Document:

Document

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934

As of January 31, 2022, UiPath, Inc. had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, or the Exchange Act: our Class A common stock, $0.00001 par value per share. References herein to the terms “we,” “our” and “us” refer to UiPath, Inc. and its subsidiaries.
The following description of our capital stock is a summary and does not purport to be complete.  It is subject to, and qualified in its entirety by reference to, the applicable provisions of our amended and restated certificate of incorporation, our amended and restated bylaws and our amended and restated investor rights agreement entered into in February 1, 2021, which are filed as exhibits to our Annual Report on Form 10-K, of which this Exhibit 4.2 is a part, and are incorporated by reference herein. We encourage you to read our amended and restated certificate of incorporation, our amended and restated bylaws, our investor rights agreement and the applicable provisions of the Delaware General Corporation Law, or the DGCL, for more information.
General
Our amended and restated certificate of incorporation provides for two classes of common stock: Class A common stock and Class B common stock. In addition, our amended and restated certificate of incorporation authorizes shares of undesignated preferred stock, the rights, preferences and privileges of which may be designated from time to time by our board of directors.
Our authorized capital stock consists of 2,135,741,494 shares, of which 2,000,000,000 shares are designated as Class A common stock, 115,741,494 shares are designated as Class B common stock and 20,000,000 shares are designated as preferred stock. The Preferred Stock shall have a par value of $0.00001 per share and the Common Stock shall have a par value of $0.00001 per share.
Our board of directors is authorized, without stockholder approval except as required by the listing standards of the New York Stock Exchange, to issue additional shares of our capital stock.
Class A Common Stock and Class B Common Stock
Voting Rights
The Class A common stock is entitled to one vote per share on any matter that is submitted to a vote of our stockholders. Holders of our Class B common stock are entitled to 35 votes per share on any matter submitted to our stockholders. Holders of shares of Class B common stock and Class A common stock will vote together as a single class on all matters (including the election of directors) submitted to a vote of stockholders, unless otherwise required by Delaware law.
Under Delaware law, holders of our Class A common stock or Class B common stock would be entitled to vote as a separate class if a proposed amendment to our amended and restated certificate of incorporation would increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely. While the holders of our Class A common stock have waived their right to vote as a separate class as to amendments to our amended and restated certificate of incorporation that would increase or decrease the aggregate number of authorized shares of Class A common stock, they are entitled to the other class protections provided under Delaware law. As a result, in these limited instances, the holders of a majority of the Class A common stock could defeat any amendment to our amended and restated certificate of incorporation. For example, if a 

Exhibit 4.2

proposed amendment of our amended and restated certificate of incorporation provided for the Class A common stock to rank junior to the Class B common stock with respect to (1) any dividend or distribution, (2) the distribution of proceeds were we to be acquired, or (3) any other right, Delaware law would require the vote of the Class A common stock. In this instance, the holders of a majority of Class A common stock could defeat that amendment to our amended and restated certificate of incorporation
Our amended and restated certificate of incorporation does not provide for cumulative voting for the election of directors.
Economic Rights
Except as otherwise expressly provided in our amended and restated certificate of incorporation or required by applicable law, all shares of Class A common stock and Class B common stock will have the same rights and privileges and rank equally, share ratably and be identical in all respects for all matters, including those described below.
Dividends and Distributions. 
Subject to preferences that may apply to any shares of convertible preferred stock outstanding at the time, the holders of Class A common stock and Class B common stock will be entitled to share equally, identically, and ratably, on a per share basis, with respect to any dividend or distribution of cash or property paid or distributed by the company, unless different treatment of the shares of the affected class is approved by the affirmative vote of the holders of a majority of the outstanding shares of such affected class, voting separately as a class. 
Liquidation Rights. 
On our liquidation, dissolution, or winding-up, the holders of Class A common stock and Class B common stock will be entitled to share equally, identically, and ratably in all assets remaining after the payment of any liabilities, liquidation preferences, and accrued or declared but unpaid dividends, if any, with respect to any outstanding convertible preferred stock, unless a different treatment is approved by the affirmative vote of the holders of a majority of the outstanding shares of such affected class, voting separately as a class.
Change of Control Transactions. 
The holders of Class A common stock and Class B common stock will be treated equally and identically with respect to shares of Class A common stock or Class B common stock owned by them, unless different treatment of the shares of each class is approved by the affirmative vote of the holders of a majority of the outstanding shares of the class treated differently, voting separately as a class, on (a) the closing of the sale, transfer, or other disposition of all or substantially all of our assets, (b) the consummation of a merger, reorganization, consolidation, or share transfer which results in our voting securities outstanding immediately before the transaction (or the voting securities issued with respect to our voting securities outstanding immediately before the transaction) representing less than a majority of the combined voting power of the voting securities of the company or the surviving or acquiring entity, or (c) the closing of the transfer (whether by merger, consolidation, or otherwise), in one transaction or a series of related transactions, to a person or group of affiliated persons of securities of the company if, after closing, the transferee person or group would hold 50% or more of the outstanding voting power of the company (or the surviving or acquiring entity). However, consideration to be paid or received by a holder of common stock in connection with any such assets sale, merger, reorganization, consolidation, or share transfer under any employment, consulting, severance, or other arrangement will be disregarded for the purposes of determining whether holders of common stock are treated equally and identically.

