Document:

EXHIBIT
10.10

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (“Agreement”), dated _______________, is made by and between OWC PHARMACEUTICAL RESEARCH
CORP., Delaware corporation (“Company”), and KODIAK CAPITAL GROUP, LLC a Delaware limited liability company (the “Investor”).

 

RECITALS

 

WHEREAS,
upon the terms and subject to the conditions of the Equity Purchase Agreement (“Purchase Agreement”), between the
Investor and the Company, the Company has agreed to issue and sell to the Investor shares (the “Put Shares”) of its
common stock, $0.00001 par value per share (the “Common Stock”) from time to time for an aggregate investment price
of up to ________- Dollars ($_____________) (the “EPA Securities”);

 

WHEREAS,
as a condition for the execution of the Purchase Agreement by the Investor, the Company has agreed to issue to the Investor a
convertible note in the principal amount equal to ____________ Dollars $________________ (the “Note “); and

 

WHEREAS,
to induce the Investor to execute and deliver the Purchase Agreement, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws with respect to the EPA Securities, the shares of Common
Stock underlying the Note (the “Note Securities”) and any securities issued or issuable with respect to any of the
foregoing by way of exchange, stock dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise (together with the EPA Securities and the Note Securities, the “Registered
Securities”).

 

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

 

1.
Definitions.

 

(a)
As used in this Agreement, the following terms shall have the following meaning:

 

(i)
“Execution Date” means the date of this Agreement.

 

(ii)
“Investor” has the meaning set forth in the preamble to this Agreement.

 

(iii)
“Register,” “registered” and “registration” refer to a registration effected by preparing
and filing a Registration Statement or Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a delayed or continuous basis (“Rule 415”), and the
declaration or ordering of effectiveness of such Registration Statement by the United States Securities and Exchange Commission
(the “SEC”).

 

(iv)
“Registered Securities” will have the same meaning as set forth in the Purchase Agreement.

 

(v)
“Registration Statement” means the Company’s registration statement on Form S-1, or any similar registration
statement of the Company filed with SEC under the Securities Act with respect to the Registered Securities.

 

(vi)
”EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval System.

 

(vii)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules
and regulations of the SEC thereunder, all as the same will then be in effect.

 

    	 	 	 

    	 	 	 

    

 

(b)
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.

 

2.
Obligation of the Company. In connection with the registration of the Registered Securities, the Company shall do each of the
following:

 

(a)
Prepare promptly and file with the SEC by January 30, 2016, a Registration Statement with respect to not less than the maximum
allowable under Rule 415 of Registered Securities, and thereafter use all commercially reasonable efforts to cause such Registration
Statement relating to the Registered Securities to become effective within five (5) business days after notice from the Securities
and Exchange Commission that such Registration Statement may be declared effective, and keep the Registration Statement effective
at all times prior to the termination of the Purchase Agreement until the earliest of (i) the date that is three months after
the completion of the last Closing Date under the Purchase Agreement, (ii) the date when the Investor may sell all Registered
Securities under Rule 144 without volume limitations, or (iii) the date the Investor no longer owns any of the Registered Securities
(collectively, the “Registration Period”), which Registration Statement (including any amendments or supplements,
thereto and prospectuses contained therein) shall not 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, in the light of the circumstances under which
they were made, not misleading;

 

(b)
Prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement
and the prospectus used in connection with the Registration Statement as may be necessary to keep the Registration Statement effective
at all times during the Registration Period, and to comply with the provisions of the Securities Act with respect to the disposition
of all Registered Securities of the Company covered by the Registration Statement until the expiration of the Registration Period.

 

(c)
With respect to the Registered Securities, upon written request by the Investor, permit counsel designated by Investor to review
the Registration Statement and all amendments and supplements thereto a reasonable period of time (but not less than two (2) business
days) prior to their filing with the SEC, and not file any document in a form to which such counsel reasonably objects.

 

(d)
As promptly as practicable after becoming aware of the following facts, the Company shall notify Investor and Investor’s
legal counsel identified to the Company and (if requested by any such person) confirm such notice in writing no later than one
(1) business day thereafter (i): (A) when a prospectus or any prospectus supplement or post-effective amendment to the Registration
Statement is filed; (B) with respect to the Registration Statement or any post-effective amendment, when the same has become effective;
(ii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement covering any or all
of the Registered Securities or the initiation of any proceedings for that purpose; and (iii) of the receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registered
Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose.

