Document:

bicx_ex103.htm

EXHIBIT 10.3
  
 THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.
  
 COMMON STOCK PURCHASE WARRANT
  
 BIOCORRX INC.
  
  	Warrant Shares: 	 500,000 Initial Issue Date: December 12, 2018

   
 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Vista Capital Investments, LLC, or its assigns (the “Investor” or the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Initial Issue Date (the “Initial Exercise Date”) and on or prior to the close of business on the three (3) year anniversary of the Initial Exercise Date (as subject to adjustment hereunder, the “Termination Date”), to subscribe for and purchase from BioCorRx Inc., a Nevada corporation (the “Issuer” or the “Company”), up to 500,000 shares (as subject to adjustment herein, the “Warrant Shares”) of common stock, par value of $0.001, of the Company (the “Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 1.2. 
  
 ARTICLE 1 EXERCISE RIGHTS
  
 The Holder will have the right to exercise this Warrant to purchase shares of Common Stock as set forth below. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement, dated December 12, 2018 between the Company and the Holder (the “Purchase Agreement”).
  
 1.1 Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, from and after the Initial Exercise Date, and then at any time, by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile or emailed copy of the Notice of Exercise form annexed hereto. Within three (3) Business Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or check drawn on a United States bank unless the cashless exercise procedure specified in Section 1.3 below is specified in the applicable Notice of Exercise. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise form within 72 hours of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. “Business Day” shall mean any day on which the banks are open for business in New York, New York. 
   	 
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 1.2 Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $0.20 per share, subject to adjustment hereunder (the “Exercise Price”). 
  
 1.3 Cashless Exercise. If at any time after the earlier of (i) the six (6) month anniversary of the date of the Purchase Agreement and (ii) the completion of the then-applicable holding period required by Rule 144, or any successor provision then in effect, there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
  
 (A) = the Closing Share Price on the trading day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;
  
 (B) = the Exercise Price of this Warrant, as adjusted hereunder; and 
  
 (X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.
  
 1.4 Delivery of Warrant Shares. Warrant Shares purchased hereunder will be delivered to Holder by 2:30 pm EST within five (5) Business Days of Notice of Exercise by “DWAC/FAST” electronic transfer (such date, the “Warrant Share Delivery Date”). For example, if Holder delivers a Notice of Exercise to the Company at 5:15 pm eastern time on Monday January 2nd, the Company’s transfer agent must deliver shares to Holder’s broker via “DWAC/FAST” electronic transfer by no later than 2:30 pm eastern time on Monday, January 9th. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date of delivery of the Notice of Exercise. Holder may assess penalties or liquidated damages (both referred to herein as “penalties”) as follows. For each exercise, in the event that shares are not delivered by the fifth Business Day (inclusive of the day of exercise), the Company shall pay the Holder in cash a penalty of $500 per day for each day after the fifth Business Day (inclusive of the day of exercise) until share delivery is made. The Company will not be subject to any penalties once its transfer agent correctly processes the shares to the DWAC system. 
  
 1.5 Delivery of Warrant. The Holder shall not be required to physically surrender this Warrant to the Company. If the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, this Warrant shall automatically be cancelled without the need to surrender the Warrant to the Company for cancellation. If this Warrant shall have been exercised in part, the Company shall, at the request of Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant and, for purposes of Rule 144, shall tack back to the original date of this Warrant.
  
 1.6 Warrant Exercise Rescission Rights. If the Warrant Shares are not delivered by DWAC/FAST electronic transfer or in accordance with the timeframe stated in Section 1.4, Holder may, at any time prior to selling those Warrant Shares rescind such exercise, in whole or in part, in which case the Company must, within three (3) days of receipt of notice from the Holder, repay to the Holder the portion of the exercise price so rescinded and reinstate the portion of the Warrant and equivalent number of Warrant Shares for which the exercise was rescinded and, for purposes of Rule 144, such reinstated portion of the Warrant and the Warrant Shares shall tack back to the original date of this Warrant. If Warrant Shares were issued to Holder prior to Holder’s rescission notice, upon return of payment from the Company, Holder will, within three (3) days of receipt of payment, commence procedures to return the Warrant Shares to the Company.
   	 
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 1.7 Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise.
  
 1.8 Holder’s Exercise Limitations. Unless otherwise agreed in writing by both the Company and the Holder, at no time will the Holder exercise any amount of this Warrant to purchase Common Stock that would result in the Holder owning more than 4.99% of the Common Stock outstanding of the Company (the “Beneficial Ownership Limitation”). Upon the written or oral request of Holder, the Company shall within twenty-four (24) hours confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.
  
 1.9 Physical Delivery of Warrant Shares. In the event that the Warrant Shares are required by securities laws to contain a restrictive legend, then the Holder shall be delivered a physical certificate representing the Warrant Shares within 10 business days, notwithstanding anything contained herein in Sections 1.4, 1.5 and 1.6, which sections shall be deemed inapplicable to the Warrant exercise being completed by the Holder. 
  
 ARTICLE 2 ADJUSTMENTS
  
 2.1 Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification (or issues by reorganization) of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 2.1 shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification (or reorganization). By way of example only, if the Company combines outstanding shares of Common Stock, for example, 250 million shares, into 25 million shares (via a 1 for 10 reverse stock split), the Exercise Price will be multiplied by 10 (250 million divided by 25 million equals 10). In this example, if the Exercise Price had been $0.20, it will now be $2.00. In addition, the Warrant Shares will be combined into 50,000 shares by dividing the existing amount of 500,000 by 10. The aggregate exercise price of this Warrant will still equal $100,000.
   	 
