Document:

EXHIBIT 10.2

  

 

May
22, 2016

 

CONFIDENTIAL

 

OncoSec
Medical Incorporated

5820
Nancy Ridge Drive

San
Diego, CA 92121

Attn:
Punit Dhillon

 

Dear
Mr. Dhillon:

 

This
letter (the “Agreement”) constitutes the agreement between H.C. Wainwright & Co., LLC (“Wainwright”
or the “Placement Agent”) and OncoSec Medical Incorporated (the “Company”), that Wainwright
shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts” basis, in connection
with the proposed placement (the “Placement”) of registered securities (the “Securities”)
of the Company, including shares of the Company’s common stock, par value $.0001 per share (the “Shares”
or “Common Stock”) and warrants to purchase shares of Common Stock, pursuant to the Registration Statement
(as that term is defined in Section 2(A) below). The terms of such Placement and the Securities shall be mutually agreed upon
by the Company and the purchasers (each, a “Purchaser” and collectively, the “Purchasers”)
and nothing herein constitutes that Wainwright would have the power or authority to bind the Company or any Purchaser or an obligation
for the Company to issue any Securities or complete the Placement. This Agreement and the documents executed and delivered by
the Company and the Purchasers in connection with the Placement shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.”
The Company expressly acknowledges and agrees that the execution of this Agreement does not constitute a commitment by Wainwright
to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success
of Wainwright with respect to securing any other financing on behalf of the Company. Wainwright shall perform all services hereunder
in compliance with applicable law, including securities laws relating to the solicitation of purchasers.

 

SECTION
1. COMPENSATION AND OTHER FEES.

 

As
compensation for the services provided by hereunder, the Company agrees to pay to Wainwright and other participating broker-dealers:

 

(A)The
fees set forth below with respect to the Placement:

 

1.
A cash fee payable immediately upon the closing of the Placement and equal to 5.0% of the aggregate gross proceeds raised in the
Placement, excluding any proceeds from the exercise of any warrants sold in the Placement (the “Placement Agent Fee”).

 

H.C.
Wainwright & Co., LLC – 430 Park Avenue, New York, New York 10022

212-356-0500
– www.hcwco.com

Member:
FINRA, SIPC

 

    	 	 	 

     

    

 

2.
Such number of warrants (the “Wainwright Warrants”) to Wainwright or its designees at the Closing to purchase
shares of Common Stock equal to 5% of the aggregate number of Shares sold in the Placement (including all of the shares of Common
Stock issuable upon exercise of the pre-funded Series B warrants issued in the Placement, assuming such warrants were immediately
exercised in full, and excluding any shares of Common Stock issuable upon exercise of any other warrants issued in the Placement).
The Wainwright Warrants shall have the same terms as the warrants (if any) issued to the Purchasers in the Placement except that
the exercise price shall be 125% of the public offering price per share and the expiration date shall be five years from the effective
date of the registration statement referred to in Section 2(A) below. The Wainwright Warrants shall not have antidilution protections
or be transferable for six months from the date of effectiveness or commencement of sales of the public offering, except as permitted
by the FINRA Rule 5110(g), and further, the number of shares and terms of the underlying the Wainwright Warrants shall be reduced
or modified if necessary to comply with FINRA rules or regulations.

 

(B)The
Company also agrees to reimburse Wainwright for the expenses of Wainwright’s clearing firm in the amount of $10,000 (provided,
however, that such expense cap in no way limits or impairs the indemnification and contribution provisions of this Agreement).
Such expense allowance shall be payable immediately upon (but only in the event of) the closing of the Placement.

 

(C)Wainwright
shall be entitled to compensation under clauses A(1) and A(2) hereunder, calculated in the manner set forth therein, with respect
to any public or private offering or other financing or capital-raising transaction of any kind (“Tail Financing”)
to the extent that such financing or capital is provided to the Company by investors who participated in the Placement, if such
Tail Financing is consummated at any time within the 6-month period following the expiration or termination of this Agreement.

 

SECTION
2. REGISTRATION STATEMENT.

 

The
Company represents and warrants to, and agrees with, the Placement Agent that:

 

(A)The
Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on
Form S-3 (file number 333-195387) under the Securities Act of 1933, as amended (the “Securities Act”), which
became effective on May 12, 2014 for the registration under the Securities Act of the Securities. At the time of filing, the Company
met the requirements of Form S-3 under the Securities Act. Such registration statement meets the requirements set forth in Rule
415(a)(1)(x) under the Securities Act and complies with said Rule. The Company will file with the Commission pursuant to Rule
424(b) under the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the Commission
promulgated thereunder, a final supplement to the form of prospectus included in such registration statement relating to the placement
of the Securities and the plan of distribution thereof and will advise the Placement Agent of all further information (financial
and other) with respect to the Company required to be set forth therein. Such registration statement, including the exhibits thereto,
as amended as of the date of this Agreement and as of the Closing, is hereinafter called the “Registration Statement”;
such prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Base Prospectus”;
and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including
the Base Prospectus as so supplemented) is hereinafter called the “Prospectus Supplement.” Any reference in
this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and
include the documents incorporated by reference therein (the “Incorporated Documents”) pursuant to Item 12
of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on
or before the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement, as the case may be;
and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with
respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include
the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or
the Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement
to financial statements and schedules and other information that is “contained,” “included,” “described,”
“referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or
the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information that is or is deemed to be incorporated by reference in the Registration Statement, the Base
Prospectus or the Prospectus Supplement, as the case may be. The Securities are being issued pursuant to the Registration Statement
and the issuance of the Securities has been registered by the Company under the Securities Act. The Registration Statement is
effective and available for the issuance of the Securities thereunder and the Company has not received any notice that the Commission
has issued or intends to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended
or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened
in writing to do so. The “Plan of Distribution” section under the Registration Statement permits the issuance and
sale of the Securities hereunder.

 

    	 	 	 

     

    

 

(B)The
Registration Statement (and any further documents incorporated therein) contains all exhibits and schedules as required by the
Securities Act. The Registration Statement and any post-effective amendment thereto, at the time it became effective, complied
in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations and did not and,
as amended or supplemented, as applicable, will 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 not misleading. The Base Prospectus and the Prospectus
Supplement, each as of its respective date, will comply in all material respects with the Securities Act and the Exchange Act
and the applicable Rules and Regulations. Each of the Base Prospectus and the Prospectus Supplement, as amended or supplemented,
did not and will not contain as of the respective date thereof any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
The Incorporated Documents, if any, when they were filed with the Commission, conformed in all material respects to the requirements
of the Exchange Act and the applicable Rules and Regulations, and none of such documents, when they were filed with the Commission,
contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein
(with respect to Incorporated Documents incorporated by reference in the Base Prospectus or Prospectus Supplement), in light of
the circumstances under which they were made not misleading; and any further documents so filed and incorporated by reference
in the Base Prospectus or Prospectus Supplement, when such documents are filed with the Commission, will conform in all material
respects to the requirements of the Exchange Act and the applicable Rules and Regulations, as applicable, and will not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. No post-effective amendment to the Registration Statement reflecting
any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in
the information set forth therein is required to be filed with the Commission. There are no documents required to be filed with
the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant to the
Securities Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required to
be described in the Base Prospectus or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement,
which have not been described or filed as required.

 

(C)The
Company will not, without the prior consent of the Placement Agent or except as required by law, prepare, use or refer to, any
free writing prospectus.

 

(D)The
Company has delivered, or will as promptly as practicable deliver, to the Placement Agent complete conformed copies of the Registration
Statement and of each consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the
Registration Statement (without exhibits), the Base Prospectus and the Prospectus Supplement, as amended or supplemented, in such
quantities and at such places as the Placement Agent reasonably requests. Neither the Company nor any of its directors and officers
has distributed and none of them will distribute, prior to the Closing Date, any offering material in connection with the offering
and sale of the Securities other than the Base Prospectus, the Prospectus Supplement, the Registration Statement, copies of the
documents incorporated by reference therein and any other materials permitted by the Securities Act.

 

    	 	 	 

     

    

 

(E)The
Company shall cooperate with the Placement Agent in making the filing required by FINRA Rule 5110, including the payment of the
filing fee required by FINRA thereunder; and shall cooperate in making all Blue Sky filings in such reasonable number of states
as requested by the Placement Agent, and the Company shall directly pay all filing fees required in connection therewith and the
reasonable fees of the Placement Agent’s Blue Sky counsel.

 

SECTION
3.REPRESENTATIONS AND WARRANTIES. Except as set forth under the corresponding section of the Disclosure Schedules,
which shall be deemed a part hereof, the Company hereby makes the representations and warranties set forth below to the Placement
Agent.

 

(A)Organization
and Qualification. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own
and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation or default
of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter
documents. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected
to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material
adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company, or (iii) a
material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no “Proceeding”
(which for purposes of this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial proceeding, such as a deposition), whether commenced or threatened) has been instituted in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(B)Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been
or will be duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
its board of directors or its stockholders in connection therewith other than in connection with the “Required Approvals”
(as defined in subsection 3(D) below). Each Transaction Document has been (or upon delivery will have been) duly executed by the
Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

    	 	 	 

     

    

 

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

 

(D)Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
“Person” (defined as an individual or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity
of any kind, including, without limitation, any Trading Market) in connection with the execution, delivery and performance by
the Company of the Transaction Documents, other than such filings as are required to be made under applicable Federal and state
securities laws (collectively, the “Required Approvals”).

 

(E)Issuance
of the Securities; Registration. Upon receipt of the Securities, the Purchasers will have good and marketable title to such Securities
and, following conversion of the Securities in accordance with the applicable Transaction Documents, the Shares underlying the
Securities will be freely tradable on the Nasdaq Capital Market (the “Trading Market”). As of the Closing Date: 

 

	 	(i)	The
    Securities will be duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents,
    will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than
    restrictions on transfer provided for in the Transaction Documents; 
	 	(ii)	The
    Company shall have reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant
    to the Transaction Documents; 
	 	(iii)	The
    issuance by the Company of the Securities shall have been registered under the Securities Act and all of the Securities shall
    be freely transferable and tradable by the Purchasers without restriction (other than any restrictions arising solely from
    an act or omission of a Purchaser). 
	 	(iv)	The
    Securities shall be issued pursuant to an effective registration statement and the issuance of the Securities has been registered
    by the Company under the Securities Act. Prior to the Closing, the Registration Statement will be effective and available
    for the issuance of the Securities thereunder and the Company has not received any notice that the Commission does not intend
    to declare the registration statement effective. 
	 	(v)	The
    “Plan of Distribution” section under the Registration Statement shall permit the issuance and sale of the Securities
    hereunder. 

