Document:

Exhibit 10.11

 

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT, dated as of October 2, 2017 (“Agreement”),
is by and among Golub Capital BDC 3, Inc., a Maryland corporation, (“Depositor”), GC Advisors LLC, a Delaware
limited liability company (“GC Advisors”), the Depositor and GC Advisors are also individually herein referred
to as an “Interested Party” and collectively as the “Interested Parties”), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as escrow agent hereunder (“Escrow Agent”).

 

BACKGROUND

 

A. Depositor and GC Advisors have entered into
that certain investment and advisory agreement (the “Underlying Agreement”), dated as of September 29, 2017.

 

B. Escrow Agent has agreed to accept, hold,
and disburse the funds deposited with it and any earnings thereon in accordance with the terms of this Agreement.

 

C. Depositor and GC Advisors have appointed
the Representatives (as defined below) to represent them for all purposes in connection with the funds to be deposited with Escrow
Agent and this Agreement.

 

D. The Interested Parties have agreed that the
Depositor will cause to be deposited into escrow one-third of each Incentive Fee (as defined in the Underlying Agreement) payable
to GC Advisors under the terms of the Underlying Agreement (the “Escrow Amounts”) and the Interested Parties
acknowledge that the Escrow Agent has no obligation to calculate, verify or track any Incentive Fee payable under the terms of
the Underlying Agreement

 

E.
Depositor and GC Advisors acknowledge that (i) Escrow Agent is not a party to and has no duties or obligations under the
Underlying Agreement, (ii) all references in this Agreement to the Underlying Agreement are solely for the convenience of Depositor
and GC Advisors, and (iii) Escrow Agent shall have no implied duties beyond the express duties set forth in this Agreement.

 

F. The Escrow Agent is willing to act as the
Escrow Agent hereunder, and to hold the Escrow Amounts in non-interest-bearing account no.____________________, title: GBDC3-GC
ADVISORS ESCROW.

 

NOW THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves, their successors
and assigns, hereby agree as follows:

 

1.          Definitions.
The following terms shall have the following meanings when used herein:

 

     

     

    

  

“Business Day” shall mean any day, other than
a Saturday, Sunday or legal holiday, on which Escrow Agent at its location identified in Section 15 is open to the public for general
banking purposes.

 

“Escrow Property” shall mean the funds deposited
with Escrow Agent pursuant to Section 3 of this Agreement, together with any interest and other income thereon.

 

“Escrow Period” shall mean the period commencing
on the date hereof and ending at the close of Escrow Agent’s Business Day on or immediately after October 2, 2023 unless
earlier terminated pursuant to this Agreement.

 

“Final Order” shall mean a final and nonappealable
order of a court of competent jurisdiction (an “Order”), which Order is delivered to Escrow Agent accompanied
by a written instruction from Depositor or GC Advisors given to effectuate such Order and confirming that such Order is final,
nonappealable and issued by a court of competent jurisdiction, and Escrow Agent shall be entitled to conclusively rely upon any
such confirmation and instruction and shall have no responsibility to review the Order to which such confirmation and instruction
refers.

 

“Indemnified Party” shall have the meaning set
forth in Section 11.

 

“Joint Written Direction” shall mean a written
direction executed by the Representatives in accordance with Section 15 and directing Escrow Agent to disburse all or a portion
of the Escrow Property or to take or refrain from taking any other action pursuant to this Agreement.

 

“Depositor Representative” shall mean the person(s)
so designated on Schedule C hereto or any other person designated in a writing signed by Depositor and delivered to Escrow Agent
and the GC Advisors Representative in accordance with the notice provisions of this Agreement, to act as its representative under
this Agreement.

 

“Representatives” shall mean the Depositor Representative
and the GC Advisors Representative.

 

“GC Advisors Representative” shall mean the person(s)
so designated on Schedule C hereto or any other person designated in a writing signed by GC Advisors and delivered to Escrow Agent
and the Depositor Representative in accordance with the notice provisions of this Agreement, to act as its representative under
this Agreement.

 

2.          Appointment
of and Acceptance by Escrow Agent. Depositor and GC Advisors hereby appoint Escrow Agent to serve as escrow agent hereunder.
Escrow Agent hereby accepts such appointment and, upon receipt by wire transfer of the Escrow Property in accordance with Section
3, agrees to hold, invest and disburse the Escrow Property in accordance with this Agreement.

 

3.          Deposit
of Escrow Property. Depositor will transfer the Escrow Property by wire transfer of immediately available funds, to an account
designated by Escrow Agent. Escrow Property shall remain uninvested except as provided in Section 7.

 

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4.            Disbursements
of Escrow Property.

 

(a)          Escrow
Agent shall disburse Escrow Property at any time and from time to time, upon receipt of, and in accordance with, a Joint Written
Direction substantially in the form of Attachment 1 hereto and received by Escrow Agent as set forth in Section 15. Such Joint
Written Direction shall contain complete payment instructions, including funds transfer instructions or an address to which a check
shall be sent.

 

(b)          RESERVED

 

(c)          Prior
to any disbursement, Escrow Agent must receive reasonable identifying information regarding the recipient so that Escrow Agent
may comply with its regulatory obligations and reasonable business practices, including without limitation a completed United States
Internal Revenue Service (“IRS”) Form W-9 or Form W-8, as applicable. All disbursements of Escrow Property shall
be subject to the fees and claims of Escrow Agent and the Indemnified Parties pursuant to Section 11 and Section 12.

 

(d)          Depositor
and GC Advisors may each deliver written notice to Escrow Agent in accordance with Section 15 changing their respective funds transfer
instructions, which notice shall be effective only upon receipt by Escrow Agent and after Escrow Agent has had a reasonable time
to act upon such notice.

 

5.           Suspension
of Performance; Disbursement into Court. If, at any time, (a) a dispute exists with respect to any obligation of Escrow Agent
hereunder, (b) Escrow Agent is unable to determine, to Escrow Agent’s sole satisfaction, Escrow Agent’s proper actions
with respect to its obligations hereunder, or (c) the Representatives have not, within 10 days of receipt of a notice of resignation,
appointed a successor Escrow Agent to act hereunder, then Escrow Agent may, in its sole discretion, take either or both of the
following actions:

 

(i)          suspend
the performance of any of its obligations (including without limitation any disbursement obligations) under this Agreement until
such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent shall
have been appointed.

 

(ii)         petition
(by means of an interpleader action or any other appropriate method) any court of competent jurisdiction, in any venue convenient
to Escrow Agent, for instructions with respect to such dispute or uncertainty and, to the extent required or permitted by law,
pay into such court, for holding and disposition in accordance with the instructions of such court, all Escrow Property, after
deduction and payment to Escrow Agent of all fees and expenses (including court costs and attorneys’ fees) payable to, incurred
by, or expected to be incurred by Escrow Agent in connection with the performance of its duties and the exercise of its rights
hereunder.

 

Escrow Agent shall have no liability to Depositor or GC Advisors
for suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise
due to any delay in any other action required or requested of Escrow Agent.

  

6.            RESERVED

 

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7.          Investment
of Funds. During the term of this Escrow Agreement, the Escrow Property shall be invested and reinvested by the Escrow Agent
in such investments (i) as shall from time to time be selected by the Depositor in writing and (ii) as the Escrow Agent is able
to hold. Depositor and GC Advisors recognize and agree that Escrow Agent will not provide supervision, recommendations or advice
relating to either the investment of Escrow Property or the purchase or disposition of any investment and the Escrow Agent shall
not have any liability for any loss in an investment made pursuant to the terms of this Agreement. Escrow Agent has no responsibility
whatsoever to determine the market or other value of any investment and makes no representation or warranty as to the accuracy
of any such valuations. To the extent applicable regulations grant rights to receive brokerage confirmations for certain security
transactions, Depositor and GC Advisors waive receipt of such confirmations.

 

All investments shall be made in the name of
Escrow Agent. To the extent necessary to make any disbursement of Escrow Property permitted or required hereunder Escrow Agent
may, without notice to Depositor and GC Advisors, sell or liquidate any of the foregoing investments at any time and shall not
be liable any loss, cost or penalty resulting from any sale or liquidation of any such investment. All investment earnings shall
become part of the Escrow Property and investment losses shall be charged against the Escrow Property. With respect to any Escrow
Property or investment instruction received by Escrow Agent after 11:00 a.m., U.S. Central Time, Escrow Agent shall not be required
to invest applicable funds until the next Business Day. Receipt of the Escrow Property and investment and reinvestment of the Escrow
Property shall be confirmed by Escrow Agent by an account statement. Failure to inform Escrow Agent in writing of any error or
omission in any such account statement within 90 days after receipt shall conclusively be deemed confirmation and approval by Depositor
and GC Advisors of such account statement.

