Document:

Exhibit 4.7

 

TALEND

 

2017 STOCK OPTION PLAN

 

 

Subject to the authorization to be granted by the combined ordinary and extraordinary general shareholders’ meeting of June 6th, 2017, the board of directors decided on April 20th, 2017, in compliance with the provisions of articles L. 225-177 et. seq. of the French Commercial Code, to adopt the 2017 stock option plan of TALEND, the terms and conditions of which are set out below.

 

1.                                     PURPOSES OF THE PLAN

 

The purposes of the Plan are:

 

·                                        to attract and retain the best available personnel for positions of substantial responsibility;

 

·                                        to provide additional incentive to Beneficiaries; and

 

·                                        to promote the success of the Company’s business.

 

Options granted under the Plan to U.S. Beneficiaries are intended to be Incentive Stock Options or Non-Statutory Stock Options, as determined by the Administrator at the time of grant of an Option, and shall comply in all respects with Applicable Laws in order that they may benefit from available tax advantages.

 

2.                                     DEFINITIONS.

 

(a)                                “Administrator” means the board of the Company which shall administer the Plan in accordance with Section 4 of the Plan.

 

(b)                                “Affiliated Company” means a company which conforms with the criteria set forth in article L. 225-180 of the Law as follows:

 

·                                          companies of which at least ten per cent (10%) of the share capital or voting rights is held directly or indirectly by the Company;

 

·                                          companies which own directly or indirectly at least ten per cent (10%) of the share capital or voting rights of the Company; and

 

·                                          companies of which at least fifty per cent (50%) of the share capital or voting rights is held directly or indirectly by a company which owns directly or indirectly at least fifty percent (50%) of the share capital or voting rights of the Company,

 

(c)                                 “Applicable Laws” means, for any relevant country, the legal requirements relating to the administration of stock option plans under state corporate and securities laws applicable in such country, and, for the U.S., the Code in force in the United States of America.

 

(d)                                “Beneficiary” means the president of the board of directors (président du conseil d’administration), the general manager (directeur général) and the deputy general managers (directeurs généraux délégués) or, as the case may be, the president and the members of the management board (président et membres du directoire) of the Company as well as any individual employed by the Company or by any Affiliated

 

 

Company under the terms and conditions of an employment contract, it being specified that a term of  office of director of the Company or director of an Affiliated Company (remunerated or not) shall not be deemed to constitute an employment relationship.

 

(e)                                 “Board” means the board of directors of the Company.

 

(f)                                  “Code” means the United States Internal Revenue Code of 1986, as amended.

 

(g)                                 “Company” means TALEND, a corporation organized under the laws of the Republic of France.

 

(h)                                “Continuous Status as a Beneficiary” means as regards the president of the board of directors, the general manager, the deputy general manager(s) or, as the case may be, the president and the members of the management board that the term of their office has not been terminated and, as regards an employee that the employment relationship between the Beneficiary and the Company or any Affiliated Company is not terminated. Continuous Status as a Beneficiary shall not be considered terminated in the case of (i) any leave of absence having received a prior approval from the Company or requiring no prior approval under U.S. laws, or (ii) transfers between locations of the Company or between the Company or any Affiliated Company or the contrary or also from an Affiliated Company to another Affiliated Company. Leaves of absence which must receive a prior approval from the Company for the non-termination of the Continuous Status as a Beneficiary shall include leaves of more than three (3) months for illnesses or conditions about which the employee has advance knowledge, military leave, or any other personal leave. For purposes of U.S. Beneficiaries and Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute contract or Company policies. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by a U.S. Beneficiary shall cease to be treated as an Incentive Stock Option and shall be treated for U.S. tax purposes as a Non-Statutory Stock Option.

 

(i)                                    “Date of Dismissal” means the date the employee received its dismissal letter.

 

(j)                                   “Date of Grant” means the date of the decision of the Board to grant the Options.

 

(k)                                “Disability” means a disability declared further to a medical examination provided for in article L. 4624-21 of the French Labour Code or pursuant to any similar provision applicable to a foreign Affiliated Company.

 

(l)                                    “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 

(m)                            “Fair Market Value” means the value for one Share as determined in good faith by the Administrator, according to the following provision, as provided in the Shareholder Authorization:

 

· as long as the Company is listed on the Nasdaq Global Market, the Board may determine the subscription or purchase price of a share by reference to the Euro equivalent of the US dollars amount of the closing sale price of one share of the Company represented by an American Depositary Share (“ADS”) on the Nasdaq Global Market on the last market trading day prior to the decision of the Board to grant the Options,

 

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it being specified that, when an Option entitles the holder to purchase shares previously repurchased by the Company, the exercise price, notwithstanding the above provisions and in  accordance with applicable law, may not be less than 80% of the average purchase price paid by the Company for all shares so previously repurchased.

 

This price settled for the subscription or purchase of Shares shall not be modified during the period in which the Option may be exercised. However, if the Company makes one of the operations mentioned in article L. 225-181 of the French Commercial Code, it must take all necessary measures to protect Optionee’s interests in the conditions provided for by article L 228-99 of the French Commercial Code. In case of issuance of securities granting access to the share capital of the Company, as well as in case of the Company’s merger or spin off (scission), the Board may decide, for a limited period of time, to suspend the right to exercise the Options.

 

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

 

(o)                                “Law” means the French Commercial Code.

 

(p)                                “Non-Statutory Stock Option” means an Option which does not qualify as an Incentive Stock Option.

 

(q)                                “Notice of Grant” means a written notice evidencing the main terms and conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement.

 

(r)                                   “Officer” means either a U.S. Beneficiary designed by the Company or an Affiliated Company, as the case may be, as an officer (as defined in section 16 of the Exchange Act and its regulations),

 

(s)                                  “Option” means an option to purchase or subscribe Shares granted pursuant to the Plan.

 

(t)                                   “Optionee” means a Beneficiary who holds at least one outstanding Option.

 

(u)                                “Option Agreement” means a written agreement entered into between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan.

 

(v)                                “Option Exchange Program” means a program whereby outstanding Options are surrendered in exchange for Options with different exercise conditions.

 

(w)                              “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

(x)                                “Plan” means the 2017 Stock Option Plan as approved by the Board on April 20th, 2017 and the shareholders on June 6th, 2017.

 

(y)                                “Retirement” means, pursuant to article L. 1237-5 of the French labor code, the retirement, upon the employer’s decision, at full rate of an employee who has reached the age giving right to retirement, or any similar provision applicable to a foreign Affiliated Company.

 

(z)                                 “Share” means a share of the Company

 

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(aa)                         “Shareholders Authorization” means the authorization given by the shareholders of the Company in the combined ordinary and extraordinary general meeting dated June 6th, 2017 as increased or amended from time to time by a further general meeting of the shareholders permitting the Board to grant Stock Options.

 

(bb)                         “Share Capital” means the issued and paid up capital of the Company.

 

(cc)                           “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

(dd)                         “U.S. Beneficiary” means a Beneficiary of the Company or an Affiliated Company residing in the United States or otherwise subject to United States’ laws, regulations or taxation.

 

3.                                     SHARES SUBJECT TO THE PLAN

 

Subject to the provisions of Section 11 of the Plan and pursuant to the Shareholder Authorization, the maximum aggregate number of Shares which may be optioned and issued under the Plan is equal to 2,000,000 with a nominal value of 0.08 Euro each, as may be adjusted to take into account any operation of split or grouping of Shares.  For “Incentive Stock Options”, the maximum number of Shares which may be optioned and issued is equal to 2,000,000.  The Shares optioned and issued under the Plan may be newly issued Shares, treasury Shares or Shares purchased on the open market.

 

Should the Option expire or become unexercisable for any reason without having been exercised in full, the unsubscribed Shares which were subject thereto shall, unless the Plan shall have been terminated, become available again for future grant under the Plan.

 

4.                                     ADMINISTRATION OF THE PLAN

 

(a)                               Procedure

 

The Plan shall be administered by the Administrator.

 

(b)                               Powers of the Administrator.

