Document:

Innovus
Pharmaceuticals, Inc.

2013 EQUITY INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

The Company hereby grants an Option to purchase
Shares to the Optionee named below. The terms and conditions of the Option are set forth in this cover sheet, in the attached Nonstatutory
Stock Option Agreement and in the Innovus Pharmaceuticals, Inc. 2013 Equity Incentive Plan as it may be amended from time to time.
This cover sheet is incorporated into and a part of the attached Nonstatutory Stock Option Agreement (together, the “Agreement”).

 

Date of Option Grant: __________________, [YEAR]

 

Name of Optionee: _________________________________________________

 

Number of Shares Covered by Option: ______________

 

Exercise Price per Share:  $_____.___

 

Fair Market Value of a Share on Date of Option Grant:  $_____.___

 

Expiration Date: _____________, [YEAR] [DO NOT EXCEED TEN
YEARS FROM GRANT] This Option will expire earlier as a result of certain events, including your Separation From Service,
as provided in this Agreement.

 

Vesting Calculation Date: _____________, [YEAR]

 

Vesting Schedule:

 

[INSERT
VESTING CONDITIONS AT TIME OF GRANT] In all cases, the resulting aggregate number of vested Shares will be rounded down to the
nearest whole number. No Shares subject to this Option will vest after your Service has terminated for any reason.

 

By signing this cover sheet, you agree
to all of the terms and conditions described in the Agreement and in the Plan and the Plan’s prospectus. You are also acknowledging
receipt of this Agreement and a copy of the Plan and the Plan’s prospectus, a copy of which is also enclosed.

 

	Optionee:	 
	 	(Signature)
	Company:	 
	 	(Signature)
	Title: 	 

 

Attachment

 

 

    	 

    	 

    
 

Innovus
Pharmaceuticals, Inc.

2013 EQUITY INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

	1.	The Plan and
 Other Agreements	
        The text of the Plan is incorporated in this Agreement by reference.
        You and the Company agree to execute such further instruments and to take such further action as may reasonably be necessary to
        carry out the intent of this Agreement. Unless otherwise defined in this Agreement, certain capitalized terms used in this Agreement
        are defined in the Plan.

         

        This Agreement and the Plan constitute the entire understanding
        between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are
        superseded.

         

	2.	Nonstatutory Stock Option	
        This Option is not intended to be an Nonstatutory Stock Option
        under section 422 of the Code and will be interpreted accordingly.

         

        This Option is not intended to be deferred compensation under
        section 409A of the Code and will be interpreted accordingly.

         

	3.	Vesting	This Option is only exercisable before it expires and only with respect to the vested portion of the Option.  This Option will vest according to the Vesting Schedule described in the cover sheet of this Agreement.
	4.	Term	Your Option will expire in all cases no later than the close of business at Company headquarters on the Expiration Date, as shown on the cover sheet.  Your Option may expire earlier if your Service terminates, as described in Sections 5, 6 and 7 below or on the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company.  You are solely responsible for determining whether and when to exercise any vested portion of this Option and also for keeping track of when your Option expires and when it therefore can no longer be exercised.  The Company has no obligation (and does not intend) to provide you with any further notice of your Option’s expiration dates.  The Company will have no liability to you or to any other person if all or any portion of your Option is not exercised before it expires for any reason.
	5.	Termination of Service - General	If, while the Option is outstanding, your Service terminates for any reason, other than being terminated by the Company for Cause or due to your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is three (3) months after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company.  In no event is the Option exercisable after the Expiration Date.

 

    	 

    	 

    
 

	6.	Termination of Service for
 Cause	If your Service is terminated by the Company for Cause or if you commit an act(s) of Cause while this Option is outstanding, as determined by the Committee in its sole discretion, then you shall immediately forfeit all rights to your Option without consideration, including any vested portion of the Option, and the entire Option shall immediately expire, and any rights, payments and benefits with respect to the Option shall be subject to reduction or recoupment in accordance with applicable Company policies and the Plan.  For avoidance of doubt, your Service shall also be deemed to have been terminated for Cause by the Company if, after your Service has otherwise terminated, facts and circumstances are discovered that would have justified a termination for Cause, including, without limitation, your violation of Company policies or breach of confidentiality or other restrictive covenants or conditions that may apply to you prior to or after your Termination Date.
	7.	Termination of Service due to Death or Disability	If your Service terminates because of your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is six (6) months after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or similar transaction involving the Company.  In no event is the Option exercisable after the Expiration Date.  If your Service terminated due to your death, then your estate may exercise the vested portion of your Option during the foregoing post-Service exercise period.
	8.	Leaves of Absence	
        For purposes of this Option, your Service does not terminate
        when you go on a bona fide leave of absence that was approved by the Company in writing, if the terms of the leave provide
        for Service crediting, or when Service crediting is required by applicable law. Your Service terminates in any event when the approved
        leave ends unless you immediately return to active work.

         

        The Company determines which leaves count for this purpose (along
        with determining the effect of a leave of absence on vesting of the Option), and when your Service terminates for all purposes
        under the Plan.

