Document:

EXHIBIT A

PROMISSORY NOTE

 

$3,000,000.00New York, New York 

September 25, 2017

FOR VALUE RECEIVED, GME Innotainment, Inc., a Florida Corporation (the "Maker") hereby promise to pay to the order of PureSafe Water Systems, Inc. (the "Holder"), a Delaware Corporation, the principal sum of Three Million Dollars ($3,000,000.00). 

1.Interest. Subject to any imposition of a default rate of interest under Section 4 hereof, the principal balance outstanding under this Note shall bear simple interest at the rate of five percent (5.0%) per annum. 

2.Maturity. The entire indebtedness evidenced by this Note, including the entire principal balance outstanding hereunder, any and all unpaid interest accrued thereon and any and all other amounts due and owing hereunder, shall be due and payable in full September 30, 2022 (the "Maturity Date"). 

3.Payment. All payments made hereunder shall be made in lawful money of the United States of America without setoff, deduction or counterclaim by Maker of any kind whatsoever. 

4.Default Interest. In the event of a "Default" (as defined in Section 6 hereof) under this Note, the principal balance outstanding under this Note, from time to time, shall bear interest at the rate of ten percent (10%) per annum, until such Default and any and all other Defaults hereunder are cured. 

5.Prepayment. This Note may be prepaid, at any time and from time to time, in whole or in part, without premium, fee or penalty. 

6.Default. Maker shall be in "Default" under this Note upon the occurrence of any of the following events:  

(a) Maker's failure to make any payment of interest, principal or other amount hereunder, on the date first due and payable; 

(b) Maker's admission in writing of Maker's inability to pay Maker's debts as such debts become due;

(c) Maker's filing of any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or under any other law for the relief of, or relating to, debtors; or 

(d) Maker's failure to have dismissed or vacated within thirty (30) days following the date of filing any involuntary petition against Maker under any bankruptcy, reorganization, insolvency or moratorium law or under any other law for the relief of, or relating to, debtors. 

Notwithstanding any other provision of this Note to the contrary, upon the occurrence of a Default, Holder may, at Holder's option but with written notice to Maker, declare immediately due and payable the entire indebtedness evidenced by this Note, including 

EXHIBIT A

the entire principal balance outstanding hereunder, any and all unpaid interest accrued thereon and any and all other amounts due and owing under this Note.

7.No Waiver. No delay or omission on the part of Holder in exercising any right under this Note shall operate as a waiver of that right on any future occasion or of any other rights under this Note. 

8.Costs and Attorney’s Fees. If Holder institutes any collection effort, of any nature whatsoever (expressly including any collection efforts in any bankruptcy case), for any amount due and payable hereunder following a Default, then Maker shall pay to Holder forthwith any and all reasonable costs and expenses of collection actually incurred by Holder, including, without limitation, reasonable attorneys fees, accounting fees, expert witness fees and related costs, whether or not suit or other action or proceeding is instituted. The payment of any and all such costs and expenses shall be fully secured by any and all instruments securing this Note and fully assured by any and all instruments assuring payment of this Note. If either party to this Note commences any mediation, arbitration, administrative proceeding or judicial proceeding (each, a "Proceeding") to enforce or interpret any term, condition or other provision of this Note, the prevailing party in such Proceeding shall be entitled to recover reasonable attorneys fees, accounting fees, expert witness fees and related costs incurred by such prevailing party in such Proceeding from the non-prevailing party, in addition to any other relief to which such prevailing party may be entitled.  

9.Compliance with Laws. Notwithstanding any provision of this Note to the contrary, the total liability for payments in the nature of interest shall not exceed the limits imposed by the applicable usury laws of the State of New York. If, from any circumstances whatsoever, fulfillment of any provision hereof or of any other agreement evidencing, securing or otherwise assuring payment of the debt, at the time performance of such provisions shall be due, shall involve the payment of interest in excess of that authorized by law, and if from any circumstances, Holder shall ever receive as interest an amount which would exceed the highest lawful rate applicable to Maker, such amount which would be excessive interest shall be applied to the reduction of the principal balance outstanding under this Note and not to the payment of interest. 

