Document:

Exhibit

Independent Contractor’s Agreement

    
THIS AGREEMENT is entered into and effective as of the 25th day of March, 2019 by and between American Renal Associates Holdings, Inc., hereinafter referred to as “ARAH”, and ECG Ventures, Inc. hereinafter referred to as “Contractor”.

WHEREAS, ARAH hereby engages the Contractor to render specific services as described on Schedule A as amended from time to time and as directed by ARAH (collectively, the “Services”); and  
    
WHEREAS, Contractor has agreed to make the services of Thomas W. Erickson (“Mr. Erickson”) available to perform such Services on a non-exclusive basis as further described on Schedule A.

NOW, THEREFORE, the parties intending to be legally bound have entered into the following Agreement:

1.    Contractor will perform Services for ARAH at such place(s) to which the parties have mutually agreed, as further described on Schedule A hereto.

2.    Contractor represents that it possesses the requisite experience and ability to perform the Services and regularly performs similar services for other companies.  Contractor will devote such time as is reasonably necessary to complete the Services on such timelines as mutually agreed-upon between the parties from time to time and as further described on Schedule A hereto.

3.    Contractor’s compensation under this Agreement (which shall be in addition to Mr. Erickson’s continuing compensation as a member of ARAH’s Board of Directors) shall consist of a base fee, a restatement fee and a performance fee as described below: 

a.    Base Fee.  During the Term (as defined below), ARAH shall pay Contractor a base fee (the “Base Fee”) at a rate of one-hundred thousand Dollars ($100,000) per month in cash, pro-rated for any partial month.  The Base Fee for each calendar month shall be payable in arrears no later than the 10th day following the last day of each calendar month.

b.    Restatement Fee.  Upon the filing by ARAH with the SEC, prior to the end of the Term, of its Form 10-K for the 2018 fiscal year and the restatement of its financial statements as contemplated by ARAH’s Form 8-K (which Form 8-K is expected to be filed on or about March 27, 2019), Contractor will be entitled to a fee (the “Restatement Fee”) equal to the aggregate Base Fee earned by Contractor through the date of such filing.  The Restatement Fee shall be paid to Contractor in cash as soon as practicable following the date of such Form 10-K filing (and, in any event, no later than ten (10) days following the date of such Form 10-K filing).

c.    Performance Fee.  At the end of the Term, Contractor will be entitled to a performance fee (the “Performance Fee”) in an amount equal to the aggregate Base Fee earned through the last day of the Term less the amount of any Restatement Fee paid to Contractor hereunder.  The Performance Fee shall be paid to Contractor in cash within 30 days following the end of the Term.

4.    ARAH will pay for any reasonable and documented travel costs and other business expenses incurred on behalf of ARAH by Contractor in connection with the Services performed hereunder, so long as such expenses are incurred in accordance with ARAH’s reasonable and customary expense policies provided 

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to or known by Contractor, as in effect from time to time. Upon receipt of itemized vouchers, expense account reports and supporting documents, submitted to ARAH in accordance with ARAH’s procedures then in effect, ARAH shall reimburse Contractor for all such reasonable and documented expenses.  Contractor shall be permitted to consult with ARAH’s legal, accounting and other advisors approved by ARAH in furtherance of Contractor’s performance of Services under this Agreement.  Any costs associated with such consultations shall be borne by ARAH.

5.    Contractor is responsible for paying, or causing to be paid, when due all income taxes, including, without limitation, estimated taxes, incurred as a result of the compensation paid by ARAH to Contractor for Services under this Agreement.  On request, Contractor will provide ARAH with proof of timely payment.  Contractor agrees to indemnify ARAH for any claims, costs, losses, fees, penalties, interest, or damages suffered by ARAH resulting from Contractor’s failure to comply with this provision.

6.    The Contractor agrees to perform the Services hereunder solely as an independent contractor.  The parties to this Agreement recognize that this Agreement does not create any actual or apparent agency, partnership, franchise, or relationship or employer and employee between the parties.  The Contractor is not authorized to enter into or commit ARAH to any agreements, and the Contractor shall not represent itself as the agent or legal representative of ARAH.

