Document:

EXHIBIT 10.2

 

PROFESSIONAL SERVICES AGREEMENT

 

This Professional Services
Agreement (“Agreement”) is entered into effective as of September 21, 2012 (“Effective Date”),
between ACCESS BUSINESS GROUP INTERNATIONAL LLC, a Michigan limited liability company, with offices located at 7575 Fulton
Street East, Ada, Michigan 49355 (“ABGIL”), and INTERLEUKIN GENETICS, INC., with offices located at 135
Beaver Street Waltham, Massachusetts 02452 (“Contractor”). The parties agree as follows:

 

This Agreement sets
forth the terms and conditions under which ABGIL or ABGIL’s Affiliate (as defined herein) will purchase from Contractor,
and under which Contractor will provide to ABGIL or ABGIL’s Affiliate, certain services as may from time to time be agreed
by the parties in a written SOW (as defined in Section 1.1 below). As used in this Agreement, “Affiliate” means
any corporation, company, partnership, trust, sole proprietorship, or other entity or individual that, in whole or in part, (a)
is owned or controlled by such party; (b) owns or controls such party; or (c) is under common ownership or control with such party.
Contractor shall not be deemed to be an Affiliate of ABGIL for purposes of this Agreement.

 

1.           SCOPE
OF SERVICES.

 

1.1           Services.
Contractor agrees to provide the services and deliverables as described on separately executed statements of work (“SOW”),
as may from time to time be entered into between ABGIL and Contractor or between ABGIL’s Affiliate and Contractor. An SOW
may be executed by a duly authorized representative of ABGIL or ABGIL’s Affiliate. If an Affiliate of ABGIL has executed
a SOW, then with respect to such SOW, the term “ABGIL” as used in this Agreement shall refer to the Affiliate that
has executed such SOW.

 

1.2           Statement
of Work. Each SOW shall be substantially in the form attached hereto as Exhibit A and shall specifically describe the
services to be performed by Contractor, the deliverables, the performance schedule, the applicable pricing, the payment terms,
and other material terms and conditions. Time is of the essence with respect to all of Contractor’s obligations in the SOW.

 

1.3           Conflicting
Terms. Each SOW shall be incorporated into, made a part of, and governed by the terms and conditions of this Agreement. If
there is a conflict between this Agreement and any SOW, the terms of this Agreement shall control, unless the SOW specifically
amends this Agreement by reference to this Section and the Section(s) to be amended. For the avoidance of doubt, the parties may
agree to amend and replace any or all of Section 4 and Section 8.3 hereof in an SOW that specifically amends this Agreement by
reference to Sections 1.3, Section 4 and Section 8.3.

 

2.           TERM.

 

2.1           This
Agreement. This Agreement shall remain in effect until terminated as provided in Section 8.

 

2.2           SOWs.
Each SOW shall remain in effect until the earliest to occur of the following events: (a) the SOW is terminated as provided in Section
8 or (b) the SOW has expired on its own terms (unless the parties have agreed, in writing, to extend the term of such SOW).

 

    	 

    	 

    

 

3.           PRICE
AND PAYMENT.

 

3.1           Pricing.
The services provided by Contractor shall be at the pricing stated in the applicable SOW.

 

3.1.1           Fixed
Fee. If an SOW lists a price for a particular service or deliverable and such price is specified without qualification, the
amount quoted shall be deemed a fixed fee. Contractor shall provide such service or deliverable for the fixed fee (including reimbursable
expenses), and ABGIL shall not be liable for any additional charges if Contractor’s actual costs and reimbursable expenses
for such service or deliverable exceed the fixed fee.

 

3.1.2           Time
and Material. Payment for a service or deliverable to be provided on a time-and-material basis shall be determined in accordance
with the hourly rates set forth in the applicable SOW multiplied by the hours that Contractor has worked on such service or deliverable.
If the SOW fails to identify the applicable hourly rates, payments shall be made in accordance with Contractor’s then-current
hourly rates for the services described in the applicable SOW. Contractor shall provide ABGIL with at least ninety (90) days advance
written notice of any revisions to Contractor’s hourly rates. No increase in hourly rates shall be effective in the absence
of such notice.

 

3.1.3           Not-to-Exceed
Fee. If the SOW lists a price for a particular service or deliverable on a not-to-exceed basis, the service or deliverable
shall be provided on a time-and-material basis (including reimbursable expenses) for not more than the specified maximum aggregate
amount. ABGIL shall not be liable for any additional charges if Contractor’s actual costs and reimbursable expenses for such
service or deliverable exceed the not-to-exceed fee.

 

3.2           Reimbursable
Expenses. Unless otherwise provided in the SOW and subject to Sections 3.1.1 and 3.1.3 and Section 3.3, ABGIL shall reimburse
Contractor for reasonable out-of-pocket expenses approved by ABGIL and incurred by Contractor in connection with the performance
of services hereunder, including the expenses of travel (i.e., hotel accommodations, meals, ground transportation, telephone charges,
internet research, faxing services, tips, and incidentals) and reasonable third party costs, subject to any limitations or exceptions
specified in the SOW. Contractor shall not bill ABGIL for any travel time. Reimbursable expenses shall be invoiced on a monthly
basis in accordance with Section 3.3. In addition to the foregoing and notwithstanding any provision to the contrary contained
herein, reimbursable expenses shall include any and all expenses specifically set forth in the applicable SOW.

 

3.3           Invoices.
Unless otherwise provided in the SOW, Contractor shall submit invoices for fees and expenses on a monthly basis to the address,
and in accordance with the procedures, set forth in the SOW. A separate invoice shall be issued for each SOW and shall specifically
refer to the SOW to which it relates. Each invoice shall (a) include the job function of each employee performing services, a description
of services performed by each employee, and the hours expended by each employee performing services; and (b) separately itemize
expenses for which reimbursement is sought by date, type of expense, and name of employee who incurred the expense. Each invoice
shall include such additional information as ABGIL may from time to time reasonably request. ABGIL shall not be responsible to
reimburse any of Contractor’s expenses unless and until Contractor has provided to ABGIL an invoice requesting reimbursement
for such expenses and sufficient documentation for ABGIL to confirm the timing, amount, and purpose of such expenses. ABGIL shall
pay Contractor for fees and reimburse Contractor for expenses within thirty (30) days of ABGIL’s receipt of Contractor’s
undisputed invoice. Contractor waives any right to payment of fees or reimbursement of expenses that are not set forth on a Contractor
invoice, supported by appropriate documentation, and received by ABGIL within thirty (30) days of being incurred by Contractor.
The terms of this Section 3.3 shall control all matters related to Contractor invoices and any
conflicting or additional terms in a Contractor invoice shall not be binding on ABGIL.

 

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3.4           Taxes.
ABGIL shall have no obligation to withhold or otherwise pay any taxes with regard to any amounts paid to Contractor, or in relation
to Contractor’s performance of this Agreement, except for any sales tax or value-added tax that ABGIL may be obligated to
withhold or otherwise pay pursuant to applicable law. Except for any sales tax or value-added tax that ABGIL may be obligated to
withhold or otherwise pay pursuant to applicable law, all taxes on payments to Contractor and on Contractor’s operations
and income, as well as federal, state, and local taxes applicable to Contractor’s performance of this Agreement, shall be
Contractor’s sole responsibility and expense.

 

3.6           Payments
to Others. Unless an SOW expressly provides otherwise, ABGIL shall not be responsible for any payment to, or on behalf of Contractor
to, any other person with regard to services furnished pursuant to any SOW.

 

4.           INTELLECTUAL
PROPERTY.

 

4.1           Noninfringement.
Contractor covenants, represents, and warrants that all ideas, concepts, designs, drawings, packages, line extensions, works of
authorship, derivative works, processes, methods, information, developments, materials, discoveries, inventions, improvements,
software, and all other intellectual property or rights, whether patentable or unpatentable, and whether subject to any other intellectual
property right protection or not, that are conceived, created, or developed by Contractor or Contractor’s employees, agents,
and subcontractors, whether solely or jointly with others (including ABGIL employees), as a result of, related to or arising out
of the performance by Contractor of Contractor’s duties pursuant to this Agreement or any SOW (collectively, “Work”)
are and shall be original and, to Contractor’s knowledge do not and shall not infringe any patent, copyright, or other proprietary
right of any third person. Contractor further covenants, represents, and warrants that (a) Contractor has no existing obligation
to assign or transfer to a third party any Work; and (b) each of Contractor’s employees, agents, or subcontractors who may
provide services pursuant to this Agreement are and shall be obligated to assign to ABGIL all the employee’s, agent’s,
or subcontractor’s ownership in any aspect of the Work.

 

4.2           Ownership.
Contractor agrees that the Work shall be the sole and exclusive property of ABGIL. Contractor assigns and agrees to assign to ABGIL
(and agrees to cause Contractor’s employees, agents, and subcontractors to assign) all right, title, and interest in and
to the Work, including all intellectual property rights in the Work throughout the world. Such intellectual property rights shall
include utility and design patents and patent applications and reissues thereof, copyrights (including derivative works either
existing or to be created by or for ABGIL or Contractor, including modifications of original designs and line extensions), trade
dress and trademarks, trade secrets, and confidential information. Contractor and Contractor’s employees, agents, and subcontractors
shall have no rights to retain or use any of the Work. Contractor shall promptly disclose to ABGIL all Work that relates to any
SOW or this Agreement. Contractor shall grant ABGIL continuous access to Contractor’s Work that is in progress and relates
to this Agreement, including the right to examine and evaluate such Work in progress at any reasonable place and time.

 

4.3           Assistance.
At the request and expense of ABGIL, Contractor, whether or not then acting in capacity of a consultant, shall assist ABGIL in
the establishment, preservation, and enforcement of all intellectual property rights in any Work, including making, executing,
and delivering all application papers, assignments, and instruments, and performing, or causing to be performed, such other lawful
acts as ABGIL may deem necessary or desirable in making or prosecuting applications for patents, trademarks, copyrights, and other
intellectual property rights, and any renewals, reissues, and extensions, related to such Work. Contractor shall assist and cooperate
with ABGIL and ABGIL’s attorneys in any controversy or legal proceedings relating to such Work or to the patents, trademarks,
copyrights, and other intellectual property rights that may be procured thereon. The decision on whether to file a patent, trademark,
copyright, or other intellectual property protection application with respect to any Work and the manner of preparation and prosecution
of any patent, trademark, copyright, or other intellectual property protection application shall be wholly within the discretion
of ABGIL.