 

(e)
Unless available to the Investor without charge through EDGAR, the SEC’s website or the Company’s website, furnish
to Investor, promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one
(1) copy of the Registration Statement, each preliminary prospectus and the prospectus, and each amendment or supplement thereto;

 

(f)
Use all commercially reasonable efforts to (i) register and/or qualify the Registered Securities covered by the Registration Statement
under such other securities or blue sky laws of such jurisdictions as the Investor may reasonably request and in which significant
volumes of shares of Common Stock are traded, (ii) prepare and file in those jurisdictions such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof
at all times during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations
and qualification in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary
or advisable to qualify the Registered Securities for sale in such jurisdictions: provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (A) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(f), (B) subject itself to general taxation in any such jurisdiction,
(C) file a general consent to service of process in any such jurisdiction, (D) provide any undertakings that cause more than nominal
expense or burden to the Company or (E) make any change in its charter or by-laws or any then existing contracts, which in each
case the Board of Directors of the Company determines to be contrary to the best interests of the Company and its stockholders;

 

    	 	 	 

    	 	 	 

    

 

(g)
As promptly as practicable after becoming aware of such event, notify the Investor of the happening of any event of which the
Company has knowledge, as a result of which the prospectus included in the Registration Statement, as then in effect, includes
any 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, in the light of the circumstances under which they were made, not misleading (“Registration Default”),
and promptly prepare a supplement or amendment to the Registration Statement or other appropriate filing with the SEC to correct
such untrue statement or omission, and take any other commercially reasonable steps to cure the Registration Default, and, unless
available to the Investor without charge through EDGAR, the SEC’s website or the Company’s website, deliver a number
of copies of such supplement or amendment to the Investor as the Investor may reasonably request.

 

(h)
  Use its commercially reasonable efforts to secure quotation for such Registered Securities on the OTCQB, OTCQX or OTC Pink
markets;

 

(i)
Provide a transfer agent for the Registered Securities (the “Transfer Agent”) not later than the Execution Date under
the Purchase Agreement;

 

(j)
Cooperate with the Investor to facilitate the timely preparation and delivery of certificates for the Registered Securities to
be offered pursuant to the Registration Statement and enable such certificates for the Registered Securities to be in such denominations
or amounts as the case may be, as the Investor may reasonably request and registration in such names as the Investor may request;
and, within five (5) business days after a Registration Statement which includes Registered Securities is ordered effective by
the SEC, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the Transfer Agent (with
copies to the Investor) an appropriate instruction and opinion of such counsel, if so required by the Transfer Agent; and

 

(k)
Take all other commercially reasonable actions necessary to expedite and facilitate distribution to the Investor of the Registered
Securities pursuant to the Registration Statement.

 

3.
Obligations of the Investor. In connection with the registration of the Registered Securities, the Investor shall have the following
obligations;

 

(a)
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registered Securities of the Investor that the Investor shall timely furnish to the Company such information regarding
itself, the Registered Securities held by it, and the intended method of disposition of the Registered Securities held by it,
as shall be reasonably required to effect the registration of such Registered Securities and shall timely execute such documents
in connection with such registration as the Company may reasonably request.

 

(b)
The Investor by such Investor’s acceptance of the Registered Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the Registration Statement hereunder; and

 

(c)
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
2(d)(ii) or (iii) or 2(g) above, the Investor will immediately discontinue disposition of Registered Securities pursuant to the
Registration Statement covering such Registered Securities until the Investor receives the copies of the supplemented or amended
prospectus contemplated by Section 2(d)(ii) or (iii) or 2(g) and, if so directed by the Company, the Investor shall deliver to
the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in
the Investor’s possession, of the prospectus covering such Registered Securities current at the time of receipt of such
notice.

 

    	 	 	 

    	 	 	 

    

 

4.
Expenses of Registration. All reasonable expenses incurred in connection with registrations, filings or qualifications pursuant
to Section 2, including, without limitation, all registration, listing, and qualifications fees, printers and accounting
fees, the fees and disbursements of counsel for the Company shall be borne by the Company.