         

 

    	 

    	 

    
 

	9.	Notice of Exercise	
        When you wish to exercise this Option, you must notify the Company
        by filing a “Notice of Exercise” form at the address given on the form. Your notice must specify how many Shares you
        wish to purchase. Your notice must also specify how your Shares should be registered (in your name only or in your and your spouse’s
        names as community property or as joint tenants with right of survivorship). The notice can only become effective after it is received
        by the Company.

         

        If someone else wants to exercise this Option after your death,
        that person must prove to the Company’s satisfaction that he or she is entitled to do so.

         

	10.	Form of Payment	
        When you submit your notice of exercise, you must include payment
        of the aggregate Exercise Price for the Shares you are purchasing. Payment may be made in one (or a combination) of the following
        forms:

         

        · Cash,
        your personal check, a cashier’s check or a money order.

         

        · Shares
        which have already been owned by you for more than six (6) months (or such other duration of time determined by the Company) and
        which are surrendered to the Company. The Fair Market Value of the Shares, determined as of the effective date of the Option exercise,
        will be applied to the Exercise Price.

         

        ·  To
the extent a public market for the Shares exists as determined by the Company, by Cashless Exercise through delivery (on a form
prescribed by the Company) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the
sale proceeds to the Company in payment of the aggregate Exercise Price.

         

        ·  To
the extent approved by the Committee in its discretion and with all terms and conditions determined by the Committee, payment
may be made in another form of legal consideration acceptable to the Committee.

         

 

    	 

    	 

    
 

	11.	Withholding Taxes	
        You will be solely responsible for payment
        of any and all applicable taxes, including without limitation any penalties or interest based upon such tax obligations, associated
        with this Award.

         

        You will not be allowed to exercise this Option unless you make
        acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Shares
        acquired under this Option.

         

        To the extent a public market for the Shares exists as determined
        by the Company, such withholding taxes may be settled by Cashless Exercise through delivery (on a form prescribed by the Company)
        of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company
        in payment of the withholding taxes.

         

        To the extent approved by the Committee in its discretion and
        with all terms and conditions determined by the Committee, payment of withholding taxes may be made in another form of legal consideration
        acceptable to the Committee.

         

 

    	 

    	 

    
 

	12.	Code Section 409A	This Award will be administered and interpreted to comply with Code Section 409A.  The provisions of the Plan concerning Code Section 409A will apply to this Award to the extent needed.
	 	 	 
	13.	Restrictions on Exercise and Resale	
        By signing this Agreement, you agree not to (i) exercise this
        Option (“Exercise Prohibition”), or (ii) sell, transfer, dispose of, pledge, hypothecate, make any short sale of, or
        otherwise effect a similar transaction of any Shares acquired under this Option (each a “Sale Prohibition”) at a time
        when applicable laws, regulations or Company or underwriter trading policies prohibit the exercise or disposition of Shares. The
        Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation.
        The Company shall have the right to designate one or more periods of time, each of which generally will not exceed one hundred
        eighty (180) days in length (provided however, that such period may be extended in connection with the Company’s release
        (or announcement of release) of earnings results or other material news or events), and to impose an Exercise Prohibition and/or
        Sale Prohibition, if the Company determines (in its sole discretion) that such limitation(s) is needed in connection with a public
        offering of Shares or to comply with an underwriter’s request or trading policy, or could in any way facilitate a lessening
        of any restriction on transfer pursuant to the Securities Act or any state securities laws with respect to any issuance of securities
        by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state
        securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Securities
        Act or any applicable state securities laws for the issuance or transfer of any securities. The Company may issue stop/transfer
        instructions and/or appropriately legend any stock certificates issued pursuant to this Option in order to ensure compliance with
        the foregoing. Any such Exercise Prohibition shall not alter the vesting schedule set forth in this Agreement other than to limit
        the periods during which this Option shall be exercisable.

         

        If the sale of Shares under the Plan is not registered under
        the Securities Act, but an exemption is available which requires an investment or other representation, you shall represent and
        agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment, and
        not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate
        by the Company and its counsel.

         

        You may also be required, as a condition of exercise of this
        Option, to enter into any Company stockholder agreement or other agreements that are applicable to stockholders.

         

	 	 	 	 

 

    	 

    	 

    
 

	14.	Transfer of Option	Prior to your death, only you may exercise this Option.  You cannot gift, transfer, assign, alienate, pledge, hypothecate, attach, sell, or encumber this Option.  If you attempt to do any of these things, this Option will immediately become invalid.  You may, however, dispose of this Option in your will or it may be transferred by the laws of descent and distribution.  Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company obligated to recognize your spouse’s interest in your Option in any other way.
	15.	Retention Rights	Your Option or this Agreement does not give you the right to be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity.  The Company (or any Parent and any Subsidiaries or Affiliates) reserves the right to terminate your Service at any time and for any reason.
	16.	Extraordinary Compensation	This Option and the Shares subject to the Option are not intended to constitute or replace any pension rights or compensation and are not to be considered compensation of a continuing or recurring nature, or part of your normal or expected compensation, and in no way represent any portion of your salary, compensation or other remuneration for any purpose, including but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.
	17.	Stockholder Rights	You, or your estate, shall have no rights as a stockholder of the Company with regard to the Option until you have been issued the applicable Shares by the Company and have satisfied all other conditions specified in the Plan.  No adjustment shall be made for cash or stock dividends or other rights for which the record date is prior to the date when such applicable Shares are issued, except as provided in the Plan.

