Document:

Exhibit 10.19

 

WARRANT

TO
PURCHASE SHARES OF COMMON STOCK

 

NUGENE INTERNATIONAL,
INC.

A Nevada Corporation

 

THIS WARRANT HAS
BEEN, AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED PURSUANT TO THE EXERCISE OF THIS WARRANT (THE “WARRANT SHARES”)
WILL BE, ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF. NEITHER
THIS WARRANT NOR THE WARRANT SHARES (TOGETHER, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
THAT SUCH DISPOSITION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND OF ANY APPLICABLE
STATE SECURITIES LAWS. THIS WARRANT MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE,
PLEDGE OR OTHER TRANSFER OF ANY INTEREST IN ANY OF THE SHARES REPRESENTED BY THIS WARRANT.

 

	Warrant No.:	December  , 2015
	 	Irvine, California

 

THIS CERTIFIES THAT,
for value received, [NAME] (the “Holder”) is entitled to subscribe for and purchase from NUGENE INTERNATIONAL, INC.,
a Nevada corporation (the “Company”), [            ] shares
of the Company's Common Stock (as adjusted pursuant to Section 2 hereof) (the “Warrant Shares”) at the purchase price
of $0.001 per share (as adjusted pursuant to Section 2 hereof) (the “Exercise Price”), upon the terms and subject to
the conditions hereinafter set forth. This Warrant is issued in connection with a consulting agreement entered into by the parties
effective as of this date between the Company and the Holder and is subject to the terms thereof. Capitalized terms used herein,
but not otherwise defined, shall have the meanings ascribed to such terms in that consulting agreement.

 

     

     

    

  

1.           Exercise
Rights.

 

(a)          Cash
Exercise. The purchase rights represented by this Warrant may be exercised by the Holder at any time during the term hereof,
in whole or in part commencing the date hereof, by surrender of this Warrant and delivery of a completed and duly executed Notice
of Cash Exercise, in the form attached as Exhibit A hereto, accompanied by payment to the Company of an amount equal top
the Exercise Price then in effect multiplied by the number of Warrant Shares to be purchased by the Holder in connection with such
cash exercise of this Warrant, which amount may be paid, at the election of the Holder, by wire transfer, delivery of a check payable
to the order of the Company or delivery of a promissory note made by the Company for whole or partial cancellation, or any combination
of the foregoing, to the principal offices of the Company. The exercise of this Warrant shall be deemed to have been effected on
the day on which the Holder surrenders this Warrant to the Company and satisfies all of the requirements of this Section. Upon
such exercise, the Holder will be deemed a shareholder of record of those Warrant Shares for which the Warrant has been exercised
with all rights of a shareholder (including, without limitation, all voting rights with respect to such Warrant Shares and all
rights to receive any dividends with respect to such Warrant Shares). If this Warrant is to be exercised in respect of less than
all of the Warrant Shares covered hereby, the Holder shall be entitled to receive a new warrant covering the number of Warrant
Shares in respect of which this Warrant shall not have been exercised and for which it remains subject to exercise. Such new warrant
shall be in all other respects identical to this Warrant.

 

(b)          Additional
Conditions to Exercise of Warrant. Unless there is a registration statement declared or ordered effective by the Securities
and Exchange Commission (the “Commission”) under the Securities Act which includes the Warrant Shares to be issued
upon the exercise of the rights represented by this Warrant, such rights may not be exercised unless and until:

 

(i)          
the Company shall have received an Investment Representation Statement, in the form attached as Exhibit C hereto, certifying
that, among other things, the Warrant Shares to be issued upon the exercise of the rights represented by this Warrant are being
acquired for investment and not with a view to any sale or distribution thereof; and

 

(ii)         each
certificate evidencing the Warrant Shares to be issued upon the exercise of the rights represented by this Warrant shall be stamped
or imprinted with a legend substantially in the following form:

 

    	 	-2-	 

     

    

  

THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT FOR DISTRIBUTION, AND HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT. COPIES OF
THE AGREEMENTS COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST
MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY.
THIS CERTIFICATE MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, PLEDGE OR OTHER
TRANSFER OF ANY INTEREST IN ANY OF THE SHARES REPRESENTED BY THIS CERTIFICATE.

 

(c)          Fractional
Shares. Upon the exercise of the rights represented by this Warrant, the Company shall not be obligated to issue fractional
shares of Common Stock, and in lieu thereof, the Company shall pay to the Holder an amount in cash equal to the Fair Market Value
per share of Common Stock immediately prior to such exercise multiplied by such fraction (rounded to the nearest cent).

 

(d)          Expiration
of Warrant. This Warrant shall expire at 5:00 p.m. Los Angeles time on December , 2018 and shall thereafter no longer be
exercisable or have any value whatever.

 

(e)          Record
Ownership of Warrant Shares. The Warrant Shares shall be deemed to have been issued, and the person in whose name any certificate
representing Warrant Shares shall be issuable upon the exercise of the rights represented by this Warrant (as indicated in the
appropriate Notice of Exercise) shall be deemed to have become the holder of record of (and shall be treated for all purposes as
the record holder of) the Warrant Shares represented thereby, immediately prior to the close of business on the date or dates upon
which the rights represented by this Warrant are exercised in accordance with the terms hereof.

 

(f)          Stock
Certificates. In the event of any exercise of the rights represented by this Warrant, certificates for the Warrant Shares
so purchased pursuant hereto shall be delivered to the Holder promptly and, unless this Warrant has been fully exercised or has
expired, a new Warrant representing the Warrant Shares with respect to which this Warrant shall not have been exercised shall also
be issued to the Holder within such time.

 

(g)          Issue
Taxes. The issuance of certificates for shares of stock upon the exercise of the rights represented by this Warrant shall
be made without charge to the Holder for any issuance tax in respect thereof; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than that of the Holder of the Warrant.

