Document:

Document

Exhibit 10.13

MEDAVAIL,INC.
STOCK OPTION PLAN 
ADOPTED AS OF JUNE 10, 2012
AMENDED AS OF DECEMBER 19, 2013

STOCK OPTION PLAN
The purpose of this Plan is to advance the interests of the Company and its Subsidiaries (as defined herein) by: (i) providing Eligible Persons (as defined herein) with additional incentives; (ii) encouraging  share  ownership  by  Eligible  Persons;  (iii)  increasing  the  proprietary  interest  of Eligible Persons in the success of the Company; (iv) encouraging Eligible Persons to remain with the Company and/or its Subsidiaries; and (v) attracting new directors, officers, and employees to the Company or its Subsidiaries.
ARTICLE 1
GENERAL PROVISIONS
Section 1.1Administration
(1)This Plan shall be administered by the Board.
(2)Subject to the terms and conditions set forth herein, the Board is authorized to provide for the granting, exercise and method of exercise of Stock Options (as defined herein), all on such terms (which may vary between Stock Options granted and Participants (as defined herein) from time to time) as it shall determine. In addition, the Board shall have the authority to: (i) construe and interpret this Plan and all agreements entered into hereunder; (ii) prescribe, amend and rescind administrative guidelines, rules and regulations relating to this Plan; and (iii) make all other determinations necessary or advisable for the administration of this Plan. All determinations and interpretations made by the Board shall be binding on all Participants and on their legal, personal representatives and beneficiaries.
(3)Notwithstanding the foregoing or any other provision contained herein, the Board shall have the right to delegate the administration and operation of this Plan, in whole or in part, to a committee of the Board and/or to any member of the Board (as defined herein).
(4)A Stock Option shall be evidenced by a stock option agreement or certificate (“Certificate”), signed on behalf of the Company, which Certificate shall be substantially in the form  attached  hereto  as  Schedule  “A”  and in  such  other  form  as  the  Board  shall approve from time to time.
Section 1.2Definitions
For the purposes of this Plan, the following terms shall have the following meanings, unless otherwise defined elsewhere in this Plan:
(a)“Board” means the board of directors of the Company, and shall be deemed to include any committee   or   director   to   which   the   Board   has   fully   or   partially   delegated   the administration and operation of this Plan pursuant to Section 1.1;
(b)“Cause” (i) if the Participant has a written employment agreement with the Company or a Subsidiary in which “cause” is defined, “cause” as defined therein; or otherwise (ii) (A) the inability of the Participant to perform his or her duties due to a legal impediment such as an injunction, restraining order or other type of judicial judgment, decree or order entered against the Participant; (B) the failure of the Participant to follow the Company’s reasonable instructions with respect to the performance of his or her duties; (C) any material breach by the Participant of his or her obligations under any code of ethics, any other code of business conduct or any lawful policies or procedures of the Company; (D) excessive absenteeism, flagrant neglect of duties, serious misconduct, or conviction of crime or fraud; and (E) any other act or omission of the 
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Participant which would in law permit an employer to, without notice or payment in lieu of notice, terminate the employment of an employee;
(c)“Change in Control” means the occurrence of any of the following events:
(i)one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company, except that any change in the ownership of the stock of the Company as a result of a private financing of the Company that is approved by the Board will not be considered a Change in Control; or
(ii)If the Company has a class of securities registered pursuant to Section 12 of the United States Securities Exchange Act of 1934, as amended, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.   For purposes  of  this  clause  (ii),  if  any  Person  is  considered  to  be  in  effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or
(iii)A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.    For  purposes  of  this  subsection  (iii),  gross  fair  market  value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
For purposes of this Section 1.2(c), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final United States  Treasury Regulations and  United States Internal  Revenue  Service guidance that has been promulgated or may be promulgated thereunder from time to time.
Further  and  for  the  avoidance  of  doubt,  a  transaction  will  not  constitute  a  Change  in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same  proportions by  the persons  who held  the Company’s  securities immediately  before such transaction.
(d)“Certificate” has the meaning given to that term in Section 1.1;
(e)“Code” has the meaning given to that term in Section 4.1;
(f) “Company” means MedAvail, Inc. or any successor thereof;
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(g)“Date of Grant” means the date on which a particular Stock Option is granted by the Board as evidenced by a Stock Option Agreement;
(h)“Eligible Person” means, subject to all applicable laws and the other terms of this Plan:
(i)any director, officer, or employee of the Company or a Subsidiary; and
(ii)any Personal Holding Company;
(i)“Eligible U.S. Participants” has the meaning given to that term in Section 4.1;
(j)“Exercise  Notice”  means  a  notice  of  Stock  Option  exercise,  substantially  in  the form attached hereto as Schedule “B”;
(k)“Exercise Period” means the period from the Vesting Date to the Expiry Date during which a particular Stock Option may be exercised;
(l)“Exercise Price” means, with respect to a Stock Option, the fair market value of a Share on the Date of Grant as determined by the Board using reasonable methods and assumptions;
(m)“Expiry Date” has the meaning given to that term in Section 2.5;
(n)“Governmental  Entity”  means  any  applicable:  (i)  multinational,  federal,  provincial, state, municipal, local or other governmental or public department, commission, board, bureau or agency; (ii) any subdivision or authority of any of the foregoing; or (iii) any quasi-governmental body exercising (with proper jurisdiction) any regulatory or taxing authority under or in respect of any of the above;
(o)“IPO” means an initial public offering of the Company resulting in the holding of equity of the Company or any Subsidiary by the public, or a transaction giving rise to a stock exchange listing or over-the-counter quotation of equity of any of the Company or its Subsidiaries,  and  such  transaction  may  include  an  amalgamation,  merger,  plan  of arrangement, reverse take-over bid, share exchange take-over bid or other transaction having similar result, in each case, as may be designated as an “IPO” by the Board at anytime;
(p)“Liquidity Event” means (i) an IPO; or (ii) a Change in Control;
(q)“Participant” means an Eligible Person to whom a Stock Option has been granted;
(r)“Personal Holding Company” means a personal holding corporation that is either wholly owned, or controlled by, the Participant, and the shares of which are held directly or indirectly by any of the Participant or the Participant’s spouse, minor children and/or minor grandchildren;
(s)“Plan” means this MedAvail, Inc. Stock Option Plan, as amended from time to time; 
(t)“Shares” means the shares of common stock of the Company;
(u)“Stock Option” means an option to purchase Shares from treasury granted hereunder to a Participant;
(v)“Stock Option Agreement” means a stock option agreement substantially in the form attached hereto as Schedule “A”;
(w)“Subsidiary”  means  MedAvail  Technologies  Inc.  and  any  other  subsidiary  of  the Company designated by the Board from time to time for purposes of this Plan;
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(x)“Termination Date” means the date on which a Participant ceases to be an Eligible Person as a result of a termination of employment, or board service with the Company or a Subsidiary for any reason, including death, retirement,  resignation  or  Cause.  For  the purposes of this Plan, a Participant’s employment or board service with the Company or a  Subsidiary shall be considered  to have  terminated effective on the last day  of the Participant’s actual and active employment or board service with the Company or Subsidiary whether such day is selected by agreement with the individual, unilaterally by the Company or Subsidiary and whether with or without advance notice to the Participant. For the avoidance of doubt, no period of notice or pay in lieu of notice that is given  or  that  ought  to  have  been  given  under  applicable  law  in  respect  of  such termination of employment that follows or is in respect of a period after the Participant’s last  day  of  actual  and  active  employment  shall  be  considered  as  extending  the Participant’s  period  of  employment  for  the  purposes  of  determining  his  or  her entitlement under this Plan;
