Document:

evio_ex101.htm

EXHIBIT 10.1
  
 INTELLECTUAL PROPERTY LICENSE AGREEMENT
  
 This Intellectual Property License Agreement (this “Agreement”) dated as of May 1, 2019 (the “Effective Date”) by and between EVIO, Inc. (also referenced as “EVIO Labs”), a Colorado corporation with principal offices located at 2340 W. Horizon Ridge Pkwy, Ste 120, Henderson, NV 89052 (the “Licensor”) and Gexin Analytical Labs, LLC a California Limited Liability Company with principal offices located at 7245 Harding Circle, Buena Park, CA 90620 (the “Licensee”). The Licensee and Licensor are sometimes referred to individually herein as a “Party” and collectively as the “Parties”.
  
 RECITALS
  
 WHEREAS, the Licensee is engaged in the business of analytical testing, formulation, and other services in the areas of botanical products including cannabis and hemp services pursuant to all applicable laws including all regulations promulgated thereunder by the California Bureau of Cannabis Control (“BCC”) and any other applicable local or state laws (collectively, the “Applicable Laws”);
  
 WHEREAS, Licensor owns and holds certain intellectual property and technology related to the testing of botanical products as more particularly described in Exhibit A (as the same may be updated from time to time by written notice from Licensor to Licensee) (the “Technology”), including procedures for using instruments to determine the chemical composition and active ingredients of cannabis and cannabis products including plant matter, extractions, concentrates, and infused products for the purpose of providing quantitative and qualitative evaluations of Cannabis Products to regulatory agencies, cannabis businesses, and patients.
  
 WHEREAS, the Licensee wishes to utilize the Technology to analyze and test Cannabis Products within the Counties of Los Angeles and Orange in State of California (the “Territory”), and Licensor desires for the Licensee to so utilize the Technology, on and subject to the terms and conditions set forth herein.
  
 WHEREAS, the Parties previously entered into a Memorandum of Understanding dated April 20, 2019 which contemplated that the parties would enter into this definitive agreement and that this Agreement would supersede and replace the Letter of Intent.
  
 NOW, THEREFORE, in consideration of the premises and the mutual promises and conditions hereinafter set forth, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:
  
  	 
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 AGREEMENT
  
 	1.	License of Technology. Subject to the terms and conditions of this Agreement, Licensor hereby grants to the Licensee a non-exclusive, non-transferable, non-sublicenseable license, to use the Technology only to perform testing of Cannabis Products and products related to cannabis such as soil, water, and other vegetation at the Licensee’s site, and exclusively within the Territory (the “Licensed Services”). Without limitation of the generality of the foregoing, both Parties agree and understand that Licensee shall have the exclusive rights to the Technology in the Territory with respect to the Licensed Services, provided that the exclusivity will not preclude Licensor from using or licensing (and that Licensor retains the right to use and license) the Technology in connection with the manufacture, marketing, sale, distribution and other exploitation of products, including testing products, both inside and outside the Territory.
	  
	  

		The Technology shall expressly include: (a) all patents obtained, or patent applications and/or provisional patent applications submitted, by Licensor relating to the Technology or Licensed Products or Services (the “Licensed Patents”); and, (b) all know-how relating to the Technology and the Licensed Services, including the use, and application of procedures that is owned or controlled by Licensor as of the Effective Date or thereafter acquired, discovered, developed, identified, made, conceived or reduced to practice by or on behalf of Licensor, whether or not patented or patentable and whether or not maintained as trade secret (the “Licensed Know-How”). In the event that Licensor subsequently releases other services based on the Technology, Licensor will notify Licensee and provide Licensee with the right of first refusal to include such other services as Licensed Services hereunder on terms specified by Licensor, provided that such terms shall be no less favorable to Licensee than the terms offered to other licensees of Licensor (excluding affiliate licensees) in other states, which right of first refusal shall expire after a period of thirty (30) calendar days if not exercised by Licensee. The Technology may not be used by Licensee for any purpose other than the Licensed Services without the prior written consent of Licensor. The license granted by this Section 1 (a) may not be transferred or sublicensed by Licensee without Licensor’s consent; (b) does not create any rights of ownership on the part of Licensee (all rights of ownership being retained by Licensor); and, (c) except as specifically provided herein, covers only the Technology in existence on the date hereof and does not extend to any future improvements or developments of the Technology by Licensor subsequent to the date hereof. Licensee must obtain Licensor’s consent before making any improvements to the Technology. In the event that Licensee creates an improvement to the Technology (each instance, an “Improvement”), Licensee shall be deemed to have immediately assigned such Improvement to Licensor and such Improvement shall become part of the Technology licensed by Licensor under this Agreement. Licensee shall execute and deliver any requested additional written assignment of the Improvement in order for Licensor to document Licensor’s ownership of the Improvement.

  
  	 
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  	2.	License of Trademarks.

  
  	  
	a.	Licensee must use the Licensed Mark as (a) its trade name for the testing laboratories located at Licensee’s authorized sites, and (b) its primary service mark for the cannabis testing services that Licensee provides using the Technology.
	  
	  
	  

	  
	b.	Subject to the terms and conditions of this Agreement, Licensor hereby grants to the Licensee a non-exclusive, non-transferable, non-sublicenseable right and license to use the trademarks, service marks, trade names, trade dress, symbols and logos , and all applications and registrations thereof, including the goodwill associated therewith solely in connection with the sale and distribution of the Licensed Services during the Term. In the event that Licensee wishes to use the Licensed Marks in connection with the sale of other products or services provided by Licensee and Licensor approves such use in its sole discretion, such approved products or services shall be added as “Licensed Services” under this Agreement and Licensee shall be obligated to pay license fees in accordance with Section 9 hereof with respect to its sales of such additional Licensed Services. The license granted by this Section 2 may not be transferred or sublicensed by Licensee without Licensor’s consent and does not create any rights of ownership on the part of Licensee (all rights of ownership being retained by Licensor). Any use of the Licensed Trademarks by Licensee shall inure to the benefit of Licensor. The Technology and the Licensed Marks are sometimes referred to herein collectively as the “Licensor IP”.

 
  	3.	Rights and Obligations Related to Technology and Licensed Marks.

  
  	  
	a.	Retained Rights. All rights not expressly granted by a Party under this Agreement are reserved by such Party. For the avoidance of doubt, nothing in this Agreement or in the conduct of the Parties shall be interpreted as preventing Licensor from granting to any other person a license for use of the Technology or Licensed Marks or from using the Technology or Licensed Marks in any other manner or geographic location whatsoever. Except as expressly provided in this Section 3 or elsewhere in this Agreement, neither Party will be deemed by this Agreement to have been granted any license or other rights to the other Party’s products, information or other intellectual property rights, either expressly or by implication, estoppel or otherwise.
	  
	  
	  

	  
		As between the Parties, Licensor is and will be the sole and exclusive owner of all right, title and interest in and to the Licensor IP, including all intellectual property rights related thereto. Subject only to the specific licenses granted herein for the applicable License Terms, Licensor expressly reserves all rights with respect to the Licensor IP. All use of the Licensed Mark by Licensee, and all goodwill associated with such use, will inure to the sole benefit of Licensor. Except as expressly set forth herein, Licensee will not acquire or claim any right, title or interest in or to the Licensor IP, whether by implication, operation of law or otherwise.

  
 	 
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	b.	Nothing in this Agreement permits Licensee to develop or create any Improvements. If, however, any such Improvements are created, whether or not authorized, Licensee agrees that Licensor will own such Improvements. Accordingly, Licensee hereby assigns and agrees to assign to Licensor all right, title and interest worldwide in and to any Improvements, including all intellectual property rights relating thereto, effective immediately upon the inception, conception, creation or development thereof. Licensee will cooperate with Licensor or its designee(s) in applying for, obtaining, perfecting, evidencing, sustaining and enforcing Licensor’s intellectual property rights. Upon completion of any Improvement or at any time as requested by Licensor, Licensee will deliver to Licensor such Improvement (and any work in process related thereto) in such format as Licensor may request. As Licensor is beneficiary and owner of Licensor IP, costs to be borne by the authorized improvements shall be the obligation of Licensor.

  
  	4.	Registration and Enforcement

  
 	  
	a.	As between the Parties, Licensor has the sole and exclusive right to register and apply for registration of all intellectual property rights in the Licensor IP and Licensee will not register or attempt to register any Licensor IP in any jurisdiction, whether in the Territory or elsewhere, or cause or assist or aid any third party in any of the foregoing. Any decision to apply for or maintain any registrations of any Licensor IP in any jurisdiction will be at Licensor’s sole discretion. Without limitation of the generality of the foregoing, Licensee will not (and has no right to) register any domain name using or incorporating (in whole or in part) the Licensed Mark. Licensee will promptly notify Licensor in writing if and when Licensee becomes aware of any infringements or misappropriations or unauthorized imitations or counterfeit versions by third parties of any Licensor IP, and will fully cooperate with Licensor, at Licensor’s expense, in connection with any claim or action by Licensor for infringement and related remedies. As between the Parties, Licensor will have the sole right, though it is under no obligation, to bring any claim or action for any past, present and future infringements of the Licensor IP, and Licensee will not initiate or cause the initiation of any claim or action for infringement of any Licensor IP without the prior written authorization of Licensor.
	  
	  
	  

	  
	b.	Further Actions. To the extent any rights in and to the Technology (or any Improvement or other improvement thereto) or the Licensed Marks are deemed to accrue to the Licensee pursuant to this Agreement or otherwise, the Licensee hereby assigns any and all such rights, at such time as they may deem to accrue, to Licensor. The Licensee shall co-operate in the execution of any documents, or the taking of any other action, that is necessary to create, record or perfect Licensor’s sole and exclusive ownership of the Technology and the Licensed Marks, or to obtain, defend or protect registrations or applications for registration of such Technology and/or the Licensed Marks.

  
  	 
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	c.	No Challenge. The Licensee expressly acknowledges and agrees that all rights in and to the Technology and the Licensed Marks (including the goodwill related thereto) shall remain vested in Licensor both during the Term and thereafter, and that all use of the Licensed Marks by the Licensee and all goodwill derived therefrom shall inure solely to the benefit of and be on behalf of Licensor. The Licensee shall not: (a) assert rights in the Technology or the Licensed Marks, or challenge the distinctiveness of the Licensed Marks, the validity of Licensor’s rights in and to the Technology or the Licensed Marks or any application for registration thereof in any jurisdiction; (b) use the Licensed Marks in a manner which could, in the reasonable opinion of Licensor based on advice of counsel, dilute Licensor’s rights in the Licensed Marks, or which could otherwise prejudice or invalidate a registration or application for registration of any of the Licensed Marks; (c) take any action that will, in any material way, diminish, alter (excluding Improvements) or adversely affect Licensor’s rights in the Technology or the Licensed Marks or the reputation of Licensor, or otherwise damage the goodwill attached to the Licensed Marks; (d) apply to register or register any Licensed Mark or any trade name, trademark, service mark, domain name or logo that is confusingly similar to any Licensed Mark, without Licensor’s prior written consent; or (e) use or adopt any trade name, trademark, service mark, domain name or logo that is confusingly similar to the Licensed Marks, without Licensor’s prior written consent. Licensor acknowledges and agrees that use of the Technology for the Licensed Services in accordance with Licensor’s manual and operating procedures will be deemed compliance with (b) and (c) above.
	  
	  
	  

	  
	d.	Notice Requirements. To the extent allowed by applicable rules and regulations, including the Applicable Laws related to packaging, the Licensee agrees that it will include such trademark notices and other proprietary notices on all Licensed Services or related materials that bear any Licensed Mark or contain any Technology as may be reasonably required by Licensor in order to give appropriate notice of all intellectual property rights therein or pertaining thereto. Such notices shall include the appropriate notice symbol in the form of a superscript “TM” (TM) or “C” (©) on, displays, advertising and all other uses before the public.
	  
	  
	  

	  
	e.	Quality Control.