 

5.
Indemnification. After Registered Securities are included in a Registration Statement under this Agreement:

 

(a)
To the extent permitted by law, the Company will indemnify and hold harmless, the Investor, the directors, if any, of such Investor,
the officers, if any, of such Investor, each person, if any, who controls the Investor within the meaning of the Securities Act
or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities or expenses
(joint or several) incurred (collectively, “Claims”) to which any of them may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or any post-effective amendment thereof or 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, (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus or contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made therein, in the light of the circumstances under which
the statements therein were made, 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 under the Securities Act, the Exchange Act or any state
securities law (the matters in the foregoing clauses (i) through (iii) being collectively referred to as “Violations”).
Subject to Section 5(b) hereof, the Company shall reimburse the Investor, promptly as such expenses are incurred and are due and
payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending
any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section
5(a) shall not (i) apply to any Claims arising out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of any Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was
timely made available by the Company pursuant to Section 2(b) hereof; (ii) with respect to any preliminary prospectus, inure to
the benefit of any such person from whom the person asserting any such Claim purchased the Registered Securities that are the
subject thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if such prospectus was
timely made available by the Company pursuant to Section 2(b) hereof; (iii) be available to the extent such Claim is based on
a failure of the Investor to deliver or cause to be delivered the prospectus made available by the Company; or (iv) apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent
shall not be unreasonably withheld. The Investor will indemnify the Company, its officers, directors and agents (including legal
counsel) against any claims arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company, by or on behalf of the Investor, expressly for use in connection with the preparation of
the Registration Statement, subject to such limitations and conditions set forth in the previous sentence.

 

(b)
Promptly after receipt by an Indemnified Person under this Section 5 of notice of the commencement of any action (including any
governmental action), such Indemnified Person shall, if a Claim in respect thereof is to be made against any indemnifying party
under this Section 5, 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 the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person, as the case may be; provided, however, that an Indemnified Person shall have the right
to retain its own counsel with the reasonable fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion
of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party
represented by such counsel in such proceeding. In such event, the Company shall pay for only one separate legal counsel for the
Investor selected by the Investor. The failure to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person under
this Section 5, except to the extent that the indemnifying party is prejudiced in its ability to defend such action. The indemnification
required by this Section 5 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

    	 	 	 

    	 	 	 

    

 

6.
Contribution. To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party
agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 5 to
the fullest extent permitted by law; provided, however, that (a) no contribution shall be made under circumstances
where the maker would not have been liable for indemnification under the fault standards set forth in Section 5 and; (b) no seller
of Registered Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any seller of Registered Securities who was not guilty of such fraudulent misrepresentation.

 

7.
Reports under Exchange Act. With a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities
Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company
to the public without registration (“Rule 144”), the Company agrees to use its commercially reasonable efforts to:

 

(a)
make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act for so long
as the Company remains subject to such requirements, and the filing of such reports is required for sales under Rule 144;

 

(c)
furnish to the Investor so long as the Investor owns Registered Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) unless
available to the Investor without charge through EDGAR, the SEC’s website or the Company’s website, 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 to permit the Investors to sell such securities pursuant to Rule 144 without
registration; and

 

(d)
at the request of any Investor of Registered Securities, give its Transfer Agent instructions (supported by an opinion of Company
counsel, if required or requested by the Transfer Agent) to the effect that, upon the Transfer Agent’s receipt from such
Investor of:

 

(i)
a certificate (a “Rule 144 Certificate”) certifying (A) that such Investor has held the shares of Registered Securities
which the Investor proposes to sell (the “Securities Being Sold”) for a period of not less than (6) months and (B)
as to such other matters as may be appropriate in accordance with Rule 144 under the Securities Act, and

 

(ii)
an opinion of counsel acceptable to the Company (for which purposes it is agreed that the initial Investor’s counsel shall
be deemed acceptable if such opinion is not given by Company counsel) that, based on the Rule 144 Certificate, Securities Being
Sold may be sold pursuant to the provisions of Rule 144, even in the absence of an effective Registration Statement, the Transfer
Agent is to effect the transfer of the Securities Being Sold and issue to the buyer(s) or transferee(s) thereof one or more stock
certificates representing the transferred Securities Being Sold without any restrictive legend and without recording any restrictions
on the transferability of such shares on the Transfer Agent’s books and records (except to the extent any such legend or
restriction results from facts other than the identity of the Investor, as the seller or transferor thereof, or the status, including
any relevant legends or restrictions, of the shares of the Securities Being Sold while held by the Investor). If the Transfer
Agent requires any additional documentation at the time of the transfer, the Company shall deliver or cause to be delivered all
such reasonable additional documentation as may be necessary to effectuate the issuance of an unlegended certificate.

