Document:

Exhibit 10.4

 

THIS WARRANT AND THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISPOSITION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

Warrants to Purchase Shares

of

BIOLINE RX LTD.

 

	
Number of American Depositary Shares:

	
957,549

	 

Date of Issuance:  October 2, 2018 (“Issuance Date”)

 

This certifies that, for value received, KREOS CAPITAL V (EXPERT FUND) L.P. or its permitted assigns (the “Holder”) is entitled, subject to the terms set forth herein, to purchase from BIOLINE RX LTD., an Israeli company (the “Company”), the number of Warrant ADS’s (as defined below) specified herein, upon: (a) surrender of this Warrant; (b) delivery of a either (i) Notice of Exercise or (ii) Notice of Cashless Exercise, as applicable, each, substantially in the form annexed hereto, duly completed and executed on behalf of the Holder; and (c) either (i) simultaneous payment therefor of the Exercise Price as set forth in Section 4 below in the event of exercise under Section 6.1(b), (ii) a calculation of the number of Warrant ADS’s to be issued in the event of a cashless exercise provided for in Section 6.1(c). The number and Exercise Price of Warrant ADS’s are subject to adjustment as provided below.

 

This Warrant is issued in connection with that certain Agreement for the Provision of a Loan Facility of up to US$10,000,000, dated as of October 2, 2018 (the “Loan Agreement”). Any term not defined herein, shall have the meaning ascribed to it in the Loan Agreement.

 

		1.	
Term of Warrant

 

 Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any time during the term commencing on the date hereof and ending at the earliest of: (i) 16:00 Israel time on October 2, 2028 (the tenth anniversary of the date hereof); or (ii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale or license of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly-owned subsidiary of the Company, excluding any transaction in which shareholders of the Company prior to the transaction will hold more than fifty percent (50%) of the voting and economic rights of the surviving entity after the transaction, other than an equity financing transaction (an “M&A Transaction”) (the “Term”), and shall be void thereafter; provided, that the Company shall notify the Holder in writing at least 14 days prior to the end of the Term and provide to the Holder such information relevant thereto as the Holder may reasonably request during such 14 day period for the purpose of making a determination with regard to the exercise of the Warrant hereunder. If the Company fails to provide the aforementioned notice of expiration, then the Term shall be extended until 14 days after actual notice is provided. Notwithstanding the above, unless this Warrant is exercised before the tenth anniversary of the date hereof, then upon such date, this Warrant shall be deemed to be automatically exercised in full into Warrant ADS’s by way of Cashless Exercise without any notice requirement on the part of the Holder.

 

 

		2.	
Warrant ADS’s 

 

The shares issuable to the Holder upon exercise of this Warrant (or any part thereof) (the “Warrant ADS’s”) shall be the Company’s American Depositary Shares (“ADS’s”). For purposes of clarification, each ADS represents one ordinary share, par value NIS 0.10 per share (the “Ordinary Shares”), of the Company.

 

It is agreed that the Warrant ADS’s issuable upon exercise of this Warrant shall upon their issuance bear identical financial rights and obligations as the other Warrant ADS’s issued by the Company from time to time.

 

		3.	
Warrant Amount

 

The term “Warrant Amount” shall mean US$900,000.

 

		4.	
Exercise Price

 

The exercise price per Warrant Share (the “Exercise Price”) at which this Warrant may be exercised shall be US$0.9399 (subject to adjustment as set forth in this Warrant).

 

		5.	
Number of Warrant ADS’s Available for Purchase

 

This Warrant may be exercised to purchase up to such number of Warrant ADS’s determined by dividing the Warrant Amount by the Exercise Price (as adjusted from time to time pursuant to Section 14 hereof).

 

		6.	
Exercise of Warrant

 

		6.1.	
Manner of Exercise

 

This Warrant is exercisable by the Holder, in whole or in part, on one or more occasions, at any time and from time to time, during the Term, by the surrender of this Warrant and the applicable Notice of Exercise annexed hereto, duly completed and executed on behalf of the Holder, at the principal office of the Company.

 

(a)    Delivery of Securities Upon Exercise.  On or before the first (1st) Business Day following the date on which the Company has received the Exercise Notice, the Company shall transmit by fax or email an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and The Bank of New York Mellon, the Depositary (“Depositary”) for the ADSs.  The “Share Delivery Date” shall be on the third (3rd) Business Day following the date on which the Company has received the Exercise Notice.  On the Share Delivery Date, the Company shall (X) issue and deposit with the Depositary a number of Ordinary Shares that will be represented by the number of Warrant ADSs to which the Holder is entitled in respect of that exercise, (Y) pay the fee of the Depositary for the issuance of that number of ADSs and (Z) instruct the Depositary to execute and deliver to that Holder an American Depositary Receipt (“ADR”) evidencing that number of Warrant ADSs. Subject to Israeli law limitations, the Company shall cause the ADSs to be issued in accordance with the terms of this Warrant.

 

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(b)    Payment of Exercise Price.  Within two (2) Trading Days of the date of the Exercise Notice, the Holder shall make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant ADSs as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash or by wire transfer of immediately available funds, unless the cashless exercise procedure specified in paragraph  (c) below is specified in the applicable Exercise Notice.

 

(c)    Cashless Exercise.  The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price pursuant to paragraph (b) above, elect instead to receive upon such exercise the “Net Number” of ADSs determined according to the following formula (a “Cashless Exercise”):

 

	
 

	
X = Y [(A-B)/A]

	
where:

	
 

	
 

	
X = the Net Number of Warrant ADSs to be issued to the Holder.

	
 

	
 

	
 

	
Y = the number of Warrant ADSs with respect to which this Warrant is being exercised.

	
 

	
 

	
 

	
A = the Closing Sale Price of the ADSs on the Principal Market immediately prior to (but no including) the Exercise Date.

	
 

	
 

	
 

	
B = the Exercise Price.

  

(d)    Fractional Shares.  No fractional ADSs are to be issued upon the exercise of this Warrant. If any fractional share of an ADS would, except for the provisions of the prior sentence, be deliverable upon such exercise, the Company, in lieu of delivering such fractional share, shall pay to the exercising Holder an amount in cash equal to the Closing Sale Price on the Principal Market of such fractional ADS on the date of exercise.  For the purposes of this Warrant, “Closing Sale Price” means, for any security as of any date, the last trade price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, as the case may be, then the last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the closing bid and closing ask prices of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).  If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.  All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. Principal Market” for the purposes of this Warrant shall mean The NASDAQ Capital Market.

 

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(e)    Rule 144.  For purposes of Rule 144(d) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), as in effect on the date hereof, it is intended that the Warrant ADSs issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant ADSs shall be deemed to have commenced as of the Issuance Date.

 

(f)     Disputes.  In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant ADSs, the Company shall promptly issue to the Holder the number of Warrant ADSs that are not disputed.

 

(g)    Other Limitations.  Notwithstanding anything to the contrary, any or all of the Warrants may not be exercised on the record date with respect to the distribution of bonus shares, offer by way of rights issue, distribution of dividends, consolidation of share capital, consolidation of shares, reduction or split in share capital or company split (each hereinafter referred to as a “Corporate Event”). In addition, if the ex-date with respect to a Corporate Event occurs before the record date relating to such Corporate Event, then the exercise of Warrants shall not occur on such ex-date.