(y)“Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of security interest or other arrangement by which possession, legal title, beneficial ownership or the risk of economic exposure passes from one person to another, or to the same person in a different capacity, whether or not voluntary and whether or not for value, and any registered security interest or other agreement in connection with, or to effect, any of the foregoing; and
(z)“Vesting Date” means the date or dates determined in accordance with Section 2.3 on and after which a particular Stock Option, or any part thereof, may be exercised, subject to amendment or acceleration from time to time in accordance with the terms hereof.
Section 1.3Interpretation
In this Plan, references to Sections and Schedules are references to sections and schedules to this Plan, unless expressly stated otherwise. Where the context so requires, words importing the singular number include the plural and vice versa, and words importing the masculine gender also include the feminine and neuter genders. The use of headings in this Plan is for convenience only and does not affect the interpretation of this Plan. In this Plan, “including” means “including, without limitation”, except as otherwise expressly provided.
Section 1.4Governing Law
This Plan is to be governed by and interpreted in accordance with the laws of Ontario.
Section 1.5Shares Reserved
(1)Subject to Section 1.5(3), the securities that may be acquired by Participants under this Plan shall consist of authorized but unissued Shares.
(2)The aggregate number of Shares issuable under this Plan shall not exceed fifteen percent (15%) of the total number of Shares issued and outstanding on a fully-diluted basis, from time to time. Any Shares subject to a Stock Option which for any reason is cancelled, terminated or forfeited without having been exercised shall again be available for grants under this Plan. Any Shares subject to a Stock Option which has been exercised by a Participant, shall again be available for grants under this Plan. Fractional shares will not be issued and will be treated as specified in Section 2.9(5).
(3)If there is a change in the outstanding Shares by reason of any stock dividend or split, recapitalization, amalgamation, consolidation, combination or exchange of shares, or other corporate change, the Board shall make appropriate substitution or adjustment in:
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(a)the number or kind of Shares or other securities reserved for issuance pursuant to this Plan, and
(b)the  number  and  kind  of  Shares  or  other  securities  subject  to  unexercised  Stock Options theretofore granted and in the Exercise Price of such securities;
without any change in the total price applicable to the unexercised portion of the Stock Option, but with a corresponding adjustment in the price for each Share covered by the Stock  Option;  provided, however,  that  no  substitution  or  adjustment  shall  obligate  the Company to issue or sell fractional shares. If the Company is reorganized, amalgamated with another corporation or consolidated, the Board shall make such provisions for the protection of the rights of Participants as the Board in its discretion deems appropriate.
Section 1.6Proceeds from Exercise of Stock Options
The proceeds from any sale of Shares issued upon the exercise of Stock Options shall be added to the general funds of the Company and shall thereafter be used from time to time for such corporate purposes as the Company may determine.
ARTICLE 2
STOCK OPTION PLAN
Section 2.1Application
Grants of Stock Options to Eligible Persons shall be governed by this Article 2.
Section 2.2Grants
The Board may, from time to time in its discretion, grant Stock Options to any Eligible Person  upon  the  terms,  conditions  and  limitations  set  forth  herein  and  such  other  terms, conditions, restrictions and limitations permitted by and not inconsistent with this Plan as the Board may determine. An Eligible Person may receive Stock Options on more than one occasion under this Plan and may receive separate Stock Options on any one occasion.
Section 2.3Vesting of Stock Options
Unless otherwise determined by the Board in its sole discretion at or any time following the date that a particular Stock Option is granted, and subject to Section 2.6 and to Article 3, Stock Options shall vest as to one forty-eighth (1/48th) of each grant at the end of each fully completed month following the applicable Date of Grant until such Stock Option is fully vested.
Section 2.4Exercise Price
The exercise price for the Shares underlying a Stock Option shall be the Exercise Price.
Section 2.5Expiry Date
Unless otherwise fixed by the Board at the time the particular Stock Option is granted, and subject to the terms of this Plan, including at Section 2.6 and Article 3 of this Plan, each Stock Option will expire on the date (the “Expiry Date”) which is ten (10) years after the Date of Grant. No Stock Option may be exercised beyond its expiry. On the expiry of a Stock Option on such date or any earlier date pursuant to the terms of this Plan, the Stock Option will be null, void and of no effect.
Section 2.6Early Expiry and Forfeiture
(1)Any Stock Option or part thereof not exercised within the Exercise Period shall terminate and become null, void and of no effect as of the day immediately following the Expiry Date determined under Section 2.5 hereof, or, except as otherwise determined by the Board, such earlier date as follows:
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(a)Retirement – if a Participant ceases to be an Eligible Person as a result of his or her retirement from Board service or from the Company or a Subsidiary, in each case other than for Cause, each vested Stock Option held by such Participant will cease to be exercisable on the earlier of the original Expiry Date of the Stock Option and forty-five (45) days after the Termination Date and each unvested Stock Option held by the Participant will automatically terminate and become null, void and of no effect on the Termination Date;
(b)Termination for Cause – if the Board service or employment of a Participant with the Company or a Subsidiary is terminated for Cause, each vested and unvested Stock Option held by the Participant will automatically terminate and become null, void and of no effect on the Termination Date;
(c)Death – if a Participant dies, the legal representative of the Participant may exercise the Participant’s vested Stock Options for a period until the earlier of the original Expiry Date of the Stock Option and eighteen (18) months after the Termination Date,  but  only  to  the  extent  the  Stock  Options were  by  their  terms  vested  and exercisable  on  the  Termination  Date.  For  greater  certainty,  all  unvested  Stock Options held by a Participant who dies shall terminate and become null, void and of no effect on the Termination Date.
(d)Termination Without Cause and Other – if a Participant ceases to be an Eligible Person for any reason whatsoever other than the circumstances contemplated in Section 2.6(1)(a), (b) or (c), then all unvested Stock Options held by such Participant shall continue to vest for the six (6) month period following the Termination Date , provided that each vested Stock Option held by the Participant will cease to be exercisable on the earlier of the original Expiry Date of the Stock Option and six (6) month and one (1) day after the Termination Date and each unvested Stock Option held by such Participant will automatically terminate and become null, void and of no effect on the date that is six (6) months and one (1) day after the Termination Date. Without limitation, and for greater certainty only, this provision will apply regardless of whether the Participant received compensation in respect of dismissal or was entitled to a period of notice of termination which would otherwise have permitted a greater portion of the Stock Option to vest with the Participant.
Section 2.7Stock Option Agreement
Each Stock Option  shall  be  documented  by  a Stock Option  Agreement  signed by the Company and the Participant, in a form substantially similar to that attached at Schedule “A”.
Section 2.8Governmental Entity and Shareholder Approval
Where a Governmental Entity or shareholder approval is required for the grant or exercise of  Stock  Options,  notwithstanding  anything  to  the  contrary  contained  herein,  no  such  Stock Options may be exercised unless and until such approval has been obtained.
Section 2.9Exercise of Stock Options
