Document:

ex_10-2.htm

EXHIBIT 10.2

 

 

COMMON STOCK PURCHASE AGREEMENT

 

 

 

This Common Stock Purchase Agreement (“Agreement”) is made and entered into as of September 13, 2011 (“Execution Date”), by and between ULURU Inc., a Nevada corporation (“Company”), and Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”).

 

Recitals

 

A. The parties desire that, upon the terms and subject to the conditions herein, Purchaser will purchase $969,000 in shares of Common Stock of Company, at a price per Share equal to 102% of the Closing Price on the Trading Day immediately preceding the Announcement Date; and

 

B. The offer and sale of the Shares provided for herein are being made pursuant to an effective shelf Registration Statement on Form S-3.

 

Agreement

 

In consideration of the foregoing, and other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, Company and Purchaser agree as follows:

 

I. Definitions.  In addition to the terms defined elsewhere in this Agreement and the Transaction Documents, capitalized terms that are not otherwise defined herein have the meanings set forth in the Glossary of Defined Terms attached as Exhibit 1, incorporated herein by reference.

 

II. Purchase and Sale of Stock.

 

A. Agreement to Purchase.  Subject to the terms and conditions herein and the satisfaction of the conditions to each Closing set forth in this Section II:

 

1. Shares.  Company will sell to Purchaser for the aggregate sum of $969,000.00 (“Purchase Amount”), and Purchaser hereby agrees to purchase from Company (“Obligation”), an aggregate number of shares of Common Stock of Company (“Shares”) equal to the Purchase Amount, at a price per Share equal to 102%
of the Closing Price of the Common Stock on the Trading Day immediately preceding the Announcement Date (“Share Price”), to be paid in accordance with Section II.C.2 hereof; and

 

2. Issuance.  Company will reserve, issue and deliver to Purchaser the Shares as provided herein.

 

B. Effectiveness of Agreement.

 

1. Effectiveness.  This Agreement will be effective when it has been duly executed and delivered by both Purchaser and Company, and the conditions to effectiveness set forth in Section II.B.2 have been met.

 

2. Conditions to Effectiveness.  As a condition precedent to the effectiveness of this Agreement, all of the following conditions will have been satisfied:

 

a. The following documents have been delivered to Purchaser:

 

i. This Agreement, executed by Company;

 

ii. A Secretary’s Certificate, certifying as to and attaching copies of:  (1) the resolutions of Company’s board of directors authorizing this Agreement and the Transaction Documents, and the transactions contemplated hereby and thereby, (2) Company’s current Certificate of Incorporation, and (3) Company’s current Bylaws;

 

iii. Executed Transfer Agent Instructions, in the form attached hereto as Exhibit 4; and

 

iv. The Opinion executed by Company’s counsel;

 

b. Company has an effective Registration Statement permitting the lawful sale of all issuable Shares issuable upon exercise of the Obligation; and any required post-effective amendment or prospectus supplement has been filed with the Commission and delivered to Purchaser;

 

c. The representations and warranties of Company in this Agreement will be true and correct in all material respects, and Company will have delivered an Officer’s Certificate to such effect to Purchaser, signed by an officer of Company;

 

d. The Common Stock will be listed for and currently trading on a Trading Market, Company is in compliance with all requirements to continue trading on a Trading Market;

 

e. No default has occurred under this Agreement or any other agreement between Company and Purchaser;

 

f. There is not then in effect any law, rule or regulation prohibiting or restricting the transactions contemplated in this Agreement or any other Transaction Document, or requiring any consent or approval which will not have been obtained, nor is there any pending or threatened proceeding or investigation which may have the effect of prohibiting or adversely affecting any of the transactions contemplated by this Agreement; no statute, rule, regulation, executive order, decree, ruling or injunction will have been enacted, entered, promulgated or adopted by any court or governmental authority
of competent jurisdiction that prohibits the transactions contemplated by this Agreement, and no actions, suits or proceedings will be in progress, pending or, to Company’s knowledge threatened, by any person, that seek to enjoin or prohibit the transactions contemplated by this Agreement;

 

g. Any prior Shares have been timely delivered in accordance with their respective Notice;

 

h. All issued and issuable Shares DWAC Shares, are DTC eligible, and can be issued in electronic form without restriction on resale;

 

i. Company has a sufficient number of duly authorized shares of Common Stock reserved for issuance in such amount as may be required to fulfill its obligations pursuant to the Transaction Documents, including without limitation all Shares; and

 

j. Any Required Approval has been obtained.

 

C. Purchase Obligation.

 

1. Automatic Exercise.  Subject to the Ownership Limitation, the Purchase Amount and the other conditions and limitations set forth in this Agreement, Purchaser will satisfy the Obligation by automatically purchasing the maximum portion of the Purchase Amount within the Ownership Limitation on the Announcement Date and on each of the Trading Days (each, a “Notice Date”) immediately following the earlier of (a) 10 Trading Days after
the prior Notice Date or (b) the Trading Day that aggregate trading volume of the Common Stock on the Trading Market after the prior Notice Date, as reported by Bloomberg, equals or exceeds $300,000.

 

2. Notices and Closings.  Purchaser will document the automatic exercise of the Obligation by delivering a Notice to Company on the Notice Date in the form attached hereto as Exhibit 2 (“Notice”), stating the number of Shares that Company will sell to Purchaser and the amount of the Obligation satisfied pursuant to such Notice, and providing delivery instructions for the
Shares.  Company will immediately acknowledge the automatic exercise of that portion of the Obligation set forth in the Notice by delivering the Acknowledgement to Purchaser in the form contained within Exhibit 2.  On each Notice Date, time being of the essence, (a) Purchaser will make payment for the Shares, at its option, (i) in cash by wire transfer of immediately available funds, (ii) by issuing and delivering to Company a secured full recourse promissory note in the form attached hereto as Exhibit 3 (“Note”), or (iii) a combination thereof, and (b) Company will deliver the Shares via DWAC pursuant to the account instructions provided by Purchaser, (each, a
“Closing”). 

 

3. Restrictions.

 

a. Authorized Shares.  Purchaser will only deliver a Notice to the extent that the total number of authorized and registered shares is sufficient to cover the number of Shares issuable to satisfy the Obligation.

 

b. Limitation on Beneficial Ownership.  Notwithstanding any other provision, Purchaser will only deliver a Notice to the extent that the total number of Shares, aggregated with all other shares of Common Stock and other voting securities then owned or deemed beneficially owned by Purchaser and its Affiliates, would result in Purchaser owning or being deemed the beneficial owner of no more than 9.99% of all of such Common Stock and other voting securities as would be outstanding on the date of
exercise, with such ownership percentage determined in accordance with Section 13(d) of the Exchange Act (“Ownership Limitation”).

 

4. Closing Deliveries.  At or before each Closing, all of the following will occur:

 

a. Purchaser will pay the Purchase Amount for the Shares to Company, by delivery of the Note or wire transfer of immediately available funds to an account designated in writing by Company;

 

b. Company will deliver the Shares into the account designated by Purchaser;

 

c. Company will satisfy all of the conditions set forth in Section I.B.2, updated as of the Closing; including without limitation delivery to Purchaser of an Opinion and Officer’s Certificate dated as of the Closing date.

 

III. Termination.

 

A. This Agreement shall automatically terminate upon the occurrence of any of the following:

 

1. If, at any time, either Company or any director or executive officer of Company has engaged in a transaction or conduct related to Company that has resulted in (a) a Commission enforcement action, including without limitation such director or executive officer being sanctioned by the Commission, or (b) a civil judgment or criminal conviction for fraud or misrepresentation, or for any other offense that, if prosecuted criminally, would constitute a felony under applicable law;

 

2. On the date after a Delisting Event that lasts for an aggregate of 20 Trading Days;

 

3. If at any time Company has filed for or is subject to any bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors instituted by or against Company or any Subsidiary of Company;

 

4. Either party is in material breach or default of this Agreement, any Transaction Document, or any agreement between Company and Purchaser or any Affiliate of Purchaser, following 10 days written notice and opportunity to cure; and

 

5. Upon the occurrence of a Fundamental Transaction.

 

B. Effect of Termination, Except as otherwise provided herein, the termination of this Agreement will have no effect on any Shares or DWAC Shares previously issued, delivered or credited.

 

IV. Representations and Warranties.

 

A. Representations Regarding Transaction.  Except as set forth under the corresponding section of the Disclosure Schedules, if any, which will be deemed a part hereof and which will not contain any material non-public information, Company hereby represents and warrants to, and as applicable covenants with, Purchaser as of each Closing:

 

1. Organization and Qualification.  Each of Company and each Subsidiary 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, as applicable, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither Company nor any Subsidiary is in violation or
default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  Each of Company and each Subsidiary 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 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.

 

2. Authorization; Enforcement.  Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder.  The execution and delivery of each of the Transaction Documents by Company and the consummation by it of the transactions contemplated hereby or thereby have been duly authorized by
all necessary action on the part of Company and no further consent or action is required by Company.  Each of the Transaction Documents has been, or upon delivery will be, duly executed by Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of Company, enforceable against Company in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (c) insofar as indemnification and contribution provisions may be limited by applicable law.  Neither Company nor any Subsidiary is in violation of any of the
provisions of its respective certificate or articles of incorporation, by-laws or other organizational or charter documents.

 

3. No Conflicts.  The execution, delivery and performance of the Transaction Documents by Company, the issuance and sale of the Shares and the consummation by Company of the other transactions contemplated thereby do not and will not (a) conflict with or violate any provision of Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (b) 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 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 Company or any Subsidiary is a party or by which any property or asset of Company or any Subsidiary is bound or affected, (c) conflict with or result in a violation of any material law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which
any property or asset of Company or a Subsidiary is bound or affected, or (d) conflict with or violate the terms of any material agreement by which Company or any Subsidiary is bound or to which any property or asset of Company or any Subsidiary is bound or affected; except in the case of each of clauses (b), (c) and (d), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

4. Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of Company, threatened against or affecting 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 could adversely affect or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares.  The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by Company or any Subsidiary under the Exchange Act or the Act.

 

5. Filings, Consents and Approvals.  Neither Company nor any Subsidiary is 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 Company of the Transaction Documents, other than required federal and state securities filings
and such filings and approvals as are required to be made or obtained under the applicable Trading Market rules in connection with the transactions contemplated hereby, each of which has been, or if not yet required to be filed will be, timely filed.

 

6. Issuance of Shares.  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.  Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Shares at least equal to the number of Shares which could be issued pursuant to the terms
of the Transaction Documents.

 

7. Registration Statements and Prospectuses.

 

a. The offer and sale of the Shares as contemplated hereby complies with the requirements of Rule 415 under the Act.

 

b. Company has not, directly or indirectly, used or referred to any “free writing prospectus” as defined in Rule 405 under the Act, except in compliance with Rules 164 and 433 under the Act.

 

c. Company is not an “ineligible issuer” as defined in Rule 405 under the Act as of the eligibility determination date for purposes of Rules 164 and 433 under the Act with respect to the offering of the Shares contemplated by any Registration Statement filed or to be filed, without taking into account any determination by the Commission pursuant to Rule 405 under the Act that it is not necessary under the circumstances that Company be considered an “ineligible issuer.”

 

8. Disclosure; Non-Public Information.  Except with respect to the information that will be, and to the extent that it actually is timely publicly disclosed by Company on or before the Announcement Date, and notwithstanding any other provision in this Agreement or the other Transaction Documents, neither Company nor any other Person acting on its behalf has provided Purchaser or its agents or counsel with any information that constitutes or might
constitute material, non-public information, including without limitation this Agreement and the Exhibits and Disclosure Schedules hereto.  No information contained in the Disclosure Schedules constitutes material non-public information.  There is no adverse material information regarding Company that has not been publicly disclosed prior to the Execution Date.  Company understands and confirms that Purchaser will rely on the foregoing representations and covenants in effecting transactions in securities of Company.  All disclosure provided to Purchaser regarding Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, furnished by or on behalf of Company with respect to the representations and warranties made herein are true and correct in all material respects and do 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.

 

9. No Integrated Offering,   Neither Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Shares to be integrated with prior offerings by Company that cause a violation of the Act or any applicable stockholder approval provisions, including,
without limitation, under the rules and regulations of the Trading Market.

 

10. Financial Condition.    Based on the financial condition of Company as of the date of the Commitment Closing:  (a) the fair saleable market value of Company’s assets exceeds the amount that will be required to be paid on or in respect of Company’s existing debts and other liabilities (including known contingent liabilities) as they mature; (b) Company’s assets do not constitute unreasonably small capital
to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by Company, and projected capital requirements and capital availability thereof; and (c) the current cash flow of Company, together with the proceeds Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid.  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.  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 date of the Commitment Closing.  The Public Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of Company or any Subsidiary, or for which Company or any Subsidiary has commitments.  Neither Company nor any Subsidiary is in default with respect to any Indebtedness.

 

11. Section 5 Compliance. No representation or warranty or other statement made by Company in the Transaction Documents contains any untrue statement or omits to state a material fact necessary to make any of them, in light of the circumstances in which it was made, not misleading.  Company is not aware of any facts or circumstances that would cause the transactions contemplated by the Transaction Documents, when consummated, to violate Section 5 of the Act or other federal or state securities
laws or regulations.

 

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

 

B. Representations Regarding Company.  Except as set forth in the Public Reports or under the corresponding section of the Disclosure Schedules, if any, which will be deemed a part hereof and which will not contain any material non-public information, Company hereby represents and warrants to, and as applicable covenants with, Purchaser as of each Closing:

 

1. Capitalization.  The capitalization of Company is as described in Company’s most recently filed Public Report and Company has not issued any capital stock since such filing.  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 which has not been waived or satisfied.  Except as a result of
the purchase and sale of the Shares, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or securities convertible into or exercisable for shares of Common Stock.  The issuance and sale of the Shares will not obligate Company to issue shares of Common Stock or other securities to any Person, other than Purchaser, and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange, or reset price under such securities.  All
of the outstanding shares of capital stock of Company are validly issued, fully paid and nonassessable, have been issued in material 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 of Company or others is required for the issuance and sale of the Shares.  There are no stockholders agreements, voting agreements or other similar agreements with respect to Company’s capital stock to which Company is a party or, to the knowledge of Company, between or among any of Company’s stockholders.

