Document:

EXHIBIT 10.2

  

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”)
is executed as of January 16, 2015 by and between Tauriga Sciences, Inc., a Florida
corporation (the “Company”), and Typenex Co-Investment, LLC,
a Utah limited liability company (“Purchaser”).

 

BACKGROUND

 

A.
On the date hereof, the Company, its transfer agent, ClearTrust, LLC, a Florida limited liability company (“ClearTrust”)
and Purchaser entered into a Settlement Agreement (the “Settlement Agreement”), relating to disputes between
the parties arising from a transaction between them completed on June 24, 2013.

 

B.
As part of and subject to the Settlement Agreement, Purchaser agreed to purchase from the Company an aggregate of Three Hundred
Thousand and 00/100 U.S. Dollars ($300,000.00) of shares of the Company’s common stock, par value $0.00001 (“Common
Stock”), in accordance with the terms of Section 2 of the Settlement Agreement and this Agreement.

  

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations,
warranties and covenants herein contained, the parties hereto agree as follows:

 

1.
Issuance of Shares and Purchase Price.

 

1.1.
Purchase. Subject to the terms and conditions of this Agreement and the Settlement Agreement, Purchaser agrees to purchase
from the Company an aggregate of Three Hundred Thousand and 00/100 U.S. Dollars ($300,000.00) of shares of Common Stock (the “Shares”)
in three tranches (each a “Tranche,” and collectively, the “Tranches”) of $100,000 each.
The price per share of Common Stock, calculated separately for each Tranche, shall be 150% of the five day average closing sale
price of the Company’s Common Stock for the five Trading Days (as defined below) immediately preceding the Closing Date
(as defined below) for the applicable Tranche.

 

1.2.
Closing Dates. The closing of the purchase and sale of the Shares hereunder shall occur in three separate closings corresponding
to the three Tranches, with the first such closing occurring no later than the First Tranche Closing Deadline (as defined in the
Settlement Agreement), the second such closing occurring no later than the Second Tranche Closing Deadline (as defined in the
Settlement Agreement), and the third and final such closing occurring no later than the Third Tranche Closing Deadline (as defined
in the Settlement Agreement) (each a “Closing”). Each Closing shall automatically occur hereunder once Purchaser
has delivered the required $100,000 payment to the Company pursuant to Section 1.4, together with a completed and duly executed
Notice of Purchase substantially in the form attached hereto as Exhibit A (the “Notice of Purchase”),
which Notice of Purchase may be faxed or emailed to the Company by Purchaser. The date on which each Closing occurs shall each
be referred to herein as a “Closing Date,” and collectively as the “Closing Dates.”

 

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1.3.
Delivery at Each Closing. No later than three (3) Trading Days after each Closing Date, the Company will, subject to payment
of the consideration set forth below, and provided that the Common Stock is then DTC Eligible (as defined below), deliver, or
cause its then-current transfer agent to deliver, to Purchaser or its broker (if designated by Purchaser), via reputable overnight
courier, a stock certificate, registered in the name of Purchaser or its designee, representing DTC Eligible Common Stock equal
to the applicable number of Shares required to be delivered hereunder in connection with such Closing. If the Common Stock is
not DTC Eligible at such time, such shall constitute a breach of this Agreement, and the Company shall instead, on or before the
applicable delivery deadline, issue and deliver to Purchaser or its broker (if designated by Purchaser), via reputable overnight
courier, a stock certificate, registered in the name of Purchaser or its designee, representing the applicable number of Shares
required to be delivered hereunder in connection with such Closing. For the avoidance of doubt, the Company has not met its obligation
to deliver the Shares required to be delivered hereunder within the required timeframe unless Purchaser or its broker, as applicable,
has actually received the certificate representing the applicable Shares no later than the close of business on the latest possible
delivery date pursuant to the terms set forth above. All the Shares shall be “restricted securities” as defined in
Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”). If the Company fails to deliver
Shares with respect to a Notice of Purchase as required under this Agreement, Purchaser may send the applicable Notice of Purchase
directly to the Company’s transfer agent for processing pursuant to the terms of the Transfer Agent Letter (as defined in
the Settlement Agreement). For purposes of this Agreement: (a) “DTC” means the Depository Trust Company; (b)
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Purchaser’s brokerage firm for the benefit of Purchaser; and (c) “Trading Day” means any day
during which the principal trading market for the Company’s securities in the United States shall be open for business.

 

1.4.
Purchase Price. As consideration for the purchase of the Shares with respect to each Tranche, Purchaser shall pay to the
Company on each Closing Date, the amount of One Hundred Thousand and 00/100 U.S. Dollars ($100,000.00), to be paid by wire transfer
pursuant to the instructions provided by the Company to the Purchaser.

