Document:

EX-4.24

 Exhibit 4.24 
  

 
 February 25, 2014 

Dr. Augustine Cheung 
 Founder, CEO & President

 Medifocus, Inc. 
 The Exchange Tower, 

Suite 1800, 
 Toronto, ON M5X1E3 

 

	 	RE:	Private Placement of Securities 

 Dear Dr. Cheung: 

This letter confirms our agreement that Medifocus, Inc., a corporation incorporated under the Business Corporations Act (Ontario) (collectively with
its owned or controlled subsidiaries, the “Company”) has engaged Maxim Group LLC (together with its affiliates and subsidiaries, the “Placement Agent”) to act as the Company’s exclusive Placement Agent in
connection with the Company’s proposed private placement (the “Offering”) of equity or equity linked securities (the “Securities”) of the Company. The precise terms of the Securities and the gross proceeds of
such Offering will be negotiated between the Placement Agent and the Company with one or more Investors (as defined below), it being understood that the gross proceeds of the Offering will be up to $10 million. 

Upon acceptance (indicated by your signature below), this letter agreement (the “Agreement”) will confirm the terms of the
engagement between the Placement Agent and the Company on the terms and conditions set forth herein. 
 1. Appointment. 

(a) Subject to the terms and conditions of this Agreement, the Company hereby retains the Placement Agent, and the Placement Agent hereby
agrees to act, as the Company’s exclusive Placement Agent in connection with the Offering. As Placement Agent for the Offering, the Placement Agent will advise and assist the Company in identifying one or more investors that are
“accredited” within the meaning of the U.S. federal securities laws (“Investors”) to participate in the Offering. The Company acknowledges and agrees that the Placement Agent is only required to use its “commercially
reasonable efforts” in connection with its activities hereunder and that this Agreement does not constitute a legal or binding commitment by the Placement Agent to purchase the Securities or introduce the Company to Investors, nor does this
Agreement constitute a representation or warranty on the part of the Placement Agent that any Offering will be consummated. The Placement Agent will, in its sole discretion, determine the reasonableness of its efforts, and is under no obligation to
perform at any level other than what it deems reasonable. The Company retains the right to determine all of the terms and conditions of the Offering and to accept or reject any proposals submitted to it by the Placement Agent in its sole and
absolute discretion. 
 (b) In furtherance of the Company’s agreement that the Placement Agent’s retention hereunder shall be
exclusive, during the Term (as such term is hereinafter defined), neither the Company nor any of its officers, directors, employees, subsidiaries, affiliates, agents or representatives (“Representatives”) will, directly or
indirectly, solicit or otherwise encourage the submission of any 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 2
 
  

 
proposal or offer (“Investment Proposal”) from any person or entity relating to any issuance of the Company’s or any of its subsidiaries’ equity or equity-linked
securities (including warrants and debt securities with any equity feature) or participate in any discussions regarding an Investment Proposal. The term “Investment Proposal” shall not include (i) any investment in the equity
securities of any other entity, and (ii) any transaction or agreement with one or more persons, firms or entities designated as a “strategic partner” of the Company, as determined in good faith by the Board of Directors of the
Company, provided that each such person, firm or entity is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receives benefits in addition to the investment
of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to one or more persons or entities whose primary business is investing in securities. The Company will
immediately cease all contacts, discussions and negotiations with third parties regarding any Investment Proposal and, during the Term, will promptly inform that Placement Agent of any unsolicited Investment Proposals received by the Company or its
Representatives. 
 2. Information. 

(a) The Company recognizes that, in completing its engagement hereunder, the Placement Agent will be using and relying on both publicly
available information and on data, material and other information (including non-public information) furnished to Placement Agent by the Company or its Representatives. The Company will cooperate with the Placement Agent and furnish, and cause to be
furnished, to the Placement Agent, any and all information and data concerning the Company, its business, financial condition and plans for the Offering that the Placement Agent deems appropriate ( including, without limitation, the Company’s
strategic, business, growth, acquisition and/or merger plans and plans for raising capital or additional financing) that is reasonably requested by the Placement Agent (the “Information”), including a Private Placement Memorandum to
be used in connection with the Offering, if deemed appropriate by the Placement Agent (collectively, the “Private Placement Materials”). Any Information and Private Placement Materials forwarded to prospective Investors will be in
form acceptable to Placement Agent and its counsel. The Company represents and warrants that all Information and Private Placement Materials, including, but not limited to, the Company’s financial statements, will be complete and correct in all
material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading. 

(b) It is further agreed that the Placement Agent will conduct a due diligence investigation of the Company and the Company will cooperate
with such investigation as a condition of the Placement Agent’s participation in the Offering. The Company recognizes and confirms that the Placement Agent: (i) will use and rely primarily on the Information, the Private Placement
Materials and information available from generally recognized public sources in performing the services contemplated by this letter without having independently verified the same; (ii) is authorized as the Placement Agent to transmit to any
prospective investors a copy or copies of the Private Placement Materials, forms of subscription documents and any other legal documentation supplied to the Placement Agent for transmission to any prospective investors by or on behalf of the Company
or by any of the Company’s officers, representatives or agents, in connection with the performance of the Placement Agent’s services hereunder or any transaction contemplated hereby; (iii) does not assume responsibility for the
accuracy or completeness of the Information or the Private Placement Materials and such other information, if any provided to the Investors; (iv) will not make an appraisal of any assets of the Company or the Company generally; and
(v) retains the right to continue to perform due diligence of the Company, its business and its officers and directors intil the completion of the Offering. 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 3
 
  

 (c) Until the date that is one year from the date hereof, the Placement Agent will keep all
information obtained from the Company confidential except: (i) Information which is otherwise publicly available, or previously known to or obtained by, the Placement Agent independently of the Company and without breach of any of the Placement
Agent’s agreements with the Company; (ii) the Placement Agent may disclose such information to its officers, directors, employees, agents and representatives, and to its other advisors and financial sources on a need to know basis only and
will ensure that all such persons will keep such information strictly confidential. No such obligation of confidentiality shall apply to information that: (i) is in the public domain as of the date hereof or hereafter enters the public domain
without a breach by the Placement Agent, (ii) was known or became known by the Placement Agent prior to the Company’s disclosure thereof to the Placement Agent, (iii) becomes known to the Placement Agent from a source other than the
Company, and other than by the breach of an obligation of confidentiality owed to the Company, (iv) is disclosed by the Company to a third party without restrictions on its disclosure, (v) is independently developed by the Placement Agent
or (vi) is required to be disclosed by the Placement Agent or its officers, directors, employees, agents, attorneys and to its other advisors and financial sources, pursuant to any order of a court of competent jurisdiction or other
governmental body or as may otherwise be required by law. 
 (d) The Company recognizes that in order for the Placement Agent to perform
properly its obligations in a professional manner, the Company will keep the Placement Agent informed of and, to the extent practicable, permit the Placement Agent to participate in meetings and discussions between the Company and any third party
relating to the matters covered by the terms of the Placement Agent’ engagement. If at any time during the course of the Placement Agent’s engagement, the Company becomes aware of any material change in any of the information previously
furnished to the Placement Agent, it will promptly advise the Placement Agent of the change. 
 (e) The Offering shall be conditioned upon,
among other things, the following: 
 (i) Satisfactory completion by the Placement Agent of its due diligence investigation and analysis of:
(a) the Company’s arrangements with its officers, directors, employees, affiliates, customers and suppliers, (b) the audited historical financial statements of the Company, and (c) the Company’s projected financial results
for the fiscal years ending December 31, 2014 through 2016; and 
 (ii) The retention of Sievert & Sawrantschuk LLP by the
Company, as mutually acceptable to the Company and the Placement Agent, with Sievert & Sawrantschuk LLP having the responsibility for the preparation of the financial statements and the financial exhibits, if any, to be included in the
Private Placement Materials; and 
 (iii) Upon the execution of the engagement letter, the Company at its own expense will conduct
background checks, by a background search firm acceptable to the Placement Agent, for the Company’s senior management. 
 3.
Compensation. As compensation for services rendered and to be rendered hereunder by Placement Agent, the Company agrees to provide the Placement Agent with the following: 