10.Severability. The provisions of this Note are intended by Maker to be severable and divisible, and the invalidity or unenforceability of a provision or term herein shall not invalidate or render unenforceable the remainder of this Note or any part thereof. 

11.Governing Law; Jurisdiction. This Note and the respective rights, powers, privileges and authority and the respective duties, obligations and liabilities of the parties under this Note shall be governed by, and construed, interpreted and enforced in accordance with, the laws of the State of New York without giving effect, principle or doctrine regarding conflicts of laws. The parties hereto hereby irrevocably consent to the jurisdiction of any court of competent jurisdiction located in New York County, New York in connection with any action or proceeding brought by a party and arising out of or relating to this Note. 

EXHIBIT A

IN WITNESS WHEREOF, Maker has executed and delivered this Note as of the date first stated above.

 

GME INNOTAINMENT, INC. 

 

	By: 

	/s/ Matthew Miller

	 

	Matthew Miller

	 

	Chief Executive OfficerNONCOMPETITION AGREEMENT

EXHIBIT B

ROYALTY AGREEMENT

 

This Royalty Agreement (this "Agreement") is dated as of September 25, 2017, by and among PureSafe Water Systems, Inc. (the "Seller"), GME Innotainment, Inc. (the "Purchaser"), and Sustainable Resources Corporation, a Delaware corporation (the "Company"). 

 

 

R E C I T A L S

 

WHEREAS, the parties have entered into a Securities Exchange Agreement in connection with the transfer of 100% of the Company’s outstanding common stock held by Seller to Purchaser; and 

 

WHEREAS, as part of the consideration for the transfer, Purchaser and Company have agreed to pay Seller a royalty on certain sales as set forth in this Agreement; and 

 

WHEREAS, the execution and delivery by the parties to this Agreement is a precondition to the closing of the Securities Exchange Agreement.  

 

A G R E E M E N T

 

NOW THEREFORE, for an in consideration of the premises hereof and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

 

1.Beginning July 1, 2018, for a period of five (5) years from the date hereof, Buyer shall pay to Seller a royalty equal to five percent (5%) of the Company’s gross sales as hereinafter defined (the “Gross Sales”), with a minimum of royalty equal to ten thousand dollars ($10,000.00) per month, payable quarterly.  Gross Sales shall include all revenue derived from sales of the Company’s product(s), excluding any revenue collected for shipping or freight charges, or sales taxes.  Gross Sales shall be calculated on a quarterly basis, and paid to Seller within 15 days of the conclusion of each calendar quarter.  Payments will be due and payable on April 15, July 15, October 15, and January 15 of each calendar year. In the event that any such date is not a business day, payment shall be due and payable on the immediately following business day after such date.   

 

2.It is the intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Agreement shall be adjudicated to be invalid or unenforceable, such provisions shall be deemed amended to delete the offending portion, with the remainder of the Agreement to remain in full force and effect.   

EXHIBIT B

3.This Agreement may be amended, modified, terminated, rescinded or supplemented only by written agreement of the parties hereto.  This Agreement and all of the provisions hereof shall be binding upon the Buyers, and each of them, and their respective heirs, personal representatives, successors and assigns, and shall inure to the benefit of Seller and its successors and assigns.  This Agreement shall be governed by and construed in accordance with the laws of the State of Utah applicable to contracts made and to be performed wholly within the state.   

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Royalty Agreement to be effective as of the date first set forth above.

 

 

	SELLER

	 

	BUYER

	 

	 

	 

	 

	 

	PURESAFE WATER SYSTEMS, INC. 

	GME INNOTAINMENT, INC. 