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 2.2 Subsequent Equity Sales. If the Company at any time while this Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock (including pursuant to the terms of any outstanding securities issued prior to the issuance of this security (including, but not limited to, warrants, convertible notes, or other agreements)) or any security entitling the holder thereof (including sales or grants to the Holder) to acquire Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock (a “Common Stock Equivalent”), at an effective price per share (excluding any inducement shares issued in connection with the issuance of a promissory note) less than the Exercise Price then in effect (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance at such effective price regardless of whether such holder has received or ever receives shares at such effective price), then simultaneously with the consummation of each Dilutive Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price and consequently the number of Warrant Shares issuable hereunder shall be increased such that the Aggregate Exercise Amount hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the Aggregate Exercise Amount prior to such adjustment. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. The Company shall notify the Holder, in writing, no later than two business days following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject to this Section 2.2, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). In addition, the Company and/or its transfer agent shall provide the Holder, whenever the Holder requests at any time while this Warrant is outstanding, a schedule of all issuances of Common Stock or Common Stock Equivalents since the date of the Purchase Agreement, including the applicable issuance price, or applicable reset price, exchange price, conversion price, exercise price and other pricing terms. The term issuances shall also include all agreements to issue, or prospectively issue Common Stock or Common Stock Equivalents, regardless of whether the issuance contemplated by such agreement is consummated. The Company shall notify the Holder in writing of any issuances within two (2) business days such issuance. For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 2.2, upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion or exercise price at which such securities may be converted or exercised. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may sell securities at a future determined price. Notwithstanding the foregoing, this Section 2.2 shall not apply in respect of an Exempt Issuance. “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by the Board of Directors, (b) securities issuable pursuant to this Warrant, the Purchase Agreement or any other agreement delivered in connection herewith or upon the exercise or exchange of or conversion of any Securities issued hereunder, (c) securities issued pursuant to acquisitions or strategic transactions, provided that any such issuance shall only be to a person (or to the equity holders of a person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, (d) securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition, or similar business combination approved by the Board of Directors, or (e) securities issued pursuant to an equipment loan or leasing arrangement, real property leasing arrangement or debt financing from a bank or similar financial institution approved by the Board of Directors.
   	 
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 2.3 Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock, then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.
  
 2.4 Notice to Holder. Whenever the Exercise Price is adjusted pursuant to any provision of this Article 2, the Company shall promptly notify the Holder (by written notice) setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
  
 ARTICLE 3 COMPANY COVENANTS
  
 3.1 No Adverse Actions. Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, or through any reorganization, transfer of assets, consolidation, merger, dissolution, , avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
  
 ARTICLE 4 MISCELLANEOUS
  
 4.1 Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.
   	 
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 4.2 Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, by a written assignment of this Warrant duly executed by the Holder or its agent or attorney. If necessary to obtain a new warrant for any assignee, the Company, upon surrender of this Warrant, shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and such new Warrants, for purposes of Rule 144, shall tack back to the original date of this Warrant. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.
  
 4.3 Assignability. The Company may not assign this Warrant without prior written consent of the Holder. This Warrant will be binding upon the Company and its successors, and will inure to the benefit of the Holder and its successors and assigns, and may be assigned by the Holder to anyone of its choosing without the Company’s approval.
  
 4.4 Notices. Any notice required or permitted hereunder must be in writing and either personally served, sent by facsimile or email transmission, or sent by overnight courier. Notices will be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the Business Day after such notice is deposited with the courier service for delivery.
  
 4.5 Governing Law, Legal Proceedings, and Arbitration. THIS WARRANT WILL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
  
 ANY ACTION BROUGHT BY EITHER PARTY AGAINST THE OTHER ARISING OUT OF OR RELATED TO THIS WARRANT, OR ANY OTHER AGREEMENTS BETWEEN THE PARTIES, SHALL BE COMMENCED ONLY IN THE STATE OR FEDERAL COURTS OF GENERAL JURISDICTION LOCATED IN THE STATE OF CALIFORNIA, EXCEPT THAT ALL SUCH DISPUTES BETWEEN THE PARTIES SHALL BE SUBJECT TO ALTERNATIVE DISPUTE RESOLUTION THROUGH BINDING ARBITRATION UPON AGREEMENT BY PARTIES. The Parties agree that, in connection with any such arbitration proceeding, each shall submit or file any claim which would constitute a compulsory counterclaim within the same proceeding as the claim to which it relates. Any such claim that is not submitted or filed in such proceeding shall be waived and such party will forever be barred from asserting such a claim. The Parties agree to submit to the jurisdiction of such courts or to such arbitration panel, as the case may be.
  
 If the Investor elects alternative dispute resolution by arbitration, the arbitration proceedings shall be conducted in California and administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules and Mediation Procedures in effect on the Initial Issue Date of this Warrant, except as modified by this Warrant. The American Arbitration Association must receive the demand in writing and signed by both Parties for arbitration prior to the date when the institution of legal or equitable proceedings would be barred by the applicable statute of limitations, unless legal or equitable proceedings between the parties have already commenced, and the receipt by the American Arbitration Association of a written demand for arbitration also shall constitute the institution of legal or equitable proceedings for statute of limitations purposes. The parties shall be entitled to limited discovery at the discretion of the arbitrator(s) who may, but are not required to, allow depositions. The parties acknowledge that the arbitrators’ subpoena power is not subject to geographic limitations. The arbitrator(s) shall have the right to award individual relief which he or she deems proper under the evidence presented and applicable law and consistent with the parties’ rights to, and limitations on, damages and other relief as expressly set forth in this Warrant. The award and decision of the arbitrator(s) shall be conclusive and binding on the Parties, and judgment upon the award may be entered in any court of competent jurisdiction. The Investor reserves the right, but shall have no obligation, to advance the Issuer’s share of the costs, fees and expenses of any arbitration proceeding, including any arbitrator fees, in order for such arbitration proceeding to take place, and by doing so will not be deemed to have waived or relinquished its right to seek the recovery of those amounts from the arbitrator, who shall provide for such relief in the final award, in addition to the costs, fees, and expenses that are otherwise recoverable. The foregoing agreement to arbitrate shall be specifically enforceable under applicable law in any court having jurisdiction thereof.
   	 