 

Subject to the provisions of the Law, the Shareholders Authorization, the Plan, and the Applicable Laws, the Administrator shall have the authority, in its discretion:

 

(i)                                    to determine the Fair Market Value of the Shares, in accordance with Section 2(m) of the Plan;

 

(ii)                                to determine the Beneficiaries to whom Options may be granted hereunder;

 

(iii)                            to select the Beneficiaries and determine whether and to what extent Options are granted hereunder;

 

(iv)                              to approve or amend forms of agreement for use under the Plan;

 

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(v)                                  to determine the terms and conditions of any Options granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or the Shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine with the exception of the exercise price; it being specified that the Administrator’s discretion remains subject to the rules and limitations set forth in this Plan and in the Law;

 

(vi)                              to construe and interpret the terms of the Plan and Options granted pursuant to the Plan;

 

(vii)                          to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

 

(viii)                      to modify or amend each Option (subject to the provisions of Section 13(c) of the Plan), including the discretionary authority to extend the post-termination exercise period of Options after the termination of the employment agreement or the end of the term of office, longer than is otherwise provided for in the Plan;

 

(ix)                              to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator;

 

(x)                                 to implement an Option Exchange Program;

 

(xi)                              to determine the terms and restrictions applicable to Options; and

 

(xii)                          to make all other determinations deemed necessary or appropriate for administering the Plan.

 

(c)                                Effect of Administrator’s Decision.

 

The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees.

 

5.                                     LIMITATIONS

 

(a)                                In the case of U.S. Beneficiaries, each Option shall be designated in the Notice of Grant either as an “Incentive Stock Option” or as a “Non-Statutory Stock Option”.  Incentive Stock Options may only be granted to Beneficiaries of the Company or a Subsidiary who meet the definition of “employees” under Section 3401(c) of the Code.

 

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Nevertheless, the aggregate Fair Market Value of the Shares covered by Incentive Stock Options granted under the Plan or any other stock option program of the Company (or any Parent or subsidiary of the Company) that become exercisable for the first time in any calendar year shall not exceed U.S. $100,000: to the extent the aggregate Fair Market Value of such Shares exceeds U.S. $100,000, the Options covering those Shares the Fair Market Values of which causes the aggregate Fair Market Value of all such Shares to be in excess of U.S. $100,000 shall be treated as Non-Statutory Options. Incentive Stock Options shall be taken into account in the order in which they were granted, and the aggregate Fair Market Value of the Shares shall be determined as of the Date of the Grant.

 

(b)           The Options are governed by articles L. 225-177 and following of the Law. They are not part of the employment agreement or of the office which has allowed the Optionee to be granted the Option. Neither do they constitute an element of the Optionee’s remuneration.

 

Neither the Plan nor any Option shall confer upon an Optionee any right with respect to continuing the Optionee’s employment or his term of office with the Company or any Affiliated Company, nor shall they interfere in any way with the Optionee’s right or the Company’s or Affiliated Company’s right, as the case may be, to terminate such employment or such term of office at any time, with or without cause.

 

(c)                                  Other than as expressly provided hereunder, no member of the board of directors of the Company or of the supervisory board (in the event of change of management formula of the Company) or of an equivalent management body of an Affiliated Company shall be as such eligible to receive Options under the Plan.

 

6.                                     TERM OF PLAN

 

Subject to the approval of the shareholders of the Company in accordance with Section 16 of the Plan, the Plan shall be effective and Options may be granted as of June 6th, 2017. Options may be granted hereunder until August 6th, 2020. It shall continue in effect until the date of termination of the last Option in force, unless terminated earlier under Section 13 of the Plan.

 

7.                                     TERM OF OPTIONS

 

The term of each Option shall be stated in the Notice of Grant as ten (10) years from the Date of Grant, in accordance with the Shareholders Authorization or, in case of death or Disability of the Optionee during such 10-year period, six (6) months from the death or Disability of the Optionee in accordance with French law.

 

For all grants to U.S. Beneficiaries, in no event may his/her Options be exercised after ten (10) years from the Date of Grant (or 5 years for an Incentive Stock Option granted to a 10% owner).

 

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8.                                     OPTIONS EXERCISE PRICE AND CONSIDERATION

 

(a)                               Subscription or purchase Price

 

The per Share subscription or purchase price for the Shares to be issued or sold pursuant to exercise of an Option shall be determined by the Administrator on the basis of the Fair Market Value.

 

(i)                                    In the case of an “Incentive Stock Option” granted to a U.S. Beneficiary who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting rights of all classes of stock of the Company or any Parent or Subsidiary of the Company and, to the extent such Beneficiary is permitted by the Law to receive Option grants, the per Share subscription or purchase price shall be no less than 110% of the fair market value per Share on the Date of Grant as defined in Section 2(m)(ii);

 

(ii)                                 In the case of a “Non-Statutory Stock Option” or “Incentive Stock Option”, not covered by Section 8(a)(i) above, granted to any U.S. Beneficiary, the per Share subscription or purchase price shall be no less than 100% of the fair market value per Share on the Date of Grant as defined in Section 2(m)(ii).

 

(b)                               Waiting Period and Exercise Dates

 

At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may specify that an Option may not be exercised until the completion of a service period in the Company or an Affiliated Company.

 

(c)                                Form of Consideration

 

The consideration to be paid for the Shares to be issued or purchased upon exercise of Options, including the method of payment, shall be determined by the Administrator. Such consideration shall consist entirely of an amount in Euro corresponding to the exercise price which shall be paid either by:

 

(1)                                wire transfer;

(2)                                check; or

(3)                                any combination of the foregoing methods of payment.

 

Where the exercise of an Option would lead the Company to be liable for any payment, whether due to fees, taxes or to charges of any nature whatsoever, in place of the Optionee, such Option shall be deemed duly exercised when the full payment for the Shares with respect to which the Option is exercised is executed by the Optionee and the Optionee provides the Company with either the receipt stating the payment by the Optionee of any such fee, tax or charge, as above described that would otherwise be paid by the Company upon exercise of the Option, in place of the Optionee or, the full payment, under the same conditions, of any amount due upon the exercise of the Option to be borne by the Company.

 

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9.                                     EXERCISE OF OPTIONS

 

(a)                               Procedure for Exercise; Rights as a Shareholder

 

Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement.

 

An Option may not be exercised for a fraction of a Share.

 

An Option shall be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the provisions of the Option Agreement) together with a share subscription or purchase form (bulletin de souscription ou d’achat) duly executed by the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan.

 

1. Where the exercise of an Option would lead the Company to be liable for any payment, whether due to fees, taxes or to charges of any nature whatsoever, in place of the Optionee, such Option shall be deemed duly exercised when the full payment for the Shares with respect to which the Option is exercised is executed by the Optionee and the Optionee provides the Company with either the receipt stating the payment by the Optionee of any such fee, tax or charge, as above described that would otherwise be paid by the Company upon exercise of the Option, in place of the Optionee or, the full payment, under the same conditions, of any amount due upon the exercise of the Option to be borne by the Company.

 

2. Upon exercise of an Option, the Shares issued or sold to the Optionee shall be assimilated with all other Shares of the Company of the same class and shall be entitled to dividends once the Shares are issued for the fiscal year during which the Option is exercised.

 

In the event that a Beneficiary infringes the above mentioned commitment, such Beneficiary shall be liable for any consequences resulting from such infringement for the Company and undertakes to indemnify the Company in respect of all amounts payable by the Company in connection with such infringement.

 

Granting of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available for purposes of the Plan, by the number of Shares as to which the Option may be exercised.

 

(b)                                Termination of the Optionee’s Continuous Status as  Beneficiary

 

Upon termination of an Optionee’s Continuous Status as a Beneficiary, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Options, but only within such period of time as is specified in the Notice of Grant, and only for the part of the Options that the Optionee was entitled to exercise at the date of termination (but in no event later than the expiration of the term of such Options as set forth in the Notice of Grant and, in the case of an “Incentive Stock Option”, three (3) months following the Optionee’s termination of Continuous Status as a Beneficiary). Unless otherwise decided by the Board and specified in the Notice of Grant, an Option shall remain exercisable for three (3) months following the Optionee’s termination of Continuous Status as a Beneficiary whether such termination is due to the Optionee or to the Company’s decision.

 

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If, at the date of termination, the Optionee is not entitled to exercise all his or her Options, the Shares covered by the unexercisable portion of Options shall revert to the Plan. If, after termination, the Optionee does not exercise all of his or her Options within the period specified by the Administrator, the Options shall terminate, and the Shares covered by such Options shall revert to the Plan.

 

(c)                                 Disability of Optionee

 

In the event that an Optionee’s Continuous Status as a Beneficiary terminates as a result of the Optionee’s Disability, unless otherwise resolved by the Board, the Optionee may exercise his or her Options at any time within nine (9) months from the date of such termination, but only to the extent these Options are exercisable at the time of termination (and in no event later than the expiration of the term of such Options as set forth in the Notice of Grant). If, at the date of termination, the Optionee is not entitled to exercise all of his or her Options, the Shares covered by the unexercised portion of Options shall revert to the Plan. If, after termination, the Optionee does not exercise all of his or her Options within the time specified herein, the Options shall terminate, and the Shares covered by such Options shall revert to the Plan.

