Document:

Exhibit

Exhibit  10.2
        
[***] Indicates a portion of the exhibit has been omitted based on a request for confidential treatment submitted to the Securities and Exchange Commission. The omitted portions have been filed separately with the Commission.

This REVOLVING LOAN AND SECURITY AGREEMENT (“Agreement”) dated August 23, 2017 (the “Effective Date”), between FIRST REPUBLIC BANK (“Lender”) and HAMILTON LANE ADVISORS, L.L.C., a Pennsylvania limited liability company (“Borrower”) provides the terms on which Lender will lend to Borrower and Borrower will repay Lender.  The parties agree as follows:   
1.ACCOUNTING AND OTHER TERMS
1.1    Subject to Section 1.2, accounting terms not defined in this Agreement will be construed following GAAP and calculations and determinations must be made following GAAP.  The term “financial statements” includes the notes and schedules.  The terms “including” and “includes” always mean “including (or includes) without limitation,” in this or any Loan Document.
1.2    Notwithstanding the foregoing, if, after the date of this Agreement, there shall be a change in GAAP that would affect the calculation of any amounts included in any covenants or other provisions of this Agreement, then the parties shall negotiate in good faith an amendment to this Agreement to revise the covenant or other provision to give effect to the original intent of the parties and, until such amendment is effected, the calculation shall be based on GAAP as in effect prior to the change in GAAP and the Borrower shall provide the Lender with a reconciliation of the differences.
2.    LOAN AND TERMS OF PAYMENT
2.1    Promise to Pay.
Borrower promises to pay Lender the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions. 

2.1.1  Revolving Advances. Subject to the terms and conditions of this Agreement, Lender will make Advances to Borrower in an aggregate principal amount of up to the Revolving Line (“Facility II”).  Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement.  To obtain an Advance, Borrower shall notify Lender by delivering to Lender the Payment/Advance Form attached as Exhibit B by facsimile or electronic mail in portable document format (PDF) by 12:00 p.m. Pacific time on the Business Day before the Business Day that the Advance is to be made.  Each Payment/Advance Form will indicate whether such Advance is to be based on the Prime Rate or Index Rate.  Lender will credit Advances to Borrower’s deposit Account with Lender, as defined in Section 2.2(c).  Lender may make Advances under this Agreement based on instructions from a Designated Representative or his or her designee or without instructions if the Advances are necessary to meet Obligations that have become due, provided that Borrower may not use the proceeds of any Advances to repay principal owing to Lender.  Each request by Borrower for an Advance shall constitute a representation and warranty by Borrower to Lender that, after giving effect to that Advance, the aggregate outstanding Credit Extensions will not exceed $25,000,000 (the “Revolving Line”).  On August 21, 2020 (the “Revolving Maturity Date”), Borrower shall repay the entire principal balance of all outstanding Advances, plus accrued but unpaid interest.
2.1.2  Letters of Credit.  As part of the Revolving Line, Lender shall issue or have issued Letters of Credit for Borrower’s account of up to $2,000,000.  The aggregate amount utilized for the issuance of Letters of Credit shall at all times reduce the amount otherwise available for Advances under the Revolving Line.  Letters of Credit shall be in form and substance acceptable to Lender in its sole discretion and shall be subject to the terms and conditions of Lender’s standard Application and Letter of Credit Agreement.  If any Letter of Credit is outstanding after the Revolving Maturity Date, Borrower shall provide cash collateral to secure its obligations in connection with such Letter of Credit 

on terms acceptable to Lender.  Borrower shall execute any further documentation in connection with the Letters of Credit as Lender may reasonably request.
2.2    Interest Rate, Payments. 
(a)    Interest Rate.  Advances accrue interest on the outstanding principal balance, as set forth in the applicable Payment/Advance Form, elected by Borrower at: (a) with respect to Advances based on the Prime Rate, a floating per annum rate equal to the greater of (i) the Prime Rate minus 1.50% and (ii) 2.50%, or (b) with respect to Advances based on the Index Rate, the greater of (i) the Index Rate plus 1.50% and (ii) 2.50% (the “Note Rate”).  The interest rate increases or decreases when the Prime Rate or Index Rate, as applicable, changes.  Interest is computed on a 360 day year for the actual number of days elapsed.  On the Effective Date, Borrower shall elect to use Prime Rate or Index for the duration of this Agreement.
If Index Rate is chosen then if the Current Index on any Interest Change Date is different from the Current Index on the most recent Interest Change Date (or the Current Index on August 1, 2017), then Lender shall increase or decrease the Note Rate in accordance with this section 2.2(a) effective on each Interest Change Date.  The new Note Rate which becomes effective on each Interest Change Date shall be equal to the Current Index applicable on the Interest Change Date plus 1.50% per annum, rounded upward to the nearest 0.125%, subject to section 2.2(b) below.  
(b)    Default Rate.  After maturity or after the occurrence and during the continuance of an Event of Default, upon notice from the Lender (which notice may be retroactive to the date of the Event of Default or maturity), principal Lender Obligations accrue interest at 5 percent above the elected rate effective on the maturity date or immediately before the Event of Default, as applicable.
(c)    Automatic Payment Authorization.  Borrower authorizes Lender to make automatic deductions (“Auto Debit”) from the following deposit account (the “Account”) maintained by Borrower at Lender’s offices in order to pay, when and as due, all installment payments of interest, and/or principal, renewal, modification or other fees or payments (a “Payment”) that Borrower is required or obligated to pay Lender under the Loan Documents provided, that Lender shall notify Borrower of any amounts automatically deducted from Borrower’s Account (which notice may be delivered concurrently with any Auto Debit), and provided, further, that no Auto Debit shall be effected for any fees or payments that are not scheduled unless Borrower shall have received, prior to the making of the Auto Debit, a written invoice, which may be delivered via email, detailing the fees or payments that are due:
Account No:    
Without limiting any of the terms of the Loan Documents, Borrower acknowledges and agrees that if Borrower defaults in its obligation to make a Payment because the collected funds in the Account are insufficient to make such Payment in full on the date that such Payment is due, then Borrower shall be responsible for all late payment charges and other consequences of such default by Borrower under the terms of the Loan Documents.
(i)     Revocation of Authorization.  Subject to the Section immediately following this Section, this authorization shall continue in full force and effect until the date which is five (5) Business Days after the date on which Lender actually receives written notice from Borrower expressly revoking the authority granted to the Lender to charge the Account for Payments in connection with the Credit Extensions.  No such revocation by Borrower shall in any way release Borrower from or otherwise affect Borrower’s obligations under the Loan Documents, including Borrower’s obligations to continue to make all Payments required under the terms of the Loan Documents.
(ii)    Termination by Lender.  The Lender, at its option and in its discretion, reserves the right to terminate the arrangement for Auto Debit pursuant to this Section at any time effective upon prior written notice of such election (a “Termination Notice”) given by Lender to Borrower.  Without limiting the generality of the immediately preceding sentence, the Lender may elect to give a Termination Notice to Borrower if Borrower fails to comply with any of the Lender’s rules, regulations, or policies relating to the Account, including requirements regarding minimum balance, service charges, overdrafts, insufficient funds, uncollected funds, returned items, and limitations on withdrawals.

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(iii)    Increase in Interest Rate Upon Termination of Auto Debit.  The date on which the arrangement for Auto Debit for the Account is terminated at the election of the Borrower is referred to as the “Auto Debit Termination Date”.  Borrower acknowledges and agrees that the Lender would not have been willing to make the Credit Extensions at the interest rate or interest rates contained in the Loan Documents in the absence of the arrangement for Auto Debit from the Account pursuant to this authorization.  Therefore, if there is a termination resulting from Borrower’s revocation of the Auto Debit arrangement, effective on the first due date of a Payment following the Auto Debit Termination Date, Lender, at its option and in its discretion, shall have the right to increase the interest rate on the outstanding principal balance of the Loan Documents to a rate which is equal to one-half of one percent (0.50%) per annum (the “Percentage Rate Increase”) above the otherwise applicable interest rate from time to time under the terms of the Loan Documents.
(d)    Interest Payments.  Interest due on the Credit Extensions is payable on the 15th calendar day of each month. After an Event of Default, Lender may debit any of Borrower’s deposit accounts including the Account for principal and interest payments owing or any amounts Borrower owes Lender.  Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day.  When a payment is due on a day that is not a Business Day, the payment is due the next Business Day.
(e)     Principal Payments.  Except as provided in Section 6.7,. principal balance of all outstanding Advances shall be repaid on the Revolving Maturity Date.
(f)     Late Payments.  If any installment of interest is not paid within 10 Business Days after the date on which it is due, Borrower shall immediately pay a late charge equal to 5% of such installment to Lender to compensate the Lender for administrative costs and expenses incurred in connection with such late payment.  Borrower agrees that the actual damages suffered by Lender because of any late installment payment are extremely difficult and impracticable to ascertain, and the late charge described in this Section represents a reasonable attempt to fix such damages under the circumstances existing at the time this Agreement is executed.  Lender's acceptance of any late charge shall not constitute a waiver of any of the terms of this Agreement and shall not affect Lender's right to enforce any of its rights and remedies against any Person liable for payment of this Agreement.
2.3    Fees.  Borrower will pay:
(a)    Facility Fee.  A fully earned, non-refundable facility fee in the amount agreed upon by the Borrower and the Lender on the Effective Date; and
(b)    Lender Expenses.  Upon demand by Lender, all Lender Expenses reasonably incurred after the Effective Date.
3.    CONDITIONS OF LOANS
3.1    Conditions Precedent to Initial Credit Extension.  Lender’s obligation to make the initial Credit Extension is subject to the condition precedent that it receives, in form and substance satisfactory to Lender, such documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate, including, without limitation:  
(a)    duly executed original signatures to the Loan Documents;
(b)    certified Borrowing Resolutions of the Borrower authorizing entry into the transaction contemplated herein and in the other Loan Documents certified by a responsible officer of the Borrower as correct and complete copies thereof and in effect on the Effective Date; 
(c)    a true and complete copy of Borrower’s certificate of formation and good standing (or other similar instruments), certified by the Pennsylvania Secretary of State, and in each case certified by a responsible officer of the Borrower to be correct and complete copies thereof and in effect on the Effective Date;
(d)    fully executed Loan Disbursement Instructions;

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(e)    a legal opinion of Borrower’s legal counsel;
(f)    a true and complete copy of Borrower’s LLC Agreement certified by a responsible officer of the Borrower to be correct and complete copies thereof and in effect on the Effective Date;
(g)    payment of the fees and Lender Expenses through the Effective Date; 
(h)    a fully executed payoff letter in form and substance reasonably acceptable to the Lender; 
(i)    copies of UCC-3 termination statements terminating all existing liens on the Collateral; and
(j)    delivery of a list of the Hamilton Lane subsidiaries.
3.2    Conditions Precedent to all Credit Extensions.  Lender’s obligation to make each Credit Extension, including the initial Credit Extension, is subject to the following:
(a)    receipt of any Payment/Advance Form in accordance with Section 2.1.1;
(b)    the representations and warranties in this Agreement shall be true in all material respects on the date of the Payment/Advance Form and on the effective date of each Credit Extension (except to the extent that a representation and warranty is as of a specified date, in which case it must be true in all material respects as of the date specified), and no Event of Default may have occurred and be continuing, or result from the Credit Extension.  Each Credit Extension is Borrower’s representation and warranty on that date (or as set forth above) that the representations and warranties in this Agreement remain true in all material respects; and
(c)    since the date of the most recently delivered financial statements, no Material Adverse Change shall have occurred.
4.    CREATION OF SECURITY INTEREST
4.1    Grant of Security Interest.  Borrower grants to Lender a continuing security interest in the Collateral to secure all Lender Obligations and performance of Borrower’s duties under the Loan Documents.  Except for Permitted Liens and subject to Permitted Perfection Limitations, Borrower shall cause Lender to have a first priority security interest in the Collateral.  If this Agreement is terminated, Lender’s lien and security interest in the Collateral will continue until Borrower fully satisfies its obligations under this Agreement (other than indemnities that are unliquidated and survive termination).  If Borrower shall, at any time, acquire a commercial tort claim in excess of $500,000, Borrower shall promptly (but in any event no later than the date that the next Compliance Certificate is required to be delivered pursuant to Exhibit A) notify Lender in writing of the details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to Lender.  Borrower authorizes Lender to file financing statements with all appropriate jurisdictions as Lender deems appropriate in order to perfect or protect Lender’s interest in the Collateral.  
5.    REPRESENTATIONS AND WARRANTIES
Borrower represents and warrants as follows: 
5.1    Due Organization and Authorization.  Borrower is a limited liability company duly existing and in good standing under the laws of the Commonwealth of Pennsylvania, and qualified and licensed to do business in, and in good standing in, any jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to be qualified would not reasonably be expected to result in a Material Adverse Change.  Borrower has not changed its jurisdiction of formation or its organizational structure or type. The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower’s formation documents, nor constitute an event of default under any material agreement by which Borrower is bound.  

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Borrower is not in default under any material agreement to which or by which it is bound, except where such default would not reasonably be expected to result in a Material Adverse Change.
5.2    Charter Documents. The Charter Documents delivered to Lender as of the Effective Date are true and correct copies of all of Borrower’s formation, organizational documents and operating agreements.  The execution and delivery of the Loan Documents by the Borrower and the performance by the Borrower of its obligations under the Loan Documents are permitted by, and do not breach or conflict with any conditions or terms contained within the Charter Documents.  All necessary consents have been given, actions taken and conditions met or validly waived pursuant to the Charter Documents and the Loan Documents.  There are no restrictions in the Charter Documents on Borrower’s entering into and performing its obligations under this Agreement.
5.3    Management Agreements.  All Management Agreements respecting current Management Fees are in full force and effect.  Borrower has full power and authority to grant a first priority security interest to Lender in the Management Fees and Incentive Fees, there are no defenses to or setoffs (other than Incentive Fee claw-back provisions) against the payment of any Management Fees or Incentive Fees required for the Borrower to satisfy its obligations hereunder, and no disability or contractual obligation that would restrict Borrower from granting such security interest.
5.4    Litigation.  Except as disclosed in writing to Lender, there are no actions or proceedings pending by or against Borrower, that would reasonably be expected to result in a judgment in excess of $2,500,000.
5.5    No Material Adverse Change in Financial Statements.  All financial statements for Borrower delivered to Lender fairly present in all material respects Borrower’s financial condition and Borrower’s results of operations as of the dates specified therein.  There has not been any Material Adverse Change since the date of the most recent financial statements submitted to Lender.
5.6    Solvency.  The fair salable value of Borrower’s assets exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.  No petition has been filed with a court for the opening of a judicial liquidation, bankruptcy, suspension of payments or similar proceedings against Borrower.  Borrower has not been granted a suspension of payments or declared bankrupt or been subject to any similar procedure and Borrower has not been, or is not subject to, any liquidation proceedings.
5.7    Investments.  Borrower owns only Permitted Investments.
5.8    OFAC; Patriot Act Compliance.  Borrower is not a Person (i)  whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) who engages in any dealings or transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such Person in any manner violative of such Section 2, or (iii) who is on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order (“OFAC”).  Borrower is in compliance with the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).  No Credit Extension will be used, directly or indirectly, for payments to any governmental official or employee, political party or its officials, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.
5.9    Regulatory Compliance.  Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940.  Borrower is not engaged as one of its important activities in extending credit for margin stock, and no part of any Credit Extension shall be used to purchase or carry margin stock (as defined under Regulations of the Federal Reserve Board of Governors).  Borrower has not violated in any material respect any material laws, ordinances or governmental rules.  Borrower has timely filed all required material federal, state and local tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP.  Borrower has obtained all consents, approvals and 

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authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted, except where the failure to do so would not reasonably be expected to result in a Material Adverse Change.
5.10    Full Disclosure.  No written representation, warranty or other statement of Borrower in any certificate or written statement given to Lender contains any untrue statement of a material fact as of the time made or delivered or, taken together with all such representations, warranties and statements, omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading in light of the circumstances under which it was at the time made or delivered. 
5.11    Management Fees. Borrower represents that it is entitled to receive 100% of Management Fees and 75% of Incentive Fees from the Funds listed on Exhibit F hereto.
6.    AFFIRMATIVE COVENANTS
Borrower shall do all of the following:
6.1    Government Compliance.  (a) Maintain its legal existence and good standing in its jurisdiction of formation and (b) maintain qualification in each jurisdiction in which qualification and good standing are necessary for the conduct of Borrower’s business, and (c) will comply in all material respects with all material laws, ordinances and regulations except in the case of (b) and (c) where the failure to do so would not reasonably be expected to result in a Material Adverse Change.
6.2    Financial Statements, Reports, Certificates.  Deliver to Lender (i) a reasonably prompt report of any legal actions pending against Borrower that would reasonably be expected to result in damages or costs to Borrower of $2,500,000 or more; (ii) prompt notice of the occurrence of an Event of Default; and (iii) such other information Lender reasonably requests in writing.
6.3    Covenants.  Comply with the covenants set forth on Exhibit A.
6.4    Taxes.  Make timely payment of all material federal, state, and local taxes or assessments except where contesting the same and will deliver to Lender, on demand, appropriate certificates attesting to the payment. 
6.5    Insurance.  Keep its business insured for risks and in amounts, at customary levels.
6.6    Bank Accounts.  Maintain its primary operating and depository accounts with Lender; provided that Borrower shall have 60 days (or such longer period as the Lender may agree to) to transition such accounts.  Borrower will direct all Management Fees into the Account.  Borrower will deposit all Management Fees it receives outside of the Account into the Account within two (2) Business Days of receipt. 
6.7    Zero Balance.  During each twelve-month period starting on the Effective Date, there shall be not less than one period of at least 30 consecutive days in which the outstanding amount of Advances (exclusive of Letters of Credit) under the Revolving Line shall be Zero Dollars ($0.00).
6.8    Charter Documents; Management Agreements.  (a) Cause the Charter Documents and Management Agreements to remain in full force and effect in the form presented to Lender as of the Effective Date, except for changes that would not reasonably be expected to affect materially and adversely (i) its right or ability to receive Management Fees or Incentive Fees or the amount of Management Fees or Incentive Fees otherwise payable thereunder or (ii) its ability to satisfy its obligations under this Agreement; (b) enforce all of its material rights and obligations under the Management Agreements; and (c) cause the Funds to maintain each Partnership Agreement in full force and effect in the form presented to Lender on the Effective Date, except for amendments that do not adversely affect the right or ability (i) to pay Management Fees or Incentive Fees in the amounts otherwise payable thereunder or make or enforce Capital Calls, (ii) to receive Capital Contributions and other payments from the Partners, or (iii) to satisfy Borrower’s obligations under this Agreement.  Notwithstanding the above, Borrower may take any action 

