Document:

Exhibit __

 

 

ACLARION, INC.

 

STOCK OPTION GRANT NOTICE

(2022 EQUITY INCENTIVE PLAN)

 

Aclarion, Inc. (the “Company”), pursuant
to its 2022 Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to purchase the number
of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth
in this Stock Option Grant Notice, in the Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and
incorporated herein in their entirety. Capitalized terms not explicitly defined herein but defined in the Plan or the Option Agreement
will have the same definitions as in the Plan or the Option Agreement. If there is any conflict between the terms in this Stock Option
Grant Notice and the Plan, the terms of the Plan will control.

 

	Optionholder:	 
	Date of Grant:	 
	Vesting Commencement Date:	 
	Number of Shares Subject to Option:	 
	Exercise Price (Per Share):	 
	Total Exercise Price:	 
	Expiration Date:	 

 

	Type of Grant:Equity Incentive Plan-Form of Restrictive Stock Unit Grant Notice and RSU Agreement to become effective immediately prior to the Effective Date of this Offering 	___     Incentive Stock Option(1)	___     Nonstatutory Stock
Option
	 	 	 
	Exercise Schedule:	Same as Vesting Schedule	 
	 	 	 
	Vesting Schedule:	[_______________], subject to Optionholder’s Continuous Service as of each such date. Equity
  Incentive Plan-Form of Restrictive Stock Unit Grant Notice and RSU Agreement to become effective immediately prior to the Effective
  Date of this Offering. 
	 	 
	Payment:Equity Incentive Plan-Form of Restrictive Stock Unit Grant Notice and RSU Agreement to become effective immediately prior to the Effective Date of this Offering 	By one or a combination of the following items (described in the Option Agreement):
	 	 
	 	__     By cash, check, bank draft or money order payable
to the Company
	 	__     Pursuant to a Regulation T Program if the shares are
publicly traded
	 	__     By delivery of already-owned shares if the shares
are publicly traded
	 	__     If and only to the extent this option is a Nonstatutory
Stock Option, and subject to the Company’s consent at the time of exercise, by a “net exercise” arrangement

 

 

 

 

 

_____________________________

 

		(1)	If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable for more
than $100,000 in value (measured by exercise price) in any calendar year. Any excess over $100,000 is a Nonstatutory Stock Option.

 

 

 

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Additional Terms/Acknowledgements: Optionholder acknowledges
receipt of, and understands and agrees to, this Stock Option Grant Notice, the Option Agreement and the Plan. Optionholder acknowledges
and agrees that this Stock Option Grant Notice and the Option Agreement may not be modified, amended or revised except as provided in
the Plan. Optionholder further acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the Option Agreement, and the
Plan set forth the entire understanding between Optionholder and the Company regarding this option award and supersede all prior oral
and written agreements, promises and/or representations on that subject with the exception of, if applicable, (i) equity awards previously
granted and delivered to Optionholder, (ii) any compensation recovery policy that is adopted by the Company or is otherwise required by
applicable law and (iii) any written employment agreement, severance agreement, offer letter or other written agreement entered into between
the Company and Participant specifying the terms that should govern this specific option. By accepting this option, Optionholder consents
to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and
maintained by the Company or another third party designated by the Company.

 

 

	ACLARION, INC.	OPTIONHOLDER:
	 	 
	By: 	 	 	 
	 	Signature	 	Signature
	 	 	 	 
	Title: 	 	 	Date:	 
	 	 	 	 
	Date:	 	 	 

 

ATTACHMENTS: Option Agreement,
2022 Equity Incentive Plan, and Notice of Exercise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ATTACHMENT I

 

ACLARION, INC.

 

OPTION AGREEMENT

(2022 EQUITY INCENTIVE PLAN)

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK
OPTION)

 

Pursuant to your Stock Option Grant Notice (“Grant
Notice”) and this Option Agreement, Aclarion, Inc. (the “Company”) has granted you an option under
its 2022 Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock
indicated in your Grant Notice at the exercise price indicated in your Grant Notice. The option is granted to you effective as of the
date of grant set forth in the Grant Notice (the “Date of Grant”). If there is any conflict between the terms
in this Option Agreement and the Plan, the terms of the Plan will control. Capitalized terms not explicitly defined in this Option Agreement
or in the Grant Notice but defined in the Plan will have the same definitions as in the Plan.