 

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4.4           Works
Made for Hire. Contractor agrees that all Work that is eligible for copyright protection in the United States or elsewhere
shall be, to the full extent possible by law, “works made for hire” as defined in Section 101 of the United States
Copyright Act of 1976 (“Copyright Act”) and the similar law of any other country in which protection for the
Work is available.

 

4.5           Preexisting
Works. Contractor may include work or materials in a Work that were conceived, created, or developed prior to execution of
an SOW in Contractor’s services or deliverables (collectively, “Pre-existing Materials”) to ABGIL hereunder
only if the Pre-existing Materials are provided by ABGIL or if the Pre-existing Materials are owned or licensable without restriction
by Contractor. To the extent that Pre-existing Materials owned or licensed by Contractor are included in a Work, Contractor shall
identify and provide a description of the Pre-existing Materials prior to commencement of the services involving the Pre-existing
Materials and shall provide a separate and express warranty that Contractor has the right to include the Pre-existing Materials
in a Work hereunder. Contractor grants and agrees to grant to ABGIL an irrevocable, nonexclusive, worldwide, royalty-free right
and license to use, execute, reproduce, display, perform, sell, distribute (internally and externally) copies of, prepare derivative
works based upon, and otherwise exploit Pre-existing Materials as included in any Work, and the right to authorize others to do
any of the foregoing. Contractor shall, at Contractor’s expense, be responsible for obtaining any consent of third parties
necessary for ABGIL to fully exercise ABGIL’s rights hereunder, including all consents and releases
necessary for the use of any music, including synchronization rights, photo, graphic, and other copyrighted materials, and the
name, likeness, portrait, and picture of any person in any advertising, promotional, and other materials that Contractor prepares
for ABGIL, including consents from ABGIL’s employees who appear in such materials. Such consents and releases shall be sufficient
to allow Contractor to pass copyright ownership to ABGIL as required hereunder, unless otherwise agreed to in writing by the parties.

 

4.6           General
Skills. Notwithstanding anything to the contrary herein, each party and such party’s employees shall be free to use and
employ the party’s and the party’s employees’ general skills, know-how, and expertise, and to use, disclose,
and employ any generalized ideas, concepts, know-how, methods, techniques, and skills gained or learned during the course of any
SOW, so long as the party and the party’s employees acquire and apply such information without disclosure of any confidential
or proprietary information of the other party and without any unauthorized use or disclosure of Work owned by the other party.

 

4.7           Waiver
of Moral Rights. Contractor hereby expressly and forever waives Contractor’s moral rights arising under United States
federal law (such as the rights described in 17 U.S.C. § 106A(a)),
under any state law, and under the laws of any other country that conveys rights of the same nature or any other type of moral
right or droit moral. Contractor knowingly executes this waiver on the following terms: (a) this waiver applies to all Work,
including packaging, graphics, and closures, as applicable; and (b) this waiver applies to all uses and applications in which either
the attribution right (and rights of a similar nature) or the integrity right (and rights of a similar nature) may be implicated.
Contractor shall promptly secure, on behalf of ABGIL, waivers of all such moral rights that may be held by Contractor’s employees,
agents, and subcontractors as a result of, related to, or arising out of Contractor’s performance of Contractor’s duties
pursuant to this Agreement.

 

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5.           CONFIDENTIALITY.
The parties acknowledge the existence of that Confidential Disclosure Agreement (the “CDA”) executed between the parties
dated April 25, 2012, a copy of which is attached hereto and incorporated herein as Exhibit B. The parties agree that the
CDA is hereby republished and shall remain in full force and effect according to its terms and shall govern all disclosures of
Confidential Information (as defined in the CDA) between the parties with respect to this Agreement and any SOWs hereunder; provided,
however, that the term of the CDA shall be amended to expire three (3) years following the date of expiration or termination of
this Agreement. The parties agree that the terms of this Agreement and each SOW shall be deemed “Confidential Information”
under the CDA and subject to the non-disclosure and non-use obligations of the CDA.

 

6.           ADDITIONAL
COVENANTS, REPRESENTATIONS, AND WARRANTIES. At the time of execution of this Agreement, at the time of execution of each SOW,
and during the providing of services, Contractor covenants, represents, and warrants to ABGIL as follows:

 

6.1           Authority
to Contract and Full Performance. Contractor represents and warrants that Contractor has the right and authority to enter into
this Agreement and to make all of the grants and assignments and to undertake the obligations required by this Agreement. In addition,
Contractor represents and warrants that it knows of no condition that would be likely to materially limit Contractor’s ability
to perform this Agreement or any SOW.

 

6.2           Workmanlike
Fashion; Adequate Training and Safety Contractor agrees that all services provided pursuant to this Agreement and any SOW shall
be performed by qualified and adequately trained Contractor personnel in a good and workmanlike manner. Contractor agrees that
all services pursuant to this Agreement or any SOW shall be performed safely and without injury to any person or damage to any
property. Contractor agrees that it shall not bring, or allow any of Contractor’s employees, agents, or subcontractors to
bring, any hazardous substance, as defined by applicable law, rule, or regulation, on ABGIL’s premises, except with ABGIL’s
specific written authorization.

 

6.3           Specifications.
Contractor agrees that all services and deliverables performed or delivered pursuant hereto shall meet all requirements and specifications
as set forth in the applicable SOW and as specified to Contractor by ABGIL.

 

6.4           Supplies
and Equipment. Contractor agrees to inspect all equipment and supplies used in performing services pursuant to this Agreement
to ascertain the equipment’s and supplies’ safety and fitness for such use and to render such equipment and supplies
safe for such use before using such equipment or supplies. Contractor agrees to supervise all persons who perform services pursuant
to this Agreement that use any equipment or supplies, including any ABGIL equipment or supplies.

 

6.5           Location
of Services. Unless agreed otherwise in writing by ABGIL (and then only to the extent specifically agreed) Contractor agrees
that all work relating to services performed pursuant to this Agreement shall be performed in the United States of America.

 

6.6           Software.
Contractor agrees that it shall not access, add to, modify or extract data from, install software on, or otherwise use any ABGIL
computer or other information storage or retrieval system, except with ABGIL’s specific written authorization.

 

6.7           Compliance
with Standards and Laws. Contractor agrees that Contractor and the services shall comply with (a) any applicable industry standards
and (b) all laws, ordinances, statutes, treaties, rules, judgments, regulations, and other determinations and findings of any governmental
authority applicable to or binding upon a party or to which that party is subject or to which the services must comply, whether
federal, state, county, local, or otherwise.

 

6.8           Privacy
Compliance. Without limiting the generality of anything foregoing, Contractor covenants, warrants, and represents as follows:

 

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(a)          that
the handling, including the transfer itself, of any personal data by it to ABGIL has been, and shall continue to be, carried out
in accordance with all applicable data protection and privacy laws;

 

(b)          that
it shall treat all personal data transferred to it by ABGIL confidentially and handle it in accordance with all applicable data
protection and privacy laws and applicable provisions of this Agreement;

 

(c)          to
deal promptly and properly with all reasonable inquiries from ABGIL, a data subject or a competent supervisory authority relating
to Contractor’s handling of personal data;

 

(d)          that
it shall notify ABGIL of any request for personal data from any governmental agency and shall obtain ABGIL’s consent prior
to the release of personal data to any governmental agency; and

 

(e)          that
it shall indemnify, defend, and hold harmless ABGIL from and against any costs, expenses, claims, causes of action, liabilities,
demands, damages, and losses incurred by ABGIL as a result of Contractor’s failure to fulfill any of Contractor’s warranties
or undertakings in this Section.

 

7.           INDEMNIFICATION
AND INSURANCE.

 

7.1           Indemnification.
Contractor shall indemnify, defend, and hold harmless ABGIL and ABGIL’s Affiliates, and their officers, directors, employees,
and agents from and against all demands, proceedings, claims, expenses, damages, costs (including attorneys’ fees), actions,
liabilities, and losses resulting from, relating to or arising out of or in connection with (a) Contractor’s performance
of, or failure to perform, Contractor’s obligations pursuant to this Agreement or any SOW or Contractor’s performance
of any activities in connection therewith; (b) any breach of any warranty, representation, covenant, or agreement made by Contractor
to ABGIL in this Agreement or any SOW; and (c) any negligence or willful misconduct by Contractor or Contractor’s employees,
agents, or subcontractors.

 

7.2           Insurance.

 

7.2.1           General.
During the term of this Agreement and for a period of three (3) years thereafter, Contractor shall, at Contractor’s cost,
maintain in effect standard insurance of the following types and in the following amounts: (a) Workers’ Compensation at statutory
limits; (b) Comprehensive General Liability (including umbrella coverage at Two Million Dollars ($2,000,000.00) per occurrence;
(c) Professional Liability Errors and Omissions at One Million Dollars ($1,000,000.00) per claim; and (d) Comprehensive Automobile
Liability (including umbrella coverage) at One Million Dollars ($1,000,000.00) per occurrence. Contractor shall cause each of Contractor’s
subcontractors that provide services or deliverables pursuant to a SOW to maintain in force and effect insurance required under
this subsection for the period required herein.

 

7.2.2           Certificates.
Contractor shall (a) within three (3) days following the execution date of this Agreement, furnish to ABGIL insurance certificates
confirming Contractor’s and Contractor’s subcontractors’ insurance coverage as set forth above; (b) prior to
performing any services or deliverables to ABGIL, cause Contractor’s liability carrier(s) to include ABGIL and ABGIL’s
Affiliates, and their respective officers, directors, employees, and agents as Additional Insureds under Contractor’s general
liability insurance policy; (c) prior to performing any services or deliverables to ABGIL, require Contractor’s insurance
carrier(s) to furnish thirty (30) days advance written notice to ABGIL of material change to or cancellation or termination of
Contractor’s general liability insurance policy; and (d) prior to performing any services or deliverables to ABGIL, cause
Contractor’s liability carrier to include a complete waiver by the insurer of subrogation against ABGIL in Contractor’s
general liability insurance policy. No notice to ABGIL of cancellation or material change in the insurance coverage of Contractor
shall act as a waiver of Contractor’s continuing obligation to maintain insurance coverage in the types and amounts specified
herein. Contractor acknowledges and agrees that Contractor’s acquisition of insurance coverage hereunder shall not satisfy
or limit Contractor’s indemnity obligations hereunder. Contractor shall provide ABGIL with certificates of insurance for
the insurance required to be maintained pursuant to Section 7.2.1 on an annual basis, covering all periods through and until all
applicable statutes of limitations have expired.