Exhibit 4.2

Subdivisions and Combinations. 
If we subdivide or combine in any manner outstanding shares of Class A common stock or Class B common stock, the outstanding shares of the other classes will be subdivided or combined in the same manner.
No Preemptive or Similar Rights
Our Class A common stock and Class B common stock are not entitled to preemptive rights, and are not subject to conversion, redemption or sinking fund provisions, except for the conversion provisions with respect to the Class B common stock described below.
Conversion
Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. On any transfer of shares of Class B common stock, whether or not for value, each such transferred share will automatically convert into one share of Class A common stock, except for certain transfers detailed below and further described in our amended and restated certificate of incorporation that will be in effect on the closing of this offering, so long as the transferring holder continues to hold sole voting and dispositive power with respect to the shares transferred.
Any holder’s shares of Class B common stock will convert automatically into Class A common stock, on a one-to-one basis, upon certain circumstances, including: (1) the sale or transfer of such share of Class B common stock (except as described above), (2) a date fixed by the board of directors that is no less than 120 days and no more than 180 days following the date that the number of shares of Class B common stock outstanding is less than 20% of the number of shares of Class B common stock outstanding immediately prior to the completion of this offering, or (3) six months after the death or incapacity of Daniel Dines.
Once transferred and converted into Class A common stock, the Class B common may not be reissued.
Permitted Transfers of Class B Common Stock
A transfer by a holder of Class B common stock to any of the persons or entities listed in clauses (A) through (H) below, each a Permitted Transferee, and from any such Permitted Transferee back to such holder of Class B common stock and/or any other Permitted Transferee established by or for such holder of Class B common stock will not trigger an automatic conversion to Class A common stock so long as, in each case, Daniel Dines (or, in the case of clauses (C), (D), (F) or (G) below, Daniel Dines, a Qualified Trustee (as defined below) and/or a Qualified Trust (as defined below)), directly or indirectly, retains sole dispositive and voting power with respect to the shares of Class B common stock transferred: (A) a trust for the benefit of any person; (B) a trust under the terms of which Daniel Dines has retained a “qualified interest” within the meaning of §2702(b)of the Internal Revenue Code and/or a reversionary interest; (C) a trust for the benefit of one or more of (i) Daniel Dines or one of his family members, (ii) a Permitted Transferee, or a charitable organization, in which the trustee is one or more of (x) Daniel Dines (or his attorney), (y) a professional in the business of providing trustee services, or (z) a director or executive officer of the Company, a private banker at a nationally or internationally recognized financial institution or a legal advisor of Daniel Dines, so long as such person is approved by a majority of the members of the board of directors other than Daniel Dines, any such trustee, a Qualified Trustee; (D) a trust under the terms of which Daniel Dines has the power to revest in himself title to the trust property, if such power is exercisable solely by Daniel Dines without the approval or consent of any other person or with the consent of a “related or subordinate party” within the meaning of §672(c) of the Internal Revenue Code (a trust satisfying either clause (C) or (D), a Qualified Trust); (E) an Individual Retirement Account, as defined in Section 408(a) of the Internal Revenue Code, or a pension, profit sharing, stock bonus or other 