 

2.
Representations, Warranties and Covenants of Purchaser. As of each Closing Date, Purchaser represents, warrants, and covenants
to the Company that:

 

2.1.
Investment Purpose. Purchaser is acquiring the Shares for its own account for investment only and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under
the Securities Act; provided, however, that by making the representations herein, Purchaser reserves the right to dispose
of the Shares at any time in accordance with or pursuant to an effective registration statement covering such Shares or an available
exemption under the Securities Act.

 

2.2.
Accredited Investor Status. Purchaser is an “accredited investor” as that term is defined in Rule 501(a)(3)
of Regulation D of the Securities Act.

 

2.3.
Transfer or Resale. Purchaser understands that: (i) the Shares shall be “restricted securities” as defined
in Rule 144 of the Securities Act and have not been and are not being registered under the Securities Act or any state securities
laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, or (B) Purchaser
shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Shares to be
sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements;
(ii) any sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further,
if Rule 144 is not applicable, any resale of the Shares under circumstances in which the seller (or the person through whom the
sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the United States Securities and Exchange Commission
(the “SEC”) thereunder; and (iii) neither the Company nor any other person is under any obligation to register
the Shares under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

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2.4.
Authorization, Enforcement. This Agreement and all other Settlement Documents (as defined in the Settlement Agreement)
to which Purchaser is a party have been duly and validly authorized, executed and delivered on behalf of Purchaser and are valid
and binding agreements of Purchaser enforceable in accordance with their terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

2.5.
Brokers. There are no brokerage commissions, finder’s fees or similar fees or commissions payable by Purchaser in
connection with the transactions contemplated hereby or under any other Settlement Document based on any agreement, arrangement
or understanding with Purchaser or any action taken by Purchaser.

 

3.
Representations, warranties, and Covenants of the Company. As of each Closing Date, the Company hereby makes the representations
set forth below and covenants and agrees as follows to Purchaser (in addition to those set forth elsewhere herein):

 

3.1.
Organization and Qualification. The Company has been duly organized, validly exists and is in good standing under the laws
of the State of Florida. The Company has full corporate power and authority to enter into this Agreement and all other Settlement
Documents and this Agreement together with all other Settlement Documents have been duly and validly authorized, executed and
delivered by the Company and are valid and binding obligations of the Company, enforceable against the Company in accordance with
their terms, except as such enforcement may be limited by the United States Bankruptcy Code and laws affecting creditors’
rights, generally.

 

3.2.
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement and all other Settlement Documents and to issue the Shares in accordance
with the terms hereof, (ii) the execution and delivery of this Agreement and all other Settlement Documents by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance
of the Shares, have been duly authorized by the Company’s Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors or its stockholders, (iii) this Agreement and all other Settlement Documents have
been duly executed and delivered by the Company, (iv) this Agreement and all other Settlement Documents constitute the valid and
binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies, and (v) the Company’s
signatory has full corporate or other requisite authority to execute this Agreement and all other Settlement Documents and to
bind the Company.

 

3.3.
Issuance of Shares. The issuance of the Shares is duly authorized and the Shares are free and clear of all taxes, liens,
claims, pledges, mortgages, restrictions, obligations, security interests and encumbrances of any kind, nature and description
other than liens in favor of Purchaser.

 

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3.4.
No Conflicts. The execution and delivery by the Company of, and the performance by the Company of its obligations under
this Agreement and all other Settlement Documents in accordance with the terms hereof and thereof will not contravene any provision
of applicable law or the charter documents of the Company or any agreement or other instrument binding upon the Company, or any
judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company, and no consent, approval,
authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company
of its obligations under this Agreement and all other Settlement Documents in accordance with the terms hereof and thereof.

 

3.5.
SEC Documents; Financial Statements. None of the Company’s filings (“SEC Documents”) filed with
the SEC contained, at the time they were filed, any untrue statement of a material fact or omitted to state any material fact
required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they
were made, not misleading. Since January 1, 2014, the Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Document
prior to the expiration of any such extension. As of their respective dates, the financial statements of the Company included
in the Company’s SEC Documents complied as to form in all material respects with applicable accounting requirements and
the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance
with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent
they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). No other information provided by or on behalf of the
Company to Purchaser which is not included in the Company’s SEC Documents, including, without limitation, information referred
to in this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary in order
to make the statements therein, in the light of the circumstance under which they are or were made, not misleading.

 

3.6.
Brokers. The Company has taken no action which would give rise to any claim by any person for a brokerage commission, placement
agent or finder’s fees or similar payments by Purchaser relating to this Agreement or any other Settlement Document, or
the transactions contemplated hereby or thereby. The Company shall indemnify and hold harmless each of Purchaser, its employees,
officers, directors, stockholders, managers, agents, attorneys, and partners, and their respective affiliates, from and against
all claims, losses, damages, costs (including the costs of preparation and attorneys’ fees) and expenses suffered in respect
of any such claimed or existing fees.