 

    	 	 	 

     

    

 

(F)Capitalization.
The capitalization of the Company shall be set forth in the Registration Statement. Except as set forth in the SEC Reports, the
Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant
to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock
to employees pursuant to the Company’s employee stock purchase plan and pursuant to the conversion or exercise of securities
exercisable, exchangeable or convertible into Common Stock (“Common Stock Equivalents”). Other than pursuant to that
certain Securities Purchase Agreement dated June 21, 2011, by and among the Company and the investor signatories thereto, no Person
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except pursuant to the Company’s 2011 Stock Incentive Plan, as set forth in the
SEC Reports or as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, script rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible
into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock,
or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue
additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company
to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of
any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the
outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board
of Directors of the Company or others is required for the issuance and sale of the Securities. There are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(G)SEC
Reports; Financial Statements. The Company has complied in all material respects with requirements to file all reports, schedules,
forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. Other than the Company’s
Form 10-Q for the quarter ended October 31, 2010, filed with the Securities and Exchange Commission on December 20, 2010, which
contained an incorrect disclosure within Item 4, Controls and Procedures, as of their respective dates, the SEC Reports complied
in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    	 	 	 

     

    

 

(H)Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within
the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or “Affiliate” (defined as any Person that, directly or indirectly through one
or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed
under Rule 144 under the Securities Act), except pursuant to existing Company stock option plans. The Company does not have pending
before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated
by this Agreement or as set forth on Schedule 3(H), no event, liability or development has occurred or exists with respect to
the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required
to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly
disclosed 1 Trading Day prior to the date that this representation is made.

 

(I)Litigation.
There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the
Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.
There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates
to such employee’s relationship with the Company, and neither the Company or any of its Subsidiaries is a party to a collective
bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No
executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract
or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are
in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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

 

(K)Compliance.
Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has
the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or
governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including
without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment,
except in each case as could not have a Material Adverse Effect.

 

    	 	 	 

     

    

 

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

 

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

 

(N)Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property
rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which
the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither
the Company nor any Subsidiary has received a notice (written or otherwise) that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any third party. To the knowledge of the Company, all such
Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights of others. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(O)Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate subscription amount under the Transaction
Documents. To the best knowledge of the Company, such insurance contracts and policies are accurate and complete. Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

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

 

    	 	 	 

     

    

 

(Q)Sarbanes-Oxley.
The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the
date hereof and will be in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it
on the Closing Date. 

 

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

 

(S)Trading
Market Rules. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

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

 

(U)Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of
the Company, other than the obligations pursuant to that certain Registration Rights Agreement between the Company and certain
investors dated June 24, 2011.

 

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

 

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

 

    	 	 	 

     

    

 

(X)Solvency.
Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the
proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable value of its assets exceeds the amount
that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry
on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking
into account the particular capital requirements of the business conducted by the Company, and projected capital requirements
and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur
debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on
or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file
for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing
Date. The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred
in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness
of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in
accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(Y)Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material
Adverse Effect, the Company has filed all necessary federal, state and foreign income and franchise tax returns and has paid or
accrued all taxes shown as due thereon, and the Company has no knowledge of a material tax deficiency which has been asserted
or threatened against the Company.

 

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

 

(AA)Accountants.
The Company’s accountants are named in the Prospectus Supplement. To the knowledge of the Company, such accountants, who
the Company expects will express their opinion with respect to the financial statements to be included in the Company’s
next Annual Report on Form 10-K, are a registered public accounting firm as required by the Securities Act.

 

(BB)Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases
of, any of the Securities (other than for the Placement Agent’s placement of the Securities), or (iii) paid or agreed to
pay to any person any compensation for soliciting another to purchase any other securities of the Company.

 

    	 	 	 

     

    

 

(CC)Approvals.
The issuance and listing on the Trading Market of the Shares requires no further approvals, including but not limited to, the
approval of shareholders.

 

(DD)FINRA
Affiliations. There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the
knowledge of the Company, any five percent (5%) or greater stockholder of the Company, except as set forth in the Base Prospectus.

 

SECTION
4.ENGAGEMENT TERM. Wainwright’s engagement hereunder will terminated upon the closing of the Placement (the
“Term”). The engagement may be terminated by Wainwright at any time upon 10 days’ written notice, or by the
Company at any time before the end of the Term upon 10 days’ written notice; provided, however, that the Company may not
deliver a notice of termination for at least 30 days following the date hereof. Notwithstanding anything to the contrary contained
herein, the provisions in this Agreement concerning indemnification and contribution will survive any expiration or termination
of this Agreement. Upon any termination of this Agreement, the Company’s obligation to pay Wainwright any fees actually
earned on closing of the Placement and otherwise payable under Section 1(A), shall survive any expiration or termination of this
Agreement, as permitted by FINRA Rule 5110(f)(2)(d). Upon any termination of this Agreement, the Company’s obligation to
reimburse Wainwright for out of pocket accountable expenses actually incurred by Wainwright and reimbursable upon closing of the
Placement pursuant to Section 1(B), if any are otherwise due under Section 1(B) hereof, will survive any expiration or termination
of this Agreement, as permitted by FINRA Rule 5110(f)(2)(d).

 

If
the Placement is consummated, Wainwright shall be entitled to Placement Agent Fee and Wainwright Warrants, calculated in the manner
provided herein, with respect to any public or private offering of equity or equity-linked securities of the Company of any kind
(“Tail Financing”) to the extent that such financing or capital is provided to the Company by investors who participated
in the Placement (the “Investors”), if such Tail Financing is consummated at any time during the Term or within 6
months following the expiration or termination of this Agreement (the “Tail Period”).

 

SECTION
5.WAINWRIGHT INFORMATION. The Company agrees that any information or advice rendered by Wainwright in connection
with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise
required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without Wainwright’s
prior written consent.

 

SECTION
6.NO FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable
by any person or entity not a party hereto, except those entitled hereto by virtue of the indemnification provisions hereof. The
Company acknowledges and agrees that Wainwright is not and shall not be construed as a fiduciary of the Company and shall have
no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement
or the retention of Wainwright hereunder, all of which are hereby expressly waived.

 

SECTION
7.CLOSING. The obligations of the Placement Agent and the Purchasers, and the closing of the sale of the Securities
hereunder are subject to the accuracy, when made and on the Closing Date, of the representations and warranties on the part of
the Company contained herein, to the accuracy of the statements of the Company made in any certificates pursuant to the provisions
hereof, to the performance by the Company of its obligations hereunder, and to each of the following additional terms and conditions:

 

(A)No
stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose
shall have been initiated or threatened by the Commission, and any request for additional information on the part of the Commission
(to be included in the Registration Statement, the Base Prospectus or the Prospectus Supplement or otherwise) shall have been
complied with to the reasonable satisfaction of the Placement Agent.

 

    	 	 	 

     

    

 

(B)The
Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration Statement,
the Base Prospectus or the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement of a fact
which, in the opinion of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion of such
counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading.

 

(C)All
corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of
this Agreement, the Securities, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal
matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects
to counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information that they
may reasonably request to enable them to pass upon such matters.

 

(D)The
Placement Agent shall have received from outside counsel to the Company such counsel’s written opinion, addressed to the
Placement Agent and the Purchasers dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement
Agent.

 

(E)The
Company and the Placement Agent shall have entered into an escrow agreement with a commercial bank or trust company reasonably
satisfactory to both parties pursuant to which the Purchasers shall deposit their subscription funds in an escrow account and
the Company and the Placement Agent shall jointly authorize the disbursement of the funds from the escrow account. The Company
shall pay the reasonable fees of the escrow agent.

 

(F)The
Company shall not have sustained since the date of the latest audited financial statements included or incorporated by reference
in the Base Prospectus, any loss or interference with its business from fire, explosion, flood, terrorist act or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than
as set forth in or contemplated by the Base Prospectus and (ii) since such date there shall not have been any change in the capital
stock or long-term debt of the Company or any change, or any development involving a prospective change, in or affecting the business,
general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company,
otherwise than as set forth in or contemplated by the Base Prospectus, the effect of which, in any such case described in clause
(i) or (ii), is, in the judgment of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to
proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus and the
Prospectus Supplement.

 

(G)The
Common Stock is registered under the Exchange Act and, as of the Closing Date, the Shares shall be listed and admitted and authorized
for trading on the Trading Market, and satisfactory evidence of such actions shall have been provided to the Placement Agent.
The Company shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common
Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading Market, nor has the Company
received any information suggesting that the Commission or the Trading Market is contemplating terminating such registration or
listing.

 

    	 	 	 

     

    

 

(H)Subsequent
to the execution and delivery of this Agreement, there shall not have occurred any of the following: (i) trading in securities
generally on the New York Stock Exchange, the Nasdaq National Market or the NYSE MKT or in the over-the-counter market, or trading
in any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or minimum or maximum
prices or maximum ranges for prices shall have been established on any such exchange or such market by the Commission, by such
exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been
declared by federal or state authorities or a material disruption has occurred in commercial banking or securities settlement
or clearance services in the United States, (iii) the United States shall have become engaged in hostilities in which it is not
currently engaged, the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United
States, or there shall have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred
any other calamity or crisis or any change in general economic, political or financial conditions in the United States or elsewhere,
if the effect of any such event in clause (iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or
inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus
and the Prospectus Supplement.

 

(I)No
action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially and adversely
affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or
order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date
which would prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect
the business or operations of the Company.

 

(J)The
Company shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force
and effect and shall contain representations and warranties of the Company as agreed between the Company and the Purchasers.