Further, the Contractor shall not be entitled to participate in any of ARAH’s benefit plans or arrangements, including, without limitation, any health or retirement plans.  Neither the Contractor nor Mr. Erickson shall not be entitled to any remuneration, benefits, or expenses other than as specifically provided for in this Agreement and in respect of Mr. Erickson’s service as a member of the Board of Directors of ARAH.

ARAH shall not be liable for taxes, Worker’s Compensation, unemployment insurance, employers’ liability, employer’s FICA, social security, withholding tax, or other taxes or withholding for or on behalf of the Contractor or any other person consulted or employed by the Contractor in performing Services under this Agreement.  All such costs shall be Contractor’s responsibility.
    
7.    During the course of the engagement under this Agreement, it is anticipated that Contractor and Mr. Erickson will learn confidential or proprietary information of ARAH (including, without limitation, information that Mr. Erickson may obtain in his capacity as a member of ARAH’s Board of Directors).   Contractor and Mr. Erickson acknowledge and agree that they have an obligation to keep any such confidential or proprietary information confidential.  Without limiting the foregoing, the parties hereto acknowledge and agree that any breach by Mr. Erickson of his confidentiality obligations hereunder or in his capacity as a member of the Board of Directors of ARAH shall constitute a material breach of this Agreement.

8.    Notwithstanding anything to the contrary herein or in any compliance policy of ARAH, nothing shall prohibit Contractor or Mr. Erickson from communicating, cooperating or filing a complaint with any U.S. federal, state or local enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosure relating thereto to any such Governmental Entity, that are protected under the whistleblower provisions of any such law or regulation provided that in each case (A) such communications and disclosures are consistent with applicable law and made in good faith and (B) the information subject to such disclosure was not obtained by Contractor or Mr. Erickson through a communication that was subject to the attorney-client privilege, unless such disclosure of that information would otherwise be permitted by an attorney pursuant to applicable state attorney conduct rules. Moreover, Contractor and Mr. Erickson shall not be required to obtain any prior authorization from (or to give prior notice to) ARAH regarding any such 

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communication or disclosure.  Contractor also acknowledges that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (A) in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (B) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.

9.    Contractor acknowledges that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable) which directly and materially relate to ARAH’s (and its affiliates’) actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by Contractor while providing Services under this Agreement (“Work Product”) belong to ARAH. Contractor shall promptly disclose such Work Product to ARAH and perform all actions reasonably requested by ARAH (whether during or after the Term of this Agreement) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).

10.    At the termination of its engagement under this Agreement, Contractor will return to ARAH all drawings, specifications, manuals, and other printed or reproduced material (including, without limitation, information stored on machine readable media) provided by ARAH to Contractor, and/or which Contractor made or acquired in the performance of his Services under this Agreement, and all copies of such information made by Contractor; provided, however, that this paragraph shall not apply to information and materials retained by Mr. Erickson in connection with his service as a member of the Board of Directors of ARAH.

11.    Contractor agrees that during the Term of Contractor’s engagement with ARAH, and for a period of one year after the termination thereof, Contractor will not, directly or indirectly, either for Contractor’s own use, or for the benefit of any other person, firm or corporation, divert or take away, or attempt to divert or take away, call on or solicit, any of ARAH’s employees, physician partners or customers.

12.    The term of this Agreement (the “Term”) shall be for a period beginning on March 25, 2019 and continuing until terminated by either party on 30 days’ prior written notice (or, if earlier, Mr. Erickson’s death or permanent disability); provided, however, that any decision by ARAH to terminate the Term shall require the approval of ARAH’s Board of Directors.  Upon termination of the Term for any reason, ARAH will reasonably promptly pay Contractor: (a) any accrued but unpaid fees as described under paragraph 3 above; and (b) any outstanding expenses subject to reimbursement under paragraph 4 above.

