Document:

Exhibit 10.1.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is entered into by and between Sameer Harish (the “Executive”),
and Ruthigen, Inc., a Delaware corporation (the “Corporation”) effective as of June 24, 2014 (the “Effective
Date”);

 

RECITALS

 

WHEREAS, prior
to the date hereof, the Executive has been employed by the Corporation pursuant to an offer letter dated January 29, 2013 as amended
on May 23, 2013; and

 

WHEREAS, the
board of directors of the Corporation desires to continue to employ the Executive as its Chief Financial Officer and the Executive
desires to continue to be so employed by the Corporation on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and promises of the parties herein, the receipt and sufficiency
of which are hereby acknowledged by each of the parties, the Corporation and the Executive hereto agree as follows:

 

1.           Employment
and Duties.

 

1.1           Position.
On the terms and subject to the conditions set forth herein, the Corporation agrees to continue to employ the Executive as its
Chief Financial Officer for the Period of Employment (as defined in Section 2). The Executive does hereby accept and agree to such
continued employment, on the terms and conditions expressly set forth in this Agreement. At the request of the Board and without
additional compensation, the Executive shall also serve as an officer and/or director of any or all of the subsidiaries of the
Corporation.

 

1.2           Duties.
During the Period of Employment (as defined in Section 2), the Executive shall serve the Corporation as its Chief Financial Officer.
The Executive shall be responsible for the general financial management of the business and have such other duties and responsibilities
as the Board or the Corporation’s Chief Executive Officer (the “CEO”) shall designate that are consistent
with the Executive’s position as Chief Financial Officer of the Corporation. The Executive shall perform all of such duties
and responsibilities in accordance with the legal directives of the Board and the CEO in accordance with the practices and policies
of the Corporation as in effect from time to time throughout the Period of Employment (as defined in Section 2) (including, without
limitation, the Corporation’s insider trading and ethics policies, as they may change from time to time). While employed
as Chief Financial Officer of the Corporation, the Executive shall report to the CEO. Throughout the Period of Employment (as defined
in Section 2), the Executive shall not serve on the boards of directors or advisory boards of any other entity unless such service
is expressly approved by the Board.

 

    	 

    	 

    

 

1.3           No
Other Employment; Minimum Time Commitment. Throughout the Period of Employment (as defined in Section 2), the Executive
shall both (i) devote substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s
duties for the Corporation, and (ii) hold no other job. The Executive agrees that any involvement in, or any appointment to or
continuing service on the board of directors or similar body of, any corporation or other entity must be first approved in writing
by the Corporation. The foregoing provisions of this Section 1.3 shall not prevent the Executive from engaging in charitable activities
and community affairs, and managing Executive's personal investments and affairs; provided, however, that the activities shall
be limited by Executive so as not to materially interfere, individually or in the aggregate, with the performance of Executive's
duties and responsibilities hereunder and any investment in a competing business must comply with Section 7(b). The Executive agrees
that, as of the Effective Date, Exhibit A to this Agreement sets forth a complete and accurate description of (i) any direct
involvement of the Executive in any other corporation or business that reasonably could be construed as falling outside the scope
of the foregoing permitted investments and involvement, and (ii) any board of directors or similar body of any corporation or other
entity on which the Executive is a member. The Corporation may require the Executive to resign from membership on any board or
similar body of any entity, on which he may now or in the future serve, if the Corporation determines that the Executive’s
membership on such board or similar body interferes (interference shall include, without limitation, giving rise to conflicts or
competitive activity) with the performance of the Executive’s duties hereunder.

 

1.4           No
Breach of Contract. The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement
by the Executive and the Corporation, and the performance by the Executive of the Executive’s duties hereunder shall not
constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or
otherwise bound; (ii) the Executive has no information (including, without limitation, confidential information and trade secrets)
of any other person or entity which the Executive is not legally and contractually free to disclose to the Corporation; and (iii)
the Executive is not bound by any confidentiality, trade secret or similar agreement with any other person or entity.

 

1.5           Location.
The Executive acknowledges that the Corporation’s principal executive offices are currently located in Santa Rosa, California.
The Executive’s principal place of employment shall be the Corporation’s principal executive offices, as they may be
moved from time to time at the discretion of the Corporation. The Executive agrees that the Executive will be regularly present
at the Corporation’s principal executive offices and that the Executive may be required to travel from time to time in the
course of performing the Executive’s duties for the Corporation.

 

2.           Period
of Employment.

 

The “Period
of Employment” under this Agreement shall commence on the Effective Date, and shall continue in full force and effect
until the date of Executive’s termination pursuant to Section 5. This Agreement shall govern the terms of Executive’s
employment hereunder on and after the Effective Date.

 

3.           Compensation.

 

3.1           Base
Salary. As of the Effective Date and during the Period of Employment, the Corporation shall pay to the Executive a base
salary at the rate of $225,000 per year, subject to increase (but not decrease) by the Board (the “Base Salary”).
The Executive’s Base Salary shall be paid in accordance with the Corporation’s regular payroll practices in effect
from time to time, but not less frequently than in monthly installments.

 

3.2           Stock-based
Incentive Compensation. The Executive shall be eligible to participate in the Corporation’s stock-based incentive
compensation plan or plans pursuant to the terms and conditions of such plan or plans. The Corporation may, in its sole discretion,
grant stock options and/or make other stock-based awards to the Executive. Any such stock-based incentive compensation made to
the Executive shall include the following provision: notwithstanding any provisions to the contrary in this Agreement or any other
agreement or plan, if the Corporation consummates a Change of Control (as defined herein), any and all stock options, stock appreciation
rights, restricted stock awards, and similar equity and equity-based awards granted by the Corporation to the Executive that are
then-outstanding but unvested shall become fully vested and exercisable immediately prior to and subject to the consummation of
the Change of Control.

 

    	2

    	 

    

 

3.3           Bonus
and Incentive Plans. The Executive shall be eligible to participate in the Corporation’s bonus plans and incentive
plans as established from time to time by the Corporation. Any bonus shall be paid no later than June 15 of the fiscal year following
the fiscal year with respect to which such bonus is earned.

 

4.           Benefits.

 

4.1           Health
and Welfare. During the Period of Employment, the Executive shall be entitled to participate in all employee pension and
welfare benefit plans and programs made available by the Corporation to the Corporation’s senior-level employees generally,
as such plans or programs may be in effect from time to time.

 

4.2           Reimbursement
of Business Expenses. The Executive is authorized to incur reasonable expenses in carrying out the Executive’s duties
for the Corporation under this Agreement and entitled to reimbursement for all such expenses the Executive incurs during the Period
of Employment in connection with carrying out the Executive’s duties for the Corporation, subject to the Corporation’s
reasonable expense reimbursement policies in effect from time to time. The Corporation shall reimburse the Executive to the extent
required by the preceding sentence.

 

4.3           Vacation
and Other Leave. During the Period of Employment, the Executive shall accrue and be entitled to take paid vacation in accordance
with the Corporation’s standard vacation policies in effect from time to time, including the Corporation’s policies
regarding vacation accruals. The Executive shall also be entitled to all other holiday and leave pay generally available to all
other employees of the Corporation.

 

5.           Termination.

 

5.1           Termination
by the Corporation. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated
at any time by the Corporation: (i) with Cause (as defined in Section 5.5), or (ii) without Cause, or (iii) in the event of the
Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive has a Disability (as defined
in Section 5.5).

 

5.2           Termination
by the Executive. The Executive’s employment by the Corporation, and the Period of Employment, may be terminated
at any time by the Executive, on no less than sixty (60) days’ prior written notice to the Corporation. Any termination by
the Executive for Good Reason (as defined in Section 5.5) shall be communicated by a Notice of Termination to the Corporation.
For purposes of this Agreement, in the case of a notice given by the Executive to the Corporation, a “Notice of Termination”
means a written notice which (i) is communicated to the Corporation within ninety (90) days of the initial existence of the condition
giving rise to the Executive’s right to terminate for Good Reason, (ii) indicates the specific termination provision in this
Agreement relied upon, (iii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated, (iv) waives the Executive’s right to terminate for
Good Reason if the Corporation within thirty (30) days of such notice cures the condition otherwise giving rise to the Executive’s
right to terminate for Good Reason, and, (v) if the termination date is other than the date that is thirty-one (31) days after
the communication of such notice, specifies the termination date (which date shall be not more than forty-five (45) days after
the giving of such notice).

