Document:

Exhibit
4.2

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON
STOCK PURCHASE WARRANT

 

	Warrant
    Shares: 1,587,301	Initial Exercise
    Date: October 30, 2020

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Cavalry Fund I LP, or its
assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business
on the fifth year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe
for and purchase from Adhera Therapeutics, Inc., a Delaware corporation (the “Company”), up to 1,587,301
shares1 of Common Stock (subject to adjustment hereunder, the “Warrant Shares”). The purchase
price of one Warrant Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Note.

 

Section
2. Exercise.

 

(a)
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after
the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of
the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books
of the Company) of a duly executed copy of the Notice of Exercise Form annexed hereto. Within two Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank, unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary (although
the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required
to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder
and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within two Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.
The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.
The Company shall deliver any objection to any Notice of Exercise Form within one Trading Day of delivery of such notice. The
Holder by acceptance of this Warrant or any transferee, acknowledges and agrees that, by reason of the provisions of this Section
2(a), following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face hereof.

 

 

1
100% Warrant Coverage on the Note.

 

    	 	1	 

     

    

 

(b)
Exercise Price. The initial exercise price per share of the Common Stock under this Warrant shall be equal to $0.08 per
share, subject to adjustment under Section 3 (the “Exercise Price”).

 

(c)
Cashless Exercise. Other than as provided for in Section 2(f), if at any time after the six month anniversary of the Initial
Exercise Date, there is no effective Registration Statement covering the resale of the Warrant Shares by the Holder (or the prospectus
does not meet the requirements of Section 10 of the Securities Act), then this Warrant may also be exercised at the Holder’s
election, in whole or in part and in lieu of making the cash payment otherwise contemplated to be made to the Company upon such
exercise, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number
of Warrant Shares equal to the number obtained by dividing [(A - B) times (C)] by (A), where:

 

	 	(A)	=	the
    greater of (i) the arithmetic average of the VWAPs for the five consecutive Trading Days ending on the date immediately preceding
    the date on which the Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in
    the applicable Notice of Exercise or (ii) the VWAP for the Trading Day immediately prior to the date on which the Holder makes
    such “cashless exercise” election;
	 	 	 	 
	 	(B)	=	the
    Exercise Price of this Warrant, as adjusted hereunder, at the time of such exercise; and
	 	 	 	 
	 	(C)	=	the
    number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise;

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) (or a similar organization or agency succeeding
to its functions of reporting prices), (b) if no volume weighted average price of the Common Stock is reported for the Trading
Market, the most recent reported bid price per share of the Common Stock, or (c) in all other cases, the fair market value of
a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable
to the Company, the fees and expenses of which shall be paid by the Company.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any
position contrary to this Section 2(c).

 

Notwithstanding
anything herein to the contrary, if on the Termination Date (unless the Holder notifies the Company otherwise) if there is no
effective Registration Statement covering the resale of the Warrant Shares by the Holder, then this Warrant shall be automatically
exercised via cashless exercise pursuant to this Section 2(c).

 

    	 	2	 

     

    

 

(d)
Mechanics of Exercise.

 

(i)
Delivery of Certificates Upon Exercise. Certificates for the shares of Common Stock purchased hereunder shall be transmitted
to the Holder by the Transfer Agent by crediting the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system
and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the
Warrant Shares by the Holder or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, or otherwise
by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is two Trading Days after
the latest of (A) the delivery to the Company of the Notice of Exercise and (B) payment of the aggregate Exercise Price as set
forth above (unless by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”). The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to
the Company of the Exercise Price (or by cashless exercise, if permitted). The Company understands that a delay in the delivery
of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation to the
Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of
Warrant Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day (increasing to $20 per Trading Day
after the fifth Trading Day) after the Warrant Share Delivery Date for each $1,000 of the value of the Warrant Shares for which
this Warrant is exercised (based on the Exercise Price) which are not timely delivered. In no event shall liquidated damages for
any one transaction exceed $1,000 for the first 10 Trading Days. Furthermore, in addition to any other remedies which may be available
to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share
Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to the
Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise
of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date
notice of revocation or rescission is given to the Company or the date the Warrant Shares are delivered to the Holder, whichever
date is earlier.

 

(ii)
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called
for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant. Unless the Warrant has been fully
exercised, the Holder shall not be required to surrender this Warrant as a condition of exercise.

 

(iii)
Rescission Rights. If the Company fails to deliver the Warrant Shares or cause the Transfer Agent to transmit to the Holder
a certificate or the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date,
then the Holder will have the right, at any time prior to issuance of such Warrant Shares, to rescind such exercise.

 

(iv)
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available
to the Holder, if the Company fails to deliver the Warrant Shares, or cause the Transfer Agent to transmit to the Holder the certificate
or certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after
such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall pay in cash to the
Holder the amount as provided under Section 4.1(c)(v) of the Note. For example, if the Buy-In relates to 50% of the Warrants,
than the liquidatd damages would be based on 50% of the principal of the Note. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

(v)
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

(vi)
Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for
any issue or transfer tax or other incidental expense in respect of the issuance of such certificate including any charges of
any clearing firm, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the
name of the Holder or in such name or names as may be directed by the Holder. The Company shall pay all Transfer Agent fees required
for same-day processing of any Notice of Exercise. The Company shall (A) pay the reasonable legal fees of the Holder’s choice
(in an amount not to exceed $500 per opinion, and not more often than once per week) in connection with the exercise of the Warrants,
(B) cause its attorneys to promptly provide any reliance opinion to the Transfer Agent, and (C) pay the Holder the sums required
under Section 2(d)(iv).

 

    	 	3	 

     

    

 

(vii)
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

(e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially
owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any
other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on
conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall
be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and
of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a
Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a
more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder
the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’
prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 2(e) solely with respect
to the Holder’s Warrant, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares
of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase will not be effective until
the 61st day after such notice is delivered to the Company. The Holder may also decrease the Beneficial Ownership Limitation provisions
of this Section 2(e) solely with respect to the Holder’s Warrant at any time, which decrease shall be effectively immediately
upon delivery of notice to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of this Warrant.

 

    	 	4	 

     

    

 

Section
3. Certain Adjustments.

 

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

 

(b)
Subsequent Equity Sales. If and whenever on or after the Initial Exercise Date, the Company issues or sells, or in accordance
with this Section 3 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of
Common Stock owned or held by or for the account of the Company, issued or sold or deemed to have been issued or sold) for a consideration
per share (the “Base Share Price”) less than a price equal to the Exercise Price in effect immediately prior to such
issuance or sale or deemed issuance or sale (such Exercise Price then in effect is referred to herein as the “Applicable
Price”) (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Exercise Price
then in effect shall be reduced to an amount equal to the Base Share Price. For all purposes of the foregoing (including, without
limitation, determining the adjusted Exercise Price and the Base Share Price under this Section 3(b)), the following shall be
applicable:

 

(i)
Issuance of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which
one share of Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange
of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof is less than
the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the
Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 3(b)(i), the
“lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options or upon conversion,
exercise or exchange of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms
thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable
by the Company with respect to any one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option
and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option or otherwise pursuant
to the terms thereof and (y) the lowest exercise price set forth in such Option for which one share of Common Stock is issuable
upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise
of any such Option or otherwise pursuant to the terms thereof minus (2) the sum of all amounts paid or payable to the holder of
such Option (or any other Person) upon the granting or sale of such Option, upon exercise of such Option and upon conversion,
exercise or exchange of any Convertible Security issuable upon exercise of such Option or otherwise pursuant to the terms thereof
plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Option (or any
other Person). Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance
of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or otherwise pursuant to the
terms of or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible
Securities.

 

(ii)
Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest
price per share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange thereof
or otherwise pursuant to the terms thereof is less than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities
for such price per share. For the purposes of this Section 3(b)(ii), the “lowest price per share for which one share of
Common Stock is issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof” shall
be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise
or exchange of such Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest conversion price set forth
in such Convertible Security for which one share of Common Stock is issuable upon conversion, exercise or exchange thereof or
otherwise pursuant to the terms thereof minus (2) the sum of all amounts paid or payable to the holder of such Convertible Security
(or any other Person) upon the issuance or sale of such Convertible Security plus the value of any other consideration received
or receivable by, or benefit conferred on, the holder of such Convertible Security (or any other Person). Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon
conversion, exercise or exchange of such Convertible Securities or otherwise pursuant to the terms thereof, and if any such issuance
or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is
to be made pursuant to other provisions of this Section 3(b), except as contemplated below, no further adjustment of the Exercise
Price shall be made by reason of such issuance or sale.

 

    	 	5	 

     

    

 

(iii)
Change in Option Price or Rate of Conversion. “Convertible Securities” means any stock or other security (other
than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable
for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock. If the purchase or exercise price
provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of
any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable
for shares of Common Stock increases or decreases at any time (other than proportional changes in conversion or exercise prices,
as applicable, in connection with an event referred to in Section 3(a)), the Exercise Price in effect at the time of such increase
or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible
Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion
rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 3(b)(iii), if the terms
of any Option or Convertible Security that was outstanding as of the Closing Date are increased or decreased in the manner described
in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable
upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease.
No adjustment pursuant to this Section 3(b) shall be made if such adjustment would result in an increase of the Exercise Price
then in effect.

 

(iv)
Calculation of Consideration Received. If any Option is issued in connection with the issuance or sale of any other securities
of the Company together comprising one integrated transaction in which no specific consideration is allocated to such Option by
the parties thereto, the Options will be deemed to have been issued for a consideration of $0.01. If any shares of Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received
therefor will be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common Stock,
Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received
by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities,
in which case the amount of consideration received by the Company for such securities will be the arithmetic average of the VWAPs
of such security for each of the five Trading Days immediately preceding the date of receipt. If any shares of Common Stock, Options
or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company
is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets
and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities.
The fair value of any consideration other than cash or publicly traded securities will be determined jointly by the Company and
the Holder. If such parties are unable to reach agreement within 10 days after the occurrence of an event requiring valuation
(the “Valuation Event”), the fair value of such consideration will be determined within five Trading Days after the
10th day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and
the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error. If such appraiser’s
valuation differs by less than 5% from the Company’s proposed valuation, the fees and expenses of such appraiser shall be
borne by the Holder, and if such appraiser’s valuation differs by more than 5% from the Company’s proposed valuation,
the fees and expenses of such appraiser shall be borne by the Company.

 

(v)
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A)
to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to
subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be
the date of the issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the
case may be).

