Document:

GUARANTY
OF PAYMENT AND PERFORMANCE

 

THIS
GUARANTY OF PAYMENT AND PERFORMANCE (“Guaranty”) is made as of this 7th day of February
2019, by Sun Pacific Holding Corp., a Nevada corporation (“Guarantor”) in favor of UMB Bank, N.A., a
national banking association, in its capacity as trustee (the “Trustee”) under that certain Indenture of Trust dated
as of January 29, 2019 by and between Medrecycler-RI, Inc., and the Trustee (the “Lender”).

 

RECITALS

 

1.
MedRecycler-RI, Inc., a Rhode Island corporation (the “Borrower”), has issued its Medrecycler-RI, Inc.
Taxable Facility Note, Series 2019 in the principal amount of Six Million Twenty-Five Thousand and No/100 Dollars ($6,025,000.00)
(the “Taxable Note”), to be secured in part by that those pledges, guarantees, and other securities
described in the Indenture.

 

2.
The Taxable Note will be additionally evidenced by that certain Promissory Note of even date herewith in the principal amount
of Six Million Twenty-Five Thousand and No/100 Dollars ($6,025,000.00) (as the same may hereafter be renewed, modified, consolidated
or extended, the “Note”). The Taxable Note will be governed pursuant to the terms and conditions of
that certain Indenture of even date herewith (as the same may hereafter be renewed, modified, consolidated or extended) and any
and such documents required therein, the “Loan Documents”).

 

3.
Guarantor (a) has requested that the purchasers purchase the Taxable Note and (b) acknowledges that (i) Guarantor expects to derive
a financial benefit from the purchase of such Taxable note, and (ii) the purchasers would not agree to purchase the Taxable Note
or accept delivery from Borrower of the Note and the other instruments to be executed by Borrower with respect to the Taxable
Note but for the execution and delivery by Guarantor of this Guaranty.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby conclusively acknowledged
by Guarantor, and to induce the purchasers to purchase the Taxable Note, Guarantor hereby absolutely, unconditionally and irrevocably
agrees as follows:

 

SECTION
1. RECITALS; CAPITALIZED TERMS. The foregoing Recitals are true and correct and are hereby incorporated by reference.
Capitalized terms not defined herein shall have the meanings assigned such terms in the Loan Documents.

 

SECTION
2. GUARANTY.

 

2.1
Guarantor hereby absolutely and unconditionally guarantees the following (collectively, the “Guaranteed Obligations”):
(a) the punctual payment of the outstanding loan balance under the Note, including without limitation, principal, accrued interest
and costs stated to be payable by Borrowers with respect thereto or under the Loan Documents, (b) the punctual payment and performance
when due of all of each Borrower’s obligations under the Loan Documents, including without limitation, all present and future
liability, obligations and indemnifications whatsoever, of Borrower to Lender under the Loan Documents, with such interest as
may accrue thereon and such other charges as may be due in connection therewith, whether such obligations now exist or arise hereafter.
Subject to such grace periods as may be provided in the Loan Documents, time shall be of the essence with respect to Guarantor’s
payment of and compliance with the Guaranteed Obligations and the other obligations imposed upon Guarantor in this Guaranty (the
Guaranteed Obligations and such other obligations, collectively, the “Obligations;” each, an “Obligation”).

 

    	 	 	 

     

    

 

2.2
Guarantor also agrees to pay any and all reasonable costs and expenses (including, without limitation, reasonable attorneys’
fees) incurred by the Lender in enforcing any rights or remedies under this Guaranty. Any portion of the Guaranteed Obligations
required to be paid by a Guarantor to the Lender pursuant to the terms hereof shall bear interest at the Default Rate from the
date that Borrowers are subject to the Default Rate.

 

SECTION
3. GUARANTY ABSOLUTE.

 

3.1
The agreements of Guarantor set forth in this Guaranty constitute, and shall at all times continue to constitute, an absolute,
direct, present, primary, continuing, irrevocable, unlimited and unconditional guaranty of payment and performance (and not merely
of collection) in all respects and shall at all times be valid and enforceable irrespective of any other agreements or circumstances
of any nature whatsoever that might otherwise constitute a defense to this Guaranty and the obligations of Guarantor hereunder
or the obligations of any other Person or party (including, without limitation, Borrower and other guarantors of the Taxable Note)
relating to this Guaranty or the obligations of Guarantor hereunder or otherwise with respect to the Taxable Note. Guarantor guarantees
that the Obligations will be paid and performed strictly in accordance with the terms of the Loan Documents, regardless of any
law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Lender
with respect thereto. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of:

 

(a)
any amendment, modification or supplement to the Indenture, the Note or any other Loan Document;

 

(b)
any exercise or non-exercise of or delay in exercising any right, remedy, power or privilege under or in respect of this Guaranty,
the Indenture, the Note or any other Loan Document (even if any such right, remedy, power or privilege shall be lost thereby),
or any waiver, consent, indulgence or other action or inaction in respect thereof;

 

(c)
any bankruptcy, reorganization, insolvency, arrangement, composition, assignment for the benefit of creditors or similar proceeding
commenced by or against Borrower, Guarantor or any other guarantor or any discharge, limitation, modification or release of liability
of the Borrower, Guarantor or any other guarantor by virtue of such proceedings;

 

(d)
any failure to perfect or continue perfection of, or any release or waiver of, any rights given to Lender in the [Premises] as
security for the performance of any of the Guaranteed Obligations;

 

(e)
any extension of time for payment or performance of any of the Guaranteed Obligations;

 

(f)
the genuineness, validity or enforceability of the Loan Documents;

 

(g)
any limitation of liability of Borrower, or of any or all of the holders of ownership interests in Borrower, contained in any
Loan Document;

 

(h)
any defense that may arise by reason of the failure of Lender to file or enforce a claim against the estate of Borrower in any
bankruptcy or other proceeding;

 

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(i)
any voluntary or involuntary liquidation, dissolution, sale of all or substantially all of the property of, or any marshaling
of assets and liabilities or other similar proceeding affecting, Borrower, Guarantor or any other guarantor or any of their respective
assets;

 

(j)
the release of Borrower, Guarantor or any other guarantor, from performance or observance of any of the agreements, covenants,
terms or conditions contained in the Loan Documents by operation of law;

 

(k)
the failure of Lender to keep Guarantor advised of Borrower’s financial condition, regardless of the existence of any duty
to do so but not in any way implying any obligation contractual or otherwise to do so;

 

(l)
any sale or other transfer of the Leased Premises or any part thereof or any foreclosure by Lender on the Leased Premises or any
part thereof;

 

(m)
any counterclaim, recoupment, set-off, reduction or defense used in any claim Guarantor may assert or now or hereafter have against
the Lender, the Borrower or any other guarantor; or

 

(n)
any other circumstances which might otherwise constitute a legal or equitable discharge of a guarantor or surety.