 

3.7.
Shares Exempt. Subject to the performance by Purchaser of its obligations under this Agreement and the accuracy of the
representations and warranties of Purchaser, the issuance of the Shares will be exempt from the registration requirements of the
Securities Act.

 

3.8.
Absence of Litigation. Except for the litigation and disputes being dismissed and settled pursuant to the Settlement Agreement,
there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory
organization or body pending against or affecting the Company, the Common Stock or any of the Company’s subsidiaries, wherein
an unfavorable decision, ruling or finding would have a material adverse effect on the Company or its operations.

 

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3.9.
Recitals. All of the information, facts and representations set forth in the Recitals section of this Agreement are in
all respects true and accurate as of the date hereof and are incorporated as representations and warranties of the Company as
if set forth in this Section 3.

 

3.10.
Reporting Status. With a view to making available to Purchaser or its assignees the benefits of Rule 144 or any similar
rule or regulation of the SEC that may at any time permit Purchaser or its assignees to sell securities of the Company to the
public without registration, and as a material inducement to Purchaser’s purchase of the Shares, the Company represents,
warrants and covenants to the following:

 

(a)
The Company’s Common Stock is registered under Section 12(g) of the Exchange Act.

 

(b)
The Company is not and has never been a “shell company,” as defined in paragraph (i)(1)(i) of Rule 144 or Rule 12(b)(2)
of the Exchange Act.

 

(c)
Until all of the Shares have been sold by Purchaser, the Company shall take all reasonable action under its control to ensure
that adequate current public information with respect to the Company, as required in accordance with Rule 144(c)(2) of the Securities
Act, is publicly available.

 

(d)
The Company shall furnish to Purchaser, so long as Purchaser owns Shares, promptly upon request, a written statement by the Company
that it has complied with the reporting requirements of Rule 144.

 

3.11.
So long as Purchaser owns Shares, the Company shall not terminate its status as an issuer required to file reports under the Exchange
Act even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination.

 

3.12.
Listings or Quotation. For so long as Purchaser owns Shares, the Company’s Common Stock shall be listed or quoted
for trading on any of (i) NYSE Amex, (ii) the New York Stock Exchange, (iii) the Nasdaq Global Market, (iv) the Nasdaq Capital
Market, or (v) the OTCQX or OTCQB Bulletin Board. The Company shall promptly secure the listing of all of the Shares upon each
national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or eligible for
quotation (subject to official notice of issuance) and shall maintain such listing of all securities from time to time issuable
under the terms of this Agreement. The Company will comply in all material respects with the Company’s reporting, filing
and other obligations under the bylaws or rules of the principal trading market and/or the Financial Industry Regulatory Authority,
Inc. or any successor thereto, as the case may be, applicable to it at least through the date which is sixty (60) days after the
date on which Purchaser has sold all Shares.

 

4.
Miscellaneous.

 

4.1.
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Illinois
for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict
of laws. Each party consents to and expressly agrees that exclusive venue for Arbitration (as defined in Exhibit F attached to
the Settlement Agreement) of any dispute arising out of or relating to this Agreement or the relationship of the parties or their
affiliates shall be in Cook County, Illinois. Without modifying the parties’ obligations to resolve disputes hereunder pursuant
to the Arbitration Provisions (as defined below), for any litigation arising in connection with this Agreement, each party hereto
hereby (a) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court sitting in Cook
County, Illinois, (b) expressly submits to the exclusive venue of any such court for the purposes hereof, and (c) waives any claim
of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection to the
bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding is improper.

 

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4.2.
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit F attached to the Settlement Agreement)
arising under this Agreement or any other Settlement Document or other agreements between the parties and their affiliates to
binding arbitration pursuant to the arbitration provisions set forth in Exhibit F attached to the Settlement Agreement (the “Arbitration
Provisions”), all of which are incorporated herein and made a part hereof. The parties hereby acknowledge and agree
that the Arbitration Provisions are unconditionally binding on the parties hereto and are severable from all other provisions
of this Agreement. Any capitalized term not defined in the Arbitration Provisions shall have the meaning set forth in the Settlement
Agreement. By executing this Agreement, the Company represents, warrants and covenants that it has reviewed the Arbitration Provisions
carefully, consulted with legal counsel about such provisions (or waived its right to do so), understands that the Arbitration
Provisions are intended to allow for the expeditious and efficient resolution of any dispute hereunder, agrees to the terms and
limitations set forth in the Arbitration Provisions, and that the Company will not take a position contrary to the foregoing representations.
The Company acknowledges and agrees that Purchaser may rely upon the foregoing representations and covenants of the Company regarding
the Arbitration Provisions.

 

4.3.
Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of the parties hereto. Except as otherwise expressly provided herein, no person other than the
parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement.

 

4.4.
Pronouns. All pronouns and any variations thereof in this Agreement refer to the masculine, feminine or neuter, singular
or plural, as the context may permit or require.

 

4.5.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another party’s
executed counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed original thereof.

