Document:

hsdt-ex101_8.htm

Exhibit 10.1

FORM OF SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of October 21, 2020, between Helius Medical Technologies, Inc., a Delaware corporation (the “Company”), and each purchaser identified on Exhibit A hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

Recitals

Whereas, on the terms and subject to the conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement; 

Whereas, the Company has authorized, upon the terms and conditions stated in this Agreement, the sale and issuance of an aggregate of up to five million dollars ($5,000,000) in value (or such higher amount as the Board of Directors of the Company shall determine, the “Total Amount”) of shares (each, a “Share”) of the Company’s Class A Common Stock, par value $0.001 per share (the “Common Stock”), and warrants to purchase shares of Common Stock in the form annexed hereto as Exhibit B (each a “Warrant” and collectively, the “Warrants”, and together with the Shares, the “Securities”), in the manner and upon the terms and conditions hereinafter set forth herein; and

Whereas, at the Closing (as hereinafter defined), each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that number of Shares and Warrants set forth on Exhibit A attached hereto. 

Agreement

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE 1
DEFINITIONS

1.1Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

“Additional Registration Statement” shall have the meaning ascribed to such term in Section 5.1(a).

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

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“Agreement” shall have the meaning ascribed to such term in the Recitals.

“Board of Directors” means the board of directors of the Company.

 “Closing” shall have the meaning ascribed to such term in Section 2.2.

 “Commission” and/or “SEC” means the United States Securities and Exchange Commission.

“Common Stock” shall have the meaning ascribed to such term in the Recitals.

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

“Company” shall have the meaning ascribed to such term in the Recitals.

“Derivative Transaction” shall have the meaning ascribed to such term in Section 4.2(b).

“Disclosure Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following the date hereof, and (ii) if this Agreement is signed between midnight (New York City time) and 9:00 a.m. (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the date hereof. 

“Effective Date” means the date that a Registration Statement is first declared effective by the SEC.

“Effectiveness Period” shall have the meaning ascribed to such term in Section 5.1(b).

 “Eligible Purchaser” shall have the meaning ascribed to such term in Section 6.6(a).

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, consultants, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) securities upon the exercise or exchange of or conversion of securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, (c) shares of Common Stock pursuant to an at-the-market offering, and (d) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144) and , 

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carry no registration rights that require or permit the filing of any registration statement in connection therewith, and provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

“GAAP” shall have the meaning ascribed to such term in Section 3.8.

“Indemnified Party” shall have the meaning ascribed to such term in Section 5.4(c).

“Indemnifying Party” shall have the meaning ascribed to such term in Section 5.4(c).

 “Initial Registration Statement” has the meaning set forth in Section 5.1(a).

“Intellectual Property” means (i) worldwide patents, patent applications, invention disclosures and other rights of invention, filed with any governmental authority, and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof and all reexamined patents or other applications or patents claiming the benefit of the filing date of any of the foregoing; (ii) worldwide (A) registered trademarks and service marks and registrations and applications for such registrations, and (B) unregistered trademarks and service marks, trade names, fictitious business names, corporate names, trade dress, logos, product names and slogans, including any common law rights; in each case together with the goodwill associated therewith; (iii) worldwide (A) registered copyrights in published or unpublished works, mask work rights and similar rights, including rights created under Sections 901-914 of Title 17 of the United States Code, mask work registrations, and copyright applications for registration, including any renewals thereof, and (B) any unregistered copyrightable works and other rights of authorship in published or unpublished works; (iv) worldwide (A) internet domain names; (B) website content; (C) telephone numbers; and (D) moral rights and publicity rights; (v) any computer program or other software (irrespective of the type of hardware for which it is intended), including firmware and other software embedded in hardware devices, whether in the form of source code, assembly code, script, interpreted language, instruction sets or binary or object code (including compiled and executable programs), including any library, component or module of any of the foregoing, including, in the case of source code, any related images, videos, icons, audio or other multimedia data or files, data files, and header, development or compilations tools, scripts, and files, and (vi) worldwide confidential or proprietary information or trade secrets, including technical information, inventions and discoveries (whether or not patentable and whether or not reduced to practice) and improvements thereto, know-how, processes, discoveries, developments, designs, techniques, plans, schematics, drawings, formulae, preparations, assays, surface coatings, diagnostic systems and methods, patterns, compilations, databases, database schemas, specifications, technical data, inventions, concepts, ideas, devices, methods, and processes; and includes any rights to exclude others from using or appropriating any Intellectual Property rights, including the rights to sue for or assets claims against and remedies against past, present or future infringements or misappropriations of any or all of the foregoing and rights of priority and protection of interests therein, and any other 

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proprietary, intellectual property or other rights relating to any or all of the foregoing anywhere in the world.

 “Losses” means any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation. 

“Material Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial or otherwise), business, or prospects of the Company taken as a whole, or (ii) the ability of the Company to perform its obligations under the Transaction Documents.

 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Principal Purchasers” means, as of any time, the Purchaser or Purchasers holding or having the right to acquire, as of such time, at least a majority-in-interest of the total amount of Securities. 

“Principal Trading Market” means the Trading Market, if any, on which the Common Stock is primarily listed on and quoted for trading.

“Pro Rata Portion” means, with respect to any Eligible Purchaser, a fraction, the numerator of which is the number of Securities purchased by such Eligible Purchaser, and the denominator of which is the number of all Securities issued to Purchasers hereunder.

 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, a partial proceeding, such as a deposition), whether commenced or threatened in writing.

 “Prospectus” means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 “Purchasers” shall have the meaning ascribed to such term in the Recitals.

“Registration Statement” means each registration statement required to be filed under ARTICLE 5, including the Initial Registration Statement, all Additional Registration Statements, and, in each case, the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

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“Registrable Securities” means the Shares and Warrant Shares and any shares of Common Stock issued as a dividend or other distribution with respect to, or in exchange for, or in replacement of, the Shares or Warrant Shares, provided, that the holder of such Shares and Warrant Shares has completed and delivered to the Company a Selling Stockholder Questionnaire; and provided further, that the Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) sale by any Person to the public either pursuant to a registration statement under the Securities Act or under Rule 144 (in which case, only such Shares and/or Warrant Shares sold shall cease to be Registrable Securities) or (B) becoming eligible for sale by the holder thereof pursuant to Rule 144 without volume or manner of sale restrictions.

“Rule 144,” “Rule 415,” and “Rule 424” means Rule 144, Rule 415 and Rule 424, respectively, promulgated by the Commission pursuant to the Securities Act, as such Rules may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule. 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.7.

“Securities” shall have the meaning ascribed to such terms in the Recitals.

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

“Selling Stockholder Questionnaire” shall have the meaning ascribed to such term in Section 5.2(g).

“Shares” shall have the meaning ascribed to such term in the Recitals.

 “Subsidiaries” shall have the meaning ascribed to such term in Section 3.1.

 “Trading Day” means a day on which the Principal Trading Market is open for trading. If the Common Stock is not listed or admitted for trading, “Trading Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in New York City are authorized or required by law or other governmental action to close.

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

“Transaction Documents” means this Agreement and all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means Computershare Investor Services Inc., the Company’s transfer agent and registrar for the Common Stock, and any successor appointed in such capacity.

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“Voting Commitment” shall have the meaning ascribed to such term in Section 4.2(a).

“Warrant” shall have the meaning ascribed to such term in the Recitals.

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants. 

 

ARTICLE 2
PURCHASE AND SALE

2.1Purchase and Sale.  Subject to and upon the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company the number of Shares and Warrants indicated opposite such Purchaser’s name on Exhibit A attached hereto (which, for the avoidance of doubt, reflects Warrants to purchase 0.50 Warrant Shares for every one Share purchased in the Closing) at a price per Share and accompanying Warrant equal to $0.52 (or $0.5244, for Joyce LaViscount, the Company’s Chief Financial Officer, Chief Operating Officer and Secretary, and certain entities affiliated with Dane C. Andreeff, the Company’s Interim President and Chief Executive Officer).

2.2Closing.  The sale and purchase of the Securities shall occur at a closing (the “Closing”) to be held at the offices of Honigman LLP at 650 Trade Centre Way, Suite 200, Kalamazoo, Michigan 49002 at 10:00 a.m., local time, on such date, or at such other time and place, upon which the Company and the Purchasers purchasing the Securities at the Closing shall agree.

2.3Payment.  

(a)At the Closing, (a) each Purchaser purchasing the Securities shall pay to the Company such Purchaser’s Subscription Amount as indicated on Exhibit A attached hereto in United States dollars and in immediately available funds, by wire transfer to the account as set forth in instructions previously delivered to such Purchaser, (b) the Company shall instruct the Transfer Agent to deliver shares to each Purchaser in book entry form.

(b)Promptly following the Closing, the Company shall deliver the Warrants to each Purchaser indicated opposite such Purchaser’s name on Exhibit A attached hereto at the address set forth for such Purchaser on the signature page hereto.

2.4Deliveries.

(a)The Company.  On or prior to the Closing, the Company shall deliver or cause to be delivered to each Purchaser a copy of this Agreement duly executed by the Company.

(b)The Purchasers. On or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following:

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(i)this Agreement duly executed by such Purchaser;

(ii)a fully completed and duly executed Accredited Investor Qualification Questionnaire in the form attached hereto as Exhibit C; 

(iii)a fully completed and duly executed Bad Actor Questionnaire in the form attached hereto as Exhibit D; and

(iv)such Purchaser’s Subscription Amount as indicated on Exhibit A  attached hereto by wire transfer to the account specified by the Company.

2.5Closing Conditions.

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

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

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

(iii)the delivery by such Purchaser of the items set forth in Section 2.4(b) of this Agreement; and

(iv)the Company having received conditional approval of Toronto Stock Exchange for the listing of the Shares and Warrant Shares issuable pursuant to this Agreement. 

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

(i)the representations and warranties made by the Company in ARTICLE 3 hereof qualified as to materiality shall be true and correct as of the date hereof and the Closing, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the representations and warranties made by the Company in ARTICLE 3 hereof not qualified as to materiality shall be true and correct in all material respects as of date hereof, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date;

(ii)all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing, whether under this Agreement or the other Transaction Documents, shall have been performed in all material respects;

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(iii)the delivery by the Company of the items set forth in Section 2.4(a) of this Agreement;

(iv)the Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the Transaction Documents, all of which shall be in full force and effect, except for such that could not reasonably be expected to have a Material Adverse Effect; and

(v)no judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents.

ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to the Purchasers that, except as otherwise disclosed to the Purchasers or as disclosed in the SEC Reports:

3.1Organization, Good Standing and Qualification.  The Company and each of its subsidiaries (as defined in Rule 405 of the Act) (individually, a “Subsidiary”) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own its properties. The Company and each of its Subsidiaries are duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably be expected to have a Material Adverse Effect.