 

The details of your option, in addition to those
set forth in the Grant Notice and the Plan, are as follows:

 

1.       VESTING.
Subject to the provisions contained herein, your option will vest as provided in your Grant Notice. Vesting will cease upon the termination
of your Continuous Service.

 

2.       NUMBER
OF SHARES AND EXERCISE PRICE. The number of shares of Common Stock subject to your option and your exercise price per share in your
Grant Notice will be adjusted for Capitalization Adjustments.

 

3.       EXERCISE
RESTRICTION FOR NON-EXEMPT EMPLOYEES.  If you are an Employee eligible for overtime compensation under the Fair Labor Standards
Act of 1938, as amended (that is, a “Non-Exempt Employee”), and except as otherwise provided in the Plan, you
may not exercise your option until you have completed at least six (6) months of Continuous Service measured from the Date of Grant, even
if you have already been an employee for more than six (6) months. Consistent with the provisions of the Worker Economic Opportunity Act,
you may exercise your option as to any vested portion prior to such six (6) month anniversary in the case of (i) your death or disability,
(ii) a Corporate Transaction in which your option is not assumed, continued or substituted, (iii) a Change in Control or (iv) your termination
of Continuous Service on your “retirement” (as defined in the Company’s benefit plans).

 

4.       METHOD
OF PAYMENT. You must pay the full amount of the exercise price for the shares you wish to exercise. You may pay the exercise price
in cash or by check, bank draft or money order payable to the Company or in any other manner permitted by your Grant Notice,
which may include one or more of the following:

 

(a)       Provided
that at the time of exercise the Common Stock is publicly traded, pursuant to a program developed under Regulation T as promulgated by
the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company
or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.  This manner
of payment is also known as a “broker-assisted exercise”, “same day sale”, or “sell to cover”.

 

(b)       Provided
that at the time of exercise the Common Stock is publicly traded, by delivery to the Company (either by actual delivery or attestation)
of already-owned shares of Common Stock that are owned free and clear of any liens, claims, encumbrances or security interests, and that
are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the sole discretion of the Company
at the time you exercise your option, will include delivery to the Company of your attestation of ownership of such shares of Common Stock
in a form approved by the Company. You may not exercise your option by delivery to the Company of Common Stock if doing so would violate
the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock.

 

 

 

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(c)       If
this option is a Nonstatutory Stock Option, subject to the consent of the Company at the time of exercise, by a “net exercise”
arrangement pursuant to which the Company will reduce the number of shares of Common Stock issued upon exercise of your option by the
largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price. You must pay any remaining
balance of the aggregate exercise price not satisfied by the “net exercise” in cash or other permitted form of payment. Shares
of Common Stock will no longer be outstanding under your option and will not be exercisable thereafter if those shares (i) are used to
pay the exercise price pursuant to the “net exercise,” (ii) are delivered to you as a result of such exercise, and (iii) are
withheld to satisfy your tax withholding obligations.

 

5.       WHOLE
SHARES. You may exercise your option only for whole shares of Common Stock.

 

6.       SECURITIES
LAW COMPLIANCE. In no event may you exercise your option unless the shares of Common Stock issuable upon exercise are then registered
under the Securities Act or, if not registered, the Company has determined that your exercise and the issuance of the shares would be
exempt from the registration requirements of the Securities Act. The exercise of your option also must comply with all other applicable
laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations (including any restrictions on exercise required for compliance with Treas. Reg.
1.401(k)-1(d)(3), if applicable).