(1)Subject  to  Section  2.9(2)  and  the  other  provisions  of  this  Plan,  including  any  vesting limitations imposed by the Board at the time of grant, Participants may exercise their Stock Options to acquire Shares by delivering to the Company an Exercise Notice, together with a bank draft or certified cheque in an amount equal to the aggregate Exercise Price of the Shares to be purchased pursuant to the exercise of Stock Options and, if required by the Company, the amount necessary to satisfy any applicable tax withholding or remittance obligations under applicable 
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law. Subject to the other provisions of this Plan, and any vesting limitations imposed by the Board at the time of grant, Stock Options may be exercised, in whole or in part, at any time or from time to time, by a Participant. Stock Options may only be exercised by the Participant or his or her legal representative.
(2)Notwithstanding Section 2.9(1) or any other provision of this Plan, Stock Options may not be exercised prior to a Liquidity Event, provided that the Board, in its sole discretion may permit Stock Options to be exercised prior to a Liquidity Event, on such terms as it sees fit, including if the Company has entered into a unanimous shareholder agreement and the Participant enters into such unanimous shareholder agreement, notwithstanding that the terms of such unanimous shareholder agreement may not be favourable to the Participant and which terms, without limitation, may: (i) impose restrictions on the Participant’s ability to transfer, encumber and vote their Shares; (ii) require the Participant to dispose of their Shares in certain circumstances and on certain terms that the Participant may not have the ability to negotiate; (iii) impose restrictions or obligations with respect to the transfer of the Participant’s Shares in certain circumstances and on certain terms that the Participant may not have the ability to negotiate, including in the context of certain Liquidity Events; (iv) impose certain restrictions or obligations with respect to the exercise of the voting rights of a Participant’s  Shares;  and  (v)  impose  certain  negative  covenants  on  the  Participant, including, non-competition and non-solicitation covenants.
(3)As soon as practicable following the receipt of the Exercise Notice, a bank draft or certified cheque in accordance with Section 2.9(1), the Company shall deliver to the Participant a certificate for the Shares so purchased.
(4)The issuance of Shares by the Company to a Participant pursuant to the exercise of any Stock Option is subject to compliance with all applicable laws, rules and regulations of all Governmental Entities applicable to the issuance and distribution of such Shares. The Participant agrees: (i) to comply with all such laws, rules, regulations and requirements; (ii) to furnish to the Company any information, report and/or undertakings required to comply with all such laws, rules, regulations and requirements; and (iii) to fully cooperate with the Company in complying with such laws, rules, regulations and requirements, including all tax withholding and remittance obligations.
(5)No fractional Shares or other security shall be issued upon the exercise of any Stock Option and,  accordingly,  if a  Participant  would become  entitled  to  a  fractional  Share  or  other security, such Participant shall have the right to acquire only the next lowest whole number of Shares or other security and no payment or other adjustment shall be made with respect to the fractional interest so disregarded.
(6)The  Company  or  a  Subsidiary  shall  have  the  right  to  withhold  at  source  from  the Participant’s other earnings all applicable income taxes and other withholdings required by law on any benefit realized upon the exercise of any Stock Options. Where the Participant does not have any or sufficient earnings on which to withhold, the Company may, prior to delivering to the Participant a certificate of the Shares in accordance with Section 2.9(3), require the Participant to provide the Company with a bank draft or certified cheque in an amount equal to the amount to be withheld. The Company shall inform the Participant of the amount  required to be withheld, if any, as soon as practicable following receipt of  the Participant’s Exercise Notice.
Section 2.10Assignment of Stock Options
Stock Options (and any rights thereunder) are not assignable or Transferable, except upon death. Any purported assignment or Transfer of Stock Options in contravention of the foregoing shall not be 
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recognized by the Company and shall result in the immediate expiry and termination of any such Stock Options and any rights relating thereto.
ARTICLE 3
CHANGE IN CONTROL AND LIQUIDITY EVENT
Section 3.1Change in Control
(1)Subject to Section 3.1(4), but notwithstanding any other provision of this Plan, in the event  of  a  Change  in  Control,  the  Board  may,  in  its  discretion,  without  the  necessity  or requirement for the agreement of any Participant: (i) accelerate, conditionally or otherwise, on such terms as it sees fit, the Vesting Date of any Stock Options; (ii) permit the conditional exercise of any Stock Options, on such terms as it sees fit; (iii) otherwise amend or modify the terms of any Stock Options, including for greater certainty permitting Participants to exercise any Stock Options to assist the Participants to participate in the Change in Control or to obtain the advantage of holding the underlying Shares during such Change in Control; (iv) terminate, immediately prior, on or following the successful completion of such Change in Control, on such terms as it sees fit, the Stock Options not exercised prior to the successful completion of such Change in Control, and (v) provide that Stock Options will be assumed, or substantially equivalent stock options will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices. The determination of the Board in respect of any such Change in Control shall for the purposes of this Plan be final, conclusive and binding.  The Board will not be obligated to treat all Stock Options or all Stock Options held by a Participant similarly in the event of a Change in Control.
(2)Notwithstanding any other provision of this Plan, in the event that:
(a)a Change in Control is not completed within the time specified therein (as the same may be extended); or
(b)all of the Shares subject to a Stock Option that were tendered by a Participant in connection with the Change in Control are not taken up or paid for by the offeror in respect thereof,
then the Board may, in its discretion, without the necessity or requirement for the agreement of any Participant, permit the Shares received upon such exercise, or in the case of Subsection (b) above the Shares that are not taken up and paid for, to be returned by the Participant to the Company and reinstated as authorized but unissued Shares and, with respect to such returned Shares, the related Stock Options may be reinstated as if they had not been exercised and the terms for such Stock Options becoming vested will be reinstated pursuant to this Section 3.1. If any Shares are returned to the Company under this Section 3.1, the Company will immediately refund the Exercise Price to the Participants for such Shares.
(3)Subject to Section 3.1(1), (2) and (4), but notwithstanding any other provision of this Plan, in the event of an actual Liquidity Event, then the number of unvested Stock Options held by each Participant that would have vested during the twelve (12) month period commencing from the date of the Liquidity Event had the Liquidity Event not occurred, shall automatically vest on the date of the Liquidity Event.
(4)Notwithstanding any other provision of this Plan, if the successor corporation does not assume or substitute for a Stock Option (or portion thereof) in the event of a merger of the Company with or into another corporation or other entity or a Change in Control, the Participant will fully vest in and have the right to exercise all of his or her outstanding Stock Options, including Shares as to which such Stock Options would not otherwise be vested or exercisable, and, with respect to Stock Options with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at 
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100% of target levels and all other terms and conditions met.   In addition, if a Stock Option is not assumed or substituted  in  the  event  of  a  merger  or  Change  in  Control,  the  Board  will  notify  the Participant in writing or electronically that the Stock Option will be exercisable for a period of time determined by the Board in its sole discretion, and the Stock Option will terminate upon the expiration of such period.
For the purposes of this Section 3.1(4), Stock Option will be considered assumed if, following the merger or Change in Control, the Stock Option confers the right to purchase, for each Share subject to the Stock Option immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of common stock for each Share held on the effective date of the   transaction   (and   if   holders   were   offered   a   choice   of   consideration,   the   type   of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its parent, the Board may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of a Stock Option, for each Share subject to such Stock Option, to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Shares in the merger or Change in Control.