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8.           TERMINATION.

 

8.1           By
Either Party. Either party shall have the right to terminate this Agreement or any SOW, without liability to the other party,
upon written notice upon the occurrence of either of the following events:

 

8.1.1           Default.
If the other party defaults in the performance of any of the party’s material obligations under this Agreement or any SOW
and such default continues for a period of five (5) business days after receipt of written notice specifying the nature of the
breach; provided, however, that if the default cannot reasonably be cured within such five (5) business day period, then the period
for curing the default may be extended by an additional period of not more than five (5) business days, so long as the defaulting
party is diligently pursuing cure of the default during such additional period.

 

8.1.2           Ceases
Doing Business, Etc. If the other party ceases conducting business in the normal course, fails to pay the party’s debts
as they become due, admits insolvency, makes an assignment for the benefit of creditors, or becomes the subject of any judicial
or administrative proceedings in bankruptcy, receivership, or reorganization.

 

8.2           By
ABGIL. Unless otherwise provided in the SOW, ABGIL shall have the right, without liability to Contractor, to terminate this
Agreement or, in whole or in part, any SOW, upon at least thirty (30) days’ prior written notice to Contractor. ABGIL shall
pay Contractor for all services performed through the date of termination in accordance with the payment terms outlined in the
applicable SOW. Upon receiving notice of termination under this Section, Contractor shall immediately adjust or cease services
as required by the notice of termination and Contractor shall mitigate its damages to the greatest extent possible prior to the
termination date.

 

8.3           Deliverables.
Upon termination of this Agreement or any SOW, Contractor shall advise ABGIL of the extent to which performance has been completed
through the termination notice date, and collect and deliver to ABGIL all deliverables, including all work-in-progress, through
any reasonable means specified by ABGIL. Contractor shall, to the extent not already transferred by virtue of this Agreement or
law, grant to ABGIL all intellectual property rights in Works in the form in which the rights exist on the date of termination,
which form shall not materially differ from the status described in the invoices and reports that Contractor has submitted to ABGIL.
All obligations in relation to Works and intellectual property rights and obligations as set forth in Section 4 shall apply to
the intellectual property transferred on such date of termination.

 

8.4           Effect
of Termination. Termination of this Agreement automatically terminates all SOWs entered pursuant to this Agreement.

 

9.           GENERAL
TERMS AND CONDITIONS.

 

9.1           Independent
Contractor. The parties acknowledge that each party is an independent contractor and not an agent or employee of the other
and nothing contained herein is intended to be, or is to be construed as, a joint venture or partnership relationship between the
parties. This Agreement shall not confer on Contractor or Contractor’s employees, agents, or subcontractors any right to
ABGIL service credit or benefits (monetary or otherwise) that are provided to ABGIL’s employees.

 

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9.2           Delays.
Neither party shall be liable to the other party for any delay or failure to perform the party’s obligations if such delay
or failure arises from any cause beyond the reasonable control of that party; provided, however, that under no circumstances shall
Contractor be excused of Contractor’s responsibilities under this Agreement or any SOW if Contractor’s delay or failure
to perform is a result of a labor dispute or strike. In no event shall Contractor’s delay or failure to perform be excused
under any SOW if (a) Contractor has not timely and reasonably notified ABGIL of specific cooperation from ABGIL that Contractor
deems reasonably necessary to enable Contractor’s timely completion of such services or deliverables; (b) ABGIL’s cooperation
was not reasonably necessary to enable Contractor to timely provide the services or deliverables; (c) Contractor had other reasonable
alternate means to acquire necessary information or documentation that was requested from ABGIL; or (d) Contractor’s failure
or delay would have occurred even in the absence of ABGIL’s failure to cooperate.

 

9.3           Return
of Materials. Upon termination of this Agreement, or upon request by ABGIL, Contractor shall deliver to ABGIL, or if unable
to deliver, destroy, all materials relating to ABGIL’s business, including all source codes, flow charts, diagrams, drawings,
blueprints, keys, identification badges, tools, business notes, Confidential Information, memoranda, specifications, devices, and
documents. Contractor shall not retain any photocopies, electronic copies, or other facsimiles of any of the materials except as
permitted by the CDA.

 

9.4           Notices.
All notices given pursuant to this Agreement or any SOW shall be in writing, addressed to the respective parties at the addresses
set forth in the opening paragraph of this Agreement and to the attention of the person listed below as the party’s signatory
of this Agreement (or to such other address or person as the parties may designate in writing in accordance with this Section),
and delivered by (a) first-class or priority United States Postal Service mail, postage prepaid, or (b) nationally recognized overnight
courier service, fees prepaid. Such notices shall be deemed delivered and effective two (2) days after being postmarked by the
United States Postal Service for first-class or priority mail delivery, postage prepaid, or one (1) day after submission to a nationally
recognized overnight courier service, fees prepaid. To be effective notice to ABGIL, Contractor must also deliver a copy of the
notice, in accordance with the provisions of this Section, to Access Business Group International LLC, Attn: Managing Counsel—Commercial
Transactions, Mail Code 78-2M, 7575 Fulton Street East, Ada, Michigan 49355.

 

9.5           Subcontractors.
Contractor shall not engage any subcontractor to perform any services under any SOW without the prior written consent of ABGIL,
and a condition of ABGIL’s consent shall be the existence of a written agreement between Contractor and the subcontractor
containing terms, reasonably acceptable to ABGIL, whereby the subcontractor agrees to fully comply with all provisions of this
Agreement; provided, however, that nothing contained in such agreement shall attempt or represent to create a contractual relationship
between ABGIL and the subcontractor. Contractor shall be fully responsible for the acts of all subcontractors to the same extent
it is responsible for the acts of Contractor’s employees.

 

9.6           Approval
of Personnel. All personnel assigned by Contractor to perform services pursuant to this Agreement or any SOW shall be reasonably
acceptable to ABGIL. Upon request by ABGIL, Contractor shall remove any employee, agent, or subcontractor reasonably determined
by ABGIL to be unacceptable.

 

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9.7           Conduct
of Contractor Personnel. Contractor shall ensure that Contractor personnel, while assigned to perform services pursuant to
any SOW or otherwise visiting or accessing ABGIL’s premises, shall comply with all of ABGIL’s then-current work and
safety rules and policies (including ABGIL’s technology access policies, visitor access policies, and supplier safety handbook).

 

9.8           Overdependency.
Contractor acknowledges and agrees that Contractor shall not assert any claim, and that it shall not have any cause of action,
against ABGIL relating to Contractor’s financial stability if ABGIL terminates this Agreement or any SOW for any reason whatsoever.

 

9.9           Amendment.
No provision of this Agreement may be modified or amended except by a written document signed by a duly authorized representative
of the parties.

 

9.10         Assignment.
Neither party may assign, delegate, or subcontract this Agreement or any of the party’s rights or obligations under this
Agreement or any SOW, directly or indirectly, without the prior written consent of the other party, which consent shall not be
unreasonably withheld; provided, however, ABGIL may freely assign this Agreement and any SOW to any Affiliate of ABGIL without
the prior written consent of Contractor and such assignment shall be effective immediately upon ABGIL delivering notice of the
assignment to Contractor.

 

9.11         No
Liens. Contractor shall not file, and Contractor shall ensure that no agent or subcontractor of Contractor files, any mechanics’
or other lien, notice creating such lien, or claim or action thereon for services pursuant to this Agreement. Where applicable,
Contractor shall upon request deliver to ABGIL contemporaneously with any payment, recordable partial waivers of lien for any partial
payments, and recordable final waiver of lien for the final payment. If any lien is filed, Contractor shall remove the lien, at
Contractor’s expense, within ten (10) business days.

 

9.12         Waiver.
No provision of this Agreement or any SOW shall be deemed waived, and no breach excused, unless such waiver or excuse is in writing
and signed by the party claimed to have waived or excused. The failure of any party at any time to require performance of any provision
in this Agreement shall not constitute a continuing waiver and shall not affect the right of the party to, at a later time, enforce
that or any other provision. No consent, waiver, or excuse by any party of any condition, or of any breach of any term contained
in this Agreement, in any one or more instances, whether express or implied, shall be deemed to be a further or continuing consent,
waiver, or excuse of that or any other condition or breach.

 

9.13         No
Exclusivity. ABGIL has no obligation to use or continue using Contractor’s services either generally or for any particular
project, and the assignment of a project to Contractor does not limit in any way ABGIL’s right to pursue the same or different
project(s) internally or through third parties.

 

9.14         Binding
Effect. This Agreement and all SOWs shall be binding upon and inure to the benefit of Contractor and ABGIL and their respective
legal representatives, successors, and authorized assigns. The Affiliates of ABGIL shall have the right to specifically enforce
this Agreement to the extent such Affiliates are party to a SOW or have been assigned the Agreement or an SOW and such Affiliates
are intended third-party beneficiaries of this Agreement.

 

9.15         Counterparts
and Signatures. This Agreement and any SOW may be executed simultaneously in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same agreement. The parties agree that a party’s
signature on this Agreement or any SOW that is exchanged by portable document format (PDF) or facsimile shall have the effect of
original signature of the party for all purposes.

 

    	9

    	 

    

 

9.16         Severability
and Interpretation. If any provision of this Agreement or any SOW shall be prohibited or unenforceable by any applicable law,
the parties intend that such provision shall be ineffective only to the limited extent and for the limited duration necessary to
avoid the prohibition of unenforceability, without invalidating any of the remaining provisions, and that all remaining provisions
of the Agreement or SOW shall remain in full force and effect to the greatest extent permissible by law, as amended to the limited
extent necessary to avoid the prohibited or unenforceable provision. This Agreement has been negotiated between the parties, and
the parties intend that any uncertainty or ambiguity in any provision of this Agreement shall not be interpreted in favor of or
against a party as a result of a party being a “drafting party,” but intend that such provision shall be interpreted
according to the application of rules of interpretation of contracts generally. As used in this Agreement, the terms “include(s)”
and “including” shall be read to mean “including without limitation.”

