Document:

Exhibit 10.4

 

THE
HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN OR FROM A JURISDICTION OF CANADA UNLESS THE CONDITIONS IN SECTION 13 OF
MULTILATERAL INSTRUMENT 51-105 “ISSUERS QUOTED IN THE U.S. OVER-THE-COUNTER MARKET” ARE MET.

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
SECURITIES ACT”), OR STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF
THE CORPORATION THAT THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE
THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S (“REGULATION S”) UNDER THE U.S. SECURITIES ACT AND IN
COMPLIANCE WITH APPLICABLE CANADIAN LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER
THE U.S. SECURITIES ACT OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS,
OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST
FIRST BE PROVIDED TO THE TRANSFER AGENT OF THE CORPORATION.

 

THESE
SECURITIES MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON CANADIAN STOCK EXCHANGES. IF THE CORPORATION
IS A “FOREIGN ISSUER” WITHIN THE MEANING OF REGULATION S AT THE TIME OF TRANSFER, A NEW CERTIFICATE, BEARING NO LEGEND,
MAY BE OBTAINED FROM THE TRANSFER AGENT OF THE CORPORATION UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN
A FORM SATISFACTORY TO THE CORPORATION AND THE TRANSFER AGENT OF THE CORPORATION AND, IF SO REQUIRED BY THE TRANSFER AGENT OF THE
CORPORATION, AN OPINION OF COUNSEL, TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE
WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT.

 

THIS WARRANT AND THE SECURITIES TO
BE ISSUED UPON THE EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AS AMENDED (THE “1933
SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND THE WARRANTS MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR FOR THE
ACCOUNT OR BENEFIT OF A PERSON IN THE UNITED STATES OR A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE 1933 SECURITIES ACT)
WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL AND STATE SECURITIES LAWS OR COMPLIANCE WITH
AN APPLICABLE EXEMPTION THEREFROM AND THE CORPORATION SHALL HAVE RECEIVED AN OPINION OF COUNSEL TO SUCH EFFECT SATISFACTORY TO
IT.

 

2012-2013 WARRANT CERTIFICATE

 

CAN-CAL RESOURCES LTD.

(Incorporated under the laws of Nevada)

 

	2013 WARRANT	 
	CERTIFICATE NO. 11-12	20,000 WARRANTS entitling the holder to acquire, subject to adjustment, one (1) common share for each Warrant represented hereby.

 

This is to certify that for value received
FutureWorth Capital Corp. (the “Holder”) is the registered holder of 20,000 2013 common share purchase
warrants (each a “Warrant”), entitling the Holder to subscribe for and purchase one (1) fully paid and non-assessable
common share of Can-Cal Resources Ltd. (the “Corporation”) for every one (1) Warrant held by the Holder, up
to and including a total of 20,000 common shares without nominal or par value of the Corporation, upon the terms and conditions
as hereinafter set forth.

    	1

    	 

    

 

Exercise Date

 

The Warrants to purchase common shares
of the Corporation represented by this certificate shall be exercised on or before 4:30 p.m., Calgary, Alberta time, on or before
November 30, 2014 (the “Expiry Date”), after which all rights evidenced hereby shall be void and of no
further value.

 

Exercise Price

 

The exercise price shall be US$0.10
per common share payable in lawful money of Canada during the period commencing on the date of issue and ending on the Expiry Date
(the “Exercise Price”).

 

Exercise of Warrants

 

The Warrants may be exercised, in whole
or in part, at any time on or prior to the Expiry Date by the Holder hereof completing the Warrant Exercise Form attached hereto
and made a part hereof and delivering same to the President of the Corporation, in care of the head office of the Corporation,
8205 Aqua Spray Ave., Las Vegas, Nevada, 89128 (the “Head Office”), together with this certificate and
the appropriate sum payable to the order of the Corporation, at par in the amount of the aggregate Exercise Price for the common
shares of the Corporation subscribed for, which may not exceed the number shown on the face hereof. The Corporation shall notify
the Holder of any change of address of the Head Office.

 

Payment

 

The common shares subscribed for must be
paid in full at the time of subscription, by certified cheque, money order or bank draft in Canadian funds to or to the order of
the Corporation.

 

Share Certificates

 

Upon compliance with the terms and conditions
as aforesaid, the Corporation will cause to be issued to the person or persons in whose name or names the common shares so subscribed
for are to be issued the number of fully paid and non-assessable common shares of the Corporation subscribed for and such person
or persons shall be deemed upon presentation and payment as aforesaid to be the holder or holders of record of such common shares
of the Corporation. Within three (3) business days of compliance of the conditions aforesaid, the Corporation will cause to be
mailed or delivered to the holder at the address or addresses specified in the Warrant Exercise Form attached hereto, a certificate
or certificates evidencing the number of common shares of the Corporation subscribed for.

 

Exercise in Whole or in Part

 

The Warrants may be exercised in whole
or in part and, if exercised in part, the Corporation shall issue within three (3) business days of exercise, without charge therefore,
another certificate evidencing the remaining rights to purchase common shares of the Corporation, provided that any such right
shall terminate on the Expiry Date.

 

No Rights of Shareholder Until Exercise

 

This certificate and the Warrants represented
hereby do not confer any rights of a shareholder on the Holder (including any right to receive dividends or other distribution
to shareholders or to vote at a general meeting of the shareholders of the Corporation), other than in respect of common shares
of the Corporation which the Holder shall have exercised his right to purchase hereunder and which the Holder shall have actually
taken up and paid for.

    	2

    	 

    

 

Non-Transferability of Warrants

The Warrants represented by this certificate
and all rights granted hereunder are non-transferable.

No Fractional Common Shares

 

No fractional common shares will be issued
upon exercise of the Warrants, nor shall any compensation be made for such fractional common shares, if any. To the extent that
the Holder would otherwise be entitled to purchase a fraction of a common share, such right may be exercised in combination with
other rights which, in the aggregate, entitle the Holder hereof to purchase a whole number of common shares.