 

    	 	 	 

    	 	 	 

    

 

8.
Miscellaneous.

 

(a)
Registered Owners. A person or entity is deemed to be a holder of Registered Securities whenever such person or entity owns of
record such Registered Securities. If the Company receives conflicting instructions, notices or elections from two or more persons
or entities with respect to the same Registered Securities, the Company shall act upon the basis of instructions, notice or election
received from the registered owner of such Registered Securities.

 

(b)
Rights Cumulative; Waivers. The rights of each of the parties under this Agreement are cumulative. The rights of each of the parties
hereunder shall not be capable of being waived or varied other than by an express waiver or variation in writing. Any failure
to exercise or any delay in exercising any of such rights shall not operate as a waiver or variation of that or any other such
right. Any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any
other such right. No act or course of conduct or negotiation on the part of any party shall in any way preclude such party from
exercising any such right or constitute a suspension or any variation of any such right.

 

(c)
Benefit; Successors Bound. This Agreement and the terms, covenants, conditions, provisions, obligations, undertakings, rights,
and benefits hereof, shall be binding upon, and shall inure to the benefit of, the undersigned parties and their successors.

 

(d)
Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof.
There are no promises, agreements, conditions, undertakings, understandings, warranties, covenants or representations, oral or
written, express or implied, between them with respect to this Agreement or the matters described in this Agreement, except as
set forth in this Agreement and in the other documentation relating to the transactions contemplated by this Agreement. Any such
negotiations, promises, or understandings shall not be used to interpret or constitute this Agreement.

 

(e)
Amendment. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company and Investor. Any amendment
or waiver affected in accordance with this Section 9 shall be binding upon the Company.

 

(f)
Severability. Each part of this Agreement is intended to be severable. In the event that any provision of this Agreement is found
by any court or other authority of competent jurisdiction to be illegal or unenforceable, such provision shall be severed or modified
to the extent necessary to render it enforceable and as so severed or modified, this Agreement shall continue in full force and
effect.

 

(g)
Notices. Any and all notices or other communications or deliveries to be provided by the Investor hereunder shall be in writing
and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed
to the Company, at the address set forth below, or such other facsimile number, email address, or address as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section 8(g). Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment,
or sent by a nationally recognized overnight courier service addressed to the Investor at the facsimile number or email address
or address of the Investor set forth below. Any notice or other communication or deliveries hereunder shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number or email attachment to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York
City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto
on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by
the party to whom such notice is required to be given. The addresses for such communications shall be:

 

    	 	 	 

    	 	 	 

    

 

If
to the Company:

 

OWC
Pharmaceutical Research Corp.

22
Shaham Steet

P.O.
Box 8324

Petach
Tikva, Israel 4918103

Attn:
Mordechai Bignitz, Chief Executive Officer

Email:
mordechai.bignitz@owcpharma.com

 

with
a copy to:

 

Sichenzia
Ross Friedman Ference LLP

61
Broadway, 32nd Floor

New
York, NY 10006

Attn:
Marc Ross, Esq.

Fax:
(212) 930-9725

 

If
to the Investor:

Kodiak
Capital Group, LLC

260
Newport Center Drive

Newport
Beach, CA 92660

Attn:
Ryan Hodson, Managing Member

Email:
ryan@kodiakfunds.com

 

Either
party hereto may from time to time change its address or email for notices under this Section 8(g) by giving at least ten (10)
days’ prior written notice of such changed address to the other party hereto.

 

(h)
Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Company and
the Investor shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving
effect to principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the
United States Federal and state courts located in New York, New York with respect to the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein.

 

(i)
Consents. The person signing this Agreement on behalf of each party hereby represents and warrants that he has the necessary power,
consent and authority to execute and deliver this Agreement on behalf of that party.

 

(j)
Further Assurances. In addition to the instruments and documents to be made, executed and delivered pursuant to this Agreement,
the parties hereto agree to make, execute and deliver or cause to be made, executed and delivered, to the requesting party such
other instruments and to take such other actions as the requesting party may reasonably require to carry out the terms of this
Agreement and the transactions contemplated hereby.

 

(k)
Section Headings. The Section headings in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

(l)
Construction. Unless the context otherwise requires, when used herein, the singular shall be deemed to include the plural, the
plural shall be deemed to include each of the singular, and pronouns of one or no gender shall be deemed to include the equivalent
pronoun of the other or no gender.