 

9.17         Remedies.
The rights and remedies provided herein shall be cumulative and in addition to any other remedies available at law and in equity.

 

9.18         Governing
Law and Language. This Agreement and every SOW shall be governed by and interpreted according to the laws of the State of Michigan.
The governing language of this Agreement is English and all communications between the parties related to this Agreement shall
be in English. Any dispute regarding this Agreement or any SOW shall be filed in the Circuit Court for Kent County, Michigan (or
its successor tribunal) or the United States District Court for the Western District of Michigan, Southern Division (or its successor
tribunal), and the parties hereby stipulate and agree to jurisdiction and venue in such courts.

 

9.19         Survival
of Certain Obligations. After expiration or termination of this Agreement, those provisions that specifically provide for survival
beyond expiration or termination, and all provisions that by their nature are intended to survive expiration or termination (including
without limitation those provisions regarding indemnification, warranty, limitations of liability, confidentiality, and protection
of proprietary rights and trade secrets), shall survive expiration or termination of this Agreement.

 

9.20         Entire
Agreement. This Agreement (including all exhibits, SOWs, and other documents expressly incorporated by reference) constitutes
the entire agreement between the Contractor and ABGIL with respect to the subject matter of this Agreement and supersedes all earlier
agreements and understandings, oral and written, between the parties; provided, however, that nothing in this Agreement or any
SOW shall terminate, amend, or modify any previously executed confidentiality agreement(s) between Contractor and ABGIL or any
of ABGIL’s Affiliates.

 

9.21         Publicity.
Except to the limited extent necessary to perform its obligations under this Agreement and any SOW, Contractor shall not, without
the prior written consent of ABGIL, discuss, publicize, or otherwise disclose the existence or terms of this Agreement or the details
of the services to be performed under any SOW, with anyone except authorized professional representatives (including without limitation
auditors and legal representatives) of Contractor. Contractor shall not use ABGIL’s name, trademarks, or logos in any written
materials, including without limitation press releases, or advertisements, without ABGIL’s prior written consent.

 

9.22         Counsel.
Each party acknowledges that (a) it has reviewed or had the opportunity to review with its legal counsel each provision of this
Agreement; (b) it has read this Agreement carefully, it understands the Agreement’s contents, and it freely and voluntarily
signs this Agreement; and (c) other than as expressly contained in this Agreement, the party has not relied on any representations,
warranties, or promises (whether written or oral, express or implied) of the other party to this Agreement (or the other party’s
agents or representatives) in determining whether to enter into this Agreement. Each party shall bear its own costs associated
with its review of this Agreement.

 

Signatures on next page

 

    	10

    	 

    

 

The parties have entered
into this Agreement effective as of the date first written above.

 

	ACCESS BUSINESS GROUP	 	 	 
	INTERNATIONAL LLC	INTERLEUKIN GENETICS, INC.
	 	 	 	 	 
	By:	/s/ Jay G. Ertl	 	By:	/s/ Kenneth S. Kornman
	Print Name:	Jay G. Ertl	 	Print Name:	Kenneth S. Kornman
	Its:	Vice President – Product Demand	 	Its:	CEO

 

    	11

    	 

    

 

EXHIBIT A

FORM OF STATEMENT OF WORK

 

STATEMENT OF WORK NO. _____

 

This Statement of Work No. _____ (“SOW”)
is made and entered into effective ________________, 20__ pursuant and subject to the terms and conditions of a certain Professional
Services Agreement dated August 30, 2012 (“Agreement”) between Access Business Group LLC (“ABGIL”)
and the undersigned Contractor. All capitalized terms in this SOW shall have the same meaning as defined in the Agreement, unless
otherwise specifically defined in this SOW.

 

	Description of Services	
         

         

	Deliverables/Specifications	
         

         

	
        Performance Schedules

         
	
         

         

	Progress Reports, Testing Criteria and Procedures	
         

         

	Pricing and Payment Schedule	
        Check one:

         

        o          Fixed
        Fee

        o          Time
        and Material [insert hourly rate]

        o          Not-to-Exceed
        [insert hourly rate]

         

	Invoicing Information	Contractor must submit Contractor’s
    invoices by electronic mail to Amway Accounts Payable at AP.Invoices@amway.com.  Upon the execution of this SOW,
    ABGIL shall create and e-fax a Purchase Order (PO) to Contractor. ABGIL shall establish the PO number with multiple lines,
    with differing account numbers, for the differing service requirements.  If Contractor fails to include the PO number
    and line number on each invoice, ABGIL shall not be deemed in default or breach of the Agreement or this SOW for failing to
    process such invoice.
	
        Term

         
	The term of this SOW shall commence on ___________ and terminate on ___________, unless earlier terminated in accordance with the Agreement.

 

The parties have executed this Statement of Work effective as
of the date first written above.

 

	ACCESS BUSINESS GROUP

 INTERNATIONAL LLC [or Affiliate]	 	INTERLEUKIN GENETICS, INC.
	 	 	 
	By:	SAMPLE – DO NOT SIGN	 	By:	SAMPLE – DO NOT SIGN
	Print Name:	 	 	Print Name:	 
	Its:	 	 	Its:	 

 

    	12

    	 

    

 

EXHIBIT B

CONFIDENTIAL DISCLOSURE AGREEMENT

 

 

    	13

    	 

    

 

    	14

    	 

    

 

    	15

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Confidential Disclosure Agreement as of the Effective Date.

 

	ACCESS BUSINESS GROUP

 INTERNATIONAL LLC	 	INTERLEUKIN GENETICS, INC.
	 	 	 
	By:	/s/ Kim S. Mitchell	 	By:	/s/ Lewis H. Bender
	Print Name:	Kim S. Mitchell	 	Print Name:	Lewis H. bender
	Its:	Assistant Secretary	 	Its:	CEO

 

    	16Exhibit
10.01

 

THIS SUBSCRIPTION AGREEMENT IS
EXECUTED IN RELIANCE UPON (1) THE EXEMPTION PROVIDED BY SECTION 4(2) AND REGULATION D, RULE 506 FOR TRANSACTIONS NOT INVOLVING
A PUBLIC OFFERING UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR (2) THE EXEMPTION TO AN
OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO RULE 903
OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT. THIS OFFERING IS BEING MADE ONLY TO ACCREDITED INVESTORS OR TO NON-U.S.
PERSONS PURSUANT TO RULE 903 OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT. NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION
RELATES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY
BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION D OR REGULATION S UNDER THE
SECURITIES ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS
IN ACCORDANCE WITH THE SECURITIES ACT.

 

 

 

SUBSCRIPTION AGREEMENT

 

 

 

THIS SUBSCRIPTION AGREEMENT (this
“Subscription”) has been executed by Tonix Pharmaceuticals Holding Corp., a corporation organized under the laws of
the State of Nevada (the “Company”) and the purchaser set forth in the Signature Page (the “Signature Page”)
attached hereto (the “Purchaser”).

 

WHEREAS, the purchasers (“Purchasers”)
will be purchasing from the Company (the “Offering”), severally and not jointly with the other Purchasers, debentures
(the “Debentures” or “Securities”), in the form attached hereto as Exhibit D, a minimum of $500,000
convertible Debentures (“Minimum Offering”) and up to a maximum of $3,000,000 Debentures (“Maximum Offering”),
to be issued by the Company, in one or more Closings, on each Closing Date as set forth herein;

 

WHEREAS, the offer of the Debentures
and, if this Subscription is accepted by the Company, the sale of Debentures, is being made in reliance upon Section 4(2) and/or
Rule 506 of Regulation D of the Securities Act or Rule 903 of Regulation S promulgated under the Securities Act; and

 

WHEREAS, the holders of the Old
Notes (as hereinafter defined) shall exchange their Old Notes for Debentures in this Offering (the “Exchanged Debentures”).
The Exchanged Debentures will count towards the Minimum and Maximum Offering. In October and November 2012, the Company issued
promissory notes (the “Old Notes”) in the face amount of $320,000.

 

    	 

    	 

    

 

NOW, THEREFORE,
for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as
follows:

 

ARTICLE 1

SUBSCRIPTION

 

Subscription

 

1.1         The
undersigned Purchaser, as principal, hereby subscribes to purchase the amount of Debentures set forth on the Signature Page
attached hereto, at an aggregate purchase price as set forth on the Signature Page (the “Subscription Funds”).

 

Minimum
Subscription

 

1.2         A
minimum of $25,000 of Debentures must be purchased by the Purchaser, unless a lower amount is agreed to by the Company, in its
sole discretion.

 

Method of
Payment

 

1.3         The
Purchaser shall pay the Subscription Funds by delivering good funds in United States Dollars by way of wire transfer of funds to
the escrow account, established pursuant to the escrow agreement in the form attached hereto as Exhibit E (the “Escrow
Agreement”) (or for holders of the Old Notes, by delivering the original Old Note to counsel to the Company). The wire transfer
and overnight delivery instructions for the Old Notes are as set forth in Exhibits B and C, respectively, attached hereto
and made a part hereof.

 

Upon receipt of the
Subscription Funds and acceptance of this Subscription by the Company, the Company shall take up the Subscription Funds (the “Closing
Date”) and issue to the Purchaser a Debenture equal in principal amount to the amount of the accepted Subscription Funds.
The Purchaser and the Company acknowledge and agree that the initial closing of the Offering shall be
subject to the Minimum Offering having been subscribed for.

 

The Purchaser acknowledges
that the subscription for Debentures hereunder may be rejected in whole or in part by the Company in its sole discretion and for
any reason, notwithstanding prior receipt by the Purchaser of notice of acceptance of such subscription. The Company shall have
no obligation hereunder until the Company shall execute and deliver to the Purchaser an executed copy of this Subscription. If
this Subscription is rejected in whole, or the offering of Debentures is terminated, all funds (or Old Notes) received from the
Purchaser will be returned without interest or offset, and this Subscription shall thereafter be of no further force or effect.
If this Subscription is rejected in part, the funds (or Old Notes) for the rejected portion of this subscription will be returned
without interest or offset, and this Subscription will continue in full force and effect to the extent this Subscription was accepted.