13.    The provisions contained in paragraphs 3 through 11, 14, 15, 17, 19, 20 and 21 shall survive the expiration of the Term and any termination of this Agreement.   ARAH’s obligations hereunder shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business, or similar event relating to ARAH.  This Agreement shall not be terminated by any merger, consolidation, or other reorganization of ARAH.

14.    EXCLUSION OF CERTAIN DAMAGES. IN NO EVENT SHALL CONTRACTOR, MR. ERICKSON OR ANY OF THEIR RESPECTIVE REPRESENTATIVES BE LIABLE UNDER THIS AGREEMENT TO ARAH, ANY OF ITS AFFILIATES OR AGENTS OR ANY THIRD PARTY FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, ARISING OUT OF, OR RELATING TO, AND/OR IN CONNECTION WITH ANY BREACH OF THIS AGREEMENT OR THE 

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PROVISION OF ANY OF THE SERVICES, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR NOT IT WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED.

15.    If any provision of this Agreement is determined to be invalid or unenforceable, then, unless the intent of this Agreement would fail, the provision shall be deemed to be severable from the remainder of this Agreement and shall not cause the invalidity or unenforceability of the remainder of this Agreement.

16.    The parties acknowledge that this Agreement constitutes a personal contract with Contractor.  Contractor and ARAH may not transfer or assign this Agreement, or any part thereof, without the prior written approval of the other party.  

17.    This Agreement has been entered into in the Commonwealth of Massachusetts and all questions with regard to the construction of this Agreement and the rights and liabilities of the parties hereunder shall be governed by the laws of the Commonwealth of Massachusetts.

18.    This Agreement contains the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous written or oral negotiations and agreements between the parties regarding the subject matter hereof.  This Agreement may be amended only by a writing signed by each of the parties hereto.

19.    ARAH shall indemnify, defend and hold harmless each of Contractor and Mr. Erickson from and against all claims, allegations, investigations, liability, loss, damage, expense, and cost (including, without limitation, reasonable attorneys' fees and other costs of defense incurred in connection with the same) (“Loss”), relating to, resulting from or arising out of this Agreement or Contractor’s or Mr. Erickson’s performance of the Services hereunder, except to the extent that any such Losses are caused by the gross negligence, fraud or willful misconduct of Contractor.  The burden of proving that indemnification is not appropriate or that any liability, expenses or charges do not meet the definition of “Loss” shall be on ARAH. ARAH’s obligations under this paragraph 19 shall be in addition to any rights to insurance coverage and proceeds, indemnification, exculpation and/or advancement of expenses of Mr. Erickson in his capacity as a member of ARAH’s Board of Directors or otherwise pursuant to ARAH’s Bylaws and/or other governing documents and indemnification agreements.  In addition to any other provision hereof, to the extent that Mr. Erickson is, by reason of or arising out of his or Contractor’s Services, a witness in or otherwise incurs expenses or Losses in connection with any proceeding to which Mr. Erickson or Contractor is not a party, Mr. Erickson shall be indemnified against all expenses and Losses actually and reasonably incurred by him or on his behalf in connection therewith.  The failure by Mr. Erickson or Contractor to notify ARAH of a claim for indemnification within any particular period of time will not relieve ARAH from any liability or obligation which ARAH may have to Mr. Erickson or Contractor, provided that if ARAH can establish that such failure to notify it in a timely manner resulted in actual prejudice to it, then it will be relieved from liability only to the extent of such actual prejudice.  Costs and expenses incurred by Contractor or Mr. Erickson in connection with any matter subject to indemnity in this paragraph (including attorneys' fees) shall be paid by ARAH in advance of the final disposition of such matter upon receipt by ARAH of: (i) a written request for payment; (ii) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of Contractor to repay the amounts so paid if it shall ultimately be determined that Contractor is not entitled to be indemnified by ARAH under this Agreement.  THE PARTIES RECOGNIZE THAT THE PROVISIONS OF THIS PARAGRAPH 19 MAY RELIEVE MR. ERICKSON AND CONTRACTOR FROM LIABILITIES, OBLIGATIONS, DUTIES, CLAIMS, ACCOUNTS AND CAUSES OF ACTION ARISING 

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OR TO ARISE OUT OF ANY ORDINARY NEGLIGENCE BY MR. ERICKSON AND/OR CONTRACTOR, AND MR. ERICKSON AND/OR CONTRACTOR, AS APPLICABLE, SHALL BE ENTITLED TO INDEMNIFICATION FROM ARAH IN RESPECT OF ACTS OR OMISSIONS THAT MAY GIVE RISE TO SUCH NEGLIGENCE.