 

    	 

    	 

    
 

	18.	Adjustments	In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of Shares covered by this Option (rounded down to the nearest whole number) and the Exercise Price per Share may be adjusted pursuant to the Plan.  Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
	19.	Legends	All certificates or book entries representing the Common Stock issued under this Award may, where applicable, have endorsed thereon the following notations or legends and any other notation or legend the Company determines appropriate:
	 	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”
	 	 	“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”
	20.	Applicable Law	This Agreement will be interpreted and enforced under the laws of the State of Nevada without reference to the conflicts of law provisions thereof.
	21.	Binding Effect; No Third Party Beneficiaries	
        This Agreement shall be binding upon and inure to the benefit
        of the Company and you and any respective heirs, representatives, successors and permitted assigns. This Agreement shall not confer
        any rights or remedies upon any person other than the Company and you and any respective heirs, representatives, successors and
        permitted assigns. The parties agree that this Agreement shall survive the settlement or termination of the Award.

         

	22.	Voluntary Participant	You acknowledge that you are voluntarily participating in the Plan.

 

    	 

    	 

    
 

	23.	No Rights to Future Awards	Your rights, if any, in respect of or in connection with this Option or any other Awards are derived solely from the discretionary decision of the Company to permit you to participate in the Plan and to benefit from a discretionary future Award.  By accepting this Option, you expressly acknowledge that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to you or benefits in lieu of Options or any other Awards even if Awards have been granted repeatedly in the past.  All decisions with respect to future Awards, if any, will be at the sole discretion of the Committee.
	24.	Future Value	The future value of the underlying Shares is unknown and cannot be predicted with certainty.  If the underlying Shares do not increase in value after the Date of Option Grant, the Option will have little or no value.  If you exercise the Option and obtain Shares, the value of the Shares acquired upon exercise may increase or decrease in value, even below the Exercise Price.
	25.	No Advice Regarding Award	The Company has not provided any tax, legal or financial advice, nor has the Company made any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

 

    	 

    	 

    
 

	26.	No Right to Damages	You will have no right to bring a claim or to receive damages if any portion of the Option is cancelled or expires unexercised.  The loss of existing or potential profit in the Option will not constitute an element of damages in the event of the termination of your Service for any reason, even if the termination is in violation of an obligation of the Company or a Parent or a Subsidiary or an Affiliate to you.
	27.	Data Privacy	You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by the Company for the exclusive purpose of implementing, administering and managing your participation in the Plan.  You understand that the Company holds certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to Shares awarded, cancelled, purchased, exercised, vested, unvested or outstanding in your favor for the purpose of implementing, managing and administering the Plan (“Data”).  You understand that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere and that the recipient country may have different data privacy laws and protections than your country.  You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or other third party with whom you may elect to deposit any Shares acquired under the Plan.
	28.	Other Information	
        You agree to receive stockholder information, including copies
        of any annual report, proxy statement and periodic report, from the Company’s website, if the Company wishes to provide such
        information through its website. You acknowledge that copies of the Plan, Plan prospectus, Plan information and stockholder information
        are also available upon written or telephonic request to the Plan’s administrator.

         

  

    	 

    	 

    
 

	29.	Nondisclosure of Confidential Information	
        You acknowledge that the businesses of
        the Company is highly competitive and that the Company’s strategies, methods, books, records, and documents, technical information
        concerning their products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and
        other information (such as credit and financial data) concerning former, present or prospective customers and business affiliates,
        all comprise confidential business information and trade secrets which are valuable, special, and unique assets which the Company
        uses in their business to obtain a competitive advantage over competitors. You further acknowledge that protection of such confidential
        business information and trade secrets against unauthorized disclosure and use is of critical importance to the Company in maintaining
        its competitive position. You acknowledge that by reason of your duties to and association with the Company, you have had and will
        have access to and have and will become informed of confidential business information which is a competitive asset of the Company.
        You hereby agree that you will not, at any time during or after employment, make any unauthorized disclosure of any confidential
        business information or trade secrets of the Company, or make any use thereof, except in the carrying out of services responsibilities.
        You shall take all necessary and appropriate steps to safeguard confidential business information and protect it against disclosure,
        misappropriation, misuse, loss and theft. Confidential business information shall not include information in the public domain
        (but only if the same becomes part of the public domain through a means other than a disclosure prohibited hereunder). The above
        notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or
        (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which your legal rights
        and obligations as a service provider or under this Agreement are at issue; provided, however, that you shall, to the extent practicable
        and lawful in any such events, give prior notice to the Company of your intent to disclose any such confidential business information
        in such context so as to allow the Company an opportunity (which you will not oppose) to obtain such protective orders or similar
        relief with respect thereto as may be deemed appropriate. Any information not specifically related to the Company would not be
        considered confidential to the Company.

