Document:

EX-4.10

 Exhibit 4.10 

EVOFEM BIOSCIENCES, INC. 
 FORM OF PRE-FUNDED WARRANT TO PURCHASE COMMON STOCK 
 Number of Shares: [                ] 
 (subject to adjustment) 
  

			
	Warrant No.         	  	Original Issue Date: [        ], 2018

 Evofem Biosciences, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [        ] or its registered assigns (the “Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company up to a total of [        ] shares of common stock, $0.0001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an exercise price per share equal to $0.01 per share (as adjusted from time to time as provided in Section 9 herein, the “Exercise
Price”), upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”) at any time and from time to
time on or after the date hereof (the “Original Issue Date”), subject to the following terms and conditions: 
 1.
Definitions. For purposes of this Warrant, the following terms shall have the following meanings: 
 (a) “Affiliate” means any
Person directly or indirectly controlled by, controlling or under common control with, a Holder, but only for so long as such control shall continue. For purposes of this definition, “control” (including, with correlative meanings,
“controlled by”, “controlling” and “under common control with”) means, with respect to a Person, possession, direct or indirect, of (a) the power to direct or cause direction of the management and policies of such
Person (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise), or (b) at least 50% of the voting securities (whether directly or pursuant to any option, warrant or other similar
arrangement) or other comparable equity interests. 
 (b) “Commission” means the United States Securities and Exchange
Commission. 
 (c) “Closing Sale Price” means, for any security as of any date, the last trade price for such security on the
Principal Trading Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal Trading Market begins to operate on an extended hours basis and does not designate the last trade price, then the last trade price of such
security prior to 4:00 P.M., New York City time, as reported by Bloomberg Financial Markets, 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 Financial Markets. 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. If the Company and the Holder are unable to
agree upon the fair market value of such security, then the Board of Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination shall be binding upon all parties absent
demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 

(d) “Principal Trading Market” means the national securities exchange or other trading market on which the Common Stock is primarily
listed on and quoted for trading, which, as of the Original Issue Date, shall be the Nasdaq Capital Market. 
 (e) “Registration
Statement” means the Company’s Registration Statement on Form S-1 (File No. 333-224190), declared effective on May
        , 2018. 

 (f) “Securities Act” means the Securities Act of 1933, as amended. 

(g) “Trading Day” means any weekday on which the Principal Trading Market is normally open for trading. 

(h) “Transfer Agent” means Philadelphia Stock Transfer, Inc., the Company’s transfer agent and registrar for the Common Stock, and
any successor appointed in such capacity. 
 2. Issuance of Securities; Registration of Warrants. The Warrant, as initially issued by the
Company, is offered and sold pursuant to the Registration Statement. As of the Original Issue Date, the Warrant Shares are issuable under the Registration Statement. Accordingly, the Warrant and, assuming issuance pursuant to the Registration
Statement or an exchange meeting the requirements of Section 3(a)(9) of the Exchange Act as in effect on the Original Issue Date, the Warrant Shares, are not “restricted securities” under Rule 144 promulgated under the Securities Act.
The Company shall register ownership of this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder or, as the case
may be, any assignee to which this Warrant is assigned hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary. 
 3. Registration of Transfers. Subject to compliance with all
applicable securities laws, the Company shall, or will cause its Transfer Agent to, register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, and payment for all applicable transfer taxes
(if any). Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so transferred shall
be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company shall, or will cause its Transfer Agent to, prepare, issue and deliver at the Company’s
own expense any New Warrant under this Section 3. Until due presentment for registration of transfer, the Company may treat the registered Holder hereof as the owner and holder for all purposes, and the Company shall not be
affected by any notice to the contrary. 
 4. Exercise and Duration of Warrants. 
 (a) All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by this Warrant at any time and from time to time on or after the Original Issue Date. 

(b) The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached as Schedule 1 hereto (the
“Exercise Notice”), completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless exercise” if
so indicated in the Exercise Notice pursuant to Section 10 below), and the date on which the last of such items is delivered to the Company (as determined in accordance with the notice provisions hereof) is an
“Exercise Date.” The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original
Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares, if any. The aggregate exercise price of this Warrant, except for the Exercise Price, was
pre-funded to the Company on or before the Original Issue Date, and consequently no additional consideration (other than the Exercise Price) shall be required by to be paid by the Holder to effect any exercise
of this Warrant. The Holder shall not be entitled to the return or refund of all, or any portion, of such pre-funded exercise price under any circumstance or for any reason whatsoever. 

5. Delivery of Warrant Shares. 
 (a) Upon
exercise of this Warrant, the Company shall promptly (but in no event later than three (3) Trading Days after the Exercise Date), upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is
entitled pursuant to such exercise to the Holder’s or its designee’s balance account with The 

 
Depository Trust Company (“DTC”) through its Deposit Withdrawal Agent Commission system, or if the Transfer Agent is not participating in the Fast Automated Securities Transfer
Program (the “FAST Program”) or if the certificates are required to bear a legend regarding restriction on transferability, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate,
registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. The Holder, or any natural person or legal entity (each, a
“Person”) so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date, irrespective of the date such Warrant Shares are credited to the
Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. 
 (b) If by the close
of the third (3rd) Trading Day after the Exercise Date, the Company fails to deliver to the Holder a certificate representing the required number of Warrant Shares in the manner required pursuant to Section 5(a) or fails to
credit the Holder’s balance account with DTC for such number of Warrant Shares to which the Holder is entitled, and if after such third (3rd) Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall, within three (3) Trading Days after the Holder’s request and in the Holder’s sole discretion, either (1) pay in cash to the Holder an
amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased, at which point the Company’s obligation to deliver such certificate (and to issue such Warrant Shares)
shall terminate or (2) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount equal to the excess (if any) of Holder’s total purchase
price (including brokerage commissions, if any) for the shares of Common Stock so purchased in the Buy-In over the product of (A) the number of shares of Common Stock purchased in the Buy-In, times (B) the Closing Sale Price of a share of Common Stock on the Exercise Date. 
 (c) To the
extent permitted by law and subject to Section 5(b), the Company’s obligations to issue and deliver Warrant Shares in accordance with and subject to the terms hereof (including the limitations set forth in
Section 11 below) are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against
any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged
violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Subject to Section 5(b),
nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
 6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer
tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the
Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder or an Affiliate thereof. The
Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof. 
 7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or
in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and, in each case, a customary and reasonable indemnity and
surety bond, if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If
a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant. 