 

    	 	-3-	 

     

    

 

(h)          Conditional
Exercise. The Holder of this Warrant shall have the right to submit a notice of exercise of this Warrant conditional upon
an acquisition of the Company. If such transaction upon which such exercise is conditioned is not consummated, such notice of exercise
shall be deemed of no further force or effect. For the purposes hereof, the Fair Market Value for the purposes of Section 1(b)
hereto shall be the value of the consideration payable or issuable to the holders of the Company's Common Stock.

 

(i)          Stock
Fully Paid; Reservation of Shares. All Warrant Shares that may be issued upon the exercise of the rights represented by
this Warrant, upon issuance, will be duly and validly issued, will be fully paid and nonassessable, will not violate any preemptive
rights or rights of first refusal, will be free from restrictions on transfer other than restrictions on transfer imposed by applicable
federal and state securities laws, will be issued in compliance with all applicable federal and state securities laws, and will
have the rights, preferences and privileges described in the Company's Articles of Incorporation, as amended; and the Warrant Shares
will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Holder through no
action of the Company. During the period within which the rights represented by the Warrant may be exercised, the Company will
at all times have authorized and reserved for the purpose of issuance upon exercise of the purchase rights evidenced by this Warrant,
a sufficient number of shares of Common Stock to provide for the exercise of the right represented by this Warrant.

 

2.          Adjustment
Rights.

 

(a)          Right
to Adjustment. The number of Warrant Shares purchasable upon the exercise of the rights represented by this Warrant, and
the Exercise Price therefor, shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

 

(i)          Merger.
If at any time there shall be a merger or consolidation of the Company with or into another corporation when the Company
is not the surviving corporation, then, as a part of such merger or consolidation, lawful provision shall be made so that the holder
of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon
payment of the aggregate Exercise Price then in effect, the number of shares of stock or other securities or property of the successor
corporation resulting from such merger or consolidation, to which a holder of the stock deliverable upon exercise of this Warrant
would have been entitled in such merger or consolidation if this Warrant had been exercised immediately before such merger or consolidation.
In any such case, appropriate adjustment shall be made in the application of the provisions of this Warrant with respect to the
rights and interests of the Holder after the merger or consolidation.

 

    	 	-4-	 

     

    

 

(ii)         Stock
Splits, Dividends, Combinations and Consolidations. In the event of a stock split, stock dividend or subdivision of or
in respect of the outstanding shares of Common Stock, the number of Warrant Shares issuable upon the exercise of the rights represented
by this Warrant immediately prior to such stock split, stock dividend or subdivision shall be proportionately increased and the
Exercise Price then in effect shall be proportionately decreased, effective at the close of business on the date of such stock
split, stock dividend or subdivision, as the case may be. In the event of a reverse stock split, consolidation, combination or
other similar event of or in respect of the outstanding shares of Common Stock, the number of Warrant Shares issuable upon the
exercise of the rights represented by this Warrant immediately prior to such reverse stock split, consolidation, combination or
other similar event shall be proportionately decreased and the Exercise Price shall be proportionately increased, effective at
the close of business on the date of such reverse stock split, consolidation, combination or other similar event, as the case may
be.

 

(b)          Adjustment
Notices. Upon any adjustment of the Exercise Price, and any increase or decrease in the number of Warrant Shares subject
to this Warrant, in accordance with this Section 2, the Company, within 30 days thereafter, shall give written notice thereof
to the Holder at the address of such Holder as shown on the books of the Company, which notice shall state the Exercise Price as
adjusted and, if applicable, the increased or decreased number of Warrant Shares subject to this Warrant, setting forth in reasonable
detail the method of calculation of each such adjustment.

 

3.          Transfer
of Warrant.

 

(a)          Conditions.
This Warrant and the rights represented hereby are not transferable, except in accordance with the conditions set forth in
this Section 3. In order to effect any transfer of all or a portion of this Warrant, the Holder hereof shall deliver to the
Company a completed and duly executed Notice of Transfer, in the form attached as Exhibit D hereto. Once the Warrant
is exercised, the Warrant Shares shall be transferable in accordance with the Investor Rights Agreement.

 

(b)          Additional
Conditions to Transfer of Warrant. Unless there is a registration statement declared or ordered effective by the Commission
under the Securities Act which includes this Warrant, this Warrant may not be transferred unless and until:

 

(i)          the
Company receives an Investment Representation Statement, in the form attached as Exhibit E hereto, certifying that,
among other things, this Warrant is being acquired for investment and not with a view to any sale or distribution thereof; and

 

(ii)         the
Company receives a written notice from the Holder which describes the manner and circumstances of the proposed transfer accompanied
by a written opinion of Holder’s legal counsel, in form and substance reasonably satisfactory to the Company, stating that
such transfer is exempt from the registration and prospectus delivery requirements of the Securities Act and all applicable state
securities laws or with a Commission “no-action” letter stating that future transfers of such securities by the transferor
or the contemplated transferee would be exempt from registration under the Securities Act or such securities may be transferred
in accordance with Rule 144(k). Upon receipt of the foregoing, the Company shall, or shall instruct its transfer agent to,
promptly, and without expense to the Holder issue new securities in the name of the Holder not bearing the legends required under
Section 1(d)(ii). In addition, new securities shall be issued without such legend if such legends may be properly removed
under the terms of Rule 144.

