<SEC-DOCUMENT>0001019687-16-007157.txt : 20160811
<SEC-HEADER>0001019687-16-007157.hdr.sgml : 20160811
<ACCEPTANCE-DATETIME>20160811074249
ACCESSION NUMBER:		0001019687-16-007157
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160809
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160811
DATE AS OF CHANGE:		20160811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIMULATIONS PLUS INC
		CENTRAL INDEX KEY:			0001023459
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				954595609
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32046
		FILM NUMBER:		161823013

	BUSINESS ADDRESS:	
		STREET 1:		42505 10TH STREET WEST
		STREET 2:		*
		CITY:			LANCASTER
		STATE:			CA
		ZIP:			93534-7059
		BUSINESS PHONE:		661-723-7723

	MAIL ADDRESS:	
		STREET 1:		42505 10TH STREET WEST
		CITY:			LANCASTER
		STATE:			CA
		ZIP:			93534-7059
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>simulations_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>UNITED STATES</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> August 9,
2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-weight: normal">(Date of the
earliest event reported)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Simulations Plus, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-weight: normal">(Exact name
of registrant as specified in its charter)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%; text-align: center"><B>California</B></TD>
    <TD STYLE="width: 34%; text-align: center"><B>001-32046</B></TD>
    <TD STYLE="width: 33%; text-align: center"><B>95-4595609</B></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center"><FONT STYLE="font-weight: normal">(State
or other jurisdiction of incorporation)</FONT></TD>
    <TD STYLE="text-align: center"> (Commission File Number)</TD>
    <TD STYLE="text-align: center"> (I.R.S. Employer Identification No.)</TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">42505 10<SUP>th</SUP> Street West, Lancaster,
California 93534-7059</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-weight: normal">(Address of
principal executive offices) (Zip Code)</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">661-723-7723</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-weight: normal">Registrant's
telephone number, including area code</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font-weight: normal">[
&nbsp;] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font-weight: normal">[
&nbsp;] Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font-weight: normal">[
&nbsp;] Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font-weight: normal">[
&nbsp;] Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 1.01 Entry Into a Material Definitive
Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 9th, 2016, the Company renewed its
Employment Agreement with Walter S. Woltosz to serve as Chief Executive Officer of the Company (the &ldquo;Woltosz Employment Agreement&rdquo;).
The terms of the agreement were substantially the same as the 2015-2016 agreement. The new agreement has a one-year term that begins
on September 1, 2016. Under the terms of the Woltosz Employment Agreement, Mr. Woltosz is required to devote a minimum of 60% of
his productive time to the position of Chief Executive Officer of the Company. He will receive annual compensation of $180,000,
be eligible to receive up to 12,000 Company stock options under the Company&rsquo;s Stock Option Plan, as determined by the Company&rsquo;s
Board of Directors, and shall be paid an annual performance bonus of up to 5% of the Company&rsquo;s net income before taxes not
to exceed $36,000. A copy of the Woltosz Employment Agreement is attached hereto as Exhibit 10.1 and incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CAUTION REGARDING FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Forward-looking statements in this Report or
hereafter, including in other publicly available documents filed with the Securities and Exchange Commission (the &quot;Commission&quot;),
reports to the stockholders of Simulations Plus, Inc., a California corporation (the &quot;Company&quot; or &quot;us,&quot; &quot;our&quot;
or &quot;we&quot;) and other publicly available statements issued or released by us involve known and unknown risks, uncertainties
and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the
future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such
future results are based upon management's best estimates based upon current conditions and the most recent results of operations.
