Document:

Exhibit 10.3

 

DISTRIBUTION,
LICENSE AND SUPPLY AGREEMENT

 

THIS
AGREEMENT, effective January 22, 2015, by and between SYNERGY STRIPS CORP., a corporation
formed under the laws of the State of Nevada (“Synergy”) and KNIGHT
THERAPEUTICS (BARBADOS) INC., a corporation incorporated under the laws of Barbados (“Knight
)

 

RECITALS

 

WHEREAS
Synergy owns or licenses all right, title and interest in and to certain patents, trademark(s) and Know-How relating to an ingestible
dietary supplement product known as FOCUSFactor and including FOCUSFactor Kids;

 

WHEREAS
Synergy owns or licenses all right, title and interest in and to certain patents, trademark(s) and Know-How relating to an ingestible
dietary supplement product known as Synergy Strips;

 

WHEREAS
Knight wishes to be appointed by Synergy as exclusive distributor, to offer to sell and sell the Licensed Products in the Territory and
Synergy is willing to grant such exclusive appointment;

 

WHEREAS
Knight wishes to procure the Licensed Products from Synergy and Synergy wishes to supply the Licensed Products to Knight;

 

NOW
THEREFORE in consideration of the mutual promises and covenants contained herein, the Parties, intending to be legally bound, agree as
follows:

 

	1	DEFINITIONS

 

	1.1	Definitions.
    The following terms as used hereinafter in this Agreement shall have the meaning set forth in this Section:

 

“Additional
Territory” has the meaning set forth in Section
11.

 

“Adverse
Drug Reaction” means a noxious and unintended
response to a drug, which occurs at doses normally used or tested for the diagnosis, treatment, or prevention of a disease or the modification
of an organic function.

 

“Adverse
Drug Event” means any untoward medical occurrence
in a patient or clinical investigation subject administered a pharmaceutical product and which does not necessarily have to have a causal
relationship with this treatment.

 

“Affiliate”
means any corporation, firm, partnership or other entity that directly or indirectly controls, is controlled by or is under common
control with a Party, with “control” meaning ownership of greater than fifty percent (50%) of the voting stock or other voting
interests in the Party or the right to receive over fifty percent (50%) of the profits or earnings of the Party. Such other relationship
as in fact results in actual control over the management, business, and affairs of a Party shall also be deemed to constitute control.

 

“Agreement”,
“hereto”, “hereunder”, “herein” and
similar expressions mean this License, Development and Supply Agreement.

 

“Applicable
Laws” means any law, regulation, rule, guidance,
order, judgment or decree having the force of law in the Territory.

 

“Business
Day” means any day other than (i) Saturday
or Sunday or (ii) a day that is a legal holiday in either of Barbados or New York, New York, or (iii) any other day on which banks in
either of Barbados or New York, New York are required to be closed.

 

“Calendar
Quarter” means the three (3) month periods
ending on March 31, June 30, September 30 and December 31 in each Calendar Year.

 

    	 

     

    

 

“Calendar
Year” means, in respect of any particular
year, the one (1) year period beginning on January 1 and ending on December 31.

 

“Commercial
Sale” means any shipment of the Licensed Products
in the Territory pursuant to an arm’s length sale by Knight or its Affiliates to a Third Party.

 

“Commercialize”
means marketing, using, distributing, promoting,
offering for sale, and selling the Licensed Products.

 

“Cost
of Goods” means, with respect to the Licensed
Products, the production cost of such Licensed Products (for the avoidance of doubt, including, without limitation, manufacturing oversight
and quality assurance) calculated in accordance with internal cost accounting methods consistently applied by Synergy for its other similar
pharmaceutical products; provided, that such methods comply with IFRS. Cost of Goods shall include direct labor, direct materials (including
taxes and duties), but exclude corporate administrative overhead, any costs associated with excess capacity, any royalties or license
fees payable to third parties and any other indirect costs. Notwithstanding the foregoing, in the event a Licensed Product is manufactured
by a Third Party supplier and procured by Synergy, the “Cost of Goods” shall include the costs charged for such Licensed
Product by such Third Party supplier to Synergy.

 

“Effective
Date” means the date specified in the initial
paragraph of this Agreement.

 

“Force
Majeure” has the meaning set forth in Section
12.6.

 

“GMP”
means good manufacturing practices as required under
the rules of the applicable Governmental Authority in the Territory.

 

“Governmental
Authority” means any federal, state, provincial,
or municipal government body, commission, agency, board, court or tribunal in the Territory and having jurisdiction in the particular
circumstances.

 

“IFRS”
means, at any time, the International Financial Reporting Standards, promulgated by the International Accounting Standards Board,
as amended, supplemented or replaced from time to time.

 

“Improvements”
means any new indications, dosage strengths, reformulations,
line extensions or other advances in, modifications or improvements to the Licensed Products.

 

“Initial
Term” has the meaning set forth in Section
9.1.

 

“Know-How”
means all scientific, technical, manufacturing,
marketing, production, sales and other information relating to the Licensed Products that is known to or controlled by Synergy and which
is reasonably necessary for the Commercialization of the Licensed Products in accordance with the terms of this Agreement.

 

“Launch”
means the date of the first Commercial Sale in the
Territory of the applicable Licensed Product.

 

“Licensed
Products” means each of FOCUSFactor, FOCUSFactor
Kids and Synergy Strip and all Improvements thereto. “Licensed Product” means
either of them.

 

“Long
Term Inability to Supply” shall mean the inability
to supply at least seventy percent (70%) of the volumes of a Licensed Product indicated in the current forecast that exceeds one hundred
and twenty (120) days.

 

“Knight
Indemnified Party” has the meaning set forth
in Section 8.5.

 

    	 

     

    

 

“Net
Sales” means the gross amounts invoiced by
or on behalf of Knight and its Affiliates for sales of Products to third parties that are not Affiliates of Knight in bona fide, arm’s-length
transactions, less the following deductions if and to the extent they are (i) determined in accordance with Knight’s accounting
standards which are in accordance with IFRS, (ii) actually taken by Knight or its Affiliates and (iii) included in the gross invoiced
sales price of any Licensed Products or otherwise directly paid or incurred by Knight or its Affiliates with respect to the sale of Licensed
Products:

 

	 	(a)	cash
    discounts;
	 	 	 
	 	(b)	rebates;
	 	 	 
	 	(c)	direct
    to customer di scounts;
	 	 	 
	 	(d)	charge-backs;
	 	 	 
	 	(e)	bad
    debt;
	 	 	 
	 	(f)	amounts
    repaid or credited by reasons of defects, rejections, recalls, returns; and
	 	 	 
	 	(g)	tariffs,
    duties, excise, sales, value-added and other similar taxes (other than taxes based on income).

 

“Non-Renewal
Fee” has the meaning set forth in Section
9.7.

 

“Non-Renewal
Notice” has the meaning set forth in Section
9.1.

 

“Party”
means either Synergy or Knight and “Parties”
means both Synergy and Knight.

 

“Regulatory
Approval” means any and all approvals, marketing
authorizations, registrations and licenses (including amendments and supplements thereto) necessary from a Governmental Authority for
the Commercialization or manufacture of the Licensed Products in or for the Territory.

 

“Regulatory
Submissions” means all applications, filings,
dossiers and the like submitted to a Governmental Authority for the purpose of obtaining Regulatory Approval.

 

“Renewable
Term” has the meaning set forth in Section
9.1.

 

“SDEA”
means the Safety Data Exchange Agreement to be entered
into by the Parties within ninety (90) days after the Effective Date.

 

“Short
Term Inability to Supply” shall mean the inability
to supply at least seventy percent (70%) of the volumes of a Licensed Product indicated in the current forecast that continues for more
than sixty (60) days but less than one hundred and twenty (120) days.

 

“Specifications”
means the finished product specifications for each
Licensed Product as required by the applicable Regulatory Approval and as may be modified from time to time in accordance with the provisions
of this Agreement.

 

“Supply
Price” has the meaning set forth in Section
6.2.

 

“Synergy
Indemnified Party” has the meaning set forth
in Section 8.6.

 

“Synergy
Marks” means the trade-marks “FOCUSFactor”,
and any other marks Synergy may adopt for use for the Licensed Products.

 

“Synergy
Patents” means all patents in the Territory,
including patent applications, continuations, divisional patents, re-examined patents, reissued patents, and foreign equivalents thereof,
that are owned by or licensed to Synergy which claim inventions reasonably necessary for the Commercialization of the Licensed Products
in the Territory.

 

    	 

     

    

 

“Term”
means the Initial Term or a Renewal Term.

 

“Territory”
means Canada and, subject to Section 12, may also
include one or more of the Additional Territories.

 

“Third
Party” means any person other than the Parties
and their Affiliates.

 

	1.2	Other
    Definitional and Agreement References. References to any agreement, contract, statute, act, or regulation are to that agreement,
    contract, statute, act, or regulation as amended, modified or supplemented from time to time in accordance with the terms hereof
    and thereof

 

	1.3	Ambiguities.
    Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to
    have authored the ambiguous provision.
	 	 
	1.4	Sections
    and Headings. The term “Section” refers to the specified Section of this Agreement, unless otherwise specified. Headings
    and captions of the Sections hereof are for convenience only and are not to be used in the interpretation of this Agreement.
	 	 
	1.5	Canadian
    Dollars. References in this Agreement to “Dollars” or “$” shall mean the legal tender of the United States,
    unless otherwise noted.
	 	 
	1.6	Date
    References. References from or through any date mean, unless otherwise specified, from and including or through and including,
    respectively.
	 	 
	1.7	Gender.
    Words of one gender include the other gender.
	 	 
	1.8	Include,
    Includes, Including. Whenever the words “include”, “includes” or “including” are used in
    this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact
    followed by those words or words of like import.
	 	 
	1.9	Solidary
    Obligations. Unless specified otherwise in this Agreement, the obligations of any Party consisting of more than one person are
    solidary (joint and several).
	 	 
	1.10	No
    Strict Construction. This Agreement has been prepared jointly and shall not be strictly construed against either Party.
	 	 
	1.11	Number
    of Days. Whenever this Agreement refers to a number of days, unless otherwise specified, such number shall refer to calendar
    days.
	 	 
	1.12	Party
    References. Reference to any Party includes the successors and permitted assigns of that Party.
	 	 
	1.13	Singular/Plural.
    Words using the singular or plural number also include the plural or singular number, respectively.

 

	2.	GRANT
    OF RIGHTS

 

	2.1	Appointment.
    Subject to the terms of this Agreement, Synergy, on behalf of itself and its Affiliates, hereby appoints Knight as its exclusive
    distributor of Licensed Products in the Territory for the Term and further grants to Knight and Knight hereby accepts, for the Term,
    and for the Territory only, an exclusive license under the Synergy Patents and Know-How to Commercialize the Licensed Products.
	 	 
	2.2	Sublicensing.
    Knight may sublicense its rights granted hereunder or use sub-distributors or third party service providers to exercise its right
    or fulfill its obligations hereunder. All sublicense agreements, distribution or other arrangements or agreements shall be consistent
    with the terms and conditions of this Agreement, and Knight assumes full responsibility for any actions taken by or omissions by
    any sublicensee, distributor or other party and any of the expenses, costs, or fees incurred by any sublicensee, distributor or other
    party.

 

    	 

     

    

 

	2.3	No
    Implied Licenses. Neither Party grants to the other Party any right or license to use any of its intellectual property, Know-How
    or other proprietary information, materials or technology, or to practice any of its patent, trademark, or trade dress rights, except
    as expressly set forth in this Agreement.
	 	 
	2.4	Restriction
    on Knight Sales. Knight shall not: (i) knowingly solicit or accept orders for distribution of Licensed Products to a Third Party
    outside the Territory; (ii) knowingly distribute any Licensed Products for sale or use outside the Territory; or (iii) supply any
    Third Party that has distributed or offered to distribute Licensed Products outside the Territory after Knight has actual knowledge
    that said Third Party has distributed or offered to distribute Licensed Products obtained from Knight outside of the Territory.
	 	 
	2.5	Restriction
    on Synergy Sales. Synergy shall not: (i) knowingly solicit or accept orders for distribution of Licensed Products to a Third
    Party for sale or distribution in the Territory; (ii) knowingly distribute any Licensed Products for sale or use in the Territory;
    or (iii) supply any Third Party that has distributed or offered to distribute Licensed Products in the Territory after Synergy has
    actual knowledge that said Third Party has distributed or offered to distribute Licensed Products obtained from Synergy in the Territory.
	 	 
	2.6	Performance
    by Affiliates. The Parties agree that their respective rights and obligations may be exercised or performed by any of their Affiliates;
    provided, however, that each Party shall be fully responsible and liable for the actions of such Affiliates in the performance of
    such obligations and shall ensure that such Affiliate complies with the terms of this Agreement.
	 	 
	3	REGULATORY
    AND DEVELOPMENT
	 	 
	3.1	Regulatory
    Submissions. Knight shall be solely responsible, at its expense, for preparing, filing, and managing any Regulatory Submission
    and for maintaining any Regulatory Approval for the Licensed Products in the Territory. Synergy shall provide reasonable assistance
    to Knight in making submissions to Governmental Authorities and maintaining such Regulatory Approvals. Unless otherwise required
    by Applicable Law, any Regulatory Approvals shall be filed, owned and held in the name of Knight. Knight shall notify Synergy of
    all Regulatory Submissions that it submits.
	 	 