 

    	 	6	 

     

    

 

(c)
Full Ratchet Increase in Warrant Shares. Until the Notes are no longer outstanding, whenever the Exercise Price is adjusted
under Section 3(b), the number of Warrant Shares shall be increased on a full ratchet basis to the number of shares of Common
Stock determined by multiplying the Exercise Price then in effect immediately prior to such adjustment by the number of Warrant
Shares issuable upon exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by the Exercise
Price resulting from such adjustment. By way of example, if E is the total number of Warrant Shares in effect immediately prior
to such Dilutive Issuance, F is the Exercise Price in effect immediately prior to such Dilutive Issuance, and G is the Dilutive
Issuance Price, the adjustment to the number of Warrant Shares can be expressed in the following formula: Total number of Warrant
Shares after such Dilutive Issuance = the number obtained from dividing [E x F] by G. For the avoidance of doubt, the price
protection provided for under this Agreement shall survive the repayment of the Notes.

 

(d)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard
to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would
result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such
Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such
extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). Notwithstanding the foregoing, no Purchase
Rights will be made under this Section 3(d) in respect of an Exempt Issuance.

 

(e)
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders
of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights
or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(d)), then
in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall
be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date
less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed
applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case
the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness
so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any
such distribution is made and shall become effective immediately after the record date mentioned above.

 

(f)
Fundamental Transaction.

 

(i)
If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions
engages in any Fundamental Transaction, as defined in the Note, then, upon any subsequent exercise of this Warrant, the Holder
shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to
the occurrence of such Fundamental Transaction (without regard to any limitation on the exercise of this Warrant), at the option
of the Holder the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such
Fundamental Transaction (without regard to any limitation on the exercise of this Warrant). For purposes of any such exercise,
the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company
shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any
different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash
or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall not effect a Fundamental
Transaction unless it gives the Holder at least 10 Trading Days prior notice together with sufficient details so the Holder can
make an informed decision as to whether it elects to accept the Alternative Consideration. If a public announcement of the Fundamental
Transaction has not been made, the notice to the Holder may not be given until the Company files a Form 8-K or other report disclosing
the Fundamental Transaction.

 

    	 	7	 

     

    

 

(ii)
Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined
below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation
of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black
Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction
or (ii) the positive difference between the cash per share paid in such Fundamental Transaction minus the then in effect Exercise
Price. “Black Scholes Value” means the value of the unexercised portion of this Warrant based on the Black and Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg L.P. determined as of the day of consummation of
the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the
U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the
HVT function on Bloomberg L.P. as of the Trading Day immediately following the public announcement of the applicable Fundamental
Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being offered
in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a
remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date.

 

(iii)
If Section 3(f)(i) and (ii) are not applicable, the Company shall cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company
under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(f)(iii) pursuant to
written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this
Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant prior to such Fundamental Transaction
(without regard to any limitation on the exercise of this Warrant), and with an exercise price which applies the exercise price
hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to
such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise
price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Company herein.

 

(g)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

    	 	8	 

     

    

 

(h)
Notice to Holder.

 

(i)
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly email to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment. The Holder may supply
an email address to the Company and change such address.

 

(ii)
Notice to Allow Exercise by the Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall deliver to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record
or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become
effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange
their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided that the failure to email such notice or any defect therein or in the emailing
thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any
notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries
(as determined in good faith by the Company), the Company shall simultaneously file such notice with the Commission pursuant to
a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date
of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section
4. Transfer of Warrant.

 

(a)
Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including,
without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal
office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney. Upon such surrender, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised
by a new Holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

    	 	9	 

     

    

 

(c)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat
the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section
5. Miscellaneous.

 

(a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof other than as explicitly set forth in Section 3.

 

(b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender
and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. In no event shall the
Holder be required to deliver a bond or other security.

 

(c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next
succeeding Trading Day.

 

(d)
Authorized Shares. The Company covenants that during the period this Warrant is outstanding, it will reserve from its authorized
and unissued Common Stock, free of preemptive rights the number of Warrant Shares issuable upon exercise of this Warrant. The
Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant
will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith,
be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by the Company
in respect of the issue thereof.

 

In
addition to any other remedies provided by this Warrant, if the Company at any time fails to meet this reservation of Common Stock
requirement within 45 days after written notice from the Holder, it shall pay the Holder as partial liquidated damages and not
as a penalty a sum equal to $500 per day for each $100,000 of principal of the Holder’s Note as of the Original Issue Date
(or the original purchaser of the Note if the Holder is a transferee of the Warrants). The phrase Original Issue Date shall be
the date of the Note. The Company shall not enter into any agreement or file any amendment to its Articles of Incorporation (including
the filing of a Certificate of Designation) which conflicts with this Section 5(d) while the Note and Warrants remain outstanding.

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its Certificat of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
upon the exercise of this Warrant and (iii) use best efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

(e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the provisions of the Note.

 

    	 	10	 

     

    

 

(f)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered
or if not exercised on a cashless basis when Rule 144 (or any successor law or rule) is available, may have restrictions upon
resale imposed by state and federal securities laws.

 

(g)
Non-waiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of the
Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Note, if the Company willfully and knowingly fails to comply with any provision of
this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

 

(h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Note.

 

(i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

(j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate or that there
is no irreparable harm and not to require the posting of a bond or other security.

 

(k)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant
and shall be enforceable by the Holder of Warrant Shares.

 

(l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company
and Holder.

 

(m)
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be 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 provisions
or the remaining provisions of this Warrant.

 

(n)
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be
deemed a part of this Warrant.

 

[Signature
Page Follows]

 

    	 	11	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	ADHERATHERAPEUTICS,
    Inc.
	 	 	 
	 	By:	                                 
	 	Name:	Andrew
    Kucharchuk
	 	Title:	Chief
    Executive Officer

 

 

    	 	12	 

     

    

 

NOTICE
OF EXERCISE

 

To:
 ADHERA THERAPEUTICS,
Inc.

 

(1)
The undersigned hereby elects to purchase ___________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

 

(2)
Payment shall take the form of (check applicable box):

 

		[  ]
    in lawful money of the United States; or
	 	[  ] if permitted the cancellation
    of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise
    this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
    set forth in subsection 2(c).

 

(3)
Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name
as is specified below:

_______________________________

 

(4)
After giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The
Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

SIGNATURE
OF HOLDER

 

Name
of Investing Entity: ___________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _____________________________________________

Name
of Authorized Signatory: _______________________________________________________________

Title
of Authorized Signatory: ________________________________________________________________

Date:
____________________________________________________________________________________

 

    	 	13	 

     

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

ADHERA
THERAPEUTICS, Inc.

 

FOR
VALUE RECEIVED, ____ all of or _______ shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________
whose address is

 

_______________________________________________________________

 

_______________________________________________________________

 

Dated:
______________, _______

 

	Holder’s
    Signature:	_____________________________
	 	 
	Holder’s
    Address:	_____________________________
	 	 
	 	_____________________________

 

Signature
Guaranteed: ___________________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    	 	14Exhibit 10.1

 

NIOCORP
DEVELOPMENTS LTD.

 

LONG
TERM Incentive PLAN

 

Approved by the Board of Directors on September
29, 2017, as amended on September 24, 2020, and by the Corporation’s shareholders on November 9, 2017, as amended on November
4, 2020.

 

     

     

    

 

PART I – GENERAL PROVISIONS

 

		1.	PREAMBLE AND DEFINITIONS

 

		1.1	Title.

 

The Plan described in this document
shall be called the “NioCorp Developments Ltd. Long Term Incentive Plan”.

 

		1.2	Purpose of the Plan.

 

		1.2.1	The purposes of the Plan are:

 

		(a)	to promote a further alignment of interests between officers, employees and other eligible service
providers and the shareholders of the Corporation;

 

		(b)	to potentially associate a portion of the compensation payable to officers, employees and other
eligible service providers with the returns achieved by shareholders of the Corporation; and

 

		(c)	to help attract and retain officers, employees and other eligible service providers with the knowledge,
experience and expertise required by the Corporation.

 

		1.2.2	The Plan shall serve as the successor to the Corporation’s 2016 Incentive Stock Option Plan
approved by Corporation’s shareholders on February 23, 2016 (the “Prior Plan”), and no further awards
shall be made under the Prior Plan on and after November 9, 2017. All outstanding awards under the Prior Plan immediately prior
to November 9, 2017 shall be included in the maximum number of Shares and other limitations set forth in Section 4 herein. However,
each such award shall continue to be governed solely by the terms and conditions of the instrument evidencing such grant and the
Prior Plan, and no provision of this Plan shall affect or otherwise modify the rights or obligations of holders of such awards.

 

		1.3	Definitions.

 

		1.3.1	“Affiliate(s)” shall mean a Parent or Subsidiary of the Corporation.

 

		1.3.2	“Applicable Law” means any applicable provision of law, domestic or foreign,
including, without limitation, applicable securities legislation, together with all regulations, rules, policy statements, rulings,
notices, orders or other instruments promulgated thereunder, and Stock Exchange Rules.

 

     

     

    

 

		1.3.3	“Beneficiary” means, subject to Applicable Law, an individual who has been designated
by a Participant, in such form and manner as the Board may determine, to receive benefits payable under the Plan upon the death
of the Participant, or, where no such designation is validly in effect at the time of death, the Participant’s legal representative.

 

		1.3.4	“Blackout Period” means a period of time when, pursuant to any policies of the
Corporation, any securities of the Corporation may not be traded by certain persons as designated by the Corporation, including
any holder of a Grant.

 

		1.3.5	“Board” means the Board of Directors of the Corporation.

 

		1.3.6	“Cause” means, except as otherwise provided in an applicable Grant Agreement:

 

		(a)	subject to (b) below, “just cause” or “cause” for Termination by the Corporation
or an Affiliate as determined under Applicable Law;

 

		(b)	where a Participant has a written employment agreement with the Corporation or an Affiliate, “Cause”
as defined in such employment agreement, if applicable; or

 

		(c)	where a Participant provides services as an independent contractor pursuant to a contract for services
with the Corporation or an Affiliate, any material breach of such contract.