3.2Subsidiaries.  Except as set forth on Schedule 3.2, the Company owns, directly or indirectly, all of the equity interests of its Subsidiaries, free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and similar rights.  No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.

 

3.3Authorization; Enforcement.  The Company has all corporate right, power and authority to enter into the Transaction Documents and to consummate the transactions contemplated hereby and thereby. All corporate action on the part of the Company, its directors and stockholders necessary for the authorization, execution, delivery and performance of the Transaction Documents by the Company, the authorization, sale, issuance and delivery of the 

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Securities contemplated herein and the performance of the Company’s obligations hereunder and thereunder has been taken. The Transaction Documents have been (or upon delivery will have been) duly executed and delivered by the Company and constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

3.4Capitalization.  The authorized capital stock of the Company consists of: (a) 150,000,000 shares of the Common Stock, of which 45,354,612 shares were outstanding as of September 30, 2020 (prior to the issuance of the Securities); and (b) 10,000,000 shares of the Company’s preferred stock, $0.001 par value per share, none of which are issued and outstanding as of the date hereof.  All of the issued and outstanding shares of the Common Stock have been duly authorized and validly issued and are fully paid and nonassessable. Except (i) for options to purchase Common Stock or other equity awards issued to employees of the Company, consultants and service providers of the Company and members of the Board of Directors pursuant to the equity compensation plans or arrangements disclosed in the SEC Reports, (ii) shares of capital stock issuable and reserved for issuance pursuant to securities exercisable for, or convertible into or exchangeable for any shares of capital stock of the Company disclosed in the SEC Reports, and (iii) as contemplated by this Agreement, as of the date hereof, there are no existing options, warrants, calls, preemptive (or similar) rights, subscriptions or other rights, agreements, arrangements or commitments of any character obligating the Company to issue, transfer or sell, or cause to be issued, transferred or sold, any shares of the capital stock of, or other equity interests in, the Company or any securities convertible into or exchangeable for such shares of capital stock or other equity interests, and there are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of its capital stock or other equity interests.  

3.5Issuance; Reservation of Shares.  The issuance of the Securities has been duly and validly authorized by all necessary corporate actions, and the Shares, when issued and paid for pursuant to this Agreement, and the Warrant Shares, upon exercise of the Warrants in accordance with their terms, including the payment of any exercise price therefor, will be validly issued, fully paid and non-assessable, and shall be free and clear of all encumbrances and restrictions (other than as provided in the Transaction Documents). 

3.6No Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under (i) the Company’s Certificate of Incorporation or the Company’s Amended and Restated Bylaws, both as in effect on the date hereof (true and complete copies of which have been made available to the Purchasers through the EDGAR system), (ii) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any of its respective assets or properties, or (iii) any material agreement or instrument to which the Company is a party or by which the Company is bound or to which any of their respective assets or properties is subject, in each case except for any such conflict, 

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breach, violation or default that would not reasonably be expected to have a Material Adverse Effect.

3.7Filings, Consents and Approvals.  Neither the Company nor its Subsidiaries is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than filings that have been made, or will be made, or consents that have been obtained, or will be obtained, pursuant to applicable state or Canadian securities laws or the Toronto Stock Exchange and post-sale filings pursuant to applicable state and federal or Canadian securities laws which the Company undertakes to file or obtain within the applicable time periods.

3.8SEC Reports.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, since January 1, 2018 (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed (or amended), contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has not received any letters of comment from the staff of the Commission that have not been satisfactorily resolved as of the date hereof.

3.9Financial Statements.  The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

3.10Certificates, Authorities and Permits.  The Company and its Subsidiaries hold, and are operating in compliance in all material respects with, all registrations, approvals, certificates, authorizations and permits of any governmental authority or self-regulatory body required for the conduct of its business as described in the SEC Reports, including without limitation, all such registrations, approvals, certificates, authorizations and permits required by the FDA or any other federal, state, local or foreign agencies or bodies engaged in the regulation of pharmaceuticals or biohazardous substances or materials; and neither the Company nor any Subsidiary has received notice of any revocation or modification of any such registration, 

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approval, certificate, authorization and permit or has reason to believe that any such registration, approval, certificate, authorization and permit will not be renewed in the ordinary course that could lead to, the withdrawal, revocation, suspension, modification or termination of any such registration, approval, certificate, authorization or permit, which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could result in a Material Adverse Effect.

3.11Title to Assets.  The Company and each of its Subsidiaries have good and marketable title to all property (whether real or personal) described in the SEC Reports as being owned by it, in each case free and clear of all liens, claims, security interests, other encumbrances or defects except as described in the SEC Reports, and except those that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The property held under lease by the Company is held under valid, subsisting and enforceable leases with only such exceptions with respect to any particular lease as do not interfere in any material respect with the conduct of the business of the Company.

3.12Intellectual Property.  The Company and each of its Subsidiaries own, possess, or can acquire on reasonable terms, all Intellectual Property necessary for the conduct of its business as now conducted or as described in the SEC Reports to be conducted in all material respects, except as such failure to own, possess, or acquire such rights would not have a Material Adverse Effect. Except as set forth in the SEC Reports, (A) to the knowledge of the Company and its Subsidiaries, there is no infringement, misappropriation or violation by third parties of any such Intellectual Property, except as such infringement, misappropriation or violation would not have a Material Adverse Effect; (B) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the Company’s rights in or to any such Intellectual Property, and the Company is unaware of any material facts which would form a reasonable basis for any such claim; (C) the Intellectual Property owned by the Company, and to the knowledge of the Company, the Intellectual Property licensed to the Company, have not been adjudged invalid or unenforceable, in whole or in part, and there is no pending or threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property, and the Company is unaware of any material facts which would form a reasonable basis for any such claim; (D) to the Company’s knowledge, there is no pending or threatened action, suit, proceeding or claim by others that the Company infringes, misappropriates or otherwise violates any Intellectual Property or other proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of any other material fact which would form a reasonable basis for any such claim; and (E) to the Company’s knowledge, no Company employee is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of such employee’s best efforts to promote the interest of the Company or that would conflict with the Company’s business; none of the execution and delivery of this Agreement, the carrying on of the Company’s business by the employees of the Company, and the conduct of the Company’s business as proposed, will conflict with or result in a breach of terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated; and it is not and will not be necessary to use any inventions, trade secrets or proprietary information of any of its consultants, or its employees (or Persons it currently intends to hire) made prior to their employment by the Company, except for technology that is licensed to or owned by the Company.

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3.13No General Solicitation or General Advertising.  Neither the Company, any of its Subsidiaries, nor any Person acting on their behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

3.14No Integrated Offering.  Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the transactions contemplated hereby or would require registration of the Shares under the Securities Act.

3.15Private Placement.  Assuming the accuracy of the Purchasers’ representations and warranties set forth in ARTICLE 4, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.

3.16Investment Company.  The Company is not and, after giving effect to the offering and sale of the Securities, will not be an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended.

3.17Foreign Corrupt Practices.  The Company, nor, to the best knowledge of the Company, any director, officer, agent, employee or other Person associated with or acting on behalf of the Company has (A) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (B) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (C) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (D) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants to the Company as follows (unless as of a specific date therein) as of the date hereof and as of the date of the Closing in which such Purchaser purchases the Securities from the Company:

4.1Organization; Authority.  Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally 

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binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

4.2Purchaser Status. 

(a)At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and each date on which such Purchaser exercises the Warrants the Purchaser will be, an “accredited investor” as defined in Rule 501 under the Securities Act. Such Purchaser is not a broker-dealer registered under Section 15 of the Exchange Act. Such Purchaser is acting alone in its determination as to whether to invest in the Securities. Such Purchaser is not a party to any voting agreements or similar arrangements with respect to the Securities. Except as expressly disclosed in a Schedule 13D or Schedule 13G (or amendments thereto) filed by such Purchaser with the Commission with respect to the beneficial ownership of the Company’s Common Stock, such Purchaser is not a member of a partnership, limited partnership, syndicate, or other group for the purpose of acquiring, holding, voting or disposing of the Securities. Each Purchaser represents and warrants that it (i) is not and will not become a party to (A) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any Person as to how such Person, if serving as a director or if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”) or (B) any Voting Commitment that could limit or interfere with such Person’s ability to comply, if serving as or elected as a director of the Company, with such Person’s fiduciary duties under applicable law; (ii) is not and will not become a party to any agreement, arrangement or understanding with any Person other than the corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Company.

(b)Each Purchaser has disclosed in writing to the Company a description of all Derivative Transactions (as defined below) by each such Purchaser in effect as of the date hereof, including the date of the transactions and the class, series and number of securities involved in, and the material economic terms of, such Derivative Transactions. For purposes of this Agreement, a “Derivative Transaction” means any agreement, arrangement, interest or understanding entered into by, or on behalf or for the benefit of, any Purchaser or any of its affiliates or associates, whether record or beneficial: (w) the value of which is derived in whole or in part from the value of any class or series of shares or other securities of the Company, (x) which otherwise provides any direct or indirect opportunity to gain or share in any gain derived from a change in the value of securities of the Company, (y) the effect or intent of which is to mitigate loss, manage risk or benefit of security value or price changes, or (z) which provides the right to vote or increase or decrease the voting power of, such Purchaser, or any of its affiliates or associates, with respect to any securities of the Company, which agreement, arrangement, interest or understanding may include, without limitation, any option, warrant, debt position, note, bond, convertible security, swap, stock appreciation right, short position, profit interest, hedge, right to dividends, voting agreement, performance-related fee or arrangement to borrow or lend shares (whether or not subject to payment, settlement, exercise or conversion in any such 

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class or series), and any proportionate interest of such Purchaser in the securities of the Company held by any general or limited partnership, or any limited liability company, of which such Purchaser is, directly or indirectly, a general partner or managing member.

4.3General Solicitation; Pre-Existing Relationship.  Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. Such Purchaser also represents that such Purchaser was contacted regarding the sale of the Securities by the Company (or an authorized agent or representative thereof) with which such Purchaser had a prior substantial pre-existing relationship.

4.4Purchase Entirely for Own Account.  The Securities to be received by such Purchaser hereunder will be acquired for such Purchaser’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of such Securities in compliance with applicable federal and state securities laws. Nothing contained herein shall be deemed a representation or warranty by such Purchaser to hold the Securities for any period of time.

4.5Experience of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

4.6Disclosure of Information.  Such Purchaser has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities.  Such Purchaser acknowledges receipt of copies of the SEC Reports (or access thereto via EDGAR). Neither such inquiries nor any other due diligence investigation conducted by such Purchaser shall modify, limit or otherwise affect such Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement.

4.7Restricted Securities.  Such Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act and may not be offered, resold, pledged or otherwise transferred except (i) pursuant to an exemption from registration under the Securities Act or pursuant to an effective registration statement in compliance with Section 5 under the Securities Act and (ii) in accordance with all applicable securities laws of the states of the United States and other jurisdictions.