 

2. Subsidiaries.  Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary, and all of such directly or indirectly owned capital stock or other equity interests are owned free and clear of any Liens.  All the issued and outstanding shares of capital stock of each Subsidiary are duly authorized, validly issued, fully paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities.

 

3. Public Reports; Financial Statements.  Company has filed all required Public Reports for the one year preceding the Execution Date.  As of their respective dates or as subsequently amended, the Public Reports complied in all material respects with the requirements of the Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the Public Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of Company included in the Public Reports, as amended, comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with GAAP, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Company and its consolidated subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

4. Material Changes.  Since the date of the latest audited financial statements included within the Public Reports, except as specifically disclosed in the Public Reports, (a) there has been no event, occurrence or development that has had, or that could reasonably be expected to result in, a Material Adverse Effect, (b) Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables and accrued expenses incurred
in the ordinary course of business consistent with past practice, and (ii) liabilities not required to be reflected in Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (c) Company has not altered its method of accounting, (d) Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (e) Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans.  Company does not have pending before the Commission any request for confidential treatment of information.

 

5. Litigation. There is no Action which could reasonably be expected to result in a Material Adverse Effect.  Neither Company nor any Subsidiary, nor to the knowledge of Company 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.  There has not been, and to the knowledge of Company, there is
not pending or contemplated, any investigation by the Commission involving Company or any current or former director or officer of Company.

 

6. Labor Relations.  No material labor dispute exists or, to the knowledge of Company, is imminent with respect to any of the employees of Company, which could reasonably be expected to result in a Material Adverse Effect.

 

7. Compliance.  Neither Company nor any Subsidiary (a) is in material default under or in material 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 Company or any Subsidiary under), nor has Company or any Subsidiary received notice of a claim that it is in material default under or that it is in material violation of, any indenture, loan or credit agreement
or any other similar 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), (b) is in violation of any order of any court, arbitrator or governmental body, or (c) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business except in each case as could reasonably be expected to result in a Material Adverse Effect.

 

8. Regulatory Permits.  Company and each Subsidiary possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the Public Reports, except where the failure to possess such permits could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect
(“Material Permits”), and neither Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

9. Title to Assets.  Company and each Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of Company and each Subsidiary and good and marketable title in all personal property owned by them that is material to the business of Company and each Subsidiary, in each case free and clear of all Liens, except for Liens that 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 Company and each Subsidiary and 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 Company and each Subsidiary are held by them under valid, subsisting and enforceable leases of which Company and each Subsidiary are in compliance.

 

10. Patents and Trademarks.  Company and each Subsidiary have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material for use in connection with their respective businesses as described in the Public Reports and which the failure to so have could have a Material Adverse Effect (collectively,
“Intellectual Property Rights”).  Neither Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of Company or each Subsidiary.

 

11. Insurance. Company and each Subsidiary are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which Company and each Subsidiary are engaged, including but not limited to directors and officers insurance coverage at least equal to the Purchase Amount.  To Company’s knowledge, such insurance contracts and policies are accurate and
complete in all material respects.  Neither Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

12. Transactions With Affiliates and Employees.  Except as set forth in the Public Reports, none of the officers or directors of Company and, to the knowledge of Company, none of the employees of Company is presently a party to any transaction with Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of Company and (iii) for other employee benefits, including stock option agreements under any equity incentive plan of Company.

 

13. Sarbanes-Oxley; Internal Accounting Controls.  Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002, which are applicable to it as of the date of the Commitment Closing.  Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of Company’s disclosure controls and procedures based on their
evaluations as of the evaluation date.  Since such date, there have been no significant changes in Company’s internal accounting controls or its disclosure controls and procedures or, to Company’s knowledge, in other factors that could materially affect Company’s internal accounting controls or its disclosure controls and procedures.

 

14. Certain Fees.  Except as disclosed in any applicable Prospectus supplement, no brokerage or finder’s fees or commissions are or will be payable by Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  Purchaser will 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 this Agreement or the other Transaction Documents.

 

15. Registration Rights.  No Person has any right to cause Company to effect the registration under the Act of any securities of Company.

 

16. Listing and Maintenance Requirements.  The Common Stock is registered pursuant to Section 12 of the Exchange Act, and Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has Company received any notification that the Commission is contemplating terminating such registration.  Company has not, in the 12 months
preceding the Execution Date, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that Company is not in compliance with the listing or maintenance requirements of such Trading Market. Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

17. Application of Takeover Protections.  Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti takeover provision under Company’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could
become applicable to Purchaser as a result of Purchaser and Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation Company’s issuance of the Shares and Purchaser’s ownership of the Shares.

 

18. Tax Status.  Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of Company know of no basis for any such claim.  Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, statue or local tax.  None of Company’s tax returns is presently being audited by any taxing authority.

 

19. Foreign Corrupt Practices.  Neither Company, nor to the knowledge of Company, any agent or other person acting on behalf of Company, has (a) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (b) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (c) failed to disclose fully any contribution made by Company, or made by any person acting on its behalf of which Company is aware, which is  in violation of law, or (d) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

20. Accountants.  Company’s accountants are set forth in the Public Reports and such accountants are an independent registered public accounting firm as required by the Act.

 

21. No Disagreements with Accountants or Lawyers.  There are no material disagreements presently existing, or reasonably anticipated by Company to arise, between Company and the accountants or lawyers formerly or presently employed by Company, and Company is current with respect to any fees owed to its accountants and lawyers.

 

22. Acknowledgments Regarding Purchaser.  Company’s decision to enter into this Agreement has been based solely on the independent evaluation of Company and its representatives, and Company acknowledges and agrees that:

 

a. Purchaser is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby;

 

b. Purchaser does not make or has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in  Section IV.C below; and

 

c. Purchaser is not acting as a financial advisor or fiduciary of Company, or in any similar capacity, with respect to this Agreement and the transactions contemplated hereby and any statement made by Purchaser or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to Purchaser’s purchase of the Shares.

 

C. Representations and Warranties of Purchaser.  Purchaser hereby represents and warrants as of the Execution Date as follows:

 

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

 

2. Purchaser Status. At the time Purchaser was offered the Shares, it was, and at the Execution Date it is an “accredited investor” as defined in Rule 501(a) under the Act.

 

3. Experience of Purchaser.  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 Shares, and has so evaluated the merits and risks of such investment.  Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time,
is able to afford a complete loss of such investment.

 

4. Ownership. Purchaser is acquiring the Shares as principal for its own account in the ordinary course of its business.  Prior to the Execution Date, neither Purchaser nor any of its Affiliates owned or had the right to acquire any shares of capital stock or voting power of the Company.

 

5. No Short Sales.  Purchaser and its Affiliates (a) do not hold any short position in the Common Stock, and (b) have never engaged in any Short Sales of the Common Stock, prior to the Execution Date.

 

V. Securities Provisions.

 

A. Registration Statements and Prospectuses. Company hereby represents and warrants to, and as applicable covenants with, Purchaser as follows:

 

1. The offer and sale of the Shares are being made pursuant to the Registration Statement.  Company will use its best efforts to file and cause to become effective any required post-effective amendment or prospectus supplement on or prior to the Announcement Date.  Company will use its best efforts to cause the Registration Statement to remain effective for at least 90 days after the last Notice Date.

 

2. The Registration Statement complied when it became effective, and, as amended or supplemented, at the time of any Closing, or issuance of any Shares, and at all times during which a prospectus is required by the Act to be delivered in connection with any sale of Shares, will comply, in all material respects, with the requirements of the Act.

 

3. Each Registration Statement, Prospectus and Prospectus Supplement, as of its respective effective time, will not, as applicable, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

4. Each Prospectus will comply, as of its date and the date filed with the Commission, and at the time of any Closing, or issuance of any Shares, and at all times during which a prospectus is required by the Act to be delivered in connection with any sale of Shares, will comply, in all material respects, with the requirements of the Act.

 

5. At no time during the period that begins on the date a Prospectus is filed with the Commission and ends at the time a Prospectus is no longer required by the Act to be delivered in connection with any sale of Shares will any such Prospectus, as then amended or supplemented, include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and at no time during such period will such Prospectus, as then amended or supplemented, include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

6. Each Registration Statement will meet, and the offering and sale of the Shares as contemplated hereby will comply with, the requirements of Rule 415 under the Act.

 

7. Company will not, directly or indirectly, use or refer to any “free writing prospectus” (as defined in Rule 405 under the Act) except in compliance with Rules 164 and 433 under the Act.

 

8. Company will not be an “ineligible issuer” (as defined in Rule 405 under the Act) as of the eligibility determination date for purposes of Rules 164 and 433 under the Act with respect to the offering of the Shares contemplated by any Registration Statement that is filed, without taking into account any determination by the Commission pursuant to Rule 405 under the Act that it is not necessary under the circumstances that Company be considered an “ineligible issuer.”

 

B. Purchaser Due Diligence.  Purchaser will have the right and opportunity to conduct customary due diligence with respect to any Registration Statement or Prospectus in which the name of Purchaser or any Affiliate of Purchaser appears.

 

C. Prospectus Availability and Changes.  Company will make available to Purchaser upon request, and thereafter from time to time will furnish Purchaser, as many copies of any Prospectus, or of the Prospectus as amended or supplemented if Company will have made any amendments or supplements thereto after the Execution Date of the Registration Statement, as Purchaser may request for the purposes contemplated by the Act; and in case Purchaser is
required to deliver a prospectus after the nine-month period referred to in Section 10(a)(3) of the Act in connection with the sale of the Shares, or after the time a post-effective amendment to the applicable Registration Statement is required pursuant to Item 512(a) of Regulation S-K under the Act, Company will prepare, at its expense, promptly upon request such amendment or amendments to the Registration Statement and the Prospectus as may be necessary to permit compliance with the requirements of Section 10(a)(3) of the Act or Item 512(a) of Regulation S-K under the Act, as the case may be.

 

D. Updates.  Company will advise Purchaser promptly of the happening of any event within the time during which a Prospectus is required to be delivered under the Act which could require the making of any change in the Prospectus then being used so that the Prospectus would not include an untrue statement of material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading, and to advise
Purchaser promptly if, during such period, it will become necessary to amend or supplement any Prospectus to cause such Prospectus to comply with the requirements of the Act, and in each case, during such time, to prepare and furnish, at Company’s expense, to Purchaser promptly such amendments or supplements to such Prospectus as may be necessary to reflect any such change or to effect such compliance.

 

E. Furnishing of Information.  As long as Purchaser owns any Shares, 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 Company after the Execution Date pursuant to the Exchange Act.  As long as Purchaser owns any Shares, if Company is not required to file reports pursuant to such laws, it will prepare and furnish to Purchaser and
make publicly available in accordance with Rule 144(c) such information as is required for Purchaser to sell the Shares under Rule 144.  Company further covenants that it will take such further action as any holder of Shares may reasonably request, all to the extent required from time to time to enable such Person to sell such Shares without registration under the Act within the limitation of the exemptions provided by Rule 144.

 

F. Integration.  Company will 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 Act, that would be integrated with the offer or sale of the Shares in a manner that would be integrated with the offer or sale of the Shares to Purchaser for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing
of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

G. Disclosure and Publicity.  Company and Purchaser will consult with each other in issuing any press releases with respect to the transactions contemplated hereby, and neither Company nor Purchaser will issue any such press release or otherwise make any such public statement without the prior consent of Company, with respect to any such press release of Purchaser, or without the prior consent of Purchaser, with respect to any such press release
of Company, which consent will not unreasonably be withheld or delayed, except if such disclosure is required by law or Trading Market regulations, in which case the disclosing party will promptly provide the other party with prior notice of such public statement or communication.  Notwithstanding the foregoing, Company will not publicly disclose the name of Purchaser, or include the name of Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of Purchaser, except to the extent such disclosure is required by the Act, Exchange Act or Trading Market regulations, in which case Company will provide Purchaser with prior notice of such disclosure.

 

H. Shareholders Rights Plan. No claim will be made or enforced by Company or, to the knowledge of Company, any other Person that Purchaser is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or hereafter adopted by Company, or that Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares under the Transaction Documents or under any other
agreement between Company and Purchaser. Company will conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

 

I. No Non-Public Information.  Company covenants and agrees that neither it nor any other Person acting on its behalf will, provide Purchaser or its agents or counsel with any information that Company believes or reasonably should believe constitutes material non-public information.  On and after the Announcement Date, neither Purchaser nor any Affiliate of Purchaser will have any duty of trust or confidence that is owed directly,
indirectly, or derivatively, to Company or the stockholders of Company, or to any other Person who is the source of material non-public information regarding Company.  Company understands and confirms that Purchaser will be relying on the foregoing in effecting transactions in securities of Company, including without limitation sales of the Shares.