 

		1.3.7	“Change in Control” means, except as otherwise provided in an applicable Grant
Agreement:

 

		(a)	a successful “take-over bid” (as defined in the Securities Act (British Columbia),
as amended, or any successor legislation thereto) pursuant to which the “offeror” acquires beneficial ownership of
securities of the Corporation which, directly or following conversion or exercise thereof, would entitle the holder thereof, together
with persons acting jointly or in concert with the holder thereof, to cast more than fifty percent (50%) of the votes attaching
to all securities of the Corporation which may be cast to elect directors of the Corporation, other than the acquisition of beneficial
ownership of additional securities of the Corporation by any person who, together with persons acting jointly or in concert with
such person, was entitled prior to such “take-over bid”, directly or following conversion or exercise securities of
the Corporation, to cast more than fifty percent (50%) of the votes attaching to all securities of the Corporation which may be
cast to elect directors of the Corporation;

 

     

     

    

 

		(b)	the issuance to, or acquisition by, any person, or group of persons acting jointly or in concert,
directly or indirectly, including through an arrangement or other form of reorganization, of beneficial ownership of securities
of the Corporation which, directly or following conversion or exercise thereof, would entitle the holder thereof to cast more than
fifty percent (50%) of the votes attaching to all securities of the Corporation which may be cast to elect directors of the Corporation,
other than the issuance of securities of the Corporation to, or acquisition of securities of the Corporation by, any person who,
together with persons acting jointly or in concert with such person, was entitled prior to such issuance or acquisition, directly
or following conversion or exercise securities of the Corporation, to cast more than fifty percent (50%) of the votes attaching
to all securities of the Corporation which may be cast to elect directors of the Corporation;

 

		(c)	individuals who, as of a Grant Date, constitute the Board (the “Incumbent Board”)
cease for any reason (other than death or disability) to constitute at least a majority of the Board; provided, however, that any
individual becoming a Director subsequent to the Grant Date, whose election, or nomination for election by the Corporation’s
shareholders, was approved by a vote of at least two-thirds of the Directors then comprising the Incumbent Board (either by a specific
vote or by approval of the proxy statement of the Corporation in which such person is named as a nominee for Director, without
objection to such nomination) will be considered as though such individual was a member of the Incumbent Board, but excluding for
this purpose any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on
behalf of a person other than the Directors then comprising the Board;

 

		(d)	an arrangement, amalgamation, merger or other form of reorganization of the Corporation where the
holders of the outstanding voting securities or interests of the Corporation immediately prior to the completion of the arrangement,
amalgamation, merger or reorganization will hold fifty percent (50%) or less of the votes attaching to all outstanding voting securities
or interests of the continuing entity upon completion of the arrangement, amalgamation, merger or reorganization;

 

		(e)	the sale of all or substantially all of the assets of the Corporation; or

 

		(f)	the liquidation, winding-up or dissolution of the Corporation.

 

		1.3.8	“Code” or “Internal Revenue Code” means the United States
Internal Revenue Code of 1986, as amended, and any applicable United States Treasury Regulations and other binding regulatory guidance
thereunder.

 

		1.3.9	“Corporation” means NioCorp Developments Ltd., and includes any successor corporation
or entity thereto.

 

		1.3.10	“Director” means a director of the Corporation from time to time.

 

     

     

    

 

		1.3.11	“Disability” means, except as otherwise provided in an applicable Grant Agreement:

 

		(a)	subject to (b) below, a Participant’s physical or mental incapacity that prevents him/her
from substantially fulfilling his or her duties and responsibilities on behalf of the Corporation or, if applicable, an Affiliate,
as determined by the Board and, in the case of a Participant who is an employee of the Corporation or an Affiliate, in respect
of which the Participant commences receiving, or is eligible to receive, disability benefits under the Corporation’s or Affiliate’s
long-term disability plan; or

 

		(b)	where a Participant has a written employment agreement with the Corporation or an Affiliate, “Disability”
as defined in such employment agreement, if applicable.

 

		1.3.12	“Disability Date” means, in relation to a Participant, that date determined
by the Board to be the date on which the Participant experienced a Disability.

 

		1.3.13	“Eligible Person” means a Director or an individual Employed by the Corporation
or any Affiliate, including a Service Provider, who, by the nature of his or her position or job is, in the opinion of the Board,
in a position to contribute to the success of the Corporation provided, however, that only persons who meet the definition of “employees”
under Code Section 3401(c) shall be eligible to receive Incentive Stock Options.

 

		1.3.14	“Employed” means, with respect to a Participant, that:

 

		(a)	the Participant is rendering services to the Corporation or an Affiliate (excluding services as
a Director) including as a Service Provider (referred to in Section 1.3.40 as “active Employment”); or

 

		(b)	the Participant is not actively rendering services to the Corporation or an Affiliate due to an
approved leave of absence, maternity or parental leave or leave on account of Disability.

 

For greater
certainty, a Participant shall not be considered to be Employed on a Vesting Date if, prior to such Vesting Date, such Participant
received a payment in lieu of notice of termination of employment, whether under a contract of employment, as damages or otherwise.

 

and “Employment’
has the corresponding meaning.

 

		1.3.15	“Exercise Price” means, with respect to an Option, the price payable by a Participant
to purchase one Share on exercise of such Option, which (except as otherwise provided in Section 9.2) shall not be less than one
hundred percent (100%) of the Market Price on the Grant Date of the Option covering such Share, subject to adjustment pursuant
to Section 5.

 

     

     

    

 

		1.3.16	“Form S-8” means a Form S-8 Registration Statement under the United States Securities
Act of 1933.

 

		1.3.17	“Good Reason” means, except as otherwise provided in an applicable Grant Agreement,
the occurrence of any one or more of the following without a Participant’s written consent:

 

		(a)	a material change in the Participant’s position or duties, responsibilities, titles or offices
in effect immediately prior to a Change in Control, which includes any removal of the Participant from or any failure to re-elect
or re-appoint the Participant to any such position or office;

 

		(b)	a reduction in the Participant’s overall annual compensation for services provided to the
Corporation or an Affiliate in the cumulative amount of 5% or more within a 12-month period;

 

		(c)	any change to the terms or conditions of the employment of the Participant that would constitute
“constructive dismissal” as that term is defined at common law which the Corporation or an Affiliate, as the case may
be, fails to remedy within thirty (30) days of receiving written notice from the Participant of any such change; or

 

		(d)	the Corporation or an Affiliate relocating the Participant to any place other than the location
at which the Participant reported for work on a regular basis immediately prior to a Change in Control or a place within 15 kilometres
of that location.

 

		1.3.18	“Grant” means a grant or right granted under the Plan consisting of one or more
Options, RSUs or PSUs.

 

		1.3.19	“Grant Agreement” means an agreement between the Corporation and a Participant
or other instrument or document evidencing a Grant and setting out the terms under which such Grant is made, together with such
schedules, amendments, deletions or changes thereto as are permitted under the Plan. A Grant Agreement may be in an electronic
medium and may be limited to a notation on the books and records of the Corporation. Unless otherwise determined by the Board,
a Grant Agreement does not need to be signed by a representative of the Corporation or a Participant, provided the Participant’s
agreement is expressly acknowledged.

 

		1.3.20	“Grant Date” means the effective date of a Grant (which date will not be earlier
than the date on which the Board takes action with respect thereto).

 

		1.3.21	“Grant Value” is as defined in Section 12.

 

		1.3.22	“Incentive Stock Option” means an Option that is intended to qualify as an “incentive
stock option” under Code Section 422 or any successor provision.

 

     

     

    

 

		1.3.23	“Insider” means an insider of the Corporation as defined in the rules of the
Toronto Stock Exchange Company Manual for the purpose of security based compensation arrangements.

 

		1.3.24	“Market Price” means, with respect to any particular date:

 

		(a)	if the Shares are listed on only one Stock Exchange, the closing
price per Share on such Stock Exchange on the Trading Day immediately preceding such date;

 

		(b)	if the Shares are listed on more than one Stock Exchange, the “Market Price” as determined
in accordance with paragraph (a) above for the primary Stock Exchange on which the greatest volume of trading of the Shares occurred
during the immediately preceding twenty (20) Trading Days; and

 

		(c)	if the Shares are not listed for trading on a Stock Exchange, a price which is determined by the
Board in good faith to be the fair market value of the Shares.

 

		1.3.25	“Option” means an option to purchase a Share granted by the Board to an Eligible
Person in accordance with Section 3 and Section 9.1.

 

		1.3.26	“Parent” means any parent corporation of the Corporation within the meaning
of Code Section 424(e), or any successor provision.

 

		1.3.27	“Participant” means an Eligible Person to whom a Grant is made and which Grant
or a portion thereof remains outstanding.

 

		1.3.28	“Performance Conditions” means such financial, personal, operational, transaction-based
or other performance criteria as may be determined by the Board in respect of a Grant to any Participant or Participants and set
out in a Grant Agreement. Performance Conditions may apply to an individual Participant or to the Corporation, an Affiliate, the
Corporation and its Affiliates as a whole, a business unit of the Corporation or group comprised of the Corporation and some Affiliates
or a group of Affiliates, either individually, alternatively or in any combination, and measured either in total, incrementally
or cumulatively over a specified performance period, on an absolute basis or relative to a pre-established target or milestone,
to previous years’ results or to a designated comparator group or index, or otherwise, provided that the performance period
for measurement or achievement of any such performance criteria (or incremental element thereof) shall in all events exceed one
year. When establishing Performance Conditions, the Board may exclude any or all “extraordinary items” as determined
under applicable accounting standards. The Board may provide that Performance Conditions will be adjusted to reflect events occurring
during the performance period that affect the applicable Performance Condition.

 

     

     

    

 

		1.3.29	“Performance Period” means, with respect to PSUs, the period specified by the
Board for achievement of any applicable Performance Conditions as a condition to Vesting.

 

		1.3.30	“Plan” means this NioCorp Developments Ltd. Long Term Incentive Plan, including
any schedules or appendices hereto, as may be amended from time to time.

 

		1.3.31	“Performance Share Unit” or “PSU” means a right granted to
an Eligible Person in accordance with Section 3 and Section 13.1 to receive a Share or the Market Price, as determined by the Board,
that generally becomes Vested, if at all, subject to the attainment of certain Performance Conditions and satisfaction of such
other conditions to Vesting, if any, as may be determined by the Board.

 

		1.3.32	“Restricted Share Unit” or “RSU” means a right granted to
an Eligible Person in accordance with Section 3 and Section 13.1 to receive a Share or the Market Price, as determined by the Board,
that generally becomes Vested, if at all, following a period of continuous Employment or service of the Participant.

 

		1.3.33	“Restrictive Covenant” means any obligation of a Participant to the Corporation
or an Affiliate to (A) maintain the confidentiality of information relating to the Corporation or the Affiliate and/or its business,
(B) not engage in employment or business activities that compete with the business of the Corporation or the Affiliate, (C) not
solicit employees or other service providers, customers and/or suppliers of the Corporation or the Affiliate, whether during or
after employment with the Corporation or Affiliate, and whether such obligation is set out in a Grant Agreement issued under the
Plan or other agreement between the Participant and the Corporation or Affiliate, including, without limitation, an employment
agreement, or otherwise.