 

8.          Tax
Reporting. Escrow Agent shall have no responsibility for the tax consequences of this Agreement and Depositor and GC Advisors
shall consult with independent counsel concerning any and all tax matters. Depositor and GC Advisors jointly and severally agree
to (a) assume all obligations imposed now or hereafter by any applicable tax law or regulation with respect to payments or performance
under this Agreement and (b) request and direct the Escrow Agent in writing with respect to withholding and other taxes, assessments
or other governmental charges, and advise the Escrow Agent in writing with respect to any certifications and governmental reporting
that may be required under any applicable laws or regulations. Except as otherwise agreed by Escrow Agent in writing, Escrow Agent
has no tax reporting or withholding obligation except with respect to Form 1099-B reporting on payments of gross proceeds under
Internal Revenue Code Section 6045 and Form 1099 and Form 1042-S reporting with respect to investment income earned on the Escrow
Property, if any. To the extent that U.S. federal imputed interest regulations apply, Depositor and GC Advisors shall so inform
the Escrow Agent, provide the Escrow Agent with all imputed interest calculations and direct the Escrow Agent to disburse imputed
interest amounts as Depositor and GC Advisors deem appropriate. The Escrow Agent shall rely solely on such provided calculations
and information and shall have no responsibility for the accuracy or completeness of any such calculations or information. Depositor
and GC Advisors shall provide Escrow Agent a properly completed IRS Form W-9 or Form W-8, as applicable, for each payee. If requested
tax documentation is not so provided, Escrow Agent is authorized to withhold taxes as required by the United States Internal Revenue
Code and related regulations. Depositor and GC Advisors have determined that any interest or income on Escrow Property shall be
reported on an accrual basis and deemed to be for the account of GC Advisors.

 

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9.          Resignation
or Removal of Escrow Agent. Escrow Agent may resign and be discharged from the performance of its duties hereunder at any time
by giving ten (10) days’ prior written notice to Depositor and GC Advisors specifying a date when such resignation shall
take effect and, after the date of such resignation notice, notwithstanding any other provision of this Agreement, Escrow Agent’s
sole obligation will be to hold the Escrow Property pending appointment of a successor Escrow Agent. Similarly, Escrow Agent may
be removed at any time by Depositor and GC Advisors giving at least thirty (30) days’ prior written notice to Escrow Agent
specifying the date when such removal shall take effect. If Depositor and GC Advisors fail to jointly appoint a successor Escrow
Agent prior to the effective date of such resignation or removal, Escrow Agent may petition a court of competent jurisdiction to
appoint a successor escrow agent, and all costs and expenses related to such petition shall be paid jointly and severally by Depositor
and GC Advisors. The retiring Escrow Agent shall transmit all records pertaining to the Escrow Property and shall pay all Escrow
Property to the successor Escrow Agent, after making copies of such records as the retiring Escrow Agent deems advisable and after
deduction and payment to the retiring Escrow Agent of all fees and expenses (including court costs and attorneys’ fees) payable
to, incurred by, or expected to be incurred by the retiring Escrow Agent in connection with the performance of its duties and the
exercise of its rights hereunder. After any retiring Escrow Agent’s resignation or removal, the provisions of this Agreement
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Escrow Agent under this Agreement.

 

10.        Duties
and Liability of Escrow Agent.

 

(a)         Escrow
Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied. Escrow Agent has
no fiduciary or discretionary duties of any kind. Escrow Agent’s permissive rights shall not be construed as duties. Escrow
Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Agreement, including
without limitation any other agreement between any or all of the parties hereto or any other persons even though reference thereto
may be made herein and whether or not a copy of such agreement has been provided to Escrow Agent.
Escrow Agent’s sole responsibility shall be for the safekeeping of the Escrow Property in accordance with Escrow Agent’s
customary practices and disbursement thereof in accordance with the terms of this Agreement. Escrow Agent shall not be responsible
for or have any duty to make any calculations under this Agreement, or to determine when any calculation required under the provisions
of this Agreement should be made, how it should be made or what it should be, or to confirm or verify any such calculation. Escrow
Agent shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein. This Agreement
shall terminate upon the distribution of all the Escrow Property pursuant to any applicable provision of this Agreement, and Escrow
Agent shall thereafter have no further obligation or liability whatsoever with respect to this Agreement or the Escrow Property.

 

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(b)          Escrow
Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction
determines, which determination is not subject to appeal, that Escrow Agent’s gross negligence, fraud or willful misconduct
was the sole cause of any loss to Depositor or GC Advisors. Escrow Agent may retain and act hereunder through agents, and
shall not be responsible for or have any liability with respect to the acts of any such agent retained by Escrow Agent in good
faith.

 

(c)          Escrow
Agent may rely upon any notice, instruction, request or other instrument, not only as to its due execution, validity and effectiveness,
but also as to the truth and accuracy of any information contained therein, which Escrow Agent believes to be genuine and to have
been signed or presented by the person or parties purporting to sign the same. In no event shall Escrow Agent be liable for (i)
acting in accordance with or conclusively relying upon any instruction, notice, demand, certificate or document believed by Escrow
Agent to have been created by or on behalf of Depositor or GC Advisors, (ii) incidental, indirect, special, consequential or punitive
damages or penalties of any kind (including, but not limited to lost profits), even if Escrow Agent has been advised of the likelihood
of such damages or penalty and regardless of the form of action or (iii) any amount greater than the value of the Escrow Property
as valued upon deposit with Escrow Agent.

 

(d)          Escrow
Agent shall not be responsible for delays or failures in performance resulting from acts of God, strikes, lockouts, riots, acts
of war or terror, epidemics, governmental regulations, fire, communication line failures, computer viruses, attacks or intrusions,
power failures, earthquakes or any other circumstance beyond its control. Escrow Agent shall not be obligated to take any legal
action in connection with the Escrow Property, this Agreement or the Underlying Agreement or to appear in, prosecute or defend
any such legal action or to take any other action that in Escrow Agent’s sole judgment may expose it to potential
expense or liability. Depositor and GC Advisors are aware that
under applicable state law, property which is presumed abandoned may under certain circumstances escheat to the applicable state.
Escrow Agent shall have no liability to Depositor or GC Advisors, their respective heirs, legal representatives, successors and
assigns, or any other party, should any or all of the Escrow Property escheat by operation of law.

 

(e)          Escrow
Agent may consult, at Depositor’s and GC Advisors’s cost, legal counsel selected by it in the event of any dispute
or question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating
to any dispute involving this Agreement, and shall incur no liability and shall be fully indemnified from any liability whatsoever
in acting in accordance with the advice of such counsel. Depositor and GC Advisors agree to perform or procure the performance
of all further acts and things, and execute and deliver such further documents, as may be required by law or as Escrow Agent may
reasonably request in connection with its duties hereunder. When any action is provided for herein to be done on or by a specified
date that falls on a day other than a Business Day, such action may be performed on the next ensuing Business Day.

 

(f)           If
any portion of the Escrow Property is at any time attached, garnished or levied upon, or otherwise subject to any writ,
order, decree or process of any court, or in case disbursement of Escrow
Property is stayed or enjoined by any court order, Escrow Agent is authorized, in its sole discretion, to respond as it
deems appropriate or to comply with all writs, orders, decrees or process so entered or issued, or which it is advised by legal
counsel of its own choosing is binding upon it, whether with or without jurisdiction;
and if Escrow Agent relies upon or complies with any such writ, order, decree or process,
it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even if such
order is reversed, modified, annulled, set aside or vacated. 

 

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(h)          Escrow
Agent and any stockholder, director, officer or employee of Escrow Agent may buy, sell and deal in any of the securities of any
other party hereto and contract and lend money to any other party hereto and otherwise act as fully and freely as though it were
not Escrow Agent under this Agreement. Nothing herein shall preclude Escrow Agent from acting in any other capacity for any other
party hereto or for any other person or entity.

