Document:

Exhibit_4.5_Second Supplemental Indenture 2013 A

Exhibit 4.5

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of November 15, 2013, by and among the guaranteeing subsidiaries named on the signature pages hereto (collectively, the “Guaranteeing Subsidiaries”, and each a “Guaranteeing Subsidiary”), each of which is a subsidiary of Gentiva Health Services, Inc., a Delaware corporation (the “Company”), the Company and The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture referred to below (the “Trustee”).
W I T N E S S E T H
WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of August 17, 2010, providing for the issuance of 11.5% Senior Notes due 2018 (the “Notes”);
WHEREAS, the Indenture provides that, under certain circumstances, the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth therein and herein (the “Note Guarantees”); and
WHEREAS, pursuant to Section 9.01(j) of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Guaranteeing Subsidiaries and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:
1.CAPITALIZED TERMS.  Capitalized terms used herein without definition shall have the respective meanings assigned to them in the Indenture.
2.    AGREEMENT TO GUARANTEE.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee, jointly and severally with each other Guarantor, on the terms and subject to the conditions set forth in the Indenture including but not limited to Article 10 thereof.
3.    NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer, employee, incorporator, stockholder or agent of any Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of the Notes by accepting a Note waives and releases all such liability.
4.    NEW YORK LAW TO GOVERN.  THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CON- FLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF AN- OTHER JURISDICTION WOULD BE REQUIRED THEREBY.

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5.    COUNTERPARTS.  The parties may sign any number of copies of this Supplemental Indenture, each of which shall be an original, but all of them together represent the same agreement.  Facsimile or other electronically scanned and transmitted signatures, including by email attachment, shall be deemed originals for all purposes of this Supplemental Indenture.
6.    EFFECT OF HEADINGS.  The Section headings herein are for convenience only and shall not affect the construction hereof.
7.    THE TRUSTEE.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries and the Company.
[signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.
	
		
	Gentiva Health Services, Inc.

	By:
	/s/ Tony Strange

	Name:
	Tony Strange

	Title:
	Chief Executive Officer and President

[Signature Page to Supplemental Indenture]

	
		
	GUARANTEEING SUBSIDIARIES:

	

ABC Hospice, LLC
Alpine Home Health Care, LLC
Alpine Home Health II, Inc.
Alpine Home Health, Inc.
Alpine Resource Group, Inc.
American Homecare Management Corp.
American Hospice, Inc.
Asian American Home Care, Inc.
Bethany Hospice, LLC
California Hospice, LLC
Chaparral Hospice, Inc.
Colorado Hospice, L.L.C.
Faith Home Health and Hospice, LLC
Faith in Home Services, L.L.C.
First Home Health, Inc.
Georgia Hospice, LLC
Girling Health Care Services of Knoxville, Inc.
Girling Health Care, Inc.
Harden Clinical Services, LLC
Harden HC Texas Holdco, LLC
Harden Healthcare Holdings, LLC.
Harden Healthcare Services, LLC
Harden Healthcare, LLC
Harden Home Health, LLC
Harden Home Option, LLC

	

Harden Hospice, LLC
Hawkeye Health Services, Inc.
HomeCare Plus, Inc.
Horizon Health Care Services, Inc.
Hospice Care of Kansas and Missouri, L.L.C.
Hospice Care of Kansas, L.L.C.
Hospice Care of the Midwest, L.L.C.
Iowa Hospice, L.L.C.
Isidora’s Health Care Inc.
Lakes Hospice, L.L.C.
Lighthouse Hospice - Coastal Bend, LLC
Lighthouse Hospice - Metroplex, LLC
Lighthouse Hospice - San Antonio, LLC
Lighthouse Hospice Management, LLC
Lighthouse Hospice Partners, LLC
Missouri Home Care of Rolla, Inc.
Nursing Care - Home Health Agency, Inc.
Odyssey HealthCare of Savannah, LLC
Omega Hospice, LLC
Saturday Partners, LLC
The American Heartland Hospice Corp.
The Home Option, LLC
The Home Team of Kansas, LLC
Voyager Home Health, Inc.
Voyager HospiceCare, Inc.
We Care Home Health Services, Inc.