These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission,
each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual
results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 60pt"> 10.1 Employment Agreement with Walter S. Woltosz.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2"><B>SIMULATIONS PLUS, INC.</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">Dated: August  11, 2016</TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="vertical-align: top; width: 46%"><I>/s/ John R. Kneisel</I></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">John R. Kneisel<BR>Chief Financial Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: left; margin-bottom: 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>simulations_8k-ex1001.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT
<TEXT>
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<P STYLE="margin: 0">Exhibit 10.1</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EMPLOYMENT AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This Employment Agreement (the &ldquo;Agreement&rdquo;) is made
as of this<FONT STYLE="color: red"> </FONT>9th day of August, 2016, by and between Simulations Plus, Inc., a California corporation
(the &ldquo;Company&rdquo;) and Walter S. Woltosz, an individual (the &ldquo;Employee&rdquo;) with reference to the following facts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">A.&#9;The Company desires to secure the services of the Employee
as Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">B.&#9;The Employee agrees to perform such services for the Company
under the terms and conditions set forth in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In consideration of the mutual promises, covenants, and conditions
set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it
is hereby agreed by and between the Company and the Employee as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">1.&#9;Representations and Warranties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company represents and warrants that it is empowered under its
Articles of Incorporation and Bylaws to enter into this Agreement. The Employee represents and warrants that he is under no employment
contract, bond, confidentiality agreement, or any other obligation that would violate or be in conflict with the terms and conditions
of this Agreement or encumber his performance of duties assigned to him by the Company. The Employee further represents and warrants
that he has not signed or committed to any employment or consultant duties or other obligations that would divert his attention
from the duties assigned to him by the Company by this Agreement at a minimum level of 60% of full-time employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2.&#9;Employment and Duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company employs the Employee as Chief Executive Officer and
the Employee hereby accepts such employment (the &ldquo;Employment&rdquo;). The Employee agrees that he shall devote a minimum
of 60% of his productive time, ability, attention, energy, knowledge, and skill solely and exclusively to performing all duties
as Chief Executive Officer of the Company as assigned or delegated to him by the directors and executive officers of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">3.&#9;Term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Subject to the provisions of Section 5, the term of this Agreement
shall extend until August 31, 2017, commencing on September 1, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">4. Compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In full and complete consideration for the Employment, each and
all of the services to be rendered to the Company by the Employee, and each and all of the representations, warranties, covenants,
agreements, and promises undertaken by the Employee pursuant to this Agreement, the Employee shall be entitled to receive compensation
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">4.1.&#9;<U>Base Salary</U>. The Employee shall receive from the
Company a base salary of one hundred eighty thousand dollars ($180,000.00) per year, payable in equal monthly installments. From
each said salary payment the Company will withhold and pay to the proper governmental authorities any and all amounts required
by law to be withheld for federal income tax, state income tax, federal Social Security tax, state disability insurance premiums,
and any and all other amounts required by law to be withheld from the Employee&rsquo;s salary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">4.2.&#9;<U>Grant of Option</U>. The Employee shall be granted an
option under Company&rsquo;s Stock Option Plan, exercisable for five (5) years, to purchase six (6) shares of Common Stock for
each one thousand dollars ($1,000) of net income before taxes that the Company earns at the end of each fiscal year (up to a maximum
of twelve thousand [12,000] options over the term of this Agreement) at an exercise price 10% over the market value per share as
of the date of grant. The maximum number of options under this grant shall be adjusted accordingly for any stock split or reverse
split after the date of this agreement. Option grants under this agreement shall be issued within ten days after the filing of
the annual report (10-K) for the fiscal year for which the option is granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">4.3&#9;<U>Performance Bonus</U>. The Employee shall be paid a Performance
Bonus in an amount equal to five percent (5%) of the Company&rsquo;s net income before taxes of the previous fiscal year, not to