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prohibited by this Section 6.8 so long as: (i) no Event of Default has occurred and is continuing or would result from such action, (ii) such action would not reasonably be expected to adversely affect the ability of Borrower to satisfy its obligations hereunder, and (iii) the aggregate Flexibility Actions do not exceed the Flexibility Cap at such time.
7.    NEGATIVE COVENANTS
No Borrower shall do any of the following without the consent of the Lender:
7.1    Dispositions.  Convey, transfer or otherwise dispose of any part of its business or property outside the ordinary course of its business.
7.2    Changes in Business, Management, Control.  Engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto or other business in accordance with the Charter Documents, or permit a Change in Control to occur, or dissolve, or permit any circumstance to occur that permits any Person(s) to seek the dissolution of Borrower.
7.3    Mergers or Acquisitions.  Merge or consolidate with or into any other Person, provided a Person may merge into the Borrower so long as the Borrower is the survivor and both immediately before and immediately after giving effect to such merger no Event of Default shall have occurred or be caused thereby.
7.4    Encumbrance.  (a) Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, other than Permitted Liens, or (b) agree with any Person other than Lender not to do so other than a holder of a Permitted Lien (so long as the negative pledge with such other holder does not prevent the Lender’s Lien on the Collateral unless such Collateral is in Equipment subject to a financing lease or purchase money Lien), customary anti-assignment provisions and restrictions required by applicable law to be contained in any investment advisory agreement of Borrower and other restrictions under applicable law.
7.5    Investments; Distributions.  (a) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments; or (b) pay any dividends or make any distribution or payment to its Partners or Members, as applicable, except pursuant to and in accordance with the Charter Documents, provided that no such payment or distribution (but, for the avoidance of doubt, excluding expense reimbursement and similar payments) other than tax distributions may be made at any time that an Event of Default has occurred and is continuing or would exist after giving effect to such dividend, distribution or payment.  
7.6    Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for dividends and distributions permitted hereunder, investments permitted hereunder, arrangements whereby a consolidated subsidiary serving as the general partner or manager of a client engages Borrower as an investment adviser, transactions pursuant to agreements in effect on the date hereof and transactions that are upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a nonaffiliated Person.
7.7    Charter Documents.  (a) Amend, modify or waive any provision in its Charter Documents in any way materially affecting Borrower’s ability to satisfy its obligations under this Agreement, or (b) allow any Person other than Borrower to acquire (i) the right to make Capital Calls on behalf of the Borrower or (ii) rights to receive any Capital Contributions from the Borrower’s Partners. 
7.8    Management Fees.  Permit any provision in any Charter Document or Management Agreement to be amended or waived in a way that reduces or postpones the payment of any Management Fees or Incentive Fees; direct Management Fees or Incentive Fees to any other Person; waive or defer payment of any Management Fees or Incentive Fees or permit any Affiliate to take any action with respect to Management Fees or Incentive Fees that could be reasonably likely to be adverse to Lender; provided, however, notwithstanding the above, Borrower may take any action prohibited by this Section 7.8 so long as: (i) no Event of Default has occurred and is continuing or would result from such action, (ii) such action would not reasonably be expected to adversely affect the ability of Borrower to satisfy its obligations hereunder, and (iii) the aggregate Flexibility Actions do not exceed the Flexibility Cap at such time.

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7.9    Compliance.  Become an “investment company” registered or required to be registered under the Investment Company Act of 1940 or a company controlled by an “investment company” registered or required to be registered under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; or fail to comply with, or violate in any material respect any material law or regulation. 
7.10    Affiliates.  Borrower will not permit any Affiliate to take any action with respect to the Management Fees that the Borrower is not permitted to take hereunder, provided that Borrower may permit an Affiliate to agree (a) that such Affiliate may not create, incur, or allow any Lien on any of such Affiliate’s property, or assign or convey any right to receive income, (b) to customary anti-assignment provisions and restrictions required by applicable law to be contained in any investment advisory agreement of Borrower and (c) to other restrictions under applicable law. 
8.    EVENTS OF DEFAULT
Any one of the following is an Event of Default (“Event of Default”):
8.1    Payment Default.  If Borrower fails to pay any principal or interest constituting Lender Obligations when due or any other Lender Obligations within 2 Business Day of the date the same shall be due;
8.2    Covenant Default.  
(a)    If Borrower fails to perform any obligation under Section 6, or violates any of the covenants contained in Section 7 of this Agreement, or
(b)    If Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future written agreement between Borrower and Lender and as to any default under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure such default within 10 days after Borrower becomes aware of such default;
8.3    [Reserved.]
8.4    Attachment.  If any of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is not stayed, bonded or removed in 10 Business Days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency and not paid, bonded or stayed within 10 Business Days after Borrower receives notice (but no Credit Extension will be made during the cure period); 
8.5    Insolvency.  If Borrower is not solvent or if Borrower begins an Insolvency Proceeding or an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within 60 days (but no Credit Extension will be made before any Insolvency Proceeding is dismissed);
8.6    Other Agreements.  If there is a default in any agreement between Borrower and a third party that gives the third party the right to accelerate any Indebtedness exceeding $5,000,000 or that could reasonably be expected to cause a Material Adverse Change;
8.7    Judgments.  If a money judgment(s) is rendered against the Borrower (to the extent not satisfied, bonded or stayed for 60 days (it being understood that no Credit Extension will be made before such judgment is stayed or satisfied)) and the aggregate amount of such judgment(s) (the “Judgment Amount”) is (a) less than $40,000,000 and the difference between the Judgment Amount and the amount of insurance coverage with respect thereto (if any) is greater than $5,000,000 (the “Insurance Gap”) (provided, that to the extent the Insurance Gap is less than $5,000,000, 

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the Lender shall have received proof of such insurance in form and substance reasonably acceptable to the Lender) or (b) the Judgment Amount is in excess of $40,000,000; 
8.8    Circumstances Affecting Fund or General Partner.  If any Fund fails to receive 90% of its Capital Contributions within 10 Business Days of when due; 
8.9    Misrepresentations.  If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in this Agreement or in any writing delivered to Lender or to induce Lender hereunder to enter this Agreement or any Loan Document; or
8.10    Facility I.  If an Event of Default occurs under Facility I.
9.    LENDER’S RIGHTS AND REMEDIES
9.1    General.  After the occurrence and during the continuance of an Event of Default, Lender shall have the following rights and powers and may, at its option, without notice of its election and without demand (except as provided herein or required by law), do any one or more of the following:  (i) declare any or all of the Lender Obligations to be immediately due and payable; (ii) discontinue advancing money or extending credit under this Agreement or under any other document or agreement between Lender and Borrower; (iii) obtain the appointment of a receiver to take possession of and, at the option of Lender, to collect, sell or dispose of the Collateral; or (iv) exercise any or all rights and remedies under this Agreement or any other Loan Document or applicable law, including without limitation the rights of a secured party under the Code.  Lender, at its option, may apply all payments made under this Agreement or other Loan Documents to principal, interest, fees and other Lender Expenses in such order and amounts as Lender may determine in its sole discretion.  The remedies of Lender, as provided herein, shall be cumulative and concurrent, and may be pursued singularly, successively or together, at the sole discretion of Lender, and may be exercised as often as occasion therefor shall arise.  Lender’s exercise of one right or remedy is not an election, and Lender’s waiver of any Event of Default is not a continuing waiver. Any delay by Lender in exercising any remedy is not a waiver, election, or acquiescence, and  no waiver is effective unless signed by Lender and then is only effective for the specific instance and purpose for which it was given.  Borrower shall remain liable for any deficiency, and Lender is not required to foreclose on any Collateral. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Lender on which Borrower is liable.
9.2    Rights to Payment.  After the occurrence of an Event of Default, Lender may:  (i) in Lender’s or Borrower’s name, demand, collect, receive and give receipts for any and all money and other property due or to become due in connection with the Investment Interests, including without limitation, a demand on the other parties for payment of amounts arising thereunder provided, however prior to making demand on any third parties, Lender shall provide written notice to the Borrower; and (ii) take possession of and endorse and collect any or all notes, checks, drafts, money orders, or other instruments of payment relating to the Investment Interests or any other Collateral.
9.3    Management Fees.  After the occurrence of an Event of Default, Lender may: (i) request payment of the Management Fees or Incentive Fees in accordance with the Management Agreements and Charter Documents and enforce the obligation of any Person to pay Management Fees or Incentive Fees; and (ii) collect all Management Fees or Incentive Fees owed under any of the Management Agreements or Charter Documents.  Lender may enforce such obligations and collect such amounts in its own name or that of Borrower or any Person with a right to effect such enforcement and collection directly from the parties obligated thereon and to apply the proceeds to the Lender Obligations.  
9.4    Power of Attorney.  Effective only when an Event of Default occurs and for the period it continues, Borrower irrevocably appoints Lender as its lawful attorney to:  (i) endorse Borrower’s name on any checks or other forms of payment or security; (ii) demand and collect Management Fees or Incentive Fees, and enforce any of Borrower’s rights under the Management Agreements and Charter Documents; (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for amounts and on terms Lender determines reasonable; and (v) transfer the Collateral into the name of Lender 

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or a third party as the Code permits.  Lender may exercise the power of attorney to sign Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred.  Lender’s appointment as Borrower’s attorney in fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Lender Obligations have been fully repaid and performed and Lender’s obligation to provide Credit Extensions terminates.  
10.    NOTICES.  Any notice, demand or request required under the Loan Documents shall be given in writing (at the addresses set forth below) by any of the following means:  (i) personal service; (ii) electronic communication, whether by telecopier or other form of electronic communication; (iii) overnight courier; or (iv) registered or certified, first class U.S. mail, return receipt requested, or to such other addresses as Lender and Borrower may specify from time to time in writing.  Any notice, demand or request sent pursuant to either subsection (i) or (ii) above, shall be deemed received upon such personal service or upon receipt by electronic means provided receipt at a time or on a day that is not a Business Day and between the hours of 9:00 a.m. and 5:00 p.m. (where the recipient is located) shall be deemed received on the next Business Day.  Any notice, demand or request sent pursuant to subsection (iii) above, shall be deemed received on the Business Day immediately following deposit with the overnight courier, and, if sent pursuant to subsection (iv) above, shall be deemed received forty-eight (48) hours following deposit into the U.S. mail.  The addresses are:  (a) for Lender, 111 Pine Street, San Francisco, CA  94111, Attn:  Commercial Loan Operations; and (b) for Borrower, Hamilton Lane Advisors, L.L.C., One Presidential Blvd., 4th Floor, Bala Cynwyd, PA 19004. 
11.    CHOICE OF LAW; VENUE; JURY TRIAL WAIVER AND JUDICIAL REFERENCE
The Loan Documents shall be governed by and construed in accordance with New York law.  All actions or proceedings arising in connection with the Loan Documents shall be tried and litigated only in the state courts located in the County of New York, State of New York, or the federal courts located in the Northern District of New York.  Borrower waives any right Borrower may have to assert the doctrine of forum non conveniens or to object to such venue and hereby consents to any court-ordered relief.
To the fullest extent permitted by law, Lender and Borrower waive trial by jury in any litigation or proceeding in a state or federal court with respect to, in connection with, or arising out of this Agreement or any other Loan Documents or the Lender Obligations or the transactions contemplated hereby, including without limitation claims relating to the application or the validity, protection, interpretation, collection or enforcement thereof, or any other claim or dispute (including tort and claims for breach of duty) between Lender and Borrower.  
If this jury waiver is not enforceable, then any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the New York County, New York Supreme Court). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies.  The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.
12.    GENERAL PROVISIONS
12.1    Successors and Assigns.  This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  No Borrower may assign this Agreement or any rights under it without Lender’s prior written consent which may be granted or withheld in Lender’s discretion.  Lender has the right to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Lender’s obligations, rights and benefits under this Agreement, provided that, except during the occurrence of an Event of Default, Borrower shall have the right to consent to the foregoing if such transfer is to a party that is not a commercial lender regulated by a governmental authority, which consent shall not be unreasonably withheld. In the event of an assignment, Lender, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States a copy of each assignment and a register for the recordation of the names and addresses of the assignees, and the Lender Obligations of, and principal amounts (and stated interest) of the Lender Obligations owing to, each assignee pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error.  The Register shall be available 

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for inspection by the Borrower and the Lender (or any assignee), at any reasonable time and from time to time upon reasonable prior notice.  If Lender (or any assignee) sells a participation, it shall, acting solely for this purpose as an agent of Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Lender Obligations under this Agreement or any other Loan Document (the “Participant Register”); provided, that Lender (or such assignee)  shall not have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any participant or any information relating to a participant’s interest in any Lender Obligations or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such Obligation is in registered form under Section 5f.103-1(c) of the U.S. Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and Lender (or such assignee) shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement, including payments of interest and principal, notwithstanding any notice to the contrary.  The portion of the Participant Register relating to any participant requesting payment from Borrower under the Loan Documents shall be made available to Borrower upon reasonable request.  Lender shall have no liability to any party, including but not limited to Borrower, arising from the maintenance of, or any failure to maintain, the Register or the Participant Register as provided in this Section 12.1.
12.2    Indemnification.  Borrower will indemnify, defend and hold harmless Lender and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Lender (collectively, “Indemnified Parties”) against:  (a) all obligations, demands, claims, and liabilities asserted against Lender by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Lender Expenses incurred, or paid by Lender from, following, or consequential to transactions between Lender and Borrower (including reasonable attorneys’ fees and expenses) in connection with the transactions contemplated by the Loan Documents, except in the case of (a) or (b) for obligations, demands, claims, liabilities and losses caused by Lender’s or any Indemnified Party’s gross negligence or willful misconduct and provided, that such indemnity shall not, as to any Indemnified Party, be available to the extent that obligations, demands, claims, and liabilities result from (x) such Indemnified Party’s violation of law or (y) a claim brought by Borrower against an Indemnified Party for breach of that Indemnified Party’s obligations hereunder or under any other Loan Document, if such Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This Section 12.2 shall not apply with respect to taxes other than any taxes that represent obligations, demands, claims, liabilities, and losses arising from any non-tax claim.
12.3    Time of Essence.  Time is of the essence for the performance of all obligations in this Agreement.
12.4    Severability of Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.
12.5    Amendments in Writing, Integration.  Any amendment or waiver relating to any Loan Document shall be in writing, signed by the parties thereto.  No oral statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as an amendment or waiver or have any other effect on any Loan Document.  Any waiver shall be limited to the circumstance described in it, and shall not apply to any other circumstance, or give rise to any obligation to grant any further waiver.  The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements, which merge into the Loan Documents.
12.6    Counterparts; Electronic Signatures.   This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same agreement.  A signed copy of this Agreement transmitted by a party to another party via facsimile or an emailed “pdf” version shall be binding on the signatory thereto.  Notwithstanding the delivery of the faxed or emailed copy, Borrower agrees to deliver to Lender original executed copies of this Agreement.
12.7    Survival. All covenants, representations and warranties made in this Agreement continue in full force while any Lender Obligations remain outstanding (other than indemnities which survive termination and are unliquidated).  The obligations of Borrower in Section 12.2 to indemnify Lender will survive until all statutes of limitations for actions that may be brought against Lender have run.   

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12.8    Certificates.  Whether or not expressly stated herein or in any other Loan Document, all certifications delivered, from time to time, by an officer of the Borrower in a document delivered to Lender pursuant to this Agreement or any other Loan Document shall be made by such officer in his or her capacity as an officer and not in his or her individual capacity regardless of whether the certification expressly so states.
13.    DEFINITIONS
In this Agreement:
“Account” has the meaning provided in Section  2.2(c).
“Adjusted EBITDA” means the net income of the Borrower and its consolidated subsidiaries excluding interest expenses, income tax expenses, depreciation and amortization, equity based compensation expense, other non-operating income (loss), and transaction costs and expenses related to an IPO, acquisitions and refinancings. 
“Advance” or “Advances” means a cash advance or advances under the Revolving Line.
“Affiliate” of a Person means a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, and partners and, for any Person that is a limited liability company, that Person’s managers and members, provided, however, no Fund or subsidiary shall be deemed to be an Affiliate of the Borrower.
“Auto Debit” has the meaning provided in Section  2.2(c).
“Auto Debit Termination Date” has the meaning provided in Section  2.2(c)(iii).
“Borrower's Books” means all of Borrower's books and records including ledgers, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information.
“Borrowing Resolutions” means resolutions substantially in the form attached hereto or as otherwise approved by Lender.
“Business Day” means any day that is not a Saturday, Sunday or a day on which the Lender is closed.
“Capital Call” means a request for a Capital Contribution made pursuant to a Person’s Charter Documents.
“Capital Commitment(s)” means the total amount of cash agreed to be contributed by a Person to the capital of a Fund pursuant to the Charter Documents of such Fund. 
“Capital Contribution(s)” means the sum of the cash to be contributed to the capital of a Person pursuant to one or more Capital Calls.
“Change in Control” means (i) the occurrence of any circumstance would permit any Person to seek to dissolve Borrower (excluding, for the avoidance of doubt, the rights of equity holders and the board of directors to do so pursuant to applicable law and the Charter Documents), or (ii) if Hamilton Lane Incorporated ceases to be the general partner or manager, as applicable, of Borrower. As of the Effective Date, the equity holders and the board of directors of Borrower have not taken any action in furtherance of such rights.
“Charter Documents” means the LLC Agreement of Borrower and the LLC Agreement of General Partner, and any other organizational, formation, or operational documents of a party.  