	
			
	By:
	/s/ Tony Strange

	Name:
	Tony Strange

	Title:
	Chief Executive Officer and President

	 
	 
	 

	Voyager Acquisition, L.P.

	 
	 
	 

	 
	By its General Partner:

	 
	 
	 

	 
	American Hospice, Inc.

	 
	 
	 

	 
	By:
	/s/ Tony Strange

	 
	Name:
	Tony Strange

	 
	Title:
	Chief Executive Officer and President

[Signature Page to Supplemental Indenture]

	
		
	The Bank of New York Mellon Trust Company, N.A., as trustee

	By:
	/s/ Michael Countryman

	Name:
	Michael Countryman

	Title:
	Vice President

[Signature Page to Supplemental Indenture]Exhibit 10.11

 

 

 

 

STELLAR
BIOTECHNOLOGIES, INC.

(the “Company”)

 

FIXED SHARE OPTION PLAN

 

Dated for Reference December 18, 2013

 

 

 

ARTICLE
1

PURPOSE AND INTERPRETATION

 

Purpose

 

1.1The purpose of
this Plan is to advance the interests of the Company by encouraging equity participation in the Company through the acquisition
of Common Shares of the Company. It is the intention of the Company that this Plan will at all times be in compliance with TSX
Venture Policies (or, if applicable, NEX Policies) and any inconsistencies between this Plan and TSX Venture Policies (or, if applicable,
NEX Policies) will be resolved in favour of the latter.

 

Definitions

 

1.2In this Plan

 

(a)Affiliate
means a company that is a parent or subsidiary of the Company, or that is controlled by the same entity as the Company;

 

(b)Associate
has the meaning set out in the Securities Act;

 

(c)Black-out
Period means an interval of time during which the Company has determined that one or more Participants may not trade any securities
of the Company because they may be in possession of undisclosed material information pertaining to the Company, or when in anticipation
of the release of quarterly or annual financials, to avoid potential conflicts associated with a company’s insider-trading
policy or applicable securities legislation, (which, for greater certainty, does not include the period during which a cease trade
order is in effect to which the Company or in respect of an Insider, that Insider, is subject);

 

(d)Board
means the board of directors of the Company or any committee thereof duly empowered or authorized to grant Options under this Plan;

 

(e)Change
of Control includes situations where after giving effect to the contemplated transaction and as a result of such transaction:

 

    	 

    	- 1 -

    

 

(i) any one Person holds a sufficient number
of voting shares of the Company or resulting company to affect materially the control of the Company or resulting company, or,

 

(ii) any combination of Persons, acting in concert
by virtue of an agreement, arrangement, commitment or understanding, holds in total a sufficient number of voting shares of the
Company or its successor to affect materially the control of the Company or its successor,

 

where such Person or combination of Persons did not
previously hold a sufficient number of voting shares to materially affect control of the Company or its successor and, in the absence
of evidence to the contrary, any Person or combination of Persons acting in concert by virtue of an agreement, arrangement, commitment
or understanding, holding more than 20% of the voting shares of the Company or resulting company is deemed to materially affect
control of the Company or resulting company;

 

(f)Common
Shares means the common shares without par value in the capital of the Company providing such class is listed on the TSX Venture
(or, NEX, as the case may be);

 

(g)Company
means the company named at the top hereof and includes, unless the context otherwise requires, all of its Affiliates and successors
according to law;

 

(h)Consultant
means an individual or Consultant Company, other than an Employee, Officer or Director that:

 

(i) provides on an ongoing
bona fide basis, consulting, technical, managerial or like services to the Company or an Affiliate of the Company, other than services
provided in relation to a Distribution;

 

(ii) provides the services
under a written contract between the Company or an Affiliate and the individual or the Consultant Company;

 

(iii) in the reasonable opinion
of the Company, spends or will spend a significant amount of time and attention on the business and affairs of the Company or an
Affiliate of the Company; and

 

(iv) has a relationship with
the Company or an Affiliate of the Company that enables the individual or Consultant Company to be knowledgeable about the business
and affairs of the Company;

 

(i)Consultant
Company means for an individual consultant, a company or partnership of which the individual is an employee, shareholder or
partner;

 

(j)Directors
means the directors of the Company as may be elected from time to time;

 

(k)Discounted
Market Price has the meaning assigned by Policy 1.1 of the TSX Venture Policies;