4.8Commissions.  No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against the Company or upon 

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any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Purchaser.

4.9Canadian Matters. Unless such Purchaser has delivered to the Company a duly executed addendum for Purchasers in Canada, such Purchaser represents, warrants, acknowledges and agrees that: (i) it is not, and at Closing will not be, a resident of Canada; (ii) it is not purchasing the Securities for the benefit of a resident in Canada; (iii) it is purchasing the Securities for investment only and not with a view to distribution; and (iv) prior to the date that is four months and one day from the Closing, the Shares, Warrants and the Warrant Shares cannot be resold or transferred into Canada or to a resident of Canada through the facilities of the TSX or otherwise.

ARTICLE 5
REGISTRATION RIGHTS

5.1Registration Statement. 

(a)On or prior to the thirtieth (30th) day following the Closing under this Agreement, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register for resale all of the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance with the Securities Act).  Notwithstanding any other provision of this ARTICLE 5: (i) if the staff of the Commission does not permit all of the Registrable Securities to be registered on the initial Registration Statement filed pursuant to this Section 5.1(a) (the “Initial Registration Statement”), unless otherwise directed in writing by a Purchaser as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will be reduced by Registrable Securities represented by the Shares and Warrant Shares (applied, in the case that some Shares and Warrant Shares may be registered, to the Purchasers on a pro rata basis based on the total number of unregistered Shares and Warrant Shares held by such Purchasers, subject to a determination by the Commission that certain Purchasers must be reduced first based on the number of Shares and Warrant Shares held by such Purchasers); and (ii) in the event the Company amends the Initial Registration Statement to effect the reduction contemplated under clause (i) above, the Company shall file with the Commission, as promptly as allowed by the Commission or one or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as so amended (each, an “Additional Registration Statement”). 

(b)The Company shall use its commercially reasonable best efforts to cause each Registration Statement to be declared effective by the Commission as promptly as possible after the filing thereof, and shall use commercially reasonable best efforts to keep the Registration Statement continuously effective under the Securities Act until the earlier of (i) the date that all Registrable Securities covered by such Registration Statement have been sold or can be sold publicly pursuant to Rule 144 without volume or manner of sale restrictions or (ii) the date that is one year following the Effective Date (the “Effectiveness Period”). 

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(c)Notwithstanding anything in this Agreement to the contrary, the Company may, by written notice to the Purchasers, suspend sales under a Registration Statement after the Effective Date thereof and/or require that the Purchasers immediately cease the sale of shares of Common Stock pursuant thereto and/or defer the filing of any Additional Registration Statement if the Company is engaged in a material merger, acquisition or sale or any other material pending development and the Board of Directors determines in good faith, by appropriate resolutions, that, as a result of such activity, it would be materially detrimental to the Company to maintain a Registration Statement at such time. Upon receipt of such notice, each Purchaser agrees to immediately discontinue any sales of Registrable Securities pursuant to such Registration Statement until such Purchaser is advised in writing by the Company that the current Prospectus or amended Prospectus, as applicable, may be used. In no event, however, shall this right be exercised to suspend sales beyond the period during which (in the good faith determination of the Board of Directors) the failure to require such suspension would be materially detrimental to the Company. The Company’s rights under this Section 5.1(c) may be exercised for a period of no more than thirty (30) consecutive Trading Days and not more than three times in any twelve-month period. Immediately after the end of any suspension period under this Section 5.1(c) during the Effectiveness Period, the Company shall take all necessary actions (including filing any required supplemental prospectus) to restore the effectiveness of the applicable Registration Statement and the ability of the Purchasers to publicly resell their Registrable Securities pursuant to such effective Registration Statement. 

5.2Registration Procedures.  In connection with the Company’s registration obligations hereunder, the Company shall: 

(a)(i) Subject to Section 5.1(c), prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective, as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; and (ii) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the applicable period in accordance with the intended methods of disposition by the Purchasers thereof set forth in the Registration Statement as so amended or in such Prospectus as so supplemented; provided, however, that, subject to applicable requirements, each Purchaser shall be responsible for the delivery of the Prospectus to the Persons to whom such Purchaser sells any of the Securities (including in accordance with Rule 172 under the Securities Act), and each Purchaser agrees to dispose of Registrable Securities in compliance with the plan of distribution described in the Registration Statement and otherwise in compliance with applicable federal and state securities laws.

(b)Notify the Purchasers as promptly as reasonably possible, and if requested by the Purchasers, confirm such notice in writing no later than ten (10) Trading Days thereafter, of any of the following events: (i) any Registration Statement or any post-effective amendment is declared effective; (ii) the Commission issues any stop order suspending the effectiveness of any Registration Statement or initiates any Proceedings for that purpose; or (iii) the Company receives notice of any suspension of the qualification or exemption from qualification of any 

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Registrable Securities for sale in any jurisdiction, or the initiation or threat of any Proceeding for such purpose.

(c)Use commercially reasonable best efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of any Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as possible. 

(d)If requested by a Purchaser, provide such Purchaser, without charge, at least one (1) conformed copy of each Registration Statement and each amendment thereto, including financial statements and schedules, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission’s EDGAR system. 

(e)Promptly deliver to each Purchaser, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Purchasers in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto to the extent permitted by federal and state securities laws and regulations. 

(f)Prior to any resale of Registrable Securities by a Purchaser, use commercially reasonable best efforts to register or qualify or cooperate with the selling Purchasers in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Purchaser requests in writing, to keep each such registration or qualification (or exemption therefrom) effective for so long as required, but not to exceed the duration of the Effectiveness Period, and to do any and all other acts or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject. 

(g)It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of any particular Purchaser that such Purchaser furnish to the Company a completed Selling Stockholder Questionnaire in the form attached hereto as Exhibit E (the “Selling Stockholder Questionnaire”) and such other information regarding itself, the Registrable Securities and other shares of Common Stock held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall complete and execute such documents in connection with such registration as the Company may reasonably request, except in the case of any such information referred to 

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in this paragraph, to the extent the failure to provide such information does not materially affect the Company’s ability to comply with such obligations. 

(h)The Company shall comply with all applicable rules and regulations of the Commission under the Securities Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Purchasers in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Purchasers are required to make available a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder. 

5.3Registration Expenses.  The Company shall pay all fees and expenses incident to the performance of or compliance with ARTICLE 5 of this Agreement by the Company, including without limitation (a) all registration and filing fees and expenses, including without limitation those related to filings with the Commission, any Trading Market, and in connection with applicable state securities or Blue Sky laws, (b) printing expenses (including without limitation expenses of printing certificates for Registrable Securities), (c) messenger, telephone and delivery expenses, (d) fees and disbursements of counsel for the Company and (e) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In no event shall the Company be responsible for any underwriting, broker or similar fees or commissions of any Purchaser or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Purchasers.

5.4Indemnification. 

(a)Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Purchaser, the officers, directors, partners, members, agents and employees of each of them, each Person who controls any such Purchaser (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all Losses, as incurred, arising out of or relating to any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities, any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or in any amendment or supplement thereto, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Purchaser furnished in writing to the Company by such Purchaser for use therein, or to the extent that such information relates to such Purchaser or such Purchaser’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved by 

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such Purchaser expressly for use in the Registration Statement, or (B) with respect to any Prospectus, if the untrue statement or omission of material fact contained in such Prospectus was corrected on a timely basis in the Prospectus, as then amended or supplemented, if such corrected prospectus was timely made available by the Company to the Purchaser, and the Purchaser seeking indemnity hereunder was advised in writing not to use the incorrect prospectus prior to the use giving rise to Losses. 

(b)Indemnification by Purchasers.  Each Purchaser shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a final judgment not subject to appeal or review) arising solely out of any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising out of or relating to any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement or omission is contained in any information so furnished by such Purchaser in writing to the Company specifically for inclusion in such Registration Statement or such Prospectus or to the extent that (i) such untrue statements or omissions are based solely upon information regarding such Purchaser furnished to the Company by such Purchaser in writing expressly for use in the Registration Statement or Prospectus, or to the extent that such information relates to such Purchaser or such Purchaser’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved by such Purchaser expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto. In no event shall the liability of any selling Purchaser hereunder be greater in amount than the dollar amount of the net proceeds received by such Purchaser upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(c)Conduct of Indemnification Proceedings.  

(i)If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 

(ii)An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and 

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expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have failed within fifteen (15) days of receiving notification of a Proceeding from an Indemnified Party to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; (iii) any counsel engaged by the applicable Indemnifying Party shall fail to timely commence or diligently conduct the defense of any such claim and such failure has materially prejudiced (or, in the reasonable judgment of the Indemnified Party, is in danger of materially prejudicing) the outcome of the applicable claim; or (iv) such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to or may exist between the applicable Indemnifying Party and Indemnified Party or that there may be one or more different or additional defenses, claims, counterclaims or causes of action available to such Indemnified Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of separate counsel shall be at the expense of the Indemnifying Party). It being understood, however, that the Indemnifying Party shall not, in connection with any one such Proceeding (including separate Proceedings that have been or will be consolidated before a single judge) be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties, which firm shall be appointed by a majority of the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 

(iii)All reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined (not subject to appeal) that such Indemnified Party is not entitled to indemnification hereunder). 

(d)Contribution.  

(i)If a claim for indemnification under Section 5.4(a) or (b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in 

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question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5.4(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. 

(ii)The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5.4(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5.4(d), no Purchaser shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Purchaser from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

(iii)The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

5.5Dispositions.  Each Purchaser agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. Each Purchaser further agrees that, upon receipt of a request from the Company, such Purchaser will discontinue disposition of such Registrable Securities under the Registration Statement until such Purchaser is advised in writing by the Company that the use of the Prospectus, or amended Prospectus, as applicable, may be used. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. Each Purchaser, severally and not jointly with the other Purchasers, agrees that the removal of the restrictive legend from certificates representing Securities is predicated upon the Company’s reliance that the Purchaser will comply with the provisions of this subsection. 

5.6Amendments; Waivers.  Notwithstanding anything in this Agreement to the contrary, the provisions of this ARTICLE 5 may be amended or waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely), with the written consent of (i) the Company and (ii) the Purchaser or Purchasers holding at least a majority of the then outstanding Registrable Securities. Notwithstanding the foregoing, a waiver or consent to depart from the provisions of this ARTICLE 5 with respect to a matter that relates exclusively to the rights of Purchasers and that does not directly or indirectly affect the rights of other Purchasers may be given by Purchasers of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this 

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sentence may not be amended, modified or supplemented except in accordance with the provisions of the immediately preceding sentence.

ARTICLE 6
OTHER AGREEMENTS OF THE PARTIES

6.1Transfer Restrictions.