 

J. Indemnification of Purchaser.

 

1. Obligation to Indemnify.  Subject to the provisions of this Section V.J, Company will indemnify and hold Purchaser, its Affiliates, and each of their directors, officers, shareholders, partners, employees, agents and attorneys, and any person who controls Purchaser within the meaning of Section 15 of the Act or Section 20
of the Exchange Act (collectively, “Purchaser Parties” and each an “Purchaser Party”), harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, reasonable costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”) that any 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 Company in this Agreement or in the other Transaction Documents, (b) any action instituted against any Purchaser Party, or any of them or their respective
Affiliates, by any stockholder of Company who is not an Affiliate of a Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents, unless such action is based upon a breach of Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings Purchaser may have with any such stockholder or any violations by Purchaser of state or federal securities laws or any conduct by Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance, (c)  any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement, or in a Registration Statement as amended by any post-effective amendment thereof by Company, or arising out of or based upon any omission or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (d) any untrue statement or alleged untrue statement of a material fact included in any Prospectus, or any amendments or supplements to any Prospectus, in any free writing prospectus, in any “issuer information” as defined in Rule 433 under the Act, of Company, or in any Prospectus together with any combination of one or more of the  free writing prospectuses, if any, or arising out of or based upon any omission or alleged omission to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (e) any Purchaser Party becoming involved in any capacity in any proceeding by or against any Person who is a stockholder of Company, except as a result of sales, pledges, margin sales and similar transactions by Purchaser to
or with any current stockholder, solely as a result of Purchaser’s acquisition of the Shares under this Agreement; provided, however, that Company shall not be obligated to indemnify any Purchaser Party for any Losses finally adjudicated to be caused solely by (i) a false statement of material fact contained within written information provided by such Purchaser Party expressly for the purpose of including it in the applicable Registration Statement, (ii) the Purchaser Party’s material breach of this Agreement or any Transaction Documents, or (iii) the Purchaser Party’s willful misconduct or intentional violation of law.

 

2. Procedure for Indemnification.  If any action will be brought against a Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party will promptly notify Company in writing, and Company will have the right to assume the defense thereof with counsel of its own choosing.  Purchaser Parties will 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 will be at the expense of Purchaser Parties except to the extent that (a) the employment thereof has been specifically authorized by Company in writing, (b) Company has failed after a reasonable period of time to assume such defense and to employ counsel or (c) in such action there is, in the reasonable opinion of such separate counsel, a material conflict with respect to the dispute in question on any material issue between the position of Company and the position of Purchaser Parties such that it would be inappropriate for one counsel to represent Company and Purchaser Parties.  Company will not be liable to Purchaser Parties under this Agreement (i) for any settlement by a Purchaser Party effected without Company’s prior written consent, which will not be unreasonably withheld or delayed; or (ii) to the extent, but
only to the extent that a loss, claim, damage or liability is either attributable to Purchaser’s breach of any of the representations, warranties, covenants or agreements made by Purchaser in this Agreement or in the other Transaction Documents.

 

3. No Purchaser Party will have any liability to Company solely as a result of acquiring the Shares under this Agreement, or to any Person asserting claims on behalf of or in right of Company as a result of acquiring the Shares under this Agreement.

 

K. Reservation of Shares.  Company will maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents.

 

L. Required Approval.  No transactions contemplated under this Agreement or the Transaction Documents will be consummated for an amount that would require approval by any Trading Market or Company stockholders under any approval provisions, rules or regulations of any Trading Market applicable to Company, unless and until such approval is obtained.  In no event will the aggregate number of Shares issued to Purchaser, together with any
other Common Stock issued to Purchaser within six months, exceed 19.99% of the total number of shares of Common Stock outstanding before the issuance, for less than the greater of book or market value of the stock, unless Company has obtained either (1) stockholder approval of the issuance, or (2) a waiver from the Trading Market of any applicable rule. Company will use reasonable efforts to obtain any required approval or waiver as soon as practicable.

 

M. Activity Restrictions.  For so long as Purchaser or any of its Affiliates holds any Shares, neither Purchaser nor any Affiliate will:  (i) vote any shares of Common Stock owned or controlled by it, solicit any proxies, or seek to advise or influence any Person with respect to any voting securities of Company; (ii) engage or participate in any actions, plans or proposals which relate to or would result in (a) acquiring additional
securities of Company, alone or together with any other Person, which would result in beneficially owning or controlling more than 9.99% of the total outstanding Common Stock or other voting securities of Company, (b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving Company or any of its subsidiaries, (c) a sale or transfer of a material amount of assets of Company or any of its subsidiaries, (d) any change in the present board of directors or management of Company, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board, (e) any material change in the present capitalization or dividend policy of Company, (f) any other material change in Company’s business or corporate structure, including but not limited to, if Company is a registered closed-end investment company,
any plans or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940, (g) changes in Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of Company by any Person, (h) causing a class of securities of Company to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association, (i) a class of equity securities of Company becoming eligible for termination of registration pursuant  to Section 12(g)(4) of the Act, or (j) any action, intention, plan or arrangement similar to any of those enumerated above; or (iii) request Company or its directors, officers, employees, agents or representatives to amend or waive any
provision of this section.

 

N. No Restrictive Covenants.  Company will not within one year of the Execution  Date enter into any agreement, understanding or arrangement directly or indirectly blocking or restricting in any manner the terms of any existing or potential transaction with Purchaser or any Affiliate of Purchaser, including without limitation the issuance of any form of securities, or which provides for any reset,
adjustment or change to any terms of any agreement with any other Person or any securities issued to any other Person based upon, arising out of, or relating to any future transaction with Purchaser or any Affiliate of Purchaser, or any issuance of any form of security to Purchaser or any Affiliate of Purchaser, and any such agreement shall be void ab initio and ineffective for any purpose whatsoever.

 

O. No Shorting.  Purchaser and its Affiliates will not engage in or effect, directly or indirectly, any Short Sale that results in a net short position of the Common Stock within one year of the Execution Date.

 

VI. General Provisions.

 

A. Notice.  Unless a different time of day or method of delivery is set forth in the Transaction Documents, any and all notices or other communications or deliveries required or permitted to be provided hereunder will be in writing and will be deemed given and effective on the earliest of:  (a) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail prior to 5:00 p.m. Eastern time on a
Trading Day and an electronic confirmation of delivery is received by the sender, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered later than 5:00 p.m. Eastern time or on a day that is not a Trading Day, (c) the next 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 addresses for such notices and communications are those set below, or such other address as may be designated in writing hereafter, in the same manner, by such Person.

 

If to Purchaser:                                                                If to Company:

Ironridge Global IV, Ltd.                                                                ULURU Inc.

Harbour House, Waterfront Drive                                                   4452 Beltway Drive

PO Box 972, Road Town                                                                Addison, Texas 75001

Tortola, British Virgin Islands                                                          Attn:  Kerry Gray

Attn:  David Sims

B. Amendments; Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed by Company and Purchaser.  No waiver of any default with respect to any provision, condition or requirement of this Agreement will 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 will any delay or omission of
either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

C. Successors and Assigns.  This Agreement will be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  Neither part may assign this Agreement or any rights or obligations hereunder.

 

D. 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 V.J.

 

E. Fees and Expenses.  Company will pay the reasonable fees and costs of Purchaser’s counsel incurred in connection with this Agreement, the other Transaction Documents, each Closing, and the transactions contemplated hereby and thereby.  Except as otherwise provided in this Agreement, each party will pay the fees and expenses of its own 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 the Transaction Documents.  Company acknowledges and agrees that Purchaser’s counsel solely represents Purchaser, and does not represent Company or its interests in connection with the Transaction Documents or the transactions contemplated thereby.  Company will pay all stamp and other taxes and duties levied in connection with the sale of the Shares, if any.

 

F. Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement will not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, will incorporate such substitute provision in this
Agreement.

 

G. Replacement of Certificates.  If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, Company will issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new
certificate or instrument, but only upon receipt of evidence reasonably satisfactory to Company of such loss, theft or destruction and customary and reasonable indemnity, if requested.  The applicants for a new certificate or instrument under such circumstances will also pay any reasonable third-party costs associated with the issuance of such replacement certificates.

 

H. Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents will be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to the principles of conflicts of law that would require or permit the application of the laws of any other jurisdiction.  The parties hereby waive all rights to a trial by jury.  If
either party will commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding will be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses reasonably incurred in connection with the investigation, preparation and prosecution of such action or proceeding.

 

I. Arbitration.  Any dispute, controversy, claim or action of any kind arising out of or relating to this Agreement, or in any way involving Company and Purchaser or their respective Affiliates, will be resolved by final and binding arbitration before a retired judge at JAMS (www.jamsadr.com), or its successor, in Santa Monica, California, pursuant to its most Streamlined Arbitration Rules and Procedures and the Final Offer (or Baseball)
Arbitration Option.  Any interim or final award may be entered and enforced by any court of competent jurisdiction.  The final award will include the prevailing party’s reasonable arbitration, expert witness and attorney fees, costs and expenses.

 

J. Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of Purchaser and Company will be entitled to specific performance under the Transaction Documents, and injunctive relief to prevent any actual or threatened breach under the Transaction Documents, to the full extent permitted under federal and state securities laws.

 

K. Payment Set Aside.  To the extent that Company makes a payment or payments to Purchaser pursuant to any Transaction Document or 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 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 will 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.

 

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

 

M. Time of the Essence. Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.

 

N. Survival. The representations and warranties contained herein will survive each Closing and the delivery of the Shares.

 

O. Construction. The parties agree that each of them and/or their respective counsel has 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 will not be employed in the interpretation of the Transaction Documents or any amendments hereto. The language used in this Agreement will be deemed to be the language chosen
by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

P. Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together will be considered one and the same agreement and will become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by portable document format, facsimile or electronic
transmission, such signature will 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 signature page were an original thereof.

 

Q. Entire Agreement.  This Agreement, together with the Exhibits hereto which are incorporated herein by reference, contains the entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters, discussions, communications and understandings, both oral and written, which the parties acknowledge have been merged into this Agreement.  No party, representative, attorney or
agent has relied upon any collateral contract, agreement, assurance, promise, understanding or representation not expressly set forth hereinabove.  The parties hereby expressly waive all rights and remedies, at law and in equity, directly or indirectly arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such assurance.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the Execution Date.

 

 

Company:

 

ULURU INC.

a Nevada corporation

	  	  	  	  
	  	
Signed:

	
/s/ Kerry P. Gray

	  
	  	
Name:

	
Kerry P. Gray

	  
	  	
Title:

	
President & Chief Executive Officer

	  

Purchaser:

 

IRONRIDGE GLOBAL BIOPHARMA,

a division of

IRONRIDGE GLOBAL IV, LTD.,

a British Virgin Islands business company

 

	  	  	  	  
	  	
Signed:

	
/s/ Peter Cooper

	  
	  	
Name:

	
Peter Cooper

	  
	  	
Title:

	
Director

	  

 

                                              

 

  

  

  

Exhibit 1

 

Glossary of Defined Terms

 

 

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

 

“Action” has the meaning set forth in Section IV.A.4.

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Act.

 

“Agreement” means this Common Stock Purchase Agreement.

 

“Announcement Date” means the Trading Day by which the Company has widely publicly disclosed prior to 8:30 a.m. Eastern time all material terms of the Transaction Documents and the transactions contemplated thereby, in accordance with Regulation FD.

 

“Bloomberg” means Bloomberg Financial Markets, or its successor performing similar functions.

 

“Closing Price” means, for any security as of any date, the last closing bid price for such security on the Trading Market, as reported by Bloomberg, or, if the Trading Market begins to operate on an extended hours basis and does not designate the closing bid price, then the last bid price of such security prior to 4:00 p.m. Eastern time, as reported by Bloomberg, or, if the Trading Market is not the principal securities exchange or trading market for such security, the last closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the
foregoing do not apply, the last closing bid price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).  If the Closing Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Price of such security on such date will be the fair market value as mutually determined by Purchaser and Company.  All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

“Commission” means the U.S. Securities and Exchange Commission.

 

“Common Stock” means the common stock, par value $0.001 per share, of Company and any replacement or substitute thereof, or any share capital into which such Common Stock will have been changed or any share capital resulting from a reclassification of such Common Stock.

 

“Company” has the meaning set forth in the first paragraph of the Agreement.

 

“Delisting Event” means any time during the term of this Agreement, that the Common Stock is not listed for and actively trading on a Trading Market, or is suspended or delisted with respect to the trading of shares of the Common Stock on a Trading Market.

 

“Disclosure Schedules” means the disclosure schedules of Company delivered concurrently herewith, attached hereto, and incorporated herein by reference.  The Disclosure Schedules will contain no material non-public information that will not be publicly disclosed prior to the Announcement Date.

“DTC” means The Depository Trust Company, or any successor performing substantially the same function for Company.

 

“DWAC Shares” means all Shares or other shares of Common Stock issued or issuable to Purchaser or any Affiliate, successor or assign of Purchaser pursuant to any of the Transaction Documents, all of which will be (a) issued in electronic form, (b) freely tradable and without restriction on resale, and (c) timely credited by Company to the specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program or any similar program hereafter adopted by DTC performing substantially the same function, in accordance with irrevocable instructions issued to and countersigned by the Transfer Agent,
in the form attached hereto as Exhibit 5 or in such other form agreed upon by the parties.

 

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

 

“Execution Date” has the meaning set forth in the first paragraph of the Agreement.

 

“Fundamental Transaction” means and will be deemed to have occurred at such time upon any of the following events:

 

A. A consolidation, merger or other business combination or event or transaction following which the holders of Common Stock immediately preceding such consolidation, merger, combination or event either (a) no longer hold a majority of the shares of Common Stock or (b) no longer have the ability to elect a majority of the board of directors of Company;

 

B. The sale or transfer of all or substantially all of Company’s assets, other than in the ordinary course of business; or

 

C. A purchase, tender or exchange offer made to the holders of the outstanding shares of Common Stock.

 

“GAAP” means U.S. generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Indebtedness” means (a) any liabilities for borrowed money or amounts owed in excess of $100,000, other than trade accounts payable incurred in the ordinary course of business, (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in Company’s balance sheet, or the notes thereto, except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $100,000 due under leases required to be capitalized in
accordance with GAAP.

 

“Intellectual Property Rights” has the meaning set forth in Section IV.B.10.

 

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

 

“Material Adverse Effect” includes any material adverse effect on (a) the legality, validity or enforceability of any Transaction Document, (b) the results of operations, assets, business, prospects or financial condition of Company and the Subsidiaries, taken as a whole, or (c) a Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document.

 

“Material Permits” has the meaning set forth in Section IV.B.8.

 

“Notice” has the meaning set forth in Section II.C.2.

 

“Obligation” has the meaning set forth in Section II.A.1.

 

“Officer’s Certificate” means a certificate in customary form reasonably acceptable to Purchaser, executed by an authorized officer of Company, the form of which is attached as Exhibit 7.