 

    	 

    	- 2 -

    

 

(l)Disinterested
Shareholder Approval means approval by a majority of the votes cast by all the Company’s shareholders at a duly constituted
shareholders’ meeting, excluding votes attached to Common Shares beneficially owned by Insiders who are Service Providers
or their Associates;

 

(m)Distribution
has the meaning assigned by the Securities Act, and generally refers to a distribution of securities by the Company from treasury;

 

(n)Effective
Date for an Option means the date of grant thereof by the Board;

 

(o)Employee
means:

 

(i)an individual who is considered
an employee under the Income Tax Act Canada (i.e. for whom income tax, employment insurance and CPP deductions must be made
at source);

 

(ii)an individual who works
full-time for the Company or a subsidiary thereof providing services normally provided by an employee and who is subject to the
same control and direction by the Company over the details and methods of work as an employee of the Company, but for whom income
tax deductions are not made at source; or

 

(iii)an individual who works
for the Company or its subsidiary on a continuing and regular basis for a minimum amount of time per week providing services normally
provided by an employee and who is subject to the same control and direction by the Company over the details and methods of work
as an employee of the Company, but for whom income tax deductions need not be made at source;

 

(p)Exchange
Hold Period has the meaning assigned by Policy 1.1 of the TSX Venture Policies;

 

(q)Exercise
Price means the amount payable per Common Share on the exercise of an Option, as determined in accordance with the terms hereof;

 

(r)Expiry
Date means the day on which an Option lapses as specified in the Option Commitment therefor or in accordance with the
terms of this Plan;

 

(s)Insider
means an insider as defined in the TSX Venture Policies or as defined in securities legislation applicable to the Company;

 

(t)Investor
Relations Activities has the meaning assigned by Policy 1.1 of the TSX Venture Policies;

 

(u)Management
Company Employee means an individual employed by a Person providing management services to the Company which are required for
the ongoing successful operation of the business enterprise of the Company, but excluding a Person engaged in Investor Relations
Activities;

 

    	 

    	- 3 -

    

 

(v)Market
Price has the meaning assigned by Policy 1.1 of the TSX Venture Policies;

 

(w)NEX
means a separate board of the TSX Venture for companies previously listed on the TSX Venture or the Toronto Stock Exchange
which have failed to maintain compliance with the ongoing financial listing standards of those markets;

 

(x)NEX
Issuer means a company listed on NEX;

 

(y)NEX
Policies means the rules and policies of NEX as amended from time to time;

 

(z)Officer
means a Board appointed officer of the Company;

 

(aa)Option
means the right to purchase Common Shares granted hereunder to a Service Provider;

 

(bb)Option
Commitment means the notice of grant of an Option delivered by the Company hereunder to a Service Provider and substantially
in the form of Schedule A attached hereto;

 

(cc)Optioned
Shares means Common Shares that may be issued in the future to a Service Provider upon the exercise of an Option;

 

(dd)Optionee
means the recipient of an Option hereunder;

 

(ee)Outstanding
Shares means at the relevant time, the number of issued and outstanding Common Shares of the Company from time to time;

 

(ff)Participant
means a Service Provider that becomes an Optionee;

 

(gg)Person
includes a company, any unincorporated entity, or an individual;

 

(hh)Plan
means this share option plan, the terms of which are set out herein or as may be amended;

 

(ii)Plan
Shares means the total number of Common Shares which may be reserved for issuance as Optioned Shares under the Plan as provided
in §2.2;

 

(jj)Regulatory
Approval means the approval of the TSX Venture and any other securities regulatory authority that has lawful jurisdiction over
the Plan and any Options issued hereunder;

 

(kk)Securities
Act means the Securities Act, R.S.B.C. 1996, c. 418, or any successor legislation;

 

(ll)Service
Provider means a Person who is a bona fide Director, Officer, Employee, Management Company Employee, Consultant or Company
Consultant, and also includes a company, 100% of the share capital of which is beneficially owned by one or more Service Providers;

 

    	 

    	- 4 -

    

 

(mm)Share
Compensation Arrangement means any Option under this Plan but also includes any other stock option, stock option plan, employee
stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares
to a Service Provider;

 

(nn)Shareholder
Approval means approval by a majority of the votes cast by eligible shareholders of the Company at a duly constituted shareholders’
meeting;

 

(oo)Take
Over Bid means a take over bid as defined in Multilateral Instrument 62-104 (Take-over Bids and Issuer Bids) or the analogous
provisions of securities legislation applicable to the Company;

 

(pp)TSX
Venture means the TSX Venture Exchange and any successor thereto; and

 

(qq)TSX
Venture Policies means the rules and policies of the TSX Venture as amended from time to time.