 

(i)           In
the event instructions, including funds transfer instructions, address change or change in contact information are given to Escrow
Agent (other than in writing at the time of execution of this Agreement), whether in writing, by facsimile or otherwise, Escrow
Agent is authorized but shall not be required to seek confirmation of such instructions by telephone call-back to the person or
persons designated on Schedule C hereto, and Escrow Agent may rely upon the confirmation of anyone purporting to be the person
or persons so designated. The persons and telephone numbers for call-backs may be changed only in writing actually received and
acknowledged by Escrow Agent and shall be effective only after Escrow Agent has a reasonable opportunity to act on such changes.
If Escrow Agent is unable to contact any of the designated representatives identified in Schedule C, Escrow Agent is hereby authorized
but shall be under no duty to seek confirmation of such instructions by telephone call-back to any one or more of Depositor’s
or GC Advisors’s executive officers (“Executive Officers”), as the case may be, which shall include the
titles of Manager, Chief Executive Officer, President and Vice President, as Escrow Agent may select. Such Executive Officer shall
deliver to Escrow Agent a fully executed incumbency certificate, and Escrow Agent may rely upon the confirmation of anyone purporting
to be any such officer. Depositor and GC Advisors agree that Escrow Agent may at its option record any telephone calls made pursuant
to this Section. Escrow Agent in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided
by Depositor or GC Advisors to identify (a) the beneficiary, (b) the beneficiary’s bank, or (c) an intermediary bank, even
when its use may result in a person other than the beneficiary being paid, or the transfer of funds to a bank other than the beneficiary’s
bank or an intermediary bank so designated. Depositor and GC Advisors acknowledge that these optional security procedures are commercially
reasonable.

 

11.         Indemnification
of Escrow Agent. Depositor and GC Advisors, jointly and severally, shall indemnify and hold harmless Escrow Agent and each
director, officer, employee and affiliate of Escrow Agent (each, an “Indemnified Party”) upon demand against
any and all claims (whether asserted by Depositor, GC Advisors or any other person or entity and whether or not valid), actions,
proceedings, losses, damages, liabilities, penalties, costs and expenses of any kind or nature (including without limitation reasonable
attorneys’ fees, costs and expenses) (collectively, “Losses”) arising from this Agreement or Escrow Agent’s
actions hereunder, except to the extent such Losses are finally determined by a court of competent jurisdiction, which determination
is not subject to appeal, to have been directly caused solely by the gross negligence, fraud or willful misconduct of such Indemnified
Party. Depositor and GC Advisors further agree, jointly and severally, to indemnify each Indemnified Party for all costs, including
without limitation reasonable attorneys’ fees, incurred by such Indemnified Party in connection with the enforcement of Depositor’s
and GC Advisors’s obligations hereunder. Each Indemnified Party shall, in its sole discretion, have the right to select and
employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees of such counsel
shall be paid upon demand by Depositor and GC Advisors jointly and severally; provided, however, that the payment of such expenses
incurred by any such Indemnified Party in advance of the final disposition of a proceeding shall be made only upon delivery to
Depositor and GC Advisors of a written undertaking by such Indemnified Party to repay all amounts so advanced if it shall be finally
adjudicated that such Indemnified Party is not entitled to be indemnified under this Section 11 or otherwise. The obligations of
Depositor and GC Advisors under this Section shall survive any termination of this Agreement and the resignation or removal of
Escrow Agent.

 

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12.         Compensation
of Escrow Agent.

 

(a)          Fees
and Expenses. Depositor agrees, to compensate Escrow Agent upon demand for its services hereunder in accordance with Schedule
B attached hereto. The obligations of Depositor under this Section shall survive any termination of this Agreement and the resignation
or removal of Escrow Agent.

 

(b)          Disbursements
from Escrow Property to Pay Escrow Agent. Escrow Agent is authorized to, and may disburse to itself from the Escrow Property,
from time to time, the amount of any compensation and reimbursement of expenses due and payable hereunder (including any amount
to which Escrow Agent or any Indemnified Party is entitled to seek indemnification hereunder). Escrow Agent shall notify Depositor
and GC Advisors of any such disbursement from the Escrow Property to itself or any Indemnified Party and shall furnish Depositor
and GC Advisors copies of related invoices and other statements.

 

(c)          Security
and Offset. Depositor and GC Advisors hereby grant to Escrow Agent and the Indemnified Parties a first priority security interest
in, lien upon and right of offset against the Escrow Property with respect to any compensation or reimbursement due any of them
hereunder (including any claim for indemnification hereunder). If for any reason the Escrow Property are insufficient to cover
such compensation and reimbursement, Depositor and GC Advisors shall promptly pay such amounts upon receipt of an itemized invoice.

 

13.         Representations
and Warranties. Depositor and GC Advisors each respectively make the following representations and warranties to Escrow Agent:

 

(a)          it
has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and this Agreement
has been duly approved by all necessary action and constitutes its valid and binding agreement enforceable in accordance with its
terms;

 

(b)          each
of the applicable persons designated on Schedule C attached hereto has been duly appointed to act as its authorized representative
hereunder and individually has full power and authority on its behalf to execute and deliver any instruction or direction, to amend,
modify or waive any provision of this Agreement and to take any and all other actions as its authorized representative under this
Agreement and no change in designation of such authorized representatives shall be effective until written notice of such change
is delivered to each other party to this Agreement pursuant to Section 15 and Escrow Agent has had reasonable time to act upon
it.

 

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(c)          the
execution, delivery and performance of this Agreement by Escrow Agent does not and will not violate any applicable law or regulation
and no printed or other material in any language, including any prospectus, notice, report, and promotional material that mentions
“U.S. Bank” or any of its affiliates by name or the rights, powers, or duties of Escrow Agent under this Agreement
shall be issued by any other parties hereto, or on such party’s behalf, without the prior written consent of Escrow Agent.

 

(d)          it
will not claim any immunity from jurisdiction of any court, suit or legal process, whether from service of notice, injunction,
attachment, execution or enforcement of any judgment or otherwise.

 

14.         Identifying
Information. To help the government fight the funding of terrorism and money laundering activities, federal law requires all
financial institutions to obtain, verify and record information that identifies each person who opens an account. For a non-individual
person such as a business entity, a charity, a trust or other legal entity, Escrow Agent requires documentation to verify its formation
and existence as a legal entity. Escrow Agent may require financial statements, licenses or identification and authorization documents
from individuals claiming authority to represent the entity or other relevant documentation. Depositor and GC Advisors agree to
provide all information requested by Escrow Agent in connection with any legislation or regulation to which Escrow Agent is subject,
in a timely manner. Escrow Agent’s appointment and acceptance of its duties under this Agreement is contingent upon verification
of all regulatory requirements applicable to Depositor, GC Advisors and any of their permitted assigns, including successful completion
of a final background check. These conditions include, without limitation, requirements under the USA Patriot Act Customer Identification
Program, the Bank Secrecy Act, and the U.S. Department of the Treasury Office of Foreign Assets Control. If these conditions are
not met, Escrow Agent may at its option promptly terminate this Agreement in whole or in part, or refuse any otherwise permitted
assignment by Depositor or GC Advisors, without any liability or incurring any additional costs.

 

15.         Notices.
All notices, approvals, consents, requests and other communications hereunder shall be in writing (provided that any communication
sent to Escrow Agent hereunder must be in the form of a manually signed document or electronic copy thereof), in English, and shall
be delivered (a) by personal delivery, or (b) by national overnight courier service, or (c) by certified or registered mail, return
receipt requested, or (d) via facsimile transmission, with confirmed receipt or (e) via email by way of a PDF attachment thereto.
Notice shall be effective upon receipt except for notice via email, which shall be effective only when the recipient, by return
email or notice delivered by other method provided for in this Section, acknowledges having received that email (with an automatically
generated receipt or similar notice not constituting an acknowledgement of an email receipt for purposes of this Section). Such
notices shall be sent to the applicable party or parties at the address specified below:

 

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If to Depositor or Depositor Representative, at:

 

Golub Capital BDC 3, Inc.

666 Fifth Avenue, 18th Floor

New York, NY 10103

Attention: David B. Golub

Fax: (212) 750-3756

 

If to GC Advisors or GC Advisors Representative, at:

 

GC Advisors LLC

666 Fifth Avenue, 18th Floor

New York, NY 10103

Attention: David B. Golub

Fax: (212) 750-3756

 

If to Escrow Agent, at

 

U.S. Bank National Association, as Escrow Agent

ATTN: Thomas Maple

Global Corporate Trust Services

60 Livingston Avenue

EP-MN-WS3C

St. Paul, MN 55107

Telephone: 651-466-6304

Facsimile: 651-466-7429

E-mail: tom.maple1@usbank.com

 

and to:

 

U.S. Bank National Association

ATTN:Seunghan “Shane” Son

Trust Finance Management

60 Livingston Avenue

EP-MN-WS3T

St. Paul, MN 55107

Telephone: 651-466-6097

Facsimile: 651-312-2599

E-mail: seunghan.son@usbank.com

 

or to such
other address as each party may designate for itself by like notice and unless otherwise provided herein shall be deemed to have
been given on the date received. Depositor and GC Advisors agree to assume all risks arising out of the use of electronic
methods to submit instructions and directions to Escrow Agent, including without limitation the risk of Escrow Agent acting on
unauthorized instructions, and the risk of interception and misuse by third parties.