Notwithstanding anything in this Section 3.1(4) to the contrary, a Stock Option that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Stock Option assumption.
Notwithstanding anything in this Section 3.1(4) to the contrary, if a payment under a Stock Option Agreement is subject to Code Section 409A and if the change in control definition contained in the Stock Option Agreement does not comply with the definition of “change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment would be permissible under Code Section 409A without triggering any penalties applicable under Code Section 409A.
ARTICLE 4
SPECIAL RULES FOR U.S. ELIGIBLE PERSONS
Section 4.1Section 409A Compliance
(1)Notwithstanding any other provision of this Plan, the following special rules will apply to all Eligible Persons (“Eligible U.S. Participants”) who are subject to U.S. income tax with respect to Stock Options issued under this Plan to them:
(a)all Stock Options granted under this Plan to Eligible U.S. Participants are intended to be exempt from Section 409A of the United States Internal Revenue Code of 1986, as amended (the “Code”) and will be construed accordingly. However, the Company will not be liable to any Eligible U.S. Participant or beneficiary with respect to any adverse tax consequences arising under Section 409A or other provision of the Code; and
(b)the Exercise Price for all Stock Options granted to Eligible U.S. Participants shall in no event be less than the fair market value of the Shares on the Date of Grant.
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ARTICLE 5
MISCELLANEOUS
Section 5.1Amendment, Suspension or Termination
(1)Subject to the provisions of Article 3, the Board may from time to time, suspend,terminate or discontinue this Plan at any time, or amend or revise the terms of this Plan or of any Stock Option granted under this Plan and any Certificate relating thereto, provided that no such suspension, termination, amendment or revision will be made:
(a)Governmental Entity having authority over the Company, this Plan or the Company’s shareholders; and
(b)in the case of an amendment or revision, if it materially adversely affects the rights of any Participant, without the consent of the Participant.
(2)If this Plan is terminated, the provisions of this Plan and any administrative guidelines or other rules adopted by the Board and in force at the time of such termination, shall continue in effect as long as any Stock Options under this Plan or any rights pursuant thereto remain outstanding. Notwithstanding such termination of this Plan, the Board may make any amendments to this Plan or to the terms of any outstanding Stock Options that it would be entitled to make if this Plan were still in effect.
Section 5.2Compliance with Legislation
(1)The Board may postpone or adjust the exercise of any Stock Option or the issue of any Shares pursuant to this Plan, as the Board, in its discretion, may deem necessary in order to permit the Company to effect or maintain qualification of this Plan, or the Shares issuable pursuant thereto, under the securities laws of any applicable jurisdiction, or to determine that the Shares and this Plan are exempt from any prospectus or equivalent requirements of any applicable securities laws.
(2)The Company shall not be obligated by any provision of this Plan, or any grant hereunder, to sell or issue Shares in violation of any applicable law. No Stock Option shall be granted, and no Shares issued hereunder, where such grant, issue or sale would require registration of this Plan, or the Shares issuable pursuant thereto, under the securities laws of any foreign jurisdiction, and any purported grant of any Stock Option or purported issue of Shares hereunder in violation of this provision shall be void.
(3)If Shares cannot be issued to a Participant upon the exercise of a Stock Option due to legal or  regulatory  restrictions,  the  obligation  of  the  Company  to  issue  such  Shares  shall terminate and any funds paid to the Company in connection with the exercise of such Stock Option will be returned to the applicable Participant as soon as practicable.
Section 5.3No Other Rights or Restrictions
(1)Nothing contained in this Plan nor in any Stock Option granted thereunder shall be deemed to give any Participant any interest or title in or to any Shares or any rights as a shareholder or any other legal or equitable right against the Company or any of its Subsidiaries whatsoever other than as set forth in this Plan and pursuant to the exercise of any Stock Option.
(2)Nothing contained herein shall prevent the Board from adopting other or additional share compensation arrangements or compensation arrangements, subject to any required approval.
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(3)Nothing contained herein shall prevent the Board from declaring or paying stock dividends or varying or amending its share capital or corporate structure.
(4)The Plan does not give any Participant the right or obligation to or to continue to serve as a director, officer or employee, as the case may be, to or of the Company or any Subsidiary. The awarding of Stock Options to any Eligible Person is a matter to be determined solely in the discretion of the Board.
(5)The Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment or issue of any Shares or any other securities in the capital of the Company other than as specifically provided for in this Plan. The grant of a Stock Option to, or the exercise of a Stock Option by, a Participant under this Plan does not create the right for such Participant to receive additional grants of Stock Options hereunder.
(6)The Company makes no representation or warranty as to the future market value of the Shares or with respect to any income tax matters affecting the Participant resulting from the grant or exercise of a Stock Option and/or transactions in the Shares. Neither the Company, nor any of its directors, officers, employees, shareholders or agents shall be liable for anything done or omitted to be done by such person or any other person with respect to the price, time, quantity or other conditions and circumstances of the issuance of Shares hereunder, with respect to any fluctuations in the market price of Shares or in any other manner related to this Plan.
Section 5.4Employment Agreements
Subject to Article 3 and Section 5.2, but notwithstanding Article 2 of this Agreement or anything else in this Plan, where an Eligible Person has entered into an employment agreement with the Company or a Subsidiary containing change of control, severance or other similar provisions applicable to options issued by the Company, the terms of this Plan and Stock Options granted to such person thereunder will be subject, as and to the extent applicable, to the terms of such employment agreement.
Section 5.5Severability
If any provision of this Plan or the Stock Option Agreement is ever held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts or provisions of this Plan or the Stock Option Agreement, which shall be construed, administered and enforced as if such illegal or invalid provision had never been included in this Plan or the Stock Option Agreement, as applicable.
Section 5.6Notice and Counterparts
Any notice required to be given by this Plan shall be in writing and shall be given by registered mail, postage prepaid, or delivered by courier or by facsimile transmission addressed, if to the Company, to the office of the Company at Unit#1, 6665 Millcreek Drive, Mississauga, Ontario L5N 5M4, Attention: General Counsel; or if to a Participant, to such Participant at his or her address as it appears on the books of the Company or in the event of the address of any such Participant not so appearing, then to the last known address of such Participant; or if to any other person, to the last known address of such person.
Section 5.7Time of the Essence
Time is of the essence in this Plan and the Stock Option Agreement.
Section 5.8Effective Date
This Plan shall become effective upon the approval of this Plan by the Board.
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SCHEDULE “A”
STOCK OPTION AGREEMENT
This  Stock  Option  Agreement  is  dated  this  .  day  of  .,  20.  between  MedAvail, Inc. (“MedAvail”) and [Name] (the “Optionee”).
WHEREAS the Optionee has been granted certain options (“Stock Options”) to acquire shares of common stock of MedAvail (“Shares”) under the MedAvail Stock Option Plan (the “Plan”), a copy of which has been provided to the Optionee;
AND WHEREAS capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan;
NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.MedAvail confirms that the Optionee has been granted Stock Options under the Plan on the following basis, subject to, the terms and conditions of the Plan:
															