 

(d)                                Death of Optionee

 

In the event of the death of an Optionee during the term of the Options, unless otherwise resolved by the Board, the Options may be exercised at any time within six (6) months following the date of death, by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent these Options are exercisable at the time of death. If, at the time of death, the Optionee was not entitled to exercise all of his or her Options, the Shares covered by the unexercised portion of Options shall immediately revert to the Plan. If, after death, the Optionee’s estate or a person who acquired the right to exercise the Options by bequest or inheritance does not exercise the Options within the time specified herein, the Options shall terminate, and the Shares covered by such Options shall revert to the Plan.

 

10.                              NON-TRANSFERABILITY OF OPTIONS

 

An Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee.

 

11.                              ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR DISSOLUTION

 

(a)                               Changes in capitalization

 

In the event of the carrying out by the Company of any of the financial operations pursuant to article L. 225-181 of the Law as follows:

 

·                                          amortization or reduction of the share capital,

·                                          amendment of the allocation of profits,

·                                          distribution of free shares,

·                                          capitalization of reserves, profits, issuance premiums,

·                                          the issuance of shares or securities giving right to shares to be subscribed for in cash or by set-off of existing indebtedness offered exclusively to the shareholders;

 

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the Company shall take the required measures to protect the interest of the Optionees in the conditions set forth in article L. 228-99 of the Law.

 

(b)                                Dissolution or Liquidation

 

In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option has not been previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Administrator may, in the exercise of its sole discretion in such instances, declare that any Option shall terminate as of a date determined by the Administrator and give each Optionee the right to exercise his or her Options as to Shares for which the Options would not otherwise be exercisable.

 

For Incentive Stock Options, all assumptions and substitutions shall be determined in accordance with Sections 422 and 424 of the Code and the regulations promogated thereunder.

 

12.                              GRANT

 

12.1.                    The Date of Grant of an Option shall be, for all purposes, the date on which the Administrator decides to grant such Option. Notice of Grant shall be provided to each Optionee within a reasonable time after the Date of Grant.

 

12.2.                    In the event of any tax liability arising on account of the Grant of the Options, the liability to pay such taxes shall be that of the Beneficiary alone.

 

The Beneficiary shall enter into such agreements of indemnity and execute any and all documents as the Company may specify for this purpose, if so required  at the time of the Grant and at any other time at the discretion of the Company, on such terms and conditions as the Company may think fit, for recovery of the tax due, from the Beneficiary.

 

13.                              AMENDMENT AND TERMINATION OF THE PLAN

 

(a)                                Amendment and Termination

 

The Administrator may at any time amend, alter, suspend or terminate the Plan.

 

(b)                                Shareholders’ approval

 

The Company shall obtain shareholders’ approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws (including the requirements of any exchange or quotation system on which Shares may then be listed or quoted). Such shareholders approval, if required, shall be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation.

 

(c)                                 Effect of amendment or termination

 

No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company.

 

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14.                              CONDITIONS UPON ISSUANCE OF SHARES

 

(a)                                Legal Compliance

 

Shares held by a U.S. Beneficiary shall not be sold or issued pursuant to the exercise of an Option unless the exercise of such Option, and the issuance or sale and delivery of such Shares shall comply with all relevant provisions of law including, without limitation, the Law, the “Securities Act” of 1933, as amended, the “Exchange Act”, the rules and regulations promulgated thereunder, Applicable Laws and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted.

 

(b)                                Investment Representations

 

As a condition to the exercise of an Option by a U.S. Beneficiary, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being subscribed or purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

 

15.                              LIABILITY OF COMPANY

 

15.1.                    The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by any counsel to the Company to be necessary to the lawful issuance or sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

15.2.                    The Company and its Affiliated Companies may not be held responsible in any way if the Beneficiary for any reason not attributable to the Company or its Affiliated Companies was not able to exercise the Options or acquire the Shares.

 

16.                              SHAREHOLDERS’ APPROVAL

 

The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months of the date the Plan is adopted by the Board. Such shareholder approval shall be obtained in the manner and to the degree required under the Law and Applicable Laws.

 

17.                              LAW, JURISDICTION

 

This Plan shall be governed by and construed in accordance with the laws of France.

 

The relevant court of the registered office of the Company shall be exclusively competent to determine any claim or dispute arising in connection herewith.

 

The Grant of Options under this Plan shall entitle the Company to require the Beneficiary to comply with such requirements of law as may be necessary in the Options of the Company from time to time.

 

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TALEND

STOCK OPTION GRANT AGREEMENT

Part I

NOTICE OF STOCK OPTION GRANT

 

[Optionee’s Name and Address]

 

You have been granted a total number of [  ·  ] [Options (the “Options”)][, corresponding to] [[  ·  ] Options called “Base Options”] [and] [[  ·  ] Options called “Performance Options”][,]  to subscribe ordinary Shares of the Company, subject to the terms and conditions of the 2017 Stock Option Plan (the “Plan”) and this Stock Option Grant Agreement (the “Option Agreement”). Options are governed by articles L. 225-177 and following of the French Commercial Code. They are not part of the employment agreement or of the office which has allowed the Optionee to be granted the Options. Neither do they constitute an element of the Optionee’s remuneration. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

 

	
Grant Number(1):
    	
 
    	
 
    
	
[Base Options  :
    	
 
    	
                 ]
    
	
[Performance Options:
    	
 
    	
                 ]
    
	
Total number of Options:
    	
 
    	
                 ]
    
	
 
    	
 
    	
 
    
	
Date of Grant(2):
    	
 
    	
[  o  ]
    
	
Vesting Commencement   Date(3):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[Base Options:
    	
[  o  ]
    	
 
    
	
[Performance Options:
    	
[  o  ]
    	
 
    
	
Exercise Price per Share:
    	
 
    	
EUR
    
	
Total Number of Shares   Granted:
    	
 
    	
 
    
	
Total Exercise Price:
    	
 
    	
EUR  [  o  ]
    
	
Type of Options(4):
    	
 
    	
[Incentive Stock Option]
    
	
 
    	
 
    	
[Nonstatutory Stock Option]
    
	
Term/Expiration Date(5):
    	
 
    	
[10 years — [  o  ]]
    

 

(1) reference number to be allocated by the Company, if it wishes so

(2) date of the board meeting having allocated the Option

(3) date chosen by the board as the date of beginning of the vesting schedule or, if not, date of granting of the Option by the board

(4) for U.S. Beneficiaries only

(5) date of termination of the Option (article 7 of the Plan), which shall not exceed 5 years for an ISO granted to a 10% owner and 10 years for a US grantee (NQSO or ISO).

 

 

Where the exercise of an Option, as described under Article 9.(a) of the Plan, would lead the Company to be liable for any payment, whether due to fees, taxes or to charges of any nature whatsoever, in place of the Optionee, such Option shall be deemed duly exercised when the full payment for the Shares with respect to which the Option is exercised is executed by the Optionee and the Optionee provides the Company with either the receipt stating the payment by the Optionnee of any such fee, tax or charge, as above described that would otherwise be paid by the Company upon exercise of the Option, in place of the Optionee or, the full payment, under the same conditions, of any amount due upon the exercise of the Option to be borne by the Company.

 

In the event that you infringe the above mentioned commitment, you shall be liable for any consequences resulting from such infringement for the Company and undertake to indemnify the Company in respect of all amounts payable by the Company in connection with such infringement.

 

Validity of the Options:

 

The Options will be valid as from the Date of Grant.

 

Vesting Schedule:

 

The Options[, depending on whether they are Base or Performance Options,] may be exercised by the Beneficiary on the basis of the following initial vesting schedule subject to the condition precedent that the Optionee shall have previously returned to the Company a copy of Part I and Part II of this Option Agreement as duly signed by him or her:

 

[To be adapted by the Board upon the type of Options granted]

 

[(i) For Base Options:]

 

·                  [up to 25% of the Options, i.e. [  ·  ] Options, as from the expiration of a twelve (12)-month period following the Date of Grant, i.e. as from [  o  ],

 

·                  then, up to an additional 6,25% of the Options, i.e. [  ·  ] Options, as from the expiration of each quarter, i.e. each period of three subsequent months, following [  o  ] and until the expiration of the 36th month from such date, and

 

·                  at the latest within ten (10) years as from the Date of Grant or in case of death or Disability of the Optionee during such ten (10) year period, six (6) months as from the death or nine (9) months as from the Disability of the Optionee.]