	3.2	Regulatory
    Correspondence. Each Party shall promptly (and in any event, within five (5) Business Days of the date of receipt of notice)
    notify the other Party in writing of, and shall provide the other Party with copies of, any material correspondence received from
    a Governmental Authority in the Territory. In the event that a Party receives any material regulatory letter requiring a response,
    the other Party will cooperate fully with the receiving Party in preparing such response and will promptly provide the receiving
    Party with any data or information required by the Receiving Party in preparing any such response.
	3.3	Other
    Covenants of Knight. In addition to its other obligations, commitments and undertakings set out in this Agreement, Knight agrees
    to:

 

	 	(a)	assume
    the reasonable costs of intellectual property fdings, procurement and maintenance for all intellectual property applications and
    registrations associated with the Licensed Products in the Territory, provided that all intellectual property rights relating to
    the Licensed Products shall remain the exclusive property of Synergy ;
	 	 	 
	 	(b)	assume
    all marketing, sales and distribution expenses related to the commercialization of the Licensed Products in the Territory; and
	 	 	 
	 	(c)	prepare
    an annual marketing and sales plan relating to the Licensed Products in the Territory.

 

    	 

     

    

 

	3.4	Other
    Covenants of Synergy. In addition to its other obligations, commitments and undertakings set out in this Agreement, Synergy agrees
    to:

 

	 	(a)	provide
    Knight with all documentation relating to the submissions for Regulatory Approval to the U S. Food and Drug Administration or the
    European Medicines Agency for the Licensed Products within one (1) month from submission;
	 	 	 
	 	(b)	where
    applicable, provide reasonable assistance to Knight with the Regulatory Submission of the Licensed Products in the Territory;
	 	 	 
	 	(c)	provide
    full assistance and cooperation with respect to securing intellectual property protection in the Territory for the Licensed Products;
	 	 	 
	 	(d)	not
    assign the intellectual property associated with Licensed Products to any Third Party;
	 	 	 
	 	(e)	coordinate
    Launch activities with Knight, including pharmacovigilence, pricing, reimbursement, positioning and health care conferences;
	 	 	 
	 	(f)	promptly
    provide United States international marketing and sales materials used for the Licensed Products.

 

	4	TRADEMARKS
	 	 
	4.1	Trade-Mark
    License. Synergy hereby grants to Knight, for the Term, an exclusive, royalty-free license to use the Synergy Marks in the Territory
    in association with the Licensed Products.
	 	 
	4.2	Ownership.
    Knight acknowledges that the Synergy Marks are owned by Synergy. The Synergy Marks shall be and remain the sole and exclusive
    property of Synergy. Knight shall not contest the ownership of the Synergy Marks or the validity of any registration relating thereto.
    Knight agrees, at the request of Synergy, to execute any and all proper documents appropriate to assist Synergy in obtaining and
    maintaining Synergy’s rights in and to the Synergy Marks.
	 	 
	4.3	Licensed
    Products to Bear Mark. Licensed Products distributed by Knight under this Agreement shall bear the Synergy Marks together with
    a notice that the Synergy Marks are used under license from Synergy, subject to the approval of such labeling by appropriate Governmental
    Authorities. Knight shall submit to Synergy, for prior approval, which shall not be unreasonably withheld, a representative sample
    of any marketing or promotional materials prepared by Knight, bearing the Synergy Marks.
	 	 
	4.4	No
    Similar Mark. Knight will not, without Synergy’s prior written consent, register or use in connection with any product,
    any trade-mark that is confusingly similar to the Synergy Marks.
	 	 
	5	COMMERCIALIZATION
	 	 
	5.1	Safety
    Data Exchange Agreement. The parties agree to develop and commit to a Safety Data Exchange Agreement (“SDEA”)
    that allows them to fulfill their respective regulatory and pharmacovigilence obligations relating to Adverse Drug Event and
    Adverse Drug Reaction reporting. Such SDEA will be completed within ninety (90) days after the Effective Date.
	 	 
	5.2	Quality
    Complaint Reporting. Knight shall be solely responsible for collecting and responding to any product quality complaint relating
    to the Licensed Products received from a customer in the Territory. Synergy shall investigate and provide Knight, in a timely manner,
    with reports resulting from such investigations. If Synergy receives a product quality complaint relating to the Licensed Products
    from a customer in the Territory, it shall investigate and promptly report the investigation results to Knight, who will be solely
    responsible for communication and response, if any, to the customer in the Territory. Furthermore, Synergy shall be responsible for
    investigating and submitting reports to Knight respecting any product quality complaints related to the manufacturing of the Licensed
    Products.

 

    	 

     

    

 

	5.3	Other
                                            Information. In addition to the foregoing information to be provided, each Party shall
                                            provide to the other Party with any: (i) information relating to the efficacy and/or safety
                                            of the Licensed Products, including any recall of the Licensed Products; (ii) complaints
                                            from customers, healthcare professionals or competitors in the Territory relating to the
                                            Licensed Products; (iii) information relating to any potential liability to any Third Party
                                            in the Territory that is reasonably likely to arise for either Party in connection with the
                                            manufacture, or Commercialization of the Licensed Products in the Territory; (iv) information
                                            relating to any inspections, inquiries, issues raised or actions taken by any Governmental
                                            Authority in the Territory; and (v) any other information necessary or reasonably desirable
                                            to enable each Party to comply with any Applicable Law in the Territory or elsewhere.

                                                                              

	 	 	 
	5.4	Recall.
    Knight shall advise Synergy of any Governmental Authority initiated mandatory recall of Licensed Products in the Territory. Knight
    shall not initiate any voluntary recall of Licensed Products in the Territory without prior notice to and consultation with Synergy.
    Prior to executing any recall of Licensed Products in the Territory, Knight shall review with Synergy the proposed manner in which
    the recall is to be carried out. Knight will give due consideration to any reasonable recommendation from Synergy as to the manner
    of conducting the recall, provided that it is agreeable to the applicable Governmental Authority. Knight shall communicate directly
    with the applicable Governmental Authorities in relation to a Licensed Products recall in the Territory. If any Licensed Products
    recall in the Territory results from improper handling, shipping or storage of Licensed Products by Knight, and in no way results
    from the manufacture, control, handling, shipping or storage of the Licensed Products before receipt by Knight, the costs associated
    with the recall shall be paid by Knight and Knight shall indemnify Synergy against any Third Party claims in connection with the
    recall. If the recall results from any cause or issue other than ones for which Knight is responsible as set forth in the prior sentence,
    all costs and expenses arising from the recall, including any costs associated with replacing recalled Licensed Products, shall be
    paid for by Synergy and Synergy shall indemnify Knight against any Third Party Claims in connection therewith.
	 	 
	6	MANUFACTURE
    AND SUPPLY
	 	 
	6.1	Manufacture
    by Synergy. During the Term, Knight agrees to obtain exclusively from Synergy all Knight’s requirements of the Licensed
    Products for the Territory. Synergy agrees to supply Knight with all of its requirements of Licensed Products as set forth in each
    order submitted by Knight. Synergy may, at its discretion, use the services of a contract manufacturer to manufacture and package
    the Licensed Products.
	 	 
	6.2	Price.
    Synergy shall supply Licensed Products at a cost to Knight equal to Synergy’s Cost of Goods plus ten percent (10%), plus
    applicable sales taxes. Payment of such amounts shall be made by Knight to Synergy within thirty-five (35) days following Knight’s
    receive of an invoice from Synergy.
	 	 
	6.3	Orders.
    Knight shall order Licensed Products from Synergy by submitting purchase orders to Synergy. Such purchase order shall specify,
    at a minimum, the desired delivery date, unit quantity, place of delivery and an order number. Knight shall order Licensed Products.
    The initial purchase order will have a lead time of between sixty (60) and ninety (90) days between the time when an order for Licensed
    Products is submitted to Synergy until the Licensed Products is delivered to Knight. Thereafter, the purchase order will have not
    less than five (5) Business Days lead time
	 	 
	6.4	Delivery
    Terms. Licensed Products will, at Knight’s direction, be shipped directly to Knight or to a Third Party in the Territory
    designated by Knight. The terms for delivery of orders of Licensed Products shall be FOB (Incoterms 2010) Synergy’s manufacturer’s
    facility in the United States.
	 	 
	6.5	Packaging
    and Labeling. Knight shall determine the artwork and design for the packaging and labelling in the Territory in consultation
    with Synergy. Knight shall be entitled to have its trade-marks displayed on the packaging for the Licensed Products. Knight shall
    be responsible for the costs associated with the development of Knight’s artwork for the packaging and labeling of the Licensed
    Products for Launch and for any changes thereto made at Knight’s request or for any special packaging required by Knight or
    a Governmental Authority.

 

    	 

     

    

 

	6.6	Specifications.
    Licensed Products manufactured and supplied to Knight hereunder shall conform to the Specifications which may be changed from
    time to time upon mutual agreement, or as required by any Governmental Authority.
	 	 
	6.7	GIMP.
    All manufacture and quality control operations by Synergy or its designee shall be in compliance with GMP.
	 	 
	6.8	Shelf
    Life. All Licensed Products supplied by Synergy hereunder shall have not less than eighty-five percent (85%) of its shelf life
    remaining upon delivery to Knight.
	 	 
	6.9	Quality
    Agreement. The Parties shall enter into a quality agreement regarding supply of Licensed Products by Synergy to Knight, incorporating
    provisions that are standard in the pharmaceutical field within ninety (90) days of the Effective Date.
	 	 
	6.10	Changes.
    A Party shall promptly notify the other Party in writing of all proposed changes, whether voluntary or involuntary, including
    those arising from a request from a Governmental Authority, concerning the quality of Licensed Products and/or documentation or other
    items for such changes relating to the quality of the Licensed Products. The Parties shall negotiate in good faith towards an appropriate
    response to a Governmental Authority in respect of each proposed change in the quality of the Licensed Products including any costs
    associated with implementing said changes. Synergy shall notify Knight of any proposed change in manufacturing facility or manufacturing
    procedures.
	 	 
	6.11	Minor
    Changes. Minor changes in the procedures for manufacture or quality control that do not require approval from a Governmental
    Authority or that will not affect Regulatory Approvals will be communicated by Synergy to Knight in an annual review.
	 	 
	6.12	Release
    to Knight. Synergy, or its designee, shall only release for shipment to Knight, finished batches of Licensed Products that have
    been examined by Synergy for compliance with the Specifications. Synergy is responsible for conducting, or having conducted, all
    required stability and release testing to ensure that the finished batches of Licensed Products are in compliance with the Specifications.
	 	 
	6.13	Quality
    Audit. During normal working hours and upon reasonable notice, Knight shall be entitled to inspect areas within Synergy’s
    or its contract manufacturer’s establishment where Licensed Products are manufactured or stored, and to inspect the manufacturing,
    packaging, and quality control records relating to the Licensed Products.
	 	 
	6.14	Government
    Inspections. Synergy shall make its internal practices, and its manufacturing, packaging, and quality control records relating
    to the Licensed Products available to Governmental Authorities and will allow access to all facilities used for manufacturing the
    Licensed Products to the applicable Governmental Authorities for the purposes of determining Synergy’s compliance with Applicable
    Laws. Synergy agrees to advise Knight immediately of any proposed or announced visit or inspection, and as soon as possible but in
    any case within three (3) Business Days after any unannounced visit or inspection, by a Governmental Authority in the Territory relating
    to the Licensed Products. Synergy shall provide Knight with a reasonable description in writing of each such visit or inspection
    promptly thereafter, and with copies of any letters, reports or other documents issued by any such Governmental Authorities that
    relate to the Licensed Products.

     

	6.15	Defects.
    Any claim by Knight regarding an apparent failure of the Licensed Products to comply with the Specifications must be made in
    writing with full particulars within thirty (30) days after receipt of the Licensed Products by Knight. In the case of latent defects,
    such defects shall be reported to Synergy within thirty (30) days of Knight having actual notice of the defect. In case of a justifiable
    claim for defect because of a failure of the Licensed Products to conform to the Specifications, Synergy or its designee shall, without
    charge, promptly replace the defective portion with supplies that are in compliance with such Specifications. Synergy shall assume
    all costs associated with transportation of replacement Licensed Products. Knight shall follow any reasonable instructions to return
    to Synergy or dispose of, in either event at Synergy’s expense, any quantities of Licensed Products as aforesaid that are not
    in compliance with the Specifications.

 

    	 

     

    

 

	6.16	Independent
    Lab. If Synergy does not agree with Knight that the Licensed Products rejected by Knight fails to conform to the Specifications,
    the matter will be submitted for analysis to an independent laboratory agreed between the Parties. The decision of such independent
    laboratory following its analysis of the Licensed Products shall be final. The cost of the analysis, as well as the costs associated
    with reasonable shipping, handling, and storage of any Licensed Products under dispute as to compliance with the Specifications,
    shall be borne by the Party who was in error.
	 	 
	6.17	Short
    Shipment. If Knight determines that there is a shortage in the quantity of any shipment of Licensed Products (from quantities
    specified in the relevant bill of lading or other shipping documents), and it is determined that discrepancy existed at the time
    it was delivered to Knight from Synergy, Knight shall notify Synergy in writing as soon as reasonably possible, and Synergy shall
    make up the shortage within thirty (30) days of such notification at no additional cost to Knight.
	 	 