 

3.2
No set-off, claim, reduction or diminution of any obligation, or any defense of any kind or nature which Borrower or Guarantor
now has or hereafter may have against Lender, shall be available hereunder to Guarantor against Lender. Guarantor acknowledges
that Lender may agree that it shall not in any foreclosure proceeding in respect of all or any portion of the Premises seek or
obtain a deficiency judgment against Borrower, and that the obligations of Guarantor shall in no way be diminished or otherwise
affected by the failure to seek or obtain a deficiency judgment.

 

3.3
Notwithstanding any termination of this Guaranty or the cancellation of the Note or any other document, instrument or agreement
evidencing the Obligations, if at any time any payment of any of the Obligations (from any source) is rescinded, repaid or must
otherwise be returned by the Lender (a) due to or upon the insolvency, bankruptcy or reorganization of Borrower, Guarantor or
any other guarantor of the Taxable Note, or (b) for any other circumstance, this Guaranty shall continue to be effective or be
reinstated, as the case may be, all as though such payment had not been made. Notwithstanding any modification, discharge or extension
of the Obligations or any amendment, modification, stay or cure of the Lender’s rights which may occur in any bankruptcy
or reorganization case or proceeding concerning Borrower, whether permanent or temporary, and whether assented to by the Lender,
Guarantor hereby agrees that it shall be obligated hereunder to pay and perform the Guaranteed Obligations and discharge his/her/its
other obligations in accordance with the terms of this Guaranty in effect on the date hereof. Guarantor understands and acknowledges
that by virtue of this Guaranty, he/she/it has specifically assumed any and all risks of a bankruptcy or reorganization case or
proceeding with respect to Borrower. As an example and not in any way of limitation, a subsequent modification of the Obligations
in any reorganization case concerning Borrower shall not affect the obligation of Guarantor to pay and perform the Guaranteed
Obligations in accordance with their original term.

 

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SECTION
4. WAIVER OF SUBROGATION AND CONTRIBUTION. Notwithstanding any payments made or obligations performed by Guarantor
by reason of this Guaranty (including but not limited to application of funds on account of such payments or obligations) until
such time as the Taxable Note has been paid in full and all applicable preference and fraudulent conveyance periods have expired,
Guarantor hereby irrevocably waives and releases any and all rights it may have at any time (whether arising directly or indirectly,
by operation of law, contract or otherwise) (a) to assert any claim against Borrower or any other person, or against any direct
or indirect security, on account of payments made or obligations performed under or pursuant to this Guaranty, including without
limitation any and all rights of subrogation, reimbursement, exoneration, contribution or indemnity, or (b) to require the marshaling
of any assets of Borrower, which right of marshaling might otherwise arise from payments made or obligations performed under or
pursuant to this Guaranty, and any and all rights that would result in such Guarantor being deemed a “creditor” under
the United States Bankruptcy Code of Borrower or any other person. Any agreement between Guarantor and Borrower which is in any
respect contrary to the foregoing shall be null and void and of no force or effect. If any amount shall be paid to Guarantor in
violation of the preceding sentences, such amount shall be deemed to have been paid to Guarantor for the benefit of, and held
in trust for the benefit of Lender, and shall forthwith be paid to Lender to be credited and applied upon the Obligations, whether
matured or unmatured, in accordance with the terms of the Loan Documents.

 

SECTION
5. GUARANTY INDEPENDENT; WAIVERS.

 

5.1
Guarantor agrees as follows:

 

(a)
the obligations hereunder are joint and several with and are independent of and in addition to the undertakings of the Borrower
pursuant to the Loan Documents, any evidence of indebtedness issued in connection therewith, any mortgage or security agreement
given to secure the same, any other guaranties given in connection with the Taxable Note, the Taxable Note and any other obligations
of Guarantor to the Lender;

 

(b)
a separate and direct action may be brought to enforce the provisions hereof whether Borrower or any other guarantor is a party
in any such action or not;

 

(c)
the Lender may at any time, or from time to time, in its sole discretion: (i) extend or change the time of payment and/or performance
and/or the manner, place or terms of payment and/or performance of all or any of the Obligations; (ii) exchange, release and/or
surrender all or any of the collateral security, or any part thereof, by whomsoever deposited, which is now or may hereafter be
held by the Lender in connection with all or any of the Obligations; (iii) sell and/or purchase all or any such collateral at
public or private sale in the manner permitted by law and after giving any notice which may be required, and after deducting all
reasonable costs and expenses of every kind for collection, sale or delivery, the net proceeds of any such sale may be applied
by the Lender upon all or any of the Obligations; (iv) settle or compromise with Borrower, and/or any other guarantor and/or any
other Person liable thereon, any and all of the Obligations, and/or subordinate the payment of same, or any part thereof, to the
payment of any other debts or claims, which may at any time be due or owing to the Lender and/or any other Person or corporation;
(v) waive, excuse, release, change, amend, modify or otherwise deal with in any manner satisfactory to the Lender any of the provisions
of any of the Loan Documents; (vi) release the Borrower or any other guarantor, (vii) waive, omit or delay the exercise of any
of its powers, rights and remedies against the Borrower, Guarantor or any other guarantor or any collateral and security for all
or any part of the Guaranteed Obligations; (viii) apply any payments of all or any of the Guaranteed Obligations received from
the Borrower or Guarantor, or any other party or source whatsoever, to the Guaranteed Obligations in such order and manner as
the Lender in its sole and absolute discretion may determine; or (ix) take or omit to take any other action, whether similar or
dissimilar to the foregoing which may or might in any manner or to any extent vary the risk of Guarantor or otherwise operate
as a legal or equitable discharge, release or defense of Guarantor under applicable laws; and

 

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(d)
the Lender shall be under no obligation to marshal any assets in favor of the Guarantor or in payment of any or all of the Obligations.