(a)The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement under the Securities Act or Rule 144, to the Company or to an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

(b)The Purchasers agree to the imprinting, so long as is required by this Section 6.1, of a legend on any of the Securities in substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR QUALIFICATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTIONS SET FORTH HEREIN AND IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF OCTOBER 21, 2020 AND AS AMENDED FROM TIME TO TIME, COPIES OF WHICH ARE AVAILABLE WITH THE SECRETARY OF THE COMPANY.

6.2Publicity.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company, such Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction), except that such Purchaser may disclose the terms to its financial, accounting, legal and other advisors. 

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6.3Use of Proceeds.  The Company shall use the net proceeds from the sale of the Securities hereunder for funding operations or for working capital or other general corporate purposes.

6.4Form D; Blue Sky Filings.  The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser. 

6.5Acknowledgment of Dilution.  The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of the Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

6.6Participation in Future Financing.  

(a)From the date hereof until the date that is the twelve (12) month anniversary of the Closing Date, upon any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), each Purchaser whose Subscription Amount as indicated on Exhibit A  attached hereto is at least Two Hundred Fifty Thousand Dollars ($250,000.00) (an “Eligible Purchaser”) shall have the right to participate in up to an amount of the Subsequent Financing equal to such Eligible Purchaser’s Pro Rata Portion of thirty percent (30%) of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.

(b)Between the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the Trading Day immediately prior to the Trading Day of the expected announcement of the Subsequent Financing (or, if the Trading Day of the expected announcement of the Subsequent Financing is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00 pm (New York City time) on the Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the day immediately prior to the Trading Day of the expected announcement of the Subsequent Financing), the Company shall deliver to each Eligible Purchaser a written notice of the Company’s intention to effect a Subsequent Financing (a “Subsequent Financing Notice”), which notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet and transaction documents relating thereto as an attachment.

23

 

 

(c)Any Eligible Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by 6:30 am (New York City time) on the Trading Day following the date on which the Subsequent Financing Notice is delivered to such Eligible Purchaser (the “Notice Termination Time”) that such Eligible Purchaser is willing to participate in the Subsequent Financing, the amount of such Eligible Purchaser’s participation, and representing and warranting that such Eligible Purchaser has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company receives no such notice from a Eligible Purchaser as of such Notice Termination Time, such Eligible Purchaser shall be deemed to have notified the Company that it does not elect to participate in such Subsequent Financing.

(d)If, by the Notice Termination Time, notifications by the Eligible Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

(e)The Company must provide the Eligible Purchasers with a second Subsequent Financing Notice, and the Eligible Purchasers will again have the right of participation set forth above in this Section 6.6, if the definitive agreement related to the initial Subsequent Financing Notice is not entered into for any reason on the terms set forth in such Subsequent Financing Notice within three (3) Trading Days after the date of delivery of the initial Subsequent Financing Notice.

(f)The Company and each Eligible Purchaser agree that, if any Eligible Purchaser elects to participate in the Subsequent Financing, the transaction documents related to the Subsequent Financing shall not include any term or provision that, directly or indirectly, will, or is intended to, exclude one or more of the Eligible Purchasers from participating in a Subsequent Financing, including, but not limited to, provisions whereby such Eligible Purchaser shall be required to agree to any restrictions on trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior written consent of such Eligible Purchaser. 

(g)Notwithstanding anything to the contrary in this Section 6.6 and unless otherwise agreed to by such Eligible Purchaser, the Company shall either confirm in writing to such Eligible Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Eligible Purchaser will not be in possession of any material, non-public information, by 9:30 am (New York City time) on the second (2nd) Trading Day following date of delivery of the Subsequent Financing Notice. If by 9:30 am (New York City time) on such second (2nd) Trading Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by such Eligible Purchaser, such transaction shall be deemed to have been abandoned and such Eligible Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.

24

 

 

(h)Notwithstanding the foregoing, solely with respect to registered public offerings or other Subsequent Financings in which securities are issued primarily pursuant to one or more registration statements filed with the SEC with an underwriter or placement agent engaged by the Company with respect to such Subsequent Financing (each, a “Registered Subsequent Financing”), (x) any corresponding Subsequent Financing Notice with respect thereto shall not be required to include pricing information to the extent such pricing information is then unavailable (but the Company (or the placement agent or underwriter, as applicable) shall provide such pricing information to each Eligible Purchaser as soon as commercially practicable following the pricing call or meeting, as applicable, of such Registered Subsequent Financing) and (y) in lieu of the end of the Notice Termination Time being determined as described above (but without modifying the obligation of the Company to deliver the Subsequent Financing Notice for such Registered Subsequent Financing without such pricing in the timeframe as described above), each Eligible Purchaser shall, after receipt of such pricing information, have the customary period, as reasonably determined by the underwriter or placement agent, as applicable, to thereafter elect to subscribe for all, or any part, of the securities as permitted pursuant to this Section 6.6 (or such greater allocation, at the discretion of the placement agent or underwriter, as applicable, and the Company) in Registered Subsequent Financing.

(i)Notwithstanding the foregoing, this Section 6.6 shall not apply in respect of an Exempt Issuance.

6.7Securities Laws Disclosure; Publicity.  The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. 

ARTICLE 7
TERMINATION

7.1Termination.  The obligations of the Company, on the one hand, and the Purchasers, on the other hand, to effect the Closing shall terminate as follows:

(a)Upon the mutual written consent of the Company and the Purchasers;

(b)By the Company if any of the conditions set forth in Section 2.5(a) shall have become incapable of fulfillment, and shall not have been waived by the Company; or

25

 

 

(c)By a Purchaser (with respect to itself only) if any of the conditions set forth in Section 2.5(b) shall have become incapable of fulfillment, and shall not have been waived by such Purchaser.

7.2Notice of Termination; Effect of Termination.  In the event of termination by the Company or any Purchaser of its obligations to effect the Closing pursuant to this ARTICLE 7, written notice thereof shall forthwith be given to the other Purchasers by the Company and the other Purchasers shall have the right to terminate their obligations to effect the Closing upon written notice to the Company and the other Purchasers. Nothing in this ARTICLE 7 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

ARTICLE 8
MISCELLANEOUS

8.1Fees and Expenses.  The Shares and Warrants are being offered by the Company and Joseph Gunnar & Co., LLC (the “Placement Agent”). The Placement Agent will receive a cash commission equal to 7% of the gross proceeds (the “Commission”) from the sale of the Shares and Warrants to certain investors (the “Placement Agent Investors”). In addition to the Placement Agent’s Commission, the Company will issue Warrants to the Placement Agent to purchase an amount of Common Stock equal to 7% of the aggregate number of Shares issued to Placement Agent Investors, with an exercise price of $0.565 per share. Additionally, H.C. Wainwright & Co., LLC (the “Prior Placement Agent”) is entitled to receive a cash commission equal to 6% of the gross proceeds from the sale of the Shares and Warrants to certain investors that were previously contacted by or introduced to the Company by the Prior Placement Agent. Each Purchaser and the Company shall pay its own respective costs and expenses in connection the Transaction Documents and the transactions contemplated hereby and thereby.

8.2Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.  At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

8.3Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via confirmed e-mail prior to 5:30 P.M., New York City time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via confirmed e-mail on a day that is not a Trading Day or later than 5:30 P.M., New York City time, on any Trading Day, (b) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service specifying next business day delivery, or (d) 

26

 

 

upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery. The address for such notices and communications shall be as follows:   

(i)if to the Company, to Helius Medical Technologies, Inc., 642 Newtown Yardley Road, Suite 100, Newton, Pennsylvania 18940, Attention: Chief Financial Officer, JLaViscount@heliusmedical.com, with a copy to Honigman LLP, 650 Trade Centre Way, Suite 200, Kalamazoo, Michigan 49002, Attention: Phillip D. Torrence, PTorrence@honigman.com; and

(ii)if to the Purchasers, to their respective addresses or e-mail addresses as set forth on the signature page hereto.

8.4Amendments; Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed by the Company; provided that such written instrument for such waiver or amendment is also signed by the Principal Purchasers if, and only if, in the reasonable and good faith determination of the Principal Purchasers, such waiver or amendment would reasonably be expected to be adverse to the interests of any Purchaser in a more than de minimis way or that would reasonably be expected to have more than a de minimis adverse effect on the value of such Purchaser’s investment in the Securities.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.  No consideration shall be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to all of the Purchasers who then hold the Securities.

8.5Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

8.6Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. With the consent of the Company which will not be unreasonably withheld, any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided, that a Purchaser may assign any or all rights under this Agreement to an Affiliate of such Purchaser without the consent of the Company, and provided, further: (i) such transferor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company after such assignment; (ii) the Company is furnished with written notice of (x) the name and address of such transferee or assignee and (y) if the transferor is assigning any registration rights under ARTICLE 5 hereof, the Registrable Securities with respect to which such registration rights are being transferred or assigned; (iii) following such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws, unless such disposition was made pursuant to an effective registration statement or an exemption under Rule 144 under the Securities Act; (iv) such transferee agrees in writing to be bound, with respect to the transferred Securities, by the 

27

 

 

provisions of the Transaction Documents that apply to the “Purchasers”; and (v) such transfer shall have been made in accordance with the applicable requirements of this Agreement and with all laws applicable thereto.

8.7No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and, except as provided in the immediately preceding sentence, is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

8.8Governing Law; Jurisdiction.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the state and federal courts located in the State of Delaware for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

8.9WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

8.10Survival.  The representations and warranties of the Company contained herein shall survive the Closing for a period of six (6) months.  The representations and warranties of the Purchasers shall survive the Closing indefinitely.  Notwithstanding anything in this Agreement to the contrary, no Purchaser shall have any claim for a breach of any representation or warranty of the Company and each Purchaser shall be deemed to have waived and released any claims for such a breach if such Purchaser had actual knowledge of the particular breach prior to the Closing.

8.11Counterparts/Electronic Execution and Delivery.  This Agreement may be executed in one or more counterparts and by facsimile, each of which shall constitute an original and all of which together shall constitute one and the same instrument.  Signatures of the parties transmitted by facsimile or via .pdf format shall be deemed to be their original signatures for all purposes.  The words “execution,” “signed,” “signature,” and words of like import shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the Delaware Uniform Electronic Transactions Act, the Pennsylvania 

28

 

 

Uniform Electronic Transactions Act, or any other similar state laws based on the Uniform Electronic Transactions Act.  This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments hereto or thereto, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”), will be treated in all manner and respects as an original agreement or instrument and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto will re-execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument will raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.

8.12Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

8.13Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

8.14Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereof or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers 

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with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. 

8.15Adjustments in Share Numbers and Prices.  In the event of any stock split, subdivision, dividend or distribution payable in shares of the Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of the Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in any Transaction Document to a number of shares or a price per share shall be deemed to be amended to appropriately account for such event.

Signatures on the Following Page

 

 

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Exhibit 10.1

In Witness Whereof, the Company and each Purchaser have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Helius Medical Technologies, Inc.