 8. Reservation of Warrant Shares. The Company covenants that it will, at all times while this
Warrant is outstanding, reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares that are initially issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account
the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and non-assessable. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock may be listed. The Company further covenants that it will not,
without the prior written consent of the Holder, take any actions to increase the par value of the Common Stock at any time while this Warrant is outstanding. 
 9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this
Section 9. 
 (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding,
(i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock issued and outstanding on the Original Issue Date and in accordance with the terms of such stock on the Original Issue Date or as
amended, as described in the Registration Statement, that is payable in shares of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger number of shares of Common Stock, (iii) combines its outstanding shares of
Common Stock into a smaller number of shares of Common Stock or (iv) issues by reclassification of shares of capital stock any additional shares of Common Stock of the Company, then in each such case the Exercise Price shall be multiplied by a
fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event. Any
adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, provided, however, that if such record
date shall have been fixed and such dividend is not fully paid on the date fixed therefor, the Exercise Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Exercise Price shall be adjusted
pursuant to this paragraph as of the time of actual payment of such dividends. Any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or
combination. 
 (b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to all holders of
Common Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph) or (iii) rights or warrants to subscribe for or purchase any
security, or (iv) cash or any other asset (in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders entitled to receive such
distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of such number
of Warrant Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date without regard to any limitation on exercise contained therein. 
 (c) Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects any merger or consolidation of the Company with or into another Person, in which the
Company is not the surviving entity and in which the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the voting power of the surviving entity immediately after such
merger or consolidation, (ii) the Company effects any sale to another Person of all or substantially all of its assets in one transaction or a series of related transactions, (iii) pursuant to any tender offer or exchange offer (whether by
the Company or another Person), holders of capital stock tender shares representing more than 50% of the voting power of the capital stock of the Company and the Company or such other Person, as applicable, accepts such tender for payment,
(iv) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another
Person whereby such other Person acquires more than the 50% of the voting power of the capital stock of the Company (except for any such transaction in which the stockholders of the Company immediately prior to such transaction maintain, in

 
substantially the same proportions, the voting power of such Person immediately after the transaction) or (v) the Company effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by
Section 9(a) above) (in any such case, a “Fundamental Transaction”), then following such Fundamental Transaction the Holder shall have the right to receive, upon exercise of this Warrant, the same amount
and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant without regard to any limitations on exercise contained herein (the “Alternate Consideration”). The Company shall not effect any Fundamental Transaction in which the Company is not the
surviving entity or the Alternate Consideration includes securities of another Person unless (i) the Alternate Consideration is solely cash and the Company provides for the simultaneous “cashless exercise” of this Warrant pursuant to
Section 10 below or (ii) prior to or simultaneously with the consummation thereof, any successor to the Company, surviving entity or other Person (including any purchaser of assets of the Company) shall assume the
obligation to deliver to the Holder such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant. The provisions of this paragraph (c) shall
similarly apply to subsequent transactions analogous of a Fundamental Transaction type. 
 (d) Number of Warrant Shares. Simultaneously
with any adjustment to the Exercise Price pursuant to Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment. 

(e) Calculations. All calculations under this Section 9 shall be made to the nearest
one-tenth of one cent or the nearest share, as applicable. 
 (f) Notice of Adjustments. Upon the
occurrence of each adjustment pursuant to this Section 9, the Company at its expense will, at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant
and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the
transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s
transfer agent. 
 (g) Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i) declares a dividend or any
other distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary,
(ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company,
then, except if such notice and the contents thereof shall be deemed to constitute material non-public information, the Company shall deliver to the Holder a notice of such transaction at least ten
(10) days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice
or any defect therein shall not affect the validity of the corporate action required to be described in such notice. In addition, if while this Warrant is outstanding, the Company authorizes or approves, enters into any agreement contemplating or
solicits stockholder approval for any Fundamental Transaction contemplated by Section 9(c), other than a Fundamental Transaction under clause (iii) of Section 9(c), the Company shall deliver to the Holder a notice
of such Fundamental Transaction at least thirty (30) days prior to the date such Fundamental Transaction is consummated. Holder agrees to maintain any information disclosed pursuant to this Section 9(g) in confidence until such information
is publicly available, and shall comply with applicable law with respect to trading in the Company’s securities following receipt any such information. 

 10. Payment of Exercise Price. Notwithstanding anything contained herein to the contrary, the
Holder may, in its sole discretion, satisfy its obligation to pay the Exercise Price through a “cashless exercise”, in which event the Company shall issue to the Holder the number of Warrant Shares in an exchange of securities effected
pursuant to Section 3(a)(9) of the Securities Act, as determined as follows: 
 X = Y
[(A-B)/A] 
 where: 
 “X” equals the number of Warrant Shares to be issued to the Holder; 
 “Y”
equals the total number of Warrant Shares with respect to which this Warrant is then being exercised; 
 “A” equals the Closing Sale
Prices of the shares of Common Stock (as reported by Bloomberg Financial Markets) as of the Trading Day on the date immediately preceding the Exercise Date; and 
 “B” equals the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. 
 For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a “cashless exercise” transaction shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued (provided that the Commission continues to take the position that such treatment is
proper at the time of such exercise). In the event that the Registration Statement or another registration statement registering the issuance of Warrant Shares is, for any reason, not effective at the time of exercise of this Warrant, then the
Warrant may only be exercised through a cashless exercise, as set forth in this Section 10. Except as set forth in Section 5(b) (Buy-In remedy) and Section 12 (payment of cash in lieu of
fractional shares), in no event will the exercise of this Warrant be settled in cash. 
 11. Limitations on Exercise. 

(a) Notwithstanding anything to the contrary contained herein, the Company shall not effect any exercise of this Warrant, and the Holder shall not be
entitled to exercise this Warrant for a number of Warrant Shares in excess of that number of Warrant Shares which, upon giving effect or immediately prior to such exercise, would cause (i) the aggregate number of shares of Common Stock
beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, to exceed 4.99% (the
“Maximum Percentage”) of the total number of issued and outstanding shares of Common Stock of the Company following such exercise, or (ii) the combined voting power of the securities of the Company beneficially owned by the
Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act to exceed 4.99% of the combined voting power of all of the
securities of the Company then outstanding following such exercise. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, filed with the Commission prior to the date hereof, (y) a more recent public
announcement by the Company or (z) any other notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written request of the Holder, the Company shall within three (3) Trading
Days confirm in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the
Maximum Percentage to any other percentage specified in such notice; provided that any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. For purposes of this Section 11(a), the
aggregate number of shares of Common Stock or voting securities beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of
Section 13(d) of the Exchange Act shall include the shares of Common Stock issuable upon the exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (x) exercise of the remaining unexercised and non-