 

4.6.
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

4.7.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability
of this Agreement in any other jurisdiction.

 

4.8.
Entire Agreement. This Agreement, all other Settlement Documents and the Warrant (as defined in the Settlement Agreement)
(including any exhibits, schedules or attachments thereto) (collectively, the “Agreements”), constitute and
contain the entire agreement between the parties hereto, and supersede all prior oral or written agreements and understandings
between Purchaser, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein
and therein, and the Agreements and the instruments referenced therein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor Purchaser
makes any representation, warranty, covenant or undertaking with respect to such matters.

 

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4.9.
Amendment. Any amendment, supplement or modification of or to any provision of this Agreement, shall be effective only
if it is made or given by an instrument in writing (excluding any email message) and signed by the Company and Purchaser.

 

4.10.
No Waiver. No forbearance, failure or delay on the part of a party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. Any waiver of any provision of this Agreement
shall be effective (i) only if it is made or given in writing (including an email message) and (ii) only in the specific instance
and for the specific purpose for which made or given.

 

4.11.
Currency. All dollar amounts referred to or contemplated by this Agreement or any of the other Settlement Documents shall
be deemed to refer to US Dollars, unless otherwise explicitly stated to the contrary.

 

4.12.
Assignment. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder
may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of
Purchaser, which consent may be withheld at the sole discretion of Purchaser; provided, however, that in the case of a
merger, sale of substantially all of the Company’s assets or other corporate reorganization of the Company, Purchaser shall
not unreasonably withhold, condition or delay such consent. This Agreement or any of the severable rights and obligations inuring
to the benefit of or to be performed by Purchaser hereunder may be assigned by Purchaser to a third party, including its financing
sources, in whole or in part.

 

4.13.
No Strict Construction. The language used in this Agreement is the language chosen mutually by the parties hereto and no
doctrine of construction shall be applied for or against any party.

 

4.14.
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce
or interpret the terms of this Agreement, the parties agree that the party who is awarded the most money shall be deemed the prevailing
party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees,
deposition costs, and expenses paid by such prevailing party in connection with arbitration or litigation without reduction or
apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict
or impair an arbitrator’s or a court’s power to award fees and expenses for frivolous or bad faith pleading.

 

4.15.
Rights and Remedies Cumulative. All rights, remedies, and powers conferred in this Agreement, any of the other Settlement
Documents or the Warrant are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other
right, power, and remedy that Purchaser may have, whether specifically granted in this Agreement or any other document or agreement
referenced above in this Section, or existing at law, in equity, or by statute; and any and all such rights and remedies may be
exercised from time to time and as often and in such order as Purchaser may deem expedient.

 

4.16.
Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

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4.17.
Survival of Representations and Warranties. All of the representations and warranties made herein shall survive the execution
and delivery of this Agreement for the maximum time allowable by applicable law.

 

4.18.
Transaction Fees. Each party shall be responsible for its own attorneys’ fees and other costs and expenses associated
with documenting and closing the transaction contemplated by this Agreement.

 

4.19.
Time of the Essence. Time is expressly made of the essence of each and every provision of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, each of the undersigned represents that the foregoing statements made by it above are true and correct and that
it has caused this Agreement to be duly executed on its behalf (if an entity, by one of its officers thereunto duly authorized)
as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	Typenex
    Co-Investment, LLC
	 	 	 
	 	By:	Red
    Cliffs Investments, Inc., its Manager
	 	 	 
	 	By:	/s/
    John M. Fife
	 	 	John
    M. Fife, President
	 	 	 
	 	COMPANY:
	 	 	 
	 	Tauriga
    Sciences, Inc.
	 	 	 
	 	By:	/s/
    Stella M. Sung
	 	 	Stella
    M. Sung, Chief Executive Officer

 

[Signature
Page to Securities Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

Notice
of Purchase

 

[attached]COL_Exhibit_10_a_1

Exhibit 10-a-1
ROCKWELL COLLINS, INC.
LONG-TERM INCENTIVES PLAN
STOCK OPTION AGREEMENT

You have been granted stock options allowing you to purchase Stock under the Rockwell Collins, Inc. [2006 or 2015, as applicable] Long-Term Incentives Plan, as amended (the “Plan”). These terms and conditions, together with the letter to you from Robert K. Ortberg, dated [DATE], which states the number of options granted to you, constitutes the Stock Option Agreement (the “Agreement”).

The term “Options” refers to the Non-Qualified Stock Options awarded to you under this Agreement. Other capitalized terms that appear in this document that are not otherwise defined appear in Section 14 of this Agreement.

The grant of Options pursuant to this Agreement is not effective or enforceable until you properly acknowledge your acceptance of this Agreement by completing the electronic acceptance of this Agreement. Upon acceptance, the Agreement will be deemed effective as of the Grant Date. If you do not acknowledge your acceptance of this Agreement on or before [DATE ABOVE + 6 Months], the Options will be forfeited. If you reside outside the United States, the Company may require you to complete a written acceptance within this time period in lieu of an electronic acceptance.