 

 

By:

Name:

Title:

 

Signature Page to Securities Purchase Agreement

 

 

In Witness Whereof, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	

	
NAME OF PURCHASER:

 

By:

Name:

Title:

 

Subscription Amount: $

 

Number of shares of the Common Stock to be Acquired:

 

	
 
	
SSN / Tax ID No.: 
	

 

Address for Notice: 
____________________________________

____________________________________

Telephone No.: 

 

Facsimile No.: 

 

E-mail Address: 

 

	
 
	
Attention: 
	

 

 

 

Delivery Instructions:

 

(if different than above)

 

c/o 

Street: 

City/State/Zip: 

Attention:

Telephone No.: 

Signature Page to Securities Purchase AgreementExhibit
10.1

 

EMPLOYMENT
SEPARATION AGREEMENT

 

This
Employment Separation Agreement (the “Agreement”) is made and entered into by and between James B. Boyd (“Executive”)
and Marrone Bio Innovations, Inc., a Delaware corporation (the “Company”), effective as of September, 21 2020
(the “Effective Date”).

 

W
I T N E S S E T H:

 

WHEREAS,
Executive is the President and Chief Financial Officer of the Company; and

 

WHEREAS,
Executive is party to an employment offer letter agreement with the Company, dated August 14, 2017 (the “Offer Letter”),
an Employee Confidential Information and Assignment of Inventions Agreement with the Company, attached as Exhibit A (including
exhibits thereto, and a Change in Control Agreement with the Company, effective as of June 17, 2016 (the “Change in Control
Agreement” and, together with the Offer Letter and the Inventions and Restrictive Covenant Agreement, the “Employment
Agreements”);

 

WHEREAS,
the Company and the Executive have agreed to the termination of Executive’s employment with the Company in accordance with
this Agreement; and

 

WHEREAS,
the Company and Executive wish to set forth herein certain agreements and understandings in this Agreement relating to Executive’s
termination of employment;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration,
the legal sufficiency of which is hereby acknowledged, the Company and Executive agree as follows:

 

1.
Employment Separation.

 

(a) Termination
of Employment; Resignation as Officer. Executive’s employment with the Company will terminate, and Executive shall
be deemed to have resigned from service as President and Chief Financial Officer of the Company (and any other positions held
with the Company or any affiliates), effective (i) at 11:59 P.M. Pacific Time on the day before the day another individual
commences service as Chief Financial Officer of the Company, or, if the Chief Executive Officer of the Company (the
“CEO”) desires that Executive remain employed to provide transition services following such date, such
later date as may be agreed to by Executive and the CEO or (ii) on such earlier date as the CEO determines (the
“Termination Date”), subject to the Company’s continued right to terminate the Executive’s
employment due to Executive’s Disability (as defined in the Change in Control Agreement) or for “Cause” (as
defined in the Change in Control Agreement). Executive and the Company are separately entering to a consulting agreement
substantially in the form attached hereto as Exhibit D (the “Consulting Agreement”) relating to
Executive’s provision of certain consulting services following the Termination Date.

 

(b)
Payment of Accrued Amounts. In connection with Executive’s termination of employment, Executive will receive (a)
any unpaid salary earned through the Termination Date and any unused vacation accrued through the Termination Date (payable on
the Termination Date) and (b) reimbursement for any unreimbursed business expenses properly incurred by Executive through the
Termination Date, in accordance with the Company’s expense reimbursement policy (the “Accrued Amounts”).

 

    	1 

    	 

    

(c)
No Further Employee Compensation and Benefits. Other than the payments and benefits specifically set forth in this Agreement,
the Executive agrees that the Company and its subsidiaries and controlled affiliates do not owe Executive any additional payments,
compensation, remuneration, bonuses, incentive compensation (cash or equity-based, including, without limitation, options, restricted
stock and restricted stock units), benefits, warrants, severance, reimbursement of expenses or commissions of any kind whatsoever,
or other similar compensation, including any obligations under the Offer Letter or the Change in Control Agreement, and except
as provided in this Agreement, Executive is not entitled to any further compensation or eligibility for participation in any benefit
plans, agreements, or arrangements maintained or contributed to by the Company or its subsidiaries and other affiliates, if any,
after the Termination Date; provided, however, that the foregoing shall not extend to (a) any vested benefits under
the Company’s 401(k) retirement plan, if any, and the right to elect continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”), (b) Executive’s rights, if any, to indemnification or advancement
of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance document,
or any applicable insurance policy or applicable law or any indemnification agreement with Executive, or (c) Executive’s
rights and entitlements with respect to outstanding equity awards, which shall remain subject to the terms and conditions of the
applicable award agreements and plan(s) pursuant to which such awards were granted, as may be amended from time to time, including
by this Agreement.

 

(d)
No Representation as Company Officer. With the exception of the duties and responsibilities set forth in this Agreement,
Executive acknowledges and agrees that he is relieved of all duties and responsibilities for the Company and its subsidiaries
and other affiliates as of the Termination Date, that after the Termination Date, Executive will not have the authority to bind
the Company or any of its subsidiaries or other affiliates, and that after the Termination Date, Executive will not contact the
Company’s stockholders or any past, current, or prospective customers, distributors, manufacturers, partners or suppliers
of the Company or any of its subsidiaries, affiliates or licensees on behalf of the Company or any of its subsidiaries or other
affiliates. Effective as of 11:59 P.M. Pacific Time on the Termination Date, Executive shall cease and be deemed to have resigned
from any and all titles, positions and appointments the Executive holds with any of the Company’s subsidiaries or controlled
affiliates, whether as an officer, director, employee, trustee, committee member or otherwise. Executive agrees to execute any
documents reasonably requested by the Company in accordance with the preceding sentence.

 

(e)
General Release; Continued Employment Terms; Eligibility for Severance Entitlements. Provided Executive signs and delivers
to the Company the general release attached as Exhibit B within twenty-one (21) days after the date Executive first receives it
from the Company (the “General Release”) and does not revoke the General Release within the seven (7) day revocation
period described therein, Executive’s employment with the Company will continue through the Termination Date at the same
salary as in effect on the Effective Date, subject to the terms of the Employment Agreements (as modified by this Agreement),
Executive will be eligible to earn the Severance Entitlements (as that term is defined in Section 1(f) below), and the Company
shall directly pay Executive’s legal fees and costs incurred in the negotiation of this Agreement and the Consulting Agreement
within 60 days of presentation of an invoice therefor, provided that such fees shall not exceed $5,000. Executive acknowledges
and agrees that Executive’s continued employment, his eligibility to earn the Severance Entitlements and the Company’s
agreement to pay up to $5,000 in legal fees and costs incurred in the negotiation of this Agreement and the Consulting Agreement
constitute full and adequate consideration for the General Release.

 

    	2 

    	 

    

 

(f)
Reaffirmation Agreement; Severance Payments; Vesting of Equity Awards. In addition to the Accrued Amounts, subject to Section
2 of this Agreement, if Executive (i) remains employed through the Termination Date and Executive’s employment terminates
pursuant to this Agreement as of the Termination Date (ii) signs, delivers and does not revoke the General Release as set forth
in Section 1(e), and (iii) signs and delivers to the Company the Reaffirmation Agreement attached as Exhibit C (the “Reaffirmation
Agreement”) no earlier than the Termination Date and no later than the second day following the Termination Date or
within twenty-one (21) days after the date Executive first receives the Reaffirmation Agreement from the Company, whichever is
later, and does not revoke the Reaffirmation Agreement within the seven (7) day revocation period described therein, Executive
shall be entitled to the following severance entitlements (collectively referred to herein as the “Severance Entitlements”):
(A) the Company will continue to pay Executive his annual base salary for 12 months following the Termination Date (payable at
the annual rate of $330,000 and paid in accordance with the Company’s normal payroll practices, with the first of such payments
being made on the first payroll date after the Reaffirmation Agreement becomes irrevocable and including any salary payments relating
to the period between the Termination Date and such first payment date), which payments shall continue to Executive’s estate
in the event of his death, (B) Executive’s unvested restricted stock unit (“RSU”) awards that are outstanding
on the Termination Date shall become fully vested as of the date the Reaffirmation Agreement becomes irrevocable (for clarity,
all of Executive’s outstanding RSUs, including any unvested RSUs that become vested pursuant to this Agreement, shall remain
subject to the terms of the governing RSU award agreements and will be settled in accordance with the terms of such award agreements
on the first business day following the six-month anniversary of the date of the Executive’s separation from service (as
that term is used in the RSU award agreements) or, if earlier, Executive’s death), (C) all of Executive’s outstanding
unvested stock options will become fully vested as of the date the Reaffirmation Agreement becomes irrevocable and all of Executive’s
stock options will remain exercisable until the earlier of (x) the one year anniversary of the date Executive ceases providing
consulting services pursuant to the Consulting Agreement and (y) the last day of the option’s full term, and otherwise in
accordance with the terms of the applicable award agreements and plan pursuant to which the stock options were granted, (D) Executive
will remain eligible to earn a prorated portion of his 2020 annual bonus (or the full 2020 annual bonus and a prorated portion
of the 2021 annual bonus if Executive remains employed through January 1, 2021) without regard to the termination of his employment
and notwithstanding the annual bonus not generally being paid to terminated employees, calculated based on Executive’s individual
goals (including transition goals agreed to by the CEO and Executive relating to the period following the Effective Date and ending
on the Termination Date), and with Company-wide goals and all other terms determined, and the bonus paid in cash, in accordance
with the terms of the Company’s annual bonus plan and otherwise as applied to other active senior executives of the Company,
and, with respect to Executive’s annual bonus for the year in which the Termination Date occurs, prorated by multiplying
such earned annual bonus by a fraction, the numerator of which is the number of days in the year in which the Termination Date
occurs through the Termination Date and the denominator of which is 365, and (E) if Executive timely elects continuation coverage
under COBRA, the Company will pay Executive’s COBRA continuation coverage premium for medical, dental and vision benefits
for Executive and his eligible dependents for 12 months following the Termination Date (or, if earlier, until the applicable COBRA
continuation period ends). Executive also acknowledges and agrees that Severance Entitlements constitute full and adequate consideration
for the Reaffirmation Agreement.