 
cancelled portion of this Warrant by the Holder and (y) exercise or conversion of the unexercised, non-converted or
non-cancelled portion of any other securities of the Company that do not have voting power (including without limitation any securities of the Company which would entitle the holder thereof to acquire at any
time Common Stock, including without limitation any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock), is subject to a limitation on conversion or exercise analogous to the limitation contained herein and is beneficially owned by the Holder or any of its Affiliates and other Persons whose beneficial ownership of Common Stock would be
aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act. 
 (b) This Section 11 shall
not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as
contemplated in Section 9(c) of this Warrant. 
 12. No Fractional Shares. No fractional Warrant Shares will be
issued in connection with any exercise of this Warrant. In lieu of any fractional shares that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the Company shall pay the Holder
in cash the fair market value (based on the Closing Sale Price) for any such fractional shares. 
 13. Notices. Any and all notices or
other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile or confirmed e-mail at the facsimile number or e-mail address specified in the books and records of the Transfer Agent prior to 5:30 P.M., New
York City time, on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or confirmed e-mail at the facsimile number or e-mail address specified in the books and records of the Transfer Agent on a day that is not a Trading Day or later than 5:30 P.M., New York City time, on any Trading Day, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service specifying next business day delivery, or (iv) upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery. 

14. Warrant Agent. The Company shall initially serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder,
the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any
corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders 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 Warrant Register. 

15. Miscellaneous. 
 (a) No Rights as
a Stockholder. The Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate
action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 
 (b) Authorized Shares. (i) Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate or
articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or 

 
appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (a) 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, (b) 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 (c) 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. 
 (ii)
Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto,
as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 (c) Successors and Assigns. Subject to
compliance with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of the Holder, except to a successor in the event of a Fundamental Transaction. This
Warrant shall be binding on and inure to the benefit of the Company and the Holder and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the
Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder, or their successors and assigns. 

(d) Amendment and Waiver. Except as otherwise provided herein, the provisions of the Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. 
 (e) Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 

(f) Governing Law; Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO
THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH OF THE COMPANY
AND THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF
DELIVERY) TO SUCH PERSON AT THE ADDRESS IN EFFECT FOR NOTICES TO IT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO
SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 
 (g)
Headings. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof. 
 (h) Severability. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Warrant shall not in any way be affected or impaired thereby, and the Company and the Holder will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Warrant. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

			
	EVOFEM BIOSCIENCES, INC.
		
	By:	 	 
	Name:
	Title:

 SCHEDULE 1 

FORM OF EXERCISE NOTICE 
 [To be executed by the Holder to purchase shares of Common Stock under the Warrant] 
 Ladies and
Gentlemen: 
 (1) The undersigned is the Holder of Warrant No.          (the
“Warrant”) issued by Evofem Biosciences, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

 (2) The undersigned hereby exercises its right to purchase Warrant Shares pursuant to the Warrant. 

(3) The Holder intends that payment of the Exercise Price shall be made as (check one): 

 

	 	☐	Cash Exercise 

  

	 	☐	“Cashless Exercise” under Section 10 of the Warrant 

 (4) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $ in immediately available funds to the Company in accordance with the terms of the Warrant. 

(5) Pursuant to this Exercise Notice, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant.

 (6) By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise
evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under
Section 11(a) of the Warrant to which this notice relates. 
  

					
	 Dated:
	 	 	 	
			
	 Name of Holder:  
	 	 	 	
			
	 By:
	 	 	 	
	 Name:
	 	 	 	
	 Title:
	 	 	 	

 (Signature must conform in all respects to name of Holder as specified on the face of the Warrant)Converted by Wiklow Corporate Services Inc.

BLOX, INC.

2014 STOCK OPTION PLAN

This  2014  Stock  Option  Plan  (this  “Plan”)  provides  for  the  grant  of  options  to  acquire  shares  of

common   stock   (each,   a   “Share”),   par   value   of   US$0.00001   per   Share,   of   Blox,   Inc.,   a   Nevada   corporation

(the “Company”).   For  the  purposes  of  Eligible  Employees  (as  defined  below)  who  are  subject  to  income  tax  in  the

United States, stock options granted under this Plan that qualify under Section 422 of the United States Internal Revenue

Code  of  1986,  as  amended  (the  “Code”),  are  referred  to  in  this  Plan  as  “Incentive  Stock  Options”.   Incentive  Stock

Options,  stock  options  that  do  not  qualify  under  Section 422  of  the  Code  (“Non-Qualified  Stock Options”)  and  stock

options granted to non-United States residents under this Plan are referred to collectively as “Options”.

1.

PURPOSE

1.1

The purpose of this Plan is to:

(a)

retain  the  services  of  valued  key  employees,  directors,  officers  and  consultants  of  the

Company,  and  such  other  persons  as  the  Plan  Administrator  shall  select  in  accordance

with Section 3 below;

(b)

to  provide  equity  incentives  to  such  persons  and  to  encourage  such  persons  to  acquire  a

greater  proprietary  interest  in  the  Company,  thereby  strengthening  their  incentive  to

achieve the objectives of the shareholders of the Company;

(c)

to serve as an inducement in the retention of Company personnel.

1.2

This  Plan  shall  at  all  times  be  subject  to  all  legal  requirements  relating  to  the  administration  of

stock  option  plans,  if  any,  under  applicable  United  States  federal  and  state  securities  laws,  Canadian  provincial

securities  laws,  the  Code,  the  Income  Tax  Act  (Canada),  the  rules  of  any  applicable  stock  exchange  or  stock

quotation  system,  and  the  rules  of  any  foreign  jurisdiction  applicable  to  Options  granted  to  residents  therein

(collectively, the “Applicable Laws”).

2.

ADMINISTRATION

2.1

This  Plan  shall  be  administered  initially  by  the  board  of  directors  of  the  Company  (the  “Board”),

except  that  the  Board  may,  in  its  discretion,  establish  a  committee  composed  of  two  (2)  or  more  members  of  the

Board  to  administer  this  Plan,  which  committee  (the  “Committee”)  may  be  an  executive,  compensation  or  other

committee,  including  a  separate  committee  especially  created  for  this  purpose.  The  Board  or,  if  applicable,  the

Committee is referred to herein as the “Plan Administrator”.

2.2

If and so long as the Common Stock is registered under Section 12(b) or 12(g) of the United States

Securities  Exchange  Act  of  1934,  as  amended  (the  “Exchange  Act”),  the  Board  shall  consider  in  selecting  the  Plan

Administrator  and  the  membership  of  any  Committee,  with  respect  to  any  persons  subject  or  likely  to  become

subject  to  Section  16  of  the  Exchange  Act,  the  provisions  regarding  (a)  “outside  directors”  as  contemplated  by

Section 162(m) of the  Code, and (b) “Non-Employee Directors” as contemplated by Rule  16b-3 under the  Exchange

Act.