 

    	3

    	 

    

 

5.3           Benefits
Upon Termination. If the Executive’s employment by the Corporation is terminated during the Period of Employment
for any reason by the Corporation or by the Executive, the Corporation shall have no further obligation to make or provide to the
Executive, and the Executive shall have no further right to receive or obtain from the Corporation, any payments or benefits except:

 

(a)          the
Corporation shall pay the Executive (or, in the event of his death, the Executive’s estate) any Accrued Obligations (as defined
in Section 5.5); and

 

(b)          if,
during the Period of Employment, the Executive’s employment is terminated by the Corporation without Cause or by the Executive
for Good Reason (as defined in Section 5.5) (and, in each case, other than due to either the Executive’s death, or a good
faith determination by the Board that the Executive has a Disability):

 

(i)          the
Corporation shall, subject to the conditions set forth in Section 5.3(c) and the constraints set forth in Section 5.8, also pay
the Executive a severance benefit equal to eighteen (18) times the average monthly Base Salary paid to the Executive over the twelve
(12) whole months preceding the month in which the termination of the Executive’s employment occurs (or, if the Period of
Employment has not been in effect for twelve (12) whole months preceding the month in which the termination of the Executive’s
employment occurs, the average monthly Base Salary for this purpose shall be determined based on the average monthly Base Salary
paid to the Executive over the whole months in the Period of Employment occurring prior to the month in which the termination of
the Executive’s employment occurs). Subject to the conditions set forth in Section 5.3(c), such amount shall be paid to the
Executive (without interest) in a lump sum amount on the Corporation’s first regular payroll date following the date the
Release is effective and irrevocable, provided, that, if the period set forth in Section 5.4(a) in which the Release must be effective
and irrevocable begins in one tax year and ends in a later tax year, the severance benefit will be paid on the Corporation’s
first regular payroll date following the date the Release is effective and irrevocable that occurs in the later tax year;

 

(ii)         the
Corporation shall, subject to the conditions set forth in Section 5.3(c), pay as a severance benefit one hundred percent (100%)
of the Executive’s premiums under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for the
same or reasonably equivalent medical coverage, as in effect on the date the Executive’s employment terminated, for a period
not to exceed the lesser of one year following the date of such termination or until the Executive becomes eligible for medical
insurance coverage provided by another employer; and

 

    	4

    	 

    

 

(iii)        as
of the date the Executive’s employment terminates, any and all stock options, stock appreciation rights, restricted stock
awards, and similar equity and equity-based awards granted by the Corporation to the Executive outstanding immediately prior to
such termination of employment shall thereupon be deemed fully vested and shall be exercisable for a period of no less than twelve
(12) months thereafter or until the stated expiration date for such option or award at the end of its maximum term, whichever is
earlier; provided, however, that this Section 5.3(b)(iii) shall not affect any right of the Corporation to terminate such option
or award in connection with a Corporate Transaction (as defined in the Ruthigen, Inc. 2013 Employee, Director, and Consultant Equity
Incentive Plan) of the Corporation or similar event to the extent such right exists under the provisions of any agreement evidencing
such option or award. Notwithstanding the foregoing in the event of a termination of Executive’s employment solely for Good
Reason pursuant to Section 5.5(d)(ii) prior to a Change of Control, only the restricted stock units granted by the Corporation
to the Executive on May 12, 2014 shall be deemed fully vested as of the termination date and all other equity and equity-based
awards granted by the Corporation to the Executive prior to or after the date of this Agreement shall be governed by the terms
set forth in such award agreements upon a termination of employment.

 

(c)          Any
obligation of the Corporation pursuant to Section 5.3(b) to pay a severance benefit in the circumstances described therein is further
subject to the following two conditions precedent: (i) such severance obligation shall be paid only if the Executive has remained
in compliance with all of the provisions of Section 5.6, and Sections 7 through 12, and such obligation shall terminate immediately
if the Executive is for any reason not in compliance with one or more of the provisions of Section 5.6, and Sections 7 through
12; and (ii) the Executive’s satisfaction of the release obligations set forth in Section 5.4. For purposes of the preceding
sentence, if the Executive is not in compliance with one or more provisions of Section 5.6, and Sections 7 through 12, and a cure
is reasonably possible in the circumstances, the Executive will not be deemed to have breached such provision(s) unless the Executive
is given notice and a reasonable opportunity (in no case shall more than a 10-day cure period be required) to cure such breach
and such breach is not cured within such time period. The parties agree that a cure will not be reasonably possible in all circumstances
including, without limitation, a material breach of confidentiality or similar occurrence.

 

(d)          Except
as expressly provided herein, the foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt
of benefits otherwise due to terminated employees under group insurance coverage consistent with the terms of the applicable Corporation
welfare benefit plan; (ii) the Executive’s rights under COBRA to continue participation in medical, dental, hospitalization
and life insurance coverage; (iii) the Executive’s receipt of benefits otherwise due in accordance with the terms of the
Corporation’s 401(k) plan (if any); or (iv) any rights that the Executive may have under and with respect to a stock option,
stock appreciation right, restricted stock award, or similar equity or equity-based award, to the extent that such award was granted
before the date that the Executive’s employment by the Corporation terminates and to the extent expressly provided in the
written agreement evidencing such award.

 

5.4         Release;
Exclusive Remedy.

 

(a)          This
Section 5.4 shall apply notwithstanding anything else contained in this Agreement to the contrary. As a condition precedent to
any Corporation obligation to the Executive pursuant to Section 5.3(b), the Executive shall provide the Corporation with a valid,
written general release of claims (the “Release”) substantially in the form attached hereto as Exhibit C on
or before the period provided for in the Release pursuant to applicable law, and such Release shall have not been revoked by the
Executive pursuant to any revocation rights afforded by applicable law. The Corporation shall have no obligation to make any payment
to the Executive pursuant to Section 5.3(b) unless and until the Release contemplated by this Section 5.4 becomes irrevocable by
the Executive in accordance with all applicable laws, rules, and regulations.

 

    	5

    	 

    

 

(b)          The
Executive agrees that the payments contemplated by Section 5.3 shall constitute the exclusive and sole remedy for any termination
of his employment and the Executive covenants not to assert or to pursue any other remedies, at law or in equity, with respect
to any termination of employment. The Corporation and Executive acknowledge and agree that there is no duty of the Executive to
mitigate damages under this Agreement. All amounts paid to the Executive pursuant to Section 5.3 shall be paid without regard to
whether the Executive has taken or takes actions to mitigate damages.

 

5.5         Certain
Defined Terms.

 

(a)          As
used herein, “Accrued Obligations” means:

 

(i)          any
Base Salary that has accrued but has not yet been paid to the Executive (including accrued and unpaid vacation time) through the
Period of Employment; and

 

(ii)         any
reimbursement due to the Executive pursuant to Section 4.2 for expenses incurred by the Executive through the Period of Employment.

 

(b)          As
used herein, “Cause” shall mean the reasonable and good faith determination by a majority of the Board based
on its reasonable belief at the time, that, during the Period of Employment, any of the following events or contingencies exists
or has occurred:

 

(i)          the
Executive is convicted of, or has pled guilty to, a felony (under the laws of the United States or any state thereof); or

 

(ii)         the
Executive has engaged in acts of fraud, material dishonesty or other acts of willful misconduct in the course of his duties hereunder,
unless the Executive believed in good faith that such acts were in the interests of the Corporation; or

 

(iii)        the
Executive willfully and repeatedly fails to perform or uphold his duties under this Agreement; or

 

(iv)        the
Executive willfully fails to comply with reasonable directives of the Board which are communicated to him in writing.

 

(c)          As
used herein, “Disability” shall mean a physical or mental impairment which substantially limits a major life
activity of the Executive and which renders the Executive unable to perform the essential functions of the Executive’s position,
even with reasonable accommodation which does not impose an undue hardship on the Corporation, for ninety (90) days in any consecutive
twelve (12) month period, but only if the Executive is considered to be disabled within the meaning of Treasury Regulation section
1.409A-3(i)(4). Without limiting the circumstances in which the Executive may be determined to be disabled as defined in Treasury
Regulation section 1.409A-3(i)(4), the Executive will be presumed to be disabled if determined to be totally disabled by the Social
Security Administration or if determined to be disabled in accordance with a disability insurance program, provided the definition
of disability applied under such disability insurance program complies with the requirements of Treasury Regulation section 1.409A-3(i)(4).

 

(d)          As
used herein, “Good Reason” shall mean the occurrence of one or more of the following without the Executive’s
written consent:

 

    	6

    	 

    

 

(i)          the
assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities,
and status (including titles and reporting requirements) as Chief Financial Officer of the Corporation, or a material reduction
or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities, other than an insubstantial
and inadvertent act that is remedied by the Corporation promptly after receipt of notice thereof given by the Executive; or

 

(ii)         a
reduction by the Corporation of 10% or more over a period of less than 12 months in the Executive’s Base Salary as in effect
on the Effective Date or as the same shall be increased from time to time, or the Corporation otherwise materially fails to satisfy
its compensation obligations to the Executive under this Agreement, after notice by the Executive and a reasonable opportunity
to cure; or

 

(iii)        the
failure of the Corporation to obtain a satisfactory agreement from any successor to the Corporation to assume and agree to perform
this Agreement.

 

provided, however, that none
of the events specified in clause (i), (ii), or (iii) above shall constitute Good Reason unless the Executive shall have provided
to the Corporation a Notice of Termination pursuant to Section 5.2.

 

(e)          
“Initial Public Offering” means the initial public offering of the Corporation registered on Form S-1 (or any
successor form under the Securities Act of 1933, as amended).