 

5.2
Guarantor hereby waives (a) diligence, presentment, demand, protest, notice of acceptance, notice of dishonor, notice of nonperformance
and any other notice (other than notices expressly required by the Loan Documents) with respect to any of the Obligations and
this Guaranty, and promptness in commencing suit against any party thereto or liable thereon, and/or in giving any notice to or
making any claim or demand hereunder upon Guarantor; (b) notice of the execution and delivery of any of the Loan Documents, (c)
notice of the creation of any of the Obligations, (d) any right to require the Lender to (i) proceed against Borrower and/or any
other guarantor and/or any other Person liable with respect to the Obligations, (ii) proceed against or exhaust any security held
from Borrower or any other guarantor, or (iii) pursue any remedy in the Lender’s power whatsoever; (e) any defense arising
by reason of any disability or other defense of Borrower or by reason of the cessation from any cause whatsoever of the liability
of Borrower other than full payment of the Obligations; (f) any defense it may acquire by reason of the Lender’s election
of any remedy against it or Borrower and/or any other guarantor and/or any other Person liable with respect to the Obligations;
(g) to the fullest extent permitted by law, all rights and benefits under any statute or other provisions of law purporting to
reduce a guarantor’s obligations in proportion to the principal obligation; (h) to the fullest extent permitted by law,
all rights and benefits under any statute or other provisions of law purporting to limit the amount of any deficiency judgment
which might be recoverable; (i) any right or claim to cause a marshaling of the assets of the Borrower or Guarantor, and (j) any
defense at law or in equity on the adequacy or value of the consideration for this Guaranty.

 

SECTION
6. SUBORDINATION OF INDEBTEDNESS. Guarantor agrees that all indebtedness of Borrower to Guarantor, whether now existing
or hereafter created, direct or indirect, contingent, joint, several, independent, due or to become due, or held or to be held
by Guarantor, whether created directly or acquired by assignment or otherwise (the “Subordinated Indebtedness”),
be and hereby is expressly subordinated and junior in right of payment to all of the Guaranteed Obligations. Provided no Event
of Default (as such term is defined in Section 9.1 of this Guaranty) exists, Guarantor may collect payments of Subordinated Indebtedness,
however, Guarantor shall take no action to enforce payment of any Subordinated Indebtedness by Borrower until the amount owed
by the Borrower under the Indenture is repaid in full.

 

SECTION
7. REPRESENTATION AND WARRANTIES.

 

Guarantor
hereby represents and warrants to Lender that:

 

7.1
Guarantor has a financial interest in Borrower, and Guarantor will receive a material benefit and advantage from the issuance
of the Taxable Note.

 

7.2
If not a natural Person, Guarantor is duly organized, validly existing and in good standing under the laws of the state of its
formation or existence, and is in compliance with legal requirements applicable to doing business in the State.

 

7.3
The execution, delivery and performance by Guarantor of the Loan Documents: (a) are duly authorized and do not require the consent
or approval of any other party or governmental authority which has not been obtained; and (b) will not violate any law or result
in the imposition of any Lien upon Guarantor’s assets. This Guaranty constitutes the legal, valid and binding obligations
of Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, or similar laws generally
affecting the enforcement of creditors’ rights.

 

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7.4
(a) The financial statements delivered by Guarantor are true and correct with no significant change since the date of preparation.
Except as disclosed in such financial statements, there are no liabilities (fixed or contingent) affecting Guarantor. Except as
disclosed in such financial statements, there is no litigation, administrative proceeding, investigation or other legal action
(including any proceeding under any state or federal bankruptcy or insolvency law) pending or, to the knowledge of Guarantor,
threatened, against Guarantor, Borrower, the Land, the Leased Premises, or any other party to the Loan Documents or any other
guarantor of the Taxable Note which if adversely determined could have a material adverse effect on such Person or any part the
Loan Documents.

 

(b)
Guarantor is not contemplating either the filing of a petition by it/him/her under state or federal bankruptcy or insolvency laws
or the liquidation of all or a major portion of its/his/her assets or property, and Guarantor has knowledge of any Person contemplating
the filing of any such petition against it/him/her.

 

7.5
Guarantor is not a party to any agreement or instrument or subject to any court order, injunction, permit, or restriction which
might adversely affect Guarantor. Guarantor is not in violation of any agreement which violation would have an adverse effect
on Guarantor or on Guarantor’s business, properties, or assets, operations or condition, financial or otherwise.

 

7.6
Guarantor has all requisite licenses, permits, franchises, qualifications, certificates of occupancy or other governmental authorizations
to own, lease and operate its assets and carry on its business.

 

7.7
Guarantor has filed (or have obtained effective extensions for filing) all federal, state and local tax returns required to be
filed and have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments
payable by Guarantor.

 

7.8
Giving effect to this Guaranty and the Indenture, the fair saleable value of Guarantor’s assets exceeds and will, immediately
following the purchase of the Taxable Note, exceed Guarantor’s total liabilities, including, without limitation, subordinated,
unliquidated, disputed and contingent liabilities. The fair saleable value of Guarantor’s assets is and will, immediately
following the purchase of the Taxable Note, be greater than Guarantor’s probable liabilities, including the maximum amount
of its contingent liabilities on its Debts as such Debts become absolute and matured, Guarantor’s assets do not and, immediately
following the execution and delivery of this Guaranty and the purchase of the Taxable Note will not, constitute unreasonably small
capital to carry out its/his business as conducted or as proposed to be conducted. Guarantor does not intend to, and does not
believe that it will, incur Debts and liabilities (including contingent liabilities and other commitments) beyond its ability
to pay such Debts as they mature (taking into account the timing and amounts of cash to be received by Guarantor and the amounts
to be payable on or in respect of obligations of Guarantor).

 

7.9
The financial statements of Guarantor delivered to purchasers prior to the issuance of the Taxable Note are true and correct,
have been prepared in accordance with GAAP and fairly present the financial condition of Guarantor as of the respective dates
of such statements. This Guaranty and all financial statements, budgets, schedules, opinions, certificates, confirmations, statements,
applications, affidavits, reports, agreements and other materials submitted to the purchasers of the Taxable Note in connection
with or in furtherance of this Guaranty by or on behalf of Guarantor fully and fairly state the matters with which they purport
to deal, and neither misstate any material fact nor, separately or in the aggregate, fail to state any material fact necessary
to make the statements made not misleading.