 

Dilution

 

The Exercise Price in effect and the number
and type of securities purchasable under the Warrants at any date shall be subject to adjustment from time to time in the event
and in the manner as follows:

 

		a)	If at any time during the period commencing on the date of issue of this Warrant certificate and
ending at the Expiry Date (the “Adjustment Period”), the Corporation:

 

		i.	fixes a record date for the issues of, or issue, common shares of the Corporation to the holders
of all or substantially all of the outstanding common shares of the Corporation by way of a stock dividend;

 

		ii.	fixes a record date for the distribution to, or makes a distribution to, the holders of all or
substantially all of the common shares of the Corporation payable in common shares of the Corporation or securities exchangeable
for or convertible into common shares of the Corporation;

 

		iii.	subdivides the outstanding common shares of the Corporation into a greater number of common shares
of the Corporation; or

 

		iv.	consolidates the outstanding common shares of the Corporation into a lesser number of common shares
of the Corporation;

			

 

(any of
such events in subclauses i, ii, iii and iv above being herein called a “Common Share Reorganization”), the
Exercise Price will be adjusted on the earlier of the record date on which holders of common shares of the Corporation are determined
for the purposes of the Common Share Reorganization and the effective date of the Common Share Reorganization to the amount determined
by multiplying the Exercise Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction:

 

		v.	the numerator of which will be the number of common shares of the Corporation outstanding on such
record date or effective date before giving effect to such Common Share Reorganization; and
	 	 	 

		vi.	the denominator of which will be the number of common shares of the Corporation which will be outstanding
immediately after giving effect to such Common Share Reorganization (including in the case of a distribution of securities exchangeable
for or convertible into common shares of the Corporation, the number of common shares of the Corporation that would be outstanding
had such securities all been exchanged for or converted into common shares of the Corporation on such date).

    	3

    	 

    

			To the extent that any adjustment in the Exercise Price occurs pursuant to this subparagraph (a)
as a result of the fixing by the Corporation of a record date for the distribution of securities exchangeable for or convertible
into common shares of the Corporation, the Exercise Price will be readjusted immediately after the expiry of any relevant exchange
or conversion right to the Exercise Price which would then be in effect based upon the number of common shares of the Corporation
actually issued and remaining issuable after such expiry and will be further readjusted in such manner upon the expiry of any further
such right.

 

		b)	If at any time during the Adjustment Period the Corporation fixes a record date for the issue or
distribution of rights, options or warrants to the holders of all or substantially all of the outstanding common shares of the
Corporation pursuant to which such holders are entitled, during a period expiring not more than 45 days after the record date for
such issue (such period being the “Rights Period”), to subscribe for or purchase common shares of the Corporation
or securities exchangeable for or convertible into common shares of the Corporation at a price per share (or in the case of securities
exchangeable for or convertible into common shares of the Corporation at an exchange or conversion price per share at the date
of issue of such securities) of less than 95% of the price per share equal to the weighted average price at which the common shares
of the Corporation have traded on the TSX Venture Exchange or, if the common shares of the Corporation are not then listed on the
TSX Venture Exchange, on such other Canadian stock exchange as may be selected by the directors of the Corporation for such purpose
or, if the common shares of the Corporation are not then listed on any Canadian stock exchange, in the over-the-counter market,
during the period of any twenty consecutive trading days ending not more than five business days before such date; provided that
the weighted average price will be determined by dividing the aggregate sale price of all common shares of the Corporation sold
on the said exchange or market, as the case may be, during the said twenty consecutive trading days by the total number of common
shares of the Corporation so sold; and provided further that if the common shares of the Corporation are not then listed on any
Canadian stock exchange or traded in the over-the counter market, then the Current Market Price will be determined by such firm
of independent chartered accountants as may be selected by the directors of the Corporation, acting reasonably (“Current
Market Price”), of the common shares of the Corporation on such record date (any of such events being herein called a
“Rights Offering”), then the Exercise Price will be adjusted effective immediately after the record date for
the Rights Offering to the amount determined by multiplying the Exercise Price in effect on such record date by a fraction:

 

		i.	the numerator of which will be the aggregate of

 

		A.	the number of common shares of the Corporation outstanding on the record date for the Rights Offering;
and

 

		B.	the quotient determined by dividing
	 	 	 

		I.	either (a) the product of the number of common shares of the Corporation offered during the Rights
Period pursuant to the Rights Offering and the price at which such common shares of the Corporation are offered, or, (b) the product
of the exchange or conversion price of the securities so offered and the number of common shares of the Corporation for or into
which the securities offered pursuant to the Rights Offering may be exchanged or converted, as the case may be, by

    	4

    	 

    

		II.	the Current Market Price of the common shares of the Corporation as of the record date for the
Rights Offering; and

 

		ii.	the denominator of which will be the aggregate of the number of common shares of the Corporation
outstanding on such record date and the number of common shares of the Corporation offered pursuant to the Rights Offering (including
in the case of the issue or distribution of securities exchangeable for or convertible into common shares of the Corporation the
number of common shares of the Corporation for or into which such securities may be exchanged or converted).

			

 

If by
the terms of the rights, options, or warrants referred to in this subparagraph (b), there is more than one purchase, conversion
or exchange price per common shares of the Corporation, the aggregate price of the total number of additional common shares of
the Corporation offered for subscription or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable
securities so offered, will be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange
price per common shares of the Corporation, as the case may be. Any common shares of the Corporation owned by or held for the account
of the Corporation will be deemed not to be outstanding for the purpose of any such calculation. To the extent that any adjustment
in the Exercise Price occurs pursuant to this subparagraph (b) as a result of the fixing by the Corporation of a record date for
the issue or distribution of rights, options or warrants referred to in this subparagraph (b), the Exercise Price will be readjusted
immediately after the expiry of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in
effect based upon the number of common shares of the Corporation actually issued and remaining issuable after such expiry and will
be further readjusted in such manner upon the expiry of any further such right.

 

		c)	If at any time during the Adjustment Period the Corporation fixes a record date for the issue or
distribution to the holders of all or substantially all of the common shares of the Corporation of:

 

		i.	shares of the Corporation of any class other than common shares of the Corporation;

 

		ii.	rights, options or warrants to acquire common shares of the Corporation or securities exchangeable
for or convertible into common shares of the Corporation (other than rights, options or warrants pursuant to which holders of common
shares of the Corporation are entitled, during a period expiring not more than 45 days after the record date for such issue, to
subscribe for or purchase common shares of the Corporation at a price per share (or in the case of securities exchangeable for
or convertible into common shares of the Corporation at an exchange or conversion price per share at the date of issue of such
securities) of at least 95% of the Current Market Price of the common shares of the Corporation on such record date);

 

		iii.	evidences of indebtedness of the Corporation; or

 

		iv.	any property or assets of the Corporation;
	 	 	 

			and if such issue or distribution does not constitute a Common Share Reorganization or a Rights
Offering (any of such non-excluded events being herein called a “Special Distribution”), the Exercise Price
will be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying
the Exercise Price in effect on the record date for the Special Distribution by a fraction:

    	5

    	 

    

		A.	the numerator of which will be the difference between

 

		I.	the product of the number of common shares of the Corporation outstanding on such record date and
the Current Market Price of the common shares of the Corporation on such record date, and

 

		II.	the fair value, as determined by the directors of the Corporation, to the holders of the common
shares of the Corporation of the shares, rights, options, warrants, evidences of indebtedness or property or assets to be issued
or distributed in the Special Distribution, and

 

		B.	the denominator of which will be the product obtained by multiplying the number of Shares outstanding
on such record date by the Current Market Price of the common shares of the Corporation on such record date.