	6.18	Failure.

 

	 	(a)	In
    the event of any Short Term Inability to Supply the Product in the Territory, Synergy shall be liable for payments to Knight as follows:
    (i) reimbursement for Knight’s share of all Licensed Products lost sales attributable to the Short Term Inability to Supply
    and quantified by Knight using commercially reasonable methods and (ii) all reasonable direct expenses incurred by Knight in dealing
    with and attempting to manage and resolve such Short Term Inability to Supply in the Territory, including but not limited to bona
    fide sales and marketing expenses and penalties imposed by distributors and wholesalers. Knight shall attempt to quantify the
    financial impact of any Short Term Inability to Supply, in writing, as soon as reasonably possible to Synergy and shall use all reasonable
    efforts to mitigate such impact. Payments due under this Section 6.18 shall be payable within thirty (30) days of receipt of said
    claim. In the event that two (2) Short Term Inability to Supply events occur within twenty four (24) month period, then Synergy shall,
    upon Knight’s request and Synergy’s expense, be required to enter into a contract manufacturing agreement with a Third
    Party for the manufacture in the Territory and supply of the Licensed Products to the Knight.
	 	 	 
	 	(b)	In
    the event of a Long Term Inability to Supply, Knight shall be entitled to all of the rights and recourses set forth in Section 6.18(a).
    In addition, Knight shall be entitled by notice in writing to terminate the supply arrangements contemplated in this Agreement, in
    which event:

 

	 	(i)	Knight
    shall be entitled to purchase the Licensed Products from a Third Party. For greater certainty. Synergy shall grant to a Third Party
    designated by the Knight the non-exclusive license to use all relevant intellectual property for or in respect of the manufacture
    of the Licensed Products for commercialization in the Territory.
	 	 	 
	 	(ii)	Synergy
    shall provide such assistance as is required by Knight acting reasonably, from time to time to assist in sourcing the Licensed Products
    from a third party.
	 	 	 
	 	(iii)	Without
    limiting the generality of the foregoing. Synergy shall enter into a technology transfer agreement with a Third Party manufacturer
    selected by Knight under which Synergy shall transfer to the selected manufacturer all technical information necessary to manufacture
    the Licensed Products and supply the Licensed Products in the Territory.

 

	6.19	Shortfall.
    In the event of an interruption or shortfall in supply of Licensed Products, for whatever reason, that exceeds ninety (90) days
    in duration, such that not all purchase orders for Licensed Products hereunder can be met, then Synergy shall immediately notify
    Knight and shall allocate a prorated share of its available sources and supplies among Knight and Synergy’s other partners
    (distributors, licensees, agents,) and internal needs, based on the respective forecasted commercial supply requirements of each
    of the parties for that allocation period. In any case, the Parties will discuss and agree in good faith on acceptable delivery dates
    and measures to mitigate the effects of the interruption or shortfall. Synergy shall use commercially reasonable efforts to eliminate,
    cure or overcome such shortage and to resume performance of its obligations hereunder as soon as reasonably possible.

 

    	 

     

    

 

	6.20	Capacity
    and Supply. Synergy will maintain sufficient manufacturing time in its production schedule to provide consistent availability
    of Licensed Products to meet Knight’s firm orders. Synergy shall maintain or cause its contract manufacturer to maintain sufficient
    volumes of Licensed Products as Knight and Synergy, each acting reasonably and based on the then current and anticipated sales, from
    time to time determine.
	 	 
	6.21	Payment
    Method. All payment due to Synergy hereunder will be paid in United States Dollars by wire transfer to an account designated
    by Synergy.
	 	 
	6.22	Record
    Retention. Synergy will maintain complete and accurate books, records, and accounts used for the determination of expenses, deductions,
    credits, or other relevant factors in connection with the calculation of Cost of Goods, in sufficient detail to confirm the accuracy
    of any payments required under this Agreement, which books, records, and accounts will be retained until three (3) years after the
    end of the period to which such books, records, and accounts pertain.
	 	 
	6.23	Audit.
    During the Term of this Agreement and for three (3) years thereafter, Knight will have the right to have an independent certified
    public accounting firm of internationally recognized standing access during normal business hours, and upon reasonable prior written
    notice, to such of the records of Synergy as may be reasonably necessary to verify the accuracy of Cost of Goods for any Calendar
    Quarter. The accounting firm will disclose to the Parties only whether the Cost of Goods reported by Synergy is correct or incorrect
    and the specific details concerning any discrepancies. The auditing Party will bear all costs of such audit, unless the audit reveals
    a discrepancy in the auditing Party’s favor of more than five percent (5%), in which case the other Party will bear the cost
    of the audit. Each Party will treat all information subject to review under this Section 6 as Confidential Information and will cause
    its accounting firm to enter into a reasonably acceptable confidentiality agreement obligating such firm to maintain all such financial
    information in confidence pursuant to such confidentiality agreement.
	 	 
	6.24	Payment
    of Additional Amounts. If, based on the results of any audit under Section 6.23, payments are owed by one Party to the other
    under this Agreement, then the Party having such obligation will make such payment promptly after the accounting firm’s written
    report is delivered by courier or registered mail to both Parties.
	 	 
	7.	INTELLECTUAL
    PROPERTY
	 	 
	7.1	Notification
    of Third Party Infringement. Each Party shall promptly disclose to the other in writing within ten (10) Business Days, any actual,
    alleged, or threatened Third Party infringement or misappropriation in the Territory of any Synergy Patent and any actual, alleged
    or threatened infringement or passing off of the Synergy Mark, of which such Party becomes aware.

 

    	 

     

    

 

	7.2	Response
    to Third Party Infringement. Synergy shall have
    the first right, but not any obligation, to respond to any actual or threatened infringement of an Synergy Patent, the Synergy Mark
    or of any unfair trade practices, trade dress imitation, passing off of counterfeit goods, or like offenses in the Territory relating
    to the Licensed Products. If Synergy elects to respond to any actual or threatened infringement by initiating a proceeding. Synergy
    shall use legal counsel of its choice at its expense and shall have full control over the conduct of such proceeding. Synergy may
    settle or compromise any such proceeding without the consent of Knight; provided, however, that if such settlement affects Knight’s
    rights under this Agreement, or Knight’s ability to Commercialize the Licensed Products within the Territory, or otherwise
    requires Knight to admit wrongdoing, fault, or liability. Synergy will not settle or compromise any such proceeding without the consent
    of Knight, such consent not to be unreasonably withheld, conditioned, or delayed. If Synergy elects not to respond to any actual
    or threatened infringement of an Synergy Patent, the Synergy Mark or of any unfair trade practices, trade dress imitation, passing
    off of counterfeit goods, or like offenses in the Territory relating to the Licensed Products, then Knight shall have the right,
    but not the obligation, to take action, at its sole expense, in which case Knight shall have full control over the conduct of such
    proceeding and Knight may settle or compromise any such proceeding without the consent of Synergy; provided, however, that if such
    settlement affects Synergy’s intellectual property rights or its rights under this Agreement, or Synergy’s ability to
    Commercialize the Licensed Products outside the Territory, or otherwise requires Synergy to admit wrongdoing, fault, or liability,
    Knight will not settle or compromise any such proceeding without the consent of Synergy, such consent not to be unreasonably withheld,
    conditioned, or delayed. Knight shall be solely responsible for any legal costs or damages awards made in any proceeding that is
    initiated by Knight in the event that Synergy elects not to respond to any actual or threatened infringement.
	 	 
	7.3	Cooperation.
    Each Party shall cooperate reasonably, at its
    expense, in any enforcement effort initiated by the other Party. The Parties nor their Affiliates shall contest any joinder in any
    proceeding sought to be brought by the other Party if such joinder is required by Law.
	 	 
	7.4	Recovery.
    Except as otherwise agreed to by the Parties
    as part of a cost-sharing arrangement, any monetary award recovered from a Third Party in connection with any proceeding initiated
    to protect, maintain, defend, or enforce any intellectual property in the Territory or recovered from a Third Party in connection
    with any proceeding initiated for infringement or misappropriation of intellectual property shall first be used to reimburse the
    Parties for any out-of-pocket legal expenses relating to such proceeding and the balance being retained by the Party that brought
    and controlled such litigation.
	 	 
	7.5	Infringement
    of Third Party IP. If either Party becomes aware
    that its activities performed hereunder may constitute actual or alleged infringement or misappropriation of the intellectual property
    rights of a Third Party, it shall promptly notify the other Party and the Parties shall discuss a strategy to defend or mitigate
    against any actual or alleged infringement.
	 	 
	8.	REPRESENTATION
    AND WARRANTIES
	 	 
	8
    1 	Synergy
    Covenants, Representations and Warranties Synergy
    covenants, represents and warrants (as the case may be) to Knight that:

 

	 	(a)	Synergy
    is a corporation duly organized, validly existing and in good standing under the laws of Nevada;
	 	 	 
	 	(b)	Synergy
    has the legal right and authority to enter into this Agreement;
	 	 	 
	 	(c)	Synergy
    has taken all necessary actions to authorize the execution, delivery and performance of this Agreement;

 

    	 

     

    

 

	 	(d)	Synergy
    has obtained all consents, licenses and authorizations that are necessary to perform its obligations under this Agreement;
	 	 	 
	 	(e)	Upon
    the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation of Synergy, enforceable
    against Synergy in accordance with its terms, except to the extent enforceability is limited by bankruptcy, insolvency or similar
    laws affecting creditors’ rights and remedies or equitable principles;
	 	 	 
	 	(f)	The
    performance of Synergy’s obligations under this Agreement will not conflict with its organizational documents, as amended,
    or result in a breach of any material agreements or contracts to which it is a party;
	 	 	 
	 	(g)	Synergy
    has not and will not, during the term of this Agreement, enter into any material agreements or contracts that would conflict with
    its obligations under this Agreement;
	 	 	 
	 	(h)	Synergy
    owns or licenses all of the Synergy Patents licensed to Knight pursuant to this Agreement and the Synergy Patents licensed to Knight
    pursuant to this Agreement are all of the patents owned or licensed by Synergy that are reasonably necessary for Knight to carry
    out its obligations and exercise its rights under this Agreement;
	 	 	 
	 	(i)	Synergy
    has not received any notice that the manufacture, sale, or use of the Licensed Products in the Territory infringes upon any intellectual
    property rights of any Third Parties in the Territory;
	 	 	 
	 	(j)	Synergy
    has not received any notice from a Third Party that any issued Synergy Patent is invalid or unenforceable for any reason;
	 	 	 
	 	(k)	To
    the knowledge of Synergy, there are no activities being carried out by Third Parties in the Territory that would constitute infringement
    or misappropriation of the Synergy Patents or the Synergy Mark;
	 	 	 
	 	(l)	Licensed
    Products manufactured by Synergy and provided to Knight pursuant to this Agreement will meet the Specifications at the time of delivery
    to Knight and will have been manufactured in accordance with the requirements of GMP.

 

	8.2	Knight
    Representations and Warranties. Knight covenants,
    represents and warrants to
	 	 
	 	Synergy
    (as the case may be) as follows:

 

	 	(a)
    	Knight
    is a corporation duly organized, validly existing and in good standing, under the laws of Barbados.

 

	 	(b)	Knight
    has the legal right, authority, and power to enter into this Agreement.
	 	 	 
	 	(c)	Knight
    has taken all necessary action to authorize the execution, delivery, and performance of this Agreement.
	 	 	 
	 	(d)	Upon
    the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation of Knight, enforceable
    against Knight in accordance with its terms, except to the extent enforceability is limited by bankruptcy, insolvency or similar
    laws affecting creditors’ rights and remedies or equitable principles.
	 	 	 
	 	(e)	The
    performance of Knight’s obligations under this Agreement will not conflict with its organizational documents or result in a
    breach of any material agreements or contracts to which any is a party.
	 	 	 
	 	(f)	Knight
    has not and will not, during the term of this Agreement, enter into any material agreements or contracts that would be inconsistent
    with its obligations under this Agreement.
	 	 	 
	 	(g)	Neither
    Knight nor its Affiliates will initiate a proceeding to challenge the validity or enforceability of any Synergy Patent or the Synergy
    Marks, or directly or indirectly assist any Third Party with respect to any such proceeding.

 

    	 

     

    

 

	8.3	WARRANTY
    DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES
    OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
    PURPOSE WITH RESPECT TO THE LICENSED PRODUCTS OR ANY TECHNOLOGY OR ANY LICENSE GRANTED BY EITHER PARTY HEREUNDER. SYNERGY DOES NOT
    WARRANT NOR REPRESENT THAT ANY OF THE SYNERGY PATENTS ARE VALID OR ENFORCEABLE
	 	 
	8.4	LIMITATIONS
    OF LIABILITY. WITHOUT LIMITING THE PARTIES’ OBLIGATIONS REGARDING INDEMNIFICATION, NEITHER PARTY SHALL BE LIABLE TO THE
    OTHER PARTY OR TO ANY THIRD PARTY WHO MAY BENEFIT FROM ANY PROVISION OF THIS AGREEMENT FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE
    OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES RESULTING FROM LOSS OF USE, LOSS OF PROFITS, INTERRUPTION OR LOSS OF BUSINESS OR OTHER
    ECONOMIC LOSS) ARISING OUT OF THIS AGREEMENT OR WITH RESPECT TO A PARTY’S PERFORMANCE OR NON-PERFORMANCE HEREUNDER
	 	 
	8.5	Indemnification
                                            by Synergy. Synergy hereby agrees to defend, indemnify, and hold Knight, its Affiliates
                                            and their respective officers, directors, employees and agents, (each a “Knight
                                            Indemnified Party”) harmless from and against any Third Party’s claims for
                                            loss, damage, or liability resulting from: (i) any breach of this Agreement or any warranty
                                            or covenant provided in this Agreement by Synergy or an Affiliate of Synergy; (ii) any violation
                                            of Applicable Law by Synergy or its Affiliates; and (iii) any negligent act or omission or
                                            willful misconduct of Synergy or its Affiliates; (iv) any claim that the sale by Knight or
                                            its Affiliates, of the Licensed Products infringes on intellectual property rights in the
                                            Territory of any other person; (v) any claim arising from any use, within the approved labelling,
                                            made by any person of any of the Licensed Products; in all cases, except to the extent such
                                            Third Party’s claim for loss, damage or liability is the result of: (i) any breach
                                            of this Agreement by Knight or a Knight Indemnified Party, (ii) any violation of Applicable
                                            Law by Knight or a Knight Indemnified Party, or (iii) any negligent act or omission or willful
                                            misconduct of Knight or a Knight Indemnified Party.