(a) The Company agrees to pay the Placement Agent a cash fee payable upon each closing of the Offering (each, a “Closing”)
equal to nine percent (9.0%) of the gross proceeds received by the Company at each Closing (the “Placement Fee”). 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 4
 
  

 (b) Upon the execution of this Agreement, the Company shall provide the Placement Agent with
fifteen thousand dollars ($15,000) (by check or wire transfer of immediately available funds) as an advance (the “Advance”) to be applied towards the Placement Fee. In the event this Agreement is not completed within the term set
forth in Section 4, the Placement Agent will be entitled to reimbursement of its reasonable, out-of-pocket accountable expenses (including reasonable legal fees and expenses) incurred by the Placement Agent in connection with the Offering. The
Placement Agent shall be obligated to refund any portion of the Advance that has not utilized for the payment of such expenses. 
 (c) The
Company shall, at the Closing, grant to the Placement Agent (or its designated affiliates) securities purchase warrants (the “Warrants”) covering a number of the securities (“Securities”) equal to nine percent
(9.0%) of the total number of Securities being sold and/or issued in the Offering. The Warrants will be non-exercisable for six (6) months after the date of the Closing and will be exercisable and expire two (2) years after the
Closing. The Warrants will be exercisable at a price per share equal to 115% of the price of the Securities paid by the Investors in connection with the Offering. The Warrants shall not be redeemable. The Company will grant piggyback registration
rights to the Placement Agent with respect to the Securities underlying the Warrants. The Warrants may not be transferred, assigned or hypothecated for a period of six (6) months following the Closing, except that they be assigned, in whole or
in part, to any successor, officer, manager or member of the Placement Agent (or to officers, managers or member of any such successor of member). The Warrants may be exercised in whole or in part, and shall provide for customary anti-dilution and
price protection. As soon as a class of the Company’s Securities are listed on a National Securities Exchange of the United States, the Warrants shall be amended to provide for “cashless exercise”. Further changes to the terms of the
Warrants, and any required amendments to the Warrants, themselves, as required by an exchange in connection with the listing of the Securities on such exchange, may be made as agreed upon in writing by both the Company and the Placement Agent. The
parties agree that this paragraph 3(c) will need to be amended in accordance with the policies of the TSX Venture Exchange for the Securities to be issued pursuant to the Offering (including the common shares of the Company underlying the Warrants)
to be listed for trading on the TSX Venture Exchange. 
 (d) In addition to any fees payable to the Placement Agent hereunder, subject to
the provisions of Section 3(b), the Company shall promptly upon request from time to time and at each Closing reimburse the Placement Agent for any expenses (including, without limitation, fees and disbursements of the Placement Agent’s
counsel and all travel and other out-of-pocket expenses) in excess of five thousand dollars ($5,000), individually or in the aggregate, incurred by the Placement Agent in connection with its engagement hereunder. 

(e) The Company shall assist and cooperate with legal counsel to the Placement Agent in effecting a filing with respect to the public offering
contemplated by the Registration Statement to be filed in connection with the Offering (an “Issuer Filing”) with the Financial Industry Regulatory Authority (“FINRA”) Corporate Financing Department pursuant to FINRA
Rule 5110, and the Company shall pay the filing fee required by such Issuer Filing and the fees and expenses of counsel to the Placement Agent in connection with the Issuer Filing and clearing such filing with FINRA. The Company shall assist legal
counsel to the Placement Agent in pursuing the Issuer Filing until FINRA issues a letter confirming that it does not object to the terms of the Offering contemplated by the Registration Statement. 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 5
 
  

 4. Term of Engagement. 

(a) This Agreement will remain in effect until October 31, 2014, after which either party shall have the right to terminate it on thirty
(30) days prior written notice to the other. The date of termination of this Agreement is referred to herein from time to time as the “Termination Date.” The period of time during which this Agreement remains in effect is
referred to herein from time to time as the “Term”. In the event, however in the course of the Placement Agent’s performance of due diligence it deems it necessary to terminate the engagement, the Placement Agent may do so
prior to the termination date and upon immediate written notice. If, within twelve months after the Termination Date, the Company completes any private financing of equity, equity-linked or debt or other capital raising activity of the Company
(other than the exercise by any person or entity of any options, warrants or other convertible securities other than the warrants issued pursuant to this Agreement) with any of the Investors who were first introduced to the Company in connection
with the financing contemplated hereby by the Placement Agent, the Company will pay to the Placement Agent upon the Closing of such financing the compensation set forth in Sections 3(a) and 3(c). 

(b) Notwithstanding anything herein to the contrary, subject to the twelve months limitation described in Section 4(a) above, the
obligation to pay the compensation and expenses described in Section 3, this Section 4, Sections 6 and 8-16 and all of Exhibit A attached, hereto (the terms of which are incorporated by reference hereto), will survive any termination or
expiration of this Agreement. The termination of this Agreement shall not affect the Company’s obligation to pay fees to the extent provided for in Section 3 herein and shall not affect the Company’s obligation to reimburse the
expenses accruing prior to such termination to the extent provided for herein. All such fees and reimbursements due shall be paid to the Placement Agent on or before the Termination Date (in the event such fees and reimbursements are earned or owed
as of the Termination Date) or upon the Closing of the Offering or any applicable portion thereof (in the event such fees are due pursuant to the terms of Section 3 hereof). 