 

		6.2.	
Conditional Exercise

 

In connection with an M&A Transaction, the exercise of this Warrant may be made conditional upon the closing of such transaction. The Company shall notify the Holder in writing at least 14 days prior to the closing of such transaction and include in such notice the material terms of such transaction, and provide the Holder with any updates and changes to the material terms thereof promptly in writing. Notwithstanding anything to the contrary herein, this Warrant shall automatically be deemed to be exercised in full in the manner set forth in Section 6.1(c), without any further action on behalf of the Holder, immediately prior to an M&A Transaction.

 

		6.3.	
Result of Exercise

 

This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, or, if exercised pursuant to Section 6.2 above, immediately prior to the closing (or consummation, as the case may be) of an M&A Transaction and the person entitled to receive the Warrant ADS’s issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on such date, or the closing date of such event. As promptly as practicable on or after such date and in any event within seven (7) days thereafter, at the Holder’s request, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same, a certificate or certificates for the number of shares issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the remaining number of Warrant ADS’s for which this Warrant may then be exercised. Notwithstanding the above, the Holder shall not be permitted to exercise this Warrant in part unless such exercise is for a Warrant Amount of at least US$ 250,000 per exercise, unless the remaining part of the Warrant Amount is less than US$ 250,000.

 

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		7.	
Replacement of Warrant 

 

On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of loss, theft, or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

 

		8.	
Rights of Shareholders

 

Subject to Section 14 of this Warrant, the Holder shall not be entitled to vote or receive dividends or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, until this Warrant or any portion hereof shall have been exercised and the Warrant ADS’s shall have been issued, as provided herein.

 

		9.	
Free Trade Date

 

Within 90 days of the one-year anniversary of the Issuance Date, the Company shall cause the Restricted Stock Legend (as defined below) to be removed from any remaining outstanding Registrable Shares. “Restricted Stock Legend” means a legend indicating the restricted status of the Registrable Shares under Rule 144.

 

		10.	
Registration Rights.

 

		10.1.	
Company’s Obligations With Respect to Registration. The Company shall:

 

(i)           no later than sixty (60) days after the Issue Date (the “Filing Date”) prepare and file with the SEC a registration statement (the “Registration Statement”) on Form F-3 or any successor form to enable the resale by the Holder, from time to time on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 as amended (the “Securities Act”), of the Warrant ADS’s and any Ordinary Shares issued as a distribution to the Holder with respect to or in exchange for or in replacement for any of such Warrant ADS’s (the “Registrable Shares”);

 

(ii)          use its commercially reasonable efforts to cause the Registration Statement to become effective as soon as reasonably practicable after it is filed by the Company with the SEC;

 

(iii)         prepare and file with the SEC such amendments and supplements to the Registration Statement and the prospectus forming part thereof as may be necessary to keep the Registration Statement current and effective until the earlier of (i) the Maturity Date, (ii) the date on which no Registrable Shares are outstanding and (iii) the date on which the Registrable Shares are eligible to be sold pursuant to Rule 144 under the Securities Act (the “Registration Rights Termination Date”);

 

(iv)         furnish to the Holder a number of copies of the Registration Statement covering such Registrable Shares, and any prospectus, preliminary prospectuses and prospectus supplements in conformity with the requirements of the Securities Act and such other documents as the Holder may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Registrable Shares by the Holder;

 

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(v)          use commercially reasonable efforts to ensure that the Registrable Shares are listed for quotation on the Nasdaq Capital Market as soon as practicable after their issuance;

 

(vi)         use commercially reasonable efforts to register or qualify or cooperate with the Holder in connection with the registration or qualification of the Registrable Shares for offer and sale under the securities or blue sky laws of such jurisdictions in the United States as the Holder reasonably requests in writing and to keep such registration or qualification (or exemption therefrom) effective during the period such Registration Statement is required to be kept effective pursuant to Section 10.1(iii) above, and to do all other acts or things reasonably necessary or advisable to enable the disposition in such distributions of the securities covered by the Registration Statement; provided, that the Company shall not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this Section;

 

(vii)        notify the Holder, promptly after it receives notice thereof, of the time when the Registration Statement has been declared effective or a supplement to any prospectus forming a part of the Registration Statement has been filed;

 

(viii)       after the Registration Statement becomes effective, notify the Holder of any request by the SEC to amend or supplement such Registration Statement or prospectus; and

 

(ix)          use commercially reasonable efforts to take any other action reasonably necessary to effect the registration and resale of the Registrable Shares in accordance with Section 10.1.

 

		10.2.	
Sales of Registrable Shares under the Registration Statement.

 

(i)           The Holder may sell the Registrable Shares under the Registration Statement as long as, to the extent required by law, it arranges for delivery of a current prospectus and, if applicable, prospectus supplement or report, to the transferee of such Registrable Shares.

 

(ii)          In the event of a sale of any Registrable Shares by the Holder under the Registration Statement, the Holder shall deliver to the Company’s transfer agent, with a copy to the Company, a certificate of subsequent sale in the form reasonably satisfactory to the Company so that the Registrable Shares may be properly transferred. The Company’s transfer agent will issue and make appropriate delivery of one or more stock certificates in the name of the buyer so as to permit timely compliance by the Holder with applicable settlement requirements.

 

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		11.	
Reports under the Exchange Act

 

With a view to making available to the Holder the benefits of Rule 144, the Company agrees that until the date on which no Registrable Shares are outstanding, the Company shall: (a) make and keep public information available, as those terms are understood and defined in Rule 144; (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and (c) furnish to the Holder, promptly upon request, (i) a written statement by the Company as to the status of its compliance with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Holder to sell such Registrable Shares pursuant to Rule 144 without registration.

 

		12.	
Reservation of Shares

 

The Company covenants that during the Term this Warrant is exercisable, the Company will reserve from its authorized and unissued share capital a sufficient number of shares to provide for the issuance of Warrant ADS’s upon the exercise of this Warrant and the Ordinary Shares issuable upon conversion of the Warrant ADS’s (the “Conversion Shares”). The Company further covenants that all Warrant ADS’s and Conversion Shares will be duly authorized, validly issued, fully paid and non-assessable, and will be free from all taxes, liens, and charges in respect of the issue thereof. The Company agrees that its issuance of this Warrant shall constitute full authority to its officers to register the Holder as the owner of Warrant ADS’s and Conversion Shares, and to execute and issue the necessary certificates for Warrant ADS’s and Conversion Shares, upon the exercise of this Warrant and the conversion of the Warrant ADS’s, respectively.

 

		13.	
Amendments and Waivers 

 

Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holder. No waivers of, or exceptions to any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

		14.	
Adjustments

 

The Exercise Price and the number and class of Warrant ADS’s purchasable hereunder are subject to adjustment from time to time as follows:

 

		14.1.	
Adjustment upon Subdivision or Combination of Ordinary Shares or ADSs.  If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant ADSs will be proportionately increased.  If the Company at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Ordinary Shares or ADSs into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant ADSs will be proportionately decreased.  Any adjustment under this Section 14 shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

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		14.2.	
Anti-Dilution Adjustment.