         

        The Company will be entitled to enforce its rights under this
        Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other
        rights to which it may be entitled. You agree and acknowledge that money damages may not be an adequate remedy for breach of the
        provisions of this Agreement and that the Company may in its sole discretion apply to any court of law or equity of competent jurisdiction
        for specific performance and/or injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.

         

 

    	 

    	 

    
 

	30.	Further Assistance	You agree to provide assistance reasonably requested by the Company in connection with actions taken by you while providing services to the Company, including but not limited to assistance in connection with any lawsuits or other claims against the Company arising from events during the period in which you rendered service to the Company.
	31.	Notice	Any notice to be given or delivered to the Company relating to this Agreement shall be in writing and addressed to the Company at its principal corporate offices.  Any notice to be given or delivered to you relating to this Agreement shall be in writing and addressed to you at such address of which you advise the Company in writing.  All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

____________________________

 

By signing the cover sheet
of this Agreement, you agree to all of the terms and conditions described above and in the Plan and Plan prospectus. Any inconsistency
between this Agreement and the Plan shall be resolved by reference to the Plan.

 

    	 

    	 

    
 

Innovus
Pharmaceuticals, Inc.

NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION BY OPTIONEE

 

Innovus Pharmaceuticals, Inc.

4275 Executive Square, Suite 207, San Diego CA, 92037

Attention: Secretary

	 	 
	Re:	Exercise of Nonstatutory Stock Option to Purchase Shares of Company Stock
	 	 
	 	___________________________________

              [PRINT NAME OF OPTIONEE]

Pursuant to the Nonstatutory Stock Option
Agreement dated ___________________, ______ between Innovus Pharmaceuticals, Inc., a Nevada corporation, (the “Company”)
and me, made pursuant to the 2013 Equity Incentive Plan (the “Plan”), I hereby request to purchase _______ Shares
(whole number only and must be not less than twenty-five Shares or the remaining number of vested Shares subject to this Option)
of common stock of the Company (the “Shares”), at the exercise price of $__________ per Share. I am hereby making full
payment of the aggregate exercise price by one or more of the following forms of payment in accordance with the whole number percentages
that I have provided below. I further understand and agree that I will timely satisfy any and all applicable tax withholding obligations
as a condition of this Option exercise.

 

	 	Percentage

of Payment	Form of Payment As Provided In the Nonstatutory Stock Option Agreement	 
	 	 	 	 
	 	_______%	Cash/My Personal Check/Cashier’s Check/Money Order (payable to “Innovus Pharmaceuticals, Inc.”)	 
	 	 	 	 
	 	_______%	Surrender of vested Shares (Valued At Their Fair Market Value) Owned	 
	 	   100%	By Me For More Than Six (6) Months	 
	 	 	 	 
	Check one:	 ̈ The Shares certificate is to be issued and registered in my name only.
	 	 
	 	 ̈ The Shares certificate is to be issued and registered in my name and my spouse’s name.
	 	 	 	 	 

	 	______________________________________________
	 	[PRINT SPOUSE’S NAME, IF CHECKING SECOND BOX]
	 	 
	 	
        Check one (if checked second box
        above):

         

         ̈
Community Property or  ̈ Joint
Tenants With Right of Survivorship

 

I acknowledge that I have received, understand
and continue to be bound by all of the terms and conditions set forth in the Plan, Plan prospectus and in the Nonstatutory Stock
Option Agreement.

 

Dated: __________________

 

		 	
	(Optionee’s Signature)	 	(Spouse’s Signature)**
	 	 	 
	 	 	**Spouse must sign this Notice of Exercise if listed above.
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Full Address)	 	(Full Address)

 

*THIS NOTICE OF EXERCISE MAY BE REVISED BY THE COMPANY AT
ANY TIME WITHOUT NOTICE.Innovus
Pharmaceuticals, Inc.

2013 EQUITY INCENTIVE PLAN

 

INCENTIVE STOCK OPTION AGREEMENT

 

The Company hereby grants an Option to purchase
Shares to the Optionee named below. The terms and conditions of the Option are set forth in this cover sheet, in the attached Incentive
Stock Option Agreement and in the Innovus Pharmaceuticals, Inc. 2013 Equity Incentive Plan as it may be amended from time to time.
This cover sheet is incorporated into and a part of the attached Incentive Stock Option Agreement (together, the “Agreement”).

 

Date of Option Grant: __________________, [YEAR]

 

Name of Optionee: _________________________________________________

 

Number of Shares Covered by Option: ______________

 

Exercise Price per Share:  $_____.___

 

Fair Market Value of a Share on Date of Option Grant:  $_____.___

 

Expiration Date: _____________, [YEAR] [DO NOT EXCEED TEN
YEARS FROM GRANT OR FIVE YEARS FOR 10% SHAREHOLDER] This Option will expire earlier as a result of certain events, including
your Separation From Service, as provided in this Agreement.