20.    ARAH will promptly reimburse Contractor for reasonable legal fees incurred by Contractor or Mr. Erickson in connection with the negotiation of this Agreement, up to a cap of $50,000.  Such reimbursement shall be paid by ARAH no later than ten (10) days following Contractor’s submission to ARAH of a copy of a summary invoice for such services. 

21.    Mr. Erickson is an intended third party beneficiary of this Agreement, having the right to enforce the provisions of paragraphs 14 and 19.
 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and first above written.

ARAH:

AMERICAN RENAL ASSOCIATES HOLDINGS, INC.
            

By:  \s\ Joseph A. Carlucci_____________                            
Name:    Joseph A. Carlucci
Chief Executive Officer                

CONTRACTOR:
            
ECG VENTURES, INC.

By:  \s\ Thomas W. Erickson___________                            
Name:    Thomas W. Erickson
Chief Executive Officer

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SCHEDULE A
TO INDEPENDENT CONTRACTOR’S AGREEMENT

Description of Services:

During the Term of this Agreement, Contractor shall make Mr. Erickson available to serve ARAH as a non-employee senior advisor (in addition to continuing to serve ARAH as a non-employee director). 

Duties:

During the Term of this Agreement, Contractor shall make Mr. Erickson available on a non-exclusive basis to provide general strategic and management consulting services (excluding, for the avoidance of doubt, accounting, compliance and financial services or advice) to ARAH, including to ARAH’s Chief Executive Officer, with Mr. Erickson reporting to ARAH’s Board of Directors (or any committee thereof designated for such purpose).  Other than for the Permitted Activities (defined below), in Mr. Erickson’s performance of these responsibilities, Mr. Erickson shall devote his sufficient business time and attention to the performance of his duties under this Agreement.  Contractor shall make Mr. Erickson available to perform his obligations under this Agreement for substantially full-time (but non-exclusive) services during the Term, including spending 3-4 days/week on average onsite at ARAH’s facilities and/or traveling on business for ARAH, in each case, at such times and in such locations as Contractor, in its reasonable judgment, shall determine to be most appropriate for the performance of its duties hereunder, in consultation with ARAH.  For purposes of this Agreement, “Permitted Activities” shall consist of a reasonable amount of time and attention devoted to (i) Mr. Erickson’s continued service on ARAH’s board of directors; (ii) Mr. Erickson’s services on other boards of directors; (iii) Mr. Erickson’s personal investments; and (iv) service with respect to charitable, not-for-profit or community organizations.

6ex_157205.htm

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”) is dated as of September 5, 2019 by and among NeuroClear Technologies, Inc., a Delaware corporation (the “Company”), each of the purchasers identified on the signature pages hereto and such purchasers’ respective successors and assigns (individually, a “Purchaser” and collectively, the “Purchasers”) and, solely with respect to Section 3.03 and Article IV, BioSig Technologies, Inc. a Delaware corporation (the “Parent”).

 

The parties hereto agree as follows:

 

Article I.     

Purchase and Sale of COMMON Stock 

 

Section 1.01     Purchase and Sale of Stock. Upon the following terms and conditions, the Company shall issue and sell at the Closing (as defined below), and the Purchasers, severally and not jointly, agree to purchase at the Closing, an aggregate of up to $160,000 of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), with an aggregate number of shares of Common Stock for each Purchaser equal to that number of shares as is set forth on each such Purchaser’s signature page hereto (collectively, the “Shares”), at a price per share equal to $5.00 (the “Per Share Purchase Price,” and such amounts in the aggregate, the “Purchase Price”). The Company and the Purchasers are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities registration afforded by Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”).