2.3

The  Committee  shall  have  the  powers  and  authority  vested  in  the  Board  hereunder  (including  the

power  and  authority  to  interpret  any  provision  of  this  Plan  or  the  terms  of  any  Option).   The  members  of  any  such

Committee  shall  serve  at  the  pleasure  of  the  Board.   A  majority  of  the  members  of  the  Committee  shall  constitute  a

quorum,  and  all  actions  of  the  Committee  shall  be  taken  by  a  majority of  the  members  present.   Any  action  may  be

taken  by  a  written  instrument  signed  by  all  of  the  members  of  the  Committee  and  any  action  so  taken  shall  be  fully

effective as if it had been taken at a meeting of the members of the Committee.

- 2 -

2.4

The  Board  may  at  any  time  amend,  suspend  or  terminate  this  Plan,  subject  to  such  shareholder

approval  as  may  be  required  by  Applicable  Laws,  including  the  rules  of  an  applicable  stock  exchange  or  other

national market system, provided that:

(a)

no  Options  may  be  granted  during  any  suspension  of  this  Plan  or  after  termination  of  this  Plan;

and

(b)

any  amendment,  suspension  or  termination  of  this  Plan  will  not  affect  Options  already  granted,

and  such  Options  will  remain  in  full  force  and  effect  as  if  this  Plan  had  not  been  amended,

suspended  or  terminated,  unless  mutually  agreed  otherwise  between  the  Optionee  (as  defined

below)  and  the  Plan  Administrator,  which  agreement  will  have  to  be  in  writing  and  signed  by  the

Optionee and the Company.

2.5

Subject   to   the   provisions   of   this   Plan,   and   with   a   view   to   effecting   its   purpose,   the   Plan

Administrator shall have sole authority, in its absolute discretion, to:

(a)

construe and interpret this Plan;

(b)

define the terms used in this Plan;

(c)

prescribe, amend and rescind the rules and regulations relating to this Plan;

(d)

correct any defect, supply any  omission or reconcile any inconsistency in this Plan;

(e)

grant Options under this Plan;

(f)

determine  the  individuals  to  whom  Options  shall  be  granted  under  this  Plan  and  whether  the

Option is an Incentive Stock Option or a Non-Qualified Stock Option, or otherwise;

(g)

determine the time or times at which Options shall be granted under this Plan;

(h)

determine  the  number  of  Shares  subject  to  each  Option,  the  exercise  price  of  each  Option,  the

duration of each Option and the times at which each Option shall become exercisable;

(i)

determine all other terms and conditions of the Options; and

(j)

make all other determinations and interpretations necessary and advisable for the administration of

this Plan.

2.6

All  decisions,  determinations  and  interpretations  made  by  the  Plan  Administrator  shall  be  binding

and  conclusive  on  all  participants  in  this  Plan  and  on  their  legal  representatives,  heirs  and  beneficiaries,  subject  to

any contrary determination by the Board.

3.

ELIGIBILITY

3.1

Incentive  Stock  Options  may  be  granted  to  any  individual  who,  at  the  time  the  Option  is  granted,

is  an  employee  of  the  Company  or  any  Related  Company  (as  defined  below)  and  is  subject  to  income  tax  in  the

United   States   (each,   an   “Eligible   Employee”),   provided   that   any   grant   of   Incentive   Stock   Options   will   be

conditional upon compliance with all applicable federal and state securities laws.

3.2

Non-Qualified  Stock  Options  may  be  granted  to  Eligible  Employees  and  to  such  other  persons

who  are  not  Eligible  Employees  as  the  Plan  Administrator  shall  select,  subject  to  any  Applicable  Laws,  provided

that  any  grant  of  Options  to  an  Optionee  (as  defined  herein)  who  is  a  U.S.  Person  will  be  conditional  upon

compliance with all applicable federal and state securities laws.

- 3 -

3.3

Optionees  who  are  U.S.  Persons  may  be  required  to  provide  additional  documentation  to  the

Company prior to any grant of Options becoming effective.

3.4

Options  may  be  granted  in  substitution  for  outstanding  options  of  another  company  in  connection

with the  merger, consolidation, acquisition of property or stock or other reorganization between such other company

and  the  Company  or  any  subsidiary  of  the  Company.   Options  also  may  be  granted  in  exchange  for  outstanding

Options.

3.5

Any  person  to  whom  an  Option  is  granted  under  this  Plan  is  referred  to  as  an  “Optionee”.   Any

person who is the owner of an Option is referred to as a  “Holder”.

3.6

As  used  in  this  Plan,  the  term  “Related  Company”  shall  mean  any  company  (other  than  the

Company)  that  is  a  “Parent  Company”  of  the  Company  or  “Subsidiary  Company”  of  the  Company,  as  those  terms

are defined in Sections 424(e) and 424(f), respectively, of the Code (or any successor provisions) and the regulations

thereunder (as amended from time to time).

4.

STOCK

4.1

The Plan Administrator is authorized to grant Options to acquire up to a total of  10,000,000 Shares

of the Company’s authorized but unissued or reacquired  common stock. The number of Shares with respect to which

Options may be granted hereunder is subject to adjustment as set forth in Section  5.1(n) hereof.  In the event that any

outstanding  Option  expires  or  is  terminated  for  any  reason,  the  Shares  allocable  to  the  unexercised  portion  of  such

Option  may  again  be  subject  to  an  Option  granted  to  the  same  Optionee  or  to  a  different  person  eligible  under

Section 3  of  this  Plan;  provided  however,  that  any  cancelled  Options  will  be  counted  against  the  maximum  number

of  Shares  with  respect  to  which  Options  may  be  granted  to  any  particular  person  as  set  forth  in  Section  5.1(a)(ii)

hereof.

5.

TERMS AND CONDITIONS OF OPTIONS

5.1

Each  Option  granted  under  this  Plan  shall  be  evidenced  by  a  written  agreement  approved  by  the

Plan  Administrator  (each,  an  “Agreement”).   Agreements  may  contain  such  provisions,  not  inconsistent  with  this

Plan,  as  the  Plan  Administrator  in  its  discretion  may  deem  advisable.    All  Options  also  shall  comply  with  the

following requirements:

(a)

Type of Option

For Optionees that are subject to income tax in the United States, each Agreement shall state whether

the  Option  is  intended  to  be  an  Incentive  Stock  Option  or  a  Non-Qualified  Stock  Option,  provided

that:

(i)

in  the  absence  of  action  to  the  contrary  by  the  Plan  Administrator  in  connection  with  the

grant of an Option, all Options shall be Non-Qualified Stock Options;

(ii)

the aggregate  fair  market  value (determined at the Date of Grant, as defined below) of the

Shares  with respect to  which Incentive  Stock Options are  exercisable  for  the  first time  by

an  Optionee  subject  to  income  tax  in  the  United  States  during  any calendar  year  (granted

under  this Plan and  all  other  stock option plans of the  Company,  a  Related  Company or  a

predecessor  company)  shall  not  exceed  US$100,000,  or  such  other  limit  as  may  be

prescribed  by  the  Code  as  it  may  be  amended  from  time  to  time  (the  “Annual  Limit”);

and

(iii)

any  portion  of  an  Option  which  exceeds  the  Annual  Limit  shall  not  be  void  but  rather

shall be a Non-Qualified Stock Option.