 

7.       TERM.
You may not exercise your option before the Date of Grant or after the expiration of the option’s term. The term of your option
expires, subject to the provisions of Section 5(h) of the Plan, upon the earliest of the following:

 

(a)       immediately
upon the termination of your Continuous Service for Cause;

 

(b)       three
(3) months after the termination of your Continuous Service for any reason other than Cause, your Disability or your death (except as
otherwise provided in Section 7(d) below); provided, however, that if during any part of such three (3) month period your option is not
exercisable solely because of the condition set forth in Section 6 above, your option will not expire until the earlier of the Expiration
Date or until it has been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; provided
further, if during any part of such three (3) month period, the sale of any Common Stock received upon exercise of your option would violate
the Company’s insider trading policy, then your option will not expire until the earlier of the Expiration Date or until it has
been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service during which the sale of
the Common Stock received upon exercise of your option would not be in violation of the Company’s insider trading policy. Notwithstanding
the foregoing, if (i) you are a Non-Exempt Employee, (ii) your Continuous Service terminates within six (6) months after the Date of Grant,
and (iii) you have vested in a portion of your option at the time of your termination of Continuous Service, your option will not expire
until the earlier of (x) the later of (A) the date that is seven (7) months after the Date of Grant, and (B) the date that is three (3)
months after the termination of your Continuous Service, and (y) the Expiration Date;

 

(c)       twelve
(12) months after the termination of your Continuous Service due to your Disability (except as otherwise provided in Section 7(d)) below;

 

(d)       eighteen
(18) months after your death if you die either during your Continuous Service or within three (3) months after your Continuous Service
terminates for any reason other than Cause;

 

(e)       the
Expiration Date indicated in your Grant Notice; or

 

(f)       the
day before the tenth (10th) anniversary of the Date of Grant.

 

If your option is an Incentive Stock Option, note
that to obtain the federal income tax advantages associated with an Incentive Stock Option, the Code requires that at all times beginning
on the Date of Grant and ending on the day three (3) months before the date of your option’s exercise, you must be an employee of
the Company or an Affiliate, except in the event of your death or Disability. The Company has provided for extended exercisability of
your option under certain circumstances for your benefit but cannot guarantee that your option will necessarily be treated as an Incentive
Stock Option if you continue to provide services to the Company or an Affiliate as a Consultant or Director after your employment terminates
or if you otherwise exercise your option more than three (3) months after the date your employment with the Company or an Affiliate terminates.

 

 

 

    	 	4	 

     

    

 

8.       
EXERCISE.

 

(a)       You
may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so permits) during its term
by (i) delivering a Notice of Exercise (in a form designated by the Company) or completing such other documents and/or procedures designated
by the Company for exercise and (ii) paying the exercise price and any applicable withholding taxes to the Company’s Secretary,
stock plan administrator, or such other person as the Company may designate, together with such additional documents as the Company may
then require.

 

(b)       By
exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement
providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (i) the exercise
of your option, (ii) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise,
or (iii) the disposition of shares of Common Stock acquired upon such exercise.

 

(c)       If
your option is an Incentive Stock Option, by exercising your option you agree that you will notify the Company in writing within fifteen
(15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within
two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option.

 

(d)       By
accepting your option you agree that you will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares of Common Stock or other securities
of the Company held by you, for a period of one hundred eighty (180) days following the effective date of a registration statement of
the Company filed under the Securities Act or such longer period as the underwriters or the Company will request to facilitate compliance
with FINRA Rule 2711 or NYSE Member Rule 472 or any successor or similar rules or regulation (the “Lock-Up
Period”); provided, however, that nothing contained in this Section 8(d) will prevent the exercise of a repurchase option,
if any, in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other agreements as may be reasonably
requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto.
In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock
until the end of such period. You also agree that any transferee of any shares of Common Stock (or other securities) of the Company held
by you will be bound by this Section 8(d). The underwriters of the Company’s stock are intended third party beneficiaries of this
Section 8(d) and will have the right, power and authority to enforce the provisions hereof as though they were a party hereto.

 

9.       TRANSFERABILITY.
Except as otherwise provided in this Section 9, your option is not transferable, except by will or by the laws of descent and distribution,
and is exercisable during your life only by you.

 

(a)       Certain
Trusts. Upon receiving written permission from the Board or its duly authorized designee, you may transfer your option to a trust
if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law) while the option
is held in the trust.  You and the trustee must enter into transfer and other agreements required by the Company.