Exhibit 4.2

type of plan or trust of which Daniel Dines is a participant or beneficiary and which satisfies the requirements for qualification under Section 401 of the Internal Revenue Code; (F) a corporation, partnership or limited liability company in which Daniel Dines, directly or indirectly through one or more Permitted Transferees, owns shares, partnership interests or membership interests, as applicable; (G) a charitable organization organized and operated primarily for religious, scientific, literary, education or a charitable purpose, or a Qualified Charity, provided any such transfer does not involve a disposition for value; and (H) an estate.
Convertible Preferred Stock
Under our amended and restated certificate of incorporation, our board of directors may, without further action by our stockholders (except as noted below), fix the rights, preferences, privileges, and restrictions of up to an aggregate of 20,000,000 shares of convertible preferred stock in one or more series and authorize their issuance. Notwithstanding the foregoing, so long as any shares of Class B common stock remain outstanding, no shares of preferred stock with voting rights equal or superior to those of the Class B common stock may be issued without the approval of the holders of a majority of the outstanding shares of Class B common stock. These rights, preferences, and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of our Class A common stock or Class B common stock. Any issuance of our convertible preferred stock could adversely affect the voting power of holders of our Class A common stock or Class B common stock, and the likelihood that such holders would receive dividend payments and payments on liquidation. In addition, the issuance of convertible preferred stock could have the effect of delaying, deferring, or preventing a change of control or other corporate action. 
Registration Rights
Stockholder Registration Rights
We are party to an investor rights agreement that provides that certain holders of our convertible preferred stock, including certain holders of at least 5% of our capital stock and entities affiliated with certain of our directors, have certain registration rights, as set forth below. This investor rights agreement was entered into in July 2020. The registration of shares of our Class A common stock by the exercise of registration rights described below would enable the holders to sell these shares without restriction under the Securities Act when the applicable registration statement is declared effective. We will pay the registration expenses, other than underwriting discounts and commissions, of the shares registered by the demand, piggyback, and Form S-3 registrations described below.
Generally, in an underwritten offering, the managing underwriter, if any, has the right, subject to specified conditions, to limit the number of shares such holders may include. The demand, piggyback, and Form S-3 registration rights described below will expire five years after the effective date of the registration statement, of which this prospectus forms a part, or with respect to any particular stockholder, such time after the effective date of the registration statement that such stockholder (a) holds less than 1% of our outstanding common stock (including shares issuable on conversion of outstanding convertible preferred stock) and (b) can sell all of its shares under Rule 144 of the Securities Act, or Rule 144, during any 90-day period.
Demand Registration Rights
Certain holders of our Class A common stock are entitled to certain demand registration rights. At any time, the holders of a majority of these shares may, on not more than two occasions, request that we register all or a portion of their shares. Such request for registration must cover shares with an anticipated aggregate offering price, net of underwriting discounts and commissions, of at least $15 million.