 

		1.3.34	“Service Provider” means a person, other than an employee, officer or director
of the Corporation or an Affiliate, that:

 

		(a)	satisfies the Form S-8 definition of “employee”;

 

		(b)	is engaged to provide, on a bona fide basis, for an initial, renewable or extended period
of twelve (12) months or more, services to the Corporation or an Affiliate, other than services provided in relation to a distribution
of securities;

 

		(c)	provides the services under a written contract between the Corporation or an Affiliate and the
person or company; and

 

		(d)	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 an Affiliate.

 

     

     

    

 

		1.3.35	“Share” means a common share of the Corporation or, in the event of an adjustment
contemplated by Section 5.1, such other security to which a Participant may be entitled upon the exercise or settlement of a Grant
as a result of such adjustment.

 

		1.3.36	“Share Unit” means either an RSU or a PSU, as the context requires.

 

		1.3.37	“Stock Exchange” means the Toronto Stock Exchange and such other stock exchange
on which the Shares are listed, or if the Shares are not listed on any stock exchange, then on the over-the-counter market.

 

		1.3.38	“Stock Exchange Rules” means the applicable rules of any Stock Exchange upon
which Shares of the Corporation are listed.

 

		1.3.39	“Subsidiary” means, any subsidiary corporation of the Corporation within the
meaning of Code Section 424(f), or any successor provision.

 

		1.3.40	“Termination” means, except as otherwise provided in an applicable Grant Agreement,
(i) in the case of a Director, the cessation of such Director acting as same, which shall occur on the date such Director ceases
to be a Director, (ii) in the case of all Participants Employed by the Corporation or an Affiliate, the termination of a Participant’s
active Employment with the Corporation or an Affiliate (other than in connection with the Participant’s transfer to Employment
with the Corporation or another Affiliate), which shall occur on the earlier of the date on which the Participant ceases to render
services to the Corporation or Affiliate, as applicable, and the date on which the Corporation or an Affiliate, as applicable,
delivers notice of the termination of the Participant’s employment or contract for services, whether such termination is
lawful or otherwise, without giving effect to any period of notice or compensation in lieu of notice (except as expressly required
by applicable employment standards legislation), but, for greater certainty, a Participant’s absence from active work during
a period of vacation, temporary illness, authorized leave of absence, maternity or parental leave or leave on account of Disability
shall not be considered to be a “Termination”, and (iii) in the case of a Participant who does not return to active
Employment with the Corporation or an Affiliate immediately following a period of absence due to vacation, temporary illness, authorized
leave of absence, maternity or parental leave or leave on account of Disability, such cessation shall be deemed to occur on the
last day of such period of absence, and “Terminated” and “Terminates” shall be construed
accordingly.

 

		1.3.41	“Time Vesting” means any conditions relating to the passage of time or continued
service with the Corporation or an Affiliate for a period of time in respect of a Grant, as may be determined by the Board.

 

		1.3.42	“Trading Day” means a day on which the Stock Exchange is open for trading and
on which the Shares actually traded.

 

		1.3.43	“US Taxpayer” means an individual who is subject to tax under the Code in respect
of any amounts payable or Shares deliverable under this Plan.

 

     

     

    

 

		1.3.44	“Vested” means, with respect to any Option or Share Unit, that the applicable
conditions with respect to Time Vesting, achievement of Performance Conditions and/or any other conditions established by the Board
have been satisfied or, to the extent permitted under the Plan, waived, whether or not the Participant’s rights with respect
to such Grant may be conditioned upon prior or subsequent compliance with any Restrictive Covenants (and any applicable derivative
term shall be construed accordingly).

 

		1.3.45	“Vesting Date” means the date on which the applicable Time Vesting, Performance
Conditions and/or any other conditions for an Option or Share Unit becoming Vested are met, deemed to have been met or waived as
contemplated in Section 1.3.44.

 

		2.	CONSTRUCTION AND INTERPRETATION

 

		2.1	Gender, Singular, Plural. 

 

In the Plan, references to the
masculine include the feminine, and references to the singular shall include the plural and vice versa, as the context shall require.

 

		2.2	Severability. 

 

If any provision or part of the
Plan is determined to be void or unenforceable in whole or in part, such determination shall not affect the validity or enforcement
of any other provision or part thereof.

 

		2.3	Headings, Sections and Parts. 

 

Headings wherever used herein are
for reference purposes only and do not limit or extend the meaning of the provisions herein contained. A reference to a section
or schedule shall, except where expressly stated otherwise, mean a section or schedule of the Plan, as applicable. The Plan is
divided into three Parts. Part I contains provisions of general application to all Grants; Part II applies specifically to Options;
and Part III applies specifically to Share Units.

 

		3.	ADMINISTRATION

 

		3.1	Administration by the Board.

 

The Plan shall be administered
by the Board in accordance with its terms and subject to Applicable Law. Subject to and consistent with the terms of the Plan,
in addition to any authority of the Board specified under any other terms of the Plan, the Board shall have full and complete discretionary
authority to:

 

		(a)	interpret the Plan and Grant Agreements;

 

		(b)	prescribe, amend and rescind such rules and regulations and make all determinations necessary or
desirable for the administration and interpretation of the Plan and instruments of grant evidencing Grants;

 

     

     

    

 

		(c)	determine those Eligible Persons who may receive Grants as Participants, grant one or more Grants
to such Participants and approve or authorize the applicable form and terms of the related Grant Agreements;

 

		(d)	determine the terms and conditions of Grants granted to any Participant, including, without limitation,
as applicable (i) Grant Value and the number of Shares subject to a Grant, (ii) the Exercise Price for Shares subject to a Grant,
(iii) the conditions to the Vesting of a Grant or any portion thereof, including, as applicable, the period for achievement of
any applicable Performance Conditions as a condition to Vesting and conditions pertaining to compliance with Restrictive Covenants,
and the conditions, if any, upon which Vesting of any Grant or any portion thereof will be waived or accelerated without any further
action by the Board, (iv) the circumstances upon which a Grant or any portion thereof shall be forfeited or cancelled or expire,
including in connection with the breach by a Participant of any Restrictive Covenant, (v) the consequences of a Termination with
respect to a Grant, (vi) the manner of exercise or settlement of the Vested portion of a Grant, and (vii) whether, and the terms
upon which, any Shares delivered upon exercise or settlement of a Grant must be held by a Participant for any specified period
of time;

 

		(e)	determine whether, and the extent to which, any Performance Conditions or other conditions applicable
to the Vesting of a Grant have been satisfied or, to the extent permitted by Code Section 409A (to the extent applicable), shall
be waived or modified;

 

		(f)	make such rules, regulations and determinations as it deems appropriate under the Plan in respect
of any leave of absence or disability of any Participant. Without limiting the generality of the foregoing, the Board shall be
entitled to determine:

 

(i)       whether
or not any such leave of absence shall constitute a Termination within the meaning of the Plan; and

 

(ii)       the
impact, if any, of any such leave of absence on Grants issued under the Plan made to any Participant who takes such leave of absence
(including, without limitation, whether or not such leave of absence shall cause any Grants to expire and the impact upon the time
or times such Grants shall be exercisable);

 

provided that, with respect to
Options that are intended to be Incentive Stock Options, the treatment of any such leave of absence shall comply with Code Section
422 and the regulations issued thereunder;

 

     

     

    

 

		(g)	amend the terms of any Grant Agreement or other documents evidencing Grants; and

 

		(h)	determine whether, and the extent to which, adjustments shall be made pursuant to Section 5 and
the terms of such adjustments.

 

		3.2	All determinations, interpretations, rules, regulations, or other
acts of the Board respecting the Plan or any Grant shall be made in its sole discretion and shall be conclusively binding upon
all persons.

 

		3.3	The Board may prescribe terms for Grant Agreements in respect
of Eligible Persons who are subject to the laws of a jurisdiction other than Canada in connection with their participation in the
Plan that are different than the terms of the Grant Agreements for Eligible Persons who are subject to the laws of Canada in connection
with their participation in the Plan, and/or deviate from the terms of the Plan set out herein, for purposes of compliance with
Applicable Law in such other jurisdiction or where, in the Board’s opinion, such terms or deviations are necessary or desirable
to obtain more advantageous treatment for the Corporation, an Affiliate or the Eligible Person in respect of the Plan under the
Applicable Law of the other jurisdiction.

 

Notwithstanding
the foregoing, the terms of any Grant Agreement authorized pursuant to this Section 3.3 shall be consistent with the Plan having
regard to the Applicable Law of the jurisdiction in which such Grant Agreement is applicable and in no event shall contravene the
Applicable Law of Canada.

 

		3.4	The Board may, in its discretion, subject to Applicable Law,
delegate its powers, rights and duties under the Plan, in whole or in part, to a committee of the Board, or to a person or persons,
as it may determine, from time to time, on terms and conditions as it may determine, except that the Board shall not, and shall
not be permitted to delegate any such powers, rights or duties with respect to the grant, amendment, administration or settlement
of any Grant to the extent delegation is not consistent with Applicable Law and any such purported delegation or action shall not
be given effect, and provided that the composition of the committee of the Board, person or persons, as the case may be, shall
comply with Applicable Law. In addition, provided it complies with the foregoing, the Board may appoint or engage a trustee, custodian
or administrator to administer or implement the Plan or any aspect of it.

 

		3.5	In addition, the Board is authorized to take any action it determines
in its sole discretion to be appropriate subject only to the express limitations contained in this Plan, and no authorization in
any Plan section or other provision of this plan is intended or may be deemed to constitute a limitation on the authority of the
Board.

 

     

     

    

 

		4.	SHARE RESERVE

 

		4.1	Subject to Section 4.4 and any adjustment pursuant to Section
5.1, the aggregate number of Shares reserved for issuance to Participants under the Plan, together with all other security based
compensation arrangements of the Corporation, shall not exceed the number which represents ten percent (10%) of the issued and
outstanding Shares from time to time; provided that in no event shall Shares reserved for issuance upon the settlement of Share
Units exceed five percent (5%) of the issued and outstanding Shares from time to time.

 

		4.2	The aggregate number of Shares reserved for issuance to any one
Participant under the Plan, together with all other security based compensation arrangements of the Corporation, must not exceed
five percent (5%) of the aggregate issued and outstanding Shares (on a non-diluted basis).