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[***] Indicates a portion of this page has been omitted based on a request for confidential treatment submitted to the Securities and Exchange Commission. The omitted portions have been filed separately with the Commission.

“Code” means the Uniform Commercial Code as adopted in the State of New York and any other state from time to time, as amended, which governs creation or perfection (and the effect thereof) of security interests in any Collateral.
“Collateral” means the property described on Exhibit C.
“Compliance Certificate” means the form attached as Exhibit D.
“Contingent Obligation” means, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 

“Credit Extension” means each Advance or any other extension of credit by Lender (including Letters of Credit) pursuant to this Agreement to or for the benefit or account of Borrower.
“Current Index” means, with respect to each Interest Change Date, the Index Rate figure most recently available as of such Interest Change Date.

“Designated Representative” means each of Persons listed on the Borrowing Resolutions.
“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States.
“Effective Date” means the date assigned in the preamble to this Agreement.
“ERISA” means the Employment Retirement Income Security Act of 1974, as amended, and its regulations. 
“Excluded Assets” has the meaning set forth on Exhibit C hereto. 
“Facility I” means the Term Loan and Security Agreement dated as of the Effective Date, between First Republic Bank, as the lender, and Hamilton Lane Advisors, L.L.C., as the borrower.
“Flexibility Action” means any action Borrower is prohibited from taking pursuant to Section 6.8 or 7.8 hereof, but for the exception for such action in the final sentence of such section.
“Flexibility Cap” means, as to Flexibility Actions taken by the Borrower, [***].
“Fund” is any Person from whom Borrower receives Management Fees or other fees for the provision of services, whether those fees are paid pursuant to such Fund’s limited partnership agreement or a Management Agreement.
“GAAP” means generally accepted accounting principles.
“General Partner” means a general partner or manager of Fund.
“Incentive Fees” means fees (including any carried interest) payable by the Funds to the Borrower or its consolidated subsidiaries, which are contingent based on the performance of the Funds’ Investment returns. 

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“Indebtedness” means (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations in respect of the foregoing. Notwithstanding the foregoing, in no event shall “Indebtedness” include any liability of a general partner of a Fund, with respect to the liabilities of such Fund.
“Index Rate” means the one (1) month London Interbank Offered Rate (LIBOR) as published in the “Money Rates” column of The Wall Street Journal.  If The Wall Street Journal publishes more than one Index, then the term “Index” shall mean the higher or highest of such indices.  If The Wall Street Journal publishes a retraction or correction of the Index, then the term “Index” shall mean the Index reported in such retraction or correction.

“Insolvency Proceeding” means any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy, insolvency or similar law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or a proceeding seeking reorganization, arrangement, or other relief.
“Interest Change Date” means the first (1st) day of August 2017 and the first (1st) day of every month thereafter until the Revolving Maturity Date.
“Investment” means any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person.
“Investment Interests” means all of Borrower’s interests in: (i) all partnerships, limited liability companies or other investment vehicles (collectively the “Funds”); (ii) all organizational agreements relating to the Funds; and (iii) all investment property, including without limitation, securities, securities entitlements, securities accounts, and financial assets.
“Lender Expenses” means all reasonable, audit fees and expenses and reasonable and documents costs and out-of-pocket expenses (including attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents for Facility I and Facility II (including any of the foregoing incurred in connection with any appeals or Insolvency Proceedings).
“Lender Obligations” are any Obligations owing to Lender hereunder and under the other Loan Documents and, as applicable in respect of Facility I, including debts, principal, interest, Lender Expenses and other amounts Borrower owes Lender now or later in respect of the Loan Documents and, as applicable Facility I, including Contingent Obligations, cash management services, letters of credit and foreign exchange contracts, if any, interest accruing after Insolvency Proceedings begin. 
“Letter of Credit” means any letter of credit issued by the Lender pursuant to Section 2.1.2.
“Lien” means a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.
“Limited Partner(s)” means those individuals or entities denominated limited partners under or by reason of a Partnership Agreement.
“LLC Agreement” means the operating agreement or limited liability company agreement of a Person that is a limited liability company.
“Loan Disbursement Instruction” means an instruction from Borrower to Lender on the application of the initial Advance which instruction shall be substantially in the form of Exhibit E. 
“Loan Documents” means, collectively, this Agreement, any note, or notes or guaranties executed by Borrower, and any other present or future written agreement between Borrower and/or for the benefit of Lender in connection with this Agreement, all as amended, extended or restated.

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“Management Agreement” is any agreement as may exist from time to time pursuant to which Management Fees and Incentive Fees are paid (but shall not include a Fund’s partnership or operating agreement).
“Management Fees” means fees (other than Incentive Fees) or rights to payment arising from all consulting, advising, investment or management services provided by, or through, Borrower or any of its Affiliates or any other Person to or for the benefit of Borrower, whether due and payable now or in the future, with respect to any Fund.
“Material Adverse Change” is (a) a material adverse change in the business, operations, or financial condition of Borrower, or (b) a material impairment of the prospect of repayment of any portion of the Obligations, or (c) a material impairment of the value of the Collateral or priority of Lender’s security interests in such Collateral.
“Member” means any Person denominated as a member under an LLC Agreement.
“Note Rate” has the meaning provided in Section  2.2(a).
“Obligations” means all liabilities that Borrower now or hereafter owes to any Person, including Contingent Obligations and Lender Obligations. 
“Partner” means any General Partner or Limited Partner under a Partnership Agreement.
“Partnership Agreement” means the limited partnership agreement of any Person that is a limited partnership.
“Payment” has the meaning provided in Section  2.2(c).
“Payment/Advance Form” means the form attached as Exhibit B.
“Percentage Rate Increase” has the meaning provided in Section  2.2(c)(iii).
“Permitted Investments” means:
(a)    Investments shown on the Schedule I and existing on the Effective Date and add-on Investments in the Persons referenced on such Schedule;
(b)    (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., and (iii) Lender’s certificates of deposit issued maturing no more than 1 year after issue; 
(c)    Investments made in accordance with the Charter Documents, including Investments in Portfolio Companies and/or share purchases / awards in accordance with Borrower’s 2017 Incentive Compensation Plan and additional direct investments in technology companies and acquisitions; 
(d)    de minimis investments in a Fund, not to exceed ten percent of the net asset value of any Fund; and
(e)    Investment of Borrower maintained with Lender or any of its affiliates.
“Permitted Liens” means: 
(a)    Liens existing on the Effective Date and shown on Schedule I or arising under this Agreement or other Loan Documents;
(b)    Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its books, if they have no priority over any of Lender’s security interests;

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(c)    Purchase money Liens and capital or financing leases (i) on equipment acquired or held by Borrower incurred for financing the acquisition or lease of the equipment, or (ii) existing on equipment when acquired or leased (or a reasonable time thereafter), if the Lien is confined to the property and improvements and the proceeds of the equipment;
(d)    Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.
(e)     customary set off rights of depositary institutions and securities intermediaries with respect to accounts maintained with them; 
(f)    Liens arising out of judgments that do not constitute an Event of Default so long as the holder thereof has taken no steps to exercise remedies against such Lien other than the filing of the same of record; and
(g)     Liens created under this Agreement or other Loan Documents.
“Permitted Perfection Limitations” means any of the following: no action must be taken under any law other than the laws of the United States or any State thereof; no landlord waivers or consents of any parties to leases, licenses, rights or contracts must be obtained; and no leasehold mortgages must be granted.
“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.
“Portfolio Company” means any Person in which Borrower has an interest.
“Prime Rate” means the “prime rate” that appears in the Western Edition of The Wall Street Journal on any date.  Such rate may not be Lender’s lowest rate.
“Revolving Line” has the meaning provided in Section  2.1.1. 
“Revolving Maturity Date” is specified in Section 2.1.1.
“Separate Account” means an account established for a single client or group of legally related clients.
“Specialized Management Fees” means any fees (other than Incentive Fees) earned by the Borrower from funds established by it.
“Tangible Net Worth” means the total member’s equity minus non-controlling interests in general partnerships.

“Termination Notice” has the meaning provided in Section  2.2(c)(ii).

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[SIGNATURE PAGE FOLLOWS.] 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date. 
BORROWER:
HAMILTON LANE ADVISORS, L.L.C.
By: /s/ Randy Stilman
Name: Randy Stilman
Title: Chief Financial Officer

LENDER:
FIRST REPUBLIC BANK
By: /s/ Derrick Cornelious
Name: Derrick Cornelious
Title: Vice President

EXHIBIT A

1.    Financial Statements.  Borrower shall deliver to Lender annual financial statements (including balance sheet and income statements) within ninety (90) days after the end of each of Borrower’s fiscal years, which financial statements shall be audited by Ernst & Young LLP or other independent certified public accountant reasonably acceptable to Lender.
2.    Financial Statements.   Borrower shall deliver to Lender annual financial statements (including balance sheet and income statements) within one hundred eighty (180) days after the end of each Fund’s fiscal years for such Fund, which financial statements shall be audited by an independent certified public accountant reasonably acceptable to Lender.
3.    Interim Financial Statements.  Borrower shall deliver to Lender company-prepared quarterly financial statements (including balance sheet and income statements) within forty-five (45) days after the end of each quarter referenced below certified by Borrower’s chief financial officer or another officer or representative acceptable to Lender.  Quarterly financials shall be delivered for the first three (3) fiscal quarters.
4.    Compliance Certificate.  Within forty-five (45) days after the end of the first three (3) fiscal quarters and  ninety (90) days after the end of each of Borrower’s fiscal years, deliver to Lender a Compliance Certificate signed by a Designated Representative in the form of Exhibit D. 
5.    Other Financial Statements.  Upon filing of any financial statements or reporting as required to be publicly filed by Borrower, a copy of such financial statement or reporting.
6.    Flexibility Actions.  Borrower shall give written notice to Lender of any Flexibility Action promptly after such Flexibility Action is taken.  Any Flexibility Action taken by Borrower will be deemed a representation by Borrower that the conditions precedent therefore were satisfied.
7.    Minimum Annual Management Fees.  Borrower shall receive, on a consolidated basis, Fund Management Fees of not less than $150,000,000, including $130,000,000 from Separate Account and Specialized Fund Management Fees, in each of Borrower’s fiscal years commencing with fiscal year 2017, which ends March 31, 2018.
8.    Minimum Adjusted EBITDA.  Borrower shall maintain at least a minimum trailing six month Adjusted EBITDA minus dividend distributions (other than tax distributions) equal to or greater than $12,500,000, tested semi-annually.
9.    Minimum Tangible Net Worth.  Minimum Tangible Net Worth shall be greater than or equal to the amount set forth in the column “Tangible Net Worth” as at the end of the applicable fiscal year.
	
		
	Fiscal year 1
	Tangible Net Worth

	2017
	$25,000,000

	2018
	$31,800,000

	2019
	$39,700,000

	2020
	$49,600,000

	2021
	$62,000,000

	2022
	$77,500,000

	2023
	$96,900,000

	2024
	$121,100,000

	
	
	 

1 Borrower’s fiscal year ends each March 31st.  Thus, fiscal year 2017’s Tangible Net Worth test of greater than or equal to $25,000,000 covers the Tangible Net Worth for the period from March 31, 2017 until March 30, 2018.

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10.    No Additional Indebtedness.  Without the prior written consent of Lender, Borrower (a) shall not directly or indirectly incur indebtedness for borrowed money excluding (i) debts as of the date of this Agreement that were previously disclosed in writing to Lender (other than those that are being paid substantially concurrently with the funding of the Loan), (ii) other borrowing from Lender, including for the avoidance of doubt Facility I, (iii) unsecured debt incurred in the normal course of business and (iv) purchase money debt and capital leases in the ordinary course of business, and (b) shall not directly or indirectly make, create, incur, assume or permit to exist any guaranty of any kind of any Indebtedness of any other person during the term of this Agreement, excluding any guaranties as of the date of this Agreement previously disclosed in writing to Lender.
11.    Notification of Transfers.  Borrower shall notify Lender within 30 days of any transfer of Partner’s interests in any Funds whose Capital Commitment is greater than $10,000,000.

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT B
LOAN PAYMENT/ADVANCE REQUEST FORM
Deadline for next business day processing is Noon Pacific Time

Fax To:      Date: _____________________

BORROWER:      

LOAN PAYMENT:

From Account #________________________________    To Account ______________________________________
(Deposit Account #)                    (Loan Account #)

Principal $___________________________    and/or Interest $_____________________________________________

Authorized Signature:            Phone Number:     

Print Name/Title:                 

LOAN ADVANCE:

From Account #________________________________    To Account ______________________________________
(Loan Account #)                        (Deposit Account #)

Amount of Advance $___________________________

Prime Rate or Index Rate2: __________________________
All Borrower’s representations and warranties in the Agreement are true, correct and complete in all material respects on the date of the request for an Advance.

Authorized Signature:            Phone Number:     

Print Name/Title:                 

	
	
	 

2 Prime Rate or Index Rate as determined by Borrower on the Effective Date.

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT C
COLLATERAL DESCRIPTION

The Collateral consists of all of Borrower’s personal property now owned or hereafter acquired, including without limitation all equipment, contract rights, intellectual property, general intangibles, commercial tort claims, accounts, Management Fees, Incentive Fees, inventory, documents, cash, instruments, deposit accounts, securities, securities entitlements, securities accounts, Account, investment property, financial assets, letters of credit, letter of credit rights, certificates of deposit, instruments and chattel paper and electronic chattel paper; all Borrower's Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds thereof, provided, however, Collateral shall exclude Excluded Assets.

Notwithstanding the foregoing, in no event shall the Collateral include or the security interest granted under this Agreement attach to any of the following (“Excluded Assets”)  (a) any lease, license, contract or agreement to which Borrower is a party, and any of its rights or interest thereunder, if and to the extent that a security interest is prohibited by or in violation of (i) any law, rule or regulation applicable to the Borrower or (ii) a term, provision or condition of any such lease, license, contract or agreement (unless such law, rule, regulation, term, provision or condition would be rendered ineffective with respect to the creation of the security interest hereunder pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided, however, that the Collateral shall include (and such security interest shall attach) immediately at such time as the contractual or legal prohibition shall no longer be applicable and to the extent severable, shall attach immediately to any portion of such lease, license, contract or agreement not subject to the prohibitions specified in (i) or (ii) above; provided further that the exclusions referred to in clause (a) of this paragraph shall not include any Proceeds of any such lease, license, contract or agreement; (b) in the case of a foreign subsidiary that is treated as a “controlled foreign corporation” for U.S. federal income tax purposes, any of the outstanding capital stock of such foreign subsidiary entitled to vote representing in excess of 65% of the voting power of all classes of capital stock of such foreign subsidiary entitled to vote, so long as a pledge in excess of 65% of the voting power of such foreign subsidiary would result in adverse tax consequences to Borrower or its beneficial owners under Section 956 of the Internal Revenue Code (or any successor provision); provided that immediately upon the amendment of the Internal Revenue Code to allow the pledge of a greater percentage of the voting power of capital stock in a foreign subsidiary without adverse tax consequences, the Collateral shall include, and the security interest granted by the Borrower shall attach to, such greater percentage of capital stock of each foreign subsidiary; and provided, further, that in no event shall the Collateral include capital stock of a foreign subsidiary or controlled foreign corporation to the extent that the grant of a security interest therein would require the approval of, or consultation with, a local securities regulator or other regulatory or governmental authority, or otherwise result in any burdensome undertaking or obligation by the Borrower, pursuant to local law or otherwise; (c) any margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) ; (d) for avoidance of doubt, equity interests, general partnership interests or assets of Funds, including any assets of a Fund held by Borrower or any assets of Borrower , to the extent the grant of a security interest therein would violate or otherwise result in a default under any organizational or governing document of any Fund or the general partner thereof; (e) any rights or interests in Funds required or deemed necessary to be held by Borrower pursuant to the terms of the applicable Fund organizational documents, any related agreement or applicable law, rule or regulation; (f) equity interests, including general partnership interests, in any joint venture or other non-wholly owned subsidiary to the extent the grant of a security interest therein would violate or otherwise result in a default under any organizational document, governing document or agreement among equity holders of such joint venture or non-wholly owned subsidiary or require the consent of any other equity holder thereof or other third party (unless (x) such document, agreement or requirement of a consent would be rendered ineffective with respect to the creation of the security interest hereunder pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity, and (y) no adverse consequence to the Borrower under such organizational document, governing document or agreement among equity holders would result from such grant of security); (g) any “intent-to-use” application for registration of a Trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act or an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act with respect thereto, solely to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration that issues from such intent-to-use application under applicable federal law; or (h) 

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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those assets as to which the Lender and Borrower reasonably agree in writing that the cost of obtaining such a security interest or perfection thereof is excessive in relation to the benefit to the Lender of the security to be afforded thereby.