 

(K)FINRA
shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s
behalf, an Issuer Filing with FINRA pursuant to FINRA Rule 5110 with respect to the Registration Statement and pay all filing
fees required in connection therewith.

 

(L)Prior
to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates and documents
as the Placement Agent may reasonably request.

 

All
opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance
with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent.

 

SECTION
8.INDEMNIFICATION.(A) To the extent permitted by law, the Company will indemnify Wainwright and its affiliates,
stockholders, directors, officers, employees and controlling persons (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including
the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to this engagement
letter, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) are found
in a final judgment (not subject to appeal) by a court of law to have resulted primarily and directly from Rodman’s willful
misconduct or gross negligence in performing the services described herein.

 

    	 	 	 

     

    

 

(B)Promptly
after receipt by Wainwright of notice of any claim or the commencement of any action or proceeding with respect to which Wainwright
is entitled to indemnity hereunder, Wainwright will notify the Company in writing of such claim or of the commencement of such
action or proceeding, but failure to so notify the Company shall not relieve the Company from any obligation it may have hereunder,
except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses. If the
Company so elects or is requested by Wainwright, the Company will assume the defense of such action or proceeding and will employ
counsel reasonably satisfactory to Wainwright and will pay the fees and expenses of such counsel. Notwithstanding the preceding
sentence, Wainwright will be entitled to employ counsel separate from counsel for the Company and from any other party in such
action if counsel for Wainwright reasonably determines that it would be inappropriate under the applicable rules of professional
responsibility for the same counsel to represent both the Company and Wainwright. In such event, the reasonable fees and disbursements
of no more than one such separate counsel will be paid by the Company, in addition to local counsel. The Company will have the
exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding
without the prior written consent of Wainwright, which will not be unreasonably withheld.

 

(C)The
Company agrees to notify Wainwright promptly of the assertion against it or any other person of any claim or the commencement
of any action or proceeding relating to a transaction contemplated by this engagement letter.

 

(D)If
for any reason the foregoing indemnity is unavailable to Wainwright or insufficient to hold Wainwright harmless, then the Company
shall contribute to the amount paid or payable by Wainwright as a result of such losses, claims, damages or liabilities in such
proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and Wainwright
on the other, but also the relative fault of the Company on the one hand and Wainwright on the other that resulted in such losses,
claims, damages or liabilities, as well as any relevant equitable considerations. The amounts paid or payable by a party in respect
of losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees and expenses incurred
in defending any litigation, proceeding or other action or claim. Notwithstanding the provisions hereof, Wainwright’s share
of the liability hereunder shall not be in excess of the amount of fees actually received, or to be received, by Wainwright under
this engagement letter (excluding any amounts received as reimbursement of expenses incurred by Wainwright).

 

(E)These
indemnification provisions shall remain in full force and effect whether or not the transaction contemplated by this engagement
letter is completed and shall survive the termination of this engagement letter, and shall be in addition to any liability that
the Company might otherwise have to any indemnified party under this engagement letter or otherwise.

 

SECTION
9.GOVERNING LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of
New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by either
party without the prior written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the
parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute
arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement
may be brought into the courts of the State of New York or into the Federal Court located in New York, New York and, by execution
and delivery of this Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally,
the jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. If either party shall commence an action or proceeding to enforce
any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other
party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

    	 	 	 

     

    

 

SECTION
10.ENTIRE AGREEMENT/MISC. This Agreement embodies the entire agreement and understanding between the parties hereto,
and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any provision of this Agreement
is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect
or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise
modified or waived except by an instrument in writing signed by both Wainwright and the Company. The representations, warranties,
agreements and covenants contained herein shall survive the closing of the Placement and delivery and/or exercise of the Securities,
as applicable. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf signature page were
an original thereof.

 

SECTION
11.NOTICES. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified on the signature pages attached hereto prior to 6:30
p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number on the signature pages attached hereto on a day that is not a business day
or later than 6:30 p.m. (New York City time) on any business day, (c) the business day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as set forth on the signature pages hereto.

 

[Remainder
of page intentionally blank]

 

    	 	 	 

     

    

 

Please
confirm that the foregoing correctly sets forth our agreement by signing and returning to Wainwright a copy of this Agreement.

 

	 	Very
    truly yours,
	 	 	 
	 	H.C.
    Wainwright & CO., LLC
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

	 	Address
    for notice:
	 	430
    Park Avenue, 4th Floor
	 	New
    York, NY 10022
	 	Email:
    notices@hcwco.com
	 	Attention:
    Head of Investment Banking

 

Accepted
and Agreed to as of

the
date first written above:

 

	ONCOSEC
    MEDICAL INCORPORATED	 
	 	 	 
	By:
    	 	 
	 	Punit
    Dhillon	 
	 	Chief
    Executive OfficerExhibit

Exhibit 10.37

JOINT VENTURE AGREEMENT
THIS JOINT VENTURE AGREEMENT (this “Agreement”) is among the following parties:
	
			
	Tecogen Inc., a Delaware USA corporation with a principal place of business at 45 First Avenue, Waltham, Massachusetts 02451 USA (“Tecogen”)
	Tedom a.s., a corporation incorporated under the laws of the Czech Republic, with a principal place of business at Výčapy 195 674 01 Třebíč Czech Republic (“Tedom”)
	TEDOM USA Inc, a C-Corp, incorporated under Delaware law with a principal place of business at 45 First Avenue, Waltham, Massachusetts 02451 USA (“Sub”)

RECITALS:
		
	A.
	Tecogen is a United States cogeneration company that specializes in selling, manufacturing, installing, and maintaining its unique cogeneration equipment in the United States.  Tecogen makes certain products that Tedom does not.  Tecogen desires to expand its product line and potential market in the United States.

		
	B.
	Tedom is a Czech Republic cogeneration company that specializes in selling, manufacturing, installing, maintaining its unique cogeneration equipment in the European Union and other markets.  Tedom sells certain cogeneration products (including without limitation, the products listed on Exhibit A) that do not directly compete with Tecogen’s cogeneration products.  Tedom desires to sell such products in the United States.

		
	C.
	Sub is a wholly owned U.S. subsidiary of Tedom which has been formed for the purpose of entering into a joint venture company with Tecogen in the form of a Delaware limited liability company (the “JV”).

		
	D.
	Tecogen, Tedom and Sub (Tecogen and Sub are referred to herein collectively as the “Members” and each individually as a “Member”) desire to form the JV with the purpose of:  (1) selling certain equipment (including without limitation the Products listed on Exhibit A) produced by Tedom that does not directly compete with Tecogen’s business;  (2) potentially conducting joint research and development to improve the existing equipment of the parties; and (3) creating a self-sustaining joint venture that provides each Member with a stream of revenue.

In consideration for the mutual promises contained in this Agreement, the parties hereby agree as follows:
1.   Defined Terms.  The following terms shall have the following meanings:
		
	a)
	“Agreement” means this Joint Venture Agreement (as may be amended from time to time) and includes all exhibits, and appendixes attached hereto.

		
	b)
	“Approvals” means all permits, licenses, or approvals required from time to time to sell, distribute, install, or maintain the Products in the Territory.

		
	c)
	“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls, is controlled by, or is under common control with, such Person.  For purposes of this definition, “control,” when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and “controlled” shall have correlative meanings.

		
	d)
	“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in the Commonwealth of Massachusetts or in the Czech Republic are authorized or required to close.

Exhibit 10.37

		
	e)
	“Confidential Information” shall mean, subject to the exceptions set forth in that certain Mutual Non-Disclosure Agreement between Tecogen and Tedom dated as of June 22, 2015, any information received by one Party from another Party and/or any information of a Party to which another Party otherwise has access in connection with the negotiation or performance of this Agreement, including, without limitation:  (a) the names of all past, present, and prospective customers, including all records regarding Products sold or supplied to them;  (b) the names of all past, present and prospective employees of such Party;  (c) the Party’s past, present, and prospective systems, trade secrets, methods and procedures used in operation of such Party’s business;  (d) any other oral, written electronic and/or recorded information of any Party’s business, products, financial condition, operations, assets or liabilities;  (e) any documentary information that is marked “confidential”, “private”, “Secret”, “In Confidence” or “Not to be Disclosed” or with a similar marking;  (f) all notes, analysis, summaries compilations, studies projections, forecasts budgets, price list or records of any Party that is marked confidential or which by its nature is confidential;  (g) all research projects, works in process, future developments, engineering, manufacturing, marketing, business plans, future products, sales, suppliers, investors and business partners; and (h) all Intellectual Property of such Party.

		
	f)
	“Customer” means any person who purchases or may purchase any Products for use within the Territory, or may have any Product installed, repaired or maintained.

		
	g)
	“Delivery/Deliver” means EXW delivery of the Products by Tedom to the JV according to Incoterms 2014 conditions.

		
	h)
	“Effective Date” means the date upon which each of the required conditions set forth in Section 2.1 shall have been satisfied.

		
	i)
	“Guaranty” means the Guaranty to be executed by Tedom in the form attached hereto as Exhibit B.

		
	j)
	“Intellectual Property” shall mean all intellectual property and industrial property comprising or relating to/of the following:  (a) patents, patent applications (including U.S. and non-U.S. provisional applications and PCT applications), patent disclosures and inventions and discoveries which may be patentable and improvements thereto;  (b) trademarks, service marks, trade dress, logos, trade names, service names and corporate names;  (c) internet domain names, whether or not trademarks, registered by any authorized private registrar or governmental authority, web addresses, web pages, website and URLs;  (d) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights and copyrightable works, software and firmware, application programming interfaces, architecture, files, records, schematics, data, data files, and databases and other specifications and documentation;  (e) trade secrets, know-how, manufacturing and production processes and techniques, and secret formulas; and (f) all other intellectual property and industrial property, and all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, such rights or forms of protection pursuant to the Laws of any jurisdiction throughout in any part of the world.

		
	k)
	“Installation Contracts” means agreements entered into between the JV and Customers for the purpose of installing the Products.

		
	l)
	“Joinder Agreement” means the Joinder Agreement to be executed by the JV in the form attached hereto as Exhibit A.

		
	m)
	“Kraft Power Agreement” means the Distributorship Agreement executed between Tedom and Kraft Power Corporation and effective as of February 25, 2015.

		
	n)
	“JV LLC Operating Agreement” is the Delaware limited liability company operating agreement of TTcogen LLC, to be entered into by and among the JV, Tecogen and Sub, as may be amended or supplemented from time to time, in the form attached hereto as Exhibit C.

		
	o)
	“Law” means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, governmental order or other requirement or rule of law of any governmental authority, including all amendments thereto and replacements thereof.

