under such SAR shall be counted against the Share Limit, regardless of the
number of Shares actually used to settle the SAR upon such exercise.

 

(iv)
For avoidance of doubt, to the extent an Option is exercised via a Cashless Exercise or Net Exercise or is not otherwise fully
settled with Shares, then the gross number of Shares subject to the exercise and which are used for determining the benefit payable
under such Option shall be counted against the Share Limit (and shall also count against the ISO Limit if the Option being exercised
is an ISO), regardless of the number of Shares actually issued to the Participant upon such exercise.

 

(v)
If any portion of an Award is forfeited, terminated without consideration, or expires unexercised, (collectively, “Forfeited
Shares”), the gross number of such Forfeited Shares shall again be available for Awards under the Plan and shall not be
counted against the Share Limit or ISO Limit.

 

(v)
For avoidance of doubt, if any Awards are settled or paid in cash in lieu of stock and/or are exchanged for other Awards (collectively,
“Settled Shares”), the gross number of such Settled Shares shall be counted against the Share Limit (and ISO Limit
if the Award is an ISO).

 

(c)           Substitute
Awards. Any Substitute Awards including without limitation any Shares that are delivered and any Awards that are granted by,
or become obligations of, the Company, as a result of the assumption by the Company of, or in substitution for, outstanding awards
previously granted by another entity (as provided below) shall not be counted toward the Share Limit or ISO Limit. Substitute
Awards shall not count toward the Share Limit, nor shall Shares subject to a Substitute Award again be available for Awards under
the Plan as provided in Section 5(b) above. Additionally, in the event that a company acquired by the Company or any Parent or
any Subsidiary or any Affiliate or with which the Company or any Parent or any Subsidiary or any Affiliate combines has shares
available under a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination,
the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using
the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the
consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for
Awards under the Plan and shall not count toward the Share Limit; provided that Awards using such available shares shall not be
made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or
combination, and shall only be made to individuals who were not Employees or Board members prior to such acquisition or combination.

 

    15 

     

    

 

(d)           Dividend
Equivalents. Any dividend equivalents distributed under the Plan in the form of Shares shall be counted against the Share
Limit (with each Share that is distributed counting as one Share against the Share Limit). Dividend equivalents will not be paid
(or accrue) on unexercised Options or unexercised SARs.

 

SECTION
6. TERMS AND CONDITIONS OF OPTIONS.

 

(a)           Stock
Option Agreement. Each Award of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee
and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other
terms and conditions that are not inconsistent with the Plan (including without limitation any performance conditions). The provisions
of the various Stock Option Agreements entered into under the Plan need not be identical. The Stock Option Agreement shall also
specify whether the Option is an ISO and if not specified then the Option shall be an NSO.

 

(b)           Number
of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide
for the adjustment of such number in accordance with Section 11.

 

(c)           Exercise
Price. An Option’s Exercise Price shall be established by the Committee and set forth in a Stock Option Agreement. Except
with respect to (i) outstanding stock options being assumed or (ii) Options being granted in exchange for cancellation of options
granted by another issuer as provided under Section 6(e) or (iii) an NSO granted with a per share Exercise Price that is less
than the per Share Fair Market Value on the date of Award and further provided that the Committee expressly acknowledges in its
granting resolutions its awareness that such Option may be subject to the requirements of Code Section 409A, the Exercise Price
of an Option shall not be less than 100% of the Fair Market Value (110% for 10-Percent Shareholders in the case of ISOs) of a
Share on the date of Award.

 

    16 

     

    

 

(d)           Exercisability
and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become vested
and/or exercisable. The Stock Option Agreement shall also specify the term of the Option; provided, however that the term of an
Option shall in no event exceed ten (10) years from the date of Award. An ISO that is granted to a 10-Percent Shareholder shall
have a maximum term of five (5) years. No Option can be exercised after the expiration date specified in the applicable Stock
Option Agreement. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death,
Disability or retirement or other events. A Stock Option Agreement may permit an Optionee to exercise an Option before it is vested
(an “early exercise”), subject to the Company’s right of repurchase at the original Exercise Price of any Shares
acquired under the unvested portion of the Option which right of repurchase shall lapse at the same rate the Option would have
vested had there been no early exercise. In no event shall the Company be required to issue fractional Shares upon the exercise
of an Option and the Committee may specify a minimum number of Shares that must be purchased in any one Option exercise.

 

(e)           Modifications
or Assumption of Options. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding Options
or may accept the cancellation of outstanding stock options (whether granted by the Company or by another issuer) in return for
the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price. No modification
of an Option shall, without the consent of the Optionee, impair his or her rights or increase his or her obligations under such
Option.