 

[(ii) For Performance Options:]

 

·                  [up to 25% of the Options, i.e. [  ·  ] Options, as from the Date of Grant, i.e. as from [  o  ],

 

·                  then, up to an additional 6,25% of the Options, i.e. [  ·  ] Options, as from the expiration of each quarter, i.e. each period of three subsequent months, following [  o  ] and until the expiration of the 36th month from such date, and

 

·                  at the latest within ten (10) years as from the Date of Grant or in case of death or Disability of the Optionee during such ten (10) year period, six (6) months as from the death or nine (9) months as from the Disability of the Optionee.]

 

2

 

The number of Options that could be exercised pursuant to the above vesting schedule will always be rounded down to the nearest full number.

 

If the Beneficiary fails to exercise the Options in whole or in part within the above period of ten (10) years (as may be extended to six (6) months from the death or nine (9) months from the Disability of the Optionee (except with respect to Options granted to U.S. Beneficiaries for whom the ten (10)-year period cannot be extended)), the Options will lapse automatically.

 

Termination Period:

 

Unless otherwise decided by the Board prior to their expiration, the Options may be exercised for three (3) months after termination of the Optionee’s Continuous Status as a Beneficiary, to the extent the Options are exercisable at the time of termination and whether such termination is due to the Optionee or the Company’s decision.

 

Upon the death of the Optionee, the Options may be exercised during a period of six (6) months as provided in the Plan.

 

Unless otherwise decided by the Board, upon the Disability of the Optionee, the Options may be exercised during a period of nine (9) months as provided in the Plan.

 

Save as provided in the Plan, in no event shall the Options be exercised later than the Term/Expiration Date as provided above. Should the Options expire or become unexercisable for any reason without having been exercised in full, the unsubscribed Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan.

 

By his signature and the signature of the Company’s representative below, the Optionee and the Company agree that the Options are granted under and governed by the terms and conditions of the Plan and this Option Agreement. The Optionee has reviewed the Plan and this Option Agreement in their entirely, has had the opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Option Agreement. The Optionee further agrees to notify the Company upon any change in the residence address indicated below.

 

3

 

TALEND

STOCK OPTION GRANT AGREEMENT

Part II

TERMS AND CONDITIONS

 

1.                                     Grant of Options.

 

1.1.                           The Administrator of the Company hereby grants to the Optionee named in the Notice of Grant attached as Part I of this Option Agreement (the “Optionee”), a total number of [  ·  ] [Options (the “Options”)][, corresponding to] [[  ·  ] Options called “Base Options”] [and] [[  ·  ] Options called “Performance Options”][,]  to subscribe the number of ordinary Shares, as set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated herein by reference.

 

In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

 

If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code although the Company makes no representation as to the tax status of the Option. However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the U.S.$ 100,000 rule of Code Section 422(d) the excess shall be treated as a Non-Statutory Stock Option.

 

1.2.                           An Option will be valid as from the Date of Grant.

 

1.3.                           In the event of any tax liability arising on account of the Grant of the Options, the liability to pay such taxes shall be that of the Beneficiary alone. The Beneficiary shall enter into such agreements of indemnity and execute any and all documents as the Company may specify for this purpose, if so required at the time of the Grant and at any other time at the discretion of the Company, on such terms and conditions as the Company may think fit, for recovery of the tax due, from the Beneficiary.

 

2.                                     Exercise of Options

 

(a)                                Right to Exercise. An Option[, whether a Base or Performance Option,] is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement, subject to the condition precedent that the Optionee shall have previously returned to the Company a copy of Part I and Part II of this Option Agreement provided to you by the Company and as duly signed by you on signature page.  In the event of Optionee’s death, Disability or other termination of Optionee’s Continuous Status as a Beneficiary, the exercisability of an Option is governed by the applicable provisions of the Plan and this Option Agreement.

 

4

 

(b)                                Method of Exercise. An Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit A hereto (the “Exercise Notice”), comprising a share subscription form (bulletin de souscription) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Company or its designated representative or by facsimile message to be immediately confirmed by certified mail to the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercice Price as to all Exercised Shares. An Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the proof of payment of such aggregate Exercise Price.

 

No Share shall be issued pursuant to the exercise of an Option unless such issuance and exercise complies with all relevant provisions of law as set out under Section 14(a) of the Plan.

 

Upon exercise of an Option, the Shares issued to the Optionee shall be assimilated with all other Shares of the Company and shall be entitled to dividends for the fiscal year in course during which the Option is exercised.

 

3.                                     Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

 

(1)                                wire transfer with the execution of the corresponding exchange contract;

(2)                               check; or

(3)                               any combination of the foregoing methods of payment.

 

Where the exercise of an Option would lead the Company to be liable for any payment, whether due to fees, taxes or to charges of any nature whatsoever, in place of the Optionee, such Option shall be deemed duly exercised when (a) the full payment for the Shares with respect to which the Option is exercised is executed by the Optionee and (b) the Optionee provides the Company with either (i) the receipt stating the payment by the Optionee of any such fee, tax or charge, as above described that would otherwise be paid by the Company upon exercise of the Option, in place of the Optionee or, (ii) the full payment, under the same conditions, of any amount due upon the exercise of the Option to be borne by the Company.

 

The Company and its Affiliated Companies may not be held responsible in any way if the Beneficiary for any reason not attributable to the Company or its Affiliated Companies was not able to exercise the Option or purchase the Shares.   The payment for the purchase of the shares shall be made by the Optionee under his/her own responsibility according to these Terms and Conditions.

 

4.                                     Non-Transferability of Option. An Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

5.                                     Term of Options. Subject as provided in the Plan, an Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

 

5

 

6.                                     Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the laws of the Republic of France.

 

Any claim or dispute arising under the Plan or this Option Agreement shall be subject to the exclusive jurisdiction of the court competent for the place of the registered office of the Company.

 

7.                                     Tax Obligations. Regardless of any action the Company or Optionee’s employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), Optionee acknowledges that the ultimate liability for all Tax-Related Items legally due by Optionee is and remains Optionee’s responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option grant, including the grant, vesting or exercise of the Option, the subsequent sale of shares of Common Stock acquired pursuant to such exercise and the receipt of any dividends; and (2) do not commit to structure the terms of the grant or any aspect of the Option to reduce or eliminate Optionee’s liability for Tax-Related Items.

 

Prior to exercise of the Option, Optionee will pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding obligations of the Company and/or the Employer, if any.  In this regard, Optionee authorizes the Company and/or the Employer to withhold all applicable Tax-Related Items legally payable by Optionee from Optionee’s compensation paid to Optionee by the Company and/or Employer or from proceeds of the sale of Shares.  Alternatively, or in addition, if permissible under local law, the Company may sell or arrange for the sale of Shares that Optionee acquires to meet the withholding obligation for Tax-Related Items.  Finally, Optionee will pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of Optionee’s participation in the Plan or Optionee’s purchase of Shares that cannot be satisfied by the means previously described.  The Company may refuse to honor the exercise and refuse to deliver the Shares issuable upon exercise of the Options if Optionee fails to comply with Optionee’s obligations in connection with the Tax-Related Items as described in this section.

 

For Optionees residing and/or working outside of France, please also refer to Applicable Laws sections of your country set forth in the attached Exhibit B.

 

8.                                    Nature of Grant.  In accepting the grant, Optionee acknowledges that:

 

(a)         the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Option Agreement;

 

(b)         the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted repeatedly in the past;

 

(c)          all decisions with respect to future option grants, if any, will be at the sole discretion of the Company;

 

(d)         Optionee’s  participation in the Plan shall not create a right to further employment with the employer and shall not interfere with the ability of the Employer to terminate Optionee’s employment relationship at any time with or without cause;

 

6

 

(e)          Optionee is voluntarily participating in the Plan;

 

(f)           the Option is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and which is outside the scope of Optionee’s employment contract, if any;

 

(g)          the Option is not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or the Employer;

 

(h)         the Option grant will not be interpreted to form an employment contract with the Company, the Employer or any subsidiary or affiliate of the Company;

 

(i)             the future value of the underlying Shares is unknown and cannot be predicted with certainty;

 

(j)            if the underlying Shares do not increase in value, the Option will have no value;

 

(k)         if Optionee exercises Optionee’s Option and obtains Shares, the value of those Shares acquired upon exercise may increase or decrease in value, even below the exercise price;

 

(l)             in consideration of the grant of the Option, no claim or entitlement to compensation or damages shall arise from termination of the Option or diminution in value of the Option or Shares purchased through exercise of the Option resulting from termination of Optionee’s employment the Company or the Employer (for any reason whatsoever) and Optionee irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this Option Agreement, Optionee shall be deemed irrevocably to have waived Optionee’s entitlement to pursue such claim; and

 

(m)     in the event of termination of Optionee’s employment, Optionee’s right to receive the Option and vest in the Option under the Plan, if any, will terminate effective as of the date that Optionee receives notice of termination regardless of when such termination is effective; furthermore, in the event of termination of employment, Optionee’s right to exercise the Option after termination of employment, if any, will be measured by the date on which the Optionee receives notice of termination; the Company shall have the exclusive discretion to determine when Optionee is no longer actively employed for purposes of Optionee’s Option grant.  In addition, any period of notice or compensation in lieu of such notice, that is given or ought to have been given under any contract, statute, common law or civil law shall be excluded.