Exhibit 10.37

		
	p)
	“Maintenance Contracts” means agreements entered into between Tecogen and Customers or the JV and Customers to service, maintenance, and/or repair the Products or New Products sold in the Territory.

		
	q)
	“Merchantable” means, when referring to Products or Tecogen Products, saleable in the Territory under its product description at its market price or, if applicable, reasonably fit for its ordinary purpose for which such Products or Tecogen Products are manufactured and sold.

		
	r)
	“New Products” means all new products of whatever kind that Tedom introduces as part of its overall range of products that do not directly compete with any of Tecogen’s products, which are available for sale in the Territory.  This also includes all enhancements, upgrades, new versions, modifications to and/or replacements of any of the Products and/or newly developed products of Tedom.

		
	s)
	“Notice” means a notice in writing including those sent by facsimile, letter, email and conveyance in accordance with the terms of this Agreement.

		
	t)
	“Order” means an Order placed by one Party to another Party related to the sale or lease of any Product, the installation of any Product, and/or the maintenance or repair of any Product. 

		
	u)
	“Party” or “Parties” shall mean, either individually or collectively, as applicable, each of Tedom, Tecogen and/or Sub, together with the JV, which shall become a Party to this Agreement in accordance with the terms set forth herein.

		
	v)
	“Person” means any individual, partnership, corporation, trust, limited liability entity, unincorporated organization, association, governmental authority or any other entity that is recognized by Law.

		
	w)
	“Products” means the products proposed to be sold by the JV pursuant to this Agreement, as mutually agreed between the Parties pursuant to the Side Letter.  All New Products shall be added to such list and deemed automatically included therein.

		
	x)
	“Quarter” or “Quarterly” means the three-month period commencing on each of January 1st, April 1st, July 1st, or October 1st.

		
	y)
	“Sales Lead” means any identification of a potential Customer for Products in the Territory or as otherwise agreed in writing by the Parties.

		
	z)
	“Side Letter” means that certain Side Letter Agreement between the Parties dated as of the date hereof.

		
	aa)
	“Spare Parts” means all parts or components of the Products which are capable of being replaced in order to repair or maintain any of the Products.

		
	ab)
	 “Tecogen Products” means the products of Tecogen that may be sold by Tecogen to the JV or Tecogen to Customers in connection with services provided by Tecogen hereunder, as mutually agreed by the Parties pursuant to the Side Letter, which may be updated from time to time by written agreement of all the Parties.

		
	ac)
	“Territory” shall mean the United States of America and its territories and possessions, and where otherwise agreed by the Parties in writing.

		
	ad)
	“Term” means the period commencing on the Effective Date and continuing through the earlier to occur of the date (i) this Agreement shall be terminated in accordance with the terms hereof, (ii) the JV shall be finally dissolved, and (iii) either Member shall transfer 100% of its interest in the JV to the other Member.  The Term also includes all extensions of the Term and all other periods as the Parties may agree in writing.

		
	ae)
	“Year” means a calendar year consisting of a period of twelve months.

2.     This Agreement and the Joint Venture are Contingent; Conditions Subsequent 
2.1.The Parties agree that the effectiveness of this Agreement and the execution of the JV LLC Operating Agreement by Tecogen shall be conditioned upon the execution by the Sub of the JV LLC Operating Agreement and the execution by the JV of the Joinder Agreement attached hereto as Exhibit A in accordance with the terms set forth herein.
2.2. Within thirteen months from the Effective Date, Tedom shall cause one of the following two events to occur:

Exhibit 10.37

2.2.1 the amendment of and assignment to the JV from Tedom of the Kraft Power Agreement and Re-Gen Agreement, in a manner that is reasonably acceptable to all Parties; or 
2.2.2. the irrevocable termination of the Kraft Power Agreement and Re-Gen Agreement; provided that, if required under the terms of the Kraft Power Agreement and Re-Gen Agreement, Kraft Power Corporation and Re-Gen shall have provided to Tedom written notice of acceptance of a termination notice sent in connection therewith.
3.    Tedom’s Promises, Contributions, Obligations, and Rights. 
3.1. Tedom hereby grants to the JV for a period from the Effective Date through the termination of the Term, and the JV hereby accepts, the sole and exclusive right to market, sell, offer for sale, and distribute the Products in the Territory and, to the extent otherwise be agreed by the Parties in writing, through sales agents and distributors, subject to the terms and conditions of this Agreement.  Unless agreed in writing by the Parties, Tedom shall not market, sell, offer for sale, or distribute the Products within the Territory (except through the JV).  For the avoidance of doubt, if Tecogen is in material breach of this Agreement and, if such breach is capable of cure, Tecogen has not cured such breach within sixty days of receipt of written notice of such breach, or if such breach is incurable and Tecogen has received written notice of such breach, then Tedom’s obligations under this Section 3.1 shall immediately terminate.  If in any calendar year period, from 1 January 2017, the JV fails to meet the earnings before interest, taxes, depreciation and amortization targets as set forth in the Business Plan and Budget (as defined below) by 35% or more, or if from the Effective Date to 31 December 2016, the JV fails to sign contracts for the Sale of the Product as set forth in the Business Plan and Budget by 50% or more, then either Party shall have the right, exercisable in its sole discretion, to terminate the JV and this Agreement by written notice, including its obligations in Section 3.1 hereof (“Termination Right”).  
3.2. Tedom shall provide a warranty with respect to the Merchantability of its Products and Spare Parts as mutually agreed by the Parties pursuant to the Side Letter.  Notwithstanding the Side Letter, the length of such warranty shall not be less than one year. 
3.3 Tedom acknowledges and agrees that the JV shall pay Tecogen with respect to any Orders of Tecogen Products or Tecogen’s installation and other services within thirty calendar days of the date the JV shall have received full payment from the Customer with respect to such Orders; provided, however, that if such Orders are subsequently cancelled by the Customer for a refund, Tecogen shall issue a refund to JV with respect to such payment within thirty calendar days of the date it received written notice of such cancellation from JV.  Further, Tedom hereby grants Tecogen the right to make consignment sales and purchases of Tedom service parts for the maintenance of the Products, subject to Section 3.9.
3.4. Tedom shall provide to the JV, at Tedom’s own expense, all reasonably necessary training related to certain aspects of the Products as agreed by the Parties, including but not limited to, the functioning, marketing, and sale of the Products.  Training required to perform proper maintenance of the Products that is to be contracted with Tecogen and provided by Tedom will require a fee to be reasonably determined by Tedom and paid to Tedom by Tecogen for providing this service-training program.  All training of this type shall take place at the factory or a location determined by Tedom in order to satisfactorily work with the appropriate equipment in a hands-on fashion.  Tedom will provide to the JV, at Tedom’s own expense, reasonable customary engineering support services for the Products. 
3.5. Tedom shall ensure that the Products comply with all applicable Laws and US Standards for power generation and utility interconnection laws, including but not limited to, UL Standard for Stationary Engine Generator Assemblies 2200, U.S.E.P.A. Laws, the Clean Air Act, state and local regulations; except where any non-compliance would not reasonably be expected, individually or in the aggregate, to have a material adverse effect on the JV, any other Party or the transactions contemplated hereby.  Tecogen agrees to aid and assist to the best of its knowledge by timely informing Tedom in writing of any changes or impending changes to Laws and regulations that may impact use of Products of which it becomes aware.

Exhibit 10.37

3.6. Until December 31, 2018, Tedom or Affiliate of Tedom agrees to make cash advances to the JV as set forth in the Business Plan and Budget; provided, that, if the JV is able to raise sufficient capital from third parties, including but not limited to banks or other investors as agreed in writing by the Members, Tedom’s cash advance obligations may be reduced or be terminated, as agreed between the Parties.
3.7. Tedom shall provide to the JV, in English, a commercially reasonable quantity of promotional materials including high quality digital photos, graphical depictions, marketing materials, logos and other electronic materials, and all reasonably necessary user manuals, service manuals and the like to enable the JV to effectively advertise and market the Products in the Territory. 
3.8. Tedom shall confirm all Orders from the JV or Orders for Spare Parts from Tecogen by signature with an order confirmation promptly after such Orders are placed, but in no event shall such confirmation be delivered later than five Business Days after placement of such Orders. 
3.9. Tedom shall use its commercially reasonable efforts to attend to the fulfillment of all Orders for the Products and their Delivery in accordance with the terms of this Agreement and any other commercial agreement entered into between the Parties in connection herewith.  For that purpose, Tedom shall endeavor to keep available on consignment to the JV (a) all Spare Parts for prescribed regular maintenance according to the Maintenance Schedule (as defined below) for all Products, and (b) Spare Parts for potential failures according to Tedom’s experience, in Tedom’s reasonable sole discretion (the Spare Parts kept available under (a) and (b) are referred to as the “Consignment Stock”).  The total Consignment Stock on hand at any given time shall be approximately 10% of the value of CHP units sold by the JV, subject to a minimum value of $20,000, and a maximum value of $200,000.  Tedom shall provide to Tecogen a schedule for maintenance (the “Maintenance Schedule”).
3.10. Tedom shall supply to the JV and Tecogen all specifications, drawings, and technical materials reasonably required for use of the Products by Customers.  The specification sheets, drawings and technical information (including but not limited to prospectuses, price-lists, and technical specifications) and all other documents delivered in connection with this Agreement shall be in English. 
3.11. Tedom shall promptly inform the JV and Tecogen of all material changes in the performance of the Products and of the components contained therein of which it becomes aware in the normal course of its business.
3.12. Upon the placement of an Order for Spare Parts by Tecogen, subject to the Consignment Stock, Tedom shall sell to Tecogen any Spare Parts required for Tecogen to carry out any Maintenance Contract (including as subcontractor, as applicable).  The price of such Spare Parts shall be on a “most favored nation” (based on prices for orders for similar quantities and with similar terms, including delivery), paid-at-use, consignment basis as mutually agreed by the Parties pursuant to the Side Letter.  Subject to the last sentence in this Section 3.12, Tedom shall not be obligated to supply its Spare Parts to Tecogen if similar spare parts of comparable quality shall be readily available to Tecogen at competitive prices in the United States; provided, however, that notwithstanding anything to the contrary contained herein, Tecogen shall not obtain any such similar spare parts from any person other than Tedom without the prior written consent of Tedom; provided further, however, that in the case that Tedom shall not provide such consent, Tedom shall be obligated to supply its Spare Parts to Tecogen.
3.13. Tedom shall have the right to examine or observe any installation or maintenance of the Products by Tecogen and Tecogen shall give Tedom reasonable advance written notice of any such installation.
3.14. Tedom shall use its commercially reasonable efforts to refer all Sales Leads to the JV with respect to the Products.

