Document:

Online Disruptive Technologies, Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “1933 ACT”).

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S.
PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

STOCK OPTION AGREEMENT 

  (Canadian) 

This AGREEMENT is entered into as of the <> day of
<>, 2012 (the “Date of Grant”). 

BETWEEN: 

Online Disruptive Technologies,
Inc.
3120 S. Durango Dr. Suite 305,
Las Vegas, Nevada 89117 

(the “Company”) 

AND: 

<>, a businessperson with an
address at <> 

(the “Optionee”) 

WHEREAS: 

A.        The Company wishes
to grant stock options to purchase a total of <> Optioned Shares (as
defined herein) to the Optionee. 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of
the covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows: 

	1. 	
      DEFINITIONS

	 	 	 
	1.1 	
      In this Agreement, the following terms shall have the
      following meanings:

	 	 	 
		(a) 	
      “Common Stock” means the shares of common stock of
      the Company;

	 	 	 
		(b) 	
      “Exercise Price” means
  $0.01/share;

	 	 	 
		(c) 	
      “Expiry Date” means ten (10) years following the
      Date of Grant;

2 

	 	(d) 	
      “Notice of Exercise” means a notice in writing
      addressed to the Company at its address first recited hereto (or such
      other address of which the Company may from time to time notify the
      Optionee in writing), substantially in the form attached as Schedule “A”
      hereto, which notice shall specify therein the number of Optioned Shares
      in respect of which the Options are being exercised;

	 	 	 
	 	(e) 	
      “Options” means the irrevocable right and option
      to purchase, from time to time, all, or any part of the Optioned Shares
      granted to the Optionee by the Company pursuant to Section 2.1 of this
      Agreement;

	 	 	 
	 	(f) 	
      “Optioned Shares” means the shares of Common Stock
      that are issued pursuant to the exercise of the Options;

	 	 	 
	 	(g) 	
      “Securities” means, collectively, the Options and
      the Optioned Shares;

	 	 	 
	 	(h) 	
      “Shareholders” means holders of record of the
      shares of Common Stock;

	 	 	 
	 	(i) 	
      “U.S. Person” shall have the meaning ascribed
      thereto in Regulation S under the 1933 Act, and for the purpose of the
      Agreement includes any person in the United States;
and

	2. 	
      THE OPTIONS

	 	 
	2.1 	
      The Company hereby grants to the Optionee, on the terms
      and conditions set out in this Agreement, Options to purchase a total of
      <> Optioned Shares at the Exercise Price. The Options may be
      exercised immediately.

	 	 
	2.2 	
      The Options shall, at 5:00 p.m. (Pacific time) on the
      Expiry Date, expire and be of no further force or effect
  whatsoever.

	 	 
	2.3 	
      The Company shall not be obligated to cause the issuance,
      transfer or delivery of a certificate or certificates representing
      Optioned Shares to the Optionee, until provision has been made by the
      Optionee, to the satisfaction of the Company, for the payment of the
      aggregate Exercise Price for all Optioned Shares for which the Options
      shall have been exercised, and for satisfaction of any tax withholding
      obligations associated with such exercise.

	 	 
	2.4 	
      The Optionee shall have no rights whatsoever as a
      shareholder in respect of any of the Optioned Shares (including any right
      to receive dividends or other distribution therefrom or thereon) except in
      respect of which the Options have been properly exercised in accordance
      with the terms of this Agreement.

	 	 
	2.5 	
      Subject to the provisions of this Agreement and subject
      to compliance with any applicable securities laws, the Options shall be
      exercisable, in full or in part, until termination; provided, however,
      that if the Optionee is subject to the reporting and liability provisions
      of Section 16 of the Securities Exchange Act of 1934 with respect
      to the Common Stock, the Optionee shall be precluded from selling,
      transferring or otherwise disposing of any Common Stock underlying any of
      the Options during the six months immediately following the grant of the
      Options. If less than all of the shares of any Options are purchased, the
      remainder may be purchased at any subsequent time prior to the Expiry
      Date. Only whole shares may be issued pursuant to the exercise of any
      Options, and to the extent that any Option covers less than one share, it
      is not exercisable.

	 	 
	2.6 	
      Each exercise of the Options shall be by means of
      delivery of a Notice of Exercise (which may be in the form attached hereto
      as Schedule “A”) to the President of the Company at its principal
      executive office, specifying the number of Optioned Shares to be purchased
      and accompanied by payment in cash by certified check or cashier’s check
      in the amount of the full Exercise Price for the Common Stock to be
      purchased.

3 

	2.7 	
      It is a condition precedent to the issuance of Optioned
      Shares that the Optionee execute and/or deliver to the Company all
      documents and withholding taxes required in accordance with applicable
      laws.

	 	 	 
	2.8 	
      Nothing in this Agreement shall obligate the Optionee to
      purchase any Optioned Shares except those Optioned Shares in respect of
      which the Optionee shall have exercised the Options in the manner provided
      in this Agreement.