	 

	 

	 

	 

	 

	By: 

	/s/ Leslie Kessler                      

	 

	By: 

	/s/ Matthew Miller     

	 

	 Leslie Kessler

	 

	 

	Matthew Miller

	 

	Chief Executive Officer

	 

	 

	Chief Executive Officer

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	COMPANY

	 

	 

	 

	 

	 

	 

	 

	 

	SUSTAINABLE RESOURCES CORPORATION

	 

	 

	 

	 

	 

	 

	 

	By: 

	/s/ Yves Michel              

	 

	 

	 

	 

	Yves Michel

	 

	 

	 

	 

	PresidentExhibit 10.46

 

2016
STOCK OPTION PLAN

 

SAMSON OIL & GAS LIMITED

2016 STOCK OPTION PLAN

 

1.          Purpose.
The purpose of this Plan is to align the interests of Samson Oil & Gas Limited and its subsidiaries (collectively “Samson” or
the “Company”) and Samson’s shareholders with those of its officers, directors and employees
as well as other individuals providing services to Samson (“Eligible Persons”) by creating incentives
for such persons to exert maximum efforts for the success of the Company. Issuances of options to subscribe for (“Options”)
Samson’s ordinary shares (“Shares”) to Eligible Persons must comply with all applicable Australian
laws, including the Australian Corporations Act and the Listing Rules, and with applicable U.S. laws, including state and federal
securities laws, NYSE MKT rules and SEC rules (collectively, “Applicable Law”).

 

2.          Definitions.
As used in this Plan, the following terms shall have the meanings indicated:

 

(a)          “ADSs”
refers to Samson’s American Depositary Shares, each representing 200 Ordinary Shares

 

(b)          
“ASX” means the Australian Securities Exchange.

 

(c)          “Board”
means Samson’s Board of Directors excluding the Managing Director or, if the Board delegates its responsibilities under this
Plan to the Compensation/Remuneration Committee or another committee of the Board, then such committee, provided, however, that
the members of such Committee must be Outside Directors and otherwise meet all applicable requirements of Section 162(m) of the
Code and Rule 16b-3 promulgated under the U.S. Securities Exchange Act of 1934 (“1934 Act”) and with
any other Applicable Law.

 

(d)          “Covered
Employee” means a “covered employee” as defined for purposes of Code Section 162(m).

 

(e)          “Code” means
the Internal Revenue Code of 1986, as amended.

 

(f)          “Disability” means
permanent and total disability as determined under Company’s long-term disability plan applicable to the Participant, or
if there is no such plan applicable to the Participant, “Disability” means a determination of total disability by the
U.S. Social Security Administration; provided that, in either case, the Participant’s condition also qualifies as a “disability”
for purposes of Section 409A(a)(2)(C) of the Code, with respect to an Award subject to Section 409A of the Code.

 

(g)          “Continuous
Service” means that the Participant’s service with the Company is not interrupted or terminated even if
there is a change in the capacity in which the Participant renders service to the Company, provided that there is no interruption
or termination between such different capacities.

 

(h)           “Employee” means
an individual employed by the Company as determined pursuant to Section 3401(c) of the Code. An individual’s status as an
employee shall be determined under Australian law for individuals providing services in Australia.

 

(i)          Fair
Market Value” means, as of any date, the official closing sales price for the Shares on the ASX on the last
market trading day prior to the day of determination. If the official closing price of ADSs as converted to Shares on the NYSE
MKT on such date is different than the official closing price on the ASX, then the Fair Market Value shall be the higher of the
ASX price and the NYSE MKT price. In the absence of a public trading market for the Shares, the Fair Market Value for any options
granted to US Persons shall be determined in good faith by the Board in accordance with Section 409A of the Code and the regulations
and other guidance promulgated thereunder. When comparing prices of Shares on the ASX and ADSs on the NYSE MKT, the official closing
price of ADSs on the NYSE MKT will first be converted to ordinary share equivalents, in U.S. dollars, and then the ordinary share
price in U.S. dollars will be further converted to Australian dollars using the exchange rate quoted by the Reserve Bank of Australia
for that trading day.

   

     

     

    

 

(j)          “Incentive
Stock Option” or “ISO” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

(k)          “Initial
Options” shall mean the Options described in Section 11 of this Plan.

 

(l)          “Listing
Rules” shall mean the Listing Rules of the ASX, as amended.

 

(m)          “Nonqualified
Stock Option” or “NQSO” means an Option that does not qualify
as an Incentive Stock Option.

 

(n)          “NYSE
MKT” shall mean the New York Stock Exchange’s NYSE MKT trading market.