 

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16.         Amendment
and Assignment. None of the terms or conditions of this Agreement may be changed, waived, modified, discharged, terminated
or varied in any manner whatsoever unless in writing duly signed by each party to this Agreement. No course of conduct shall constitute
a waiver of any of the terms and conditions of this Agreement, unless such waiver is specified in writing, and then only to the
extent so specified. This Agreement may not be assigned by any party without the written consent of the other parties, provided
that If Escrow Agent consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business
(including the escrow contemplated by this Agreement) to another entity, the successor or transferee entity without any further
act shall be the successor Escrow Agent.

 

17.         Governing
Law, Jurisdiction and Venue. This Agreement shall be construed and interpreted in accordance with the internal laws of the
State of New York without giving effect to the conflict of laws principles thereof that would require the application of any other
laws. Each of the parties hereto irrevocably (a) consents to the exclusive jurisdiction and venue of the state and federal
courts in the State of New York in the Borough of Manhattan in connection
with any matter arising out of this Agreement, (b) waives any objection to such jurisdiction or venue (c) agrees not to commence
any legal proceedings related hereto except in such courts (d) consents to and agrees to accept service of process to vest personal
jurisdiction over it in any such courts made as set forth in Section 15 and (e) waives any right to trial by jury in any action
in connection with this Agreement. 

 

18.         Entire
Agreement, No Third Party Beneficiaries. This Agreement constitutes the entire agreement between the signatory parties hereto
relating to the holding, investment and disbursement of Escrow Property and sets forth in their entirety the obligations and duties
of Escrow Agent with respect to Escrow Property. This Agreement and any Joint Written Direction may be executed in two or more
counterparts, which when so executed shall constitute one and the same agreement or direction. To the extent any provision of this
Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. The Section
headings appearing in this instrument have been inserted for convenience only and shall be given no substantive meaning or significance
whatsoever in construing the terms and conditions of this Agreement. Nothing in this Agreement, express or implied, is intended
to or shall confer upon any person other than the signatory parties hereto and the Indemnified Parties any right, benefit or remedy
of any nature whatsoever under or by reason of this Agreement.

 

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IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed under seal as of the date first above written.

 

	 	GOLUB CAPITAL BDC 3, INC.
	 	 	 
	 	By:	 
	 	Name:	David B. Golub
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	GC ADVISORS LLC
	 	 	 
	 	By:	 
	 	Name:	David B. Golub
	 	Title:	President
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION
	 	as Escrow Agent
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature
page to Escrow Agreement]

 

     

     

    

  

SCHEDULE A

 

[RESERVED]

 

     

     

    

  

SCHEDULE B

 

Schedule of Fees for Services as Escrow Agent

 

 

 

     

     

    

  

SCHEDULE C

 

Each of the following person(s) is a Depositor Representative
authorized to execute documents and direct Escrow Agent as to all matters, including fund transfers, address changes and contact
information changes, on Depositor’s behalf (only one signature required):

 

	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.
	 	 	 	 	 
	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.
	 	 	 	 	 
	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.

 

(Note: if only one person is identified above, provide the following
information)

The following person not listed above is authorized for call-back
confirmations:

 

	 	 	 
	Name	 	Telephone Number

 

Each of the following person(s) is a GC Advisors
Representative authorized to execute documents and direct Escrow Agent as to all matters, including fund transfers, address
changes and contact information changes, on GC Advisors’s behalf (only one signature required):

 

	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.
	 	 	 	 	 
	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.
	 	 	 	 	 
	 	 	 	 	 
	Name	 	Specimen signature	 	Telephone No.

 

(Note: if only one person is identified above, provide the following
information)

The following person not listed above is authorized for call-back
confirmations

 

	 	 	 
	Name	 	Telephone Number

 

     

     

    

  

ATTACHMENT 1

 

FORM OF JOINT WRITTEN DIRECTION

 

[To be completed on closing]

 

U.S. Bank National Association, as Escrow Agent

ATTN: Global Corporate Trust Services

Address:    _______________

 

RE: ESCROW AGREEMENT made and entered into as of October 2, 2017
by and among Golub Capital BDC 3, Inc. (“Depositor”), GC Advisors LLC (“GC Advisors”) and U.S. Bank National
Association, in its capacity as escrow agent (the “Escrow Agent”).

 

[Depositor and GC Advisors hereby notify Escrow Agent of the successful
completion of a Liquidity Event (as defined in the Underlying Agreement).]

[Depositor and GC Advisors hereby notify Escrow Agent that Depositor
has not successfully completed a Liquidity Event (as defined in the Underlying Agreement) by October 2, 2023.]

 

Pursuant to Section 4 of the above-referenced Escrow Agreement,
Depositor and GC Advisors hereby instruct Escrow Agent to disburse the amount of [$_____] from the Escrow Account to [Depositor][GC
Advisors], as provided below:

 

	 	Depositor	 	GC Advisors	 
	 	 	 	 	 	 	 
	 	Bank Name: 	 	 	Bank Name: 	 	 
	 	Bank Address:	 	 	Bank Address: 	 	 
	 	ABA No.: 	 	 	ABA No. 	 	 
	 	Account Name: 		 	Account Name:  		 
	 	Account No.: 	 	 	Account No.: 	 	 

 

	Golub Capital BDC 3, Inc.	 
	By: 	 	 
	Name: 	 	 
	Date: 	 	 
	 	 	 
	GC Advisors LLC	 
	By: 	 	 
	Name: 	 	 
	Date:Exhibit 10.1

 

FENNEC PHARMACEUTICALS
INC.

AMENDED AND RESTATED STOCK OPTION PLAN

as
amended on September 29, 2017

 

PLAN DESCRIPTION

 

	1.	Purpose of the Plan

 

The
purpose of the Fennec Pharmaceuticals Inc. Amended and Restated Stock Option Plan is to develop the interest and incentive of
eligible employees, directors and other service providers of FENNEC PHARMACEUTICALS INC. (the "Company"), in the Company's
growth and development by providing incentives (thereby advancing the interests of the Company, enhancing the value of the Common
Shares for the benefit of all the shareholders and increasing the ability of the Company to attract and retain skilled and motivated
individuals in the service of the Company):

 

(a) 
to Employees of the Company, or its parent (if any) or any of its present or future subsidiaries (collectively, "Related
Corporations"), by providing them with opportunities to purchase Common Shares (as defined below) of the Company pursuant
to options granted hereunder that qualify as "incentive stock options" ("ISOs") under Section 422 of the Internal
Revenue Code of 1986, as amended, or any successor statute (the "Code"); and

 

(b) 
to Directors, Employees and Service Providers of the Company and Related Corporations by providing them with opportunities
to purchase Common Shares pursuant to options granted hereunder that do not qualify as ISOs (Nonstatutory Stock Options, or "NSOs").

 

Both ISOs and NSOs are referred
to hereafter individually as "Options". As used herein, the terms "parent" and "subsidiary" mean
"parent corporation" and "subsidiary corporation", respectively, as those terms are defined in Section 424
of the Code.

 

This Plan was adopted by the
Board on March 18, 2005 (the "Effective Date"), subject to approval of the Plan by the shareholders of the Company.

 

	2.	Definitions

 

In this Plan:

 

	(a)	"Board" means the board of directors of the Company;

 

	(b)	"Committee" means the appropriate compensation committee,
if any, appointed by the Board of Directors to administer the Plan;

 

	(c)	"Common Shares" means the Common Shares of the Company or,
in the event of an adjustment contemplated in Section 8 hereof, such other securities to which a Participant may be entitled upon
the exercise of an Option as a result of such adjustment;

 

	(d)	"Date of Grant" means the date a Participant is granted an Option to purchase
Option Shares;

 

	(e)	"Director" means a person occupying the position of director
on the Board of the Company or any Related Corporation;

 

	(f)	"Employee" means a full time employee of the Company or any Related Corporation;

 

     

     

    

 

	(g)	"Exchange" means the Toronto Stock Exchange or, if the
Common Shares are not then listed and posted for trading on the Toronto Stock Exchange, on such stock exchange or quotation system
on which such shares are listed, posted for trading or quoted as may be selected by the Committee.

 

	(h)	"Exercise Date" means the date the Company receives from the
Participant a completed Stock Option Purchase Form with payment for the Option Shares being purchased;

 

	(i)	"Fair Market Value" at any date in respect of the Common
Shares is the fair value of the Common Shares as determined by the Committee in its sole discretion. If, at the time an Option
is granted under the Plan, the Common Shares are publicly traded and listed on the Exchange or the NASDAQ Stock Market, "Fair
Market Value" shall be equal to the closing price of the Common Shares on the Exchange or the NASDAQ Stock Market on the trading
day immediately preceding the Date of Grant; provided that if the Common Shares are then traded on the NASDAQ Stock Market , "Fair
Market Value" shall, if the Common Shares are not then listed on the Exchange or the NASDAQ Stock Market or otherwise if so
determined by the Committee in its sole discretion, be equal to the closing sale price for such stock on such exchange or market
trading day immediately preceding the Date of Grant.