 

9.                                    Data Privacy.  Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Optionee’s personal data as described in this document by and among, as applicable, the Employer, the Company and its subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing Optionee’s participation in the Plan.

 

Optionee understands that the Company and the Employer may hold certain personal information about Optionee, including, but not limited to, Optionee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded,

 

7

 

canceled, exercised, vested, unvested or outstanding in Optionee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

 

Optionee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Optionee’s country.  Optionee understands that Optionee may request a list with the names and addresses of any potential recipients of the Data by contacting Optionee’s local human resources representative.  Optionee authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing Optionee’s participation in the Plan.  Optionee understands that Data will be held only as long as is necessary to implement, administer and manage Optionee’s participation in the Plan.  Optionee understands that Optionee may, at any time, view the Data, request additional information about the storage processing of the Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Optionee’s local human resources representative.  Optionee understands, however, that refusing or withdrawing Optionee’s consent may affect Optionee’s ability to participate in the Plan.  For more information on the consequences of Optionee’s refusal to consent or withdrawal of consent, Optionee understands that Optionee may contact Optionee’s local human resources representative.

 

10.                             Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Option and participation in the Plan or future options that may be granted under the Plan by electronic means or to request Optionee’s consent to participate in the Plan by electronic means.  Optionee hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

 

11.                             Severability.  The provisions of this Option Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

12.                             Applicable Laws for Beneficiaries Located outside of France.  The attached Exhibit B applies to Optionees residing and/or working outside of France.

 

 

	
OPTIONEE:
    	
TALEND
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Signature
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
Print   Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence   Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

8

 

EXHIBIT A

 

TALEND

Société Anonyme having a share capital of EUR.[      ]

Registered office: [      ]

484 175 252 R.C.S. [   ]

 

2017 STOCK OPTION PLAN

EXERCISE NOTICE

(Share subscription form)

 

	
TALEND
    	
 
    
	
[      ]
    	
 
    
	
[      ]
    	
 
    
	
France
    	
[              ],   [  ]
    
	
 
    	
 
    
	
Attention:   [           ]
    	
 
    

 

1.                                     Exercise of Options. Effective as of today,                   ,   , the undersigned (“Optionee”) hereby elects to subscribe                 (     ) ordinary shares (the “Shares”) of the Common Stock of TALEND (the “Company”) under and pursuant to the Company’s 2017 Stock Option Plan (the “Plan”) adopted by the board on April 20th, 2017 and the Stock Option Agreement dated            ,    (the “Option Agreement”). The subscription price for the Shares shall be EUR.       , as required by the Option Agreement.

 

2.                                     Delivery of Payment. Optionee herewith delivers to the Company the full subscription price for the Shares.

 

3.                                     Representations of Optionee. The Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions, in particular  the Optionee agrees to abide and be bound by the obligation to hold and the prohibition to sell the Shares provided for in articles 9.(a) of the Plan and 6 of the Option Agreement as well as by the obligation to indemnify which stems from it (to the extent applicable).

 

4.                                     Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry on the books of the Company) of the Shares, the Optionee shall have, as an Optionee, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, except those the Optionee may have as a shareholder of the Company. No adjustment will be made for rights in respect of which the record date is prior to the issuance date for the Shares, except as provided in Section 11 of the Plan.

 

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

 

 

6.                                     Entire Agreement; Governing Law. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the laws of the Republic of France.

 

*

 

*     *

 

This Exercise notice is delivered in two originals one of which shall be returned  to the Optionee.

 

 

	
Submitted by:
    	
Accepted by:
    
	
OPTIONEE (*)
    	
TALEND
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Its:
    	
 
    
	
Print Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    

 

 

(*)                                    The signature of the Optionee must be preceded by the following manuscript mention “accepted for formal and irrevocable subscription of [          ] ordinary Shares”.

 

 

EXHIBIT B

 

TALEND

GLOBAL STOCK OPTION GRANT AGREEMENT

 

COUNTRY-SPECIFIC PROVISIONS

 

This Appenix includes additional (or if so indicated, different) terms and conditions that govern the Option if the Optionee is in one of the countries listed herein.  If the Optionee is a citizen or resident of a country (or if Optionee is considered as such for local law purposes) other than the one in which the Optionee is currently residing and/or working, or if the Optionee transfers to another country after being granted the Option, the Company will, in its discretion, determine the extent to which the terms and conditions contained herein will be applicable to the Optionee.

 

AUSTRALIA

 

Nature of Plan.  The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act of 1997 (Cth) (the “Act”) applies (subject to the conditions of the Act).

 

Securities Law Information. If the Optionee acquires Shares under the Plan and offers the Shares for sale to a person or entity resident in Australia, the offer may be subject to disclosure requirements under Australian law.  The Optionee should obtain legal advice regarding any applicable disclosure obligations before making any such offer in Australia.

 

CHINA

 

Exercise of Option and Method of Payment.  The following provision supplements Section 2 (Exercise of Option) and Section 3 (Method of Payment) of the Option Agreement.

 

To facilitate compliance with exchange control restrictions in China, the Company reserves the right to (a) restrict the exercise of the Option until such time as the Plan has been registered with the State Administration of Foreign Exchange of the People’s Republic of China (SAFE) or its local counterpart, (b) require the Optionee to pay the Exercise Price under a cashless exercise program adopted by the Company in connection with the Plan whereby no funds are remitted out of China, and/or (c) require that the Optionee sell the Shares acquired upon exercise either immediately upon exercise, upon termination of the Optionee’s Continuous Status as a Beneficiary or at such other time the Company determines.

 

Exchange Control Restrictions.  Exchange control restrictions apply to the remittance of funds into and out of China.  Such restrictions may limit the Optionee’s ability to remit funds out of China to pay the Exercise Price and/or the Optionee’s ability to hold funds received in relation to the Option (e.g., proceeds from the sale of Shares) outside of China or remit such funds to China.  The Company may implement special procedures related to the remittance of funds in connection with the Plan, but the Company does not make any representations or undertaking with respect to such funds.

 

The Optionee understands and agrees that funds related to the Option may be paid to the Optionee in U.S. dollars or local currency at the Company’s discretion and, therefore, the Optionee may be required to set up a U.S. dollar bank account or may be subject to currency fluctuation risks between the time the funds are realized (e.g., Shares are sold) and the time the funds are converted to local currency and distributed to the Optionee.

 

The Optionee agrees to comply with any requirements that may be imposed by the Company in the future to facilitate compliance with exchange control requirements.

 

 

GERMANY

 

No country-specific provisions.

 

IRELAND

 

No country-specific provisions.

 

ITALY

 

Data Privacy Notice. The following provision replaces in its entirety Section 9 (Data Privacy) of the Option Agreement:

 

The Optionee understands that the Employer, the Company, and its Affiliated Companies may hold certain personal information about the Optionee, including the Optionee’s name, home address and telephone number, e-mail address, date of birth, social insurance number or other identification number (e.g., resident registration number), salary, nationality, passport number, job title, any shares of stock or directorships that Participant holds in the Company, details of all shares or directorships held in the Company, details of all options or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.

 

The Optionee also understands that providing the Company with Data is necessary for the performance of the Plan and that the Optionee’s refusal to provide Data would make it impossible for the Company to perform its contractual obligations and may affect the Optionee’s ability to participate in the Plan.  The Controller of personal data processing is TALEND, with its principal operating offices at 800 Bridge Parkway, Suite 200, Redwood City, California 94065, and its representative in Italy is Talend Italy S.r.l.