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 4.6 Delivery of Process by Holder to the Company. In the event of any action or proceeding by Holder against the Company, and only by Holder against the Company, service of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made by Holder via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server upon mailing or delivering a copy of such process to the Company at its last known address as set forth in its most recent SEC filing.
  
 4.7 No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1.1. So long as this Warrant is unexercised, this Warrant carries no voting rights and does not convey to the Holder any “control” over the Company, as such term may be interpreted by the SEC under the Securities Act or the Exchange Act, regardless of whether the price of the Company’s Common Stock exceeds the Exercise Price.
  
 4.8 Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
  
 4.9 Attorney’s Fees. In the event any attorney is employed by either party to this Warrant with regard to any legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Warrant or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Warrant, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.
  
 4.10 Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Warrant, Holder has the right to have any such opinion provided by its counsel. 
   	 
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 4.11 Amendment; Waivers. The term “Warrant” and all references thereto, as used throughout this instrument, means this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented. No provision of this Warrant may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Holder, or in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Warrant shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any part to exercise any right hereunder in any manner impair the exercise of any such right.
  
 4.12 Nonwaiver. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.
  
 4.13 No Shorting. Holder agrees that so long as this Warrant remains unexercised in whole or in part, Holder will not enter into or effect any “short sale” of the common stock or hedging transaction which establishes a net short position with respect to the common stock of the Company. The Company acknowledges and agrees that as of the date of delivery to the Company of a fully and accurately completed Notice of Exercise, Holder immediately owns the common shares described in the Notice of Exercise and any sale of those shares issuable under such Notice of Exercise would not be considered short sales.
  
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 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.
  
  	 	COMPANY: BioCorRx Inc.	
	 	    	 	 
		By:		
	  
	 Name:
	Lourdes Felix	 
	 	Title:	Chief Financial Officer	 
	  
	   
	  
	  

	  
	 HOLDER: VISTA CAPITAL INVESTMENTS, LLC
	  

	  
	    
	  
	  

	  
	 By:
	  
	  

	  
	 Name:
	 David Clark
	  

	 	Title:	President	 

  
  	 
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 NOTICE OF EXERCISE
  
 TO: BIOCORRX INC.
  
 (1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
  
 (2) Payment shall take the form of (check applicable box):
  
 [ ] in lawful money of the United States; or
  
 [ ] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 1.3, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in Section 1.3.
  
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:
  
 _______________________________
  
 The Warrant Shares shall be delivered to the following DWAC Account Number:
  
 _______________________________
  
 _______________________________
  
 _______________________________
  
 (4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.
  
 [SIGNATURE OF HOLDER]
  
 Name: _______________________________________
 Date: _______________________________________
  
  
  	10a2018timebasedltipunitaw

                            HUDSON PACIFIC PROPERTIES, INC.                            AND HUDSON PACIFIC PROPERTIES, L.P.                             TIME-BASED LTIP UNIT AGREEMENT          This LTIP Unit Agreement (this “Agreement”), dated as of [______] (the “Grant Date”), is made by and  between Hudson Pacific Properties, Inc., a Maryland corporation (the “Company”), Hudson Pacific Properties, L.P.,  a Maryland limited partnership (the “Partnership”) and [_______] (the “Participant”). All capitalized terms used  but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan (as defined below)  and/or the Partnership Agreement (as defined below), as applicable.         WHEREAS,  the  Company  and  the  Partnership  maintain  the  Amended  and  Restated  Hudson  Pacific  Properties, Inc. and Hudson Pacific Properties, L.P. 2010 Incentive Award Plan (as amended from time to time, the  “Plan”);          WHEREAS, the Company and the Partnership wish to carry out the Plan (the terms of which are hereby  incorporated by reference and made a part of this Agreement);          WHEREAS, Section 9.7 of the Plan provides for the issuance of Profits Interest Units (as defined in the  Plan) to Eligible Individuals for the performance of services to or for the benefit of the Partnership in the Eligible  Individual’s capacity as a partner of the Partnership;          WHEREAS, Profits Interest Units constitute LTIP Units for purposes of the Fourth Amended and Restated  Agreement  of  Limited  Partnership  of  Hudson  Pacific  Properties, L.P.,  as  amended  from  time  to  time  (the  “Partnership Agreement”); and         WHEREAS, the Administrator has determined that it would be to the advantage and in the best interest of  the Company and the Partnership to issue the LTIP Units provided for herein (the “Award”) to the Participant as an  inducement to enter into or remain in the service of the Company, the Partnership and/or any Subsidiary, and as an  additional incentive during such service, and has advised the Company thereof.         NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and  valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:         1.     Issuance of Award. Pursuant to the Plan, in consideration of the Participant’s agreement to provide  services to or for the benefit of the Partnership, the Partnership hereby (a) issues to the Participant an award of  [______] LTIP Units and (b) if not already a Partner, admits the Participant as a Partner of the Partnership on the  terms  and  conditions  set  forth  herein,  in  the  Plan  and  in  the  Partnership  Agreement.   The  Partnership  and  the  Participant acknowledge and agree that the LTIP Units are hereby issued to the Participant for the performance of  services to or for the benefit of the Partnership in his or her capacity as a Partner or in anticipation of the Participant  becoming a Partner.  Upon receipt of the Award, the Participant shall, automatically and without further action on  his or her part, be deemed to be a party to, signatory of and bound by the Partnership Agreement.  At the request of  the Partnership, the Participant shall execute the Partnership Agreement or a joinder or counterpart signature page  thereto.  The Participant acknowledges that the Partnership may from time to time issue or cancel (or otherwise  modify) LTIP Units and/or other equity interests in accordance with the terms of the Partnership Agreement.  The  Award shall have the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and  conditions of redemption and conversion set forth herein, in the Plan and in the Partnership Agreement.         2.     LTIP Units Subject to Partnership Agreement; Transfer Restrictions.                  (a)    The Award and the LTIP Units are subject to the terms of the Plan and the terms of the  Partnership  Agreement,  including,  without  limitation,  the  restrictions  on  transfer  of  Units  (including,  without                                                 1    US-DOCS\104383499.4 