  
 	  
	i.	The Licensee agrees to maintain and preserve the quality of the Licensed Marks, and to use the Licensed Marks in good faith and in a manner consistent with the uses approved herein.

  
  	 
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	ii.	The Licensee shall (a) ensure that all materials under the Licensed Marks are promoted, manufactured and distributed in a professional manner in compliance with all generally accepted industry standards, and (b) comply in all material respects with any and all laws, rules and regulations, including the Applicable Laws, that are applicable to the promotion and distribution of the Licensed Services and such related materials, and with any other quality standards reasonably requested in writing by Licensor from time to time.
	  
	  
	  

	  
	iii.	Licensor shall have the right to verify compliance with the terms of this Agreement through the use of reasonable and appropriate inspection and verification processes and programs, subject to the confidentiality provisions set forth herein. If Licensor in good faith determines that a Licensed Mark is used in an improper or objectionable manner, Licensor shall so notify the Licensee in writing and the Licensee shall have thirty (30) calendar days within which to: (a) reassure Licensor as to the propriety of the use of the Licensed Mark or (b) modify the proposed use of the Licensed Mark and submit such modified use for review by Licensor. If, at the end of such thirty (30) day period, Licensor is not satisfied with the proposed use of the Licensed Mark, Licensor may terminate this Agreement if such use is not remedied by Licensee after Licensor providing an additional thirty (30) calendar days’ written notice to the Licensee.
	  
	  
	  

	  
	iv.	The Licensee shall not use the Licensed Marks in any manner other than in accordance with the provisions of this paragraph, without the prior written approval of Licensor. Within a reasonable period of time prior to any use of any Licensed Mark by the Licensee hereunder, the Licensee shall provide to Licensor samples of the Licensed Service, packaging, advertising and promotional materials intended for use by the Licensee that will incorporate such Licensed Mark, as well as photographs or other appropriate evidence of the manner and format in which such Licensed Mark is intended for use in connection with the Licensed Service. Licensor shall notify the Licensee of its approval or disapproval (in Licensor’s sole but reasonable discretion) of the Licensee’s proposed use of such Licensed Mark within five (5) calendar days of Licensor’s receipt of such samples, photographs and other evidence (“Review Period”). If Licensor objects to the Licensee’s proposed use of a Licensed Mark prior to the expiration of the Review Period, then the Parties shall cooperate in good faith to agree upon a mutually acceptable manner of use. If Licensor fails to object to the Licensee’s proposed use prior to the expiration of the Review Period, such proposed use shall be deemed approved by Licensor. Notwithstanding the foregoing, the Licensee shall not be required to seek Licensor’s prior written approval for any use of a Licensed Mark by the Licensee that is consistent with, or substantially similar in manner, scope and format as, any use that has been previously approved by Licensor in accordance with this paragraph.

   
  	  
	  
	  

	  
	 LICENSOR
	 LICENSEE

  
  	 
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	f.	Prosecution and Maintenance. Licensor shall be solely responsible for, and have control of, preparing, filing, prosecuting, obtaining and maintaining the Technology (including the Licensed Patents) and Licensed Marks. Licensor shall take such actions as it shall deem to be appropriate in its discretion in connection therewith, and shall pay all costs and expenses incurred by it in connection with the foregoing activities.
	  
	  
	  

	  
	g.	Infringement. If the Licensee learns of any activity by a third party that might constitute an infringement of Licensor’s rights in any of the Technology or Licensed Marks, or if any third party asserts that the Licensee’s use of the Technology or the Licensed Marks constitutes unauthorized use or infringement, the Licensee shall so notify Licensor.
	  
	  
	  

	  
	h.	Enforcement. Licensor has the exclusive right, but not the obligation, to enforce its rights against any third party infringement and to defend the Licensee’s right to use the Technology and the Licensed Marks. If Licensor prosecutes any alleged infringement of the Technology or the Licensed Marks, or defends the Licensee’s right to use the Technology or the Licensed Marks, Licensor shall control such litigation and shall bear the expense of such actions. The Licensee shall make all reasonable efforts to assist Licensor therewith, including joining such action as a party plaintiff or providing such evidence and expert assistance as the Licensee may have within its control, provided that Licensor shall be obligated to promptly pay or advance to Licensee any costs incurred by Licensee. Nothing contained herein shall obligate Licensee to participate in any action without adequate assurances that Licensor will fund its obligations pursuant to the preceding sentence. Licensor shall retain the award of any damages.
	  
	  
	  

	  
	i.	Non-Disparagement. The Licensed Marks shall not be used in a manner or environment that disparages or reflects adversely upon Licensor, the Technology or the Licensed Services, or places Licensor, its reputation, the Technology, or the Licensed Services and associated goodwill in a negative light. Licensor acknowledges and agrees that cannabis is a Schedule 1 drug under the Controlled Substances Act, the trafficking of which is illegal under federal law, that a large percentage of the population views cannabis as negative and this shall not by itself result in a violation of this paragraph.

 
  	5.	Third Party Technology
	  
	  

	  
	 Licensee acknowledges that it may be required to obtain additional third party software or other third party materials, technology and equipment in connection with operation of its laboratories and its use of the Licensed Technology. Licensee will be responsible for obtaining, at its own expense, any such third party software, materials, technology and equipment. If, however, Licensor obtains a license with respect to third party software that is necessary for use of the Licensed Technology, then at Licensee’s request, Licensor will use commercially reasonable efforts to obtain rights under such third-party software license to extend such license to Licensee or otherwise assist Licensee to obtain a similar license for itself, such as by providing introductions to the applicable third party licensor or supplier.

  
  	 
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 	6.	Exclusivity. Subject to the terms and conditions set forth herein, the licenses and rights granted to the Licensee by Licensor in this Agreement are exclusive with respect to the Territory. Licensor shall be prohibited from entering into licensing or similar arrangements with respect to the Licensed Technology or the Licensed Marks within the Territory relating to the Licensed Services. Licensor shall retain the unrestricted right to provide its services alone or in conjunction with third parties in any manner.
	  
	  

		Changes in Law. Licensor acknowledges that Applicable Laws may be enacted or existing Applicable Law may be amended or modified during the Term (“Changes in Law”), and that such Changes in Law may limit Licensee’s ability to grant certain of the licenses granted under this Agreement or provide certain portions of the Licensors Intellectual Property to Licensee. Accordingly, notwithstanding anything to the contrary in this Agreement, Licensor will not be required to grant any license or deliver any Licensor IP to Licensee if Licensor is prohibited from doing so as a result of a Change in Law.
	  
	  

	7.	Term and Termination.

  
 	  
	a.	Start Date. The start date of this Agreement is May 1, 2019.
	  
	  
	  

	  
	b.	Term. This Agreement and the licenses granted hereunder shall have an initial term of five (5) years, unless earlier terminated pursuant to Section 7.d below.
	  
	  
	  

	  
	c.	Renewal. The Licensee may elect to extend the Term of this Agreement for an additional term of five (5) years, subject to providing written notice to Licensor of intent to renew at least 180 days prior to the end of the original term at (i) an renewal fee of 50% lower than the original terms provided in this Agreement and (ii) annual royalties remain at 5% with stated minimums. Absent a separate formal agreement (or amendment), both parties agree that this Agreement shall automatically renew for an additional one-year period at (i) an renewal fee of 50% lower than the original terms provided in this agreement and (ii) annual royalties remain at 5% with stated minimums; unless not less than ninety (90) days prior to the end of the then current Term, either Party provides notice that it elects not to renew.
	  
	  
	  

	  
	d.	Termination. This Agreement and the licenses granted hereunder may be terminated prior to the expiration of the initial term or any renewal term of this Agreement as follows:

  
  	 
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	i.	This Agreement may be terminated by Licensee by written notice to Licensor:

  
 	  
	1.	in the event of material breach by Licensor of its obligations under this Agreement, which breach is not cured within thirty (30) calendar days after written notice of such breach from Licensee; or
	  
	  
	  

	  
	2.	Licensor ceases operations, makes a general assignment for the benefit of creditors or is the subject of a voluntary or involuntary bankruptcy, insolvency or similar proceeding (except for an involuntary proceeding that is dismissed within 30 days).

  
 	  
	ii.	Termination by Licensor. This Agreement and the licenses (in its entirety or with respect to any Territory) granted hereunder may be terminated prior to the expiration of the initial term or any renewal term of this Agreement upon written notice to Licensee in if:

  
 	  
	1.	Licensee undergoes a Change in Control involving any entity or person that is a competitor of Licensor or that Licensor reasonably believes does not possess sufficient resources and capability to fully perform this Agreement, or that Licensor reasonably believes would otherwise adversely affect Licensor’s business or the Licensor IP;
	  
	  
	  

	  
	2.	Licensee fails to pay any amounts due under this Agreement and does not correct such failure within thirty (30) days of its receipt of written notice thereof;
	  
	  
	  

	  
	3.	Licensee ceases operations, makes a general assignment for the benefit of creditors or is the subject of a voluntary or involuntary bankruptcy, insolvency or similar proceeding (except for an involuntary proceeding that is dismissed within 30 days);
	  
	  
	  

	  
	4.	Any final non-appealable determination by California Bureau of Cannabis Control, or any other governmental or regulatory authority that this Agreement is violative of then-existing Applicable Laws;
	  
	  
	  

	  
	5.	If Licensee fails to obtain, maintain or comply with necessary permits or state licenses, provided that Licensee will have twelve (12) months to obtain necessary permits or licenses before such right to terminate arises and Licensee shall have until April 30, 2020 (or such later date as may be established by Applicable Laws to obtain its initial state and local (if applicable) license to operate a medical marijuana testing laboratory. Notwithstanding the foregoing, if Licensee’s failure to obtain a necessary permit or license with the applicable time period results from the malfeasance or misfeasance of public officials in the relevant state, or from regulatory delays beyond the control of the Licensee, then the Parties will discuss in good faith extending such time period accordingly prior to Licensor’s termination right arising; or

  
 	 
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	6.	Failure of Licensee to maintain all required licenses and governmental authorizations required for the conduct of its business or to comply in all material respects with applicable state and local laws, provided that Licensee shall is not challenging the same and there has not been a final non-appealable determination;

   	8.	Effect of Termination. Upon expiration or termination of this Agreement or of any individual License Term,

  
 	  
	a.	All licenses granted to Licensee will terminate and Licensee will have no further right to use, sublicense or otherwise exploit (and will cease all use, sublicensing and other exploitation of) the Licensor IP in such Territories, provided that Licensee shall have the limited right to fulfill all customers orders or contracts by which it is bound at the time of termination for a period of up to ninety (90) days; and
	  
	  
	  

	  
	b.	Neither Party will be liable to the other for damages of any kind solely as a result of terminating this Agreement in accordance with its terms. Upon termination of this Agreement for any reason, each Party will within thirty (30) days return or destroy all tangible or retrievable materials containing or constituting Confidential Information of the other Party, and will, at the other Party’s request, provide the other Party with a written statement signed by an officer of the first Party certifying that such return or destruction has occurred.

  
 	9.	Compensation and Payment. In consideration for the license granted to Licensee under this Agreement, Licensee shall pay Licensor certain license fees set forth in Exhibit C (collectively, the “License Fee”). The License Fee shall be paid by the Licensee to Licensor as set forth in Exhibit C, by check or wire transfer of immediately available funds pursuant to the bank account reasonably identified by the Licensee in advance of such payment. The Licensee’s failure to pay any portion of the License Fee or any reimbursable expenses when due will be a material breach of this Agreement by the Licensee, subject to applicable grace and cure periods before becoming grounds for termination. If any payment due to either Party under this Agreement is not paid within ten (10) days following such Party’s written demand thereof, then such payment shall bear interest at the rate of three percentage points (3%) above LIBOR or the maximum amount permitted by law, whichever is less, in each case calculated on the number of days such payment is delinquent following the expiration of such thirty-day period, compounded monthly.

  
  	 
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  	10.	Obligations.

  
  	  
	a.	Obligations of Licensee.