 

(f)          For
the purposes of this Agreement, a “Change of Control” means the occurrence of any of the following:

 

(i)          a
sale, lease or other disposition of all or substantially all of the assets of the Corporation and its subsidiaries, taken as a
whole;

 

(ii)         any
consolidation or merger of the Corporation with or into any other corporation or other person, or any other corporate reorganization
or transaction (including the acquisition of capital stock of the Corporation), whether or not the Corporation is a party thereto,
in which the stockholders of the Corporation immediately prior to such consolidation, merger, reorganization or transaction, own
capital stock and either:

 

		a.	represent directly, or indirectly through one or more entities, less than fifty percent (50%) of
the economic interests in or voting power of the Corporation or other surviving entity immediately after such consolidation, merger,
reorganization or transaction, or

 

		b.	do not directly, or indirectly through one or more entities, have the power to elect a majority
of the entire board of directors of the Corporation or other surviving entity immediately after such consolidation, merger, reorganization
or transaction; or

 

(iii)        any
stock sale or other transaction or series of related transactions, whether or not the Corporation is a party thereto, after giving
effect to which in excess of fifty percent (50%) of the Corporation’s voting power is owned directly, or indirectly though
one or more entities, by any person and its “affiliates” or “associates” (as such terms are defined in
the rules adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended); or

 

    	7

    	 

    

 

(iv)        a
change in the composition of the board of directors of the Corporation, as a result of which fewer than a majority of the directors
are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Corporation
as of March 26, 2014, or (B) are elected, or nominated for election, to the board of directors of the Corporation with the affirmative
votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors
to the Corporation).

 

(v)         “Change
of Control” shall be interpreted, if applicable, in a manner, and limited to the extent necessary, so that it will not cause
adverse tax consequences under Section 409A (as defined herein).

 

but excluding, in any case referred to in clause (iii) or (iv)
of this definition, the Initial Public Offering, or any bona fide primary or secondary public offering following the occurrence
of the Initial Public Offering.

 

(g)          For
purposes of the definition of “Change of Control”, the following definitions shall be applicable:

 

(i)          The
term “person” shall mean any individual, corporation or other entity and any group as such term is used in Section
13(d) (3) or 14(d) (2) of the Exchange Act.

 

(ii)         Any
person shall be deemed to be the beneficial owner of any shares of capital stock of the Corporation:

 

		a.	which that person owns directly whether or not of record, or

 

		b.	which that person has the right to acquire pursuant to any agreement or understanding or upon exercise
of conversion rights, warrants, or options, or otherwise, or

 

		c.	which are beneficially owned, directly or indirectly (including shares deemed owned through application
of clause (B) above, by an “affiliate” or “associate” (as defined in the rules of the Securities and Exchange
Commission under the Securities Act of 1933, as amended) of that person, or

 

		d.	which are beneficially owned, directly or indirectly (including shares deemed owned through application
of clause (B) above), by any other person with which that person or his “affiliate” or “associate” (defined
as aforesaid) has any agreement, arrangement, or understanding for the purpose of acquiring, holding, voting or disposing of capital
stock of the Corporation.

 

(iii)        The
outstanding shares of capital stock of the Corporation shall include shares deemed owned through application of clause (ii) (b),
(c), and (d) above, but shall not include any other shares which may be issuable pursuant to any agreement or upon exercise of
conversion rights, warrants or options, or otherwise, but which are not actually outstanding.

 

    	8

    	 

    

 

5.6         Resignations.
Upon or promptly following any termination of Executive’s employment with the Corporation, the Executive agrees to resign,
as of the date of such termination, from (i) each and every board of directors (or similar body, as the case may be) of each of
its subsidiaries on which the Executive may then serve (and any committees thereof), and (ii) each and every office of the Corporation
and each of its subsidiaries that the Executive may then hold, and all positions that he may have previously held with the Corporation
and any of its subsidiaries.

 

5.7         Excise
Tax Gross-Up. During and after the Period of Employment, the Executive shall be entitled to the excise tax protections
set forth in Exhibit B hereto.

 

5.8         Section
409A of the Internal Revenue Code.

 

(a)          This
Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986 (“Section 409A”) and
shall be construed and interpreted consistent with that intent. In the event that any payment or benefit payable under Section
5.3 of this Agreement is not compliant with Section 409A and any taxes, penalties or interest are imposed on the Executive under
Section 409A as a result of such noncompliance (the “Section 409A Penalties”), the Corporation shall put the
Executive in an after tax economic position equivalent to the position the Executive would have been in without the imposition
of such Section 409A Penalties. The Executive shall notify the Corporation in writing of any claim by the Internal Revenue Service
or state tax authorities that, if successful, would require the payment of any such Section 409A Penalties or related state tax
statutes. The Executive’s right to be put in an equivalent after tax economic position is subject to the Executive providing
such notification no later than ten business days after Executive is informed in writing of such claim. If the Corporation desires
to contest such claim, Executive shall (i) cooperate with the Corporation in good faith in order to effectively contest such claim
and (ii) permit the Corporation to participate in any proceedings relating to such claim. The Corporation shall control all proceedings
taken in connection with such contest; provided, however, that the Corporation shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest. This section shall also apply to any taxes,
penalties, or interest imposed by any state that are calculated in a manner similar to taxes, penalties, or interest imposed by
Section 409A(a)(1)(B), including those amounts imposed by the California Revenue and Taxation Code (R&TC) Sections 17501 and
24601.

 

(b)          If
and to the extent that any payment or benefit under this Agreement, or any plan or arrangement of the Corporation, is determined
by the Corporation to constitute “non-qualified deferred compensation” subject to Section 409A and is payable to the
Executive by reason of the Executive’s termination of employment, then (a) such payment or benefit shall be made or provided
to the Executive only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations
(a “Separation from Service”) and (b) if the Executive is a “specified employee” (within the meaning
of Section 409A and as determined by the Corporation), such payment or benefit shall not be made or provided before the date that
is six months after the date of the Executive’s Separation from Service (or the Executive’s earlier death). For the
purposes of clarity, the first payment thereof will include a catch-up payment covering the amount that would have otherwise been
paid to the Executive during the period between the termination of Executive’s employment and the first payment date but
for the application of this provision, and the balance of the installments (if any) will be payable in accordance with their original
schedule.

 

(c)          To
the extent any expense reimbursement or in-kind benefit is determined to be subject to Section 409A, the amount of any such expenses
eligible for reimbursement or in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement
or in-kind benefits provided in any other taxable year (except under any lifetime limit applicable to expenses for medical care),
in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive
incurred such expenses, and in no event shall any right to reimbursement or in-kind benefits be subject to liquidation or exchange
for another benefit.

 

    	9

    	 

    

 

(d)          To
the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read
in such a manner so that all payments hereunder comply with Section 409A. To the extent any payment under this Agreement may be
classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term
deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant
to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

6.           Means
and Effects of Termination.

 

Any termination of
the Executive’s employment under this Agreement shall be communicated by written notice of termination from the terminating
party to the other party. The notice of termination shall indicate the specific prevision(s) of this Agreement relied upon in effecting
the termination.

 

7.           Non-Competition.

 

The Executive acknowledges
and recognizes the highly competitive nature of the businesses of the Corporation, the amount of sensitive and confidential information
involved in the discharge of the Executive’s position with the Corporation, and the harm to the Corporation that would result
if such knowledge or expertise was disclosed or made available to a competitor. Based on that understanding, the Executive hereby
expressly agrees as follows:

 

(a)          As
a result of the particular nature of the Executive’s relationship with the Corporation, in the capacities identified earlier
in this Agreement, for the Period of Employment, the Executive hereby agrees that he will not, directly or indirectly, (i) engage
in any business for the Executive’s own account or otherwise derive any personal benefit from any business that competes
with the business of the Corporation or any of its affiliates (the Corporation and its affiliates are referred to, collectively,
as the “Company Group”), (ii) enter the employ of, or render any services to, any person engaged in any business
that competes with the business of any entity within the Company Group, (iii) acquire a financial interest in any person engaged
in any business that competes with the business of any entity within the Company Group, directly or indirectly, as an individual,
partner, member, shareholder, officer, director, principal, agent, trustee, or consultant, or (iv) interfere with business relationships
(whether formed before or after the Effective Date) between the Corporation, any of its respective affiliates or subsidiaries,
and any customers, suppliers, officers, employees, partners, members or investors of any entity within the Company Group. For purposes
of this Agreement, businesses in competition with the Company Group shall include, without limitation, businesses which any entity
within the Company Group may conduct operations, and any business which any entity within the Company Group has specific plans
to conduct operations in the future and as to which the Executive is aware of such planning, whether or not such businesses have
or have not as of that date commenced operations.

 

(b)          Notwithstanding
anything to the contrary in this Agreement, the Executive may, directly or indirectly, own, solely as an investment, securities
of any Person which are publicly traded on a national or regional stock exchange or on the over-the-counter market if the Executive
(i) is not a controlling Person of, or a member of a group that controls, such Person, and (ii) does not, directly or indirectly,
beneficially own one percent (1%) or more of any class of securities of such Person. For purposes of this Section 7(b), “Person”
shall have the meaning ascribed to such terms in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as described in Section 13(d) thereof.