			

 

Any common
shares of the Corporation owned by or held for the account of the Corporation will be deemed not to be outstanding for the purpose
of such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this subparagraph (c) as a result
of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants to acquire common
shares of the Corporation or securities exchangeable for or convertible into common shares of the Corporation referred to in this
subparagraph (c), the Exercise Price will be readjusted immediately after the expiry of any relevant exercise, exchange or conversion
right to the amount which would then be in effect if the fair market value had been determined on the basis of the number of common
shares of the Corporation issued and remaining issuable immediately after such expiry, and will be further readjusted in such manner
upon the expiry of any further such right.

 

		d)	If at any time during the Adjustment Period there occurs:

 

		i.	a reclassification or redesignation of the common shares of the Corporation, any change of the
common shares of the Corporation into other shares or securities or any other capital reorganization involving the common shares
of the Corporation other than a Common Share Reorganization;

 

		ii.	a consolidation, amalgamation, arrangement or merger of the Corporation with or into any other
body corporate which results in a reclassification or redesignation of the common shares of the Corporation or a change or exchange
of the common shares of the Corporation into other shares or securities; or

 

		iii.	the transfer of the undertaking or assets of the Corporation as an entirety or substantially as
an entirety to another corporation or entity;

 

		iv.	(any of such events being herein called a “Capital Reorganization”),
after the effective date of the Capital Reorganization:

 

		v.	the Holder will be entitled to receive, and shall accept, upon exercise of the Warrants, in lieu
of the number of common shares of the Corporation to which the Holder was theretofore entitled upon the exercise of the Warrants,
the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Holder
would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had
been the registered holder of the number of common shares of the Corporation to which the Holder was theretofore entitled to purchase
or receive upon the exercise of the Warrants; and

    	6

    	 

    

		vi.	the Exercise Price shall, on the effective date of the Capital Reorganization, be adjusted by multiplying
the Exercise Price in effect immediately prior to such Capital Reorganization by the number of common shares of the Corporation
purchasable pursuant to this Warrant certificate immediately prior to the Capital Reorganization, and dividing the product thereof
by the number of successor securities determined in subparagraph (d)(iv) above.

 

			If necessary, as a result of any Capital Reorganization, appropriate adjustments will be made in
the application of the provisions of this Warrant certificate with respect to the rights and interest thereafter of the Holder
to the end that the provisions of this Warrant certificate will thereafter correspondingly be made applicable as nearly as may
reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of the
Warrants.

 

		e)	If at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price
occurs pursuant to the provisions of subparagraphs (a), (b) or (c) above, then the number of common shares of the Corporation purchasable
upon the subsequent exercise of the Warrants will be simultaneously adjusted or readjusted, as the case may be, by multiplying
the number of common shares of the Corporation purchasable upon the exercise of the Warrants immediately prior to such adjustment
or readjustment by a fraction which will be the reciprocal of the fraction used in the adjustment or readjustment of the Exercise
Price.

 

Rules of Adjustment

 

The following rules and procedures will
be applicable to adjustments made pursuant to the Dilution section above of this Warrant certificate.

 

		a)	Subject to the following provisions of this section, any adjustment made pursuant to the Adjustment
section above will be made successively whenever an event referred to therein will occur.

 

		b)	No adjustment in the Exercise Price will be required unless the adjustment would result in a change
of at least one per cent in the Exercise Price then in effect and no adjustment will be made in the number of common shares of
the Corporation purchasable or issuable on the exercise of the Warrants unless it would result in a change of at least one one-hundredth
of a common shares of the Corporation; provided, however, that any adjustments which except for the provisions of this clause would
otherwise have been required to be made will be carried forward and taken into account in any subsequent adjustment.

 

		c)	If at any time during the Adjustment Period the Corporation will take any action affecting the
common shares of the Corporation, other than an action or an event described in the Dilution section above, which in the opinion
of the directors would have a material adverse effect upon the rights of the Holder under this Warrant certificate, the Exercise
Price and/or the number of common shares of the Corporation purchasable under this Warrant certificate will be adjusted in such
manner and at such time as the directors may determine to be equitable in the circumstances. Failure of the taking of action by
the directors so as to provide for an adjustment prior to the effective date of any action by the Corporation affecting the common
shares of the Corporation will be deemed to be conclusive evidence that the directors have determined that it is equitable to make
no adjustment in the circumstances.

    	7

    	 

    

		d)	No adjustment in the Exercise Price or in the number or kind of securities purchasable on the exercise
of the Warrants will be made in respect of any event described in the Dilution section hereof if the Holder is entitled to participate
in such event on the same terms mutatis mutandis as if the Holder had exercised the Warrants prior to or on the record date or
effective date, as the case may be, of such event.

 

		e)	If the Corporation sets a record date to determine holders of common shares of the Corporation
for the purpose of entitling such holders to receive any dividend or distribution or any subscription or purchase rights and will
thereafter and before the distribution to such holders of any such dividend, distribution or subscription or purchase rights legally
abandon its plan to pay or deliver such dividend, distribution or subscription or purchase rights, no adjustment in the Exercise
Price or the number of common shares of the Corporation purchasable upon the exercise of the Warrants will be required by reason
of the setting of such record date.

 

		f)	In any case in which this Warrant certificate requires that an adjustment become effective immediately
after a record date for an event referred to in the Dilution section above, the Corporation may defer, until the occurrence of
such event:

 

		i.	issuing to the Holder, to the extent that the Warrants are exercised after such record date and
before the occurrence of such event, the additional common shares of the Corporation issuable upon such exercise by reason of the
adjustment required by such event; and

 

		ii.	delivering to the Holder any distribution declared with respect to such additional common shares
of the Corporation after such record date and before such event;

 

			provided, however, that the Corporation delivers to the Holder an appropriate instrument evidencing
the right of the Holder, upon the occurrence of the event requiring the adjustment, to an adjustment in the Exercise Price or the
number of common shares of the Corporation purchasable upon the exercise of the Warrants.