 

The Optionee understands that Data will not be publicized, but it may be transferred to banks, other financial institutions or brokers involved in the management and administration of the Plan.  The Optionee further understands that the Company and its Affiliated Companies will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Optionee’s participation in the Plan, and that the Company and/or its Affiliated Companies may each further transfer Data to third parties assisting the Company in the implementation, administration and management of the Plan, including any requisite transfer to a broker or another third party with whom the Optionee may elect to deposit any Shares acquired under the Plan.  Such recipients may receive, possess, use, retain and transfer the Data in electronic or other form, for the purposes of implementing, administering and managing the Optionee’s participation in the Plan.  The Optionee understands that these recipients may be located in the European Economic Area, or elsewhere, such as the United States.  Should the Company exercise its discretion in suspending all necessary legal obligations connected with the management and administration of the Plan, the Optionee understands that the Company will delete Data as soon as it has accomplished all the necessary legal obligations connected with the management and administration of the Plan.

 

The Optionee understands that Data processing related to the purposes specified above shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Data are collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003.

 

The processing activity, including communication, the transfer of Data abroad, including outside of the European Economic Area, as herein specified and pursuant to applicable laws

 

 

and regulations, does not require the Optionee’s consent thereto as the processing is necessary  to performance of contractual obligations related to implementation, administration and management of the Plan.  The Optionee understands that, pursuant to Section 7 of the Legislative Decree no. 196/2003, the Optionee has the right to, including but not limited to, access, delete, update, ask for rectification of the Data and cease, for legitimate reason, any processing of the Data.  Furthermore, the Optionee is aware that the Data will not be used for direct marketing purposes.  In addition, Data may be reviewed and questions or complaints can be addressed by contacting the Optionee’s local human resources department.

 

Plan Document Acknowledgement.  The Optionee acknowledges that the Optionee has been given access to the Plan, has reviewed the Plan and this Option Agreement in their entirety and fully understands and accepts all provisions of the Plan and this Option Agreement.  Further the Optionee specifically and expressly approves the following clauses of the Option Agreement: (i) Section 2 — Exercise of Options; (ii) Section 3 - Method of Payment; (iii) Section 6 - Entire Agreement; Governing Law; and (iv) Section 7 — Tax Obligations.

 

JAPAN

 

No country-specific provisions.

 

NETHERLANDS

 

No country-specific provisions.

 

SINGAPORE

 

Securities Law Information.  The grant of the Option under the Plan is being made pursuant to the “Qualifying Person” exemption” under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”) and is not made with a view to the Shares being subsequently offered for sale to any other party.  The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore.  The Optionee should note that the Option is subject to section 257 of the SFA and the Optionee will not be able to make (i) any subsequent sale of the Shares in Singapore or (ii) any offer of such subsequent sale of the Shares subject to the Option in Singapore, unless such sale or offer is made (a) more than six months after the Date of Grant or (b) pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the SFA (Chapter 289, 2006 Ed.).

 

CEO and Director Notification Information.  If the Optionee is the Chief Executive Officer (“CEO”) or a director, associate director or shadow director of an Affiliated Company in Singapore (a “Singapore Entity”), the Optionee is subject to certain notification requirements under the Singapore Companies Act. Among these requirements is an obligation to notify the Singapore Entity in writing when the Optionee receives an interest (e.g., Options, Shares) or disposes of an interest in the Company or any related companies.  These notifications must be made within two business days of (i) acquiring or disposing of any interest in the Company or any Affiliated Company or (ii) becoming the CEO or a director, associate director or shadow director if such an interest exists at that time.

 

SPAIN

 

Nature of Grant.  The following provision supplements Section 8 (Nature of the Grant) of the Option Agreement:

 

By accepting the Option, the Optionee acknowledges that her or she has received a copy of the Plan.

 

The Optionee further acknowledges, understands and agrees that the Company has unilaterally,

 

 

gratuitously and discretionally decided to grant Options under the Plan to employees of the Company and its Affiliated Companies throughout the world.  The decision to grant the Options  is a limited decision that is entered into upon the express assumption and condition that any Option grant will not economically or otherwise bind the Company or any Affiliated Company on an ongoing basis other than as set forth in this Option Agreement.  Consequently, the Optionee understands that any grant is given on the assumption and condition that it shall not become a part of any employment contract (either with the Company or any Affiliated Company) and shall not be considered a mandatory benefit, salary for any purpose (including severance compensation) or any other right whatsoever.  Further, the Optionee understands and freely accepts that there is no guarantee that any benefit shall arise from any gratuitous and discretionary grant since the future value of the Options and the Shares is unknown and unpredictable.

 

Additionally, the Optionee understands that the vesting of the Options is expressly conditioned on his or her continued and active rendering of service to the Employer (or the Company or an Affiliated Company) such that if Optionee’s employment terminates for any reason whatsoever, his or her Options will cease vesting as described in Section 9 of the Plan.  This will be the case, for example, even if (a) the Optionee is considered to be unfairly dismissed without good cause (i.e., subject to a “despido improcedente”); (b) the Optionee is dismissed for disciplinary or objective reasons or due to a collective dismissal; (c) the Optionee terminates service due to a change of work location, duties or any other employment or contractual condition; (d) the Optionee terminates service due to the Company’s or any Affiliated Company’s unilateral breach of contract; or (e) the Optionee’s employment terminates for any other reason whatsoever.  Consequently, upon termination of the Optionee’s employment for any of the above reasons, the Optionee will automatically lose any rights to the Options granted to the Optionee that were unvested on the date of termination of employment and the Optionee must exercise any vested portion of the Option (if at all) within the applicable post termination exercise period, as described in Part I of the Option Agreement.

 

Finally, the Optionee understands that this grant would not be made to the Optionee but for the assumptions and conditions referred to herein; thus, the Optionee acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then any grant of the Options shall be null and void.

 

Securities Law Information.  No “offer of securities to the public,” as defined under Spanish law, has taken place or will take place in the Spanish territory in connection with the Option. This Option Agreement has not been nor will it be registered with the Comisión Nacional del Mercado de Valores, and does not constitute a public offering prospectus.

 

SWEDEN

 

No country-specific provisions.

 

SWITZERLAND

 

Securities Law Information. The grant of the Option and the issuance of any Shares is not intended to be a public offering in Switzerland.  Neither this document nor any other materials relating to the Option constitute a prospectus as such term is understood pursuant to article 652a of the Swiss Code of Obligations, and neither this document nor any other materials relating to the Option may be publicly distributed nor otherwise made publicly available in Switzerland.  Neither this document nor any other offering or marketing material relating to the Option have been or will be filed with, or approved or supervised by, any Swiss regulatory authority (in particular, the Swiss Financial Market Supervisory Authority (FINMA))

 

 

UNITED KINGDOM

 

Tax Obligations. The following provision supplements Section 6 (Tax Obligations) of the Option Agreement:

 

If payment or withholding of the income tax due in connection with the Option is not made within ninety (90) days of the end of the U.K. tax year in which the income tax liability arises or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by the Optionee to the Employer, effective as of the Due Date.  The Optionee agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 6 of the Option Agreement.  Notwithstanding the foregoing, if the Optionee is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), he or she shall not be eligible for a loan from the Company to cover the income tax liability.  In the event that the Optionee is a director or executive officer and the income tax is not collected from or paid by him or her by the Due Date, the amount of any uncollected income tax may constitute a benefit to the Optionee on which additional income tax and national insurance contributions (“NICs”) may be payable.  The Optionee will be responsible for reporting any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying the Company or the Employer (as appropriate) for the value of any employee NICs due on this additional benefit which may be collected from the Optionee by the Company or the Employer by any of the means referred to in Section 6 of the Option Agreement.

 

UNITED STATES

 

Tax Obligations. The following provisions supplement Section 7 (Tax Obligations) of the Option Agreement:

 

Notice of Disqualifying Disposition of Incentive Stock Option. If the Optionee is a U.S. taxpayer and the Option is an Incentive Stock Option, and the Optionee makes a “disposition” (as defined in Section 424 of the Code) of all or any portion of the Shares acquired upon exercise of the Options within two (2) years from Date of Grant set out in Part I of this Option Agreement or within one (1) year after issuance of the Shares acquired upon exercise of the Options, then the Optionee shall immediately notify the Company in writing as to the occurrence of, and the price realized upon, such disposition.  The Optionee understands that he or she may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee.

 

Section 409A of the Code. To the extent the Optionee is or becomes subject to U.S. federal income taxation, this section shall apply.  Under Section 409A of the Code, an Option that was granted with a per Share exercise price that is determined by the U.S. Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the Date of Grant (a “discount option”) may be considered “deferred compensation.” An Option that is a “discount option” may result in (a) income recognition by the Optionee prior to the exercise of the Option, (b) an additional 20% federal income tax, (c) potential penalty and interest charges, and (d) additional state income, penalty and interest tax to the Optionee (collectively, “409A Penalties”).  The Optionee acknowledges that the Company cannot guarantee, and has not guaranteed, that the IRS will agree, in a later examination, that the per Share Exercise Price of this Option equals or exceeds the Fair Market Value of a Share on the Date of Grant.  The Optionee agrees that, if the IRS determines that the Option is a “discount option,” the Optionee shall be solely responsible for the Optionee’s costs related to such a determination, including any 409A Penalties.

