NON-STATUTORY OPTION AGREEMENT
THIS NON-STATUTORY OPTION AGREEMENT ("Option") is entered into effective the 15thday of November 2016, by and between Fred G. Luke, a natural person residing in Orange CountyCalifornia ("Optionee") and NuLife Sciences Inc. Inc., a publicly held Nevada corporation (the"Company").
WHEREAS, the Company and Optionee are parties to an Advisory Agreement effective July 15, 2016 (the "Advisory Agreement"); and,
WHEREAS, in consideration for and as an inducement for Optionee entering into the Advisory Agreement, joining the Company as an officer, and Optionee's efforts preceding the effective date of theAdvisory Agreement, the Company hereby agrees to grant to Optionee options to purchase shares of its$.001 par value common stock ("Common Stock").
NOW, THEREFORE, for and in consideration of the mutual promises herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject tothe terms and conditions set forth below, Optionee and the Company agree as follows:
1. | The Option |
In consideration for Optionee entering into the Advisory Agreement, the Company hereby agreesand does grant to Optionee, to become effective and vest to Optionee upon execution hereof, theoption to acquire up to One Million Five Hundred Thousand (1,500,000) shares of the Company's Common Stock (the "Option Shares"), issuable from the Company's Stock Plan (as defined in theAdvisory Agreement).
2. | Option Term and Exercise Price |
A. | Term of Option. Subject to the terms of this Option, Optionee shall have the right toexercise the Option in whole or in part, until the third (3rd) anniversary of the Company'sexecution hereof. |
B. | Exercise Price. The exercise price per share of the Common Stock under this Option shallbe not less than One Hundred Ten percent (110%) of the ten (10) day lowest trailingaverage closing Bid price of such shares on the date of the execution of the OptionAgreement, which is Fourteen cents ($.14) per shares, subject to adjustment hereunder (the"Exercise Price"). |
C. | Mechanics of Exercise. Exercise of the purchase rights represented by this Option maybe made, in whole or in part during the Term of this Option by delivery to the Company ofa duly executed facsimile copy of the Notice of Exercise Form annexed hereto (or suchother office or agency of the Company as it may designate by notice in writing tothe registered Optionee at the address of such Optionee appearing on the books of theCompany); and, within Three (3) Trading Days of the date said Notice of Exercise isdelivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawnon a United States bank, or by way of a "cashless exercise" as set forth in paragraph 2D below. Notwithstanding anything herein to the contrary, the Optionee shall not be required to physically surrender this Option to the Company until the Optionee has purchased all of the Option Shares available hereunder and the Option has been exercised in full, in which case, the Optionee shall surrender this Option to the Company for cancellation within ten(10) Trading Days following Optionee's receipt of the balance of the Option Shares sonumber of Option Shares available hereunder shall have the effect of lowering theoutstanding number of Option Shares purchasable hereunder in an amount equal to theapplicable number of Option Shares purchased. The Optionee and the Company shallmaintain records showing the number of Option Shares purchased and the date of suchpurchases. |
The Company shall deliver any objection to any Notice of Exercise Form withinone (1) Business Day of receipt of such notice. In the event of any dispute or discrepancy,the records of the Optionee shall be controlling and determinative in the absence ofmanifest error. The Optionee and any assignee, by acceptance of this Option, acknowledgeand agree that, by reason of the provisions of this paragraph 2, following the purchase of aportion of the Option Shares hereunder, the number of Option Shares available for purchasehereunder at any given time may be less than the amount stated on the face hereof.
D. | Cashless Exercise. This Option may also be exercised at such time by means of a"cashless exercise" in which the Optionee shall be entitled to receive a certificate for thenumber of Option Shares by (a) payment of the Exercise Price, as set forth in paragraph 2B. above, (b) by tendering to the Company that number of shares of the Company'sCommon Stock either owned or due to be issued to Optionee by the Company for Servicesrendered ("Advisors Shares"), having a Fair Market Value equal to the Exercise Price ofthe Option Shares then being purchased pursuant to this Option, or (c) voluntarily reducingthe number of Option Shares ("Surrendered Shares ") having a Fair Market Value equal tothe Exercise Price of the Option Shares then being purchased. Fair Market Value, for thepurposes of this Option shall be calculated by multiplying the Ten (10) day trailing averageclosing Bid price for the Company's Common Stock times the number of Advisors Sharesor Surrendered Shares, as the case may be. |
3. | Mechanics of Exercise |
Exercise of the purchase rights represented by this Option may be made, in whole or in part duringthe Term of this Option by delivery to the Company of a duly executed facsimile copy of the Noticeof Exercise Form attached hereto (or such other office or agency of the Company as it maydesignate by notice in writing to the registered Optionee at the address of such Optionee appearingon the books of the Company). Upon receipt of Optionee's Notice of Exercise the Company shallimmediately cause the delivery of the Option Shares, to be issued from the Stock Plan, so purchasedto Optionee, or in such name or names as Optionee may designate. In the event the Option isexercised in respect of less than all of the Option Shares purchasable on such exercise at any timeprior to the date of expiration hereof, the remaining Option Shares shall continue to be subject toadjustment as set forth herein; provided however, that within ten (10) Trading Days of the date saidNotice of Exercise is delivered to the Company, the Company shall have received payment of theaggregate Exercise Price of the shares thereby purchased by wire transfer or cashier' s check drawnon a United States bank, or by way of a "cashless exercise" as set forth in paragraph 2D. above.