2
LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT D
COMPLIANCE CERTIFICATE
TO:        First Republic Bank                    Date:              

FROM:      Hamilton Lane Advisors, L.L.C. 
The undersigned authorized officer certifies on behalf of all Borrower that under the terms and conditions of the Revolving Loan and Security Agreement between Borrower and Lender (the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below;.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no Credit Extensions may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.
	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	Internally prepared financial statement
	Quarterly within 45 days (other than Q4)
	Yes   No

	Annual financial statement (Borrower)
	FYE within 90 days
	Yes   No

	Annual financial statement (Funds)
	FYE within 180 days
	Yes   No

	Partnership interest transfer (>$10,000,000)
	Within 30 days from transfer
	Yes   No

	List of Capital Contributions delinquent for more than 30 days (>$1,000,000)
	Immediately
	Yes   No

	Compliance certificate
	[Annually][Quarterly] within [90][45] days
	Yes   No

	Flexibility Action taken?  Yes   No
	If Yes, provide amount:: $[__________]
	Under Flexibility Cap? Yes   No

	
				
	Financial Covenant
	Required
	Actual
	Complies

	Minimum Annual Management Fees
	$150,000,000
	$_____
	Yes    No

	No Additional Debt
	None
	$_____
	Yes    No

	Minimum Adjusted EBITDA
	$12,500,000
	$_____
	Yes    No

	Minimum Tangible Net Worth
	$_____
	$_____
	Yes    No

------------------------------------------------------------------------------------------------------------------------------

HAMILTON LANE ADVISORS, L.L.C.
    
By: __________________________________
    
Name:________________________________
    
Title: ________________________________

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT E
LOAN DISBURSEMENT INSTRUCTIONS
(Just In Time)
These Loan Disbursement Instructions (the “Instructions”), dated [DATE] for reference purposes only, are executed by HAMILTON LANE ADVISORS, L.L.C. (the “Borrower”), to First Republic Bank (the “Lender”), with reference to the following facts:
Borrower has requested a loan or loans from the Lender in the total principal amount of [LOAN AMOUNT] (collectively, the “Loan”). 
Borrower desires to authorize the Lender to close the Loan in accordance with these Instructions and the other documents executed by Borrower and delivered to the Lender at the Lender's request in connection with the Loan (collectively, the “Loan Documents”).
THEREFORE, Borrower agrees and instructs the Lender as follows:
Allocation of Loan Proceeds.  At the Closing, the Loan proceeds shall be disbursed in accordance with the Loan Disbursement Schedule attached as Exhibit E-1 to these Instructions (the “Loan Disbursement Schedule”).
Disbursements for Closing and Additional Costs.  Upon closing the Loan, Borrower authorizes Lender to disburse funds from the Loan proceeds for payment of those items shown in the Loan Disbursement Schedule as “Closing Disbursements” (collectively, the “Closing Disbursements”). All proceeds of the Loan remaining after the disbursement of the Closing Disbursements shall be disbursed and made available to Borrower pursuant to the terms of the Loan Documents. Borrower acknowledges that certain of the costs and charges shown in the Loan Disbursement Schedule are estimates, and that the actual Closing Disbursements may vary from the estimates shown in the Loan Disbursement Schedule. If for any reason the Loan proceeds allocated for the Closing Disbursements as shown in the Loan Disbursement Schedule are insufficient to pay the actual cost of all such items, Lender, at its option, shall have the right to either (a) require Borrower to immediately deposit with Lender an amount necessary to cover such deficiency, as determined by Lender; or (b) disburse an amount necessary to cover such deficiency, as determined by Lender, from the portion, if any, of the Loan proceeds otherwise remaining or from Borrower’s checking account with Lender. Any disbursements of the proceeds of the Loan which are to be paid to third parties under the terms of these Instructions may be disbursed by Lender by such method as  Lender may designate, including disbursement by Lender's check or by wire transfer.
Counterparts.  These Instructions may be executed in counterparts, each of which shall constitute an original, and all of which shall constitute one and the same document.
BORROWER: 
 
HAMILTON LANE ADVISORS, L.L.C.

By:                       

Name:                     

Title:                      

ACCEPTED AND AGREED: 
 
First Republic Bank 
 
By:                       

Name:                     

Title:                      

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT E - 1
Loan Disbursement Instructions
LOAN DISBURSEMENT SCHEDULE
	
			
	ITEM
	DEBITS
	CREDITS

	Loan Amount
	 
	[   ]

	CLOSING DISBURSEMENTS:

	Loan Fee**
	[   ]
	 

	Legal Fee**
	TBD
	 

	BALANCE OF LOAN PROCEEDS AVAILABLE TO BE DISBURSED PER LOAN DOCUMENTS:

	Balance of Loan Proceeds Available to be Disbursed in Accordance with Loan Documents:
	[   ]
	 

	Total (Debits) and Credits
	[   ]
	[   ]

**Fees to be debited from Account number _____________.

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT F
LIST OF FUNDS

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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EXHIBIT 21

SUBSIDIARIES OF REGISTRANT

The following table lists the direct and indirect subsidiaries of Hamilton Lane Incorporated as of June 26, 2017.

	
		
	Name of Subsidiary
	Jurisdiction/State of Incorporation

	Alpha Z GP LLC
	Delaware

	Alpha Z II GP LLC
	Delaware

	Alpha Z Private Equity Fund II, LP
	Cayman Islands

	Alpha Z Private Equity Fund, LP
	Cayman Islands

	AUSPE Fund GP LLC
	Delaware

	AUSPE Fund L.P.
	Cayman Islands

	Capital Yuan Tao Associates, L.P.
	Cayman Islands

	Capital Yuan Tao GP, LLC
	Delaware

	COPTL, LP
	Delaware

	CT Private Investments GP LLC
	Delaware

	CT Private Investments LP
	Delaware

	Epsilon Investment GP LLC
	Delaware

	Epsilon Pension Investment Canada LP
	Cayman islands

	Finance Street AIV Splitter L.P.
	Delaware

	Finance Street GP LLC
	Delaware

	Finance Street, LP
	Cayman Islands

	First Stockholm Global Private  Equity L.P.
	Delaware

	Florida Growth Fund II LLC
	Delaware

	Florida Growth Fund LLC
	Delaware

	Fourth Stockholm Co-Investment Blocker LP
	Cayman Islands

	Fourth Stockholm Co-Investment SPV L.P.
	Delaware

	Fourth Stockholm Global Private  Equity L.P.
	Delaware

	Fourth Stockholm Pyramid Blocker Corp.
	Delaware

	Golden State Investment Fund LLC
	Delaware

	Green Core Fund L.P.
	Cayman Islands

	Green Core GP LLC
	Delaware

	Hamilton Lane (Australia) Pty Limited
	Australia

	Hamilton Lane (Hong Kong) Limited
	Hong Kong

	Hamilton Lane (Israel) Limited
	Israel

	Hamilton Lane (Japan) GK
	Japan

	Hamilton Lane (UK) Limited
	United Kingdom

	Hamilton Lane Advisors, Inc.
	Pennsylvania

	Hamilton Lane Advisors, L.L.C.
	Pennsylvania

	Hamilton Lane AIFM LTD
	United Kingdom

	Hamilton Lane Amitim US Fund RH  Blocker LP
	Delaware

	Hamilton Lane Brasil Fundo de Investmento em Quotas de Fundo de    Investimento Multimercado
	Brazil

	Hamilton Lane Capital Opportunities Fund LP
	Delaware

	Hamilton Lane CI2 AIV-A LP
	Delaware

	Hamilton Lane CI2 AIV-B LP
	Delaware

	Hamilton Lane CI2 AIV-C  LP
	Delaware

	Hamilton Lane CI2 Offshore SIV-A L.P.
	Cayman Islands

	Hamilton Lane Co-Investment Feeder Fund III LP
	Delaware

	Hamilton Lane Co-Investment Feeder Fund  IV LP
	Cayman Islands

	Hamilton Lane Co-Investment Feeder Fund  IV LP
	Cayman Islands

	Hamilton Lane Co-Investment Fund II CH DE  Blocker L.P.
	Delaware

	Hamilton Lane Co-Investment Fund II  Holdings LP
	Delaware

	Hamilton Lane Co-Investment Fund  II L.P.
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-2 LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-3 LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-4 LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-5 LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-6   JJ LP
	Delaware

	Hamilton Lane Co-Investment Fund III (U.S.) Blocker-7 WWEX LP
	Delaware

	Hamilton Lane Co-Investment Fund III Cayman Blocker-2 LP
	Cayman Islands

	Hamilton Lane Co-Investment Fund III  Holdings LP
	Delaware

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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	Hamilton Lane Co-Investment Fund III Holdings-2 LP
	Delaware

	Hamilton Lane Co-Investment Fund III LP
	Delaware

	Hamilton Lane Co-Investment Fund IV  Holdings LP
	Delaware

	Hamilton Lane Co-Investment Fund IV  Holdings-2 LP
	Delaware

	Hamilton Lane Co-Investment Fund IV LP
	Delaware

	Hamilton Lane Co-Investment Fund, LP
	Delaware

	Hamilton Lane Co-Investment GP II LLC
	Delaware

	Hamilton Lane Co-Investment GP III LLC
	Delaware

	Hamilton Lane Co-Investment GP  IV LLC
	Delaware

	Hamilton Lane Co-Investment GP, LLC
	Delaware

	Hamilton Lane Co-Investment Offshore Fund II L.P
	Cayman Islands

	Hamilton Lane Co-Investment Offshore Fund IV LP
	Cayman Islands

	Hamilton Lane Co-Investment Offshore  Fund L.P.
	Cayman Islands

	Hamilton Lane COPTL, LLC
	Pennsylvania

	Hamilton Lane European Investors SCA SICAV-RAIF
	Luxembourg

	Hamilton Lane European Investors SCA SICAV-RAIF - CI IV Parallel Sub-Fund
	Luxembourg

	Hamilton Lane European Investors SCA SICAV-RAIF - PEF X Parallel Sub-Fund
	Luxembourg

	Hamilton Lane European Partners SICAV-SIF
	Luxembourg

	Hamilton Lane European Partners SICAV-SIF CI-III Parallel Sub-Fund
	Luxembourg

	Hamilton Lane European Partners SICAV-SIF PEF IX Parallel Sub-Fund
	Luxembourg

	Hamilton Lane Fundo de Investmento em Participacoes Co-Investimento
	Brazil  Hamilton Lane Fundo de Investmento em Quotas de Fundos de Investimento em Participacoes

	Hamilton Lane GP IX, LLC
	Delaware

	Hamilton Lane GP S.à r.l.
	Luxembourg

	Hamilton Lane GP VI, LLC
	Delaware

	Hamilton Lane GP VII, LLC
	Delaware

	Hamilton Lane GP VIII, LLC
	Delaware

	Hamilton Lane GP X LLC
	Delaware

	Hamilton Lane Investimentos Ltda.
	Brazil

	Hamilton Lane Investment Holdings, LLC
	Delaware

	Hamilton Lane Investors GP LLC
	Delaware

	Hamilton Lane Investors LP
	Delaware

	Hamilton Lane Investors LP,  Series HA-P
	Delaware

	Hamilton Lane Investors LP,  Series PN-P
	Delaware

	Hamilton Lane Investors LP,  Series PT
	Delaware

	Hamilton Lane Investors LP,  Series RD-P
	Delaware

	Hamilton Lane Investors LP, Series VR-P
	Delaware

	Hamilton Lane IX GP LLC
	Delaware

	Hamilton Lane Market Street Opportunities Fund LP
	Delaware

	Hamilton Lane Market Street Opportunities Offshore Fund LP
	Cayman Islands

	Hamilton Lane New York Co-Investment II, LLC
	Delaware

	Hamilton Lane New York Co-Investment III, LLC
	Delaware

	Hamilton Lane New York Co-Investment, LLC
	Delaware

	Hamilton Lane New York II, LLC
	Delaware

	Hamilton Lane New York LLC
	Pennsylvania

	Hamilton Lane NM Fund I LP
	Delaware

	Hamilton Lane Parallel Investors (AS) LP, Series AS
	Delaware

	Hamilton Lane Parallel Investors LP,  Series HA
	Cayman Islands

	Hamilton Lane Parallel Investors LP,  Series PN
	Cayman Islands

	Hamilton Lane Parallel Investors LP,  Series RD
	Cayman Islands

	Hamilton Lane Parallel Investors LP, Series VR
	Cayman Islands

	Hamilton Lane Parallel Investors, LP
	Delaware

	Hamilton Lane PMOF PH DE Blocker LP
	Delaware

	Hamilton Lane Private Equity Feeder Fund S.C.A. SICAV-SIF
	Luxembourg

	Hamilton Lane Private Equity Feeder Fund S.C.A. SICAV-SIF
	 

	HL PE Fund VII Series A Sub-Fund
	Luxembourg

	Hamilton Lane Private Equity Feeder Fund S.C.A. SICAV-SIF
	 

	HL PE Fund VII Series B Sub-Fund
	Luxembourg

	Hamilton Lane Private Equity Fund For the Benefit of  Marco
	 

	Consulting Group Clients, LP
	Delaware

	Hamilton Lane Private Equity Fund  IV, LP
	Guernsey

	Hamilton Lane Private Equity Fund IX DE Blocker 1 LP
	Delaware

	Hamilton Lane Private Equity Fund IX  Holdings LP
	Delaware

	Hamilton Lane Private Equity Fund IX LP
	Delaware

	Hamilton Lane Private Equity  Fund plc
	Ireland

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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	Hamilton Lane Private Equity Fund  V, LP
	Guernsey

	Hamilton Lane Private Equity Fund  VI LP
	Delaware

	Hamilton Lane Private Equity Fund VII L.P., Series A
	Delaware

	Hamilton Lane Private Equity Fund VII L.P., Series B
	Delaware

	Hamilton Lane Private Equity Fund VIII LP, Global Series
	Delaware

	Hamilton Lane Private Equity Fund X LP
	Delaware

	Hamilton Lane Private Equity Offshore Fund IX LP
	Cayman Islands

	Hamilton Lane Private Equity Offshore Fund  VI LP
	Cayman Islands

	Hamilton Lane Private Equity Offshore Fund VII, LP,  Series A
	Cayman Islands

	Hamilton Lane Private Equity Offshore Fund VII, LP, Series B
	Cayman Islands

	Hamilton Lane Private Equity Offshore Fund  VIII LP
	Cayman Islands

	Hamilton Lane Private Equity Offshore Fund X LP
	Cayman Islands

	Hamilton Lane Private Equity Partners LP
	British Virgin Islands

	Hamilton Lane Private Markets Opportunity Feeder Fund (Fund-of-Funds   Series) LP
	 

	Hamilton Lane Secondary Feeder Fund IV-A LP
	Delaware

	Hamilton Lane Secondary Feeder Fund IV-B LP
	Cayman Islands

	Hamilton Lane Secondary Fund II GP LLC
	Delaware

	Hamilton Lane Secondary Fund II LP
	Delaware

	Hamilton Lane Secondary Fund III GP LLC
	Delaware

	Hamilton Lane Secondary Fund III LP
	Delaware

	Hamilton Lane Secondary Fund III-A  Blocker LP
	Delaware

	Hamilton Lane Secondary Fund III-A Cayman Blocker L.P.
	Cayman Islands

	Hamilton Lane Secondary Fund III-A LP
	Delaware

	Hamilton Lane Secondary Fund III-B  Blocker LP
	Delaware

	Hamilton Lane Secondary Fund III-B Cayman  Blocker L.P.
	Cayman Islands

	Hamilton Lane Secondary Fund III-B LP
	Delaware

	Hamilton Lane Secondary Fund IV GP LLC
	Delaware

	Hamilton Lane Secondary Fund IV LP
	Delaware

	Hamilton Lane Secondary Fund IV-EU LP
	United Kingdom

	Hamilton Lane Secondary Fund, LP
	Delaware

	Hamilton Lane Secondary Fund, LP, Series A
	Delaware

	Hamilton Lane Secondary Fund, LP, Series B
	Delaware

	Hamilton Lane Secondary Fund, LP, Series C
	Delaware

	Hamilton Lane Secondary Fund, LP, Series D
	Delaware

	Hamilton Lane Secondary Fund, LP, Series E
	Delaware

	Hamilton Lane Secondary GP, LLC
	Delaware

	Hamilton Lane Secondary Offshore Fund  II L.P.
	Cayman Islands

	Hamilton Lane Securities, LLC
	Delaware

	Hamilton Lane SF2 AIV-A Inc.
	Delaware

	Hamilton Lane SF2 AIV-A LP
	Delaware

	Hamilton Lane SF2 GP Nominee  Holdco Inc.
	Delaware

	Hamilton Lane SF2 Offshore AIV-A LP
	Cayman Islands

	Hamilton Lane SMID Fund, L.P.
	Delaware

	Hamilton Lane SOMPO Investments Ltd.
	Cayman Islands

	Hamilton Lane SPV GP LLC
	Delaware

	Hamilton Lane Strategic Opportunities 2015 Fund LP
	Delaware

	Hamilton Lane Strategic Opportunities 2015  GP LLC
	Delaware

	Hamilton Lane Strategic Opportunities 2015 Offshore Fund LP
	Cayman Islands

	Hamilton Lane Strategic Opportunities 2016 Fund LP
	Delaware

	Hamilton Lane Strategic Opportunities 2016  GP LLC
	Delaware

	Hamilton Lane Strategic Opportunities 2016 Offshore Fund LP
	Cayman Islands

	Hamilton Lane Strategic Opportunities 2017 Fund  Holdings LP
	Delaware

	Hamilton Lane Strategic Opportunities 2017 Fund LP
	Delaware

	Hamilton Lane Strategic Opportunities 2017 Fund PH DE Blocker LP
	Delaware

	Hamilton Lane Strategic Opportunities 2017  Fund S.C.S.
	Luxembourg

	Hamilton Lane Strategic Opportunities 2017  GP LLC
	Delaware

	Hamilton Lane Strategic Opportunities 2017 GP  S.à r.l.
	Luxembourg

	Hamilton Lane Strategic Opportunities 2017 Offshore Fund LP
	Cayman Islands

	Hamilton Lane Venture Capital Fund GP, LLC
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2009
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2010
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2011
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2012
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2013
	Delaware