 

		4.3	The maximum number of Shares of the Corporation

 

		(a)	issued to Insiders within any one-year period, and

 

		(b)	issuable to Insiders, at any time,

 

under the Plan,
or when combined with all of the Corporation’s other security based compensation arrangements, shall not exceed ten percent
(10%) of the number of the aggregate issued and outstanding Shares.

 

		4.4	For purposes of computing the total number of Shares available
for grant under the Plan or any other security based compensation arrangement of the Corporation, Shares subject to any Grant (or
any portion thereof) that are issued upon exercise or settlement, forfeited, surrendered, cancelled, unearned or otherwise terminated
shall again be available for grant under the Plan.

 

		5.	Alteration of Capital And Change In Control

 

		5.1	Notwithstanding any other provision of the Plan, and subject
to Applicable Law, in the event of any change in or impact to the Shares by reason of any dividend (other than dividends in the
ordinary course), split, recapitalization, reclassification, amalgamation, arrangement, merger, consolidation, spin-off, split-off,
spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants
to purchase securities, combination or exchange of Shares or distribution of rights to holders of Shares or any other relevant
changes to or impact to the authorized or issued capital of the Corporation, if the Board shall determine that an equitable adjustment
should be made, such adjustment shall, subject to Applicable Law, be made by the Board to (i) the number of Shares subject to the
Plan; (ii) the securities into which the Shares are changed or are convertible or exchangeable; (iii) any Options then outstanding;
(iv) the Exercise Price in respect of such Options; (v) the number of Share Units outstanding under the Plan; and/or (vi) other
award terms, and any such adjustment shall be conclusive and binding for all purposes of the Plan; provided, however,
that any such adjustment to the number specified in Section 9.7(f) of this Plan will be made only if and to the extent that such
adjustment would not cause any Option intended to qualify as an Incentive Stock Option to fail to so qualify. Moreover, in the
event of any such transaction or event or in the event of a Change in Control, the Board may provide in substitution for any or
all outstanding Grants under this Plan such alternative consideration (including cash), if any, as it, in good faith, may determine
to be equitable in the circumstances and shall require in connection therewith the surrender of all awards so replaced in a manner
that complies with Code Section 409A (if applicable). In addition, for each Option with an Exercise Price greater than the consideration
offered in connection with any such transaction or event or Change in Control, the Board may in its discretion elect to cancel
such Option without any payment to the person holding such Option.

 

     

     

    

 

		5.2	Nothing in the Plan shall require the Corporation to issue fractional
Shares in satisfaction of its obligations under the Plan. Any fractional interest in a Share that would, except for the provisions
of this Section 5.2, be deliverable upon the exercise of any Grant shall be cancelled and not deliverable by the Corporation.

 

		5.3	In the event of a Change in Control prior to the Vesting of a
Grant, and subject to the terms of a Participant’s written employment agreement or contract for services with the Corporation
or an Affiliate, notwithstanding the conditions as to vesting of Options and Share Units contained in any individual Grant Agreement,
if at any time within one year from the date of a Change in Control: (i) a Participant’s relationship with the Corporation
is terminated by the Corporation other than for Cause or (ii) a Participant resigns for Good Reason, all outstanding Options and
Share Units, as applicable, held by such Participant shall become Vested as of the date of such Participant’s termination
or resignation for Good Reason and the Corporation shall issue Shares to such Participants with respect to such Vested Options
and Vested Share Units, as applicable, in accordance with the provisions herein; provided that in the event that any Share Units
are subject to Performance Conditions, then the vesting of such Share Units shall accelerate only to the extent that such Performance
Conditions have been satisfied and further provided that if a Performance Condition is, in the Board’s discretion, capable
of being partially performed, then vesting shall be accelerated on a pro rata basis to reflect the degree to which the Performance
Condition has been satisfied, as determined by the Board.

 

		6.	clawback

 

		6.1	Clawback. 

 

It is a condition
of each Grant that if:

 

(i)       The
Participant fails to comply with any applicable Restrictive Covenant;

 

(ii)       the
Participant is terminated for Cause, or the Board reasonably determines after employment termination that the Participant’s
employment could have been terminated for Cause;

 

(iii)       the
Board reasonably determines that the Participant engaged in conduct that causes material financial or reputational harm to the
Corporation or its Affiliates, or engaged in gross negligence, willful misconduct or fraud in respect of the performance of the
Participant’s duties for the Corporation or an Affiliate of the Corporation; or

 

     

     

    

 

(iv)       the
Corporation’s financial statements (the “Original Statements”) are required to be restated (other than
solely as a result of a change in accounting policy by the Corporation or under International Financial Reporting Standards applicable
to the Corporation) and such restated financial statements (the “Restated Statements”) disclose, in the opinion
of the Board acting reasonably, materially worse financial results than those contained in the Original Statements,

 

then the Board may, in its sole
discretion, to the full extent permitted by governing law and to the extent it determines that such action is in the best interest
of the Corporation, and in addition to any other rights that the Corporation or an Affiliate may have at law or under any agreement,
take any or all of the following actions, as applicable:

 

		(a)	reduce the number or value of, or cancel and terminate, any one or more unvested Grants of Options
or Share Units on or prior to the applicable maturity or Vesting Dates, or cancel or terminate any outstanding Grants which have
Vested in the twelve (12) months prior to (x) the date on which the Participant fails to comply with a Restrictive Covenant, (y)
the date on which the Participant’s employment is terminated for Cause or the Board makes a determination under paragraph
(ii) or (iii) above, or (z) the date on which the Board determines that the Corporation’s Original Statements are required
to be restated, in the event paragraph (iv) above applies (each such date provided for in clause (x), (y) and (z) of this paragraph
(a) being a “Relevant Equity Recoupment Date”); and/or

 

		(b)	require payment to the Corporation of the value of any Shares of the Corporation acquired by the
Participant pursuant to a Grant in the twelve (12) months prior to a Relevant Equity Recoupment Date (less any amount paid by the
Participant to acquire such Shares and less the amount of tax withheld pursuant to the Income Tax Act (Canada) or other relevant
taxing authority in respect of such Shares).

 

		6.2	Other Recoupment. 

 

Notwithstanding anything in this
Plan to the contrary, any Grant Agreement may also provide for the cancellation or forfeiture of a Grant or the forfeiture and
repayment to the Corporation of any gain related to a Grant, or other provisions intended to have a similar effect, upon such terms
and conditions as may be required by the Board or under Section 10D of the Securities Exchange Act of 1934, as amended, and any
applicable rules or regulations promulgated by the United States Securities and Exchange Commission or any Stock Exchange.

 

     

     

    

 

		7.	MISCELLANEOUS

 

		7.1	Compliance with Laws and Policies. 

 

The Corporation’s obligation
to make any payments or deliver (or cause to be delivered) any Shares hereunder is subject to compliance with Applicable Law. Each
Participant shall acknowledge and agree (and shall be conclusively deemed to have so acknowledged and agreed by participating in
the Plan) that the Participant will, at all times, act in strict compliance with Applicable Law and all other laws and any policies
of the Corporation applicable to the Participant in connection with the Plan including, without limitation, furnishing to the Corporation
all information and undertakings as may be required to permit compliance with Applicable Law.

 

		7.2	Withholdings.

 

So as to ensure that the Corporation
or an Affiliate, as applicable, will be able to comply with the applicable obligations under any federal, provincial, state or
local law relating to the withholding of tax or other required deductions, the Corporation or the Affiliate shall withhold or cause
to be withheld from any amount payable to a Participant, either under this Plan, or otherwise, such amount as may be necessary
to permit the Corporation or the Affiliate, as applicable, to so comply. Subject to Applicable Law, the Corporation and any Affiliate
may also satisfy any liability for any such withholding obligations, on such terms and conditions as the Board may determine in
its sole discretion, by (a) requiring such Participant to sell any Shares and retaining any amount payable which would otherwise
be provided or paid to such Participant in connection with any such sale, or (b) requiring, as a condition to the delivery of Shares
hereunder, that such Participant make such arrangements as the Board may require so that the Corporation and its Affiliates can
satisfy such withholding obligations, including requiring such Participant to remit an amount to the Corporation or an Affiliate
in advance, or reimburse the Corporation or any Affiliate for, any such withholding obligations.

 

		7.3	No Right to Continued Employment. 

 

Nothing in the Plan or in any Grant
Agreement entered into pursuant hereto shall confer upon any Participant the right to continue in the employ or service of the
Corporation or any Affiliate, to be entitled to any remuneration or benefits not set forth in the Plan or a Grant Agreement or
to interfere with or limit in any way the right of the Corporation or any Affiliate to terminate Participant’s employment
or service arrangement with the Corporation or any Affiliate.

 

		7.4	No Additional Rights. 

 

Neither the designation of an individual
as a Participant nor the Grant of any Options or Share Units to any Participant entitles any person to the Grant, or any additional
Grant, as the case may be, of any Options or Share Units. For greater certainty, the Board’s decision to approve a Grant
in any period shall not require the Board to approve a Grant to any Participant in any other period; nor shall the Board’s
decision with respect to the size or terms and conditions of a Grant in any period require it to approve a Grant of the same or
similar size or with the same or similar terms and conditions to any Participant in any other period. The Board shall not be precluded
from approving a Grant to any Participant solely because such Participant may have previously received a Grant under this Plan
or any other similar compensation arrangement of the Corporation or an Affiliate. No Eligible Person has any claim or right to
receive a Grant except as may be provided in a written employment or services agreement between an Eligible Person and the Corporation
or an Affiliate.