 

Section 1.02     Closing.

 

(a)     On the closing date (the “Closing Date”), upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell at the closing (the “Closing”), and each Purchaser, severally and not jointly, agree to purchase at the Closing, the number of Shares set forth on each such Purchaser’s signature page hereto for an aggregate subscription price equal to such number of Shares multiplied by the Per Share Purchase Price (as to each Purchaser, the “Subscription Amount”). Each Purchaser purchasing Shares on the Closing Date shall deliver to the Company such Purchaser’s Subscription Amount by wire transfer of immediately available funds in accordance with the Company’s written wire instructions, and the Company shall deliver to each Purchaser its Shares deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 1.03 and 1.04, the Closing shall occur at the offices of Haynes and Boone, LLP, 30 Rockefeller Plaza, 26th Floor, New York, New York 10112 or such other location as the parties shall mutually agree. Notwithstanding anything herein to the contrary, the Closing Date shall occur on or before September 5, 2019; provided, however, that such date may be extended by the Company, without notice, for up to 60-days (the “Termination Date”).

 

(b) If the Closing is not held on or before the Termination Date, the Company shall cause all subscription documents and funds to be returned, without interest or deduction, to each prospective Purchaser. The Company shall also cause any subscription documents or funds received following the Closing to be returned, without interest or deduction, to each applicable prospective Purchaser. Notwithstanding the foregoing, the Company in its sole discretion may elect not to sell to any Person any or all of the Shares requested to be purchased hereunder, provided that the Company causes all corresponding subscription documents and funds received from such Person to be promptly returned.

 

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Section 1.03     Deliveries.

 

(a)     On or prior to the Closing, the Company shall deliver or cause to be delivered to each Purchaser purchasing the shares of Common Stock on the Closing Date each of the following:

 

(i)     this Agreement duly executed by the Company;

 

(ii)     evidence of the issuance of the Shares in “book entry” form.

 

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

 

(i)     this Agreement duly executed by such Purchaser; and

 

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

 

Section 1.04     Closing Conditions.

 

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

 

(i)     the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate in all material respects as of such date);

 

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

 

(iii)     the delivery by each Purchaser of the items set forth in Section 1.03(b) of this Agreement.

 

 

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

 

(i)     the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate in all material respects as of such date);

 

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

 

(iii)     the delivery by the Company of the items set forth in Section 1.03(a) of this Agreement.

 

Article II.     

Representations and Warranties 

 

Section 2.01     Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchasers, as of the date hereof, as follows:

 

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(a)     Organization, Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have material adverse effect on the business, operations, assets, properties, prospects or financial condition of the Company, and/or any condition, circumstance, or situation that would prohibit or otherwise interfere with the ability of the Company to perform any of its obligations under this Agreement in any material respect (each, a “Material Adverse Effect”).

 

(b)     Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement and to issue and sell the Shares in accordance with the terms hereof and otherwise carry out its obligations hereunder. The execution, delivery and performance of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required. This Agreement has been duly executed and delivered by the Company. This Agreement constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(c)     Issuance of Securities. The Shares to be issued at the Closing have been duly authorized by all necessary corporate action and the Shares, when paid for or issued in accordance with the terms hereof, shall be validly issued and outstanding, fully paid and nonassessable.

 

(d)     No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated herein do not and will not (i) conflict with or violate any provision of the Company’s Certificate of Incorporation or Bylaws, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which it or its properties or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property of the Company under any agreement or any commitment to which the Company is a party or by which the Company is bound or by which any of its properties or assets are bound or (iv) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or by which any property or asset of the Company are bound or affected, except, in all cases other than violations pursuant to clause (i) above, for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

 

Section 2.02     Representations and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations and warranties to the Company with respect solely to itself and not with respect to any other Purchaser:

 

(a)     Organization and Standing of the Purchasers. If the Purchaser is an entity, such Purchaser is a corporation, limited liability company or partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization.