5. Certain Placement Procedures. The Company and the Placement Agent each represents to the other that it has not taken, and the Company and the
Placement Agent each agrees with the other that it will not take any action, directly or indirectly, so as to cause the Offering to fail to be entitled to rely upon the exemption from registration afforded by Section 4(2) of the Securities Act
of 1933, as amended (the “Act”). In effecting the Offering, the Company and the Placement Agent each agrees to comply in all material respects with applicable provisions of the Act and any regulations thereunder and any applicable
laws, rules, regulations and requirements (including, without limitation, all U.S. state law and all national, provincial, city or other legal requirements. The Company agrees that any representations and warranties made by it to any Investor in the
Offering shall be deemed also to be made to the Placement Agent for its benefit. The Company agrees that it shall cause any opinion of its counsel delivered to any Investors in the Offering also to be addressed and delivered to the Placement Agent,
or to cause such counsel to deliver to the Placement Agent a letter authorizing it to rely upon such opinion. 
 6. Indemnification. The
Company agrees to indemnify Placement Agent in accordance with the indemnification and other provisions attached to the Agreement as Exhibit A (the “Indemnification Provisions”), which provisions are incorporated herein by reference
and shall survive the termination or expiration of the Agreement. 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 6
 
  

 7. Other Activities. The Company acknowledges that the Placement Agent has been, and may in the
future be, engaged to provide services as an underwriter, placement agent, finder, advisor and investment banker to other companies in the industry in which the Company is involved. Subject to the confidentiality provisions of the Placement Agent
contained in Section 2 hereof, the Company acknowledges and agrees that nothing contained in this Agreement shall limit or restrict the right of the Placement Agent or of any member, manager, officer, employee, agent or representative of the
Placement Agent, to be a member, manager, partner, officer, director, employee, agent or representative of, investor in, or to engage in, any other business, whether or not of a similar nature to the Company’s business, nor to limit or restrict
the right of the Placement Agent to render services of any kind to any other corporation, firm, individual or association; provided that the Placement Agent and any of its member, manager, officer, employee, agent or representative shall not use the
Information to the detriment of the Company. the Placement Agent may, but shall not be required to, present opportunities to the Company. 
 8. Future
Rights. Upon the successful completion of any Closing, for a period of eighteen (18) months from the final Closing, the Company grants the Placement Agent the right of participation to act as lead managing underwriter and book runner or
minimally as a co-lead manager and book runner with at least 50% of the economics; or, in the case of a three-handed deal 33% of the economics, for any and all future public and private equity and debt offerings during such eighteen (18) month
period of the Company, or any successor to or any subsidiary of the Company. 
 9. Governing Law; Jurisdiction; Waiver of Jury Trial. This
Agreement will be governed as to validity, interpretation, construction, effect and in all other respects by the internal law of the State of New York. The Company and the Placement Agent each (i) agree that any legal suit, action or proceeding
arising out of or relating to this Agreement shall be instituted exclusively in the New York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waives any objection to the
venue of any such suit, action or proceeding, and the right to assert that such forum is an inconvenient forum, and (iii) irrevocably consents to the jurisdiction of the New York State Supreme Court, County of New York, and the United States
District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Company and the Placement Agent further agrees to accept and acknowledge service of any and all process that may be served in any such suit,
action or proceeding in the New York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York and agree that service of process upon it mailed by certified mail to its address shall be
deemed in every respect effective service of process in any such suit, action or proceeding. The parties hereby expressly waive all rights to trial by jury in any suit, action or proceeding arising under this Agreement. 

10. Securities and Other Law Compliance. The Company, at its own expense, will use its best efforts to obtain any registration, qualification or
approval required to sell any Securities under the laws (including U.S. state “blue sky” laws) of any applicable jurisdictions or any instrumentality thereof). 

11. Representations and Warranties. The Company and the Placement Agent each respectively represent and warrant that: (a) it has full
right, power and authority to enter into this Agreement and to perform all of its obligations hereunder; (b) this Agreement has been duly authorized and executed and constitutes a legal, valid and binding agreement of such party enforceable in
accordance with its terms; and (c) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby does not conflict with or result in a breach of (i) such party’s certificate of incorporation
or by-laws or (ii) any agreement to which such party is a party or by which any of its property or assets is bound. 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 7
 
  

 12. Parties; Assignment; Independent Contractor; No Tax Advice. This Agreement has been
and is made solely for the benefit of the Placement Agent and the Company and each of the persons, agents, employees, officers, directors and controlling persons referred to in Exhibit A and their respective heirs, executors, personal
representatives, successors and assigns, and nothing contained in this Agreement will confer any rights upon, nor will this Agreement be construed to create any rights in, any person who is not party to such Agreement, other than as set forth in
this section. The rights and obligations of either party under this Agreement may not be assigned without the prior written consent of the other party hereto and any other purported assignment will be null and void. The Placement Agent has been
retained under this Agreement as an independent contractor, and it is understood and agreed that this Agreement does not create a fiduciary relationship between the Placement Agent and the Company or their respective Boards of Directors. The
Placement Agent shall not be considered to be the agent of the Company for any purpose whatsoever and the Placement Agent is not granted any right or authority to assume or create any obligation or liability, express or implied, on the
Company’s behalf, or to bind the Company in any manner whatsoever. The Company acknowledges that the Placement Agent does not provide accounting, tax or legal advice. The Company is authorized, however, subject to applicable law, to disclose
any and all aspects of the Offering that are necessary to support any U.S. federal income tax benefits expected to be claimed with respect to such transaction, and all materials of any kind (including tax opinions and other tax analyses) related to
those benefits. 
 13. Validity. In case any term of this Agreement will be held invalid, illegal or unenforceable, in whole or in part, the
validity of any of the other terms of this Agreement will not in any way be affected thereby. 
 14. Counterparts. This Agreement may be
executed in counterparts and each of such counterparts will for all purposes be deemed to be an original, and such counterparts will together constitute one and the same instrument. 

15. Notices. All notices will be in writing and will be effective when delivered in person or sent via facsimile and confirmed by letter,
to the party to whom it is addressed at the following addresses or such other address as such party may advise the other in writing: 
  

			
	To the Company:	  	 Medifocus, Inc
 The Exchange Tower,

Suite 1800,
 Toronto, ON M5X1E3

Attention: Dr. Augustine Cheung
 Telephone:
(905) 319-7070
 Fax No.: (905) 517-6060

		
	To the Placement Agent	  	 Maxim Group LLC
 405 Lexington Avenue

New York, NY 10174
 Attention: Clifford A. Teller and James
Siegel, Esq.
 Telephone: (212) 895-3500
 Facsimile:
(212) 895-3783 and (212) 895-3860

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 8
 
  

 16. Press Announcements. The Company agrees that the Placement Agent shall, from and after any
Closing, have the right to reference the Offering and the Placement Agent’s role in connection therewith in the Placement Agent’s marketing materials and on its website and to place advertisements in financial and other newspapers and
journals, in each case at its own expense. 
 (Signature Page Follows) 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 9
 
  

 We are delighted at the prospect of working with you and look forward to proceeding with the
Offering. If you are in agreement with the foregoing, please execute and return two copies of this engagement letter to the undersigned together with payment for in the amount of $15,000 for the Advance. This Agreement may be executed in
counterparts, electronic mail and by facsimile transmission. 
  

			
	Very truly yours,
	
	Maxim Group LLC
	
	/S/ Karl Brenza
	Name:	 	Karl Brenza
	Title:	 	Senior Managing Director, Investment Banking
	
	/S/ Clifford A. Teller
	Name:	 	Clifford A. Teller
	Title:	 	Executive Managing Director of Investment Banking

 Agreed to and accepted this 8th day of March, 2014 

 

			
	/S/ Augustine Cheung
	Name:	 	Dr. Augustine Cheung
	Title:	 	Founder, CEO & President

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 10
 
  

 Exhibit A 

INDEMNIFICATION PROVISIONS 

Capitalized terms used in this Exhibit shall have the meanings ascribed to such terms in the Agreement to which this Exhibit is attached. 