 

		g)	If a dispute arises at any time with respect to any adjustment of the Exercise Price or the number
of common shares of the Corporation purchasable pursuant to this Warrant Certificate, such dispute will be conclusively determined
by the auditors of the Corporation or if they are unable or unwilling to act by such other firm of independent chartered accountants
as may be selected by the directors, acting reasonably.

 

		h)	Adjustments to the Exercise Price or the number of common shares of the Corporation purchasable
pursuant to this Warrant certificate may be subject to the prior approval of the TSX Venture Exchange.

 

As a condition precedent to the taking
of any action which would require an adjustment pursuant to the Dilution section above the Corporation will take any action which
may, in the opinion of the Corporation's legal counsel, be necessary in order that the Corporation may validly and legally issue
as fully paid and non-assessable shares all of the common shares of the Corporation which the Holder is entitled to receive in
accordance with the provisions of this Warrant certificate.

    	8

    	 

    

A least twenty-one (21) days prior to any
record date or effective date, as the case may be, for any event which requires or might require an adjustment in any of the rights
of the Holder under this Warrant certificate, including the Exercise Price and the number of common shares of the Corporation which
are purchasable under this Warrant certificate, the Corporation will deliver to the Holder, at the Holder’s registered address,
a certificate of the Corporation specifying the particulars of such event and, if determinable, the required adjustment and the
calculation of such adjustment. In case any adjustment for which a notice as mentioned in the paragraph above has been given is
not then determinable, the Corporation will promptly after such adjustment is determinable deliver to the Holder, at the Holder’s
registered address, a certificate providing the calculation of such adjustment. The Corporation hereby covenants and agrees that
the register of transfers and share transfer books for the common shares of the Corporation will be open, and that the Corporation
will not take any action which might deprive the Holder of the opportunity of exercising the rights of subscription contained in
this Warrant certificate, during such twenty-one day period.

 

Covenants and Representations

 

The Corporation hereby represents and warrants
that it is authorized to create and issue the Warrants and covenants and agrees that it will cause the common shares of the Corporation
from time to time subscribed for and purchased in the manner provided in this Warrant certificate and the certificate representing
such common shares of the Corporation to be issued and that, at all times prior to the Expiry Date, it will reserve and there will
remain unissued a sufficient number of common shares of the Corporation to satisfy the right of purchase provided for in this Warrant
certificate. The Corporation hereby further covenants and agrees that it will at its expense expeditiously use its best efforts
to obtain the listing of such common shares of the Corporation (subject to issue or notice of issue) on each stock exchange or
over-the-counter market on which the common shares of the Corporation may be listed from time to time. All common shares of the
Corporation which are issued upon the exercise of the right of purchase provided in this Warrant certificate, upon payment therefor
of the amount at which such common shares of the Corporation may be purchased pursuant to the provisions of this Warrant certificate,
shall be and be deemed to be fully paid and non-assessable shares and free from all taxes, liens and charges with respect to the
issue thereof. The Corporation hereby represents and warrants that this Warrant certificate is a valid and enforceable obligation
of the Corporation, enforceable in accordance with the provisions of this Warrant certificate.

 

Miscellaneous

 

If any Warrant certificate is lost mutilated,
destroyed or stolen, the Corporation may, on such reasonable terms as to cost and indemnity or otherwise as they may impose, respectively
issue a replacement Warrant certificate similar as to denomination, tenor and date as the Warrant certificate so lost, mutilated,
destroyed or stolen.

 

The Warrants represented hereby shall be
exclusively governed by the laws in force in the Province of Alberta and the laws of Canada applicable therein.

 

If any one or more of the provisions or
parts thereof contained in this Warrant certificate should be or become invalid, illegal or unenforceable in any respect in any
jurisdiction, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, as to
such jurisdiction, severable therefrom and:

 

		a)	the validity, legality or enforceability of such remaining provisions or parts thereof shall not
in any way be affected or impaired by the severance of the provisions or parts thereof severed; and

 

		b)	the invalidity, illegality or unenforceability of any provision or part thereof contained in this
Warrant certificate in any jurisdiction shall not affect or impair such provision or part thereof or any other provisions of this
Warrant certificate in any other jurisdiction.

    	9

    	 

    

Whenever used
in this Warrant certificate, words importing the singular number only shall include the plural and vice versa and words
importing gender shall include all genders.

 

Time shall be of the essence.

 

IN WITNESS WHEREOF the Corporation
has caused its corporate seal to be affixed hereto and this certificate to be signed by the signature of its duly authorized officer
effective November 30, 2013.

 

	 	 	 
	 	 	CAN-CAL RESOURCES LTD.
	 	 	 	 
	 	 	 	 
	 	 	Per:	 
	 	 	 	Authorized Signatory

 

 

 

 

    	10

    	 

    

 

WARRANT EXERCISE FORM

 

TO:CAN-CAL RESOURCES LTD.

8205 Aqua Spray Ave.

Las Vegas, Nevada

89128

 

The undersigned hereby exercises
the right to acquire __________ common shares of CAN-CAL RESOURCES LTD. as constituted on November 30, 2012 (or such number
of other securities or property to which such Warrants entitle the undersigned in lieu thereof or in addition thereto under the
provisions of the Warrant Certificate).

The common shares (or other
securities or property) are to be issued as follows:

 

Name: ___________________________________________________________________________

(print clearly)

 

Address in full:____________________________________________________________________

 

_____________________________________________________________________

 

Number of Common Shares:___________________________________________________________

 

			Note: If further nominees intended, please attach (and initial) schedule giving these particulars.

 

The undersigned hereby represents
and warrants to the Corporation that the undersigned (check one):

 

	 	o	i.	it is not a U.S. Person and the Warrants are not being exercised within the United States or on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States;
	 	 	 	 
	 	o	ii.	it was an original subscriber for Warrants, or a transferee, who was a U.S. Person at the time of the acquisition of such Warrants and the representations and warranties made by such person in connection with the acquisition of such Warrants remain true and correct on the date of exercise; or
	 	 	 	 
	 	o	iii.	it has delivered herewith to the Corporation a written opinion of counsel or other evidence satisfactory to the Corporation to the effect that the common shares have been registered under the U.S. Securities Act and applicable state securities laws or are exempt from registration thereunder.

 

Such securities
(please check one):

 

(a)__________
should be sent by first class mail to the above address;

OR

 

(b)__________
should be held for pick up at the office of the Corporation at which this Warrant Certificate is deposited.

 

 

    	11

    	 

    

In the absence of instructions
to the contrary, the securities or other property will be issued in the name of or to the holder hereof and will be sent by first
class mail to the last address of the holder appearing on the register maintained for the Warrants.