                                                                               

	8.6	Indemnification
    by Knight. Knight hereby agrees to defend, indemnify, and hold Synergy, its Affiliates and their respective officers, directors,
    employees and agents, (each a “Synergy Indemnified Party”) harmless from and against any Third Party’s claims
    for loss, damage, or liability resulting from: (i) any breach of this Agreement or any warranty or covenant provided in this Agreement
    by Knight or an Affiliate of Knight; (ii) any violation of Applicable Law by Knight or its Affiliates; and (iii) any negligent act
    or omission or willful misconduct of Knight or its Affiliates; in all cases, except to the extent such Third Party’s claim
    for loss, damage or liability is the result of: (i) any breach of this Agreement by Synergy or an Synergy Indemnified Party, (ii)
    any violation of Applicable Law by Synergy or an Synergy Indemnified Party, or (iii) any negligent act or omission or willful misconduct
    of Synergy or an Synergy Indemnified Party.

 

    	 

     

    

 

	8.7	Indemnification
    Procedure. If an indemnified party intends to claim indemnification under this Section 8, such party shall promptly notify the
    other party of any loss, claim, damage, liability or action in respect of which the indemnified party intends to claim such indemnification,
    and the indemnifying party shall have a first opportunity to assume the sole defense thereof with counsel selected by the indemnifying
    party and approved by the indemnified party acting reasonably; provided, however, that an indemnified party shall have the right
    to retain its own counsel and participate fully in the defense, with the fees and expenses to be paid by the indemnified party. The
    failure or delay to deliver notice to the indemnifying party, within a reasonable time after the commencement of any such proceeding,
    if irreparably prejudicial to the indemnifying party’s ability to defend such proceeding, shall relieve the indemnifying party
    of any and all liability to the indemnified party under this Section 8. The indemnified party shall cooperate fully with the indemnifying
    party and their legal representatives in the investigation of any loss, claim, damage, or liability covered by this indemnification,
    and shall mitigate such loss and damages. Any amount payable in order to satisfy an indemnity hereunder shall be paid as soon as
    reasonably possible after the indemnified party has incurred an indemnified expense and notified the indemnifying party thereof.
	 	 
	8.8	Compliance
    with Law. Each Party shall comply, and shall require their Affiliates and permitted sublicensees to comply, with all Applicable
    Laws relative to their obligations hereunder.
	 	 
	8.9	Insurance.
    The Parties shall maintain insurance, including product liability insurance, that is adequate to cover their obligations hereunder
    and that is consistent with normal business practices of prudent corporations engaged in the same or a similar business. The Parties
    acknowledge and agree that such insurance shall not be construed to create a limit with respect to their indemnification obligations.
	9.	TERM
    AND TERMINATION
	 	 
	9.1	Term.
    This Agreement will take effect from the Effective Date and, unless earlier terminated in accordance with the terms herein, will
    continue in full force and effect for fifteen (15) years from the Launch (the “Initial Term”). This Agreement
    shall automatically renew for successive fifteen (15) year periods (each a “Renewal Term”) unless, at least one
    (1) year prior to the expiry of the Initial Term or Renewal Term, either Party provides the other with written notice of its intention
    not to renew the Agreement (a “Non-Renewal Notice”) at the end of the applicable period, and further provided
    that if the notifying Party is Synergy, it shall be obliged to pay to Knight the Non-Renewal Fee set out in Section 9.7 below.
	 	 
	9.2	Termination
    for Breach. Either Party may terminate this Agreement by written notice to the other Party with immediate effect in the following
    cases:

 

	 	(a)	In
    the event of a petition in bankmptcy or insolvency of the other Party, or in case of the filing by the other Party of any petition
    or answer seeking reorganization, readjustment, or rearrangement of its business under any law or any government regulation relating
    to bankruptcy or insolvency, or in case of the institution by the other Party of any proceedings for the liquidation or winding up
    of its business, or for the termination of its corporate charter.
	 	 	 
	 	(b)	If
    the other Party is otherwise in material default or breach of this Agreement and such default or breach is not cured within (i) sixty
    (60) days after written notice thereof is delivered to the defaulting or breaching Party (thirty (30) days in the case of Knight’s
    failure to pay any amounts due hereunder), or (ii) in the case of a breach that cannot be cured within sixty (60) days, within a
    reasonable period not exceeding one hundred twenty (120) days after written notice thereof is delivered to the defaulting or breaching
    Party.

 

	9.3	Termination
    of Knight. Knight may terminate this Agreement in whole or in part (with respect to a particular Licensed Product Territory or
    Additional Territory) by notice in writing given no less than sixty (60) days prior to the intended termination date.
	 	 
	9.4	Effect
    of Termination. Upon expiry or termination of this Agreement, all licenses and rights granted by Synergy hereunder shall terminate
    and Knight undertakes to:

 

	 	(a)	except
    as provided for in Section 9.6, cease any Commercialization of the Licensed Products in the Territory; and
	 	 	 
	 	(b)	within
    thirty (30) days or expiry or termination, transfer title to all current and pending Regulatory Approvals for the Licensed Products
    to Synergy and assist Synergy, at Synergy’s cost, in submitting appropriate documents to transfer the Regulatory Approvals
    for the Licensed Products to Synergy or its designee.

 

    	 

     

    

 

	9.5	Survival.
    In the event of the termination of this Agreement for any reason, the following provisions of this Agreement shall survive Sections
    1, 7, 9, 10 and 12 and any other terms which, by their nature, require or contemplate performance by the Parties after expiry or
    termination. In any event, termination of this Agreement shall not relieve the Parties of any liability which accrued hereunder prior
    to the effective date of such termination.
	 	 
	9.6	Sell-Off
    of Inventory. Upon termination of this Agreement, Knight shall be entitled to sell off any inventory of the Licensed Products
    in Knight’s possession or control or which are subject to binding purchase orders on the date such termination is effective.
	 	 
	9.7	Non-Renewal
    Fee. In the event that Synergy issues a Non-Renewal Notice, it shall be obliged to pay to Knight an amount equal to the Net Sales
    of the Licensed Products as achieved by Knight in the Territory during the eight (8) Calendar Quarters preceding the date of such
    notice, plus all applicable taxes (the “Non-Renewal Fee”). Within sixty (60) days of its receipt of the Non-Renewal
    Notice, Knight shall issue an invoice for the payment of the Non-Renewal Fee which shall include reasonable details as to the calculation
    of the said amount. The Non-Renewal Fee shall be payable by Synergy within thirty (30) days of the issuance of the said invoice.
	 	 
	10.	DISPUTE
    RESOLUTION
	 	 
	10.1	Arbitration.
    Except as otherwise expressly provided herein, any dispute or claim arising out of or relating to this Agreement, or to the breach,
    termination, or validity of this Agreement, will be resolved as follows: each Party shall discuss the matter and make reasonable
    efforts to attempt to resolve the dispute. If the Parties are unable to resolve, the dispute a CEO or President of each Party will
    meet within thirty days (30) of a request to attempt to resolve such dispute being made by a Party. If the CEOs or Presidents cannot
    resolve the dispute through good faith negotiations within sixty (60) days after a Party requests such meeting, then the Parties
    shall resort to binding arbitration before a single arbitrator using the arbitration procedures set forth under the simplified rules
    of the American Arbitration Association under its Commercial Arbitration Rules. Any hearing in the course of the arbitration shall
    be held in New York New York in the English language. The decision of the arbitrator shall be final and not subject to appeal and
    the arbitrator may apportion the costs of the arbitration, including the reasonable fees and disbursements of the parties, between
    or among the parties in such manner as the arbitrator considers reasonable. All matters in relation to the arbitration shall be kept
    confidential to the full extent permitted by law, and no individual shall be appointed as an arbitrator unless he or she agrees in
    writing to be bound by this provision.
	 	 
	10.2	Irreparable
    Harm. Notwithstanding anything to the contrary in Section 10.2, if either Party in its sole judgment, acting reasonably, believes
    that any such dispute could cause it irreparable harm, such Party (i) will be entitled to seek equitable relief in order to avoid
    such irreparable harm and (ii) will not be required to follow the procedures set forth in Section 10.2.

 

    	 

     

    

 

	11.	KNIGHT
    OPTION FOR ADDITIONAL TERRITORIES
	 	 
	 	Knight
    (directly or through one of its Affdiates) shall have the option to become Synergy’s exclusive distribution partner for either
    or both of the Licensed Products in any one or more of Israel, Russia and Sub-Saharan Africa (each an “Additional
    Territory”) under the same terms and conditions as this Agreement. Knight shall inform Synergy of its intention
    to exercise such right (directly or through one of its Affdiates) at any time or from time to time by notice in writing. If Knight
    exercises such right, then the said Additional Territories and the Licensed Product(s) referred to in such Territory shall be deemed
    to be part of the “Territory” for all purposes of this Agreement. Where the option is exercised on behalf of a Knight
    Affiliate, the parties shall enter into a separate and identified agreement concerning the particular Licensed Product and Additional
    Territory.

 

	12.	OTHER
    PROVISIONS
	 	 
	12.1	Withholding
    Tax. Knight will make all payments to Synergy under this Agreement without deduction or withholding for taxes except to the extent
    that any such deduction or withholding is required by law in effect at the time of payment. Any tax required to be withheld on amounts
    payable by Knight under this Agreement will be timely paid by Knight on behalf of Synergy to the appropriate Governmental Authority,
    and Knight will furnish Synergy with the corresponding proof of payment of such tax, as may be required in order to enable Synergy
    to request reimbursement or deduction of the withheld amount, or to otherwise comply with its duties. Knight and Synergy agree to
    cooperate to legally minimize and reduce such withholding taxes and provide any information or documentation required by any taxing
    authority.
	 	 
	12.2	Further
    Assurances. Upon request by either Party and at such Party’s expense, the other Party shall do such further acts and execute
    such additional agreements and instruments as may be reasonably necessary to give effect to the purposes of this Agreement.
	 	 
	12.3	Independent
    status. Each Party shall act as an independent contractor and shall not bind nor attempt to bind the other Party to any contract,
    nor any performance of obligations outside of the license agreement. Nothing contained or done under the Agreement shall be interpreted
    as constituting either Party the agent of the other in any sense of the term whatsoever or in the relationship of partners or joint
    venturers.
	 	 
	12.4	Assignment.
    Except in connection with the acquisition of a Party or the sale of all or substantially all of the assets of such Party, this
    Agreement may not be, directly or indirectly, assigned or transferred, in whole or in part, by a Party to a Third Party without the
    prior written consent of the other Party. The rights and obligations contained herein shall enure to the benefit of each Party’s
    successors and permitted assigns, and shall be binding on and enforceable against the relevant Party’s successors and permitted
    assigns. Any reference in this Agreement to any Party shall be construed accordingly.

 

	12.5	Compliance
    with law. Each Party shall comply with, and shall not be in violation of any valid applicable international, national, provincial
    or local statutes, laws, ordinances, rules, regulations, or other governmental orders of the Territory.
	 	 
	12.6	Force
    Majeure. No Party shall be responsible for a failure or delay in performance of any of the obligations hereunder due wars, insurrections,
    strikes, acts of God, power outages, storms, or actions of regulatory agencies (such events being defined as “Force Majeure”),
    provided that the Party seeking relief from its obligations advises the other Party forthwith of the Force Majeure. A Party whose
    performance of obligations has been delayed by force majeure shall use commercially reasonable efforts to overcome the effect of
    the Force Majeure as soon as possible. The other Party will have no right to demand indemnity for damage or assert a breach against
    such Party, provided, however, that if the event of Force Majeure preventing performance shall continue for more than six (6) months
    and such underlying cause would not also prevent other parties from performing such obligations, then the Party not subject to the
    event of Force Majeure may terminate this Agreement with a written notice to the other without any liability hereunder, except the
    obligation to make payments due to such date.