In addition to and without limiting any other right or remedy available to the Placement Agent and the Indemnified Parties (as hereinafter
defined), the Company agrees to indemnify and hold harmless Placement Agent and each of the other Indemnified Parties from and against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and
disbursements, and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise
(including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing, pursing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation in which
any Indemnified Party is a party)) (collectively, “Losses”), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with, Placement Agent’s acting for the Company, including, without limitation,
any act or omission by Placement Agent in connection with its acceptance of or the performance or non-performance of its obligations under the Agreement between the Company and Placement Agent to which these indemnification provisions are attached
and form a part, any breach by the Company of any representation, warranty, covenant or agreement contained in the Agreement (or in any instrument, document or agreement relating thereto, including any agency agreement), or the enforcement by
Placement Agent of its rights under the Agreement or these indemnification provisions, except to the extent that any such Losses are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder. 
 The
Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of Placement Agent by the Company or for any other reason,
except to the extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful
misconduct. 
 These Indemnification Provisions shall extend to the following persons (collectively, the “Indemnified
Parties”): Placement Agent, its present and former affiliated entities, managers, members, officers, employees, legal counsel, agents and controlling persons (within the meaning of the federal securities laws), and the officers, directors,
partners, stockholders, members, managers, employees, legal counsel, agents and controlling persons of any of them. These indemnification provisions shall be in addition to any liability, which the Company may otherwise have to any Indemnified
Party. 
 If any action, suit, proceeding or investigation is commenced, as to which an Indemnified Party proposes to demand
indemnification, it shall notify the Company with reasonable promptness; provided, however, that any failure by an Indemnified Party to notify the Company shall not relieve the Company from its obligations hereunder. An Indemnified
Party shall have the right to retain counsel of its own choice to represent it, and the fees, expenses and disbursements of such counsel shall be borne by the Company. Any such counsel shall, to the extent consistent with its professional
responsibilities, 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJ 

 Medifocus, Inc. 

February 2014 
  Page
 11
 
  

 
cooperate with the Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against any Indemnified Party made with the Company’s
written consent. The Company shall not, without the prior written consent of Placement Agent, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or
consent (i) includes, as an unconditional term thereof, the giving by the claimant to all of the Indemnified Parties of an unconditional release from all liability in respect of such claim, and (ii) does not contain any factual or legal
admission by or with respect to an Indemnified Party or an adverse statement with respect to the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction of any Indemnified Party. 

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made
but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions hereof provide for indemnification in such case,
then the Company shall contribute to the Losses to which any Indemnified Party may be subject (i) in accordance with the relative benefits received by the Company and its stockholders, subsidiaries and affiliates, on the one hand, and the
Indemnified Party, on the other hand, and (ii) if (and only if) the allocation provided in clause (i) of this sentence is not permitted by applicable law, in such proportion as to reflect not only the relative benefits, but also the
relative fault of the Company, on the one hand, and the Indemnified Party, on the other hand, in connection with the statements, acts or omissions which resulted in such Losses as well as any relevant equitable considerations. No person found liable
for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for fraudulent misrepresentation. The relative benefits received (or anticipated to be received) by the Company and it stockholders,
subsidiaries and affiliates shall be deemed to be equal to the aggregate consideration payable or receivable by such parties in connection with the transaction or transactions to which the Agreement relates relative to the amount of fees actually
received by Placement Agent in connection with such transaction or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties exceed the amount of fees previously received by Placement Agent
pursuant to the Agreement. 
 Neither termination nor completion of the Agreement shall affect these Indemnification Provisions which shall
remain operative and in full force and effect. The Indemnification Provisions shall be binding upon the Company and its successors and assigns and shall inure to the benefit of the Indemnified Parties and their respective successors, assigns, heirs
and personal representatives. 

  
 Members FINRA & SIPC

 405 Lexington Ave. * New York, NY 10174 * tel: (212) 895-3500 * (800) 724-0761 * fax: (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Red Bank, NJEX-4.25

 Exhibit 4.25 

MEDIFOCUS INC. 

STOCK OPTION PLAN 
  

	1.	STATEMENT OF PURPOSE 

 1.1 Principal Purposes – The principal purposes of the Plan are
to provide the Corporation with the advantages of the incentive inherent in share ownership on the part of employees, officers, directors and consultants responsible for the continued success of the Corporation; to create in such individuals a
proprietary interest in, and a greater concern for, the welfare and success of the Corporation; to encourage such individuals to remain with the Corporation; and to attract new employees, officers, directors and consultants to the Corporation.

 1.2 Benefit to Shareholders – The Plan is expected to benefit shareholders by enabling the Corporation to attract and retain
skilled and motivated personnel by offering such personnel an opportunity to share in any increase in value of the Shares resulting from their efforts. 
  

	2.	INTERPRETATION 

 2.1 Defined Terms - For the purposes of this Plan, the following terms shall have
the following meanings: 
  

	 	(a)	“Act” means the Securities Act (Ontario), as amended from time to time; 

  

	 	(b)	“Associate” when used to indicate a relationship with a person or company, means: 

  

	 	(i)	an issuer of which the person or company beneficially owns or controls, directly or indirectly, voting securities entitling the person or company to more than 10% of the voting rights attached to outstanding voting
securities of the issuer, 

  

	 	(ii)	any partner of the person or company, 

  

	 	(iii)	any trust or estate in which the person or company has a substantial beneficial interest or in respect of which the person or company serves a trustee or in a similar capacity, 

 

	 	(iv)	in the case of a person, a relative of that person, including: 

  

	 	(A)	a spouse of that person, or 

  

	 	(B)	a relative of that person’s spouse 

 if the relative has the same home as that person;

  

	 	(c)	“Board” means the Board of Directors of the Corporation; 

  

	 	(d)	“Change in Control” means: 

  

	 	(i)	a takeover bid (as defined in the Act), which is successful in acquiring Shares, 

  

	 	(ii)	the change of control of the Board resulting from the election by the members of the Corporation of less than a majority of the persons nominated for election by management of the Corporation, 

 

	 	(iii)	the sale of all or substantially all the assets of the Corporation, 

	 	(iv)	the sale, exchange or other disposition of a majority of the outstanding Shares in a single transaction or series of related transactions, 

 

	 	(v)	the dissolution of the Corporation’s business or the liquidation of its assets, 

  

	 	(vi)	a merger, amalgamation or arrangement of the Corporation in a transaction or series of transactions in which the Corporation’s shareholders receive less than 51% of the outstanding shares of the new or continuing
corporation, or 

  

	 	(vii)	the acquisition, directly or indirectly, through one transaction or a series of transactions, by any Person, of an aggregate of more than 50% of the outstanding Shares; 

 

	 	(e)	“Committee” means a committee of the Board appointed in accordance with this Plan, or if no such committee is appointed, the Board itself; 

 

	 	(f)	“Consultant” means an individual, other than an Employee, senior officer or director of the Corporation or a Subsidiary Corporation, or a Consultant Corporation, who: 

 

	 	(i)	provides ongoing consulting, technical, management or other services to the Corporation or a Subsidiary Corporation, other than services provided in relation to a distribution of the Corporation’s securities,

  

	 	(ii)	provides the services under a written contract between the Corporation or a Subsidiary Corporation and the individual or Consultant Corporation, 

 

	 	(iii)	in the reasonable opinion of the Corporation spends or will spend a significant amount of time and attention on the affairs and business of the Corporation or a Subsidiary Corporation, and 