 

(m)
Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by email of a .pdf or telephone line facsimile transmission of a copy of this Agreement bearing the signature
of the party so delivering this Agreement. A facsimile transmission or email of a .pdf of this signed Agreement shall be legal
and binding on all parties hereto.

 

    	 	 	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereunto duly authorized
as of the day and year first above written.

 

COMPANY:

   

OWC PHARMACEUTICAL RESEARCH CORP.  

 

	By:
    	 	 
	Name:	 	 
	Title:	 	 

 

INVESTOR:

 

KODIAK CAPITAL GROUP, LLC  

 

	By:	 	 
	Name:	 	 
	Title:EXHIBIT
10.11

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER OR THE COMPANY THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

ISSUE
DATE: ________

PRINCIPAL
AMOUNT: $___________

 

OWC
PHARMACEUTICAL RESEARCH CORP.

 

FORM
OF CONVERTIBLE PROMISSORY NOTE DUE JUNE 16, 2016

 

FOR
VALUE RECEIVED, OWC PHARMACEUTICAL RESEARCH CORP., a Delaware corporation (the “Company”) promises to pay to KODIAK
CAPITAL GROUP, LLC or its registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the
principal sum of $_____________ on June 16, 2016 (the “Maturity Date”) or such earlier date as this Note is required
or permitted to be repaid as provided hereunder. This Note is issued in connection with that certain Equity Purchase Agreement
(the “Purchase Agreement”) entered into by and between the Company and the Holder on the Execution Date (as defined
in the Purchase Agreement). Certain capitalized terms used herein are defined in Section 12.

 

This
Note is subject to the following additional provisions:

 

1. The
Note is exchangeable for an equal aggregate principal amount of Note of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange.

 

2. The
Holder of this Note is entitled, subject to the following provisions, to convert all or a portion of the principal amount of this
Note into shares (the “Shares”) of the Company’s common stock, par value $0.00001 per share (the “Common
Stock”) at a conversion price for each share of Common Stock equal to the Current Market Price multiplied by fifty percent
(50%) (the “Conversion Price”); provided however, that the Note may not be converted until the earlier of (i) six
months from the Issue Date or (ii) the effective registration of the Shares for resale on a registration statement on Form S-1
or S-3, as applicable. “Current Market Price” means the lowest daily volume weighted average price for the Common
Stock as reported by Bloomberg, LP for the thirty (30) trading days ending on the trading day immediately before the relevant
Conversion Date (as defined below). The amount of Shares issuable pursuant to a conversion shall equal the principal amount (or
portion thereof) of the Note to be converted, divided by the Conversion Price.

 

Conversion
shall be effectuated by surrendering the Note to the Company, accompanied by or preceded by email or other delivery to the Company
of a conversion notice substantially in the form attached hereto as Exhibit A (the “Conversion Notice”), executed
by the Holder evidencing such Holder’s intention to convert a specified portion hereof on such date set forth in the Conversion
Notice (the “Conversion Date”). No fractional shares of Common Stock or scrip representing fractions of shares will
be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. Certificates representing
Common Stock upon conversion will be delivered within three (3) Business Days from the Conversion Date (“Delivery Date”).

 

    	 	 	 

    	 	 	 

    

 

The
Company shall pay any payments incurred under this Section in immediately available funds upon demand as the Holder’s remedy
for such delay. Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company
fails for any reason to effect delivery of the Shares by close of business on the Delivery Date, unless such failure is due to
causes beyond the Company’s reasonable control or that of its transfer agent, the Holder will be entitled to revoke the
relevant Notice of Conversion by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to delivery of such Notice of Conversion; provided, however,
that an amount equal to any payments contemplated by this Section which have accrued through the date of such revocation notice
shall remain due and owing to the Converting Holder notwithstanding such revocation.

 