 

    	 

     

    

 

	12.7	Notices
    and Amendments. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be
    given by facsimile or other means of electronic communication or by hand delivery as hereinafter provided. Any such notice, if sent
    by fax or other means of electronic communication, shall be deemed to have been received on the day of sending, or if delivered by
    hand shall be deemed to have been received at the time it is delivered to the applicable address noted below. Notices of change of
    address shall also be governed by this Section 12.7. Notices and other communications shall be addressed as follows:

 

	 	(a)
    In the case of Synergy:
	 	 	 
	 	 	Synergy
    Strips Corp.

    c/o Jack Ross 865 Spring 

    Street Westbrook, Maine 04092 

    Fax:
	 	 	 
	 	E-mail:	jack.ross@purebrands.ca
	 	 	 
	 	with
    a copy to:
	 	Wyrick
    Robbins Yates & Ponton LLP 

    4101 Lake Boone Trail, Suite 300 

    Raleigh, North Carolina 27607 U.S.A.
	 	Attention:	W.
    David Mannheim, Esq.
	 	Fax:	(919)
    781-4865
	 	E-mail:	dmann
    heim@ wy ri ck. c om

 

	 	Knight
    Therapeutics (Barbados) Inc.
	 	Chancery
    House High Street
	 	Bridgetown,
    St. Michael
	 	BB11128	 
	 	Barbados,
    WI
	 	Attention:	Andrew
    C. Ferreira
	 	Fax:	1-246-431-0076
	 	 	 
	 	With
    a copy to:
	 	 	 
	 	Davies
    Ward Phillips & Vineberg LLP 900 Third Avenue 24th Floor
	 	New
    York, NY 10022
	 	LJ.S.A.	 
	 	Attention:	Hillel
    W. Rosen
	 	Fax:	(212)308-0132

 

	12.8	Complete
    Agreement. This Agreement together with the SDEA, and the Quality Agreement, embodies all of the understandings and obligations
    between the Parties with respect to the Licensed Products and supersedes any prior or contemporaneous agreements and understandings,
    whether written or oral, between the Parties with respect to the subject matter hereof. Any amendments or supplements to this Agreement
    shall not be valid unless executed in writing by duly authorized officers of both parties.
	 	 
	12.9	Waiver.
    No failure to exercise and no delay in exercising any right or remedy hereunder shall operate as a waiver thereof. Any waiver
    granted hereunder shall only be applicable the specific acts covered thereby and shall not apply to any subsequent events, acts,
    or circumstances.
	 	 
	12.10	Severability.
    In the event any portion of this Agreement shall be held illegal, void or ineffective, the remaining portion hereof shall remain
    in full force and effect. If any of the terms or provisions of this Agreement are in conflict with any applicable statute or rule
    of law, then such terms or provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed
    to be modified to conform with such statute or rule of law.

 

    	 

     

    

 

	12.11	Governing
    Law. This Agreement all disputes arising out of or relating to this Agreement, or the performance, enforcement, breach or termination
    hereof or thereof, and any remedies relating thereto, shall be construed, governed by and interpreted in accordance with the laws
    of the State of New York.

 

	12.12	Public
    Announcements. Neither Party shall originate any publicity, news release, or public announcements relating to this Agreement
    (including, without limitation, its existence, its subject matter, the Parties’ performance, any amendment hereto, or performance
    hereunder), whether to the public or press, stockholders, or otherwise, without the prior written consent of the other Party, save
    only such announcements that are required by law or the rules of any relevant stock exchange to be made or that are otherwise agreed
    to by the Parties. If a Party decides to make an announcement, whether required by law or otherwise, it shall give the other Party
    reasonable notice of the text of the announcement so that the other Party shall have an opportunity to comment upon the announcement.
    To the extent that the receiving Party reasonably requests the deletion of any information in any such announcement, the disclosing
    Party shall delete such information unless, in the opinion of the disclosing Party’s legal counsel, such information is required
    by law or the rules of any relevant stock exchange to be disclosed. The timing and content of the initial press release relating
    to this Agreement, if any, including its existence, the subject matter to which it relates and the transactions contemplated herein
    will, except as otherwise required by law or any stock exchange rules, be determined jointly by the Parties.
	 	 
	12.13	Counterparts.
    This Agreement may be executed in any number of counterparts, each of which shall be considered one and the same Agreement and
    shall become effective when a counterpart hereof has been signed by each of the Parties and delivered to the other Party.
	 	 
	12.14	Time
    of Essence. Time shall be of the essence of this Agreement and of each provision hereof.
	 	 
	12.15	English
    Language. At the request of the parties, this Agreement and the other Loan Documents have been negotiated in the English language
    and will be or have been executed in the English language. Les soussignes out expressement demande que ce document et tons les
    documents annexes soient rediges en langue anglaise.

 

(Signature
page follows)

 

    	 

     

    

 

IN
WITNESS WHEREOF, the parties have signed this Agreement

 

	By:	/s/
    Jack Ross	 	By:	/s/
    [Unintelligible]
	Name:	JACK
    ROSS	 	Name:	CHANCERY
    CORPORATE SERVICES LIMITED
	Title:	CEO	 	Title:	SECRETARYExhibit
10.4

 

Synergy
Strips Corp. 2014

Equity
Incentive Plan

 

1.
ESTABLISHMENT OF PLAN; DEFINITIONS

 

1.1
Purpose. The purpose of the Synergy Strips Corp. 2014 Equity Incentive Plan is to encourage certain officers, employees, directors,
and consultants of Synergy Strips Corp., a Nevada corporation (the “Company”), to acquire and hold stock in the Company as
an added incentive to remain with the Company and increase their efforts in promoting the interests of the Company, and to enable the
Company to attract and retain capable individuals.

 

1.2
Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings set forth below:

 

1.2.1
“Award” shall mean, individually or collectively, a grant under this Plan of Stock Options or Stock Awards.

 

1.2.2
“Award Agreement” shall mean a written agreement containing the terms and conditions of an Award, not inconsistent with this
Plan.

 

1.2.3
“Beneficiary” and “Beneficial Ownership” shall mean the person, persons, trust, or trusts that have been designated
by a Grantee in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under
this Plan upon such Grantee’s death or to which Awards or other rights are transferred if and to the extent permitted under Section
7.2.4 hereof. If, upon a Grantee’s death, there is no designated Beneficiary or surviving designated Beneficiary, then the term
Beneficiary shall mean the person, persons, trust, or trusts entitled by will or the laws of descent and distribution to receive such
benefits.

 

1.2.4
“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act and any successor to
such Rule.

 

1.2.5
“Board” shall mean the board of directors of the Company.

 

1.2.6
“Change in Control” shall mean a Change in Control as defined in Section 7.1.1(b).

 

1.2.7
“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.

 

1.2.8
“Committee” shall mean the Board or a committee of the Board appointed pursuant to Section 1.4 of this Plan.

 

1.2.9
“Common Stock” shall mean the Company’s common stock, par value $0.00001 per share.

 

1.2.10
“Company” shall mean Synergy Strips Corp., a Nevada corporation.

 

1.2.11
“Consultants” shall mean individuals who provide services to the Company and any Subsidiary who are not also Employees or
Directors and which services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly
or indirectly promote or maintain a market for the Company’s securities.

 

1.2.12
“Covered Employee” shall mean a Grantee who, as of the date of vesting and/or payout of an Award, or the date the Company
or any of its Subsidiaries is entitled to a tax deduction as a result of the Award, as applicable, is one of the group of “covered
employees,” as defined in the regulations promulgated under Code Section 162(m), or any successor statute.

 

1.2.13
“Designated Officer” shall mean any executive officer of the Company to whom duties and powers of the Board or Committee
hereunder have been delegated pursuant to Section 1.4.3.

 

    	 

    	 

    

 

1.2.14
“Directors” shall mean those members of the Board or the board of directors of any Subsidiary who are not also Employees.

 

1.2.15
“Disability” shall mean a medically determinable physical or mental condition that causes an Employee, Director, or Consultant
to be unable to engage in any substantial gainful activity and that can be expected to result in death or to be of long-continued and
indefinite duration.

 

1.2.16
“Effective Date” shall mean the effective date of this Plan, which shall be the Stockholder Approval Date.

 

1.2.17
“Employee” shall mean any common law employee, including Officers, of the Company or any Subsidiary as determined under the
Code and the Treasury Regulations thereunder.

 

1.2.18
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

1.2.19
“Fair Market Value” shall mean (i) if the Common Stock is listed on a national securities exchange or the NASDAQ system,
the mean between the highest and lowest sales prices for the Common Stock on such date, or, if no such prices are reported for such day,
then on the next preceding day on which there were reported prices; (ii) if the Common Stock is not listed on a national securities exchange
or the NASDAQ system, the mean between the bid and asked prices for the shares on such date, or if no such prices are reported for such
day, then on the next preceding day on which there were reported prices; or (iii) as determined in good faith by the Board.

 

1.2.20
“Grantee” shall mean an Officer, Employee, Director, or Consultant granted an Award.

 

1.2.21
“Incentive Stock Option” shall mean a Stock Option that meets the requirements of Code Section 422 and is granted pursuant
to the Incentive Stock Option provisions as set forth in Section 2.

 

1.2.22
“Incumbent Board” shall mean the Incumbent Board as defined in Section 7.1.1(b)(ii).

 

1.2.23
“Non-Statutory Stock Option” shall mean a Stock Option that does not meet the requirements of Code Section 422 and is granted
pursuant to the Non-Statutory Stock Option provisions as set forth in Section 3.

 

1.2.24
“Officer” shall mean a person who is an officer of the Company or a Subsidiary within the meaning of Section 16 of the Exchange
Act and the rules and regulations promulgated thereunder.

 

1.2.25
“Performance Award” shall mean an Award under Section 6 hereof.

 

1.2.26
“Performance Measure” shall mean one or more of the following criteria, or such other operating objectives, selected by the
Committee to measure performance of the Company or any Subsidiary for a Performance Period, whether in absolute or relative terms: basic
or diluted earnings per share of Stock; earnings per share of Common Stock growth; revenue; operating income; net income (either before
or after taxes); earnings and/or net income before interest and taxes; earnings and/or net income before interest, taxes, depreciation,
and amortization; return on capital; return on equity; return on assets; net cash provided by operations; free cash flow; Common Stock
price; economic profit; economic value; total stockholder return; and gross margins and costs. Each such measure shall be determined
in accordance with generally accepted accounting principles as consistently applied and, as determined by the independent accountants
of the Company in the case of a Performance Award to a Covered Employee, to the extent intended to meet the performance-based compensation
exception under Code Section 162(m), or as determined by the Committee for other Performance Awards, adjusted to omit the effects of
extraordinary items, gain or loss on the disposal of a business segment, unusual or infrequently occurring events and transactions, and
cumulative effects of changes in accounting principles.

 

1.2.27
“Performance Period” shall mean a period of not less than one (1) year over which the achievement of targets for Performance
Measures is determined.

 

    	 

    	 

    

 

1.2.28
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, and shall include a “group” as defined in Section 13(d) thereof.

 

1.2.29
“Plan” shall mean the Synergy Strips Corp. 2014 Equity Incentive Plan as set forth herein and as amended from time to time.

 

1.2.30
“Related Entity” shall mean any Subsidiary, and any business, corporation, partnership, limited liability company, or other
entity designated by the Board, in which the Company or a Subsidiary holds a substantial ownership interest, directly or indirectly.

 

1.2.31
“Restricted Stock” shall mean Common Stock that is issued pursuant to the Restricted Stock provisions as set forth in Section
4.

 

1.2.32
“Restricted Stock Units” shall mean Common Stock that is issued pursuant to the Restricted Stock Unit provisions as set forth
in Section 5.

 

1.2.33
“Rule 16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

 

1.2.34
“Stockholder Approval Date” shall mean the date on which this Plan is approved by the stockholders of the Company eligible
to vote in the election of directors, by a vote sufficient to meet the requirements of Code Sections 162(m) (if applicable) and 422,
Rule 16b-3 under the Exchange Act (if applicable), applicable requirements under the rules of any stock exchange or automated quotation
system on which the Common Stock may be listed on quoted, and other laws, regulations, and obligations of the Company applicable to this
Plan.

 

1.2.35
“Stock Award” shall mean an award of Restricted Stock or Restricted Stock Units granted pursuant to this Plan.

 

1.2.36
“Stock Option” shall mean an option granted pursuant to this Plan to purchase shares of Common Stock.

 

1.2.37
“Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with and
including the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

1.3
Shares of Common Stock Subject to this Plan.

 

1.3.1
Subject to the provisions of Section 7.1, the shares of Common Stock that may be issued pursuant to Stock Options and Stock Awards granted
under this Plan shall not exceed fifteen million five hundred twenty five thousand (15,525,000) shares in the aggregate. If a Stock Option
shall expire and terminate for any reason, in whole or in part, without being exercised or, if Stock Awards are forfeited because the
restrictions with respect to such Stock Awards shall not have been met or have lapsed, the number of shares of Common Stock that are
no longer outstanding as Stock Awards or subject to Stock Options may again become available for the grant of Stock Awards or Stock Options.
There shall be no terms and conditions in a Stock Award or Stock Option that provide that the exercise of an Incentive Stock Option reduces
the number of shares of Common Stock for which an outstanding Non-Statutory Stock Option may be exercised; and there shall be no terms
and conditions in a Stock Award or Stock Option that provide that the exercise of a Non-Statutory Stock Option reduces the number of
shares of Common Stock for which an outstanding Incentive Stock Option may be exercised.