Exhibit 4.2

Piggyback Registration Rights
In the event that we propose to, subject to limited exceptions, register any of our securities under the Securities Act, either for our own account or for the account of other security holders, the holders of these shares will be entitled to certain piggyback registration rights allowing the holder to include their shares in such registration, subject to certain marketing and other limitations. As a result, whenever we propose to file a registration statement under the Securities Act, other than with respect to a demand registration or a registration statement on Forms S-4 or S-8, the holders of these shares are entitled to notice of the registration and have the right to include their shares in the registration, subject to limitations that the underwriters may impose on the number of shares included in the offering.
Form S-3 Registration Rights
The holders of an aggregate of at least 20% of the outstanding shares of Class A common stock are entitled to certain Form S-3 registration rights. The holders of at least 20% of these shares can make a request that we register their shares on Form S-3 if we are qualified to file a registration statement on Form S-3 and if the reasonably anticipated aggregate gross proceeds of the shares offered would equal or exceed $5 million. We will not be required to effect more than two registrations on Form S-3 within any 12-month period.
Anti-Takeover Provisions
Certificate of Incorporation and Bylaws
Because our stockholders do not have cumulative voting rights, stockholders holding a majority of the voting power of our shares of common stock will be able to elect all of our directors. Our amended and restated certificate of incorporation and amended and restated bylaws to be effective on the closing of this offering will provide for stockholder actions at a duly called meeting of stockholders or, so long as any shares of Class B common stock remain outstanding, by written consent. A special meeting of stockholders may be called by a majority of our board of directors, the chair of our board of directors, our chief executive officer, or, so long as any shares of Class B common stock remain outstanding, by our secretary upon written consent of our stockholders entitled to cast at least a majority of the votes at such meeting. Our amended and restated bylaws have an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our board of directors.
Our amended and restated certificate of incorporation further provides for a dual-class common stock structure, which provides Daniel Dines, our Chief Executive Officer, Co-Founder, and Chairman, who, collectively with his controlled entities, holds 100% of our outstanding Class B common stock, with control over all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets. Additionally, so long as any shares of Class B common stock remain outstanding, a majority vote of the outstanding Class B common stock is required to (1) amend, alter, or repeal any provision of the certificate of incorporation or bylaws in a manner that impacts the rights of the holders of the Class B common stock, (2) reclassify any outstanding shares of Class A common stock into shares having (a) dividend or liquidation rights that are senior to the Class B common stock or (b) the right to more than one vote per share, (3) issue any shares of preferred stock having voting rights equal to superior to those of the Class B common stock, and (4) issue any additional shares of Class B common stock or other securities convertible into Class B common stock (except for the issuance of Class B Common Stock issuable upon a dividend under certain circumstances).

Exhibit 4.2

The foregoing provisions make it more difficult for another party to obtain control of us by replacing our board of directors. Since our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated convertible preferred stock makes it possible for our board of directors to issue convertible preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.
These provisions, including the dual-class structure of our common stock, are intended to preserve our existing control structure, facilitate our continued product innovation and the risk-taking that it requires, permit us to continue to prioritize our long-term goals rather than short-term results, enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions are also designed to reduce our vulnerability to an unsolicited acquisition proposal and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of deterring hostile takeovers or delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts.
Section 203 of the Delaware General Corporation Law
We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, subject to certain exceptions.
Choice of Forum
Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware be the exclusive forum for actions or proceedings brought under Delaware statutory or common law: (1) any derivative claim or cause of action brought on our behalf; (2) any claim or cause of action asserting a breach of fiduciary duty; (3) any claim or cause of action against us arising under the Delaware General Corporation Law; (4) any claim or cause of action arising under or seeking to interpret our amended and restated certificate of incorporation or our amended and restated bylaws; or (5) any claim or cause of action against us that is governed by the internal affairs doctrine. The provisions would not apply to suits brought to enforce a duty or liability created by the Exchange Act.
Our amended and restated certificate of incorporation further provides that the federal district courts of the United States of America is the exclusive forum for resolving any complaint asserting a cause or causes of action arising under the Securities Act, including all causes of action asserted against any defendant to such complaint. For the avoidance of doubt, this provision is intended to benefit and may be enforced by us, our officers and directors, the underwriters to any offering giving rise to such complaint, and any other professional entity whose profession gives authority to a statement made by that person or entity and who has prepared or certified any part of the documents underlying the offering. Investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder.
Exchange Listing
Our Class A common stock is currently listed in the New York Stock Exchange under the symbol “PATH.”

Exhibit 4.2

Transfer Agent and Registrar
The transfer agent and registrar for our Class A common stock and Class B common stock is Computershare Trust Company, N.A. The transfer agent’s address is 150 Royall Street, Canton,  Massachusetts 02021.Exhibit
10.1

 

SELECTIS
HEALTH, INC.

 

NON-STATUTORY
STOCK OPTION AGREEMENT

 

This
Non-Statutory Stock Option Agreement (the “Agreement”) is made and entered into effective the 30th day of March, 2022, between
Selectis Health, Inc. (the “Company”) and Lance Baller (“Optionee”).