Notwithstanding anything herein to the contrary, the Optionee shall not be required to physicallysurrender this Option to the Company until the Optionee has purchased all of the Option Shares available hereunder and the Option has been exercised in full, in which case, the Optionee shallsurrender this Option to the Company for cancellation within ten (10) Trading Days followingOptionees's receipt of the balance of the Option Shares so exercised. Partial exercises of thisOption resulting in purchases of a portion of the total number of Option Shares available hereundershall have the effect of lowering the outstanding number of Option Shares purchasable hereunderin an amount equal to the applicable number of Option Shares purchased. The Optionee and theCompany shall maintain records showing the number of Option Shares purchased and the date ofsuch purchases. The Company shall deliver any objection to any Notice of Exercise Form withinone (1) Business Day of receipt of such notice. In the event of any dispute or discrepancy, therecords of the Optionee shall be controlling and determinative in the absence of manifest error. The Optionee and any assignee, by acceptance of this Option, acknowledge and agree that , by reason of the provisions of paragraph 2 or 3, following the purchase of a portion of the Option Shares hereunder, the number of Option Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
4. | Adjustment of Option Shares |
The number of Option Shares purchasable pursuant to this Option shall be subject to adjustment from time to time upon the happening of certain events, as follows:
A. | Adjustment for Recapitalization. In the event the Company shall (a) subdivide its outstanding shares of Common Stock, or (b) issue or convert by a reclassification or recapitalization of its shares of Common Stock into, for, or with other securities (a "Recapitalization"), the number of Option Shares purchasable hereunder immediately following such Recapitalization shall be adjusted so that Optionee shall be entitled to receive the kind and number of Option Shares or other securities of the Company measured as a percentage of the current issued and outstanding shares of Company's Common Stock as of the date hereof, which it would have been entitled to receive had such Option been exercised immediately prior to the happening of such event or any record date with respect thereto; provided however that, notwithstanding anything in this Option or the Advisory Agreement to the contrary, the number of Option Shares shall not be reduced or affected in any way as a result of a reverse stock split either by a reduction of the number of Option Shares or an increase in the Option Price (the "Repricing"), unless such Repricing is mutually agreed upon in writing between Optionee and the Company prior to any adjustment. |
B. | Preservation of Purchase Rights Under Consolidation. Subject to paragraph 4A. above, in case of any Recapitalization or any other consolidation of the Company with or merger of the Company into another corporation, or in case of any sale or conveyance to another third party (a "successor") of the property of the Company, in its entirety or substantially in its entirety, the Company shall, prior to the Closing of such transaction, cause such successor or purchasing party, to acknowledge and assume in writing responsibility for the Company's obligations hereunder, and to grant Optionee the right thereafter upon payment of the Option Price to purchase the kind and the greater of (a) the number of Option Shares as stated here, or (b) an equivalent percentage of successor's shares as the Option Shares now represent to the Company's total shares issued and outstanding or other securities and property of the successor, which Optionee would have been entitled to receive after the happening of such consolidation, merger, sale or conveyance. The provisions of this paragraph shall similarly apply to successive consolidations, mergers, sales or conveyances. |
C. | Notice of Adjustment. Whenever the number of Option Shares purchasable hereunderisadjusted, as herein provided, the Company shall mail by first class mail, postage prepaid, to Optionee notice of such adjustment or adjustments, and shall deliver to Optionee setting forth the adjusted number of Option Shares purchasable and a brief statement of the facts requiring such adjustment, including the computation by which such adjustment was made. |
5. | Assignment |
The rights represented by this Option may only be assigned or transferred by Optionee to an affiliate or retirement plan, or to a trust if affected as the result of estate planning. For the purpose of this Option, the term "affiliate" shall be defined as a family member or an enterprise that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control of Optionee; otherwise, this Option and the rights hereunder shall not be assigned. Any attempted levy against this Option or the Option Shares, or the proceeds therefrom, shall void this Option in its entirety.
6. | Registration of Option Shares |
Provided the Company is eligible to file a Registration Statement on Form S-8 or another applicable registration statement, then no later than ten (10) days following the date hereof as to the Option Shares, and as to an anticipated event giving rise to the obligation by the Company to issue Optionee, serving as the Company's Advisor, Director or Executive Officer, shares of the Company's Common Stock comprising such fee shall be registered by the Company with the Securities and Exchange Commission under the applicable registration statement, and the Company shall cause such registration statement to remain effective at all times while Optionee has the right to purchase Option Shares.