 

If, while this Warrant, or any portion hereof, remains outstanding and unexpired, and to the extent that the Company no longer is a public company with publicly traded securities,  if in such event the Company issues or sells any class or series of securities or any instrument convertible into securities of the Company at a price per share such that the class of Warrant ADS’s into which this Warrant is exercisable are entitled to an anti-dilution adjustment, or if the conversion price of the class of Warrant ADS’s into which this Warrant is exercisable is otherwise being reduced, then the anti-dilution mechanism applicable to the class of the Warrant ADS’s (if any) shall be applicable with respect to the Warrant ADS’s issuable hereunder as if this Warrant had been exercised prior to the issuance of such new securities.

 

		14.3.	
Other Events.  If any event occurs of the type contemplated by the provisions of this Section 14 but not expressly provided for by such provisions, then the Company’s Board of Directors shall make an appropriate adjustment in the Exercise Price and the number of Warrant ADSs so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 14 shall increase the Exercise Price or decrease the number of Warrant ADSs as otherwise determined pursuant to this Section 14.

 

		14.4.	
Certificate as to Adjustments

 

Upon the occurrence of each adjustment or readjustment pursuant to this Section14, the Company shall, upon the written request of the Holder of this Warrant, furnish or cause to be furnished to such Holder a certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the number of ADS’s and the amount, if any, of other property which at the time would be received upon the exercise of the Warrant.

 

		14.5.	
No Impairment 

 

The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all of the provisions of this Section 14 and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder of this Warrant against impairment.

 

		15.	
Governing Law 

 

This Warrant shall be governed by and construed in accordance with the laws of the State of Israel, without giving effect to the principles thereof relating to conflict of laws. The competent courts of the city of Tel Aviv-Jaffa shall have exclusive jurisdiction to hear all disputes arising in connection with this Warrant and no other courts shall have any jurisdiction whatsoever in respect of such disputes.

 

		16.	
Successors and Assigns; Transfer

 

		16.1.	
Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. The Holder may freely assign, distribute or otherwise transfer this Warrant together with any rights attached hereto (including, inter alia, the registration rights pursuant to Section 10), with respect to all or any portion of the Warrant ADS’s hereunder to any third party, provided that the Holder provides a notice thereof to the Company and provided, however, that any such assignee shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant.

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		16.2.	
This Warrant and the Warrant ADS’s issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Warrant ADS’s, if any) may not be transferred or assigned in whole or in part except in compliance with applicable US federal and state, Israeli or other non-U.S. securities laws by the transferor and the transferee.

 

		17.	
Representations and Warranties of the Company 

 

The Company represents and warrants to the Holder as follows as of the date hereof:

 

		17.1.	
This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms.

 

		17.2.	
The Warrant ADS’s are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable and not subject to any preemptive or participation rights.

 

		17.3.	
The execution and delivery of this Warrant are not, and the issuance of the Warrant ADS’s upon exercise of this Warrant in accordance with the terms hereof are not inconsistent with the Company’s Articles of Association (the “Articles”) and do not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, and, do not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, state or local government authority or agency or other person, except for any approval required under applicable securities laws (including approval from the Tel Aviv Stock Exchange). So long as this Warrant is outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued Ordinary Shares, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of Ordinary Shares to be issued upon exercise of this Warrant then outstanding.

 

		17.4.	
All necessary consents of any third parties with respect to the issuance of this Warrant and the Warrant ADS’s upon exercise thereof have been obtained, and the Company has no outstanding issuance obligations or other similar rights with respect to the issuance of this Warrant and the Warrant ADS’s upon exercise thereof, or any such rights have been exercised, waived or cancelled.

 

		18.	
Representations and Warranties of the Holder

 

		18.1.	
The Holder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks contained in this Warrant and the Warrant ADS’s purchasable pursuant to the terms of this Warrant and of protecting its interests in connection therewith.

 

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		18.2.	
The Holder is able to bear the economic risk of the purchase of the Warrant ADS’s pursuant to the terms of this Warrant.

 

Upon issuance of the Warrant ADS’s, the Holder shall be subject to all rights and obligations as set forth in the Company Articles of Association, as may be amended from time to time.

 

		19.	
Certain Information

 

The Company agrees to provide the Holder at any time and from time to time with such information as the Holder may reasonably request for purposes of the Holder’s compliance with regulatory, accounting and reporting requirements applicable to the Holder, subject to applicable confidentiality and regulatory obligations of the Company including pursuant to Section 15.6 of the Loan Agreement which shall bind the Holder for as long as this Warrant is in effect. In addition, for as long as this Warrant remains outstanding, the Company shall, at the Holder’s request, provide the Holder with (i) the Company’s annual audited financial statements within one hundred and fifty (150) days of year-end, certified by an independent certified public accountant acceptable to the Holder, and (ii) any other financial statements, if any, in the form presented to the board of directors of the Company.

 

		20.	
Expenses

 

The Company shall pay to the Holder, on the Holder’s demand, all reasonable expenses incurred by the Holder in connection with any amendment, supplement to, or waiver and/or consent in connection with, this Warrant, or any proposal for such an amendment to be made, all to the extent initiated or requested by the Company.

 

		21.	
Survival 

 

The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Warrant.

 

		22.	
Notices 

 

All notices and other communications required or permitted hereunder shall be in writing and shall be deemed effectively given upon delivery to the party to be notified in person, by facsimile or email (upon confirmation of successful transmission) or by courier service or four days after deposit by registered or certified mail, postage prepaid, addressed as follows:

 

	
If to the Company:

	
BioLine Rx Ltd.

2 HaMa'ayan Street,

Modi'in 7177871, Israel

Fax: +972-8-6429101

Attn: Mali Zeevi, Chief Financial Officer

E-mail:  maliz@biolinerx.com

 

With a copy (which shall not constitute notice) to:

Yigal Arnon & Co., Law Firm

Fax: 03-6087734

Attn: Simon Weintraub, Adv.

E-mail: simonw@arnon.co.il

 

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If to the Holder:

	
Kreos Capital V (Expert Fund) L.P.

47 Esplanade, St Helier, Jersey

Fax: +44 1534 889 884

Attn: Raoul Stein

E-mail: raoul@kreoscapital.com

 

With a copy (which shall not constitute notice) to:

Kadouch & Co., Law Offices,

11 Ha’Sadnaot Street, P.O.B 12695, 4673300 Herzliya, Israel

 Fax: +972-9-9525450

Attn: Emmanuel Kadouch, Adv.

E-mail: emmanuel@kadouchlaw.com

 

Furthermore, if (i) the Company shall declare a dividend (or any other distribution in whatever form) on the Ordinary Shares or ADSs, (ii) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares or ADSs, (iii) the Company shall authorize the granting to all holders of the Ordinary Shares or ADSs purchase rights, (iv) the approval of any shareholders of the Company shall be required in connection with any reclassification of the Ordinary Shares or ADSs, 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 Ordinary Shares or ADSs are converted into other securities, cash or property, or (v) 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 cause to be mailed to the Holder, at least twenty (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 Ordinary Shares or ADSs 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 Ordinary Shares or ADSs of record shall be entitled to exchange their Ordinary Shares or ADSs for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Report on Form 6-K or other eligible form. For the avoidance of doubt, the Holder shall remain entitled to exercise this Warrant following any such notice.