 

    	10

    	 

    

 

8.           Confidentiality.

 

As a material part
of the consideration for the Corporation’s commitment to the terms of this Agreement, the Executive hereby agrees that the
Executive will not at any time (whether during or after the Executive’s employment with the Corporation), other than in the
course of the Executive’s duties hereunder, or unless compelled by lawful process after written notice to the Corporation
of such notice along with sufficient time for the Corporation to try and overturn such lawful process, disclose or use for the
Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association,
corporation or other business organization, entity or enterprise, any trade secrets, or other confidential data or information
relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial
data, financing methods, or plans of any entity within the Company Group; provided, however, that the foregoing shall
not apply to information which is generally known to the industry or the public, other than as a result of the Executive’s
breach of this covenant. The Executive further agrees that the Executive will not retain or use for his own account, at any time,
any trade names, trademark or other proprietary business designation used or owned in connection with the business of any entity
within the Company Group.

 

9.           Inventions
and Developments.

 

(a)          All
inventions, policies, systems, developments or improvements conceived, designed, implemented and/or made by the Executive, either
alone or in conjunction with others, at any time or at any place during the Period of Employment, whether or not reduced to writing
or practice during such Period of Employment, which directly or indirectly relate to the business of any entity within the Company
Group, or which were developed or made in whole or in part using the facilities and/or capital of any entity within the Company
Group, shall be the sole and exclusive property of the Company Group. The Executive shall promptly give notice to the Corporation
of any such invention, development, patent or improvement, and shall at the same time, without the need for any request by any
person or entity within the Company Group, assign all of the Executive’s rights to such invention, development, patent and/or
improvement to the Company Group. The Executive shall sign all instruments necessary for the filing and prosecution of any applications
for, or extensions or renewals of, letters patent of the United States or any foreign country that any entity in the Company Group
desires to file.

 

(b)          All
copyrightable work by the Executive during the Period of Employment that relates to the business of any entity in the Company Group
is intended to be “work made for hire” as defined in Section 101 of the Copyright Act of 1976, and shall be the property
of the Company Group. If the copyright to any such copyrightable work is not the property of the Company Group by operation of
the law, the Executive will, without further consideration, assign to the Company Group all right, title and interest in such copyrightable
work and will assist the entities in the Company Group and their nominees in every way, at the Company Group’s expense, to
secure, maintain and defend the Company Group’s benefit copyrights and any extensions and renewals thereof on any and all
such work including translations thereof in any and all countries, such work to be and to remain the property of the Company Group
whether copyrighted or not.

 

    	11

    	 

    

 

10.         Anti-Solicitation.

 

In light of the amount
of sensitive and confidential information involved in the discharge of the Executive’s duties, and the harm to the Corporation
that would result if such knowledge or expertise were disclosed or made available to a competitor, and as a reasonable step to
help protect the confidentiality of such information, the Executive promises and agrees that during the Period of Employment and
for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually or as a consultant to, or
as an employee, officer, shareholder, director or other owner or participant in any business, influence or attempt to influence
any customers, vendors, suppliers, joint venturers, associates, consultants, agents, or partners of any entity within the Company
Group, either directly or indirectly, to divert their business away from the Company Group, to any individual, partnership, firm,
corporation or other entity then in competition with the business of any entity within the Company Group, and he will not otherwise
materially interfere with any business relationship of any entity within the Company Group.

 

11.         Soliciting
Employees.

 

In light of the amount
of sensitive and confidential information involved in the discharge of the Executive’s duties, and the harm to the Corporation
that would result if such knowledge or expertise were disclosed or made available to a competitor, and as a reasonable step to
help protect the confidentiality of such information, the Executive promises and agrees that during the Period of Employment and
for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually or as a consultant to, or
as an employee, officer, shareholder, director, or other owner of or participant in any business, solicit (or assist in soliciting)
any person who is then, or any time within six (6) months prior thereto was, an employee of an entity within the Company Group,
who earned annually $25,000 or more as an employee of such entity during the last six (6) months of his or her own employment to
work for (as an employee, consultant or otherwise) any business, individual, partnership, firm, corporation, or other entity whether
or not engaged in competitive business with any entity in the Company Group.

 

12.         Return
of Property.

 

The Executive agrees
to truthfully and faithfully account for and deliver to the Corporation all property belonging to the Corporation, any other entity
in the Company Group, or any of their respective affiliates, which the Executive may receive from or on account of the Corporation,
any other entity in the Company Group, or any of their respective affiliates, and upon the termination of the Period of Employment,
or the Corporation’s demand, the Executive shall immediately deliver to the Corporation all such property belonging to the
Corporation, any other entity in the Company Group, or any of their respective affiliates.

 

13.         Withholding
Taxes.

 

Notwithstanding anything
else herein to the contrary, the Corporation may withhold (or cause there to be withheld, as the case may be) from any amounts
otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other taxes as
may be required to be withheld pursuant to any applicable law or regulation.

 

    	12

    	 

    

 

14.         Cooperation
in Litigation.

 

The Executive agrees
that, during the Period of Employment and after the termination of Executive’s employment he will reasonably cooperate with
the Corporation, subject to his reasonable personal and business schedules, in any litigation which arises out of events occurring
prior to the termination of his employment, including but not limited to, serving as a witness or consultant and producing documents
and information relevant to the case or helpful to the Corporation. The Corporation agrees to reimburse the Executive for all reasonable
costs and expenses he incurs in connection with his obligations under this Section 14 and, in addition, to reasonably compensate
the Executive for time actually spent in connection therewith following the termination of his employment with the Corporation.

 

15.         Assignment.

 

This Agreement is personal
in nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights
or obligations hereunder; provided, however, that in the event of a merger, consolidation, or transfer or sale of
all or substantially all of the assets of the Corporation with or to any other individual(s) or entity, this Agreement shall, subject
to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform
all the promises, covenants, duties and obligations of the Corporation hereunder.

 

16.         Number
and Gender.

 

Where the context requires,
the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.

 

17.         Section
Headings.

 

The section headings
of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purposes of convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.

 

18.         Governing
Law.

 

This Agreement, and
all questions relating to its validity, interpretation, performance and enforcement, as well as the legal relations hereby created
between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance with, the laws
of the State of California, notwithstanding any California or other conflict of law provision to the contrary. This Agreement is
intended to comply with Section 409A of the Code and the regulations promulgated thereunder.

 

19.         Severability.

 

If any provision of
this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of
this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.

 

    	13

    	 

    

 

20.         Entire
Agreement.

 

This Agreement replaces
and supersedes prior employment agreements, including your offer letter dated January 29, 2013 as amended on May 23, 2013. This
Agreement embodies the entire agreement of the parties hereto respecting the matters within its scope. This Agreement supersedes
all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof.
Any prior negotiations, correspondence, agreements, proposals or understandings relating to the subject matter hereof shall be
deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements,
proposals, or understandings shall be deemed to be of no force or effect. There are no representations, warranties, or agreements,
whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein.

 

21.         Modifications.

 

This Agreement may
not be amended, modified, or changed (in whole or in part), except by a formal, definitive written agreement expressly referring
to this Agreement, which agreement is executed by both of the parties hereto.

 

22.         Waiver.

 

Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power, or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power, or privilege, nor shall any waiver of any right, remedy, power, or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power, or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

23.         Resolution
of Disputes.

 

(a)          Any
controversy arising out of or relating to the Executive’s employment (whether or not before or after the expiration of the
Period of Employment), any termination of the Executive’s employment, this Agreement or the enforcement or interpretation
of this Agreement, or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of this
Agreement, including (without limitation) any state or federal statutory claims, shall be submitted to arbitration in Santa Rosa,
California, before a sole arbitrator (the “Arbitrator”) selected from judicial arbitration mediation services
(“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the
American Arbitration Association (“AAA”), and shall be conducted in accordance with the provisions of California
Code of Civil Procedure §§ 1280 et. seq. as the exclusive remedy of such dispute; provided, however, that
provisional injunctive relief may, but need not, be sought in a court of law while arbitration proceedings are pending, and any
provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the Arbitrator.
Final resolution of any dispute through arbitration may include any remedy or relief that the Arbitrator deems just and equitable,
including any and all remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator
shall issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or
decision is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and
may be enforced by any court of competent jurisdiction.

 

    	14

    	 

    

 

(b)          The
parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim
brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected
with any of the matters referenced in the first sentence of Section 23(a).

 

(c)          The
parties agree that the Corporation shall be responsible for payment of the forum costs of any arbitration hereunder, including
the Arbitrator’s fee. The parties further agree that in any proceeding with respect to such matters, the prevailing party
will be entitled to recover its reasonable attorney’s fees and costs from the non-prevailing party (other than forum costs
associated with the arbitration which in any event shall be paid by the Corporation).

 

(d)          Without
limiting the remedies available to the parties and notwithstanding the foregoing provisions of this Section 23, the Executive and
the Corporation acknowledge that any breach of any of the covenants or provisions contained in Sections 5.6 and 7 through 12 could
result in irreparable injury to either of the parties hereto for which there might be no adequate remedy at law, and that, in the
event of such a breach or threat thereof, the non-breaching party shall be entitled to obtain a temporary restraining order and/or
a preliminary injunction and a permanent injunction restraining the other party hereto from engaging in any activities prohibited
by any covenant or provision in Sections 5.6 and 7 through 12 or such other equitable relief as may be required to enforce specifically
any of the covenants or provisions of Sections 5.6 and 7 through 12.