 

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7.10
Guarantor has derived or expects to derive a substantial financial benefit from the purchase of the Taxable Note, and from each
and every renewal, extension, further advance or other extension of credit, or release of collateral or other relinquishment of
legal rights made or granted or to be made or granted by Lender to Borrower in connection with the Taxable Note (any such action
to be in Lender’s sole and absolute discretion), and such financial benefit is reasonably worth at least as much as the
liability of Guarantor hereunder.

 

7.11
Guarantor has read and is fully familiar with all of the provisions of the Note, the Taxable Note, the Indenture and the other
Loan Documents.

 

7.12
Guarantor is fully familiar with the financial condition of each Borrower and with the value of the collateral for the Taxable
Note; notwithstanding the foregoing, in executing and delivering this Guaranty, Guarantor is not relying upon such financial condition
or value or upon any representation, statement or information with respect thereto furnished to Guarantor by Borrower, any other
guarantor of the Taxable Note or any other person or entity.

 

SECTION
8. AFFIRMING COVENANTS. Guarantor covenants and agrees that, so long as any part of the Guaranteed Obligations shall
remain unpaid, Guarantor will, unless the Lender shall otherwise consent in writing:

 

8.1
Promptly upon becoming aware thereof, Guarantor shall give Lender notice of the commencement, existence or threat of any proceeding
by or before any governmental authority having jurisdiction over the [Premises] (whether federal, state, local or municipal) against
or affecting Guarantor.

 

8.2
During normal business hours Guarantor shall permit such persons as Lender may designate to examine Guarantor’s books and
records and take copies and extracts therefrom and to discuss the affairs of Guarantor with its officers, employees and independent
accountants at such times and as often as Lender may reasonably request provided Lender gives reasonable notice thereof. Guarantor
hereby authorizes such officers, employees and independent accountants to discuss with Lender the affairs of Guarantor.

 

8.3
Guarantor shall make available to Lender within 120 days after the last day of each fiscal year of Guarantor, or upon request
by Lender if an Event of Default under the Loan Documents has occurred (but in no event more than once per fiscal quarter of Guarantor),
unaudited financial statements of Guarantor in form and content satisfactory to Lender.

 

8.4
If Guarantor is a corporation, partnership or other entity, Guarantor shall not (i) dissolve, merge or consolidate with any other
entity (unless Guarantor is the surviving entity) or (ii) sell, transfer or otherwise dispose of all or a substantial part of
its assets except with Lender’s prior written consent or in a bona fide, arm’s length transaction and for a fair and
reasonable consideration.

 

8.5
File all federal, state, provincial, county, municipal and other income tax returns (and extensions) required to be filed by him/her/it
and pay before the same become delinquent all taxes that become due pursuant to such returns or pursuant to any assessments received
by him/her/it.

 

8.6
Promptly and faithfully comply with all laws, ordinances, rules, regulations and requirements, both present and future, of every
duly constituted governmental authority or agency having jurisdiction that may be applicable to him/her/it.

 

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SECTION
9. DEFAULTS AND REMEDIES

 

9.1.
Event of Default. The occurrence of any one or more of the following events shall constitute an Event of Default under
the provisions of this Guaranty, and the term “Event of Default” as used in this Guaranty shall mean
the occurrence of any one or more of the following events: (a) the failure of Guarantor to promptly pay or perform all or any
part of the Guaranteed Obligations as and when due hereunder, (b) any representation or warranty made herein or any financial
statement or other information furnished by Guarantor pursuant hereto shall prove to have been false or misleading in any material
respect on the date as of which the same was made or furnished, (c) the failure of Guarantor to observe, perform and comply with
any of the covenants set forth in Section 8 of this Guaranty, and such failure shall continue uncured for a period of thirty (30)
days from the date of notice thereof from the Lender to Guarantor, or (d) the commencement or filing of any proceedings by or
against Guarantor or any of Guarantor’s assets or properties under the provisions of any bankruptcy, reorganization, arrangement,
insolvency, receivership, liquidation or similar law for the relief of debtors, and, except with respect to any such proceedings
instituted by Guarantor, are not discharged within sixty (60) days of their commencement.

 

9.2.
Rights and Remedies. Upon the occurrence of an Event of Default under the provisions of this Guaranty, an amount equal
to the total of the Guaranteed Obligations then outstanding (whether matured or unmatured and regardless of whether any portion
of such Guaranteed Obligations are then due and payable by the Borrower) shall immediately and automatically be due and payable
by Guarantor to Lender without further action by, or notice of any kind from, Lender unless expressly provided for herein, and
the Lender may at any time and from time to time thereafter exercise any powers, rights and remedies available to the Lender under
the provisions of this Guaranty, the Loan Documents and applicable laws to enforce and collect the obligations and liabilities
of Guarantor hereunder, all such powers, rights and remedies being cumulative and enforceable alternatively, successively or concurrently.
Guarantor shall pay to Lender on demand the amount of any and all costs and expenses, including, without limitation, court costs
and reasonable attorney’s fees and expenses, actually paid or incurred by or on behalf of the Lender in exercising any such
powers, rights and remedies, together with interest thereon from the date due until paid in full at the Default Rate. Each and
every Event of Default hereunder shall give rise to a separate cause of action hereunder, and separate actions may be brought
hereunder as each cause of action arises. No failure or delay by the Lender in one or more instances to require strict performance
by Guarantor of any of the provisions hereof or to exercise any powers, rights or remedies available to it under the provisions
of this Guaranty, the Loan Documents or applicable laws shall operate as a waiver thereof or preclude Lender at any later time
or times from demanding strict performance thereof or exercising any such powers, rights or remedies. No conduct, custom or course
of dealing shall be effective to waive, amend, modify or release this Guaranty. No modification or waiver of any of the provisions
of this Guaranty shall be effective unless it is in writing and signed by the Lender, and any such waiver shall be effective only
in the specific instance and for the specific purpose for which it is given.

