Document ID: 10441

Text:
3.3 Stock Options. On the date of execution of this agreement, Executive has been granted an option to purchase 100,000 shares of Company common stock (the Option) pursuant to the Companys Amended and Restated 2014 Omnibus Equity Incentive Plan (the Plan). The Option shall have a per share exercise price equal to the closing price of such stock on NASDAQ on the trading day immediately prior to the grant date, and shall expire on the tenth anniversary of the date of execution of this Agreement. To the extent permitted by tax rules under Section 422 of the Internal Revenue Code, the Option granted hereunder shall be intended to be an incentive stock option. The Option shall vest as follows so long as the Executive is serving as either Executive Vice-President or as Chief Financial Officer at such time: (i) 75% upon acceptance of a US IND for MS1819 , and (ii) 25% upon the Company completing a Phase IIa clinical trial for MS1819 . In the event of any conflict between this Agreement and the terms of the Plan, the terms of this Agreement shall control. In addition, the Executive may elect to exercise some or all of the stock options by making a net exercise, in which case the Company shall issue to the Executive a number of shares of unencumbered common stock of the Company equal to: (x) the total number of shares underlying the portion of the stock option being exercised less (y) the number of shares whose fair market value is equal to the sum of (A) the exercise price of the stock options being exercised, plus (B) any required tax withholding amounts in respect of such exercise. In the event Executives employment is terminated under the provisions of Sections 4.5.3 or 4.5.4 hereof, all vested options will remain exercisable for a period of twelve (12) months following termination; provided, however, that those options that are exercised after 90 days following termination of employment shall no longer be eligible for treatment as Incentive Stock Options.

Named Entities:
23
25
Shares
87
88
TerminationDate
106
107
Regulation
110
112
Act
143
144
Role
147
149
Role
157
158
Percentage
172
173
Percentage
330
341
Regulation
354
360
TerminationDate

Tokenized Text:
3
.
3
Stock
Options
.
On
the
date
of
execution
of
this
agreement
,
Executive
has
been
granted
an
option
to
purchase
100
,
000
shares
of
Company
common
stock
(
the
Option
)
pursuant
to
the
Companys
Amended
and
Restated
2014
Omnibus
Equity
Incentive
Plan
(
the
Plan
)
.
The
Option
shall
have
a
per
share
exercise
price
equal
to
the
closing
price
of
such
stock
on
NASDAQ
on
the
trading
day
immediately
prior
to
the
grant
date
,
and
shall
expire
on
the
tenth
anniversary
of
the
date
of
execution
of
this
Agreement
.
To
the
extent
permitted
by
tax
rules
under
Section
422
of
the
Internal
Revenue
Code
,
the
Option
granted
hereunder
shall
be
intended
to
be
an
incentive
stock
option
.
The
Option
shall
vest
as
follows
so
long
as
the
Executive
is
serving
as
either
Executive
Vice-President
or
as
Chief
Financial
Officer
at
such
time
:
(
i
)
75
%
upon
acceptance
of
a
US
IND
for
MS1819
,
and
(
ii
)
25
%
upon
the
Company
completing
a
Phase
IIa
clinical
trial
for
MS1819
.
In
the
event
of
any
conflict
between
this
Agreement
and
the
terms
of
the
Plan
,
the
terms
of
this
Agreement
shall
control
.
In
addition
,
the
Executive
may
elect
to
exercise
some
or
all
of
the
stock
options
by
making
a
net
exercise
,
in
which
case
the
Company
shall
issue
to
the
Executive
a
number
of
shares
of
unencumbered
common
stock
of
the
Company
equal
to
:
(
x
)
the
total
number
of
shares
underlying
the
portion
of
the
stock
option
being
exercised
less
(
y
)
the
number
of
shares
whose
fair
market
value
is
equal
to
the
sum
of
(
A
)
the
exercise
price
of
the
stock
options
being
exercised
,
plus
(
B
)
any
required
tax
withholding
amounts
in
respect
of
such
exercise
.
In
the
event
Executives
employment
is
terminated
under
the
provisions
of
Sections
4
.
5
.
3
or
4
.
5
.
4
hereof
,
all
vested
options
will
remain
exercisable
for
a
period
of
twelve
(
12
)
months
following
termination
;
provided
,
however
,
that
those
options
that
are
exercised
after
90
days
following
termination
of
employment
shall
no
longer
be
eligible
for
treatment
as
Incentive
Stock
Options
.