 

    	 

    	 

    

 

Term; Termination

 

1.4         If
the Minimum Offering is not subscribed for on or prior to November 30, 2012, all funds (and Old Notes) received from the Purchaser
will be returned without interest or offset, and this Subscription shall thereafter be of no further force or effect, which may
be extended to December 31, 2012 at the discretion of the Company (the “Offering Period”).

 

1.5         All
funds received from the Purchaser will held in a non-interest-bearing escrow account, pending the earlier of (a) one or more closings
after reaching the Minimum Offering, (b) completion of the Maximum Offering or (c) the end of the Offering Period.

 

ARTICLE
2

REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

 

Representations
and Warranties

 

2.1         The
Purchaser represents and warrants to the Company, with the intent that the Company will rely thereon in accepting this Subscription,
that:

 

(a)   Accredited
or Non-U.S. Purchaser. The Purchaser is either (i) an “accredited investor” as that term is defined in Regulation
D promulgated under the Securities Act and as set forth in Exhibit A attached hereto and made a part hereof, or (ii) not
a U.S. Person as defined in Rule 902 of Regulation S promulgated under the Securities Act and as set forth in Exhibit A
attached hereto and made a part hereof;

 

(b)   Experience.
The Purchaser is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of
its investments, and to make an informed decision relating thereto, and to protect its own interests in connection with the purchase
of the Securities;

 

(c)   Own
Account. The Purchaser is purchasing the Securities as principal for its own account. The Purchaser is purchasing the Securities
for investment purposes only and not with an intent or view towards further sale or distribution (as such term is used in Section
2(11) of the Securities Act) thereof, and has not pre-arranged any sale with any other purchaser and has no plans to enter into
any such agreement or arrangement;

 

(d)    Exemption.
The Purchaser understands that the offer and sale of the Securities is not being registered under the Securities Act or any state
securities laws and is intended to be exempt from registration provided by either (i) in the case of U.S. person, Rule 506 promulgated
under Regulation D and/or Section 4(2) of the Securities Act or (ii) in the case of a Non-U.S. Person, Rule 903 of Regulation S
promulgated under Regulation S of the Securities Act;

 

    	 

    	 

    

 

(e)   Importance
of Representations. The Purchaser understands that the Debentures are being offered and sold to it in reliance on an exemption
from the registration requirements of the Securities Act, and that the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the applicability
of such safe harbor and the suitability of the Purchaser to acquire the Debentures;

 

(f)    No
Registration. The Debentures have not been registered under the Securities Act or any state securities laws and may not be
transferred, sold, assigned, hypothecated or otherwise disposed of unless registered under the Securities Act and applicable state
securities laws or unless an exemption from such registration is available (including, without limitation, under Rule 144 of the
Securities Act, as such rule may be amended, or any similar rule or regulation hereafter adopted by the Commission having substantially
the same effect (“Rule 144”)). The Purchaser represents and warrants and hereby agrees that all offers and sales of
the Debentures and the Securities shall be made only pursuant to such registration or to such exemption from registration;

 

(g)   Risk.
The Purchaser acknowledges that the purchase of the Debentures involves a high degree of risk, is aware of the risks and further
acknowledges that it can bear the economic risk of the Debentures, including the total loss of its investment. The Purchaser has
adequate means of providing for its financial needs and foreseeable contingencies and has no need for liquidity of its investment
in the Debentures for an indefinite period of time;

 

(h)   Information.
The Purchaser and its purchaser representatives, if any, have received documents requested by the Purchaser, have carefully reviewed
them and understand the information contained therein;

 

(i)    Independent
Investigation. The Purchaser, in making the decision to purchase the Debentures subscribed for, has relied upon independent
investigations made by it and its purchaser representatives, if any, and the Purchaser and such representatives, if any, have prior
to any sale to it been given access and the opportunity to examine all material contracts and documents relating to this Offering
and an opportunity to ask questions of, and to receive answers from, the Company or any person acting on its behalf concerning
the terms and conditions of this Offering. The Purchaser and its advisors, if any, have been furnished with access to all materials
relating to the business, finances and operation of the Company and materials relating to the offer and sale of the Debentures
that have been requested. The Purchaser and its advisors, if any, have received complete and satisfactory answers to any such inquiries;

 

(j)    No
Recommendation or Endorsement. The Purchaser understands that no federal, state or other regulatory authority has passed on
or made any recommendation or endorsement of the Debentures. Furthermore, the foregoing authorities have not confirmed the accuracy
or determined the adequacy of this Subscription. Any representation to the contrary is a criminal offense;

 

    	 

    	 

    

 

 

(k)   No
Representation. In evaluating the suitability of an investment in the Company, the Purchaser has not relied upon any representation
or information (oral or written) other than as stated in this Subscription;

 

(l)    No
Tax, Legal, Etc. Advice. The Purchaser is not relying on the Company or any of its respective employees or agents with respect
to the legal, tax, economic and related considerations of an investment in the Debentures, and the Purchaser has relied on the
advice of, or has consulted with, only its own advisers;

 

(m)  The
Purchaser. The Purchaser (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power
and authority to execute and deliver this Subscription and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Debentures, such entity is duly organized, validly existing and in good standing under the laws of the state of
its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation
of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver
this Subscription and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase
and hold the Debentures, the execution and delivery of this Subscription has been duly authorized by all necessary action, this
Subscription has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such
entity; or (iii) if executing this Subscription in a representative or fiduciary capacity, represents that it has full power and
authority to execute and deliver this Subscription in such capacity and on behalf of the subscribing individual, ward, partnership,
trust, estate, corporation, or limited liability company or partnership, or other entity for whom the Purchaser is executing this
Subscription, and such individual, partnership, ward, trust, estate, corporation, or limited liability company or partnership,
or other entity has full right and power to perform pursuant to this Subscription and make an investment in the Company, and represents
that this Subscription constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Subscription
will not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Purchaser
is a party or by which it is bound;

 

(n)   No
Advertisement or General Solicitation. If the Purchaser is a U.S. Person, such Purchaser acknowledges that it is not aware
of, is in no way relying on, and did not become aware of the offering of the Debentures through or as a result of any form of general
solicitation or general advertising, including, without limitation, any article, notice, advertisement or other communication published
in any newspaper, magazine, or similar media or broadcast over television or radio, or through any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising; and

 

    	 

    	 

    

 

(o)   Foreign
Purchaser. If the Purchaser is not a United States person, such Purchaser hereby represents that it has satisfied itself as
to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Debentures or any
use of this Subscription, including: (a) the legal requirements within its jurisdiction for the purchase of the Debentures; (b)
any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be obtained;
and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer
of the Debentures. Such Purchaser’s subscription and payment for, and its continued beneficial ownership of the Debentures,
will not violate any applicable securities or other laws of the Purchaser’s jurisdiction.

 

(p)   Short
Sales and Confidentiality after the Date Hereof. The Purchaser covenants that neither it, nor any Affiliate acting on its behalf
or pursuant to any understanding with it, will execute any “short sales” as defined in Rule 200 of Regulation SHO under
the Securities Exchange Act of 1934, as amended (“Short Sales”, which shall not be deemed
to include the location and/or reservation of borrowable shares of Common Stock) during the period commencing at the time
it first became aware of this Offering and ending at the time that the transactions contemplated by this Subscription are first
publicly announced.  The Purchaser covenants that until such time as the transactions contemplated by this Subscription are
publicly disclosed by the Company such Purchaser will maintain the confidentiality of the existence and terms of this Offering
and the information included in this Subscription.  The Purchaser acknowledges the positions of the Securities and Exchange
Commission (“Commission”) set forth in Item 65, Section A, of the Manual of Publicly Available Telephone Interpretations,
dated July 1997, compiled by the Office of Chief Counsel, Division of Corporation Finance. Notwithstanding the foregoing, Purchaser
makes no representation, warranty or covenant hereby that it will not engage in Short Sales in the securities of the Company after
the time that the Offering is publicly announced.  Notwithstanding the foregoing, if Purchaser is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of Purchaser’s assets and the portfolio managers have
no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that
made the investment decision to purchase the Securities covered by this Subscription.

 

2.2         Each
Purchaser who is exchanging Old Notes in this Offering represents and warrants to the Company, with the intent that the Company
will rely thereon in accepting this Subscription, that Purchaser owns and holds, beneficially and of record, the entire right,
title, and interest in and to the Old Note (including, without limitation, accrued and unpaid interest thereon) set forth on the
Signature Page attached hereto, free and clear of all rights and Encumbrances (as defined below).  Holder has full power and
authority to transfer and dispose of the Old Note (including, without limitation, accrued and unpaid interest thereon) set forth
on the Signature Page attached hereto, free and clear of any right or Encumbrance other than restrictions under the Securities
Act and applicable state securities laws.  Other than the transactions contemplated by this Subscription, there is no outstanding
vote, plan, pending proposal, or other right of any person to acquire all or any of the Old Note set forth on the Signature Page
attached hereto. “Encumbrances” shall mean any security or other property interest or right, claim, lien, pledge, option,
charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right
or claim of third parties, whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including
any agreement (other than this Subscription) to grant or submit to any of the foregoing in the future.

 

    	 

    	 

    

 

Survival

 

2.3         The
representations and warranties of the Purchaser contained herein will be true at the date of execution of this Subscription by
the Purchaser and as of the Closing Date in all material respects as though such representations and warranties were made as of
such times and shall survive the Closing Date and the delivery of the Debentures. The Purchaser agrees that it will notify and
supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior to the Company’s
issuance of the Debentures.