 

“Opinion” means an opinion from Company’s independent legal counsel, in the form attached as Exhibit 6, to be delivered in connection with each Closing.

 

“Ownership Limitation” has the meaning set forth in Section II.C.3.b.

 

“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.

 

“Prospectus” includes each prospectus and prospectus supplement, within the meaning of the Act, related to the sale or offering of any Shares, including without limitation any prospectus or prospectus supplement contained within the Registration Statement.

 

“Public Reports” includes all reports required to be filed by Company under the Act or the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the Execution Date and thereafter.

 

“Purchase Amount” has the meaning set forth in Section II.A.1.

 

“Purchaser” has the meaning set forth in the first paragraph of the Agreement.

 

“Registration Statement” means a valid, current and effective shelf Registration Statement on Form S-3, including without limitation File No. 333-160568, filed by Company with the Commission, registering for sale the Shares, and except where the context otherwise requires, means the Registration Statement, as amended, including (a) all documents filed as a part thereof or incorporated by reference therein, and (b) any information contained or incorporated by reference in a prospectus filed with the Commission in connection with the Registration Statement, to the extent such
information is deemed under the Act to be part of any registration statement.

 

“Required Approval” has the meaning set forth in Section V.L.

 

“Secretary’s Certificate” means a certificate, the form of which is attached as Exhibit 8, signed by the secretary of Company.

 

“Shares” means the shares of Common Stock issuable pursuant to this Agreement.

 

“Share Price” means the Closing Price of the Common Stock on the Trading Day immediately preceding the Announcement Date.

 

“Short Sales” means short sales as defined in Rule 200 of Regulation SHO of the Exchange Act.

 

“Subsidiary” means any Person Company owns or controls, or in which Company, directly or indirectly, owns a majority of the capital stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b)(21).

 

“Trading Day” means any day on which the Common Stock is traded on the Trading Market; provided that it will not include any day on which the Common Stock is (a) scheduled to trade for less than 5 hours, or (b) suspended from trading.

 

“Trading Market” means the Pink Sheets inter-dealer electronic quotation and trading system, the OTC Bulletin Board, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the NYSE Amex, or the New York Stock Exchange, whichever is at the time the principal trading exchange or market for the Common Stock.

 

“Transaction Documents” means this Agreement, the other agreements and documents referenced herein, including any promissory note executed in accordance herewith in the form of Exhibit 3, and the exhibits, schedules and appendices hereto and thereto.

 

“Transfer Agent” means Continental Stock Transfer & Trust Company, or any successor transfer agent for the Common Stock.

 

 

                                                                                                                                         

  

  

  

Exhibit 2

 

Form of Notice

Pursuant to the Obligation contained in the Common Stock Purchase Agreement dated September 12, 2011 (“Agreement”), by and between ULURU Inc., a Nevada corporation (“Company”) and Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”), Purchaser hereby gives notice of the automatic exercise of the Obligation for Purchaser to purchase the following:

 

Amount of Obligation Satisfied:  $                                                                                     

 

Share Price:  $                                                      

 

Number of Shares:                                                                

 

Capitalized terms used herein and not otherwise defined will have the respective meanings set forth in the Agreement.  Payment for the Shares will be made as indicated below:

 

___           Cash Exercise with respect to ____________ Shares

 

___           Recourse Note Exercise with respect to ____________ Shares

 

Please issue the Shares as follows:

 

___           A certificate or certificates representing the Shares in the name specified below and send certificate by overnight courier to the following address.

 

___           In electronic form to the DWAC account with DTC specified below.

 

Account Information:

 

IRONRIDGE GLOBAL BIOPHARMA

a division of

IRONRIDGE GLOBAL IV, LTD.

By:                                                           

Name:                                                

Title:                                                

 

Acknowledgment

 

ULURU Inc., a Nevada corporation (“Company”) hereby acknowledges the foregoing Notice from Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”).

 

Company hereby directs Continental Stock Transfer & Trust Company (“Transfer Agent”) to issue the above indicated number of shares of Common Stock as specified above, in accordance with the Transfer Agent Instructions dated September 12, 2011 from Company, and acknowledged and agreed to by the Transfer Agent.

 

ULURU INC.

 

By:                                                      

Name:                                                                

Title:                                                      

 

 

 

  

  

  

Exhibit 3

 

Form of Promissory Note

PROMISSORY NOTE

$[__________]                                                                                                           Date:  [Closing Date]

FOR VALUE RECEIVED, Ironridge Global IV, Ltd., a British Virgin Islands business company (“Borrower”) promises to pay to the order of ULURU Inc., a Nevada corporation (“Lender”), at Addison, Texas  or at such other place as Lender may from time to time designate in writing, the principal sum of $[__________], with interest, as follows:

1. Interest.  The principal balance outstanding from time to time under this Secured Promissory Note (this “Note”), will bear interest from and after the date hereof at the rate of 1.5% per annum.  Interest will be calculated on a simple interest basis and the number of days elapsed during the period for which interest is being calculated.  Payments of
interest will be due on each annual anniversary of the date of this Note; provided that Borrower will not be in default hereunder for failure to make any annual interest payment when due (other than on the Maturity Date) and the amount of interest not paid when due will be added to the principal balance of this Note and such amount will thereafter accrue interest at the rate set forth above.

 

2. Payments.  If not sooner paid, the entire unpaid principal balance, interest thereon and any other charges due and payable under this Note will be due and payable seven and one-half years from the date of this Note (“Maturity Date”); provided,
however, that, notwithstanding any other provision, no payments on this Note will be due or payable so long as either:  (a) Lender is in default under any Stock Purchase Agreement with Borrower or any affiliate of Borrower, any other material agreement entered into with Borrower or any affiliate of Borrower; or (b) there are any shares of Series A Preferred Stock of Lender (“Preferred Shares”) issued or outstanding (each, a “Tolling Event”).  Upon the termination or cure of any Tolling Event, Borrower’s obligation to pay amounts outstanding on this Note will immediately be reinstated.  Borrower will have the right to prepay all or any part of the
principal balance of this Note at any time without penalty or premium.  All payments on this Note will be first applied to interest, then to reduce the outstanding principal balance hereof.

 

3. Full Recourse Note.  This is a full recourse promissory note.  Accordingly, notwithstanding that Borrower’s obligations under this Note are secured by the Collateral, in the event of a material default hereunder, Lender will have full recourse to all the other assets of Borrower.  Moreover, Lender will not be required to proceed against or exhaust any Collateral, or to pursue any Collateral in any particular order,
before Lender pursues any other remedies against Borrower or against any of Borrower’s assets.

 

4. Security.

 

a. Pledge.  As security for the due and prompt payment and performance of all payment obligations under this Note and any modifications, replacements and extensions hereof (collectively, “Secured Obligations”), Borrower hereby pledges and grants a security interest to Lender in all of Borrower’s right, title, and interest in and to all of the following, now owned or
hereafter acquired or arising, with the value of securities securing the Note on the date of issuance to be at least equal to the amount of the Note (together, the “Collateral”):

 

i.  All Preferred Shares legally or beneficially owned by Borrower or any affiliate of Borrower;

 

ii. Freely tradable shares of common stock, shares of preferred stock, bonds, notes and/or debentures (collectively with the Preferred Shares, the “Pledged Securities”) with a fair market value on the date hereof at least equal to the principal amount of this Note, based upon the trading price of such securities on the OTC Bulletin Board, NASDAQ Capital Market, NASDAQ Global Market, NASDAQ Global Select Market, NYSE Amex, or New York Stock Exchange;

 

iii. all rights of Borrower with respect to or arising out of the Pledged Securities and all equity and debt securities and other property distributed or distributable with respect thereto as a result of merger, consolidation, dissolution, reorganization, recapitalization, stock split, stock dividend, reclassification, exchange, redemption, or other change in capital structure; and

 

iv. all proceeds, replacements, substitutions, accessions and increases in any of the Collateral.

 

b. Replacement Securities.  So long as any Secured Obligations remain outstanding, in the event that Borrower sells or disposes of any Pledged Securities, Borrower will promptly provide replacement securities of equal or greater value to such Pledged Securities.

 

c. Rights With Respect to Distributions.  So long as no default will have occurred and be continuing under this Note, Borrower will be entitled to receive any and all dividends and distributions made with respect to the Pledged Securities and any other Collateral.  However, upon the occurrence and during the continuance of any default, Lender will have the sole right (unless otherwise agreed in writing by Lender in its sole discretion)
to receive and retain dividends and distributions and apply them to the outstanding balance of this Note or hold them as Collateral, at Lender’s election.

 

d. Voting Rights.  So long as no default will have occurred and be continuing under this Note, Borrower will be entitled to exercise all voting rights pertaining to the Pledged Securities and any other Collateral.  However, upon the occurrence and during the continuance of any default, all rights of Borrower to exercise the rights that Borrower would otherwise be entitled to exercise with respect to the Collateral will cease and, unless
otherwise agreed in writing by Lender in its sole discretion, all such rights will thereupon become vested in Lender, which will thereupon have the sole right to exercise such rights.

 

e. Financing Statement; Further Assurances.  Borrower agrees, concurrently with executing this Note, that Lender may file a UCC-1 financing statement relating to the Collateral in favor of Lender, and any similar financing statements in any jurisdiction in which Lender reasonably determines such filing to be necessary.  Borrower further agrees that at any time during the continuance of any default Borrower will promptly execute and
deliver all further instruments and documents that Lender may request in order to perfect and protect the security interest granted hereby, or to enable Lender to exercise and enforce its rights and remedies with respect to any Collateral.  In addition, following an event of default, Borrower will deliver the Collateral, including original certificates or other instruments representing the Pledged Securities and stock powers endorsed in blank, to Lender to hold as secured party, and Borrower will, if requested by Lender, execute a securities account control agreement.

 

f. Powers of Lender.  Borrower hereby appoints Lender as Borrower’s true and lawful attorney-in-fact to perform any and all of the following acts, which power is coupled with an interest, is irrevocable until the Secured Obligations are paid and performed in full, and may be exercised from time to time by Lender in its discretion:  To take any action and to execute any instrument which Lender may deem reasonably necessary or
desirable to accomplish the purposes of this Section 4(f) and, more broadly, this Note including, without limitation:  (i) to exercise rights with respect to Collateral in accordance with this Note, (ii) during the continuance of any default hereunder, to receive, endorse and collect all instruments or other forms of payment made payable to Borrower representing any dividend, interest payment or other distribution in respect of the Collateral or any part thereof and to give full discharge for the same, when and to the extent permitted by this Note, (iii) to perform or cause the performance of any obligation of Borrower hereunder in Borrower’s name or otherwise, (iv) during the continuance of any default hereunder, to liquidate any Collateral pledged to Lender hereunder and to apply proceeds thereof to the payment of
the Secured Obligations or to place such proceeds into a cash collateral account or to transfer the Collateral into the name of Lender, all at Lender’s sole discretion, (v)  to enter into any extension, reorganization or other agreement relating to or affecting the Collateral, and, in connection therewith, to deposit or surrender control of the Collateral, (vi) to accept other property in exchange for the Collateral, (vii) to make any compromise or settlement Lender deems desirable or proper, and (viii) to execute on Borrower’s behalf and in Borrower’s name any documents required in order to give Lender a continuing first lien upon the Collateral or any part thereof.

 

5. Additional Terms.

 

a. No Waiver.  The acceptance by Lender of payment of a portion of any installment when due or an entire installment but after it is due will neither cure nor excuse the default caused by the failure of Borrower timely to pay the whole of such installment and will not constitute a waiver of Lender’s right to require full payment when due of any future or succeeding installments.

 

b. Default.  Any one or more of the following will constitute a “default” under this Note:  (i) a default in the payment when due of any amount hereunder, (ii) Borrower’s refusal or failure to perform any material term, provision or covenant under this Note, (iii) the commencement of any liquidation, receivership, bankruptcy, assignment for the
benefit of creditors or other debtor-relief proceeding by or against Borrower, (iv) the transfer by Borrower of any Pledged Securities without being replaced by Pledged Securities in accordance with Section 4(b), and (iv) the levying of any attachment, execution or other process against Borrower, the Collateral or any material portion thereof.

 

c. Default Rights.

 

i. Upon the occurrence of any payment default Lender may, at its election, declare the entire balance of principal and interest under this Note immediately due and payable.  A delay by Lender in exercising any right of acceleration after a default will not constitute a waiver of the default or the right of acceleration or any other right or remedy for such default.  The failure by Lender to exercise any right of acceleration as a result of a default will not constitute a waiver of the right of acceleration or any other right or remedy with respect to any other default,
whenever occurring.

 

ii. Further, upon the occurrence of any material non-monetary default, following 30 days notice from Lender to Borrower specifying the default and demanded manner of cure for any non-monetary default, Lender will thereupon and thereafter have any and all of the rights and remedies to which a secured party is entitled after a default under the applicable Uniform Commercial Code, as then in effect.  In addition to Lender’s other rights and remedies, Borrower agrees that, upon the occurrence of default, Lender may in its sole discretion do or cause to be done any one or more of
the following:

 

(a) Proceed to realize upon the Collateral or any portion thereof as provided by law, and without liability for any diminution in price which may have occurred, sell the Collateral or any part thereof, in such manner, whether at any public or private sale, and whether in one lot as an entirety, or in separate portions, and for such price and other terms and conditions as is commercially reasonable given the nature of the Collateral.

 

(b) If notice to Borrower is required, give written notice to Borrower at least ten days before the date of sale of the Collateral or any portion thereof.

 

(c) Transfer all or any part of the Collateral into Lender’s name or in the name of its nominee or nominees.

 

(d) Vote all or any part of the Collateral (whether or not transferred into the name of Lender ) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto, as though Lender were the outright owner thereof.