 

	(j)	"Option Price" means the price per share at which a Participant may purchase Option
Shares;

 

	(k)	"Option Shares" means the Common Shares of the Company which
a Participant is entitled to purchase under the Plan;

 

	(l)	"Participants" means Directors, Employees and Service Providers
to whom Options are granted pursuant to the Plan;

 

	(m)	"Plan" means the Fennec Pharmaceuticals Inc. Stock Option
Plan, as the same may be amended and restated from time to time;

 

	(n)	"Service Provider" means any individual other than an Employee
or Director, engaged to provide ongoing management, advisory or consulting services for the Company or a Related Corporation;

 

	(o)	"Stock Option Agreement" means (i) prior to March 18, 2005,
the stock option agreement to be entered into between the Company and a Participant in the form of Appendix "A" and (ii)
after such date, the stock option agreement to be entered into between the Company and a Participant in the form of Appendix "C";
and

 

	(p)	"Vesting Period" means the period(s) as stipulated herein
or in the Stock Option Agreement that the Participant may purchase the Option Shares.

 

	3.	Eligibility and Number of Option Shares Subject to Plan

 

Participation
in the Plan shall be limited to Participants who are designated from time to time by the Committee. ISOs may be granted to any
Employee resident in the United States. Those officers of the Company who are not employees may not be granted ISOs under the
Plan. NSOs may be granted to any Director, Employee or Service Provider. Participation shall be voluntary and the extent to which
any Participant shall be entitled to participate in the Plan shall be determined by the Committee. Until changed in accordance
with Section 16, the maximum number of shares issuable under this Plan shall be that number of Common Shares representing twenty-five
percent (25%) of the total number of all issued and outstanding Common Shares from time to time, subject to adjustment in accordance
with Section 8. Granting of any Option to any individual shall neither entitle that individual to, nor disqualify him or her from,
participation in any other grant of Options. If any Option granted under the Plan shall expire or terminate
for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part, or if
the Company shall reacquire any shares issued pursuant to Options, the unpurchased shares subject to such Options and any shares
so reacquired by the Company shall again be available for grants of Options under the Plan.

 

    	 	- 2 -	 

     

    

  

The
selection of a Director or an officer who is a Reporting Person (as the terms "director" and "officer" are
defined for purposes of Rule 16b-3) as a recipient of an Option, the timing of the Option grant, the exercise price, if any, of
the Option and the number of shares subject to the Option shall be determined either (i) by the Board, or (ii) by a committee
of the Board that is composed solely of two or more Non- Employee Directors having full authority to act in the matter. For the
purposes of the Plan, a director shall be deemed to be a "Non-Employee Director" only if such person is defined as such
under Rule 16b-3(b)(3), as interpreted from time to time.

 

No
fractional shares may be purchased or issued hereunder.

 

	4.	Price for Shares; ISO Limitations

 

The
Committee shall advise each Participant, as applicable, of the number of shares subject to such Participant's Option, the Option
Price at which Option Shares may be purchased and the Vesting Period applicable to the Option. The Option Price at which the Option
Shares may be purchased under the Plan shall be fixed by the Committee based upon the Fair Market Value of the Common Shares.
The Committee may impose, in its discretion, performance thresholds which will need to be met prior to vesting of any Options
granted.

 

The
price per share specified in the Stock Option Agreement relating to each ISO granted under the Plan shall not be less than the
Fair Market Value of the Common Shares on the date of such grant. In the case of an ISO to be granted to an employee owning stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation,
the price per share specified in the agreement relating to such ISO shall not be less than 110% of the fair market value per Common
Share on the date of the grant.

 

To
the extent that the aggregate Fair Market Value of the Common Shares (determined at the time an ISO is granted) for which ISOs
granted to any employee are exercisable for the first time by such employee during any calendar year (under all stock option plans
of the Company and any Related Corporation) exceeds US$100,000; or such higher value as permitted under Code Section 422 at the
time of determination, such Options will be treated as NSOs, provided that this Section shall have no force or effect to the extent
that its inclusion in the Plan is not necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422 of the Code.
The rule of this Section shall be applied by taking Options in the order in which they were granted.

 

	5.	Exercise

 

Options
granted under the Plan must be exercised within a period of up to eight (8) years as determined by the Committee from the Date
of Grant, failing which the Option shall expire; provided that, if the end of such period for any vested Option falls on, or within
nine (9) trading days immediately following, a date upon which the Participant is prohibited from exercising such Option due to
a black-out period or other trading restriction imposed by the Company, then the expiry date of such Option shall be automatically
be the tenth (10th) trading day following the date the relevant black-out period or other trading restriction imposed by the Company
is lifted, terminated or removed Notwithstanding, Options granted under the Plan shall expire five (5) years from the Date of
Grant in the case of ISOs granted to an employee owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or any Related Corporation. Unless otherwise determined by the Committee and specifically set
forth in the Stock Option Agreement, the Vesting Periods during which Options or a portion thereof vest and may be exercised by
the Participant shall be as follows:

 

one-third of the Option may be exercised after the
first anniversary of the date of grant;

one-third of the Option may be exercised after
the second anniversary of the date of grant;

and one-third of the Option may be exercised after the third anniversary of the date
of grant.

 

    	 	- 3 -	 

     

    

  

Notwithstanding
such vesting period or that certain vesting period set forth in the Stock Option Agreement, the Committee may, in its sole discretion,
by written notice to any Participant, accelerate the vesting of all or any of the Options such that the Options become immediately
fully vested. In such circumstances, the Committee may by written notice compel the Participant to exercise the Options within
30 days of the date of such written notice to exercise, failing which the Participant's right to purchase such Option Shares lapses.

 

The
Committee in its discretion may require that the exercise of an Option shall be conditional on the Participant making any representations
and warranty to the Company as may be required under applicable laws or regulations.

 

	6.	Payment

 

Except
as otherwise provided in this Plan or the instrument evidencing the Option, an Option (or any part or installment thereof) shall
be exercised by giving written notice to the Company at its principal office address to the attention of its Corporate Secretary.
Such notice shall identify the Option being exercised and specify the number of shares as to which such Option is being exercised,
accompanied by full payment of the exercise price therefor, if any, payable as follows (a) in Canadian or United States dollars
in cash, check or money order, or (b) at the discretion of the Committee, by delivery of a notice that the grantee has placed
a market sell order with a broker with respect to Common Shares then issuable upon exercise of the Option and that the broker
has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise
price, provided that payment of such proceeds is then made to the Company upon settlement of the sale or (c) at the discretion
of the Committee, by any combination of (a) and (b) such other consideration and method of payment for the issuance of shares
to the extent permitted by applicable law or the Plan. Notwithstanding, with regard to Options granted before March 18, 2005,
such notice shall be in the form attached hereto as Appendix "B." If the Committee exercises its discretion to permit
payment of the exercise price of an ISO by means of the methods set forth in clause (b) of the preceding sentence, such discretion
shall be exercised in writing at the time of the grant of the ISO in question and such exercise shall also be governed by any
terms set forth in the written agreement evidencing the grant of the Option.

 

	7.	Share Certificates

 

Upon
exercise of an Option and payment in full of the purchase price, the Company shall cause to be delivered to the Participant within
a reasonable period of time a duplicate certificate or certificates in the name of the Participant representing the number of
Common Shares the Participant has purchased.

 

	8.	Adjustment in Shares

 

In
the event of any subdivision, redivision or change of the Common Shares of the Company at any time prior to the expiration of
the Option into a greater number of shares, the Company shall deliver at the time of any exercise thereafter of the Option such
additional number of shares as would have resulted from such subdivision, redivision or change if such exercise of the Option
hereby granted had been prior to the date of such subdivision, redivision or change. In the event of any consolidation or change
of the Common Shares
of the Company at any time prior to the expiration of the Option into a lesser number of shares, the number of shares deliverable
by the Company on any exercise thereafter of the Option shall be reduced to such number of shares as would have resulted from
such consolidation or change if such exercise of the Option hereby granted had been prior to the date of such consolidation or
change. In all such cases, any Option Price shall also be adjusted accordingly. Except as expressly provided herein, no issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to the Option.