  
  	  
	i.	Licensee shall be solely responsible for all costs of producing the Licensed Services, including raw materials, labor and purchase of equipment specified in the standard operating procedures incorporated into the Technology. Licensee acknowledges and agrees that it is solely responsible for (i) procurement of testing equipment, supplies, standards, and other raw materials; (ii) compliance with all state and local laws relating to cannabis services; and (iii) procurement and maintenance of all required licensing and permits and/or operating authorities, including proper zoning of testing facilities.
	  
	  
	  

	  
	ii.	As a condition to the grant of the licenses provided by this Agreement, Licensee agrees to perform Licensed Services strictly in accordance with processes and procedures prescribed by Licensor, including the standard operating procedures set forth by Licensor, or as improved by the Licensee and approved for use by Licensor, as part of the Technology. Licensor shall have the right to implement reasonable quality standards for the Licensed Technologies from time to time upon notice to Licensee, including those set forth in Section 1 above, and Licensee agrees to conform to such standards.
	  
	  
	  

	  
	iii.	Licensee shall adhere to the minimum sales requirements set forth in Exhibit C as a condition to maintain exclusivity in the Territory.

  
  	  
	1.	Reporting Requirements: Licensee shall remit to Licensor, within the first ten (10) days of each month during the Term, reports for the preceding month which include, without limitation, reports of the following data of Licensee related to its marijuana testing services in form(s) provided by, or reasonably acceptable to Licensor: monthly gross and net sales; number and price of tests performed; and other reporting requirements set forth in the standard operating procedures incorporated as part of the Technology that directly relate to accounting for the sale of the Licensee’s marijuana testing services (each a “Report” and collectively, the “Reports”).
	  
	  
	  

	  
	2.	License Fee Payment Requirements: Together with each Report, Licensee will pay Licensor by check, wire transfer or other means satisfactory to Licensor all fees and royalties due for the applicable quarter. Licensee will also pay any sales, use, excise, import or export, value added or similar tax (other than taxes based on Licensor’s net income) imposed by any governmental authority with respect to any materials delivered or payments made under this Agreement. All amounts not paid when due will accrue interest daily at the lesser of a rate of 1.0% per month or the highest rate permissible by law, if less, on the unpaid balance until paid in full.

  
  	 
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	3.	Record Keeping Licensee will maintain complete, clear and accurate records of its revenues and activities (including testing) under this Agreement, in accordance with standard business practices and generally accepted accounting principles. Licensor or its designees may inspect and audit such records to ensure the accuracy of the Reports and Licensee’s compliance with the Agreement. Any such inspection and audit will be conducted during regular business hours, in such a manner as not to interfere unduly with normal business activities of Licensee and shall be at the expense of Licensor. If any audit reveals an underpayment, then Licensee will promptly pay the unpaid amounts together with any accrued interest. If the underpayment is greater than five percent (5%) of the total fees and royalties being audited, then Licensee will also reimburse Licensor for the cost of the audit.
	  
	  
	  

	  
	4.	Quality Control; Conduct of Business. Licensee will ensure that its testing services comply with Applicable Law and commercially reasonable industry standards (including by obtaining, maintaining, and complying with all necessary permits and licenses), and are of such quality as will not adversely affect the goodwill, image and reputation adhering to the Licensed Mark. Licensee will use commercially reasonable efforts to operate its business in accordance with the highest ethical and business standards. Without limitation of the generality of the foregoing, in order to ensure that Licensee’s testing services represent industry-leading, best-in-class practices, Licensee will (a) use only thoseanalytical methods that Licensor has approved in advance in writing, (b) purchase, install at each Authorized Site, and maintain in accordance with the applicable manufacturers’ specifications the equipment described by materials listed in Exhibit A or otherwise reasonably directed by Licensor; and (c) use only such equipment for all of Licensee’s analytical and research & development business an (and not use such equipment for any other purpose). Licensor may reasonably update Exhibit A from time-to-time upon reasonable prior notice to Licensee (in which case Licensee will update the equipment in its laboratories accordingly), and Licensor may inspect the Authorized Sites and Licensee’s testing services in order to ensure Licensee’s compliance with this Agreement.

  
  	 
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	5.	Marketing Efforts. Licensee will use commercially reasonable efforts throughout the Term to diligently market and promote its testing services using the Licensor IP in the Territory. Without limitation of the generality of the foregoing, no later than (a) thirty days after the Effective Date, and (b) January 30th of each calendar year during the Term thereafter, Licensee will prepare and deliver to Licensor an annual marketing plan detailing its advertising and marketing strategy for the applicable year for each Territory. The marketing and advertising plan will be a business-to-business plan that will focus solely on Licensee’s Territory. Licensee will not be required to allot more than three percent of its projected revenues for the forthcoming year to the marketing and advertising plan. Licensor will have the opportunity to review and comment on such plan prior to implementation. Upon Licensor’s approval, Licensee will use commercially reasonable efforts to implement each such plan. All marketing materials and advertising in any format or medium that includes the Licensed Mark or otherwise references Licensor will be subject to Licensor’s prior written approval, such approval not to be unreasonably delayed or withheld. Licensee must submit the relevant materials for approval no later than three days prior to planned publication. Without limitation of the generality of the foregoing, Licensee agrees that it will use a web presence provided by Licensor within Licensor’s website located at eviolabs.com (or a successor website operated by Licensor). This web presence may include information regarding key personnel, contact information, local services, awards and news, etc. All content on such webpage will be subject to Licensor’s prior written approval.

  
  	  
	b.	Obligations of Licensor.

  
  	  
	i.	Upon execution of this Agreement, Licensor shall make the Technology and the Licensed Marks, and any documents or materials otherwise necessary to effectuate the license of the Licensor IP contemplated herein available for Licensee.
	  
	  
	  

	  
	ii.	Licensor shall provide Licensee with support, in the form of written standard operating procedures, methods, training materials, and marketing collaterals. Such support shall also include provision of print materials, web site, multimedia materials and brand use guidelines, to be provided to Licensee at cost, for which such expenses shall be paid to Licensor along with Licensee’s next installment of the License Fee as per Section 10(a)(iii)(2).
	  
	  
	  

	  
	iii.	Licensor shall provide training to the Licensee’s personnel. Such training shall relate to Licensee’s business which include, without limitation, the following components:

  
  	 
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	1.	Comprehensive training to the “EVIO Playbook”. A guide to EVIO Operations including all of its standard operating procedures, technical policies, lab safety policies.
	  
	  
	  

	  
	2.	Procedure training includes training on sample handling, sample preparation, use of instruments, methods deployed, data analysis, and data reporting using our recommended LIMS systems.
	  
	  
	  

	  
	3.	Training may occur at one of Licensor’s facilities and remotely by teleconference. The Parties shall mutually agree upon the timing and frequency.

  
  	  
	iv.	Delivery. No later than thirty (30) days after the Effective Date, Licensor will deliver Licensed materials relevant to the Licensed Laboratory Procedures to Licensee via a delivery method and in a format reasonably acceptable to both Parties. Thereafter, Licensor may deliver updated Licensed Software and Licensed Laboratory Procedures to Licensee. Delivery may be through perpetually shared shared electronic files. Licensee will promptly implement and commence use of any such updates that Licensor delivers. Licensee is not permitted to use outdated or superseded versions of Licensed Software or Licensed Laboratory Procedures after Licensor has delivered updated versions, provided that Licensor delivers such updated versions at no additional licensing cost to Licensee (other than the fees and royalties already provided for in this Agreement).
	  
	  
	  

	  
	v.	Support. Licensor intends to provide operating services, pursuant to future operations agreement.

  
  	11.	[INTENTIONALLY OMITTED]
	  
	  

	12.	Representations and Warranties.

  
  	  
	a.	Representations and Warranties of Licensee. Licensee represents and warrants to Licensor as follows: (i) Licensee is a limited liability Licensee duly organized and in good standing under the laws of the State of California; (ii) the execution, delivery and performance of this Agreement by Licensee has been duly authorized by all necessary action on the part of Licensee’s directors and/or officers and does not violate, conflict with, or require the consent or approval of any third party pursuant to, any contract or legally binding obligation to which Licensee is subject; (iii) this Agreement constitutes the valid and binding obligation of Licensee enforceable against Licensee in accordance with its terms; (iv) on or before commencing sale of the Licensed Services, Licensee shall possess all required licenses, permits or operating authorities necessary for its operations and the sale of the Licensed Services as medical marijuana services and shall be in compliance with all Applicable Laws.

  
  	 
	14
	 
 
	 

  
  	  
	b.	Representations and Warranties of Licensor. Licensor represents and warrants to Licensee as follows: (i) Licensor is a limited liability Licensee duly organized and in good standing under the laws of the State of Colorado; (ii) the execution, delivery and performance of this Agreement by Licensor has been duly authorized by all necessary action on the part of Licensor’s directors and officers and does not violate, conflict with, or require the consent or approval of any third party pursuant to, any state or local law or regulation applicable to Licensor or any contract or legally binding obligation to which Licensor is subject; (iii) this Agreement constitutes the valid and binding obligation of Licensor enforceable against Licensor in accordance with its terms; (iv) Licensor holds and maintains the right to convey the licenses granted hereunder and the Licensor IP does not infringe upon the intellectual property rights of any third party; and (v) the Technology is free from defects and will allow Licensee to provide Licensed Services in accordance with industry standards and at a high level.

  
  	13.	Confidentiality; Non-Compete; Non-Disparagement Restrictions.

  
  	  
	a.	Confidentiality. At all times during the term of this Agreement (including any renewal term) and thereafter, the Parties will not distribute or disclose and will otherwise keep confidential any trade secrets or propriety information, including, but not limited to procedures, financial information, customer data, the Technology and other intellectual property of the Parties, as applicable (collectively, the “Confidential Information”), in whole or in part, except to the extent required to perform its obligations under this Agreement. Without limitation of the foregoing, each Party will hold the Confidential Information in confidence and will (a) exercise the same degree of care, but no less than a reasonable degree of care, to prevent its disclosure as it would take to safeguard its own confidential or proprietary information, and (b) limit disclosure of Confidential Information, including any notes, extracts, analyses or materials that would disclose Confidential Information, solely to those of its employees who need to know the information for purposes of performing its obligations under this Agreement and who agree to keep such information confidential. Upon termination of this Agreement, each Party shall immediately return all Confidential Information to the other Party and they shall shall have the right to conduct an audit within three (3) business days of termination to ensure compliance with the terms of this Agreement.

  
  	 
	15
	 
 
	 

  
  	  
	i.	Limitations. Section 13(a) above does not apply to any information that:

  
  	  
	(a)	is already lawfully in the receiving Party’s possession (unless received pursuant to a nondisclosure agreement); (b) is or becomes generally available to the public through no fault of the receiving Party; (c) is disclosed to the receiving Party by a third party who may transfer or disclose such information without restriction; (d) is required to be disclosed by the receiving Party as a matter of law (provided that the receiving Party will use all reasonable efforts to provide the disclosing Party with prior notice of such disclosure and to obtain a protective order therefor); (e) is disclosed by the receiving Party with the disclosing Party’s approval; or (f) is independently developed by the receiving Party without any use of confidential information. In all cases, the receiving Party will use all reasonable efforts to give the disclosing Party ten (10) calendar days’ prior written notice of any disclosure of information under this Agreement. The Parties will maintain the confidentiality of all confidential and proprietary information learned pursuant to this Agreement for a period of ten (10) years from the date of termination of this Agreement.

  
  	 
	16
	 
 
	 

  
  	  
	b.	Non-Compete Restrictions. At all times during the term of this Agreement (including any renewal term), (i) Licensee agrees that it will not, directly or indirectly through any related party, engage in the sale of any testing services or any other services that are similar to the Licensed Services in the Territory other than pursuant to this Agreement.
	  
	  
	  

	  
	c.	Non-Disparagement Restrictions. During the Term and all times thereafter, each Party agrees to take no action, including without limitation, statements, comments or communications, which is intended, or would reasonably be expected, to harm, disparage, or be derogatory or negative towards the other Party or its reputation or which would be reasonably expected to lead to unwanted or unfavorable publicity toto the other Party.
	  