 

    	 	-5-	 

     

    

 

4.          No
Shareholder Rights. The Holder of this Warrant (and any transferee hereof) shall not be entitled to vote on matters submitted
for the approval or consent of the shareholders of the Company or to receive dividends declared on or in respect of shares of Common
Stock, or otherwise be deemed to be the holder of Common Stock or any other capital stock or other securities of the Company which
may at any time be issuable upon the exercise of the rights represented hereby for any purpose, nor shall anything contained herein
be construed to confer upon the Holder (or any transferee hereof) any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted for the approval or consent of the shareholders, or to give
or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, merger
or consolidation, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or
otherwise until this Warrant shall have been exercised as provided herein. No provision of this Warrant, in the absence of the
actual exercise of such Warrant or any part thereof into Common Stock issuable upon such exercise, shall give rise to any liability
on the part of such Holder as a shareholder of the Company, whether such liability shall be asserted by the Company or by creditors
of the Company.

 

5.           Miscellaneous.

 

(a)          Governing
Law. This Warrant will be construed in accordance with, and governed in all respects by, the laws of the State of California,
as applied to agreements entered into, and to be performed entirely in such state, between residents of such state.

 

(b)          Dispute
Resolution. 

 

(i)          Negotiation.
In the event of any dispute, controversy or claim arising out of or relating to this Warrant, representatives of the parties
will meet in a location chosen by the party initiating the negotiation not later than ten business days after written notice from
one party to the other of such dispute and will enter into good faith negotiations aimed at resolving the dispute. If they are
unable to resolve the dispute in a mutually satisfactory manner within 30 business days from the date of such notice, the matter
may be submitted by either party to arbitration as provided for in Section 5(b)(ii), below.

 

(ii)         Arbitration.

 

(a)          Any
dispute, controversy or claim between or among any of the parties hereto arising out of or relating to this Warrant or the breach,
termination or invalidity thereof, including any dispute as to whether any dispute is subject to arbitration, which has not been
resolved after good faith negotiations pursuant to subsection 5(b)(i) hereof will be settled by binding arbitration administered
by the American Arbitration Association in accordance with its then current Commercial Arbitration Rules except as provided herein.

 

    	 	-6-	 

     

    

 

(b)          Any
arbitration will be conducted in a location in the metropolitan area of the party responding to the action by a three person arbitration
panel. The three person arbitration panel will consist of one party arbitrator selected by the Company, one party arbitrator selected
by the Holder, each of whom will be named within ten business days of the demand for arbitration, and one neutral arbitrator selected
by the first two arbitrators. If the two party appointed arbitrators cannot agree on the neutral arbitrator within ten business
days of the selection of the last party appointed arbitrator, the American Arbitration Association will appoint the neutral arbitrator,
who will act as chairperson. In the event of a vacancy with respect to an arbitrator, the vacancy will be filled within ten business
days of notice of the vacancy in the same manner and subject to the same requirements as are provided for in the original appointment
to that position. If the vacancy is not filled within ten business days, the American Arbitration Association will make the appointment.

 

It is the
intent of the parties to avoid the appearance of impropriety due to bias or partiality on the part of the neutral arbitrator. Accordingly,
prior to his or her appointment, such neutral arbitrator will disclose to the parties and the other members of the tribunal, any
financial, fiduciary, kinship or other relationship between the neutral arbitrator and any party or its counsel. Any party will
have the right to challenge in writing the appointment of the neutral arbitrator on the basis of and within five days of such disclosure.
In the event of a challenge, the American Arbitration Association will uphold or dismiss the challenge and its decision will be
conclusive.

 

(c)          The
law applicable to the validity of the arbitration clause, the conduct of the arbitration, including the resort to a court for interim
relief, enforcement of the award or any other question of arbitration law or procedure will be the United States' Federal Arbitration
Act, 9 U.S.C. § 1 et seq. The parties shall be entitled to engage in reasonable discovery including requests
for the production of all relevant documents and a reasonable number of depositions. The arbitration panel shall have the sole
discretion to determine the reasonableness of any requested document production or deposition. It is the intent of the parties
that a substantive hearing be held as soon as practicable after the appointment of the neutral arbitrator or the rejection of a
challenge thereto, whichever occurs later. The presentation of evidence will be governed by the federal Rules of Evidence. A stenographic
record of all witness testimony will be made.

 

    	 	-7-	 

     

    

 

(d)          Any
award, including any interim award, made will be made by a majority of the arbitrators applying the substantive law of California
and will (i) be in writing and state the arbitration panel's findings of fact and conclusions of law, (ii) be made promptly,
and in any event within 60 days after the conclusion of the arbitration hearing; and (iii) be binding against the parties
involved and may be entered for enforcement in any court of competent jurisdiction.

 

(e)          Fifty
percent of the costs of any arbitration proceeding (e.g., arbitrators, court reporter and room rental fees) will be borne by the
Company with the remaining 50% to paid by the other party to the dispute. However, each party will pay its own expense, including
attorneys' and other professionals' fees and disbursements.

 

(f)          The
arbitration provision set forth in this Section 5(b)(ii) will be a complete defense to any suit, action or proceeding instituted
in any court with respect to any matter arbitrable under this Warrant, except that judicial intervention may be sought in accordance
with Section 5(b)(iii) hereof.

 

(iii)        No
Waivers; Interim Relief. The parties mutually acknowledge that an award of damages may be inadequate to remedy any breach
hereof and that injunctive relief may be required. Therefore, (i) a party may request a court of competent jurisdiction to provide
interim injunctive relief in aid of arbitration or to prevent a violation of this Warrant pending arbitration, and any such request
will not be deemed a waiver or breach of the obligations to arbitrate set forth herein and (ii) the arbitrators may order equitable
relief where they deem it appropriate and the parties agree that any interim relief ordered by the arbitrators may be immediately
and specifically enforced by a court otherwise having jurisdiction over the parties.

 

(c)          Successors
and Assigns. Subject to the restrictions on transfer described in Section 3, the rights and obligations of the Company
and Holder of this Warrant shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of
the parties.

 

(d)          Waiver
and Amendment. Any provision of this Warrant may be amended, waived or modified upon the written consent of the Company
and the Holder.