 

Vesting Calculation Date: _____________, [YEAR]

 

Vesting Schedule:

 

[INSERT VESTING CONDITIONS AT TIME OF GRANT]
In all cases, the resulting aggregate number of vested Shares will be rounded down to the nearest whole number. No Shares subject
to this Option will vest after your Service has terminated for any reason.

 

By signing this cover sheet, you agree
to all of the terms and conditions described in the Agreement and in the Plan and the Plan’s prospectus. You are also acknowledging
receipt of this Agreement and a copy of the Plan and the Plan’s prospectus, a copy of which is also enclosed.

 

	Optionee:	 
	 	(Signature)
	Company:	 
	 	(Signature)
	Title: 	 

 

Attachment

 

    	 

    	 

    

 

Innovus
Pharmaceuticals, Inc.

2013 EQUITY INCENTIVE PLAN

 

INCENTIVE STOCK OPTION AGREEMENT

 

	1.	The Plan and

Other Agreements	
        The text of the Plan is incorporated in this Agreement by reference.
        You and the Company agree to execute such further instruments and to take such further action as may reasonably be necessary to
        carry out the intent of this Agreement. Unless otherwise defined in this Agreement, certain capitalized terms used in this Agreement
        are defined in the Plan.

         

        This Agreement and the Plan constitute the entire understanding
        between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this Option are
        superseded.

         

	2.	Incentive Stock Option	
        This Option is intended to be an Incentive Stock Option under
        section 422 of the Code and will be interpreted accordingly.

         

        If you cease to be an employee of the Company, a Subsidiary
        or of a Parent but continue to provide Service, this Option will be treated as a Nonstatutory Stock Option on the day after the
        date that is three (3) months after you cease to be an employee of the Company (and any Subsidiary or any Parent): (i) even if
        you continue to provide Service after your employment has terminated or (ii) if your termination of employment was for any reason
        other than due to your death or Disability. In addition, to the extent that all or part of this Option exceeds the $100,000 limitation
        rule of section 422(d) of the Code, this Option or the lesser excess part will be treated as a Nonstatutory Stock Option.

         

        This Option is not intended to be deferred compensation under
        section 409A of the Code and will be interpreted accordingly.

         

	3.	Vesting	This Option is only exercisable before it expires and only with respect to the vested portion of the Option. This Option will vest according to the Vesting Schedule described in the cover sheet of this Agreement.
	4.	Term	Your Option will expire in all cases no later than the close of business at Company headquarters on the Expiration Date, as shown on the cover sheet. Your Option may expire earlier if your Service terminates, as described in Sections 5, 6 and 7 below or on the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company. You are solely responsible for determining whether and when to exercise any vested portion of this Option and also for keeping track of when your Option expires and when it therefore can no longer be exercised. The Company has no obligation (and does not intend) to provide you with any further notice of your Option’s expiration dates. The Company will have no liability to you or to any other person if all or any portion of your Option is not exercised before it expires for any reason.

 

    	 

    	 

    
 

	5.	Termination of Service - General	If, while the Option is outstanding, your Service terminates for any reason, other than being terminated by the Company for Cause or due to your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is three (3) months after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or reorganization or similar transaction involving the Company. In no event is the Option exercisable after the Expiration Date.
	6.	Termination of Service for

Cause	If your Service is terminated by the Company for Cause or if you commit an act(s) of Cause while this Option is outstanding, as determined by the Committee in its sole discretion, then you shall immediately forfeit all rights to your Option without consideration, including any vested portion of the Option, and the entire Option shall immediately expire, and any rights, payments and benefits with respect to the Option shall be subject to reduction or recoupment in accordance with applicable Company policies and the Plan. For avoidance of doubt, your Service shall also be deemed to have been terminated for Cause by the Company if, after your Service has otherwise terminated, facts and circumstances are discovered that would have justified a termination for Cause, including, without limitation, your violation of Company policies or breach of confidentiality or other restrictive covenants or conditions that may apply to you prior to or after your Termination Date.
	7.	Termination of Service due to Death or Disability	If your Service terminates because of your death or Disability, then the unvested portion of your Option shall be forfeited without consideration and shall immediately expire on your Termination Date and the vested portion of your Option will expire at the earlier of (i) the close of business at Company headquarters on the date that is six (6) months after your Termination Date, (ii) the Expiration Date set forth in the attached cover sheet and further described in Section 4 above, or (iii) the date on which the Option is cancelled (and not substituted or assumed) pursuant to a Change in Control or merger or acquisition or similar transaction involving the Company. In no event is the Option exercisable after the Expiration Date. If your Service terminated due to your death, then your estate may exercise the vested portion of your Option during the foregoing post-Service exercise period.

 

    	 

    	 

    
 

	8.	Leaves of Absence	
        For purposes of this Option, your Service does not terminate
        when you go on a bona fide leave of absence that was approved by the Company in writing, if the terms of the leave provide
        for Service crediting, or when Service crediting is required by applicable law. For income tax purposes, if the period of leave
        exceeds three (3) months and your right to reemployment is not provided either by statute or by contract, then this Option will
        be treated as a Nonstatutory Stock Option if the exercise of this Option occurs after the expiration of six (6) months from the
        commencement of such leave of absence. Your Service terminates in any event when the approved leave ends unless you immediately
        return to active work.