 

iii. Borrower acknowledges that all or part of foreclosure of the Collateral may be restricted by state or federal securities laws, Lender may be unable to effect a public sale of all or part of the Collateral, that a public sale is or may be impractical and inappropriate and that, in the event of such restrictions, Lender thus may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to its distribution or
resale.  Borrower agrees that if reasonably necessary Lender may resort to one or more sales to a single purchaser or a restricted or limited group of purchasers.  Lender will not be obligated to make any sale or other disposition, unless the terms thereof will be satisfactory to it.

 

iv. If, in the opinion of Lender based upon written advice of counsel, any consent, approval or authorization of any federal, state or other governmental agency or authority should be necessary to effectuate any sale or other disposition of any Collateral, Borrower will execute all such applications and other instruments as may reasonably be required in connection with securing any such consent, approval or authorization, and will otherwise use its commercially reasonable best efforts to secure the same.

 

d. The rights, privileges, powers and remedies of Lender will be cumulative, and no single or partial exercise of any of them will preclude the further or other exercise of any of them.  Any waiver, permit, consent or approval of any kind by Lender of any default hereunder, or any such waiver of any provisions or conditions hereof, must be in writing and will be effective only to the extent set forth in writing.  Any proceeds of any disposition of the Collateral, or any part thereof, may be applied by Lender to the payment of expenses incurred by Lender in connection with
the foregoing, and the balance of such proceeds will be applied by Lender toward the payment of the Secured Obligations.

 

6. Organization; Authority.  Borrower represents and warrants to Lender that it is an entity validly existing and in good standing under the laws of the jurisdiction of its organization with full right, company power and authority to enter into and to consummate the transactions contemplated by this Note and otherwise to carry out its obligations hereunder.  The execution, delivery and performance by Borrower of the transactions
contemplated by this Note have been duly authorized by all necessary company or similar action on the part of Borrower.  This Note has been duly executed by Borrower, and when delivered by Borrower in accordance with the terms hereof, will constitute the valid and legally binding obligation of Borrower, 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

 

7. General Terms.

 

a. No Oral Waivers or Modifications.  No provision of this Note may be waived or modified orally, but only in a writing signed by Lender and Borrower.

 

b. Attorney Fees.  The prevailing party in any action by Lender to collect any amounts due under this Note will be entitled to recover its reasonable attorneys fees and costs.

 

c. Governing Law.  This Note has been executed and delivered in, and is to be construed, enforced, and governed according to the internal laws of, the State of New York without regard to its principles of conflict of laws that would require or permit the application of the laws of any other jurisdiction.

 

d. Severability.  Whenever possible, each provision of this Note will be interpreted in such manner as to be effective and valid under applicable law.  However, if any provision of this Note will be held to be prohibited by or invalid under applicable law, it will be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of that provision or the other provisions of this Note.

 

e. Entire Agreement.  This Note contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters.

 

IRONRIDGE GLOBAL IV, LTD.

By:                                                      

Name:                                                                

Title:                                                      

 

  

  

  

Exhibit 4

Form of Transfer Agent Instructions

 

[Letterhead of ULURU Inc.]

September 12, 2011

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, NY 10004

Re:           ULURU Inc.

Ladies and Gentlemen:

In accordance with the Common Stock Purchase Agreement (“Agreement”), dated September 12, 2011, by and between ULURU Inc., a Nevada corporation (“Company”), and Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”), pursuant to which Company may issue and deliver shares (“Shares”) of Company’s common stock, par value $0.001 per share
(“Common Stock”), this will serve as our irrevocable authorization and direction to you (provided that you are the transfer agent of Company at such time), in the event the Purchaser issues a Notice to issue the Shares.  Capitalized terms used herein without definition will have the respective meanings ascribed to them in the Agreement.

Upon your receipt of a copy of the Notice executed by Purchaser, whether or not acknowledged by Company, you will use your best efforts to, within one (1) Trading Day following the date of receipt of the notice of exercise, (a) issue and surrender to a common carrier for overnight delivery to the address as specified in the notice of exercise a certificate, registered in the name of the Purchaser or its designee, for the number of shares of Common Stock to which the Purchaser is entitled upon exercise of the Obligation arrant as set forth in the notice of exercise, or (b) provided you are participating in The Depository Trust Company (DTC) Fast Automated Securities
Transfer (FAST) Program, upon the request of the Purchaser, credit such aggregate number of shares of Common Stock to which the Purchaser is entitled to the Purchaser’s or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian (DWAC) system provided the Purchaser causes its bank or broker to initiate the DWAC transaction.

Company hereby confirms that the Shares should not be subject to any stop-transfer restrictions and will otherwise be freely transferable on the books and records of Company.  If the Shares are certificated, the certificates will not bear any legend restricting transfer of the shares represented thereby.

Company hereby confirms that no instructions other than as contemplated herein will be given to you by Company with respect to the Shares. Company hereby agrees that it will not replace you as Company’s transfer agent, until such time as Company provides written notice to you and Purchaser that a suitable replacement has agreed to serve as transfer agent and to be bound by the terms and conditions of this letter agreement regarding Irrevocable Transfer Agent Instructions (this “Agreement”).

Company and you hereby acknowledge and confirm that complying with the terms of this Agreement does not and will not prohibit you from satisfying any and all fiduciary responsibilities and duties you may owe to Company.

Company must keep its bill current with you – if Company is not current and is on suspension, the Purchaser will have the right to pay Company’s outstanding bill, in order for you to act upon this Agreement. If the outstanding bill is not paid by Company or the Purchaser, you have no further obligation under this Agreement.

IN WITNESS WHEREOF, the parties have caused this letter agreement regarding Transfer Agent Instructions to be duly executed and delivered as of the date first written above.

ULURU INC.

By:                                                      

Name:                                                                

Title:                                                      

The Foregoing Instructions Are Acknowledged:

CONTINENTIAL STOCK TRANSFER & TRUST COMPANY

 

By:                                                      

Name:                                                                

Title:                                                      

  

  

  

Exhibit 5

Form of Legal Opinion

We are counsel to ULURU Inc., a Nevada corporation (“Company”), in connection with the sale and issuance of shares (“Shares”) of Company’s common stock, par value $0.001 per share (“Common Stock”) to Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”), pursuant to the terms of the Common Stock Purchase Agreement dated as of September 12, 2011
(“Agreement”, and collectively with all documents and agreements related to or arising from the Agreement, the “Transaction Documents”), by and between Company and Purchaser.  Capitalized terms not otherwise defined herein have the meanings set forth in the Transaction Documents.

 

We are of the opinion that, as of the date hereof:

 

1. Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada.

 

2. The Shares are duly authorized and, when issued in accordance with the terms and conditions of the Agreement will be, legally and validly issued, fully paid and non-assessable.  The issuance of the Shares will not be subject to any statutory or, to our knowledge, contractual preemptive rights of any stockholder of Company.

 

3. Company has the corporate power and authority to (a) execute, deliver and perform all of its obligations under the Agreement and the Transaction Documents, and (b) issue, sell and deliver the Shares.

 

4. The execution, delivery and performance of the Agreement and the Transaction Documents have been duly authorized by all necessary corporate action on the part of Company, and have been duly executed and delivered by Company.

 

5. Upon execution and delivery of the Agreement, the Agreement will constitute the legal, valid and binding obligation of Company, enforceable against Company in accordance with its terms.

 

6. The execution and delivery of the Transaction Documents by Company does not, and Company’s performance of its obligations thereunder will not (a) violate the certificate or articles of incorporation or the by-laws of Company, as in effect on the date hereof, (b) violate in any material respect any federal or state law, rule or regulation, or judgment, order or decree of any state or federal court or governmental or administrative authority, in each case that, to our knowledge, is applicable to Company or its properties or assets and which could have a material adverse effect on Company’s business,
properties, assets, financial condition or results of operations or prevent the performance by Company of any material obligation under the Agreement, or (c) require the authorization, consent, approval of or other action of, notice to or filing or qualification with, any state or federal governmental authority, except (i) as have been duly obtained or made, or (ii) to the extent failure to be so obtained or made would not have a material adverse effect on Company or its ability to consummate the transactions contemplated under the Agreement.

 

7. To our knowledge, there is no claim, action, suit, proceeding, arbitration, investigation or inquiry, pending or threatened, before any court or governmental or administrative body or agency, or any private arbitration tribunal, against Company that challenges the validity or enforceability of, or seeks to enjoin the performance of, the Agreement.

 

8. Company is not, and immediately after the consummation of the transactions contemplated by the Agreement will not be, an investment company within the meaning of Investment Company Act of 1940, as amended.

 

9. The Registration Statement is current, valid and effective, and the Shares may be offered and sold to Purchaser by Company pursuant to such Registration Statement.

 

10. Nothing has come to our attention that has caused us to believe that the Registration Statement, as of either its date or the date of this letter, contained any untrue statement of material fact, or failed to state a material fact necessary in order to make the facts stated therein, in light of the circumstances in which they were made, not misleading.

 

Sincerely,

 

 

  

  

  

Exhibit 6

 

Form of Officer’s Certificate

 

 

ULURU INC.

 

[Closing Date]

 

The undersigned hereby certifies that:

 

The undersigned is the duly appointed [__________] of ULURU Inc., a Nevada corporation (“Company”).

 

This Officer’s Certificate (“Certificate”) is being delivered to Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”), by Company, to fulfill the requirement under the Common Stock Purchase Agreement, dated as of September 12, 2011, between Purchaser and Company (“Agreement”).  Terms used and not defined in this Certificate have the meanings set forth in the Agreement.

 

The representations and warranties of Company set forth in the Agreement are true and correct in all material respects as if made on the above date (except for any representations and warranties that are expressly made as of a particular date, in which case such representations and warranties will be true and correct as of such particular date), and no default has occurred under the Agreement, or any other agreement with Purchaser or any Affiliate of Purchaser.

 

Company is not, and will not be as a result of the applicable Closing, in default of the Agreement, any other agreement with Purchaser or any Affiliate of Purchaser.

 

All of the conditions to the Closing required to be satisfied by Company prior to such Closing have been satisfied in their entirety.

 

IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate as of the date set forth above.

 

Signed:                                                                

Name:                                                                

Title:                                                      

 

  

  

  

Exhibit 7

 

Form of Secretary’s Certificate

 

 

[Closing Date]

 

The undersigned hereby certifies that:

 

The undersigned is the duly appointed Secretary of ULURU Inc., a Nevada corporation (the “Company”).

 

This Secretary’s Certificate (“Certificate”) is being delivered to Ironridge Global BioPharma, a division of Ironridge Global IV, Ltd., a British Virgin Islands business company (“Purchaser”), by Company, to fulfill the requirement under the Common Stock Purchase Agreement, dated as of September 12, 2011, between Purchaser and Company (“Agreement”).  Terms used and not defined in this Certificate have the meanings set forth in the Agreement.

 

Attached hereto as Exhibit “A” is a true, correct and complete copy of the Certificate of Incorporation of Company, as in effect on the Execution Date.

 

Attached hereto as Exhibit “B” is a true, correct and complete copy of the Bylaws of Company, as in effect on the Execution Date.

 

Attached hereto as Exhibit “C” is a true, correct and complete copy of the resolutions of the Board of Directors of Company authorizing the Agreement, the Transaction Documents, and the transactions contemplated thereby.  Such resolutions have not been amended or rescinded and remain in full force and effect as of the date hereof.

 

IN WITNESS WHEREOF, the undersigned has executed this Secretary’s Certificate as of the date set forth above.

 

Signed:                                                                

Name:                                                                

Title:Amended and Restated Investor Rights Agreement

 Exhibit 4.3 

 
  
  

 
  
  

 
 GCT
SEMICONDUCTOR, INC. 
 AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

November 30, 2007 
  

 

 TABLE OF CONTENTS 

									
	 	  	 	  	 	  	Page	 
	1.	  	Registration Rights	  	 	2	  
		  	1.1.	  	Definitions	  	 	2	  
		  	1.2.	  	Request for Registration	  	 	3	  
		  	1.3.	  	Company Registration	  	 	5	  
		  	1.4.	  	Obligations of the Company	  	 	5	  
		  	1.5.	  	Furnish Information	  	 	7	  
		  	1.6.	  	Expenses of Demand Registration	  	 	7	  
		  	1.7.	  	Expenses of Company Registration	  	 	7	  
		  	1.8.	  	Underwriting Requirements	  	 	8	  
		  	1.9.	  	Delay of Registration	  	 	8	  
		  	1.10.	  	Indemnification	  	 	8	  
		  	1.11.	  	Reports Under the Securities and Exchange Acts	  	 	10	  
		  	1.12.	  	Form S-3 Registration	  	 	11	  
		  	1.13.	  	Assignment of Registration Rights	  	 	12	  
		  	1.14.	  	Limitations on Subsequent Registration Rights	  	 	12	  
		  	1.15.	  	“Market Stand-Off” Agreement	  	 	13	  
		  	1.16.	  	Termination of Registration Rights	  	 	14	  
			
	2.	  	Covenants of the Company	  	 	14	  
		  	2.1.	  	Delivery of Annual Financial Statements	  	 	14	  
		  	2.2.	  	Delivery of Other Financial Statements	  	 	15	  
		  	2.3.	  	Inspection	  	 	15	  
		  	2.4.	  	Termination of Information and Inspection Covenants	  	 	15	  
		  	2.5.	  	Right of First Offer	  	 	16	  
		  	2.6.	  	Compliance with Laws	  	 	17	  
		  	2.7.	  	Property Insurance	  	 	17	  
		  	2.8.	  	Taxes	  	 	17	  
		  	2.9.	  	Intellectual Property	  	 	18	  
		  	2.10.	  	Changes and Events	  	 	18	  
		  	2.11.	  	Engagement of Financial Advisor	  	 	18	  
		  	2.12.	  	Proprietary Information and Inventions Agreements	  	 	18	  
		  	2.13.	  	Future Option Grants	  	 	18	  
		  	2.14.	  	Data Base Installation	  	 	19	  
		  	2.15.	  	Board Member Expenses	  	 	19	  
		  	2.16.	  	Approval of the Financial Investors.	  	 	19	  
		  	2.17.	  	Approval of the Financial Investors and the Board of Directors.	  	 	19	  
		  	2.18.	  	Audit Committee Authority	  	 	20	  
		  	2.19.	  	Restricted Funds/Account Management.	  	 	20	  
		  	2.20.	  	Violation of Certain Covenants and Noncompliance with Accounting Principles	  	 	20	  
		  	2.21.	  	Termination of Certain Covenants	  	 	21	  
			