  

ARTICLE 3

REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

 

3.1         The
Company, upon taking up and accepting this Subscription, represents and warrants in all material respects to the Purchaser, with
the intent that the Purchaser will rely thereon in making this Subscription, that:

 

		(a)	Legality. The Company has the requisite corporate power and authority to take up and accept
this Subscription and to issue, sell and deliver the Debentures; this Subscription and the issuance, sale and delivery of the Debentures
hereunder and the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action by the
Company; this Subscription and the Debentures have been duly and validly executed and delivered by and on behalf of the Company,
and are valid and binding agreements of the Company, enforceable in accordance with their respective terms, except as enforceability
may be limited by general equitable principles, bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, or other
laws affecting creditors’ rights generally;

 

		(b)	Proper Organization. The Company and its subsidiaries (“Subsidiaries”) are corporations
duly organized, validly existing and in good standing under the laws of their respective jurisdiction of incorporation and are
duly qualified as a foreign corporation in all jurisdictions where the failure to be so qualified would have a materially adverse
effect on their business, taken as whole;

 

    	 

    	 

    

 

		(c)	No Legal Proceedings. There is no action, suit or proceeding before or by any court or any
governmental agency or body, domestic or foreign, now pending or to the knowledge of the Company, threatened, against or affecting
the Company or its Subsidiaries, or any of their properties or assets, which might result in (i) a material adverse effect on the
legality, validity or enforceability of this Subscription, the Debentures and the Escrow Agreement (collectively, the “Transaction
Documents”), (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial
or otherwise) of the Company and its Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or
(iii), a “Material Adverse Effect”);

 

		(d)	Non-Default. Neither the Company nor any of its Subsidiaries is in default in the performance
or observance of any material obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust
or other material instrument or agreement to which it is a party or by which it or its property may be bound;

 

		(e)	Non-Contravention. The acceptance of this Subscription and the consummation of the issuance
of the Debentures and the transactions contemplated by this Subscription do not and will not conflict with or result in a breach
by the Company of any of the terms or provisions of, or constitute a default under the Articles of Incorporation or By-laws of
the Company, or any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company or any of
its Subsidiaries is a party or by which it or any of its properties or assets are bound, or any existing applicable decrees, judgment
or order of any court, federal, state or provincial regulatory body, administrative agency or other domestic governmental body
having jurisdiction over the Company or any of its properties or assets;

 

		(f)	Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local
or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than the filing of Form D with the Commission and such filings as are required to be made under applicable
state securities laws;

 

		(g)	Issuance of the Debentures. The Debentures are duly authorized and, when issued and paid
for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free
and clear of all liens, charges, security interests, encumbrances, preemptive rights or other restrictions (collectively, “Liens”)
imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Securities, when issued
in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company
has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable upon conversion of the
Debentures;

 

    	 

    	 

    

 

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

 

		(i)	No General Solicitation. Neither the Company nor any person acting on behalf of the Company
has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the
Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule 501
under the Securities Act and non- “U.S. person” within the meaning of Rule 902 of Regulation S promulgated under the
Securities Act;

 

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

 

		(k)	Capitalization.  The capitalization of the Company is as set forth on Schedule
3.1(k), which includes the number of shares of common stock owned beneficially, and of record, by Affiliates of the Company
as of the date hereof.  Except as contemplated by the Transaction Documents, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of
common stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of common stock.  No further approval or authorization of any stockholder, the Board
of Directors or others is required for the issuance and sale of the Debentures.  There are no stockholders agreements,
voting agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the
Company, between or among any of the Company’s stockholders;

 

    	 

    	 

    

 

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

 

		(m)	Bankruptcy. The Company has no knowledge of any facts or circumstances which lead it to
believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within
one year from the date hereof. Schedule 3.1(m) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Subscription,
“Indebtedness” means (a) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than
trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations
in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or
the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business; and (c) the present value of any lease payments in excess of $100,000 due under leases required
to be capitalized in accordance with generally accepted accounting principles. Neither the Company nor any Subsidiary is in default
with respect to any Indebtedness.

 

Survival

 

3.2         The
representations and warranties of the Company will be true and correct as of the Closing Date in all material respects and shall
survive the Closing Date and the delivery of the Securities.

  

ARTICLE 4

COVENANTS OF THE COMPANY

 

Covenants of the Company

 

4.1         The
Company covenants and agrees with the Purchaser that:

 

		(a)	Filings. The Company shall make all necessary filings in connection with the sale of the
Securities as required by the laws and regulations of all appropriate jurisdictions and securities exchanges, including but not
limited to “Form D”;

 

    	 

    	 

    

 

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

 

		(c)	Non-Public Information. Except with respect to the material terms and conditions of the
transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting
on its behalf, will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material
non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality
and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.

 

Survival

 

4.2         The
covenants set forth in this Article shall survive the Closing Date for the benefit of the Purchaser.

 

ARTICLE 5

ISSUANCE OF SECURITIES

 

5.1         As
soon as practicable after the Closing Date, the Company shall issue and deliver, or shall cause the issuance and delivery of, the
Debentures in the name or names specified by the Purchaser purchased in the Offering. Such Debentures shall bear a legend in substantially
one of the following forms:

 

For U.S. Persons:

 

THESE SECURITIES
HAVE BEEN ISSUED PURSUANT TO THE EXEMPTION FROM THE REGISTRATION PROVISIONS UNDER THE SECURITIES ACT OF 1933, AS AMENDED PROVIDED
BY RULE 506 OF REGULATION D UNDER SUCH ACT AND/OR SECTION 4(2) OF SUCH ACT. THESE SECURITIES CANNOT BE TRANSFERRED, OFFERED, OR
SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT IS AVAILABLE.

 

    	 

    	 

    

 

For Non-U.S.
Persons:

 

THESE SECURITIES WERE ISSUED IN
AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF THE SECURITIES TO WHICH THIS CERTIFICATE
RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED
OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND
IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES
MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.

 

5.2         The
Purchaser agrees that such Purchaser will sell any Securities pursuant to either the registration requirements of the Securities
Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant
to a registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing Securities as set forth in this Article 5 is predicated
upon the Company’s reliance upon this understanding.

 

ARTICLE 6

CLOSING

 

Closing Deliverables

 

6.1         On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to Purchaser the following:

 

(a)          this
Subscription, duly executed by the Company;

 

(b)          the
Debenture, duly executed by the Company, in the Principal Amount; and

 

(c)          the
Escrow Agreement, duly executed by the Company and the Escrow Agent

(d)          .

 

6.2         On
or prior to the Closing Date, Purchaser shall deliver or cause to be delivered to the Company the following:

 

(a)          this
Subscription, duly executed by Purchaser;

 

(b)          the
purchase price by wire transfer to the Escrow Account (or delivery of the Old Note to counsel to the Company);

 

(c)          the
Escrow Agreement, duly executed by the Purchaser; and

 

    	 

    	 

    

 

(d)          the
Confidential Investor Questionnaire, in the form attached hereto as Exhibit A, duly executed by the Purchaser.

 

6.3         The
obligations of the Company and Purchaser hereunder in connection with the Closing are subject to the waiver or satisfaction of
the deliverables to each party by the other of the items specified in Sections 7.1 and 7.2.

 

ARTICLE 7

INDEMNIFICATION

 

Indemnification of the Company

 

7.1         The
Purchaser agrees to indemnify and hold harmless the Company against and in respect of any and all loss, liability, claim, damage,
deficiency, and all actions, suits, proceedings, demands, assessments, judgments, costs and expenses whatsoever (including, but
not limited to, attorneys' fees reasonably incurred in investigating, preparing, or defending against any litigation commenced
or threatened or any claim whatsoever through all appeals) arising out of or based upon any false representation or warranty or
breach or failure by the Purchaser to comply with any covenant, representation or other provision made by it herein or in any other
document furnished by it in connection with this Subscription, provided, however, that such indemnity, shall in no event exceed
the net proceeds received by the Company from the Purchaser as a result of the sale of Securities to the Purchaser.

 

Indemnification of the Purchaser

 

7.2         The
Company agrees to indemnify and hold harmless the Purchaser against and in respect of any and all loss, liability, claim, damage,
deficiency, and all actions, suits, proceedings, demands, assessments, judgments, costs and expenses whatsoever (including, but
not limited to, attorneys' fees reasonably incurred in investigating, preparing, or defending against any litigation commenced
or threatened or any claim whatsoever through all appeals) arising out of or based upon any false representation or warranty or
breach or failure by the Company to comply with any covenant, representation or other provision made by it herein or in any other
document furnished by it in connection with this Subscription, , provided, however, that such indemnity, shall in no event exceed
the net proceeds received by the Company from the Purchaser as a result of the sale of Securities to the Purchaser.

 

    	 

    	 

    

 

ARTICLE 8

GENERAL PROVISIONS

 

Governing Law

 

8.1         This
Subscription shall be governed by and construed under the law of the State of New York without regard to its choice of law provision.
Any disputes arising out of, in connection with, or with respect to this Subscription, the subject matter hereof, the performance
or non-performance of any obligation hereunder, or any of the transactions contemplated hereby shall be adjudicated in a court
of competent civil jurisdiction sitting in New York, New York and nowhere else. The parties hereby consent to the service of process
in any such action or legal proceeding by means of registered or certified mail, return receipt requested. The address for service
of process shall be (a) to the Company, at 509 Madison Avenue, Suite 306, Attn: Seth Lederman, and (b) to the Purchaser, at the
address set forth on the Signature Page hereto, or, in each case, to such other address as each party shall subsequently furnish
in writing to the other. In any action, suit or proceeding 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
waive forever trial by jury.

 

Successors and Assigns

 

8.2         This
Subscription shall inure to the benefit of and be binding on the respective successors and assigns of the parties hereto.

 

Execution by Counterparts and Facsimile

 

8.3         This
Subscription may be executed in counterparts and by facsimile, each of which when executed by any party will be deemed to be an
original and all of which counterparts will together constitute one and the same Subscription.

 

Independent Legal Advice

 

8.4         The
parties hereto acknowledge that they have each received independent legal advice with respect to the terms of this Subscription
and the transactions contemplated herein or have knowingly and willingly elected not to do so.

 

Severability

 

8.5         If
any term, provision, covenant or restriction of this Subscription 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.

**********

  

    	 

    	 

    

 

TONIX PHARMACEUTICALS HOLDING CORP.