Exhibit 10.37

3.15. Tedom hereby acknowledges and agrees that it shall be obligated to execute the Guaranty attached hereto as Exhibit B, in which it provides for the absolute, unconditional and irrevocable guarantee, as primary obligor and not merely as surety, of up to $1,000,000 in the aggregate of Sub’s obligations hereunder and under the JV LLC Operating Agreement, such limitation being subject to the terms of the Guaranty.
3.16. Tedom hereby agrees that it shall materially adhere to and abide by any provisions of the JV LLC Operating Agreement applicable to Sub, including but not limited to the obligation to continue to provide previously ordered Products and Spare Parts to the JV in the event of a buy-sell event.
3.17. Because of Tecogen’s and the JV’s legitimate business interest as described herein and the good and valuable consideration offered during the Term and for a period of eighteen months thereafter, except as is contemplated by the JV, Tedom agrees and covenants not to:
3.17.1. engage in Prohibited Activity within the Territory during the Term and for a period of eighteen months thereafter.  For purposes of this Section 3.17, “Prohibited Activity” is activity in which Tedom, whether through its own actions or the actions of another person, contributes knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to engage in the same business as the Tecogen Business (as defined below) and/or as the JV.  Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information, or any other Confidential Information of Tecogen and/or the JV.  “Tecogen Business” means selling, manufacturing, installing and maintaining CHP cogeneration equipment using reciprocating engines in modules larger than 60kW and smaller than 230kW operating with natural gas as a fuel.
3.17.2. Notwithstanding any other provision of this Agreement, beginning on the date that is twelve months from the Effective Date, Tedom’s gas heat pump shall be exempt from any prohibitions in this Section 3.17 or any other provision of this Agreement; provided, that, during such twelve month period, the Parties will work in good faith to develop and sell new gas heat pump product (the “GHP”) through the JV; provided, further, that if the Parties come to an agreement regarding the GHP within such twelve month period, the terms of such agreement shall supersede this Section 3.17.2.
3.17.3. The restrictive provisions contained in this Section 3.17 shall not be enforceable if Tecogen is in material breach of this Agreement or if Tedom or Tecogen exercises the Termination Right.
3.17.4. The Parties acknowledge that Aegis Energy Services Inc., Capstone Turbines Corporation and their distributors, 2G Cenergy, Cogen Power Technologies, Cogenco, CPL Distributed Generation Group, Inc., Ener-G Rudox Inc., Yanmar, and Intelligen Power Systems are regarded by Tecogen to be primary, but not exclusive, competitors of Tecogen, as of the date of this Agreement.
3.17.5. During the Term and for a period of eighteen months thereafter, Tedom agrees and covenants not to, directly or indirectly, through one or more of any of their respective Affiliates, solicit or accept business of any Customers of the JV or customers of any other Party for purposes of diverting their business or services from the Company or from such Party. To avoid any doubts, to solicit or accept business of any Customer by the JV is not a breach of this Section 3.17.5.
3.17.6. This Section 3.17 does not, in any way, restrict or impede Tedom from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable Law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the Law, regulation or order.  Tedom shall promptly provide written notice of any such order to Tecogen and the JV.
4.     Tecogen’s Promises, Contributions, Obligations, and Rights. 
4.1. Tecogen shall use commercially reasonable efforts to refer all appropriate Sales Leads to the JV for Products not within the normal course of Tecogen’s operations and which do not compete with Tecogen’s business; provided, that, for the avoidance of doubt, Tecogen hereby acknowledges that the Products mutually agreed to in the Side Letter do not compete with Tecogen’s business.

Exhibit 10.37

4.2. During the term of this Agreement, Tecogen shall not distribute any products from any third parties in the Territory similar to the Products except for Tedom’s Products or Tecogen Products, as contemplated herein and shall not enter into any agreement with any Person to do so, including, without limitation, any joint venture agreement.
4.3. Tecogen shall allow the JV access to Tecogen’s sales representatives, agent network and ESCO relationships.
4.4. In respect of warranty repair services for Tedom-provided Products sold by the JV and covered by Tedom’s warranty, the JV shall have the right to solicit third party bids with respect to such repair services and to engage such third parties to provide such repair services; provided, however, that Tecogen shall have the right to be engaged by the JV to provide such repair services for the price and upon the terms and conditions contained in any such bid selected by Tedom (the “Repair Right of First Refusal”); provided, further, that the JV shall give advance written notification of any such bid to Tecogen, and Tecogen shall have five days to elect in writing to exercise its Repair Right of First Refusal with respect to such bid.  If it does not make such timely election, the JV shall have the right to hire any third party to provide such repair services.
4.5. Tecogen shall provide to the JV all reasonably necessary personnel training, sales and marketing information, and engineering support services at no cost.
4.6. Tecogen is solely responsible for and must, at its own expense, obtain any and all necessary approvals, licenses, permits authorizations, and certifications for its performance under the Maintenance Contracts (including, as a subcontractor, as applicable) and as a subcontractor under the Installation Contracts, including (if applicable in the Territory) any standard, certification and/or any other regulatory body's requirements or other legal requirements.
4.7. At the JV’s discretion, Tecogen shall sell Tecogen Products to the JV or the Customer in connection with installation or other services performed by Tecogen from time to time; provided, however that Tecogen may sell Tecogen Products to the JV or to a Customer in connection with any Maintenance Agreement in its sole discretion.  Tecogen shall provide a warranty with respect to the Merchantability of Tecogen Products sold to the JV and Customers as further described in Side Letter.  Notwithstanding the Side Letter, the length of such warranty shall not be less than one year.  Tecogen shall ensure that the Tecogen Products comply with all applicable material Laws and US Standards for power generation and utility interconnection laws, including but not limited to, UL Standard for Stationary Engine Generator Assemblies 2200, U.S.E.P.A. Laws, the Clean Air Act, state and local regulations.
4.8. Because of Tedom’s and the JV’s legitimate business interest as described herein and the good and valuable consideration offered during the Term and for a term of eighteen months thereafter, except as is contemplated by the JV, Tecogen agrees and covenants not to:
4.8.1. engage in Prohibited Activity within the Territory during the Term and for a period of eighteen months thereafter.  For purposes of this Section 4.8, “Prohibited Activity” is activity in which Tecogen, whether through its own actions or the actions of another person, contributes knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to engage in the same business as the Tedom Business (as defined below) and/or as the JV.  Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information, or any other Confidential Information of Tedom and/or the JV.  “Tedom Business” means the production, distribution, maintenance and service of cogeneration units based on reciprocating engines for modules smaller than 60kW or larger than 230kW and from 60kW to 230kW not for natural gas.

Exhibit 10.37

4.8.2. Notwithstanding any other provision of this Agreement, Tecogen’s gas heat pump shall be exempt from any prohibitions in this Section 4.8 for the first twelve months of the Term, provided, that, during such twelve month period the Parties will work in good faith to develop and sell GHP through the JV; provided, further, that, if Tedom and Tecogen come to an agreement regarding the GHP within the first twelve months of the Term, the terms of such agreement shall supersede this Section 4.8.2.  If during the first twelve months of the Term, the Parties are unable to agree on a GHP, Tecogen’s gas heat pump shall continue to be exempt from any prohibitions on this Section 4.8.
4.8.3. The restrictive provisions contained in this Section 4.8 shall not be enforceable if Tedom is in material breach of this Agreement or if either Tedom or Tecogen exercises the Termination Right.
4.8.4. The Parties acknowledge that Aegis Energy Services Inc., Capstone Turbines Corporation and their distributors, 2G Cenergy, Cogen Power Technologies, Cogenco, CPL Distributed Generation Group, Inc., Ener-G Rudox Inc., Caterpillar Inc., Waukesha Dresser, Yanmar, GE Jenbacher, MTU, Rolls Royce and Cummins are regarded by Tedom to be primary, but not exclusive, competitors of Tedom, as of the date of this Agreement.
4.8.5. During the Term and for a period of eighteen months thereafter, Tecogen agrees and covenants not to, directly or indirectly, through one or more of any of their respective Affiliates, solicit or accept business of any Customers of the JV or customers of any other Party for purposes of diverting their business or services from the Company or from such Party. To avoid any doubts, to solicit or accept business of any Customer by the JV is not a breach of this Section 4.8.5.
4.8.6. This Section 4.8 does not, in any way, restrict or impede Tecogen from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable Law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.  Tecogen shall promptly provide written notice of any such order to Tedom and the JV.
5.      Sub’s Promises, Contributions, Obligations, and Rights.
5.1 Sub acknowledges and agrees to execute the JV LLC Operating Agreement no later than thirty days following the execution of this Agreement by the Parties.
5.2. Sub shall use its commercially reasonable efforts to refer all Sales Leads to the JV with respect to the Products.
6.       JV’s Promises, Contributions, Obligations, and Rights.
6.1. The JV shall use its commercially reasonable efforts to promote, market, distribute and sell the Products within the Territory in order to maximize the sales of such Products during the Term.
6.2. Unless otherwise agreed by the Parties in writing, the JV shall not directly market, sell, offer for sale, service or distribute the Products outside of the Territory.
6.3. The JV may market the Products, as it deems necessary in the Territory (and where otherwise agreed by the Parties in writing) and may enter into such lawful agreements, as it deems desirable to market and/or promote the Products in the Territory (and where otherwise agreed by the Parties in writing).
6.4. The JV will be responsible for its own storage of the Products and shall use commercially reasonable efforts to comply with Tedom’s requirements or recommendations for storage.  Initially, the Parties expect that the JV will store such Products at a Tecogen facility or a mutually satisfactory third party warehouse.
6.5. The JV, at the JV’s expense, shall be responsible for obtaining any and all necessary approvals, licenses, permits, authorizations, and certifications for the Products to enable it to market and sell the Products in the Territory, including (if applicable in the Territory) any standard, certification and/or any other regulatory body’s or legal requirements for the sale, distribution, marketing or use of the Products in the Territory except the CE Mark, UL certifications and other product certifications required prior to shipment.  The Parties shall provide reasonable assistance and cooperation with respect to the attainment of such approvals.