	 	 	 
	2.9 	
      Appropriate and proportional adjustments in the exercise
      price of the Options and in the number of Options granted or to be granted
      may be made by the Board of Directors in its discretion to give effect to
      adjustments in the number of common shares of the Company resulting from
      subdivisions, consolidations or reclassification of the common shares of
      the Company, the payment of stock dividends by the Company or other
      relevant changes in the capital of the Company.

	 	 	 
	2.10 	
      By accepting the Options, the Optionee represents and
      agrees that none of the Optioned Shares purchased upon exercise of the
      Options will be distributed in violation of applicable federal and state
      laws and regulations. The Optionee further represents and agrees to
      provide the Company with any other document reasonably requested by the
      Company or the Company’s Counsel.

	 	 	 
	2.11 	
      The Options are not transferable or assignable.

	 	 	 
	3. 	
      TERMINATION OF OPTIONS

	 	 	 
	3.1 	
      Termination of Employment. Options shall
      terminate, to the extent not previously exercised, upon the occurrence of
      the first of the following events:

	 	 	 
		(a) 	
      Expiration. Ten (10) years from the Date of
      Grant.

	 	 	 
		(b) 	
      Termination for Cause. 90 days after the date that
      the Optionee’s employment or contractual relationship with the Company or
      any related company is terminated for cause (as reasonably determined by
      the Company).

	 	 	 
		(c) 	
      Termination Due to Death or Disability. The
      expiration of five years from the date of the death of the Optionee or
      cessation of an Optionee’s employment or contractual relationship by
      reason of disability. If an Optionee’s employment or contractual
      relationship is terminated by death, any Option held by the Optionee shall
      be exercisable only by the person or persons to whom such Optionee’s
      rights under such Option shall pass by the Optionee’s will or by the
      applicable laws of descent and distribution.

	 	 	 
		(d) 	
      Termination for Any Other Reason. The expiration
      of five years from the date of an Optionee’s termination of employment or
      contractual relationship with the Company for any reason whatsoever other
      than cause, death or disability.

	 	 	 
	4. 	
      DOCUMENTS REQUIRED FROM OPTIONEE

	 	 	 
	4.1 	
      The Optionee must complete, sign and return an executed
      copy of this Agreement to the Company.

	 	 	 
	4.2 	
      The Optionee shall complete, sign and return to the
      Company as soon as possible, on request by the Company, any documents,
      questionnaires, notices and undertakings as may be required by regulatory
      authorities, and applicable law.

	 	 	 
	5. 	
      ACKNOWLEDGEMENTS OF THE
OPTIONEE

The Optionee acknowledges and agrees that: 

4 

	 	(a) 	
      the Optionee is an executive officer (as defined by
      National Instrument 45-106 Prospectus and Registration Exemptions)
      of the Company;

	 	 	 
	 	(b) 	
      none of the Options or the Optioned Shares have been
      registered under the 1933 Act or under any state securities or “blue sky”
      laws of any state of the United States, and, unless so registered, may not
      be offered or sold in the United States or, directly or indirectly, to
      U.S. Persons, except in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act, or
      pursuant to an exemption from, or in a transaction not subject to, the
      registration requirements of the 1933 Act and in each case only in
      accordance with applicable state securities laws;

	 	 	 
	 	(c) 	
      the Company has not undertaken, and will have no
      obligation, to register any of the Securities under the 1933
Act;

	 	 	 
	 	(d) 	
      the Optionee has received and carefully read this
      Agreement and the public information which has been filed with the
      Securities and Exchange Commission (the “SEC”) in compliance or intended
      compliance with applicable securities legislation (collectively, the
      “Company Information”);

	 	 	 
	 	(e) 	
      the decision to execute this Agreement and acquire the
      Securities hereunder has not been based upon any oral or written
      representation as to fact or otherwise made by or on behalf of the
      Company, and such decision is based entirely upon a review of the Company
      Information (the receipt of which is hereby acknowledged);

	 	 	 
	 	(f) 	
      no securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
	 	(g) 	
      there is no government or other insurance covering the
      Securities;

	 	 	 
	 	(h) 	
      there are risks associated with an investment in the
      Securities;

	 	 	 
	 	(i) 	
      the Optionee and the Optionee’s advisor(s) (if
      applicable) have had a reasonable opportunity to ask questions of and
      receive answers from the Company in connection with the distribution of
      the Securities hereunder, and to obtain additional information, to the
      extent possessed or obtainable without unreasonable effort or expense,
      necessary to verify the accuracy of the information about the
    Company;

	 	 	 
	 	(j) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Optionee during reasonable business hours at its
      principal place of business, and all documents, records and books in
      connection with the distribution of the Securities hereunder have been
      made available for inspection by the Optionee, the Optionee’s attorney
      and/or advisor(s) (if applicable);

	 	 	 
	 	(k) 	
      the Company is entitled to rely on the representations
      and warranties and the statements and answers of the Optionee contained in
      this Agreement;