 

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(b)     Authorization and Power. Each Purchaser has the requisite power and authority to enter into and perform this Agreement and to purchase the Shares being sold to such Purchaser hereunder. This Agreement has been duly authorized, executed and delivered by such Purchaser and constitutes, or shall constitute when executed and delivered, a valid and binding obligation of such Purchaser enforceable against such Purchaser in accordance with the terms thereof, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(c)     Purchase for Own Account. Each Purchaser is acquiring the Shares solely for its own account and not with a view to or for sale in connection with distribution. Each Purchaser does not have a present intention to sell the Shares, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of the Shares to or through any person or entity. Each Purchaser acknowledges that it is able to bear the financial risks associated with an investment in the Shares and that it has been given full access to such records of the Company and to the officers of the Company and received such information as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its investment in the Company.

 

(d)     Status of Purchasers. Such Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and such Purchaser is not a broker-dealer.

 

(e)     Opportunities for Additional Information. Each Purchaser acknowledges that such Purchaser has had the opportunity to ask questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s personal knowledge of the Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser, and such Purchaser desires to invest in the Company. Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the Company’s representations and warranties contained in this Agreement.

 

(f)     No General Solicitation. Each Purchaser acknowledges that the Shares were not offered to such Purchaser by means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or radio or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing means of communications.

 

(g)     Restricted Securities. Such Purchaser understands that the Shares must be held indefinitely unless they are registered under the Securities Act or an exemption from registration is available.

 

(h)     General. Such Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption from the registration requirement of federal and state securities laws and the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Shares.

 

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Article III.     

OTHER AGREEMENTS OF THE PARTIES 

 

Section 3.01     Transfer Restrictions.

 

(a)     The Purchasers covenant that the Shares will only be disposed of pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Shares other than pursuant to an effective registration statement, the Company may require the transferor to provide the Company with an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

 

(b)     The Purchasers agree to the imprinting of the following legend on any certificate evidencing any of the Shares and to the notation of such legend in the stock books of the Company (in addition to any legend required by applicable state securities or “blue sky” laws):

 

THESE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

Section 3.02     Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchasers.

 

Section 3.03     Exchange Right. To the extent that (i) the Company is not listed on a U.S. national securities exchange by October 31, 2020, or (ii) a Change of Control (as defined below) occurs, whichever is earlier, each Purchaser shall have the right to exchange all or any portion of its Shares into the common stock of the Parent at an exchange ratio of 0.9 shares of the parent common stock for each one Share. Each Purchaser may exercise the foregoing exchange right, at its sole election, by sending a written notice to the Company and the Parent by not later than 3 p.m. local time in New York City, New York on December 31, 2020. Each Purchaser acknowledges and agrees that by requesting to exercise its exchange right, it is deemed to remake the representations, warranties and agreements set forth in Section 2.02 and Section 3.01 with respect to the acquisition of the Parent common stock mutatis mutandis. If the aggregate number of shares of Parent common stock issued to a Purchaser results in a fractional share being issuance, such fraction of a share shall be rounded up to the nearest whole number. For the purpose of this Section 3.03, a “Change of Control” means (a) any sale, lease or transfer or series of sales, leases or transfers of all or substantially all of the assets of the Company; (b) any sale, transfer or issuance (or series of sales, transfers or issuances) of capital stock by the Company or the holders of Common Stock (or other voting stock of the Company) that results in the inability of the holders of Common Stock (or other voting stock of the Company) immediately prior to such sale, transfer or issuance to designate or elect a majority of the board of directors (or its equivalent) of the Company; or (c) any merger, consolidation, recapitalization or reorganization of the Company with or into another person (whether or not the

 

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Company is the surviving corporation) that results in the inability of the holders of Common Stock (or other voting stock of the Company) immediately prior to such merger, consolidation, recapitalization or reorganization to designate or elect a majority of the board of directors (or its equivalent) of the resulting entity.

 

Article IV.     