 

Other Words and Phrases

 

1.3Words and phrases
used in this Plan but which are not defined in the Plan, but are defined in the TSX Venture Policies (and, if applicable, the NEX
Policies), will have the meaning assigned to them in the TSX Venture Policies (and, if applicable, NEX Policies).

 

Gender

 

1.4Words importing the masculine gender
include the feminine or neuter, words in the singular include the plural, words importing a corporate entity include individuals,
and vice versa.

 

ARTICLE
2

SHARE OPTION PLAN

 

Establishment of Share Option Plan

 

2.1The Plan is hereby
established to recognize contributions made by Service Providers and to create an incentive for their continuing assistance to
the Company and its Affiliates.

 

Maximum Plan Shares

 

2.2The maximum aggregate
number of Plan Shares that may be reserved for issuance under the Plan at any point in time is 10,000,000 Shares, less any Common
Shares reserved for issuance under share options granted under Share Compensation Arrangements other than this Plan, unless this
Plan is amended pursuant to the requirements of the TSX Venture Policies (and, if applicable, NEX Policies).

 

    	 

    	- 5 -

    

 

Eligibility

 

2.3Options to purchase
Common Shares may be granted hereunder to Service Providers of the Company, or its affiliates, from time to time by the Board.
Service Providers that are not individuals will be required to undertake in writing not to effect or permit any transfer of ownership
or option of any of its securities, or to issue more of its securities (so as to indirectly transfer the benefits of an Option),
as long as such Option remains outstanding, unless the written permission of the TSX Venture and the Company is obtained.

 

Options Granted Under the Plan

 

2.4All Options granted
under the Plan will be evidenced by an Option Commitment in the form attached as Schedule A, showing the number of Optioned Shares,
the term of the Option, a reference to vesting terms, if any, and the Exercise Price.

 

2.5Subject to specific
variations approved by the Board, all terms and conditions set out herein will be deemed to be incorporated into and form part
of an Option Commitment made hereunder.

 

Limitations on Issue

 

2.6Subject to §2.10,
the following restrictions on issuances of Options are applicable under the Plan:

 

(a)no
Service Provider can be granted an Option if that Option would result in the total number of Options, together with all other Share
Compensation Arrangements granted to such Service Provider in the previous 12 months, exceeding 5% of the Outstanding Shares, unless
the Company has obtained Disinterested Shareholder Approval to do so;

 

(b)the
aggregate number of Options granted to all Service Providers conducting Investor Relations Activities in any 12-month period cannot
exceed 2% of the Outstanding Shares, calculated at the time of grant, without the prior consent of the TSX Venture (or NEX, as
the case may be); and

 

(c)the
aggregate number of Options granted to any one Consultant in any 12 month period cannot exceed 2% of the Outstanding Shares, calculated
at the time of grant, without the prior consent of the TSX Venture.

 

Options Not Exercised

 

2.7In the event an
Option granted under the Plan expires unexercised or is terminated by reason of dismissal of the Optionee for cause or is otherwise
lawfully cancelled prior to exercise of the Option, the Optioned Shares that were issuable thereunder will be returned to the Plan
and will be eligible for re-issuance.

 

    	 

    	- 6 -

    

 

Powers of the Board

 

2.8The Board will
be responsible for the general administration of the Plan and the proper execution of its provisions, the interpretation of the
Plan and the determination of all questions arising hereunder. Without limiting the generality of the foregoing, the Board has
the power to

 

(a)allot Common Shares for
issuance in connection with the exercise of Options;

 

(b)grant
Options hereunder;

 

(c)subject
to any necessary Regulatory Approval, amend, suspend, terminate or discontinue the Plan, or revoke or alter any action taken in
connection therewith, except that no general amendment or suspension of the Plan will, without the prior written consent of all
Optionees, alter or impair any Option previously granted under the Plan unless the alteration or impairment occurred as a result
of a change in the TSX Venture Policies or the Company’s tier classification thereunder; and

 

(d)delegate
all or such portion of its powers hereunder as it may determine to one or more committees of the Board, either indefinitely or
for such period of time as it may specify, and thereafter each such committee may exercise the powers and discharge the duties
of the Board in respect of the Plan so delegated to the same extent as the Board is hereby authorized so to do.