	 	 	 
	 	(l) 	
      the Optionee will indemnify and hold harmless the Company
      and, where applicable, its directors, officers, employees, agents,
      advisors and shareholders, from and against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all fees, costs and expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any claim, lawsuit,
      administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Optionee contained herein or in any document furnished by the Optionee
      to the Company in connection herewith being untrue in any material respect
      or any breach or failure by the Optionee to comply with any covenant or
      agreement made by the Optionee to the Company in connection
    therewith;

5 

	 	(m) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Optionee that any of the Securities will become listed on any stock
      exchange or automated dealer quotation system; except that currently
      certain market makers make market in the Common Stock on the OTC Bulletin
      Board;

	 	 	 	 
	 	(n) 	
      the Company will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from the registration requirements of
      the 1933 Act and in accordance with applicable state and provincial
      securities laws;

	 	 	 	 
	 	(o) 	
      the statutory and regulatory basis for the exemption
      claimed for the offer of the Securities, although in technical compliance
      with Regulation S, would not be available if the offering is part of a
      plan or scheme to evade the registration provisions of the 1933 Act or any
      applicable state and provincial securities laws;

	 	 	 	 
	 	(p) 	
      the Optionee has been advised to consult the Optionee’s
      own legal, tax and other advisors with respect to the merits and risks of
      an investment in the Securities and with respect to applicable resale
      restrictions, and it is solely responsible (and the Company is not in any
      way responsible) for compliance with:

	 	 	 	 
	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Optionee is resident in connection with the distribution of the Securities
      hereunder, and

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions; and

	 	 	 	 
	 	(q) 	
      this Agreement is not enforceable by the Optionee unless
      it has been accepted by the Company.

6.          
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE OPTIONEE 

The Optionee hereby represents and warrants to and covenants
with the Company (which representations, warranties and covenants shall survive
the closing) that: 

	 	(a) 	
      the Optionee has the legal capacity and competence to
      enter into and execute this Agreement and to take all actions required
      pursuant hereto;

	 	 	 
	 	(b) 	
      the Optionee has duly executed and delivered this
      Agreement and it constitutes a valid and binding agreement of the Optionee
      enforceable against the Optionee in accordance with its terms;

	 	 	 
	 	(c) 	
      the Optionee is not acquiring the Securities for the
      account or benefit of, directly or indirectly, any U.S. Person;

	 	 	 
	 	(d) 	
      the Optionee is not a U.S. Person;

	 	 	 
	 	(e) 	
      the Optionee is resident in the jurisdiction set out on
      page 1 of this Agreement;

	 	 	 
	 	(f) 	
      the Optionee has not acquired the Securities as a result
      of, and will not itself engage in, any “directed selling efforts” (as
      defined in Regulation S under the 1933 Act) in the United States in
      respect of the Securities which would include any activities undertaken
      for the purpose of, or that could reasonably be expected to have the
      effect of, conditioning the market in the United States for the resale of
      the Securities; provided, however, that the Optionee may sell or otherwise
      dispose of the Securities pursuant to registration thereof under the 1933
      Act and any applicable state and provincial securities laws or under an
      exemption from such registration requirements;

	 	 	 
	 	(g) 	
      the Optionee is outside the United States when receiving
      and executing this Agreement and is acquiring the Securities as principal
      for the Optionee’s own account, for investment purposes
  only, and not with a view to, or for, resale, distribution or
      fractionalisation thereof, in whole or in part, and, in particular, it has
      no intention to distribute either directly or indirectly any of the
      Securities in the United States or to U.S. Persons, and no other person
  has a direct or indirect beneficial interest in such Securities;

6 

	 	(h) 	
      the Optionee is not an underwriter of, or dealer in, the
      Common Stock, nor is the Optionee participating, pursuant to a contractual
      agreement or otherwise, in the distribution of the Securities;

	 	 	 	 
	 	(i) 	
      the Optionee (i) has adequate net worth and means of
      providing for his/her/its current financial needs and possible personal
      contingencies, (ii) has no need for liquidity in this investment,
    and (iii) is able to bear the economic risks of an investment in
    the Securities for an indefinite period of time, and can afford the complete loss of such
    investment;

	 	 	 	 
	 	(j) 	
      the Optionee is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the investment, and the Optionee has carefully read and considered the
      matters set forth under the caption “Risk Factors” appearing in the
      Company’s various disclosure documents, filed with the SEC;

	 	 	 	 
	 	(k) 	
      the Optionee has the requisite knowledge and experience
      in financial and business matters as to be capable of evaluating the
      merits and risks of the investment in the Securities and the
    Company;

	 	 	 	 
	 	(l) 	
      the Optionee understands and agrees that the Company and
      others will rely upon the truth and accuracy of the acknowledgements,
      representations and agreements contained in this Agreement, and agrees
      that if any of such acknowledgements, representations and agreements are
      no longer accurate or have been breached, the Optionee shall promptly
      notify the Company;

	 	 	 	 
	 	(m) 	
      the Optionee has made an independent examination and
      investigation of an investment in the Securities and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in anyway whatsoever for the
      Optionee’s decision to invest in the Securities and the Company;

	 	 	 	 
	 	(n) 	
      the Optionee is not aware of any advertisement of any of
      the Securities and is not acquiring the Securities as a result of any form
      of general solicitation or general advertising including advertisements,
      articles, notices or other communications published in any newspaper,
      magazine or similar media or broadcast over radio or television, or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising;

	 	 	 	 
	 	(o) 	
      no person has made to the Optionee any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities;

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities; or

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities;
      and

	 	 	 	 
	 	(p) 	
      if the Optionee is a consultant of the Company, the
      Optionee has entered into a written consulting agreement with the Company
      or a related entity of the Company and spends or will spend a significant
      amount of time and attention on the affairs and business of the Company or
      such related entity.