SIGNATURE PAGE TO

SUBSCRIPTION AGREEMENT

 

Purchaser hereby elects to subscribe
under the Subscription Agreement for a total amount of $_____________ in Subscription Funds, which amount shall be the principal
amount of the Debenture issued to Purchaser hereunder. 

 

AND/OR

 

Purchaser hereby elects to subscribe
under the Subscription Agreement by the exchange of Old Notes on a dollar-for-dollar basis of, in the principal face amount of
Old Notes of $_____________, evidenced by Note Number ______, which amount shall be the principal amount of the Debenture issued
to Purchaser hereunder. 

 

Date:  _______________, 2012.

  

If the purchaser is an INDIVIDUAL, and
if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	 	 	 	 
	Print Purchaser Name	 	Print Co-Purchaser Name (if applicable)	 
	 	 	 	 
	 	 	 	 
	Signature of Purchaser	 	Signature of Co-Purchaser (if applicable)	 
	 	 	 	 
	 	 	 	 
	Address	 	 	 
	 	 	 	 
	 	 	 	 
	If the purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:	 
	 	 	 	 
	 	 	 	 
	Name of Partnership,	 	Country of Organization	 
	Corporation, Limited	 	 	 
	Liability Company or Trust	 	 	 

 

	By:	 	 	By:	 	 
	 	Name:	 	 	Name:	 
	 	Title:	 	 	Title:	 

 

	 	 	 	 
	 	 	 	 
	Address	 	 	 

 

    	 

    	 

    

 

TONIX PHARMACEUTICALS HOLDING CORP.

SIGNATURE PAGE TO

SUBSCRIPTION AGREEMENT

 

 

ACCEPTED AND AGREED TO

this ___ day of ___________, 2012.

 

TONIX PHARMACEUTICALS HOLDING CORP.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

    	 

    	 

    

 

EXHIBIT A - CONFIDENTIAL
INVESTOR QUESTIONNAIRE

 

To be completed by:_________________________________

                                   (hereinafter referred to as the “Investor”)

 

This Questionnaire
is being distributed to the Investor by Tonix Pharmaceuticals, Holding Corp., a Nevada corporation (the “Company”),
to enable the Company to determine whether the Investor is qualified to invest in securities (the “Securities”) of
the Company, on such terms and under such conditions as are described in the subscription agreement, as supplemented or amended,
by and between the Investor and the Company (the “Subscription Agreement”).

 

Each investor
wishing to invest in the offering described in the Subscription Agreement will be required to represent that such investor is an
“accredited investor” as such term is defined in Rule 501 of Regulation D. In addition to such representation, the
Company will rely upon the accuracy and completeness of the information provided in this Questionnaire in establishing that the
issuance of securities in the offering described in the Subscription Agreement is exempt from the registration requirements of
the Securities Act of 1933, as amended (the “Act”).

 

THE INVESTOR
IS OBLIGATED TO READ THIS QUESTIONNAIRE CAREFULLY AND TO ANSWER THE ITEMS CONTAINED HEREIN COMPLETELY AND ACCURATELY.

 

ALL INFORMATION
CONTAINED IN THIS QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY. However, the Investor understands and agrees that the Company may
present, upon giving prior notice to the Investor, this Questionnaire to such parties as the Company deems appropriate if called
upon to establish that the issuance of securities in the offering described in the Subscription Agreement (i) is exempt from the
registration requirements of the Act, or (ii) meets the requirements of applicable state securities laws; provided, however, that
the Company need not give prior notice to the Investor of its presentation of this Questionnaire to the Company’s legal,
accounting and financial advisors.

 

The Investor
understands that this Questionnaire is merely a request for information and is not an offer to sell, a solicitation of an offer
to buy, or a sale of any securities. The Investor also understands that he or she may be required to furnish additional information
and/or to re-confirm the information set forth herein.

 

Unless instructed
otherwise, the Investor should answer each question on the Questionnaire. When the answer to a particular question is “None”
or “Not Applicable,” please so state. If the Questionnaire does not provide sufficient space to answer a question,
please attach a separate schedule to your executed Questionnaire that indicates which question is being answered thereon. Persons
having questions concerning any of the information requested in this Questionnaire should consult with their purchaser representative
or representatives, lawyer, accountant or broker.

 

One signed and
dated copy of the Questionnaire should be returned to:

 

James M. Turner, Esq.

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, New York 10006

jturner@srff.com

 

Another copy should
be retained for the Investor’s files.

  

    	 

    	 

    

 

 

PLEASE TYPE OR PRINT ALL INFORMATION

 

INVESTOR QUESTIONNAIRE

 

	Name(s) of Investor(s):	(1)	 
	 	 	 
	 	(2)	 

 

	1.	Background Information.

 

	 	a.	Home Address: 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	b.	i)	Home Telephone:	 
	 	 	 	 	 
	 	 	ii)	Home Fax:	 
	 	 	 	 	 
	 	c.	Mailing Address:	 
	 	 	(if different)	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	d.	Social Security #(s):	 
	 	e.	U.S. Citizen:	Yes _______   No  _______
	 	 	 	 	 
	 	f.	Business Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	g.	Business Telephone:	 
	 	 	 	 	 
	 	h.	Fax Number:	 
	 	i.	Send correspondence to:	Home _______  Office _______
	 	 	 	 	 
	 	j.	eMail address:	 

 

	2.	Type of Ownership.

 

	 	a.	If you are an individual or individuals, indicate type of ownership subscribed for:
	 	 	__	Individual
	 	 	__	Joint Tenants with Rights of Survivorship
	 	 	__	Tenants in Common
	 	 	__	Tenants by the Entirety

 

    	 

    	 

    

 

	 	b.	If you are an entity, indicate:
	 	 	(i) Type of entity:
	 	 	__	Corporation
	 	 	__	Limited Partnership Survivorship
	 	 	__	General Partnership
	 	 	__	Limited Liability Company
	 	 	__	Trust (revocable at sole option of grantor(s))
	 	 	__	IRA Trust
	 	 	__	Other Trust (specify) _______________
	 	 	__	Pension or Profit Sharing Plan or Trust
	 	 		(Indicate type of Plan or Trust) _______________
	 	 	__	Other (specify) ____________________

 

(ii) Federal Tax ID Number:

 

(iii) Individual(s) authorized to execute
documents on behalf of the entity in connection with this investment:

 

	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 

 

	 	(iv) Place of Organization:	 	 
	 	 	 	 
	 	(v)  Date of Organization:	 	 

 

		3A.	Accredited Investor – FOR U.S. PERSONS ONLY.

 

Please indicate with
your initials, an “X” or other clear indication if you qualify as an “accredited investor” pursuant to
Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”), as a result of your status as:

 

	__	(1)        a bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act, whether acting in its individual or fiduciary capacity;
	 	 	 
	__	(2)        a broker dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 
	__	(3)        an insurance company as defined in Section 2(13) of the Act;
	 	 	 
	__	(4)        an investment company registered under the Investment Company Act of 1940, as amended;
	 	 	 
	__	(5)        a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940, as amended;

 

    	 

    	 

    

 

	__	(6)        a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended;
	 	 	 
	__	(7)        a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
	 	 	 
	__	(8)        an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not subject to such Act, if:

 

(a)          the
investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan
association, insurance company or registered investment adviser, or

 

(b)          the
employee benefit plan has total assets in excess of $5,000,000, or

 

(c)          the
employee benefit plan is a self-directed plan with investment decisions made solely by persons that are “accredited investors”;

 

	__	(9)        a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
	 	 	 
	__	(10)      an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, a corporation, partnership or Massachusetts or similar business trust, not formed for the specific purpose of making an investment in the Pubco Securities, with total assets in excess of $5,000,000;
	 	 	 
	__	(11)      a director or executive officer, of the Company;
	 	 	 
	__	(12)      a natural person whose individual net worth†  (or joint net worth with his or her spouse) exceeds $1,000,000;
	 	 	 
	__	(13)      a natural person who had an individual income* in excess of $200,000 in each of the two most recent years and who reasonably expects to have an individual income in excess of $200,000 in the current year or who had joint income, together with his or her spouse, in excess of $300,000 in each of the two most recent years and who reasonably expects to have joint income in excess of $300,000 in the current year;

 

 

†                 For
purposes of this Investor Questionnaire, “net worth” means the excess of total assets at fair market value over total
liabilities. For purposes of calculating net worth under this section, (i) the primary residence shall not be included as an asset,
(ii) to the extent that the indebtedness that is secured by the primary residence is in excess of the fair market value of the
primary residence, the excess amount shall be included as a liability, and (iii) if the amount of outstanding indebtedness that
is secured by the primary residence exceeds the amount outstanding 60 days prior to the execution of this questionnaire, other
than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability..

 

*                For
purposes of this Investor Questionnaire, the term “income” means annual adjusted gross income, as reported for federal
income tax purposes, plus (i) the amount of any tax-exempt interest income received; (ii) the amount of losses claimed as a limited
partner in a limited partnership; (iii) any deduction claimed for depletion; (iv) amounts contributed to an IRA or Keogh retirement
plan; (v) alimony paid; and (vi) any amount by which income from long-term capital gains has been reduced in arriving at adjusted
gross income pursuant to the provisions of Section 1202 of the Internal Revenue Code of 1986, as amended.

 

    	 

    	 

    

 

	__	(14)      any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of making an investment in the Pubco Securities, whose purchase of the Pubco Securities offered is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; or
	 	 	 
	__	(15)      an entity in which all of the equity owners are “accredited investors.”

 

		3B.	Regulation S Confirmation – FOR NON U.S. PERSONS ONLY.

 

Please indicate with
your initials, an “X” or other clear indication if you are not a U.S. Person as defined in Section 902 of Regulation
S promulgated under the Securities Act (a “Reg S Person”).

 

_______ Not a U.S. Person

 

By executing this questionnaire,
such Reg S Person hereby represents that the representations in paragraphs (1) through (9) are true and correct with respect to
such Reg S Person.

 

		(1)	Such Reg S Person acknowledges and warrants that (i) the issuance and sale to such Reg S Person
of the Securities is intended to be exempt from the registration requirements of the Securities Act, pursuant to the provisions
of Regulation S; (ii) it is not a “U.S. Person,” as such term is defined in Regulation S and herein, and is not acquiring
the Securities for the account or benefit of any U.S. Person; and (iii) the offer and sale of the Securities has not taken place,
and is not taking place, within the United States of America or its territories or possessions. Such Reg S Person acknowledges
that the offer and sale of the Securities has taken place, and is taking place in an “offshore transaction,” as such
term is defined in Regulation S.