 

     

     

    

 

		7.5	Amendment, Termination.

 

Subject to Applicable Law, the
Plan and any Grant made pursuant to the Plan may be amended, modified or terminated by the Board without approval of shareholders,
provided that no amendment to the Plan or Grants made pursuant to the Plan may be made without the consent of a Participant if
it adversely alters or impairs the rights of the Participant in respect of any Grant previously granted to such Participant under
the Plan, except that Participant consent shall not be required where the amendment is required for purposes of compliance with
Applicable Law. For greater certainty, the Plan may not be amended without shareholder approval to do any of the following:

 

		(a)	increase the maximum number of Shares issuable pursuant to the Plan and as set out in Section 4.1
(it being understood that this Section 7.5(a) will not be construed to prohibit the adjustments provided for in Section 5 of this
Plan);

 

		(b)	reduce the Exercise Price of an outstanding Option, including a cancellation of a Grant of an Option
and re-grant within three (3) months of an Option in conjunction therewith constituting a reduction of the Exercise Price of the
Option or substitution of an Option with cash or other awards the terms of which are more favorable to the Participant (it being
understood that this Section 7.5(b) will not be construed to prohibit the adjustments provided for in Section 5 of this Plan);

 

		(c)	extend the maximum term of any Grant made under the Plan;

 

		(d)	amend the assignment provisions contained in Section 7.11 or Section 11;

 

		(e)	expand the categories of individuals contained in the definition of “Eligible Person”
who are eligible to participate in the Plan;

 

		(f)	increase the number of Shares that may be issued or issuable to Insiders above the restriction
or deleting the restriction on the number of Shares that may be issued or issuable to Insiders contained in Section 4.3;

 

		(g)	include other types of equity compensation involving the issuance of Shares under the Plan;

 

     

     

    

 

		(h)	cause Incentive Stock Options to fail to meet the requirements of Code Section 422; or

 

		(i)	amend this Section 7.5 to amend or delete any of (a) through (i) above or grant additional powers
to the Board to amend the Plan or entitlements without shareholder approval.

 

For greater certainty and without
limiting the foregoing, shareholder approval shall not be required for the following amendments and the Board may make the following
changes without shareholder approval, subject to any regulatory approvals including, where required, the approval of any Stock
Exchange:

 

		(j)	amendments of a “housekeeping” nature;

 

		(k)	a change to the Vesting provisions of any Grants;

 

		(l)	a change to the termination provisions of any Grant that does not entail an extension beyond the
original term of the Grant; or

 

		(m)	amendments to the provisions relating to a Change in Control.

 

		7.6	Currency. Except where the context otherwise requires,
all references in the Plan to currency refer to lawful Canadian currency. Any amounts required to be determined under this Plan
that are denominated in a currency other than Canadian dollars shall be converted to Canadian dollars at the applicable Bank of
Canada daily rate of exchange on the date as of which the amount is required to be determined.

 

		7.7	Administration Costs. 

 

The Corporation will be responsible
for all costs relating to the administration of the Plan.

 

		7.8	Designation of Beneficiary.

 

Subject to the requirements of
Applicable Law, a Participant may designate a Beneficiary, in writing, to receive any benefits that are provided under the Plan
upon the death of such Participant. The Participant may, subject to Applicable Law, change such designation from time to time.
Such designation or change shall be in such form as may be prescribed by the Board from time to time. A Beneficiary designation
under this Section 7.8 and any subsequent changes thereto shall be filed with the chief legal officer of the Corporation.

 

     

     

    

 

		7.9	Governing Law.

 

The Plan and any Grants pursuant
to the Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia and the federal
laws of Canada applicable therein, and with respect to Participants who are US Taxpayers, with the Code and applicable federal
laws of the US. The Board may provide that any dispute to any Grant shall be presented and determined in such forum as the Board
may specify, including through binding arbitration. Any reference in the Plan, in any Grant Agreement issued pursuant to the Plan
or in any other agreement or document relating to the Plan to a provision of law or rule or regulation shall be deemed to include
any successor law, rule or regulation of similar effect or applicability. To the extent applicable, with respect to Participants
who are US Taxpayers, this Plan shall be interpreted in accordance with the requirements of Code Section 409A and the regulations,
notices, and other guidance of general applicability issued thereunder. To the extent that any provision of this Plan would prevent
any Option that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and void
with respect to such Option, but will remain in effect for other Options and there will be no further effect on any provision of
this Plan. Notwithstanding anything in this Plan to the contrary, the provisions of Exhibit “A” to this Plan shall
apply with respect to Participants who are US Taxpayers

 

		7.10	Assignment.

 

The
Plan shall inure to the benefit of and be binding upon the Corporation, its successors and assigns.

 

		7.11	Transferability.

 

		7.11.1	Unless otherwise provided in the Plan or in the applicable Grant Agreement in accordance with Section
7.11.2, no Grant, and no rights or interests therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged
or otherwise hypothecated or disposed of by a Participant other than by testamentary disposition by the Participant or the laws
of intestate succession. No such interest shall be subject to execution, attachment or similar legal process including without
limitation seizure for the payment of the Participant’s debts, judgments, alimony or separate maintenance. In no event will
any Grant under the Plan be transferred for value.

 

		7.11.2	Notwithstanding the foregoing, with respect to Participants who are not US Taxpayers, the Board
may provide in the applicable Grant Agreement that a Grant is transferable or assignable (a) in the case of a transfer without
the payment of any consideration, to the Participant’s spouse, former spouse, children, stepchildren, grandchildren, parent,
stepparent, grandparent, sibling, persons having one of the foregoing types of relationship with a Participant due to adoption
and any entity in which these persons (or the Participant) own more than fifty percent (50%) of the voting interests and (b) to
an entity in which more than fifty percent (50%) voting interests are owned by these persons (or the Participant) in exchange for
an interest in that entity. Following any such transfer or assignment, the Grant shall remain subject to substantially the same
terms applicable to the Grant while held by the Participant to whom it was granted, as modified as the Board shall determine appropriate,
and, as a condition to such transfer, the transferee shall execute an agreement agreeing to be bound by such terms. Any purported
assignment or transfer that does not qualify under this Section 7.11.2 shall be void and unenforceable against the Corporation.

 

     

     

    

 

		7.12	Substitute Awards

 

Grants
may be made under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, restricted
share units or performance share units held by awardees of an entity engaging in a corporate acquisition or merger transaction
with the Corporation or any Subsidiary. Any conversion, substitution or assumption will be effective as of the close of the merger
or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Code Section 409A. The Grants so
made may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other
specific terms of this Plan, and may account for Shares substituted for the securities covered by the original awards and the number
of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted
to account for differences in stock prices in connection with the transaction.

 

		8.	EFFECTIVE DATE AND TERM

 

		8.1	The Plan was approved by the Board on September 29, 2017, as
amended on September 24, 2020, and by the Corporation’s shareholders on November 9, 2017, as amended on ________, 2020 (the
“Amended Effective Date”). This Plan will remain in effect, unless sooner
terminated as provided herein, until November 9, 2030, at which time it will terminate. After this Plan is terminated, no Grants
may be granted hereunder but Grants previously granted will remain outstanding in accordance with their applicable terms and conditions
and this Plan’s terms and conditions.

 

PART II – OPTIONS

 

		9.	Options

 

		9.1	The Corporation may, from time to time, make one or more Grants
of Options to Eligible Persons on such terms and conditions, consistent with the Plan, as the Board shall determine. In granting
such Options, subject to the provisions of the Plan, the Corporation shall specify,

 

		(a)	the maximum number of Shares which the Participant may purchase under the Options;

 

		(b)	the Exercise Price at which the Participant may purchase his or her Shares under the Options; and

 

		(c)	the term of the Options, to a maximum of ten (10) years from the Grant Date of the Options, the
Vesting period or periods within this period during which the Options or a portion thereof may be exercised by a Participant and
any other Vesting conditions (including Performance Conditions).

 

		9.2	The Exercise Price for each Share subject to an Option shall
be fixed by the Board but under no circumstances (except with respect to Grants under Section 7.12 of this Plan) shall any Exercise
Price be less than one hundred percent (100%) of the Market Price on the Grant Date of such Option.

 

     

     

    

 

		9.3	Subject to the provisions of the Plan and, upon prior approval
of the Board, once an Option has Vested and become exercisable a Participant may elect, in lieu of exercising such Option, to surrender
such Option in exchange for the issuance of Shares equal to the number determined by dividing (a) the difference between the Market
Price (calculated as at the date of settlement) and the Exercise Price of such Option by (b) the Market Price (calculated as at
the date of settlement). An Option may be surrendered and disposed of pursuant to this Section 9.3 from time to time by delivery
to the Board at the head office of the Corporation or such other place as may be specified by the Board, of (a) a written notice
specifying that net settlement will be effectuated for such Option and the number of Options to be exercised and (b) the payment
of an amount for any tax withholding or remittance obligations of the Participant or the Corporation arising under applicable law
(or by entering into some other arrangement acceptable to the Board). The Corporation will not be required, upon the net settlement
of any Options pursuant to this Section 9.3, to issue fractions of Shares or to distribute certificates which evidence fractional
Shares. In the event the number of Shares to be issued upon the net settlement of an Option is a fraction, the Participant will
receive the next lowest whole number of Shares and will not receive any other form of compensation (cash or otherwise) for the
fractional interest.

 

		9.4	Unless otherwise designated by the Board in the applicable Grant
Agreement and subject to Section 9.6, any Options included in a Grant shall expire on the tenth anniversary of the Grant Date (unless
exercised or terminated earlier in accordance with the terms of the Plan or the Grant Agreement). 

 

		9.5	Subject to the provisions of the Plan and the terms governing
the granting of the Option, and subject to payment or other satisfaction of all related withholding obligations in accordance with
Section 7.2, Vested Options or a portion thereof may be exercised from time to time by delivery to the Corporation at its registered
office of a notice in writing signed by the Participant or the Participant’s legal personal representative, as the case may
be, and addressed to the Corporation. This notice shall state the intention of the Participant or the Participant’s legal
personal representative to exercise the said Options and the number of Shares in respect of which the Options are then being exercised
and must be accompanied by payment in full of the Exercise Price under the Options which are the subject of the exercise.

 

		9.6	If the normal expiry date of any Option, other than an Incentive
Stock Option, falls within any Blackout Period or within ten (10) business days (being a day other than a Saturday, Sunday or other
than a day when banks in Vancouver, British Columbia are not generally open for business) following the end of any Blackout Period,
then the expiry date of such Option shall, without any further action, be extended to the date that is ten (10) business days following
the end of such Blackout Period. The foregoing extension applies to all Options whatever the Grant Date (other than Incentive Stock
Options and other than an extension beyond the original term of the Options in the case of Options held by a US Taxpayer) and shall
not be considered an extension of the term of the Options as referred to in Section 7.5.

 

     

     

    

 

		9.7	Notwithstanding anything in this Plan to the contrary, for Options
that are intended to qualify as Incentive Stock Options and granted to a US Taxpayer, the following additional provisions will
apply:

 

		(a)	Except as permitted by Code Section 424(a), or any successor provision, the Exercise Price per
Share shall not be less than one hundred percent (100%) of the per Share Market Price on the Grant Date of the Incentive Stock
Option; provided, however, that if a Participant owns shares possessing more than ten percent (10%) of the total combined voting
power of all classes of shares of the Corporation or of its Parent or any Subsidiary, the Exercise Price per Share of an Incentive
Stock Option granted to such Participant shall not be less than one hundred ten percent (110%) of the Market Price on the Grant
Date of the Incentive Stock Option.