 

(b)       Domestic
Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you and the
designated transferee enter into transfer and other agreements required by the Company, you may transfer your option pursuant to the terms
of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury
Regulation 1.421-1(b)(2) that contains the information required by the Company to effectuate the transfer. You are encouraged to discuss
the proposed terms of any division of this option with the Company prior to finalizing the domestic relations order or marital settlement
agreement to help ensure the required information is contained within the domestic relations order or marital settlement agreement. 
If this option is an Incentive Stock Option, this option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

 

 

 

    	 	5	 

     

    

 

(c)       Beneficiary
Designation. Upon receiving written permission from the Board or its duly authorized designee, you may, by delivering written notice
to the Company, in a form approved by the Company and any broker designated by the Company to handle option exercises, designate a third
party who, on your death, will thereafter be entitled to exercise this option and receive the Common Stock or other consideration resulting
from such exercise. In the absence of such a designation, your executor or administrator of your estate will be entitled to exercise this
option and receive, on behalf of your estate, the Common Stock or other consideration resulting from such exercise.

 

10.       OPTION
NOT A SERVICE CONTRACT. Your option is not an employment or service contract, and nothing in your option will be deemed to create
in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate
to continue your employment. In addition, nothing in your option will obligate the Company or an Affiliate, their respective stockholders,
boards of directors, officers or employees to continue any relationship that you might have as a Director or Consultant for the Company
or an Affiliate.

 

11.       WITHHOLDING
OBLIGATIONS.

 

(a)       At
the time you exercise your option, in whole or in part, and at any time thereafter as requested by the Company, you hereby authorize withholding
from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “same
day sale” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted
by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate,
if any, which arise in connection with the exercise of your option.

 

(b)       If
this option is a Nonstatutory Stock Option, then upon your request and subject to approval by the Company, and compliance with any applicable
legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the
exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date
of exercise, not in excess of the maximum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid
classification of your option as a liability for financial accounting purposes). Notwithstanding the filing of such election, shares of
Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that
are otherwise issuable to you upon such exercise.  Any adverse consequences to you arising in connection with such share withholding
procedure shall be your sole responsibility.

 

(c)       You
may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, you
may not be able to exercise your option when desired even though your option is vested, and the Company will have no obligation to issue
a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein, if applicable,
unless such obligations are satisfied.

 

12.       TAX
CONSEQUENCES. You hereby agree that the Company does not have a duty to design or administer the Plan or its other compensation programs
in a manner that minimizes your tax liabilities. You will not make any claim against the Company, or any of its Officers, Directors, Employees
or Affiliates related to tax liabilities arising from your option or your other compensation. In particular, you acknowledge that this
option is exempt from Section 409A of the Code only if the exercise price per share specified in the Grant Notice is at least equal to
the “fair market value” per share of the Common Stock on the Date of Grant and there is no other impermissible deferral of
compensation associated with the option.

 

13.       NOTICES.
Any notices provided for in your option or the Plan will be given in writing (including electronically) and will be deemed effectively
given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States
mail, postage prepaid, addressed to you at the last address you provided to the Company. The Company may, in its sole discretion, decide
to deliver any documents related to participation in the Plan and this option by electronic means or to request your consent to participate
in the Plan by electronic means. By accepting this option, you consent to receive such documents by electronic delivery and to participate
in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the
Company.

 

 

 

    	 	6	 

     

    

 

14.       GOVERNING
PLAN DOCUMENT. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option,
and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be promulgated and adopted
pursuant to the Plan. If there is any conflict between the provisions of your option and those of the Plan, the provisions of the Plan
will control. In addition, your option (and any compensation paid or shares issued under your option) is subject to recoupment in accordance
with The Dodd—Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy
adopted by the Company and any compensation recovery policy otherwise required by applicable law.

 

15.       OTHER
DOCUMENTS. You hereby acknowledge receipt of and the right to receive a document providing the information required by Rule 428(b)(1)
promulgated under the Securities Act, which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s
policy permitting certain individuals to sell shares only during certain “window” periods and the Company’s insider
trading policy, in effect from time to time.

 

16.       EFFECT
ON OTHER EMPLOYEE BENEFIT PLANS. The value of this option will not be included as compensation, earnings, salaries, or other similar
terms used when calculating your benefits under any employee benefit plan sponsored by the Company or any Affiliate, except as such plan
otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any
Affiliate’s employee benefit plans.