	  
	  

	  
	d.	Saving Provision. The Parties agree and stipulate that the agreements and covenants not to compete contained in this Section are fair and reasonable in light of all of the facts and circumstances of their relationship; however, the Parties are aware that in certain circumstances courts have refused to enforce certain agreements not to compete. Therefore, in furtherance of and not in derogation of the provisions of the preceding paragraph the parties agree that in the event a court should decline to enforce the provisions of the preceding paragraph, that paragraph shall be deemed to be modified to restrict non-enforcing Party’s rights under this Agreement to the maximum extent, in both time and geography, which the court shall find enforceable.
	  
	  
	  

	  
	e.	Injunctive Relief. The Parties agree that any breach of Section 13 shall cause the other Party immeasurable and irreparable harm and the other Party shall be entitled to seek immediate injunctive relief from any court of competent jurisdiction, in addition to any other remedies that the other Party may have at law or in equity.

  
  	 
	17
	 
 
	 

  
  	  
	f.	Indemnification.

  
  	  
	i.	Licensee agrees to indemnify Licensor and hold Licensor harmless from and against any and all liabilities, losses and expenses arising from (i) Licensee’s unauthorized use of the Technology or the Licensed Marks; (ii) Licensee’s failure to comply with applicable laws or to maintain all required licenses and governmental authorizations; (iii) any material breach of Licensee’s representations and warranties set forth herein; and (iv) any liability to third parties as a result of Licensee’s sale of Licensed Services. Licensor alone shall have the right to take such actions which it determines, in its sole discretion, are reasonably necessary or desirable in connection with any infringement or alleged infringement by a third party of any portion of the Licensor IP, and Licensee shall not undertake any action in response to any infringement or alleged infringement without Licensor’s prior written consent. Licensee agrees to cooperate with and assist Licensor by taking whatever actions determined by Licensor to be reasonably necessary or desirable. Licensee shall not have any rights against Licensor for damages or other remedy by reason of Licensor’s failure to prosecute any alleged infringements.
	  
	  
	  

	  
	ii.	Licensor agrees to indemnify Licensee and hold Licensee harmless from and against any and all liabilities, losses and expenses arising from (i) Licensor’s unauthorized licensing of the Technology or the Licensed Marks to Licensee; (ii) Licensor’s failure to comply with applicable laws or to maintain all required licenses and governmental authorizations; (iii) any material breach of Licensor’s representations and warranties set forth herein; and (iv) any liability to third parties as a result of a claim that the Technology, the Licensed Marks or third-party software required or provided by Licensor violates the rights of such parties or is invalid.

  
 	14.	Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, NEITHER PARTY MAKES ANY WARRANTIES, EITHER EXPRESS OR IMPLIED, AND EACH PARTY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, ACCURACY, NON- INFRINGEMENT OF THIRD PARTY RIGHTS AND TITLE, AND ANY WARRANTIES THAT MAY ARISE FROM COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE.
	  
	  

	15.	Limitation of Liability. EXCEPT WITH RESPECT TO EACH PARTY’S OBLIGATIONS UNDER SECTION 13, EITHER PARTY’S BREACH, AND LICENSEE’S OBLIGATIONS, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY OR LIMITATION OF LIABILITY, NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, EXEMPLARY, SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES OF ANY KIND, OR FOR ANY DAMAGES RESULTING FROM LOSS OR INTERRUPTION OF BUSINESS, LOST DATA OR LOST PROFITS, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, HOWEVER CAUSED, EVEN IF SUCH PARTY HAS BEEN ADVISED OF OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

  
  	 
	18
	 
 
	 

  
  	16.	Insurance. For the period of time required to cover its obligations hereunder, each Party will maintain third party provided insurance in types and amounts customary for the type of business it conducts, and in any event reasonably adequate to cover any liabilities arising out of its obligations hereunder. Notwithstanding the preceding, Licensor acknowledges that Licensee is required to accept and handle marijuana and marijuana products of its customers and because marijuana is illegal under federal law, Licensee’s ability to obtain insurance may be limited. Upon a Party’s request, the other Party will provide to the requesting Party a certificate of insurance showing that such insurance is in place, which certificate shall demonstrate the amounts, exclusions and deductibles of such insurance coverage. Each Party shall notify the other Party in writing no less than thirty calendar days prior to the cancellation, termination or modification of the insurance coverage(s) described in the notifying Party’s insurance certificate(s). Each Party shall be named as additional insureds on such certificates of insurance of the other Party. Nothing in this Section shall in any way be construed to limit the liability of a Party under this Agreement.
	  
	  

	17.	Compliance with Laws. In connection with this Agreement, the Licensee agrees to comply with all applicable laws, statutes and ordinances of any applicable governmental or regulatory authority, including the Applicable Laws, that may be applicable to Licensee, its activities under this Agreement or the Licensed Services. This may include compliance with the California Bureau of Cannabis Control. Licensor acknowledges that the business of Licensee relates to marijuana, which is illegal under federal law, and acknowledges the resulting risk involved in providing a license to Licensee.
	  
	  

	18.	Contract Requirements. The Parties agree as follows:

 
  	  
	a.	This Agreement may not be transferred or assigned except in accordance with applicable laws.
	  
	  
	  

	  
	b.	Licensor acknowledges and agrees that its relationship with Licensee is contingent upon relevant regulatory agency approval throughout the entire term of its relationship with Licensee.
	  
	  
	  

	  
	c.	If the Bureau of Cannabis Control or any other regulatory agency determines that Licensor is not in compliance, then Licensee shall discontinue sales of any service or line of services containing any of Licensor’s intellectual property within 30 days of the finding unless and until the Licensor is in compliance and shall have the right to terminate this Agreement by notice to Licensor.

  
  	 
	19
	 
 
	 

  
  	19.	Employees; Agents; Representatives. Employees, agents and/or representatives, if any, of either Party, including Licensee’s Affiliates, who perform services for either Party pursuant to this Agreement shall also be bound by the provisions of this Agreement.
	  
	  

	20.	Relationship of Parties. The legal relationship of the Parties is exclusively that of licensor and licensee and no employer-employee, principal-agent, partnership, franchise, agency, joint venture or other legal relationship is created by this Agreement. Neither Party shall have the authority to enter into any contracts on behalf of the other Party.
	  
	  

	21.	Successors; Assignment; Binding Agreement. Licensee may not assign or transfer Licensee’s rights or delegate its obligations under this Agreement without Licensor’s prior written consent. In the event of a sale of substantially all of the assets of Licensor, Licensor’s consent to assignment shall not be unreasonably withheld or delayed. Licensor may freely assign this Agreement or any rights under this Agreement, or delegate any duties under this Agreement without the Licensee’s consent. This Agreement inures to the benefit of, and shall be binding upon, the successors and assigns of the parties to this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the Parties and their respective successors and permitted assigns.
	  
	  

	22.	Modifications and Waivers. This Agreement may be amended only by a written agreement signed by both Parties. With regard to any power, remedy or right provided in this Agreement or otherwise available to any Party, no waiver or extension of time shall be effective unless expressly contained in a writing signed by the waiving Party, no alteration, modification or impairment shall be implied by reason of any previous waiver, extension of time, delay or omission in exercise or other indulgence, and waiver by any Party of the time for performance of any act or condition hereunder does not constitute a waiver of the act or condition itself.
	  
	  

	23.	Notice. Except as otherwise provided in this Agreement, notices required to be given pursuant to this Agreement shall be effective when received, and shall be sufficient if given in writing, hand-delivered, sent by facsimile with confirmation of receipt, sent by First Class Mail, return receipt requested (for all types of correspondence), postage prepaid, or sent by overnight courier service and addressed as set forth below, or as amended by either Party, respectively, from time to time:

 
 If to the Licensee:
 Gexin Analytical Labs 
 7245 Harding Circle
 Buena Park, CA 90620
  
  	 
	20
	 
 
	 

  
 If to Licensor:
 EVIO Inc.
 2340 W. Horizon Ridge Pkwy, Ste 120
 Henderson, NV 89052
  
 	  
	 No objection may be made to the manner of delivery of any notice or other communication in writing actually received by a Party.

	  
	  

	24.	Entire Agreement. This Agreement, including the attached exhibits, constitutes the entire agreement of the parties hereto relating to the subject matter hereof and there are no written or oral terms or representations made by either Party other than those contained herein.
	  
	  

	25.	Publicity. Without the prior written consent of the other Party, neither Party shall disclose the terms and conditions of this Agreement, except disclosure may be made as is reasonably necessary to the disclosing Party’s bankers, attorneys, or accountants or except as may be required by law.
	  
	  

	26.	Expenses. Each Party to this Agreement shall bear all of its own expenses in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby, including without limitation all fees and expenses of its agents, representatives, counsel and accountants.
	  
	  

	27.	Governing Law; Jurisdiction. The validity, interpretation, construction, performance and enforcement of this Agreement shall be governed by the laws of the State of Colorado, regardless of the choice of law provisions of Nevada or any other jurisdiction. The parties agree to submit themselves to the jurisdiction of the courts of the state of Colorado regarding any issue arising from this Agreement. Licensee and Licensor each expressly waive and disavow any rights that may accrue under any other body of law. Notwithstanding the above, the Parties acknowledge and agree that the laws of the State of Nevada, and localities therein, apply to the Licensee’s business and operations.
	  
	  

	28.	Waiver of Trial by Jury. EACH PARTY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING IN CONNECTION WITH ANY MATTER RELATING TO THIS AGREEMENT.
	  
	  

	29.	Attorney’s Fees. In the event of any dispute between the parties arising out of this Agreement, the prevailing Party shall be entitled, in addition to any other rights and remedies it may have, to recover its reasonable attorney’s fees and costs.
	  
	  

	30.	No Interpretation against Drafter. Each Party participated in the negotiation and drafting of this Agreement, assisted by such legal and tax counsel as it desired, and contributed to its revisions. Any ambiguities with respect to any provision of this Agreement will be construed fairly as to all Parties and not in favor of or against any Party. All pronouns and any variation thereof will be construed to refer to such gender and number as the identity of the subject may require. The terms “include” and “including” indicate examples of a predicate word or clause and not a limitation on that word or clause.

  
  	 
	21
	 
 
	 

   	31.	Headings. The headings of Sections are provided for convenience only and will not affect the construction or interpretation of this Agreement.
	  
	  

	32.	Force Majeure. Neither Party shall be liable for any delay or failure to perform its obligations in this Agreement if such delay or failure to perform is due to any cause or condition reasonably beyond that Party’s control, including, but not limited to, acts of God, war, government intervention, riot, embargoes, acts of civil or military authorities, earthquakes, fire, flood, accident, strikes, inability to secure transportation, facilities, fuel, energy, labor or materials.
	  
	  

	33.	Survival. In addition to Licensee’s obligation to pay Licensor all amounts due hereunder, Licensee’s obligations, and all other provisions which by their nature are intended to survive this Agreement, shall expressly survive expiration or termination of the Agreement.
	  
	  

	34.	Invalidity. The invalidity or unenforceability of any term or terms of this Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this Agreement which shall remain in full force and effect.
	  
	  

	35.	Severability. If any terms or provisions of this Agreement shall be found to be illegal or unenforceable, notwithstanding, this Agreement shall remain in full force and effect and such terms or provisions shall be deemed stricken.
	  
	  

	36.	Headings. The various headings used in this Agreement are for convenience only and are not to be used in interpreting the text of the provision in which they appear to which they relate.
	  
	  

	37.	Further Assurances. Upon a Party’s reasonable request, the other Party shall, at its sole cost and expense, execute and deliver all further documents and instruments, and take all further acts, as are reasonably necessary to give full effect to this Agreement.
	  
	  

	38.	Counterparts. The Parties may execute this Agreement in multiple counterparts, each of which will constitute an original and all of which, when taken together, will constitute one and the same agreement.

 
 [Remainder of page intentionally left blank; signature page follows]
  
  	 
	22
	 
 
	 

  
 IN WITNESS WHEREOF, the parties have executed this Agreement intending to be legally bound as of the date set forth above.
  