 

9.3
Effect Of Bankruptcy Proceedings. This Guaranty shall continue to be effective, or be automatically reinstated, as the
case may be, if at any time payment, in whole or in part, of any of the Guaranteed Obligations is rescinded or must otherwise
be restored or returned by Lender as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar
law, all as though such payment had not been made. If an Event of Default at any time shall have occurred and be continuing or
exist and declaration of default or acceleration under or with respect to any of the Loan Documents shall at such time be prevented
by reason of the pendency against Borrower of a case or proceeding under any bankruptcy or insolvency law, Guarantor agrees that,
for purposes of this Guaranty and Guarantor’s obligations hereunder, such Loan Documents shall be deemed to have been declared
in default or accelerated with the same effect as if such Loan Documents had been declared in default and accelerated in accordance
with the terms thereof, and Guarantor shall forthwith pay the Guaranteed Obligations in full without further notice or demand.

 

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SECTION
10. MISCELLANEOUS

 

10.1
Further Assurances. From time to time upon the request of Lender, Guarantor shall promptly and duly execute, acknowledge
and deliver any and all such further instruments and documents as Lender may reasonably deem necessary or desirable to confirm
this Guaranty, to carry out the purpose and intent hereof or to enable Lender to enforce any of its rights hereunder.

 

10.2
Amendments, Waivers, Etc. No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantor
therefrom shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand
on Guarantor shall in any case entitle it to any other or further notice or demand in similar or other circumstances.

 

10.3
Entire Agreement. This Guaranty is intended as a final expression of this agreement of guaranty and is intended also as
a complete and exclusive statement of the terms of this agreement. No course of prior dealings between Guarantor and Lender, no
usage of the trade, and no parole or extrinsic evidence of any nature, shall be used or be relevant to supplement, explain, contradict
or modify the terms and/or provisions of this Guaranty.

 

10.4
No Implied Waiver; Cumulative Remedies. No course of dealing and no delay or failure of Lender in exercising any right,
power or privilege under this Guaranty or any other Loan Document shall affect any other or future exercise thereof or exercise
of any other right, power or privilege; nor shall any single or partial exercise of any such right, power or privilege or any
abandonment or discontinuance of steps to enforce such a right, power or privilege preclude any further exercise thereof or of
any other right, power or privilege. The rights and remedies of Lender under this Guaranty are cumulative and not exclusive of
any rights or remedies which Lender would otherwise have under the other Loan Documents, at law or in equity.

 

10.5
Notices.

 

(a)
All notices, demands, requests, and other communications desired or required to be given hereunder (“Notices”),
shall be in writing and shall be given by: (i) hand delivery to the address for Notices; (ii) delivery by overnight courier service
to the address for Notices; or (iii) sending the same by United States mail, postage prepaid, certified mail, return receipt requested,
addressed to the address for Notices.

 

(b)
All Notices shall be deemed given and effective upon the earlier to occur of: (i) the hand delivery of such Notice to the address
for Notices; (ii) one business day after the deposit of such Notice with an overnight courier service by the time deadline for
next day delivery addressed to the address for Notices; or (iii) three business days after depositing the Notice in the United
States mail as set forth in (a)(iii) above. All Notices shall be addressed to the following addresses:

 	 	Guarantor:		 
	 	 		 
	 	 		 
	 	 		 
	 	 	 	 
	 	With
    a copy to:		 
	 	 		 
	 	 		 
	 	 		 

 

    	 	9	 

     

    

 

	 	Lender:		 
	 	 		 
	 	 		 
	 	 		 
	 	 	 	 
	 	and		 
	 	 		 
	 	 		 
	 	 		 
	 	 	 	 
	 	With
    a copy to:		 
	 	 		 
	 	 		 
	 	 		 

 

or
to such other persons or at such other place as any party hereto may by Notice designate as a place for service of Notice. Provided,
that the “copy to” Notice to be given as set forth above is a courtesy copy only; and a Notice given to such person
is not sufficient to effect giving a Notice to the principal party, nor does a failure to give such a courtesy copy of a Notice
constitute a failure to give Notice to the principal party.

 

10.6
Right to Set-Off. The Lender is hereby authorized at any time and from time to time, without notice to Guarantor (any such
notice being expressly waived by Guarantor), to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by the Lender to or for the credit or the account of Guarantor
against any and all of the Guaranteed Obligations. The Lender agrees promptly to notify Guarantor after such set-off and application,
provided that the failure to give such notice shall not affect the validity of such setoff and application. The rights of the
Lender under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off)
which the Lender may have.

 

10.7
No Duty. Guarantor assumes the responsibility for keeping informed of the financial condition of the Borrower and of all
other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and agrees that the Lender shall have no
duty to advise Guarantor of any information known to the Lender regarding any such financial condition or circumstances.

 

10.8
Expenses. Guarantor agrees to pay or cause to be paid and to save Lender harmless against liability for the payment of
all out-of-pocket expenses, including reasonable fees and expenses of counsel for Lender, actually incurred by Lender from time
to time arising in connection with Lender’s enforcement or preservation of rights under this Guaranty, including but not
limited to such expenses as may be incurred by Lender in connection with any default by Guarantor of any of Guarantor’s
obligations hereunder.

 

10.9
Continuing Agreement. This Guaranty shall be a continuing one and shall be binding upon Guarantor regardless of how long
before or after the date hereof any of the Guaranteed Obligations were or are incurred, and all representations, warranties, covenants,
undertakings, obligations, consents, waivers and agreements of Guarantor herein shall survive the date of this Guaranty and shall
continue in full force and effect until all Guaranteed Obligations have been indefeasibly paid in full and no commitments therefor
are outstanding.

 

    	 	10	 

     

    

 

10.10
Jurisdiction. Each Guarantor after consultation with counsel irrevocably (a) agrees that Lender may bring suit, action
or other legal proceedings arising out of this Guaranty in the courts of the County in which the Premises are located, or the
United States District Court in the federal judicial district in which the Leased Premises are located; (b) consents to the jurisdiction
of each such court in any such suit, action or proceeding; (c) consents to service of process in any such suit, action, or proceeding
by the mailing of copies of such process to Guarantor by certified or regular mail at the notice address provided herein; (d)
waives any objection which Guarantor may have to the laying of the venue of any such suit, action or proceeding in any of such
courts; and (e) waives any right Guarantor may have to a jury trial in connection with any such suit, action or proceeding.

 

10.11
Severability. If any term or provision of this Guaranty or the application thereof to any person or circumstance shall
to any extent be invalid or unenforceable, the remainder of this Guaranty, or the application of such term or provision to persons
or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Guaranty shall be valid and enforceable to the full extent permitted by law.