exceed $36,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">4.4.&#9;<U>Benefits</U>. Employer shall provide to Employee at the
cost to Employer of 60% of actual costs, and Employee shall be entitled to receive from Employer, such health insurance and other
benefits which are appropriate to the office and position of Employee, adequate to the performance of his duties and not inconsistent
with that which Employer customarily provides at the time to its other management employees. Employee&rsquo;s right to paid time
off (&ldquo;PTO&rdquo;) shall be determined in accordance with the policies of the Company as may be in effect from time to time
and as are approved by the Company&rsquo;s Board of Directors. Employee shall have the right to reimbursement of customary, ordinary,
and necessary business expenses incurred in connection with the rendering of services and performance of the functions required
hereunder in accordance with the policies of the Company as may be in effect from time to time and as are approved by the Company&rsquo;s
Board of Directors. Such expenses are reimbursable only upon presentation by Employee of appropriate documentation pursuant to
the policies adopted by the Company&rsquo;s Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">5.&#9;Termination of Employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.1.&#9;<U>Expiration of the Term of Agreement</U>. This Agreement
shall be automatically terminated upon the expiration of the term of the agreement as described in paragraph 3 of this Agreement,
or as sooner agreed by both Employee and Company in the event this Agreement is superseded by a new agreement. Upon such termination,
the Company shall have no further liability to the Employee for any payment, compensation, or benefit whatsoever under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.2.&#9;<U>By Death</U>. This Agreement shall be terminated upon
the death of the Employee. The Company&rsquo;s total liability in such event shall be limited to payment of the Employee&rsquo;s
salary and benefits through the date of the Employee&rsquo;s death.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.3.&#9;<U>By Disability</U>. If, in the sole opinion of the Company&rsquo;s
Board of Directors, the Employee shall be prevented from properly performing his or her duties hereunder by reason of any physical
or mental incapacity for a period of more than 90 days in the aggregate in any twelve-month period, then, to the extent permitted
by law, his or her employment with the Company shall terminate. The Company&rsquo;s total liability in such event shall be limited
to payment of the Employee&rsquo;s salary and benefits through the effective date of termination upon disability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.4.&#9;<U>For Cause</U>. The Company reserves the right to terminate
this Agreement immediately, at any time, if, in the reasonable opinion of the Company&rsquo;s Board of Directors: the Employee
breaches or neglects the duties which he or she is required to perform under the terms of this Agreement; commits any material
act of dishonesty, fraud, misrepresentation, or other act of moral turpitude; is guilty of gross carelessness or misconduct; fails
to obey the lawful direction of the Company&rsquo;s Board of Directors; or acts in any way that has a direct, substantial, and
adverse effect on the Company&rsquo;s reputation. The Company&rsquo;s total liability to the Employee in the event of termination
of the Employee&rsquo;s employment under this paragraph shall be limited to the payment of the Employee&rsquo;s salary and benefits
through the effective date of termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.5.&#9;<U>Without Cause</U>. The Company reserves the right to
terminate this Agreement without cause for any reason whatsoever upon thirty (30) days&rsquo; written notice to the Employee. Upon
termination under this subsection, the Employee shall receive payment of an amount equal to twelve (12) months of the Employee&rsquo;s
base salary or the Employee&rsquo;s base salary for the remaining term of this Agreement, whichever is greater. Other than payment
of the amount as described in this paragraph, the Company shall have no further obligation to pay the Employee any other compensation
or benefits whatsoever. The Employee hereby agrees that the Company may dismiss him or her under this paragraph 5.5 without regard
(i) to any general or specific policies (whether written or oral) of the Company relating to the employment or termination of its
employees, or (ii) to any statements made to the Employee, whether made orally or contained in any document, pertaining to the
Employee&rsquo;s relationship with the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.6.&#9;<U>Mutual Consent</U>. This Agreement shall be terminated
upon mutual written consent of the Company and the Employee. The Company&rsquo;s total liability to the Employee in the event of
termination of the Employee&rsquo;s employment under this paragraph shall be limited to the payment of the Employee&rsquo;s compensation
through the effective date of termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">5.7.&#9;<U>Termination of Obligations</U>. Upon termination of employment
for any reason whatsoever, the Employee shall be deemed to have resigned from all offices and directorships then held with the
Company. Termination of employment shall have no effect on the Employee&rsquo;s position(s) on the Company&rsquo;s board of directors.