	3.	  	Miscellaneous	  	 	21	  
		  	3.1.	  	Notices	  	 	21	  
		  	3.2.	  	Entire Agreement	  	 	21	  
		  	3.3.	  	Successors and Assigns	  	 	21	  

  
 i 

										
		  	3.4.	  	Amendments and Waivers	  	 	 	21	 
		  	3.5.	  	Severability	  	 	 	22	 
		  	3.6.	  	Titles and Subtitles	  	 	 	22	 
		  	3.7.	  	Governing Law	  	 	 	22	 
		  	3.8.	  	Expenses	  	 	 	22	 
		  	3.9.	  	Confidentiality	  	 	 	22	 
		  	3.10.	  	Further Assurances	  	 	 	22	 
		  	3.11.	  	Aggregation of Stock	  	 	 	23	 
		  	3.12.	  	Other Activities of the Investors	  	 	 	23	 
		  	3.13.	  	Additional Investors	  	 	 	23	 
		  	3.14.	  	Counterparts	  	 	 	23	 
			
	 Schedule A    
	  	Schedule of Series B Investors	  	 			
	 Schedule B
	  	Schedule of Series C Investors	  	 			
	 Schedule C
	  	Schedule of Series D Investors	  	 			
	 Schedule D
	  	Schedule of Series E Investors	  	 			
	 Schedule E
	  	Schedule of Series F Investors	  	 			

  
 ii 

 AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (the “Agreement”) is made as of the 30th day of
November, 2007, by and among GCT Semiconductor, Inc., a Delaware corporation (the “Company”), Kyeong Ho Lee (the “Founder”), the investors listed on Schedule A hereto (each of which is
herein referred to as a “Series B Investor”), the investors listed on Schedule B hereto (each of which is herein referred to as a “Series C Investor”), the investors listed on
Schedule C hereto (each of which is herein referred to as a “Series D Investor”), the investors listed on Schedule D hereto (each of which is herein referred to as a “Series E
Investor”) and the investors listed on Schedule E hereto (each of which is herein referred to as a “Series F Investor” and together with the Series B Investors, the Series C
Investors, the Series D Investors and the Series E Investors, the “Investors”). 
 RECITALS

 WHEREAS, the Series B Investors, the Series C Investors, the Series D Investors and the Series E Investors possess
registration rights, information rights, rights of first offer and other rights pursuant to that certain Amended and Restated Investors’ Rights Agreement, dated as of June 7, 2006, by and among the Company, the Founder, the Series B
Investors, the Series C Investors, the Series D Investors and the Series E Investors (the “Prior Agreement”); 
 WHEREAS, the Company proposes to enter into a Series F Preferred Stock Purchase Agreement to be dated the date hereof (the “Series F Agreement”) with the Series F
Investors pursuant to which the Series F Investors are purchasing shares of the Company’s Series F Preferred Stock and warrants to purchase shares of the Company’s Series F Preferred Stock; 

WHEREAS, in order to induce the Series F Investors to invest funds in the Company pursuant to the Series F Agreement, the Series B
Investors, the Series C Investors, the Series D Investors and the Series E Investors hereby agree to waive their rights under the Prior Agreement; and 
 WHEREAS, the Company, the Series B Investors, the Series C Investors, the Series D Investors and the Series E Investors agree to enter into this Agreement in order to amend and restate the Prior Agreement
in its entirety, and the Series B Investors, the Series C Investors, the Series D Investors, the Series E Investors and the Company hereby agree that this Agreement shall govern the rights of the Investors to cause the Company to register shares of
the Common Stock of the Company issued or issuable to the Investors and certain other matters as set forth herein. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants set forth herein, and certain other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company, the Series B Investors, the Series C Investors, the Series D Investors and the Series E Investors hereby agree that the Prior

 
Agreement shall be superseded and replaced in its entirety by this Agreement, and the parties hereto further agree as follows: 

1.     Registration Rights. The Company covenants and agrees as follows: 

1.1.    Definitions. For purposes of this Section 1: 

(a)        The term “Closing” shall mean the date of this
Agreement. 
 (b)        The term “Common Stock”
shall mean the Company’s common stock. 
 (c)        The term
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(d)        The term “Financial Investor” means each of the
investors designated as a Financial Investor on Schedule B hereto. 

(e)        The term “Form S-3” means such form under the Securities Act
as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 (f)        The term “Holder” means any person owning or
having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.13 hereof. 

(g)        The term “Preferred Stock” means the
Company’s Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock. 
 (h)        The terms “register,” “registered,” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document. 

(i)        The term “Registrable Securities” means (i) the Common
Stock issuable or issued upon conversion of the Series B Preferred Stock, the Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock, (ii) any Common Stock now held or acquired hereafter by the
Investors and (iii) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in
replacement of the shares referenced in clauses (i) and (ii) of this subsection 1.1(i), excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which such person’s rights under this
Section 1 are not assigned. 
 (j)        The term “Registrable
Securities then outstanding” means the number of shares of Common Stock outstanding which are Registrable Securities plus the 

  
 2 

 
number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are Registrable Securities upon exercise or conversion. 

(k)        The term “SEC” means the Securities and Exchange Commission.

 (l)         The term “Securities Act” means the
Securities Act of 1933, as amended. 
 (m)        The term “Series B
Preferred Stock” means the Company’s Series B Preferred Stock. 

(n)        The term “Series C Preferred Stock” means the
Company’s Series C Preferred Stock. 
 (o)        The term
“Series D Preferred Stock” means the Company’s Series D Preferred Stock. 

(p)        The term “Series E Preferred Stock” means the
Company’s Series E Preferred Stock. 
 (q)        The term
“Series F Preferred Stock” means the Company’s Series F Preferred Stock. 

1.2.    Request for Registration. 
 (a)         If the Company shall receive, at any time after the earlier of (i) the third anniversary of the date hereof or (ii) six (6) months after
the effective date of the first registration statement for a public offering of securities of the Company (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock
purchase or similar plan or a transaction effected pursuant to Rule 145 promulgated by the SEC under the Securities Act), a written request from the Holders of at least twenty-five percent (25%) of the Registrable Securities then outstanding
and held by (I) the Series C Investors, (II) the Series D Investors, (III) the Series E Investors, or (IV) the Series F Investors, stating that the Company file a registration statement under the Securities Act covering the registration of the
Registrable Securities having an anticipated aggregate offering price to the public of at least $15,000,000 (net of underwriting discounts and commissions), then the Company shall: 

(A)         within ten (10) days of the receipt thereof, give written notice of such
request to all Holders; and 
 (B)         effect as soon as practicable, and in any
event within sixty (60) days of the receipt of such request, the registration under the Securities Act of all Registrable Securities which the Holders request to be registered, subject to the limitations of subsection 1.2(b), within twenty
(20) days of the mailing of such notice by the Company in accordance with Section 3.1. 

  
 3 

 (b)         If the Holders initiating the
registration request hereunder (“Initiating Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made
pursuant to subsection 1.2(a) and the Company shall include such information in the written notice referred to in subsection 1.2(a). The underwriter will be selected by the Company and shall be reasonably acceptable to a majority in
interest of the Initiating Holders. In such event, the right of any Holder to include his Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed to by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their Registrable
Securities through such underwriting shall (together with the Company as provided in subsection 1.4(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding
any other provision of this Section 1.2, if the underwriter advises the Company in writing that marketing factors require a limitation of the number of shares of capital stock of the Company to be underwritten, then the Company shall so advise
all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of capital stock of the Company that may be included in the underwriting shall be allocated among all Holders thereof, including
the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company desired to be registered by each such Holder; provided, however, that the number of shares of Registrable Securities to be
included in such underwriting shall not be reduced unless all other shares of capital stock of the Company are first entirely excluded from the underwriting. 
 (c)         Notwithstanding the foregoing, if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2 a
certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement
to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days after receipt of
the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period and provided further, however, that the Company shall not register any securities for the
account of itself or any other stockholder during such ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or
transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a
registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered). 
 (d)         In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:

 (A)         After the Company has effected three (3) registrations pursuant to
this Section 1.2 and such registrations have been declared or ordered effective; 

  
 4 

 (B)         During the period starting with the
date thirty (30) days prior to the Company’s good-faith estimate of the date of filing of, and ending on a date one hundred eighty (180) days (in the case of an initial public offering) or ninety (90) days (in the case of an
offering other than an initial public offering) after the effective date of, a registration subject to Section 1.3 hereof; provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement
to become effective; or 
 (C)         If the Initiating Holders propose to dispose of
shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.12 below. 
 1.3.     Company Registration. If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company
for stockholders other than the Holders) any of its stock or other securities under the Securities Act in connection with the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to
participants in a Company stock plan, a registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities or a
registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities which are also being registered), the Company shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder, given within twenty (20) days after mailing of such notice by the Company in accordance with Section 3.1, the Company shall, subject to the provisions of Section 1.8, cause to be
registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered. In the event the number of shares that may be registered is limited pursuant to Section 1.8, the Company shall not cause
to be registered shares other than Registrable Securities in such registration without the consent of at least two-thirds of the Holders of Registrable Securities. 
 1.4.     Obligations of the Company. Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible: 
 (a)         Prepare and file with the SEC
a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such one
hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains from selling any Registrable Securities included in such registration at the request of an underwriter of Common Stock (or other
securities) of the Company, and (ii) in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such one hundred twenty (120) day period shall be extended, if
necessary, to keep the registration statement effective until all such Registrable Securities are sold, provided that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and provided
further that applicable rules under the Securities Act governing the obligation to file a 

  
 5 

 
post-effective amendment permit, in lieu of filing a post-effective amendment which (I) includes any prospectus required by Section 10(a)(3) of the Securities Act or (II) reflects
facts or events representing a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of information required to be included in (I) and (II) above to be contained in periodic
reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the registration statement. 

(b)         Prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration
statement. 
 (c)         Furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

 (d)         Use its best efforts to register and qualify the Registrable
Securities covered by such registration statement under such other securities or Blue-Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities
Act. 
 (e)         In the event of any underwritten public offering, the Company
shall enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its
obligations under such agreement. 
 (f)         Notify each Holder of Registrable
Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which
they were made. 
 (g)         Cause all such Registrable Securities registered
pursuant to this Section 1 to be listed and quoted on each securities exchange or over-the-counter market on which similar securities issued by the Company are then listed. 

(h)         Provide a transfer agent and registrar for all Registrable Securities
registered pursuant to this Section 1 and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration. 
 (i)         Furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such
Registrable Securities 

  
 6 

 
are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such Registrable Securities are being sold through underwriters, or, if such
Registrable Securities are not being sold through underwriters, on the date that the registration statement with respect to such Registrable Securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company
for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and
(ii) a letter dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities. 

1.5.     Furnish Information.     It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company in writing such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities and any other information with respect to such Holder as the Company may reasonably require to effect the registration of such Holder’s Registrable
Securities. 
 1.6.     Expenses of Demand Registration.     All expenses
other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Section 1.2, including (without limitation) all registration, filing and qualification fees, printers’ and
accounting fees, fees and disbursements of counsel for the Company and the fees and disbursements of one counsel for the selling Holders (selected by the Holders of a majority of the Registrable Securities included in such registration) not to
exceed $25,000 shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 if the registration request is subsequently withdrawn
at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses), unless the Holders of a majority of the Registrable Securities agree to forfeit their
right to one demand registration pursuant to Section 1.2; provided further, however, that if at the time of such withdrawal the Holders have learned of a material adverse change in the business, results of operations, condition (financial or
otherwise) or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall
not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2. 

1.7.     Expenses of Company Registration.     The Company shall bear and pay all
expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to Section 1.3 for each Holder (which right may be assigned as provided in Section 1.13),
including (without limitation) all registration, filing, and qualification fees, printers and accounting fees relating or apportionable thereto and the fees and disbursements of one counsel for the selling Holders (selected by the Holders of a
majority of the Registrable Securities included in such registration) not to exceed 

  
 7 

 
$25,000, but excluding underwriting discounts and commissions relating to Registrable Securities. 
 1.8.     Underwriting Requirements.     In connection with any offering involving an underwriting of shares of the Company’s capital stock, the
Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering
(the securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be
agreed to by such selling stockholders) but in no event shall (i) the amount of securities of the selling Holders included in the offering be reduced below thirty percent (30%) of the total amount of securities included in such offering,
unless such offering is the initial public offering of the Company’s securities in which case the number of shares held by the Holders and any other stockholders proposed to be included in the offering may be reduced to zero if the underwriters
make the determination described above and no other stockholder’s securities are included or (ii) notwithstanding (i) above, any shares being sold by a stockholder exercising a demand registration right similar to that granted in
Section 1.2 be excluded from such offering. For purposes of the preceding parenthetical concerning apportionment, for any selling stockholder which is a Holder of Registrable Securities and which is a partnership or corporation, the partners,
retired partners and stockholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling
stockholder,” and any pro rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling
stockholder,” as defined in this sentence. 
 1.9.     Delay of
Registration.     No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration as the result of any controversy that might arise with respect to the interpretation or
implementation of this Section 1. 
 1.10.     Indemnification.     In
the event that any Registrable Securities are included in a registration statement under this Section 1: 

  (a)         To the extent permitted by law, the Company will indemnify and hold
harmless each Holder, the partners, directors and officers of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act
or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may 

  
 8 

 
become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or
are based upon any of the following statements, omissions, violations or allegations thereof (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law; and the Company will pay to each such Holder (or the partner, director or officer of such Holder), underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by
any of them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim,
damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such
Holder (or the partner, director or officer of such Holder), underwriter or controlling person. 