- 4 -

(b)

Number of Shares

Each  Agreement  shall  state  the  number  of  Shares  to  which  it  pertains.  The  number  of  Options  to  be

granted to any Optionee will be determined by the Plan Administrator at the time of grant.

(c)

Date of Grant

Each Agreement shall state the date the Plan Administrator has deemed to be the effective date of the

grant of the Option for purposes of this Plan (the “Date of Grant”).

(d)

Option Price

Each  Agreement  shall  state  the  price  per  Share  at  which  an  Option  is  exercisable.    The  Plan

Administrator shall act in good faith to establish the exercise price of each Option in accordance with

Applicable Laws at the time the Option is granted, provided that:

(i)

the  per  Share  exercise  price  for  an  Incentive  Stock  Option  or  any  Option  granted  to  a

“covered  employee”  as  such  term  is  defined  for  purposes  of  Section  162(m)  of  the  Code

(a  “Covered  Employee”)  shall  not  be  less  than  the  fair  market  value  per  Share  at  the

Date of Grant as determined by the Plan Administrator in good faith;

(ii)

with  respect   to   Incentive   Stock   Options   granted   to   greater-than-ten  percent   (>10%)

shareholders  of  the  Company  (as  determined  with  reference  to  Section 424(d)  of  the

Code), the exercise price per  Share  shall not be less than one hundred ten percent (110%)

of  the  fair  market  value  per  Share  at  the  Date  of  Grant  as  determined  by  the  Plan

Administrator in good faith; and

(iii)

Options granted in substitution for outstanding options of another company in connection

with  the  merger,  consolidation,  acquisition  of  property  or  stock,  or  other  reorganization

involving  such  other  company  and  the  Company  or  any  subsidiary  of  the  Company  may

be  granted  with  an  exercise  price  equal  to  the  exercise  price  for  the  substituted  option  of

the  other  company,  subject  to  any adjustment  consistent  with  the  terms  of  the  transaction

pursuant to which the substitution is to occur.

(e)

Duration of Options

At the time of the grant of an Option, the Plan Administrator shall designate, subject to Section 5.1(h)

below,  the  expiration  date  of  the  Option,  which  date  shall  not  be  later  than  ten  (10)  years  from  the

Date  of  Grant,  provided  that  the  expiration  date  of  any  Incentive  Stock  Option  granted  to  a  greater-

than-ten percent (>10%) shareholder of the Company (as determined with reference to Section 424(d)

of the Code) shall not be later than five (5) years from the Date of Grant.

(f)

Vesting Schedule

(i)

No  Option  shall  be  exercisable  until  it  has  vested.   The  vesting  schedule  for  each  Option

shall be specified by the Plan Administrator at the time of grant of the Option.

(ii)

The  Plan  Administrator  may  specify  a  vesting  schedule  for  all  or  any  portion  of  an

Option based on the achievement of performance  objectives established in advance of the

commencement   by   the   Optionee   of   services   related   to   the   achievement   of   the

performance  objectives.    Performance  objectives  may  be  expressed  in  terms  of  one  or

more of the following:  return on equity, return on assets,  Share price, market share, sales,

earnings  per  Share,  costs,  net  earnings,  net  worth,  inventories,  cash  and  cash  equivalents,

gross  margin or  the  Company’s performance  relative  to  its internal  business plan,  or  such

other  terms  as  determined  and  directed  by  the  Board.   Performance  objectives  may  be  in

- 5 -

respect  of  the  performance  of  the  Company  as  a  whole  (whether  on  a  consolidated  or

unconsolidated  basis),  a  Related  Company,  or  a  subdivision,  operating  unit,  product  or

product  line  of  either  of  the  foregoing.    Performance  objectives  may  be  absolute  or

relative  and  may  be  expressed  in  terms  of  a  progression  or  a  range.   An  Option  that  is

exercisable   (in   full   or   in   part)   upon   the   achievement   of   one   or   more   performance

objectives   may  be  exercised   only  following  written  notice  to  the   Optionee  and  the

Company by the Plan Administrator that the performance objective has been achieved.

(g)

Acceleration of Vesting

The  vesting  of  any  Option  may  be  accelerated  by  the  Plan  Administrator  at  such  times  and  in  such

amounts  as  it  shall  determine  in  its  sole  discretion.   The  vesting  of  Options  also  shall  be  accelerated

under the circumstances described in Section 5.1(n) below.

(h)

Term of Option

(i)

Options that have  vested as specified by the Plan Administrator or in accordance with this

Plan,  shall  terminate  and  cease  to  be  exercisable,  to  the  extent  not  previously  exercised,

immediately  upon  the  occurrence  of  the  first  of  the  following  events,  unless  otherwise

provided for in the Agreement:

A.

the   expiration   of   the   Option,   as   designated   by   the   Plan   Administrator   in

accordance with Section 5.1(e) above;

B.

the   date   of   an   Optionee’s   resignation   or   termination   of   employment   or

contractual  relationship  with  the  Company  or  any  Related  Company  for  cause

(as determined in the sole discretion of the Plan Administrator);

C.

the  expiration  of  three  (3)  months  from the  date  of  an  Optionee’s  termination  of

employment   or   contractual   relationship   with   the   Company   or   any   Related

Company  for  any  reason  whatsoever  other  than  resignation,  cause,  death  or

Disability (as defined below); or

D.

the  expiration  of  one  year  (1)  from termination  of  an  Optionee’s  employment  or

contractual relationship by reason of death or Disability (as defined below).

(ii)

Upon  the  death  of  an  Optionee,  any  vested  Options  held  by  the  Optionee  shall  be

exercisable  only  by  the  person  or  persons  to  whom  such  Optionee’s  rights  under  such

Option  shall  pass  by the  Optionee’s  will  or  by the  laws  of  descent  and  distribution  of  the

Optionee’s  domicile   at  the  time  of  death  and  only  until  such  Options  terminate  as

provided above.