 

Amendment of the Plan by the Board of Directors

 

2.9Subject
to the requirements of the TSX Venture Policies and the prior receipt of any necessary Regulatory Approval, the Board may in its
absolute discretion, amend or modify the Plan or any Option granted as follows:

 

(a)it
may make amendments which are of a typographical, grammatical or clerical nature only;

 

(b)it
may change the vesting provisions of an Option granted hereunder, subject to prior written approval of the TSX Venture, if applicable;

 

(c)it
may change the termination provision of an Option granted hereunder which does not entail an extension beyond the original Expiry
Date of such Option;

 

(d)it
may make amendments necessary as a result in changes in securities laws applicable to the Company;

 

(e)if
the Company becomes listed or quoted on a stock exchange or stock market senior to the TSX Venture, it may make such amendments
as may be required by the policies of such senior stock exchange or stock market; and

 

(f)it
may make such amendments as reduce, and do not increase, the benefits of this Plan to Service Providers.

 

    	 

    	- 7 -

    

 

Amendments Requiring Disinterested Shareholder Approval

 

2.10The Company will
be required to obtain Disinterested Shareholder Approval prior to any of the following actions becoming effective:

 

(a)the
Plan, together with all of the Company’s other previous Share Compensation Arrangements, could result at any time in:

 

(i)the aggregate
number of Common Shares reserved for issuance under Options granted to Insiders exceeding 10% of the Outstanding Shares;

 

(ii)the number
of Optioned Shares issued to Insiders within a one-year period exceeding 10% of the Outstanding Shares; or,

 

(iii)the
issuance to any one Optionee, within a 12-month period, of a number of Common Shares exceeding 5% of the Outstanding Shares; or

 

(b)any
reduction in the Exercise Price of an Option previously granted to an Insider.

 

Options Granted Under the Company’s Previous Share
Option Plans

 

2.11Any option granted
pursuant to a stock option plan previously adopted by the Board which is outstanding at the time this Plan comes into effect shall
be deemed to have been issued under this Plan and shall, as of the date this Plan comes into effect, be governed by the terms and
conditions hereof.

 

ARTICLE
3

TERMS AND CONDITIONS OF OPTIONS

 

Exercise Price

 

3.1The Exercise Price
of an Option will be set by the Board at the time such Option is allocated under the Plan, and cannot be less than the Discounted
Market Price.

 

Term of Option

 

3.2An Option can
be exercisable for a maximum of 10 years from the Effective Date.

 

Option Amendment

 

3.3Subject to §2.10(b),
the Exercise Price of an Option may be amended only if at least six (6) months have elapsed since the later of the date of commencement
of the term of the Option, the date the Common Shares commenced trading on the TSX Venture, or the date of the last amendment of
the Exercise Price.

 

3.4An Option must
be outstanding for at least one year before the Company may extend its term, subject to the limits contained in §3.2.

 

    	 

    	- 8 -

    

 

3.5Any proposed amendment
to the terms of an Option must be approved by the TSX Venture prior to the exercise of such Option.

 

Vesting of Options

 

3.6Subject to §3.7,
vesting of Options shall be at the discretion of the Board and, with respect to any particular Options granted under the Plan,
in the absence of a vesting schedule being specified at the time of grant, all such Options shall vest immediately. Where applicable,
vesting of Options will generally be subject to:

 

(a)the
Service Provider remaining employed by or continuing to provide services to the Company or any of its Affiliates as well as, at
the discretion of the Board, achieving certain milestones which may be defined by the Board from time to time or receiving a satisfactory
performance review by the Company or any of its Affiliates during the vesting period; or

 

(b)the
Service Provider remaining as a Director of the Company or any of its Affiliates during the vesting period.