 

(o)           “Option
Agreement” means a written agreement that may, but need not be, entered into between the Company and a Participant
setting forth the terms and conditions of an Option.

 

(p)          “Ordinary
Shares” means Samson’s ordinary shares traded on the ASX

 

(q)          “Outside
Director” means a member of the Board (a) who is an “outside director” for purposes of Section 162(m)
of the Code and (b) who is not a current Employee or officer of the Company, does not receive compensation directly or indirectly
from the Company or its parent or a subsidiary in any capacity other than as a Director, does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of SEC Regulation S-K and is not engaged in a business relationship
that must be disclosed under Item 404(b) of Regulation S-K.

 

(r)          “Participant” means
an Eligible Person who has been granted or holds an Option.

 

(s)          “Plan” means
this 2016 Stock Option Plan of Samson Oil & Gas Limited.

 

(t)          “SEC” means
the U.S. Securities and Exchange Commission.

 

3.          Options
Subject to the Plan. Options granted under this Plan may only be granted if and to the extent that the Options and the Shares
underlying the Options are authorized and issuable in accordance with Applicable Law.

 

4.          Grants
of Options. The Board shall administer this Plan, including the grant of Options from time to time, in accordance with Applicable
Law and this Plan. Except as otherwise provided in this Plan, the Board shall determine who shall be granted Options; when and
how Options are granted; the exercise price, vesting schedule and other terms of Options granted (which need not be identical),
the number of Shares underlying each Option and for US Persons, whether the Option is an Incentive Stock Option or an NQSO. The
Board shall also have the power to interpret the terms of this Plan and of Options, and to establish, amend and revoke rules and
regulations for their administration including but not limited to the correction of any defect, omission or inconsistency in this
Plan or any Option.

 

5.          Incentive
Stock Options and NQSOs. Incentive Stock Options may only be granted to US Persons and may not be exercisable for more than
ten (10) years from the date of grant. A US Person who owns (or is deemed to own by Code Section 424(d)) Shares with more than
ten percent (10%) of the total combined voting power of the Company may not be granted an Incentive Stock Option unless the exercise
price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Shares at the date of grant and
the Option is not exercisable after the expiration of five (5) years from the date of grant. To the extent that the aggregate Fair
Market Value (determined at the time of grant) of Shares underlying Incentive Stock Options granted to a Participant that become
exercisable during any calendar year exceeds $100,000, the portion of the Options that exceed such limit shall be treated as NQSOs.
An Incentive Stock Option shall not be transferable except from a decedent to an estate or by bequest or inheritance. An NQSO granted
to a US Person shall be transferable only if and to the extent provided in the Option Agreement. Options granted to US Persons
as Incentive Stock Options that fail to satisfy all the requirements for Incentive Stock Options at any time shall thereafter be
deemed to be NQSOs.

  

     

     

    

 

6.          Exercise
Price. The exercise price per share of any Option granted pursuant to this Plan shall be any price determined by the Board
in accordance with Applicable Law. In addition, the exercise price per share of any Option granted to a United States resident
or a person subject to United States income taxation (“US Persons”) shall be equal to or greater than
the Fair Market Value of the Shares on the date of grant. No Options subject to Code Section 162(m) shall be granted unless the
grant of such Options qualifies as qualified performance based compensation pursuant to Treasury Regulations Section 1.162-27(e)

 

7.          Exercise
of Options. An Option shall be deemed exercised when (i) the Company has received notice of such exercise in accordance with
the terms of the Option and (ii) full payment of the aggregate price of the Shares as to which the Option is exercised has been
made. The consideration paid for the Shares upon exercise of an Option, as well as the method of payment of the exercise price,
shall be determined by the Board in accordance with Applicable Law, the Company’s constitution, NYSE MKT rules and the Listing
Rules.

 

8.          Vesting
of Options. Options may be fully vested at the time of grant or may become exercisable in periodic installments as the Board
determines at the time of grant or, in the case of Initial Options or Automatic Options, as provided in this Plan. Option vesting
may also be subject to such other terms and conditions, including performance or other criteria, as the Board deems appropriate
in each case.