 

	 	(iv)	has a relationship with the Corporation or a Subsidiary Corporation that enables the individual or Consultant Company w be knowledgeable about the business and affairs of the Corporation; 

 

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

 

	 	(h)	“Corporation” means Medifocus Inc., a corporation continued under the laws of Ontario; 

  

	 	(i)	“Date of Grant” means the date specified in the Option Agreement as the date on which the Option is effectively granted; 

  

	 	(j)	“Disability” means any disability with respect to an Optionee which the Board, in its sole and unfettered discretion, considers likely to prevent permanently the Optionee from: 

 

	 	(i)	being employed or engaged by the Corporation, a Subsidiary Corporation or another employer, in a position the same as or similar to that in which he was last employed or engaged by the Corporation or a Subsidiary
Corporation; or 

  

	 	(ii)	acting as a director or officer of the Corporation or a Subsidiary Corporation; 

  

	 	(k)	“Disinterested Shareholder Approval” means an ordinary resolution approved by a majority of the votes cast by members of the Corporation at a shareholders’ meeting, excluding votes attaching to Shares
beneficially owned by Insiders to whom Options may be granted and Associates of those persons; 

	 	(l)	“Effective Date” means the effective date of this Plan, which is the later of the day of its approval by the shareholders of the Corporation and the day of its acceptance for filing by the Exchange if such
acceptance for filing is required under the rules or policies of the Exchange; 

  

	 	(m)	“Eligible Person” means: 

  

	 	(i)	an Employee, senior officer or director of the Corporation or any Subsidiary Corporation, 

  

	 	(ii)	a Consultant, 

  

	 	(iii)	an individual providing Investor Relations Activities for the Corporation, or 

  

	 	(iv)	a company, all of the voting securities of which are beneficially owned by one or more of the persons referred to in (i), (ii) or (iii) above; 

 

	 	(n)	“Employee” means: 

  

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

 

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

 

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

  

	 	(o)	“Exchange” means the stock exchange or over the counter market on which the Shares are listed; 

  

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

  

	 	(q)	“Fair Market Value” means, where the Shares are listed for trading on an Exchange, the last closing price of the Shares before the Date o Grant on the Exchange which is the principal trading market for the
Shares, as may be determined for such purpose by the Committee, provided that, so long as the Shares are listed only on the TSXV, the “Fair Market Value” shall not be lower than the last closing price of the Shares before the Date of Grant
less the maximum discount permitted under the policies of the TSXV; 

  

	 	(r)	“Guardian” means the guardian, if any, appointed for an Optionee; 

  

	 	(s)	“Insider” is used in relation to the Corporation, means; 

  

	 	(i)	a director or senior officer of the Corporation, 

  

	 	(ii)	every director or senior officer of a company that is itself an insider or subsidiary of the Corporation, or 

  

	 	(iii)	 any person or company who beneficially owns, directly or indirectly, voting securities of the Corporation or who exercises control or direction over
voting securities of the 

	 	
Corporation or a combination of both carrying more than 10% of the voting rights attaching to all voting securities to the Corporation for the time being outstanding other than voting securities
held by the person or company as an underwriter in the course of a distribution; 

  

	 	(t)	“Investor Relations Activities” means any activities or oral or written communications, by or on behalf of the Corporation or a shareholder of the Corporation that promote or reasonably could be expected to
promote the purchase or sale of securities of the Corporation, but does not include: 

  

	 	(i)	the dissemination of information provided, or records prepared, in the ordinary course of business of the Corporation 

  

	 	(A)	to promote the sale of products or services of the Corporation, or 

  

	 	(B)	to raise public awareness of the Corporation, 

 that cannot reasonably be considered to promote
the purchase or sale of securities of the Corporation; 
  

	 	(ii)	activities or communications necessary to comply with the requirements of 

  

	 	(A)	applicable securities laws, 

  

	 	(B)	the rules and policies of the TSXV, if the Shares are :listed only on the TSXV, or the by-laws, rules or other regulatory instruments of any other
self-regulatory body or exchange having jurisdiction over the Corporation; 

  

	 	(iii)	communications by a publisher of, or writer for, a newspaper, magazine or business or financial publication, that is of general and regular paid circulation, distributed only to subscribers to it for value or to
purchasers of it, if 

  

	 	(A)	the communication is only through the newspaper, magazine or publication, and 

  

	 	(B)	the publisher or writer receives no commission or other consideration other than for acting in the capacity of publisher or writer, or 

 

	 	(iv)	activities or communications that may be otherwise specified by the TSXV, if the Shares are listed only on the TSXV; 

  

	 	(u)	“Option” means an option to purchase unissued Shares granted pursuant to the terms of this Plan; 

  

	 	(v)	“Option Agreement” means a written agreement between the Corporation and an Optionee specifying the terms of the Option being granted to the Optionee under the Plan; 

 

	 	(w)	“Option Price” means the exercise price per Share specified in an Option Agreement, as may be adjusted from time to time in accordance with the provisions of Sections 6.3 and 10, and which shall in no event be
less than $0.10; 

  

	 	(x)	“Optionee” means an Eligible Person to whom an Option has been granted; 

  

	 	(y)	“Person” means a natural person, company, government or political subdivision or agency of a government; and where two or more Persons act as a partnership, limited partnership, syndicate or other group for
the purpose of acquiring, holding or disposing of securities of an issuer, such syndicate or group shall be deemed to be a Person; 

	 	(z)	“Plan” means this Stock Option Plan of the Corporation; 

  

	 	(aa)	“Qualified Successor” means a person who is entitled to ownership of an Option upon the death of an Optionee, pursuant to a will or the applicable laws of descent and distribution upon death;

  

	 	(bb)	“Shares” means the common shares in the capital of the Corporation as constituted on the Date of Grant, adjusted from time to time in accordance with the provisions of Section 10; 

 

	 	(cc)	“Subsidiary Corporation” shall mean a corporation which is a subsidiary of the Corporation; 

  

	 	(dd)	“Term” means the period of time during which an Option may be exercised; 

  

	 	(ee)	“TSX” means the Toronto Stock Exchange; and 

  

	 	(ff)	“TSXV” means the TSX Venture Exchange Inc. 

  

	3.	ADMINISTRATION 

 3.1 Board or Committee – The Plan shall be administered by the Board
or by a Committee appointed in accordance with Section 3.2. 
 3.2 Appointment of Committee – The Board may at any time appoint a
Committee, to administer the Plan on behalf of the Board in accordance with such terms and conditions as the Board may prescribe, consistent with this Plan. Once appointed, the Committee shall continue to serve until otherwise directed by the Board.
From time to time, the Board may increase the size of the Committee and appoint additional members, remove members (with or without cause) and appoint new members in their place, fill vacancies however caused, or remove all members of the Committee
and thereafter directly administer the Plan. In the absence of the appointment of a Committee by the Board, the Board shall administer the Plan. 

3.3 Quorum and Voting – A majority of the members of the Committee shall constitute a quorum, and, subject to the limitations in this
Section 3, all actions of the Committee shall require the affirmative vote of members who constitute a majority of such quorum. No member of the Committee who is a director to whom an Option may be granted may participate in the decision to
grant such Option (but any such member may be counted in determining the existence of a quorum at any meeting of the Committee in which action is to be taken with respect to the granting of an Option to him). 