 

10.12
Section Headings. Section headings in this Guaranty are included for convenience of reference only and do not constitute
a part of this Guaranty for any other purpose.

 

10.13
Counterparts. This Guaranty may be executed in any number of counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.

 

10.14
Governing Law. This Guaranty shall be governed by, and construed in accordance with, the laws (excluding conflicts of laws
rules) of the State of Rhode Island without regard to principles of conflicts of law.

 

10.15
Joint and Several. The obligations and liabilities of Guarantor under this Agreement shall be joint and several with that
of Borrowers and/or any other guarantor of the Obligations and/or any other Person liable with respect to the Obligations or any
portion thereof.

 

10.16
Separate Property. Any married Person who signs this instrument hereby expressly agrees that recourse may be had against
his or her separate property for all of his or her obligations under this Guaranty.

 

10.17
Successors and Assigns. This Guaranty shall bind Guarantor and Guarantor’s heirs, executors, successors and assigns,
and shall inure to the benefit of Lender and its successors and assigns.

 

10.18
Time is of the Essence. Time is of the essence in connection with all obligations of Guarantor hereunder.

 

10.19
Assignment. The Lender may, without notice or consent to Guarantor, assign or transfer all or any part of the Guaranteed
Obligations and this Guaranty will inure to the benefit of Lender’s assignee or transferee; provided that the Lender shall
continue to have the unimpaired right to enforce this Guaranty as to that part of the Guaranteed Obligations the Lender has not
assigned or transferred. In connection with any such assignment, transfer, or the grant of any participation in all or a part
of the Guaranteed Obligations, the Lender may divulge to any potential or actual assignee, transferee or participant all reports,
financial or other information and documents furnished or executed in connection with this Guaranty.

 

    	 	11	 

     

    

 

10.20
WAIVER OF JURY TRIAL. GUARANTOR, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY,
AND INTENTIONALLY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED ON OR ARISING OUT OF THIS AGREEMENT
OR INSTRUMENT, OR ANY RELATED INSTRUMENT OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY COURSE OF CONDUCT,
DEALING, STATEMENTS, WHETHER ORAL OR WRITTEN, OR ACTION OF ANY PARTY HERETO. GUARANTOR SHALL NOT SEEK TO CONSOLIDATE BY COUNTERCLAIM
OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS
NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY ANY PARTY HERETO
EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY ALL PARTIES.

 

10.21
Acknowledgment. The undersigned further acknowledge having received advice from legal counsel to the undersigned as to
the nature and extent of all waivers set forth in this Guaranty.

 

10.22
Gender; Number; Terms. Words and phrases herein shall be construed as in the singular or plural number and as masculine,
feminine or neuter gender, according to the context. The use of the words “herein,” “hereof,” “hereunder”
and other similar compounds of the word “here” shall refer to this entire Guaranty and not to any particular section,
paragraph or provision.

 

10.23.
Lender as Trustee. In the event any provision of this Guaranty requires the approval, consent, or action by the Lender, the Lender
must undertake to grant or deny such approval or consent, or perform such action, only subject to and as directed by the terms
of the Indenture, and may, in the Lender’s sole discretion, require direction of the beneficial owners of a majority of
the outstanding principal amount of the Taxable Note prior to undertaking any such approval, consent, or action.

 

[SIGNATURE
APPEARS ON FOLLOWING PAGE]

 

    	 	12	 

     

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first above written.

 

	 	GRANTOR:
	 	 
	 	SUN
    PACIFIC HOLDING CORP.
	 	 	 
	 	By:	/s/
    Nicholas Campanella
	 	Name: 
    	Nicholas
    Campanella
	 	Title:
    	CEO
	 	 	 
	 	LENDER:
	 	 
	 	UMB
    BANK, N.A.
	 	 	 
	 	By:	/s/
    Julius Zamora
	 	Name:
    	Julius
    Zamora
	 	Title:
	Vice
    President

 

[SIGNATURE
PAGE OF SUN PACIFIC GUARANTEE AGREEMENT]

 

    	 	13Exhibit

Exhibit 4.1

THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.
EVOFEM BIOSCIENCES, INC.
FORM OF WARRANT TO PURCHASE COMMON STOCK
Number of Shares: [                ]
(subject to adjustment)
 
	
			
	Warrant No.         
	  
	Original Issue Date: [        ], 2019

Evofem Biosciences, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [        ] or its registered assigns (the “Holder”), is entitled, subject to the terms set forth below and commencing on the earlier of (i) a date that is six (6) months following the Original Issue Date or (ii) following the date that the issuance of this Warrant (as defined below) and/or the issuance of the Warrant Shares upon exercise of this Warrant) is approved by the stockholders of the Company, to purchase from the Company up to a total of [        ] shares of common stock, $0.0001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price per share equal to $[___] per share (as adjusted from time to time as provided in Section 9 herein, the “Exercise Price”)1, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”) at any time and from time to time on or after the date hereof (the “Original Issue Date”) until the Termination Date, subject to the following terms and conditions:
1. Definitions. For purposes of this Warrant, the following terms shall have the following meanings:
(a) “Affiliate” means any Person directly or indirectly controlled by, controlling or under common control with, a Holder, but only for so long as such control shall continue. For purposes of this definition, “control” (including, with correlative meanings, “controlled by”, “controlling” and “under common control with”) means, with respect to a Person, possession, direct or indirect, of (a) the power to direct or cause direction of the management and policies of such Person (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise), or (b) at least 50% of the voting securities (whether directly or pursuant to any option, warrant or other similar arrangement) or other comparable equity interests.
(b) “Commission” means the United States Securities and Exchange Commission.
(c) “Closing Sale Price” means, for any security as of any date, the last trade price for such security on the Principal Trading Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal Trading Market begins to operate on an extended hours basis and does not designate the last trade price, then the last trade price of such security prior to 4:00 P.M., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Board of Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.
(d) “Principal Trading Market” means the national securities exchange or other trading market on which the Common Stock is primarily listed on and quoted for trading, which, as of the Original Issue Date, shall be the Nasdaq Capital Market.
(e) “Securities Act” means the Securities Act of 1933, as amended.
(f) “Trading Day” means any weekday on which the Principal Trading Market is open for trading.
(g) “Transfer Agent” means Philadelphia Stock Transfer, Inc., the Company’s transfer agent and registrar for the Common Stock, and any successor appointed in such capacity.
	
