Company: VHC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001140361-25-015742
Chunk: 28

Company: VirnetX Holding Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 28
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We do not pay meeting fees for Board or committee meetings. Stock Compensation of Non-Employee Directors for 2024 Consistent with our Compensation Policy, stock compensation for non-employee directors is provided as follows:

| • | Upon the initial election or appointment to the Board of a new non-employee director, such individual will be granted an award of such number of shares of restricted stock (an “Initial Award”) equal to the lesser of (a) 22,500 shares of our Common Stock or (b) that number of shares equal to the quotient obtained by dividing $450,000 by the fair market value per share on the date the individual first becomes a non-employee director, rounded down, if necessary, to the nearest whole share. The Initial Award will be scheduled to vest annually with respect to 1/3rd of the total number of shares subject to the Initial Award, on each one year anniversary following the grant date; provided, however, that any shares subject to the Initial Award that remain unvested as of the close of business on the day prior to the Company’s third annual meeting of the Company’s stockholders that occurs after the date on which such individual first becomes an non-employee director shall fully vest on such date, in each case, subject to the non-employee director continuing to be a service provider through the applicable vesting date; and provided further that the Initial Award shall become fully vested immediately prior to a “change in control” (as defined in the Plan, as defined below) of the Company. |

| • | Each existing non-employee director will be granted, under the Compensation Plan, an award of such number of shares of restricted stock (an “Annual Award”) equal to the lesser of (a) 7,500 shares of common stock, or (b) that number of shares of common stock equal to the quotient obtained by dividing $150,000 by the fair market value per share on the date of the annual meeting of stockholders to which such Annual Award related, rounded down, if necessary, to the nearest whole share. Each Annual Award will be scheduled to vest on the earlier of (a) the one-year anniversary of the date the Annual Award is granted, or (b) the close of business on the day prior to the date of the next annual meeting of stockholders following the date the Annual Award is granted, in each case, condition upon continued service as a director; provided that these Annual Awards become fully vested immediately prior to a “change in control”