SUMMARY OF OPTIONS

The following is a summary of the key terms of the Options. This summary is qualified in its entirety by the terms of this Agreement that follow.

Grant Date: [Date]

Exercise Price: The exercise price of the Options granted hereunder is $<<Grant_Price>>      per Option

Vesting Schedule                  1st anniversary of Grant Date - 1/3 of Options
2nd anniversary of Grant Date -Additional 1/3 of Options
3rd anniversary of Grant Date - Additional 1/3 of Options

Vesting and Exercise Rules:

	
			
	Your Status
	Condition
	Last Date to Exercise Options

	Active Employee
	 
	10th anniversary of Grant Date

	Retiree (attained age 55) at time of termination
	If retirement occurs prior to first anniversary of Grant Date
	Options canceled on termination

	If retirement occurs on or after first anniversary of Grant Date
	Earlier of 5th anniversary of retirement or 10th anniversary of Grant Date 

	Death
	 
	Options become fully vested and exercisable until earlier of 3rd anniversary of death or 10th anniversary of Grant Date

	Qualifying Termination after Change in Control / Divestiture
	 
	Options become fully vested and exercisable until earlier of 3rd anniversary of termination or 10th anniversary of Grant Date

	Termination for Cause
	 
	Options expire on termination

	All other terminations
	 
	Options vested at termination may be exercised until earlier of 3 months after termination or 10th anniversary of Grant Date. Unvested options canceled. 

1.    When Options Vest and Can Be Exercised

An Option is subject to forfetiture and may not be exercised until it has vested.  Options may not be exercised after expiration. Subject to certain special rules outlined below, you must remain continuously and actively employed by the Company or a Subsidiary until the applicable date of vesting to exercise Options.  The Options vest as follows: 

		
	•
	As to one-third (rounded to the nearest whole number) of the Options on the first anniversary of the Grant Date, 

1

		
	•
	As to an additional one-third (rounded to the nearest whole number) of the Options on the second anniversary of the Grant Date, and

		
	•
	As to the balance of the Options on the third anniversary of the Grant Date.

Subject to the terms of this Agreement, once an Option vests, it may be exercised until the tenth anniversary of the Grant Date. Options may be exercised in whole or in part (but only for a whole number of shares) and at one time or from time to time.

2.    Termination of Employment Rules

Death

		
	(a)
	If your employment by the Company or a Subsidiary terminates as a result of your death, then Options not then vested shall immediately vest on the date of your death and all outstanding Options shall remain exercisable (by any person who holds the Options as permitted by Section 5) and not expire until the earlier of (1) the third anniversary of your death and (2) the tenth anniversary of the Grant Date. 

Other than Death

		
	(b)
	Set forth below are the rules that apply if your employment by the Company or a Subsidiary terminates other than by reason of death.

		
	(i)
	Before First Anniversary of Grant Date. If your termination date is before the first anniversary of the Grant Date, the Options shall expire on your termination; 

		
	(ii)
	Cause. If your employment is terminated for Cause, the Options shall immediately expire (regardless if they were vested) upon your termination date; 

		
	(iii)
	Retirement. If your employment terminates by reason of your Retirement on or after the first anniversary of the Grant Date, you (or any person who holds the Options as permitted by Section 5) may exercise Options that vested on or prior to the date of your Retirement and such Options shall not expire until the earlier of (1) the fifth anniversary of your Retirement date and (2) the tenth anniversary of the Grant Date. Options that were not vested prior to your Retirement shall continue to vest and become exercisable in accordance with the schedule outlined in Section 1 despite the fact that your employment terminated as a result of your Retirement. You (or any person who holds the Options as permitted by Section 5) may exercise Options that vest after your Retirement and such Options shall not expire until the earlier of (1) the fifth anniversary of your Retirement and (2) the tenth anniversary of the Grant Date; and

		
	(iv)
	Other Terminations If your employment terminates on or after the first anniversary of the Grant Date other than due to your death, termination for Cause or your Retirement, any Options that were not vested prior to your termination will immediately expire and you (or any person who holds the Options as permitted by Section 5 herein) may exercise the Options which were vested on your termination date and such Options shall not expire until the earlier of (1) three months after your termination date or (2) the tenth anniversary of the Grant Date. 

		
	(v)
	Transfers A transfer of employment between the Company and a Subsidiary shall not constitute a termination of employment.

Special Rules After a Change of Control/Divestiture

		
	(c)
	Notwithstanding any other provision of this Agreement to the contrary, if your employment is terminated on or after a Change of Control (i) by the Company or a Subsidiary other than for Cause or (ii) by you for Good Reason, then Options not then vested shall immediately vest and all Options shall remain exercisable and not expire until the earlier of (1) the third anniversary of your termination and (2) the tenth anniversary of the Grant Date.