  	 LICENSOR
 EVIO, Inc.
	 	LICENSEE
Gexin Analytial Labs LLC	 
	  
	  
	  
	  

	 By:
	/s/ William Waldrop	 	By: 	/s/ Mark Mesias	 
	  
	William Waldrop, CEO 	 	 	Mark Mesias, Managing Member	 
	  
		 	 		 
	  
	  
	  
	  
	  
	  

	  
	  
	  
	 By: 
	 /s/ Dr. Toto Pouthavantha
	  

	  
	  
	  
	  
	 Dr. Toto Pouthavantha, Managing Member
	  

  
  
  	 
	23
	 
 
	 

  
 EXHIBIT A
  
 TECHNOLOGY
  
 Proprietary and Confidential
  
  
  	 
	
	 
 
	 

  
 EXHIBIT B
  
 LICENSED MARKS
  
 The EVIO Labs Brand
  
 The company maintains brand identify information on its website at www.eviolabs.com/identity. Refer to this page to download most current logos, marks, taglines, and templates. Licensor will notify Licensee of any changes or additions to Licensed Marks.
  
 The primary EVIO logo is a lowercase “e” formed from a series of rhombus shapes of two alternating shades of green. The logo may be combined with “EVIOLABS” to form several approved variations of the EVIO logo that may be used on lab and marketing materials.
  
 The fonts used in the logo are Helevetica Nueue.
  
  
 
  
 
  	 
	
	 
 
	 

  
  
 EXHIBIT C
  
 LICENSE FEE, MANAGEMENT FEE, AND ROYALTY
  
 In consideration of the licenses contemplated hereunder, the Licensee shall pay to Licensor the License and Management Fees as set forth below.
  
 The fees payable with respect to the license of the Licensors Intellectual Property include the following license fees and the royalties:
  
 License Fee, Management Fee, and Royalty:
  
 	  
	a.	Licensee will acquire a license for a fee of $500,000:

  
 	  
	i.	$50,000 upon execution of this Agreement, and
	  
	  
	  

	  
	ii.	$75,000 payable in 6 monthly installments of $12,500 from the fourth month after the execution date through the 11th month of the execution date, and
	  
	  
	  

	  
	iii.	$375,000 payable on the 12th month after execution of this agreement.

  
  	  
	b.	Licensee will pay Licensor a monthly management fee of $15,000, payable one month after execution of the agreement, and each month thereafter, and
	  
	  
	  

	  
	 c.
	 Royalty of 5% of gross sales

	

  
 All dates, inclusive of renewals are based on the start date of this agreement as identified in Section 7(a). Labs started in the middle of the contract year, shall be pro-rated accordingly.
  
 Notwithstanding the foregoing, the License Fee may be renegotiated from time to time upon the mutual agreement of the Parties.
  
 The Management Fee shall be used to cover certain training and oversight activities by licensor, and details are provided by separate agreement.icpt_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			Option No.________
		

		
			INTERCEPT PHARMACEUTICALS, INC.
		

		
			2012 EQUITY INCENTIVE PLAN
		

		
			STOCK OPTION GRANT
		

		
			Stock Option Grant Notice (Employees and Consultants)
		

		
			Intercept Pharmaceuticals, Inc. (the “Company”) hereby grants to the participant named below (the “Participant”)  an option of the type specified below (this “Option”)  to purchase up to the number of shares of the Company’s  common stock, par value $0.001 per share (the “Shares”), set forth below at the exercise price set forth below. This Option is subject to all of the terms and conditions set forth in this Stock Option Grant Notice (this “Grant Notice”), the Intercept Pharmaceuticals, Inc. 2012 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement attached hereto (the “Agreement”). Capitalized terms not defined in this Grant Notice but defined in the Agreement or the Plan will have the meanings assigned to such terms in the Agreement or the Plan, as applicable. Except as expressly provided in the Agreement, in the event of any conflict between the provisions of this Grant Notice or the Agreement and those of the Plan, the provisions of the Plan will control.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Name and Address of Participant:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						Date of Grant:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						Type of Option:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						4.

					
					
						Number of Shares Underlying Option:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						5.

					
					
						Exercise Price Per Share:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						6.

					
					
						Option Expiration Date:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7.

					
					
						Vesting Commencement Date:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						8.

					
					
						Vesting Schedule:  This Option shall become exercisable (and the Shares issued upon exercise shall be vested) as follows provided the Participant is an Employee, director or Consultant of the Company or an Affiliate on the applicable vesting date (see vesting schedule below):

				

		
			 
		

		
			[INSERT VESTING SCHEDULE]
		

		
			See Section 1(b) of the Agreement for vesting in the event of a Change of Control (as defined in the Agreement).  The foregoing vesting provisions are cumulative and are subject to the other terms and conditions of the Agreement and the Plan.
		

		
			By accepting this Option, whether electronically or otherwise, the Participant acknowledges receipt of, and understands and agrees to, this Grant Notice, the Agreement and the Plan. Unless otherwise specified in a written agreement between the Company and the Participant, this Grant Notice, the Agreement and the Plan set forth the entire understanding between the Participant and the Company regarding this Option and supersede all prior oral and written agreements on the terms of this Option.
		

		
			
		

		
			

		 

 

		

		
			INTERCEPT PHARMACEUTICALS, INC.
		

		
			2012 EQUITY INCENTIVE PLAN
		

		
			STOCK OPTION AGREEMENT
		

		
			Pursuant to the Stock Option Grant Notice to which this agreement is attached (the “Grant Notice”) and this Stock Option Agreement (this “Agreement”), Intercept Pharmaceuticals, Inc. (the “Company”)  has granted to the participant named in the Grant Notice (the “Participant”) an option of the type specified in the Grant Notice (this “Option”), under and for the purposes set forth in the Intercept Pharmaceuticals, Inc. 2012 Equity Incentive Plan (the “Plan”),  to purchase up to the number of shares of the Company’s common stock, par value $0.001 per share (the “Shares”), indicated in the Grant Notice at the exercise price indicated in the Grant Notice (as may be adjusted from time to time in accordance with this Agreement and the Plan, the “Exercise Price”).  Capitalized terms not defined in this Agreement or in the Grant Notice but defined in the Plan will have the meanings assigned to such terms in the Plan.
		

		
			The terms and conditions of this Option, in addition to those set forth in the Grant Notice and the Plan, are as follows:
		

		
			1.          EXERCISABILITY OF OPTION.
		

		
			(a)         Subject to the terms and conditions set forth in this Agreement and the Plan, this Option shall become vested and exercisable as set forth in the Grant Notice. This Option shall continue to vest and become exercisable in accordance with its terms for so long as the Participant is an Employee, director or Consultant of the Company or an Affiliate.
		

		
			(b)         Notwithstanding the foregoing, except to the extent specifically provided to the contrary in any employment agreement between the Participant and the Company or an Affiliate, in the event of (i) a Change of Control (as defined below) and the Participant’s service with the Company, the acquiring or succeeding corporation or any Affiliate of any of the foregoing is terminated by such entity for any reason other than for Cause within 12 months of the Change of Control, then, immediately prior to such termination, this Option, to the extent then-outstanding, shall become fully vested and exercisable, or (ii) a Corporate Transaction (as defined in Section 24(b) of the Plan) that is a Change of Control in which the acquiring entity does not assume this Option, then, immediately prior to the Change of Control, this Option, to the extent then-outstanding, shall become fully vested and exercisable.
		

		
			For purposes of this Agreement, “Change of Control” means the occurrence of any of the following events:
		

		
			(i)          Ownership.  Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then-outstanding voting securities (excluding for this purpose any such voting securities held by the Company or its Affiliates or any employee benefit plan of the Company); or
		

		
			(ii)         Merger/Sale of Assets.  (A) A merger or consolidation of the Company whether or not approved by the Board of Directors, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation, as the case may be, outstanding immediately after such merger or consolidation;  or
		

		
			
		

		
			

		 

 

		

		
			(B) the sale or disposition by the Company of all or substantially all of the Company’s assets in a transaction requiring stockholder approval; or
		

		
			(iii)       Change in Board Composition.  A change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date of grant, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company).
		

		
			2.          TERM OF OPTION.
		

		
			This Option shall terminate on the Option Expiration Date specified in the Grant Notice  (provided, that if this Option is designated in the Grant Notice as an ISO and the Participant owns as of the date of grant of this Option more than 10% of the total combined voting power of all classes of capital stock of the Company or an Affiliate, such date may not be more than five years from the date of grant of this Option), but shall be subject to earlier termination as provided herein or in the Plan.
		

		
			If the Participant ceases to be an Employee, director or Consultant of the Company or an Affiliate for any reason other than the termination of the Participant for Cause (the date of such cessation of service, the “Termination Date”),  this Option, to the extent then vested and exercisable, and not previously terminated in accordance with this Agreement, may be exercised by the Participant or, as applicable, the Participant’s Survivors on or prior to the earliest of the following:
		

		
			(i)          in the event that the Participant ceases to be an Employee, director or Consultant of the Company or an Affiliate other than for Cause or due to the Disability or death of the Participant, the date that is three (3) months after the Termination Date; provided, that the commencement of such three-month period shall be tolled (subject to clause (iii) below) for so long as the sale of any Shares received upon exercise of this Option on or after the Termination Date (including in connection with a broker-assisted cashless exercise) would result in (a) short swing profit liability for the Participant under Section 16(b) of the Exchange Act or (b) a violation of the Company’s insider trading policy; provided,  further, that, in the event of the Participant’s Disability or death within such period, the Participant or, as applicable, the Participant’s Survivors may exercise this Option on or prior to the date that is one (1) year after the Termination Date;
		

		
			(ii)         in the event that the Participant ceases to be an Employee, director or Consultant of the Company or an Affiliate due to the Disability or death of the Participant, the date that is one (1) year after the Termination Date;  or
		

		
			(iii)       the Option Expiration Date specified in the Grant Notice.
		

		
			The unvested portion of this Option shall not be exercisable and shall expire and be cancelled on the Termination Date;  provided, that,  in the event that the Participant ceases to be an Employee, director or Consultant of the Company or an Affiliate due to the Disability or death of the Participant, and rights to exercise this Option accrue periodically, a  pro rata portion of any additional vesting rights that would have accrued on the next vesting date had the Participant not become Disabled or died shall vest and become exercisable as of the Termination Date.  Such proration shall be based upon the number of days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability or death.
		

		
			
		

		
			

		 

 

		

		
			If the Participant ceases to be an Employee of the Company or an Affiliate but continues after termination of employment to provide services to the Company or an Affiliate as a director or Consultant, this Option shall continue to vest and become exercisable until the Participant is no longer providing services to the Company or an Affiliate as set forth above; provided, that if this Option is designated in the Grant Notice as an ISO, it shall automatically convert and be deemed a Non-Qualified Option as of the date that is three months from termination of the Participant’s employment.
		

		
			In the event the Participant’s service is terminated by the Company or an Affiliate for Cause, the Participant’s right to exercise any unexercised portion of this Option (even if vested) shall cease immediately as of the time the Participant is notified his or her service is terminated for Cause, and this Option shall thereupon terminate.  Notwithstanding anything herein to the contrary, if subsequent to the Participant’s termination, but prior to the exercise of this Option, the Administrator determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then the Participant shall immediately cease to have any right to exercise this Option and this Option shall thereupon terminate.
		

		
			3.          METHOD OF EXERCISING OPTION.
		

		
			Subject to the terms and conditions of this Agreement, this Option may be exercised by written notice to the Company or its designee (in a form designated by the Company, which may include electronic notice) stating the number of Shares with respect to which this Option is being exercised.  Payment of the Exercise Price for such Shares shall be made in accordance with Paragraph 9 of the Plan.  The Company shall deliver such Shares as soon as practicable after the notice shall be received, provided,  however, that the Company may delay issuance of such Shares until completion of any action or obtaining of any consent, which the Company deems necessary under any applicable law (including, without limitation, state securities or “blue sky” laws).  The Shares as to which this Option shall have been so exercised shall be registered in the Company’s share register in the name of the person so exercising this Option (or, if this Option shall be exercised by the Participant and if the Participant shall so request in the notice exercising this Option, shall be registered in the Company’s share register in the name of the Participant and another person jointly, with right of survivorship) and shall be delivered as provided above to or upon the written order of the person exercising this Option.  In the event this Option shall be exercised, pursuant to Section 2 hereof, by any person other than the Participant, such notice shall be accompanied by appropriate proof of the right of such person to exercise this Option.  All Shares that shall be purchased upon the exercise of this Option as provided herein shall be fully paid and nonassessable.
		