 

DATED this ____
day of __________, 20___.

 

	____________________________________	_________________________
	Signature Guaranteed	(Signature of Warrantholder)

 

 

____________________________________

Print full name

 

 

____________________________________

Print full address

 

 

____________________________________

Print full address

    	12

    	 

    

INSTRUCTIONS:

 

 

		1.	For the purposes of the paragraphs above, the following words and phrases have the following meanings:

 

“United States”
and “U.S. Person” have the meaning given to such terms under Regulation S of the U.S. Securities Act. For purposes
of Regulation S. “U.S. Person” includes, with certain expectations, (i) any natural person resident in the United
States; (ii) any partnership or corporation organized or incorporated under the laws of the United States; (iii) any estate of
which any executor or administrator is a U.S. Person; (iv) any trust of which any trustee is a U.S. Person; (v) any agency or branch
of a foreign entity located in the United States; (vi) any non-discretionary account or similar account (other than an estate or
trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person; (vii) any discretionary account or similar
account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if any individual) resident
in the United States; and (viii) any partnership or corporation if (a) organized or incorporated under the laws of any jurisdiction
other than the United States and (b) formed by a U.S. Person Headly for the purposes of investing in securities not registered
under the U.S. Securities Act; and

 

“U.S. Securities Act”
means the United States Securities Act of 1933, as amended.

 

		2.	The registered holder may exercise its right to receive common shares by completing this form and
surrendering this form and the Warrant Certificate representing the Warrants being exercised to the Corporation at the address
indicated under “Exercise of Warrants” in the Warrant Certificate. Certificates for common shares will be delivered
or mailed within 3 business days after the exercise of the Warrants.
	 	 	 

		3.	If the Exercise Form indicates that common shares are to be issued to a person or persons other
than the registered holder of the Certificate, the signature of such holder of the Exercise Form must be guaranteed by an
authorized officer of a Schedule “A” major chartered bank/trust company or a member of an acceptable medallion guarantee
program. The Guarantor must affix a stamp bearing the actual words “Signature Guaranteed”. Please
note - signature guarantees are not accepted from treasury branches or credit unions unless they are members of the “Stamp
Medallion Program”. Please note - in USA signature guarantees must be done by members of the “Medallion Signature Guarantee
Program” only.
	 	 	 

		4.	If the Exercise Form is signed by a trustee, executor, administrator, curator, guardian, attorney,
officer of a corporation or any person acting in a fiduciary or representative capacity, the certificate must be accompanied by
evidence of authority to sign satisfactory to the Corporation.

 

 

 

    	13Exhibit 10.1

 

FORM OF

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (the “Agreement”), dated as of                         , 2013, between Receptos, Inc., a Delaware corporation (the “Corporation”), and                            (“Indemnitee”),

 

W I T N E S S E T H:

 

WHEREAS, Indemnitee is either a member of the board of directors of the Corporation (the “Board of Directors”) or an officer of the Corporation, or both, and in such capacity or capacities, or otherwise as an Agent (as hereinafter defined) of the Corporation, is performing a valuable service for the Corporation; and

 

WHEREAS, the Corporation is aware that competent and experienced persons are increasingly reluctant to serve as directors or officers of corporations or other business entities unless they are protected by comprehensive indemnification and liability insurance, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and because the exposure frequently bears no reasonable relationship to the compensation of such directors and officers; and

 

WHEREAS, the Board of Directors of the Corporation has concluded that, to retain and attract talented and experienced individuals to serve or continue to serve as officers or directors of the Corporation or as an Agent, and to encourage such individuals to take the business risks necessary for the success of the Corporation, it is necessary for the Corporation contractually to indemnify directors, officers and Agents and to assume for itself to the fullest extent permitted by law expenses and damages in connection with claims against such officers, directors and Agents in connection with their service to the Corporation; and

 

WHEREAS, Section 145 of the General Corporation Law of the State of Delaware (the “DGCL”), under which the Corporation is organized, empowers the Corporation to indemnify by agreement its officers, directors, employees and agents, and persons who serve, at the request of the Corporation, as directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided by the DGCL is not exclusive; and

 

WHEREAS, the Corporation desires and has requested the Indemnitee to serve or continue to serve as a director, officer or Agent of the Corporation free from undue concern for claims for damages arising out of or related to such services to the Corporation; and

 

WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Corporation on the condition that he or she be indemnified as herein provided; and

 

WHEREAS, it is intended that Indemnitee shall be paid promptly by the Corporation all amounts necessary to effectuate in full the indemnity provided herein; and

 

WHEREAS, certain defined terms are set forth in Section 17 below:

 

1

 

NOW, THEREFORE, in consideration of the premises and the covenants in this Agreement, and of Indemnitee serving or continuing to serve the Corporation as an Agent and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.              Services by Indemnitee.  Indemnitee agrees to serve or continue to serve (a) as a director or an officer of the Corporation, or both, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the Certificate of Incorporation and bylaws of the Corporation, and until such time as Indemnitee resigns or fails to stand for election or is removed from Indemnitee’s position, or (b) otherwise as an Agent of the Corporation.  Indemnitee may from time to time also perform other services at the request or for the convenience of, or otherwise benefiting the Corporation or any subsidiary of the Corporation.  Indemnitee may at any time and for any reason resign or be removed from such position (subject to any other contractual obligation or other obligation imposed by operation of law), in which event the Corporation shall have no obligation under this Agreement to continue Indemnitee in any such position.

 

2.                                      Indemnification of Indemnitee.  Subject to the limitations set forth herein and particularly in Section 6 hereof, the Corporation hereby agrees to indemnify Indemnitee as follows:

 

(a)                                 The Corporation shall, with respect to any Proceeding (as hereinafter defined), indemnify Indemnitee to the fullest extent permitted by applicable law or as such law may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the Corporation to provide broader indemnification rights than the law permitted the Corporation to provide before such amendment).  The right to indemnification conferred herein shall be presumed to have been relied upon by Indemnitee in serving or continuing to serve the Corporation as an Agent and shall be enforceable as a contract right.  Without in any way diminishing the scope of the indemnification provided by this Section 2(a), the rights of indemnification of Indemnitee shall include but shall not be limited to those rights hereinafter set forth.

 

(b)                                 The Corporation shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Corporation) by reason of the fact that Indemnitee is or was an Agent of the Corporation, or any subsidiary of the Corporation, or by reason of the fact that Indemnitee is or was serving at the request of the Corporation as an Agent of another corporation, partnership, joint venture, trust or other enterprise, against Expenses (as hereinafter defined) or Liabilities (as hereinafter defined), actually and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.

