Company: GRCE
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001140361-25-041804
Chunk: 43

Company: Grace Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 43
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 Annual Report.

     Item 2.

     Unregistered Sales of Equity Securities and Use of Proceeds

   None.

     Item 3.

     Defaults upon Senior Securities

   None.

     Item 4.

     Mine Safety Disclosures

   Not applicable.

     Item 5.

     Other Information

   (a)

   CEO Employment Agreement Amendment

   On November 12, 2025, the Company entered into an amendment (the “CEO Amendment”) to that certain Letter Agreement by and between Prashant Kohli, the Company’s Chief Executive Officer, and the Company, dated August 12, 2024 (the “CEO Letter Agreement”), a copy of which is filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on August 16, 2024. As further described herein, the CEO Amendment supersedes and replaces certain of the terms contained in the CEO Letter Agreement.

   Pursuant to the CEO Amendment, if Mr. Kohli’s employment is terminated by the Company without Cause (as defined in the CEO Amendment), absent a Change in Control (as defined in the Grace Therapeutics, Inc. 2024 Equity Incentive Plan) of the Company, Mr. Kohli is entitled to receive accrued but unpaid salary, unreimbursed expenses, and benefits (collectively, the “Accrued Obligations”) owed to him and, subject to Mr. Kohli’s execution, delivery and non-revocation of a general release of claims, the Company shall (i) pay him a continuation of his base salary then in effect for twelve (12) months, and (ii) pay or reimburse his COBRA premiums for twelve (12) months on terms no less favorable than those in effect on November 12, 2025. Any unvested and outstanding equity awards held by Mr. Kohli shall be forfeited upon termination by the Company without Cause absent a Change in Control of the Company.

   The CEO Amendment further provides that if Mr. Kohli’s employment is terminated by the Company without Cause in connection with, or within twelve (12) months following, a Change in Control of the Company, Mr. Kohli is entitled to receive the Accrued Obligations owed to him and, subject to Mr. Kohli’s execution, delivery and non-revocation of a general release of claims, the Company shall (i) pay him a cash payment equal to eighteen (18) months of his