 

*     *     *CONVERTIBLE
PROMISSORY NOTE

THIS
NOTE AND ANY SHARES OF STOCK ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE AND ANY SHARES OF STOCK ISSUABLE UPON THE CONVERSION HEREOF MAY NOT BE
SOLD, OFFERED FOR SALE, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT COVERING THIS NOTE OR SUCH SHARES UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR THE DELIVERY OF AN OPINION
OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. THIS NOTE IS ALSO SUBJECT TO RESTRICTIONS ON TRANSFER.

REGEN
BIOPHARMA, INC.

 

	Issue Date: April 19,
    2017	 	Principal
    Amount: $25,000

1.   
Terms. For value received, the Regen BioPharma, Inc., a Nevada corporation (the "Company") hereby absolutely and
unconditionally promises to pay to the order of ________an individual (the "Lender") ON DEMAND AT ANY TIME AFTER April
19, 2020 (the "Maturity Date"), the principal amount of Twenty Five Thousand Dollars ($25,000) and interest on the whole
amount of said principal sum outstanding and remaining from time to time unpaid (the "Note"), commencing from the date
hereof and continuing until payment in full of this Note or conversion as hereinafter provided, at an annual rate equal to ten
percent (10%) simple interest. Interest shall be payable quarterly upon demand or upon conversion pursuant to Section 2 hereunder.
Interest shall be computed on the basis of the actual number of days elapsed divided by 365. Principal and interest shall be payable
in lawful money of the United States of America, at the principal place of business of the Lender or at such other place as the
Lender may have designated from time to time in wilting to the Company.

2.   
Conversion.

2.1
Conversion Right. The Lender shall have the right from time to time to convert all or a part of .the outstanding and unpaid
principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue
Date, or any shares of capital stock or other securities of the Company into which such Common Stock shall hereafter be changed
or reclassified at the conversion price (the "Conversion Price") determined as provided herein (a "Conversion").
The Lender shall have the right to convert one hundred percent (100%) of the Principal Amount immediately upon execution of this
agreement and any accrued interest may be converted as well.

The
number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the principal
amount of this Note to be converted (the "Conversion Amount") by the applicable Conversion Price as defined in this
Section 2 then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the
"Notice of Conversion"), delivered to the Company by the Lender on such conversion date (the "Conversion Date").

 

2.2
Conversion Price. The "Conversion Price" shall be defined as the lower $0.0125 per share, or, a 75% discount to
the closing price of the Common Stock on the Over-the-Counter Bulletin Board on the trading day immediately prior to the date
that a Notice of Conversion is submitted pursuant to Section 2.3. or, if the Over-the-Counter Bulletin Board is not the principal
trading market for such security, the closing price of such security on the principal securities exchange or trading market where
such security is listed or traded on the trading day immediately prior to the date that a Notice of Conversion is submitted pursuant
to Section 2.3. or, if no closing bid price of such security is available in any of the foregoing manners, the average of the
closing bid prices of any market makers for such security that are listed in the "pink sheets" by the National Quotation
Bureau, Inc. on the trading day immediately prior to the date that a Notice of Conversion is submitted pursuant to Section 2.3.

 

2.3
Method of Conversion. Subject to Section 2.1, this Note may be converted by the Lender by submitting to the Company a Notice
of Conversion by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 5:00
p.m., New York, New York time. The Lender shall not be required to physically surrender this Note to the Company unless the entire
unpaid principal amount of this Note is so converted. The Lender and the Company shall maintain records showing the principal
amount so converted and the dates of such conversions so as not to require physical surrender of this Note upon each such conversion.
In the event of any dispute or discrepancy, such records of the Company shall, prima facie, be controlling and determinative in
the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Lender
may not transfer this Note unless the Lender first physically surrenders this Note to the Company, whereupon the Company will
forthwith issue and deliver upon the order of the Lender a new Note of like tenor, registered as the Lender (upon payment by the
Lender of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this
Note.

Upon
receipt by the Company from the Lender of a facsimile transmission, e-mail, or other reasonable means of communication of a Notice
of Conversion meeting the requirements for conversion, the Company shall issue and deliver or cause to be issued and delivered
to or upon the order of the Lender certificates for the Common Stock issuable upon such conversion within ten (10) business days
after such receipt. Upon receipt by the Company of a Notice of Conversion, the Lender shall be deemed to be the Lender of record
of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest
on this Note shall be reduced to reflect such conversion. All rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities as herein provided on such conversion.
In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Company is participating
in the Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request
of the Lender, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock
issuable upon conversion to the Lender by crediting the account of Lender's Prime Broker with DTC through its Deposit Withdrawal
Agent Commission ("DWAC") system.

 

2.4
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless
(i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer agent
shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor
rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate" (as defined in Rule 144) of the Company
who agrees to sell or otherwise transfer the shares only in accordance with this Section 2.5 and who is an Accredited Investor
as the term Accredited Investor is defined in Rule 501 of Regulation D, promulgated under the Act.

Subject
to the removal provisions set forth below, until such time as the shares of Common Stock issuable upon conversion of this Note
have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately sold, each certificate for shares of issuable upon conversion of this Note
that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration
statement or an exemption that permits removal of the legend, shall hear a legend substantially in the following form, as appropriate:

"NEITHER
THE ISSUANCE OR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE I IAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
(B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE LENDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS
NOT REQUIRED UNDER SAID ACT."

The
legend set forth above shall be removed and the Company shall issue to the Lender a new certificate therefore free of any transfer
legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration wider the Act and the shares are so sold or transferred, (ii) such Lender provides the Company or its transfer
agent with reasonable assurances that the Common Stock issuable upon conversion of this Note (to the extent such securities are
deemed to have been acquired on the same date) can be sold pursuant to Rule 144 or (iii) in the case of the Common Stock issuable
upon conversion of this Note, such security is registered for sale by under an effective registration statement filed under the
Act or (iv) otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular
date that can then be immediately sold.

2.5
Reverse Stock Splits. If the number of shares of Common Stock outstanding at any time -while this Note is outstanding is decreased
by a combination of the outstanding shares of Common Stock, then, following the record sale of such combination, the Conversion
Price shall be appropriately increased so that the number of shares of Common Stock issuable on conversion hereof shall be decreased
in proportion to such decrease in outstanding shares.

2.6
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding subdivides outstanding shares
of Common Stock into a larger number of shares then the Conversion price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.

3.   
Payment.

WIRE
INSTRUCTIONS:

4.        
Prepayment. Notwithstanding
anything to the contrary contained herein, the Company shall have the right, exercisable on not less than ten (10) Trading Days
prior written notice to the Lender, to prepay the outstanding Note in part or in full, including outstanding principal and accrued
interest. Any notice of prepayment hereunder shall be delivered to the Lender at its registered addresses and shall state that
the Company is exercising its right to prepay the Note and the date of prepayment, which shall be not more than ten (10) Trading
Days from the date of the prepayment notice. Upon receipt of a prepayment notice, Lender shall have the right, but not the obligation,
to accelerate the conversion period specified in Section 2.1 and convert that portion of the outstanding principal balance which
is subject to prepayment to Common Shares as provided for in Section 2.

5.   
Warrant Coverage. In the event that that
the Company exercises its right to prepay the note, or if the Lender chooses not to convert the remaining amount of the note into
Common Shares of the company, the Lender shall receive warrants equal to 10% of the Common shares it would have received had the
Lender converted the remaining amount of the Note into Common shares of the Company. The warrants shall have a strike price of
$0.05 per share. See Exhibit B (incorporated into this Note) for instructions on completing the Exercise of Warrants document.

6.   
Events of Default.

		6.1	The
                                         following shall constitute events of default (individually an "Event of Default"):

(a)        
default in the payment, when due or payable, of an obligation to pay interest or principal under this Note, which default is not
cured by payment in full of the amount due within thirty (30) days from the date that the Lender receives notice of the occurrence
of such default;

 

(b)       
filing of a petition in bankruptcy or the commencement of any proceedings under any bankruptcy laws by or against the Company,
which filing or proceeding, is not dismissed within ninety (90) days after the filing or commencement thereof; or

 

(c)
failure of the Company to comply in any way with the terms, covenants or conditions contained in this Note.