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	(d)
	Notwithstanding any other provision of this Agreement to the contrary, if your principal employer is a Subsidiary, and your principal employer ceases to be a Subsidiary and your employment with the Company terminates as a result (the date of such cessation, is herein called the Divestiture Date), then following the Divestiture Date, Options not then vested shall immediately vest and all Options shall remain exercisable and not expire until the earlier of (1) the third anniversary of the Divestiture Date and (2) the tenth anniversary of the Grant Date.

		
	(e)
	Subject to protections that may apply upon the occurrence of a Change of Control as noted in the definitions of Cause and Good Reason, a termination of employment will be deemed to be the day that notice of termination is provided (whether by your employer for any reason or by you upon resignation).

3.    Exercise Procedure

To exercise Options, you must complete the transaction through our administrative agent’s website (currently www.netbenefits.fidelity.com) or call the toll free number provided to you (if you are an executive officer of the Company at the time of exercise of the Options you must call the toll free number to exercise Options and comply with any Company pre-clearance procedures), specifying the number of Options being exercised, together with payment of the full exercise price. You must deliver any documents associated with the exercise as the administrative agent may require.  In no event may a fraction of a share be exercised or acquired. You must also pay any taxes or other amounts required to be withheld or otherwise due in connection with the exercise as provided in Section 4 of this Agreement. If full payment of the exercise price and any such tax or other amounts is not made, you (for yourself and on behalf of any other person who becomes entitled to exercise the Options) authorize the Company and your employer, in their discretion, to set off against salary payments or other amounts due to you (or the other person entitled to exercise the Options) any balance remaining unpaid. 

From time to time, your ability to exercise Options which would otherwise be exercisable may also be restricted and Stock may not be issued, if in the reasonable good faith opinion of the Company’s General Counsel, this is necessary or advisable in order to ensure compliance with applicable laws, rules or regulations.

4.    Withholding

		
	(a)
	As a condition to the grant, vesting and exercise of the Options, the Company, your employer or the administrative agent shall have the right in whole or in part, to deduct from any payment to be made to you by the Company, your employer or the administrative agent an amount equal to the taxes, social contributions, and/or other charges required to be withheld or otherwise applicable by law with respect to the Options or Stock or to require you (or any other person entitled to the Options) to pay to it an amount sufficient to provide for any such taxes, social charges and/or other charges.  You agree (for yourself and on behalf of any other person who becomes entitled to the Options or to the Stock) that if the Company, your employer or the administrative agent elects to require you (or such other person) to remit an amount sufficient to pay such taxes, social contributions, and/or other charges, you (or such other person) must remit that amount within three business days after such amount is due.  If such payment is not made, the Company and your employer, in their discretion, shall have the same right of set-off as provided under Section 3 above. 

		
	(b)
	You acknowledge and agree that you are solely responsible for any and all taxes, social contributions, and/ or other charges that may be assessed by any taxing authority in the United States or any other jurisdiction arising from or related to the Options or the Stock or dividends (if any), that such amounts may exceed the amount actually withheld by the Company, your employer or the administrative agent, and that neither the Company nor any affiliate is liable for any such assessments.  You are solely responsible for all relevant documentation that may be required of you in relation to the Options, such as but not limited to personal income tax returns or reporting statements in relation to the grant, vesting, or exercise of the Options, the holding or the subsequent sale of any Stock acquired on exercise, and the receipt of dividends.  You acknowledge and agree that the Company makes no represenatations regarding the treatment of taxes, social contributions, or other charges and does not commit to and is under no obligation to structure the terms of the Plan or any award to reduce or eliminate your liability for any income taxes, social contributions, or other charges or achieve any particular tax result.  Further, if you become subject to tax in more than one jurisdiction, the Company, your employer, or the admininstrative agent may be required to withhold or account for such amounts in more than one jurisdiction.  Consult a tax or financial advisor if you have any questions.

5.    Transferability; Nonassignability

You are not entitled to transfer the Options except by will or by the laws of descent and distribution.

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	6.
	Acknowledgement and Waiver