 

24.         Notices.

 

(a)          All
notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly received if (i) delivered by hand or by courier, effective upon delivery (ii) given by facsimile or electronic
version, when transmitted if transmitted on a business day and during normal business hours of the recipient, and otherwise delivered
on the next business day following transmission; or (iii) sent by registered or certified mail, postage prepaid, return receipt
requested, five (5) business days after being deposited in the U.S. mails. Any notice shall be duly addressed to the parties as
follows:

 

(i)           if
to the Corporation:

 

Ruthigen, Inc.

2455 Bennett Valley Road, Suite C116

Santa Rosa, CA 95404

Attn: Chief Executive Officer

Fax: 707-676-1686

 

(ii)          If
to the Executive:

 

Sameer Harish

At the address on file with the Corporation

 

(b)          Any
party may alter the address to which communications or copies are to be sent by giving notice of such change of address in conformity
with the provisions of this Section 24 for the giving of notice.

 

    	15

    	 

    

 

25.         Legal
Counsel; Mutual Drafting.

 

Each party recognizes
that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel
of their choice. Each party has cooperated in the drafting, negotiation and preparation of this Agreement. Hence, in any construction
to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter
of such language.

 

26.         Provisions
that Survive Termination.

 

The provisions of 5.3,
5.4, 5.5, 5.6, 5.7 and 7 through 25, 27, and this Section 26 shall survive any termination of the Period of Employment.

 

27.         Counterparts.

 

This Agreement may
be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears
thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties hereon as the signatories.
Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

[Signature Page Follows]

 

    	16

    	 

    

 

IN WITNESS WHEREOF, the Corporation
and the Executive have executed this Agreement as of the Effective Date.

 

	 	CORPORATION
	 	 
	 	Ruthigen, Inc.,
	 	a Delaware corporation
	 	 
	 	By:	 /s/ Greg French
	 	Name:	Greg French
	 	Title:	Chairman of the Compensation Committee of the Board of Directors of Ruthigen, Inc.
	 	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Sameer Harish
	 	Sameer Harish

 

    	17

    	 

    

 

EXHIBIT A – SECTION 1.3 DISCLOSURE
SCHEDULE

 

None.

 

    	Exhibit A

    	 

    

 

EXHIBIT B – SECTION 5.7 EXCISE
TAX GROSS-UP

 

B.1     Equalization
Payment. If any payment, distribution, transfer, or benefit (including, without limitation, any amounts received or deemed
received by the Executive within the meaning of any provision of the Internal Revenue Code of 1986, as amended (the “Code”),
or by the Executive as a result of (and not by way of limitation) any automatic vesting, lapse of restrictions and/or accelerated
target or performance achievement provisions, or otherwise, applicable to outstanding grants or awards to the Executive under any
of the Corporation’s incentive plans) by the Corporation or a successor, or by a direct or indirect subsidiary or affiliate
of the Corporation (or any successor or affiliate of any of them, and including any benefit plan of any of them), whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Total
Payments”), is subject to the excise tax imposed under Section 4999 of the Code or any similar or successor tax (the “Excise
Tax”), the Corporation shall pay in cash to Executive an additional amount (the “Gross-Up Payment”)
such that the net amount retained by the Executive after the deduction of any Excise Tax upon the Gross-Up Payment(s) provided
by this Section B.1 shall be equal to such Total Payments had they not been subject to the Excise Tax. Such Gross-Up Payment shall
be paid by the Corporation, according to the terms of this Agreement, to the Executive by the end of the taxable year following
the taxable year in which the Executive pays the Excise Tax.

 

B.2     Calculation
of Gross-Up Payment. The determination of whether a Gross-Up Payment is required pursuant to this Exhibit B and the amount
of any such Gross-Up Payment shall be determined in writing (the “Determination”) by a nationally-recognized
certified public accounting firm selected by the Corporation (the “Accounting Firm”). The Accounting Firm shall
provide its Determination in writing, together with detailed supporting calculations and documentation and any assumptions used
in making such computation, to the Corporation and the Executive on or prior to the change of control event (within the meaning
of Section 280G of the Code). Within twenty (20) days following delivery of the Accounting Firm’s Determination, the Executive
shall have the right, at the Corporation’s expense, to obtain the opinion of an “outside counsel,” which opinion
need not be unqualified, which sets forth: (i) the amount of the Executive’s “annualized includible compensation for
the base period” (as defined in Code Section 280G(d) (1)); (ii) the present value of the Total Payments made to the Executive;
(iii) the amount and present value of any “excess parachute payment;” and (iv) detailed supporting calculations and
documentation and any assumptions used in making such computations. The opinion of such outside counsel shall be supported by
the opinion of a nationally-recognized certified public accounting firm and, if necessary or required by the Corporation, a firm
of nationally-recognized executive compensation consultants. The Executive shall also have the right to obtain such an opinion
of outside counsel in the event that the Corporation has not timely submitted the initial determination to the Accounting Firm
as provided above (including, without limitation, in the event that the Corporation does not submit such a determination to the
Accounting Firm following an event in connection with which the Executive reasonably believes that he may be entitled to a Gross-Up
Payment). The outside counsel’s opinion shall be binding upon the Corporation and the Executive and shall constitute the
“Determination” for purposes of this Exhibit B instead of the initial determination by the Accounting Firm. The Corporation
shall pay (or to the extent paid by the Executive, reimburse the Executive for) the certified public accounting firm’s and,
if applicable, the executive compensation consultant’s reasonable and customary fees for rendering such opinion. For purposes
of this Section B.2, “outside counsel” means a licensed attorney selected by the Executive who is recognized in the
field of executive compensation and has experience with respect to the calculation of the Excise Tax; provided the Corporation
must approve the Executive’s selection, which approval shall not be unreasonably withheld.

 

    	Exhibit B-1

    	 

    

 

B.3     Computation
Assumptions. For purposes of determining whether any Total Payments will be subject to Excise Tax, and the amount of any
Excise Tax:

 

		(a)	Any other payments, benefits and/or amounts received or to be received by the Executive in connection
with or contingent upon any change in the ownership or effective control of the Corporation or any change in the ownership of a
substantial portion of the Corporation’s assets or termination of the Executive’s employment (whether pursuant to the
terms of this Agreement or any other plan, arrangement or agreement with the Corporation, or with any Person (as defined below)
whose actions result in such a change or any Person affiliated with the Corporation or such Persons) shall be combined to determine
whether the Executive has received any “parachute payment” within the meaning of Section 280G(b)(2) of the Code, and
if so, the amount of any “excess parachute payments” within the meaning of Section 280G(b)(1) that shall be treated
as subject to Excise Tax, unless in the opinion of the person or firm rendering the Determination, such other payments, or such
excess parachute payments represent reasonable compensation for services actually rendered without the meaning of Section 280G(b)(4)
of the Code in excess of the base amount within the meaning of Section 280G(b)(3) of the Code, or are otherwise not subject to
the Excise Tax. For purposes of this Section B.3(a), “Person” shall have the meaning ascribed to such terms
in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined
in Section 13(d) thereof);

 

		(b)	The value of any non-cash benefits or any deferred payment or benefit shall be determined by the
person or firm rendering the Determination in accordance with the principles of Sections 280G(d)(3) and (4) of the Code;

 

		(c)	The compensation and benefits provided for in Section 5 of this Agreement, and any other compensation
earned prior to the termination of the Executive’s employment pursuant to the Corporation’s compensation programs (if
such payments would have been made in the future in any event, even though the timing of such payment is triggered by a change
in the ownership or effective control of the Corporation or any change in the ownership of a substantial portion of the Corporation’s
assets or a termination of the Executive’s employment), shall for purposes of the calculation pursuant to this Section B.3
be deemed to be reasonable; and

 

    	Exhibit B-2

    	 

    

 

		(d)	The Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be made. Furthermore, the computation of the Gross-Up
Payment shall assume (and adjust for the fact) that (i) there is a loss of miscellaneous itemized deductions under Section 67 of
the Code (or analogous federal or state provisions) on account of the Gross-Up Payment and (ii) a loss of itemized deductions under
Section 68 of the Code (or analogous federal or state provisions) on account of the Gross-Up Payment. The computation of the Gross-Up
Payment shall take into account any reduction in the Gross-Up Payment due to the Executive’s share of the hospital insurance
portion of FICA and any state withholding taxes (other than any state withholding tax for income tax liability). The computation
of the state and local income taxes applicable to the Gross-Up Payment shall be based on the highest marginal rate of taxation
in the state and locality of the Executive’s residence on the date the Executive’s employment terminates, and shall
take into account the maximum reduction in federal income taxes that could be obtained from the deduction of such state and local
taxes.

 

		(e)	It is the intent of the parties that the amounts payable under this Agreement and the Corporation’s
and the Executive’s exercise of authority or discretion hereunder shall comply with and avoid the imputation of any tax,
penalty, or interest under Section 409A of the Code. This Agreement and this Exhibit B shall be construed in interpretation with
that intent.