 

    	3 

    	 

    

(g)
Rights and Obligations under Offer Letter, Change in Control Agreement and Inventions and Restrictive Covenant Agreement.
The Offer Letter and the Change in Control Agreement will terminate and be of no further force or effect after the Termination
Date. Except for the payments and benefits provided for in this Agreement, Executive acknowledges and agrees that he is not entitled
to any severance payments or benefits under the Offer Letter, the Change in Control Agreement or otherwise as a result of the
termination of his employment. Executive represents that he is in compliance with, and will continue to comply with all obligations
set forth in the Inventions and Restrictive Covenant Agreement in accordance with their terms following the Termination Date,
and that nothing herein or otherwise alters in any way the terms of the Inventions and Restrictive Covenant Agreement or its survival
after the termination of Executive’s employment with the Company (except for the third sentence of Paragraph 8(a) of the
Inventions and Restrictive Covenant Agreement, which the Company hereby waives). Executive further agrees to execute and deliver
the Termination Certification referenced in the Inventions and Restrictive Covenant Agreement; provided, for the avoidance of
doubt, that notwithstanding anything to the contrary in the Termination Certification, Executive will be permitted to keep his
Company-issued laptop, monitor, docking station, mouse and iPad/tablet (subject to his ongoing obligations with respect to Company
confidential information), provided that after the Termination Date he shall not have access to the Company’s internal drives
or network.

 

(h)
Protected Rights; Defend Trade Secrets Act Notification:

 

Notwithstanding
anything to the contrary in the Inventions and Restrictive Covenant Agreement:

 

(i)
Executive is hereby notified that 18 U.S.C. § 1833(b) states as follows:

 

“An
individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a
trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly
or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law;
or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.”

 

Accordingly,
notwithstanding anything to the contrary in this Agreement or the Inventions and Restrictive Covenant Agreement, Executive understands
that he has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney,
for the sole purpose of reporting or investigating a suspected violation of law. Executive understands that he also has the right
to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and
protected from public disclosure. Executive understands and acknowledges that nothing in this Agreement or the Inventions and
Restrictive Covenant Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade
secrets that are expressly allowed by 18 U.S.C. § 1833(b).

 

    	4 

    	 

    

(ii)
Nothing in this Agreement, the Inventions and Restrictive Covenant Agreement, the General Release or the Reaffirmation Agreement
shall prohibit or interfere with the Executive exercising protected rights, including rights under the National Labor Relations
Act, filing a charge with the Equal Employment Opportunity Commission; reporting possible violations of law to or participating
in an investigation by any federal, state or local government agency or commission such as the National Labor Relations Board,
the Department of Labor, OSHA, the Department of Justice, or the Securities and Exchange Commission. Executive does not need the
Company’s advance permission to file any such charge or report or to participate in any such investigation. Executive does,
however, waive any right to receive any monetary award or benefit resulting from such a charge, report, or investigation related
to any Executive Released Claims, except that Executive may receive and retain a monetary award from a government-administered
whistleblower award program.

 

2.
Failure to Comply with Employment Agreements or Employment Separation Terms. If (i) prior to the Termination Date, Executive
materially violates or otherwise materially breaches the terms of this Agreement or the Employment Agreements, where such breach
remains uncured fifteen days after written notification is provided to the Executive (unless such breach is unable to be cured,
in which case no fifteen day notice period shall be required), or (ii) prior to the Termination Date, Executive is terminated
for “Cause” (as defined in the Change in Control Agreement”) or resigns, or (iii) if Executive has not executed
(or revokes) the General Release or the Reaffirmation Agreement as provided for and within the time limits set forth in Sections
1(e) and 1(f) of this Agreement (any such event, a “Termination Event”), all of Executive’s unexercised
RSUs and all of Executive’s unexercised stock options (whether or not vested) will immediately be forfeited and Executive
will have no further rights with respect to such awards, Executive shall have no rights to the Severance Entitlements, and the
Company shall have no further obligations pursuant to Section 4(b). All other provisions of this Agreement, the General Release,
and the Reaffirmation Agreement (as applicable) shall survive a Termination Event. For purposes of this section, material breach
of this Agreement includes, but is not limited to the following: any failure of Executive, whether due to bad faith or negligence,
to comply with the terms of the Inventions and Restrictive Covenants Agreement.

 

3.
No Admission of Liability. The parties acknowledge and agree that any payments or benefits provided to Executive under
the terms of this Agreement do not constitute an admission by either party or any of their affiliates that they have violated
any law or legal obligation with respect to any aspect of Executive’s employment with the Company.

 

    	5 

    	 

    

4.
Non-Disparagement.

 

(a)
Subject to Section 1(h)(ii), Executive agrees that he will not, directly or indirectly, (A) make any statement, whether in commercial
or non-commercial speech, disparaging or criticizing in any way the Company or any of its subsidiaries or affiliates, or any products
or services offered by any of these entities, or (B) engage in any other conduct or make any other statement that, in each case,
should reasonably be expected to impair the goodwill or reputation of the Company; provided, however, that nothing herein or elsewhere
shall prevent Executive from making truthful disclosures or statements (x) reasonably necessary in connection with any litigation,
arbitration or mediation or (y) as required by law or by any court, arbitrator, governmental body or other person with apparent
authority to require such disclosures or statements. Without limiting the foregoing, Executive acknowledges and agrees that negative,
critical or disparaging statements regarding this Agreement or the circumstances of Executive’s termination will impair
the goodwill and reputation of the Company and shall constitute grounds for a termination pursuant to Section 2(a).

 

(b)
The Company will inform its executive officers with the title of Vice President and above and members of its board of directors,
not to, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement, calculated
or likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon Executive; provided, however, that
nothing herein or elsewhere shall prevent such individual from making truthful disclosures or statements (x) reasonably necessary
in connection with any litigation, arbitration or mediation or (y) as required by law or by any court, arbitrator, governmental
body or other person with apparent authority to require such disclosures or statements.

 

5.
Entire Agreement. The Company and Executive each represents and warrants that no promise or inducement has been offered
or made except as herein set forth and that the consideration stated herein is the sole consideration for this Agreement. This
Agreement (including the exhibits hereto) constitute the complete and entire agreement, and states fully all agreements, understandings,
promises and commitments between the Company and Executive relating to the subject matter hereof. This Agreement supersedes and
cancels any and all other negotiations, understandings and agreements, oral or written, respecting the subject matter hereof,
between Executive and the Company or any of its subsidiaries or other affiliates (other than the Offer Letter and the Change in
Control Agreement, each of which will remain in effect until the Termination Date, and the Inventions and Restrictive Covenant
Agreement, which shall remain in full force and effect indefinitely to the extent by its terms it survives termination of Executive’s
employment, and other than the third sentence of Paragraph 8(a) of the Inventions and Restrictive Covenant Agreement, which the
Company hereby waives); provided, for the avoidance of doubt, that in the event of conflict between this Agreement and any of
the Employment Agreements, this Agreement shall control. This Agreement may not be modified except by an instrument in writing
signed by the party against whom the enforcement of any waiver, change, modification, or discharge is sought.

 

6.
Assignability; Successors; Governing Law. This Agreement is personal to Executive and Executive may not assign, pledge,
delegate or otherwise transfer to any person or entity any of Executive’s rights, obligations or duties under this Agreement.
Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise)
to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and
agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would
be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company”
will include any successor to the Company’s business and/or assets, regardless of whether such party executes and delivers
any assumption agreement, or any other successor that becomes bound by the terms of this Agreement by operation of law. This Agreement
shall be governed by, construed in accordance with, and enforced pursuant to the laws of the State of California without regard
to principles of conflict of laws. Subject to the Arbitration provision below, the Superior Court of Yolo County and/or the United
States District Court for the Eastern District of California shall have exclusive jurisdiction and venue over all controversies;
provided, however, that either Party may seek equitable remedies, including injunctive relief and specific performance,
for the purpose of protecting its intellectual property rights in any court of competent jurisdiction, wherever located.

 

    	6 

    	 

    

7.
Enforceability; Arbitration.

 

(a)
Each of the covenants and agreements set forth in this Agreement are separate and independent covenants, each of which has been
separately bargained for and the parties hereto intend that the provisions of each such covenant shall be enforced to the fullest
extent permissible. Should the whole or any part or provision of any such separate covenant be held or declared invalid, such
invalidity shall not in any way affect the validity of any other such covenant or of any part or provision of the same covenant
not also held or declared invalid. If any covenant shall be found to be invalid but would be valid if some part thereof were deleted
or the period or area of application reduced, then such covenant shall apply with such minimum modification as may be necessary
to make it valid and effective. The failure of either party at any time to require performance by the other party of any provision
hereunder will in no way affect the right of that party thereafter to enforce the same, nor will it affect any other party’s
right to enforce the same, or to enforce any of the other provisions in this Agreement; nor will the waiver by either party of
the breach of any provision hereof be taken or held to be a waiver of any prior or subsequent breach of such provision or as a
waiver of the provision itself.

 

(b)
The Company and Executive each agrees that any and all disputes arising out of the terms of this Agreement, the Exhibits hereto,
any of the matters herein released, and the Inventions and Restrictive Covenant Agreement will be subject to binding confidential
arbitration. “Confidential” means the fact of a dispute, the fact of the arbitration, the details of the arbitration,
and the result shall be kept confidential by the Parties. The arbitration shall be conducted by one arbitrator, under the auspices
of JAMS and under its then-current Streamlined Arbitration Rules and Procedures (if no disputed claim or counterclaim exceeds
$250,000, not including interest or attorneys’ fees), or under its then-current Comprehensive Arbitration Rules and Procedures
(if any disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees). Any arbitration will
be governed by the Federal Arbitration Act (“FAA”) and conducted in a manner consistent with the JAMS Rules,
supplemented by the California Rules of Civil Procedure, to the extent permitted by the FAA. The power of the arbitrator shall
not exceed that possessed by a judge in a Superior Court in California. The arbitrator shall issue a written opinion in support
of his or her decision, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator
is prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and
award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction.
The arbitration shall be held in Yolo County, California, or a mutually convenient location. The parties further agree that the
prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the
arbitration award. This paragraph will not prevent either party from seeking provisional relief (including a temporary restraining
order or preliminary injunction) from any court having jurisdiction over the parties and the subject matter of their dispute relating
to Executive’s obligations under this Agreement and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS
BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

    	7 

    	 

    

8.
Counterparts. This Agreement may be executed in counterparts, each of which together constitute one and the same instrument.
Signatures delivered by facsimile or email PDF shall be effective for all purposes.

 

9.
Notices. Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage
prepaid. In the case of Executive, mailed notices will be addressed to his at the home address which he most recently communicated
to the Company in writing. In the case of the Company, mailed notices will be addressed to its corporate headquarters, and all
notices will be directed to the attention of the CEO or General Counsel.

 

10.
No Construction against Drafter. No provision of this Agreement or any related document will be construed against or interpreted
to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having
or being deemed to have structured or drafted such provision.