 

		23.	
Delays or Omissions 

 

Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default of the Company under this Warrant, shall impair any such right, power or remedy of such Holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default under this Warrant, or any waiver on the part of any Holder of any provisions or conditions of this Warrant, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Warrant or by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

11

 

		24.	
Severability 

 

In the event that any provision of this Warrant becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Warrant shall continue in full force and effect without said provision, and such provision shall be given effect to the extent legally possible.

 

		25.	
Titles and Subtitles 

 

The titles and subtitles used in this Warrant are used for convenience only and are not considered in construing or interpreting this Warrant.

 

		26.	
Warrant Agent.  The Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation or other entity into which the Company or any new warrant agent may be merged or any corporation or other entity resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation or other entity to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholder services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the books and records of the Company.

 

		27.	
Restrictions.  Without derogating from the registration rights pursuant to Section 10, the Holder acknowledges that the Warrant ADSs acquired upon the exercise of this Warrant, if not registered, and if not acquired by cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

[Rest of page intentionally left blank]

 

12

 

IN WITNESS HEREOF, the parties have executed this Warrant, on the day and year first above written.

 

	
BIOLINE RX LTD.

 

By: /s/ Philip Serlin          

 

Name: Philip Serlin

 

Title: Chief Executive Officer

	
KREOS CAPITAL V (EXPERT FUND) L.P.

 

By: /s/ Raoul Stein          

 

Name: Raoul Stein

 

Title: General Partner

 

13

 

NOTICE OF EXERCISE

 

To: BIOLINE RX LTD.

 

NOTICE OF EXERCISE

 

	1.	
The undersigned hereby irrevocably elects to purchase __________ ADS’sof BIOLINE RX LTD. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

 

	2.	
Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below:

 

___________________________________

(Name)

___________________________________

___________________________________

___________________________________

(Address)

 

___________________________________

(Signature)

___________________________________

(Date)

 

14

CASHLESS EXERCISE FORM

 

To: BIOLINE RX LTD.

NOTICE OF CASHLESS EXERCISE

 

	1.	
The undersigned hereby elects to exercise its Cashless Exercise rights, pursuant to Section 6.1(c) of the attached Warrant, with respect to ___________________ ADS’s of BIOLINE RX LTD., pursuant to the terms of the Warrant.

	2.	
Please issue a certificate or certificates representing the number of shares issuable after deducting the shares withheld in lieu of payment of the exercise price, in the name of the undersigned or in such other name as is specified below:

___________________________________

(Name)

___________________________________

___________________________________

___________________________________

(Address)

___________________________________

(Signature)

___________________________________

(Date)

15Exhibit 10.1

    

    

    RICEBRAN TECHNOLOGIES

     

    

    FORM OF RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND AWARD AGREEMENT

     

      

    (2014 EQUITY INCENTIVE PLAN)

     

      

    Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the RiceBran Technologies 2014 Equity
        Incentive Plan (the “Plan”).

     

      

    	
            Participant Name:

          	

          	 

     

          

    NOTICE OF RESTRICTED STOCK UNIT GRANT

    

    

    
      
        RiceBran Technologies (the “Company”) has granted the
          individual (“Participant”) named above an Award of Restricted Stock Units (the “RSUs” or “Restricted Stock Units”), on the terms and conditions of the Plan and this Restricted Stock Unit Award Grant Notice and Award
          Agreement, including the Terms and Conditions of Restricted Stock Unit Grant attached hereto as Exhibit A (the “Terms and Conditions”), each of which is incorporated herein in its entirety and made a part hereof (collectively, the “Award
            Agreement”), as follows:

      

    

     

      

    	
            Grant Number:

          	 	 

    

    

    	
            Date of Grant:

          	 	 

    

    

    
      	
              
                Vesting Commencement Date:

              

            	 	 

    

    

    

    	
            Number of RSUs:

          	 	 

     

      

    Vesting Schedule:  See below

    

    

    Vesting Schedule

    

    

  

  Subject to the provisions of the Award Agreement and the Plan, the shares subject to this RSU Award Agreement shall vest as follows:

  

    [insert vesting schedule]

    

  

  
    1

    
      

  

  
    In the event that Participant’s Continuous Service to the Company terminates or ceases in circumstances other than as described above,
        then unless expressly otherwise provided in a written agreement executed by the Company and Participant, any unvested Restricted Stock Units will terminate immediately (regardless of the reason for such termination and whether or not later found to
        be invalid or in breach of employment laws in the jurisdiction where Participant is providing services) and, unless otherwise expressly provided in the Award Agreement or otherwise determined by the Company, Participant’s right to vest in the
        Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice or severance period.  For purposes of this Restricted Stock Unit Award Grant Notice and Award Agreement, “Continuous Service” means that Participant’s employment with the Company or an Affiliate of the Company is not interrupted or terminated.

  

  

  

  Additional Terms/Acknowledgements

  

  

  By accepting (whether in writing, electronically or otherwise) the Restricted Stock Units, Participant acknowledges and agrees to the
      following:  Participant understands that Participant’s employment or consulting relationship or service with the Company or an Affiliate is for an unspecified duration, can be terminated at any time (i.e., is at will), except where otherwise prohibited by applicable law, and that nothing in this Notice, the Award Agreement or the Plan changes the nature of that relationship.  Participant acknowledges that
      the vesting of the Restricted Stock Units pursuant to this Award Agreement may be earned only if Participant provides Continuous Service to the Company or an Affiliate.  By accepting the Restricted Stock Units, Participant consents to the electronic
      delivery of materials as set forth in the Award Agreement.

  

  

  By Participant’s signature and the signature of the Company’s representative below, Participant and the Company agree that this Award of
      Restricted Stock Units is granted under and governed by the terms and conditions of the Award Agreement.  Participant acknowledges that he or she has reviewed the Plan and the Award Agreement, has had an opportunity to obtain the advice of counsel
      prior to executing this Award Agreement, and fully understands all provisions of the Plan and the Award Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any
      questions relating to the Plan or the Award Agreement.