 

1.3.2
The maximum number of shares of Common Stock subject to Awards that may be granted during any one calendar year to any one Covered Employee
shall be limited to five million one hundred seventy five thousand (5,175,000) shares. To the extent required by Code Section 162(m)
and so long as Code Section 162(m) is applicable to persons eligible to participate in this Plan, shares of Common Stock subject to the
foregoing maximum with respect to which the related Award is terminated, surrendered, or cancelled shall nonetheless continue to be taken
into account with respect to such maximum for the calendar year in which granted.

 

    	 

    	 

    

 

1.4
Administration of this Plan.

 

1.4.1
The Plan shall be administered by the Board. In the alternative, the Board may delegate authority to a Committee to administer this Plan
on behalf of the Board, subject to such terms and conditions as the Board may prescribe. Such Committee shall consist of not less than
two (2) members of the Board each of whom is a “non-employee director” within the meaning of Rule 16b-3, or any successor
rule of similar import, and an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated
thereunder. Once appointed, the Committee shall continue to serve until otherwise directed by the Board. From time to time, the Board
may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new
members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and, thereafter, directly administer
this Plan. In the event that the Board is the administrator of this Plan in lieu of a Committee, the term “Committee” as
used herein shall be deemed to mean the Board.

 

1.4.2
The Committee shall meet at such times and places and upon such notice as it may determine. A majority of the Committee shall constitute
a quorum. Any acts by the Committee may be taken at any meeting at which a quorum is present and shall be by majority vote of those members
entitled to vote. Additionally, any acts reduced to writing or approved in writing by all of the members of the Committee shall be valid
acts of the Committee.

 

1.4.3
The Board may, in its sole discretion, divide the duties and powers of the Committee by establishing one or more secondary Committees
to which certain duties and powers of the Board hereunder are delegated (each of which shall be regarded as a “Committee”
under this Plan with respect to such duties and powers), or delegate all of its duties and powers hereunder to a single Committee. Additionally,
if permitted by applicable law, the Board or Committee may delegate any or all of its duties and powers hereunder to a Designated Officer
subject to such conditions and limitations as the Board or Committee shall prescribe. However, only the Committee described under Section
1.4.1 may designate and grant Awards to Grantees who are subject to Section 16 of the Exchange Act or Section 162(m) of the Code. The
Committee shall also have the power to establish sub-plans (which may be included as appendices to this Plan or the respective Award
Agreement), which may constitute separate programs, for the purpose of establishing programs that meet any special tax or regulatory
requirements of jurisdictions other than the United States and its subdivisions. Any such interpretations, rules, administration and
sub-plans shall be consistent with the basic purposes of this Plan.

 

1.4.4
Powers of the Committee. The Committee shall have all the powers vested in it by the terms of this Plan, such powers to include
authority, in its sole and absolute discretion, to grant Awards under this Plan, prescribe Award Agreements and establish programs for
granting Awards. The Committee shall have full power and authority to take all other actions necessary to carry out the purpose and intent
of this Plan, including, but not limited to, the authority to:

(a)
determine the Grantees to whom, and the time or times at which, Awards shall be granted;

 

(b)
determine the types of Awards to be granted;

 

(c)
determine the number of shares of Common Stock and/or amount of cash to be covered by or used for reference purposes for each Award;

 

(d)
impose such terms, limitations, vesting schedules, restrictions, and conditions upon any such Award as the Committee shall deem appropriate,
including without limitation establishing, in its discretion, Performance Measures that must be satisfied before an Award vests and/or
becomes payable, the term during which an Award is exercisable, the purchase price, if any, under an Award, and the period, if any, following
a Grantee’s termination of employment or service with the Company or any Subsidiary during which the Award shall remain exercisable;

 

    	 

    	 

    

 

(e)
modify, extend, or renew outstanding Awards, accept the surrender of outstanding Awards, and substitute new Awards, provided that no
such action shall be taken with respect to any outstanding Award that would materially and adversely affect the Grantee without the Grantee’s
consent, or constitute a repricing of stock options without the consent of the holders of the Company’s voting securities under
Section 1.4.4(f) below;

 

(f)
only with the approval of the holders of the voting securities of the Company to the extent that such approval is required by applicable
law, regulation, or the rules of a national securities exchange or automated quotation system to which the Company is subject, reprice
Incentive Stock Options and Non-Statutory Stock Options either by amendment to lower the exercise price or by accepting such stock options
for cancellation and issuing replacement stock options with a lower exercise price or through any other mechanism;

 

(g)
accelerate the time in which an Award may be exercised or in which an Award becomes payable and waive or accelerate the lapse, in whole
or in part, of any restriction or condition with respect to an Award;

 

(h)
establish objectives and conditions, including targets for Performance Measures, if any, for earning Awards and determining whether Awards
will be paid after the end of a Performance Period; and

 

(i)
permit the deferral of, or require a Grantee to defer such Grantee’s receipt of or the delivery of Stock and/or cash under an Award
that would otherwise be due to such Grantee and establish rules and procedures for such payment deferrals, provided the requirements
of Code Section 409A are met with respect to any such deferral.

 

The
Committee shall have full power and authority to administer and interpret this Plan and to adopt such rules, regulations, agreements,
guidelines, and instruments for the administration of this Plan as the Committee deems necessary, desirable or appropriate in accordance
with the bylaws of the Company.

 

1.4.5
To the maximum extent permitted by law, no member of the Board or Committee or a Designated Officer shall be liable for any action taken
or decision made in good faith relating to this Plan or any Award thereunder.

 

1.4.6
The members of the Board and Committee and any Designated Officer shall be indemnified by the Company in respect of all their activities
under this Plan in accordance with the procedures and terms and conditions set forth in the Certificate of Incorporation and bylaws of
the Company as in effect from time to time. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s Certificate of Incorporation and bylaws, as a matter of law, or otherwise.

 

1.4.7
All actions taken and decisions and determinations made by the Committee or a Designated Officer on all matters relating to this Plan
pursuant to the powers vested in it hereunder shall be in the Committee’s or Designated Officer’s sole and absolute discretion
and shall be conclusive and binding on all parties concerned, including the Company, its stockholders, any Grantees, and any other Employee,
and their respective successors in interest.

 

1.5
Amendment or Termination.

 

1.5.1
The Committee, without further approval of the Company’s stockholders, may amend or terminate this Plan or any portion thereof
at any time, except that no amendment shall become effective without prior approval of the stockholders of the Company to increase the
number of shares of Common Stock subject to this Plan or if stockholder approval is necessary to comply with any tax or regulatory requirement
or rule of any national securities exchange or national automated quotation system upon which the Common Stock is listed or quoted (including
for this purpose stockholder approval that is required for continued compliance with Rule 16b-3 or stockholder approval that is required
to enable the Committee to grant Incentive Stock Options pursuant to this Plan).

 

1.5.2
The Committee shall be authorized to make minor or administrative amendments to this Plan as well as amendments to this Plan that may
be dictated by the requirements of U.S. federal or state laws applicable to the Company or that may be authorized or made desirable by
such laws. The Committee may amend any outstanding Award in any manner as provided in Section 1.4.4 and to the extent that the Committee
would have had the authority to make such Award as so amended.

 

    	 

    	 

    

 

 

1.5.3
No amendment to this Plan or any Award may be made that would materially adversely affect any outstanding Award previously made under
this Plan without the approval of the Grantee. Further, no amendment to this Plan or an Award shall be made that would cause any Award
to fail to either comply with or meet an exception from Code Section 409A.

 

1.6
Effective Date and Duration of this Plan. This Plan shall become effective on the Effective Date. This Plan shall terminate at
such time as may be determined by the Board, and no Stock Award or Stock Option may be issued or granted under this Plan thereafter,
but such termination shall not affect any Stock Award or Stock Option theretofore issued or granted.

 

2.
INCENTIVE STOCK OPTION PROVISIONS

 

2.1
Granting of Incentive Stock Options.

 

2.1.1
Only Employees of the Company shall be eligible to receive Incentive Stock Options under this Plan. Officers, Directors, and Consultants
of the Company who are not also Employees shall not be eligible to receive Incentive Stock Options.

 

2.1.2
The purchase price of each share of Common Stock subject to an Incentive Stock Option shall not be less than 100% of the Fair Market
Value of a share of the Common Stock on the date the Incentive Stock Option is granted. If an Employee owns or is deemed to own (by reason
of the attribution rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock
of the Company (or any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and
(f) of the Code, respectively) and an Incentive Stock Option is granted to such Employee, the exercise price of such Incentive Stock
Option (to the extent required by the Code at the time of grant) shall be no less than 110% of the Fair Market Value of a Share on the
date such Incentive Stock Option is granted.

 

2.1.3
No Incentive Stock Option shall be exercisable more than ten (10) years from the date the Incentive Stock Option was granted; provided
however, that if a Grantee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10%
of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation of the Company,
as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and the Incentive Stock Option is granted to such Grantee,
the term of the Incentive Stock Option shall be (to the extent required by the Code at the time of the grant) for no more than five (5)
years from the date of grant.

 

2.1.4
The Committee shall determine and designate from time to time those Employees who are to be granted Incentive Stock Options and specify
the number of shares subject to each Incentive Stock Option.

 

2.1.5
The Committee, in its sole discretion, shall determine whether any particular Incentive Stock Option shall become exercisable in one
or more installments, specify the installment dates, and, within the limitations herein provided, determine the total period during which
the Incentive Stock Option is exercisable. Further, the Committee may make such other provisions as may appear generally acceptable or
desirable to the Committee or necessary to qualify its grants under the provisions of Section 422 of the Code.

 

2.1.6
The Committee may grant at any time new Incentive Stock Options to an Employee who has previously received Incentive Stock Options or
other options whether such prior Incentive Stock Options or other options are still outstanding, have previously been exercised in whole
or in part, or are cancelled in connection with the issuance of new Incentive Stock Options. The purchase price of the new Incentive
Stock Options may be established by the Committee without regard to the existing Incentive Stock Options or other options.

 

    	 

    	 

    

 

2.1.7
Notwithstanding any other provisions hereof, the aggregate Fair Market Value (determined at the time the option is granted) of the Common
Stock with respect to which Incentive Stock Options are exercisable for the first time by the Employee during any calendar year (under
all such plans of the Grantee’s employer corporation and its parent corporation or subsidiary corporation as those terms are defined
in Sections 424(e) and (f) of the Code, respectively) shall not (to the extent required by the Code at the time of the grant) exceed
One Hundred Thousand Dollars ($100,000). To the extent that such aggregate Fair Market Value shall exceed One Hundred Thousand Dollars
($100,000), or other applicable amount, such Stock Options to the extent of the Common Stock in excess of such limit shall be treated
as Non-Statutory Stock Options. In such case, the Company may designate the shares of Common Stock that are to be treated as Stock acquired
pursuant to the exercise of an Incentive Stock Option.

 

2.2
Exercise of Incentive Stock Options. The exercise price of an Incentive Stock Option shall be payable on exercise of the option
(i) in cash or by check, bank draft, or postal or express money order, (ii) ) if provided in the written Award Agreement and permitted
by applicable law, by the surrender of Common Stock then owned by the Grantee, which Common Stock such Grantee has held for at least
six (6) months, (iii) the proceeds of a loan from an independent broker-dealer whereby the loan is secured by the option or the stock
to be received upon exercise, or (iv) any combination of the foregoing; provided, that each such method and time for payment and
each such borrowing and terms and conditions of repayment shall then be permitted by and be in compliance with applicable law. Shares
of Common Stock so surrendered in accordance with clause (ii) or (iv) shall be valued at the Fair Market Value thereof on the date of
exercise, surrender of such Common Stock to be evidenced by delivery of the certificate(s) representing such shares in such manner, and
endorsed in such form, or accompanied by stock powers endorsed in such form, as the Committee may determine.

 

2.3
Termination of Employment.

 

2.3.1
If a Grantee’s employment with the Company is terminated other than by Disability or death, the terms of any then outstanding Incentive
Stock Option held by the Grantee shall extend for a period ending on the earlier of the date on which such Stock Option would otherwise
expire or three (3) months after such termination of employment, and such Stock Option shall be exercisable to the extent it was exercisable
as of such last date of employment.

 

2.3.2
If a Grantee’s employment with the Company is terminated by reason of Disability, the term of any then outstanding Incentive Stock
Option held by the Grantee shall extend for a period ending on the earlier of the date on which such Stock Option would otherwise expire
or twelve (12) months after such termination of employment, and such Stock Option shall be exercisable to the extent it was exercisable
as of such last date of employment.

 

2.3.3
If a Grantee’s employment with the Company is terminated by reason of death, the representative of his estate or beneficiaries
thereof to whom the Stock Option has been transferred shall have the right during the period ending on the earlier of the date on which
such Stock Option would otherwise expire or twelve (12) months after such date of death, to exercise any then outstanding Incentive Stock
Options in whole or in part. If a Grantee dies without having fully exercised any then outstanding Incentive Stock Options, the representative
of his estate or beneficiaries thereof to whom the Stock Option has been transferred shall have the right to exercise such Stock Options
in whole or in part.

 

3.
NON-STATUTORY STOCK OPTION PROVISIONS

 

3.1
Granting of Stock Options.

 

3.1.1
Officers, Employees, Directors, and Consultants shall be eligible to receive Non-Statutory Stock Options under this Plan.

 

3.1.2
The Committee shall determine and designate from time to time those Officers, Employees, Directors, and Consultants who are to be granted
Non-Statutory Stock Options and the amount subject to each Non-Statutory Stock Option.