 

9.          Exercisability
and Expiration of Options. Each Option granted under this Plan shall become exercisable in such amounts, at such intervals,
and upon such terms as the Board shall provide in accordance with Applicable Law and this Plan. The unexercised portion of any
Option shall automatically and without notice terminate and become null and void at the time provided by the Board when granting
the Option or, in the case of Initial Options or Automatic Options, as provided in this Plan.

 

10.         Issuance
of Shares.

 

(a)          Notwithstanding
any other provision of this Plan, the Company shall not be obligated to issue any Shares upon exercise of Options if such issuance
would violate Applicable Law.

 

(b)          As
a condition to any sale or issuance of Shares upon exercise of any Option, the Board may require such agreements or undertakings
as the Board may deem necessary or advisable to facilitate compliance with any applicable law or regulation.

 

(c)          The
Company may not grant Options or issue Shares upon exercise of Options to any consultants or advisors who are US Persons if the
services provided by such consultants or advisors are either (i) rendered in connection with the offer or sale of securities in
a capital-raising transaction or (ii) directly or indirectly promote or maintain a market for the Company’s securities.

 

11.         Initial
Grants of Options.    Immediately upon the approval of this Plan and of the specific grant of such Options
by the Company’s shareholders, the following Options (the “Initial Options”) shall be granted to
the Participants below, effective on the date of shareholder approval (the “Effective Date”), without
any further action by the Board so long as named the Participants continue to hold the positions with the Company set forth below:

 

	Position with Company	 	Participant Name	 	Number of Shares	 	Term (years)
	Chairman of the Board	 	Peter Hill	 	30,000,000 (150,000 ADSs)	 	10
	 	 	 	 	 	 	 
	CEO/Managing Director	 	Terence Barr	 	60,000,000 (300,000 ADSs)	 	10
	 	 	 	 	 	 	 
	Other Directors (2)	 	Greg Channon & Denis Rakich	 	24,000,000 (120,000 ADSs) each	 	10
	 	 	 	 	 	 	 
	TOTALS	 	4 Grants	 	138,000,000 Shares (690,000 ADSs)	 	 

   

 

     

     

    

 

The Initial Options shall be unvested on
the date of grant but will fully vest on the one year anniversary of the shareholder approval of this Plan so long as the Participant
continues to hold the “Position with Company” designated above on such anniversary date. If a Participant designated
above to receive Initial Options no longer holds the Position with Company set forth above on the date of shareholder approval
of this Plan, then no Options will be granted to such Participant. In the event a new Eligible Person has been named to such Position
with Company on the date of shareholder approval in replacement of any of the Participants named above, the Board may, in its discretion,
elect to grant the Option to such replacement. The grant of Initial Options shall not prevent or restrict the Board from granting
additional Options to the same or different Participants in the future, in its discretion, subject to Applicable Law, including
all shareholder approval requirements. Initial Options that are eligible to be ISOs will be granted as ISOs if and to the extent
that they are eligible to be so granted.

 

The exercise price of Initial Options granted
to US Persons shall be the Fair Market Value on the date of shareholder approval of the Plan. The exercise price of Initial Options
that are granted to non-US Persons shall be one hundred forty three percent (143%) of Fair Market Value, provided, however, that
if the exercise price for non-US Persons can be set lower than such amount without causing the non-US Person Recipients to incur
immediate taxation upon grant of the Initial Options, then the Board may lower the exercise price so long as it is equal to or
greater than Fair Market Value.

 

12.         Shares
Subject to Plan. Three hundred twenty million (320,000,000) Shares (which are the equivalent of one million six hundred
thousand (1,600,000) ADSs) are initially reserved and available for Options granted under this Plan, including the one hundred
thirty eight million (138,000,000) Shares (the equivalent of 690,000 ADSs) in Initial Options granted upon the approval of this
Plan by shareholders to Directors so that one hundred eighty two million (182,000,0000) Shares (the equivalent of 910,000 ADSs)
remaining for potential grant to Eligible Persons by the Board. The maximum number of Shares subject to Awards that may be granted
under this Plan to any one Participant in any one calendar year is also sixty million (60,000,000) Shares (the equivalent of 300,000
ADSs), unless a greater number is authorized by a resolution approved by the Board and the shareholders, in which event the maximum
shall be increased to such number. Shares that are the subject of Options that expire, are forfeited or cancelled or terminate
for any other reason without the delivery of the Shares are added back in to the Plan and may be granted again if and to the extent
otherwise permitted by this Plan. When Shares or ADSs are tendered to the Company by a Participant to pay the exercise price of
an Option or to satisfy tax withholding obligations, the Shares tendered will likewise be added back to the number of Shares or
ADSs available for issuance under this Plan.