  

  

  
    2

    
      

  

  
    [The provisions in the Plan regarding Detrimental
          Activity shall apply to the Restricted Stock Units and the shares subject to the Restricted Stock Units. If the Participant engages in any Detrimental Activity (i) prior to the vesting of all unvested Restricted Stock Units, the Committee
        may direct that all unvested Restricted Stock Units be immediately forfeited, (ii) after the vesting of Restricted Stock Units but before the issuance of the shares subject to the vested Restricted Stock Units, the Committee may direct that such
        shares not be issued to the Participant and (iii) on, or during the one-year period after, the date of vesting for Restricted Stock Units, the Committee may direct that the Participant shall pay over to the Company an amount equal to the Fair
        Market Value on the date of vesting of those shares that were issued in respect of the such vested Restricted Stock Units. The Participant acknowledges and agrees that the restrictions herein and in the Plan regarding Detrimental Activity are
        necessary for the protection of the business and goodwill of the Company and its Affiliates, and are considered by the Participant to be reasonable for such purposes. Without intending to limit the legal or equitable remedies available in the Plan
        and in this Agreement, the Participant acknowledges that engaging in Detrimental Activity will cause the Company and its Affiliates material irreparable injury for which there is no adequate remedy at law, that it will not be possible to measure
        damages for such injuries precisely and that, in the event of such activity or threat thereof, the Company shall be entitled, in addition to the remedies provided under the Plan, to obtain from any court of competent jurisdiction a temporary
        restraining order or a preliminary or permanent injunction restraining the Participant from engaging in Detrimental Activity or such other relief as may be required to specifically enforce any of the covenants in the Plan and this Agreement without
        the necessity of posting a bond, and in the case of a temporary restraining order or a preliminary injunction, without having to prove special damages.]

    

    

    Participant acknowledges that as of the Date of Grant, this Restricted Stock Unit Grant Notice, the Award Agreement and the Plan set
        forth the entire understanding between Participant and the Company regarding the acquisition of the RSU pursuant to the Award specified above and supersede all prior oral and written agreements on the terms of this Award with the exception, if
        applicable, of any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law.

  

  

  

  	
          PARTICIPANT:

        	 	
          RICEBRAN TECHNOLOGIES

        

  

  

  	 	 	
          By:

        	 

  	
          Signature

        	 	
          Name:

        	 

  	 	 	
          Title:

        	 
	 	 	 	 
	
          Print Name

        	 	 	 

  

  

  
    3

    
      

  

  
  EXHIBIT A

  

  

  TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT GRANT

  

  

  1.         Grant.  The Company has granted to Participant an Award of Restricted Stock Units (the “RSUs” or “Restricted Stock Units”) in the amount set forth on the first page of the Restricted Stock Unit Grant Notice and Award Agreement (the “Notice of Grant”), subject to all of the terms and conditions of this Award Agreement and of the Plan.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this
      Award Agreement, the terms and conditions of the Plan will prevail.  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Plan.

  

  

  2.         Settlement; Issuance of Shares.

  

  

   (a)      Each Restricted Stock Unit represents the right
      to receive one share of common stock of the Company (“Share”) on the date such Restricted Stock Unit vests.  Unless and until the Restricted Stock Units have
      vested in the manner set forth in the Award Agreement, Participant will have no right to Shares pursuant to any such Restricted Stock Units.  Any Restricted Stock Units that vest in accordance with the Award Agreement will be settled and paid to
      Participant (or in the event of Participant’s death, to his or her estate) in whole Shares, subject to Participant satisfying any obligations for Tax-Related Items (as defined in Section 7).  Subject to the provisions of Section 4, such vested
      Restricted Stock Units will be settled and paid in whole Shares as soon as reasonably practicable after vesting, but in each such case within thirty (30) days following the vesting date (the “Original Issuance Date”) (or as otherwise provided below).  In no event will Participant be permitted, directly or indirectly, to specify the taxable year of the payment of any Shares under this Award.  Settlement of RSUs shall be in Shares. Settlement means the delivery to Participant of the Shares vested under the RSUs. Fractional Shares will not be issued, and any fraction of a share will
        be rounded down to the nearest whole share.  Prior to actual settlement of any vested Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) only from the general
      assets of the Company.  The RSU Award is unfunded, and Participant shall be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue
        Shares pursuant to this Award Agreement.  Participant shall not have voting or any other rights as a stockholder of the Company with respect to the Shares that are issuable pursuant to this Award Agreement until such Shares are issued to
        Participant pursuant to this Award Agreement.  Upon such issuance, Participant will obtain full voting and other rights as a stockholder of the Company.  Nothing contained in this Award Agreement, and no action taken pursuant to its provisions,
        shall create or be construed to create a trust of any kind or a fiduciary relationship between Participant and the Company or any other person.

  

  

  
    - 1 -

    
      

  

  (b)      If (i) the Original Issuance Date does not occur
      (1) during an “open window period” applicable to Participant, as determined by the Company in accordance with the Company’s then-effective policy on trading in Company securities, or (2) on a date when Participant is otherwise permitted to sell
      shares of Common Stock on an established stock exchange, stock market or quotation system (including, but not limited to, under a previously established Rule 10b5-1 trading plan) and sale of such shares would not violate any “lock-up” agreement
      undertaken in connection with an issuance of securities by the Company or any applicable registration requirements under the Securities Act of 1933, as amended, or any provision of the federal securities laws, and (ii) either withholding taxes do not apply or the Company elects, prior to the Original Issuance Date, (1) not to satisfy the Tax-Related Items described in Section 7 by withholding
      shares of Common Stock from the shares otherwise due, on the Original Issuance Date, to Participant under this Award, (2) not to permit Participant to enter into a “same day sale” or other similar commitment with a broker-dealer pursuant to Section 7
      of this Agreement (including, but not limited to, a commitment under a previously established Rule 10b5-1 trading plan) and (3) not to permit Participant to pay Participant’s Tax-Related Items in cash, then the shares that would otherwise be issued
      to Participant on the Original Issuance Date will not be delivered on such Original Issuance Date and will instead be delivered on the first business day when Participant is not prohibited under the Company’s policies, applicable laws or any
      applicable lock-up agreement from selling shares of the Company’s Common Stock in the open public market, but in no event later than December 31 of the calendar year in which the Original Issuance Date occurs (that is, the last day of Participant’s
      taxable year in which the Original Issuance Date occurs), or, if and only if permitted in a manner that complies with Treasury Regulation Section 1.409A-1(b)(4), no later than the date that is the 15th day of the third calendar month of the year
      following the year in which the shares of Common Stock under this Award are no longer subject to a “substantial risk of forfeiture” within the meaning of Treasury Regulation Section 1.409A-1(d).  Delivery of the shares pursuant to the provisions of
      this Section is intended to comply with the requirements for the short-term deferral exemption available under Section 409A (as defined below, and including Treasury Regulations Section 1.409A-1(b)(4)) and shall be construed and administered in such
      manner.  The form of delivery (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Company.

  

  

  3.         Vesting.

  

  

  (a)        Except as otherwise provided herein, the
      Restricted Stock Units to which this Award Agreement relates will vest in accordance with the vesting provisions set forth in the Notice of Grant, and vesting will cease upon the termination of Participant’s Continuous Service.  Upon termination of Participant’s Continuous Service, the unvested portion of the RSU on the date of such termination will be forfeited at no cost to the Company and Participant will have no
        further right, title or interest in or to such RSU or the Shares of Common Stock underlying such RSU.

  

  

  (b)        The Committee or the Board may at any time accelerate the vesting schedule specified in this Award Agreement.