 

3.1.3
The Committee may grant at any time new Non-Statutory Stock Options to an Employee, Director, or Consultant who has previously received
Non-Statutory Stock Options or other Stock Options, whether such prior Non-Statutory Stock Options or other Stock Options are still outstanding,
have previously been exercised in whole or in part, or are cancelled in connection with the issuance of new Non-Statutory Stock Options.

 

    	 

    	 

    

 

3.1.4
The Committee shall determine the purchase price of each share of Common Stock subject to a Non-Statutory Stock Option. Such price shall
not be less than 100% of the Fair Market Value of such Common Stock on the date the Non-Statutory Stock Option is granted.

 

3.1.5
The Committee, in its sole discretion, shall determine whether any particular Non-Statutory Stock Option shall become exercisable in
one or more installments, specify the installment dates, and, within the limitations herein provided, determine the total period during
which the Non-Statutory Stock Option is exercisable. Further, the Committee may make such other provisions as may appear generally acceptable
or desirable to the Committee, including the extension of a Non-Statutory Stock Option, provided that such extension does not extend
the option beyond the period specified in Section 3.1.6 below.

 

3.1.6
No Non-Statutory Stock Option shall be exercisable more than ten (10) years from the date such option is granted.

 

3.2
Exercise of Stock Options. The exercise price of a Non-Statutory Stock Option shall be payable on exercise of the Stock Option
(i) in cash or by check, bank draft, or postal or express money order, (ii) if provided in the written Award Agreement and permitted
by applicable law, by the surrender of Common Stock then owned by the Grantee, which Common Stock such Grantee has held for at least
six (6) months, (iii) the proceeds of a loan from an independent broker-dealer whereby the loan is secured by the option or the stock
to be received upon exercise, or (iv) any combination of the foregoing; provided, that each such method and time for payment
and each such borrowing and terms and conditions of repayment shall then be permitted by and be in compliance with applicable law. Shares
of Common Stock so surrendered in accordance with clause (ii) or (iv) shall be valued at the Fair Market Value thereof on the date of
exercise, surrender of such Common Stock to be evidenced by delivery of the certificate(s) representing such shares in such manner, and
endorsed in such form, or accompanied by stock powers endorsed in such form, as the Committee may determine.

 

3.3
Termination of Relationship.

 

3.3.1
If a Grantee’s employment with the Company is terminated, a Director Grantee ceases to be a Director, or a Consultant Grantee ceases
to be a Consultant, other than by reason of Disability or death, the terms of any then outstanding Non-Statutory Stock Option held by
the Grantee shall extend for a period ending on the earlier of the date established by the Committee at the time of grant or three (3)
months after the Grantee’s last date of employment or cessation of being a Director or Consultant, and such Stock Option shall
be exercisable to the extent it was exercisable as of the date of termination of employment or cessation of being a Director or Consultant.

 

3.3.2
If a Grantee’s employment is terminated by reason of Disability, a Director Grantee ceases to be a Director by reason of Disability
or a Consultant Grantee ceases to be a Consultant by reason of Disability, the term of any then outstanding Non-Statutory Stock Option
held by the Grantee shall extend for a period ending on the earlier of the date on which such Stock Option would otherwise expire or
twelve (12) months after the Grantee’s last date of employment or cessation of being a Director or Consultant, and such Stock Option
shall be exercisable to the extent it was exercisable as of such last date of employment or cessation of being a Director or Consultant.

 

3.3.3
If a Grantee’s employment is terminated by reason of death, a Director Grantee ceases to be a Director by reason of death or a
Consultant Grantee ceases to be a Consultant by reason of death, the representative of his estate or beneficiaries thereof to whom the
Stock Option has been transferred shall have the right during the period ending on the earlier of the date on which such Stock Option
would otherwise expire or twelve (12) months following his death to exercise any then outstanding Non-Statutory Stock Options in whole
or in part. If a Grantee dies without having fully exercised any then outstanding Non-Statutory Stock Options, the representative of
his estate or beneficiaries thereof to whom the Stock Option has been transferred shall have the right to exercise such Stock Options
in whole or in part.

 

    	 

    	 

    

 

4.
RESTRICTED STOCK AWARDS

 

4.1
Grant of Restricted Stock.

 

4.1.1
Officers, Employees, Directors and Consultants shall be eligible to receive grants of Restricted Stock under this Plan.

 

4.1.2
The Committee shall determine and designate from time to time those Officers, Employees, Directors and Consultants who are to be granted
Restricted Stock and the number of shares of Common Stock subject to such Stock Award.

 

4.1.3
The Committee, in its sole discretion, shall make such terms and conditions applicable to the grant of Restricted Stock as may appear
generally acceptable or desirable to the Committee.

 

4.2
Termination of Relationship.

 

4.2.1
If a Grantee’s employment with the Company is terminated, a Director Grantee ceases to be a Director, or a Consultant Grantee ceases
to be a Consultant, prior to the lapse of any restrictions applicable to the Restricted Stock, then such Common Stock shall be forfeited
and the Grantee shall return the certificates representing such Common Stock to the Company.

 

4.2.2
If the restrictions applicable to a grant of Restricted Stock shall lapse, then the Grantee shall hold such Common Stock free and clear
of all such restrictions except as otherwise provided in this Plan.

 

5.
RESTRICTED STOCK UNIT AWARDS

 

5.1
Grant of Restricted Stock Units.

 

5.1.1
Officers, Employees, Directors, and Consultants shall be eligible to receive grants of Restricted Stock Units under this Plan.

 

5.1.2
The Committee shall determine and designate from time to time those Officers, Employees, Directors and Consultants who are to be granted
Restricted Stock Units and number of shares of Common Stock subject to such Stock Award.

 

5.1.3
The Committee, in its sole discretion, shall make such terms and conditions applicable to the grant of Restricted Stock Units as may
appear generally acceptable or desirable to the Committee.

 

5.2
Termination of Relationship.

 

5.2.1
If a Grantee’s employment with the Company is terminated, a Director Grantee ceases to be a Director, or a Consultant Grantee ceases
to be a Consultant, prior to the lapse of any restrictions applicable to the Restricted Stock Units, then such Common Stock shall be
forfeited and the Grantee shall return the certificates representing such Common Stock to the Company.

 

5.2.2
If the restrictions applicable to a grant of Restricted Stock Units shall lapse, then the Grantee shall hold such Common Stock free and
clear of all such restrictions except as otherwise provided in this Plan.

 

6.
PERFORMANCE AWARDS

 

6.1
The Committee, in its discretion, may establish targets for Performance Measures for selected Grantees and authorize the granting, vesting,
payment, and/or delivery of Performance Awards in the form of Incentive Stock Options, Non-Statutory Stock Options, Restricted Stock,
and Restricted Stock Units to such Grantees upon achievement of such targets for Performance Measures during a Performance Period. The
Committee, in its discretion, shall determine the Grantees eligible for Performance Awards, the targets for Performance Measures to be
achieved during each Performance Period, and the type, amount, and terms and conditions of any Performance Awards. Performance Awards
may be granted either alone or in addition to other Awards made under this Plan.

 

    	 

    	 

    

 

6.2
After the Company is subject to Code Section 162(m), in connection with any Performance Awards granted to a Covered Employee that are
intended to meet the performance-based compensation exception under Code Section 162(m), the Committee shall (i) establish in the applicable
Award Agreement the specific targets relative to the Performance Measures that must be attained before the respective Performance Award
is granted, vests, or is otherwise paid or delivered, (ii) provide in the applicable Award Agreement the method for computing the portion
of the Performance Award that shall be granted, vested, paid, and/or delivered if the target or targets are attained in full or part,
and (iii) at the end of the relevant Performance Period, and prior to any such grant, vesting, payment, or delivery, certify the extent
to which the applicable target or targets were achieved and whether any other material terms were in fact satisfied. The specific targets
and the method for computing the portion of such Performance Award that shall be granted, vested, paid, or delivered to any Covered Employee
shall be established by the Committee prior to the earlier to occur of (A) ninety (90) days after the commencement of the Performance
Period to which the Performance Measure applies and (B) the elapse of twenty-five percent (25%) of the Performance Period and in any
event while the outcome is substantially uncertain. In interpreting Plan provisions applicable to Performance Measures and Performance
Awards that are intended to meet the performance-based compensation exception under Code Section 162(m), it is the intent of this Plan
to conform with the standards of Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(2), and the Committee in interpreting
this Plan shall be guided by such provisions.

 

7.
GENERAL PROVISIONS

 

7.1
Adjustment Provisions.

 

7.1.1
Change of Control.

 

(a)
Effect of “Change in Control.” If and only to the extent provided in the Award Agreement, or to the extent otherwise
determined by the Committee, upon the occurrence of a “Change in Control,” as defined in Section 7.1.1(b):

 

(i)
The Committee shall take such action as it deems appropriate and equitable to effectuate the purposes of this Plan and to protect the
grantees of Awards, which action may include, without limitation, any one or more of the following, provided such action is in compliance
with Code Section 409A if applicable: (i) acceleration or change of the exercise and/or expiration dates of any Award to require that
exercise be made, if at all, prior to the Change in Control; and (ii) cancellation of any Award upon payment to the holder in cash of
the Fair Market Value of the Stock subject to such Award as of the date of (and, to the extent applicable, as established for purposes
of) the Change in Control, less the aggregate exercise price, if any, of the Award.

 

(ii)
Notwithstanding the foregoing or any provision in any Award Agreement to the contrary, if in the event of a Change in Control, the successor
company assumes or substitutes for a Stock Option or Stock Award, then each such outstanding Stock Option or Stock Award shall not be
accelerated as described in Sections 7.1.1(a)(i). For the purposes of this Section 7.1.1(a)(ii), such Stock Option or Stock Award shall
be considered assumed or substituted for if following the Change in Control the Award confers the right to purchase or receive, for each
share of Common Stock subject to the Stock Option or Stock Award immediately prior to the Change in Control, the consideration (whether
stock, cash, or other securities or property) received in the transaction constituting a Change in Control by holders of Common Stock
shares for each Common Stock share held on the effective date of such transaction (and if holders were offered a choice of consideration,
the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration
received in the transaction constituting a Change in Control is not solely common stock of the successor company or its parent or subsidiary,
the Committee may, with the consent of the successor company or its parent or subsidiary, provide that the consideration to be received
upon the exercise or vesting of a Stock Option or Stock Award, for each Common Stock share subject thereto, will be solely common stock
of the successor company or its parent or subsidiary substantially equal in fair market value to the per share consideration received
by holders of Common Stock shares in the transaction constituting a Change in Control. The determination of such substantial equality
of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding.

 

    	 

    	 

    

 

(b)
Definition of “Change in Control”. Unless otherwise specified in an Award Agreement, a “Change in Control”
shall mean the occurrence of any of the following:

 

(i)
The acquisition by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than
fifty percent (50%) of either (A) the value of then outstanding equity securities of the Company (the “Outstanding Company Stock”)
or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election
of directors (the “Outstanding Company Voting Securities”) (the foregoing Beneficial Ownership hereinafter being referred
to as a “Controlling Interest”); provided, however, that for purposes of this Section 7.1.1, the following acquisitions shall
not constitute or result in a Change in Control: (v) any acquisition directly from the Company; (w) any acquisition by the Company; (x)
any acquisition by any Person that as of the Effective Date owns Beneficial Ownership of a Controlling Interest; (y) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Related Entity; or (z) any acquisition
by any entity pursuant to a transaction that complies with clauses (A), (B), and (C) of subsection 7.1.1(b)(iii) below; or

 

(ii)
During any period of two (2) consecutive years (not including any period prior to the Effective Date) individuals who constitute the
Board on the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election
by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal
of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 

(iii)
Consummation of a reorganization, merger, statutory share exchange, or consolidation or similar transaction involving the Company or
any of its Related Entities, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition
of assets or equity of another entity by the Company or any of its Related Entities (each a “Business Combination”), in each
case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the Beneficial
Owners, respectively, of the Outstanding Company Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than fifty percent (50%) of the value of the then outstanding equity securities and the
combined voting power of the then outstanding voting securities entitled to vote generally in the election of members of the board of
directors (or comparable governing body of an entity that does not have such a board), as the case may be, of the entity resulting from
such Business Combination (including, without limitation, an entity that as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the Outstanding Company Stock and Outstanding Company Voting Securities,
as the case may be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such entity resulting from
such Business Combination or any Person that as of the Effective Date owns Beneficial Ownership of a Controlling Interest) beneficially
owns, directly or indirectly, fifty percent (50%) or more of the value of the then outstanding equity securities of the entity resulting
from such Business Combination or the combined voting power of the then outstanding voting securities of such entity except to the extent
that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the Board or other governing
body of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv)
Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

7.1.2
Adjustments to Awards. In the event that any extraordinary dividend or other distribution (whether in the form of cash, Common
Stock, or other property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination,
repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or event affects the Common Stock and/or
such other securities of the Company or any other issuer such that a substitution, exchange, or adjustment is determined by the Committee
to be appropriate, then the Committee shall, in such manner as it may deem equitable, substitute, exchange, or adjust any or all of (A)
the number and kind of Shares that may be delivered in connection with Awards granted thereafter, (B) the number and kind of Shares by
which annual per-person Award limitations are measured under this Plan’s provisions, (C) the number and kind of Shares subject
to or deliverable in respect of outstanding Awards, (D) the exercise price, grant price or purchase price relating to any Award and/or
make provision for payment of cash or other property in respect of any outstanding Award, and (E) any other aspect of any Award that
the Committee determines to be appropriate.