 

(e)          Notices.
All notices and other communications required or permitted hereunder will be in writing and will be sent by telecopier or mailed
by first-class mail, postage prepaid, or delivered either by hand or by messenger, addressed (a) if to the Holder, at the
address indicated on the Company's books, or at such other address and telecopier number as Holder will have furnished to the Company
in writing, or (b) if to the Company, at 17912 Cowan, Irvine, California 92614, Attn: Chief Financial Officer, or at such
other address and telecopier number as the Company will have furnished to the Holder and each such other holder in writing.

 

Each such
notice or other communication will for all purposes of this Agreement be treated as effective or having been given when delivered
if delivered personally or by messenger, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been
deposited in a regularly maintained receptacle for the deposit of the United States mail addressed and mailed as aforesaid.

 

    	 	-8-	 

     

    

  

(f)          Severability.
In case any provision of this Warrant will be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions will not in any way be affected or impaired thereby.

 

(g)          Lost
Warrant. Upon receipt from the Holder of written notice or other evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of the Warrant and, in the case of any such loss, theft or destruction, upon receipt of
an unsecured indemnity agreement and an affidavit of lost warrant, or in the case of any such mutilation upon surrender and cancellation
of the Warrant, the Company, at the Company's expense, will make and deliver a new Warrant in lieu of the lost, stolen, destroyed
or mutilated Warrant carrying the same rights and obligations as the original Warrant. The Company will also pay the cost of all
deliveries of the Warrant upon any exchange thereof.

 

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

 

	 	NUGENE INTERNATIONAL, INC.
	 	a Nevada corporation
	 	 	 
	 	By:	 
	 	 	Chief Executive Officer

 

    	 	-9-	 

     

    

 

EXHIBIT A

 

NOTICE OF CASH EXERCISE

 

		TO:	___________________________

 

1.          The
undersigned hereby elects to purchase ____________ shares of Common Stock of NuGene International, Inc.., a Nevada corporation
(the “Company”), pursuant to the terms of Warrant No. [     ] issued December ,2015 to and
in the name of [    ], a copy of which is attached hereto (the “Warrant”), and tenders herewith
full payment of the aggregate Exercise Price for such shares in accordance with the terms of the Warrant.

 

2.          Please
issue a certificate or certificates representing said shares of ____________ Stock in such name or names as specified below:

 

	 	 	 
	(Name)	 	(Name)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Address)	 	(Address)

 

3.          The
undersigned hereby represents and warrants that the aforesaid shares of stock are being acquired for the account of the undersigned
for investment and not with a view to, or for resale in connection with, the distribution thereof, and that the undersigned has
no present intention of distributing or reselling such shares. The undersigned has executed an Investment Representation Statement
with certain representations and warranties, in the form attached as Exhibit C to the Warrant, concurrently herewith.

 

	Date:	 	 	NAME:	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	(Signature must conform in all respects to name of the Holder as set forth on the face of the Warrant)

 

    	 	-10-	 

     

    

 

EXHIBIT D

 

INVESTMENT REPRESENTATION STATEMENT

 

		PURCHASER	:     _________________________________

 

		SELLER	:     _________________________________

 

		COMPANY	:     NUGENE INTERNATIONAL, INC..

 

		SECURITY	:    COMMON STOCK ISSUED UPON THE EXERCISE OF WARRANT
NO. ___ ISSUED ON DECEMBER ,2015

 

		AMOUNT	:     [________] SHARES

 

		DATE	:     ________________________

 

The undersigned hereby
represents and warrants to NuGene International, Inc., a Nevada corporation (the “Company”), as follows:

 

1.          I
am aware of the business affairs, financial condition and results of operations of the Company and have acquired sufficient information
about the Company to reach an informed and knowledgeable investment decision to acquire the Securities. I am purchasing the Securities
for my own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution”
thereof for purposes of the Securities Act of 1933, as amended (the “Securities Act”).

 

2.          I
understand that the Securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein. I understand
that, in the view of the Securities and Exchange Commission (the “Commission”), the statutory basis for such exemption
may be unavailable if my representation was predicated solely upon a present intention to hold the Securities for the minimum capital
gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future.

 

3.          I
further understand that the Securities must be held indefinitely unless subsequently registered under the Securities Act or unless
an exemption from registration is otherwise available. Moreover, I understand that the Company is under no obligation to register
the Securities. In addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel
for the Company.

 

4.          I
am familiar with the provisions of Rule 144, promulgated under the Securities Act, which, in substance, permits limited public
resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering
subject to the satisfaction of certain conditions.

 

     

     

    

 

5.          I
agree that, if so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in
connection with any registration of the offering of any securities of the Company under the Securities Act, I shall not sell or
otherwise transfer any of the above listed Securities or other securities of the Company during the 180-day period (or such other
period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the "Market Standoff
Period") following the effective date of a registration statement of the Company filed under the Securities Act. Such restriction
shall apply only to the first registration statement of the Company to become effective under the Securities Act that includes
securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company
may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market
Standoff Period.

 

6.          I
further understand that in the event all of the applicable requirements of Rule 144 are not satisfied, registration under the Securities
Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact
that Rule 144 is not exclusive, the Staff of the Commission has expressed its opinion that persons proposing to sell private
placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their
respective brokers who participate in such transactions do so at their own risk.

 

	Date:	 	 	Name: 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	(Signature must conform in all respects to name of the Holder as set forth on the face of the Warrant)

 

    	 	-2-	 

     

    

 

EXHIBIT E

 

NOTICE OF TRANSFER

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto ______________________________ the right represented by Warrant No. _____
issued on December [ ], 2015 to and in the name of __________________________, to purchase ________ shares of Common Stock
of NuGene International, Inc, a Nevada corporation (the “Company”), a copy of which is attached hereto (the “Warrant”),
and appoints ______________________________ as attorney-in-fact to transfer such right on the books of the Company with full power
of substitution in the premises.