 

(f)           Assignment
or Transfer of Options. Except as otherwise provided in the applicable Stock Option Agreement and then only to the extent
permitted by applicable law, no Option shall be transferable by the Optionee other than by will or by the laws of descent and
distribution. Except as otherwise provided in the applicable Stock Option Agreement, an Option may be exercised during the lifetime
of the Optionee only by Optionee or by the guardian or legal representative of the Optionee. Except as otherwise provided in the
applicable Stock Option Agreement, no Option or interest therein may be subject to a short position nor may any Option or interest
therein be gifted, transferred, assigned, alienated, pledged, hypothecated, attached, sold, or encumbered by the Optionee during
his/her lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process.

 

SECTION
7. PAYMENT FOR OPTION SHARES.

 

(a)           General
Rule. The entire Exercise Price of Shares issued upon exercise of Options shall be payable in cash (or check) at the time
when such Shares are purchased by the Optionee, except as follows and if so provided for in an applicable Stock Option Agreement:

 

(i)            In
the case of an ISO granted under the Plan, payment shall be made only pursuant to the express provisions of the applicable Stock
Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Section 7.

 

(ii)           In
the case of an NSO granted under the Plan, the Committee may in its discretion, at any time accept payment in any form(s) described
in this Section 7.

 

    17 

     

    

 

(b)           Surrender
of Stock. To the extent that the Committee makes this Section 7(b) applicable to an Option in a Stock Option Agreement, payment
for all or any part of the Exercise Price may be made with Shares which have already been owned by the Optionee for such duration
as shall be specified by the Committee. Such Shares shall be valued at their Fair Market Value on the date when the new Shares
are purchased under the Plan.

 

(c)           Cashless
Exercise. To the extent that the Committee makes this Section 7(c) applicable to an Option in a Stock Option Agreement, payment
for all or a part of the Exercise Price may be made through Cashless Exercise.

 

(d)           Net
Exercise. To the extent that the Committee makes this Section 7(d) applicable to an Option in a Stock Option Agreement, payment
for all or a part of the Exercise Price may be made through Net Exercise.

 

(e)           Other
Forms of Payment. To the extent that the Committee makes this Section 7(e) applicable to an Option in a Stock Option Agreement,
payment may be made in any other form that is consistent with applicable laws, regulations and rules and approved by the Committee.

 

SECTION
8. TERMS AND CONDITIONS OF STOCK APPRECIATION
RIGHTS.

 

(a)           SAR
Agreement. Each Award of a SAR under the Plan shall be evidenced by a SAR Agreement between the Participant and the Company.
Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan (including without limitation any performance conditions). A SAR Agreement may provide for a maximum limit on the
amount of any payout notwithstanding the Fair Market Value on the date of exercise of the SAR. The provisions of the various SAR
Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Participant’s
other compensation.

 

(b)           Number
of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and is subject to adjustment of
such number in accordance with Section 11.

 

(c)           Exercise
Price. Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance
with a predetermined formula while the SAR is outstanding. Except with respect to outstanding stock appreciation rights being
assumed or SARs being granted in exchange for cancellation of stock appreciation rights granted by another issuer as provided
under Section 8(f), the Exercise Price of a SAR shall not be less than 100% of the Fair Market Value on the date of Award.

 

    18 

     

    

 

(d)           Exercisability
and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR which shall not exceed ten (10) years from the date of Award. No SAR can be exercised
after the expiration date specified in the applicable SAR Agreement. A SAR Agreement may provide for accelerated exercisability
in the event of the Participant’s death, or Disability or other events. SARs may be awarded in combination with Options
or other Awards, and such an Award may provide that the SARs will not be exercisable unless the related Options or other Awards
are forfeited. A SAR may be included in an ISO only at the time of Award but may be included in an NSO at the time of Award or
at any subsequent time, but not later than six (6) months before the expiration of such NSO. A SAR granted under the Plan may
provide that it will be exercisable only in the event of a Change in Control.

 

(e)           Exercise
of SARs. If, on the date when a SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such
date but any portion of such SAR has not been exercised or surrendered, then such SAR may automatically be deemed to be exercised
as of such date with respect to such portion to the extent so provided in the applicable SAR agreement. Upon exercise of a SAR,
the Participant (or any person having the right to exercise the SAR after Participant’s death) shall receive from the Company
(i) Shares, (ii) cash or (iii) any combination of Shares and cash, as the Committee shall determine. The amount of cash and/or
the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair
Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price of the Shares.

 

(f)           Modification
or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or
may accept the cancellation of outstanding SARs (including stock appreciation rights granted by another issuer) in return for
the grant of new SARs for the same or a different number of Shares and at the same or a different Exercise Price. No modification
of a SAR shall, without the consent of the Participant, impair his or her rights or increase his or her obligations under such
SAR.

