Company: GANX
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001558370-25-005829
Chunk: 49

Company: Gain Therapeutics, Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 49
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 the separation date.

On September 18, 2024, Mr. Alder filed suit against us in the Circuit Court of Maryland for Montgomery County (the “Litigation”). On October 10, 2024, Mr. Alder amended the complaint in the Litigation to add Jeffrey Riley, a member of our Board, and Khalid Islam, Chairman of the Board, as defendants. In his suit, Mr. Alder alleges, among other things, that we breached the Separation Agreement and employment agreement with Mr. Alder by failing to pay certain severance amounts as well as violated non-disparagement obligations to Mr. Alder. We engaged in a mediation session on March 31, 2025, and we are currently negotiating a settlement agreement with Mr. Alder.

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#### C. Evan Ballantyne
We entered into an employment agreement with Mr. Ballantyne effective as of April 10, 2023, in connection with his appointment as our Chief Financial Officer. Pursuant to his employment agreement, Mr. Ballantyne was entitled to receive an annual base salary of $350,000 and eligible to receive, as determined by the Board in its sole discretion, an annual incentive cash bonus which the Board initially set at a target of 40% of his annual base salary.

Also pursuant to Mr. Ballantyne’s employment agreement, as a material inducement to Mr. Ballantyne to enter into employment with us, the Board also approved the grant to Mr. Ballantyne of the following inducement equity awards granted pursuant to the 2021 Inducement Plan, on the date of commencement of Mr. Ballantyne’s employment: (i) an option award to purchase up to 100,000 shares of our common stock at an exercise price per share equal to fair market value on the date of grant (the “Inducement Option”), vesting over a four year period from the CFO Transition, with 25% vesting on the first anniversary thereof and the balance vesting in equal monthly installments over the remainder of the vesting period, in each case subject to Mr. Ballantyne’s continuous employment with us through the applicable vesting date, and (ii) 100,000 restricted stock units (the “Inducement RSUs”) vesting, subject to Mr. Ballantyne’s continuous employment with the Company through the applicable vesting date, upon the Board’s certification that one or both of