 

    	 

    	 

    

 

7.1.3
Adjustments in Case of Certain Transactions. In the event of any merger, consolidation or other reorganization in which the Company
does not survive, or in the event of any Change in Control, any outstanding Awards may be dealt with in accordance with any of the following
approaches, as determined by the agreement effectuating the transaction or, if and to the extent not so determined, as determined by
the Committee: (a) the continuation of the outstanding Awards by the Company, if the Company is a surviving entity, (b) the assumption
or substitution for, as those terms are defined in Section 7.1.1(b)(iv), the outstanding Awards by the surviving entity or its parent
or subsidiary, (c) full exercisability or vesting and accelerated expiration of the outstanding Awards, or (d) settlement of the value
of the outstanding Awards in cash or cash equivalents or other property followed by cancellation of such Awards (which value, in the
case of Stock Options, shall be measured by the amount, if any, by which the Fair Market Value of a share of Common Stock exceeds the
exercise or grant price of the Stock Option as of the effective date of the transaction). The Committee shall give written notice of
any proposed transaction referred to in this Section 7.1.3 a reasonable period of time prior to the closing date for such transaction
(which notice may be given either before or after the approval of such transaction), in order that Grantees may have a reasonable period
of time prior to the closing date of such transaction within which to exercise any Awards that are then exercisable (including any Awards
that may become exercisable upon the closing date of such transaction). A Grantee may condition his exercise of any Awards upon the consummation
of the transaction.

 

7.1.4
Other Adjustments. The Committee (and the Board if and only to the extent such authority is not required to be exercised by the
Committee to comply with Section 162(m) of the Code) is authorized to make adjustments in the terms and conditions of, and the criteria
included in, Awards (including Performance Awards, or performance goals relating thereto) in recognition of unusual or nonrecurring events
(including, without limitation, acquisitions and dispositions of businesses and assets) affecting the Company, any Related Entity or
any business unit, or the financial statements of the Company or any Related Entity, or in response to changes in applicable laws, regulations,
accounting principles, tax rates and regulations or business conditions or in view of the Committee’s assessment of the business
strategy of the Company, any Related Entity or business unit thereof, performance of comparable organizations, economic and business
conditions, personal performance of a Grantee, and any other circumstances deemed relevant; provided that no such adjustment shall be
authorized or made if and to the extent that such authority or the making of such adjustment would cause Stock Options or Stock Awards
granted pursuant to Section 6 to Grantees designated by the Committee as Covered Employees and intended to qualify as “performance-based
compensation” under Code Section 162(m) and the regulations thereunder to otherwise fail to qualify as “performance-based
compensation” under Code Section 162(m) and regulations thereunder.

 

7.1.5
Fractional Shares. No adjustment or substitution provided for in this Section 7.1 shall require the Company to sell a fractional
share, and the total substitution or adjustment with respect to each outstanding Stock Option shall be limited accordingly.

 

7.1.6
Adjustment Certificates. Upon any adjustment made pursuant to this Section 7.1 the Company will, upon request, deliver to the
Grantee a certificate setting forth the exercise price thereafter in effect and the number and kind of shares or other securities thereafter
purchasable on the exercise of such Stock Option.

 

7.2
General.

 

7.2.1
Each Stock Option and Stock Award shall be evidenced by an Award Agreement containing such terms and conditions, not inconsistent with
this Plan, as the Committee shall approve.

 

7.2.2
The granting of a Stock Option or Stock Award in any year shall not give the Grantee any right to similar grants in future years or any
right to be retained in the employ of the Company, and all Employees shall remain subject to discharge to the same extent as if this
Plan were not in effect.

 

7.2.3
No Officer, Employee, Director, or Consultant and no beneficiary or other person claiming under or through him, shall have any right,
title or interest by reason of any Stock Option or any Stock Award to any particular assets of the Company, or any shares of Common Stock
allocated or reserved for the purposes of this Plan or subject to any Stock Option or any Stock Award except as set forth herein. The
Company shall not be required to establish any fund or make any other segregation of assets to assure the payment of any Stock Option
or Stock Award.

 

    	 

    	 

    

 

7.2.4
Limits on Transferability.

 

(a)
Except to the extent otherwise provided in the respective Award Agreement, no Award, other right, or interest granted under this Plan
shall be pledged, hypothecated, or otherwise encumbered or subject to any lien, obligation, or liability of such Grantee to any party,
or assigned or transferred by such Grantee otherwise than by will or the laws of descent and distribution or to a Beneficiary upon the
death of a Grantee. Unless otherwise determined by the Committee in accordance with the provisions of the immediately preceding sentence,
an Award may be exercised during the lifetime of the Grantee only by the Grantee or, during the period the Grantee is under a Disability,
by the Grantee’s guardian or legal representative.

 

(b)
Notwithstanding Section 7.2.4(a), an Award other than an Incentive Stock Option may, in the Committee’s sole discretion, be transferable
by gift or domestic relations order to (i) the Grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, daughter-in-law, son-in-law, brother-in-law, or sister-in-law, including
adoptive relationships (such persons, “Family Members”), (ii) a corporation, partnership, limited liability company, or other
business entity whose only stockholders, partners, or members, as applicable are the Grantee and/or Family Members, or (iii) a trust
in which the Grantee and/or Family Members have all of the beneficial interests, and subsequent to any such transfer any Award may be
exercised by any such transferee, provided, however, no Award may be transferred for value (as defined in the General Instructions to
Form S-8 Registration Statement).

 

(c)
Notwithstanding Sections 7.2.4(a) and 7.2.4(b), an Award may be transferred pursuant to a domestic relations order that would satisfy
Section 414(p)(1)(A) of the Code if such Section applied to an Award under this Plan, but only if the tax consequences flowing from the
assignment or transfer are specified in said order, the order is accompanied by signed agreement by both or all parties to the domestic
relations order, and, if requested by the Committee, an opinion is provided by qualified counsel for the Grantee that the order is enforceable
by or against this Plan under applicable law, and said opinion further specifies the tax consequences flowing from the order and the
appropriate tax reporting procedures for this Plan.

 

7.2.5
Notwithstanding any other provision of this Plan or agreements made pursuant thereto, the Company’s obligation to issue or deliver
any certificate or certificates for shares of Common Stock under a Stock Option or Stock Award, and the transferability of Common Stock
acquired by exercise of a Stock Option or grant of a Stock Award, shall be subject to all of the following conditions:

 

(a)
Any registration or other qualification of such shares under any state or federal law or regulation, or the maintaining in effect of
any such registration or other qualification that the Board shall, in its absolute discretion upon the advice of counsel, deem necessary
or advisable; and

 

(b)
The obtaining of any other consent, approval, or permit from any state or federal governmental agency that the Board shall, in its absolute
discretion upon the advice of counsel, determine to be necessary or advisable.

 

The
Company may, to the extent deemed necessary or advisable by the Committee, postpone the issuance or delivery of Common Stock or payment
of other benefits under any Award until completion of such registration or qualification of such Common Stock (including, but not limited
to, the conditions described in Sections 7.2.5(a) and 7.2.5(b) above) or other required action under any federal or state law, rule or
regulation, listing, or other required action with respect to any stock exchange or automated quotation system upon which the Shares
or other Company securities are listed or quoted, or compliance with any other obligation of the Company, as the Committee, may consider
appropriate, and may require any Grantee to make such representations, furnish such information and comply with or be subject to such
other conditions as it may consider appropriate in connection with the issuance or delivery of Shares or payment of other benefits in
compliance with applicable laws, rules, and regulations, listing requirements, or other obligations.

 

7.2.6
All payments to Grantees or to their legal representatives shall be subject to any applicable tax, community property, or other statutes
or regulations of the United States or of any state or country having jurisdiction over such payments. The Grantee may be required to
pay to the Company the amount of any withholding taxes that the Company is required to withhold with respect to a Stock Option or its
exercise or a Stock Award. In the event that such payment is not made when due, the Company shall have the right to deduct, to the extent
permitted by law, from any payment of any kind otherwise due to such person all or part of the amount required to be withheld.

 

    	 

    	 

    

 

7.2.7
In the case of a grant of a Stock Option or Stock Award to any Employee of a Subsidiary, the Company may, if the Committee so directs,
issue or transfer the shares, if any, covered by the Stock Option or Stock Award to such Subsidiary, for such lawful consideration as
the Committee may specify, upon the condition or understanding that such Subsidiary will transfer the shares to the Employee in accordance
with the terms of the Stock Option or Stock Award specified by the Committee pursuant to the provisions of this Plan.

 

7.2.8
A Grantee entitled to Common Stock as a result of the exercise of a Stock Option or grant of a Stock Award shall not be deemed for any
purpose to be, or have rights as, a stockholder of the Company by virtue of such exercise, except to the extent that a stock certificate
is issued therefor and then only from the date such certificate is issued. No adjustments shall be made for dividends or distributions
or other rights for which the record date is prior to the date such stock certificate is issued. The Company shall issue any stock certificates
required to be issued in connection with the exercise of a Stock Option with reasonable promptness after such exercise.

 

7.2.9
The grant or exercise of Stock Options granted under this Plan or the grant of a Stock Award under this Plan shall be subject to, and
shall in all respects comply with, applicable law relating to such grant or exercise, or to the number of shares of Common Stock that
may be beneficially owned or held by any Grantee.

 

7.2.10
The Company intends that this Plan shall comply with the requirements of Rule 16b-3 (the “Rule”) under the Securities Exchange
Act of 1934, as amended, during the term of this Plan. Should any additional provisions be necessary for this Plan to comply with the
requirements of the Rule, the Board may amend this Plan to add to or modify the provisions of this Plan accordingly.

 

7.2.11
Code Section 409A.

 

(a)
If any Award constitutes a “nonqualified deferred compensation plan” under Section 409A of the Code (a “Section 409A
Plan”), then the Award shall be subject to the following additional requirements, if and to the extent required to comply with
Section 409A of the Code:

 

(i)
Payments under the Section 409A Plan may not be made earlier than (u) the Grantee’s separation from service, (v) the date the Grantee
becomes disabled, (w) the Grantee’s death, (x) a specified time (or pursuant to a fixed schedule) specified in the Award Agreement
at the date of the deferral of such compensation, (y) a change in the ownership or effective control of the corporation, or in the ownership
of a substantial portion of the assets of the corporation, or (z) the occurrence of an unforeseeable emergency;

 

(ii)
The time or schedule for any payment of the deferred compensation may not be accelerated, except to the extent provided in applicable
Treasury Regulations or other applicable guidance issued by the Internal Revenue Service;

 

(iii)
Any elections with respect to the deferral of such compensation or the time and form of distribution of such deferred compensation shall
comply with the requirements of Section 409A(a)(4) of the Code; and

 

(iv)
In the case of any Grantee who is specified employee, a distribution on account of a separation from service may not be made before the
date that is six (6) months after the date of the Grantee’s separation from service (or, if earlier, the date of the Grantee’s
death).

 

    	 

    	 

    

 

For
purposes of the foregoing, the terms “separation from service”, “disabled,” and “specified employee”,
all shall be defined in the same manner as those terms are defined for purposes of Section 409A of the Code, and the limitations set
forth herein shall be applied in such manner (and only to the extent) as shall be necessary to comply with any requirements of Section
409A of the Code that are applicable to the Award.

 

(b)
The Award Agreement for any Award that the Committee reasonably determines to constitute a Section 409A Plan, and the provisions of this
Plan applicable to that Award, shall be construed in a manner consistent with the applicable requirements of Section 409A, and the Committee,
in its sole discretion and without the consent of any Grantee, may amend any Award Agreement (and the provisions of this Plan applicable
thereto) if and to the extent that the Committee determines that such amendment is necessary or appropriate to comply with the requirements
of Section 409A of the Code. No Section 409A Plan shall be adjusted, modified, or substituted for, pursuant to any provision of this
Plan, without the consent of the Grantee if any such adjustment, modification, or substitution would cause the Section 409A Plan to violate
the requirements of Section 409A of the Code.

 

(c)
The Company intends that this Plan shall comply with the requirements of Section 409A of the Code, to the extent applicable. Should any
changes to this Plan be necessary for this Plan to comply with the requirements of Section 409A, the Board may amend this Plan to add
to or modify the provisions of this Plan accordingly.

 

7.2.12
The validity, construction, and effect of this Plan, any rules and regulations under this Plan, and any Award Agreement shall be determined
in accordance with the laws of the State of Nevada without giving effect to principles of conflict of laws, and applicable federal law.
Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction
and venue of the federal or state courts whose jurisdiction covers California to resolve any and all issues that may arise out of or
relate to this Plan or any related Award Agreement.

 

7.2.13
The Board shall have the authority to adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with
provisions of the laws of foreign countries in which the Company or its Related Entities may operate to assure the viability of the benefits
from Awards granted to Grantees performing services in such countries and to meet the objectives of this Plan.

 

7.2.14
The Company will seek stockholder approval in the manner and to the degree required under applicable laws. If the Company fails to obtain
any required stockholder approval of this Plan within twelve (12) months after the date this Plan is adopted by the Board, pursuant to
Section 422 of the Code, any Option granted as an Incentive Stock Option at any time under this Plan will not qualify as an Incentive
Stock Option within the meaning of the Code and will be deemed to be a Non-Statutory Stock Option.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]