 

(g)           Assignment
or Transfer of SARs. Except as otherwise provided in the applicable SAR Agreement and then only to the extent permitted by
applicable law, no SAR shall be transferable by the Participant other than by will or by the laws of descent and distribution.
Except as otherwise provided in the applicable SAR Agreement, a SAR may be exercised during the lifetime of the Participant only
by the Participant or by the guardian or legal representative of the Participant. No SAR or interest therein may be transferred,
assigned, alienated, pledged, hypothecated, attached, sold, or encumbered by the Participant during his or her lifetime, whether
by operation of law or otherwise, or be made subject to execution, attachment or similar process.

 

SECTION
9. TERMS AND CONDITIONS FOR RESTRICTED
STOCK GRANTS.

 

(a)           Restricted
Stock Grant Agreement. Each Restricted Stock Grant awarded under the Plan shall be evidenced by a Restricted Stock Grant Agreement
between the Participant and the Company. Each Restricted Stock Grant shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan (including without limitation
any performance conditions). The provisions of the Restricted Stock Grant Agreements entered into under the Plan need not be identical.

 

    19 

     

    

 

(b)           Number
of Shares and Payment. Each Restricted Stock Grant Agreement shall specify the number of Shares to which the Restricted Stock
Grant pertains and is subject to adjustment of such number in accordance with Section 11. Restricted Stock Grants may be issued
with or without cash consideration under the Plan.

 

(c)           Vesting
Conditions. Each Restricted Stock Grant may or may not be subject to vesting. Vesting shall occur, in full or in installments,
upon satisfaction of the conditions specified in the Restricted Stock Grant Agreement. A Restricted Stock Grant Agreement may
provide for accelerated vesting in the event of the Participant’s death, or Disability or other events.

 

(d)           Voting
and Dividend Rights. The holder of a Restricted Stock Grant (irrespective of whether the Shares subject to the Restricted
Stock Grant are vested or unvested) awarded under the Plan shall have the same voting, dividend and other rights as other holders
of Common Stock. However, any dividends received on Shares that are unvested (whether such dividends are in the form of cash or
Shares) may be subject to the same vesting conditions and restrictions as the Restricted Stock Grant with respect to which the
dividends were paid. Such additional Shares issued as dividends that are subject to the Restricted Stock Grant shall not reduce
the number of Shares available for issuance under Section 5.

 

(e)           Modification
or Assumption of Restricted Stock Grants. Within the limitations of the Plan, the Committee may modify or assume outstanding
Restricted Stock Grants or may accept the cancellation of outstanding Restricted Stock Grants (including stock granted by another
issuer) in return for the grant of new Restricted Stock Grants for the same or a different number of Shares. No modification of
a Restricted Stock Grant shall, without the consent of the Participant, impair his or her rights or increase his or her obligations
under such Restricted Stock Grant.

 

(f)           Assignment
or Transfer of Restricted Stock Grants. Except as provided in Section 14, or in a Restricted Stock Grant Agreement, or as
required by applicable law, a Restricted Stock Grant awarded under the Plan shall not be anticipated, assigned, attached, garnished,
optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law.
Any act in violation of this Section 9(f) shall be void. However, this Section 9(f) shall not preclude a Participant from designating
a beneficiary pursuant to Section 4(d) nor shall it preclude a transfer of Restricted Stock Grant Awards by will or pursuant to
Section 4(d).

 

SECTION
10. TERMS AND CONDITIONS FOR STOCK
UNITS.

 

(a)           Stock
Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the Participant
and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that
are not inconsistent with the Plan (including without limitation any performance conditions). The provisions of the various Stock
Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction
in the Participant’s other compensation.

 

    20 

     

    

 

(b)           Number
of Shares and Payment. Each Stock Unit Agreement shall specify the number of Shares to which the Stock Unit Award pertains
and is subject to adjustment of such number in accordance with Section 11. To the extent that an Award is granted in the form
of Stock Units, no cash consideration shall be required of the Award recipients.

 

(c)           Vesting
Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments,
upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated
vesting in the event of the Participant’s death, or Disability or other events.

 

(d)           Voting
and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock
Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right
entitles the holder to be credited with an amount equal to all cash or Common Stock dividends paid on one Share while the Stock
Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may
be made in the form of cash, in the form of Shares, or in a combination of both. Prior to vesting of the Stock Units, any dividend
equivalents accrued on such unvested Stock Units may be subject to the same vesting conditions and restrictions as the Stock Units
to which they attach.

 

(e)           Modification
or Assumption of Stock Units. Within the limitations of the Plan, the Committee may modify or assume outstanding Stock Units
or may accept the cancellation of outstanding Stock Units (including stock units granted by another issuer) in return for the
grant of new Stock Units for the same or a different number of Shares. No modification of a Stock Unit shall, without the consent
of the Participant, impair his or her rights or increase his or her obligations under such Stock Unit.