3.4 Powers of Board and Committee – The Board shall from time to time authorize and approve the grant by the Corporation of Options under
this Plan, and any Committee appointed under Section 3.2 shall have the authority to review the following matters in relation to the Plan and to make recommendations thereon to the Board; 

 

	 	(a)	administration of the Plan in accordance with its terms, 

  

	 	(b)	determination of all questions arising in connection with the administration, interpretation and application of the Plan, including all questions relating to the value of the Shares, 

 

	 	(c)	correction of any defect, supply of any information or reconciliation of any inconsistency in the Plan in such manner and to such extent as stall be deemed necessary or advisable to carry out the purposes of the Plan,

  

	 	(d)	prescription, amendment and rescission of the rules and regulations relating to the administration of the Plan, 

  

	 	(e)	determination of the duration and purpose of leaves of absence from employment which may be granted to Optionees without constituting a termination of employment for purposes of the Plan, 

	 	(f)	with respect to the granting of Options: 

  

	 	(i)	determination of the employees, officers, directors or consultants to whom Options will be granted based on the eligibility criteria set out in this Plan, 

 

	 	(ii)	determination of the terms and provisions of the Option Agreement which shall be entered into with each Optionee (which need not be identical with the terms of any other Option Agreement) and which shall not be
inconsistent with the terms of this Plan, 

  

	 	(iii)	amendment of the terms and provisions of an Option Agreement, provided the Board obtains: 

  

	 	(A)	the consent of the Optionee, and 

  

	 	(B)	if required, the approval of any stock exchange on which the Shares are listed, 

  

	 	(iv)	determination of when Options will be granted, 

  

	 	(v)	determination of the number of Shares subject to each Option, 

  

	 	(vi)	determination of the vesting schedule, if any, for the exercise of each Option, and 

  

	 	(g)	other determinations necessary or advisable for administration of the Plan. 

 3.5 Obtain
Approvals – The Board will seek to obtain any regulatory, Exchange or shareholder approvals which may be required pursuant to applicable securities laws or Exchange rules. 

3.6 Administration of Committee – The Committee shall have all powers necessary or appropriate to accomplish its duties under this Plan. In
addition, the Committee’s administration of the Plan shall in all respects be consistent with the Exchange policies and rules. 
  

	4.	ELIGIBILITY 

 4.1 Eligibility for Options – Options may be granted to any Eligible Person.

 4.2 Insider Eligibility for Options – Notwithstanding Section 4.1, if the Shares are listed only on the TSXV, grants of Options
to Insiders shall be subject to the policies of the TSXV, including the requirement for Disinterested Shareholder Approval, as applicable. 

4.3 No Violation of Securities Laws – No Option shall be granted to any Optionee unless the Committee has determined that the grant of such
Option and the exercise thereof by the Optionee will not violate the securities law of the jurisdiction in which the Optionee resides. 
  

	5.	SHARES SUBJECT TO THE PLAN 

 5.1 Number of Shares – The maximum number of Shares which
may be reserved and set aside for issue under this Plan shall not exceed ten percent (10%) of the number of issued and outstanding shares, from time to time, provided that the Board shall have the right, from time to time, to increase such
maximum number subject to the approval of the shareholders of the Corporation. 
 5.2 Expiry of Option – If an Option expires or
terminates for any reason without having been exercised in full, the unpurchased Shares subject thereto shall again be available for the purposes of the Plan. 

5.3 Reservation of Shares – The Corporation will at all times reserve for issuance and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. 

	6.	OPTION TERMS 

 6.1 Option Agreement – Each Option granted to an Optionee shall be
confirmed by the execution and delivery of an Option Agreement and the Board shall specify the following terms in each such Option Agreement: 
  

	 	(a)	the number of Shares subject to option pursuant to such Option, subject to the following limitations: 

  

	 	(i)	the number of Shares reserved for issuance pursuant to Options to any one Optionee shall not exceed 5% of the issued Shares in any 12-month period (unless the Corporation is
designated as a “Tier 1” listed company by the TSXV and has obtained Disinterested Shareholder Approval to exceed this number), 

  

	 	(ii)	the number of Shares reserved for issuance pursuant to Options to any one Consultant shall not exceed 2% of the issued Shares in any 12-month period, and 

 

	 	(iii)	the aggregate number of Shares reserved for issuance pursuant to Options to Employees or Persons conducting Investor Relations Activities shall not exceed 2% of the issued Shares in any
12-month period; 

  

	 	(b)	the Date of Grant; 

  

	 	(c)	the Term, provided that, if the Shares are listed only on the TSXV, the length of the Term shall in no event be greater than five years following the Date of Grant, except, if the Corporation is designated as “Tier
1” listed company by the TSXV or is listed on the TSX, then the Term shall be no greater than ten years following the Date of Grant, for all Optionees. In addition, should the Corporation be designated as a “Tier 1” listed company by
the TSXV or listed on the TSX, then all Options then outstanding shall have their respective expiry dates extended as if the Options were granted after such event; 

 

	 	(d)	the Option Price, provided that the Option Price shall not be less than the Fair Market Value of the Shares on the Date of Grant; 

  

	 	(e)	subject to Section 6.2 below, any vesting schedule upon which the exercise of an Option is contingent; 

  

	 	(f)	if the Optionee is an Employee, Consultant or an individual providing Investor Relations Activities for the Corporation, a representation by the Corporation and the Optionee that the Optionee is a bona fide Employee,
Consultant or an individual providing Investor Relations Activities for the Corporation, as the case may be, of the Corporation or a Subsidiary Corporation; and 

  

	 	(g)	such other terms and conditions as the Board deems advisable and are consistent with the purposes of this Plan. 

6.2 Vesting Schedule – Subject to the rules of the Exchange, the Board shall, have complete discretion to set the terms of any vesting schedule of
each Option granted, including, without limitation, discretion to: 
  

	 	(a)	permit partial vesting in stated percentage amounts based on the Term of such Option; and 

  

	 	(b)	permit full vesting after a stated period of tine has passed from the Date of Grant. 

 6.3 Amendments
to Options – Amendments to the terms of previously granted Options are subject to regulatory approval, if required. If required by the Exchange, Disinterested Shareholder Approval shall be required for any reduction in the Option Price of a
previously granted Option if the Optionee is art Insider of the Corporation at the time of the proposed reduction in the Option Price. 
 6.4
Uniformity – Except as expressly provided herein, nothing contained in this Plan shall require that the terms and conditions of Options granted under the Plan be uniform. 

	7.	EXERCISE OF OPTION 

 7.1 Method of Exercise – Subject to any limitations or conditions
imposed upon an Optionee pursuant to the Option Agreement or Section 6 hereof, an Optionee may exercise an Option by giving written notice thereof, specifying the number of Shares in respect of which the Option is exercised, to the Corporation
at its principal place of business at any time after the Date of Grant until 4:00 p.m. (Toronto time) on the last day of the Term, such notice to be accompanied by full payment of the aggregate Option Price to the extent the Option is so exercised.
Such payment shall be in lawful money (Canadian funds) by cash, cheque, bank draft or wire transfer. Payment by cheque made payable to the Corporation in the amount of the aggregate Option Price shall constitute payment of such Option Price unless
the cheque is not honoured upon presentation, in which case the Option shall not have been validly exercised. 
 7.2 Issuance of Certificates
– Not later than the third business day after exercise of an Option in accordance with Section 7.1, the Corporation shall issue and deliver to the Optionee a certificate or certificates evidencing the Shares with respect to which the
Option has been exercised. Until the issuance of such certificate or certificates, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to such Shares, notwithstanding the exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date is prior to the date the certificate is issued, except as provided by Section 10 hereof. 