         

        The Company determines which leaves count for this purpose (along
        with determining the effect of a leave of absence on vesting of the Option), and when your Service terminates for all purposes
        under the Plan.

         

	9.	Notice of Exercise	
        When you wish to exercise this Option, you must notify the Company
        by filing a “Notice of Exercise” form at the address given on the form. Your notice must specify how many Shares you
        wish to purchase. Your notice must also specify how your Shares should be registered (in your name only or in your and your spouse’s
        names as community property or as joint tenants with right of survivorship). The notice can only become effective after it is received
        by the Company.

         

        If someone else wants to exercise this Option after your death,
        that person must prove to the Company’s satisfaction that he or she is entitled to do so.

         

	10.	Form of Payment	
        When you submit your notice of exercise, you must include payment
        of the aggregate Exercise Price for the Shares you are purchasing. Payment may be made in one (or a combination) of the following
        forms:

         

        ·     Cash,
        your personal check, a cashier’s check or a money order.

         

        ·     Shares
        which have already been owned by you for more than six (6) months (or such other duration of time determined by the Company) and
        which are surrendered to the Company. The Fair Market Value of the Shares, determined as of the effective date of the Option exercise,
        will be applied to the Exercise Price.

         

        ·     To the extent a public market for the Shares exists as determined by the Company, by Cashless Exercise through delivery
(on a form prescribed by the Company) of an irrevocable direction to a securities broker to sell Shares and to deliver all or
part of the sale proceeds to the Company in payment of the aggregate Exercise Price.

         

        ·     To the extent approved by the Committee in its discretion and with all terms and conditions determined by the Committee, payment
may be made in another form of legal consideration acceptable to the Committee.

         

 

    	 

    	 

    
 

	11.	Withholding Taxes	
        You will be solely responsible for payment
        of any and all applicable taxes, including without limitation any penalties or interest based upon such tax obligations, associated
        with this Award.

         

        You will not be allowed to exercise this Option unless you make
        acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Shares
        acquired under this Option.

         

        To the extent a public market for the Shares exists as determined
        by the Company, such withholding taxes may be settled by Cashless Exercise through delivery (on a form prescribed by the Company)
        of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company
        in payment of the withholding taxes.

         

        To the extent approved by the Committee in its discretion and
        with all terms and conditions determined by the Committee, payment of withholding taxes may be made in another form of legal consideration
        acceptable to the Committee.

         

	12.	Code Section 409A	This Award will be administered and interpreted to comply with Code Section 409A. The provisions of the Plan concerning Code Section 409A will apply to this Award to the extent needed.
	13.	Restrictions on Exercise and Resale	
        Notwithstanding anything to the contrary, this
Option is granted on the condition that the Company’s stockholders approve the Plan prior to February 15, 2014. You
understand and agree that this Option may not be exercised unless the Company’s stockholders timely approve the Plan. If
the Company’s stockholders do not approve the Plan prior to February 15, 2014, then this Option shall be immediately forfeited
without consideration.

         

        By signing this Agreement, you agree not to (i) exercise this
        Option (“Exercise Prohibition”), or (ii) sell, transfer, dispose of, pledge, hypothecate, make any short sale of, or
        otherwise effect a similar transaction of any Shares acquired under this Option (each a “Sale Prohibition”) at a time
        when applicable laws, regulations or Company or underwriter trading policies prohibit the exercise or disposition of Shares. The
        Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation.
        The Company shall have the right to designate one or more periods of time, each of which generally will not exceed one hundred
        eighty (180) days in length (provided however, that such period may be extended in connection with the Company’s release
        (or announcement of release) of earnings results or other material news or events), and to impose an Exercise Prohibition and/or
        Sale Prohibition, if the Company determines (in its sole discretion) that such limitation(s) is needed in connection with a public
        offering of Shares or to comply with an underwriter’s request or trading policy, or could in any way facilitate a lessening
        of any restriction on transfer pursuant to the Securities Act or any state securities laws with respect to any issuance of securities
        by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state
        securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Securities
        Act or any applicable state securities laws for the issuance or transfer of any securities. The Company may issue stop/transfer
        instructions and/or appropriately legend any stock certificates issued pursuant to this Option in order to ensure compliance with
        the foregoing. Any such Exercise Prohibition shall not alter the vesting schedule set forth in this Agreement other than to limit
        the periods during which this Option shall be exercisable.

         

        If the sale of Shares under the Plan is not registered under
        the Securities Act, but an exemption is available which requires an investment or other representation, you shall represent and
        agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment, and
        not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate
        by the Company and its counsel.

         

        You may also be required, as a condition of exercise of this
        Option, to enter into any Company stockholder agreement or other agreements that are applicable to stockholders.