 

(f)            Assignment
or Transfer of Stock Units. Except as provided in Section 14, or in a Stock Unit Agreement, or as required by applicable law,
Stock Units shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s
process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section 10(f) shall be void.
However, this Section 10(f) shall not preclude a Participant from designating a beneficiary pursuant to Section 4(d) nor shall
it preclude a transfer of Stock Units pursuant to Section 4(d).

 

(g)           Form
and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or
(c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger
or smaller than the number included in the original Award. Methods of converting Stock Units into cash may include (without limitation)
a method based on the average Fair Market Value of Shares over a series of trading days. Except as otherwise provided in a Stock
Unit Agreement or a timely completed deferral election, vested Stock Units shall be settled within thirty (30) days after vesting.
The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed,
or it may be deferred, in accordance with applicable law, to a later specified date. The amount of a deferred distribution may
be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock
Units shall be subject to adjustment pursuant to Section 11.

 

    21 

     

    

 

(h)           Creditors’
Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent
an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement.

 

SECTION
11. ADJUSTMENTS.

 

(a)           Adjustments.
In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend
payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation
of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, a stock split, a reverse stock split,
a reclassification or other distribution of the Shares without the receipt of consideration by the Company, of or on the Common
Stock, a recapitalization, a combination, a spin-off or a similar occurrence, the Committee shall make equitable and proportionate
adjustments to:

 

(i)            the
Share Limit and ISO Limit specified in Section 5(a);

 

(ii)           the
number and kind of securities available for Awards (and which can be issued as ISOs) under Section 5;

 

(iii)          the
number and kind of securities covered by each outstanding Award;

 

(iv)          the
Exercise Price under each outstanding Option and SAR and Other Equity Award; and

 

(v)           the
number and kind of outstanding securities issued under the Plan.

 

(b)           Participant
Rights. Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the Company of
stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any
class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. If by
reason of an adjustment pursuant to this Section 11, a Participant’s Award covers additional or different shares of stock
or securities, then such additional or different shares and the Award in respect thereof shall be subject to all of the terms,
conditions and restrictions which were applicable to the Award and the Shares subject to the Award prior to such adjustment.

 

(c)           Fractional
Shares. Any adjustment of Shares pursuant to this Section 11 shall be rounded down to the nearest whole number of Shares.
Under no circumstances shall the Company be required to authorize or issue fractional shares. To the extent permitted by applicable
law, no consideration shall be provided as a result of any fractional shares not being issued or authorized.

 

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SECTION
12. EFFECT OF A CHANGE IN CONTROL.

 

(a)           Merger
or Reorganization. In the event that there is a Change in Control and/or the Company is a party to a merger or acquisition
or reorganization or Change in Control Event or similar transaction, outstanding Awards shall be subject to the merger agreement
or other applicable transaction agreement. Such agreement may provide, without limitation, that subject to the consummation of
the applicable transaction, for the assumption (or substitution) of outstanding Awards by the surviving corporation or its parent,
for their continuation by the Company (if the Company is a surviving corporation), for accelerated vesting or for their cancellation
with or without consideration, or for the mandatory exercise or conversion of Awards into Shares and/or cash whether by Net Exercise
or otherwise, in all cases without the consent of the Participant.

 

(b)           Acceleration
of Vesting. In the event that a Change in Control occurs and there is no assumption, substitution or continuation of Awards
pursuant to Section 12(a), the Committee in its discretion may provide that some or all Awards shall vest and become exercisable
in connection with such Change in Control. For avoidance of doubt, “substitution” includes, without limitation, an
Award being replaced by a cash award that provides an equivalent intrinsic value (wherein intrinsic value equals the difference
between the market value of a share and any exercise price). The Committee may also in its discretion include in an Award Agreement
a requirement that, under certain circumstances, acceleration of vesting (or compensation payable) with respect to such Award
shall be reduced (or eliminated) to the extent that such reduction (or elimination) would, after taking into account any other
payments in the nature of compensation to which the Participant would have a right to receive from the Company and any other person
contingent upon the occurrence of a Change in Control, prevent the occurrence of a “parachute payment” as defined
under Code Section 280G.

 

SECTION
13. LIMITATIONS ON RIGHTS.

 

(a)           Retention
Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain in
Service as an Employee, Consultant, or Non-Employee Director of the Company, a Parent, a Subsidiary or an Affiliate or to receive
any future Awards under the Plan. he Company and its Parents and Subsidiaries and Affiliates reserve the right to terminate the
Service of any person at any time, and for any reason, subject to applicable laws, the Company’s Bylaws and Charter and
a written employment agreement (if any).