 

 limitation, LTIP Units) set forth in Articles 11 and 18 of the Partnership Agreement.  Any permitted transferee of   the Award or LTIP Units shall take such Award or LTIP Units subject to the terms of the Plan, this Agreement, and   the Partnership Agreement.  Any such permitted transferee must, upon the request of the Partnership, agree to be   bound by the Plan, the Partnership Agreement, and this Agreement, and shall execute the same on request, and must   agree to such other waivers, limitations, and restrictions as the Partnership or the Company may reasonably require.    Any Transfer of the Award or LTIP Units which is not made in compliance with the Plan, the Partnership Agreement   and this Agreement shall be null and void and of no effect ab initio.                   (b)   Without  the  consent  of  the  Administrator  (which  it  may  give  or withhold  in  its  sole  discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively,  “Transfer”) any unvested LTIP Units or any portion of the Award attributable to such unvested LTIP Units (or any  securities into which such unvested LTIP Units are converted or exchanged), other than by will or pursuant to the  laws of descent and distribution (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions  shall not apply to any Transfer of unvested LTIP Units or of the Award to the Partnership or the Company.                 (c)   Notwithstanding  anything  to  the  contrary  contained  herein,  the Participant  shall  not,   without the consent of the Administrator (which shall not be unreasonably withheld), Transfer any vested LTIP   Units or convert the LTIP Units into Partnership common units prior to the third anniversary of the date on which   the Restrictions (as defined below) hereunder lapse or expire and the LTIP Units vest (the “Post-Vesting Transfer  Restrictions”); provided, however, that the Post-Vesting Transfer Restrictions shall not apply to (i) any Transfer of  LTIP Units to the Partnership or the Company (including by means of a redemption), (ii) any Transfer in satisfaction  of any withholding obligations with respect to the Award, (iii) any Transfer following the Participant’s Termination  of Service, including without limitation by will or pursuant to the laws of descent and distribution or (iv) any  Transfer upon the occurrence of, and in connection with, a Change in Control with respect to the LTIP Units (or  such earlier time as is necessary in order for the Participant to participate in such Change in Control transaction  with respect to the LTIP Units and receive the consideration payable with respect thereto in connection with such  Change in Control).  For purposes of this Agreement, “Restrictions” means the exposure to forfeiture set forth in  Sections 3 and 4 and the restrictions on sale or other transfer set forth in this Section 2(b).          3.     Vesting.  Subject to Section 4 hereof, the Restrictions shall lapse and the LTIP Units shall vest and   become nonforfeitable with respect to one-third (1/3) of the LTIP Units on each of the first, second, and third   anniversaries of the Grant Date, subject to the Participant’s continued service through the applicable vesting date.    In addition, subject to the limitations imposed under Section 13.8 of the Plan, the vesting of the LTIP Units and   lapsing of Restrictions may be accelerated pursuant to Section 13.2 of the Plan.          4.     Effect of Termination of Service.  In the event of the Participant’s Termination of Service for any   reason, any and all LTIP Units that have not vested as of the date of such Termination of Service (after taking into  account any accelerated vesting and lapsing of Restrictions which may occur in connection with such termination  (if  any))  shall  automatically  and  without  further  action  be  cancelled  and  forfeited  without  payment  of  any  consideration therefor, and the Participant shall have no further right to or interest in such LTIP Units.  No LTIP  Units which have not vested as of the date of the Participant’s Termination of Service shall thereafter become  vested.          5.     Execution  and  Return  of  Documents  and  Certificates.   At  the  Company’s  or  the  Partnership’s   request,  the  Participant  hereby  agrees  to  promptly  execute,  deliver  and  return  to  the  Partnership  any  and  all   documents  or  certificates  that  the  Company  or  the  Partnership  deems  necessary  or  desirable  to  effectuate  the   cancellation and forfeiture of the unvested LTIP Units and the portion of the Award attributable to the unvested   LTIP Units, and/or to effectuate the transfer or surrender of such unvested LTIP Units and portion of the Award to   the Partnership.                                                   2      US-DOCS\104383499.4 

 