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
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	Hamilton Lane Venture Capital Fund LP, Series 2014
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2015
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2016
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series 2017
	Delaware

	Hamilton Lane Venture Capital Fund LP, Series CL
	Delaware

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2009
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2010
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2011
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2012
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2013
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2014
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2015
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2016
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series 2017
	Cayman Islands

	Hamilton Lane Venture Capital Offshore Fund LP, Series CL
	Cayman Islands

	Hamilton Lane/BNP CI AIV-A UK LP
	United Kingdom

	Hamilton Lane/BNP CI AIV-B UK LP
	United Kingdom

	Hamilton Lane/BNP CI AIV-C UK LP
	United Kingdom

	Hamilton Lane/BNP Co-Investment Vehicle  UK LP
	United Kingdom

	Hamilton Lane/BNP Co-Investment Fund GenPar  GP LLC
	Delaware

	Hamilton Lane/BNP Co-Investment Fund  GP LP
	Delaware

	Hamilton Lane-Carpenters Partnership Fund II L.P
	Delaware

	Hamilton Lane-Carpenters Partnership Fund  III L.P.
	Delaware

	Hamilton Lane-Carpenters Partnership Fund  IV L.P.
	Delaware

	Hamilton Lane-Carpenters Partnership  Fund, L.P.
	Delaware

	HL Account Management LLC
	Delaware

	HL Amitim GP LLC
	Delaware

	HL Amitim US LP
	Delaware

	HL AP7 Manager LLC
	Delaware

	HL/BNP Co-Investment Vehicle UK GP LLP
	United Kingdom

	HL Capital Opportunities GP LLC
	Delaware

	HL EMD LLC
	Delaware

	HL European Partners GP S.à r.l.
	Luxembourg

	HL Evergreen Secondary Fund GP LLC
	Delaware

	HL Florida Growth LLC
	Delaware

	HL General Partner V Limited
	Pennsylvania

	HL Global SMID GP LLC
	Delaware

	HL Golden State, LLC
	Delaware

	HL International Clal DE  Blocker LP
	Delaware

	HL International Clal Feeder LP
	Cayman Islands

	HL International Clal SMID Feeder LP
	Cayman Islands

	HL International Investors (Series H1  Feeder) LP
	Cayman Islands

	HL International Investors (Series H1  Feeder-A) LLC
	Delaware

	HL International Investors (Series H2  Feeder LP
	Cayman Islands

	HL International Investors (Series I  Feeder) LP
	Cayman Islands

	HL International Investors GP LLC
	Delaware

	HL International Investors LP
	Delaware

	HL International Investors LP, Secondary  Opportunities Series
	Delaware

	HL International Investors LP,  Series A
	Delaware

	HL International Investors LP, Series B
	Delaware

	HL International Investors LP, Series C
	Delaware

	HL International Investors LP,  Series D
	Delaware

	HL International Investors LP,  Series E
	Delaware

	HL International Investors LP,  Series F
	Delaware

	HL International Investors LP, Series G
	Delaware

	HL International Investors LP,  Series H
	Delaware

	HL International Investors LP,  Series H1
	Delaware

	HL International Investors LP,  Series H2
	Delaware

	HL International Investors LP,  Series H3
	Delaware

	HL International Investors LP,  Series I
	Delaware

	HL International Investors LP,  Series J
	Delaware

	HL International Investors LP,  Series K
	Delaware

	HL International Investors LP,  Series L
	Delaware

	HL International Investors LP,  Series M
	Delaware

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
 USActive 37187036.11
89908444.1

	
		
	HL International Investors LP,  Series N
	Delaware

	HL International Investors LP,  Series O
	Delaware

	HL International Investors LP,  Series P
	Delaware

	HL Large Buyout Club Fund GP S.à.r.l.
	 

	HL Large Club Buyout Fund SCS
	Luxembourg

	HL Large Club Buyout Fund SCS
	Luxembourg

	HL Management Investors, LLC
	Delaware

	HL Market Street GP LLC
	Delaware

	HL Miras Secondary Fund LP
	Cayman Islands

	HL Multi Co-Invest S.à r.l.
	Luxembourg

	HL MVPE16 GP LLC
	Delaware

	HL Nevada Fund Manager, LLC
	Delaware

	HL Newco 1 Cayman Fund LP
	Cayman Islands

	HL Newco 1 GP LLC
	Delaware

	HL Newco 3 Fund LP
	Delaware

	HL Newco 3 GP LLC
	Delaware

	HL Newco 4 GP LLC
	Delaware

	HL NM Fund I GP LLC
	Delaware

	HL NPS Co-Investment Fund III Cayman  Blocker LP
	Cayman Islands

	HL NPS Co-Investment Fund LP
	Delaware

	HL NPS Co-Investment GP LLC
	Delaware

	HL NPS Co-Investment Master  Fund LP
	Delaware

	HL Offshore Holdings GP, LLC
	Delaware

	HL Offshore Holdings, LP
	Cayman Islands

	HL Parallel Investors Cayman Blocker (Series  HA) LP
	Cayman Islands

	HL Parallel Investors Cayman Blocker (Series  PN) LP
	Cayman Islands

	HL Parallel Investors Cayman Blocker (Series  RD) LP
	Cayman Islands

	HL Parallel Investors Cayman Blocker (Series VR) LP
	Cayman Islands

	HL Parallel Investors Delaware Blocker (Series HA) LP
	Delaware

	HL Parallel Investors Delaware Blocker (Series  PN) LP
	Delaware

	HL Parallel Investors Delaware Blocker (Series RD) LP
	Delaware

	HL Parallel Investors Delaware Blocker (Series VR) LP
	Delaware

	HL PE Fund for the Benefit of MCG Clients GP LLC
	Delaware

	HL PMOF GP LLC
	Delaware

	HL Reformation GP LLC
	Delaware

	HL Second Stockholm GP LLC
	Delaware

	HL Secondary Investment SPV-10 Wolf LP
	Delaware

	HL Secondary Investment SPV-5 L.P.
	Delaware

	HL Secondary Investment SPV-6 L.P.
	Delaware

	HL Secondary Investment SPV-6A L.P.
	Delaware

	HL Secondary Investment SPV-7 L.P.
	Delaware

	HL Secondary Investment SPV-8 L.P.
	Delaware

	HL Secondary Investment SPV-9 L.P.
	Delaware

	HL SIHL-2 LLC
	Delaware

	HL SMID GP LLC
	Delaware

	HL Technology Services LLC
	Delaware

	HL Wyoming Nowood Fund GP, LLC
	Delaware

	HLA Carpenters II, LLC
	Delaware

	HLA Carpenters III, LLC
	Delaware

	HLA Carpenters IV, LLC
	Delaware

	HLA Carpenters, LLC
	Pennsylvania

	HLSA Holdings II, LLC
	Delaware

	HLSA Holdings, LLC
	Delaware

	HLSF IV Holdings LP
	Delaware

	HLSF IV-A Blocker (Cayman) LP
	Cayman Islands

	HLSF IV-A Blocker (DE) LP, Series 1
	Delaware

	HLSF IV-B Blocker (Cayman) LP
	Cayman Islands

	HLSF IV-B Blocker (DE) LP, Series 1
	Delaware

	HLSF IV-C Blocker (DE) LP
	Delaware

	HLSF IV-EU Blocker (Cayman) LP
	Cayman Islands

	HLSF IV-EU GP LLP
	United Kingdom

	HLSF Silver Cup, LP
	Cayman Islands

	HLSK, LLC
	Delaware

	HLSP Investment Management II Limited
	Guernsey

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
 USActive 37187036.11
89908444.1

	
		
	HLSP Investment Management III Limited
	Guernsey

	HLSP Investment Management L.L.C.
	Colorado

	HLUS Holdings LLC
	Delaware

	Hudson River Co-Investment Fund II, L.P.
	Delaware

	Hudson River Co-Investment Fund III, L.P.
	Delaware

	Hudson River Co-Investment Fund, L.P.
	Delaware

	JATI GP LLC
	Delaware

	JATI Private Equity Fund II, LP
	Cayman Islands

	JATI Private Equity Fund, LP
	Cayman Islands

	KAY-Hamilton Lane GP LLC
	Delaware

	KAY-Hamilton Lane LP
	Cayman Islands

	MVPE16 PH DE Blocker LP
	Delaware

	New York Credit Co-Investment Fund GP II LLC
	Delaware

	New York Credit Co-Investment Fund GP LLC
	Delaware

	New York Credit Co-Investment Fund II L.P.
	Delaware

	New York Credit Co-Investment Fund L.P.
	Delaware

	New York Credit SBIC Fund GP LLC
	Delaware

	New York Credit SBIC Fund L.P.
	Delaware

	NJHL European Buyout Investment Fund L.P.
	Delaware

	NJHL Investments GP LLC
	Delaware

	NS Private Equity Fund, LP
	Cayman Islands

	NS Private Equity GP LLC
	Delaware

	Private Market Connect LLC
	Delaware

	Reformation Private Fund GP LLC
	Delaware

	Reformation Private Fund LP
	Cayman Islands

	Second Stockholm Global Private Equity L.P.
	Delaware

	Secondary Investment SPV-1 GP LLC
	Delaware

	Secondary Investment SPV-1, L.P.
	Delaware

	Secondary Investment SPV-2 GP LLC
	Delaware

	Secondary Investment SPV-2 L.P.
	Delaware

	Secondary Investment SPV-3 GP LLC
	Delaware

	Secondary Investment SPV-3 L.P.
	Delaware

	Secondary Investment SPV-4 GP LLC
	Delaware

	Secondary Investment SPV-4 LP
	Delaware

	Silver State Opportunities Fund, LLC
	Nevada

	SR HL PE 1 GP LLC
	Delaware

	SRE HL PE 1 (Master) LP
	Delaware

	SRE HL PE 1 LP
	Cayman Islands

	SREH HL PE 1 (Master) LP
	Delaware

	SREH HL PE 1 LP
	Cayman Islands

	SRZ HL PE 1 (Master) LP
	Delaware

	SRZ HL PE 1 LP
	Cayman Islands

	Tarragon GP, LLC
	Delaware

	Tarragon LP
	Cayman Islands

	Tarragon Master Fund LP
	Delaware

	The Hudson River Fund II, LP
	Delaware

	The Hudson River Fund L.P.
	Delaware

	The Markaz/Hamilton Lane Technology Fund, LP
	Guernsey

	Third Stockholm Global Private  Equity L.P.
	Delaware

	Wyoming Nowood Fund, LP
	Delaware

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
 USActive 37187036.11
89908444.1

Schedule I to Revolving Loan and Security Agreement
The name of Borrower is (attach a copy of the formation documents): Hamilton Lane Advisors, L.L.C.
Borrower’s State of formation:  Pennsylvania
Borrower has operated under only the following other names (if none, so state):  
None    
Borrower has deposit accounts and/or investment accounts located only at the following institutions:
Please see attached.    
List Acct. Numbers:  Please see attached.    
Liens existing on the Effective Date and disclosed to and accepted by Lender in writing:
None    
    
    
Investments existing on the Effective Date and disclosed to and accepted by Lender in writing:
Ipreo (iLevel), Deal Cloud, Bison, Black Mountain Systems, and Private Market Connect    
    
    
Indebtedness on the Effective Date and disclosed to and consented to by Lender in writing:

Morgan Stanley senior secured term loan principal amount outstanding - $85,450,000    
    
    
Borrower is not subject to litigation which would have a material adverse effect on the Borrower’s financial condition, except the following (attach additional comments, if needed):
 None    
    
    
Tax ID Number 23-2962336
Organizational Number, if any:  2816405                    

 

LOAN NO.:  85-595100-9 / AFS No.:  0210690058
 USActive 37187036.11
89908444.1Code Green Apparel Corp. 10-Q

 

Exhibit 10.23

 

 

CODE GREEN APPAREL CORP.

2017 EQUITY INCENTIVE PLAN

TABLE OF CONTENTS

 

	ARTICLE I. PREAMBLE	1
	 	
	ARTICLE II. DEFINITIONS	1
	 	
	ARTICLE III. ADMINISTRATION	5
	 	
	ARTICLE IV. INCENTIVE STOCK OPTIONS	9
	 	
	ARTICLE V. NONQUALIFIED STOCK OPTIONS	10
	 	 
	ARTICLE VI. INCIDENTS OF STOCK OPTIONS	11
	 	 
	ARTICLE VII. RESTRICTED STOCK	12
	 	 
	ARTICLE VIII. STOCK AWARDS	13
	 	 
	ARTICLE IX. PERFORMANCE SHARES	14
	 	 
	ARTICLE X. CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES	15
	 	 
	ARTICLE XI. AMENDMENT AND TERMINATION	16
	 	 
	ARTICLE XII. MISCELLANEOUS PROVISIONS	17

 

    	.

    	 

    

 

CODE GREEN APPAREL CORP.

2017 EQUITY INCENTIVE PLAN

ARTICLE I.

PREAMBLE

1.1.       

This 2017 Equity Incentive
Plan of Code Green Apparel Corp. (the “Company”) is intended to secure for the Company and its Affiliates
the benefits arising from ownership of the Company’s Common Stock by the Employees, Officers, Directors and Consultants of
the Company and its Affiliates, all of whom are and will be responsible for the Company’s future growth. The Plan is designed
to help attract and retain for the Company and its Affiliates personnel of superior ability for positions of exceptional responsibility,
to reward Employees, Officers, Directors and Consultants for their services and to motivate such individuals through added incentives
to further contribute to the success of the Company and its Affiliates. With respect to persons subject to Section 16 of the Act,
transactions under this Plan are intended to satisfy the requirements of Rule 16b-3 of the Act.

1.2.       

Awards under the Plan
may be made to an Eligible Person in the form of (i) Incentive Stock Options (to Eligible Employees only); (ii) Nonqualified Stock
Options; (iii) Restricted Stock; (iv) Stock Awards; (v) Performance Shares; or (vi) any combination of the foregoing.

1.3.       

The
Company’s board of directors adopted the Plan effective on August 3, 2017 (the “Effective
Date”). The grant of Incentive Stock Options is subject to approval by the Company’s shareholders within
twelve (12) months of the Effective Date. Shareholder approval is to be obtained in accordance with the Company’s
Certificate of Formation and Bylaws, each as amended, and applicable laws. The Board may grant Incentive Stock Options prior
to shareholder approval, but until the Company obtains this approval, a grantee shall not exercise them. If the Company does
not timely obtain shareholder approval (or a grantee desires to exercise such Incentive Stock Options prior to shareholder
approval), a grantee may exercise previously granted Incentive Stock Options as Nonqualified Stock Options. Unless sooner
terminated as provided elsewhere in this Plan, this Plan shall terminate upon the close of business on the day next preceding
the tenth (10th) anniversary of the Effective Date. Award Agreements outstanding on such date shall continue to have force
and effect in accordance with the provisions thereof.

1.4.       

The Plan shall be governed
by, and construed in accordance with, the laws of the State of Nevada (except its choice-of-law provisions).

1.5.       

Capitalized terms shall
have the meaning provided in ARTICLE II unless otherwise provided in this Plan or any related Award Agreement.

ARTICLE II.

DEFINITIONS

DEFINITIONS.
Except where the context otherwise indicates, the following definitions apply:

2.1.       

“Act”
means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

2.2.       

“Affiliate”
means any parent corporation or subsidiary corporation of the Company, whether now or hereinafter existing, as those terms are
defined in Sections 424(e) and (f), respectively, of the Code.

2.3.       

“Award”
means an award granted to a Participant in accordance with the provisions of the Plan, including, but not limited to, Stock Options,
Restricted Stock, Stock Awards, Performance Shares, or any combination of the foregoing.

2.4.       

“Award
Agreement” means the separate written agreement evidencing each Award granted to a Participant under the Plan.

2.5.       

“Board
of Directors” or “Board” means the Board of Directors of the Company, as constituted from
time to time.

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2.6.       

“Bylaws”
means the Company’s Bylaws as amended and restated from time to time.

2.7.       

“Change
of Control” means (i) the adoption of a plan of merger or consolidation of the Company with any other corporation
or association as a result of which the holders of the voting capital stock of the Company as a group would receive less than 50%
of the voting capital stock of the surviving or resulting corporation; (ii) the approval by the Board of Directors of an agreement
providing for the sale or transfer (other than as security for obligations of the Company) of substantially all the assets of the
Company; or (iii) in the absence of a prior expression of approval by the Board of Directors, the acquisition of more than 20%
of the Company’s voting capital stock by any person within the meaning of Rule 13d-3 under the Act (other than the Company
or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company).

2.8.       

“Code”
means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder.

2.9.       