7.         
ACKNOWLEDGEMENT 

The Optionee has acknowledged that the decision to purchase the
Securities was solely made on the basis of publicly available information
contained in the Company Information. 

7 

	8. 	
      LEGENDING OF SUBJECT SECURITIES

	 	 
	8.1 	
      The Optionee hereby consents to the placement of a legend
      on any certificate or the Optionee consents to the placement of a legend
      on any certificate or other document evidencing any of the Optioned Shares
      to the effect that such Optioned Shares have not been registered under the
      1933 Act, any state securities or “blue sky” laws, or under the prospectus
      and registration requirements of any applicable Canadian securities laws,
      and setting forth or referring to the restrictions on transferability and
      sale thereof contained in this Agreement, such legend to be substantially
      as follows:

  
    
      THESE SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION
        TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER
        THE 1933 ACT) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE
        OF THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED
        UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
        REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY
        OR INDIRECTLY, TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS
        OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION
        STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
        TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
        IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
        TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
        WITH THE 1933 ACT. 

    

  

	8.2 	
      The Optionee hereby agrees to the Company making a
      notation on its records or giving instructions to the registrar and
      transfer agent of the Company in order to implement the restrictions on
      transfer set forth and described in this Agreement.

	 	 
	9. 	
      CANADIAN RESALE RESTRICTION

	 	 
	9.1 	
      The Optioneee acknowledges that the Optioned Shares are
      subject to resale restrictions in Canada and may not be traded in Canada
      except as permitted by the applicable securities act and the rules made
      thereunder.

	 	 
	9.2 	
      Pursuant to National Instrument 45-102, a subsequent
      trade in the Optioned Shares will be a distribution subject to the
      prospectus and registration requirements of applicable Canadian securities
      legislation unless certain conditions are met, which conditions include a
      hold period (the “Canadian Hold Period”) that shall have elapsed from the
      date on which the Optioned Shares were issued to the Optionee and, during
      the currency of the Canadian Hold Period, any certificate representing the
      Optioned Shares is to be imprinted with a restrictive legend (the
      “Canadian Legend”).

	 	 
	9.3 	
      By executing and delivering this Option Agreement, the
      Optionee will have directed the Company not to include the Canadian Legend
      on any certificates representing the Optioned Shares to be issued to the
      Optionee.

	 	 
	9.4 	
      As a consequence, the Optionee will not be able to rely
      on the resale provisions of National Instrument 45- 102, and any
      subsequent trade in any of the Optioned Shares during or after the
      Canadian Hold Period will be a distribution subject to the prospectus and
      registration requirements of Canadian securities legislation, to the
      extent that the trade is at that time subject to any such Canadian
      securities legislation.

8 

	10. 	
      GENERAL RESALE RESTRICTIONS

	 	 
	10.1 	
      The Optionee acknowledges that any resale of any of the
      Optioned Shares will be subject to resale restrictions contained in the
      securities legislation applicable to the Optionee or proposed transferee.
      The Optionee acknowledges that none of the Optioned Shares have been
      registered under the 1933 Act or the securities laws of any state of the
      United States. The Optioned Shares may not be offered or sold in the
      United States unless registered in accordance with federal securities laws
      and all applicable state securities laws or exemptions from such
      registration requirements are available.

	 	 
	10.2 	
      The Optionee acknowledges and agrees that the Optionee is
      solely responsible (and the Company is not in any way responsible) for
      compliance with applicable resale restrictions.

	 	 
	11. 	
      NO EMPLOYMENT RELATIONSHIP

The grant of an Option shall in no way constitute any form of
agreement or understanding binding on the Company or any related company,
express or implied, that the Company or any related company will employ or
contract with an Optionee, for any length of time, nor shall it interfere in any
way with the Company’s or, where applicable, a related company’s right to
terminate Optionee’s employment at any time, which right is hereby reserved.

12.       
GOVERNING LAW 

This Agreement is governed by the laws of the State of Nevada.

13.       
COSTS 

The Optionee acknowledges and agrees that all costs and
expenses incurred by the Optionee (including any fees and disbursements of any
special counsel retained by the Optionee) relating to the acquisition of the
Securities shall be borne by the Optionee. 

14.       
SURVIVAL 

This Agreement, including without limitation the
representations, warranties and covenants contained herein, shall survive and
continue in full force and effect and be binding upon the parties hereto
notwithstanding the completion of the purchase of the shares underlying the
Options by the Optionee pursuant hereto. 