Exhibit 10.37

6.6. All Maintenance Contracts shall be entered into between Customers and Tecogen or between Customers and the JV.  If Tecogen performs the maintenance services under the Maintenance Contracts, the JV and Tecogen shall work together to determine the costs of such maintenance and to set a profit margin, which the JV and Tecogen shall share with each other on a 50%/50% basis.  The JV shall enter into all Installation Contracts with Customers; provided, however, that the JV may solicit bids from third parties with respect to subcontracting installation services under the Installation Contracts and to engage such third parties to provide such installation services; provided, however, that Tecogen shall have the right to be engaged by the JV as a subcontractor to provide such installation services for the price and upon the terms and conditions contained in any such bid selected by Tedom (the “Installation Right of First Refusal”); provided, further, that the JV shall give advance written notification of any such bid to Tecogen and Tecogen shall have five days to elect in writing to exercise its Installation Right of First Refusal with respect to such bid. If it does not make such timely election, the JV shall have the right to hire any third party to provide such installation services.
6.7. The JV will apply for and do all things commercially reasonable to obtain any necessary or required registration of the Products in the Territory.
6.8. The JV shall be obligated to purchase the Products and all parts or equipment related to the Products from Tedom (and shall not purchase any products similar to the Products from any other person other than Tecogen Products).  The JV shall notify Tedom in writing promptly following the sale of any Product in order to create a sales registration log, reserve prices, and enter into related contracts with Tedom, as applicable.  Unregistered sales will not be acceptable as orders by Tedom.  The registration logs shall be prepared by the JV in a format acceptable to Tedom.
6.9. The JV shall provide Tedom and Tecogen with all relevant information related to the sale, installation, or maintenance of any of the Products, as well as the general status and tone of the market, as applicable, including but not limited to any technical or regulatory issues, which may affect the business of the JV.
6.10. The JV hereby grants and shall provide the Parties access to its Confidential Information.  Such information shall not be communicated by any Party to third persons, except as required by Law or as necessary to carry out its obligations under this Agreement.  In the event such information must be communicated to third persons, except as required by Law, the communicating Party shall ensure that such third Person is subject to a reasonable non-disclosure/confidentiality agreement in a form approved by the Parties.  Upon termination or dissolution of the JV, all Confidential Information capable of being destroyed or returned shall be returned to the applicable Party or destroyed, as directed by the disclosing party in writing. 
6.11. The JV shall prepare a Quarterly sales target (as updated, the “Forecasted Schedule”) on or promptly following the Effective Date and shall further update such Forecasted Schedule on a Quarterly basis.  This Forecasted Schedule shall be provided to the Parties within ten days of the end of each Quarter.
6.12. The JV shall not make any distribution of cash to the Members during the first twelve months of its operation.  Further, except for distributions of cash to return advances made by the Parties or to repay accounts payable owing to the Parties, the JV shall not make any distribution of cash to the Members until (i) all advances made by the Parties shall have been repaid in full and (ii) all accounts payable owing to the Parties shall have been paid in full, in each case unless otherwise agreed in writing between the Parties.  All distributions of cash to the Members shall be of available cash from profits of the JV and shall be subject to and pursuant to the terms and conditions of the JV LLC Operating Agreement.
7.       Joint Promises, Contributions, and Obligations.
7.1. Forming the Joint Venture
7.1.1. Within thirty days of the execution of this Agreement, (i) Tecogen and Sub shall execute the JV LLC Operating Agreement, (ii) the JV shall become a party to this Agreement by executing the Joinder Agreement attached hereto as Exhibit A, and (iii) Tedom shall execute the Guaranty attached hereto as Exhibit B, pursuant to which Tedom shall guaranty any and all obligations of Sub under the JV LLC Operating Agreement and hereunder in an amount of up to $1,000,000 in obligations in the aggregate, such limitation being subject to the terms of the Guaranty.

Exhibit 10.37

7.1.2. The Parties agree that the JV shall be a limited liability company formed under the laws of the state of Delaware.
7.1.3.The Parties agree that each Member shall initially own a 50% membership interest in the JV.
7.1.4. Each Member shall initially appoint two managers to the JV Board and the JV Board shall collectively run and operate the JV in accordance with the terms of the JV LLC Operating Agreement. 
7.2. Tedom and the JV hereby grant Tecogen the first right, including through its subcontractors, to enter into Maintenance Contracts with Customers who purchase or lease Products in the Territory from the JV.  In exercising this right, Tecogen may utilize a third party subcontractor to do the work.  The Maintenance Contracts shall be drafted by Tecogen in its discretion and may be altered by Tecogen in its discretion to meet specific Customer needs; provided, however, that Tecogen cannot create any liabilities for any other Party pursuant to such Maintenance Contracts.  
7.3. From the Effective Date until the date that is eighteen months from the last day of the Term (the “Restricted Period”), no Party (or its affiliates) shall, directly or indirectly, solicit to either employ or engage to provide services to such Party (or its affiliates) any person whom such Party (or affiliate) knows or has a reasonable basis to know is at the time of such solicitation an employee of another Party; provided, however, that general public advertisements not specifically directed to solicit employees of a Party shall not constitute direct or indirect solicitation hereunder; provided, further, that if a Party terminates the employment of any employee, no other Party (or affiliate) shall be prohibited from soliciting to employ or engage to provide service to such Party (or affiliate) such terminated employee unless prior to hiring or engaging such person such Party has knowledge after due inquiry that such terminated employee is subject to a non-compete agreement with such terminating Party.
7.4. Each Member shall grant a non-exclusive, license to the JV in certain of its Intellectual Property such that the JV can effectively operate for its purposes as contemplated herein and in the JV LLC Operating Agreement.  Any such license granted shall automatically terminate if the JV is terminated, dissolved, assigned, or otherwise changes ownership and upon the end of the Term.  The JV shall only use any such licenses for the purpose of fulfilling its obligations under this Agreement and the JV LLC Operating Agreement and shall not use any such licenses for anything else without prior written approval from the Member granting the JV such license.  Notwithstanding the foregoing, nothing herein or in any such licenses shall purport to grant any Party’s ownership rights in any Intellectual Property to another Party.  All Intellectual Property rights of any Party (including any improvements, derivations, enhancements and anything developed with such Intellectual Property) are the sole and exclusive property of such Party or its licensors and shall be returned to such Party upon the termination of this Agreement and/or the dissolution of the JV.
7.5. The Parties shall endeavor to develop a detailed research and development plan (“R&D Plan”) within one year of the Effective Date, provided that there shall be no obligation on any Party to develop or execute any such R&D Plan.
7.6. The Parties hereby unanimously approve the business plan and budget as mutually agreed between the Parties pursuant to the Side Letter for presentation to the JV Board (the “Business Plan and Budget”).
7.7. The Parties agree to act at all times reasonably, in good faith and to provide each other Party with all reasonable assistance in carrying out the activities detailed in this Agreement upon reasonable request, including but not limited to the delivery of additional executed documents and/or agreements.
7.8. The Parties agree that except pursuant to this Section 7.8, no Party may claim ownership in any new Intellectual Property created as a result of joint research and development conducted by the JV, or otherwise be patented or otherwise exploited in any way, prior to the execution of a written ownership agreement between the Parties regarding such new Intellectual Property.  If any Intellectual Property is created during the Term, and no research and development agreement between the Parties shall be in effect, then:
7.8.1. if it is invented solely by one Party, it will be owned by that Party; and
7.8.2. if it is jointly invented by the Parties, it will be jointly owned.
7.9. No Party may enter into a contract on behalf of the other.

Exhibit 10.37

7.10. No Party has the right to make any representation on behalf of another Party.
7.11. The Parties agree and covenant that they will not at any time make, publish or communicate to any Person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning any other Party, its subsidiaries or their respective businesses, or any of their independent contractors, officers, and existing and prospective customers, clients, suppliers, investors and other associated third parties.  This Section 7.11 does not, in any way, restrict or impede the Parties from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable Law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the Law, regulation or order.  Each Party shall promptly provide written notice to each other Party of any such order.  This Section 7.11 shall survive the end of the Term.
7.12. Where a Party uses a subcontractor to perform work related to this Agreement in accordance with this Agreement, such Party shall use properly trained and skilled subcontractors that are capable of performing the work given to them according to industry standards; provided, that such Party shall remain liable for such subcontractors.
7.13. The Parties shall not intentionally deface, obscure or remove from any of the Products or any Party’s equipment the Intellectual Property owner’s trademark, Intellectual Property or reservations of Intellectual Property.
7.14. The JV shall prepare its financial statements in accordance with United States generally accepted accounting principles and shall deliver them to each Party within ninety days of the end of each fiscal year.
7.15. Each Party shall conduct reasonable investigation and due diligence into the business of the other Parties. All Parties shall cooperate in good faith with this process, provided that such Parties may impose confidentiality restrictions on their confidential information.
7.16. It is the intent of the JV and the Parties that the JV shall be treated as a partnership for U.S., federal, state and local income tax purposes.  Neither the JV nor any Party shall make an election for the JV to be classified as other than a partnership pursuant to U.S. Treasury Regulations Section 301.7701-3.
7.17 Each Party hereto (including the JV upon execution of the Joinder Agreement) agrees that it shall not, at any time during the Term, intentionally breach any provision of this Agreement or of the JV LLC Operating Agreement (as applicable) or intentionally take any action or refrain from taking any action that could reasonably result in such a breach.
7.18. If legal counsel to any Party advises such Party that it is or has become necessary for such Party (or its affiliate) to publicly file this Agreement with the U.S. Securities and Exchange Commission (the “SEC”) or other regulatory authority, such Party agrees to use its best efforts to seek confidential treatment of this Agreement pursuant to Rule 24b-2 under the Securities Exchange Act of 1934 or any comparable rule or process of the SEC as in effect from time to time and/or of any other such regulatory authority, in cooperation with any Party that desires such confidential treatment; provided, however, that the Party that desires such confidential treatment shall bear all fees and costs (including reasonable attorneys’ fees) directly related to seeking the same.
8.     Pricing, Payment, and Ordering
8.1 The Parties agree that prices and payments associated with this Agreement shall be in U.S. dollars, unless otherwise agreed upon in writing by the Parties.