		
			4.          PARTIAL EXERCISE.
		

		
			Exercise of this Option to the extent above stated may be made in part at any time and from time to time within the above limits, except that no fractional share shall be issued pursuant to this Option.
		

		
			5.          PROHIBITIONS ON TRANSFER.
		

		
			This Option shall not be transferable by the Participant otherwise than by will or by the laws of descent and distribution.  If this Option is a Non-Qualified Option then it may also be transferred pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act or the rules thereunder.  Except as provided above in this Section 5,  this Option shall be exercisable during the Participant’s lifetime only by the Participant (or, in the event of legal incapacity or incompetency, by the Participant’s guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution,
		

		
			
		

		
			

		 

 

		

		
			attachment or similar process.  Any attempted transfer, assignment, pledge, hypothecation or other disposition of this Option or of any rights granted hereunder contrary to the provisions of this Section 5, or the levy of any attachment or similar process upon this Option shall be null and void.
		

		
			6.          NO RIGHTS AS STOCKHOLDER.
		

		
			The Participant shall have no rights as a stockholder with respect to Shares subject to this Option until registration of the Shares in the Company’s share register in the name of the Participant.  Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to the date of such registration.
		

		
			7.          ADJUSTMENTS.
		

		
			This Option, including the number of Shares subject to this Option and the Exercise Price, shall be subject to adjustment from time to time as provided for in the Plan upon the occurrence of certain events described therein.
		

		
			8.          TAXES.
		

		
			The Participant acknowledges that any income or other taxes due from him or her with respect to this Option or the Shares issuable pursuant to this Option shall be the Participant’s responsibility.  The Participant acknowledges and agrees that (i) the Participant was free to use professional advisors of his or her choice in connection with his or her acceptance of this Option, has received advice from his or her professional advisors in connection with his or her acceptance of this Option, understands its meaning and import, and has accepted this Option freely and without coercion or duress; (ii) the Participant has not received and is not relying upon any advice, representations or assurances made by or on behalf of the Company or any Affiliate or any employee of or counsel to the Company or any Affiliate regarding any tax or other effects or implications of this Option, the Shares subject to this Option or other matters contemplated hereby; and (iii) neither the Administrator, the Company, its Affiliates, nor any of its or their officers or directors, shall be held liable for any applicable costs, taxes, or penalties associated with this Option if, in fact, the Internal Revenue Service were to determine that this Option constitutes deferred compensation under Section 409A of the Code.
		

		
			The Participant agrees that the Company may withhold from the Participant’s remuneration, if any, the amount of federal, state and local withholding taxes attributable to such amount that is considered compensation includable in such person’s gross income in connection with the exercise of this Option and, as a condition to the exercise of this Option, the Participant shall make arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.  Without limiting the generality of the foregoing, at the Company’s discretion, the amount required to be withheld may be withheld in cash from such remuneration, or in kind from the Shares otherwise deliverable to the Participant on exercise of this Option.  The Participant further agrees that, to the extent the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Company’s income tax withholding obligation, the Participant will reimburse the Company on demand, in cash, for the amount under-withheld.
		

		
			9.          SECURITIES LAWS COMPLIANCE.
		

		
			The Participant specifically acknowledges and agrees that this Option and any delivery of Shares hereunder shall be subject to compliance with the requirements of the Securities Act and other applicable securities laws, rules or regulations.  In addition, applicable securities laws, rules or regulations may
		

		
			
		

		
			

		 

 

		

		
			restrict the ability of the Participant to resell Shares delivered hereunder, including due to the Participant’s affiliation with the Company.  The Company shall not be obligated to issue the Shares if such issuance would violate any applicable securities law, rule or regulation.
		

		
			10.        NO OBLIGATION TO MAINTAIN RELATIONSHIP.
		

		
			The Participant acknowledges that: (i) the Company is not by the Plan or this Option obligated to continue the Participant as an Employee, director or Consultant of the Company or an Affiliate; (ii) the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (iii) the grant of this Option is a one-time benefit which does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (iv) all determinations with respect to future grants, if any, will be at the sole discretion of the Company; (v) the Participant’s participation in the Plan is voluntary; (vi) the value of this Option is an extraordinary item of compensation which is outside the scope of the Participant’s employment or consulting contract, if any; and (vii) this Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.
		

		
			11.        IF OPTION IS INTENDED TO BE AN ISO.
		

		
			If this Option is designated in the Grant Notice as an ISO, the Participant (or the Participant’s Survivors) may qualify for the favorable tax treatment provided to holders of options that meet the standards of Section 422 of the Code and any provision of this Option or the Plan which conflicts with the Code such that this Option would not be deemed an ISO shall be null and void, and any ambiguities shall be resolved so that this Option qualifies as an ISO.  The Participant should consult with the Participant’s own tax advisors regarding the tax effects of this Option and the requirements necessary to obtain favorable tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements.
		

		
			Notwithstanding the foregoing, to the extent that this Option is designated in the Grant Notice as an ISO, but would be deemed not to be an ISO pursuant to Section 422(d) of the Code because the Fair Market Value (determined as of the date of grant of this Option) of Shares with respect to which this Option becomes exercisable for the first time during any calendar year, when aggregated with the Fair Market Values (determined as of the respective dates of grant of such ISOs) of Shares with respect to which all other ISOs granted to the Participant become exercisable for the first time during such calendar year, exceeds $100,000, the portion of this Option representing such excess value shall be treated as a Non-Qualified Option (applied pro-rata over all vesting tranches of this Option in the applicable calendar year) and upon exercise the Participant shall have taxable income measured by the difference between the then Fair Market Value of the Shares received upon exercise and the price paid for such Shares pursuant to this Option.
		

		
			Neither the Company nor any Affiliate shall have any liability to the Participant, or any other party, if this Option (or any part thereof) is intended to be an ISO but is deemed not to be an ISO or for any action taken by the Administrator, including without limitation the conversion of an ISO to a Non-Qualified Option.
		

		
			12.        NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION OF AN ISO.
		

		
			If this Option is designated in the Grant Notice as an ISO, the Participant agrees to notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any of the Shares acquired pursuant to the exercise of this Option.  A “Disqualifying Disposition” is defined in Section 424(c) of the Code and includes any disposition (including any sale) of such Shares before the
		

		
			
		

		
			

		 

 

		

		
			later of (a) two years after the date the Participant was granted the ISO or (b) one year after the date the Participant acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code.  If the Participant has died before the Shares are sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.
		

		
			13.        NOTICES.
		

		
			Any notices required or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, registered or certified mail, return receipt requested, addressed as follows:
		

		
			If to the Company:
		

		
			Intercept Pharmaceuticals, Inc.
		

		
			10 Hudson Yards, 37th Floor
		

		
			New York, NY 10001
		

		
			Attention: General Counsel
		

		
			If to the Participant at the address set forth on the Grant Notice or to such other address or addresses of which notice in the same manner has previously been given.  Any such notice shall be deemed to have been given upon the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail.
		

		
			The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this Option by electronic means. By accepting this Option, whether electronically or otherwise, the Participant consents to receive such documents by electronic delivery and to participate in the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company.
		

		
			14.        GOVERNING LAW.
		

		
			The Grant Notice and this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflict of law principles thereof.  For the purpose of litigating any dispute that arises under the Grant Notice,  this Agreement or the Plan,  each of the Company and, by accepting this Option, whether electronically or otherwise, the Participant hereby consents to exclusive jurisdiction in New York and agrees that such litigation shall be conducted in the state courts of New York County, New York or the federal courts of the United States for the District of the Southern District of New York.
		

		
			15.        BENEFIT OF AGREEMENT.
		

		
			Subject to the provisions of the Plan and the other provisions hereof, the Grant Notice and this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.
		

		
			16.        ENTIRE AGREEMENT.
		

		
			The Grant Notice and this Agreement, together with the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof.  No statement, representation, warranty, covenant or agreement not expressly set forth in the Grant Notice or this Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of the
		

		
			
		

		
			

		 

 

		

		
			Grant Notice or this Agreement; provided,  however, in any event, the Grant Notice and this Agreement shall be subject to and governed by the Plan. This Option is subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. In addition, this Option (and any compensation paid or shares issued pursuant to this Option) is subject to recoupment in accordance with The Dodd-Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted by the Company and any compensation recovery policy otherwise required by applicable law.
		

		
			17.        MODIFICATIONS AND AMENDMENTS.
		

		
			The terms and provisions of the Grant Notice and this Agreement may be modified or amended as provided in the Plan.
		

		
			18.        WAIVERS AND CONSENTS.
		

		
			Except as provided in the Plan, the terms and provisions of the Grant Notice and this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of the Grant Notice or this Agreement, whether or not similar.  Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.
		

		
			19.        DATA PRIVACY.
		

		
			By accepting this Option, whether electronically or otherwise, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its Affiliates such information and data as the Company or any such Affiliate shall request in order to facilitate the grant of options and the administration of the Plan; (ii) waives any data privacy rights he or she may have with respect to such information or the sharing of such information; and (iii) authorizes the Company and each Affiliate to store and transmit such information in electronic form for the purposes set forth in the Grant Notice and this Agreement.
		

		
			20.        SEVERABILITY.
		

		
			If all or any part of the Grant Notice, this Award Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of the Grant Notice, this Award Agreement or the Plan not declared to be unlawful or invalid. Any section of the Grant Notice, this Award Agreement or the Plan (or part of such a section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such section or part of a section to the fullest extent possible while remaining lawful and valid.
		

		
			21.        NON-U.S. PARTICIPANTS.
		

		
			If the Participant works and/or resides outside of the United States, the applicable terms and conditions set forth in Appendix A shall apply to this Option. In addition, the Company reserves the right to impose other requirements on the Participant to the extent the Company determines that such requirements are necessary or advisable in order to comply with local law or facilitate the administration of the Plan and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
		

		
			
		

		
			

		 

 

		

		
			APPENDIX A
		

		
			INTERCEPT PHARMACEUTICALS, INC.
		

		
			2012 EQUITY INCENTIVE PLAN
		

		
			STOCK OPTION AGREEMENT
		

		
			TERMS AND CONDITIONS FOR NON-U.S. PARTICIPANTS
		

		
			This Appendix includes additional or different terms and conditions that govern this Option if the Participant works and/or resides  outside of the United States. This Appendix forms part of the Stock Option Agreement to which it is attached (the “Agreement”). Capitalized terms not defined in this Appendix but defined in the Agreement or the Plan will have the meanings assigned to such terms in the Agreement or the Plan, as applicable.  References within this Appendix to “you” refer to the Participant.
		

		
			These terms are general in nature, may not apply to your particular situation and are based on securities, tax and other laws that are often complex and subject to frequent change. As such, the Company strongly recommends that you do not rely on this summary as your only source of information relating to the consequences of your Option and participation in the Plan and further that you consult your personal tax or legal advisors for advice as to how the laws in your country apply to your situation.  Note that if you are a citizen or resident of a country other than the one in which you are working, additional requirements, other than those described herein, may be applicable to you.
		