         

        If you sell or otherwise dispose of any of the Shares acquired
        pursuant to the exercise of this Option on or before the later of (i) the date that is two years after the Date of Option Grant
        or (ii) the date that is one year after the applicable exercise of this Option, then you shall within ten days of any and all such
        sales or dispositions provide the Company with written notice of such transactions including without limitation the date of each
        disposition, the number of Shares that you disposed of in each transaction and their original Date of Option Grant, and the amount
        of proceeds you received from each disposition.

         

	 	 	 

 

    	 

    	 

    
 

	14.	Transfer of Option	Prior to your death, only you may exercise this Option. You cannot gift, transfer, assign, alienate, pledge, hypothecate, attach, sell, or encumber this Option. If you attempt to do any of these things, this Option will immediately become invalid. You may, however, dispose of this Option in your will or it may be transferred by the laws of descent and distribution. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company obligated to recognize your spouse’s interest in your Option in any other way.
	15.	Retention Rights	Your Option or this Agreement does not give you the right to be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity. The Company (or any Parent and any Subsidiaries or Affiliates) reserves the right to terminate your Service at any time and for any reason.
	16.	Extraordinary Compensation	This Option and the Shares subject to the Option are not intended to constitute or replace any pension rights or compensation and are not to be considered compensation of a continuing or recurring nature, or part of your normal or expected compensation, and in no way represent any portion of your salary, compensation or other remuneration for any purpose, including but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.
	17.	Stockholder Rights	You, or your estate, shall have no rights as a stockholder of the Company with regard to the Option until you have been issued the applicable Shares by the Company and have satisfied all other conditions specified in the Plan. No adjustment shall be made for cash or stock dividends or other rights for which the record date is prior to the date when such applicable Shares are issued, except as provided in the Plan.
	18.	Adjustments	In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of Shares covered by this Option (rounded down to the nearest whole number) and the Exercise Price per Share may be adjusted pursuant to the Plan. Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

 

    	 

    	 

    

 

	19.	Legends	All certificates or book entries representing the Common Stock issued under this Award may, where applicable, have endorsed thereon the following notations or legends and any other notation or legend the Company determines appropriate:
	 	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”
	 	 	“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”
	20.	Applicable Law	This Agreement will be interpreted and enforced under the laws of the State of Nevada without reference to the conflicts of law provisions thereof.
	21.	Binding Effect; No Third Party Beneficiaries	
        This Agreement shall be binding upon and inure to the benefit
        of the Company and you and any respective heirs, representatives, successors and permitted assigns. This Agreement shall not confer
        any rights or remedies upon any person other than the Company and you and any respective heirs, representatives, successors and
        permitted assigns. The parties agree that this Agreement shall survive the settlement or termination of the Award.

         

	22.	Voluntary Participant	You acknowledge that you are voluntarily participating in the Plan.
	23.	No Rights to Future Awards	Your rights, if any, in respect of or in connection with this Option or any other Awards are derived solely from the discretionary decision of the Company to permit you to participate in the Plan and to benefit from a discretionary future Award. By accepting this Option, you expressly acknowledge that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to you or benefits in lieu of Options or any other Awards even if Awards have been granted repeatedly in the past. All decisions with respect to future Awards, if any, will be at the sole discretion of the Committee.

 

    	 

    	 

    
 

	24.	Future Value	The future value of the underlying Shares is unknown and cannot be predicted with certainty. If the underlying Shares do not increase in value after the Date of Option Grant, the Option will have little or no value. If you exercise the Option and obtain Shares, the value of the Shares acquired upon exercise may increase or decrease in value, even below the Exercise Price. 
	25.	No Advice Regarding Award	The Company has not provided any tax, legal or financial advice, nor has the Company made any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

 

    	 

    	 

    
 

	26.	No Right to Damages	You will have no right to bring a claim or to receive damages if any portion of the Option is cancelled or expires unexercised. The loss of existing or potential profit in the Option will not constitute an element of damages in the event of the termination of your Service for any reason, even if the termination is in violation of an obligation of the Company or a Parent or a Subsidiary or an Affiliate to you.
	27.	Data Privacy	You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by the Company for the exclusive purpose of implementing, administering and managing your participation in the Plan. You understand that the Company holds certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to Shares awarded, cancelled, purchased, exercised, vested, unvested or outstanding in your favor for the purpose of implementing, managing and administering the Plan (“Data”). You understand that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere and that the recipient country may have different data privacy laws and protections than your country. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or other third party with whom you may elect to deposit any Shares acquired under the Plan.
	28.	Other Information	
        You agree to receive stockholder information, including copies
        of any annual report, proxy statement and periodic report, from the Company’s website, if the Company wishes to provide such
        information through its website. You acknowledge that copies of the Plan, Plan prospectus, Plan information and stockholder information
        are also available upon written or telephonic request to the Plan’s administrator.