7.3 Compliance with U.S. Securities Laws – As a condition to the exercise of an Option, the Board may require the Optionee to represent and
warrant in writing at the time of such exercise that the Shares are being purchased only for investment and without any then-present intention to sell or distribute such Shares. At the option of the Board, a stop-transfer order against such Shares may be placed on the stock books and records of the Corporation and a legend, indicating that the stock may not be pledged, sold or otherwise transferred unless an opinion of
counsel is provided stating that such transfer is not in violation of any applicable law or regulation, may be stamped on the certificates representing such Shares in order to assure an exemption from registration. The Board may also require such
other documentation as may from time to time be necessary to comply with United States’ federal and state securities laws. The Corporation has no obligation to undertake registration of Options or the Shares issuable upon the exercise of the
Options. 
  

	8.	TRANSFERABILITY OF OPTIONS 

 8.1
Non-Transferable/Legending – Except as permitted by applicable securities laws and the policies of the Exchange, and as provided otherwise in this Section 8, Options are non-assignable and non-transferable. If the Shares are listed only on the TSXV, then, in addition to any resale restrictions under applicable securities laws, if the
Corporation is, at the Date of Grant of an Option, designated as a “Tier 2” listed company by the TSXV or, if the Corporation is not so designated but the Option Price is based on a discount from the last closing price of the Shares on the
TSXV, the Option Agreement and the certificates representing the Shares issued on the exercise of such Option shall bear the TSXV legend with a four-month hold period commencing on the Date of Grant. 

8.2 Death of Optionee – Subject to Section 8.3, if the employment of an Optionee as an Employee of, or the services of a Consultant
providing services to, the Corporation or any Subsidiary Corporation, or the employment of an Optionee as an individual providing Investor Relations Activities, or the position of the Optionee as a director or senior officer of the Corporation or
any Subsidiary Corporation, terminates as a result of such Optionee’s death, any Options held by such Optionee shall pass to the Qualified Successor of the Optionee and shall be exercisable by such Qualified Successor until the earlier of a
period of not more than one year following the date of such death and the expiry of the Term of the Option. 

 8.3 Disability of Optionee – If the employment of an Optionee as an Employee of, or the services of a
Consultant providing services to, the Corporation or any Subsidiary Corporation, or the employment of an Optionee as an individual providing Investor Relations Activities for the Corporation, or the position of the Optionee as a director or senior
officer of the Corporation or any Subsidiary Corporation, is terminated by reason of such Optionee’s Disability, any Options held by such Optionee that could have been exercised immediately prior to such termination of employment or service
shall be exercisable by such Optionee, or by his Guardian, for a period of 120 days following the termination of employment or service of such Optionee. If such Optionee dies within that 120-day period, any
Option held by such Optionee that could have been exercised immediately prior to his or her death shall pass to the Qualified Successor of such Optionee, and shall be exercisable by the Qualified Successor until the earlier of a period of 120 days
following the death of such Optionee and the expiry of the Term of the Option. 
 8.4 Vesting – Options held by a Qualified Successor or
exercisable by a Guardian shall, during the period prior to their termination, continue to vest in accordance with any vesting schedule to which such Options are subject. 

8.5 Deemed Non-Interruption of Employment – Employment shall be deemed to continue intact during
any military or sick leave or other bona fide leave of absence if the period of such leave does not exceed 120 days or, if longer, for so long as the Optionee’s right to reemployment with the Corporation or any Subsidiary Corporation is
guaranteed either by statute or by contract. If the period of such leave exceeds 120 days and the Optionee’s reemployment is not so guaranteed, then the Optionee’s employment shall be deemed to have terminated on the 121st day of such leave. 
  

	9.	TERMINATION OF OPTIONS 

 9.1 Termination of Options – To the extent not earlier
exercised or terminated in accordance with Section 8, an Option shall terminate at the earliest of the following dates: 
  

	 	(a)	the termination date specified for such Option in the Option Agreement; 

  

	 	(b)	where the Optionee’s position as an Employee, a Consultant, a director or a senior officer of the Corporation or any Subsidiary Corporation, or an individual providing Investor Relations Activities for the
Corporation, is terminated for cause, the date of such termination for cause; 

  

	 	(c)	where the Optionee’s position as an Employee, a Consultant, a director or a senior officer of the Corporation or any Subsidiary Corporation or an individual providing Investor Relations Activities for the
Corporation terminates for a reason other than the Optionee’s Disability or death or for cause, not more than 90 days after such date of termination or, in the case of a person employed to provide Investor Relations Activities, not more than 30
days after such person ceases to be employed to provide Investor Relations Activities; provided that if an Optionee’s position changes from one of the said categories to another category, such change shall not constitute termination or
cessation for the purpose of this Subsection 9.1(c); and 

  

	 	(d)	the date of any sale, transfer, assignment or hypothecation, or any attempted sale, transfer, assignment or hypothecation, of such Option in violation of Section 8.1, 

9.2 Lapsed Options – If Options are surrendered, terminate or expire without being exercised in whole or in part, new Options may be
granted covering the Shares not purchased under such lapsed Options. If an Option has been surrendered in connection with the regranting of a new Option to the same Optionee on different terms than the original Option granted to such Optionee, then,
if required, the new Option is subject to approval of the Exchange. 
 9.3 Exclusion From Severance Allowance, Retirement Allowance or
Termination Settlement – If the Optionee retires, resigns or is terminated from employment o- engagement with the Corporation or any Subsidiary Corporation, the loss or limitation, if any, pursuant to
the Option Agreement with respect to the right to purchase Option Shares which were not vested at that time or which, if vested, were cancelled, shall not give rise to any right to damages and shall not be included in the calculation of nor form any
part of any severance allowance, retiring allowance or termination settlement of any kind whatsoever in respect of such Optionee. 

	10.	ADJUSTMENTS TO OPTIONS 

 10.1 Alteration in Capital Structure – If there is any change
in the Shares through or by means of a declaration of stock dividends of the Shares or consolidations, subdivisions or reclassifications of the Shares, or otherwise, the number of Shares available under the Plan, the Shares subject to any Option and
the Option Price therefore shall be adjusted proportionately by the Board and, if required, approved by the Exchange, and such adjustment shall be effective and binding for all purposes of the Plan. 

10.2 Effect of Amalgamation, Merger or Arrangement – If the Corporation amalgamates, merges or enters into a plan of arrangement with or
into another corporation, any Shares receivable on the exercise of an Option shall be converted into the securities, property or cash which the Optionee would have received upon such amalgamation, merger or arrangement if the Optionee had exercised
the Option immediately prior to the record date applicable to such amalgamation, merger or arrangement, and the exercise price shall be adjusted proportionately by the Board and such adjustment shall be binding for all purposes of the Plan.