By executing this Agreement, participating in the Plan and accepting the Options, you hereby agree and acknowledge that: (a) the Plan is discretionary in nature and that the Company can amend, cancel or terminate it at any time; (b) the grant of Options is voluntary and occasional and does not create any contractual or other right to receive future Options, or benefits in lieu of any Options even if Options have been granted repeatedly in the past; (c) all determinations with respect to any such future grants, including, but not limited to, the times when Options shall be granted, the exercise price, and the time or times when each Option shall vest and be exercisable, will be at the sole discretion of the Company; (d) your participation in the Plan is voluntary; (e) the value of the Options is an extraordinary item of compensation, which is outside the scope of your employment contract, if any; (f) the Options are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any termination, severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (g) the Options cease upon termination of active employment for any reason except as may otherwise be explicitly provided in this Agreement and the Plan; (h) for purposes of the Options, the termination date shall be deemed effective as of the date that you are no longer actively employed regardless of any “garden leave” or other notice period that may be mandated contractualy or under applicable local law; furthermore, in the event of involuntary termination of employment, your right to vest in or exercise Options after termination of employment, if any, will be measured by the date of termination of your active employment and will not be extended by any reasonable notice period mandated under contract or local law, unless otherwise determined by the Company in its sole discretion; (i) the future value of Stock acquired upon exercise of Options, if any, is unknown and cannot be predicted with certainty; and neither the Company nor any affiliate is responsible for any foreign exchange fluctuation between your local currency and the United States Dollar (or the selection by the Company or any affiliates in its sole discretion of an applicable foreign currency exchange rate) that may affect the value of the Options or any Stock acquired upon exercise of the Options (or the calculation of income or any taxes, social contributions, and/ or other charges thereunder), (j) any cross-border remittance made to exercise the Options or transfer proceeds received upon the sale of Stock acquired on exercise must be made through a locally authorized financial institution or registered foreign exchange agency and may require you to provide such entity with certain information regarding the transaction, (k) the Options do not and are not intended to constitute or create a contract of employment and can in no event be understood or interpreted to mean that the Company or a Subsidiary is your employer or that you have an employment relationship with the Company or a Subsidiary or any right to continue in employment, if any, nor will the Options interfere in any way with the right of the Company or your employer to terminate such relationship at any time, subject to applicable law; and (l) no claim or entitlement to compensation or damages arises from the termination of the Options or reduction in value of the Options or any Stock acquired upon exercise and you irrevocably release the Company and your employer from any such claim that may arise.

		
	7.
	Data Privacy

By executing this Agreement, participating in the Plan and accepting the grant of Options, you hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of personal data by and among, as applicable, your employer, administrative agents, the Company and other Subsdiaries for the exclusive purpose of implementing, administering and managing your participation in the Plan.  You understand that administrative agents, the Company, your employer and other Subsidiaries may hold certain personal information about you, including your name, home address and telephone number, date of birth, social security number or other identification number, salary/compensation, nationality, job title, any stock or directorships held in the Company, details of all Options or any other entitlement to stock awarded, canceled, purchased or outstanding in your favor, for the purpose of managing and administering the Plan ("Data").  You further understand that Data may be transferred to any third parties assisting the Company in the implementation, administration and management of the Plan.  You understand that these recipients may be located in your country of residence, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than your country of residence.  You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan.  You understand that withdrawing your consent may affect your ability to participate in the Plan. 

8.    Headings

The section headings contained herein are solely for the purpose of reference and shall in no way affect the meaning or interpretation of this Agreement.

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9.    Entire Agreement

This Agreement and the other terms applicable to Options embody the entire agreement and understanding between the Company and you with respect to the Options, and there are no representations, promises, covenants, agreements or understandings with respect to the Options other than those expressly set forth in this Agreement and the Plan. Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan and this Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan, a copy of which is may be obtained from the office of the Secretary of the Company. In the event of a conflict between the Plan and this Agreement, the Plan will govern.

		
	10.
	Communications 

The Company may, in its sole discretion, decide to deliver any documents related to the Options, future Options, the Stock, or any other Company-related documents by electronic means.  By accepting this Option, whether electronically or otherwise, you hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company, including but not limited to the use of electronic signatures or click-through electronic acceptance of terms and conditions.  If you have been provided with a copy of this Agreement, the Plan, or any other relevant documentation in a language other than English, unless otherwise required by applicable law, the English language documents will prevail in case of any ambiguities or divergences as a result of translation.

11.    Applicable Laws and Regulations

This Agreement and the Company’s obligation to issue Stock upon exercise of Options shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, U.S.A., without regard to the conflict of laws principles thereof. If one or more of the provisions herein shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions that could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Agreement to be construed so as to foster the intent of this Agreement and the Plan.  For purposes of resolving any dispute that may arise directly or indirectly from this Agreement, the parties hereby agree that any such dispute that cannot be resolved by the parties shall be submitted to the exclusive jurisdiction of state and federal courts located in the state of Delaware.

The Company shall not be required to deliver any Stock until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.  Furthermore, the Company reserves the right to impose other requirements on your participation in the Plan, on the Options, and on any Stock acquired under the Options, to the extent the Company determines it is necessary or advisable in order to comply with any applicable law or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.  Furthermore, you understand that the laws of the country in which you are resident at the time of grant, vesting, or exercise of the Options or the holding or disposition of Stock acquired upon exercise (including any rules or regulations governing securities, foreign exchange, tax, labor or other matters) may restrict or prevent the issuance of Stock or may subject you to additional procedural or regulatory requirements for which you are solely responsible for and will have to independently fulfill in relation to the Options or the Stock acquired upon exercise of the Options.  Such requirements may be outlined in but are not limited to the Country-Specific Addendum (the “Addendum”), which forms part of this Agreement.  Notwithstanding any provision herein, the Options and any Stock acquired upon exercise shall be subject to such Addendum.