  

  

  4.         Committee Discretion.

  

  

  (a)        The Committee, in its discretion, may
      accelerate the vesting of the balance, or some lesser portion of the balance, of the unvested Restricted Stock Units at any time, subject to the terms of the Plan.  If so accelerated, such Restricted Stock Units will be considered as having vested as
      of the date specified by the Committee.  The payment of Shares vesting pursuant to this Section will in all cases be paid at a time or in a manner that is intended to be exempt from, or comply with, Section 409A.  For purposes of the Award Agreement,
      “Section 409A” means Section 409A of the Code, and any U.S. Treasury Regulations and U.S. Internal Revenue Service guidance thereunder, as each may be amended
      from time to time.

  

  

  
    - 2 -

    
      

  

  (b)        Notwithstanding anything in the Plan or the
      Award Agreement to the contrary, if the vesting of the balance, or some lesser portion of the balance, of the Restricted Stock Units is accelerated in connection with the termination of Participant’s providing Continuous Service (and provided that
      such termination constitutes a “separation from service” within the meaning of Section 409A, as determined by the Company), other than due to Participant’s death, and if (x) Participant is a “specified employee” within the meaning of Section 409A at
      the time of such cessation of Participant’s providing Continuous Service and (y) the payment of Shares pursuant to such accelerated Restricted Stock Units will result in the imposition of additional tax under Section 409A if paid to Participant on or
      within the six (6) month period following the cessation of Participant’s providing Continuous Service, then the payment of such accelerated Restricted Stock Units will not be made until the date that is six (6) months and one (1) day following the
      date of termination of Participant’s providing Continuous Service, except in the event of Participant’s death following the cessation of Participant’s providing Continuous Service, in which case, the Restricted Stock Units will be paid in Shares to
      Participant’s estate as soon as practicable following his or her death.  It is the intent of the Award Agreement that the Award Agreement and all payments and benefits hereunder be exempt from, or comply with, the requirements of Section 409A so that
      none of the Restricted Stock Units provided under the Award Agreement or Shares issuable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to be so exempt or so comply.  Each
      payment payable under the Award Agreement is intended to constitute a separate payment for purposes of Section 409A (including U.S. Treasury Regulation Section 1.409A-2(b)(2)).

  

  

  5.        Forfeiture upon Termination of Providing Continuous Service.  The balance of the Restricted Stock Units that have not vested as of the time of the termination of Participant’s providing Continuous Service (regardless of the reason for such termination and whether or not later found to be invalid or in breach of labor laws in the jurisdiction where Participant is employed or the terms of
        Participant’s employment or service agreement, if any, and will not be extended by any notice period mandated under local employment laws), and Participant’s right to acquire any Shares hereunder, will terminate immediately in accordance
      with the provisions set forth in the Notice of Grant, without payment of any consideration to Participant.  In case of any dispute as to whether termination of Continuous Service has occurred, the Committee will have sole discretion to determine
      whether such termination has occurred (including whether you may still be considered to be providing Services while on a leave of absence) and the effective date of such termination.

  

  

  6.         Death of Participant.  Any distribution or delivery to be made to Participant under the Award Agreement will, if Participant is then deceased, be made to the administrator or executor of Participant’s estate.  Any such
      transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said
      transfer.

  

  

  
    - 3 -

    
      

  

  7.         Tax Obligations.

  

  

  (a)        Responsibility for Taxes.  Notwithstanding any contrary provision of the Award Agreement, no certificate representing the Shares (or proceeds from the sale of Shares) will be issued to Participant, unless
      and until satisfactory arrangements (as determined by the Company) will have been made by Participant with respect to the payment of income, employment, social insurance, payroll tax, fringe benefit tax, tax withholding obligations, or other
      tax-related items related to Participant’s participation in the Plan and legally applicable to Participant or deemed by the Company or Participant’s employer (the “Employer”)

      in its discretion to be an appropriate charge to Participant (even if legally applicable to the Company or the Employer) (“Tax-Related Items”) which the Company
      determines must be withheld with respect to the Restricted Stock Units or the Shares.  Participant acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in
      connection with any aspect of the Restricted Stock Units, including, but not limited to, the grant or vesting of the Restricted Stock Units, the subsequent sale of Shares acquired upon vesting of the Restricted Stock Units and the receipt of any
      dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Restricted Stock Units to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax
      result.  Participant acknowledges and agrees that the ultimate liability for all Tax-Related Items legally due by Participant is and remains Participant’s responsibility.  Further, if Participant is subject to tax in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable,
      Participant acknowledges and agrees that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  Participant acknowledges that the Company has
      advised Participant to consult a tax adviser regarding Participant’s tax obligations prior to settlement of this RSU or issuance or disposition of any Shares in the jurisdiction where
        Participant is subject to tax.

  

  

  (b)      Tax Withholding.  Prior to the vesting of the Restricted Stock Units and settlement and issuance of Shares, Participant will pay or make adequate arrangements satisfactory to the Company and/or the
      Employer to satisfy all withholding and payment obligations of Tax-Related Items of Participant, the Company and/or the Employer.  In this regard, Participant authorizes the Company and/or the Employer, or their respective agents, at their
      discretion, to satisfy the obligations with regard to all Tax-Related Items by withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer, or withholding from proceeds of the sale of Shares
      acquired upon vesting of the Restricted Stock Units either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization) without further consent from Participant.  If withholding
      is performed from proceeds from the sale of Shares acquired upon vesting of the Restricted Stock Units, the Company may withhold or account for Tax-Related Items by considering maximum applicable rates, in which case Participant will receive a refund
      of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent.  Alternatively, or in addition, if permissible under applicable local law, the Committee, in its sole discretion and pursuant to such procedures as it
      may specify from time to time, may permit or require Participant to satisfy his or her obligations for Tax-Related Items, in whole or in part (without limitation) by (i) delivery of cash or check to the Company or the Employer, (ii) electing to have
      the Company withhold otherwise deliverable Shares having a Fair Market Value (measured as of the delivery date) equal to the minimum statutory amounts required to be withheld for federal, state, and local tax purposes, (iii) selling a sufficient
      number of Shares otherwise deliverable to Participant through such means as the Company may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld, or (iv) any other arrangement approved
      by the Company or the Committee (and in compliance with the Company’s insider trading policy, if applicable; provided, that if Participant is a Section 16 officer of the Company under
        the Securities Exchange Act of 1934, as amended, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from the alternatives above, any share withholding procedure will be
        subject to the express prior approval of the Committee, and the Committee shall establish the method prior to the taxable or withholding event.  Further, to the extent
      determined appropriate by the Company in its discretion, the Company will have the right (but not the obligation) to satisfy any obligations for Tax-Related Items by reducing the number of Shares otherwise deliverable to Participant.  If the
      obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested Restricted Stock Units, notwithstanding that a number of the Shares
      are held back solely in respect of the Tax-Related Items.  In the event the Company’s obligation to withhold arises prior to the delivery to Participant of Common Stock or it is
        determined after the delivery of Common Stock to Participant that the amount of the Company’s withholding obligation was greater than the amount withheld by Participant, Participant agrees to indemnify and hold the Company harmless from any failure
        by the Company to withhold the proper amount.

  

  

  
    - 4 -

    
      

  

  8.         Rights as Stockholder.  Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder, unless
      and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to Participant.  After such issuance, recordation and delivery, Participant will have
      all the rights of a stockholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.