 

13.         Termination
of Continuous Service. Unless otherwise provided by the Board when an Option is granted, in the event a Participant’s
Continuous Service terminates (other than upon the Participant’s death or Disability), the Participant may exercise his or
her Option if and to the extent that the Participant was entitled to exercise such Option immediately prior to such termination
so long as such exercise is made by the earlier of (i) the date that is twelve (12) months following the termination of Continuous
Service or (ii) the expiration of the term of the Option. If, after termination of Continuous Service, the Option holder does not
exercise his or her Option within the time specified herein or as modified by the Option Agreement, the Option shall lapse.

 

14.         Administration
of the Plan. The Plan shall be administered by the Board or an authorized committee of the Board, either of which shall have
the authority to adopt such rules and regulations as are necessary or desirable for the implementation and administration of the
Plan and to make such determinations as are not inconsistent with the Plan.

 

15.         Amendment
and Discontinuation of the Plan. The Board may from time to time amend, suspend or terminate the Plan. No Options may be granted
under the Plan while the Plan is suspended or after it is terminated.

 

16.         Termination
Date. This Plan shall terminate ten (10) years from the date that it is approved by Company’s shareholders but must be
submitted to shareholders for re-adoption every three (3) years during that period. Notwithstanding the termination of this Plan,
Options granted prior to the termination of this Plan shall continue in effect according to their terms and the Board shall continue
to have responsibility for administering all such outstanding Options.

 

     

     

    

 

17.         Governing
Law. The Plan will be governed by, and construed and enforced in accordance with, the laws of Australia, the United States
of America and the State of Colorado, in each case as applicable under the circumstances. In the event of a conflict between the
various laws, the Board shall determine which law is applicable.

  

18.         No
Shareholder Rights. No Participant shall be deemed to be the holder of, or to have any of the voting or other rights of a holder
with respect to, the Shares underlying an Option prior to exercise of the Option.

 

19.         No
Promise of Continuing Employment or Service. The grant of an Option by the Board or this Plan shall not give any rights to
a Participant to continue to be employed by or otherwise serve Company.

 

20.         Tax
Withholding Obligations. Company will require Participants to pay all applicable federal, state or local taxes at the time
of exercise or vesting if and as required by law. The Company may satisfy such payment obligation by withholding all or a portion
of such amounts from wages, fees or other funds otherwise due to the Participant from the Company. If insufficient funds are available
from such withholding, the Board may, in its sole discretion, allow the Participant to: (i) authorize the Company to withhold Shares
from the Shares otherwise issuable to the Participant upon the exercise of the Option, up to the amount of taxes owed for the exercise;
or (ii) deliver to the Company other owned and unencumbered Shares or ADSs. The Board may in any event require the Participant
to tender a cash payment of some or all of the taxes due upon exercise of an Option.

 

21.         Section
280G Cut-Back. If the Board determines, in its sole discretion, that any payment or distribution by the Company required or
permitted by this Plan (“Payment”) to or for the benefit of a Participant who is a US Person would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Participant with
respect to such excise tax (together with any such interest and penalties, the “Excise Tax”), such Payments
shall be reduced, to the extent required to prevent the imposition upon the Participant of any Excise Tax.