 

17.       VOTING
RIGHTS. You will not have voting or any other rights as a stockholder of the Company with respect to the shares to be issued pursuant
to this option until such shares are issued to you. Upon such issuance, you will obtain full voting and other rights as a stockholder
of the Company. Nothing contained in this option, and no action taken pursuant to its provisions, will create or be construed to create
a trust of any kind or a fiduciary relationship between you and the Company or any other person.

 

18.       SEVERABILITY.
If all or any part of this Option Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid,
such unlawfulness or invalidity will not invalidate any portion of this Option Agreement or the Plan not declared to be unlawful or invalid.
Any Section of this Option Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed
in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining
lawful and valid.

 

19.       MISCELLANEOUS.

 

(a)       The
rights and obligations of the Company under your option will be transferable to any one or more persons or entities, and all covenants
and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns.

 

(b)       You
agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to
carry out the purposes or intent of your option.

 

(c)       You
acknowledge and agree that you have reviewed your option in its entirety, have had an opportunity to obtain the advice of counsel prior
to executing and accepting your option, and fully understand all provisions of your option.

 

(d)       This
Option Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

 

(e)       All
obligations of the Company under the Plan and this Option Agreement will be binding on any successor to the Company, whether the existence
of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of
the business and/or assets of the Company.

 

This Option Agreement will be deemed to be signed
by you upon the signing by you of the Stock Option Grant Notice to which it is attached.

 

 

 

 

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ATTACHMENT II

 

2022 EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ATTACHMENT III

 

NOTICE OF EXERCISE

 

	Aclarion, Inc.	Date of Exercise:	 	 

 

_____________

_____________

 

This constitutes notice to Aclarion, Inc. (the
“Company”) under my stock option that I elect to purchase the below number of shares of Common Stock of the
Company (the “Shares”) for the price set forth below.

 

	Type of option (check one):	 	Incentive ☐	 	Nonstatutory ☐
	 	 	 	 	 
	Stock option dated:	 	 	 	 
	 	 	 	 	 
	Number of Shares as to which option is exercised:	 	 	 	 
	 	 	 	 	 
	Certificates to be issued in name of:	 	 	 	 
	 	 	 	 	 
	Total exercise price:	 	$	 	 	$	 
	 	 	 	 	 	 	 
	Cash payment delivered herewith:	 	$	 	 	$	 
	 	 	 	 	 	 	 
	[Value of          Shares delivered herewith(1):	 	$	 	 	$	]
	 	 	 	 	 	 	 
	[Value of          Shares pursuant to net exercise(2):	 	$	 	 	$	]
	 	 	 	 	 	 	 
	[Regulation T Program (cashless exercise(3)):	 	$	 	 	$	]
	 	 	 	 	 	 	 

 

______________________

 

(1)       Shares must meet the public
trading requirements set forth in the option. Shares must be valued in accordance with the terms of the option being exercised, and must
be owned free and clear of any liens, claims, encumbrances or security interests.  Certificates must be endorsed or accompanied by
an executed assignment separate from certificate.

(2)       The option must be a Nonstatutory
Stock Option, and the Company must have established net exercise procedures at the time of exercise, in order to utilize this payment
method.

(3)       Shares must meet the public
trading requirements set forth in the option.

 

 

 

 

 

 

 

 

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By this exercise, I agree (i) to provide such additional
documents as you may require pursuant to the terms of the Aclarion, Inc. 2022 Equity Incentive Plan, (ii) to provide for the payment by
me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii)
if this exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition
of any of the Shares issued upon exercise of this option that occurs within two (2) years after the date of grant of this option
or within one (1) year after such Shares are issued upon exercise of this option.

 

	 	 
	 	Very truly yours,
	 	 
	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10Exhibit __

 

 

ACLARION, INC.