       6.     Covenants,  Representations  and  Warranties.  The  Participant  hereby  represents,  warrants,   covenants, acknowledges and agrees on behalf of the Participant and his or her spouse, if applicable, that:                 (a)   Investment.  The Participant is holding the Award and the LTIP Units for the Participant’s   own account, and not for the account of any other Person.  The Participant is holding the Award and the LTIP Units   for investment and not with a view to distribution or resale thereof except in compliance with applicable laws   regulating securities.                 (b)    Relation to the Partnership.  The Participant is presently an executive officer and employee   of, or consultant to, the Partnership or a Subsidiary, or is otherwise providing services to or for the benefit of the   Partnership, and in such capacity has become personally familiar with the business of the Partnership.                 (c)   Access to Information.  The Participant has had the opportunity to ask questions of, and to   receive answers from, the Partnership with respect to the terms and conditions of the transactions contemplated   hereby and with respect to the business, affairs, financial conditions, and results of operations of the Partnership.                 (d)    Registration.  The  Participant  understands  that  the  LTIP  Units  have  not  been  registered   under the Securities Act of 1933, as amended (the “Securities Act”), and the LTIP Units cannot be transferred by  the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is  available.  The Partnership has made no agreements, covenants or undertakings whatsoever to register the transfer  of the LTIP Units under the Securities Act.  The Partnership has made no representations, warranties, or covenants   whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for   limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, will be available.  If an   exemption under Rule 144 is available at all, it will not be available until at least six months from issuance of the   Award and then not unless the terms and conditions of Rule 144 have been satisfied.                 (e)    Public Trading.  None of the Partnership’s securities are presently publicly traded, and the   Partnership has made no representations, covenants or agreements as to whether there will be a public market for  any of its securities.                 (f)    Tax Advice.  The Partnership has made no warranties or representations to the Participant   with respect to the income tax consequences of the transactions contemplated by this Agreement (including, without   limitation, with respect to the decision of whether to make an election under Section 83(b) of the Code), and the   Participant  is  in  no  manner  relying  on  the  Partnership  or  its  representatives  for  an  assessment  of  such  tax   consequences.  Participant hereby recognizes that the Internal Revenue Service has proposed regulations under   Sections 83 and 704 of the Code that may affect the proper treatment of the LTIP Units for federal income tax   purposes.  In the event that those proposed regulations are finalized, the Participant hereby agrees to cooperate with  the Partnership in amending this Agreement and the Partnership Agreement, and to take such other action as may   be  required,  to  conform  to  such regulations.   Participant  hereby  further  recognizes  that  the  U.S.  Congress  is   considering legislation that would change the federal tax consequences of owning and disposing of LTIP Units.    The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his   or her ownership of the LTIP Units.          7.     Capital  Account.   The  Participant  shall  make  no  contribution  of  capital  to  the  Partnership  in   connection with the Award and, as a result, the Participant’s Capital Account balance in the Partnership immediately   after its receipt of the LTIP Units shall be equal to zero, unless the Participant was a Partner in the Partnership prior   to such issuance, in which case the Participant’s Capital Account balance shall not be increased as a result of its   receipt of the LTIP Units.                  8.     Redemption Rights.  Notwithstanding the contrary terms in the Partnership Agreement, Partnership   Units which are acquired upon the conversion of the LTIP Units shall not, without the consent of the Partnership                                                  3      US-DOCS\104383499.4 

 

 (which may be given or withheld in its sole discretion), be redeemed pursuant to Section 15.1 of the Partnership   Agreement within two years of the date of the issuance of such LTIP Units.                  9.     Section 83(b) Election.  The Participant covenants that the Participant shall make a timely election   under Section 83(b) of the Code (and any comparable election in the state of the Participant’s residence) with respect   to the LTIP Units covered by the Award, and the Partnership hereby consents to the making of such election(s).  In   connection with such election, the Participant and the Participant’s spouse, if applicable, shall promptly provide a   copy of such election to the Partnership.  Instructions for completing an election under Section 83(b) of the Code   and a form of election under Section 83(b) of the Code are attached hereto as Exhibit A.  The Participant represents   that the Participant has consulted any tax advisor(s) that the Participant deems advisable in connection with the   filing of an election under Section 83(b) of the Code and similar state tax provisions. The Participant acknowledges   that it is the Participant’s sole responsibility, and not the Company’s or the Partnership’s, to timely file an election   under  Section  83(b)  of  the  Code  (and  any  comparable  state  election),  even  if  the  Participant  requests  that  the   Company or the Partnership, or any representative of the Company or the Partnership, make such filing on the   Participant’s behalf. The Participant should consult his or her tax advisor to determine if there is a comparable   election to file in the state of his or her residence.                    10.    Ownership Information.  The Participant hereby covenants that so long as the Participant holds any   LTIP  Units,  at  the  request  of  the  Partnership,  the  Participant shall  disclose  to  the  Partnership  in  writing  such   information relating to the Participant’s ownership of the LTIP Units as the Partnership reasonably believes to be   necessary or desirable to ascertain in order to comply with the Code or the requirements of any other appropriate   taxing authority.                  11.    Taxes. The Partnership and the Participant intend that (a) the LTIP Units be treated as a “profits   interest” as defined in Internal Revenue Service Revenue Procedure 93-27, as clarified by Revenue Procedure 2001-  43, (b) the issuance of such units not be a taxable event to the Partnership or the Participant as provided in such   revenue procedure, and (c) the Partnership Agreement, the Plan and this Agreement be interpreted consistently with   such  intent.  In  furtherance  of  such  intent,  effective  immediately  prior  to  the  issuance  of  the  LTIP  Units,  the   Partnership may revalue all Partnership assets to their respective gross fair market values, and make the resulting   adjustments to the “Capital Accounts” (as defined in the Partnership Agreement) of the partners, in each case as set  forth  in  the  Partnership  Agreement.  The  Company,  the  Partnership  or  any  Subsidiary  may  withhold  from  the  Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or employment  taxes resulting from the issuance of the Award hereunder, from the vesting or lapse of any restrictions imposed on  the Award, or from the ownership or disposition of the LTIP Units.                  12.    Remedies.  The Participant shall be liable to the Partnership for all costs and damages, including   incidental and consequential damages, resulting from a disposition of the Award or the LTIP Units which is in   violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees   that the Partnership shall be entitled to obtain specific performance of the obligations of the Participant under this   Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the   same. The Participant will not urge as a defense that there is an adequate remedy at law.            13.    Restrictive Legends.  Certificates evidencing the Award, to the extent such certificates are issued,   may  bear  such  restrictive  legends  as  the  Partnership  and/or  the  Partnership’s  counsel  may  deem  necessary  or   advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends   or any legends similar thereto:                         “The securities represented hereby have not been registered under the Securities Act of 1933, as                amended (the “Securities Act”). Any transfer of such securities will be invalid unless a                Registration Statement under the Securities Act is in effect as to such transfer or in the opinion of                                                  4      US-DOCS\104383499.4 