(iii)

For  purposes  of  this  Plan,  unless  otherwise  defined  in  an  Agreement,  “Disability”  shall

mean  medically  determinable  physical  or  mental  impairment  which  has  lasted  or  can  be

expected  to  last  for  a  continuous  period  of  not  less  than  six  (6)  months  or  that  can  be

expected  to  result in death.   The  Plan  Administrator  shall  determine  whether  an Optionee

has   incurred   a   Disability   on   the   basis   of   medical   evidence   acceptable   to   the   Plan

Administrator.   Upon  making  a  determination  of  Disability,  the  Plan  Administrator  shall,

for purposes of this Plan, determine  the date of an Optionee’s termination of employment

or contractual relationship.

(iv)

Unless   accelerated   in   accordance   with   Section 5.1(g)   above,   unvested   Options   shall

terminate  immediately  upon  the  Optionee  resigning  from,  or  the  Company  terminating,

the  Optionee’s  employment  or  contractual  relationship  with  the  Company  or  any  Related

Company for any reason whatsoever, including death or Disability.

- 6 -

(v)

For purposes of this Plan, transfer of employment between or among the Company and/or

any  Related  Company  shall  not  be  deemed  to  constitute  a  termination  of  employment

with the Company or any Related Company.  For purposes of this  Plan, employment shall

be  deemed  to  continue  while  the  Optionee  is  on  military  leave,  sick  leave  or  other  bona

fide   leave   of   absence   (as   determined   by   the   Plan   Administrator).   The   foregoing

notwithstanding,  employment  shall  not  be  deemed  to  continue  beyond  the  first  ninety

(90)  days  of  such  leave,  unless  the  Optionee’s  re-employment  rights  are  guaranteed  by

statute or by contract.

(i)

Exercise of Options

(i)

Options shall  be  exercisable,  in full or  in part,  at  any time  after  vesting,  until termination.

If  less  than  all  of  the  Shares  included  in  the  vested  portion  of  any  Option  are  purchased,

the  remainder  may  be  purchased  at  any  subsequent  time  prior  to  the  expiration  of  the

Option  term.   No  portion  of  any  Option  for  less  than  1,000  Shares  (as  adjusted  pursuant

to  Section 5.1(n)  below)  may  be  exercised,  provided  that  if  the  vested  portion  of  any

Option is less  than  1,000  Shares,  it  may be  exercised  with respect to  all  Shares  for  which

it  is  vested.   Only  whole  Shares  may  be  issued  pursuant  to  an  Option,  and  to  the  extent

that an Option covers less than one Share, it is unexercisable.

(ii)

Options  or  portions  thereof  may  be  exercised  by  a  Holder  giving  written  notice  to  the

Company,  which  notice  shall  specify  the  number  of  Shares  to  be  purchased,  and  be

accompanied  by  payment  in  the  amount  of  the  aggregate  exercise  price  for  the  Shares  so

purchased,  which  payment  shall  be  in  the  form  specified  in  Section  5.1(j)  below.  The

Company  shall  not  be  obligated  to  issue,  transfer  or  deliver  a  certificate  representing  any

Shares  to  the  Holder  of  any  Option  until  provision  has  been  made  by  the  Holder,  to  the

satisfaction  of  the  Company,  for  the  payment  of  the  aggregate  exercise  price  for  all

Shares  for  which  the  Option  shall  have  been  exercised  and  for  satisfaction  of  any  tax

withholding obligations associated with such exercise.

(iii)

During  the  lifetime  of  an  Optionee,  Options  are  exercisable  only  by  the  Optionee  or,  in

the case of a Non-Qualified  Stock Option, transferee  who takes title to such Option in the

manner permitted by Section 5.1(l) hereof.

(j)

Payment upon Exercise of Option

Upon  the  exercise  of  any  Option,  the  aggregate  exercise  price  shall  be  paid  to  the  Company  in  cash,

by wire  transfer  or,  if the  funds are drawn from a  Canadian bank,  by certified  cheque.   In addition,  if

pre-approved  in writing by the  Plan Administrator,  who  may arbitrarily withhold  consent,  the  Holder

may  pay for  all  or  any portion of  the  aggregate  exercise  price  by complying  with  one  or  more  of  the

following alternatives:

(i)

by delivering to the Company  Shares previously held by such Holder, or by the  Company

withholding  Shares  otherwise  deliverable  pursuant  to  exercise  of  the  Option,   which

Shares  received  or  withheld  shall  have  a  fair  market  value  at  the  date  of  exercise  (as

determined  by the  Plan  Administrator)  equal  to  the  aggregate  exercise price  to be  paid  by

the Optionee upon such exercise; or

(ii)

by complying  with  any  other  payment  mechanism  approved  by the  Plan  Administrator  at

the time of exercise.

(k)

No Rights as a Shareholder

A Holder shall have  no rights as a  shareholder  with respect to  any  Shares covered by an Option until

such  Holder  becomes  a  record  holder  of  such  Shares,  irrespective  of  whether  such  Holder  has  given

- 7 -

notice  of  exercise.    Subject  to  the  provisions  of  Section 5.1(n)  hereof,  no  rights  shall  accrue  to  a

Holder and no adjustments shall be made on account of dividends (ordinary or extraordinary, whether

in  cash,  securities  or  other  property)  or  distributions  or  other  rights  declared  on,  or  created  in,  the

Shares for which the record date is prior to the date the Holder becomes a record holder of the  Shares

covered by the Option, irrespective of whether such Holder has given notice of exercise.

(l)

Transfer of Option

(i)

Options  granted  under  this  Plan  and  the  rights  and  privileges  conferred  by  this  Plan  may

not   be   transferred,   assigned,   pledged   or   hypothecated   in   any   manner   (whether   by

operation  of  law  or  otherwise)  other  than  by  will  or  by  applicable  laws  of  descent  and

distribution or pursuant to a qualified domestic relations order, and shall  not be  subject to

execution, attachment or similar process; provided that, subject to Applicable Laws:

A.

for  Non-Qualified  Stock  Options  or  Options  granted  to  non-US  residents,  any

Agreement  may  provide,  or  be  amended  to  provide,  that  an  Option  to  which  it

relates  is  transferable  without  payment  of  consideration  to  immediate  family

members   of   the   Optionee   or   to   trusts   or   partnerships   or   limited   liability

companies   established   exclusively   for   the   benefit   of   the   Optionee   and   the

Optionee’s immediate family members; or

B.

for  Incentive  Stock Options,  the  Optionee’s heirs or  administrators  may exercise

any  portion  of  an  Optionee’s  vested  and  outstanding  Options  within  one  year  of

the Optionee’s death.

(ii)

Upon  any  attempt  to  transfer,  assign,  pledge,  hypothecate  or  otherwise  dispose  of  any

Option  or  of  any  right  or  privilege  conferred  by  this  Plan  contrary  to  the  provisions

hereof,  or  upon  the  sale,  levy  or  any  attachment  or  similar  process  upon  the  rights  and

privileges conferred  by this Plan,  such Option shall  thereupon terminate  and  become  null

and void.