“Committee”
means a committee of two or more members of the Board appointed by the Board in accordance with Section 3.2 of the Plan.
In the event the Company has not designated a Committee pursuant to Section 3.2 of the Plan, “Committee”
shall refer to the Compensation Committee of the Company (in the event the Compensation Committee has authority to administer the
Plan), if any, or the Board of Directors of the Company.

2.10.       

“Common
Stock” means the Company’s common stock.

2.11.       

“Company”
means Code Green Apparel Corp., a Nevada corporation.

2.12.       

“Consultant”
means any person, including an advisor engaged by the Company or an Affiliate to render bona fide consulting or advisory services
to the Company or an Affiliate, other than as an Employee, Director or Non-Employee Director.

2.13.       

“Director”
means a member of the Board of Directors of the Company.

2.14.       

“Disability”
means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.

2.15.       

“Effective
Date” shall be the date set forth in Section 1.3 of the Plan.

2.16.       

“Eligible
Employee” means an Eligible Person who is an Employee of the Company or any Affiliate.

2.17.       

“Eligible
Person” means any Employee, Officer, Director, Non-Employee Director or Consultant of the Company or any Affiliate,
except for instances where services are in connection with the offer or sale of securities in a capital-raising transaction, or
they directly or indirectly promote or maintain a market for the Company’s securities, subject to any other limitations as
may be provided by the Code, the Act, or the Board. In making such determinations, the Board may take into account the nature of
the services rendered by such person, his or her present and potential contribution to the Company’s success, and such other
factors as the Board in its discretion shall deem relevant.

2.18.       

“Employee”
means an individual who is a common-law employee of the Company or an Affiliate including employment as an Officer. Mere service
as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment”
by the Company or an Affiliate.

2.19.       

“ERISA”
means the Employee Retirement Income Security Act of 1974, as now in effect or as hereafter amended.

    	 	2017 Equity Incentive Plan
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2.20.       

 ”Fair
Market Value” means, as of any date and unless the Committee determines otherwise, the value of Common Stock determined
as follows:

2.20.1       

If the Common
Stock is listed on any established stock exchange or a national market system, including without limitation the NYSE MKT, Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination,
as reported in The Wall Street Journal or such other source as the Committee deems reliable;

2.20.2       

If the Common
Stock is regularly quoted by a recognized securities dealer but selling prices are not reported for the date in question, or the
Common Stock is quoted on an over-the-counter market, the Fair Market Value will be the mean between the high bid and low asked
prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other source as the Committee
deems reliable; or

2.20.3       

In the absence
of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Committee.

2.20.4       

The Committee
also may adopt a different methodology for determining Fair Market Value with respect to one or more Awards if a different methodology
is necessary or advisable to secure any intended favorable tax, legal or other treatment for the particular Award(s) (for example,
and without limitation, the Committee may provide that Fair Market Value for purposes of one or more Awards will be based on an
average of closing prices (or the average of high and low daily trading prices) for a specified period preceding the relevant date).

2.21.       

“Grant
Date” means, as to any Award, the latest of:

2.21.1       

the date on
which the Board authorizes the grant of the Award; or

2.21.2       

the date the
Participant receiving the Award becomes an Employee or a Director of the Company or its Affiliate, to the extent employment status
is a condition of the grant or a requirement of the Code or the Act; or

2.21.3       

such other
date (later than the dates described in 2.21.1 and 2.21.2 above) as the Board may designate and as set forth in the
Participant’s Award Agreement.

2.22.       

“Immediate
Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships.

2.23.       

“Incentive
Stock Option” means a Stock Option intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and is granted under ARTICLE IV of the Plan and designated as an Incentive Stock Option in a Participant’s
Award Agreement.

2.24.       

“Non-Employee
Director” shall have the meaning set forth in Rule 16b-3 under the Act.

2.25.       

“Nonqualified
Stock Option” means a Stock Option not intended to qualify as an Incentive Stock Option and is not so designated
in the Participant’s Award Agreement.

2.26.       

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Act.

2.27.       

“Option
Period” means the period during which a Stock Option may be exercised from time to time, as established by the Board
and set forth in the Award Agreement for each Participant who is granted a Stock Option.

    	 	2017 Equity Incentive Plan
Code Green Apparel Corp.
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2.28.       

“Option
Price” means the purchase price for a share of Common Stock subject to purchase pursuant to a Stock Option, as established
by the Board and set forth in the Award Agreement for each Participant who is granted a Stock Option.

2.29.       

“Outside
Director” means a Director who either (i) is not a current employee of the Company or an “affiliated
corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an “affiliated corporation” receiving compensation for prior services
(other than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation”
at any time and is not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation”
for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director”
for purposes of Section 162(m) of the Code.

2.30.       

“Participant”
means an Eligible Person to whom an Award has been granted and who has entered into an Award Agreement evidencing the Award or,
if applicable, such other person who holds an outstanding Award.

2.31.       

“Performance
Objectives” shall have the meaning set forth in ARTICLE IX of the Plan.

2.32.       

“Performance
Period” shall have the meaning set forth in ARTICLE IX of the Plan.

2.33.       

“Performance
Share” means an Award under ARTICLE IX of the Plan of a unit valued by reference to the Common Stock, the
payout of which is subject to achievement of such Performance Objectives, measured during one or more Performance Periods, as the
Board, in its sole discretion, shall establish at the time of such Award and set forth in a Participant’s Award Agreement.

2.34.       

“Plan”
means this Code Green Apparel Corp. 2017 Equity Incentive Plan, as it may be amended from time to time.

2.35.       

“Reporting
Person” means a person required to file reports under Section 16(a) of the Act.

2.36.       

“Restricted
Stock” means an Award under ARTICLE VII of the Plan of shares of Common Stock that are at the time of the
Award subject to restrictions or limitations as to the Participant’s ability to sell, transfer, pledge or assign such shares,
which restrictions or limitations may lapse separately or in combination at such time or times, in installments or otherwise, as
the Board, in its sole discretion, shall determine at the time of such Award and set forth in a Participant’s Award Agreement.

2.37.       

“Restriction
Period” means the period commencing on the Grant Date with respect to such shares of Restricted Stock and ending
on such date as the Board, in its sole discretion, shall establish and set forth in a Participant’s Award Agreement.

2.38.       

“Retirement”
means retirement as determined under procedures established by the Board or in any Award, as set forth in a Participant’s
Award Agreement.

2.39.       

“Rule 16b-3”
means Rule 16b-3 promulgated under the Act or any successor to Rule 16b-3, as in effect from time to time. Those provisions of
the Plan which make express reference to Rule 16b-3, or which are required in order for certain option transactions to qualify
for exemption under Rule 16b-3, shall apply only to a Reporting Person.

2.40.       

“Stock
Award” means an Award of shares of Common Stock under ARTICLE VIII of the Plan.

2.41.       

“Stock
Option” means an Award under ARTICLE IV or ARTICLE V of the Plan of an option to purchase Common Stock.
A Stock Option may be either an Incentive Stock Option or a Nonqualified Stock Option.

    	 	2017 Equity Incentive Plan
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2.42.       

“Ten Percent
Stockholder” means an individual who owns (or is deemed to own pursuant to Section 424(d) of the Code), at the time
of grant, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company
or any of its Affiliates.

2.43.       

“Termination
of Service” means (i) in the case of an Eligible Employee, the discontinuance of employment of such Participant with
the Company or its Subsidiaries for any reason other than a transfer to another member of the group consisting of the Company and
its Affiliates and (ii) in the case of a Director who is not an Employee of the Company or any Affiliate, the date such Participant
ceases to serve as a Director. The determination of whether a Participant has discontinued service shall be made by the Board in
its sole discretion. In determining whether a Termination of Service has occurred, the Board may provide that service as a Consultant
or service with a business enterprise in which the Company has a significant ownership interest shall be treated as employment
with the Company.

ARTICLE III.

ADMINISTRATION

3.1.       

The Plan shall be administered
by the Board of Directors of the Company. The Board shall have the exclusive right to interpret and construe the Plan, to select
the Eligible Persons who shall receive an Award, and to act in all matters pertaining to the grant of an Award and the determination
and interpretation of the provisions of the related Award Agreement, including, without limitation, the determination of the number
of shares subject to Stock Options and the Option Period(s) and Option Price(s) thereof, the number of shares of Restricted Stock
or shares subject to Stock Awards or Performance Shares subject to an Award, the vesting periods (if any) and the form, terms,
conditions and duration of each Award, and any amendment thereof consistent with the provisions of the Plan. The Board may adopt,
establish, amend and rescind such rules, regulations and procedures as it may deem appropriate for the proper administration of
the Plan, make all other determinations which are, in the Board’s judgment, necessary or desirable for the proper administration
of the Plan, amend the Plan or a Stock Award as provided in ARTICLE XI, and terminate or suspend the Plan as provided in
ARTICLE XI. All acts, determinations and decisions of the Board made or taken pursuant to the Plan or with respect to any
questions arising in connection with the administration and interpretation of the Plan or any Award Agreement, including the severability
of any and all of the provisions thereof, shall be conclusive, final and binding upon all persons. On or after the date of grant
of an Award under the Plan, the Board may (i) accelerate the date on which any such Award becomes vested, exercisable or transferable,
as the case may be, (ii) extend the term of any such Award, including, without limitation, extending the period following a termination
of a Participant’s employment during which any such Award may remain outstanding, or (iii) waive any conditions to the vesting,
exercisability or transferability, as the case may be, of any such Award; provided, that the Board shall not have any such authority
to the extent that the grant of such authority would cause any tax to become due under Section 409A of the Code.

3.2.       

The Board may, to the
full extent permitted by and consistent with applicable law and the Company’s Bylaws, and subject to Subparagraph 3.2.1
herein below, delegate any or all of its powers with respect to the administration of the Plan to the Company’s Compensation
Committee or another Committee of the Company consisting of not fewer than two members of the Board each of whom shall qualify
(at the time of appointment to the Committee and during all periods of service on the Committee) in all respects as a Non-Employee
Director and as an Outside Director.

3.2.1       

If administration
is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized
to exercise (and references in the Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to
such resolutions, not consistent with the provisions of the Plan, as may be adopted from time to time by the Board.

3.2.2       

The Board
may abolish the Committee at any time and reassume all powers and authority previously delegated to the Committee.

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3.2.3       

For purposes
of clarifying the preceding paragraph, shares of Common Stock covered by Awards shall only be counted as used to the extent they
are actually issued and delivered to a Participant (or such Participant’s permitted transferees as described in the Plan)
pursuant to the Plan. If an Award is settled for cash or if shares of Common Stock are withheld to pay the exercise price of a
Stock Option or to satisfy any tax withholding requirement in connection with an Award, only the shares issued (if any), net of
the shares withheld, will be deemed delivered for purposes of determining the number of shares of Common Stock that are available
for delivery under the Plan. In addition, shares of Common Stock related to Awards that expire, are forfeited or cancelled or terminate
for any reason without the issuance of shares shall not be treated as issued pursuant to the Plan. In addition, if shares of Common
Stock owned by a Participant (or such Participant’s permitted transferees as described in the Plan) are tendered (either
actually or through attestation) to the Company in payment of any obligation in connection with an Award, the number of shares
tendered shall be added to the number of shares of Common Stock that are available for delivery under the Plan.

3.2.4       

In addition
to, and not in limitation of, the right of any Committee so designated by the Board to administer this Plan to grant Awards to
Eligible Persons under this Plan, the full Board of Directors and/or the Company’s Compensation Committee may from time to
time grant Awards to Eligible Persons pursuant to the terms and conditions of this Plan, subject to the requirements of the Code,
Rule 16b-3 under the Act or any other applicable law, rule or regulation. In connection with any such grants, the Board of Directors
and/or the Company’s Compensation Committee shall have all of the power and authority of the Committee to determine the Eligible
Persons to whom such Awards shall be granted and the other terms and conditions of such Awards.

3.3.       

Without limiting the
provisions of this ARTICLE III, and subject to the provisions of ARTICLE X, the Board is authorized to take such
action as it determines to be necessary or advisable, and fair and equitable to Participants and to the Company, with respect to
an outstanding Award in the event of a Change of Control as described in ARTICLE X or other similar event. Such action may
include, but shall not be limited to, establishing, amending or waiving the form, terms, conditions and duration of an Award and
the related Award Agreement, so as to provide for earlier, later, extended or additional times for exercise or payments, differing
methods for calculating payments, alternate forms and amounts of payment, or an accelerated release of restrictions or other modifications.
The Board may take such actions pursuant to this Section 3.3 by adopting rules and regulations of general applicability
to all Participants or to certain categories of Participants, by including, amending or waiving terms and conditions in an Award
and the related Award Agreement, or by taking action with respect to individual Participants from time to time. In the event any
Award is not evidenced by a written Award Agreement, such Award shall be governed by the terms of this Plan and the terms and conditions
of the grant of the Award as evidenced by the minutes of the Board (or any authorized Committee thereof). For the sake of clarity,
the failure of the Company to document an Award by way of a written Award Agreement shall not affect the validity of such Award.

3.4.       

Subject to the provisions
of Section 3.9 and this Section 3.4, the maximum aggregate number of shares of Common Stock which may be issued pursuant
to Awards under the Plan shall be 75,000,000 shares. Such shares of Common Stock shall be made available from authorized
and unissued shares of the Company.

3.4.1       

For all purposes
under the Plan, each Performance Share awarded shall be counted as one share of Common Stock subject to an Award.

3.4.2       

If, for any
reason, any shares of Common Stock (including shares of Common Stock subject to Performance Shares) that have been awarded or are
subject to issuance or purchase pursuant to Awards outstanding under the Plan are not delivered or purchased, or are reacquired
by the Company, for any reason, including but not limited to a forfeiture of Restricted Stock or failure to earn Performance Shares
or the termination, expiration or cancellation of a Stock Option, or any other termination of an Award without payment being made
in the form of shares of Common Stock (whether or not Restricted Stock), such shares of Common Stock shall not be charged against
the aggregate number of shares of Common Stock available for Award under the Plan and shall again be available for Awards under
the Plan. In no event, however, may Common Stock that is surrendered or withheld to pay the exercise price of a Stock Option or
to satisfy tax withholding requirements be available for future grants under the Plan.

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3.4.3       

For purposes
of clarifying the preceding paragraph, shares of Common Stock covered by Awards shall only be counted as used to the extent they
are actually issued and delivered to a Participant (or such Participant’s permitted transferees as described in the Plan)
pursuant to the Plan. If an Award is settled for cash or if shares of Common Stock are withheld to pay the exercise price of a
Stock Option or to satisfy any tax withholding requirement in connection with an Award, only the shares issued (if any), net of
the shares withheld, will be deemed delivered for purposes of determining the number of shares of Common Stock that are available
for delivery under the Plan. In addition, shares of Common Stock related to Awards that expire, are forfeited or cancelled or terminate
for any reason without the issuance of shares shall not be treated as issued pursuant to the Plan. In addition, if shares of Common
Stock owned by a Participant (or such Participant’s permitted transferees as described in the Plan) are tendered (either
actually or through attestation) to the Company in payment of any obligation in connection with an Award, the number of shares
tendered shall be added to the number of shares of Common Stock that are available for delivery under the Plan.

3.4.4       

The foregoing
subsections 3.4.1 and 3.4.2 of this Section 3.4 shall be subject to any limitations provided by the Code or
by Rule 16b-3 under the Act or by any other applicable law, rule or regulation.

3.5.       

Each Award granted
under the Plan shall be evidenced by a written Award Agreement, which shall be subject to and shall incorporate (by reference or
otherwise) the applicable terms and conditions of the Plan and shall include any other terms and conditions (not inconsistent with
the Plan) required by the Board. In the event any Award is not evidenced by a written Award Agreement, such Award shall be governed
by the terms of this Plan and the terms and conditions of the grant of the Award as evidenced by the minutes of the Board (or any
authorized Committee thereof). For the sake of clarity, the failure of the Company to document an Award by way of a written Award
Agreement shall not affect the validity of such Award.

3.6.       

Securities Matters.

3.6.1       

The Company
shall be under no obligation to affect the registration pursuant to the Act of any shares of Common Stock to be issued hereunder
or to effect similar compliance under any state or local laws. Notwithstanding anything herein to the contrary, the Company shall
not be obligated to cause to be issued any shares of Common Stock pursuant to the Plan unless and until the Company is advised
by its counsel that the issuance of such shares is in compliance with all applicable laws, regulations of governmental authority
and the requirements of any securities exchange on which shares of Common Stock are traded. The Board may require, as a condition
to the issuance of shares of Common Stock pursuant to the terms hereof, that the recipient of such shares make such covenants,
agreements and representations, and that any certificates representing such shares bear such legends, as the Board deems necessary
or desirable.

3.6.2       

The exercise
of any Stock Option granted hereunder shall only be effective at such time as counsel to the Company shall have determined that
the issuance of shares of Common Stock pursuant to such exercise is in compliance with all applicable laws, regulations of governmental
authority and the requirements of any securities exchange on which shares of Common Stock are traded. The Company may, in its sole
discretion, defer the effectiveness of an exercise of a Stock Option hereunder or the issuance of shares of Common Stock pursuant
to any Award pending or to ensure compliance under federal, state or local securities laws. The Company shall inform the Participant
in writing of its decision to defer the effectiveness of the exercise of a Stock Option or the issuance of shares of Common Stock
pursuant to any Award. During the period that the effectiveness of the exercise of a Stock Option has been deferred, the Participant
may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

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3.6.3       

In the event
the Plan and/or the Common Stock issuable in connection with Awards hereunder are registered with the Securities Exchange Commission
(the “SEC”) under the Act, no free-trading shares of Common Stock shall be issuable by the Company under
the Plan and pursuant to such registration statement, (a) except to natural persons (as such term is interpreted by the SEC); (b)
in connection with services associated with the offer or sale of securities in a capital-raising transaction; or (c) where the
services directly or indirectly promote or maintain a market for the Company’s securities.