 

		(2)	Such Reg S Person acknowledges and agrees that, pursuant
to the provisions of Regulation S, the Securities cannot be sold, assigned, transferred, conveyed, pledged or otherwise disposed
of to any U.S. Person or within the United States of America or its territories or possessions for a period of six months from
and after the Closing Date, unless such Securities are registered for sale in the United States pursuant to an effective registration
statement under the Securities Act or another exemption from such registration is available. Such Reg S Person acknowledges that
it has not engaged in any hedging transactions with regard to the Securities.

 

		(3)	Such Reg S Person consents to the placement of a legend
on any certificate, note or other document evidencing the Securities and understands that the Company shall be required to refuse
to register any transfer of Securities not made in accordance with applicable U.S. securities laws.

 

		(4)	Such Reg S Person is not a
“distributor” of securities, as that term is defined in Regulation S, nor a dealer in securities. Such Reg S Person
is purchasing the Securities as principal for its own account, for investment purposes
only and not with an intent or view towards further sale or distribution (as such term is used in Section 2(11) of the Securities
Act) thereof, and has not pre-arranged any sale with any other purchaser and has no plans to enter into any such agreement or
arrangement.

 

		(5)	Such Reg S Person is not an Affiliate of the Company
nor is any Affiliate of such Reg S Person an Affiliate of the Company.With respect to a Reg S Person, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager as such Reg S Person will be deemed to be an Affiliate
of such Reg S Person.

 

		(6)	Such Reg S Person understands that the Securities have
not been registered under the Securities Act or the securities laws of any state and are subject to substantial restrictions on
resale or transfer. The Securities are “restricted securities” within the meaning of Regulation S and Rule 144, promulgated
under the Securities Act.

 

		(7)	Such Reg S Person acknowledges that the Securities may
only be sold offshore in compliance with Regulation S or pursuant to an effective registration statement under the Securities
Act or another exemption from such registration, if available. In connection with any resale of the Securities pursuant to Regulation
S, the Company will not register a transfer not made in accordance with Regulation S, pursuant to an effective registration statement
under the Securities Act or in accordance with another exemption from the Securities Act.

 

    	 

    	 

    

 

		(8)	Such Reg S Person represents that it has satisfied itself
as to the full observance of the laws of its jurisdiction in connection with the offering of the Securities,
including: (a) the legal requirements within its jurisdiction for the purchase of the Securities;
(b) any foreign exchange restrictions applicable to such purchase; (c) any governmental or other consents that may need to be
obtained; and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption,
sale or transfer of the Securities. Such Reg S person’s subscription and payment for,
and its continued beneficial ownership of the Securities, will not violate any applicable securities
or other laws of the jurisdiction of its residence.

 

		(9)	Such Reg S Person makes the representations, declarations
and warranties as contained in this Section 3B with the intent that the same shall be relied upon by the Company in determining
its suitability as a purchaser of such Securities.

 

		4.	FINRA Affiliation.

 

Are you affiliated
directly or indirectly with a member broker-dealer firm of the Financial Industry Regulatory Authority, Inc. as an employee, officer,
director, partner or shareholder or as a relative or member of the same household of an employee, director, partner or shareholder
of a FINRA member broker-dealer firm?

 

Yes____ No_____

 

If the answer is “yes,” then,
in order to purchase Pubco Securities in the offering, the Investor will need to provide the Company with a FINRA member affiliate
certification whereby the FINRA member firm acknowledges the affiliation and its receipt of the notice required by Article 3, Sections
28(a) and (b) of the Rules of Fair Practice with respect to an investment in Pubco Securities pursuant to the offering described
in the PPM.

 

		5.	In order for the Company to comply with applicable anti-money laundering/U.S. Treasury Department
Office of Foreign Assets Control (“OFAC”) rules and regulations, Subscriber is required to provide the following
information:

 

		(a)	Payment Information

 

(i)          Name
and address (including country) of the bank from which Subscriber’s payment to the Company is being wired (the “Wiring
Bank”):

 

________________________________________________

 

(ii)         Subscriber’s
wiring instructions at the Wiring Bank:

 

________

 

(iii)        Is
the Wiring Bank located in the U.S. or another “FATF Country”*?

 

_____ Yes______ No

 

 

* As
of the date hereof, countries that are members of the Financial Action Task Force on Money Laundering (“FATF Country”)
are: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland,
Italy, Japan, Luxembourg, Mexico, Kingdom of the Netherlands, New Zealand, Norway, Portugal, Russian Federation, Singapore, South
Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States of America.

 

    	 

    	 

    

 

(iv)        Is
Subscriber a customer of the Wiring Bank?

 

_____ Yes______ No

 

		(b)	Additional Information

 

Investors wishing to subscribe
must provide the following additional information or documents unless you have previously delivered such information to the Company.

 

For Individual Investors:

 

		___	A government issued form of picture identification (e.g., passport or drivers license).

		___	Proof of the individual’s current address (e.g., current utility bill), if not included
in the form of picture identification.

 

		___	One or more of the above documentations has previously been provided to the Company.

 

For Funds of Funds or Entities
that Invest on Behalf of Third Parties:

 

		___	A certificate of due formation and organization and continued authorization to conduct business
in the jurisdiction of its organization (e.g., certificate of good standing).

 

		___	An “incumbency certificate” attesting to the title of the individual executing these
subscription materials on behalf of the prospective investor.

 

		___	A completed copy of a certification that the entity has adequate anti-money laundering policies
and procedures (“AML Policies and Procedures”) in place that are consistent with the USA PATRIOT Act, OFAC and
other relevant federal, state or non-U.S. anti-money laundering laws and regulations (with a copy of the entity’s current
AML Policies and Procedures to which such certification relates).

 

		___	A letter of reference any entity not located in the U.S. or other FATF country, from the entity’s
local office of a reputable bank or brokerage firm that is incorporated, or has its principal place of business located, in the
U.S. or other FATF Country certifying that the prospective investor maintains an account at such bank/brokerage firm for a length
of time and containing a statement affirming the prospective investor’s integrity.

 

		___	One or more of the above documentations has previously provided to the Company.

 

    	 

    	 

    

 

For all other Entity Investors:

 

		___	A certificate of due formation and organization and continued authorization to conduct business
in the jurisdiction of its organization (e.g., certificate of good standing).

 

		___	An “incumbency certificate” attesting to the title of the individual executing these
subscription materials on behalf of the prospective investor.

 

		___	A letter of reference from the entity’s local office of a reputable bank or brokerage firm
that is incorporated, or has its principal place of business located, in the U.S. or other FATF Country certifying that the prospective
investor maintains an account at such bank/brokerage firm for a length of time and containing a statement affirming the prospective
investor’s integrity.

 

		___	If the prospective investor is a privately-held entity, a certified list of the names of every
person or entity who is directly or indirectly the beneficial owner of 25% or more of any voting or non-voting class of equity
interests of the Subscriber, including (i) country of citizenship (for individuals) or principal place of business (for entities)
and, (ii) for individuals, such individual’s principal employer and position.

 

		___	If the prospective investor is a trust, a certified list of (i) the names of the current beneficiaries
of the trust that have, directly or indirectly, 25% or more of any interest in the trust, (ii) the name of the settlor of the trust,
(iii) the name(s) of the trustee(s) of the trust, and (iv) the country of citizenship (for individuals) or principal place of business
(for entities).

 

		___	One or more of the above documentations has previously provided to the Company.

 

The undersigned
understands and acknowledges that the Company will be relying on the accuracy and completeness of the information provided by the
prospective investor in this Accredited Investor Questionnaire and the undersigned represents and warrants to the Company as follows:

 

		(a)	The information is complete and correct and may be relied upon by the Company in determining whether
the offer and sale of Notes in this Offering in which the undersigned proposes to participate is exempt from the registration requirements
of the Securities Act;

 

		(b)	The undersigned will notify the Company immediately of any material change in any information provided
by the prospective investor in this Accredited Investor Questionnaire occurring prior to the completion of the offering of the
Notes; and

 

		(c)	The undersigned has adequate means of providing for the undersigned's current needs and personal
contingencies, has no need for liquidity in its investment in the Notes, and is able to bear the economic risk of an investment
in the Notes of the size contemplated by the prospective investor. In making this statement, the undersigned represents that at
the present time the undersigned has sufficient means to provide for its needs in the event of a complete loss of such investment.

    	 

    	 

    

 

 

IN
WITNESS WHEREOF, the undersigned prospective investor has executed this Accredited Investor Questionnaire as of the dated indicated
below.

 

	INDIVIDUALS:	 	ENTITIES:
	 	 	 
	 	 	 
	Print Name	 	Print Name of Entity
	 	 	 
	 	 	 
	Signature	 	Print Name of Authorized Signatory
	 	 	 
	 	 	 
	Date of Execution	 	Signature of Authorized Signatory
	 	 	 
	 	 	 
	Print Name of joint investor or other	 	Date of Execution
	person whose signature is required	 	 
	 	 	 
	 	 	 
	Signature	 	 

 

    	 

    	 

    

 

EXHIBIT
B - WIRE INSTRUCTIONS

 

Citibank

New York, NY

Account Name: Sichenzia Ross Friedman Ference LLP (IOLA Account)

	A/C#:	92883436
	ABA#:	021000089
	SWIFT Code:	CITIUS33

Ref:
TONIX – [Insert the Name of Purchaser exactly as it appears on the Omnibus Signature Page]

 

    	 

    	 

    

 

EXHIBIT C – OVERNIGHT DELIVERY
INSTRUCTIONS

 

Original
Old Notes should be sent by overnight delivery as follows:

 

Sichenzia
Ross Friedman Ference LLP

61 Broadway,
32nd Floor

New York,
New York 10006

Attn: James
M. Turner, Esq.

 

    	 

    	 

    

 

EXHIBIT D –CONVERTIBLE DEBENTURE

 

    	 

    	 

    

 

EXHIBIT E – ESCROW AGREEMENT

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