15.       
ASSIGNMENT 

This Agreement is not transferable or assignable. 

16.       
CURRENCY 

Unless explicitly stated otherwise, all funds in this Agreement
are stated in United States dollars. 

17.       
SEVERABILITY 

The invalidity or unenforceability of any particular provision
of this Agreement shall not affect or limit the validity or enforceability of
the remaining provisions of this Agreement. 

18.      
 COUNTERPARTS AND ELECTRONIC MEANS 

This Agreement may be executed in several counterparts, each of
which will be deemed to be an original and all of which will together constitute
one and the same instrument. Delivery of an executed copy of this Agreement by
electronic facsimile transmission or other means of electronic communication
capable of producing a printed copy will be deemed to be execution and delivery
of this Agreement as of the date first above written. 

9 

19.       
ENTIRE AGREEMENT 

This Agreement is the only agreement between the Optionee and
the Company with respect to the Options, and this Agreement, supersede all prior
and contemporaneous oral and written statements and representations and contain
the entire agreement between the parties with respect to the Options. 

IN WITNESS WHEREOF the parties hereto have duly executed
this Agreement as of the date first above written. 

ONLINE DISRUPTIVE TECHNOLOGIES, INC. 

	Per:		 
	 	Authorized Signatory 	 

	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Signature 	) 	  
	  	) 	  
	  	) 	 
    
	Name 	) 	<> 
	  	) 	  
	  	) 	  
	Address 	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	Occupation 	) 	  

SCHEDULE “A” 
NOTICE OF EXERCISE 

	TO: 	Online Disruptive Technologies
      Inc. 
	  	3120 S. Durango Dr. Suite 305,
  
	 	Las Vegas, Nevada
      89117 

This Notice of Exercise shall constitute a proper Notice of
Exercise pursuant to Section 2.6 of the Stock Option Agreement dated as of
____________________(the “Agreement”), between Online Disruptive Technologies
Inc. (the “Company”) and the undersigned. The undersigned hereby elects to
exercise Optionee’s option to purchase ____________________ shares of the common
stock of the Company at a price of US $0.01 per share, for aggregate
consideration of US $____________, on the terms and conditions set forth in the
Agreement. Such aggregate consideration, in the form specified in Section 2.6 of
the Agreement, accompanies this notice. 

The Optionee represents and warrants to the Company that all
representations and warranties set out in the Agreement are true as of the date
of the exercise of the Options under the Agreement. 

Please deliver a share certificate in respect of the Optioned
Shares referred to in the Stock Option and Subscription Agreement surrendered
herewith but not presently subscribed for, to the Optionee.

The Optionee hereby directs the Company to issue, register and
deliver the certificates representing the shares as follows: 

	   Registration Information: 	 	Delivery Instructions: 
	 	 	 
	 	 	 
	   Name to
      appear on certificates 	 	Name
  
	 	 	 
	 	 	 
	   Address
    	 	Address
    
	 	 	 
	 	 	 
	   City,
      State, and Zip Code 	 	 
    
	 	 	 
	 	 	 
	  	 	Telephone Number 

DATED at _____________________________, the _______day
of______________, _______. 

	 	X 
	 	Signature 
	 	 
	 	 
	 	(Name and, if applicable, Office) 
	 	 
	 	 
	 	(Address) 
	 	 
	 	 
	 	(City, State, and Zip Code) 
	 	 
	 	 
	 	Fax Number or E-mail Address 
	 	 
	 	 
	 	SIN, SSN or Other Tax Identification NumberExhibit 10.1 - Form 8-K (Omnibus Ninth Amendment)  (M0448709.DOC;1)

 EXHIBIT 10.1
 

 OMNIBUS NINTH AMENDMENT TO CREDIT AGREEMENT AND
ELEVENTH AMENDMENT TO NOTE AND WARRANT PURCHASE AGREEMENT
 This Omnibus Ninth Amendment to Credit Agreement and Eleventh Amendment to Note and Warrant Purchase Agreement (“Amendment”) is made as of the 5th day of September, 2012 between Implant Sciences Corporation, a Massachusetts corporation (the “Company”), and DMRJ Group LLC, a Delaware limited liability company (the “Lender” or “Investor”).
 