(b)         To the extent permitted by law, each selling Holder will indemnify and hold
harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling securities
in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Securities
Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred
by any person intended to be indemnified pursuant to this subsection 1.10(b) in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this
subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided
that, in no event shall any indemnity under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder. 
 (c)         Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party
shall have the right to participate in, and, to 

  
 9 

 
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties;
provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by
such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying
party of any liability to the indemnified party under this Section 1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under
this Section 1.10. 
 (d)         If the indemnification provided for in this
Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 

(e)         Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 (f)         The obligations of the Company and Holders under this
Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise. 
 1.11.    Reports Under the Securities and Exchange Acts.     With a view to making available to the Holders the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to: 

(a)         make and keep public information available, as those terms are understood and
defined in SEC Rule 144, at all times after ninety (90) days after the effective 

  
 10 

 
date of the first registration statement filed by the Company for the offering of its securities to the general public; 
 (b)         take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the
Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its
securities to the general public is declared effective; 
 (c)         file with
the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and 
 (d)         furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company
that it has complied with the reporting requirements of SEC Rule 144, or a successor rule (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company), the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits
the selling of any such securities without registration or pursuant to such form. 
 1.12.    Form S-3
Registration.     In case the Company shall receive from any Holder or Holders holding at least 10% of the Registrable Securities then outstanding and held by (i) the Series C Investors, (ii) the Series D Investors,
(iii) the Series E Investors or (iv) the Series F Investors a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company will: 

(a)         promptly give written notice of the proposed registration, and any related
qualification or compliance, to all other Holders; and 
 (b)         as soon as
practicable, effect such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities
as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such
written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this section 1.12 (i) if Form S-3 (or a successor form) is not available
for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $2,500,000; (iii) if the Company shall furnish to the Holders a certificate signed by the President of the Company stating that in the good
faith 

  
 11 

 
judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event
the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than sixty (60) days after receipt of the request of the Holder or Holders under this Section 1.12; provided, however,
that the Company shall not utilize this right more than once in any twelve (12)-month period; (iv) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of
process in effecting such registration, qualification or compliance; or (v) if the Company has, within a twelve (12)-month period preceding such request, already effected two registrations on Form S-3 for the holders pursuant to this
Section 1.12. 
 (c)         Subject to the foregoing, the Company shall file
a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. All expenses incurred in connection with a registration
requested pursuant to this Section 1.12, including (without limitation) all registration, filing, qualification, printers’ and accounting fees and the reasonable fees and disbursements of one counsel for the selling Holder (selected by
Holders of a majority of the Registrable Securities included in such registration) but excluding any underwriters’ discounts or commissions associated with Registrable Securities, shall be borne by the Company. Registrations effected pursuant
to this Section 1.12 shall not be counted as demands for registration or registrations effected pursuant to Section 1.2 or 1.3, respectively. 
 1.13.     Assignment of Registration Rights.     The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may
be assigned (but only with all related obligations) by a Holder to a transferee or assignee who (i) is an ancestor, descendant, sibling or spouse of a Holder, (ii) for a Holder that is an entity, is a parent entity, a wholly owned
subsidiary or an affiliated entity, as affiliate is defined in Section 15 of the Securities Act or Section 20 of the Exchange Act, (iii) for a Holder that is a limited partnership, is its general or limited partner or another limited
partnership with the same investment advisor or manager, or (iv) acquires at least 500,000 shares of Registrable Securities (as adjusted for stock splits, reverse stock splits, reorganizations, recapitalizations, or similar events after the
date hereof) of such securities, provided that (a) the Company is promptly after such transfer furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration
rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including without limitation the provisions of Section 1.15 below; and (c) such
assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act. 

1.14.     Limitations on Subsequent Registration Rights.     From and after the date
of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the outstanding Registrable Securities held by the Series C Investors and without the prior written consent of the Holders of a majority of
the outstanding Registrable Securities held by the Series D Investors (each voting as a separate class), enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective
holder (a) to include such securities in any registration filed under Section 1.2 hereof, unless under the terms of such agreement, such holder or prospective holder 

  
 12 

 
may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders which is
included or (b) to make a demand registration which could result in such registration statement being declared effective prior to the earlier of either of the dates set forth in subsection 1.2(a) or within one hundred eighty (180) days of
the effective date of any registration effected pursuant to Section 1.2. 
 1.15.     
“Market Stand-Off” Agreement.     Each Investor hereby agrees that, during the period of duration specified by the Company and an underwriter of Common Stock or other securities of the Company, following the date
of the first sale to the public pursuant to a registration statement of the Company filed under the Securities Act, it shall not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to
sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any securities of the Company held by it at any time during such period
except Common Stock included in such registration; provided, however, that: 

(a)         such agreement shall be applicable only to the first such registration statement of
the Company which covers Common Stock (or other securities) to be sold on its behalf to the public in an underwritten offering; 
 (b)         all officers and directors of the Company, all other persons with registration rights (whether or not pursuant to this Agreement) and all
securityholders holding more than 1% of the Company’s capital stock (including options, warrants or other rights to acquire capital stock of the Company) outstanding on a fully diluted basis enter into similar agreements; and 

(c)         such market stand-off time period shall not exceed one hundred eighty (180) days.

 In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of
each Investor (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. 
 Notwithstanding the foregoing, if: (x) during the last seventeen (17) days of the 180-day lock-up period the Company issues an earnings release or material news or a material event relating to the Company
occurs; or (y) prior to the expiration of the 180-day lock-up period, the Company announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the 180-day lock-up period, the restrictions described
above shall continue to apply until the expiration of the eighteen (18)-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. 

  
 13 

 Notwithstanding the foregoing, should any of the persons described in Section 1.15(b)
above be released early from their market stand-off agreement such that they may directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or
dispose of (other than to donees who agree to be similarly bound) all or a portion of their securities of the Company, then the Investors shall likewise be released early from the restrictions of this Section 1.15 and shall be able to sell,
transfer or dispose of an equal percentage of Registrable Securities held by such Investor as those persons selling prior to the end of the market stand-off period. 
 The obligations described in this Section 1.15 shall not apply to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or similar forms which may be promulgated in the
future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms which may be promulgated in the future. 
 1.16.    Termination of Registration Rights. 

(a)        No Holder shall be entitled to exercise any right provided for in this Section 1
after five (5) years following the consummation of the sale of securities pursuant to a registration statement filed by the Company under the Securities Act in connection with the initial firm commitment underwritten offering of its securities
to the general public. 
 (b)        In addition, the right of any Holder to request
registration or inclusion in any registration pursuant to Section 1.3 or Section 1.12 shall terminate on the closing of the first registered public offering of Common Stock initiated by the Company if all shares of Registrable Securities
held or entitled to be held upon conversion by such Holder may immediately be sold under Rule 144 during any ninety (90)-day period, or on such date after the closing of the first Company-initiated registered public offering of Common Stock of the
Company that all shares of Registrable Securities held or entitled to be held upon conversion by such Holder may immediately be sold under Rule 144 during any ninety (90)-day period; provided, however, that the provisions of this
Section 1.16(b) shall not apply to any Holder who owns more than one percent (1%) of the Company’s outstanding stock until such time as such Holder owns less than one percent (1%) of the outstanding stock of the Company.

 2.    Covenants of the Company. 

2.1.    Delivery of Annual Financial Statements. The Company shall deliver to each of the Investors holding
at least 500,000 shares of the Company’s capital stock (on an as converted basis and as adjusted for stock dividends, splits, combinations or the like) as soon as practicable, but in any event within ninety (90) days after the end of each
fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and a schedule as to the sources and applications of funds for such year,
such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), and audited and certified by independent public accountants of nationally recognized
standing selected by the Company; 

  
 14 

 2.2.    Delivery of Other Financial
Statements.    The Company shall deliver to each Financial Investor and each Investor holding at least 1,000,000 shares of the Company’s capital stock (on an as-converted basis and as adjusted for stock dividends,
splits, combinations or the like): 
 (a)        within thirty (30) days of the
end of each month, an unaudited income statement and schedule as to sources and application of funds and an unaudited balance sheet for and as of the end of such month, in reasonable detail; 

(b)        as soon as practicable, but in any event within forty-five (45) days after the
end of each of the first three (3) quarters of each fiscal year of the Company, an unaudited profit or loss statement and schedule setting forth the sources and application of funds for such fiscal quarter (which shall include management’s
analysis of results for such quarter) and an unaudited balance sheet as of the end of such fiscal quarter; 

(c)        within at least thirty (30) days prior to the beginning of each fiscal year, an
annual budget segmented on a monthly basis; 
 (d)        with respect to the financial
statements called for in subsections (a) and (b) of this Section 2.2, an instrument executed by the Chief Financial Officer or President of the Company and certifying that such financials were prepared in accordance with GAAP
consistently applied with prior practice for earlier periods (with the exception of footnotes that may be required by GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified, subject to
year-end audit adjustment; and 
 (e) such other information relating to the financial condition, business, prospects or
corporate affairs of the Company as the Investor or any assignee of the Investor may from time to time reasonably request, provided, however, that the Company shall not be obligated under this subsection (e) or any other subsection of this
Section 2.2 to provide information which it deems in good faith to be a trade secret or similar confidential information. 

2.3.    Inspection.    The Company shall permit each Financial Investor and each Investor
then holding at least 1,000,000 shares of the Company’s capital stock (on an as converted basis and as adjusted for stock dividends, splits, combinations or the like) and their representatives upon reasonable notice and, at such Investor’s
expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers (including the use of an auditor in such inspection and
discussion), all at such reasonable times during ordinary business hours as may be requested in writing by the Investor; provided, however, that the Company shall not be obligated pursuant to this Section 2.3 to provide access to any
information which it reasonably considers to be a trade secret or similar confidential information. 

2.4.    Termination of Information and Inspection Covenants.     The covenants set forth
in subsections 2.2(b), (c) and (e) and Section 2.3 shall terminate as to Investors and be of no further force or effect upon the earliest of (i) the consummation of a bona fide, firmly underwritten public offering of shares of
Common Stock, registered under the 

  
 15 

 
Securities Act pursuant to a registration statement on Form S-1, (ii) the date the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of
the Exchange Act or (iii) an acquisition of or sale of the Company. 
 2.5.    Right of First
Offer.     Subject to the terms and conditions specified in this Section 2.5, the Company hereby grants to each Investor then holding at least 500,000 shares of the Company’s capital stock (on an as converted basis
and as adjusted for stock dividends, splits, combinations or the like) a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined). For purposes of this Section 2.5, an “Investor” shall
include any general partner or affiliate of an Investor. An Investor shall be entitled to apportion the right of first offer hereby granted it among itself and its partners and affiliates in such proportions as it deems appropriate. 

Each time the Company proposes to offer any shares of, or securities convertible into or exchangeable or exercisable for any shares of,
any class of its capital stock (“Shares”), the Company shall first make an offering of such Shares to each Investor in accordance with the following provisions: 

(a)        The Company shall deliver a notice by certified mail
(“Notice”) to the Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered and (iii) the price and terms, if any, upon which it proposes to offer such
Shares. 
 (b)        Within twenty (20) calendar days after receipt of the
Notice, each Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of such Shares which equals the proportion that the number of shares of Common Stock issued and held, or issuable upon
conversion of the Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock then held, by such Investor bears to the total number of shares of Common Stock issued and held, or
issuable upon conversion of the Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock then held, by all the Investors. The Company shall promptly, in writing, inform each
Investor which purchases all the shares available to it (“Fully-Exercising Investor”) of any other Investor’s failure to do likewise. During the ten (10)-day period commencing after receipt of such information, each
Fully-Exercising Investor shall be entitled to obtain that portion of the Shares not subscribed for by the Investors which is equal to the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion of Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock then held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock issued and held, or issuable
upon conversion of the Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock then held, by all Fully-Exercising Investors who wish to purchase some of the unsubscribed
shares. 
 (c)        If all Shares which Investors are entitled to obtain pursuant to
subsection 2.5(b) are not elected to be obtained as provided in subsection 2.5(b) hereof, the Company may, during the thirty (30)-day period following the expiration of the period provided

  
 16 

 
in subsection 2.5(b) hereof, offer the remaining unsubscribed portion of such Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than
those specified in the Notice. If the Company does not enter into an agreement for the sale of the Shares within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right of first offer
provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Investors in accordance herewith. 
 (d)        The right of first offer in this Section 2.5 shall not be applicable to (i) options and shares of capital stock granted or sold to employees,
directors and consultants pursuant to plans or agreements approved by the Board of Directors, (ii) shares of capital stock issued in connection with an acquisition, business combination, merger, asset purchase, other reorganization or similar
transaction, (iii) shares of capital stock issued in connection with any stock split, stock dividend or recapitalization of the Company, (iv) shares of capital stock issued in connection with corporate or strategic relationships, joint
development, distribution or similar agreements or comprehensive marketing and technology-sharing arrangements approved by the Series C Investors, including each representative of the Financial Investors, (v) shares of capital stock issued in
connection with warrants outstanding as of the date hereof to purchase shares of Common Stock, Series D Preferred Stock, Series E Preferred Stock and Series F Preferred Stock or (vi) shares of Common Stock issued in connection with the
conversion of Preferred Stock of the Company. 
 (e)        The right of first offer
set forth in this Section 2.5 may not be assigned or transferred, except that (i) such right is assignable by each Holder to any wholly owned subsidiary or parent of, or to any corporation or entity that is, within the meaning of the
Securities Act, controlling, controlled by or under common control with, any such Holder, (ii) such right is assignable between and among any of the Holders and (iii) such right may be assigned to a transferee of 1,000,000 Registrable
Securities, provided such transferee agrees to be bound by all of the terms and conditions of this Agreement. 