 

(b)           Regulatory
Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Shares or other securities
under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may
be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares or other securities pursuant
to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares or other securities,
to their registration, qualification or listing or to an exemption from registration, qualification or listing.

 

    23 

     

    

 

(c)           Dissolution.
To the extent not previously exercised or settled, all Options, SARs, Stock Units, Cash Awards, Other Equity Awards and unvested
Restricted Stock Grants shall terminate immediately prior to the dissolution or liquidation of the Company and shall be forfeited
to the Company without consideration (except for repayment of any amounts a Participant had paid to the Company to acquire unvested
Shares underlying the forfeited Awards).

 

(d)           Clawback
Policy. The Company may (i) cause the cancellation of any Award, (ii) require reimbursement of any Award by a Participant
and (iii) effect any other right of recoupment of equity or other compensation provided under this Plan or otherwise in accordance
with Company policies and/or applicable law (each, a “Clawback Policy”). In addition, a Participant may be required
to repay to the Company certain previously paid compensation, whether provided under this Plan or an Award Agreement or otherwise,
in accordance with the Clawback Policy. By accepting an Award, a Participant is also agreeing to be bound by the Company’s
Clawback Policy which may be amended from time to time by the Company in its discretion (including without limitation to comply
with applicable laws or stock exchange requirements) and is further agreeing that all of the Participant’s Awards may be
unilaterally amended by the Company to the extent needed to comply with the Clawback Policy.

 

SECTION
14. WITHHOLDING TAXES.

 

(a)           General.
A Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that
arise in connection with his or her Award. The Company shall not be required to issue any Shares or make any cash payment under
the Plan until such obligations are satisfied and the Company shall, to the extent permitted by law, have the right to deduct
any such taxes from any payment of any kind otherwise due to the Participant.

 

(b)           Share
Withholding. The Committee in its discretion may permit or require a Participant to satisfy all or part of his or her withholding
tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or
by surrendering all or a portion of any Shares that he or she previously acquired (or by stock attestation). Such Shares shall
be valued based on the value of the actual trade or, if there is none, the Fair Market Value as of the previous day. Any payment
of taxes by assigning Shares to the Company may be subject to restrictions, including, but not limited to, any restrictions required
by rules of the SEC. The Committee may also, in its discretion, permit or require a Participant to satisfy withholding tax obligations
related to an Award through a sale of Shares underlying the Award or, in the case of Options, through Net Exercise or Cashless
Exercise. The number of Shares that are withheld from an Award pursuant to this section may also be limited by the Committee,
to the extent necessary, to avoid liability-classification of the Award (or other adverse accounting treatment) under applicable
financial accounting rules including without limitation by requiring that no amount may be withheld which is in excess of the
applicable maximum statutory withholding rates. The Committee, in its discretion, may permit other forms of payment of applicable
tax withholding.

 

    24 

     

    

 

SECTION
15. DURATION AND AMENDMENTS.

 

(a)           Term
of the Plan. The Plan, as set forth herein, is effective on the Adoption Date. The Plan shall terminate on the day before
the tenth (10th) anniversary of the Adoption Date and may be terminated on any earlier date pursuant to this Section
15. This Plan will not in any way affect outstanding awards that were issued under any other Company equity compensation plans.

 

(b)           Right
to Amend or Terminate the Plan. The Board may amend or terminate the Plan at any time and for any reason. No Awards shall
be granted under the Plan after the Plan’s termination. An amendment of the Plan shall be subject to the approval of the
Company’s shareholders only to the extent required by applicable laws, regulations or rules. In addition, no such amendment
or termination (or amendment of an executed Award Agreement) shall be made which would materially impair the rights of any Participant,
without such Participant’s written consent, under any then-outstanding Award. In the event of any conflict in terms between
the Plan and any Award Agreement, the terms of the Plan shall prevail and govern.

 

SECTION
16. EXECUTION.

 

To
record the adoption of the Plan by the Board, the Company has caused its duly authorized Officer to execute this Plan on behalf
of the Company.

 

	 	HOTH THERAPEUTICS, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Name: Robb Knie
	 	 	 
	 	Title: Chief Executive Officer

 

    25Exhibit 10.13

SECURITIES PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”) is dated as of June 30, 2017, between Hoth Therapeutics, Inc., a Nevada
corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

NOW, THEREFORE,
IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE I

DEFINITIONS

1.1            Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

“Action”
shall have the meaning ascribed to such term in Section 3.1(i).

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

“Board
of Directors” means the board of directors of the Company.

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived.

“Commission”
means the United States Securities and Exchange Commission.

    -1- 

     

    

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

“Company
Counsel” means Sheppard Mullin Richter & Hampton LLP, with offices located at 30 Rockefeller Plaza, New York, New
York 10112-0015.