 BACKGROUND
 A.
 Company and Investor are parties to a certain Note and Warrant Purchase Agreement dated as of December 10, 2008 (as modified or amended from time to time, including, without limitation, as amended by that certain Omnibus Waiver and First Amendment to Credit Agreement and Third Amendment to Note and Warrant Purchase Agreement dated as of January 12, 2010 (the “First Omnibus Amendment”), that certain Omnibus Second Amendment to Credit Agreement and Fourth Amendment to Note and Warrant Purchase Agreement dated as of April 23, 2010 (the “Second Omnibus Amendment”), that certain Omnibus Third Amendment to Credit Agreement and Fifth Amendment to Note and Warrant Purchase Agreement dated as of September 30, 2010, that certain Omnibus Fourth Amendment to Credit Agreement and Sixth Amendment to Note and Warrant Purchase Agreement dated as of March 30,  2011, that certain Omnibus Fifth Amendment to Credit Agreement and Seventh Amendment to Note and Warrant Purchase Agreement dated as of April 7, 2011, that certain Omnibus Sixth Amendment to Credit Agreement and Eighth Amendment to Note and Warrant Purchase Agreement dated as of September 21, 2011, that certain Omnibus Seventh Amendment to Credit Agreement and Ninth Amendment to Note and Warrant Purchase Agreement dated as of October 13, 2011, and that certain Omnibus Eighth Amendment to Credit Agreement and Tenth Amendment to Note and Warrant Purchase Agreement dated as of February 21, 2012, collectively,  the “Purchase Agreement”), pursuant to which, among other things, Investor purchased that certain Amended and Restated Senior Secured Convertible Promissory Note dated March 12, 2009 in the original aggregate principal amount of $5,600,000 (the “March 2009 Note”).
 B.
 Pursuant to the Purchase Agreement, Investor subsequently purchased that certain Senior Secured Promissory Note dated July 1, 2009 in the original aggregate principal amount of $1,000,000 (the “July 2009 Note” and together with the March 2009 Note, the “Term Notes” and each a “Term Note”).
 C.
   The Purchase Agreement and all instruments, documents and agreements executed in connection therewith, or related thereto, including, without limitation, the March 2009 Note and the July 2009 Note, are referred to herein collectively as the “Purchase Documents”.
 D.
 Company and Lender are also parties to a certain Credit Agreement dated September 4, 2009 (as modified or amended from time to time, including, without limitation, as amended by the First Omnibus Amendment and the Second Omnibus Amendment, the “Credit Agreement”), pursuant to which, among other things, the Company executed and delivered to Lender that certain Promissory Note dated September 4, 2009 in the original aggregate principal amount of $3,000,000 (as amended by that certain Amended and Restated Promissory Note dated January 12, 2010 in the original aggregate principal amount of $5,000,000 and that certain Amended and Restated Promissory Note dated as of April 23, 2010 but effective as of April 7, 2010 in the original aggregate 
 

 

 

 
 principal amount of $10,000,000, that certain Amended and Restated Promissory Note dated as of March 30, 2011 in the original aggregate principal amount of $15,000,000, and that certain Amended and Restated Promissory Note dated as of September 29, 2011 in the original aggregate principal amount of $23,000,000  (the “Revolver Note” and together with the March 2009 Note and the July 2009 Note, each a “Note” and collectively, the “Notes”).
 E.
   The Credit Agreement and all instruments, documents and agreements executed in connection therewith, or related thereto, including, without limitation, the Revolver Note, are referred to herein collectively as the “Credit Documents” and together with the Purchase Documents, each a “Transaction Document” and collectively, the “Transaction Documents”.
 F.
 Company has requested that Investor modify certain definitions, terms and conditions in the Transaction Documents, and Investor is willing to do so on the terms and conditions hereafter set forth.
 G.
 All capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Transaction Documents.
 NOW, THEREFORE, with the foregoing Background incorporated by reference and made a part hereof and intending to be legally bound, the parties agree as follows:
 1.
 Amendments to the Transaction Documents.  Upon the effectiveness of this Amendment:
 (a)
 Maturity Date.  Notwithstanding anything to the contrary contained in any of the Transaction Documents (including, without limitation, any of the Notes), the “Maturity Date” (as defined in the March 2009 Note, the July 2009 Note and the Credit Agreement) shall be defined as March 31, 2013.
 (b)
 Notwithstanding anything to the contrary contained in the Purchase Agreement, the Credit Agreement and the Transaction Documents, Investor and the Company agree and acknowledge that the financial covenants contained in Sections 3.29(a), 3.30, 3.32 and 3.33 of the Purchase Agreement and Sections 5.1(q)(i), (r), (t) and (u) of the Credit Agreement shall not be tested from the date hereof through March 31, 2013 (it being understood that any failure to comply with such covenants during such period shall not cause or result in any default or Event of Default).  
 2.
 Purchase and Sale of Second Convertible Note.  
 (a)
 Upon satisfaction of the terms and conditions set forth herein and in the Purchase Agreement, Company shall issue and sell to Investor a senior secured convertible promissory note, substantially in the form of Exhibit A hereto (the “Second Convertible Note”), in the aggregate principal amount of $12,000,000. The Second Convertible Note shall be convertible into shares of the Company’s Series H Convertible Preferred Stock (the “Series H Preferred Stock”) in accordance with its terms. Payment for the Second Convertible Note shall be made by cancellation of $12,000,000 of principal of the outstanding indebtedness under the Credit Agreement. 
 