2.6.    Compliance with Laws.    The Company shall duly observe and conform to all valid
requirements of governmental authorities relating to the conduct of their businesses or to its property or assets, including requirements under the Employee Retirement Income Security Act of 1974 and the Foreign Corrupt Practices Act of 1977, as
amended. 
 2.7.    Property Insurance.    The Company will keep its assets that
are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire, extended coverage, and explosion insurance in amounts customary for companies in similar businesses similarly situated; and the Company
will maintain, with financially sound and reputable insurers, insurance against other hazards, risks, and liabilities to persons and property to the extent and in the manner customary for companies in similar businesses similarly situated.

 2.8.    Taxes.    The Company will promptly pay and discharge, or cause to be
paid and discharged, when due and payable, all lawful taxes, assessments, and governmental charges or levies imposed upon the income, profits, property, or business of the Company; provided, however, that any such tax, assessment, charge, or levy
need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if the Company 

  
 17 

 
shall have set aside on its books adequate reserves with respect thereof; and provided, further, that in the event such tax or payment is unpaid and deemed necessary to be paid, the Company shall
make such payment within a reasonable period of time following such determination. The Company will not take any action that either impairs or limits the use of the Company’s net operating losses. 

2.9.    Intellectual Property.     The Company shall maintain in full force and effect
its rights to use patents, processes, licenses, trademarks, trade names, or copyrights owned or possessed by it and deemed by the Company to be necessary to the conduct of its business as currently conducted and as currently proposed to be
conducted. The Company shall require that all employees, consultants or other service providers that assign intellectual property to the Company or its affiliates in connection with the filing of a patent by the Company or its affiliates shall
execute a Remuneration Confirmation in the form previously provided to special counsel to the Investors and shall take all other steps required by its existing Patent Remuneration Policy and Korean law regarding the assignment of intellectual
property by employees, consultants or other service providers. 
 2.10.     Changes and
Events.    The Company will notify each Investor then holding at least 2,000,000 shares of the Company’s capital stock (on an as converted basis and as adjusted for stock dividends, splits, combinations or the like), in
writing, of each suit or proceeding commenced or threatened against the Company which if adversely determined, would result in a material adverse change in the conditions or business, financial or otherwise, of the Company. The Company will notify
such Investor in writing of any event of default under any material agreement which would result in a material adverse change in the conditions or business, financial or otherwise, of the Company. The Company will notify such Investor in writing of
any corporate event which would result in a material adverse change in the conditions or business, financial or otherwise, of the Company. 
 2.11.     Engagement of Financial Advisor.     On or after November 4, 2006, at the request of a majority of holders of the shares of Series C Preferred
Stock held by the Financial Investors, the Company shall engage a financial advisor of national standing and reputation to assist the Company in arranging a merger of the Company or sale of the Company’s assets and the Company will actively
pursue and use its best efforts to effect such sale. 
 2.12.     Proprietary Information and Inventions
Agreements.     The Company will cause each person now or hereafter employed by it or any subsidiary with access to confidential information relating to the Company or any of its subsidiaries to enter into a proprietary
information and inventions agreement substantially in the form approved by the Board of Directors. 
 2.13.
    Future Option Grants.     Unless otherwise agreed to by the Compensation Committee of the Board of Directors, the right to exercise options granted under the Company’s stock option plan or
other approved plans after the date hereof will vest, and the Company’s repurchase rights with respect to shares granted under such stock option plan or other approved plans shall lapse, until the option holder’s employment with or service
to the Company terminates, over a four (4) year period on terms no more favorable than twenty-five percent (25%) on the first anniversary of the grant date with the remaining seventy-five percent (75%)

  
 18 

 
vesting monthly on a pro rata basis over thirty-six (36) months, so as to be fully vested at the expiration of four (4) years. 

2.14.     Data Base Installation.     The Company shall install device layout and
schematic data bases for the production of any of the Company’s future products at the Company’s offices at 2121 Ringwood Avenue, San Jose, California. 
 2.15.     Board Member Expenses.     The Company shall reimburse each member of the Company’s Board of Directors for the reasonable and documented
travel expenses of such Board member in connection with each meeting of the Company’s Board of Directors attended by such member. 
 2.16.     Approval of the Financial Investors.     In addition to the required stockholder approvals as set forth in the Company’s Amended and Restated
Certificate of Incorporation, for so long as the Financial Investors hold a majority of the Series C Preferred Stock issued to the Financial Investors as of the date hereof, the following actions by the Company shall require obtaining the prior
written consent of the holders of a majority of the shares of Series C Preferred Stock held by the Financial Investors as of the date of such action (which consent shall not be unreasonably withheld by the Financial Investors): 

(a)          a merger or consolidation of the Company or the sale of all or substantially
all of the assets of the Company; 
 (b)         an acquisition by the Company;

 (c)         the liquidation, recapitalization or reorganization of the Company;

 (d)          the issuance of any equity security senior to or on parity with
the Series C Preferred Stock as to dividend rights, redemption rights, liquidation preference or other rights; 
 (e)
         the redemption or purchase of any of the capital stock of the Company, except repurchases at their original cost of employee Common Stock upon termination of employment; or 

(f)          the increase or decrease in the number of members of the Board of Directors.

 2.17.     Approval of the Financial Investors and the Board of
Directors.    In addition to the required stockholder approvals as set forth in the Company’s Amended and Restated Certificate of Incorporation, the following actions by the Company shall require obtaining (i) the
prior consent of a majority of the Board of Directors and (ii) the prior written consent of the holders of a majority of the shares of Series C Preferred Stock held by the Financial Investors as of the date of such action (which consent shall
not be unreasonably withheld by the Financial Investors): 

  
 19 

 (a)        The hiring or termination of Kyeong Ho
Lee, Jeong Min Kim, Suwon Kang and Joon Bae Park; 
 (b)         Entering into, or
amending, any agreement with an aggregate value of over $150,000 in any one-month period with respect to the Company’s payment obligation(s) unless otherwise approved by Pequot; or 

(c)         Any single transfer, or series of related transfers, direct or indirect, of funds
greater than $150,000 in the aggregate in any one-month period from the Company to GCT Asia Pacific, Inc., GCT Research, Inc., or any other subsidiary or affiliate of the Company, or any single transfer, or series of related transfers, of funds
greater than $150,000 in the aggregate from the Company to any third party outside of the United States in any one-month period; provided, that if such transfer amounts are reflected in the monthly or quarterly budget, as the case may be, approved
by the Audit Committee of the Company, including the representative of the Financial Investors, in accordance with the charter of the Audit Committee, then no such consent is required. 

2.18.    Audit Committee Authority.     The Company hereby covenants and agrees that the
powers irrevocably granted to the Audit Committee pursuant to the unanimous written consent of the Board of Directors dated November 4, 2002 (the “November 2002 Consent”) shall not be altered or amended
without the unanimous written consent of the Board of Directors. Any amendment to the charter of the Audit Committee approved by the November 2002 Consent shall require the approval of the Board of Directors and the Audit Committee (including the
director elected by the Financial Investors). 
 2.19.     Restricted Funds/Account
Management.    The provisions regarding the Restricted Funds Account and the Account Management Policy, as such terms are defined in the November 2002 Consent, shall remain in full force and effect and shall apply to funds
received in connection with the sale and issuance of Series F Preferred Stock. Any amendments to the Restricted Funds Account and the Account Management Policy or the resolutions set forth in the November 2002 Consent with respect to the Restricted
Funds Account and the Account Management Policy shall require the prior approval of the Audit Committee (including the director elected by the Financial Investors). 
 2.20.     Violation of Certain Covenants and Noncompliance with Accounting Principles.     In the event the Company, at any time before or after the Closing,
provides copies of documents presenting the results of operations and financial condition for the Company, such documents are known by a member or members of the management of the Company to not be materially accurate or in material compliance with
generally accepted accounting principles or the laws of the United States and the Company shall not have corrected such material inaccuracy or noncompliance within sixty (60) days of any notification of any material inaccuracy or noncompliance,
the Company shall take all necessary action required to allow the holders of a majority of the Series C Preferred Stock held by the Financial Investors to designate four (4) additional members of the Board of Directors as provided for in the
Voting Agreement. In the event the Company takes any action as set forth in Sections 2.16, 2.17, 2.18 and 2.19 without the required approval or consent as provided therein, the Financial Investors shall notify the Company in writing of such
violation. If, following receipt of such notice, the 

  
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Company shall not have rescinded any such action item or obtained the waiver or approval of the Financial Investors within sixty (60) days, the Company shall take all necessary action
required to allow the holders of a majority of the Series C Preferred Stock held by the Financial Investors to designate four (4) additional members of the Board of Directors as provided for in the Voting Agreement. 

2.21.     Termination of Certain Covenants.     The obligations of the Company set forth
in Section 2.1 through Section 2.19 shall terminate and be of no further force or effect upon the closing of a bona fide, firmly underwritten public offering of shares of the Company’s Common Stock pursuant to a registration statement
under the Securities Act, at an offering price of at least $1.91 per share (as adjusted for any stock dividends, combinations or splits with respect to such shares) and aggregate gross proceeds to the Corporation (prior to deduction for
underwriters’ discounts and expenses) of at least $25,000,000 (a “Qualified IPO”). 

3.         Miscellaneous. 

3.1.     Notices.     Unless otherwise provided herein, all notices required or permitted
hereunder shall be in writing and shall be deemed effectively given (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if
not, then on the next business day, (iii) five (5) days after deposit in the United States mail, by registered or certified mail, postage prepaid and properly addressed to the party to be notified as set forth on the signature page hereof
or at such other address as such party may designate by ten (10) days’ advance written notice to the other parties hereto, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next-day
delivery, with written verification of receipt. 
 3.2.     Entire
Agreement.     This Agreement (including the Schedules hereto) constitutes the full and entire understanding and agreement between and among the parties with regard to the subjects hereof and thereof. 

3.3.     Successors and Assigns.    Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities). Nothing in this Agreement, express or implied, is
intended to confer upon any party, other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 3.4.     Amendments and Waivers.    Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of a majority of the Registrable
Securities then outstanding. Any amendment or waiver effected in accordance with this Section 3.4 shall be binding upon each holder of any Registrable Securities then outstanding, each future holder of all such Registrable Securities, and the
Company. Notwithstanding the foregoing, Section 3 may be amended and the observance of such provisions may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the
Company and (ii)

  
 21 

 
Sections 2.16, 2.17, 2.18 and 2.19 may be amended and the observance of such provisions may be waived (either generally or in a particular instance and either retroactively or prospectively) only
with the written consent of the Company. Notwithstanding anything to the contrary in this Section 3.4, in the event any amendment to, or waiver of, any term of this Agreement adversely affects the rights or obligations of a subset of the
Investors in a different manner than the other Investors, such amendment or waiver shall require the written consent of a majority of the Investors so affected. 
 3.5.     Severability.     If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 
 3.6.     Titles and Subtitles.     The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement. 
 3.7.     Governing Law.     This Agreement
shall be governed by and construed under the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California. 

3.8.     Expenses.     If any action at law or in equity is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

3.9.     Confidentiality. 
 (a)         The Investors agree that the Company may use their names in connection with an announcement regarding the sale of the Shares, subject to the approval of
any such announcement by the applicable Investor or Investors, which approval shall not be unreasonably withheld or delayed, and to permit the Company to make other reasonable uses of the Investors’ names such as disclosure to be made at
investor or analyst conferences and boilerplate disclosure that the Company may use in connection with press releases and other company announcements. 
 (b)         If the Company believes public disclosure of any Investor’s relationship with the Company is required by law, it shall no less than five
(5) days prior to the filing of such public disclosure (including, without limitation, filing any document or material with the Commission, or any other competent regulatory authority, which contains a reference to the Investor) provide
Investor with notice of and a copy of such disclosure, and revise such disclosure as reasonably requested by Investor within two (2) days following the delivery of such information to Investor, and if available, seek confidential treatment for
such portions of such disclosure as may be reasonably requested by Investor. 
 3.10.     Further
Assurances.     Each of the parties shall execute such documents and perform such further acts, including, without limitation, obtaining any consents, exemptions, authorizations or other actions by, or giving any notices to,
or making any filings 

  
 22 

 
with any governmental authority, as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement and to consummate and make effective as promptly as
possible the transactions contemplated by this Agreement. 
 3.11.     Aggregation of
Stock.     All shares of Registrable Securities held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

3.12.     Other Activities of the Investors.     It is understood and accepted that the
Investors and their respective affiliates have or may hereafter have interests in other business ventures that are or may be competitive with the activities of the Company and that, to the fullest extent permitted by law, nothing in this Agreement
shall limit the current or future business activities of each of the Investors or any of their respective affiliates whether or not such activities are competitive with those of the Company or otherwise. Except as specifically provided by this
Agreement, nothing in this Agreement or as stockholders, lenders to or other security holders of the Company and this Agreement shall not create, or be deemed or interpreted to create, any fiduciary or similar duty of any party owing to any other
party or the Company. 
 3.13.     Additional Investors.    The parties
recognize that additional counterparts of this Agreement may be executed at different times, upon the subsequent sale or other issuance of Series F Preferred Stock to additional parties (each, a “Later Investor”). Each Later
Investor, upon executing a signature page to this Agreement, shall become an Investor hereunder and shall share in all the rights and obligations of the other Investors to this Agreement. All parties hereto agree to remain obligated hereunder upon
the execution of this Agreement or counterpart hereof by additional Investors. All Investors need not reexecute this Agreement. 
 3.14.     Counterparts.     This Agreement may be executed in two or more counterparts, via facsimile or otherwise, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 [The remainder of this page has been
intentionally left blank] 

  
 23 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written. 
  

			
	 COMPANY
  

GCT SEMICONDUCTOR, INC.
 a Delaware
corporation

		
	By:	 	/s/  Kyeongho Lee
	Name:	 	 
	Title:	 	 

  
 [Signature Page to GCT
Semiconductor, Inc. 
 Amended and Restated Investors’ Rights Agreement]

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