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

“EGS”
means Ellenoff Grossman & Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105-0302.

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

“Going
Public Event” means the earlier to occur of (i) Company’s offering of securities pursuant to an effective registration
statement (including, without limitation, a Registration Statement) pursuant to the Securities Act or (ii) the Company’s
merger, consolidation, transfer, or share exchange transaction pursuant to which the Company becomes subject to the reporting requirements
of the Exchange Act.

“Going
Public Event Date” means the date of the effectiveness of the Going Public Event.

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(r).

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(m).

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

“Liens”
means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

“Per
Share Purchase Price” equals $$0.09926471, subject to adjustment for reverse and forward stock splits, stock dividends,
stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

    -2- 

     

    

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

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

“Registration
Rights Agreement” means the Registration Rights Agreement, dated on or about the date hereof, among the Company and the
Purchasers, in the form of Exhibit A attached hereto.

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale by the Purchasers of the Shares.

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

“Securities”
means the Shares.

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

“Shareholders
Agreement” means the Shareholders Agreement, dated on or about the date hereof, by and among the Company, the Purchasers
and the current stockholders of the Company, in the form of Exhibit C attached hereto

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below
such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

    -3- 

     

    

“Subsidiary”
means, if applicable, any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include
any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

“Trading
Day” means a day on which the principal Trading Market is open for trading.

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

“Transaction
Documents” means this Agreement, the Registration Rights Agreement, the Shareholders Agreement, all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer
Agent” means, as to any date in question following the Going Public Event Date, the then transfer agent of the Company
and any successor thereto.

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then
reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

ARTICLE II

PURCHASE AND SALE

2.1       Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, up to an aggregate of $675,000 of Shares. Each Purchaser shall deliver to the Company, via wire transfer or
a certified check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature
page hereto executed by such Purchaser, and the Company shall deliver to each Purchaser its respective Shares as determined pursuant
to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the
Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices
of EGS or such other location as the parties shall mutually agree.

    -4- 

     

    

2.2           Deliveries.

(a)       On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

(i)       this
Agreement duly executed by the Company;

(ii)       a
legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto;

(iii)       (iii)
a certificate evidencing a number of Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase
Price, registered in the name of such Purchaser;

(iv)       the
Shareholders Agreement duly executed by the Company and each of the stockholders of the Company; and

(v)       the
Registration Rights Agreement duly executed by the Company.

(b)       On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

(i)       this
Agreement duly executed by such Purchaser;

(ii)       such
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company;

(iii)       the
Shareholders Agreement duly executed by such Purchaser; and

(iv)       the
Registration Rights Agreement duly executed by such Purchaser.

2.3       Closing
Conditions.

(a)       The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(i)       the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as
of a specific date therein in which case they shall be accurate as of such date);

    -5- 

     

    

(ii)       all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

(iii)       the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)       The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

(i)       the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

(ii)       all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

(iii)       the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

(iv)       there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

(v)       from
the date hereof to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended
or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, nor shall
a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred
any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect
on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser,
makes it impracticable or inadvisable to purchase the Securities at the Closing.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

3.1         Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

(a)       Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

    -6- 

     

    

(b)       Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

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

    -7- 

     

    

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

(e)       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) the
filing with the Commission pursuant to the Registration Rights Agreement and (ii) the filing of Form D with the Commission and
such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

(f)       Issuance
of the Securities. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital
stock the maximum number of shares of Common Stock issuable pursuant to this Agreement.

(g)       Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g). Other than pursuant to the Shareholders Agreement,
no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents. All of the outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or
purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for
the issuance and sale of the Securities. Other than the Shareholders Agreement, there are no stockholders agreements, voting agreements
or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders.

    -8- 

     

    

(h)       [Intentionally
Omitted]

(i)       Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or 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.

(j)       Labor
Relations. To the knowledge of the Company, no executive officer of the Company or any Subsidiary is, or is now expected to
be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement
or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the
continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with
respect to any of the foregoing matters.

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

(l)       Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real
property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable
leases with which the Company and the Subsidiaries are in compliance.

    -9- 

     

    

(m)       Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as necessary or required for use in connection with their respective businesses and which the failure to so
have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and neither
the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired,
terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this
Agreement. Neither the Company nor any Subsidiary has received a written notice of a claim or otherwise has any knowledge that
the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected
to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and
there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(n)       Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection
with the transactions contemplated by the Transaction Documents.

(o)       Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated
hereby.

(p)       Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

    -10- 

     

    

(q)       Disclosure.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and
correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make
the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges
and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3.2 hereof.