 

2

 

(c)                                  The Corporation shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Corporation or any subsidiary of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was an Agent of the Corporation, or any subsidiary of the Corporation, or by reason of the fact that Indemnitee is or was serving at the request of the Corporation as an Agent of another corporation, partnership, joint venture, trust or other enterprise, against Expenses and, to the fullest extent permitted by law, Liabilities if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Corporation unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery of the State of Delaware or such other court shall deem proper.

 

3.                                      Advancement of Expenses.  All reasonable Expenses incurred by or on behalf of Indemnitee (including costs of enforcement of this Agreement) shall be advanced from time to time by the Corporation to Indemnitee within thirty (30) days after the receipt by the Corporation of a written request for an advance of Expenses, whether prior to or after final disposition of a Proceeding (except to the extent that there has been a Final Adverse Determination (as hereinafter defined) that Indemnitee is not entitled to be indemnified for such Expenses), including without limitation any Proceeding brought by or in the right of the Corporation.  The written request for an advancement of any and all Expenses under this paragraph shall contain reasonable detail of the Expenses incurred by Indemnitee.  In the event that such written request shall be accompanied by an affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and that such Expenses are reasonable in such counsel’s view, then such expenses shall be deemed reasonable in the absence of clear and convincing evidence to the contrary.  By execution of this Agreement, Indemnitee shall be deemed to have made whatever undertaking as may be required by law at the time of any advancement of Expenses with respect to repayment to the Corporation of such Expenses.  In the event that the Corporation shall breach its obligation to advance Expenses under this Section 3, the parties hereto agree that Indemnitee’s remedies available at law would not be adequate and that Indemnitee would be entitled to specific performance.

 

4.                                      Presumptions and Effect of Certain Proceedings.  Upon making a request for indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Corporation shall have the burden of proof to overcome that presumption in reaching any contrary determination.  The termination of any Proceeding by judgment, order, settlement, arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not affect this presumption or, except as determined by a judgment or other final adjudication adverse to Indemnitee, establish a presumption with regard to any factual matter relevant to determining Indemnitee’s rights to indemnification hereunder.  If the person or persons so empowered to make a determination pursuant to Section 5 hereof shall have failed to make the requested determination within the period provided for in Section 5 hereof, a determination that Indemnitee is entitled to indemnification shall be deemed to have been made.

 

3

 

5.                                      Procedure for Determination of Entitlement to Indemnification.

 

(a)                                 Whenever Indemnitee believes that Indemnitee is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written request for indemnification to the Corporation.  Any request for indemnification shall include sufficient documentation or information reasonably available to Indemnitee for the determination of entitlement to indemnification.  In any event, Indemnitee shall submit Indemnitee’s claim for indemnification within a reasonable time, not to exceed five (5) years after any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent, or final determination, whichever is the later date for which Indemnitee requests indemnification.  The Secretary or other appropriate officer shall, promptly upon receipt of Indemnitee’s request for indemnification, advise the Board of Directors in writing that Indemnitee has made such request.  Determination of Indemnitee’s entitlement to indemnification shall be made not later than sixty (60) days after the Corporation’s receipt of Indemnitee’s written request for such indemnification, provided that any request for indemnification for Liabilities, other than amounts paid in settlement, shall have been made after a determination thereof in a Proceeding.  If it is so determined that the Indemnitee is entitled to indemnification, and Indemnitee has already paid the Liabilities, reimbursement to the Indemnitee shall be made within ten (10) days after such determination; otherwise, the Corporation shall pay the Liabilities on behalf of the Indemnitee if and when the Indemnitee becomes legally obligated to make payment.

 

(b)                                 The Corporation shall be entitled to select the forum in which Indemnitee’s entitlement to indemnification will be heard; provided, however, that if there is a Change in Control of the Corporation, Independent Legal Counsel (as hereinafter defined) shall determine whether Indemnitee is entitled to indemnification.  The forum shall be any one of the following:

 

(i)                                     a majority vote of Disinterested Directors (as hereinafter defined), even though less than a quorum;

 

(ii)                                  by a committee of Disinterested Directors designated by majority vote of Disinterested Directors, even though less than a quorum;

 

(iii)                               Independent Legal Counsel, whose determination shall be made in a written opinion; or

 

(iv)                              the stockholders of the Corporation.

 

6.                                      Specific Limitations on Indemnification.  Notwithstanding anything in this Agreement to the contrary, the Corporation shall not be obligated under this Agreement to make any payment to Indemnitee with respect to any Proceeding:

 

(a)                                 To the extent that payment is actually made to Indemnitee under any insurance policy, or is made to Indemnitee by the Corporation or an affiliate otherwise than pursuant to this Agreement.  Notwithstanding the availability of such insurance, Indemnitee also may claim indemnification from the Corporation pursuant to this Agreement by assigning to the Corporation any claims under such insurance to the extent Indemnitee is paid by the Corporation;

 

4

 

(b)                                 Provided there has been no Change in Control, for Liabilities in connection with Proceedings settled without the Corporation’s consent, which consent, however, shall not be unreasonably withheld;

 

(c)                                  For an accounting of profits made from the purchase or sale by Indemnitee of securities of the Corporation within the meaning of section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of any state statutory or common law;

 

(d)                                 To the extent it would be otherwise prohibited by law, if so established by a judgment or other final adjudication adverse to Indemnitee; or

 

(e)                                  In connection with a Proceeding commenced by Indemnitee (other than a Proceeding commenced by Indemnitee to enforce Indemnitee’s rights under this Agreement) unless the commencement of such Proceeding was authorized by the Board of Directors.

 

7.                                      Fees and Expenses of Independent Legal Counsel.  The Corporation agrees to pay the reasonable fees and expenses of Independent Legal Counsel should such Independent Legal Counsel be retained to make a determination of Indemnitee’s entitlement to indemnification pursuant to Section 5(b) of this Agreement, and to fully indemnify such Independent Legal Counsel against any and all expenses and losses incurred by any of them arising out of or relating to this Agreement or their engagement pursuant hereto.

 

8.                                      Remedies of Indemnitee.

 

(a)                                 In the event that (i) a determination pursuant to Section 5 hereof is made that Indemnitee is not entitled to indemnification, (ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made following a determination of entitlement to indemnification pursuant to this Agreement, or (iv) Indemnitee otherwise seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the State of Delaware of the remedy sought.  Alternatively, unless court approval is required by law for the indemnification sought by Indemnitee, Indemnitee at Indemnitee’s option may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration Association now in effect, which award is to be made within ninety (90) days following the filing of the demand for arbitration.  The Corporation shall not oppose Indemnitee’s right to seek any such adjudication or arbitration award.  In any such proceeding or arbitration Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under this Agreement and the Corporation shall have the burden of proof to overcome that presumption.