 

B.4     Executive’s
Obligation to Notify Corporation. The Executive shall promptly notify the Corporation in writing of any claim by the Internal
Revenue Service (or any successor thereof) or any state or local taxing authority (individually or collectively, the “Taxing
Authority”) that, if successful, would require the payment by the Corporation of a Gross-Up Payment in excess of any
Gross-Up Payment as originally set forth in the Determination. If the Corporation notifies the Executive in writing that it desires
to contest such claim, the Executive shall: (a) give the Corporation any information reasonably requested by the Corporation relating
to such claim; (b) take such action in connection with contesting such claim as the Corporation shall reasonably request in writing
from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected
by the Corporation that is reasonably acceptable to the Executive; (c) cooperate with the Corporation in good faith in order to
effectively contest such claim; and (d) permit the Corporation to participate in any proceedings relating to such claim; provided
that the Corporation shall bear and pay directly all attorneys fees, costs and expenses (including additional interest, penalties
and additions to tax) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for all taxes (including, without limitation, income and excise taxes), interest, penalties, and additions to tax imposed
in relation to such claim and in relation to the payment of such costs and expenses or indemnification. Without limitation on the
foregoing provisions of this Section B.4, and to the extent its actions do not unreasonably interfere with or prejudice the Executive’s
disputes with the Taxing Authority as to other issues, the Corporation shall control all proceedings taken in connection with such
contest and, in its reasonable discretion, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences
with the Taxing Authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax, interest
or penalties claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute
such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Corporation shall determine; provided, however, that if the Corporation directs Executive to pay such
claim and sue for a refund, the Corporation shall advance an amount equal to such payment to the Executive, on an interest-free
basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from all taxes (including, without limitation,
income and excise taxes), interest, penalties and additions to tax imposed with respect to such advance or with respect to any
imputed income with respect to such advance, as any such amounts are incurred; and, further, provided that any extension of the
statute of limitations relating to payment of taxes, interest, penalties or additions to taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited solely to such contested amount; and, provided, further,
that any settlement of any claim shall be reasonably acceptable to the Executive and the Corporation’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder, and the Executive shall be entitled
to settle or contest, as the case may be, any other issues.

 

    	Exhibit B-3

    	 

    

 

B.5     Subsequent
Recalculation. In the event of a binding or uncontested determination by the Taxing Authority that adjusts the computation
set forth in the Determination so that the Executive did not receive the greatest net benefit required pursuant to Section B.1,
the Corporation shall reimburse the Executive as provided herein for the full amount necessary to place the Executive in the same
after-tax position as he would have been in had no Excise Tax applied. In the event of a binding or uncontested determination by
the Taxing Authority that adjusts the computation set forth in the Determination so that the Executive received a payment or benefit
in excess of the amount required pursuant to Section B.1, then the Executive shall promptly pay to the Corporation (without interest)
the amount of such excess.

 

    	Exhibit B-4

    	 

    

 

Exhibit C – RELEASE OF CLAIMS

 

Capitalized terms used but not defined in this release of claims
(the “Release”) will have the meanings given to them in the Employment Agreement dated May __, 2014, between
Ruthigen, Inc. (the “Corporation”) and Sameer Harish.

 

For and in consideration of the severance
benefits to be provided to me pursuant to the Employment Agreement, and for other good and valuable consideration, I, on behalf
of myself, my descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby release,
discharge and covenant not to sue, the Corporation, its parent (if any), the Corporation’s subsidiaries and affiliates, past
and present, each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, shareholders,
members, representatives, assigns, and successors, past and present, and each of them (the “Corporation Releasees”),
with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes
of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind
or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or
hidden, which I may then own or hold, or I at any time theretofore owned or held, or may in the future hold as against any or all
of said Corporation Releasees, arising out of or in any way connected with the Employment Agreement, my employment relationship
with each and every member of the Company Group (as defined in Section 7) with which I have had such a relationship, or the termination
of my employment or any other transactions, occurrences, acts or omissions or any loss, damage, or injury whatever, known or unknown,
suspected or unsuspected, resulting from any act or omission by or on the part of said Corporation Releasees, or any of them, committed
or omitted prior to the date of such Release including, without limiting the generality of the foregoing, any claim under Section
1981 of the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the California Fair Employment and Housing Act, the
California Family Rights Act, any other claim under any other federal, state, or local law or regulation, and any other claim for
severance pay, bonus or incentive pay, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any
other fringe benefit, medical expenses or disability (except that such Release shall not constitute a release of any Corporation
obligation to me that may be due to me pursuant to Section 5.3(b) of the Employment Agreement upon the Corporation’s receipt
of such Release).

 

I acknowledge and agree that as of the date
I execute this Release, I have no knowledge of any facts or circumstances that give rise or could give rise to any claims under
any of the laws listed in the preceding paragraph.

 

I represent and warrant that I have not
theretofore assigned or transferred to any other person or entity, other than the Corporation, any released matter or any part
or portion thereof and I will defend, indemnify and hold harmless the Corporation and the Corporation Releasees from and against
any claim (including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced)
that is directly or indirectly based on or in connection with or arising out of any such assignment or transfer made, purported
or claimed.

 

    	Exhibit C-1

    	 

    

 

By executing this Release, I specifically
release all claims relating to my employment and its termination under ADEA, a federal statute that, among other things, prohibits
discrimination on the basis of age in employment and employee benefit plans.

 

I acknowledge that I have been given at
least [21]/[45]1 days in which to consider this Release. I acknowledge further that the Corporation has advised me to
consult with an attorney of my choice before signing this Release, and I have had sufficient time to consider the terms of this
Release. I represent and acknowledge that if I execute this Release before [21]/[45] days have elapsed, I do so knowingly, voluntarily,
and upon the advice and with the approval of my legal counsel (if any), and that I voluntarily waive any remaining consideration
period.

 

I understand that after executing this Release,
I have the right to revoke it within seven days after its execution. I understand that this Release will not become effective and
enforceable unless the seven-day revocation period passes and I do not revoke the Release in writing. I understand that this Release
may not be revoked after the seven-day revocation period has passed. I understand also that any revocation of this Release must
be made in writing and delivered to the Corporation at its principal place of business within the seven-day period.

 

This Release will become effective, irrevocable,
and binding on the eighth day after its execution, so long as I have not timely revoked it as set forth above. I understand and
acknowledge that I will not be entitled to any severance benefits unless this Release is effective on or before the date that is
[21/45] days following the date of my termination of employment.

 

I hereby agree to waive any and all claims
to re-employment with the any member of the Company Group and affirmatively agree not to seek further employment with the any member
of the Company Group.

 

The provisions of this Release will be binding
upon my heirs, executors, administrators, legal representatives, and assigns. If any provision of this Release will be held by
any court of competent jurisdiction to be illegal, void, or unenforceable, such provision will be of no force or effect. The illegality
or unenforceability of such provision, however, will have no effect upon and will not impair the enforceability of any other provision
of this Release.

 

This Release will be
governed in accordance with the laws of the State of California, without reference to the principles of conflicts of law. Any dispute
or claim arising out of or relating to this Release shall be submitted to arbitration in Santa Rosa, California, before a sole
arbitrator (the “Arbitrator”) selected from judicial arbitration mediation services (“JAMS”),
or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the American Arbitration Association
(“AAA”), and shall be conducted in accordance with the provisions of California Code of Civil Procedure §§
1280 et. seq. as the exclusive remedy of such dispute; provided, however, that provisional injunctive relief may,
but need not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted
by such court shall remain effective until the matter is finally determined by the Arbitrator. Final resolution of any dispute
through arbitration may include any remedy or relief that the Arbitrator deems just and equitable, including any and all remedies
provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator shall issue a written decision
that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based. Any award
or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court
of competent jurisdiction.

 

 

1         To
be selected based on whether applicable termination was “in connection with an exit incentive or other employment termination
program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967).

 

    	Exhibit C-2

    	 

    

 

The parties acknowledge
and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either
of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Release.

 

The parties agree that
the Corporation shall be responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s
fee. The parties further agree that in any proceeding with respect to such matters, the prevailing party will be entitled to recover
its reasonable attorney’s fees and costs from the non-prevailing party (other than forum costs associated with the arbitration
which in any event shall be paid by the Corporation).

 

	 	CORPORATION
	 	 
	 	Ruthigen, Inc.,
	 	a Delaware corporation
	 	 
	 	By:	
	 	Name:	Hojabr Alimi
	 	Title:	Chief Executive Officer and Chairman of the Board of Directors of Ruthigen, Inc.

 

	 	 
	 	Sameer Harish
	 	 
	 	 
	 	Date

 

    	Exhibit C-3Exhibit 10.11

 

Effective Date: March 26, 2014

 

RUTHIGEN, INC.

 

2013 EMPLOYEE, DIRECTOR AND CONSULTANT
EQUITY INCENTIVE PLAN

 

		1.	DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this RUTHIGEN, INC. 2013 Employee, Director and Consultant
Equity Incentive Plan, have the following meanings:

 

Administrator means the
Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means
the Committee.

 

Affiliate means a corporation
which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement
between the Company and a Participant delivered pursuant to the Plan and pertaining to a Stock Right, in such form as the Administrator
shall approve.