 

              counsel for Hudson Pacific Properties, L.P. (the “Partnership”) such registration is unnecessary in                order for such transfer to comply with the Securities Act.”                                “The securities represented hereby are subject to forfeiture, transferability and other restrictions                as set forth in (i) a written agreement with the Partnership, (ii) the Amended and Restated Hudson                Pacific Properties, Inc., and Hudson Pacific Properties, L.P. 2010 Incentive Award Plan and (iii)                the Fourth Amended and Restated Agreement of Limited Partnership of Hudson Pacific                Properties, L.P., in each case, as has been and as may in the future be amended (or amended and                restated) from time to time, and such securities may not be sold or otherwise transferred except                pursuant to the provisions of such documents.”                        14.    Restrictions on Public Sale by the Participant.  To the extent not inconsistent with applicable law,   the Participant agrees not to effect any sale or distribution of the LTIP Units or any similar security of the Company   or the Partnership, or any securities convertible into or exchangeable or exercisable for such securities, including a   sale pursuant to Rule 144 under the Securities Act, during the 14 days prior to, and for a period of up to 90 days   beginning on the date of the pricing of any public or private debt or equity securities offering by the Company or   the Partnership (except as part of such offering), if and to the extent requested in writing by the Partnership or the   Company in the case of a non-underwritten public or private offering or if and to the extent requested in writing by   the  managing  underwriter  or  underwriters  (or  initial  purchaser or  initial  purchasers,  as  the  case  may  be)  and   consented to by the Partnership or the Company, which consent may be given or withheld in the Partnership’s or   the  Company’s  sole  and  absolute  discretion,  in  the  case  of  an  underwritten  public  or  private  offering  (such   agreement  to  be  in  the  form  of  a  lock-up  agreement  provided  by the  Company,  the  Partnership,  managing   underwriter or underwriters, or initial purchaser or initial purchasers, as the case may be).            15.    Code Section 409A.                           (a)    To the extent applicable, this Agreement shall be interpreted in accordance with Section  409A  of  the  Code  and  Department  of  Treasury  regulations  and  other  interpretive  guidance  issued  thereunder,  including without limitation any such regulations or other guidance that may be issued after the effective date of  this Agreement. Notwithstanding any provision of this Agreement to the contrary, in the event that following the  effective date of this Agreement, the Company or the Partnership determines that the Award may be subject to  Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury  guidance as may be issued after the effective date of this Agreement), the Company or the Partnership may adopt  such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and  procedures with retroactive effect), or take any other actions, that the Company or the Partnership determines are  necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax  treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A  of the Code and related Department of Treasury guidance; provided, however, that this Section 15 shall not create  any obligation on the part of the Company, the Partnership or any Subsidiary to adopt any such amendment, policy  or procedure or take any such other action, and none of the Company, the Partnership or any Subsidiary shall have  any obligation to indemnify any person for any taxes imposed under or by operation of Section 409A of the Code.                                (b)    Potential Six-Month Delay.  Notwithstanding anything to the contrary in this Agreement,   no amounts shall be paid to the Participant under this Agreement issued in accordance herewith during the six (6)-  month period following the Participant’s “separation from service” to the extent that the Administrator determines  that  the  Participant  is  a  “specified  employee”  (each  within  the  meaning  of  Section  409A)  at  the  time  of  such  separation from service and that paying such amounts at the time or times indicated in this Agreement would be a  prohibited distribution under Code Section 409A(a)(2)(b)(i).  If the payment of any such amounts is delayed as a  result of the previous sentence, then on the first business day following the end of such six (6)-month period (or  such earlier date upon which such amount can be paid under Section 409A without being subject to such additional                                                  5      US-DOCS\104383499.4 

 