  

  

  9.        No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED STOCK UNITS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING TO PROVIDE CONTINUOUS SERVICE TO THE
      EMPLOYER, OR THE COMPANY (OR A PARENT OR SUBSIDIARY OF THE COMPANY) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OF RESTRICTED STOCK UNITS OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THE AWARD
      AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED EMPLOYMENT OR CONSTINUOUS SERVICE FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL
      NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE EMPLOYER, THE COMPANY OR ANY PARENT OR SUBSIDIARY OF THE COMPANY TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER OR AS PROVIDING CONTINUOUS SERVICE AT ANY TIME.

  

  

  
    - 5 -

    
      

  

  10.       Nature of Grant.  In accepting the grant, Participant acknowledges, understands and agrees that:

  

  

  (a)        the Award of the Restricted Stock Units is
      voluntary and occasional and does not create any contractual or other right to receive future Awards of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past;

  

  

  (b)        all decisions with respect to future Awards of
      Restricted Stock Units or other awards, if any, will be at the sole discretion of the Company;

  

  

  (c)        Participant is voluntarily participating in
      the Plan;

  

  

  (d)        the Restricted Stock Units and the Shares
      subject to the Restricted Stock Units are not intended to replace any pension rights or compensation;

  

  

  (e)       the Restricted Stock Units and the Shares
      subject to the Restricted Stock Units, and the income and value of same, are not part of normal or expected compensation or salary for any purpose including, but not limited to, calculating any severance, resignation, termination, redundancy,
      dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

  

  

  (f)         the future value of the underlying Shares is
      unknown, indeterminable and cannot be predicted with certainty;

  

  

  (g)        unless otherwise provided in the Plan or by
      the Company in its discretion, the Restricted Stock Units and the benefits evidenced by the Award Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor be
      exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares;

  

  

  (h)        the Restricted Stock Units and the Shares
      subject to the Restricted Stock Units are not part of normal or expected compensation or salary for any purpose;

  

  

  (i)       no claim or entitlement to compensation or
      damages shall arise from forfeiture of the Restricted Stock Units resulting from the termination of Participant’s employment or status as providing Continuous Service to the Employer, the Company or any Affiliate of the Company (for any reason
      whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is a service provider or the terms of Participant’s employment or service agreement, if any), and in consideration of the Award
      of the Restricted Stock Units to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Employer, the Company or any Affiliate of the Company, waives his or her ability, if any, to bring
      any such claim, and releases the Company, any Affiliate and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant shall be
      deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim;

  

  

  
    - 6 -

    
      

  

  (j)        the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

  

  

  (k)        nothing in this Award Agreement (including, but not limited to, the vesting of the RSU or the issuance of the Shares subject to the RSU), the Plan or any covenant of good faith and fair dealing that may be found implicit in this
        Award Agreement or the Plan shall: (i) confer upon Participant any right to continue in the employ of, or affiliation with, the Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an Affiliate regarding the fact or
        nature of future positions, future work assignments, future compensation or any other term or condition of employment or affiliation; (iii) confer any right or benefit under this Award Agreement or the Plan unless such right or benefit has
        specifically accrued under the terms of this Agreement or Plan; or (iv) deprive the Company of the right to terminate Participant at will and without regard to any future vesting opportunity that Participant may have; and

  

  

  (l)        the Company has the right to reorganize, sell, spin-out or otherwise restructure one or more of its businesses or Affiliates at any time or from time to time, as it deems appropriate (a “reorganization”).  Such a reorganization could result in the termination of Participant’s Continuous Service, or the
        termination of Affiliate status of Participant’s employer and the loss of benefits available to Participant under this Agreement, including but not limited to, the termination of the right to continue vesting in the RSU. This Award Agreement, the
        Plan, the transactions contemplated hereunder and the vesting schedule set forth herein or any covenant of good faith and fair dealing that may be found implicit in any of them do not constitute an express or implied promise of continued engagement
        as an employee or consultant for the term of this Agreement, for any period, or at all, and shall not interfere in any way with the Company’s right to conduct a reorganization.

  

  

  11.      No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or
      sale of the underlying Shares.  Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

  

  

  
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  12.     Data Privacy.  Participant understands that the Company and the Employer may hold certain personal information about
        Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the
        Company, details of all Restricted Stock Units or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.  Participant understands that
        Data may be transferred to a stock plan service provider or other third party as may be selected by the Company to assist the Company with the implementation, administration and management of the Plan.  Participant understands that the recipients
        of the Data may be located in the United States or elsewhere, and that a recipient’s country of operations may have different data privacy laws and protections than Participant’s country of residence.  Participant understands that if Participant resides outside the United States, Participant may request a list with the names and addresses of any potential recipients of Data by contacting
        Participant’s local human resources representative. Participant
        authorizes the Company, any stock plan service provider or other third party selected by the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan
        to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan.  Participant understands that Data will be held only as long
        as is necessary to implement, administer and manage Participant’s participation in the Plan.  Participant understands that if Participant resides outside the United States, Participant may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary
        amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Participant’s local human resources representative.  Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or
        if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant’s consent is that the
        Company might not be able to grant Participant Restricted Stock Units or other equity awards or administer or maintain such awards.  Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability
        to participate in the Plan.  Participant hereby explicitly and unambiguously (i) consents to the collection, use and transfer, in electronic or other form,
        of Participant’s Data as described in this Award Agreement and any other RSU grant materials by and among, as applicable, the Company, the Employer and any other Affiliate of the Company, for the exclusive purpose of implementing, administering and
        managing Participant’s participation in the Plan, (ii) waives any privacy rights that Participant may have with respect to the Data, (iii) authorizes the Company and the Employer to store and transmit such information in electronic form, and (iv)
        authorizes the transfer of the Data to any jurisdiction that the Company or the Employer consider appropriate.

  

  

  13.      Address for Notices.  Any notice to be given to the Company under the terms of the Award Agreement will be addressed to the Company, Attention:  Chief Executive Officer, at the Company’s principal executive office as
      reflected in its periodic filings with the Securities and Exchange Commission, or at such other address as the Company may hereafter designate in writing.

  

  

  14.      Transferability; Domestic Relations Order.  Except to the limited extent provided in Section 6, this Award of Restricted Stock Units and the rights and privileges conferred hereby will not be transferred, assigned, pledged or
      hypothecated in any way (other than by will or by the laws of descent or distribution or court order, or unless otherwise permitted by the Committee on a case-by-case basis) and will not be subject to sale under execution, attachment or similar
      process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this Award of Restricted Stock Units, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar
      process, this Award of Restricted Stock Units and the rights and privileges conferred hereby immediately will become null and void.  Notwithstanding the foregoing, upon receiving written permission from the Board or the Committee, and provided that
      Participant and the designated transferee enter into transfer and other agreements required by the Company, Participant may transfer Participant’s right to receive the distribution of Shares or other consideration hereunder, pursuant to a domestic
      relations order or marital settlement agreement that contains the information required by the Company to effectuate the transfer.  Participant is encouraged to discuss the proposed terms of any division of this RSU with the Company prior to
      finalizing the domestic relations order or marital settlement agreement to verify that Participant may make such transfer, and if so, to help ensure the required information is contained within the domestic relations order or marital settlement
      agreement.