					
	 1 Exercise Price to be equal to 160% multiplied by the closing price as reported by the Principal Trading Market on the Original Issue Date. 

1

2. Issuance of Securities. The Warrant, as initially issued by the Company, is offered and sold pursuant to the Letter Agreement, dated [___], 2019, by and between the Company and Holder. The Company shall register ownership of this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder or, as the case may be, any assignee to which this Warrant is assigned hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.
3. Registration of Transfers. Subject to compliance with all applicable securities laws, the Company shall, or will cause its Transfer Agent to, register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, and payment for all applicable transfer taxes (if any). Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company shall, or will cause its Transfer Agent to, prepare, issue and deliver at the Company’s own expense any New Warrant under this Section 3. Until due presentment for registration of transfer, the Company may treat the registered Holder hereof as the owner and holder for all purposes, and the Company shall not be affected by any notice to the contrary.
4. Exercise and Duration of Warrants.
(a) All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by this Warrant at any time and from time to time until the date that is seven (7) years after the Original Issue Date (the “Termination Date”).
(b) The Holder may exercise this Warrant by delivering (as determined in accordance with the notice provisions hereof) to the Company an exercise notice, in the form attached as Schedule 1 hereto (the “Exercise Notice”), completed and duly signed.  Within one (1) Trading Day following the date of delivery of the Exercise Notice, the Holder shall make payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless exercise” if so indicated in the Exercise Notice pursuant to Section 10 below).  The date on which the Notice of Exercise is delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date,” provided, that if the Exercise Price is not delivered on or before one (1) Trading Day following the date of delivery of the Exercise Notice, the Exercise Date shall be deemed to be one (1) Trading Day following the date of that the Exercise Price is delivered to the Company. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.  The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares, if any.
5. Delivery of Warrant Shares.
(a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than two (2) Trading Days after the Exercise Date), upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with The Depository Trust Company (“DTC”) through its Deposit / Withdrawal At Custodian system, or if the Transfer Agent is not participating in the Fast Automated Securities Transfer Program (the “FAST Program”) or if the certificates are required to bear a legend regarding restriction on transferability, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. The Holder, or any natural person or legal entity (each, a “Person”) so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the time of delivery of the Exercise Notice on the Exercise Date, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be.  While this Warrant remains outstanding, the Company shall maintain a transfer agent that participates in the FAST Program.
(b) If by the close of the second (2nd) Trading Day after the Exercise Date, the Company fails to deliver to the Holder a certificate representing the required number of Warrant Shares in the manner required pursuant to Section 5(a) or, provided such Warrant Shares are not required to bear a restrictive legend, fails to credit the Holder’s balance account with DTC for such number of Warrant Shares to which the Holder is entitled, and if after such second (2nd) Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall, within two (2) Trading Days after the Holder’s request and in the Holder’s sole discretion, either (1) pay in cash to the Holder an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased, at which point the Company’s obligation to deliver such certificate (and to issue such Warrant 

2

Shares) shall terminate or (2) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount equal to the excess (if any) of Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased in the Buy-In over the product of (A) the number of shares of Common Stock purchased in the Buy-In, times (B) the Closing Sale Price of a share of Common Stock on the Exercise Date.
(c) To the extent permitted by law and subject to Section 5(b), the Company’s obligations to issue and deliver Warrant Shares in accordance with and subject to the terms hereof (including the limitations set forth in Section 11 below) are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Subject to Section 5(b), nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.
6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.  The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.
7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and, in each case, a customary and reasonable indemnity (but not the posting of any surety or other bond), if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures.  If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.
8. Reservation of Warrant Shares. The Company covenants that it will, at all times while this Warrant is outstanding, reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares that are initially issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and non-assessable. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock may be listed. The Company further covenants that it will not, without the prior written consent of the Holder, take any actions to increase the par value of the Common Stock at any time while this Warrant is outstanding.
9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9.
(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock issued and outstanding on the Original Issue Date and in accordance with the terms of such stock on the Original Issue Date, that is payable in shares of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger number of shares of Common Stock, (iii) combines its outstanding shares of Common Stock into a smaller number of shares of Common Stock or (iv) issues by reclassification of shares of capital stock any additional shares of Common Stock of the Company, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, provided, however, that if such record date shall have been fixed 

3

and such dividend is not fully paid on the date fixed therefor, the Exercise Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Exercise Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends. Any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.
(b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to all holders of Common Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph) or (iii) rights or warrants to subscribe for or purchase any security, or (iv) cash or any other asset (in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders entitled to receive such distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of such number of Warrant Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date without regard to any limitation on exercise contained therein.  
(c) Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects any merger or consolidation of the Company with or into another Person, in which the Company is not the surviving entity and in which the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the voting power of the surviving entity immediately after such merger or consolidation, (ii) the Company effects any sale to another Person of all or substantially all of its assets in one transaction or a series of related transactions, (iii) pursuant to any tender offer or exchange offer (whether by the Company or another Person), holders of capital stock tender shares representing more than 50% of the voting power of the capital stock of the Company and the Company or such other Person, as applicable, accepts such tender for payment, (iv) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the voting power of the capital stock of the Company (except for any such transaction in which the stockholders of the Company immediately prior to such transaction maintain, in substantially the same proportions, the voting power of such Person immediately after the transaction) or (v) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental Transaction”), then following such Fundamental Transaction the Holder shall have the right to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard to any limitations on exercise contained herein (the “Alternate Consideration”). The Company shall not effect any Fundamental Transaction in which the Company is not the surviving entity or the Alternate Consideration includes securities of another Person unless (i) the Alternate Consideration is solely cash and the Company provides for the simultaneous “cashless exercise” of this Warrant pursuant to Section 10 below or (ii) prior to or simultaneously with the consummation thereof, any successor to the Company, surviving entity or other Person (including any purchaser of assets of the Company) shall assume the obligation to deliver to the Holder such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant. The provisions of this paragraph (c) shall similarly apply to subsequent transactions analogous of a Fundamental Transaction type.
(d) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.
(e) Calculations. All calculations under this Section 9 shall be made to the nearest one-tenth of one cent or the nearest share, as applicable.
(f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will, at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent.
(g) Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, except if such notice and the contents thereof shall be deemed to constitute material non-public information, the Company shall deliver to the Holder a notice of such transaction at least 