 

	Date:	 	 	Name.	 
	 	 	 	  	 
	 	 	 	By:	 
	 	 	 	 	(Signature must conform in all respects to name of the Holder as set forth on the face of the Warrant)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Address)

 

	Signed in the presence of:	 	 
	 	 	 
	 	 	 

 

     

     

    

 

EXHIBIT E

 

INVESTMENT REPRESENTATION STATEMENT

 

		PURCHASER	:     __________________________

 

		TRANSFEROR	:     __________________________

 

		COMPANY	:     NuGene International, Inc.,

 

		SECURITY	:     Warrant No. ___ issued on December [ ], 2015

 

		AMOUNT	:     __________ Shares

 

		DATE	:     ________________________

 

The undersigned hereby
represents and warrants to NuGene International, Inc., a Nevada corporation (the “Company”), as follows:

 

1.          I
am aware of the business affairs, financial condition and results of operations of the Company, and have acquired sufficient information
about the Company to reach an informed and knowledgeable investment decision to acquire the Securities. I am purchasing the Securities
for my own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution”
thereof for purposes of the Securities Act of 1933, as amended (the “Securities Act”).

 

2.          I
understand that the Securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein. I understand
that, in the view of the Securities and Exchange Commission (the “Commission”), the statutory basis for such exemption
may be unavailable if my representation was predicated solely upon a present intention to hold the Securities for the minimum capital
gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future.

 

3.          I
further understand that the Securities must be held indefinitely unless subsequently registered under the Securities Act or unless
an exemption from registration is otherwise available. Moreover, I understand that the Company is under no obligation to register
the Securities. In addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel
for the Company.

 

4.          I
am familiar with the provisions of Rule 144, promulgated under the Securities Act, which, in substance, permits limited public
resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering
subject to the satisfaction of certain conditions.

 

     

     

    

 

5.          I
agree that, if so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in
connection with any registration of the offering of any securities of the Company under the Securities Act, the undersigned shall
not sell or otherwise transfer any of the above listed Securities or other securities of the Company during the 180-day period
(or such other period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the
"Market Standoff Period") following the effective date of a registration statement of the Company filed under the Securities
Act. Such restriction shall apply only to the first registration statement of the Company to become effective under the Securities
Act that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities
Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the
end of such Market Standoff Period.

 

6.          I
further understand that in the event all of the applicable requirements of Rule 144 are not satisfied, registration under the Securities
Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact
that Rule 144 is not exclusive, the Staff of the Commission has expressed its opinion that persons proposing to sell private
placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their
respective brokers who participate in such transactions do so at their own risk.

 

	Date:	 	 	By:	 
	 	 	 	 	 
	 	 	 	Name:	 

 

    	 	-5-BLACK DIAMOND, INC.

2015 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

 

 

 

STOCK OPTION AGREEMENT
(the “Agreement”) made as of the «number date» day of «month», «year»,
by and between Black Diamond, Inc., a Delaware corporation, having its principal office at 2084 East 3900 South, Salt Lake City,
Utah 84124 (the “Company”), and «First Name» «Last Name», an individual residing in
«City State»  (the “Optionee”). Capitalized terms not defined herein shall have the meanings ascribed
to them in the Company’s 2015 Stock Incentive Plan.

 

WHEREAS, the Company
has heretofore adopted the Black Diamond, Inc. 2015 Stock Incentive Plan (the “Plan”) for the benefit of certain employees,
officers, directors, consultants, independent contractors and advisors of the Company or Subsidiaries of the Company, which Plan
has been approved by the Company’s stockholders; and

 

WHEREAS,
the Optionee is a valued and trusted  «employee or director» of
the Company and/or one of its subsidiaries and the Company believes it to be in the best interests of the Company to secure the
future services of the Optionee by providing the Optionee with an inducement to remain an  «employee
or director» of the Company and/or one of its Subsidiaries through the grant of an option to acquire an ownership
interest in the Company.

 

NOW, THEREFORE, the
parties agree as follows:

 

1.Option
Grant. Subject to the provisions hereinafter set forth and the terms and conditions of the Plan, the Company hereby grants
to the Optionee, as of «grant date»  (the “Grant Date”), the right, privilege and option (the “Option”)
to purchase all or any part of an aggregate of  «amount of option» shares
(the “Shares”) of common stock of the Company, par value $0.0001 per share (the “Common Stock”), such number
being subject to adjustment as provided in the Plan. To the extent applicable, this Option is intended to qualify as an “incentive
stock option” (“ISO”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”), to the extent permitted under Section 422 of the Code.

 

2.
Exercise Price. Subject to adjustment as provided in the Plan, the purchase price per Share of Common Stock as to
which this Option is exercised (the “Exercise Price”) shall be $ «exercise
price», the Fair Market Value of such Shares on the Grant Date. 

 

3.Exercise
of Option. The term of the Option shall be for a period of ten (10) years from the Grant Date and shall expire without
further action being taken at 5:00 p.m.,  «expiration date», subject
to earlier termination as provided in Section 5 hereof (the “Expiration Date”). The Option may be exercised at any
time, or from time to time, prior to the Expiration Date (or such additional period as may be permitted under the Plan) as to any
part or all of the Shares covered by the Option, pursuant to the vesting schedule contained in Section 4.1 hereof; provided, however,
that the Option may not be exercised as to less than one hundred (100) shares, unless it is exercised as to all Shares as to which
this Option is then exercisable. 

 

     

     

    

 

4.Vesting Schedule.