 

(b)                                 In the event that a determination that Indemnitee is not entitled to indemnification, in whole or in part, has been made pursuant to Section 5 hereof, the decision in the judicial proceeding or arbitration provided in paragraph (a) of this Section 8 shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination that Indemnitee is not entitled to indemnification.

 

5

 

(c)                                  If a determination that Indemnitee is entitled to indemnification has been made pursuant to Section 5 hereof, or is deemed to have been made pursuant to Section 4 hereof or otherwise pursuant to the terms of this Agreement, the Corporation shall be bound by such determination.

 

(d)                                 The Corporation shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable.  The Corporation shall stipulate in any such court or before any such arbitrator that the Corporation is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary.

 

(e)                                  Expenses reasonably incurred by Indemnitee in connection with Indemnitee’s request for indemnification under, seeking enforcement of or to recover damages for breach of this Agreement shall be advanced by the Corporation when and as incurred by Indemnitee irrespective of any Final Adverse Determination that Indemnitee is not entitled to indemnification.

 

9.                                      Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Corporation and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Corporation (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

10.                               Maintenance of Insurance.  The Corporation represents that it presently has in place certain directors’ and officers’ liability insurance policies covering its directors and officers.  Subject only to the provisions within this Section 10, the Corporation agrees that so long as Indemnitee shall have consented to serve or shall continue to serve as a director or officer of the Corporation, or both, or as an Agent of the Corporation, and thereafter so long as Indemnitee shall be subject to any possible Proceeding (such periods being hereinafter sometimes referred to as the “Indemnification Period”), the Corporation will use all reasonable efforts to maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable policies of directors’ and officers’ liability insurance from established and reputable insurers, providing, in all respects, coverage both in scope and amount which is no less favorable than that presently provided or, following the Corporation’s initial public offering, than that provided as of the time of such initial public offering.  Notwithstanding the foregoing, the Corporation shall not be required to maintain said policies of directors’ and officers’ liability insurance during any time period if during such period such insurance is not reasonably available or if it is determined in good faith by the then directors of the Corporation either that:

 

(i)                                     The premium cost of maintaining such insurance is substantially disproportionate to the amount of coverage provided thereunder; or

 

6

 

(ii)                                  The protection provided by such insurance is so limited by exclusions, deductions or otherwise that there is insufficient benefit to warrant the cost of maintaining such insurance.

 

Anything in this Agreement to the contrary notwithstanding, to the extent that and for so long as the Corporation shall choose to continue to maintain any policies of directors’ and officers’ liability insurance during the Indemnification Period, the Corporation shall maintain similar and equivalent insurance for the benefit of Indemnitee during the Indemnification Period (unless such insurance shall be less favorable to Indemnitee than the Corporation’s existing policies).

 

11.                               Modification, Waiver, Termination and Cancellation.  No supplement, modification, termination, cancellation or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

12.                               Subrogation.  In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights.

 

13.                               Notice by Indemnitee and Defense of Claim.  Indemnitee shall promptly notify the Corporation in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative or investigative that may result in the right to indemnification or the advancement of Expenses, but the omission so to notify the Corporation will not relieve it from any liability that it may have to Indemnitee if such omission does not prejudice the Corporation’s rights.  If such omission does prejudice the Corporation’s rights, the Corporation will be relieved from liability only to the extent of such prejudice.  Notwithstanding the foregoing, such omission will not relieve the Corporation from any liability that it may have to Indemnitee otherwise than under this Agreement.  With respect to any Proceeding as to which Indemnitee notifies the Corporation of the commencement thereof:

 

(a)                                 The Corporation will be entitled to participate therein at its own expense; and

 

(b)                                 The Corporation jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided, however, that the Corporation shall not be entitled to assume the defense of any Proceeding if there has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Corporation and Indemnitee with respect to such Proceeding.  After notice from the Corporation to Indemnitee of its election to assume the defense thereof, the Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or as otherwise provided below.  Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but the  fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless:

 

7

 

(i)                                     the employment of counsel by Indemnitee has been authorized by the Corporation;

 

(ii)                                  Indemnitee shall have reasonably concluded that counsel engaged by the Corporation may not adequately represent Indemnitee due to, among other things, actual or potential differing interests; or

 

(iii)                               the Corporation shall not in fact have employed counsel to assume the defense in such Proceeding or shall not in fact have assumed such defense and be acting in connection therewith with reasonable diligence; in each of which cases the fees and expenses of such counsel shall be at the expense of the Corporation.

 

(c)                                  The Corporation shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold his or her consent to any proposed settlement.

 

14.                               Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

(a)                                 If to Indemnitee, to the address set forth below Indemnitee’s signature on the signature page hereof.

 

(b)                                 If to the Corporation, to:

Receptos, Inc.

10835 Road to the Cure, Suite 205

San Diego, CA 92121

 

or to such other address as may have been furnished to Indemnitee by the Corporation or to the Corporation by Indemnitee, as the case may be.

 

15.                               Nonexclusivity.  The rights of Indemnitee hereunder shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under applicable law, the Corporation’s Certificate of Incorporation or Bylaws, or any agreements, vote of stockholders, resolution of the Board of Directors or otherwise, and to the extent that during the Indemnification Period the rights of the then existing directors and officers are more favorable to such directors or officers than the rights currently provided to Indemnitee thereunder or under this Agreement, Indemnitee shall be entitled to the full benefits of such more favorable rights.

 

8

 

16.                               Indemnification and Advancement Rights Primary.  The Corporation hereby acknowledges that Indemnitee has or may have certain rights to indemnification, advancement of expenses and/or insurance provided by one or more parties other than the Corporation or an affiliate of the Corporation (collectively, the “Secondary Indemnitors”).  The Corporation hereby acknowledges and the Corporation and Indemnitee hereby agree: (i) that the Corporation is the indemnitor of first resort; i.e., its obligations to Indemnitee are primary and any obligation of the Secondary Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary; (ii) that the Corporation shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Certificate of Incorporation and/or Bylaws of the Corporation (or any other agreement between the Corporation and Indemnitee), without regard to any rights Indemnitee may have against the Secondary Indemnitors; and (iii) that the Corporation irrevocably waives, relinquishes and releases the Secondary Indemnitors from any and all claims against the Secondary Indemnitors that the Corporation may have for contribution, subrogation or any other recovery of any kind in respect thereof.  The Corporation further agrees that no advancement or payment by the Secondary Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Corporation shall affect the foregoing and the Secondary Indemnitors shall have a right of contribution and/or subrogation to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Corporation.  The Corporation and Indemnitee agree that the Secondary Indemnitors are express third party beneficiaries of the terms of this provision.

