Document ID: 10245

Text:
(c)Stock Options. Subject to final approval by the Board, on or after the Commencement Date, the Company shall grant the Executive an option to purchase a number of shares of the Companys common stock at the shares then fair market value (FMV) which equals two percent ( 2.0% ) of the Companys shares then outstanding on a fully-diluted basis, including for such purposes (i)the exercise of all vested options and warrants and the conversion of all convertible securities, and (ii)the amount of such grant (the Initial Time Based Equity Award). To the extent permitted by the tax laws, the Initial Time Based Equity Award shall be granted in the form of an incentive stock option meeting the requirements of Section422 of the Code except to the extent that the Executive directs that the option be granted in whole or in part in the form of a non-qualified stock option. To induce the Executive to become an employee of the Company, the Executive hereby agrees that, to the extent any of the Initial Time Based Equity Award is required (or elected by the Executive) to be a non-qualified stock option, then such non-qualified stock option may be granted to Executive as an as inducement grant consistent with the requirements of NASDAQ Stock Market Rule 5635(c)(4) instead of pursuant to the Companys existing stock plan. The Initial Time Based Equity Award shall be subject to the terms of and contingent upon Executives execution of a stock option award agreement(s) issued pursuant to the Companys stock plan or otherwise to the extent issued as an inducement grant, including with respect to vesting and exercisability. The Initial Time Based Equity Award shall be subject to time-based vesting for a four-year period starting on the Commencement Date, with 25% of the Initial Time Based Equity Award vesting on the one-year anniversary of the Commencement Date, and then 2.0833% of the Initial Time Based Equity Award vesting on the first day of each month after the one (1)year anniversary of the Commencement Date. : For clarity, any agreement evidencing an equity award by the Company to the Executive will be consistent with, and subject to, the terms of this Agreement.

Named Entities:
55
58
Percentage
238
245
Regulation
335
336
Percentage
347
348
TerminationDate
356
359
Percentage
377
382
TerminationDate

Tokenized Text:
(
c
)
Stock
Options
.
Subject
to
final
approval
by
the
Board
,
on
or
after
the
Commencement
Date
,
the
Company
shall
grant
the
Executive
an
option
to
purchase
a
number
of
shares
of
the
Companys
common
stock
at
the
shares
then
fair
market
value
(
FMV
)
which
equals
two
percent
(
2
.
0
%
)
of
the
Companys
shares
then
outstanding
on
a
fully-diluted
basis
,
including
for
such
purposes
(
i
)
the
exercise
of
all
vested
options
and
warrants
and
the
conversion
of
all
convertible
securities
,
and
(
ii
)
the
amount
of
such
grant
(
the
Initial
Time
Based
Equity
Award
)
.
To
the
extent
permitted
by
the
tax
laws
,
the
Initial
Time
Based
Equity
Award
shall
be
granted
in
the
form
of
an
incentive
stock
option
meeting
the
requirements
of
Section422
of
the
Code
except
to
the
extent
that
the
Executive
directs
that
the
option
be
granted
in
whole
or
in
part
in
the
form
of
a
non-qualified
stock
option
.
To
induce
the
Executive
to
become
an
employee
of
the
Company
,
the
Executive
hereby
agrees
that
,
to
the
extent
any
of
the
Initial
Time
Based
Equity
Award
is
required
(
or
elected
by
the
Executive
)
to
be
a
non-qualified
stock
option
,
then
such
non-qualified
stock
option
may
be
granted
to
Executive
as
an
as
inducement
grant
consistent
with
the
requirements
of
NASDAQ
Stock
Market
Rule
5635
(
c
)
(
4
)
instead
of
pursuant
to
the
Companys
existing
stock
plan
.
The
Initial
Time
Based
Equity
Award
shall
be
subject
to
the
terms
of
and
contingent
upon
Executives
execution
of
a
stock
option
award
agreement
(
s
)
issued
pursuant
to
the
Companys
stock
plan
or
otherwise
to
the
extent
issued
as
an
inducement
grant
,
including
with
respect
to
vesting
and
exercisability
.
The
Initial
Time
Based
Equity
Award
shall
be
subject
to
time-based
vesting
for
a
four-year
period
starting
on
the
Commencement
Date
,
with
25
%
of
the
Initial
Time
Based
Equity
Award
vesting
on
the
one-year
anniversary
of
the
Commencement
Date
,
and
then
2
.
0833
%
of
the
Initial
Time
Based
Equity
Award
vesting
on
the
first
day
of
each
month
after
the
one
(
1
)
year
anniversary
of
the
Commencement
Date
.
:
For
clarity
,
any
agreement
evidencing
an
equity
award
by
the
Company
to
the
Executive
will
be
consistent
with
,
and
subject
to
,
the
terms
of
this
Agreement
.