	DATE OF
GRANT	NUMBER
OF STOCK
OPTIONS
	EXERCISE
PRICE (CDN $)	VESTING
SCHEDULE	EXPIRY DATE
	n	n	n	n	n

2.Attached to this Agreement as Schedule “A” is a form of notice that the Optionee may use to exercise any of his or her Stock Options in accordance with Section 2.9 of the Plan at any time and from time to time prior to the Expiry Date of such Stock Options.
3.By signing this Stock Option Agreement, the Optionee acknowledges, represents, warrants and covenants:
(a)that he or she has read and understands the Plan and agrees to comply with the terms and conditions thereof and of this Stock Option Agreement;
(b)that, subject to Section 2.9(2) of the Plan, Stock Options may not be exercised prior to a Liquidity Event;
(c)that the issuance of Shares by the Company to the Optionee on the exercise of any Stock Option is subject to compliance with all applicable laws, rules and regulations of all Governmental Entities  applicable  to the issuance and distribution  of such Shares. The Optionee agrees: (i) to comply with all such laws, rules, regulations and requirements; (ii) to furnish to the Company any information, report and/or undertakings required to comply with all such laws, rules, regulations and requirements; and (iii) to fully cooperate with the Company in complying with such laws,  rules,  regulations  and  requirements,  including  all  tax  withholding  and remittance obligations.
4.In the event this Stock Option is assumed or substituted for in connection with a Change in Control as contemplated by Section 3.1(1) and (4) of the Plan, if Optionee ceases to be an Eligible  Person as a result of being terminated without Cause during the twelve (12) month period following the consummation of a Change in Control, then any outstanding unvested   Shares  subject  to  this  Stock  Option  as  of  the  Termination  Date  shall automatically vest and become exercisable immediately prior to the Termination Date.
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5.This Agreement shall be governed by the laws of Ontario. Time shall be of the essence in this Agreement.  This Agreement may be executed in counterparts each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Stock Option Agreement. This Agreement shall enure to the benefit of and shall be binding upon the parties and their heirs, attorneys, guardians, estate trustees, executors, trustees and administrators and the successors of MedAvail.
IN WITNESS WHEREOF the parties hereto have executed this Agreement.
									
			
	Name of Optionee		MEDAVAIL, INC.
			Authorized Signing Officer

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SCHEDULE “B”
ELECTION TO EXERCISE STOCK OPTIONS
TO:      MEDAVAIL, INC. (“MEDAVAIL”)
The undersigned option holder hereby irrevocably elects to exercise stock options (“Stock Options”) granted by MedAvail to the undersigned as set out in a Stock Option Agreement dated •, 20• for the number of shares of common stock of MedAvail (“Shares”) as set forth below:
									
	Number of Shares to be Acquired:
		
			
	Stock Option Exercise Price (per Share):
		$
			
	Aggregate Purchase Price:
		$
			
	Amount enclosed  that is payable on account of withholding of tax or other required deductions relating to the exercise of the Stock Options (contact MedAvail for details of such amount)(the “Applicable Withholdings and Deductions”):
		$
			
	□ Or check here if alternative arrangements have been made with MedAvail with respect to the payment of Applicable Withholdings and Deductions;
		

and hereby tenders a certified cheque or bank draft for such Aggregate Purchase Price, and, if applicable, Applicable Withholdings and Deductions, and directs such Shares to be registered and a certificate therefore to be issued in the name of
									
	DATED this ____ day of ____.
		
			
		Signature
			
			
			
			Name

-15-Document

Exhibit 10.14

MEDAVAIL, INC.
2018 EQUITY INCENTIVE PLAN
1.Purposes of the Plan.  The purposes of this Plan are:
•to attract and retain the best available personnel for positions of substantial responsibility,
•to provide additional incentive to Employees, Directors and Consultants, and
•to promote the success of the Company’s business.
The Plan permits the grant of Incentive Stock Options and Nonstatutory Stock Options.
2.Definitions.  As used herein, the following definitions will apply:
(a)“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.
(b)“Applicable Laws” means the legal and regulatory requirements relating to the administration of equity-based awards, including but not limited to, under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan.
(c)“Board” means the Board of Directors of the Company.
(d)“Change in Control” means the occurrence of any of the following events:
(i)Change in Ownership of the Company.  A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control; provided, further, that any change in the ownership of the stock of the Company as a result of a private financing of the Company that is approved by the Board also will not be considered a Change in Control.  Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event shall not be considered a Change in Control under this subsection (i).  For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities 

which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or 
(ii)Change in Effective Control of the Company.  If the Company has a class of securities registered pursuant to Section 12 of the Exchange Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or
(iii)Change in Ownership of a Substantial Portion of the Company’s Assets.  A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3).  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
For purposes of this Section 2(d), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.
Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
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(e)“Code” means the Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.
(f)“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or by a duly authorized committee of the Board, in accordance with Section 4 hereof.
(g)“Common Stock” means the common stock of the Company.
(h)“Company” means MedAvail, Inc., a Delaware corporation, or any successor thereto.
(i)“Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital-raising transaction, and (ii) do not directly promote or maintain a market for the Company’s securities, in each case, within the meaning of Form S-8 promulgated under the Securities Act, and provided further, that a Consultant will include only those persons to whom the issuance of Shares may be registered under Form S-8 promulgated under the Securities Act.
(j)“Director” means a member of the Board.
(k)“Disability” means total and permanent disability as defined in Code Section 22(e)(3), provided that in the case of Nonstatutory Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.  
(l)“Employee” means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.
(m)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(n)“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:
(i)If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
(ii)If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean 
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between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
(iii)In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.
(o)“Incentive Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning of Code Section 422 and the regulations promulgated thereunder.
(p)“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
(q)“Option” means a stock option granted pursuant to the Plan.
(r)“Option Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Option granted under the Plan.  The Option Agreement is subject to the terms and conditions of the Plan.
(s)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).
(t)“Participant” means the holder of an outstanding Option.
(u)“Plan” means this 2018 Equity Incentive Plan.
(v)“Securities Act” means the Securities Act of 1933, as amended. 
(w)“Service Provider” means an Employee, Director or Consultant.
(x)“Share” means a share of the Common Stock, as adjusted in accordance with Section 10 of the Plan.
(y)“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f).
3.Stock Subject to the Plan.
(a)Stock Subject to the Plan.  Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares that may be subject to Options and sold under the Plan is equal to (i) 2,272,530 Shares minus any Shares subject to stock options or similar awards granted under the MedAvail, Inc. Stock Option Plan (the “Existing Plan”) that, as of the date of stockholder approval of this Plan, remain outstanding plus (ii) any Shares subject to stock options or similar awards granted under the Existing Plan that, after the date of stockholder approval of this Plan, expire or otherwise terminate without having been exercised in full and Shares issued pursuant to awards granted under the Existing Plan that, after the date of stockholder approval of this Plan, are forfeited to or repurchased by the Company, with the maximum number of Shares to be reserved for issuance under the Plan pursuant to clauses (i) 
-4-

and (ii) equal to 2,272,530 Shares. The Shares may be authorized but unissued, or reacquired Common Stock.
(b)Lapsed Options.  If an Option expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  Shares that have actually been issued under the Plan under any Option will not be returned to the Plan and will not become available for future distribution under the Plan.  Shares used to pay the exercise price of an Option or to satisfy the tax withholding obligations related to an Option will become available for future grant or sale under the Plan.  Notwithstanding the foregoing and, subject to adjustment as provided in Section 10, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance under the Plan pursuant to Section 3(b).  
(c)Share Reserve.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.
4.Administration of the Plan. 
(a)Procedure.
(i)Multiple Administrative Bodies.  Different Committees with respect to different groups of Service Providers may administer the Plan.
(ii)Other Administration.  Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which Committee will be constituted to satisfy Applicable Laws. 
(b)Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:
(i)to determine the Fair Market Value;
(ii)to select the Service Providers to whom Options may be granted hereunder;
(iii)to determine the number of Shares to be covered by each Option granted hereunder;
(iv)to approve forms of Option Agreements for use under the Plan;
(v)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration, and any restriction or limitation 
-5-