 

11.
Taxes. Notwithstanding anything to the contrary in this Agreement, the Company may withhold from all amounts payable under
this Agreement all federal, state, local and foreign taxes that are required to be withheld pursuant to any applicable laws and
regulations. Notwithstanding anything to the contrary in this Agreement, Executive and the Company agree that this Agreement shall
be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
and authoritative guidance promulgated thereunder to the extent applicable (collectively “Section 409A”), and
all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties
under Section 409A. However, the Company makes no representation that any or all of the payments described in this Agreement will
be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any such payment.
Executive understands and agrees that Executive shall be solely responsible for the payment of any taxes, penalties, interest
or other expenses incurred by Executive on account of noncompliance with Section 409A and in no event will the Company, any of
its subsidiaries or other affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives,
shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors
or assigns be liable for any additional tax, interest or penalties that may be imposed on the Executive under Section 409A or
any damages for failing to comply with Section 409A.

 

[Signatures
appear on following page]

 

    	8 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Employment Separation Agreement as of the day and year set
forth below.

 

	 	Marrone
    Bio Innovations, Inc.
	 	 	 
	 	By:	/s/
    Kevin Helash
	Dated:
    September 21, 2020	Name:	Kevin
    Helash
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	EXECUTIVE
    
	Dated:
    September 21, 2020	 	 
	 	/s/ James B. Boyd
	 	James B. Boyd

 

[Signature
Page to Employment Separation Agreement]

 

    	 

    	 

    

 

Exhibit
A

 

Employee
Confidential Information and Assignment of Inventions Agreement

 

    	 

    	 

    

 

Exhibit
B

 

General
Release

 

This
General Release (“Release”) is entered into as of September 21, 2020, by and between James B. Boyd (“Executive”)
and Marrone Bio Innovations, Inc. (the “Company”). Executive and the Company are sometimes collectively referred
to as the “Parties.”

 

1.
In consideration for Executive’s execution of this Release and Executive’s promises and covenants contained (a) herein
and (b) in the Employment Separation Agreement between the Company and Executive (the “Employment Separation Agreement”),
the Company agrees to provide to Executive the benefit described in Section 1(e) of the Employment Separation Agreement, subject
to the effectiveness of this Release in accordance with paragraph 4 of this Release.

 

2.
Executive hereby reaffirms his promises and covenants set forth in the Employment Separation Agreement, the terms of which Separation
Agreement are incorporated herein by reference in their entirety as though fully set forth herein, including, without limitation,
Executive’s promises and covenants set forth in paragraphs 1, 2, 4, and 7 of the Employment Separation Agreement.

 

3.
Executive, on behalf of himself, his heirs, executors, agents, representatives, and assigns (collectively, the “Releasors”)
hereby fully acquits, releases, waives and discharges the Company, its and their affiliated, related, parent or subsidiary companies,
and its and their predecessors, successors, and present and former officers, directors, committee members, representatives, attorneys,
agents or employees (the “Company Parties”) from any and all claims, obligations, liabilities, complaints,
causes of action, charges, debts, and demands of whatever kind whatsoever, in law or in equity, known or unknown, asserted or
unasserted (“Claims”), which Executive has ever had or now has against the Company Parties, including without
limitation, Claims arising out of or in any way related to Executive’s relationship with any or all of the Company Parties
and all Claims with respect to any aspect of Executive’s employment, compensation, or termination from employment by the
Company (“Executive Released Claims”). Executive Released Claims include, but are not limited to:

 

(i)
all Claims arising from Executive’s employment with the Company or the termination of that employment, including Claims
for wrongful termination or retaliation and the terms and conditions of employment;

 

(ii)
all Claims related to Executive’s compensation or benefits from the Company, including, salary, wages, overtime, meal and
rest breaks, bonuses, commissions, incentive compensation, profit sharing, retirement benefits, paid time off, vacation, sick
leave, leaves of absence, expense reimbursements, equity, severance pay, and fringe benefits;

 

(iii)
all Claims for breach of contract, breach of quasi-contract, promissory estoppel, detrimental reliance, and breach of the implied
covenant of good faith and fair dealing;

 

(iv)
all tort Claims, including Claims for fraud, defamation, slander, libel, disparagement, negligent or intentional infliction of
emotional distress, personal injury, negligence, compensatory or punitive damages, negligent or intentional misrepresentation,
and discharge in violation of public policy;

 

(v)
all federal, state, and local statutory Claims, including Claims for discrimination, harassment, retaliation, attorneys’
fees, medical expenses, experts’ fees, costs and disbursements; and

 

(vi)
any other Claims of any kind whatsoever, arising from the beginning of time until the date Executive signs this Release, in each
case whether based on contract, tort, statute, local ordinance, regulation or any comparable law, public policy or common law
in any jurisdiction.

 

    	 

    	 

    

 

By
way of example and not in limitation of the foregoing, Executive Released Claims include any Claims arising under Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1991; the Civil Rights Acts of 1866
and/or 1871, 42 U.S.C. Section 1981; the Americans with Disabilities Act, 42 U.S.C. 12101 et seq., the Age Discrimination
in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.; the Family Medical Leave Act, 29 U.S.C. § 2601 et
seq.; Executive Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.; the federal
Worker Adjustment Retraining Notification Act (“WARN Act”), 29 U.S.C. § 2102 et seq., the California WARN
Act, California Labor Code § 1400 et seq., the California Fair Employment and Housing Act, Cal. Gov. Code §12900 et
seq., the California Labor Code and the orders of the California Industrial Welfare Commission. Executive and the Company
intend for this release to be enforced to the fullest extent permitted by law. EXECUTIVE UNDERSTANDS AND AGREES THAT THIS RELEASE
CONTAINS A GENERAL RELEASE OF ALL CLAIMS.

 

4.
Executive further unconditionally releases and forever discharges the Company Parties from any and all Claims that Executive may
have as of the date Executive signs this Release arising under the ADEA. By signing this Release, Executive acknowledges and confirms
that: (i) Executive has been advised by the Company to consult with an attorney of Executive’s choice before signing this
Release; (ii) Executive was given no fewer than twenty-one (21) days to consider the terms of this Release, although Executive
may sign it sooner if desired; (iii) Executive is providing this release in exchange for consideration in addition to that to
which Executive is already entitled; (iv) Executive has seven (7) days from the date of signing this Release to revoke this Release
by providing the Company with a written notice of revocation delivered to Linda Moore, General Counsel and Corporate Secretary,
at lmoore@marronebio.com or to the Company’s physical address at 1540 Drew Avenue, Davis, California 95618, in a manner
reasonably calculated to be received by the Company on or before the end of such seven-day period (“Revocation Period”);
(v) this Release will not become effective until the Revocation Period passes without Executive revoking the Agreement; (vi) the
release contained in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs
this Release, and (vii) Executive knowingly and voluntarily accepts the terms of this Release. Executive further agrees that any
change to this Release, whether material or immaterial, will not restart the twenty-one (21) day period for Executive to consider
the terms of this Release.

 

5.
The Releasors and the Company acknowledge that they are aware of the provisions of California Civil Code, Section 1542, which
reads as follows:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.”

 

The
Releasors hereby expressly give up all the benefits of Section 1542 and of any other similar law of this or any other jurisdiction.
The Releasors acknowledge that there may exist claims or facts in addition to or different from those which are now known or believed
by the Releasors to exist and the Releasors agree that it is their intention to fully settle and release such claims, whether
known or unknown, that may exist as of the date of this Release.

 

6.
Notwithstanding anything to the contrary set forth in paragraph 3, 4, or 5 of this Release, the Releasors do not waive, release
or discharge the Company Parties from Executive’s rights, if any, to vested benefits under the Company’s 401(k) retirement
plan or with respect to Executive’s outstanding equity awards, if any; Executive’s rights, if any, to indemnification
or advancement of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance
document, or any applicable insurance policy or applicable law, including Section 2802 of the California Labor Code; any Claim
which may arise in the future from events or actions occurring after the date that Executive executes this Release; Claims for
worker’s compensation benefits; Claims for unemployment insurance benefits; any Claims that cannot be released in accordance
with applicable law; and any rights created by this Release or the Employment Separation Agreement.

 

    	 

     

    

 

7.
Executive hereby represents that Executive has not filed or commenced any proceeding against any of the Releasees based upon any
Executive Released Claims.

 

8.
Executive warrants that no promise or inducement has been offered for this Release other than as set forth herein and that this
Release is executed without reliance upon any other promises or representations, oral or written. Any modification of this Release
must be made in writing and be signed by Executive and the Company.

 

9.
If any provision of this Release or compliance by Executive or the Company with any provision of the Release constitutes a violation
of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable
or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and
such provision will be enforced to the fullest extent permitted by law. If such modification is not possible, such provision,
to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of
this Release, which provisions will remain binding on both Executive and the Company. This Release is governed by, and construed
and interpreted in accordance with the laws of the State of California, without regard to principles of conflicts of law. This
Release, together with the Employment Separation Agreement, represents the entire understanding of the Parties with respect to
subject matter herein; no oral representations have been made or relied upon by the Parties. The Company and Executive each agrees
that any and all disputes arising out of the terms of this Agreement, any of the matters herein released, and the Inventions and
Restrictive Covenant Agreement will be subject to binding confidential arbitration. “Confidential” means the fact
of a dispute, the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties.
The arbitration shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration
Rules and Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees),
or under its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000,
not including interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”)
and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent
permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California.
The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision
and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those
allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment
on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California,
or a mutually convenient location. The parties further agree that the prevailing party in any arbitration will be entitled to
injunctive relief in any court of competent jurisdiction to enforce the arbitration award. This paragraph will not prevent either
party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having
jurisdiction over the parties and the subject matter of their dispute relating to Executive’s obligations under this Agreement
and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE
COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

10.
No action taken by the Parties hereto, or either of them, either previously or in connection with this Release, shall be deemed
or constructed to be: (a) an admission of the truth or falsity of any claims heretofore made; or (b) an acknowledgment or admission
by either party of any fault or liability whatsoever to the other party or to any third party.

 

11.
Each of the Company Parties, other than the Company, is intended to be a third party beneficiary of this Release.

 

[Signatures
appear on following page]

 

    	 

     

    

 

	EXECUTIVE’S
    ACCEPTANCE OF RELEASE
	 
	BEFORE
    SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING: I HAVE READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING
    UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED
    THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

 

	 Date
delivered to Executive: September 21, 2020
	 
	 	 
	Executed
    this 21st day of September, 2020.	 
	 	 
	/s/
    James B. Boyd	 
	James
    B. Boyd	 

 

[Signature
Page to General Release Agreement]

 

    	 

     

    

 

Exhibit
C

 

Reaffirmation
Agreement

 

This
Reaffirmation Agreement (the “Reaffirmation Agreement”) is entered into as of [●], 202[●], by and
between James B. Boyd (“Executive”) and Marrone Bio Innovations, Inc. (the “Company”). Executive
and the Company are sometimes collectively referred to as the “Parties.”

 

1.
Executive’s employment with the Company terminated on [●], 202[●] (the “Termination Date”).

 

2.
The purpose of this Reaffirmation Agreement is to effectuate the intent and agreement of the Parties as reflected in the General
Release between the Parties dated as of [●], 202[●] (the “General Release”), by advancing to the
execution date of this Reaffirmation Agreement the effective date of Executive’s general waiver and release of all Claims
against the Released Parties, as set forth in the Release Agreement.