If,
by the relevant Delivery Date (A) there is an effective registration statement registering for resale the Shares by the Holder
or (B) the Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 promulgated
under the Securities Act of 1933, as amended, and, in either case, the Company fails, unless such failure is due to causes beyond
the Company’s reasonable control or that of its transfer agent, for any reason to deliver the Shares and after such Delivery
Date, the Holder of the Note being converted (a “Converting Holder”) purchases, in an arm’s-length open market
transaction or otherwise, shares of Common Stock (the “Covering Shares”) in order to make delivery in satisfaction
of a sale of Common Stock by the Converting Holder (the “Sold Shares”), which delivery such Converting Holder anticipated
to make using the Shares to be issued upon such conversion (a “Buy-In”), the Converting Holder shall have the right,
to require the Company to pay to the Converting Holder, in addition to and not in lieu of the amounts due hereunder (but in addition
to all other amounts contemplated in other provisions of the Transaction Agreements, and not in lieu of any such other amounts),
the Buy-In Adjustment Amount (as defined below). The “Buy-In Adjustment Amount” is the amount equal to the excess,
if any, of (x) the Converting Holder’s total purchase price (including brokerage commissions, if any) for the Covering Shares
over (y) the net proceeds (after brokerage commissions, if any) received by the Converting Holder from the sale of the Sold Shares.
The Company shall pay the Buy-In Adjustment Amount to the Company in immediately available funds immediately upon demand by the
Converting Holder. By way of illustration and not in limitation of the foregoing, if the Converting Holder purchases shares of
Common Stock having a total purchase price (including brokerage commissions) of $11,000 to cover a Buy-In with respect to shares
of Common Stock it sold for net proceeds of $10,000, the Buy-In Adjustment Amount which Company will be required to pay to the
Converting Holder will be $1,000.

 

In
lieu of delivering physical certificates representing the Shares issuable upon conversion, if (A) there is an effective registration
statement registering for resale the Shares by the Holder or (B) the Shares are eligible for resale by the Holder without volume
or manner-of-sale limitations pursuant to Rule 144 and, in either case, provided the Company’s transfer agent is participating
in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, upon request of the Holder and
its compliance with the provisions contained in this paragraph, so long as the certificates therefore do not bear a legend and
the Holder thereof is not obligated to return such certificate for the placement of a legend thereon, the Company shall use its
best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by
crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

 

    	 	 	 

    	 	 	 

    

 

The
Holder of the Note shall be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement
of any case under 11 U.S.C. §101 et seq. (the “Bankruptcy Code”). In the event the Company is a debtor under
the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C.
§362 in respect of such holder’s conversion privilege. The Company hereby waives, to the fullest extent permitted,
any rights to relief it may have under 11 U.S.C. §362 in respect of the conversion of the Note. This Note has been issued
subject to investment representations of the original purchaser hereof and may be transferred or exchanged only in compliance
with the Securities Act of 1933, as amended (the “Act”), and other applicable state and foreign securities laws. In
the event of any proposed transfer of this Note, the Company may require, prior to issuance of a new Note in the name of such
other Person, that it receive reasonable transfer documentation including legal opinions that the issuance of the Note in such
other name does not and will not cause a violation of the Act or any applicable state or foreign securities laws. Prior to due
presentment for transfer of this Note, the Company and any agent of the Company may treat the Person in whose name this Note is
duly registered on the Company’s Note Register as the owner hereof for the purpose of receiving payment as herein provided
and for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected
by notice to the contrary.

 

4. No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct obligation of
the Company.

 

5.
The Holder of the Note, by acceptance hereof, agrees that this Note is being acquired for investment and that such Holder will
not offer, sell or otherwise dispose of this Note or the shares of Common Stock issuable upon conversion thereof except under
circumstances which will not result in a violation of the Act or any applicable state Blue Sky or foreign laws or similar laws
relating to the sale of securities.

 

6. This
Note and all acts and transactions pursuant hereto and the rights and obligations of the Company and the Holder shall be governed,
construed and interpreted in accordance with the laws of the State of New York, without giving effect to principles of conflicts
of law. Each of the Company and Holder hereby submit to the exclusive jurisdiction of the United States Federal and state courts
located in New York, New York with respect to the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein. Each of the parties hereby waives the right to a trial by jury in connection
with any dispute arising under this Note.

 

7. The
Company may prepay this Note in whole or in part at any time following at least fifteen (15) and no more than sixty (60) days’
advance written notice to the Holder, provided that the Holder shall retain all rights of conversion until the date of repayment,
notwithstanding the pendency of any prepayment notice.