3.7.       

The Board may require
any Participant acquiring shares of Common Stock pursuant to any Award under the Plan to represent to and agree with the Company
in writing that such person is acquiring the shares of Common Stock for investment purposes and without a view to resale or distribution
thereof. Shares of Common Stock issued and delivered under the Plan shall also be subject to such stop-transfer orders and other
restrictions as the Board may deem advisable under the rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Common Stock is then listed and any applicable federal or state laws, and the Board
may cause a legend or legends to be placed on the certificate or certificates representing any such shares to make appropriate
reference to any such restrictions. In making such determination, the Board may rely upon an opinion of counsel for the Company.

3.8.       

Except as otherwise
expressly provided in the Plan or in an Award Agreement with respect to an Award, no Participant shall have any right as a shareholder
of the Company with respect to any shares of Common Stock subject to such Participant’s Award except to the extent that,
and until, one or more certificates representing such shares of Common Stock shall have been delivered to the Participant. No shares
shall be required to be issued, and no certificates shall be required to be delivered, under the Plan unless and until all of the
terms and conditions applicable to such Award shall have, in the sole discretion of the Board, been satisfied in full and any restrictions
shall have lapsed in full, and unless and until all of the requirements of law and of all regulatory bodies having jurisdiction
over the offer and sale, or issuance and delivery, of the shares shall have been fully complied with.

3.9.       

The total amount of
shares with respect to which Awards may be granted under the Plan and rights of outstanding Awards (both as to the number of shares
subject to the outstanding Awards and the Option Price(s) or other purchase price(s) of such shares, as applicable) shall be appropriately
adjusted for any increase or decrease in the number of outstanding shares of Common Stock of the Company resulting from payment
of a stock dividend on the Common Stock, a stock split or subdivision or combination of shares of the Common Stock, or a reorganization
or reclassification of the Common Stock, or any other change in the structure of shares of the Common Stock. The foregoing adjustments
and the manner of application of the foregoing provisions shall be determined by the Board in its sole discretion. Any such adjustment
may provide for the elimination of any fractional shares which might otherwise become subject to an Award. All adjustments made
as a result of the foregoing in respect of each Incentive Stock Option shall be made so that such Incentive Stock Option shall
continue to be an Incentive Stock Option, as defined in Section 422 of the Code.

3.10.       

No director or person
acting pursuant to authority delegated by the Board shall be liable for any action or determination under the Plan made in good
faith. The members of the Board shall be entitled to indemnification by the Company in the manner and to the extent set forth in
the Company’s Articles of Incorporation, as amended, Bylaws or as otherwise provided from time to time regarding indemnification
of Directors.

3.11.       

The Board shall be
authorized to make adjustments in any performance based criteria or in the other terms and conditions of outstanding Awards in
recognition of unusual or nonrecurring events affecting the Company (or any Affiliate, if applicable) or its financial statements
or changes in applicable laws, regulations or accounting principles. The Board may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award Agreement in the manner and to the extent it shall deem necessary or desirable to reflect
any such adjustment. In the event the Company (or any Affiliate, if applicable) shall assume outstanding employee benefit awards
or the right or obligation to make future such awards in connection with the acquisition of another corporation or business entity,
the Board may, in its sole discretion, make such adjustments in the terms of outstanding Awards under the Plan as it shall deem
appropriate.

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3.12.       

Subject to the express
provisions of the Plan, the Board shall have full power and authority to determine whether, to what extent and under what circumstances
any outstanding Award shall be terminated, canceled, forfeited or suspended. Notwithstanding the foregoing or any other provision
of the Plan or an Award Agreement, all Awards to any Participant that are subject to any restriction or have not been earned or
exercised in full by the Participant shall be terminated and canceled if the Participant is terminated for cause, as determined
by the Board in its sole discretion.

ARTICLE IV.

INCENTIVE STOCK OPTIONS

4.1.       

The Board, in its sole
discretion, may from time to time on or after the Effective Date grant Incentive Stock Options to Eligible Employees, subject to
the provisions of this ARTICLE IV and ARTICLE III and ARTICLE VI and subject to the following conditions:

4.1.1       

Incentive
Stock Options shall be granted only to Eligible Employees, each of whom may be granted one or more of such Incentive Stock Options
at such time or times determined by the Board.

4.1.2       

The Option
Price per share of Common Stock for an Incentive Stock Option shall be set in the Award Agreement, but shall not be less than (i)
one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date, or (ii) in the case of an Incentive
Stock Option granted to a Ten Percent Stockholder, one hundred ten percent (110%) of the Fair Market Value of the Common Stock
at the Grant Date.

4.1.3       

An Incentive
Stock Option may be exercised in full or in part from time to time within ten (10) years from the Grant Date, or such shorter period
as may be specified by the Board as the Option Period and set forth in the Award Agreement; provided, however, that, in the case
of an Incentive Stock Option granted to a Ten Percent Stockholder, such period shall not exceed five (5) years from the Grant Date;
and further, provided that, in any event, the Incentive Stock Option shall lapse and cease to be exercisable upon a Termination
of Service or within such period following a Termination of Service as shall have been determined by the Board and set forth in
the related Award Agreement; and provided, further, that such period shall not exceed the period of time ending on the date three
(3) months following a Termination of Service (except as otherwise provided in any employment agreement approved by the Board),
unless employment shall have terminated:

(i)       

as a result
of Disability, in which event such period shall not exceed the period of time ending on the date twelve (12) months following a
Termination of Service; or

(ii)       

 as a result
of death, or if death shall have occurred following a Termination of Service (other than as a result of Disability) and during
the period that the Incentive Stock Option was still exercisable, in which event such period may not exceed the period of time
ending on the earlier of the date twelve (12) months after the date of death;

(iii)       

and provided,
further, that such period following a Termination of Service or death shall in no event extend beyond the original Option Period
of the Incentive Stock Option.

4.1.4       

The aggregate
Fair Market Value of the shares of Common Stock with respect to which any Incentive Stock Options (whether under this Plan or any
other plan established by the Company) are first exercisable during any calendar year by any Eligible Employee shall not exceed
one hundred thousand dollars ($100,000), determined based on the Fair Market Value(s) of such shares as of their respective Grant
Dates; provided, however, that to the extent permitted under Section 422 of the Code, if the aggregate Fair Market Values of the
shares of Common Stock with respect to which Stock Options intended to be Incentive Stock Options are first exercisable by any
Eligible Employee during any calendar year (whether such Stock Options are granted under this Plan or any other plan established
by the Company) exceed one hundred thousand dollars ($100,000), the Stock Options or portions thereof which exceed such limit (according
to the order in which they were granted) shall be treated as Nonqualified Stock Options.

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4.1.5       

No Incentive
Stock Options may be granted more than ten (10) years from the Effective Date.

4.1.6       

The Award
Agreement for each Incentive Stock Option shall provide that the Participant shall notify the Company if such Participant sells
or otherwise transfers any shares of Common Stock acquired upon exercise of the Incentive Stock Option within two (2) years of
the Grant Date of such Incentive Stock Option or within one (1) year of the date such shares were acquired upon the exercise of
such Incentive Stock Option.

4.2.       

Subject to the limitations
of Section 3.4, the maximum aggregate number of shares of Common Stock subject to Incentive Stock Option Awards shall be
the maximum aggregate number of shares available for Awards under the Plan.

4.3.       

The Board may provide
for any other terms and conditions which it determines should be imposed for an Incentive Stock Option to qualify under Section
422 of the Code, as well as any other terms and conditions not inconsistent with this ARTICLE IV or ARTICLE III or
ARTICLE VI, as determined in its sole discretion and set forth in the Award Agreement for such Incentive Stock Option.

4.4.       

Each provision of this
ARTICLE IV and of each Incentive Stock Option granted hereunder shall be construed in accordance with the provisions of
Section 422 of the Code, and any provision hereof that cannot be so construed shall be disregarded.

ARTICLE V.

NONQUALIFIED STOCK OPTIONS

5.1.       

The Board, in its sole
discretion, may from time to time on or after the Effective Date grant Nonqualified Stock Options to Eligible Persons, subject
to the provisions of this ARTICLE V and ARTICLE III or ARTICLE VI and subject to the following conditions:

5.1.1       

Nonqualified
Stock Options may be granted to any Eligible Person, each of whom may be granted one or more of such Nonqualified Stock Options,
at such time or times determined by the Board.

5.1.2       

The Option
Price per share of Common Stock for a Nonqualified Stock Option shall be set in the Award Agreement and may be less than one hundred
percent (100%) of the Fair Market Value of the Common Stock at the Grant Date; provided, however, that the exercise price of each
Nonqualified Stock Option granted under the Plan shall in no event be less than the par value per share of the Company’s
Common Stock.

5.1.3       

A Nonqualified
Stock Option may be exercised in full or in part from time to time within the Option Period specified by the Board and set forth
in the Award Agreement; provided, however, that, in any event, the Nonqualified Stock Option shall lapse and cease to be exercisable
upon a Termination of Service or within such period following a Termination of Service as shall have been determined by the Board
and set forth in the related Award Agreement.

5.2.       

The Board may provide
for any other terms and conditions for a Nonqualified Stock Option not inconsistent with this ARTICLE V or ARTICLE III
or ARTICLE VI, as determined in its sole discretion and set forth in the Award Agreement for such Nonqualified Stock Option.

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ARTICLE VI.

INCIDENTS OF STOCK OPTIONS

6.1.       

Each Stock Option shall
be granted subject to such terms and conditions, if any, not inconsistent with this Plan, as shall be determined by the Board and
set forth in the related Award Agreement, including any provisions as to continued employment as consideration for the grant or
exercise of such Stock Option and any provisions which may be advisable to comply with applicable laws, regulations or rulings
of any governmental authority.

6.2.       

Except as hereinafter
described, a Stock Option shall not be transferable by the Participant other than by will or by the laws of descent and distribution,
and shall be exercisable during the lifetime of the Participant only by the Participant or the Participant’s guardian or
legal representative. In the event of the death of a Participant, any unexercised Stock Options may be exercised to the extent
otherwise provided herein or in such Participant’s Award Agreement by the executor or personal representative of such Participant’s
estate or by any person who acquired the right to exercise such Stock Options by bequest under the Participant’s will or
by inheritance. The Board, in its sole discretion, may at any time permit a Participant to transfer a Nonqualified Stock Option
for no consideration to or for the benefit of one or more members of the Participant’s Immediate Family (including, without
limitation, to a trust for the benefit of the Participant and/or one or more members of such Participant’s Immediate Family
or a corporation, partnership or limited liability company established and controlled by the Participant and/or one or more members
of such Participant’s Immediate Family), subject to such limits as the Board may establish. The transferee of such Nonqualified
Stock Option shall remain subject to all terms and conditions applicable to such Nonqualified Stock Option prior to such transfer.
The foregoing right to transfer the Nonqualified Stock Option, if granted by the Board shall apply to the right to consent to amendments
to the Award Agreement.

6.3.       

Shares of Common Stock
purchased upon exercise of a Stock Option shall be paid for in such amounts, at such times and upon such terms as shall be determined
by the Board, subject to limitations set forth in the Stock Option Award Agreement. The Board may, in its sole discretion, permit
the exercise of a Stock Option by payment in cash or by tendering shares of Common Stock (either by actual delivery of such shares
or by attestation), or any combination thereof, as determined by the Board. In the sole discretion of the Board, payment in shares
of Common Stock also may be made with shares received upon the exercise or partial exercise of the Stock Option, whether or not
involving a series of exercises or partial exercises and whether or not share certificates for such shares surrendered have been
delivered to the Participant. The Board also may, in its sole discretion, permit the payment of the exercise price of a Stock Option
by the voluntary surrender of all or a portion of the Stock Option. Shares of Common Stock previously held by the Participant and
surrendered in payment of the Option Price of a Stock Option shall be valued for such purpose at the Fair Market Value thereof
on the date the Stock Option is exercised.

6.4.       

The holder of a Stock
Option shall have no rights as a shareholder with respect to any shares covered by the Stock Option (including, without limitation,
any voting rights, the right to inspect or receive the Company’s balance sheets or financial statements or any rights to
receive dividends or non-cash distributions with respect to such shares) until such time as the holder has exercised the Stock
Option and then only with respect to the number of shares which are the subject of the exercise. No adjustment shall be made for
dividends or other rights for which the record date is prior to the date such stock certificate is issued.

6.5.       

The Board may permit
the voluntary surrender of all or a portion of any Stock Option granted under the Plan to be conditioned upon the granting to the
Participant of a new Stock Option for the same or a different number of shares of Common Stock as the Stock Option surrendered,
or may require such voluntary surrender as a condition precedent to a grant of a new Stock Option to such Participant. Subject
to the provisions of the Plan, such new Stock Option shall be exercisable at such Option Price, during such Option Period and on
such other terms and conditions as are specified by the Board at the time the new Stock Option is granted. Upon surrender, the
Stock Options surrendered shall be canceled and the shares of Common Stock previously subject to them shall be available for the
grant of other Stock Options.

6.6.       

The Board may at any
time offer to purchase a Participant’s outstanding Stock Option for a payment equal to the value of such Stock Option payable
in cash, shares of Common Stock or Restricted Stock or other property upon surrender of the Participant’s Stock Option, based
on such terms and conditions as the Board shall establish and communicate to the Participant at the time that such offer is made.

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6.7.       

The Board shall have
the discretion, exercisable either at the time the Award is granted or at the time the Participant discontinues employment, to
establish as a provision applicable to the exercise of one or more Stock Options that, during a limited period of exercisability
following a Termination of Service, the Stock Option may be exercised not only with respect to the number of shares of Common Stock
for which it is exercisable at the time of the Termination of Service but also with respect to one or more subsequent installments
for which the Stock Option would have become exercisable had the Termination of Service not occurred.

6.8.       

Notwithstanding anything
to the contrary herein, the Company may reprice any Stock Option without the approval of the stockholders of the Company. For this
purpose, “reprice” means (i) any of the following or any other action that has the same effect: (A) lowering the exercise
price of a Stock Option after it is granted, (B) any other action that is treated as a repricing under U.S. generally accepted
accounting principles (“GAAP”), or (C) cancelling a Stock Option at a time when its exercise price exceeds
the Fair Market Value of the underlying Common Stock, in exchange for another Stock Option, restricted stock or other equity, unless
the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction;
and (ii) any other action that is considered to be a repricing under formal or informal guidance issued by exchange or market on
which the Company’s Common Stock then trades or is quoted.

6.9.       

In addition to, and
without limiting the above Section 6.8, the Board may permit the voluntary surrender of all or a portion of any Stock Option
granted under the Plan to be conditioned upon the granting to the Participant of a new Stock Option for the same or a different
number of shares of Common Stock as the Stock Option surrendered, or may require such voluntary surrender as a condition precedent
to a grant of a new Stock Option to such Participant. Subject to the provisions of the Plan, such new Stock Option shall be exercisable
at such Option Price, during such Option Period and on such other terms and conditions as are specified by the Board at the time
the new Stock Option is granted. Upon surrender, the Stock Options surrendered shall be canceled and the shares of Common Stock
previously subject to them shall be available for the grant of other Stock Options.

ARTICLE VII.

RESTRICTED STOCK

7.1.       

The Board, in its sole
discretion, may from time to time on or after the Effective Date award shares of Restricted Stock to Eligible Persons as a reward
for past service and an incentive for the performance of future services that will contribute materially to the successful operation
of the Company and its Affiliates, subject to the terms and conditions set forth in this ARTICLE VII.

7.2.       

The Board shall determine
the terms and conditions of any Award of Restricted Stock, which shall be set forth in the related Award Agreement, including without
limitation:

7.2.1       

the purchase
price, if any, to be paid for such Restricted Stock, which may be zero, subject to such minimum consideration as may be required
by applicable law;

7.2.2       

the duration
of the Restriction Period or Restriction Periods with respect to such Restricted Stock and whether any events may accelerate or
delay the end of such Restriction Period(s);

7.2.3       

the circumstances
upon which the restrictions or limitations shall lapse, and whether such restrictions or limitations shall lapse as to all shares
of Restricted Stock at the end of the Restriction Period or as to a portion of the shares of Restricted Stock in installments during
the Restriction Period by means of one or more vesting schedules;

7.2.4       

whether such
Restricted Stock is subject to repurchase by the Company or to a right of first refusal at a predetermined price or if the Restricted
Stock may be forfeited entirely under certain conditions;

7.2.5       

whether any
performance goals may apply to a Restriction Period to shorten or lengthen such period; and

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7.2.6       

whether dividends
and other distributions with respect to such Restricted Stock are to be paid currently to the Participant or withheld by the Company
for the account of the Participant.

7.3.       

Awards of Restricted
Stock must be accepted within a period of thirty (30) days after the Grant Date (or such shorter or longer period as the Board
may specify at such time) by executing an Award Agreement with respect to such Restricted Stock and tendering the purchase price,
if any. A prospective recipient of an Award of Restricted Stock shall not have any rights with respect to such Award, unless such
recipient has executed an Award Agreement with respect to such Restricted Stock, has delivered a fully executed copy thereof to
the Board and has otherwise complied with the applicable terms and conditions of such Award.

7.4.       