(r)       Solvency.
The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing
and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which
lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date. Schedule 3.1(r) sets forth as of the date hereof all outstanding secured and unsecured
Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of
this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed, (y) all guaranties,
endorsements and other contingent obligations in respect of indebtedness of others, except guaranties by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary course of business, and (z) the present value of
any lease payments. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

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

(t)       Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer,
agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

(u)       No
Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a
Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure
obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.

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(v)       Other
Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person) that has been or will be paid
(directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities.

(w)       Notice
of Disqualification Events. The Company will notify the Purchasers in writing, prior to the Closing Date of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Issuer Covered Person.

3.2       Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they
shall be accurate as of such date):

(a)       Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

(b)       Own
Account. Such Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business.

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(c)       Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

(d)       Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

(e)       General
Solicitation. Such Purchaser is not, to such Purchaser’s knowledge, purchasing the Securities as a result of any advertisement,
article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or
general advertisement.

The Company acknowledges and agrees
that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on
the Company’s representations and warranties contained in this Agreement or any representations and warranties contained
in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transactions contemplated hereby.

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

4.1          Transfer
Restrictions.

(a)       The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the
terms of this Agreement and the Registration Rights Agreement and shall have the rights and obligations of a Purchaser under this
Agreement and the Registration Rights Agreement.

(b)       The
Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the
following form:

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THIS SECURITY HAS 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 (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED
BY SUCH SECURITIES.

The Company
acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms of such arrangement, such Purchaser
may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to
approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection
therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will
execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection
with a pledge or transfer of the Securities, including, if the Securities are subject to registration pursuant to the Registration
Rights Agreement, the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act
or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders (as defined in the
Registration Rights Agreement) thereunder.

(c)       Certificates
evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof), (i) while a registration
statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, (ii)
following any sale of such Shares pursuant to Rule 144, (iii) if such Shares are eligible for sale under Rule 144, or (iv) if such
legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent and/or
the Purchaser if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser,
respectively. The Company agrees that, at such time as such legend is no longer required under this Section 4.1(c), it will, not
later than the earlier of (i) three (3) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period
(as defined below) following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Shares
issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be
delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company
may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in this Section 4. Certificates for Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent
to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed
by such Purchaser. As used herein, “Standard Settlement Period” means, following the Going Public Event Date,
the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect
to the Common Stock as in effect on the date of delivery of a certificate representing Shares issued with a restrictive legend.

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(d)       Each
Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities are sold pursuant to a Registration Statement, they will be sold in compliance
with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

4.2       Exchange
Act Reporting. On or before the earlier of (x) the 60th calendar day following the Going Public Event Date or (y) the date
on which the Company’s securities (or any successor’s securities) are listed or quoted on a Trading Market, the Company
shall cause its Common Stock to be registered under Section 12(b) or 12(g) of the Exchange Act. Following the date on which the
Company becomes subject to the Exchange Act, and until the time that the Purchasers hold no Shares, the Company covenants to timely
file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by
the Company pursuant to the Exchange Act, provided that, if after becoming subject to the Exchange Act, the Company is thereafter
no longer required to file reports pursuant to the Exchange Act, the Company will, for as long as any Purchaser owns Shares, prepare
and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the
Purchasers to sell the Securities, including without limitation, under Rule 144. The Company further covenants that Company will
take such further action as any holder of Securities may reasonably request, to the extent required from time to time to enable
such Person to sell such Securities without registration under the Securities Act, including, without limitation, within the requirements
of the exemption provided by Rule 144.

4.3       Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities.

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4.4       Securities
Laws Disclosure; Publicity. On or before the Going Public Event Date, the Company agrees to publicly disclose all material,
non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective
officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition,
effective upon the Going Public Event Date, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand,
shall terminate. The Company shall consult with each Purchaser in issuing any press releases with respect to the transactions contemplated
hereby and the Company shall not issue any such press release or otherwise make any such public statement with respect to the transactions
contemplated hereby without the prior consent of each Purchaser, except if such disclosure is required by law, in which case the
Company shall promptly provide each Purchaser with prior notice of such public statement or communication, or if such disclosure
is in connection with a registration statement (including a Registration Statement). The Company acknowledges that a Purchaser
that is a publicly reporting company may publicly disclose the transactions contemplated hereby, including, without limitation,
in a press release or on a Current Report on Form 8-K.

4.5       Non-Public
Information. From and after the Going Public Event Date, the Company covenants and agrees that neither the Company nor any
other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or
the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented
to the receipt of such information and agreed with the Company to keep such information confidential. From and after the Going
Public Event Date, to the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s
consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to Company, any
of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company,
and of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. From and after the
Going Public Event Date, to the extent that any notice provided pursuant to any Transaction Document constitutes, or contains,
material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Company understands and confirms that each Purchaser shall be relying
on the foregoing covenants in effecting transactions in securities of the Company.