 

NOW,
THEREFORE, it is hereby agreed as follows:

 

1.
Grant of Option. The Company hereby grants to Optionee, as of the date hereof, an option to purchase commencing on the date hereof
and ending on the tenth (10th) anniversary of the date hereof (the “Expiration Date”) an option exercisable to purchase up
to an aggregate of 100,000 shares of Common Stock, $.005 par value, (the “Option Shares”) at an exercise price of $7.00 per
Option Share (the “Exercise Price”). The Option Shares shall be purchasable from time to time during the option term specified
in this Section 1 at the Exercise Price, subject to the vesting provisions of paragraph 3 of this Option.

 

2.
Option Term. This option shall expire at the close of business on the Expiration Date or on the date on which the option shall
have been exercised in full (the “Exercise Date”), unless sooner terminated in accordance with Section 5 hereof.

 

3.
Vesting. This Option is subject to the vesting schedule set forth in this paragraph 3. Only Options that have vested will be exercisable
by Optionee. To vest, Optionee must continue to be the chief executive officer to the Company on each Vesting Date. The number of Options
to vest on each Vesting Date is as follows:

 

	Number
    of Options	 	Vesting
    Date
	 	 	 
	100,000	 	Immediately
    upon date of grant

 

4.
Limited Transferability.

 

(a)
This option shall be neither transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee’s
death and may be exercised, during Optionee’s lifetime, only by Optionee. However, Optionee may designate one or more persons as
the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be transferred
to such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall
take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the limited time
period during which this option may, pursuant to Section 5, be exercised following Optionee’s death.

 

(b)
If this option is designated a Non-Statutory Option in the Grant Notice, then this option may be assigned in whole or in part during
Optionee’s lifetime to one or more members of Optionee’s family or to a trust established for the exclusive benefit of one
or more such family members or to Optionee’s former spouse, to the extent such assignment is in connection with the Optionee’s
estate plan or pursuant to a domestic relations order. The assigned portion shall be exercisable only by the person or persons who acquire
a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those
in effect for this option immediately prior to such assignment.

 

    	 

     

    

 

5.
Cessation of Service. The option term specified in Section 1 survives any cessation of services; the vested portion of the option
shall continue to have the term of exercise as determined by Section 1 including any transfer to heirs or beneficiary’s.

 

6.
Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company’s
receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option
and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder.

 

7.
Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such
person shall have exercised the option, paid the Exercise Price and become the record holder of the purchased shares.

 

8.
Manner of Exercising Option.

 

(a)
In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable,
Optionee (or any other person or persons exercising the option) must take the following actions:

 

(i)
Execute and deliver to the Company a Purchase Agreement for the Option Shares for which the option is exercised.

 

(ii)
Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms:

 

(A)
cash or check made payable to the Company; or

 

(B)
a promissory note payable to the Company, but only to the extent authorized by the Company.

 

(iii)
Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the Exercise Price may
also be paid as follows:

 

(A)
in shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary
to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date;
or

 

(B)
to the extent the option is exercised for Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or
any other person or persons exercising the option) shall concurrently provide irrevocable instructions (a) to a Company-designated brokerage
firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement
date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable income and employment
taxes required to be withheld by the Company by reason of such exercise and (b) to the Company to deliver the certificates for the purchased
shares directly to such brokerage firm in order to complete the sale.

 

    	 

     

    

 

Except
to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must
accompany the Purchase Agreement delivered to the Company in connection with the option exercise.

 