 

		(b)	Except as permitted by Code Section 424(a), in no event shall any Incentive Stock Option be exercisable
during a term of more than ten (10) years after the Grant Date of the Incentive Stock Option; provided, however, that if a Participant
owns shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Corporation
or of its Parent or any Subsidiary, the Incentive Stock Option granted to such Participant shall be exercisable during a term of
not more than five (5) years after the Grant Date.

 

		(c)	The Corporation or its Affiliate shall withhold and deduct from any future payments to the Participant
all legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s
exercise of an Incentive Stock Option or a “disqualifying disposition” of Shares acquired through the exercise of an
Incentive Stock Option as defined in Code Section 421(b).

 

		(d)	Notwithstanding any other provision of the Plan, the aggregate fair market value (determined as
of the Grant Date of the Incentive Stock Option) of the Shares with respect to which Incentive Stock Options are exercisable for
the first time by a Participant during any calendar year under the Plan and any other “incentive stock option” plans
of the Corporation or any Affiliate, shall not exceed US$100,000 (or such other amount as may be prescribed by the Code from time
to time); provided, however, that if the exercisability or Vesting of an Incentive Stock Option is accelerated as permitted under
the provisions of the Plan and such acceleration would result in a violation of the limit imposed by this Section 9.7(d), such
acceleration shall be of full force and effect but the number of Shares that exceed such limit shall be treated as having been
granted pursuant to an Option that is not an Incentive Stock Option; and provided, further, that the limits imposed by this Section
9.7(d) shall be applied to all outstanding Incentive Stock Options under the Plan and any other “incentive stock option”
plans of the Corporation or any Affiliate in chronological order according to the dates of grant.

 

     

     

    

 

		(e)	The Grant Agreement in respect of any Incentive Stock Option shall contain such other limitations
and restrictions upon the exercise of the Incentive Stock Option as the Board shall deem necessary to ensure that such Incentive
Stock Option will be considered an “incentive stock option” as defined in Code Section 422 or to conform to any change
therein.

 

		(f)	Notwithstanding anything to the contrary contained in this Plan, and subject to adjustment as provided
in Section 5 of this Plan, the aggregate number of Shares actually issued or transferred by the Corporation upon the exercise of
Incentive Stock Options will not exceed 23,811,009 Shares; provided, however, that such limit will increase by 3,000,000 shares
on each of the first and second anniversaries of the Amended Effective Date, subject to the aggregate share limitations set forth
in section 4.1.

 

		9.8	Options granted under this Plan may not provide for any dividends
or dividend equivalents thereon.

 

		10.	Termination of Employment and Death of a Participant – Options

 

		10.1	Outstanding Options held by a Participant (or the executors or
administrators of such Participant’s estate, any person or persons who acquire the right to exercise Options directly from
the Participant by bequest or inheritance or any other permitted transferee of the Participant under Section 11) as of the Participant’s
date of Termination shall be subject to the provisions of this Section 10, as applicable; except that, in all events, the period
for exercise of Options shall end no later than the last day of the maximum term thereof established under Sections 9.1(c), 9.6,
9.7(b) or 10.5, as the case may be.

 

		10.2	Except as otherwise provided in the applicable Grant Agreement,
and subject to Section 10.1 and Section 10.6, in the case of a Participant’s Termination due to death, or in the case of
the Participant’s Disability (i) those of the Participant’s outstanding Options that have not become Vested prior to
such date of death or Disability Date shall be forfeited and cancelled as of such date and (ii) those of the Participant’s
outstanding Options that have become Vested prior to the Participant’s date of death or Disability Date shall continue to
be exercisable during the twelve (12) month period following the such date of death or Disability Date, as the case may be.

 

		10.3	Except as otherwise provided in the applicable Grant Agreement,
and subject to Section 10.1 and Section 10.6, in the case of a Participant’s Termination due to the termination of the Participant’s
employment or termination of the Participant’s contract for services by the Corporation or an Affiliate without Cause, (i)
those of the Participant’s outstanding Options that have not become Vested prior to the Participant’s Termination shall
be forfeited and cancelled as of such date and (ii) those of the Participant’s outstanding Options that have become Vested
prior to the Participant’s Termination shall continue to be exercisable during the one hundred and twenty (120) day period
following the Participant’s Date of Termination.

 

     

     

    

 

		10.4	Except as otherwise provided in the applicable Grant Agreement,
and subject to Section 10.6, in the case of a Participant’s Termination due to the Participant’s resignation (including
the voluntary withdrawal of services by a Participant who is not an employee under Applicable Law), (i) those of the Participant’s
outstanding Options that have not become Vested prior to the date on which the Participant provides notice to the Corporation of
his or her resignation shall be forfeited and cancelled as of such date, and (ii) those of the Participant’s outstanding
Options that have become Vested prior to the date on which the Participant provides notice to the Corporation of his or her resignation
shall continue to be exercisable during the ninety (90) day period following the Participant’s date of Termination.

 

		10.5	Notwithstanding the foregoing, with respect to any Option that
is intended to be an Incentive Stock Option, such Option shall not be exercisable for a period that is longer than (i) three (3)
months from the date of the Participant’s Termination for any reason other than death or disability (as defined in Code Section
22(e)), or (ii) twelve (12) months from the Participant’s Termination due to disability (as defined in Code Section 22(e))
or death.

 

		10.6	In addition to the Board’s rights under Section 3.1, the
Board may, subject to Section 10.5, at the time of a Participant’s Termination or Disability Date, extend the period for
exercise of some or all of the Participant’s Options, but not beyond the original expiry date, and/or allow for the continued
Vesting of some or all of the Participant’s Options during the period for exercise or a portion of it. Options that are not
exercised prior to the expiration of the exercise period, including any extended exercise period authorized pursuant to this Section
10.6, following a Participant’s date of Termination or Disability Date, as the case may be, shall automatically expire on
the last day of such period.

 

		10.7	Notwithstanding any other provision hereof or in any Grant Agreement,
in the case of a Participant’s termination of employment or termination of the Participant’s contract for services
for Cause, any and all then outstanding Options granted to the Participant, whether or not then exercisable, shall be immediately
forfeited and cancelled, without any consideration therefore, as of the commencement of the day that notice of such termination
is given.

 

		10.8	For greater certainty, a Participant shall have no right to receive
Shares or a cash payment, as compensation, damages or otherwise, with respect to any Options that do not become Vested or that
are not exercised before the date on which the Options expire.

 

		11.	Transferability of OPtions – us taxpayer

 

		11.1	Notwithstanding Section 7.11, with respect to Participants who
are US Taxpayers, no Incentive Stock Option shall be transferable by the Participant, in whole or in part, other than by will or
by the laws of descent and distribution. If the Participant shall attempt any transfer of any Incentive Stock Option, such transfer
shall be void and the Incentive Stock Option shall terminate.

 

		11.2	Further, with respect to Participants who are US Taxpayers, Options
that are not Incentive Stock Options shall be transferable, in whole or in part, by the Participant by will or by the laws of descent
and distribution. In addition, the Board may, in its sole discretion, permit the Participant to transfer any or all such Options
to any “family member” in accordance with Form S-8; provided, however, that the Participant cannot receive any consideration
for the transfer and such transferred Stock Option shall continue to be subject to the same terms and conditions as were applicable
to such Option immediately prior to its transfer. 

 

     

     

    

 

PART III – SHARE UNITS

 

		12.	DEFINITIONS

 

		12.1	“Grant Value” means the dollar amount allocated to
an Eligible Person in respect of a Grant of Share Units as contemplated by Section 3.

 

		12.2	“Share Unit Account”
has the meaning set out in Section 14.1.

 

		12.3	“Valuation Date”
means the date as of which the Market Price is determined for purposes of calculating the number of Share Units included in a Grant,
which unless otherwise determined by the Board shall be the Grant Date.

 

		12.4	“Vesting Period”
means, with respect to a Grant of Share Units, the period specified by the Board, commencing on the Grant Date and ending on the
last Vesting Date for such Share Units.

 

		13.	Eligibility and Grant Determination.

 

		13.1	The Board may from time to time make one or more Grants of Share
Units to Eligible Persons on such terms and conditions, consistent with the Plan, as the Board shall determine, provided that,
in determining the Eligible Persons to whom Grants are to be made and the Grant Value for each Grant, the Board shall take into
account the terms of any written employment agreement or contract for services between an Eligible Person and the Corporation or
any Affiliate and may take into account such other factors as it shall determine in its sole and absolute discretion.

 

		13.2	The Board shall determine the Grant Value and the Valuation Date
(if not the Grant Date) for each Grant under this Part III. Unless otherwise determined by the Board, the number of Share Units
to be covered by each such Grant shall be determined by dividing the Grant Value for such Grant by the Market Price of a Share
as at the Valuation Date for such Grant, rounded up to the next whole number.

 

		13.3	Each Grant Agreement issued in respect of Share Units shall set
forth, at a minimum, the type of Share Units and Grant Date of the Grant evidenced thereby, the number of RSUs or PSUs subject
to such Grant (which number, in the case of PSUs, may be subject to adjustment to reflect changes in compensation, job duties or
other factors), the applicable Vesting conditions, the applicable Vesting Period(s) and the treatment of the Grant upon Termination
and may specify such other terms and conditions consistent with the terms of the Plan as the Board shall determine or as shall
be required under any other provision of the Plan. The Board may include in a Grant Agreement under this Part III terms or conditions
pertaining to confidentiality of information relating to the Corporation’s operations or businesses which must be complied
with by a Participant including as a condition of the grant or Vesting of Share Units. Nothing in this Plan prevents a Participant
from providing, without prior notice to the Corporation, information to governmental authorities regarding possible legal violations
or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible
legal violations.

 

     

     

    

 

		14.	ACCOUNTS AND DIVIDEND EQUIVALENTS

 

		14.1	Share Unit Account.

 

An account, called a “Share
Unit Account”, shall be maintained by the Corporation, or an Affiliate, as specified by the Board, for each Participant
who has received a Grant of Share Units and will be credited with such Grants of Share Units as are received by a Participant from
time to time pursuant to Section 13 and any dividend equivalent Share Units pursuant to Section 14.2. Share Units that fail to
Vest to a Participant and are forfeited pursuant to Section 15, or that are paid out to the Participant or his or her Beneficiary,
shall be cancelled and shall cease to be recorded in the Participant’s Share Unit Account as of the date on which such Share
Units are forfeited or cancelled under the Plan or are paid out, as the case may be. For greater certainty, where a Participant
is granted both RSUs and PSUs, such RSUs and PSUs shall be recorded separately in the Participant’s Share Unit Account.

