Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 344

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 344
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 increase
to $0.15 million. In the event that Dr. Chapman’s employment is terminated by our company without “Cause” or is terminated
by Dr. Chapman for “Good Reason”, Dr. Chapman would be entitled to severance compensation in the form of salary continuation
for a period of three months (subject to Dr. Chapman executing and delivering a customary general release in favor of the company). “Cause”
is defined in the agreement to include dishonesty, misappropriation, willful misconduct, breach of the agreement, and other customary
matters. “Good Reason” is defined to include a material adverse change in Dr. Chapman’s compensation or duties and
level of responsibility. The employment agreement also contains customary confidentiality and invention-assignment covenants to which
Dr. Chapman is subject. Dr. Chapman received $0.02 million in compensation related to his employment agreement in 2024.

On
August 17, 2023, Dr. Chapman received a $0.05 million cash bonus net of federal, state, local and income taxes related to the successful
completion of the IPO.

On
March 9, 2024, Dr. Chapman resigned from our company as Executive Chairman, and as an employee.

Compensation
Recovery Policy

On
October 2, 2023, our Board of Directors adopted a policy (commonly known as a “clawback” policy) which provides for the recovery
of erroneously awarded incentive compensation to certain of our officers in the event that we are required to prepare an accounting restatement
due to material noncompliance by us with any financial reporting requirements under the federal securities laws. This policy is designed
to comply with Section 10D of the Securities Exchange Act of 1934, as amended, related rules and the listing standards of Nasdaq Stock
Market or any other securities exchange on which our shares are listed in the future. The policy is administered by our Board of Directors
or, if so designated by the Board of Directors, the Compensation Committee. Any determinations made by the Board shall be final and binding
on all affected individuals.

80

The
individuals covered by this policy (the “Covered Officers”) are any current or former employee who is or was identified as
our president, principal financial officer, principal accounting officer (or if there is no such accounting officer, the controller),
any vice-president in charge of a principal business unit, division, or function (such as sales, administration, or finance