6.2
If an Event of Default shall occur and be continuing, the Lender may, at its option, declare this Note to he immediately due and
payable without further notice or demand, whereupon this Note shall become immediately due and payable without presentment, demand
or protest, all of which are hereby waived by the Company.

7.   
Transfer of Note. 'Ibis Note may not he transferred or assigned other than a transfer or assignment to an Affiliate of the Lender.
As used herein, the term "Affiliate" means an entity that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Lender.

8.   
Certain Waivers. The Company hereby expressly
and irrevocably waives presentment; demand, protest,. notice of protest and any other formalities of any kind.

9.   
Amendment, Modification or Termination. This Note may only be modified, amended, or terminated (other than by payment in full)
by an agreement in writing signed by the Company and the Lender. No waiver of any term, covenant or provision of this Note shall
be effective unless given in writing by the Lender.

10.    
Governing Law. This
Note and the obligations of the Company hereunder shall be governed by and interpreted and determined in accordance with the laws
of the State of California (excluding the laws and rules of law applicable to conflicts or choice of law).

IN
WITNESS WHEREOF, this Note has been duly executed on behalf of the undersigned on the day and in the year first above written.

	REGEN BIOPHARMA INC	 	 
	 	 	 
	/s/ David R. Koos	 	 
	David R. Koos, Chairman and CEO	 	 
	 	 	 
	4/20/2017	 	 

 

EXHIBIT
A

NOTICE
OF CONVERSION

The
undersigned hereby elects to convert $ __________________________ principal amount and ______________accrued interest
of the Note into that number of shares of Common Stock to be issued pursuant to the conversion of the Note as set forth below
of REGEN BIOPIIARMA, INC. according to the conditions of the convertible note of the Company dated as of Month 00, 2020 as of
the date written below.

Date
of Conversion:

	Applicable Conversion Price	 	 
	(Attach Bloomberg price documentation)	 
	Number of Shares of Common Stock to be Issued
    Pursuant to Conversion of Note:	 	 
	 	 	 
	Amount of Principal Balance Due Remaining Under
    the Note After This Conversion:	 	 

Checked
box corresponds to applicable instructions:

The
Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
or its nominee with DTC through its Deposit Withdrawal Agent Commission system ("DWAC Transfer").

 

	 	Name of DTC Prime Broker:	 	 
	 	Account Number	 	 

[1The
undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set
forth below in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

	 	Name:	 	 
	 	Address:	 	 
	 	 	 	 
	 	 	 	 
	 	Phone:	 	 

	 	 	 	 
	Name	 	Date	 
	Title	 	 	 

 

EXHIBIT
B

COMMON
STOCK PURCHASE WARRANT

REGEN BIOPHARMA, INC.

 

THIS
WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.

 

THIS
COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for value received, Lender is entitled, solely upon the
terms and subject to the limitations on exercise and the conditions hereinafter set forth, to subscribe for and purchase from
the Company, shares of common stock of the Company (the "Warrant Shares"). The purchase price of one Warrant Share under
this Warrant shall be equal to the $0.05 per Warrant Share ("Exercise Price").

		1.	In
                                         the event that Company shall exercise Company's rights pursuant to Section 4 of the Note
                                         ("Prepayment Clause") , Lender shall be entitled , on or prior to the close
                                         of business on the three (3) month anniversary of the date that the Note shall have been
                                         prepaid by the Company("Prepayment Date") , to subscribe for and purchase from
                                         the Company up to that number of Warrant Shares at the Exercise Price per Share equivalent
                                         to that one tenth of that number of Common Shares that Lender would have been entitled
                                         to be issued had Lender exercised Lender's Conversion Right pursuant to Section 2.1 of
                                         the Note as of the Prepayment Date.

		2.	In
                                         the event that, as of the Maturity Date, part of the outstanding and unpaid principal
                                         amount of this Note and any Accrued Interest remains outstanding, Lender shall be entitled
                                         , on or prior to the close of business on the three (3) month anniversary of the Maturity
                                         Date , to subscribe for and purchase from the Company up to that number of Warrant Shares
                                         at the Exercise Price per Share equivalent to that one tenth of that number of Common
                                         Shares that Lender would have been entitled to be issued had Lender exercised Lender's
                                         Conversion Right pursuant to Section 2.1 of the Note as of the Maturity Date.

 

		3.	If
                                         the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
                                         or otherwise makes a distribution or distributions on shares of its Common Stock or any
                                         other equity or equity equivalent securities payable in shares of Common Stock (which,
                                         for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
                                         upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into
                                         a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding
                                         shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
                                         of shares of the Common Stock any shares of capital stock of the Company, then in each
                                         case the Exercise Price shall be multiplied by a fraction of which the
                                         numerator shall be the number of shares of Common Stock (excluding treasury shares, if
                                         any) outstanding immediately before such event and of which the denominator shall be
                                         the number of shares of Common Stock outstanding immediately after such event, and the
                                         number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
                                         such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
                                         made pursuant to this Section 3 shall become effective immediately after the record date
                                         for the determination of stockholders entitled to receive such dividend or distribution
                                         and shall become effective immediately after the effective date in the case of a subdivision,
                                         combination or reclassification

 

		4.	Exercise
                                         of the purchase rights represented by this Warrant may be made, in whole or in part,
                                         from and after the initial exercise date, and then at any time, by delivery to the Company
                                         (or such other office or agency of the Company as it may designate by notice in writing
                                         to Lender at the address of the Lender appearing on the books of the Company) of a duly
                                         executed facsimile or emailed copy of the Notice of Exercise form annexed hereto and
                                         delivery of the aggregate Exercise Price for the Warrant Shares specified in the applicable
                                         Notice of Exercise by wire transfer.

		5.	Warrant
                                         Shares purchased hereunder will be delivered to Holder within 10 business days of Notice
                                         of Exercise.
	 	 	 
	 	6.	The
                                         Warrant Shares may not be sold or transferred unless (i) such shares are sold pursuant
                                         to an effective registration statement under the Act or (ii) the Company or its transfer
                                         agent shall have been furnished with an opinion of counsel (which opinion shall be in
                                         form, substance and scope customary for opinions of counsel in comparable transactions)
                                         to the effect that the shares to be sold or transferred may be sold or transferred pursuant
                                         to an exemption from such registration or (iii) such shares are sold or transferred pursuant
                                         to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such shares
                                         are transferred to an "affiliate" (as defined in Rule 144) of the Company who
                                         agrees to sell or otherwise transfer the shares only in accordance with this Section
                                         6 and who is an Accredited Investor as the term Accredited Investor is defined in Rule
                                         501 of Regulation D, promulgated under the Act. Subject to the removal provisions set
                                         forth below, until such time as the Warrant Shares have been registered under the Act
                                         or otherwise may be sold pursuant to Rule 144 without any restriction as to the number
                                         of securities as of a particular date that can then be immediately sold, each certificate
                                         for Warrant Shares that have not been so included in an effective registration statement
                                         or that have not been sold pursuant to an active registration statement or an exemption
                                         that permits removal of the legend, shall bear a legend substantially in the following
                                         form, as appropriate:

 

"NEITHER
THE ISSUANCE OR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS BEEN REGISTERED UNDER TIIE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
(B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY THE LENDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT."

 

The
legend set forth above shall be removed and the Company shall issue to the Lender a new certificate therefore free of any transfer
legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such securities may be made
without registration under the Act and the shares are so sold or transferred, (ii) such Lender provides the Company or its transfer
agent with reasonable assurances that the Warrant Shares can be sold pursuant to Rule 144 or (iii) such security is registered
for sale by under an effective registration statement filed under the Act or (iv) otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can then be immediately sold.

		7.	The
                                         Lender shall not be required to physically surrender this Warrant to the Company. If
                                         the Lender has purchased all of the Warrant Shares available hereunder and the Warrant
                                         has been exercised in lull, this Warrant shall automatically be cancelled without the
                                         need to surrender the Warrant to the Company for cancellation.

		8.	This
                                         Warrant may not be transferred or assigned other than a transfer or assignment to an
                                         Affiliate of the Lender. As used herein, the term "Affiliate" means an entity
                                         that directly, or indirectly through one or more intermediaries, controls, or is controlled
                                         by, or is under common control with, the Lender.

		9.	FORM
                                         OF WARRANT NOTICE

NOTICE
OF EXERCISE

TO:REGEN
BIOPHARMA, INC.

The
undersigned hereby elects to purchase ___________Warrant Shares of the Company pursuant

to
the terms of the Warrant issued in connection with that Convertible Note in the amount of

_______by
and between_______and the Company dated______and maturing2020 and

tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned. The undersigned is an "accredited
investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE]

Name:

Date:

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