 

Board of Directors means
the Board of Directors of the Company.

 

Cause means, with respect
to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non-feasance
of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate,
and (e) conduct substantially prejudicial to the business of the Company or any Affiliate; provided, however, that any provision
in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination
and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant. The determination
of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.

 

Code means the United States
Internal Revenue Code of 1986, as amended including any successor
statute, regulation and guidance thereto.

 

Committee means the committee
of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the
Plan, which members shall be non-employee directors as defined in Rule 16b-3 of the Exchange Act.

 

Common Stock means shares
of the Company’s common stock, $0.0001 par value per share.

 

Company means Ruthigen,
Inc., a Delaware corporation.

 

    	 

    	 

    

 

Consultant means any natural
person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services
are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly
promote or maintain a market for the Company’s or its Affiliates’ securities.

 

Disability or Disabled
means permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee
of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of
the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the
Plan.

 

Exchange Act means the Securities
Exchange Act of 1934, as amended.

 

Fair Market Value of a Share
of Common Stock means:

 

(1)         If
the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly
reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other
comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last
market trading day prior to such date;

 

(2)         If
the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices
are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices
for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of
trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date and if such
applicable date is not a trading day, the last market trading day prior to such date; and

 

(3)         If
the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the
Administrator, in good faith, shall determine.

 

ISO means an option intended
to qualify as an incentive stock option under Section 422 of the Code.

 

Non-Qualified Option means
an option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified
Option granted under the Plan.

 

Participant means an Employee,
director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As
used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

 

Plan means this Ruthigen,
Inc. 2013 Employee, Director and Consultant Equity Incentive Plan.

 

    	2

    	 

    

 

RSU or Restricted Stock
Unit means the grant of a contingent entitlement to receive shares of Common Stock based
on the attainment of performance or time based vesting criteria, which for purposes of the Plan shall be a type of Stock-Based
Award.

 

Securities Act means the
Securities Act of 1933, as amended.

 

Shares means shares of the
Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the
Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under
the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock Appreciation Right
means the right to receive an amount equal to the excess of the Fair Market Value of a share of Common Stock (as determined on
the date of exercise) over the purchase price of a share of Common Stock on the date a stock appreciation right is granted.

 

Stock-Based Award means
a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.

 

Stock Grant means a grant
by the Company of Shares under the Plan.

 

Stock Right means a right
to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant
or a Stock-Based Award.

 

Survivor means a deceased
Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right
by will or by the laws of descent and distribution.

 

		2.	PURPOSES OF THE PLAN.

 

The Plan is intended
to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order
to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional
incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified
Options, Stock Grants and Stock-Based Awards.

 

		3.	SHARES SUBJECT TO THE PLAN.

 

(a)          The
number of Shares which may be issued from time to time pursuant to this Plan shall be 998,355, or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 24 of the Plan. ISOs may only be issued for up to 975,126
Shares.

 

    	3

    	 

    

 

(b)          Notwithstanding
Subparagraph (a) above, on the first day of each calendar year of the Company during the period beginning in calendar year 2015,
and ending on the second day of calendar year 2023, the number of Shares that may be issued from time to time pursuant to the Plan,
shall be increased by an amount equal to the lesser of (i) 232,500 shares of our common stock or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 24 of the Plan; (ii) 5% of the number of outstanding shares
of Common Stock on such date; or (iii) an amount determined by the Board.For each such annual increase, ISOs may only be issued
for up to 227,090 of the Shares authorized by such increase.

 

(c)          The
grant of any RSU which is not a performance based RSU shall for purposes of Paragraph 3(a), reduce the number of Shares available
for issuance under this Plan by 1.5 Shares for each such Share actually subject to the RSU and shall be deemed for purposes of
this Paragraph 3, as a Stock-Based Award of 1.5 Shares for each Share subject to such RSU grant. All other Awards shall be deemed
for purposes of this Paragraph 3, as an Award for one Share for each such Share actually subject to the Award, including the grant
of any performance-based RSUs within two months following the Effective Date of the Plan.

 

(d)          If
an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire
(at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired
Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan and
in accordance with the Share numbers set forth in Paragraph 3(c). Notwithstanding the foregoing, if a Stock Right is exercised,
in whole or in part, by tender of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by withholding
Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a)
above shall be the number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually
issued, and any Stock Appreciation Right to be settled in shares of Common Stock shall be counted in full against the number of
Shares available for issuance under the Plan, regardless of the number of exercise gain shares issued upon the settlement of the
Stock Appreciation Right. However, in the case of ISOs, the foregoing provisions shall be subject to any limitations under the
Code.

 

		4.	ADMINISTRATION OF THE PLAN.

 

The Administrator of
the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized
to:

 

(a)          Interpret
the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable
for the administration of the Plan;

 

(b)          Determine
which Employees, directors and Consultants shall be granted Stock Rights;

 

(c)          Determine
the number of Shares for which a Stock Right or Stock Rights shall be granted;

 

(d)          Specify
the terms and conditions upon which a Stock Right or Stock Rights may be granted;

 

    	4

    	 

    

 

(e)          Amend
any term or condition of any outstanding Stock Right, including, without limitation, accelerate the vesting schedule or extend
the expiration date, provided that (i) the exercise or purchase price of any Stock Right may not be reduced without prior stockholder
approval; (ii) such term or condition as amended is permitted by the Plan; (iii) any such amendment shall not impair the rights
of a Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of
the Participant the Participant’s Survivors; and (iv) any such amendment shall be made only after the Administrator determines
whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting
limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant
to Section 409A of the Code; and

 

(f)          Buy
out for a payment in cash or Shares, a Stock Right previously granted and/or cancel any such Stock Right and grant in substitution
therefor other Stock Rights, covering the same or a different number of Shares and having an exercise price or purchase price per
share which may be lower or higher than the exercise price or purchase price of the cancelled Stock Right, based on such terms
and conditions as the Administrator shall establish and the Participant shall accept;

 

(g)          Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with
or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate
the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or
Shares issuable pursuant to a Stock Right;

 

provided, however, that all such interpretations,
rules, determinations, terms and conditions shall be made and prescribed in the context of not causing any adverse tax consequences
under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated
as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of
any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is
the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that
would otherwise be the responsibility of the Committee.

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing,
only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any
“officer” of the Company as defined by Rule 16a-1 under the Exchange Act.

 

		5.	ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will,
in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director
or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator
may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate;
provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become
a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to
Employees who are deemed to be residents of the United States for tax purposes. Non-Qualified Options, Stock Grants and Stock-Based
Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate. The granting of any Stock Right to
any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock
Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.

 

    	5

    	 

    

 

		6.	TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be
set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements
shall be subject to at least the following terms and conditions:

 

(a)          Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified
Option:

 

		(i)	Exercise Price: Each Option Agreement shall state the exercise price (per share) of the
Shares covered by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to the
Fair Market Value per share of Common Stock on the date of grant of the Option.

 

		(ii)	Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

 

		(iii)	Option Periods: Each Option Agreement shall state the date or dates on which it first is
exercisable and the date after which it may no longer be exercised, and may provide that the Option rights accrue or become exercisable
in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals
or events. Unless otherwise determined by the Administrator, the vesting period of the Option set forth in the Option Agreement
shall be not less than three years from the vesting start date, vesting in quarterly installments.

 

		(iv)	Option Conditions: Exercise of any Option may be conditioned upon the Participant’s
execution of a Share purchase agreement in form satisfactory to the Administrator providing for certain protections for the Company
and its other shareholders, including requirements that:

 

		A.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the
Shares may be restricted; and

 

		B.	The Participant or the Participant’s Survivors may be required to execute letters of investment
intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

		(v)	Term of Option: Each Option shall terminate not more than ten years from the date of the
grant or at such earlier time as the Option Agreement may provide.

 

    	6

    	 

    

 

(b)          ISOs:
Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax
purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator
determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal
Revenue Service:

 

		(i)	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options,
as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.

 

		(ii)	Exercise Price: Immediately before the ISO is granted, if the Participant owns, directly
or by reason of the applicable attribution rules in Section 424(d) of the Code:

 

		A.	10% or less of the total combined voting power of all classes of stock of the Company or
an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value
per share of the Common Stock on the date of grant of the Option; or

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of
the Common Stock on the date of grant of the Option.

 

		(iii)	Term of Option: For Participants who own:

 

		A.	10% or less of the total combined voting power of all classes of stock of the Company or
an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the Option
Agreement may provide; or

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may
provide.

 

		(iv)	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which
may become exercisable in any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate
Fair Market Value (determined on the date each ISO is granted) of the stock with respect to which ISOs are exercisable for the
first time by the Participant in any calendar year does not exceed $100,000.

 

		7.	TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to
a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain
terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the
following minimum standards:

 

    	7

    	 

    

 

(a)          Each
Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall
be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation
Law, if any, on the date of the grant of the Stock Grant;

 

(b)          Each
Agreement shall state the number of Shares to which the Stock Grant pertains; and

 

(c)          Each
Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including
the time and events upon which such rights shall accrue and the purchase price therefor, if any.