 

Vesting of Options Granted to Consultants Conducting Investor
Relations Activities

 

3.7Notwithstanding
§3.6, Options granted to Consultants conducting Investor Relations Activities will vest:

 

(a)over
a period of not less than 12 months as to 25% on the date that is three months from the date of grant, and a further 25% on each
successive date that is three months from the date of the previous vesting; or

 

(b)such
longer vesting period as the Board may determine.

 

Effect of Take-Over Bid

 

3.8If a Take Over
Bid is made to the shareholders generally then the Company shall immediately upon receipt of notice of the Take Over Bid, notify
each Optionee currently holding an Option of the Take Over Bid, with full particulars thereof whereupon such Option may, notwithstanding
§3.6 and §3.7 or any vesting requirements set out in the Option Commitment, be immediately exercised in whole or in part
by the Optionee, subject to approval of the TSX Venture (or the NEX, as the case may be) for vesting requirements imposed by the
TSX Venture Policies.

 

Acceleration of Vesting on Change of Control

 

3.9In the event of
a Change of Control occurring, Options granted and outstanding, which are subject to vesting provisions, shall be deemed to have
immediately vested upon the occurrence of the Change of Control, except for Options granted to Consultants conducting Investor
Relations Activities.

 

    	 

    	- 9 -

    

 

Extension of Options Expiring During Blackout Period

 

3.10Should the Expiry
Date for an Option fall within a Blackout Period, or within nine (9) Business Days following the expiration of a Blackout Period,
such Expiry Date shall, subject to approval of the TSX Venture (or the NEX, as the case may be), be automatically extended without
any further act or formality to that day which is the tenth (10th) Business Day after the end of the Blackout Period, such tenth
Business Day to be considered the Expiry Date for such Option for all purposes under the Plan. Notwithstanding §2.8, the tenth
Business Day period referred to in this §3.10 may not be extended by the Board.

 

Optionee Ceasing to be Director, Employee or Service Provider

 

3.11Options may be
exercised after the Service Provider has left his/her employ/office or has been advised by the Company that his/her services are
no longer required or his/her service contract has expired, until the term applicable to such Options expires, except as follows:

 

(a)in
the case of the death of an Optionee, any vested Option held by him at the date of death will become exercisable by the Optionee’s
lawful personal representatives, heirs or executors until the earlier of one year after the date of death of such Optionee and
the date of expiration of the term otherwise applicable to such Option;

 

(b)an
Option granted to any Service Provider will expire 90 days (or such other time, not to exceed one year, as shall be determined
by the Board as at the date of grant or agreed to by the Board and the Optionee at any time prior to expiry of the Option) after
the date the Optionee ceases to be employed by or provide services to the Company, and only to the extent that such Option was
vested at the date the Optionee ceased to be so employed by or to provide services to the Company; and

 

(c)in
the case of an Optionee being dismissed from employment or service for cause, such Optionee’s Options, whether or not vested
at the date of dismissal will immediately terminate without right to exercise same.

 

Non Assignable

 

3.12Subject to §3.11(a),
all Options will be exercisable only by the Optionee to whom they are granted and will not be assignable or transferable.

 

Adjustment of the Number of Optioned Shares

 

3.13The number of
Common Shares subject to an Option will be subject to adjustment in the events and in the manner following:

 

(a)in
the event of a subdivision of Common Shares as constituted on the date hereof, at any time while an Option is in effect, into a
greater number of Common Shares, the Company will thereafter deliver at the time of purchase of Optioned Shares hereunder, in addition
to the number of Optioned Shares in respect of which the right to purchase is then being exercised, such additional number of Common
Shares as result from the subdivision without an Optionee making any additional payment or giving any other consideration therefor;

 

    	 

    	- 10 -

    

 

(b)in
the event of a consolidation of the Common Shares as constituted on the date hereof, at any time while an Option is in effect,
into a lesser number of Common Shares, the Company will thereafter deliver and an Optionee will accept, at the time of purchase
of Optioned Shares hereunder, in lieu of the number of Optioned Shares in respect of which the right to purchase is then being
exercised, the lesser number of Common Shares as result from the consolidation;

 

(c)in
the event of any change of the Common Shares as constituted on the date hereof, at any time while an Option is in effect, the Company
will thereafter deliver at the time of purchase of Optioned Shares hereunder the number of shares of the appropriate class resulting
from the said change as an Optionee would have been entitled to receive in respect of the number of Common Shares so purchased
had the right to purchase been exercised before such change;