(m)

Securities Regulation and Tax Withholding

(i)

No  Option  shall  be  granted  and  no  Shares  shall  be  issued  with  respect  to  the  exercise  of

any  Options  unless  the  grant  of  such  Options,  the  exercise  of  such  Options  and  the

issuance  and  delivery  of  such  Shares  shall  comply  with  all  Applicable  Laws,  and  such

issuance  shall  be  further  subject  to  the  approval  of  counsel  for  the  Company  with  respect

to  such  compliance,  including  the  availability  of  an  exemption  from  prospectus  and

registration  requirements  of  all  Applicable  Laws  for  the  issuance  of  such  Options  or

Shares.  The  inability  of  the  Company  to  obtain  from  any  regulatory  body  the  authority

deemed by the Company to be necessary for the lawful grant  and issuance of any Options

or  Shares  under  this  Plan,  or  the  unavailability  of  an  exemption  from  prospectus  or

registration  requirements  for  the  grant  and  issuance  of  any  Options  or  Shares  under  this

Plan,  as  determined  by  the  Plan  Administrator  in  its  sole  discretion,  shall  relieve  the

Company  of  any  liability  with  respect  to  the  non-issuance  or  sale  of  such  Options  or

Shares.

(ii)

As  a  condition  to  the  exercise  of  any  Option,  the  Plan  Administrator  may  require  the

Holder  to  make  certain  representations  and  warranties  in  writing  at  the  time  of  such

exercise.  At  the  option  of  the  Plan  Administrator,  a  stop-transfer  order  against  such

Shares  may  be  placed  on  the  stock  books  and  records  of  the  Company,  and  a  legend

indicating  that  the  Shares  may  not  be  pledged,  sold  or  otherwise  transferred  unless  an

opinion  of  counsel  is  provided  stating  that  such   transfer  is  not  in  violation   of  any

Applicable  Laws  may be  stamped  on  the  certificates  representing  such  Shares  in  order  to

assure  an  exemption  from  registration.   The  Plan  Administrator  also  may  require  such

other  documentation  as  may  from  time  to  time  be  necessary  to  comply  with  federal,

- 8 -

provincial  or  state  securities  laws.    THE  COMPANY  HAS  NO  OBLIGATION  TO

UNDERTAKE  REGISTRATION  OF  OPTIONS  OR  THE  SHARES  ISSUABLE

UPON THE EXERCISE OF OPTIONS.

(iii)

The  Holder  shall  pay  to  the  Company  by  cash,  by  wire  transfer  or,  if  the  funds  are  drawn

from  a  Canadian  bank,  by  certified  cheque,  promptly  upon  exercise  of  an  Option  or,  if

later,  the  date  that  the  amount  of  such  obligations  becomes  determinable,  all  applicable

federal,  state,  provincial,  local  and  foreign  withholding  taxes that the  Plan  Administrator,

in  its  discretion,  determines  to  result  upon  exercise  of  an  Option  or  from  a  transfer  or

other disposition of Shares acquired upon exercise of an Option or otherwise related to an

Option  or  Shares  acquired  in  connection  with  an  Option.    Upon  approval  of  the  Plan

Administrator,  a  Holder  may  satisfy  such  obligation  by  complying  with  one  or  more  of

the following alternatives selected by the Plan Administrator:

A.

by  delivering  to  the  Company  Shares  previously  held  by  such  Holder  or  by  the

Company  withholding  Shares  otherwise  deliverable  pursuant  to  the  exercise  of

the  Option,  which  Shares  received  or  withheld  shall  have  a  fair  market  value  at

the  date  of  exercise  (as  determined  by  the  Plan  Administrator)  equal  to  any

withholding  tax  obligations  arising  as  a  result  of  such  exercise,  transfer  or  other

disposition; or

B.

by   complying   with   any   other   payment   mechanism   approved   by   the   Plan

Administrator from time to time.

(iv)

The  grant  of  Options  and  entering  into  any  Agreement  with  respect  to  Options  or  the

issuance,  transfer  or  delivery  of  certificates  representing  Shares  pursuant  to  the  exercise

of  Options  may  be  delayed,  at  the  discretion  of  the  Plan  Administrator,  until  the  Plan

Administrator  is  satisfied  that  the  applicable  requirements  of  the  federal,  provincial  and

state  securities  laws  and  the  withholding  provisions  under  Applicable  Laws  have  been

met  and  that  the  Holder  has  paid  or  otherwise  satisfied  any  withholding  tax  obligation  as

described in Section 5.1(m)(iii) above.

(n)

Stock Dividend or Reorganization

(i)

If:   (1)   the   Company   shall   at   any   time   be   involved   in   a   transaction   described   in

Section 424(a)  of  the  Code  (or  any  successor  provision)  or  any  “corporate  transaction”

described in the regulations thereunder; (2)  the Company shall declare a dividend payable

in,  or  shall  subdivide,  reclassify,  reorganize,  or  combine,  its  Common  Stock;  or  (3)  any

other  event  with  substantially  the  same  effect  shall  occur,  the  Plan  Administrator  shall,

subject  to  Applicable  Laws,  with  respect  to  each  outstanding  Option,  proportionately

adjust the  number  of  Shares  subject to  such Option and/or  the  exercise  price  per  Share  so

as to  preserve  the  rights of the  Holder  after  the  event as  substantially proportionate  to  the

rights of the Holder prior to such event, and to the extent that such action shall include an

increase  or  decrease  in  the  number  of  Shares  subject  to  outstanding  Options,  the  number

of  Shares  available  under  Section 4  of  this  Plan  and  the  exercise  price  for  such  Options

shall   automatically  be   increased   or   decreased,   as   the   case   may  be,   proportionately,

without   further   action   on   the   part   of   the   Plan   Administrator,   the   Company,   the

Company’s  shareholders,  or  any  Holder,  so  as  to  preserve  the  proportional  rights  of  the

Holder.

(ii)

In  the  event  that  the  presently  authorized  capital  stock  of  the  Company  is  changed  into

the  same  number  of  Shares  with  a  different  par  value,  or  without  par  value,  the  stock

resulting from any such change shall be deemed to be Common Stock within the  meaning

of this Plan, and each Option shall apply to the same  number of  Shares of such new stock

as it applied to old Shares immediately prior to such change.