Miscellaneous 

 

Section 4.01     Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before the Termination Date.

 

Section 4.02     Fees and Expenses. Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all stamp or other similar taxes and duties levied in connection with issuance of the Shares or Parent common stock pursuant hereto.

 

Section 4.03     Specific Enforcement, Consent to Jurisdiction.

 

(a)     The Parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.

 

(b)     Each Party (i) hereby irrevocably submits to the jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in New York County for the purposes of any suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Each Party consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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 in this Section 4.03 shall affect or limit any right to serve process in any other manner permitted by law.

 

Section 4.04     Entire Agreement; Amendment. This Agreement (including all exhibits and schedules hereto) contains the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein, no Party hereto makes any representations, warranty, covenant or undertaking with respect to such matters and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written instrument signed by the Company, the Parent and the Purchasers Holding a majority of the Shares then outstanding and held by Purchasers. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Shares then outstanding.

 

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Section 4.05     Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, e-mail or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

(a)     If to the Company:

 

NeuroClear Technologies, Inc.

c/o BioSig Technologies, Inc.

12424 Wilshire Blvd., Suite 745

Los Angeles, California

Attention: Kenneth Londoner

Email: klondoner@biosigtech.com

with copies to:

 

Haynes and Boone, LLP

30 Rockefeller Plaza, 26th Floor

New York, New York 10112

Attention: Rick A. Werner, Esq.

Email: rick.werner@haynesboone.com

Fax No.: (212) 884-8234

 

(b)     If to any Purchaser at the address of such Purchaser set forth on the signature pages hereto.

 

Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto.

 

Section 4.06     Waivers. No waiver by a party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

Section 4.07     Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

Section 4.08     Successors and Assigns; Restrictions on Transfer. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor Parent may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchasers.

 

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Section 4.09     No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section 4.10     Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted. Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all rights to a trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section 4.11     Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

Section 4.12     Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement and such provision shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.

 

Section 4.13     Further Assurances. From and after the date of this Agreement, upon the request of any Purchaser or the Company, each of the Company and the Purchasers shall execute and deliver such instrument, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

Section 4.14     Like Treatment of Purchasers. No consideration shall be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is also offered to all of the Purchasers then holding Shares. Further, the Company shall not make any payments or issue any securities to the Purchasers in amounts which are disproportionate to the respective numbers of outstanding Shares held by any Purchasers at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of the Shares or otherwise.

 

[SIGNATURE PAGES FOLLOWS]

 

 

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Company Signature Page

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized signatory as of the date first above written.

 

 

NEUROCLEAR TECHNOLOGIES, INC.

 

 

By:___________________________________

     Name: Kenneth Londoner

     Title: Chief Executive Officer

 

 

BIOSIG TECHNOLOGIES, INC.,

with respect to 3.03 and Article IV

 

 

By:___________________________________

     Name: Kenneth Londoner

     Title: Executive Chairman

 

 

 

 

 

Purchaser Signature Page

 

By its execution and delivery of this signature page, the undersigned Purchaser hereby joins in and agrees to be bound by the terms and conditions of the Securities Purchase Agreement dated as of September 5, 2019 (the “Purchase Agreement”) by and among NeuroClear Technologies, Inc. and the Purchasers (as defined therein), as to the number of shares of Common Stock set forth below, and authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

 

Name of Purchaser:                                                    

 

Signature:                                                        

 

If Entity:      Name                                         

 

          Title                                         

 

Address:                                                   

 

Telephone No.: ________________________ 

 

Email Address:                                              

 

                    Number of Shares:                               

 

                    Aggregate Purchase Price: $                         

 

                    SSN/EIN:                                    

 

Delivery Instructions (if different than above):

 

c/o: __________________________________________________________

 

Address: ______________________________________________________

 

______________________________________________________________

 

Telephone No.: _________________________________________________

 

AGREED AND ACCEPTED BY NEUROCLEAR TECHNOLOGIES, INC.

 

 

 

By: __________________________________________          Date:                          

 

Name:                                         Title:

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