4

ten (10) days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice. In addition, if while this Warrant is outstanding, the Company authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction contemplated by Section 9(c), other than a Fundamental Transaction under clause (iii) of Section 9(c), the Company shall deliver to the Holder a notice of such Fundamental Transaction at least thirty (30) days prior to the date such Fundamental Transaction is consummated. Holder agrees to maintain any information disclosed pursuant to this Section 9(g) in confidence until such information is publicly available, and shall comply with applicable law with respect to trading in the Company’s securities following receipt any such information.
10. Payment of Exercise Price. This Warrant shall be exercised for cash; provided, however, that if at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for, the issuance of the Warrant Shares, then the Holder may, in its sole discretion, satisfy its obligation to pay the Exercise Price through a “cashless exercise”, in which event the Company shall issue to the Holder the number of Warrant Shares in an exchange of securities effected pursuant to Section 3(a)(9) of the Securities Act, as determined as follows:
X = Y [(A-B)/A]
where:
“X” equals the number of Warrant Shares to be issued to the Holder;
“Y” equals the total number of Warrant Shares with respect to which this Warrant is then being exercised;
“A” equals (i) the last Closing Sale Price of the shares of Common Stock (as reported by Bloomberg Financial Markets) on the Trading Day immediately preceding the Exercise Date if the Exercise Notice is delivered prior to market close on the Exercise Date, or (ii) the last Closing Sale Price of the shares of Common Stock (as reported by Bloomberg Financial Markets) on the Exercise Date if the Exercise Notice is delivered following market close on the Exercise Date; and
“B” equals the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.
For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a “cashless exercise” transaction shall be deemed to have been acquired by the Holder, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued (provided that the Commission continues to take the position that such treatment is proper at the time of such exercise). Except as set forth in Section 5(b) (Buy-In remedy) and Section 12 (payment of cash in lieu of fractional shares), under such circumstances in no event will the exercise of this Warrant be settled in cash.
11. Limitations on Exercise.
(a) Notwithstanding anything to the contrary contained herein, the Company shall not effect any exercise of this Warrant, and the Holder shall not be entitled to exercise this Warrant for a number of Warrant Shares in excess of that number of Warrant Shares which, upon giving effect or immediately prior to such exercise, would cause (i) the aggregate number of shares of Common Stock beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, to exceed 4.99% (the “Maximum Percentage”) of the total number of issued and outstanding shares of Common Stock of the Company following such exercise, or (ii) the combined voting power of the securities of the Company beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act to exceed 4.99% of the combined voting power of all of the securities of the Company then outstanding following such exercise. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, filed with the Commission prior to the date hereof, (y) a more recent public announcement by the Company or (z) any other notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written request of the Holder, the Company shall within three (3) Trading Days confirm in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage specified in such notice; provided that any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. For purposes of this Section 11(a), the aggregate number of shares of Common Stock or voting securities beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act shall include the shares of Common Stock issuable upon the 

5

exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (x) exercise of the remaining unexercised and non-cancelled portion of this Warrant by the Holder and (y) exercise or conversion of the unexercised, non-converted or non-cancelled portion of any other securities of the Company that do not have voting power (including without limitation any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including without limitation any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock), is subject to a limitation on conversion or exercise analogous to the limitation contained herein and is beneficially owned by the Holder or any of its Affiliates and other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act.
(b) This Section 11 shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9(c) of this Warrant.

12. No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the Closing Sale Price) for any such fractional shares.
13. Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in the books and records of the Transfer Agent prior to 5:30 P.M., New York City time, on a Trading Day so long as the sender of an e-mail has not received an automated notice of delivery failure from the proposed recipient's computer server, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in the books and records of the Transfer Agent on a day that is not a Trading Day or later than 5:30 P.M., New York City time, on any Trading Day so long as the sender of an e-mail has not received an automated notice of delivery failure from the proposed recipient's computer server, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service specifying next business day delivery, or (iv) upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
14. Warrant Agent. The Company shall initially serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.  Notwithstanding anything to the contrary contained herein or in any warrant agency agreement that the Company be enter into in the future, the Holder shall be entitled to elect to receive, or continue to hold, this Warrant in certificated form, in which case the terms set forth in any such warrant agency agreement shall not apply to this Warrant.
15. Miscellaneous.
(a) No Rights as a Stockholder. The Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.
(b) Authorized Shares. (i) Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate or articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant 

6

against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.
(ii) Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
(c) Successors and Assigns. Subject to compliance with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of the Holder, except to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the Company and the Holder and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder, or their successors and assigns.
(d) Amendment and Waiver. Except as otherwise provided herein, the provisions of the Warrants may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder.
(e) Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.
(f) Governing Law; Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PERSON AT THE ADDRESS IN EFFECT FOR NOTICES TO IT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.
(g) Headings. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.
(h) Severability. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the Company and the Holder will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.
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IN WITNESS WHEREOF, the undersigned has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above. 

                                                                                                  	
		
	COMPANY: EVOFEM BIOSCIENCES, INC.

	By:
	 

	Name: 
	Justin J. File

	Title:
	Chief Financial Officer

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SCHEDULE 1
FORM OF EXERCISE NOTICE
[To be executed by the Holder to purchase shares of Common Stock under the Warrant]
Ladies and Gentlemen:
(1) The undersigned is the Holder of Warrant No.          (the “Warrant”) issued by Evofem Biosciences, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.
(2) The undersigned hereby exercises its right to purchase Warrant Shares pursuant to the Warrant.
(3) The Holder intends that payment of the Exercise Price shall be made as (check one):
 
	
			
	 
	☐
	Cash Exercise

 
	
			
	 
	☐
	“Cashless Exercise” under Section 10 of the Warrant

(4) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $ in immediately available funds to the Company in accordance with the terms of the Warrant.
(5) Pursuant to this Exercise Notice, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant.
(6) By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under Section 11(a) of the Warrant to which this notice relates.

 	
			
	Dated:
	 
	 

	 
	 

	Name of Holder:  
	 
	 

	 
	 

	By:
	 
	 

	Name:
	 
	 

	Title:
	 
	 

(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

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