Exhibit 10.37

8.2. The Parties agree that if, from time to time, the cumulative effect on costs to either Tecogen or Tedom on Products or Spare Parts or Tecogen Products or any other goods and services sold to the JV by Tecogen or Tedom, respectively, caused by the exchange rate between U.S. Dollars and Euros or changes in the Producer Price Index published by the U.S. Bureau of Labor Statistics at any point during the Term is such that the then current costs have increased by two percent or more, then Tecogen or Tedom, as applicable, shall have the right to increase the then current prices charged by Tecogen or Tedom, as applicable, to the JV, by the percentage that such costs have increased, upon written notice to the Parties; provided, however, if such increases would cause the prices to be prohibitively out of market, the Parties shall work together in good faith on the competitiveness of the pricing.
8.3 The recommended USA prices mutually agreed between the Parties pursuant to the Side Letter are only indicative and it is not obligatory to sell the Products for such prices.  The JV will offer its Products with respect to the market conditions, competition, with consideration for the goals of the Business Plan and Budget.
8.4. The Parties agree that in case that Tecogen has not refused to execute Maintenance Contracts with a Customer, the pricing of such contract shall be reasonably set pursuant to Section 6.6.  Methods to determine Maintenance Contract pricing are mutually agreed between the Parties pursuant to the Side Letter.
8.5. The Parties agree that all applicable duties, taxes (except for any tax which is based upon income), and other charges imposed by any governmental authority in respect of any amount payable by the JV to another Party shall be paid by the JV.
8.6. The Parties agree that each Order shall contain, as applicable, the details of the Product or services being purchased or leased, the quantity ordered, the price per item or per service, the total price, the requested time for Delivery or completion of service and such other information as the Parties may reasonably require.  The ordering Party shall promptly inform the supplying Party in writing in the event that the ordering Party determines that its ordering requirements shall be different from those set out on the most recent Forecasted Schedule.  Title and risk of loss shall pass to the purchaser of Products upon Delivery unless otherwise agreed in writing for the specific transaction by the applicable Parties.
9.     Confidentiality. 
9.1. The Parties acknowledges that during the term of this Agreement, they will have access to and become acquainted with Confidential Information.  In addition, each Party acknowledges that: (i) the other Parties have invested, and continue to invest, substantial time, expense and specialized knowledge in developing its Confidential Information; (ii) the Confidential Information provides its owner with a competitive advantage over others in the marketplace; and (iii) the owner of the Confidential Information would be irreparably harmed if the Confidential Information were disclosed to competitors or made available to the public. No Party shall, directly or indirectly, disclose or use (other than solely for the purposes of a Party monitoring and analyzing its investment in the JV, or carrying out its duties under this Agreement) at any time, including, without limitation, use for personal, commercial or proprietary advantage or profit, either during its association with the JV or thereafter, any Confidential Information of which such Party is or becomes aware.  Each Party in possession of Confidential Information shall take all appropriate steps to safeguard such information and to protect it against disclosure, misuse, espionage, loss and theft.
9.2. Nothing contained in this Section 9 shall prevent any Party from disclosing Confidential Information: (i) upon the order of any court or administrative agency; (ii) upon the request or demand of any regulatory agency or authority having jurisdiction over such Party; (iii) to the extent compelled by legal process or required or requested pursuant to subpoena, interrogatories or other discovery requests; (iv) to the extent necessary in connection with the exercise of any remedy hereunder; (v) to another Party; or (vi) to such Party’s Representatives who, in the reasonable judgment of such Party, need to know such Confidential Information and agree to be bound by the provisions of this Section 9 as if a Party or are otherwise bound to professional ethical confidentiality obligations; provided, that in the case of clause (i), (ii) or (iii), such Party shall notify the JV and other Parties of the proposed disclosure as far in advance of such disclosure as practicable (but in no event make any such disclosure before notifying the JV and other Parties) and use reasonable efforts to ensure that any Confidential Information so disclosed is accorded confidential treatment satisfactory to the JV, when and if available.
9.3. The restrictions of this Section 9 shall not apply to Confidential Information that:  (i) is or becomes generally available to the public other than as a result of a disclosure by a Party in violation of this Agreement; (ii) is or has been independently developed or conceived by such Party without use of Confidential Information; or (iii) becomes available to such Party or any of its Representatives on a non-confidential basis from a source other than the Company, the other Parties or any of their respective Representatives, provided, that such source is not known by the receiving Party to be bound by a confidentiality agreement regarding the JV.
9.4. The obligations of each Party under this Section 9 shall survive (i) the termination, dissolution, liquidation and winding up of the JV, (ii) the withdrawal of such Party as a Member from the JV, and (iii) such Member’s transfer of its membership interests.
10.     Business Opportunities. At any time during the Term, if a Member or any Affiliate of a Member is offered or discovers a business opportunity of the type and character that is consistent with the Business (a “Business Opportunity”), such Member or Affiliate shall, prior to pursuing such Business Opportunity, offer to the JV the right to pursue such Business Opportunity for the benefit of the JV.  If the JV, by unanimous consent of the Members, determines not to pursue such Business Opportunity, or, if no determination has been made within thirty days after its presentation to the JV, then the presenting Member or Affiliate shall be free to pursue such Business Opportunity as such Member or Affiliate shall determine in its sole discretion.
11.     Term/Termination.  This Agreement shall not be terminable for convenience and shall only be terminable as follows:
11.1. by a Party at any time prior to the Effective Date upon the breach by another Party of a material obligation, representation or warranty that, if capable of being cured, remains uncured for thirty days after written notice thereof, or if such breach is incurable, immediately upon written notice thereof;
11.2 simultaneously with any final dissolution of the JV or the transfer by a Member of 100% of its interests in the JV to the other Member.
11.3. Any Party may terminate this Agreement at any time after the Effective Date by sending written notice of such termination to the other Parties in the event of the breach by any other Party of a material obligation, representation or warranty that, is either incurable, or if capable of being cured, remains uncured for sixty days after written notice thereof.
11.4. In the event of any termination of this Agreement following the Effective Date, the provisions of the JV LLC Operating Agreement with respect to deadlocks and dissolution of the JV, as applicable, shall apply, including but not limited to the waterfall procedures.  All obligations of any Party that arose prior to any such termination or which are specifically designated to survive termination of this Agreement, or which, by their nature are reasonably expected to survive such termination, shall survive any such termination.
12.     Right to Audits.  Each Party will supply the other Parties with confidential access to such Party’s records and facilities reasonably necessary for the purpose of monitoring such Party’s performance under or carrying out the intent and purpose of this Agreement.  Notwithstanding the foregoing, a Party will be permitted to have access to trade secrets or other confidential technical information of another only as reasonably deemed necessary by agreement between them, with such information to be governed by the confidentiality provisions of this Agreement.  Additionally, each Party will allow the other Parties and their respective advisers’ full access to such records, key employees, advisers and operations as is reasonably required for the purposes of the valuation of any Party’s business and each Party’s due diligence and investigations with respect to such other Party’s business.
13.     Remedies. Upon any termination of this Agreement due to the breach by any Party of its obligations, representations or warranties hereunder or under any other related agreement (including the Joinder Agreement, the Guaranty and the JV LLC Operating Agreement), the non-breaching Parties will be entitled to all rights and remedies available to them hereunder and thereunder and under all applicable Laws.
14.     Tedom’s Representations and Warrants. Tedom represents and warrants that:
14.1. it is a corporation duly incorporated, validly existing and in good standing under the laws of the Czech Republic;
14.2. it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement;
14.3. it has the full right, corporate power and authority to enter into this Agreement and to perform its obligations hereunder;
14.4. the execution, delivery and performance of this Agreement by Tedom will not violate, conflict with, require consent under or result in any breach or default under (i) any of Tedom’s organizational documents (including its certificate of incorporation and by-laws); (ii) any applicable Law; or (iii) any material  provision of any material contract or agreement to which Tedom is a party or to which any of its material assets are bound, except where any violation, conflict or lack of consent would not reasonably be expected, individually or in the aggregate, to have a material adverse effect on the JV, any other Party or the transactions contemplated hereby; and
14.5. it has all of the requisite resources, skill, experience and qualifications to perform all of the services under this Agreement in a professional and workmanlike manner, in accordance with commercially reasonable industry standards for similar services; and all Products and their packaging supplied by Tedom under the terms of this Agreement shall be fit and Merchantable at the time of delivery.
15.     Tecogen’s Representations and Warrants. Tecogen represents and warrants that:
15.1. it is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware;
15.2. it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement;
15.3. it has the full right, corporate power and authority to enter into this Agreement and to perform its obligations hereunder;
15.4. the execution, delivery and performance of this Agreement by Tecogen will not violate, conflict with, require consent under or result in any breach or default under (i) any of Tecogen’s organizational documents (including its certificate of formation and limited liability company operating agreement); (ii) any applicable Law; or (iii) any material provision of any material contract or agreement to which Tecogen is a party or to which any of its material assets are bound, except where any violation, conflict or lack of consent would not reasonably be expected, individually or in the aggregate, to have a material adverse effect on the JV, any other Party or the transactions contemplated hereby; and
15.5 it has all of the requisite resources, skill, experience and qualifications to perform all of the services under this Agreement in a professional and workmanlike manner, in accordance with commercially reasonable industry standards for similar services, including experience in manufacturing, installing, and maintaining cogeneration equipment; and the quality of Tecogen’s equipment and any Tecogen Products and their packaging supplied by Tecogen will be fit and Merchantable at the time of delivery.
16.     Sub’s Representations and Warrants.  Sub represents and warrants that:
16.1. it is a corporation duly incorporated, validly existing and in good standing under the laws of the Delaware;
16.2. it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement;
16.3. it has the full right, corporate power and authority to enter into this Agreement and to perform its obligations hereunder; and
16.4. the execution, delivery and performance of this Agreement by Sub will not violate, conflict with, require consent under or result in any breach or default under (i) any of Sub’s organizational documents (including its certificate of incorporation and by-laws); (ii) any applicable Law; or (iii) any material provision of any material contract or agreement to which Sub is a party or to which any of its material assets are bound, except where any violation, conflict or lack of consent would not reasonably be expected, individually or in the aggregate, to have a material adverse effect on the JV, any other Party or the transactions contemplated hereby.
17.     JV Representations and Warrants. the JV represents and warrants that:
17.1. it is a limited liability company duly formed, validly existing and in good standing under the laws of Delaware;
17.2. it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement;
17.3. it has the full right, corporate power and authority to enter into this Agreement and to perform its obligations hereunder; and
17.4. the execution, delivery and performance of this Agreement by the JV will not violate, conflict with, require consent under or result in any breach or default under (i) any of the JV’s organizational documents (including its certificate of formation and the JV LLC Operating Agreement); or (ii) any applicable Law, except where any violation, conflict or lack of consent would not reasonably be expected, individually or in the aggregate, to have a material adverse effect on the JV, any other Party or the transactions contemplated hereby.
18.     Additional Representations by all Parties.  Tecogen, Sub and Tedom hereby represent and warrant that:
18.1. the Board of Directors (or other governing body such entity) of such Party has approved this Agreement and the transactions contemplated hereby;
18.2. such Party has conducted its due diligence and is satisfied with the results of its investigation into the business of the other Parties to be contributed to the JV;
18.3. there has been no material adverse change in its business, operations, assets, position (financial, trading or otherwise), profits or prospects since the date such Party executed that certain Memorandum of Understanding dated January 18, 2016;
18.4. to such Party’s knowledge, there has been no legislation or regulation proposed or passed that would prohibit or materially restrict the implementation of this Agreement or the JV LLC Operating Agreement or the transactions contemplated hereby or thereby; and
18.5. such Party has the capacity to enter into this Agreement and the JV LLC Operating Agreement, as applicable.
19.     Indemnification. Each Party (an “Indemnifying Party”) shall indemnify, hold harmless, and defend each other Party and its officers, directors, employees, agents, affiliates, successors and permitted assigns (collectively, “Indemnified Party”) against any and all losses, damages, diminutions in value, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including professional fees and reasonable attorneys’ fees, that are incurred by Indemnified Party (collectively, “Losses”), arising out of any third-party claim alleging:
19.1. material breach or non-fulfillment of any material representation, warranty or covenant set forth in this Agreement by Indemnifying Party or Indemnifying Party’s personnel;
19.2. any grossly negligent or more culpable act or omission of Indemnifying Party or its personnel (including any reckless or willful misconduct) in connection with the performance of its obligations under this Agreement;
19.3. any bodily injury, death of any person or damage to real or tangible personal property caused by the negligent or more culpable acts or omissions of Indemnifying Party or its personnel (including any reckless or willful misconduct); or
19.4. any failure by Indemnifying Party to materially comply with any applicable federal, state or local laws, regulations or codes in the performance of its obligations under this Agreement.
19.5 The Party seeking indemnification shall notify the others in writing of any Losses promptly after learning of it.  The Indemnifying Party shall defend against such Losses at its own expense.  If the Indemnifying Party negotiates a settlement with respect to the Losses, the settlement must contain an unconditional release of the relevant Indemnified Party, and not include admission of fault on behalf of any Indemnified Party.
20.     Notices. All notices, requests and other communications called for by this Agreement shall be given by email, confirmed in the case of material communications by concurrent written notice sent by a recognized internally recognized delivery service:
if to Tecogen, at 45 First Avenue, Waltham, MA 02451, attention: Chief Financial Officer, email: [*] ; and