 

(d)in
the event of a capital reorganization, reclassification or change of outstanding equity shares (other than a change in the par
value thereof) of the Company, a consolidation, merger or amalgamation of the Company with or into any other company or a sale
of the property of the Company as or substantially as an entirety at any time while an Option is in effect, an Optionee will thereafter
have the right to purchase and receive, in lieu of the Optioned Shares immediately theretofore purchasable and receivable upon
the exercise of the Option, the kind and amount of shares and other securities and property receivable upon such capital reorganization,
reclassification, change, consolidation, merger, amalgamation or sale which the holder of a number of Common Shares equal to the
number of Optioned Shares immediately theretofore purchasable and receivable upon the exercise of the Option would have received
as a result thereof. The subdivision or consolidation of Common Shares at any time outstanding (whether with or without par value)
will not be deemed to be a capital reorganization or a reclassification of the capital of the Company for the purposes of this
§3.13;

 

(e)an
adjustment will take effect at the time of the event giving rise to the adjustment, and the adjustments provided for in this section
are cumulative;

 

(f)the
Company will not be required to issue fractional shares in satisfaction of its obligations hereunder. Any fractional interest in
a Common Share that would, except for the provisions of this §3.13, be deliverable upon the exercise of an Option will be
cancelled and not be deliverable by the Company; and

 

(g)if
any questions arise at any time with respect to the Exercise Price or number of Optioned Shares deliverable upon exercise of an
Option in any of the events set out in this §3.13, such questions will be conclusively determined by the Company’s auditors,
or, if they decline to so act, any other firm of Chartered Accountants, in Vancouver, British Columbia (or in the city of the Company’s
principal executive office) that the Company may designate and who will be granted access to all appropriate records and such determination
will be binding upon the Company and all Optionees.

 

    	 

    	- 11 -

    

 

ARTICLE
4

commitment and exercise PROCEDURES

 

Option Commitment

 

4.1Upon grant of
an Option hereunder, an authorized officer of the Company will deliver to the Optionee an Option Commitment detailing the terms
of such Options and upon such delivery the Optionee will be subject to the Plan and have the right to purchase the Optioned Shares
at the Exercise Price set out therein subject to the terms and conditions hereof, including any additional requirements contemplated
with respect to the payment of required withholding taxes on behalf of Optionees.

 

Manner of Exercise

 

4.2An Optionee who
wishes to exercise his Option may do so by delivering

 

(a)a written
notice to the Company specifying the number of Optioned Shares being acquired pursuant to the Option; and

 

(b)a certified
cheque, wire transfer or bank draft payable to the Company for the aggregate Exercise Price for the Optioned Shares being acquired,
plus any required withholding tax amount subject to §4.3.

 

Tax Withholding and Procedures

 

4.3Notwithstanding
anything else contained in this Plan, the Company may, from time to time, implement such procedures and conditions as it determines
appropriate with respect to the withholding and remittance of taxes imposed under applicable law, or the funding of related amounts
for which liability may arise under such applicable law. Without limiting the generality of the foregoing, an Optionee who wishes
to exercise an Option must, in addition to following the procedures set out in§4.2 and elsewhere in this Plan, and as a condition
of exercise:

 

(a)deliver
a certified cheque, wire transfer or bank draft payable to the Company for the amount determined by the Company to be the appropriate
amount on account of such taxes or related amounts; or

 

(b)otherwise
ensure, in a manner acceptable to the Company (if at all) in its sole and unfettered discretion, that the amount will be securely
funded;

 

and must in
all other respects follow any related procedures and conditions imposed by the Company.

 

Delivery of Optioned Shares and Hold Periods

 

4.4As soon as practicable
after receipt of the notice of exercise described in §4.2 and payment in full for the Optioned Shares being acquired, the
Company will direct its transfer agent to issue to the Optionee the appropriate number of Optioned Shares. If the Exercise Price
is set below the then current market price of the Common Shares on the TSX Venture at the time of grant, the certificate representing
the Optioned Shares or written notice in the case of uncertificated shares will include a legend stipulating that the Optioned
Shares issued are subject to a four-month Exchange Hold Period commencing the date of the Option Commitment.