 

4.1Vesting Date.
The Shares into which this Option is exercisable shall vest in accordance with the following schedule:

 

	
         

        Vesting Date
	 	
        Number of 

        ISOs
	 	
        Number of 

        Non-Qualified 
	 	
        Total Number 

        of Shares

	 	 <<Insert Date>>	 	«Total_ISOs» 	 	«Total_NQSOs» 	 	«amountofoptions» 

 

The allocation of options granted between
ISOs and NQSOs indicated above is a result of the Limitations on ISO as outlined in the 2015 Stock Incentive Plan and reproduced
below.

 

5.7Limitations on
ISO. The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISO’s are exercisable
for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of
the Company or any Subsidiary of the Company) will not exceed $100,000 or such other amount as may be required by the Code. If
the Fair Market Value of Shares on the date of grant with respect to which ISO’s are exercisable for the first time by a
Participant during any calendar year exceeds $100,000, then the Options for the first $100,000 worth of Shares to become exercisable
in such calendar year will be ISO’s and the Options for the amount in excess of $100,000 that become exercisable in that
calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective
Date of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISO’s, such
different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such
amendment.

 

4.2Shares that are
vested pursuant to the schedule set forth in Section 4.1 hereof are “Vested Shares.”

 

5.Termination.

 

5.1Termination
for Any Reason Except Death, Disability or Cause. If Optionee is Terminated by the Company for any reason (including if the
Optionee voluntarily terminates employment with the Company) except upon Optionee’s death, Disability or Termination for
Cause, then this Option, to the extent (and only to the extent) that it is vested in accordance with the schedule set forth in
Section 4.1 hereof on the Termination Date, may be exercised by Optionee no later than three (3) months after the Termination Date
(or such longer time period not exceeding five (5) years as may be determined by the Committee, with any exercise beyond three
(3) months after the Termination Date deemed to be a NQSO), but in any event no later than the Expiration Date.

 

    2 

     

    

 

 

5.2Termination
Because of Death or Disability. If Optionee’s service to the Company is Terminated because of death or Disability of
Optionee, then this Option, to the extent that it is vested in accordance with the schedule set forth in Section 4.1 hereof on
the Termination Date, may be exercised by Optionee (or Optionee’s legal representative or authorized assignee) no later than
twelve (12) months after the Termination Date (or such longer time period not exceeding five (5) years as may be determined by
the Committee, with any such exercise beyond twelve (12) months after the Termination Date when the Termination is for Participant’s
death or Disability, deemed to be a NQSO), but in any event no later than the Expiration Date. Any exercise after three months
after the Termination Date when the Termination is for any reason other than Optionee’s disability, within the meaning of
Section 22(e)(3) of the Code, shall be deemed to be the exercise of a nonqualified stock option.

 

5.3Termination
for Cause. If the Optionee is Terminated for Cause, neither the Optionee, the Optionee’s estate nor such other person
who may then hold the Option shall be entitled to exercise any Option with respect to any Shares whatsoever, after termination
of service, whether or not after termination of service the Optionee may receive payment from the Company or Subsidiary for vacation
pay, for services rendered prior to termination, for services rendered for the day on which termination occurs, for salary in lieu
of notice, or for any other benefits. In making such determination, the Committee shall give the Optionee an opportunity to present
to the Committee evidence on his behalf. For the purpose of this paragraph, termination of service shall be deemed to occur on
the date when the Company dispatches notice or advice to the Optionee that Optionee’s service is terminated.

 

For purposes of this
Agreement, Termination for Cause means that the Company has cause to terminate an Optionee’s employment or service under
any existing employment, consulting or any other agreement between the Optionee and the Company or, if such an agreement does not
exist, upon finding that (i) the Optionee has ceased to perform his duties (other than as a result of his incapacity due to physical
or mental illness or injury), which constitutes an intentional or extended neglect of his/her duties, (ii) the Optionee has engaged
or is about to engage in conduct materially injurious to the Company or (iii) the Optionee has been convicted of a felony.

 

5.4No Obligation
to Employ. Nothing in the Plan or this Agreement shall confer on Optionee any right to continue in the employ of, or other
relationship with, the Company, a Subsidiary or an Affiliate, or limit in any way the right of the Company or any Affiliate or
Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time, with or without Cause. This
Agreement does not constitute an employment or other service contract. This Agreement does not guarantee employment or other service
for the length of time of the Vesting Schedule or for any portion thereof.

 

    3 

     

    

 

 

6.Manner of
Exercise.

 

6.1Stock Option
Exercise Procedures. To exercise this Option, Optionee (or in the case of exercise after Optionee’s death, Optionee’s
executor, administrator, heir or legatee, as the case may be) must follow such exercise procedures as may be established by the
Committee from time to time in its sole discretion. Such procedures may include requiring that the Optionee provide certain information
including, inter alia, Optionee’s election to exercise this Option, the number of Shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s investment intent and access
to information as may be required by the Company to comply with applicable securities laws. If someone other than Optionee exercises
this Option, then such person may be required to submit documentation reasonably acceptable to the Company that such person has
the right to exercise this Option.

 

6.2Limitations
on Exercise. This Option may not be exercised unless such exercise is in compliance with all applicable federal and state securities
laws, as they are in effect on the date of exercise.

 

6.3Payment.
An exercise of this Option shall be accompanied by full payment of the aggregate Exercise Price for the Shares being purchased
(a) in cash (by check), or (b) provided that a public market for the Company’s stock exists: (1) through a “same day
sale” commitment from Optionee and a broker-dealer that is a member of the National Association of Securities Dealers (an
“NASD Dealer”) whereby Optionee irrevocably elects to exercise this Option and to sell a portion of the Shares so purchased
to pay for the aggregate Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward
the aggregate Exercise Price directly to the Company; or (2) through a “margin” commitment from Optionee and an NASD
Dealer whereby Optionee irrevocably elects to exercise this Option and to pledge the Shares so purchased to the NASD Dealer in
a margin account as security for a loan from the NASD Dealer in the amount of the aggregate Exercise Price, and whereby the NASD
Dealer irrevocably commits upon receipt of such Shares to forward the aggregate Exercise Price directly to the Company. Notwithstanding
the foregoing, the Board of Directors or the Committee, in their sole discretion, may allow for the full payment of the aggregate
Exercise Price for the Shares being purchased to be made by any other method which is in accordance with the provisions of the
Plan.