Exhibit 10.37

if to Tedom, at Výčapy 195 674 01 Třebíč Czech Republic, attention: CEO - general director, email: [*], or to such other addresses as either such party shall specify to the other.  Notice by any other means shall be deemed made when actually received by the party to which notice is provided.  
The JV will notify in writing the other Parties its address for notice under this Agreement promptly after its execution of the Joinder.  Notices constituting Orders for Products or equipment shall be placed in accordance with the standard ordering procedures of the supplying Party, provided that such procedures shall have been delivered to the ordering Party in writing.   
21.     Independent Contractor.  Each Party will be deemed to be an independent contractor and will not have the authority to contract for any other party.  Nothing in this Agreement creates any agency or employment relationship between the Parties or an employee/employer relationship.  No Party or its representatives are employees of any other Party for any purposes, including, but not limited to, the application of the Federal Insurance Contribution Act, the Social Security Act, the Federal Unemployment Tax Act, the provisions of the Internal Revenue Code, the State Revenue and Taxation Code relating to income tax withholding at the source of income, the Workers’ Compensation Insurance, Code 401(k) and, other benefit payments and third party liability claims.  No Party has any express or implied right or authority to assume or create any obligations on behalf of or in the name of any other Party or to bind any other Party to any contract, agreement or undertaking with any Customer or other third party.
22.     Dispute Resolution.  If a good faith dispute exists between one or more Parties with respect to a material matter under this Agreement (a “Dispute”), one of the disputing Parties may request the other Parties to submit the reasons for its position in writing and then to enter into good faith negotiations to attempt to resolve such Dispute for a period of thirty days following such written notice.  Any Party shall have the right, at any time after good faith efforts have failed to resolve a Dispute, to make a written request of the other Parties for a review of such matter by the appropriate and authorized senior officer of each Party (“Executive Review”).  A Party shall exercise its right to request Executive Review by providing written notice to the other disputing Party. An authorized officer of each Party shall meet within thirty days of the day such notice is delivered to the other Parties, and shall engage in good faith efforts to resolve the Dispute. Any such decision by the authorized officers shall be binding on the Parties.
If such dispute cannot be settled by good faith negotiation between the Parties and by Executive Review within thirty days of the commencement of such review the Dispute will be finally resolved by arbitration in Boston, Massachusetts in accordance with the American Arbitration Association Commercial Dispute Resolution Procedures in effect at the time of the arbitration, except as they may be modified herein or by mutual agreement of the parties, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
23.     Expenses. Each Party shall pay its respective fees and expenses incident to the negotiation, preparation and operation of this Agreement and the JV LLC Operating Agreement; provided, however, that the JV LLC shall promptly pay, or promptly reimburse Tecogen (at Tecogen’s sole option) on demand for all reasonable legal costs and expenses incurred in connection with the formation of the JV and the preparation and revisions to this Agreement and the JV LLC Operating Agreement, in an amount not to exceed $50,000.
24.     Entire Agreement. This Agreement and all related Exhibits, Schedules and attachments and that certain Mutual Non-Disclosure Agreement between Tecogen and Tedom dated as of June 22, 2015, and the JV LLC Operating Agreement, constitute the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior contemporaneous understandings, agreements, and representations and warranties, both written and oral with respect to the subject matter by or among the parties. In the event of any inconsistency between the statements in the body of this Agreement and related Exhibits, Schedules or attachments, the statement in the body of this Agreement shall control.  In the event of any inconsistency between this Agreement and the JV LLC Operating Agreement, the JV LLC Operating Agreement shall control.
25.     Amendment. No amendment to this Agreement will be binding unless it is in writing, identified as an amendment to this Agreement and signed by all Parties to this Agreement.

Exhibit 10.37

26.     Waiver. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving. No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
27.     Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
28.     Assignment.  No Party may assign any rights or obligations under this Agreement without the prior written approval of the other Parties. 
29.     Survival. Any provisions that impose an obligation or right, expressly or by common understanding, after the termination or expiration date of this Agreement will survive the termination or expiration of this Agreement and will be binding on the parties hereto.
30.     Governing Law.  This Agreement and all matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts without giving effect to any choice or conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction).
31.     Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
32.     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
33.     No Third Party Beneficiaries. The Parties do not confer any rights or remedies upon any Person other than the Parties to this Agreement (which shall include the JV after the execution of the Joinder Agreement by the JV) and their respective successors and permitted assigns.
34.     Force Majeure.  No Party shall be liable or responsible to any other Party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations to make payments to any other Party hereunder), when and to the extent such failure or delay is caused by or results from acts beyond the affected Party’s reasonable control, including, without limitation:  (a) acts of God; (b) flood, fire or explosion; (c) war, invasion, riot or other civil unrest; (d) actions, embargoes or blockades in effect on or after the date of this Agreement; (e) national or regional emergency; (f) strikes, labor stoppages or slowdowns or other industrial disturbances; (g) compliance with any Law or any action taken by a governmental or public authority; (h) shortage of adequate power or telecommunications or transportation facilities; or (i) any other event which is beyond the reasonable control of such Party (each of the foregoing, a “Force Majeure Event”).  A Party whose performance is affected by a Force Majeure Event shall give notice to the other Parties, stating the period of time the occurrence is expected to continue and shall use diligent efforts to end the failure or delay and minimize the effects of such Force Majeure Event.

[Signatures page follows]

Exhibit 10.37

IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the date set forth above.
 
	
		
	 
	TECOGEN INC.

	 
	By:_____________________
Name:
Title:

	 
	TEDOM A.S.

	 
	By:_____________________
Name:
Title:

	 
	TEDOM USA INC.

	 
	By:_____________________
Name:
Title:

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