- 9 -

(iii)

If  the  Company  shall  at  any  time  declare  an  extraordinary  dividend  with  respect  to  the

Common  Stock,  whether  payable  in  cash  or  other  property,  the  Plan  Administrator  may,

subject  to  applicable  law,  in  the  exercise  of  its  sole  discretion  and  with  respect  to  each

outstanding  Option,  proportionately  adjust  the  number  of  Shares  subject  to  such  Option

and/or  adjust  the  exercise  price  per  Share  so  as  to  preserve  the  rights  of  the  Holder  after

the event as substantially proportionate to the rights of the Holder prior to such event, and

to  the  extent  that  such  action  shall  include  an  increase  or  decrease  in  the  number  of

Shares  subject  to  outstanding  Options,  the  number  of  Shares  available  under  Section 4  of

this   Plan   shall   automatically   be   increased   or   decreased,   as   the   case   may   be,

proportionately,   without   further   action   on   the   part   of   the   Plan   Administrator,   the

Company, the Company’s shareholders, or any Holder.

(iv)

The  foregoing  adjustments  to  the  Option  terms  or  the  number  of   Shares  subject  to

Options  shall  be  made  by  the  Plan  Administrator,  or  by  any  successor  administrator  of

this Plan, or by the applicable terms of any assumption  or substitution document.

(v)

The  grant  of  an  Option  shall  not  affect  in  any  way  the  right  or  power  of  the  Company  to

make  adjustments,  reclassifications,  reorganizations  or  changes  of  its  capital  or  business

structure,  to  merge,  consolidate  or  dissolve,  to  liquidate,  or  to  sell  or  transfer  all  or  any

part of its business or assets.

6.

EFFECTIVE DATE; SHAREHOLDER APPROVAL

6.1

Incentive  Stock  Options  may  be  granted  by  the  Plan  Administrator  from  time  to  time  on  or  after

the  date  on  which  this  Plan  is  adopted  (the  “Effective  Date”)  through  the  day  immediately  preceding  the  tenth

anniversary of the Effective Date.

6.2

All  other  Options  may  be  granted  by  the  Plan  Administrator  on  or  after  the  Effective  Date  and

until this Plan is terminated by the Board in its sole discretion.

6.3

Termination of this Plan shall not terminate any Option granted prior to such termination.

6.4

If required by Applicable Laws, the approval of shareholders of the Company shall be obtained for

any reduction in the exercise price of any Option.

6.5

Any  Incentive  Stock  Options  granted  by  the  Plan  Administrator  prior  to  the  approval  of  this  Plan

by  the  shareholders  of  the  Company  shall  be  granted  subject  to  ratification  of  this  Plan  by  the  shareholders  of  the

Company  within  twelve  (12)  months  after  the  Effective  Date.   If  such  shareholder  ratification  is  sought  and  not

obtained,  all  Incentive  Stock  Options  granted  prior  thereto  and  thereafter  shall  be  considered  Non-Qualified  Stock

Options   and   any  Options   granted   to   Covered   Employees   will   not   be   eligible   for   the   exclusion   set   forth   in

Section 162(m) of the Code with respect to the deductibility by the Company of certain compensation.

7.

NO OBLIGATIONS TO EXERCISE OPTION

7.1

The grant of an Option shall impose no obligation upon  an Optionee to exercise such Option.

8.

NO RIGHT TO OPTIONS  OR TO EMPLOYMENT

8.1

Whether  or  not  any  Options  are  to  be  granted  under  this  Plan  shall  be  exclusively  within  the

discretion  of  the  Plan  Administrator,  and  nothing  contained  in  this  Plan  shall  be  construed  as  giving  any person  any

right to participate under this Plan.

8.2

The grant of an Option shall  in no  way constitute any form of agreement or understanding binding

on  the  Company  or  any  Related  Company,  express  or  implied,  that  the  Company  or  any  Related  Company  will

employ or contract with  an Optionee for any length of time,  nor shall it interfere in any way with the  Company’s or,

- 10 -

where  applicable,  a  Related  Company’s  right  to  terminate  an  Optionee’s  employment  at  any  time,  which  right  is

hereby reserved.

9.

INDEMNIFICATION OF PLAN ADMINISTRATOR

9.1

In  addition  to  all  other  rights  of  indemnification  they  may  have  as   members  of  the  Board,

members  of  the  Plan  Administrator  shall  be  indemnified  by  the  Company  for  all  reasonable  expenses  and  liabilities

of  any  type  or  nature,  including  attorneys’  fees,  incurred  in  connection  with  any  action,  suit  or  proceeding  to  which

they or  any of  them are  a  party by reason  of,  or  in  connection  with,  this  Plan  or  any Option  granted  under  this  Plan,

and   against   all   amounts   paid   by   them   in   settlement   thereof   (provided   that   such   settlement   is   approved   by

independent  legal  counsel  selected  by  the  Company),  except  to  the  extent  that  such  expenses  relate  to  matters  for

which  it  is  adjudged  that  such  Plan  Administrator  member  is  liable  for  willful  misconduct;  provided,  that  within

fifteen (15) days after the institution of any such action, suit or proceeding, the Plan Administrator  member involved

therein  shall,  in  writing,  notify  the  Company  of  such  action,  suit  or  proceeding,  so  that  the  Company  may  have  the

opportunity to make appropriate arrangements to prosecute or defend the same.

10.

AMENDMENT OF PLAN

10.1

The Plan Administrator  may,  subject to Applicable Laws, at  any time,  modify, amend or terminate

this  Plan  or  modify  or  amend  Options  granted  under  this  Plan,  including,  without  limitation,  such  modifications  or

amendments as are necessary to maintain compliance with  Applicable Laws, provided that:

(a)

no  amendment  with  respect  to  any  outstanding  Option  which  has  the  effect  of  reducing  the

benefits afforded to the Holder thereof shall be made without the consent of such Holder;

(b)

the events triggering acceleration of vesting of any outstanding Option may be modified, expanded

or eliminated without the consent of the Holder thereof;

(c)

the  Plan  Administrator  may  make  the  effectiveness  of  any  such  amendment  conditional  on  the

receipt  of  shareholder  approval  at  such  time  and  in  such  manner  as  the  Plan  Administrator  may

consider   necessary   for   the   Company   to   comply   with,   or   to   avail   the   Company   and/or   the

Optionees  of  the  benefits  of,  any  Applicable  Laws,  including  any  securities,  tax,  market  listing  or

other administrative or regulatory requirement; and

(d)

the  Plan  Administrator  may  not  increase  the  number  of  Shares  available  for  issuance  on  the

exercise of Incentive Stock Options without the approval of the shareholders of the Company.

10.2

Without  limiting  the  generality  of  Section  10.1  hereof,  the  Plan  Administrator  may  modify  grants

to persons who are eligible to receive Options under this Plan who are foreign nationals  or employed outside Canada

and the United States to recognize differences in local law, tax policy or custom.

Effective Date: ____________________, 2014

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