At Optionee 's election, all or any portion of the Option Shares may be issued prior to registration in reliance on exemptions from registration provided by Section 4(2) of the Securities Act of 1933, as amended (the "'Act"), Regulation D of the Act, and applicable state securities laws.
Failing file an applicable registration statement to register the Option Shares and any other shares due to Advisor or its designee(s), the Term of this Option shall be tolled as to those Option Shares not exercised by Optionee, until the Company becomes effects a registration of the Option Shares, or the remaining balance of such shares in the event Optionee has elected to purchase, and has received a portion but not all of the Option Shares without an effective registration statement.
7. | Further Documentation |
Each party hereto agrees to execute such additional instruments and take such action as may be reasonably requested by the other party to affect the transaction, or otherwise to carry out the intent and purposes of this Option.
8. | Notices |
All notices and other communications hereunder shall be in writing and shall be sent by prepaid first class mail to the parties at the following addresses, as amended by the parties with written notice to the other:
In the case of the Company:
Smoofi, Inc
Attn: CEO
1031 Calle Recodo Ste B
San Clemente CA 92673
Telephone: 1.949.973.0684
Facsimile: 1.
Email: info@nulifesciences.com
In the case of Advisor:
Fred G. Advisor
Telephone: 1.949.400.1415Email: I uke.gmai@gmail.com
9. | Governing Law |
This Option was negotiated, and shall be governed by the laws of California notwithstanding anyconflict-of-law provision to the contrary.
This Option sets forth the entire understanding as to Optionee's rights to purchase shares of theCompany's Common Stock, and no other prior written oral statement or agreement related toOptionee's right as to the Option Shares shall be recognized or enforced, save and except the Advisory Agreement.
10. | Severability |
If a court of competent jurisdiction determines that any clause or provision of this Option is invalid,illegal or unenforceable, the other clauses and provisions of the Option shall remain in full forceand effect and the clauses and provisions which are determined to be void, illegal or unenforceableshall be limited, so that they shall remain in effect to the extent permissible by law.
11. | Headings |
The section and subsection headings in this Option are inserted for convenience only and shall notaffect in any way the meaning or interpretation of this Option.
12. | Counterparts |
This Option may be executed simultaneously in two or more counterparts, each of which shall bedeemed an original, but all of which together shall constitute one and the same instrument. Afacsimile, telecopy or other reproduction of this instrument may be executed by one or more partieshereto and such executed copy may be deliveredby facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties agree to execute an original of this instrument as well as any facsimile, telecopy or other reproduction hereof.
IN WITNESS WHEREOF, the parties have executed this Option the day and year first written above.
“Optionee”
__________________________
Fred G. Luke
a natural person
The “Company”
NuLife Sciences Inc.
a Nevada corporation
By __________________________
Name:
Title:
NOTICE OF EXERCISE
TO:NuLife Sciences Inc.
(1) The undersigned hereby elects to purchase _____________________________ (______________)Option Shares of the Company pursuant to the terms of the attached Option (onlyif exercised infull), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2) Payment shall take the form of (check applicable box):
[ ] in lawful money of the United States; or
[ ] [if permitted] the cancellation of such number of Option Shares as is necessary, in accordance with the terms set forth in subsection 2D., to exercise this Option with respect to the maximum number of Option Shares purchasable pursuant to the cashless exercise procedure set forth insubsection 2D.
(3) Please issue the Option Shares to the following: (__) DWAC Account Number as follows, or(__) by physical delivery of a certificate or certificates to the following address:
______________________________
______________________________
_______________________________
_______________________________
(4) Accredited Investor. The undersigned is an "accredited investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.
[SIGNATURE OF OPTIONEE]
Name of Investing Entity: __________________________________________________________
Signature of Authorized Signatory of Investing Entity:
________________________________________________________________________________________
Name of Authorized Signatory: ______________________________________________________
Title of Authorized Signatory: _______________________________________________________
Date: _______________________, ___________
ASSIGNMENT FORM
(To assign the foregoing Option, execute this form and supply required information. Do not use this form to exercise the Option )
FOR VALUE RECEIVED, the undersigned, holder of the Option Agreement between theundersigned and Smoofi Inc. dated _______________________, 201_, hereby assigns all, or that portion of the Option, and all rights evidenced thereby, representing ________________________(__________________)Option Shares (as defined in the Option) , to:
________________________________________________________________________________________
whose address is:
______________________________________________________________________________________
Optionee's Signature: ___________________________________
Optionee's Address: ______________________________________
______________________________________
______________________________________
Signature Guaranteed: ___________________________________
NOTE: The signature to this Assignment Form must correspond with the name as it appears onthe face of the Option, without alteration or enlargement or any change whatsoever, and must beguaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciaryor other representative capacity should file proper evidence of authority to assign the foregoingOption.