 

If a reduction in Payments is required
pursuant to the immediately preceding paragraph, then, except as provided below with respect to Payments that consist of health
and welfare benefits, the reduction in Payments shall be implemented by determining the “Parachute Payment Ratio” (as
defined below) for each Payment and then reducing the Payments in order beginning with the Payment with the highest Parachute Payment
Ratio. For Payments with the same Parachute Payment Ratio, such Payments shall be reduced based on the time of payment of such
Payments, with amounts being paid furthest in the future being reduced first. For Payments with the same Parachute Payment Ratio
and the same time of payment, such Payments shall be reduced on a pro-rata basis (but not below zero) prior to reducing Payments
next in order for reduction. For purposes of this Section, “Parachute Payment Ratio” shall mean a fraction, the numerator
of which is the value of the applicable Payment as determined for purposes of Code Section 280G, and the denominator of which is
the financial present value of such Parachute Payment, determined at the date such payment is treated as made for purposes of Code
Section 280G (the “Valuation Date”). In determining the denominator for purposes of the preceding sentence (1) present
values shall be determined using the same discount rate that applies for purposes of discounting payments under Code Section 280G;
(2) the financial value of payments shall be determined generally under Q&A 12, 13 and 14 of Treasury Regulation 1.280G-1;
and (3) other reasonable valuation assumptions as determined by the Company shall be used. Notwithstanding the foregoing, Payments
that consist of health and welfare benefits shall be reduced after all other Payments, with health and welfare Payments being made
furthest in the future being reduced first.

 

22.         Capitalization
Adjustments. If any change is made in the number of issued and outstanding Shares of the Company without the receipt of consideration
by the Company (whether by merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, in kind property
dividend, stock split, reverse stock split, exchange of shares or otherwise), all issued and outstanding Options and all unissued
Automatic Options will be appropriately adjusted by the Board. The Board shall make such adjustments, and its determination shall
be final, binding and conclusive.

 

23.         Asset
Sale, Merger, Consolidation, or Series of Transactions. Unless otherwise provided by the terms of an Option at the time of
grant, upon (i) sale, lease or other disposition of all or substantially all of the Company’s assets, (ii) consolidation
or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in
which the shareholders of the Company immediately prior to such consolidation, merger or reorganization, own less than fifty percent
(50%) of the Company’s outstanding voting power of the surviving entity (or its parent) following the consolidation, merger
or reorganization or (iii) any transaction (or series of related transactions involving a person or entity, or a group of affiliated
persons or entities) in which in excess of fifty percent (50%) of the Company’s outstanding voting power is transferred (individually,
a “Change of Control”), then, unless otherwise determined by the Board, the surviving or acquiring shall assume all
outstanding Options or replace them with substantially identical options in that corporation or other property with equivalent
value.

 

     

     

    

 

24.         Amendment
of Plan. The Board at any time, and from time to time, may amend the Plan, provided, however that no amendment shall be effective
unless it complies with Applicable Law and is approved by the shareholders of the Company to the extent shareholder approval is
necessary to satisfy the requirements of Section 422 of the Code or, if applicable, 1934 Act Rule 16b-3 or any securities exchange
listing requirements. A Participant’s rights in an Option granted before an amendment of this Plan shall not be impaired
by any such amendment without the written consent of the Participant.

 

25.         Compliance
with International Requirements. If any Option is granted to an Eligible Person who is not a US Person, the Board may, in its
sole discretion, modify the provisions of this Plan or any Option as they pertain to such individuals to comply with applicable
law, regulations or accounting rules.

 

26.         Code
Section 409A. Options granted to US Persons under this Plan are intended to be exempt from, or to comply with, the provisions
of Section 409A of the Code, and this Plan and all Options granted hereunder shall be interpreted accordingly. Notwithstanding
anything herein to the contrary, the Company shall have the discretion and authority to amend this Plan or any Options granted
hereunder at any time to the extent necessary or advisable to satisfy any requirements of Section 409A of the Code or guidance
published thereunder. However, the Company or any Affiliate shall have no liability for any failure of the Plan or any Option to
satisfy Code Section 409A, and the Company does not guarantee that the Plan or any Stock Award complies with Code Section 409A.

 

27.         Limitation
on Issuances. No Option will be issued under the Plan to a director or officer of the Company without prior shareholder approval
if and to the extent required by Applicable Law.

 

28.         No
ASX Quotation. No application will be made for quotation of the Options by the ASX or any other securities exchange.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]