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 (b)
 The Second Convertible Note shall be deemed a “Transaction Document” under the Purchase Agreement.
 3.
 Series H Preferred Stock. 
 (a)
 Articles of Amendment. The Company shall adopt and file with the Secretary of the Commonwealth of Massachusetts on or before the effectiveness hereof the Articles of Amendment to the Company’s Restated Articles of Organization, in the form of Exhibit B hereto (the “Articles of Amendment”), establishing the Series H Preferred Stock..
 (b)
 Put Option. At any time and from time to time, following the occurrence of a Triggering Event (as defined in Schedule I hereto), the Investor shall have the right, but not the obligation, to cause the Company to purchase any or all of the shares of Series H Preferred Stock owned by the Investor on the date of such purchase, including any Accrued Dividend Shares (as defined in the Articles of Amendment) (the “Put Option”) at the Series H Original Issue Price (as defined in the Articles of Amendment) then in effect (the “Put Price”).  The Investor may exercise this Put Option by providing the Company with written notice of its desire to exercise such Put Option together with the number of shares it intends to cause the Company to purchase, the aggregate Put Price for such shares and date of closing, which shall be no less than 5 business days after the date of such notice.  Payment of the Put Price may be made, at the option of the Company, in cash or by offsetting against an advance (a “Put Advance”) under the Credit Agreement.  To the extent that the Put Advance together with all other outstanding amounts under the Credit Agreement would exceed the Facility Limit, the Investor agrees to amend the term Facility Limit in the Credit Agreement to an amount sufficient to pay the aggregate Put Price.  
 (c)
 The Series H Preferred Stock issuable upon conversion of the Second Convertible Note and the shares of Common Stock issuable upon conversion of the Series H Preferred Stock (the “Series H Conversion Shares”) shall be “Securities” as such term is used in the Purchase Agreement.
 (d)
 All references to “Warrant Shares” in Section 3.27 of the Purchase Agreement are hereby amended to refer to “Warrant Shares, Conversion Shares (as such term is defined in the Note), and Series H Conversion Shares”.
 4.
 Representations and Warranties.  Company represents and warrants to Investor that:
 (a)
 All warranties and representations made to Investor under the Transaction Documents are true and correct, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified by materiality, Material Adverse Effect or dollar thresholds in the text thereof), as to the date hereof unless they specifically relate to an earlier date in which case they shall be true and correct as of such date, other than as set forth on the disclosure schedules (the “Updated Disclosure Schedules”) to be delivered to Investor pursuant to Section 6 below (the numbers of which shall correspond to the numbers of the disclosure schedules to the applicable Transaction Document); notwithstanding the foregoing, the representations and warranties made as of the Closing Date (as defined in the Purchase Agreement) in Section 2.1(c) of the Purchase Agreement shall be made as of the date hereof.
 

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 (b)
 The Company and the Guarantors (as applicable) have the requisite corporate power and authority to enter into and perform this Amendment in accordance with the terms hereof.  The execution, delivery and performance of this Amendment by the Company and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action, no further consent or authorization of the Company, its Board of Directors, stockholders or any other third party is required.  When executed and delivered by the Company and the Guarantors, this Amendment shall constitute a valid and binding obligation of the Company and the Guarantors enforceable against the Company and the Guarantors in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.
 (c)
 This Amendment, the Second Convertible Note and all other documents, instruments and agreements executed in connection with this Amendment and any assignment, instrument, document, or agreement executed and delivered in connection herewith, will be valid, binding, and enforceable in accordance with its respective terms.
 (d)
 Upon the effectiveness of this Amendment, no default or Event of Default is outstanding under any of the Transaction Documents.
 5.
 Effectiveness Conditions.  This Amendment shall be effective upon completion of the following conditions precedent (all documents to be in form and substance satisfactory to Investor and Investor’s counsel):
 (a)
 Execution and delivery by Company and each Person who delivered a Guarantee to Investor in connection with the Transaction Documents (each a “Guarantor” and collectively, the “Guarantors”) to Investor of this Amendment; 
 (b)
 Execution and delivery by Company to Investor of the Second Convertible Note; 
 (c)
 Delivery by Company to Investor of a secretary’s certificate, dated as of the date hereof, as to (i) the resolutions adopted by the Board of Directors approving the transactions contemplated hereby, (ii) the Articles of Organization, (iii) the Bylaws, each as in effect as of the date hereof, and (iv) the authority and incumbency of the officers of the Company and the Guarantors executing this Amendment, the Second Convertible Note and any other documents required to be executed or delivered in connection therewith; and
 (d)
 Execution and/or delivery by Company of all agreements, instruments and documents requested by Investor to effectuate and implement the terms hereof and the Transaction Documents.
 6.
 Additional Covenants. Promptly, but in any event not less than fifteen (15) days after the date hereof, the Company shall deliver to Investor the Updated Disclosure Schedules, in form and substance satisfactory to Investor.
 7.
 Expenses.  The Company shall pay any and all costs, fees and expenses of Investor (including without limitation, attorneys’ fees) in connection with this Amendment and the 
 