 

		8.	TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS. 

 

The Administrator shall
have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator
may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible
into Shares and the grant of Stock Appreciation Rights, phantom stock awards or stock units. The principal terms of each Stock-Based
Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to be appropriate and in the best interest of the Company. Notwithstanding the foregoing, each Stock
Appreciation Right shall (i) have an exercise price which shall not be less than the Fair Market Value per Share of Common Stock
and (ii) terminate not more than ten years from the date of the grant or at such earlier time as the Agreement therefor may provide.

 

The Company intends
that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the
requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated
in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings)
shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent
as described in this Paragraph 8.

 

		9.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part
or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the
Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance
with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided
electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is
being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price
for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check,
or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if
required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate
cash exercise price for the number of Shares as to which the Option is being exercised, or (c) at the discretion of the Administrator,
by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market
Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being
exercised, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with
a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of the Administrator, by any combination
of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as
the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of
an ISO as is permitted by Section 422 of the Code.

 

    	8

    	 

    

 

The Company shall then
reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

		10.	PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS
AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

Any Stock Grant or
Stock-Based Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being
granted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through
delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having
a Fair Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the
discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, by payment
of such other lawful consideration as the Administrator may determine.

 

The Company shall when
required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award
was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set
forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood
that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance.

 

		11.	RIGHTS AS A SHAREHOLDER.

 

No Participant to whom
a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except
after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase
price, if any, for the Shares being purchased and registration of the Shares in the Company’s share register in the name
of the Participant.

 

    	9

    	 

    

 

		12.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

 

By its terms, a Stock
Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that
no Stock Right may be transferred by a Participant for value. Notwithstanding the foregoing, an ISO transferred except in compliance
with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with
the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited
by this Paragraph. Except as provided above during the Participant’s lifetime a Stock Right shall only be exercisable by
or issued to such Participant (or his or her legal representative) and shall not be assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted
transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary
to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void.

 

		13.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN
FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

(a)          A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than termination
for Cause, Disability, or death for which events there are special rules in Paragraphs 14, 15, and 16, respectively), may exercise
any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only
within such term as the Administrator has designated in a Participant’s Option Agreement.

 

(b)          Except
as provided in Subparagraph (c) below, or Paragraph 15 or 16, in no event may an Option intended to be an ISO, be exercised later
than three months after the Participant’s termination of employment.

 

(c)          The
provisions of this Paragraph, and not the provisions of Paragraph 15 or 16, shall apply to a Participant who subsequently becomes
Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s
Disability or death within three months after the termination of employment, director status or consultancy, the Participant or
the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination
of service, but in no event after the date of expiration of the term of the Option.

 

(d)          Notwithstanding
anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status
or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent
to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then such Participant
shall forthwith cease to have any right to exercise any Option.

 

(e)          A
Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary
disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose,
shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly
provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than ninety days, unless
pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option
on the 181st day following such leave of absence.

 

(f)          Except
as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected
by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues
to be an Employee, director or Consultant of the Company or any Affiliate.

 

    	10

    	 

    

 

		14.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an
Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her
outstanding Options have been exercised:

 

(a)          All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will
immediately be forfeited.

 

(b)          Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited.

 

		15.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

(a)          A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may
exercise any Option granted to such Participant:

 

		(i)	To the extent that the Option has become exercisable but has not been exercised on the date of
the Participant’s termination of service due to Disability; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would
have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of
days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability.

 

(b)          A
Disabled Participant may exercise the Option only within the period ending one year after the date of the Participant’s termination
of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all
of the Shares on a later date if the Participant had not been terminated due to Disability and had continued to be an Employee,
director or Consultant or, if earlier, within the originally prescribed term of the Option.

 

(c)          The
Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure
for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure
shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the
Administrator, the cost of which examination shall be paid for by the Company.

 

    	11

    	 

    

 

		16.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR
OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

(a)          In
the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate,
such Option may be exercised by the Participant’s Survivors:

 

		(i)	To the extent that the Option has become exercisable but has not been exercised on the date of
death; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant
not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s
date of death.

 

(b)          If
the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within
one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option
as to some or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant
or, if earlier, within the originally prescribed term of the Option.

 

		17.	EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS AND
STOCK-BASED AWARDS.

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

For purposes of this
Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant has been issued under the Plan who is absent from work
with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph
1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue
of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company
or with an Affiliate, except as the Administrator may otherwise expressly provide.

 

In addition, for purposes
of this Paragraph 17 and Paragraph 18 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

		18.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER
THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant), other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 19,
20, and 21, respectively, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company
shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant as to which the Company’s forfeiture
or repurchase rights have not lapsed.

 

    	12

    	 

    

 

		19.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR
CAUSE.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply if the Participant’s service (whether
as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

(a)          All
Shares subject to any Stock Grant whether or not then subject to forfeiture or repurchase shall be immediately subject to repurchase
by the Company at par value. 

 

(b)          Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct
which would constitute Cause, then all Shares subject to any Stock Grant that remained subject to forfeiture provisions or as to
which the Company had a repurchase right on the date of termination shall be immediately forfeited to the Company.

 

		20.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR
DISABILITY.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply if a Participant ceases to be an Employee, director
or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s
rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event
such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a
pro rata portion of the Shares subject to such Stock Grant through the date of Disability as would have lapsed had the Participant
not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator shall
make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination
is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost
of which examination shall be paid for by the Company.

 

		21.	EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR
OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply in the event of the death of a Participant while
the Participant is an Employee, director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions
or the Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however,
that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse
to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of death as would have lapsed had
the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of
death.

 

    	13

    	 

    

 

		22.	PURCHASE FOR INVESTMENT.

 

Unless the offering
and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation
to issue Shares under the Plan unless and until the following conditions have been fulfilled:

 

(a)          The
person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such
Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution of
any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a
legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to such
exercise or such grant:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act
of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration
under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”

 

(b)          At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in
compliance with the Securities Act without registration thereunder.

 

		23.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution
or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all
Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate
and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise
terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution
or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance
as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding
Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the
applicable Agreement.

 

		24.	ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement:

 

(a)          Stock
Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller
number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock,
or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall
be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise or
purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a), 3(b) and 4(c)
shall also be proportionately adjusted upon the occurrence of such events.

 

    	14

    	 

    

 

(b)          Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, or sale of
all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation (a
“Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations of the
Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate provision
for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the
consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities
of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised
(either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially
or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end
of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange for payment
of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares
of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion
of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph) less the
aggregate exercise price thereof. For purposes of determining the payments to be made pursuant to Subclause (iii) above, in
the case of a Corporate Transaction the consideration for which, in whole or in part, is other than cash, the consideration other
than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.

 

With respect to outstanding
Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants
on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either
the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or
securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator
may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange
for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the
number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture
or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived
upon such Corporate Transaction).

 

In taking any of the
actions permitted under this Paragraph 24(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all
Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

(c)          Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant
to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock,
a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled
to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been
received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

    	15

    	 

    

 

(d)          Adjustments
to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding
Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the
Successor Board shall determine the specific adjustments to be made under this Paragraph 24, including, but not limited to the
effect of any, Corporate Transaction and, subject to Paragraph 4, its determination shall be conclusive.

 

(e)          Modification
of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect
to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification”
of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders
of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments
made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such
adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates
that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with
respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion
of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

		25.	ISSUANCES OF SECURITIES.

 

Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject
to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including
without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

		26.	FRACTIONAL SHARES.

 

No fractional shares
shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

		27.	CONVERSION OF ISOs
INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The Administrator,
at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s
ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time
of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions
on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have
such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator
takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that
has not been exercised at the time of such conversion.

 

    	16

    	 

    

 

		28.	WITHHOLDING.

 

In the event that any
federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings
or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary,
wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required
by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance
in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount
of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of
the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair
Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance
the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise
of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.

 

		29.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

 

Each Employee who receives
an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any Shares
acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes
any disposition (including any sale or gift) of such Shares before the later of (a) two years after the date the Employee was granted
the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section
424(c) of the Code. If the Employee has died before such Shares are sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter.

 

		30.	TERMINATION OF THE PLAN.

 

The Plan will terminate
on September 30, 2023 the date which is ten years from the earlier of the date of its adoption by the Board of
Directors and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier date by vote
of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect
any Agreements executed prior to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights
theretofore granted.

 

		31.	AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended
by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the extent
necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for
favorable federal income tax treatment as may be afforded incentive stock options under Section 422 of the Code (including deferral
of taxation upon exercise), and to the extent necessary to qualify the Shares issuable under the Plan for listing on any national
securities exchange or quotation in any national automated quotation system of securities dealers. Any amendment approved by the
Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining
such shareholder approval. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely
affect his or her rights under a Stock Right previously granted to him or her. With the consent of the Participant affected, the
Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent
with the Plan. In the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which
is not adverse to the Participant.

 

    	17

    	 

    

 

		32.	EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan
or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director
status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status
or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.

 

		33.	GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.

 

    	18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00232-of-00352.parquet"}]]