		
			ALL NON-U.S. PARTICIPANTS
		

		
			1.          TAXES (REPLACING SECTION 8 OF THE AGREEMENT)
		

		
			The Participant acknowledges that any income or other taxes due from him or her with respect to this Option or the Shares issuable pursuant to this Option shall be the Participant’s responsibility.  The Participant acknowledges and agrees that (i) the Participant was free to use professional advisors of his or her choice in connection with his or her acceptance of this Option, has received advice from his or her professional advisors in connection with his or her acceptance of this Option, understands its meaning and import, and has accepted this Option freely and without coercion or duress; and (ii) the Participant has not received and is not relying upon any advice, representations or assurances made by or on behalf of the Company or any Affiliate or any employee of or counsel to the Company or any Affiliate regarding any tax or other effects or implications of this Option, the Shares subject to this Option or other matters contemplated hereby.
		

		
			The Participant agrees that the Company may withhold from the Participant’s remuneration, if any, the statutory or contractual amount of any federal, provincial, state, local and personal income taxes, wage tax and social security contributions (including, as applicable, UK National Insurance Contributions of any kind and Canada Pension Plan contributions) required by law or contract to be withheld or that the Participant has elected to bear (including, as applicable, employer National Insurance Contributions) in relation to the grant or exercise of this Option (“Participant Tax Liability”) and, as a condition to the grant or exercise of this Option (as applicable), the Participant shall make arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.  Without limiting the generality of the foregoing, at the Company’s discretion, the amount required to be withheld may be withheld in cash from such remuneration.  The Participant further agrees that, to the extent the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Company’s income or
		

		
			
		

		
			

		 

 

		

		
			wage tax and social security withholding obligation, the Participant will reimburse the Company on demand, in cash, for the amount under-withheld.
		

		
			2.          WAIVER OF RIGHTS ON TERMINATION (EXCEPT FRANCE, PORTUGAL, SPAIN AND DENMARK)
		

		
			The Participant hereby waives all and any rights to compensation or damages in consequence of the termination of his or her office or employment with the Company or his or her employing entity for any reasons whatsoever (whether lawful or unlawful and including, without prejudice to the generality of the foregoing, in circumstances giving rise to a claim for wrongful dismissal) insofar as those rights arise or may arise from his or her ceasing to have rights under or being entitled to exercise this Option as a result of such termination, or from the loss or diminution in value of any rights or entitlements in connection with the Plan.
		

		
			The Plan and this Option do not form part of the Participant’s contract of employment.  If the Participant ceases to be employed or engaged by the Company or any Affiliate for any reason (including as a result of a repudiatory breach of contract by the Company or its Affiliate), the Participant shall not be entitled, and by participating in the Plan the Participant shall be deemed irrevocably to have waived any entitlement, by way of compensation for loss of employment, breach of contract or otherwise, to any sum or other benefit to compensate the Participant for any rights or prospective rights under the Plan. This exclusion applies equally (and without limitation) to any loss arising from the way in which the discretion is (or is not) exercised under any provision of the Plan even if the exercise (or non-exercise) of such discretion is, or appears to be, irrational or perverse and/or breaches, or is claimed to breach any implied term of the Plan or any other contract between the Participant and the Participant’s employer. Participation in the Plan and any benefits provided under it shall not be pensionable nor will they count as pay or remuneration when calculating salary related benefits (including, but not limited to, pension).
		

		
			3.          DATA PRIVACY (IN ADDITION TO SECTION 19 OF THE AGREEMENT) (EXCEPT ITALY, PORTUGAL AND SPAIN)
		

		
			(a)         The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of his or her personal data as described in the Agreement by and among, as applicable, his or her employing entity or contracting party and the Company for the exclusive purpose of implementing, administering and managing his or her participation in the Plan.
		

		
			(b)         The Participant acknowledges the following:
		

		
			(i)          the Company holds certain personal information about the Participant, including, but not limited to, his or her name, home address and telephone number, work location and phone number, date of birth, hire date, bank and payroll details, social security numbers, details of all awards or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Personal Data”);
		

		
			(ii)         providing or transferring Personal Data to the Company is necessary and essential to the Participant’s participation in the Plan and that the Participant’s refusal to provide Personal Data or withdrawal of consent to the collection, storage or transfer of Personal Data may affect the Participant’s ability to
		

		
			
		

		
			

		 

 

		

		
			participate in the Plan since it would be impossible for the Company to comply with its contractual obligations under the Plan;
		

		
			 
		

		
			(iii)       the Participant’s Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country;
		

		
			(iv)        the Participant has been informed that the Company shall not transfer Personal Data from the Participant’s country without requiring the recipient to comply with the requirements of the General Data Protection Regulation (as applicable) and applicable data protection laws, and that the Participant may request a list with the names and addresses of any potential recipients of the Personal Data by contacting his or her local human resources representative;
		

		
			(v)         Personal Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan and any potential claim made by the Participant in relation to any award; and
		

		
			(vi)        the Participant may, at any time, exercise the right of access, rectification and cancelation of the Participant’s personal data, oppose, request additional information about the storage and processing of Personal Data or refuse to the further processing of the Personal Data by contacting in writing the Participant’s local human resources representative (who can be identified on the Company’s intranet).
		

		
			ADDITIONAL COUNTRY-SPECIFIC PROVISIONS
		

		
			AUSTRALIA
		

		
			Financial product advice:  The Participant acknowledges and agrees that advice provided by the Company (if any) in relation to this Option is of a general nature only and does not take into account the objectives, financial situation or needs of the Participant.  The Participant should consider obtaining advice from a person who is licensed by the Australian Securities and Investments Commission to give such advice. The Company is not licensed to provide financial product advice in Australia in relation to options and there is no cooling-off regime in Australia that applies in respect of the grant of options.
		

		
			Risk of acquiring and holding Common Stock:  The Participant acknowledges that there are risks of acquiring and holding Common Stock.  Before accepting or exercising this Option, or acquiring the underlying Shares, the Participant should satisfy himself or herself that he or she has a sufficient understanding of these matters and should consider whether Common Stock is a suitable investment for the Participant, having regard to the investment objectives, financial circumstances and taxation position of the Participant.
		

		
			(a)         The price at which Common Stock is quoted on the Nasdaq Global Select Market may decrease, even to the extent that the price is less than the price or prices paid for the Shares by the Participant.
		

		
			
		

		
			

		 

 

		

		
			(b)         There is no guarantee that an active market in Common Stock will continue. The number of potential buyers or sellers of Common Stock on the Nasdaq Global Select Market may vary at any time. This may increase the volatility of the market price of Common Stock.
		

		
			(c)         The Company may not pay dividends on Common Stock at any particular level or at all.  If the Company has paid dividends on Common Stock,  it may cease to pay such dividends.
		

		
			(d)         Holding Common Stock may have tax implications for the Participant and the tax regime applying to the Participant may change.
		

		
			Market price of Common Stock:  The Participant could, from time to time, ascertain the market price of Common Stock in Australian Dollars by obtaining the market price from the Nasdaq Global Select Market website, the Company’s website or applicable U.S. publication, and multiplying that market price by a published exchange rate to convert U.S. Dollars into Australian Dollars.
		

		
			BELGIUM
		

		
			Timing and calculation basis of taxation. You are required to accept the offer of this Option in writing. If this Option is accepted by you on or prior to the 60th day following the offer, you will recognize taxable income on the 60th day following the date of the offer (date of grant), and you will be required to include the taxable income within your yearly income tax return covering the financial year during which occurred the date of grant. You will not be subject to income tax upon exercise of this Option. The amount of the taxable income is calculated as a certain percentage of the fair market value of the underlying shares at the date of the offer. The income will be taxed as compensation income and subject to income tax and social security contributions.
		

		
			If this Option is only accepted by you after the 60th day following the date of the offer, you will not recognize taxable income on the date of grant but upon exercise, and you will be required to include the taxable income within your yearly income tax return covering the financial year during which occurred the exercise of this Option. The amount of taxable income will then be calculated on the basis of the fair market value of the stock acquired. The income will be taxed as compensation income and subject to income tax and social security contributions.
		

		
			Capital gains on sale. The capital gains on the sale of the stock are not taxable to the extent you qualify as a Belgian tax resident.
		

		
			CANADA
		

		
			Term of Option.  For purposes of Section 2 of the Agreement,  “Termination Date” means the later of: (i) the date that is the last day of any statutory notice period applicable to the Participant pursuant to applicable employment standards legislation; and (ii) the date that is designated by the Company or Affiliate to which the Participant provides services as the last day of the Participant’s employment, term of office or engagement with the Company or Affiliate (as applicable);  provided, that in the case of termination of employment by voluntary resignation by the Participant, such date shall not be earlier than the date notice of resignation was given. For certainty, except only as expressly required by applicable employment standards legislation, as amended or replaced, or agreed by the Company, no portion of this Option shall vest following the Participant’s Termination Date and no period of notice or payment in lieu of notice in respect of a termination of an office or employment without Cause shall extend such Termination Date.
		

		
			
		

		
			

		 

 

		

		
			Method of Exercising Option.  Payment of the Exercise Price for the Shares with respect to which this Option is exercised may not be made in either of the forms described in clause (b) or clause (c) of Paragraph 9 of the Plan.
		

		
			DENMARK
		

		
			Danish Stock Option Act.  In accepting this Option, you acknowledge that you have received an Employer Statement translated into Danish, which is being provided to comply with the Danish Stock Option Act and which sets out the main terms of the Plan applying to you. To the extent more favorable to you and required to comply with the Stock Option Act, the terms set forth in the Employer Statement, including terms regarding vesting and forfeiture in connection with termination of your employment will apply to your participation in the Plan.
		

		
			Exchange Control Notification.  If you establish an account holding Shares or cash outside Denmark, you must report the account to the Danish Tax Administration.  The form which should be used in this respect can be obtained from a local bank.  (Please note that these obligations are separate from and in addition to the obligations described below.)
		

		
			Securities and Tax Reporting Notification.  You may hold Shares acquired under the Plan in a safety-deposit account (e.g., a brokerage account) with either a Danish bank or with an approved foreign broker or bank.  If the Shares are held with a foreign broker or bank, you are required to inform the Danish Tax Administration about the safety-deposit account.  For this purpose, you must file a Form V (Erklaering V) with the Danish Tax Administration.  Both you and the broker or bank must sign the Form V.  By signing the Form V, the broker or bank undertakes an obligation, without further request each year, to forward information to the Danish Tax Administration concerning the Shares in the safety-deposit account.  In the event that the applicable broker or bank with which the account is held does not wish to, or pursuant to the laws of the country in question, is not allowed to assume such obligation to report, you will be solely responsible for providing certain details regarding the foreign brokerage or bank account and any Shares acquired in connection with the Plan and held in such account to the Danish Tax Administration as part of your annual income tax return.  By signing the Form V, you authorize the Danish Tax Administration to examine the account.  A sample of the Form V can be found at the following website: www.skat.dk.
		

		
			In addition, if you open a brokerage account or a bank account with a U.S. bank, the account will be treated as a deposit account because cash can be held in the account.  Therefore, you must also file a Form K (Erklaering K) with the Danish Tax Administration.  Both you and the broker must sign the Form K.  By signing the Form K, the broker or bank, as applicable, undertakes an obligation, without further request each year, to forward information to the Danish Tax Administration concerning the content of the deposit account.  In the event that the applicable financial institution (broker or bank) with which the account is held does not wish to, or pursuant to the laws of the country in question, is not allowed to assume such obligation to report, you will be solely responsible for providing certain details regarding the foreign brokerage or bank account to the Danish Tax Administration as part of your annual income tax return.  By signing the Form K, you authorize the Danish Tax Administration to examine the account.  A sample of Declaration K can be found at the following website: www.skat.dk.
		

		
			FRANCE
		

		
			Language Consent.  By accepting the grant, you confirm that you have read and understood the documents relating to the grant (the Plan, the Grant Notice and the Agreement, including this
		

		
			
		

		
			

		 

 

		

		
			Appendix) which were provided in the English language.  You confirm that you are fluent in English, written and spoken.  You accept the terms of these documents accordingly.
		

		
			Consentement Relatif à la Langue Utilisée.  En acceptant l’attribution, vous confirmez avoir lu et compris les documents relatifs à l’attribution (le Plan, l’Avis et le Contrat, y compris cette Annexe) qui ont été communiqués en langue anglaise.  Vous acceptez les termes de ces documents en connaissance de cause.
		