         

 

    	 

    	 

    
 

	29.	Nondisclosure of Confidential Information	
        You acknowledge that the businesses of
        the Company is highly competitive and that the Company’s strategies, methods, books, records, and documents, technical information
        concerning their products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and
        other information (such as credit and financial data) concerning former, present or prospective customers and business affiliates,
        all comprise confidential business information and trade secrets which are valuable, special, and unique assets which the Company
        uses in their business to obtain a competitive advantage over competitors. You further acknowledge that protection of such confidential
        business information and trade secrets against unauthorized disclosure and use is of critical importance to the Company in maintaining
        its competitive position. You acknowledge that by reason of your duties to and association with the Company, you have had and will
        have access to and have and will become informed of confidential business information which is a competitive asset of the Company.
        You hereby agree that you will not, at any time during or after employment, make any unauthorized disclosure of any confidential
        business information or trade secrets of the Company, or make any use thereof, except in the carrying out of services responsibilities.
        You shall take all necessary and appropriate steps to safeguard confidential business information and protect it against disclosure,
        misappropriation, misuse, loss and theft. Confidential business information shall not include information in the public domain
        (but only if the same becomes part of the public domain through a means other than a disclosure prohibited hereunder). The above
        notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or
        (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which your legal rights
        and obligations as a service provider or under this Agreement are at issue; provided, however, that you shall, to the extent practicable
        and lawful in any such events, give prior notice to the Company of your intent to disclose any such confidential business information
        in such context so as to allow the Company an opportunity (which you will not oppose) to obtain such protective orders or similar
        relief with respect thereto as may be deemed appropriate. Any information not specifically related to the Company would not be
        considered confidential to the Company.

         

        The Company will be entitled to enforce its rights under this
        Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other
        rights to which it may be entitled. You agree and acknowledge that money damages may not be an adequate remedy for breach of the
        provisions of this Agreement and that the Company may in its sole discretion apply to any court of law or equity of competent jurisdiction
        for specific performance and/or injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.

         

 

    	 

    	 

    
 

	30.	Further Assistance	You agree to provide assistance reasonably requested by the Company in connection with actions taken by you while providing services to the Company, including but not limited to assistance in connection with any lawsuits or other claims against the Company arising from events during the period in which you rendered service to the Company.
	31.	Notice	Any notice to be given or delivered to the Company relating to this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice to be given or delivered to you relating to this Agreement shall be in writing and addressed to you at such address of which you advise the Company in writing. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

____________________________

 

By signing the cover sheet
of this Agreement, you agree to all of the terms and conditions described above and in the Plan and Plan prospectus. Any inconsistency
between this Agreement and the Plan shall be resolved by reference to the Plan.

 

    	 

    	 

    

 

Innovus
Pharmaceuticals, Inc.

NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION BY OPTIONEE

 

Innovus Pharmaceuticals, Inc.

4275 Executive Square, Suite 207, San Diego CA, 92037

Attention: Secretary

 

	 	 
	Re:	Exercise of Incentive
Stock Option to Purchase Shares of Company Stock
	 	 
	 	___________________________________

              [PRINT NAME OF OPTIONEE]

  

Pursuant to the Incentive Stock Option Agreement
dated ___________________, ______ between Innovus Pharmaceuticals, Inc., a Nevada corporation, (the “Company”) and
me, made pursuant to the 2013 Equity Incentive Plan (the “Plan”), I hereby request to purchase _______ Shares
(whole number only and must be not less than twenty-five Shares or the remaining number of vested Shares subject to this Option)
of common stock of the Company (the “Shares”), at the exercise price of $__________ per Share. I am hereby making full
payment of the aggregate exercise price by one or more of the following forms of payment in accordance with the whole number percentages
that I have provided below. I further understand and agree that I will timely satisfy any and all applicable tax withholding obligations
as a condition of this Option exercise.

 

	 	Percentage

of Payment	Form of Payment As Provided In the Incentive Stock Option Agreement	 
	 	 	 	 
	 	_______%	Cash/My Personal Check/Cashier’s Check/Money Order (payable to “Innovus Pharmaceuticals, Inc.”)	 
	 	 	 	 
	 	_______%	Surrender of vested Shares (Valued At Their Fair Market Value) Owned	 
	 	   100%	By Me For More Than Six (6) Months	 
	 	 	 	 
	Check one:	 ̈ The Shares certificate is to be issued and registered in my name only.
	 	 
		 ̈ The Shares certificate is to be issued and registered in my name and my spouse’s name.
	 	 	 	 	 

	 	______________________________________________
	 	[PRINT SPOUSE’S NAME, IF CHECKING SECOND BOX]
 
	 	 
	 	
        Check one (if checked second box
        above):

         

         ̈
Community Property or  ̈ Joint
Tenants With Right of Survivorship

 

I acknowledge that I have received, understand and continue to be bound by all of the terms and conditions
set forth in the Plan, Plan prospectus and in the Incentive Stock Option Agreement.

 

Dated: __________________

 

		 	
	(Optionee’s Signature)	 	(Spouse’s Signature)**
	 	 	 
	 	 	**Spouse must sign this Notice of Exercise if listed above.
 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Full Address)	 	(Full Address)

 

*THIS NOTICE OF EXERCISE MAY BE REVISED BY THE COMPANY AT
ANY TIME WITHOUT NOTICE.

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