 10.3 Acceleration on Change in Control – Upon a Change in Control, all Options shall become immediately exercisable,
notwithstanding any contingent vesting provisions to which such Options may have otherwise been subject. 
 10.4 Acceleration of Date of
Exercise – Subject to the approval of the Exchange, if required, the Board shall have the right to accelerate the date of vesting of any portion of any Option which remains unvested. 

10.5 Determinations to be Binding – If any questions arise at any time with respect to the Option Price or exercise price or number of
Option Shares or other property deliverable upon exercise of an Option following an event referred to in this Section 10, such questions shall be conclusively determined by the Board, whose decisions shall be final and binding. 

10.6 Effect of a Take-Over – If a bona fide offer (the “Offer”) for Shares is made to an
Optionee or to shareholders generally or to a class of shareholders which includes the Optionee, which Offer constitutes a take-over bid within the meaning of the Act, the Corporation shall, immediately upon
receipt of notice of the Offer, notify each Optionee of full particulars of the Offer, whereupon any Option held by an Optionee may be exercised in whole or in part, notwithstanding any contingent vesting provisions to which such Options may have
otherwise been subject, by the Optionee so as to permit the Optionee to tender the Shares received upon such exercise (the “Optioned Shares”) to the Offer. If: 

 

	 	(a)	the Offer is not completed within the time specified therein; or 

  

	 	(b)	all of the Optioned Shares tendered by the Optionee pursuant to the Offer are not taken up and paid for by the offer or pursuant thereto; 

the Optioned Shares or, in the case of clause (b) above, the Optioned Shares that are not taken up and paid for, may be returned by the Optionee to the
Corporation and reinstated as authorized but unissued Shares and with respect to such returned Optioned Shares, the Option shall be reinstated as if it had not been exercised. If any Optioned Shares are returned to the Corporation under this
Section, the Corporation shall refund to the Optionee any Option Price paid for such Optioned Shares. 
  

	11.	APPROVAL, TERMINATION AND AMENDMENT OF PLAN 

 11.1 Shareholder Approval – The
establishment of the Plan shall be subject to approval of the TSXV and the shareholders of the Corporation (the “Shareholders”). In addition, all Options granted pursuant to the Plan prior to the approval thereof by the Shareholders shall
also be subject to approval of the Shareholders provided that all Options granted subsequent to such approval of the Shareholders shall not require approval by the Shareholders unless such approval is required by the regulatory authorities or stock
exchanges having jurisdiction over the affairs of the Corporation. 

 11.2 Effective Date and Duration of Plan – The Plan becomes effective on the date of its
adoption by the Board and Options may be granted immediately thereafter. The Plan shall remain in full force and effect until such time as the Board shall terminate the Plan, and for so long thereafter as Options remain outstanding in favour of any
Participant. 
 11.3 No Grant During Suspension of Plan – No Option may be granted during any suspension, or after termination, of
the Plan. Amendment, suspension or termination of the Plan shall not, without the consent of the Optionee, alter or impair any rights or obligations under any Option previously granted. 

 

	12.	CONDITIONS PRECEDENT TO ISSUANCE OF SHARES 

 12.1 Compliance with Laws – Shares shall
not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares shall comply with all relevant provisions of law, including, without limitation, any applicable United States’ state
securities laws, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations thereunder and the requirements of any Exchange or automated interdealer quotation system of a registered national securities association upon which
such Shares may then be listed or quoted, and such issuance shall be further subject to the approval of counsel for the Corporation with respect to such compliance, including the availability of an exemption from registration for the issuance and
sale of such Shares. The inability of the Corporation to obtain from any regulatory body the authority deemed by the Corporation to be necessary for the lawful issuance and sale of any Shares under this Plan, or the unavailability of an exemption
from registration for the issuance and sale of any Shares under this Plan, shall relieve the Corporation of any liability with respect to the non-issuance or sale of such Shares other than with respect to a
refund of any Option Price paid. 
  

	13.	USE OF PROCEEDS 

 13.1 Use of Proceeds – Proceeds from the sale of Shares pursuant to
the Options granted and exercised under the Plan shall constitute general funds of the Corporation and shall be used for general corporate purposes, or as the Board otherwise determines. 

 

	14.	NOTICES 

 14.1 Notices – All notices, requests, demands and other communications required or
permitted to be given under this Plan and the Options granted under this Plan shall be in writing and shall be either delivered personally to the party to whom notice is to be given, in which case notice shall be deemed to have been duly given on
the date of such personal delivery; telecopied, in which case notice shall be deemed to have been duly given on the date the telecopy is sent; or mailed to the party to whom notice is to be given, by first class mail, registered or certified, return
receipt requested, postage prepaid, and addressed to the party at his or its most recent known address, in which case such notice shall be deemed to have been duly given on the tenth postal delivery day following the date of such mailing.

  

	15.	MISCELLANEOUS PROVISIONS 

  

	15.1	No Obligations to Exercise – Optionees shall be under no obligation to exercise Options granted under this Plan. 

15.2 No Obligation to Retain Optionee – Nothing contained in this Plan shall obligate the Corporation or any Subsidiary Corporation to
retain an Optionee as an employee, officer, director or consultant for any period, nor shall this Plan interfere in any way with the right of the Corporation or any Subsidiary Corporation to reduce such Optionee’s compensation. 

15.3 Binding Agreement – The provisions of this Plan and of each Option Agreement with an Optionee shall be binding upon such Optionee and
the Qualified Successor or Guardian of such Optionee. 

 15.4 Use of Terms – Where the context so requires, references herein to the singular shall
include the plural, and vice versa, and references to a particular gender shall include either or both genders. 
 15.5 Headings –
The headings used in this Plan are for convenience of reference only and shall not in any way affect or be used in interpreting any of the provisions of this Plan. 

15.6 No Representation or Warranty – The Corporation makes no representation or warranty as to the future value of any Shares issued in
accordance with the provisions of this Plan. 
 15.7 Income Taxes – As a condition of and prior to participation in the Plan any
Optionee shall on request authorize the Corporation in writing to withhold from any remuneration otherwise payable to such Optionee any amounts required by any taxing authority to be withheld for t1xes of any kind as a consequence of such
Optionee’s participation in the Plan. 
 15.8 Compliance with Applicable Law – If any provision of the Plan or any Option
Agreement contravenes any law or any order, policy, by-law or regulation of any regulatory body or stock exchange or over the counter market having authority over the Corporation or the Plan, then such
provision shall be deemed to be amended to the extent required to bring such provision into compliance therewith. 
 15.9 Conflict
– In the event of any conflict between the provisions of this Plan and an Option Agreement, the provisions of this Plan shall govern. 

15.10 Governing Law – This Plan and each Option Agreement issued pursuant to this Plan shall be governed by the laws of the Province of
Ontario. 
 15.11 Time of Essence – Time is of the essence of this Plan and of each Option Agreement. No extension of time will be
deemed to be, or to operate as, a waiver of the essentiality of time. 
 15.12 Entire Agreement – This Plan and the Option
Agreement sets out the entire agreement between the Corporation and the Optionees relative to the subject matter hereof and supersedes all prior agreements, undertakings and understandings, whether oral or written.

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