The board of directors and shareholders will determine the Employee&rsquo;s eligibility to continue to serve as a member of the
board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">6.&#9;Restrictions on Use or Disclosure of Confidential Matters,
Proprietary Information, and Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">6.1.&#9;During the term of this Agreement, the Employee may be dealing
with trade secrets of the Company, including without limitation, customer lists, client contacts, financial information, inventions,
and processes, all of a confidential nature that are the Company&rsquo;s property and are used in the course of the Company&rsquo;s
business. The Employee will not disclose to anyone, directly or indirectly, any of such trade secrets or use them other than as
necessary in the course of his duties with the Company. All documents that the Employee prepares, or confidential information that
might be given to him or that Employee himself might create in the course of his consultation with the Company, are the exclusive
property of the Company. During the term of this Agreement and at any time thereafter, the Employee shall not publish, communicate,
divulge, disclose, or use any of such information which has been reasonably designated by the Company as proprietary or confidential,
or which from the surrounding circumstances the Employee knows, or has good reason to know, or should reasonably know, ought to
be treated by the Employee as proprietary or confidential, without the prior written consent of the Company, which consent may
not be unreasonably withheld by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">6.2.&#9;In the course of his employment for the Company, Employee
will develop a personal relationship with the Company&rsquo;s customers and knowledge of those customers&rsquo; affairs and requirements,
which may constitute the Company&rsquo;s only contact with such customers. Employee consequently agrees that it is reasonable and
necessary for the protection of the goodwill and business of the Company that Employee make the covenants contained herein. Accordingly,
Employee agrees that while he is in the Company&rsquo;s employ and for a one (1) year period after the termination of such employment
for any reason whatsoever, he will not directly or indirectly:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">(a)&#9;attempt in any manner to solicit from any customer
(except on behalf of the Company) business of the type performed by the Company or to persuade any customer of the Company to cease
to do business or reduce the amount of business which any such customer has customarily done or contemplates doing with the Company,
whether or not the relationship with the Company and such customer was originally established in whole or in part through Employee&rsquo;s
efforts; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">(b)&#9;engage in any business as, or own an interest in,
directly or indirectly, any individual proprietorship, partnership, corporation, joint venture, trust, or any other form of business
entity if such business form or entity is engaged in the business in which the Company is engaged;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">(c)&#9;render any services of the type rendered by the
Company to or for any customer of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">(d)&#9;employ or attempt to employ or assist anyone else
to employ any person who is then or at any time during the preceding year in the Company&rsquo;s employ.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This entire Section 6 shall survive termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">7.&#9;Company Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">7.1.&#9;Any patents, inventions, discoveries, applications or processes,
software, and computer programs devised, planned, applied, created, discovered, or invented by the Employee in the course of the
engagement under this Agreement and which pertain to any aspect of the business of the Company, or its subsidiaries, affiliates,
or customers, shall be the sole and exclusive property of the Company, and the Employee shall make prompt report thereof to the
Company and promptly execute any and all documents reasonably requested to assure the Company the full and complete ownership thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">7.2.&#9;All records, files, lists, drawings, documents, equipment,
and similar items relating to the Company&rsquo;s business which the Employee shall prepare or receive from the Company shall remain
the Company&rsquo;s sole and exclusive property. Upon termination of this Agreement, the Employee shall return promptly to the
Company all property of the Company in his possession and the Employee represents and warrants that he will not copy, or cause
to be copied, printed, summarized, or compiled, any software, documents, or other materials originating with and/or belonging to
the Company, including, without limitation, documents or other materials created by the Employee for, or on behalf of, the Company.
The Employee further represents and warrants that he will not retain in his possession any such software, documents, or other materials
in machine or human-readable form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">7.3.&#9;This Section 7 shall survive termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">8.&#9;<U>Outside Activities.</U> During the term of this Agreement,
the Employee shall devote sixty percent (60%) of his productive time, ability, and attention to the business of the Company. During
the term of this Agreement, the Employee shall not, directly or indirectly, either as an officer, director, employee, representative,
principal, partner, shareholder, employee, agent, or in any other capacity, engage or assist any third party in engaging in any
business competitive with the business of the Company, without the prior written consent of the Company, which consent may be withheld
by the Company in its sole and absolute discretion. Following his employment with the Company, the Employee shall not engage in
unfair competition with the Company, aid others in any unfair competition with the Company, in any way breach the confidence that
the Company has placed in the Employee, or misappropriate any proprietary information of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">9.&#9;<U>Reports</U>. The Employee, when directed, shall provide
written reports to the Company with respect to the services provided hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">10.&#9;<U>Strict Loyalty</U>. The Employee hereby covenants and
agrees to avoid all circumstances and actions that reasonably would place the Employee in a position of divided loyalty with respect
to his obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">11.&#9;<U>Assignment</U>. This Agreement may not be assigned to
another party by the Employee without the prior written consent of the Company, which consent may be withheld by the Company in
its sole and absolute discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">12.&#9;<U>Arbitration</U>. Except as otherwise provided herein in
Section 15.11, any controversy between the Company and Employee in connection with this Agreement, including, without limitation,
any dispute or claim arising from the voluntary or involuntary termination hereof, shall be settled by final and binding arbitration
in Los Angeles, in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Judgment of such award
may be entered in a court of competent jurisdiction. Employee and the Company shall each pay the fees of his or its own attorneys,
the expenses of his or its witnesses, and all other fees and expenses connected with presenting his or its case at arbitration.