 

17.                               Certain Definitions.

 

(a)                                 “Agent” shall mean any person who is or was, or who has consented to serve as, a director, officer, employee, agent, fiduciary, joint venturer, partner, manager or other official of the Corporation or a subsidiary or an affiliate of the Corporation, or any other entity (including without limitation, an employee benefit plan), in each case either at the request of, for the convenience of, or otherwise to benefit the Corporation or a subsidiary of the Corporation.  Any person who is or was serving as a director, officer, employee or agent of a subsidiary of the Corporation shall be deemed to be serving, or have served, at the request of the Corporation.

 

(b)                                 “Change in Control” shall mean the occurrence, after the Corporation’s initial public offering, of any of the following:

 

(i)                                     Both (A) any “person” (as defined below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing at least twenty percent (20%) of the total voting power represented by the Corporation’s then outstanding voting securities and (B) the beneficial ownership by such person of securities representing such percentage is not approved by a majority of the “Continuing Directors” (as defined below);

 

(ii)                                  Any “person” is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing at least fifty percent (50%) of the total voting power represented by the Corporation’s then outstanding voting securities;

 

9

 

(iii)                               A change in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors are directors (the “Continuing Directors”) who either (A) had been directors of the Corporation on the “look-back date” (as defined below) (the “Original Directors”) or (B) were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority in the aggregate of the Original Directors who were still in office at the time of the election or nomination and directors whose election or nomination was previously so approved;

 

(iv)                              The stockholders of the Corporation approve a merger or consolidation of the Corporation with any other corporation, if such merger or consolidation would result in the voting securities of the Corporation outstanding immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) 50% or less of the total voting power represented by the voting securities of the Corporation or such surviving entity outstanding immediately after such merger or consolidation; or

 

(v)                                 The stockholders of the Corporation approve (A) a plan of complete liquidation of the Corporation or (B) an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets.

 

For purposes of Subsections (i) and (ii) above, the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act, but shall exclude (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or of a parent or subsidiary of the Corporation or (y) a corporation owned directly or indirectly by the stockholders of the Corporation in substantially the same proportions as their ownership of the common stock of the Corporation.

 

For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x) the date first written above in the preamble to this Agreement or (y) the date 24 months prior to the date of the event that may constitute a “Change in Control.”

 

Any other provision of this Section 17(b) notwithstanding, the term “Change in Control” shall not include a transaction, if undertaken at the election of the Corporation, the result of which is to sell all or substantially all of the assets of the Corporation to another corporation (the “surviving corporation”); provided that the surviving corporation is owned directly or indirectly by the stockholders of the Corporation immediately following such transaction in substantially the same proportions as their ownership of the Corporation’s common stock immediately preceding such transaction; and provided, further, that the surviving corporation expressly assumes this Agreement.

 

(c)                                  “Disinterested Director” shall mean a director of the Corporation who is not or was not a party to the Proceeding in respect of which indemnification is being sought by Indemnitee.

 

10

 

(d)                                 “Expenses” shall include all direct and indirect costs (including, without limitation, attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, all other disbursements or out-of-pocket expenses and reasonable compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the Corporation or any third party) actually and reasonably incurred in connection with either the investigation, defense, settlement or appeal of a Proceeding or establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise; provided, however, that “Expenses” shall not include any Liabilities.

 

(e)                                  “Final Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification shall have been made pursuant to Section 5 hereof and either (1) a final adjudication in the courts of the State of Delaware from which there is no further right of appeal or decision of an arbitrator pursuant to Section 8(a) hereof shall have denied Indemnitee’s right to indemnification hereunder, or (2) Indemnitee shall have failed to file a complaint in a Delaware court or seek an arbitrator’s award pursuant to Section 8(a) for a period of one hundred twenty (120) days after the determination made pursuant to Section 5 hereof.

 

(f)                                   “Independent Legal Counsel” shall mean a law firm or a member of a firm selected by the Corporation and approved by Indemnitee (which approval shall not be unreasonably withheld) or, if there has been a Change in Control, selected by Indemnitee and approved by the Corporation (which approval shall not be unreasonably withheld), that neither is presently nor in the past five (5) years has been retained to represent:  (i) the Corporation or any of its subsidiaries or affiliates, or Indemnitee or any corporation of which Indemnitee was or is a director, officer, employee or agent, or any subsidiary or affiliate of such a corporation, in any material matter, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement.

 

(g)                                  “Liabilities” shall mean liabilities of any type whatsoever including, but not limited to, any judgments, fines, Employee Retirement Income Security Act excise taxes and penalties, penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) of any Proceeding.

 

(h)                                 “Proceeding” shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party, as a witness or otherwise, that is associated with Indemnitee’s being an Agent of the Corporation.

 

18.                               Binding Effect; Duration and Scope of Agreement.  This Agreement shall be binding upon the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Corporation), spouses, heirs and personal and legal representatives.  This Agreement shall be deemed to be effective as of the commencement date of the Indemnitee’s service as an officer or director of the Corporation and shall continue in effect  during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent.

 

11

 

19.                               Severability.  If any provision or provisions of this Agreement (or any portion thereof) shall be held to be invalid, illegal or unenforceable for any reason whatsoever:

 

(a)                                 the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby; and

 

(b)                                 to the fullest extent legally possible, the provisions of this Agreement shall be construed so as to give effect to the intent of any provision held invalid, illegal or unenforceable.

 

20.                               Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within the State of Delaware, without regard to conflict of laws rules.

 

21.                               Consent to Jurisdiction.  The Corporation and Indemnitee each irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the state courts of the State of Delaware.

 

22.                               Entire Agreement.  This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts or understandings between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred to herein or as provided in Section 15 hereof.

 

23.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.

 

[* * *]

 

12

 

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed by a duly authorized officer and Indemnitee has executed this Agreement as of the date first above written.

 

	
 
    	
RECEPTOS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Its
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE
    
	
 
    	
 
    
	
 
    	
                                                                 
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
                                                 
    
	
 
    	
 
    	
                                                 
    
	
 
    	
 
    	
                                                 
    
				

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]