 

3.
In consideration for Executive’s execution of this Reaffirmation Agreement and Executive’s promises and covenants
contained (a) herein and (b) in the Employment Separation Agreement between the Company and Executive (the “Employment
Separation Agreement”), the Company agrees to provide to Executive the benefit described in Section 1(f) of the Employment
Separation Agreement, subject to the effectiveness of this Release in accordance with paragraph 6 of this Release.

 

4.
Executive hereby reaffirms his promises and covenants set forth in the Employment Separation Agreement, the terms of which Separation
Agreement are incorporated herein by reference in their entirety as though fully set forth herein, including, without limitation,
Executive’s promises and covenants set forth in paragraphs 1, 2, 4, and 7 of the Employment Separation Agreement.

 

5.
Accordingly, with his signature below, Executive, on behalf of himself, his heirs, executors, agents, representatives, and assigns
(collectively, the “Releasors”), hereby specifically acknowledges and reaffirms that he the fully acquits,
releases, waives and discharges the Company, its and their affiliated, related, parent or subsidiary companies, and its and their
predecessors, successors, and present and former officers, directors, committee members, representatives, attorneys, agents or
employees (the “Company Parties”) from any and all claims, obligations, liabilities, complaints, causes of
action, charges, debts, and demands of whatever kind whatsoever, in law or in equity, known or unknown, asserted or unasserted
(“Claims”), which Executive has ever had or now has against the Company Parties, including without limitation,
Claims arising out of or in any way related to Executive’s relationship with any or all of the Company Parties and all Claims
with respect to any aspect of Executive’s employment, compensation, or termination from employment by the Company (“Executive
Released Claims”). Executive Released Claims include, but are not limited to:

 

(i)
all Claims arising from Executive’s employment with the Company or the termination of that employment, including Claims
for wrongful termination or retaliation and the terms and conditions of employment;

 

(ii)
all Claims related to Executive’s compensation or benefits from the Company, including, salary, wages, overtime, meal and
rest breaks, bonuses, commissions, incentive compensation, profit sharing, retirement benefits, paid time off, vacation, sick
leave, leaves of absence, expense reimbursements, equity, severance pay, and fringe benefits;

 

(iii)
all Claims for breach of contract, breach of quasi-contract, promissory estoppel, detrimental reliance, and breach of the implied
covenant of good faith and fair dealing;

 

    	 

     

    

 

(iv)
all tort Claims, including Claims for fraud, defamation, slander, libel, disparagement, negligent or intentional infliction of
emotional distress, personal injury, negligence, compensatory or punitive damages, negligent or intentional misrepresentation,
and discharge in violation of public policy;

 

(v)
all federal, state, and local statutory Claims, including Claims for discrimination, harassment, retaliation, attorneys’
fees, medical expenses, experts’ fees, costs and disbursements; and

 

(vi)
any other Claims of any kind whatsoever, arising from the beginning of time until the date Executive signs this Release, in each
case whether based on contract, tort, statute, local ordinance, regulation or any comparable law, public policy or common law
in any jurisdiction.

 

By
way of example and not in limitation of the foregoing, Executive Released Claims include any Claims arising under Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1991; the Civil Rights Acts of 1866
and/or 1871, 42 U.S.C. Section 1981; the Americans with Disabilities Act, 42 U.S.C. 12101 et seq., the Age Discrimination
in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.; the Family Medical Leave Act, 29 U.S.C. § 2601 et
seq.; Executive Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.; the federal
Worker Adjustment Retraining Notification Act (“WARN Act”), 29 U.S.C. § 2102 et seq., the California WARN
Act, California Labor Code § 1400 et seq., the California Fair Employment and Housing Act, Cal. Gov. Code §12900 et
seq., the California Labor Code and the orders of the California Industrial Welfare Commission. Executive and the Company
intend for this release to be enforced to the fullest extent permitted by law. EXECUTIVE UNDERSTANDS AND AGREES THAT THIS RELEASE
CONTAINS A GENERAL RELEASE OF ALL CLAIMS.

 

Executive
understands and agrees that such waiver and release will be effective as to all Claims arising on or before the date he executes
this Reaffirmation Agreement, subject to his effectuation of this Reaffirmation Agreement in the manner set forth in the next
Section hereof. Executive further understands and agrees that he will not be entitled to the consideration provided for in Section
1(f) of the Employment Separation Agreement unless and until Executive executes this Reaffirmation Agreement and the Revocation
Period described in the next Section hereof passes without Executive revoking this Reaffirmation Agreement.

 

6.
Executive further unconditionally releases and forever discharges the Company Parties from any and all Claims that Executive may
have as of the date Executive signs this Reaffirmation Agreement arising under the ADEA. By signing this Reaffirmation Agreement,
Executive acknowledges and confirms that: (i) Executive has been advised by the Company to consult with an attorney of Executive’s
choice before signing this Reaffirmation Agreement; (ii) Executive was given no fewer than twenty-one (21) days to consider the
terms of this Reaffirmation Agreement, although Executive may sign it sooner if desired; (iii) Executive is providing the release
provided for in in this Reaffirmation Agreement is in exchange for consideration in addition to that to which Executive is already
entitled; (iv) Executive has seven (7) days from the date of signing this Reaffirmation Agreement to revoke this Reaffirmation
Agreement by providing the Company with a written notice of revocation delivered to Linda Moore, General Counsel and Corporate
Secretary, at lmoore@marronebio.com or to the Company’s physical address at 1540 Drew Avenue, Davis, California 95618, in
a manner reasonably calculated to be received by the Company on or before the end of such seven-day period (“Revocation
Period”); (v) this Reaffirmation Agreement will not become effective until the Revocation Period passes without Executive
revoking this Reaffirmation Agreement; (vi) the release contained in this Reaffirmation Agreement does not apply to rights and
claims that may arise after the date on which Executive signs this Reaffirmation Agreement, and (vii) Executive knowingly and
voluntarily accepts the terms of this Reaffirmation Agreement. Executive further agrees that any change to this Reaffirmation
Agreement or the Release Agreement, whether material or immaterial, will not restart the twenty-one (21) day period for Executive
to consider the terms of this Reaffirmation Agreement.

 

    	 

     

    

 

7.
The Releasors and the Company acknowledge that they are aware of the provisions of California Civil Code, Section 1542, which
reads as follows:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.”

 

The
Releasors hereby expressly give up all the benefits of Section 1542 and of any other similar law of this or any other jurisdiction.
The Releasors acknowledge that there may exist claims or facts in addition to or different from those which are now known or believed
by the Releasors to exist and the Releasors agree that it is their intention to fully settle and release such claims, whether
known or unknown, that may exist as of the date of this Release.

 

8.
Notwithstanding anything to the contrary set forth in paragraph 5, 6, or 7 of this Release, the Releasors do not waive, release
or discharge the Company Parties from Executive’s rights, if any, to vested benefits under the Company’s 401(k) retirement
plan or with respect to Executive’s outstanding equity awards, if any; Executive’s rights, if any, to indemnification
or advancement of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance
document, or any applicable insurance policy or applicable law, including Section 2802 of the California Labor Code; any Claim
which may arise in the future from events or actions occurring after the date that Executive executes this Reaffirmation Agreement;
Claims for worker’s compensation benefits; Claims for unemployment insurance benefits; any Claims that cannot be released
in accordance with applicable law; and any rights created by this Reaffirmation Agreement, the General Release or the Employment
Separation Agreement.

 

9.
Executive hereby represents that Executive has not filed or commenced any proceeding against any of the Releasees based upon any
Executive Released Claims.

 

10.
Executive warrants that no promise or inducement has been offered for this Reaffirmation Agreement other than as set forth herein
and that this Reaffirmation Agreement is executed without reliance upon any other promises or representations, oral or written.
Any modification of this Reaffirmation Agreement must be made in writing and be signed by Executive and the Company.

 

11.
If any provision of this Reaffirmation Agreement or compliance by Executive or the Company with any provision of this Reaffirmation
Agreement constitutes a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only
that it is in violation of law, unenforceable or void, will be deemed modified to the extent necessary so that it is no longer
in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law. If such
modification is not possible, such provision, to the extent that it is in violation of law, unenforceable or void, will be deemed
severable from the remaining provisions of this Reaffirmation Agreement, which provisions will remain binding on both Executive
and the Company. This Reaffirmation Agreement is governed by, and construed and interpreted in accordance with the laws of the
State of California, without regard to principles of conflicts of law. This Reaffirmation Agreement, together with the Employment
Separation Agreement, represents the entire understanding of the Parties with respect to subject matter herein; no oral representations
have been made or relied upon by the Parties. The Company and Executive each agrees that any and all disputes arising out of the
terms of this Reaffirmation Agreement, the Exhibits hereto, any of the matters herein released, and the Inventions and Restrictive
Covenant Agreement will be subject to binding confidential arbitration. “Confidential” means the fact of a dispute,
the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties. The arbitration
shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration Rules and
Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees), or under
its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000, not including
interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”)
and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent
permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California.
The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision
and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those
allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment
on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California,
or a mutually convenient location. The parties further agree that the prevailing party in any arbitration will be entitled to
injunctive relief in any court of competent jurisdiction to enforce the arbitration award. This paragraph will not prevent either
party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having
jurisdiction over the parties and the subject matter of their dispute relating to Executive’s obligations under this Agreement
and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE
COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

12.
No action taken by the Parties hereto, or either of them, either previously or in connection with this Reaffirmation Agreement,
shall be deemed or constructed to be: (a) an admission of the truth or falsity of any claims heretofore made; or (b) an acknowledgment
or admission by either party of any fault or liability whatsoever to the other party or to any third party.

 

13.
Each of the Company Parties, other than the Company, is intended to be a third party beneficiary of this Reaffirmation Agreement.

 

[Signatures
appear on following page]

 

    	 

     

    

  

	EXECUTIVE’S
    ACCEPTANCE OF RELEASE
	 
	BEFORE
    SIGNING MY NAME TO THE REAFFIRMATION AGREEMENT, I STATE THE FOLLOWING: I HAVE READ THE REAFFIRMATION AGREEMENT, I UNDERSTAND
    IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN
    JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING THE REAFFIRMATION AGREEMENT, AND I HAVE
    SIGNED IT KNOWINGLY AND VOLUNTARILY.

 

	 Date
delivered to Executive: [●], 202[●].
	 
	 	 
	Executed
    this ___________ day of [●], 202[●].	 
	 	 
	 	 
	James
B. Boyd
	 

 

[Signature
Page to Reaffirmation Agreement]

 

    	 

     

    

 

Exhibit
D

 

Consulting
Agreement

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