regarding any Option or the Shares relating thereto, based in each case on such factors as the Administrator will determine;
(vi)to construe and interpret the terms of the Plan and Options granted pursuant to the Plan; 
(vii)to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;
(viii)to modify or amend each Option (subject to Section 15(c) of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Options; provided, however, that in no case will an Option be extended beyond its original maximum term;
(ix)to allow Participants to satisfy withholding tax obligations in a manner prescribed in Section 11;
(x)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator;
(xi)to allow a Participant to defer the receipt of the delivery of Shares that otherwise would be due to such Participant under an Option; and
(xii)to make all other determinations deemed necessary or advisable for administering the Plan.
(c)Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Options and will be given the maximum deference permitted by Applicable Laws.
5.Eligibility.  Nonstatutory Stock Options may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.
6.Stock Options.
(a)Grant of Options.  Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Options in such amounts as the Administrator, in its sole discretion, will determine.
(b)Option Agreement.  Each Option will be evidenced by an Option Agreement that will specify the exercise price, the term of the Option, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
(c)Limitations.  Each Option will be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  Notwithstanding such designation, however, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant 
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during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options.  For purposes of this Section 6(c), Incentive Stock Options will be taken into account in the order in which they were granted, the Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted, and calculation will be performed in accordance with Code Section 422 and Treasury Regulations promulgated thereunder.
(d)Term of Option.  The term of each Option will be stated in the Option Agreement; provided, however, that the term will be no more than ten (10) years from the date of grant thereof.  In the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.
(e)Option Exercise Price and Consideration.
(i)Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option will be determined by the Administrator, but will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.  In addition, in the case of an Incentive Stock Option granted to an Employee who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.  Notwithstanding the foregoing provisions of this Section 6(e)(i), Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Code Section 424(a). 
(ii)Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.
(iii)Form of Consideration.  The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant.  Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided further that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise, (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws, or (8) any combination of the foregoing methods of payment.  In making its 
-7-

determination as to the type of consideration to accept, the Administrator will consider if acceptance of such consideration may be reasonably expected to benefit the Company.
(f)Exercise of Option.
(i)Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement.  An Option may not be exercised for a fraction of a Share.
An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable tax withholding).  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.  The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 10 of the Plan.
Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.
(ii)Termination of Relationship as a Service Provider.  If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within thirty (30) days of termination, or such longer period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) to the extent that the Option is vested on the date of termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iii)Disability of Participant.  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within six (6) months of termination, or such longer period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) to the extent the Option is vested on the date of termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not 
-8-

vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iv)Death of Participant.  If a Participant dies while a Service Provider, the Option may be exercised within six (6) months following the Participant’s death, or within such longer period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) to the extent that the Option is vested on the date of death, by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to the Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.  Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.  
7.Compliance With Code Section 409A.  Options will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Code Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A, except as otherwise determined in the sole discretion of the Administrator.  The Plan and each Option Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator.  To the extent that an Option or payment, or the settlement or deferral thereof, is subject to Code Section 409A, the Option will be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A. In no event will the Company have any obligation under the terms of this Plan to reimburse a Participant for any taxes or other costs that may be imposed on Participant as a result of Section 409A.  
8.Leaves of Absence/Transfer Between Locations.  Unless the Administrator provides otherwise, vesting of Options granted hereunder will be suspended during any unpaid leave of absence.  A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.  For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.
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9.Limited Transferability of Options.
(a)Unless determined otherwise by the Administrator, Options may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant.  If the Administrator makes an Option transferable, such Option may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act.
(b)Further, until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, or after the Administrator determines that it is, will, or may no longer be relying upon the exemption from registration under the Exchange Act as set forth in Rule 12h-1(f) promulgated under the Exchange Act (the “Rule 12h-1(f) Exemption”), an Option, or prior to exercise, the Shares subject to the Option, may not be pledged, hypothecated or otherwise transferred or disposed of, in any manner, including by entering into any short position, any “put equivalent position” or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Exchange Act, respectively), other than to (i) persons who are “family members” (as defined in Rule 701(c)(3) of the Securities Act) through gifts or domestic relations orders, or (ii) to an executor or guardian of the Participant upon the death or disability of the Participant, in each case, to the extent required for continued reliance on the Rule 12h-1(f) Exemption.  Notwithstanding the foregoing sentence, the Administrator, in its sole discretion, may determine to permit transfers to the Company or in connection with a Change in Control or other acquisition transactions involving the Company to the extent permitted by Rule 12h-1(f) or, if the Company is not relying on the Rule 12h-1(f) Exemption, to the extent permitted by the Plan.  
10.Adjustments; Dissolution or Liquidation; Merger or Change in Control.
(a)Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of shares of stock that may be delivered under the Plan and/or the number, class, and price of shares of stock covered by each outstanding Option; provided, however, that the Administrator will make such adjustments to an Option required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Option.
(b)Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation of such proposed action.
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(c)Merger or Change in Control.  In the event of a merger of the Company with or into another corporation or other entity or a Change in Control, each outstanding Option will be treated as the Administrator determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation, that (i) Options will be assumed, or substantially equivalent awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Options will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Options will vest and become exercisable, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Option in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Option or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Option or realization of the Participant’s rights, then such Option may be terminated by the Company without payment), or (B) the replacement of such Option with other rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing.  In taking any of the actions permitted under this subsection 10(c), the Administrator will not be obligated to treat all Options or all Options held by a Participant similarly.
In the event that the successor corporation does not assume or substitute for the Option (or portion thereof), the Participant will fully vest in and have the right to exercise all of his or her outstanding Options, including Shares as to which such Options would not otherwise be vested or exercisable and, with respect to Options with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met, in all cases, unless specifically provided otherwise under the applicable Option Agreement or other written agreement between the Participant and the Company or any of its Subsidiaries or Parents, as applicable.  In addition, if an Option is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant in writing or electronically that the Option will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option will terminate upon the expiration of such period.
For the purposes of this subsection 10(c), an Option will be considered assumed if, following the merger or Change in Control, the Option confers the right to purchase, for each Share subject to the Option immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor 
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corporation, provide for the consideration to be received upon the exercise of an Option, for each Share subject to such Option, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control.
Notwithstanding anything in this Section 10(c) to the contrary, and unless otherwise provided in an Option Agreement, an Option that vests upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Option assumption.  
Notwithstanding anything in this Section 10(c) to the contrary, if a payment under an Option Agreement is subject to Code Section 409A and if the change in control definition contained in the Option Agreement does not comply with the definition of “change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment would be permissible under Code Section 409A without triggering any penalties applicable under Code Section 409A.
11.Tax Withholding.
(a)Withholding Requirements.  Prior to the delivery of any Shares pursuant to an Option (or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Option (or exercise thereof).  
(b)Withholding Arrangements.  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by such methods as the Administrator shall determine, including, without limitation, (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine if such amount would not have adverse accounting consequences, as the Administrator determines in its sole discretion, (iii) delivering to the Company already-owned Shares having a fair market value equal to the statutory amount required to be withheld or such greater amount as the Administrator may determine, in each case, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, (iv) selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld, or (v) any combination of the foregoing methods of payment.  The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant with respect to the Option on the date that the amount of tax to 
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be withheld is to be determined.  The fair market value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.
12.No Effect on Employment or Service.  Neither the Plan nor any Option will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company or its Subsidiaries or Parents, as applicable, nor will they interfere in any way with the Participant’s right or the right of the Company and its Subsidiaries or Parents, as applicable to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.
13.Date of Grant.  The date of grant of an Option will be, for all purposes, the date on which the Administrator makes the determination granting such Option, or such other later date as is determined by the Administrator.  Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.
14.Term of Plan.  Subject to Section 18 of the Plan, the Plan will become effective upon its adoption by the Board.  Unless sooner terminated under Section 15, it will continue in effect for a term of ten (10) years from the later of (a) the effective date of the Plan, or (b) the earlier of the most recent Board or stockholder approval of an increase in the number of Shares reserved for issuance under the Plan.
15.Amendment and Termination of the Plan.
(a)Amendment and Termination.  The Board may at any time amend, alter, suspend or terminate the Plan.  
(b)Stockholder Approval.  The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
(c)Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.  Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination.
16.Conditions Upon Issuance of Shares.
(a)Legal Compliance.  Shares will not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.
(b)Investment Representations.  As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.
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17.Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any state, federal or foreign law or under the rules and regulations of the Securities and Exchange Commission, the stock exchange on which Shares of the same class are then listed, or any other governmental or regulatory body, which authority, registration, qualification or rule compliance is deemed by the Company’s counsel to be necessary or advisable for the issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority, registration, qualification or rule compliance will not have been obtained.   
18.Stockholder Approval.  The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board.  Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
19.Information to Participants.  If and as required (i) pursuant to Rule 701 of the Securities Act, if the Company is relying on the exemption from registration provided pursuant to Rule 701 of the Securities Act with respect to the applicable Option, and/or (ii) pursuant to Rule 12h-1(f) of the Exchange Act, to the extent the Company is relying on the Rule 12h-1(f) Exemption, then during the period of reliance on the applicable exemption and in each case of (i) and (ii) until such time as the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall provide to each Participant the information described in paragraphs (e)(3), (4), and (5) of Rule 701 under the Securities Act not less frequently than every six (6) months with the financial statements being not more than 180 days old and with such information provided either by physical or electronic delivery to the Participants or by written notice to the Participants of the availability of the information on an Internet site that may be password-protected and of any password needed to access the information. The Company may request that Participants agree to keep the information to be provided pursuant to this section confidential. If a Participant does not agree to keep the information to be provided pursuant to this section confidential, then the Company will not be required to provide the information unless otherwise required pursuant to Rule 12h-1(f)(1) under the Exchange Act (if the Company is relying on the Rule 12h-1(f) Exemption) or Rule 701 of the Securities Act (if the Company is relying on the exemption pursuant to Rule 701 of the Securities Act).
20.Forfeiture Events.  The Administrator may specify in an Option Agreement that the Participant's rights, payments, and benefits with respect to an Option will be subject to the reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Option. Notwithstanding any provisions to the contrary under this Plan, an Option shall be subject to the Company's clawback policy as may be established and/or amended from time to time (the “Clawback Policy”). The Administrator may require a Participant to forfeit, return or reimburse the Company all or a portion of the Option and any amounts paid thereunder pursuant to the terms of the Clawback Policy or as necessary or appropriate to comply with Applicable Laws.
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MEDAVAIL, INC.
2018 EQUITY INCENTIVE PLAN
STOCK OPTION AGREEMENT
Unless otherwise defined herein, the terms defined in the 2018 Equity Incentive Plan (the “Plan”) shall have the same defined meanings in this Stock Option Agreement (the “Option Agreement”).
I.NOTICE OF STOCK OPTION GRANT
Name:
Address:
The undersigned Participant has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:
																		