 

		14.2	Dividend Equivalent Share Units.

 

Except as otherwise provided in
the Grant Agreement relating to a Grant of RSUs or PSUs, if and when cash dividends (other than extraordinary or special dividends)
are paid with respect to Shares to shareholders of record as of a record date occurring during the period from the Grant Date under
the Grant Agreement to the date of settlement of the RSUs or PSUs granted thereunder, a number of dividend equivalent RSUs or PSUs,
as the case may be, shall be credited to the Share Unit Account of the Participant who is a party to such Grant Agreement. The
number of such additional RSUs or PSUs will be calculated by dividing the aggregate dividends or distributions that would have
been paid to such Participant if the RSUs or PSUs in the Participant’s Share Unit Account had been Shares by the Market Price
on the date on which the dividends or distributions were paid on the Shares. The additional RSUs or PSUs granted to a Participant
will be subject to the same terms and conditions, including Vesting and settlement terms, as the corresponding RSUs or PSUs, as
the case may be.

 

		15.	VESTING AND SETTLEMENT OF SHARE UNITS

 

		15.1	Continued Employment.

 

Subject to this Section 15 and
the applicable Grant Agreement, Share Units subject to a Grant and dividend equivalent Share Units credited to the Participant’s
Share Unit Account in respect of such Share Units shall Vest in such proportion(s) and on such Vesting Date(s) as may be specified
in the Grant Agreement governing such Grant provided that the Participant is Employed or acting as a Director on the relevant Vesting
Date.

 

     

     

    

 

		15.2	Settlement.

 

A Participant’s RSUs and
PSUs, adjusted in accordance with the applicable multiplier, if any, as set out in the Grant Agreement, and rounded down to the
nearest whole number of RSUs or PSUs, as the case may be, shall be settled, by a distribution as provided below to the Participant
or his or her Beneficiary, upon, or as soon as reasonably practicable following, the Vesting thereof in accordance with Section
15.1 or 15.6, as the case may be, subject to the terms of the applicable Grant Agreement. In all events RSUs and PSUs will be settled
on or before the earlier of the ninetieth (90th) day following the Vesting Date and the date that is two and one half
(21⁄2) months after the end of the year in which Vesting occurred, except as otherwise provided in an applicable Grant Agreement
in compliance with Code Section 409A. Settlement shall be made by the issuance of one Share for each RSU or PSU then being settled,
as specified in the applicable Grant Agreement, and subject to payment or other satisfaction of all related withholding obligations
in accordance with Section 7.2.

 

		15.3	Postponed Settlement.

 

Except as otherwise determined
by the Board in compliance with Code Section 409A, if a Participant’s Share Units would, in the absence of this Section 15.3
be settled within a Blackout Period applicable to such Participant, such settlement shall be postponed until the Trading Day following
the date on which such Blackout Period ends (or as soon as practicable thereafter).

 

		15.4	Failure to Vest. 

 

For greater certainty, except as
otherwise provided in the applicable Grant Agreement, a Participant shall have no right to receive Shares or a cash payment, as
compensation, damages or otherwise, with respect to any RSUs or PSUs that do not become Vested.

 

		15.5	Resignation. 

 

Except as otherwise provided in
the applicable Grant Agreement and Section 15.7, in the event a Participant’s employment is Terminated as a result of the
Participant`s resignation, no Share Units that have not Vested prior to the date on which the Participant submits his or her resignation,
including dividend equivalent Share Units in respect of such Share Units, shall Vest and all such Share Units shall be forfeited
immediately.

 

		15.6	Termination of Employment without Cause; Death or Disability.

 

Except
as otherwise provided in the applicable Grant Agreement, in the case of a Participant`s Termination without Cause or due to death
or Disability of a Participant, all Share Units granted to the Participant that have Vested as at the date of Termination shall
be paid to the Participant or Participant’s estate, as applicable, in accordance with the settlement provisions herein. Any
Share Units that have not Vested as at the date of Termination will be immediately cancelled and forfeited to the Corporation,
provided that if any unvested Share Units are subject to Performance Conditions, then if a Performance Condition is, in the Board’s
discretion, capable of being partially performed, such unvested Share Units shall become Vested Share Units as at the date of Termination
on a pro rata basis to reflect the degree to which the vesting condition has been satisfied, as determined by the Board (and in
all cases except as otherwise provided in the applicable Grant Agreement).

 

     

     

    

 

		15.7	Extension of Vesting.

 

The Board may, at the time of Termination
or a Disability Date, extend the period for Vesting of Share Units, but not beyond the original end of the applicable Vesting Period,
or accelerate the Vesting of Share Units. With respect to U.S. Taxpayers, any such modification shall be made in compliance with
Code Section 409A.

 

		15.8	Termination of Employment for Cause. 

 

In the event a Participant’s
employment is Terminated for Cause by the Corporation, no Share Units that have not Vested prior to the date of the Participant’s
Termination for Cause, including dividend equivalent Share Units in respect of such Share Units, shall Vest and all such Share
Units shall be forfeited immediately.

 

		16.	SHAREHOLDER RIGHTS

 

		16.1	No Rights to Shares. 

 

Share Units are not Shares and
a Grant of Share Units will not entitle a Participant to any shareholder rights, including, without limitation, voting rights,
dividend entitlement (except as provided in Section 14.2) or rights on liquidation until the allotment and issuance to the Participant
of a certificate or certificates in the name of the Participant or a statement of account representing the Shares to which such
Share Units relate.

 

     

     

    

 

Exhibit “A”

 

to

 

NioCorp Developments Ltd. Long Term Incentive
Plan

 

Special Provisions Applicable to US
Taxpayers

 

This Exhibit sets forth special provisions
of the NioCorp Developments Ltd. Long Term Incentive Plan (the “Plan”) that apply to Participants who are US Taxpayers.
This Exhibit shall apply to such Participants notwithstanding any other provisions of the Plan. Terms defined elsewhere in the
Plan and used herein shall have the meanings set forth in the Plan, as may be amended from time to time.

 

Definitions

 

“Eligible Person” means,
solely with respect to Options, a Director or an individual with respect to which the Corporation would be an eligible issuer of
“service recipient stock” for purposes of Section 409A of the Code who (i) meets the Form S-8 definition of “employee”
and (ii) by the nature of his or her position or job is, in the opinion of the Board, in a position to contribute to the success
of the Corporation; provided, however, that only persons who meet the definition of “employees” under Code Section
3401(c) shall be eligible to receive Incentive Stock Options.

 

“Good Reason” means,
except as otherwise provided in applicable Grant Agreement, the occurrence of any one or more of the following without a Participant’s
written consent:

 

(i)         a
material diminution in the Participant’s duties, responsibilities, or authority in effect immediately prior to a Change in
Control;

 

(ii)        a
material diminution in the aggregate value of base salary and bonus opportunity provided to the Participant for services provided
to the Corporation or an Affiliate;

 

(iii)        the
Corporation or an Affiliate relocating the Participant’s primary office to any place other than the location at which the
Participant reported for work on a regular basis immediately prior to a Change in Control or a place within 50 miles of that location;
or

 

(iv)       Any
other action or inaction by the Corporation constituting a material breach of an effective employment arrangement or agreement
with the Participant.

 

A Participant
must notify the Corporation of the Participant’s intention to invoke Termination for Good Reason within 90 days after the
occurrence of such event and provide the Corporation 30 days’ opportunity for cure, and the Participant must actually terminate
the Participant’s employment with the Corporation prior to the 365th day following such occurrence or such event shall not
constitute Good Reason.

 

     

     

    

 

“Market Price” means,
solely with respect to the term “Exercise Price”, (a) if the Shares are listed on only one Stock Exchange, the closing
price per Share on such Stock Exchange on the Trading Day immediately preceding the Grant Date, or, if there are no sales on such
date, on the next preceding Trading Day on which a sale occurred; (b) if the Shares are listed on more than one Stock Exchange,
the fair market value as determined in accordance with paragraph (a) above for the primary Stock Exchange on which the Shares are
listed, as determined by the Board; and (c) if the Shares are not listed for trading on a Stock Exchange, a price which is determined
by the Board in good faith to be the fair market value of the Shares in compliance with the Code Section 409A. The Board is authorized
to adopt another fair market value pricing method provided such method is stated in the applicable Grant Agreement and is in compliance
with the fair market value pricing rules set forth in Code Section 409A.

 

Section 409A

 

Notwithstanding anything in the Plan to
the contrary, unless the applicable Grant Agreement provides otherwise, settlement of Share Units will in all events occur within
the “short-term deferral” period determined under Treasury Regulation Section 1.409A-1(b)(4).

 

To the extent applicable, it is intended
that this Plan and any Grants made hereunder comply with or be exempt from the provisions of Section 409A of the Code, so that
the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants. This Plan and any grants made
hereunder will be administered in a manner consistent with this intent. Any reference in this Plan to Section 409A of the Code
will also include any regulations or any other formal guidance promulgated with respect to such section by the U.S. Department
of the Treasury or the Internal Revenue Service.

 

Neither a Participant nor any of a Participant’s
creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A of the
Code) payable under this Plan and Grants hereunder to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment or garnishment. Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of
Section 409A of the Code) payable to a Participant or for a Participant’s benefit under this Plan and Grants hereunder may
not be reduced by, or offset against, any amount owed by a Participant to the Corporation or any of its Affiliates.

 

If, at the time of a Participant’s
separation from service (within the meaning of Section 409A of the Code), (a) the Participant will be a specified employee (within
the meaning of Section 409A of the Code and using the identification methodology selected by the Corporation from time to time)
and (b) the Corporation makes a good faith determination that an amount payable hereunder constitutes deferred compensation (within
the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set
forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Corporation will
not pay such amount on the otherwise scheduled payment date but will instead pay it, without interest, on the fifth business day
of the seventh month after such separation from service (or, if earlier, upon the Participant’s death).

 

Notwithstanding any provision of this
Plan and Grants hereunder to the contrary, in light of the uncertainty with respect to the proper application of Section
409A of the Code, the Corporation reserves the right to make amendments to this Plan and Grants hereunder as the Corporation
deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a
Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a
Participant or for a Participant’s account in connection with this Plan and Grants hereunder (including any taxes and
penalties under Section 409A of the Code), and neither the Corporation nor any of its affiliates will have any obligation to
indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

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