 

    	 	 	 

    	 	 	 

    

 

8. The
following shall constitute an “Event of Default”:

 

(a) The
Company shall default in the payment of principal on this Note and same shall continue for a period of five (5) days provided,
however, that an Event of Default shall not occur on account of a failure to pay due solely to an administrative or operational
error of any depositary institution that is crediting by ACH or wiring such payment if Company had the funds to make the payment
when due and makes the payment within two (2) Business Days following Company’s knowledge of such failure to pay; or

 

(b) Any
of the representations or warranties made by the Company herein, in any certificate or financial or other written statements heretofore
or hereafter furnished by the Company in connection with the execution and delivery of this Note shall be false or misleading
in any material respect at the time made; or

 

(c) The
Company shall fail to perform or observe, in any material respect, any other covenant, term, provision, condition, agreement or
obligation of any Note and such failure shall continue uncured for a period of fifteen (15) days after written notice from the
Holder of such failure; or

 

(d) The
Company fails to authorize or to cause its transfer agent to issue the Shares upon exercise by the Holder through a Notice of
Conversion in accordance with the terms of this Note, fails to transfer or to cause its transfer agent to transfer any certificate
for Shares issued to the Holder upon conversion of this Note and when required by this Note, and such transfer is otherwise lawful,
or fails to remove any restrictive legend on any certificate or fails to cause its transfer agent to remove such restricted legend,
in each case where such removal is lawful, as and when required by this Note, and any such failure shall continue uncured for
five (5) Business Days; or

 

(e) The
Company shall (1) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (2) apply for
or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business;
or

 

(f) A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f) Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of the Company and shall not be dismissed within sixty
(60) days thereafter; or

 

(g) Any
money judgment, writ or warrant of attachment, or similar process in excess of One Hundred Thousand ($300,000) Dollars in the
aggregate shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated,
unbonded or unstayed for a period of thirty (30) days or in any event later than five (5) days prior to the date of any proposed
sale thereunder; or

 

(h) Bankruptcy,
reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for
the relief of debtors shall be instituted by or against the Company and, if instituted against the Company, shall not be dismissed
within sixty (60) days after such institution or the Company shall by any action or answer approve of, consent to, or acquiesce
in any such proceedings or admit the material allegations of, or default in answering a petition filed in any such proceeding;
or

 

(i) Shares
of Common Stock shall cease to be quoted on the OTCQB for any reason and are not thereafter re-listed, re-traded or re-quoted
on another Principal Market within fifteen (15) trading days.

 

    	 	 	 

    	 	 	 

    

 

j. The
Company fails to file a registration statement with the Securities and Exchange Commission for the underlying common stock of
the Note by January 31, 2016.

 

Then,
or at any time thereafter, and in each and every such case, unless such Event of Default shall have been waived in writing by
the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the
Holder’s sole discretion, the Holder may consider all obligations under this Note immediately due and payable within five
(5) days of notice, without presentment, demand, protest or notice of any kinds, all of which are hereby expressly waived, anything
herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately enforce any
and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, the Conversion Price will become the Current Market Price multiplied by twenty five percent (25%) (“Default
Conversion Price”).

 

9. The
Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note,
pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the
applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group
together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned
by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with
respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of its Affiliates
and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including,
without limitation, securities convertible into Common Stock) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence,
for purposes of this Section 9, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 9
applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Note is convertible shall be in the sole discretion of the Holder, and the submission
of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note is convertible (in relation
to other securities owned by the Holder together with any Affiliates) and of which portion of this Note is convertible, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy
of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 9, in
determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common
Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the SEC, as the case may be, (B)
a more recent public announcement by the Company or (C) a more recent written notice by the Company or Company’s transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company
shall within two trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of this Note. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 9 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

 

    	 	 	 

    	 	 	 

    

 

10. Nothing
contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent
or receive notice as a shareholder in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the
Company, unless and to the extent converted in accordance with the terms hereof.

 

11.
The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns
of the Company and the Holder.

 

12.
Certain Definitions. For purposes of this Note, the following terms shall have the following meanings:

 

(a) “Affiliate”
shall mean as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the
terms “controlling”, “controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities or by contract or otherwise. For purposes of this definition,
a Person shall be deemed to be “controlled by” a Person if such latter Person possesses, directly or indirectly, power
to vote 10% or more of the securities having ordinary voting power for the election of directors of such former Person.

 

(b)
“Bloomberg” means Bloomberg Financial Markets.

 

(c)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New
York are authorized or required by law to remain closed.

 

(c)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(d)
“Principal Market” means OTCQB or the principal securities exchange or securities market on which the Common Stock
is then quoted or traded.

 

[signature
page follows immediately]

 

    	 	 	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.

 

Dated:
________________

 

OWC PHARMACEUTICAL RESEARCH CORP.  

 

	By:	 	 
	Name:	 	 
	Title:

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