In the sole discretion
of the Board and as set forth in the Award Agreement for an Award of Restricted Stock, all shares of Restricted Stock held by a
Participant and still subject to restrictions shall be forfeited by the Participant upon the Participant’s Termination of
Service and shall be reacquired, canceled and retired by the Company. Notwithstanding the foregoing, unless otherwise provided
in an Award Agreement with respect to an Award of Restricted Stock, in the event of the death, Disability or Retirement of a Participant
during the Restriction Period, or in other cases of special circumstances (including hardship or other special circumstances of
a Participant whose employment is involuntarily terminated), the Board may elect to waive in whole or in part any remaining restrictions
with respect to all or any part of such Participant’s Restricted Stock, if it finds that a waiver would be appropriate.

7.5.       

Except as otherwise
provided in this ARTICLE VII, no shares of Restricted Stock received by a Participant shall be sold, exchanged, transferred,
pledged, hypothecated or otherwise disposed of during the Restriction Period.

7.6.       

Upon an Award of Restricted
Stock to a Participant, a certificate or certificates representing the shares of such Restricted Stock will be issued to and registered
in the name of the Participant. Unless otherwise determined by the Board, such certificate or certificates will be held in custody
by the Company until (i) the Restriction Period expires and the restrictions or limitations lapse, in which case one or more certificates
representing such shares of Restricted Stock that do not bear a restrictive legend (other than any legend as required under applicable
federal or state securities laws) shall be delivered to the Participant, or (ii) a prior forfeiture by the Participant of the shares
of Restricted Stock subject to such Restriction Period, in which case the Company shall cause such certificate or certificates
to be canceled and the shares represented thereby to be retired, all as set forth in the Participant’s Award Agreement. It
shall be a condition of an Award of Restricted Stock that the Participant deliver to the Company a stock power endorsed in blank
relating to the shares of Restricted Stock to be held in custody by the Company.

7.7.       

Except as provided
in this ARTICLE VII or in the related Award Agreement, a Participant receiving an Award of shares of Restricted Stock Award
shall have, with respect to such shares, all rights of a shareholder of the Company, including the right to vote the shares and
the right to receive any distributions, unless and until such shares are otherwise forfeited by such Participant; provided, however,
the Board may require that any cash dividends with respect to such shares of Restricted Stock be automatically reinvested in additional
shares of Restricted Stock subject to the same restrictions as the underlying Award, or may require that cash dividends and other
distributions on Restricted Stock be withheld by the Company or its Affiliates for the account of the Participant. The Board shall
determine whether interest shall be paid on amounts withheld, the rate of any such interest, and the other terms applicable to
such withheld amounts.

ARTICLE VIII.

STOCK AWARDS

8.1.       

The Board, in its sole
discretion, may from time to time on or after the Effective Date grant Stock Awards to Eligible Persons in payment of compensation
that has been earned or as compensation to be earned, including without limitation compensation awarded or earned concurrently
with or prior to the grant of the Stock Award, subject to the terms and conditions set forth in this ARTICLE VIII.

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8.2.       

For the purposes of
this Plan, in determining the value of a Stock Award, all shares of Common Stock subject to such Stock Award shall be set in the
Award Agreement and may be less than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date.

8.3.       

Unless otherwise determined
by the Board and set forth in the related Award Agreement, shares of Common Stock subject to a Stock Award will be issued, and
one or more certificates representing such shares will be delivered, to the Participant as soon as practicable following the Grant
Date of such Stock Award. Upon the issuance of such shares and the delivery of one or more certificates representing such shares
to the Participant, such Participant shall be and become a shareholder of the Company fully entitled to receive dividends, to vote
and to exercise all other rights of a shareholder of the Company. Notwithstanding any other provision of this Plan, unless the
Board expressly provides otherwise with respect to a Stock Award, as set forth in the related Award Agreement, no Stock Award shall
be deemed to be an outstanding Award for purposes of the Plan.

ARTICLE IX.

PERFORMANCE SHARES

9.1.       

The Board, in its sole
discretion, may from time to time on or after the Effective Date award Performance Shares to Eligible Persons as an incentive for
the performance of future services that will contribute materially to the successful operation of the Company and its Affiliates,
subject to the terms and conditions set forth in this ARTICLE IX.

9.2.       

The Board shall determine
the terms and conditions of any Award of Performance Shares, which shall be set forth in the related Award Agreement, including
without limitation:

9.2.1       

the purchase
price, if any, to be paid for such Performance Shares, which may be zero, subject to such minimum consideration as may be required
by applicable law;

9.2.2       

the performance
period (the “Performance Period”) and/or performance objectives (the “Performance Objectives”)
applicable to such Awards;

9.2.3       

the number
of Performance Shares that shall be paid to the Participant if the applicable Performance Objectives are exceeded or met in whole
or in part; and

9.2.4       

the form of
settlement of a Performance Share.

9.3.       

At any date, each Performance
Share shall have a value equal to the Fair Market Value of a share of Common Stock.

9.4.       

Performance Periods
may overlap, and Participants may participate simultaneously with respect to Performance Shares for which different Performance
Periods are prescribed.

9.5.       

Performance Objectives
may vary from Participant to Participant and between Awards and shall be based upon such performance criteria or combination of
factors as the Board may deem appropriate, including, but not limited to, minimum earnings per share or return on equity. If during
the course of a Performance Period there shall occur significant events which the Board expects to have a substantial effect on
the applicable Performance Objectives during such period, the Board may revise such Performance Objectives.

9.6.       

In the sole discretion
of the Board and as set forth in the Award Agreement for an Award of Performance Shares, all Performance Shares held by a Participant
and not earned shall be forfeited by the Participant upon the Participant’s Termination of Service. Notwithstanding the foregoing,
unless otherwise provided in an Award Agreement with respect to an Award of Performance Shares, in the event of the death, Disability
or Retirement of a Participant during the applicable Performance Period, or in other cases of special circumstances (including
hardship or other special circumstances of a Participant whose employment is involuntarily terminated), the Board may determine
to make a payment in settlement of such Performance Shares at the end of the Performance Period, based upon the extent to which
the Performance Objectives were satisfied at the end of such period and pro-rated for the portion of the Performance Period during
which the Participant was employed by the Company or an Affiliate; provided, however, that the Board may provide for an earlier
payment in settlement of such Performance Shares in such amount and under such terms and conditions as the Board deems appropriate
or desirable.

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9.7.       

The settlement of a
Performance Share shall be made in cash, whole shares of Common Stock or a combination thereof and shall be made as soon as practicable
after the end of the applicable Performance Period. Notwithstanding the foregoing, the Board in its sole discretion may allow a
Participant to defer payment in settlement of Performance Shares on terms and conditions approved by the Board and set forth in
the related Award Agreement entered into in advance of the time of receipt or constructive receipt of payment by the Participant.

9.8.       

Performance Shares
shall not be transferable by the Participant. The Board shall have the authority to place additional restrictions on the Performance
Shares including, but not limited to, restrictions on transfer of any shares of Common Stock that are delivered to a Participant
in settlement of any Performance Shares.

ARTICLE X.

CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES

10.1.       

Upon the occurrence
of a Change of Control and unless otherwise provided in the Award Agreement with respect to a particular Award:

10.1.1       

all outstanding
Stock Options shall become immediately exercisable in full, subject to any appropriate adjustments in the number of shares subject
to the Stock Option and the Option Price, and shall remain exercisable for the remaining Option Period, regardless of any provision
in the related Award Agreement limiting the exercisability of such Stock Option or any portion thereof for any length of time;

10.1.2       

all outstanding
Performance Shares with respect to which the applicable Performance Period has not been completed shall be paid out as soon as
practicable as follows:

(i)       

all Performance
Objectives applicable to the Award of Performance Shares shall be deemed to have been satisfied to the extent necessary to earn
one hundred percent (100%) of the Performance Shares covered by the Award;

(ii)       

the applicable
Performance Period shall be deemed to have been completed upon occurrence of the Change of Control;

(iii)       

 the payment
to the Participant in settlement of the Performance Shares shall be the amount determined by the Board, in its sole discretion,
or in the manner stated in the Award Agreement, as multiplied by a fraction, the numerator of which is the number of full calendar
months of the applicable Performance Period that have elapsed prior to occurrence of the Change of Control, and the denominator
of which is the total number of months in the original Performance Period; and

(iv)       

upon the making
of any such payment, the Award Agreement as to which it relates shall be deemed terminated and of no further force and effect;
and

10.1.3       

all outstanding
shares of Restricted Stock with respect to which the restrictions have not lapsed shall be deemed vested, and all such restrictions
shall be deemed lapsed and the Restriction Period ended.

10.2.       

Anything contained
herein to the contrary notwithstanding, upon the dissolution or liquidation of the Company, each Award granted under the Plan and
then outstanding shall terminate; provided, however, that following the adoption of a plan of dissolution or liquidation, and in
any event prior to the effective date of such dissolution or liquidation, each such outstanding Award granted hereunder shall be
exercisable in full and all restrictions shall lapse, to the extent set forth in Section 10.1.1, 10.1.2 and 10.1.3
above.

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10.3.       

After the merger of
one or more corporations into the Company or any Affiliate, any merger of the Company into another corporation, any consolidation
of the Company or any Affiliate of the Company and one or more corporations, or any other corporate reorganization of any form
involving the Company as a party thereto and involving any exchange, conversion, adjustment or other modification of the outstanding
shares of the Common Stock, each Participant shall, at no additional cost, be entitled, upon any exercise of such Participant’s
Stock Option, to receive, in lieu of the number of shares as to which such Stock Option shall then be so exercised, the number
and class of shares of stock or other securities or such other property to which such Participant would have been entitled to pursuant
to the terms of the agreement of merger or consolidation or reorganization, if at the time of such merger or consolidation or reorganization,
such Participant had been a holder of record of a number of shares of Common Stock equal to the number of shares as to which such
Stock Option shall then be so exercised. Comparable rights shall accrue to each Participant in the event of successive mergers,
consolidations or reorganizations of the character described above. The Board may, in its sole discretion, provide for similar
adjustments upon the occurrence of such events with regard to other outstanding Awards under this Plan. The foregoing adjustments
and the manner of application of the foregoing provisions shall be determined by the Board in its sole discretion. Any such adjustment
may provide for the elimination of any fractional shares which might otherwise become subject to an Award. All adjustments made
as the result of the foregoing in respect of each Incentive Stock Option shall be made so that such Incentive Stock Option shall
continue to be an Incentive Stock Option, as defined in Section 422 of the Code.

ARTICLE XI.

AMENDMENT AND TERMINATION

11.1.       

Subject to the provisions
of Section 11.2, the Board of Directors at any time and from time to time may amend or terminate the Plan as may be necessary
or desirable to implement or discontinue the Plan or any provision hereof. To the extent required by the Act or the Code, however,
no amendment, without approval by the Company’s shareholders, shall:

11.1.1       

materially
alter the group of persons eligible to participate in the Plan;

11.1.2       

except as
provided in Section 3.4, change the maximum aggregate number of shares of Common Stock that are available for Awards under
the Plan; or

11.1.3       

alter the
class of individuals eligible to receive an Incentive Stock Option or increase the limit on Incentive Stock Options set forth in
Section 4.1.4 or the value of shares of Common Stock for which an Eligible Employee may be granted an Incentive Stock Option.

11.2.       

No amendment to or
discontinuance of the Plan or any provision hereof by the Board of Directors or the shareholders of the Company shall, without
the written consent of the Participant, adversely affect (in the sole discretion of the Board) any Award theretofore granted to
such Participant under this Plan; provided, however, that the Board retains the right and power to:

11.2.1       

annul any
Award if the Participant is terminated for cause as determined by the Board; and

11.2.2       

convert any
outstanding Incentive Stock Option to a Nonqualified Stock Option.

11.3.       

If a Change of Control
has occurred, no amendment or termination shall impair the rights of any person with respect to an outstanding Award as provided
in ARTICLE X.

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ARTICLE XII.

MISCELLANEOUS PROVISIONS

12.1.       

Nothing in the Plan
or any Award granted hereunder shall confer upon any Participant any right to continue in the employ of the Company or its Affiliates
or to serve as a Director or shall interfere in any way with the right of the Company or its Affiliates or the shareholders of
the Company, as applicable, to terminate the employment of a Participant or to release or remove a Director at any time. Unless
specifically provided otherwise, no Award granted under the Plan shall be deemed salary or compensation for the purpose of computing
benefits under any employee benefit plan or other arrangement of the Company or its Affiliates for the benefit of their respective
employees unless the Company shall determine otherwise. No Participant shall have any claim to an Award until it is actually granted
under the Plan and an Award Agreement has been executed and delivered to the Company. To the extent that any person acquires a
right to receive payments from the Company under the Plan, such right shall, except as otherwise provided by the Board, be no greater
than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company, and no special or separate fund shall be established and no segregation of assets shall be made to assure
payment of such amounts, except as provided in ARTICLE VII with respect to Restricted Stock and except as otherwise provided
by the Board.

12.2.       

The Plan and the grant
of Awards shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any government
or regulatory agency as may be required. Any provision herein relating to compliance with Rule 16b-3 under the Act shall not be
applicable with respect to participation in the Plan by Participants who are not subject to Section 16 of the Act.

12.3.       

The terms of the Plan
shall be binding upon the Company, its successors and assigns.

12.4.       

Neither a Stock Option
nor any other type of equity-based compensation provided for hereunder shall be transferable except as provided for in Section
6.2. In addition to the transfer restrictions otherwise contained herein, additional transfer restrictions shall apply to the
extent required by federal or state securities laws. If any Participant makes such a transfer in violation hereof, any obligation
hereunder of the Company to such Participant shall terminate immediately.

12.5.       

This Plan and all actions
taken hereunder shall be governed by the laws of the State of Nevada.

12.6.       

Each Participant exercising
an Award hereunder agrees to give the Board prompt written notice of any election made by such Participant under Section 83(b)
of the Code, or any similar provision thereof.

12.7.       

If any provision of
this Plan or an Award Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify
the Plan or any Award Agreement under any law deemed applicable by the Board, such provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Board, materially
altering the intent of the Plan or the Award Agreement, it shall be stricken, and the remainder of the Plan or the Award Agreement
shall remain in full force and effect.

12.8.       

The grant of an Award
pursuant to this Plan shall not affect in any way the right or power of the Company or any of its Affiliates to make adjustments,
reclassification, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or to dissolve,
liquidate or sell, or to transfer all or part of its business or assets.

12.9.       

The Plan is not subject
to the provisions of ERISA or qualified under Section 401(a) of the Code.

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12.10.       

If a Participant is
required to pay to the Company an amount with respect to income and employment tax withholding obligations in connection with (i)
the exercise of a Nonqualified Stock Option, (ii) certain dispositions of Common Stock acquired upon the exercise of an Incentive
Stock Option, or (iii) the receipt of Common Stock pursuant to any other Award, then the issuance of Common Stock to such Participant
shall not be made (or the transfer of shares by such Participant shall not be required to be effected, as applicable) unless such
withholding tax or other withholding liabilities shall have been satisfied in a manner acceptable to the Company. To the extent
provided by the terms of an Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation
relating to the exercise or acquisition of Common Stock under an Award by any of the following means (in addition to the Company’s
right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering
a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable
to the Participant as a result of the exercise or acquisition of Common Stock under the Award, provided, however, that no shares
of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering
to the Company owned and unencumbered shares of Common Stock.

12.11.       

Compliance with
other laws.

12.11.1       

For Reporting
Persons:

(i)       

the Plan is
intended to satisfy the provisions of Rule 16b-3;

(ii)       

all transactions
involving Participants who are subject to Section 16(b) of the Exchange Act of 1934, as amended, are subject to the provisions
of Rule 16b-3 regardless of whether they are set forth in the Plan; and

(iii)       

any provision
of the Plan that conflicts with Rule 16b-3 does not apply to the extent of the conflict.

12.11.2       

If any provision
of the Plan, any Award, or Award Agreement conflicts with the requirements of Code Section 162(m) or 422 for Awards subject to
these requirements, then that provision does not apply to the extent of the conflict.

12.11.3       

Notwithstanding
any other provision of the Plan, the Board and each applicable Committee shall administer the Plan and exercise all authority and
discretion under the Plan to satisfy the requirements of Code Section 409A or any exemption thereto.

12.11.4       

Notwithstanding
any other provision of the Plan, if, for an Employee of a parent company, the conversion of an Incentive Stock Option to a Nonqualified
Stock Option or the treatment of an Incentive Stock Option as a Nonqualified Stock Option would not satisfy the requirements of
Code Section 409A or an exemption thereto, as determined by the Board in its exclusive discretion, then the Incentive Stock Option
shall terminate on the date that it would no longer qualify as an Incentive Stock Option as determined by the Board in its exclusive
discretion.

12.12.       

Any reference in the
Plan to a written document includes any document delivered electronically or posted on the Company’s intranet.

12.13.       

The headings and captions
in the Plan are inserted as a matter of convenience for organizational purposes, and do not construe, define, extend, interpret,
or limit any provision of the Plan.

12.14.       

Whenever the context
may require, any pronoun includes the corresponding masculine, feminine, or neuter form, and the singular includes the plural and
vice versa.

12.15.       

Any reference in the
Plan to a statutory or regulatory provision includes corresponding successor provisions.

12.16.       

The proceeds from the
sale of shares pursuant to Awards granted under the Plan shall constitute general funds of the Company.

12.17.       

Nothing contained in
the Plan or in any Award agreement executed pursuant hereto shall be deemed to confer upon any individual or entity to whom an
Award is or may be granted hereunder any right to remain in the employ or service of the Company or a parent or subsidiary of the
Company or any entitlement to any remuneration or other benefit pursuant to any consulting or advisory arrangement.

 

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