 

RESTRICTED STOCK UNIT
GRANT NOTICE

(2022 EQUITY INCENTIVE PLAN)

 

Aclarion, Inc. (the “Company”),
pursuant to its 2022 Equity Incentive Plan (the “Plan”), hereby awards to Participant a Restricted Stock Unit
Award for the number of shares of the Company’s Common Stock (“Restricted Stock Units”) set forth below
(the “Award”). The Award is subject to all of the terms and conditions as set forth in this notice of grant
(this “Restricted Stock Unit Grant Notice”), and in the Plan and the Restricted Stock Unit Award Agreement (the
“Award Agreement”), both of which are attached hereto and incorporated herein in their entirety. Capitalized
terms not explicitly defined herein shall have the meanings set forth in the Plan or the Award Agreement. In the event of any conflict
between the terms in this Restricted Stock Unit Grant Notice or the Award Agreement and the Plan, the terms of the Plan shall control.

 

Participant:

Date of Grant:

Vesting Commencement Date:

Number of Restricted Stock Units:

 

Vesting
Schedule:  [________________________________, subject to Participant’s Continuous Service through each such vesting date.]

 

Issuance
Schedule: Subject to any Capitalization Adjustment, one share of Common Stock (or its cash equivalent, at the discretion of the Company)
will be issued for each Restricted Stock Unit that vests at the time set forth in Section 6 of the Award Agreement.

 

Additional Terms/Acknowledgements: 
Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice, the Award Agreement and the
Plan. Participant further acknowledges that as of the Date of Grant, this Restricted Stock Unit Grant Notice, the Award Agreement and
the Plan set forth the entire understanding between Participant and the Company regarding the acquisition of the Common Stock pursuant
to the Award specified above and supersede all prior oral and written agreements on the terms of this Award, with the exception, if applicable,
of (i) restricted stock unit awards or options previously granted and delivered to Participant, (ii) the written employment agreement,
offer letter or other written agreement entered into between the Company and Participant specifying the terms that should govern this
specific Award, and (iii) any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law.

 

By accepting this Award, Participant acknowledges
having received and read the Restricted Stock Unit Grant Notice, the Award Agreement and the Plan and agrees to all of the terms and conditions
set forth in these documents. Participant consents to receive Plan documents by electronic delivery and to participate in the Plan through
an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

 

	ACLARION, INC.	PARTICIPANT:
	 	 
	By:	 	 	 
	 	Signature	 	Signature
	 	 	 	 
	Title:	 	 	Date:	 
	 	 	 	 
	Date:	 	 	 

 

ATTACHMENTS:
Award Agreement and 2022 Equity Incentive Plan

 

 

 

    	 	1	 

     

    

 

ATTACHMENT I

 

ACLARION, INC.

 

2022 EQUITY INCENTIVE
PLAN

RESTRICTED STOCK UNIT
AWARD AGREEMENT

 

Pursuant to the Restricted
Stock Unit Grant Notice (the “Grant Notice”) and this Restricted Stock Unit Award Agreement (the “Agreement”),
Aclarion, Inc. (the “Company”) has awarded you (“Participant”) a Restricted Stock
Unit Award (the “Award”) pursuant to the Company’s 2022 Equity Incentive Plan (the “Plan”)
for the number of Restricted Stock Units/shares indicated in the Grant Notice. Capitalized terms not explicitly defined in this Agreement
or the Grant Notice shall have the same meanings given to them in the Plan. The terms of your Award, in addition to those set forth in
the Grant Notice, are as follows.

 

1.       GRANT
OF THE AWARD. This Award represents the right to be issued on a future date one (1) share of Common Stock for each Restricted Stock
Unit that vests on the applicable vesting date(s) (subject to any adjustment under Section 3 below) as indicated in the Grant Notice.
As of the Date of Grant, the Company will credit to a bookkeeping account maintained by the Company for your benefit (the “Account”)
the number of Restricted Stock Units/shares of Common Stock subject to the Award. Notwithstanding the foregoing, the Company reserves
the right to issue you the cash equivalent of Common Stock, in part or in full satisfaction of the delivery of Common Stock in connection
with the vesting of the Restricted Stock Units, and, to the extent applicable, references in this Agreement and the Grant Notice to Common
Stock issuable in connection with your Restricted Stock Units will include the potential issuance of its cash equivalent pursuant to such
right. This Award was granted in consideration of your services to the Company.