		
			Tax Notification.  This Option is not intended to qualify for favorable tax or social security treatment in France.
		

		
			Exchange Control Notification.  If you hold Shares outside of France or maintain a foreign bank account, you are required to report such to the French tax authorities when filing your annual tax return.
		

		
			GERMANY
		

		
			Taxes.  The following provision supplements Section 1 of this Appendix A:
		

		
			For the avoidance of doubt, under Section 1 of this Appendix A (which replaces Section 8  of the Agreement), the Company, inter alia, has the authority to deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy applicable taxes (including wage taxes (Lohnsteuern), solidarity surcharges (Solidaritätszuschläge), church taxes (Kirchensteuern) and social security contributions (Sozialversicherungsbeiträge)) arising from or relating to the (i) the grant, vesting or exercise of this Option or (ii) the delivery of the Shares. For the avoidance of doubt, Section 1 of this Appendix A shall remain unaffected.
		

		
			ITALY
		

		
			Data Privacy.  The following provision replaces Section 3 of this Appendix A:
		

		
			You understand that the Company and/or any Affiliate may hold certain personal information about you, including, without limitation, your name, home address and telephone number, date of birth, social insurance or other identification number, salary, nationality, job title, any Shares or directorships held in the Company or an Affiliate, details of all options, or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, managing, and administering the Plan (“Data”) and in compliance with applicable laws and regulations.
		

		
			You also understand that providing the Company with Data is necessary for the performance of the Plan and that your refusal to provide such Data would make it impossible for the Company to perform its contractual obligations and may affect your ability to participate in the Plan.  The Controller of personal data processing is Intercept Pharmaceuticals, Inc., 10 Hudson Yards, 37th Floor, New York, NY 10001 and pursuant to Art. 6 let. b) and c) of the General Data Protection Regulation (“GDPR”) and Legislative Decree no. 196/2003, its representative in Italy.
		

		
			You understand that Data will not be publicized, but it may be transferred to the Company’s designated broker/third party administrator for the Plan or such other stock plan service provider as may be selected by the Company in the future (any such entity, “Broker”), or other third parties involved in the management and administration of the Plan.  You understand that Data
		

		
			
		

		
			

		 

 

		

		
			may also be transferred to the independent registered public accounting firm engaged by the Company.  You further understand that the Company and its Affiliates will transfer Data amongst themselves as necessary for the purposes of implementing, administering and managing your participation in the Plan, and that the Company and/or any Affiliate may each further transfer Data to third parties assisting the Company in the implementation, administration and management of the Plan, including any requisite transfer of Data to the Broker or other third party with whom you may elect to deposit any Shares acquired under the Plan.  Such recipients may receive, possess, use, retain, and transfer Data in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Plan.  You understand that these recipients may be located in or outside the European Economic Area, such as in the United States or elsewhere, and in locations that might not provide the same level of protection as intended under Italian data privacy laws. In such case, the Company undertakes to comply with the applicable privacy law in order to ensure that the recipient meets the same standards provided by the European Union legislation, implementing appropriate and suitable safeguards, such as using standard clauses or equivalent safeguard measures as provided for by Art. 46 of the GDPR and paragraph 7 of Legislative Decree no. 196/2003.  Should the Company exercise its discretion in suspending all necessary legal obligations connected with the management and administration of the Plan, it will delete Data as soon as it has completed all the necessary legal obligations connected with the management and administration of the Plan.
		

		
			You understand 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 is collected and with confidentiality and security provisions, as set forth by applicable laws and regulations, with specific reference to Art. 6 let. b) and c) of the GDPR and 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 your consent thereto, as the processing is necessary to performance of contractual obligations related to implementation, administration, and management of the Plan.  You understand that, pursuant to Art. 15 of the GDPR and paragraph 7 of Legislative Decree no. 196/2003, you have the right to, without limitation, access, delete, update, correct, or terminate, for legitimate reason, the Data processing.  Additionally, you understand that you may exercise the right to portability, within the limits set forth by Art. 20 of the GDPR.
		

		
			Furthermore, you are aware that Data will not be used for direct-marketing purposes.  In addition, Data provided can be reviewed and questions or complaints can be addressed by contacting your local human resources representative.
		

		
			Grant Document Acknowledgment.  In accepting the grant of this Option, you acknowledge that you have received a copy of the Plan, the Grant Notice and the Agreement, including this Appendix, and have reviewed the Plan, the Grant Notice and the Agreement, including this Appendix, in their entirety and fully understand and accepts all provisions thereof.
		

		
			Foreign Asset Reporting Notification.  If you are an Italian resident and, during any fiscal year, hold investments or financial assets outside of Italy (e.g., cash, Shares) which may generate income taxable in Italy (or if you are the beneficial owner of such an investment or asset even if you do not directly hold the investment or asset), you are required to report such investments or assets on your annual tax return for such fiscal year (on UNICO Form, RW Schedule, or on a special form if you are not required to file a tax return).
		

		
			
		

		
			

		 

 

		

		
			NORWAY
		

		
			Securities and Tax Reporting Notification.  You may hold Shares acquired under the Plan in a safety-deposit account (e.g., a brokerage account) with either a Norwegian bank or with an approved foreign broker or bank.  If the Shares are held with a foreign broker or bank, you are required to inform the Norwegian Tax Administration about the safety-deposit account. You do this on forms RF-1088 and RF-1059 in connection with filing your annual tax return (“selvangivelse”). Shares held with a Norwegian bank will be reported automatically.
		

		
			PORTUGAL
		

		
			Language Consent. By accepting the grant of this Option, you confirm that you have read and understood the documents relating to the grant (the Plan, the Grant Notice and the Agreement, including this Appendix) which were provided to you in English language. You confirm that you are fluent in English, written and spoken. You accept the terms of these documents accordingly.
		

		
			Grant Document Acknowledgment. In accepting the grant of this Option, you acknowledge that you have received a copy of the Plan, the Grant Notice and the Agreement, including this Appendix, and have reviewed the Plan, the Grant Notice and the Agreement, including this Appendix, in their entirety and fully understand and accept all provisions thereof.
		

		
			Tax Reporting Obligation.  If the Shares acquired under the Plan are held with a foreign broker or bank, you are required to inform the Portuguese Tax Authorities about the existence of such account.  For this purpose, within the annual submission of your personal income tax return you must file Annex J with the Portuguese Tax Administration, identifying the account by reference to the applicable IBAN – International Bank Account Number and BIC - Bank Identifier Code.    Income arising out of the Plan and/or derived from the Shares is subject to reporting to the Portuguese Tax Authorities.
		

		
			Data Privacy.  The following provision replaces Section 3 of this Appendix A:
		

		
			You understand that the Company holds certain personal information about you, including, but not limited to, your name, home address and telephone number, work location and phone number, date of birth, hire date, details of all awards or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Personal Data”).
		

		
			You understand that the providing or transferring of Personal Data to the Company is necessary and essential to your participation in the Plan and that your refusal to provide Personal Data or withdrawal of consent to the collection, storage or transfer of Personal Data may affect your ability to participate in the Plan since it would be impossible for the Company to comply with its contractual obligations under the Plan.
		

		
			You understand that your Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country.
		

		
			You were informed that the personal data communicated outside of Portugal will be protected identically as provided for in Law No. 67/98, of 26 October, and that you may request a list with
		

		
			
		

		
			

		 

 

		

		
			the names and addresses of any potential recipients of the Personal Data by contacting your local human resources representative.
		

		
			You authorize the recipients to receive, possess, use, retain and transfer the Personal Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan.
		

		
			You understand that Personal Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan and any potential claim of the Participant.
		

		
			You understand that you may, at any time, exercise of the right of access, rectification and cancelation of your personal data, oppose, request additional information about the storage and processing of Personal Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative (who can be identified on the Company’s intranet).
		

		
			SPAIN
		

		
			Taxes.  The following provision supplements Section 1 of this Appendix A:
		

		
			Pursuant to Royal Decree-Law 13/2011 of 16 September (as amended), wealth tax (Impuesto sobre el Patrimonio) has been temporarily restored in Spain.  If the Participant’s only foreign assets are the Shares and the value of the Shares on 31 December exceeds the specified threshold the Participant will be required to make a declaration to the Spanish tax authorities between 1 January and 31 March of the immediately following year. The Participant much declare foreign rights and assets including (i) ISIN code of Shares; (ii) the name and corporate domicile of the issuing company; and (iii) the number, class, and value of the Shares held as of 31 December.
		

		
			Exchange Controls.  The Participant is responsible for complying with exchange control regulations in Spain. Declaration of the acquisition of Shares for statistical purposes to the Dirección General de Comercio e Inversiones (DGCI) of Ministerio de Economía is compulsory (i) if the purchase price exceeds the specified threshold; (ii) if the investor holds a stake of at least 10 percent in the Company; or (iii) if the investor belongs to the Company’ s board of directors. If Participants purchase any Shares through the use of a Spanish financial institution, the institution will automatically make the declaration to the DGCI; otherwise the Participant must make the declaration by filing the appropriate form with the DGCI. The Participant must also declare ownership of Shares with the DGCI in January of each year.
		

		
			Data Privacy. The following provisions replace Section 3 of this Appendix A:
		

		
			The Participant’s personal data will be processed by Intercept Pharmaceuticals, Inc. (the “Data Controller”) with a corporate domicile at 10 Hudson Yards, 37th Floor, New York, NY 10001.
		

		
			The purpose of the processing is to implement the Grant Notice and the Agreement under the Plan, verify eligibility conditions and develop and perform the contractual and legal obligations arising thereof. The processing of the Participant’s personal data is necessary for such purposes and its legal basis are the execution and development of the contractual relationship and, if applicable, the compliance with legal duties applicable to the Data Controller.  Personal data will be processed whilst the Participant holds the relevant awards and, after this, for six years, or, exceptionally, for the period during which any kind of liability may arise from a legal or contractual obligation applicable to the Data Controller.
		

		
			
		

		
			

		 

 

		

		
			The Participant’s personal data will be transferred outside the European Economic Area, to the United States, where Intercept Pharmaceuticals, Inc. is located. A copy of the relevant appropriate safeguards subscribed in order to carry out such international data transfer can be requested from human resources. Additionally, the Participant’s personal data may be disclosed only to those group companies which may have a legal basis for processing this personal data.
		

		
			The Participant may exercise his/her right of access, rights to rectification, erasure, objection, data portability, restriction of processing and any other right recognized by the applicable regulations from time to time, by sending a request to human resources. The Participant may also file any claim or request related to his or her data protection rights with the relevant supervisory authority. The personal data processed for the purposes described above derives from the execution of the Participant’s employment agreement or, in case that the Participant is an independent professional, the relevant services agreement.
		

		
			UNITED KINGDOM
		

		
			NIC Joint Election.  Unless the Company permits otherwise, this Option may not be exercised unless and until the Company (or the employing entity) has received from the Participant a duly completed joint election with the Company and his or her employing entity (in the form prescribed by the Company from time to time) to the effect that the Participant will become liable, so far as permissible by law, for the whole of employer national insurance contributions which may arise in connection with this Option and the Shares which may be or are acquired on the exercise of this Option.
		

		
			Taxes.  The following provision supplements Section 1 of this Appendix A:
		

		
			The amount of the Participant Tax Liability may be withheld in cash from such remuneration.  The Participant further agrees that, if the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Participant Tax Liability, the Participant will reimburse the Company on demand, in cash, for the amount under-withheld. Without limiting the foregoing, the Participant agrees (i) that the Participant shall, promptly upon being requested to do so by the Company, the Participant’s employer or former employer (as appropriate), elect (using a form approved by HM Revenue & Customs) that the whole or any part of the liability for employer National Insurance Contributions shall be transferred to the Participant; and (ii) to enter into a joint election, under section 431(1) or 431(2) of the Income Tax (Earnings & Pensions) Act 2003, in respect of the Shares delivered pursuant to the award, if required to do so by the Company, the Participant’s employer or former employer, before, on or within 14 days after any date of delivery of such Shares.

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