(iv)
The exercise price of the Options may also be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash
at the time the Option is exercised, (ii) by delivery to the Company of other Common Stock of the Company valued at its then established
fair market value (as defined below), (iii) by delivery to the Company of either options or stock of the Company including, without limitation,
this Option, valued at the difference between their exercise price and the then established fair market value of the Company’s
Common Stock, (iv) according to a deferred payment or other arrangement (which may include, without limiting the generality of the foregoing,
the use of other Common Stock of the Company) with the holder hereof, or (v) any other form of legal consideration that may be acceptable
to the Board of Directors, in their discretion. For the purposes of this Section 4, the fair market value of the Company’s Common
Stock shall be defined as (i) the closing sale price for the Common Stock on the primary exchange upon which the shares are listed and
traded on the date prior to the date the Option is exercised, or (ii) if the shares are not traded on any national exchange, the closing
sale price for the Common Stock on the NASDAQ National Market on the date prior to the date the Option is exercised, or (iv) if the shares
are neither traded on a national exchange nor listed on the NASDAQ National Market, then the average of the bid and ask prices for the
Common Stock in the Over-The-Counter Market as quoted on the NASDAQ Capital Market, on the date prior to the date the Option is exercised,
or (iv) if the shares of Common Stock are neither traded on a national exchange or the NASDAQ National Market nor quoted on the NASDAQ
Capital Market, the average of the bid and ask prices for the Common Stock as quoted by any recognized securities quotation service such
as the OTC.QB of the OTC Markets Group, LLC or the OTC Electronic Bulletin Board on the date prior to the date the Option is exercised,
or (v) if the shares of Common Stock are not quoted on any recognized securities quotation service such as the OTC.QB of the OTC Markets
Group, LLC or the OTC Electronic Bulletin Board on the date prior to the date the Option is exercised, then the fair market value of
the Company’s Common Stock shall be the price paid for the Company’s Common Stock in the most recent transaction involving
the Company and a nonaffiliated purchaser in an arm’s length transaction (the “Fair Market Value”). In the case of
any deferred payment arrangement, any interest shall be payable at least annually and shall be charged at the minimum rate of interest
necessary to avoid the treatment as interest, under any applicable provisions of the Internal Revenue Code, of any amounts other than
amounts stated to be interest under the deferred payment arrangement.

 

(b)
By way of example, in lieu of exercising this Option by payment with cash, certified check or wired funds, the Holder may elect to receive
the number of Shares, as determined below, equal to the value of this Option (or the portion thereof being exercised) by surrender of
this Option at the corporate office of the Company together with the duly executed form of subscription agreement and notice of such
an election, in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 

X=
Y(A-B)

A

 

	 	Where:	 	X
    = the number of shares of Common Stock to be issued to the Holder
	 	 	 	Y
    = the gross number of shares of Common Stock to be purchased
	 	 	 	A
    = the Fair Market Value of one (1) share of the Company’s Common Stock
	 	 	 	on
the date prior to exercise hereunder
	 	 	 	 
	 	 	 	B
    = Exercise Price

 

    	 

     

    

 

(v)
Furnish to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right
to exercise this Option

 

(vi)
Execute and deliver to the Company such written representations as may be requested by the Company in order for it to comply with the
applicable requirements of applicable securities laws.

 

(vii)
Make appropriate arrangements with the Company (or Subsidiary or Affiliate employing or retaining Optionee) for the satisfaction of all
applicable income and employment tax withholding requirements applicable to the option exercise.

 

(b)
As soon as practical after the Exercise Date, the Company shall issue to or on behalf of Optionee (or any other person or persons exercising
this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.

 

(c)
In no event may this option be exercised for any fractional shares.

 

9.
Compliance with Laws and Regulations.

 

(a)
The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and
Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq
National Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance.

 

(b)
The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the
lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance
or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use its best efforts
to obtain all such approvals.

 

10.
Successors and Assigns. Except to the extent otherwise provided in Sections 3 and 6, the provisions of this Agreement shall inure
to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns and the legal
representatives, heirs and legatees of Optionee’s estate.

 

11.
Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and
addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed
effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

 

12.
Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of
Colorado without resort to that State’s conflict-of-laws rules.

 

 

	SELECTIS
    HEALTH, INC.	 	OPTIONEE:
	 	 	 
	By:	/s/
    Christopher Barker	 	/s/
    Lance Baller
	Name:	Christopher
    Barker	 	Lance
    Baller
	Title:	President	 	 

 

    	 

     

    

 

EXHIBIT
A 

 

NONSTATUTORY
STOCK OPTION AGREEMENT 

 

EXERCISE
NOTICE

 

Selectis
Health, Inc.

 

Attention:
Secretary

 

1.
Exercise of Option. Effective as of today, ___________________, _________, the undersigned (the “Optionee”) hereby
elects to exercise the Optionee’s option to purchase ___________ shares of the Common Stock (the “Shares”) of ____________
(the “Company”) under and pursuant to the Nonstatutory Stock Option Agreement dated _______________ (the “Agreement”).