 

    	 	- 4 -	 

     

    

  

In
the event of a proposed Change in Control (as defined below) of the Company, the Company shall give written notice thereof to
each Participant holding Options under the Plan and such Participants shall be entitled to exercise all or a portion of the Option
granted to such Participants, whether or not such Option has previously vested, within the 30 days period following the giving
of such notice. To the extent the proposed Change in Control is not completed in a reasonable time, the Company may purchase at
the Option Price the Option Shares acquired by the Participant pursuant to Options which would not have vested but for the acceleration
of the Vesting Period as set forth in the preceding sentence. Upon the expiration of such 30 day period, all unexercised Options
shall terminate and cease to have any further force and effect. “Change of Control” shall mean the acquisition (at
one time or over a period of time) of shares of the Company or of securities (“Convertible Securities”) convertible
into, exchangeable for or representing the right to acquire shares of the Company as a result of which a person, group of persons
or persons acting jointly or in concert, or persons associated or affiliated within the meaning of the Canada Business Corporation
Act with any such person, group of persons or persons acting jointly or in concert (collectively, the “Acquirors”),
beneficially own shares of the Company and/or Convertible Securities that would entitle the holders thereof to cast more than
50% of the votes attaching to all shares in the capital of the Company that may cast to elect directors of the Company (assuming
the conversion, exchange or exercise of Convertible Securities beneficially owned by the Acquirors). For the avoidance of doubt,
a Change of Control shall not include a reverse takeover or other reorganization whereby the holders of shares and Convertible
Securities of the Company immediately prior to such transaction beneficially own, following the completion of the transaction,
shares of the parent or surviving corporation that would entitle the holders thereof to cast more than 50% of the votes attaching
to all shares in the capital of such parent or surviving corporation that may cast to elect directors of such parent or surviving
corporation. In the event of Change in Control of the Company, the Participant irrevocably agrees that any shares owned by him/her
at the time of such Change in Control shall be tendered for sale in accordance with the terms of such Change in Control.

 

In
the event of a transaction, including without limitation, a recapitalization or reorganization of the Company (other than a transaction
described in the preceding paragraph) pursuant to which securities of the Company or of another corporation are issued with respect
to the outstanding Common Shares, an optionee or grantee upon exercising an Options shall be entitled to receive for the purchase
price paid upon such exercise the securities he or she would have received if he or she had exercised the Option immediately prior
to such recapitalization or reorganization.

 

In
the event of the proposed dissolution or liquidation of the Company, each Option will terminate immediately prior to the consummation
of such proposed action or at such other time and subject to such other conditions as shall be determined by the Committee.

 

	9.	Termination Of Participant For Any Reason

 

In
the event that a Employee's employment is terminated for any reason, a Director shall cease to be a Director for any reason or
a Service Provider ceases to provide services to the Company or a Related Corporation (and such person is a Participant), the
Participant or the Participant's legal representative, as the case may be, may elect to exercise any Option held by him or her
(to the extent of the number of shares with
respect to which he or she could have exercised it on the date of termination) at any time during the 30 day period following
the date of such termination of employment or position on the Board or termination of services of a Service Provider (the "Participant
Termination Date"), or if specifically approved by the Board, at any time prior to the earlier of (x) the expiration date
thereof, or (y) the date that is three (3) years following the Participant Termination Date, provided, however, in the event the
grantee exercises any ISO after the date that is three months following the Participant Termination Date, such ISO will automatically
be converted into an NSO subject to the terms of the Plan. If the Participant fails to exercise such Option prior to the Participant
Termination Date (or such later date as specifically approved by the Board), such Option shall terminate. For the purposes of
this Plan, the transfer of the Employee's employment to the Company or to Related Corporation shall not be considered a termination
of employment and the Employee's rights under an Option shall be the same as if such transfer had not occurred. For purposes of
this Plan, a change in status from Employee to Service Provider, or from Service Provider to Employee, will not constitute a termination
of employment, provided that a change in status from an Employee to Service Provider may cause an ISO to become an NSO under the
Code.

 

    	 	- 5 -	 

     

    

  

	10.	Transfer and Assignment

 

The
Participant's rights under Options granted under the Plan are not assignable or transferable by the Participant or subject to
any other alienation, sale, pledge or encumbrance by such Participant during the Participant's lifetime and therefore the Options
are exercisable during the Participant's lifetime only by the Participant. The obligations of each Participant shall be binding
on his or her heirs, executors and administrators.

 

	11.	Employment and Board of Directors Position Non-Contractual

 

The
granting of an Option to a Participant under the Plan does not confer upon the Participant any right to continue in the employment
of the Company or any Related Corporation or as a member of the Board or as a Service Provider, as the case may be, nor does it
interfere in any way with the rights of the Employee or of the Company's rights to terminate the Employee's employment at any
time or of the shareholders' right to elect Directors.

 

	12.	Rights As Shareholders

 

Participants
shall not have any rights as a shareholder with respect to Options until exercise and full payment has been made to the Company
and a share certificate or share certificates have been duly issued.

 

	13.	Administration Of The Plan

 

The
Plan shall be administered by (i) the Board or (ii) the Committee. The appointment of the members of, and the delegation of powers
to, the Committee by the Board shall be consistent with applicable laws and regulations (including, without limitation, the Code,
Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any successor
rule thereto ("Rule 16b-3"), and any applicable state law (collectively, the "Applicable Laws")). Once appointed,
such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. From time to time, the
Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by the Applicable Laws. Any determination with regard to the Plan by
the Committee shall be final and conclusive on all persons affected thereby unless otherwise determined by the Board. The day-to-day
administration of the Plan may be delegated to such officers and Employees as the Committee shall determine.

 

    	 	- 6 -	 

     

    

  

Subject
to ratification of the grant or authorization of each Option by the Board (if so required by an Applicable Law), and subject to
the terms of the Plan, if applicable,, the Committee, if so appointed, shall have the authority, in its discretion, to:

 

(i) 
determine the employees of the Company and Related Corporations (from among the class of employees eligible under Section
3 to receive ISOs) to whom ISOs may be granted, and to determine (from among the classes of individuals and entities eligible under
Section 3 to receive NSOs) to whom NSOs may be granted;

 

(ii)  
determine the time or times at which Options may be granted (which may be based on performance criteria);

 

 (iii) determine the number of Common Shares subject to any Option granted by the Committee;

 

(iv) 
determine the Option Price, which price shall not be less than the minimum price specified in Section 4 hereof, as appropriate;

 

 (v) determine whether each Option granted shall be an ISO or NSO;

 

(vi) 
determine (subject to Section 5) the time or times when each Option shall become exercisable and the duration of the exercise
period;

 

(vii) 
determine whether restrictions such as repurchase options are to be imposed on shares subject to Options and the nature
of such restrictions, if any;

 

 (viii) approve forms of agreement for use under the Plan;

 

(ix) 
accelerate vesting on any Option or to waive any forfeiture restrictions, or to waive any other limitation or restriction
with respect to an Option;

 

(x) 
reduce the exercise price of any Option if the fair market value of the Common Shares covered by such Option shall have
declined since the date the Option was granted, subject to prior approval of the Exchange, if applicable;

 

(xi) 
institute a program whereby outstanding Options can be surrendered in exchange for Options with a lower exercise price,
subject to prior approval of the Exchange and/or shareholders of the Company, if applicable;

 

(xii) 
modify or amend each Option (subject to Section 5) including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for by terms of the Plan or the Option, subject to prior approval
of the Exchange and/or shareholders of the Company, if applicable;

 

(xiii) 
construe and interpret the Plan and Options granted hereunder and prescribe and rescind rules and regulations relating to
the Plan; and

 

 (xiv) make all other determinations necessary or advisable for the administration of the Plan.

 

    	 	- 7 -	 

     

    

 

If
the Committee determines to issue a NSO, it shall take whatever actions it deems necessary, under Section 422 of the Code and
the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO. The interpretation and construction
by the Committee of any provisions of the Plan or of any Option granted under it shall be final unless otherwise determined by
the Board. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best.
No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the
Plan or any Option granted under it.

 

The
Committee may select one of its members as its chairman, and shall hold meetings at such times and places as it may determine.
Acts by a majority of the Committee, approved in person at a meeting or in writing, shall be the valid acts of the Committee.
All references in this Plan to the Committee shall mean the Board if no Committee has been appointed. From time to time the Board
may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies however caused, or remove all members thereof and thereafter directly administer
the Plan.

 

Those
provisions of the Plan that make express reference to Rule 16b-3 shall apply to the Company only at such time as the Company's
Common Shares are registered under the Exchange Act, and then only to such persons as are required to file reports under Section
16(a) of the Exchange Act (a "Reporting Person").

 

To
the extent that Options are to be qualified as "performance-based" compensation within the meaning of Section 162(m)
of the Code, the Plan shall be administered by a committee consisting of two or more "outside directors" as determined
under Section 162(m) of the Code.