 taxes), the Company shall pay to the Participant in a lump-sum all amounts that would have otherwise been payable  to the Participant during such six (6)-month period under this Agreement.                    16.    Miscellaneous.                           (a)    Incorporation of Terms of Plan; Authority of Administrator.  This Agreement is subject to   the  terms  and  conditions  of  the  Plan,  which  are  incorporated  herein  by  reference,  including  without  limitation   Section 13.2 of the Plan.  In the event of any inconsistency between the Plan and this Agreement generally, the  terms of the Plan shall control.  In accordance with the Plan (and not in limitation of any other provision), the  Administrator  shall  make  all  determinations  under  this  Agreement  in  its  sole  and  absolute  discretion  and  all  interested parties shall be bound by such determinations.                                (b)    Not a Contract of Employment.  Nothing in this Agreement or the Plan shall confer upon   the  Participant  any  right  to  continue  to  serve  as  an  Employee  or  other  service  provider  of  the  Company,  the   Partnership or any of their Affiliates or shall interfere with or restrict in any way the rights of the Company, the   Partnership or their Affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of   the Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided   to the contrary in a written agreement between the Company, the Partnership or an Affiliate, on the one hand, and   the Participant on the other.                                (c)    Governing Law.  The laws of the State of Maryland shall govern the interpretation, validity,   administration, enforcement and performance of the terms of this Agreement regardless of the law that might be   applied under principles of conflicts of laws.                                (d)    Conformity  to  Securities  Laws.   The  Participant  acknowledges  that  the  Plan  and  this   Agreement  are  intended  to  conform  to  the  extent  necessary  with all  provisions  of  the  Securities  Act  and  the   Exchange Act, and any and all regulations and rules promulgated by the Securities and Exchange Commission   thereunder, as well as all applicable state securities laws and regulations.  Notwithstanding anything herein to the   contrary, the Plan shall be administered, and the Award of LTIP Units is made, only in such a manner as to conform   to  such  laws,  rules  and  regulations.   To  the  extent  permitted  by  applicable  law,  the  Plan,  this  Award  and  this  Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.                                (e)    Amendment, Suspension and Termination.  To the extent permitted by the Plan and the   Partnership Agreement, this Agreement may be wholly or partially amended or otherwise modified, suspended or   terminated at any time or from time to time by the Administrator or the Board; provided, however, that, except as   may otherwise be provided by the Plan and the Partnership Agreement, no amendment, modification, suspension   or termination of this Agreement shall adversely affect the Award in any material way without the prior written   consent of the Participant.                                (f)    Notices. Notices required or permitted hereunder shall be given in writing and shall be   deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with   postage and fees prepaid, addressed to the Participant to his address shown in the Company records, and to the   Company and the Partnership at their principal executive office(s).                                (g)    Successors and Assigns. The Company and the Partnership may assign any of its rights   under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors   and  assigns  of  the  Company  and  the  Partnership.   Subject  to  the  restrictions  on  transfer  herein  set  forth,  this   Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and   assigns.                                                                  6      US-DOCS\104383499.4 

 

              (h)    Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the   Plan, the Partnership or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the   Plan, the Partnership Agreement the Award and this Agreement shall be subject to any additional limitations set   forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule   16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted   by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable   exemptive rule.                                (i)    Entire Agreement. The Plan, the Partnership Agreement, and this Agreement (including all   exhibits  thereto,  if  any)  constitute  the  entire  agreement  of  the  parties  and  supersede  in  their  entirety  all  prior   undertakings and agreements of the Company and its Affiliates, the Partnership and the Participant with respect to   the subject matter hereof.                                (j)    Clawback.  This Award shall be subject to any clawback or recoupment policy currently   in effect or as may be adopted by the Company or the Partnership, in each case, as may be amended from time to   time.                                (k)    Survival of Representations and Warranties. The representations, warranties and covenants   contained in Section 6 hereof shall survive the later of the date of execution and delivery of this Agreement or the   issuance of the Award.                                (j)    Spousal  Consent.   As  a  condition  to  the  Partnership’s,  the  Company’s  and  their   Subsidiaries’ obligations under this Agreement, the spouse of the Participant, if any, shall execute and deliver to   the Partnership the Consent of Spouse attached hereto as Exhibit B.                                (k)    Fractional Units.  For purposes of this Agreement, any fractional LTIP Units that vest or   become  entitled  to  distributions  pursuant  to  the  Partnership  Agreement  shall  be  rounded  as  determined  by  the   Company or the Partnership; provided, however, that in no event shall such rounding cause the aggregate number  of LTIP Units that vest or become entitled to such distributions to exceed the total number of LTIP Units set forth  in Section 1 of this Agreement.                                           (Signature page follows)                                                                                                     7      US-DOCS\104383499.4 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.                                                      HUDSON PACIFIC PROPERTIES, INC.,                                                 a Maryland corporation                                                                                                                                                By: __________________________________                                                Name:  _______________________________                                                Title: _________________________________                                                                                                                                                HUDSON PACIFIC PROPERTIES, L.P.                                                 a Maryland limited partnership                                                By:  Hudson  Pacific  Properties,  Inc.,  a  Maryland                                                corporation                                                Its: General Partner                                                                                                                                                By: __________________________________                                                Name:  _______________________________                                                Title: _________________________________                                                                                                                                                The  Participant  hereby  accepts  and  agrees  to  be                                                bound  by  all  of  the  terms  and  conditions  of  this                                                Agreement.                                                                                                ____________________________                                                Name:                                                   S-1    US-DOCS\104383499.4 

 

                                              Exhibit A                                                                    FORM OF SECTION 83(b) ELECTION AND INSTRUCTIONS                These instructions are provided to assist you if you choose to make an election under Section 83(b) of the  Internal Revenue Code, as amended, with respect to the LTIP Units of Hudson Pacific Properties, L.P. transferred  to you. Please consult with your personal tax advisor as to whether an election of this nature will be in your  best interests in light of your personal tax situation.                 The executed original of the Section 83(b) election must be filed with the Internal Revenue Service not  later than 30 days after the grant date.  PLEASE NOTE: There is no remedy for failure to file on time. Follow  the steps outlined below to ensure that the election is mailed and filed correctly and in a timely manner. PLEASE  ALSO NOTE: If you make the Section 83(b) election, the election is irrevocable.           Complete all of the Section 83(b) election steps below:                1. Complete the Section 83(b) election form (sample form follows) and make three copies of the signed           election form. (Your spouse, if any, should also sign the Section 83(b) election form.)                    2. Prepare a cover letter to the Internal Revenue Service (sample letter included, following election form).                    3. Send the cover letter with the originally executed Section 83(b) election form and one copy via certified           mail, return receipt requested to the Internal Revenue Service at the address of the Internal Revenue           Service where you file your personal tax returns.                                    It  is  advisable  that  you  have  the  package  date-stamped  at  the  post  office.  Enclose  a  self-                 addressed, stamped envelope so that the Internal Revenue Service may return a date-stamped                  copy to you. However, your postmarked receipt is your proof of having timely filed the Section                  83(b) election if you do not receive confirmation from the Internal Revenue Service.                    4. One copy must be sent to Hudson Pacific Properties, L.P. for its records.                   5. Keep one copy for your files and, if required by applicable law, attach to your federal income tax return           for the applicable calendar year.                    6. Retain the Internal Revenue Service file stamped copy (when returned) for your records.     Please consult your personal tax advisor for the address of the office of the Internal Revenue Service to which you  should mail your election form.                                                      US-DOCS\104383499.4 