  

  

  
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  15.      Binding Agreement.  Subject to the limitation on the transferability of this Award of Restricted Stock Units contained herein, the Award Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal
      representatives, successors and assigns of the parties hereto.

  

  

  16.      Additional Conditions to Issuance of Shares.  If at any time the Company will determine, in its discretion, that the listing, registration, qualification or rule compliance of the Shares upon any securities exchange or under
      any state, federal or foreign law, the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to Participant (or his or her estate)
      hereunder, such issuance will not occur, unless and until such listing, registration, qualification, rule compliance, consent or approval will have been completed, effected or obtained free of any conditions not acceptable to the Company.  Where the
      Company determines that the delivery of the payment of any Shares will violate federal securities laws or other applicable laws, the Company will defer delivery until the earliest date at which the Company reasonably anticipates that the delivery of
      Shares no longer will cause such violation.  The Company will make all reasonable efforts to meet the requirements of any such state, federal or foreign law or securities exchange and to obtain any such consent or approval of any such governmental
      authority or securities exchange.  Subject to Section 22 of the Award Agreement, the Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the Restricted Stock Units and on any Shares acquired upon
      vesting of the Restricted Stock Units to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to
      accomplish the foregoing.

  

  

  17.      Plan Governs.  The Award Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Award Agreement and one or more provisions of the Plan, the provisions
      of the Plan will govern.

  

  

  18.      Committee Authority.  The Committee will have the power to interpret the Plan and the Award Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and
      to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Restricted Stock Units have vested).  All actions taken and all interpretations and determinations made by the Committee in good faith will
      be final and binding upon Participant, the Company and all other interested persons.  No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Award
      Agreement.

  

  

  
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  19.      Electronic Delivery and Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to this Award of Restricted Stock Units or future Restricted Stock Units that may be awarded under the Plan
      by electronic means or request Participant’s consent to participate in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any online or electronic
      system established and maintained by the Company or a third party designated by the Company, and consents to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses, financial reports of the Company, and
      all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Restricted Stock Units and current or
      future participation in the Plan.  Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery
      determined at the Company’s discretion.  Participant acknowledges that Participant may receive from the Company a paper copy of any documents delivered electronically at no cost if Participant contacts the Company by telephone, through a postal
      service or electronic mail.  Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide
      on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails.  Also, Participant understands that Participant’s consent may be revoked or changed, including any change in
      the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail to the
      chief financial officer of the Company.  Finally, Participant understands that Participant is not required to consent to electronic delivery.

  

  

  20.      Insider Trading Restrictions/Market Abuse Laws. Participant acknowledges that, depending on Participant’s country, Participant may be subject to insider trading
        restrictions and/or market abuse laws, which may affect Participant’s ability to acquire or sell the Shares under the Plan during such times as Participant is considered to have “inside information” or material non-public information regarding the
        Company. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  Participant acknowledges that it is Participant’s
        responsibility to comply with any applicable restrictions, and Participant is advised to speak to Participant’s personal advisors regarding such matters.

  

  

  21.       Imposition of Other Requirements. The Company reserves the right to impose other requirements on participation in the Plan, on the RSUs and on any Shares acquired
        under the Plan or this Award Agreement, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to
        accomplish the foregoing.

  

  

  
    - 10 -

    
      

  

  22.      Clawback or Recoupment.  The RSUs, and any compensation paid or Shares issued pursuant to the RSU, shall be subject to clawback or recoupment pursuant to any
        compensation clawback or recoupment policy adopted by the Board or the Company, or as may be required by law including without limitation the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing regulations thereunder, during
        the term of Participant’s employment or other service that is applicable to executive officers, employees, directors or other service providers of the Company, which policies or law may, in addition to any other remedies available under such
        policies or laws, require the cancellation of Participant’s RSUs (whether vested or unvested) and the recoupment of any gains realized with respect to Participant’s RSUs.  No
        recovery of compensation under such a clawback policy or applicable law will be an event giving rise to a right to voluntarily terminate employment upon a resignation for “good reason,” or for a “constructive termination” or any similar term under
        any plan of or agreement with the Company.

  

  

  23.      Effect on Other Employee Benefit Plans.  The value of the RSU subject to this Award Agreement shall not be included as compensation, earnings, salaries, or other
        similar terms used when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the Company or any Affiliate except as such plan otherwise expressly provides.  The Company expressly reserves its rights to amend,
        modify, or terminate any or all of the employee benefit plans of the Company or any Affiliate.

  

  

  24.      Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of the Award Agreement.

  

  

  25.      Agreement Severable.  In the event that any provision in the Award Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any
      effect on, the remaining provisions of the Award Agreement.

  

  

  26.    Modifications to the Award Agreement.  The Award Agreement constitutes the entire understanding of the parties concerning the subjects covered.  Participant expressly warrants that he or she is not accepting the Award
      Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Unless otherwise set forth herein, modifications to the Award Agreement or the Plan can be made only in an express written contract executed by
      a duly authorized officer of the Company.  Notwithstanding anything to the contrary in the Plan or the Award Agreement, the Company reserves the right to revise the Award Agreement as it deems necessary or advisable, in its sole discretion and
      without the consent of Participant, to comply with Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Section 409A in connection to this Award of Restricted Stock Units.

  

  

  27.      Amendment, Suspension or Termination of the Plan.  By accepting this Award of Restricted Stock Units, Participant expressly warrants that he or she has received an Award of Restricted Stock Units under the Plan, and has
      received, read and understood a description of the Plan.  Participant understands that the Plan is discretionary in nature, is established voluntarily by the Company, and may be amended, suspended or terminated by the Company at any time, to the
      extent permitted by the Plan.

  

  

  28.      Waiver.  Participant acknowledges that a waiver by the Company of breach of any provision of the Award Agreement by Participant shall not operate or be construed as a waiver of any other provision of the Award Agreement, or
      of any subsequent breach by Participant or any other participant.

  

  

  
    - 11 -

    
      

  

  29.      Governing Law and Venue.  The Award Agreement will be governed by the laws of California without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this Award of
      Restricted Stock Units or the Award Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the federal and states for the judicial district in which Sacramento County, California, is located, and agree that such
      litigation will be conducted in the courts of Sacramento County, California, or the federal courts for the district in which Sacramento County, California is located, and no other courts.

  

  

  30.      Language.  If Participant has received the Award Agreement or any other document related to this Award of Restricted Stock Units and/or the Plan translated into a language other than English and if the meaning of the
      translated version is different than the English version, the English version will control.

  

  

  31.      Capitalization Adjustments.  In the event of any changes in the capital structure or business of the company, the number of Restricted Stock Units subject to this Award and the number of Shares deliverable with respect to
      such Restricted Stock Unit may be adjusted from time to time as provided in the Plan.  Any additional Restricted Stock Units, Shares, cash or other property that becomes subject to the Award pursuant to this Section shall be subject, in a manner
      determined by the Committee, to the same forfeiture restrictions, restrictions on transferability, and time and manner of delivery as applicable to the other Restricted Stock Units and Shares covered by this Award.

  

  

  

  

  
    - 12 -

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