 

2.
Delivery of Payment. The Optionee herewith delivers to the Company the full purchase price of the Shares, as set forth in the
Agreement, and any and all withholding taxes due in connection with the exercise of the Option (as defined in the Agreement).

 

3.
Representations of Optionee. The Optionee acknowledges that the Optionee has received, read and understood the Agreement and agrees
to abide by and be bound by its terms and conditions.

 

4.
Rights as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall
exist with respect to shares not yet exercised. The Shares shall be issued to the Optionee as soon as practicable after the Option is
exercised in accordance with the Agreement.

 

5.
Tax Consultation. The Optionee understands that the Optionee may suffer adverse tax consequences as a result of the Optionee’s
purchase or disposition of the Shares. The Optionee represents that the Optionee has consulted with any tax consultants the Optionee
deems advisable in connection with the purchase or disposition of the Shares and that the Optionee is not relying on the Company for
any tax advice.

 

6.
Restrictive Legends and Stop-Transfer Orders.

 

(a)
Legends. The Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially
equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may
be required by the Company or by state or federal securities laws:

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

(b)
Stop-Transfer Notices. The Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company
may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its
own securities, it may make appropriate notations to the same effect in its own records.

 

(c)
Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right
to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

 

    	 

     

    

 

7.
Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and
this Exercise Notice shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Exercise Notice shall be binding upon the Optionee and his or her heirs, executors, administrators, successors
and assigns.

 

8.
Governing Law; Severability. This Exercise Notice is governed by and construed in accordance with the laws of the State of Colorado
without resort to that State’s conflict-of-laws rules.

 

9.
Entire Agreement. The Agreement is incorporated herein by reference. This Exercise Notice, the Agreement and the Investment Representation
Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all
prior undertakings and agreements of the Company and the Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and the Optionee.

 

	Submitted
    by: 	 	Accepted
    by: 
	 	 	 
	

    OPTIONEE:
    
	 

    
	

    SELECTIS
    HEALTH, INC.

	 	 	 
	

    Signature
	 

     
	By
    
	 	 	 
	 	 	 
	LANCE
    BALLER	 

     
	 

    Title

	 

    Address:
    
	 

     
	 

     

	 	 
	 

	

    
	 

     
	

	
	 
	 

	 	 	 
	 	 	Date Received

 

    	 

     

    

 

EXHIBIT
B 

 

INVESTMENT
REPRESENTATION STATEMENT 

 

	OPTIONEE:
    	 	 	 
	 

    COMPANY:
	 

     
	 

    SELECTIS
    HEALTH, INC.
	 
	 

    SECURITIES:
	 

     
	 

    COMMON
    STOCK
	 
	 

    AMOUNT:
	 

     
	 

    
	 
	 

    DATE:
	 

     
	 

    
	 

 

In
connection with the purchase of the above-listed Securities, the undersigned Optionee represents to the Company the following:

 

(a)
The Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the Securities. The Optionee is acquiring these Securities for investment
for the Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act of 1933, as amended (the “ Securities Act “).

 

(b)
The Optionee acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act
and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon,
among other things, the bona fide nature of the Optionee’s investment intent as expressed herein. In this connection, the Optionee
understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if
the Optionee’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains
period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities,
or for a period of one year or any other fixed period in the future. The Optionee further understands that the Securities must be held
indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. The
Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. The Optionee understands
that the certificate evidencing the Securities will be imprinted with any legend required under applicable state securities laws.

 

(c)
The Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance,
permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time
of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the event the
Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days
thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold,
subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being made through a broker
in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under
the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the
Company, (3) the amount of Securities being sold during any three month period not exceeding the limitations specified in Rule 144(e),
and (4) the timely filing of a Form 144, if applicable.

 

In
the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later
of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning
of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities
less than two years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

 

    	 

     

    

 

(d)
The Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration
under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding
the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that
persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or
701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales,
and that such persons and their respective brokers who participate in such transactions do so at their own risk. The Optionee understands
that no assurances can be given that any such other registration exemption will be available in such event.

 

	 	Signature of Optionee: 
	 

    
	 

    
	 
	 	 	 
	 
	

    Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]