 

6.4Tax Withholding.
Prior to the issuance of the Shares upon exercise of this Option, Optionee must pay or provide for any applicable federal or state
withholding obligations of the Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon exercise
of this Option by requesting that the Company retain Shares with a Fair Market Value equal to the minimum amount of taxes required
to be withheld determined on the date that the amount of tax to be withheld is to be determined. In such case, the Company shall
issue the net number of Shares to the Optionee by deducting the Shares retained from the Shares issuable upon exercise.

 

6.5Issuance of
Shares. Provided that both the exercise procedures established by the Committee and payment are in manner, form and substance
satisfactory to the Company, and upon the Company’s request to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed thereto.

 

    4 

     

    

 

 

7.Notice of
Disqualifying Disposition of ISO Shares. To the extent this Option is an ISO, if Optionee sells or otherwise disposes of
any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and
(b) the date one (1) year after transfer of such Shares to Optionee upon exercise of this Option, then Optionee shall immediately
notify the Company in writing of such disposition.

 

8.Compliance
With Laws and Regulations. The exercise of this Option and the issuance and transfer of Shares to the Optionee shall be
subject to compliance by the Company and Optionee with (i) all applicable requirements of federal and state securities laws, (ii)
all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed and (iii) any applicable
policy of the Company regarding the trading of securities of the Company, each at the time of such issuance and transfer. Optionee
understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission
or any stock exchange to effect such compliance.

 

9.Nontransferability
of Option. This Option may not be transferred in any manner other than transfers by will or by the laws of descent and
distribution or to members of the Optionee’s immediate family, to trusts solely for the benefit of such immediate family
members and to partnerships or limited liability companies in which such family members and/or trusts are the only partners or
members, as the case may be. For this purpose, “immediate family” means the Optionee’s spouse, parents, children,
stepchildren, grandchildren and legal dependants. Any transfer of Options made under this provision will not be effective until
notice of such transfer is delivered to the Company. The terms of this Option shall be binding upon the executors, administrators,
successors and assigns of Optionee.

 

10.Privileges
of Stock Ownership. Optionee shall not have any of the rights of a stockholder with respect to any Shares until the Shares
are issued to Optionee.

 

11.Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or the Company to the Committee for review.
The resolution of such a dispute by the Committee shall be final and binding on the Company and Optionee.

 

12.Entire Agreement.
The Plan is incorporated herein by reference. This Agreement and the Plan and any exercise procedures as may be established by
the Committee constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof
and supersede all prior understandings and agreements with respect to such subject matter.

 

13.Notices.
Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed
to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee
shall be in writing and addressed to Optionee at the address indicated above or to such other address as such party may designate
in writing from time to time to the Company. All notices shall be deemed to have been given or delivered upon: personal delivery;
three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested); one (1) business
day after deposit with any return receipt express courier (prepaid); or one (1) business day after transmission by facsimile.

 

    5 

     

    

 

 

14.Successors
and Assigns. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure
to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal representatives, successors and assigns.

 

15.Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, applicable
to agreements made and to be performed entirely within such state, other than conflict of laws principles thereof directing the
application of any law other than that of Delaware.

 

16.Acceptance.
Optionee hereby acknowledges receipt of a copy of the Plan and this Agreement. Optionee has read and understands the terms and
provisions of the Plan, and accepts this Option subject to all the terms and conditions of the Plan and this Agreement. This Option
is subject to, and the Company and the Optionee agree to be bound by, all of the terms and conditions of the Plan under which this
Option was granted, as the same shall have been amended, restated or otherwise modified from time to time in accordance with the
terms thereof. Pursuant to said Plan, the Board of Directors of the Company or the Committee is vested with final authority to
interpret and construe the Plan and this Option, and its present form is available for inspection during the business hours by
the Optionee or other persons entitled to exercise this Option at the Company’s principal office. Optionee acknowledges that
there may be adverse tax consequences upon exercise of this Option or disposition of the Shares and that the Company has advised
Optionee to consult a tax advisor prior to such exercise or disposition.

 

17.Covenants
of the Optionee

 

The Optionee agrees (and
for any heir, executor, administrator, legal representative, successor, or assignee hereby agrees), as a condition upon exercise
of the Option granted hereunder:

 

(a)Upon the request
of the Committee, to execute and deliver a certificate, in form satisfactory to the Committee, certifying that the Shares being
acquired upon exercise of the Option are for such person’s own account for investment only and not with any view to or present
intention to resell or distribute the same. The Optionee hereby agrees that the Company shall have no obligation to deliver the
Shares issuable upon exercise of the Option unless and until such certificate shall be executed and delivered to the Company by
the Optionee or any successor.

 

(b)Upon the request
of the Committee, to execute and deliver a certificate, in form satisfactory to the Committee, certifying that any subsequent resale
or distribution of the Shares by the Optionee shall be made only pursuant to either (i) a Registration Statement on an appropriate
form under the Securities Act of 1933, as amended (the “Securities Act”), which Registration Statement has become effective
and is current with regard to the Shares being sold, or (ii) a specific exemption from the registration requirements of the Securities
Act, but in claiming such exemption the Optionee shall, prior to any offer of sale or sale of such Shares, obtain a prior favorable
written opinion of counsel, in form and substance satisfactory to counsel for the Company, as to the application of such exemption
thereto. The foregoing restriction contained in this subparagraph (b) shall not apply to (i) issuances by the Company so long as
the Shares being issued are registered under the Securities Act and a prospectus in respect thereof is current, or (ii) re-offerings
of Shares by Affiliates of the Company (as defined in Rule 405 or any successor rule or regulation promulgated under the Securities
Act) if the Shares being re-offered are registered under the Securities Act and a prospectus in respect thereof is current.