 

    	 

    	- 12 -

    

 

ARTICLE
5

GENERAL

 

Employment and Services

 

5.1Nothing contained
in the Plan will confer upon or imply in favour of any Optionee any right with respect to office, employment or provision of services
with the Company, or interfere in any way with the right of the Company to lawfully terminate the Optionee’s office, employment
or service at any time pursuant to the arrangements pertaining to same. Participation in the Plan by an Optionee is voluntary.

 

No Representation or Warranty

 

5.2The Company makes
no representation or warranty as to the future market value of Common Shares issued in accordance with the provisions of the Plan
or to the effect of the Income Tax Act (Canada) or any other taxing statute governing the Options or the Common Shares issuable
thereunder or the tax consequences to a Service Provider. Compliance with applicable securities laws as to the disclosure and resale
obligations of each Participant is the responsibility of each Participant and not the Company.

 

Interpretation

 

5.3The Plan will
be governed and construed in accordance with the laws of the Province of British Columbia.

 

Effective Date of Plan

 

5.4The Plan will
become effective from and after December 18, 2013, and will remain effective provided that the Plan, or any amended version thereof,
receives Shareholder Approval as required by the TSX Venture Policies.

 

Amendment of the Plan

 

5.5The Board reserves
the right, in its absolute discretion, to at any time amend, modify or terminate the Plan with respect to all Common Shares in
respect of Options which have not yet been granted hereunder. Any amendment to any provision of the Plan will be subject to any
necessary Regulatory Approvals unless the effect of such amendment is intended to reduce (but not to increase) the benefits of
this Plan to Service Providers.

 

 

 

    	 

    	 

    

 

SCHEDULE A

 

SHARE OPTION PLAN

 

OPTION COMMITMENT

 

Notice is hereby given that, effective
this ________ day of ________________, __________ (the “Effective Date”) STELLAR BIOTECHNOLOGIES, INC. (the
“Company”) has granted to ___________________________________________ (the “Optionee”), an Option to acquire
______________ Common Shares (“Optioned Shares”) up to 5:00 p.m. Vancouver Time on the __________ day of ____________________,
__________ (the “Expiry Date”) at an Exercise Price of Cdn$____________ per share.

 

Optioned Shares are to vest immediately.

 

OR

 

Optioned Shares will vest [INSERT VESTING
SCHEDULE AND TERMS]

 

The Option shall expire 
days after the Optionee ceases to be employed by or provide services to the Company.

 

The grant of the Option evidenced hereby
is made subject to the terms and conditions of the Plan, which are hereby incorporated herein and form part hereof.

 

To exercise your Option, deliver a written
notice specifying the number of Optioned Shares you wish to acquire, together with a certified cheque, wire transfer or bank draft
payable to the Company for the aggregate Exercise Price. A certificate, or written notice in the case of uncertificated shares,
for the Optioned Shares so acquired will be issued by the transfer agent as soon as practicable thereafter and may bear a minimum
four month non-transferability legend from the date of this Option Commitment, the text of which is as follows. [Note: A Company
may grant stock options without a hold period, provided the exercise price of the options is set at or above the market price of
the Company’s shares. If a four month hold period is applicable, the following legend must be placed on the certificate or
the written notice in the case of uncertificated shares.]

 

"WITHOUT PRIOR WRITTEN APPROVAL
OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE
MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE
IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL 12:00 A.M. (MIDNIGHT) ON [insert date 4 months from the date
of grant]”.

 

The Company and the Optionee represent
that the Optionee under the terms and conditions of the Plan is a bona fide Service Provider (as defined in the Plan), entitled
to receive Options under TSX Venture Policies.

 

    	 

    	- 2 -

    

 

The Optionee also acknowledges and consents to the collection
and use of Personal Information (as defined in the Policies of the TSX Venture Exchange) by both the Company and the TSX Venture
(or the NEX, as the case may be) as more particularly set out in the Acknowledgement - Personal Information in use by the TSX Venture
(or the NEX, as the case may be) on the date of this Option Commitment.

 

STELLAR BIOTECHNOLOGIES, INC.

 

 

	STELLAR BIOTECHNOLOGIES, INC.	 
	Authorized Signatory	 
	[insert name of optionee]	 
	Signature of Optionee

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