 

The
Committee, with the consent of any Participant, may in its discretion take such actions as may be necessary to convert a Participant's
ISOs (or any instalments or portions of instalments thereof) that have not been exercised on the date of conversion into NSOs
at any time prior to the expiration of such ISOs. These actions may include, but not be limited to, accelerating the exercisability,
extending the exercise period or reducing the exercise price of the appropriate instalments of optionee's Options. At the time
of such conversion, the Committee (with the consent of the optionee) may impose these conditions on the exercise of the resulting
NSOs as the Committee in its discretion may determine, provided that the conditions shall not be inconsistent with the Plan. Nothing
in the Plan shall be deemed to give any Participant the right to have such Participant's ISOs converted into NSOs, and no conversion
shall occur until and unless the Committee takes appropriate action.

 

	14.	Notices

 

All
written notices to be given by the Participant to the Company may be delivered personally or by registered mail, postage prepaid,
addressed as follows:

 

Fennec Pharmaceuticals Inc.

PO Box 13628, 68 TW Alexander Drive

Research
Triangle Park, North Carolina 27709

Attention: Corporate Secretary

 

Any
notice given by the Participant pursuant to the terms of the Option shall not be effective until actually received by the Company
at the above address. Any notice to be given to the Participant shall be sufficiently given if delivered personally or by postage
prepaid mail to the last address of the Participant on the records of the Company and shall be effective seven days after mailing.

 

    	 	- 8 -	 

     

    

 

	15.	Corporate Action

 

Nothing
contained in the Plan or in any agreement evidencing an Option shall be construed so as to prevent the Company or any Related
Corporation from taking corporate action which is deemed by the Company or the Related Corporation to be appropriate or in its
best interest, whether or not such action would have an adverse effect on the Plan.

 

	16.	Amendments

 

The
Board shall have the right, in its sole discretion, to amend, suspend or terminate this Plan or any portion thereof at any
time, in accordance with applicable legislation, without obtaining the approval of shareholders; provided that any amendment
to any provision of the Plan will be subject to any required regulatory approval and the provisions of applicable law, if
any, that require the approval of shareholders. Notwithstanding the foregoing, the Company will be required to obtain the
approval of the shareholders of the Company for any amendment related to (i) the maximum number of Common Shares issuable
under the Plan; (ii) a reduction in the Option Price for Options held by insiders; and (iii) an extension to the term of
Options held by insiders. Subject to compliance with the applicable rules of the Exchange and the NASDAQ Stock Market, no
amendment, suspension or termination will alter or impair any Options under the Plan, or any rights pursuant thereto, granted
previously to any Participant without the consent of that Participant.

 

	17.	Interpretation

 

In
construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless
the context otherwise requires.

 

	18.	Government Regulation

 

The
Company's obligation to issue and deliver Common Shares under any Option is subject to:

 

	(a)	the satisfaction of all requirements under applicable securities law in respect
thereof and obtaining all regulatory approvals as the Company shall determine to be necessary or advisable in connection with the
authorization, issuance or sale thereof, including shareholder approval, if required;

 

	(b)	the admission of such Common Shares to listing on the Exchange or any other
stock exchange on which Common Shares may then be listed; and

 

	(c)	the receipt from the Participant of such representations, agreements and
undertakings as to future dealings in such Common Shares as the Company determines to be necessary or advisable in order to safeguard
against the violation of the securities law of any jurisdiction.

 

In
this connection, the Company shall take all reasonable steps to obtain such approvals and registrations as may be necessary for
the issuance of such Common Shares in compliance with applicable securities law and for the listing of such Common Shares on any
Exchange on which such Common Shares are then listed.

 

	19.	Withholding of Additional Income Taxes

 

Upon
the exercise of an NSO for less than the Fair Market Value of the Common Shares or the making of a Disqualifying Disposition (as
defined in Section 20), the Company, in accordance with Section 3402(a) of the Code and any applicable state statute or regulation,
may require the Participant to pay to the Company additional withholding taxes in respect of the amount that is considered compensation
includable in such person's gross income. With respect to the exercise of an Option, the Committee in its discretion may condition
such event on the payment by the Participant of any such additional withholding taxes.

 

    	 	- 9 -	 

     

    

 

At
the sole and absolute discretion of the Committee, the holder of Options may pay all or any part of the total estimated federal
and state income tax liability arising out of the exercise or receipt of such Options or the making of a Disqualifying Disposition
(each of the foregoing, a "Tax Event") by tendering already- owned Common Shares (except in the case of a Disqualifying
Disposition) by directing the Company to withhold Common Shares otherwise to be transferred to the holder of such Options as a
result of the exercise or receipt thereof in an amount equal to the estimated federal and state income tax liability arising out
of such event, provided that no more shares may be withheld than are necessary to satisfy the holder's actual minimum withholding
obligation with respect to the exercise of Options. In such event, the holder of Options must, however, notify the Committee of
his or her desire to pay all or any part of the total estimated federal and state income tax liability arising out of a Tax Event
by tendering already-owned Common Shares or having Common Shares withheld prior to the date that the amount of federal or state
income tax to be withheld is to be determined. For purposes of this Section 19, Common Shares shall be valued at their Fair Market
Value on the date that the amount of the tax withholdings is to be determined.

 

	20.	Notice to Company of Disqualifying Disposition

 

Each
Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying
Disposition (as defined below) of any Common Shares acquired pursuant to the exercise of an ISO. A "Disqualifying Disposition"
is any disposition (including any sale) of such Common Shares before either (a) two years after the date the Employee was granted
the ISO, or (b) one year after the date the Employee acquired Common Shares by exercising the ISO. If the employee has died before
such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

 

	21.	Lock-up Agreement

 

Each
recipient of securities hereunder agrees, in connection with the first registration with the United States Securities and Exchange
Commission under the Securities Act of 1933, as amended, of the public sale of the Company's Common Shares, not to sell, make
any short sale of, loan, grant any option for the purchase of or otherwise dispose of any securities of the Company (other than
those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be,
for such period of time (not to exceed 180 days) from the effective date of such registration as the Company or the underwriters,
as the case may be, shall specify. Each such recipient agrees that the Company may instruct its transfer agent to place stop-transfer
notations in its records to enforce this Section 21. Each such recipient agrees to execute a form of agreement reflecting the
foregoing restrictions as requested by the underwriters managing such offering. 

 

    	 	- 10 -	 

     

    

 

Appendix
"A"

Fennec Pharmaceuticals Inc.

 

Stock Option Plan

 

Stock Option Agreement

 

	 	Date:    	 

 

	Dear	 	:	 

 

This
is to advise you that you have been granted an option (the "option") to purchase  Common Shares at a price
of $ per share under the Fennec Pharmaceuticals Inc. Stock Option Plan (the "Plan").

 

This
option expires on the later of [up to eight] years following the date of grant, which appears on the right hand corner of this
Notice, subject to other conditions of the Plan.

 

Subject
to such expiry and the other provisions of the Plan, this option is exercisable in such amounts and at any time on or after:

 

	 	 	 shares on	 	, 200   .

 

This
option is subject to the terms of the Plan.

 

Please
refer to the Plan explanatory document for any additional information regarding the exercise of your option and completion of
the Option Exercise Form. Please execute a copy of this grant where indicated below and deliver it to the Corporate Secretary
of the Company c/o Fennec Pharmaceuticals Inc., PO Box 13628, 68 TW Alexander Drive, Research Triangle Park, North Carolina 27709,
to acknowledge your acceptance of the terms hereof.

 

 

Sincerely,

FENNEC
PHARMACEUTICALS INC.

 

 

	Per:	 	 

 

 

I
have read, understood and accept the vesting provisions above and each of the terms and conditions described in a document called
Fennec Pharmaceuticals Inc. Stock Option Plan and accept the foregoing grant of options on such basis.

 

	Dated the	 	 day of	 	,	 	.

 

 

 

	 	 	 
	Signature	 	 

  

     

     

    

 

Appendix "B" 

Fennec Pharmaceuticals Inc.

 

Stock Option Plan

 

 

Option
Exercise Form

  

 

 

Part
1: Identification

  

	 	 	 
	Name of Participant	 	Service
	 	 	 
	 	 	 
	Address	 	Office Telephone Number
	 	 	 
	 	 	 
	Social Insurance Number	 	Home Telephone Number

 

 

 

Part 2: Option

  

I hereby exercise the Option granted
to me by letter dated                                      under the Plan.