4.6       Use
of Proceeds. Except as set forth on Schedule 4.6 attached hereto, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes.

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4.7       Indemnification
of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Party in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an
Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such
action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents
or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser
Party of state or federal securities laws or any conduct by such Purchaser Parties which constitutes fraud, gross negligence, willful
misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material
issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible
for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser
Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written
consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim,
damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants
or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required
by this Section 4.7 shall be made by periodic payments of the amount thereof during the course of the investigation or defense,
as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of
action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to
pursuant to law.

4.8       Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company
to issue Shares pursuant to this Agreement.

4.9       Listing
of Common Stock. From and after the Going Public Event Date, the Company shall, if applicable: (i) in the time and manner required
by the principal Trading Market, prepare and file with such Trading Market an additional shares listing application covering the
Shares, (ii) take all necessary steps to cause such Shares to be approved for listing or quotation on such Trading Market as soon
as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation; and (iv) maintain the listing or
quotation of the Shares on such Trading Market or another Trading Market. From and after the Going Public Event Date, the Company
agrees to establish and maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company
or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company
or such other established clearing corporation in connection with such electronic transfer.

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4.10       Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision 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 Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

4.11       Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

4.12       [Intentionally
Omitted]

4.13       Distribution
of Shares. In the event that Spherix determines to distribute the Shares or any securities of the Company held by Spherix to
its shareholders, the Company covenants to use best efforts to do and perform and cause to be done and performed all such further
acts and things and shall execute and deliver all such further agreements, certificates, instruments and documents as Spherix may
reasonably request to effect such distribution of Shares or securities to the shareholders of Spherix.

ARTICLE V

MISCELLANEOUS

5.1       Termination.
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before July 7, 2017; provided, however, that such termination will not affect the right of any party
to sue for any breach by any other party (or parties).

5.2       Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all fees, stamp taxes
and other taxes and duties levied in connection with the delivery of any Shares to the Purchasers.

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5.3       Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

5.4       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the e-mail address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment at the e-mail address as set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service
or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto. From and after the Going Public Event Date, to the extent that any
notice provided pursuant to any Transaction Document constitutes, or contains material, non-public information regarding the Company
or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.

5.5       Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers holding at least 67% in interest of the Shares then outstanding or,
in the case of a waiver, by the party against whom enforcement of any such waived provision is sought, provided that if any amendment,
modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately
impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately,
materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations
of the other Purchasers shall require the prior written consent of such adversely affected Purchaser, Any amendment effected in
accordance with accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

5.6       Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

5.7       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

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5.8       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.7.

5.9       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action
or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party hereto shall commence
an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company
under Section 4.7, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

5.10       Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

5.11       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

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5.12       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

5.13       Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights.

5.14       Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

5.15       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

5.16       Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

    -21- 

     

    

5.17       Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereof or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
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 Purchaser 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 Purchaser
to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through EGS. EGS does not represent all of the
Purchasers and only represents Spherix. The Company has elected to provide all Purchasers with the same terms and Transaction Documents
for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.

5.18       Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

5.19       Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

5.20       Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

5.21       WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

    -22- 

     

    

(Signature Pages Follow)

    -23- 

     

    

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

	HOTH THERAPEUTICS, INC.	 	Address for Notice:
	 	 	 	 	 
	By:	 	 	 	 
	 	Name: Robb Knie	 	 	 
		Title:   Chief Executive Officer	 	Fax:	 
	 	 	 	 	 
	 	 	 	E-Mail:	rknie@mac.com

	With a copy to (which shall not constitute notice)	 
	
        Sheppard, Mullin, Richter & Hampton LLP

        30 Rockefeller Plaza, 39th Floor

        New York, New York 10112

        Attn: Richard A. Friedman, Esq.

        Tel: (212) 653-8700

        Fax: (212) 653-8701

        E-Mail: rafriedman@sheppardmullin.com
	 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

    -24- 

     

    

[PURCHASER SIGNATURE PAGES TO HOTH THERAPEUTICS

SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

Name of Purchaser: _______________________________________________________________

Signature of Authorized Signatory
of Purchaser: _______________________________________________________________

Name of Authorized Signatory: _______________________________________________________________

Title of Authorized Signatory: _______________________________________________________________

Email Address of Authorized Signatory:
 _______________________________________________________________

Facsimile Number of Authorized Signatory:  _______________________________________________________________

Address for Notice to Purchaser: _______________________________________________________________

Address for Delivery of Securities
to Purchaser (if not same as address for notice):

Subscription Amount: $ ______________

Shares: ______________

EIN Number:  ______________

[SIGNATURE PAGES CONTINUE]

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