		
	12.
	Compensation Recovery Policy/Noncompetition and Nonsolicitation Agreement

    
If you are or subsequently become with respect to the Company an executive officer, a Senior Vice President, a Vice President & General Manager, a Vice President & Controller or another employee of the Company or a Subsidiary who becomes subject to the Policy (as defined below), your Options and any gains received upon exercise of your Options will be subject to the Company’s Compensation Recovery Policy, as amended from time to time, including, without limitation, any amendments required to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Policy”). If you are to become subject to the Policy, you will be notified by the Company’s Human Resources Department.  If you have attained the level of Vice President (or above) with the Company and you have not previously entered into a Noncompetition and Nonsolicitiation Agreement  with the Company (the “NCNS Agreement”), this grant 

5

of Options is contingent upon your agreement to be bound by the NCNS Agreement by returning a signed copy of the NCNS Agreement to the Company within the time period prescribed by the Company’s General Counsel. 
13.    Successors  
		
	(a)
	This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

		
	(b)
	The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

14.    Definitions

As used in these Stock Option Terms and Conditions, the following words and phrases shall have the respective meanings ascribed to them below unless the context in which any of them is used clearly indicates a contrary meaning:

		
	(a)
	Board: The Board of Directors of the Company, as it may be comprised from time to time.

		
	(b)
	Cause: (A) your willful and continued failure to perform substantially your duties with the Company or your employer (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to you by (x) the Board or the Chief Executive Officer of the Company if you are an executive officer or Senior Vice President of the Company or (y) the Senior Vice President of Human Resources if you are not an executive officer or Senior Vice President of the Company. Such notice shall specifically identify the manner in which you have not substantially performed your duties, or (B) your willful engaging in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company or one of its affiliates.

For purposes of this provision, no act or failure to act, on the part of you, shall be considered "willful" unless it is done, or omitted to be done, by you in bad faith or without reasonable belief that your action or omission was in the best interests of the Company.  

If you are an executive officer or Senior Vice President of the Company, any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company.  The cessation of an executive officer’s or Senior Vice President’s employment shall not be deemed to be for Cause unless and until there shall have been delivered to you a copy of the resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at the meeting of the Board called and held for such purpose (after reasonable notice is provided to you and you are given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, you are guilty of the conduct described in subparagraph (A) or (B) above, and specifying the particulars thereof in detail. 

		
	(c)
	Change of Control: shall have the same meaning as such term has in Section 10(a) of the Plan.

		
	(d)
	Committee: The Compensation Committee of the Board of Directors of the Company.

		
	(e)
	Company: Rockwell Collins, Inc., a Delaware corporation, and any successor thereto.

		
	(f)
	Good Reason: (i) the assignment to you of any duties inconsistent in any material respect with your most significant position (including status, offices, titles and reporting requirements), authority, duties or responsibilities held, exercised and assigned at any time during the 120-day period immediately preceding the Change of Control, or any other action by the Company or your employer which results in a reduction in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company or your employer promptly after receipt 

6

of notice thereof given by you; (ii) requiring you to be based at any office or location other than the location where you were employed immediately preceding the Change of Control unless any office or location is less than 35 miles from such location, or if the distance from the new location to your residence is less than the distance from the old location to the residence; (iii) any failure by the Company or your employer to maintain your compensation at a level consistent with that generally in effect prior to any Change of Control, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company or your employer promptly after receipt of notice thereof given by you; (iv) any purported termination by the Company or your employer of your employment otherwise than as expressly permitted by this Agreement; or any failure by the Company to comply with and satisfy Section 13(b) of this Agreement. Any good faith determination of "Good Reason" made by you shall be conclusive.

		
	(g)
	Non-Qualified Stock Options: shall have the same meaning as such term has in Section 2(p) of the Plan.

		
	(h)
	Options: The stock options listed in the letter to you from Robert K. Ortberg as referenced in the opening paragraph of this Agreement. The Options are intended to be Non-Qualified Stock Options.

		
	(i)
	Plan: Rockwell Collins [2006 or 2015, as applicable] Long-Term Incentives Plan, as such Plan may be amended and in effect at the relevant time.

		
	(j)
	Retirement: Your termination of employment with the Company or a Subsidiary after you have attained age 55.  A termination after you have attained age 55 for Cause does not qualify as a Retirement.

		
	(k)
	Stock: Stock shall have the same meaning as such term has in Section 2(dd) of the Plan.

		
	(l)
	Subsidiary: Subsidiary shall have the same meaning as such term has in Section 2(ee) of the Plan.

        	
		
	 
	ROCKWELL COLLINS, INC.

	 
	 

	 
	By:

	 
	Robert J. Perna

	 
	Senior Vice President,

	 
	General Counsel and SEcretary

	 
	 

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