 

Total number of option stock exercised:
                                    

 

	Method of payment:	(a)	Cash
	 	(b)	Certified Cheque
	 	(c)	Bank Draft
	 	(d) 	Money Order

 

 

	 	Amount:	 	 	 	 
	 	Number of shares:	 	  (value:	 	)

 

I
hereby acknowledge that I have read, understood and accepted each and all the terms and conditions described in a document called
"Fennec Pharmaceuticals Inc. Stock Option Plan".

 

Given at                             ,
this,                 day of                                                            

  

 

	 	 	 
	Signature	 	 

 

    	 	 	 

     

    

 

Appendix
"C"

Fennec Pharmaceuticals Inc.

Stock Option Plan

 

Fennec Pharmaceuticals
Inc.

AMENDED AND RESTATED
STOCK OPTION PLAN

NOTICE OF STOCK OPTION GRANT

 

 

	 	 	 
	(Optionee and address)	 	Grant Number
	 	 	 

 

You
have been granted an option to purchase Common Shares of Fennec Pharmaceuticals Inc. (the "Company"), 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:	7 Years/	 	 

  

	Vesting Schedule:	
        Subject to accelerated vesting as set forth in the Plan or in
the Stock Option Agreement, (i) one-third of the shares subject to this option shall vest and may be exercised after the first
anniversary of the Vesting Commencement Date; (ii) one-third of the shares subject to this option shall vest and may be exercised
after the second anniversary of the Vesting Commencement Date; and (iii) the remaining shares subject to this option shall vest
and may be exercised after the third anniversary of the Vesting Commencement Date.

  

	Termination Period:	
        Option may be exercised for up to 30 days after termination
        of director, employment or service provider relationship for any reason (unless specifically extended by the Board as set
        forth in the Plan, but in no event later than the Expiration Date) and will terminate if not exercised prior to the end of
        such period.

  

By
your signature and the signature of the Company's representative below, you and the Company agree that this option is granted
under and governed by the terms and conditions of the Fennec Pharmaceuticals Inc., Amended and Restated Stock Option Plan (the
"Plan") and the Stock Option Agreement, all of which are attached and made a part of this document.

  

	Dated:	 	 	 

  

	OPTIONEE:	 	FENNEC PHARMACEUTICALS INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	Print Name	 	 	 

 

    	 	 	 

     

    

 

STOCK
OPTION AGREEMENT

 

1.                  
Grant of Option. Fennec Pharmaceuticals Inc., a Canadian corporation (the "Company"), hereby grants to
the Optionee named in the Notice of Grant (the "Optionee"), an option (the "Option") to purchase a total number
of Common Shares (the "Shares") set forth in the Notice of Grant, at the exercise price per share set forth in the Notice
of Grant (the "Exercise Price") subject to the terms, definitions and provisions of the Fennec Pharmaceuticals Inc.,
Amended and Restated Stock Option Plan (the "Plan") adopted by the Company, which is incorporated herein by reference.
Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option.

 

If
designated an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as defined in Section 422
of the Code, or any successor provision.

 

2.                  
Exercise of Option. This Option shall be exercisable during its term in accordance with the Vesting Schedule set
out in the Notice of Grant and with the provisions of the Plan as follows:

 

(a)   
Right to Exercise.

 

(i)               This Option may not be exercised for a fraction of a share.

 

(ii)             
In the event of the termination of Optionee's relationship with the Company or any Related Corporations as an Employee,
Director or Service Provider (for any reason whatsoever), the exercisability of the Option is governed by Section 9 of the Plan,
subject to the limitation contained in subsection 2(a)(iii) of this Stock Option Agreement.

 

(iii)            
In no event may this Option be exercised after the Expiration Date set forth in the Notice of Grant.

 

(b)     
Method of Exercise. This Option shall be exercisable by written notice (in the form attached hereto as Exhibit
A) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised
and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. Such written
notice shall be signed by the Optionee and shall be delivered in person or by registered mail to the Corporate Secretary of the
Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised
upon receipt by the Company of such written notice accompanied by the Exercise Price.

 

No Shares
will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions
of law and the requirements of any Exchange upon which the Shares may then be listed. Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to
such Shares.

 

3.                  
Method of Payment. Payment of the Exercise Price shall be made as set forth in Section 6 of the Plan.

 

4.                  
Restrictions on Exercise. This Option may not be exercised until such time as the Plan and the Shares covered by
this Option have been approved by the shareholders 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 federal, provincial or state
securities or other applicable law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations
("Regulation G") as promulgated by the Federal Reserve Board. As a condition to the exercise of this Option, the Company
may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation.

 

     

     

    

 

5.                
Nontransferability of Option. This Option may not be transferred in any manner whatsoever and may be exercised during
the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

 

6.                
Term of Option. This Option may be exercised only within the term set out in the Notice of Grant and the Plan, and
may be exercised during such term only in accordance with the Plan and the terms of this Option. The limitations set out in Section
4 of the Plan regarding Options designated as Incentive Stock Options and Options granted to more than ten percent (10%) stockholders
shall apply to this Option.

 

7.                
Taxation Upon Exercise of Option. Optionee understands that, upon exercising a Nonstatutory Stock Option, he or she
may recognize income for tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares over the exercise
price. If the Optionee is an employee, the Company may be required to withhold from Optionee's compensation, or collect from Optionee
and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. Additionally, the Optionee
may at some point be required to satisfy tax withholding obligations with respect to the Disqualifying Disposition of an ISO. The
Optionee shall satisfy his or her tax withholding obligation arising upon the exercise of this Option by one or some combination
of the following methods: (i) by cash payment, or (ii) out of Optionee's current employment compensation.

 

8.                
Tax Consequences. THERE ARE TAX CONSEQUENCES RESULTING FROM THE EXERCISE OF THIS OPTION OR DISPOSITION OF THE SHARES
ACQUIRED PURSUANT TO THIS OPTION. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

9.                
Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees,
and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors and
assigns.

 

10.              
Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or by the
Company forthwith to the Committee, which shall review such dispute at its next regular meeting. The resolution of such a dispute
by the Committee shall be final and binding on the Company and on Optionee.

 

11.              
Severability. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable,
the other provisions shall nevertheless remain effective and shall remain enforceable.

 

12.              
Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given
upon personal delivery or upon deposit in the United States mail by registered mail, with postage and fees prepaid, addressed to
the other party at its address as shown below beneath its signature, such address as may be set forth in Section 14 of the Plan
or to such other address as such party may designate in writing from time to time to the other party.

 

13.              
Further Instruments. The parties agree to execute such further instruments and to take such further action as may
be reasonably necessary to carry out the purposes and intent of this Agreement.

 

14.              
Stock Plan. Optionee acknowledges receipt of a copy of the Plan and represents that Optionee is familiar with the
terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee 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. Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Committee upon any questions arising under the Plan or this Option.

 

     

     

    

 

EXHIBIT
A

EXERCISE NOTICE

 

 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	Attention: 	 	 	 

 

1.                  
Exercise of Option. Effective as of today, the undersigned ("Optionee") hereby elects to exercise Optionee's
option to purchase                         Common
Shares (the "Shares") of Fennec Pharmaceuticals Inc. (the "Company"), under and pursuant to the Company's
Amended and Restated Stock Option Plan, as amended (the "Plan") and the      Incentive      Nonstatutory Stock Option Agreement dated                                 ,
         (the "Option Agreement"). The purchase price for the
Shares shall be $ as required by the Option Agreement. Optionee herewith delivers to the Company the full Exercise Price for the
Shares.

 

2.                  
Representations of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the
Option Agreement and agrees to abide by and be bound by their terms and conditions.

 

3.                  
Compliance with Securities Laws. Optionee understands and acknowledges that, notwithstanding any other provision
of the Option Agreement to the contrary, the exercise of any rights to purchase any Shares is expressly conditioned upon compliance
with the Securities Act of 1933, as amended (the "Securities Act"), all appli- cable state, provincial or other federal
securities laws and all applicable requirements of any Exchange or over the counter market on which the Common Shares may be listed
or traded at the time of exercise and transfer. Optionee agrees to cooperate with the Company to ensure compliance with such laws.

 

4.                  
Rights as Stockholder. Until the stock certificate evidencing such Shares is 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 shall exist with respect to the optioned Shares, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate 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 stock certificate is issued, except as
provided in the Plan.

 

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

 

6.                  
Entire Agreement. The Plan and Notice of Grant/Option Agreement are incorporated herein by reference. This Exercise
Notice, the Plan and the Notice of Grant/Option Agreement executed and delivered to Company by Optionee shall constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and is governed by North Carolina law except for that body of law pertaining to conflict
of laws.

 

 

	Submitted by:	 	Accepted by:
	 	 	 	 
	OPTIONEE:	 	FENNEC PHARMACEUTICALS INC.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	Address:	 	 	Title:

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