	Date of Grant:		
						
	Vesting Commencement Date:		
						
	Exercise Price per Share:	$		
						
	Total Number of Shares Granted:					
						
	Total Exercise Price :	$		
						
	Type of Option:		Incentive Stock Option	
						
			Nonstatutory Stock Option	
						
	Term/Expiration Date:		

Vesting Schedule:
This Option shall be exercisable, in whole or in part, according to the following vesting schedule:
[Insert vesting schedule, e.g.: One forty-eighth (1/48th) of the Shares subject to the Option shall vest each month after the Vesting Commencement Date on the same day of the month as the Vesting Commencement Date (and if there is no corresponding day, on the last day of the month), subject to Participant continuing to be a Service Provider through each such date.]
If a Liquidity Event occurs before Participant ceases to be a Service Provider, then the number of Shares subject to the Option that would have vested during the twelve (12)-month period commencing from the date of the Liquidity Event had the Liquidity Event not occurred 

shall automatically vest on the date of the Liquidity Event, and the vesting schedule above shall be adjusted by reducing the number of Shares scheduled to vest on each remaining vesting date on a pro-rata basis, with the aggregate number of reduced Shares equal to the number of accelerated Shares.
For purposes of this Agreement, a “Liquidity Event” means a Change in Control or an IPO (as defined below).
For purposes of this Agreement, an “IPO” means an initial public offering of the Company resulting in the holding of equity of the Company or any Subsidiary by the public, or a transaction giving rise to a stock exchange listing or over-the-counter quotation of equity of any of the Company or its Subsidiaries, and such transaction may include an amalgamation, merger, plan of arrangement, reverse take-over bid, share exchange take-over bid or other transaction having similar result, in each case, as may be designated as an “IPO” by the Board at anytime.
Termination Period:
This Option shall be exercisable for three (3) months after Participant ceases to be a Service Provider, unless such termination is due to Participant’s death or Disability, in which case this Option shall be exercisable for twelve (12) months after Participant ceases to be a Service Provider.  Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and this Option may be subject to earlier termination as provided in Section 10 of the Plan.
II.AGREEMENT
1.Grant of Option.  The Administrator of the Company hereby grants to the Participant named in the Notice of Stock Option Grant in Part I of this Option Agreement (“Participant”), an option (the “Option”) to purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise price per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 15 of the Plan, in the event of a conflict between the terms and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail.
If designated in the Notice of Stock Option Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.  Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a Nonstatutory Stock Option (“NSO”).  Further, if for any reason this Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a NSO granted under the Plan.  In no event shall the Administrator, the Company or any Parent or Subsidiary or any of their respective employees or directors have any liability to Participant (or any other person) due to the failure of the Option to qualify for any reason as an ISO.
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2.Exercise of Option.
(a)Right to Exercise.  This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and with the applicable provisions of the Plan and this Option Agreement.
(b)Method of Exercise.  This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A (the “Exercise Notice”) or in a manner and pursuant to such procedures as the Administrator may determine, which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company.  The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, together with any applicable tax withholding.  This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price, together with any applicable tax withholding.
No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise comply with Applicable Laws.  Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Participant on the date on which the Option is exercised with respect to such Shares.
(c)Agreement to be Bound by Shareholder Agreements.  As a condition to the exercise of any portion of the Option, Participant shall be required to execute and deliver to the Company any documents necessary for Participant to become a party to and be bound by the terms of any voting, investors’ rights, right of first refusal and co-sale, and other agreements by and among the Company and its stockholders, as they may be amended from time to time (the “Shareholder Agreements”).
3.Participant’s Representations.  In the event the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is exercised, Participant shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B.
4.Method of Payment.  Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Participant:
(a)cash; 
(b)check;
(c)consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or 
(d)surrender of other Shares which (i) shall be valued at its Fair Market Value on the date of exercise, and (ii) must be owned free and clear of any liens, claims, encumbrances or security interests, if accepting such Shares, in the sole discretion of the Administrator, shall not result in any adverse accounting consequences to the Company.
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5.Restrictions on Exercise.  This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law.
6.Non-Transferability of Option.
(a)This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by Participant.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant.
(b)Further, until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, or after the Administrator determines that it is, will, or may no longer be relying upon the exemption from registration of Options under the Exchange Act as set forth in Rule 12h-1(f) promulgated under the Exchange Act (the “Reliance End Date”), Participant shall not transfer this Option or, prior to exercise, the Shares subject to this Option, in any manner other than (i) to persons who are “family members” (as defined in Rule 701(c)(3) of the Securities Act) through gifts or domestic relations orders, or (ii) to an executor or guardian of Participant upon the death or disability of Participant.  Until the Reliance End Date, the Options and, prior to exercise, the Shares subject to this Option, may not be pledged, hypothecated or otherwise transferred or disposed of, including by entering into any short position, any “put equivalent position” or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Exchange Act, respectively), other than as permitted in clauses (i) and (ii) of this paragraph. 
7.Term of Option.  This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.
8.Tax Obligations.
(a)Tax Withholding.  Participant agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Participant) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise.  Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver the Shares if such withholding amounts are not delivered at the time of exercise.
(b)Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, or (ii) the date one (1) year after the date of exercise, Participant shall immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant. 
(c)Code Section 409A.  Under Code Section 409A, an Option that vests after December 31, 2004 (or that vested on or prior to such date but which was materially modified 
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after October 3, 2004) that was granted with a per Share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the date of grant (a “discount option”) may be considered “deferred compensation.”  An Option that is a “discount option” may result in (i) income recognition by Participant prior to the exercise of the Option, (ii) an additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest charges.  The “discount option” may also result in additional state income, penalty and interest tax to the Participant.  Participant acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share exercise price of this Option equals or exceeds the Fair Market Value of a Share on the date of grant in a later examination.  Participant agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share on the date of grant, Participant shall be solely responsible for Participant’s costs related to such a determination.
9.Entire Agreement; Governing Law.  The Plan and the Shareholder Agreements are incorporated herein by reference.  The Plan, the Shareholder Agreements, and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant.  This Option Agreement is governed by the internal substantive laws but not the choice of law rules of Ontario.
10.No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.
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Participant acknowledges receipt of a copy of the Plan and the Shareholder Agreements and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof.  Participant has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Option.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option.  Participant further agrees to notify the Company upon any change in the residence address indicated below.
									