All other costs of the arbitration, including, without limitation, the costs of any record or transcript of the arbitration proceedings,
administrative fees, the fee for the arbitrator, and all other fees and costs shall be borne equally by the Company and Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">13.&#9;<U>Company Bylaws, Directions, Policies, Practices, Rules,
Regulations, and Procedures</U>. Employee agrees to become and remain thoroughly familiar with each and all of the Company&rsquo;s
bylaws, directions, policies, practices, rules, regulations, and procedures that relate to the employment and/or to any of Employee&rsquo;s
duties and/or responsibilities as an employee of the Company, and to abide fully by each and all of such bylaws, directions, policies,
practices, rules, regulations, and procedures. During the term of employment, Employee shall be fully bound by and employed pursuant
to each and all of the Company&rsquo;s bylaws, directions, policies, practices, rules, regulations, and procedures as now in effect
or as may be implemented, modified, or otherwise put into effect by the Company during the term of employment, regardless of whether
such bylaws, directions, policies, practices, rules, regulations, and procedures are oral or are set forth in any manual, handbook,
or other document, and it is solely the responsibility of Employee to become and remain fully aware of and familiar with each and
all such directions, policies, practices, rules, regulations, and/or procedures. In the event of any conflict between any provision
of this Agreement and any provision of the Company&rsquo;s directions, policies, practices, rules, regulations, and/or procedures,
the provisions of this Agreement govern for any and all purposes whatsoever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">14.&#9;<U>Indemnification</U>. The Company shall indemnify and hold
Employee harmless from any and all claims, demands, judgments, liens, subrogation, or costs incurred by Employee with respect to
any shareholder derivative action or other claims or suits against the Company and/or its Board of Directors by individuals, firms,
or entities not a party to this Agreement to the maximum extent permitted under California law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">15. General.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.1.&#9;<U>Further Documents</U>. Each party shall execute and
deliver all further instruments, documents, and papers, and shall perform any and all acts necessary reasonably requested by the
other party, to give full force and effect to all of the terms and provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.2.&#9;<U>Successors and Assigns</U>. Except where expressly provided
to the contrary, this Agreement, and all provisions hereof, shall inure to the benefit of and be binding upon the parties hereto,
their successors in interest, assigns, administrators, executors, heirs, and devises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.3.&#9;<U>Severability</U>. Whenever possible, each provision
of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision of
this Agreement, as applied to any party or to any circumstance, shall be found by a court or arbitrator to be invalid or unenforceable
under applicable law, such provision will be ineffective only to the extent of such invalidity or unenforceability, without invalidating
or rendering unenforceable the remainder of such provision and any such invalidity or unenforceability shall in no way affect any
other provision of this Agreement, the application of any provision in any other circumstance, or the validity or enforceability
of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.4.&#9;<U>Notices</U>. All notices or demands shall be in writing
and shall be served personally, telegraphically, or by express or certified mail. Service shall be deemed conclusively made at
the time of service if personally served, at the time that the telegraphic agency confirms to the sender deliver thereof to the
addressee if served telegraphically, 24 hours after deposit thereof in the United States mail properly addressed and postage prepaid,
return receipt requested, if served by express Mail, and five days after deposit thereof in the United States mail, properly addressed
and postage prepaid, return receipt requested, if served by certified mail. Any notice or demand to the Company shall be given
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Simulations Plus, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">42505 10th Street West</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Lancaster, CA 93534-7059</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">(661) 723-7723 Telephone</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">(661) 723-5524 Facsimile</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Attention: Compensation Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 80pt">and any notice or demand to the Employee shall be given to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Mr. Walter S. Woltosz</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">42505 10th Street West</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Lancaster, CA 93534-7059</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">(661) 723-7723 Telephone</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">(661) 723-5524 Facsimile</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 80pt">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">430 North College Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">Auburn, AL 36830</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">(661) 317-1647 Telephone</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 100pt">walt@simulations-plus.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Any party may, by virtue of a written notice in compliance with
this paragraph, alter or change the address or the identity of the person to whom any notice, or copy thereof, is to be sent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.5.&#9;<U>Waiver</U>. A waiver by any party of any of the terms