 

    6 

     

    

 

 

(c)That certificates
evidencing Shares purchased upon exercise of the Option shall bear a legend, in form satisfactory to counsel for the Company, manifesting
the investment intent and resale restrictions of the Optionee described in this Section.

 

(d)That upon exercise
of the Option granted hereby, or upon sale of the Shares purchased upon exercise of the Option, as the case may be, the Company
shall have the right to require the Optionee to remit to the Company, or in lieu thereof, the Company may deduct, an amount of
shares or cash sufficient to satisfy federal, state or local withholding tax requirements, if any, prior to the delivery of any
certificate for such Shares or thereafter, as appropriate.

 

18.Obligations
of the Company

 

18.1Upon the exercise
of this Option in whole or in part, the Company shall cause the purchased Shares to be issued only when it shall have received
the full payment of the aggregate Exercise Price in accordance with the terms of this Agreement.

 

18.2The Company shall
cause certificates for the Shares as to which the Option shall have been exercised to be registered in the name of the person or
persons exercising the Option, which certificates shall be delivered by the Company to the Optionee only against payment of the
full Exercise Price in accordance with the terms of this Agreement for the portion of the Option exercised.

 

18.3 In the event
that the Optionee shall exercise this Option with respect to less than all of the Shares of Common Stock that may be purchased
under the terms hereof, the Company shall issue to the Optionee a new Option, duly executed by the Company and the Optionee, in
form and substance identical to this Option, for the balance of Shares of Common Stock then issuable pursuant to the terms of this
Option.

 

18.4Notwithstanding
anything to the contrary contained herein, neither the Company nor its transfer agent shall be required to issue any fraction of
a Share of Common Stock in connection with the exercise of this Option, and the Company shall, upon exercise of this Option in
whole or in part, issue the largest number of whole Shares of Common Stock to which this Option is entitled upon such full or partial
exercise and shall return to the Optionee the amount of the aggregate Exercise Price paid by the Optionee in respect of any fractional
Share.

 

    7 

     

    

 

 

18.5The Company may
endorse such legend or legends upon the certificates for Shares issued to the Optionee pursuant to the Plan and may issue such
“stop transfer” instructions to its transfer agent in respect of such Shares as, in its discretion, it determines to
be necessary or appropriate to: (i) prevent a violation of, or to perfect an exemption from, the registration requirements of the
Securities Act; (ii) implement the provisions of the Plan and any agreement between the Company and the Optionee with respect to
such Shares; or (iii) permit the Company to determine the occurrence of a disqualifying disposition, as described in Section 421(b)
of the Code, of Shares transferred upon exercise of an incentive stock option granted pursuant to this Agreement and under the
Plan.

 

18.6The Company shall
pay all issue or transfer taxes with respect to the issuance or transfer of Shares to the Optionee, as well as all fees and expenses
necessarily incurred by the Company in connection with such issuance or transfer, except fees and expenses which may be necessitated
by the filing or amending of a Registration Statement under the Securities Act, which fees and expenses shall be borne by the Optionee,
unless such Registration Statement under the Securities Act has been filed by the Company for its own corporate purposes (and the
Company so states) in which event the Optionee shall bear only such fees and expenses as are attributable solely to the inclusion
of the Shares he or she receives in the Registration Statement.

 

18.7All Shares issued
following exercise of the Option and the payment of the Exercise Price in accordance with the terms of this Agreement therefore
shall be fully paid and non-assessable to the extent permitted by law.

 

19.Miscellaneous

 

19.1If the Optionee
loses this Agreement representing the Option granted hereunder, or if this Agreement is stolen or destroyed, the Company shall,
subject to such reasonable terms as to indemnity as the Committee, in its sole discretion shall require, enter into a new option
agreement pursuant to which the Company shall issue a new Option, in form and substance identical to this Option, and in substitution
for, the Option so lost, stolen or destroyed, and in the event this Agreement representing the Option shall be mutilated, the Company
shall, upon the surrender hereof, enter into a new option agreement pursuant to which the Company shall issue a new Option, in
form and substance identical to this Option, and in substitution for, the Option so mutilated.

 

19.2This Agreement
cannot be amended, supplemented or changed, and no provision hereof can be waived, except by a written instrument making specific
reference to this Agreement and signed by the party against whom enforcement of any such amendment, supplement, modification or
waiver is sought. A waiver of any right derived hereunder by the Optionee shall not be deemed a waiver of any other right derived
hereunder.

 

19.3This Agreement
may be executed in any number of counterparts, but all counterparts will together constitute but one agreement.

 

 

    8 

     

    

 

19.4In the event
of a conflict between the terms and conditions of this Agreement and the Plan, the terms and conditions of the Plan shall govern.

 

19.5Any dispute regarding
the interpretation of this Agreement shall be submitted by Optionee or the Company to the Committee for review. The resolution
of such a dispute by the Committee shall be final and binding on the Company and Optionee.

 

19.6All Options and
benefits provided under this Agreement shall be subject to any compensation recovery or clawback policy as required under applicable
law, rule or regulation or otherwise adopted by the Company from time to time.

 

 

 

(Signature Page Follows)

    9 

     

    

 

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed in duplicate by its duly authorized representative and Optionee has executed
this Agreement in duplicate as of the Date of Grant.

 

 

 

BLACK DIAMOND, INC.

 

 

By:_______________________________

Name:

Title:

 

 

 

OPTIONEE:

 

 

_______________________________

«FirstName» «LastName»

 

 

    10

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