	PARTICIPANT
		MEDAVAIL, INC.

			
			
	Signature
		By

			
			
	Print Name
		Print Name

			
			
			Title

			
	Residence Address
		

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EXHIBIT A
2018 EQUITY INCENTIVE PLAN
EXERCISE NOTICE
MedAvail, Inc.
Unit#1
6665 Millcreek Drive
Mississauga, Ontario L5N 5M4
Attention: General Counsel
1.Exercise of Option.  Effective as of today, ________________, ____, the undersigned (“Participant”) hereby elects to exercise Participant’s option (the “Option”) to purchase ________________ shares of the Common Stock (the “Shares”) of MedAvail, Inc. (the “Company”) under and pursuant to the 2018 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement dated ______________, _____ (the “Option Agreement”).
2.Delivery of Payment.  Participant herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement, and any and all withholding taxes due in connection with the exercise of the Option.
3.Representations of Participant.  Participant acknowledges that Participant has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.
4.Rights as Stockholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Common Stock subject to the Option, notwithstanding the exercise of the Option.  The Shares shall be issued to Participant as soon as practicable after the Option is exercised in accordance with the Option Agreement.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in Section 10 of the Plan.
5.Agreement to be Bound by Shareholder Agreements.  As a condition to the exercise of the Option, Participant agrees to execute and deliver to the Company any documents necessary for Participant to become a party to and be bound by the terms of any Shareholder Agreements (as defined in the Option Agreement).
6.Tax Consultation.  Participant understands that Participant may suffer adverse tax consequences as a result of Participant’s purchase or disposition of the Shares.  Participant represents that Participant has consulted with any tax consultants Participant deems advisable in connection with the purchase or disposition of the Shares and that Participant is not relying on the Company for any tax advice.

7.Restrictive Legends and Stop-Transfer Orders.
(a)Legends.  Participant understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN AN AGREEMENT BY AND AMONG THE ISSUER AND ITS STOCKHOLDERS (INCLUDING THE ORIGINAL HOLDER OF THESE SHARES) OR THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF TIME FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES SET FORTH IN AN AGREEMENT BY AND AMONG THE ISSUER AND ITS STOCKHOLDERS (INCLUDING THE ORIGINAL HOLDER OF THESE SHARES) AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER PRIOR TO THE EXPIRATION OF SUCH PERIOD WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER.
(b)Stop-Transfer Notices.  Participant agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.
(c)Refusal to Transfer.  The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.
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8.Successors and Assigns.  The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.
9.Interpretation.  Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Participant or by the Company forthwith to the Administrator, which shall review such dispute at its next regular meeting.  The resolution of such a dispute by the Administrator shall be final and binding on all parties.
10.Governing Law; Severability.  This Exercise Notice is governed by the internal substantive laws, but not the choice of law rules, of Ontario.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice shall continue in full force and effect.
11.Entire Agreement.  The Plan, the Option Agreement, and the Shareholder Agreements are incorporated herein by reference.  This Exercise Notice, the Plan, the Option Agreement, the Shareholder Agreements, and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant.
									
	Submitted by:
		Accepted by:

			
	PARTICIPANT
		MEDAVAIL, INC.

			
			
	Signature
		By

			
	Print Name
		Print Name

			
			Title

			
	Address:
		Address:

			
			
			
			
			
			
			Date Received

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EXHIBIT B
INVESTMENT REPRESENTATION STATEMENT
									
	PARTICIPANT
	:	
			
	COMPANY
	:	MEDAVAIL, INC.

			
	SECURITY
	:	COMMON STOCK

			
	AMOUNT
	:	
			
	DATE
	:	

In connection with the purchase of the above-listed Securities, the undersigned Participant represents to the Company the following:
(a)Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities.  Participant is acquiring these Securities for investment for Participant’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).
(b)Participant acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed herein.  In this connection, Participant understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Participant’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one (1) year or any other fixed period in the future.  Participant further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available.  Participant further acknowledges and understands that the Company is under no obligation to register the Securities. Participant understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable state securities laws.
(c)Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Participant, the exercise shall be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, 

ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of the applicable conditions specified by Rule 144, including in the case of affiliates (1) the availability of certain public information about the Company, (2) the amount of Securities being sold during any three (3) month period not exceeding specified limitations, (3) the resale being made in an unsolicited “broker’s transaction”, transactions directly with a “market maker” or “riskless principal transactions” (as those terms are defined under the Securities Exchange Act of 1934) and (4) the timely filing of a Form 144, if applicable.
In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require (i) the availability of current public information about the Company; (ii) the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and (iii) in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in sections (2), (3) and (4) of the paragraph immediately above.
(d)Participant further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.  Participant understands that no assurances can be given that any such other registration exemption shall be available in such event.
			
	PARTICIPANT

	
	
	Signature

	
	
	Print Name

	
	
	Date

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