 

         ELECTION PURSUANT TO SECTION 83(b) OF THE INTERNAL REVENUE CODE TO INCLUDE       IN GROSS INCOME THE EXCESS OVER THE PURCHASE PRICE, IF ANY, OF THE VALUE OF                    PROPERTY TRANSFERRED IN CONNECTION WITH SERVICES             The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to  include in the undersigned’s gross income for the taxable year in which the property was transferred the excess (if  any) of  the  fair  market  value  of  the  property  described  below, over  the  amount  the  undersigned  paid  for  such  property,  if  any,  and  supplies  herewith  the  following  information  in  accordance  with  the  Treasury  regulations  promulgated under Section 83(b):          1.     The name, address and taxpayer identification (social security) number of the undersigned, and  the taxable year in which this election is being made, are:                      TAXPAYER’S NAME:                                             TAXPAYER’S SOCIAL SECURITY NUMBER:                         ADDRESS:                         TAXABLE YEAR:      The name, address and taxpayer identification (social security) number of the undersigned’s spouse are (complete   if applicable):                       SPOUSE’S NAME:                                             SPOUSE’S SOCIAL SECURITY NUMBER:                         ADDRESS:            2.     The property with respect to which the election is made consists of ________ LTIP Units (the   “Units”) of Hudson Pacific Properties, L.P. (the “Company”), representing an interest in the future profits, losses  and distributions of the Company.         3.     The date on which the above property was transferred to the undersigned was _______________.          4.     The above property is subject to the following restrictions: The Units are subject to forfeiture to the  extent unvested upon a termination of service with the Company under certain circumstances. These restrictions  lapse upon the satisfaction of certain conditions as set forth in an agreement between the taxpayer and the Company.   In addition, the Units are subject to certain transfer restrictions pursuant to such agreement and the Fourth Amended  and Restated Agreement of Limited Partnership of Hudson Pacific Properties, L.P., as amended (or amended and  restated) from time to time, should the taxpayer wish to transfer the Units.         5.     The fair market value of the above property at the time of transfer (determined without regard to  any restrictions other than those which by their terms will never lapse) was $0.         6.     The amount paid for the above property by the undersigned was $0.         7.     The undersigned taxpayer will file this election with the Internal Revenue Service office with which  taxpayer files his or her annual income tax return not later than 30 days after the date of transfer of the property.  A  copy of this election will be furnished to the person for whom the services were performed, and, if required by  applicable law, a copy will be filed with the income tax return of the undersigned to which this election relates.  The  undersigned is the person performing the services in connection with which the property was transferred.                                                                                                     

 

      Date: _________________                      ____________________________________                                                Name:                                                 Date: _________________                      ____________________________________                                                Name of Spouse:                                                                                                                                                              

 

    VIA CERTIFIED MAIL   RETURN RECEIPT REQUESTED    Internal Revenue Service    ______________________________________  [Address where taxpayer files returns]      Re: Election under Section 83(b) of the Internal Revenue Code of 1986        Taxpayer: ________________________________________________    Taxpayer’s Social Security Number: ___________________________    Taxpayer’s Spouse: ________________________________________    Taxpayer’s Spouse’s Social Security Number: ____________________        Ladies and Gentlemen:        Enclosed please find an original and one copy of an Election under Section 83(b) of the Internal Revenue Code    of 1986, as amended, being made by the taxpayer referenced above. Please acknowledge receipt of the enclosed    materials by stamping the enclosed copy of the Election and returning it to me in the self-addressed stamped    envelope provided herewith.        Very truly yours,        ___________________________________    [Name]            Enclosures    cc: Hudson Pacific Properties, L.P.                                                                                                                  

 

                                                       Exhibit B                                                                                 CONSENT OF SPOUSE    I,  ____________,  spouse  of __________,  have  read  and  approve  the  foregoing  Time-Based  LTIP  Unit  Agreement (the “Agreement”) and all exhibits thereto, the Partnership Agreement and the Plan (each as defined  in the Agreement). In consideration of the granting to my spouse of the LTIP Units of Hudson Pacific Properties,  L.P. (the “Partnership”) as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in  respect to the exercise of any rights and taking of all actions under the Agreement and all exhibits thereto and  agree to be bound by the provisions of the Agreement and all exhibits thereto insofar as I may have any rights  in said Agreement or any exhibits thereto or any shares issued pursuant thereto under the community property  laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing  of the foregoing Agreement and exhibits thereto or otherwise. I understand that this Consent of Spouse may not  be altered, amended, modified or revoked other than by a writing signed by me, the Partnership and Hudson  Pacific Properties, Inc.                                                   Grant Date: ____________                                                                                                                                                   By: ________________________________                                                 Print name:__________________________                                                 Dated: ___________________                                                                   If applicable, you must print, complete and return this Consent of Spouse to Hudson Pacific Properties,  L.P.  Please only print and return this page.

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