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 transaction contemplated hereby.  The Company shall pay such amounts upon execution of this Amendment.
 8.
 No Waiver.  Investor reserves all of its rights and remedies arising with respect to any and all defaults or events of defaults under the Transaction Documents that may be in existence on the date hereof, regardless of whether such defaults or events of default have been identified, or which may occur in the future.  Investor has not modified, is not waiving and has not agreed to forbear in the exercise of, any of its present or future rights and remedies.  No action taken or claimed to be taken by Investor will constitute such a waiver, modification or agreement to forbear.  This Amendment does not obligate Investor to agree to any other extension or modification of the Transaction Documents nor does it constitute a course of conduct or dealing on behalf of Investor or a waiver of any other rights or remedies of Investor except as and only to the extent expressly set forth herein.  No omission or delay by Investor in exercising any right or power under the Transaction Documents, this Amendment or any related instruments, agreements or documents will impair such right or power or be construed to be a waiver of any default or Event of Default or an acquiescence therein, and any single or partial exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other right, and no waiver will be valid unless in writing and then only to the extent specified.
 9.
 Ratification of Loan Documents.  Except as expressly set forth herein, all of the terms and conditions of the Purchase Agreement, the Credit Agreement and the other Transaction Documents are hereby ratified and confirmed and continue unchanged and in full force and effect.  All references to any of the Transaction Documents shall mean the applicable Transaction Document as modified by this Amendment.
 10.
 Confirmation of Indebtedness.  Company confirms and acknowledges that as of the close of business on the date hereof and after giving effect to the transactions referenced in Section 2 hereof, Company was indebted to Investor without any deduction, defense, setoff, claim or counterclaim, of any nature, in the aggregate principal and interest in the amount of $35,431,000, of which $4,793,000 is due on account of the March 2009 Note, $1,569,000 is due on account of the July 2009 Note, $17,069,000 is due on account of Advances (as defined in the Credit Agreement) and $12,000,000 is due on account of the Second Convertible Note, plus all fees, costs and expenses incurred to date in connection with the Purchase Agreement, the Credit Agreement and the other Transaction Documents.
 11.
 Collateral.  Company and Guarantors hereby confirm and agree that all security interests and liens granted to Investor pursuant to the Transaction Documents continue in full force and effect and shall continue to secure the Obligations (as defined in the Security Agreements (as defined in the Purchase Agreement and as defined in the Credit Agreement)), including all liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing, under the Notes and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from Investor as a preference, 
 

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 fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.
 12.
 Acknowledgment of Guarantors.  By execution of this Amendment, each Guarantor hereby acknowledges the terms and conditions of this Amendment and confirms that Guarantors jointly and severally and absolutely and unconditionally guarantee, as surety, all of Guarantied Obligations (as defined in the Guaranty from Guarantors to Investor dated December 10, 2008 and in the Guaranty from Guarantors to Investor dated September 4, 2009) including all liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing, under the Second Convertible Note and covenants that each such Guaranty remains unchanged and in full force and effect and shall continue to cover the existing and future Obligations of Company to Investor.
 13.
 Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Amendment shall not be interpreted or construed with any presumption against the party causing this Amendment to be drafted.
 14.
 Signatories:  Each individual signatory hereto represents and warrants that he or she is duly authorized to execute this Amendment on behalf of his or her principal and that he or she executes the Amendment in such capacity and not as a party.
 15.
 Duplicate Originals:  Two or more duplicate originals of this Amendment may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument.  This Amendment may be executed in counterparts, all of which counterparts taken together shall constitute one completed fully executed document.  Signature by facsimile or PDF shall bind the parties hereto.
 

 

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 IN WITNESS WHEREOF, the parties have executed this Amendment the day and year first above written. 
 

 	 	
	 COMPANY: 
	 IMPLANT SCIENCES CORPORATION
 

 

 By:  /s/ Glenn D. Bolduc
 Name: Glenn D. Bolduc
 Title: President and Chief Executive Officer

	 GUARANTORS:
	 C ACQUISITION CORP.
 

 

 By:  /s/ Glenn D. Bolduc
 Name: Glenn D. Bolduc
 Title: President

	  
	 ACCUREL SYSTEMS INTERNATIONAL CORPORATION
 

 

 By:  /s/ Glenn D. Bolduc
 Name: Glenn D. Bolduc
 Title: President

	  
	 IMX ACQUISITION CORP.
 

 

 By:  /s/ Glenn D. Bolduc
 Name: Glenn D. Bolduc
 Title: President

	 INVESTOR: 
	 DMRJ GROUP LLC
 

 By: /s/ Daniel Small
 Name: Daniel Small
 Title: Managing Director

  
 [SIGNATURE PAGE TO OMNIBUS AMENDMENT]
 

 

 

 
 SCHEDULE I TO THE OMNIBUS AMENDMENT
 

 “Triggering Event” shall mean:
 

 1.
 Failure, on or before December 31, 2012, of at least one of the Company’s products (x) to achieve qualified or approved status on the Transportation Security Administration Air Cargo Screening Technology List (ACSTL) – For Passenger Aircraft or (y) to be placed on the Transportation Security Administration’s Explosive Trace Detector Qualified Product List (QPL); or
 

 2.
 Failure of the Company to achieve revenues of at least $7,500,000 per fiscal quarter, commencing with fiscal quarter ended June 30, 2013.

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