and conditions of this Agreement in any one instance shall not be deemed or construed to be a waiver of the term or condition for
the future, or of any subsequent breach thereof, or of any other term or condition thereof. Any party may waive any term, provision,
or condition included for the benefit of that party. Any and all waivers shall be in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.6.&#9;<U>Construction</U>. This Agreement shall be governed by
and construed in accordance with the laws of the State of California applicable to contracts entered into and fully to be performed
therein without regard to its principles of choice of law or conflicts of law. In all matters of interpretation, whenever necessary
to give effect to any provision of this Agreement, each gender shall include the others, the singular shall include the plural,
the plural shall include the singular, and the terms &ldquo;and&rdquo; and &ldquo;or&rdquo; may be used interchangeably as the
context so requires or implies. The title of the sections of this Agreement are for convenience only and shall not in any way affect
the interpretation of any provision or condition of this Agreement. All remedies, rights, undertakings, obligations, and agreements
contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking,
obligation, or agreement of any party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.7.&#9;<U>Entire Understanding</U>. This Agreement contains the
entire understanding of the parties hereto relating to the subject matter contained herein and supersedes all prior and collateral
agreements, understandings, statements, and negotiation of the parties. Each party acknowledges that no representations, inducements,
or promises, oral or written, with reference to the subject matter hereof have been made other than as expressly set forth herein.
This Agreement cannot be changed, rescinded, or terminated orally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.8.&#9;<U>Third Party Rights</U>. The parties hereto do not intend
to confer any rights or remedies upon any person other than the parties hereto and those referred to in Section 15.2 hereof so
long as any such assignment by Employee was approved by the Company as provided in Section 11 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.9.&#9;<U>Attorneys&rsquo; Fees</U>. In the event of any litigation
between the parties respecting or arising out of this Agreement, the prevailing party shall be entitled to recover reasonable legal
fees and costs, whether or not the litigation proceeds to final judgment or determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.10.&#9;<U>Place of Litigation</U>. Any litigation between the
parties shall occur in the County of Los Angeles, California.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.11.&#9;<U>Injunctive Relief</U>. Since a breach of the provisions
of Sections 6, 7, 8, and 10 of this Agreement cannot adequately be compensated by monetary damages, the Company shall be entitled,
in addition to any other right and remedy set forth in this Agreement or available to it at law, in equity or otherwise, to seek
and obtain from any court of competent jurisdiction immediate temporary, preliminary, and permanent injunctive relief restraining
such breach or threatened breach, without the posting of any bond or other security therefor, against the Employee and against
each and every other person, firm, company, joint venture, and/or other entity concerned with and/or acting in concert with the
Employee. Any such requirement of bond or other security is hereby expressly waived by the Employee, and the Employee expressly
acknowledges that in the absence of such waiver, a bond or other security may be required by the court. The Employee hereby consents
to the issuance of such injunction and expressly and knowingly waives any claim or defense that any adequate remedy at law might
exist for any such breach or threatened breach. The Employee agrees that the provisions of Sections 6, 7, 8, and 10 of this Agreement
are necessary and reasonable to protect the Company in the conduct of the business of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">15.12.&#9;<U>Counterparts</U>. This Agreement may be executed in
counterparts which, taken together, shall constitute the whole of the agreement between the parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">IN WITNESS THEREOF, the parties have executed this Agreement as
of the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>



<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&ldquo;Company&rdquo;</TD>
    <TD STYLE="width: 50%">SIMULATIONS PLUS, INC.,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>a California corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By: <U>/s/ John Kneisel</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp;&nbsp;Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Date:&nbsp;&nbsp;August 9, 2016</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&ldquo;Employee&rdquo;</TD>
    <TD>WALTER&nbsp;&nbsp;S. WOLTOSZ</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By: <U>/s/ Walter S. Woltosz </U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walter S. Woltosz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: &nbsp;August 9, 2016</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Compensation Committee:</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>By: <U>/s/ David Z. D&rsquo;Argenio</U></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. David Z. D&rsquo;Argenio</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: August 9, 2016</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>By: <U>/s/ David L. Ralph</U></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. David L. Ralph</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: August 9, 2016</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>By: <U>/s/ John Paglia</U></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. John K. Paglia</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date:&nbsp;&nbsp;August 9, 2016</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


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