 

2.       VESTING.
Subject to the limitations contained herein, your Award will vest, if at all, in accordance with the vesting schedule provided in the
Grant Notice. Vesting will cease upon the termination of your Continuous Service and the Restricted Stock Units credited to the Account
that were not vested on the date of such termination will be forfeited at no cost to the Company and you will have no further right, title
or interest in or to such Award or the shares of Common Stock to be issued in respect of such portion of the Award.

 

3.       NUMBER
OF SHARES. The number of Restricted Stock Units subject to your Award may be adjusted from time to time for Capitalization Adjustments,
as provided in the Plan. Any additional Restricted Stock Units, shares, cash or other property that becomes subject to the Award pursuant
to this Section 3, if any, shall be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on
transferability, and time and manner of delivery as applicable to the other Restricted Stock Units and shares covered by your Award. Notwithstanding
the provisions of this Section 3, no fractional shares or rights for fractional shares of Common Stock shall be created pursuant to this
Section 3. Any fraction of a share will be rounded down to the nearest whole share.

 

4.       SECURITIES
LAW COMPLIANCE. You may not be issued any Common Stock under your Award unless the shares of Common Stock underlying the Restricted
Stock Units are either (i) then registered under the Securities Act, or (ii) the Company has determined that such issuance would be exempt
from the registration requirements of the Securities Act. Your Award must also comply with other applicable laws and regulations governing
the Award, and you shall not receive such Common Stock if the Company determines that such receipt would not be in material compliance
with such laws and regulations.

 

5.       TRANSFER
RESTRICTIONS. Prior to the time that shares of Common Stock have been delivered to you, you may not transfer, pledge, sell or otherwise
dispose of this Award or the shares issuable in respect of your Award, except as expressly provided in this Section 5. For example, you
may not use shares that may be issued in respect of your Restricted Stock Units as security for a loan. The restrictions on transfer set
forth herein will lapse upon delivery to you of shares in respect of your vested Restricted Stock Units.

 

 

 

    	 	2	 

     

    

 

(a)       Death.
Your Award is transferable by will and by the laws of descent and distribution. At your death, vesting of your Award will cease and your
executor or administrator of your estate shall be entitled to receive, on behalf of your estate, any Common Stock or other consideration
that vested but was not issued before your death.

 

(b)       Domestic
Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you and the
designated transferee enter into transfer and other agreements required by the Company, you may transfer your right to receive the distribution
of Common Stock or other consideration hereunder, pursuant to a domestic relations order, marital settlement agreement or other divorce
or separation instrument as permitted by applicable law that contains the information required by the Company to effectuate the transfer.
You are encouraged to discuss the proposed terms of any division of this Award with the Company General Counsel prior to finalizing the
domestic relations order or marital settlement agreement to verify that you may make such transfer, and if so, to help ensure the required
information is contained within the domestic relations order or marital settlement agreement.

 

6.       DATE
OF ISSUANCE.

 

(a)       The
issuance of shares in respect of the Restricted Stock Units is intended to comply with Treasury Regulations Section 1.409A-1(b)(4) and
will be construed and administered in such a manner. Subject to the satisfaction of the Withholding Obligation set forth in Section 11
of this Agreement, in the event one or more Restricted Stock Units vests, the Company shall issue to you one (1) share of Common Stock
for each Restricted Stock Unit that vests on the applicable vesting date(s) (subject to any adjustment under Section 3 above, and subject
to any different provisions in the Grant Notice). Each issuance date determined by this paragraph is referred to as an “Original
Issuance Date”.

 

(b)       If
the Original Issuance Date falls on a date that is not a business day, delivery shall instead occur on the next following business day.
In addition, if:

 

(i)       the
Original Issuance Date does not occur (1) during an “open window period” applicable to you, as determined by the Company in
accordance with the Company’s then-effective policy on trading in Company securities, or (2) on a date when you are otherwise permitted
to sell shares of Common Stock on an established stock exchange or stock market (including but not limited to under a previously established
written trading plan that meets the requirements of Rule 10b5-1 under the Exchange Act and was entered into in compliance with the Company’s
policies (a “10b5-1 Arrangement”)), and

 

(ii)       either
(1) a Withholding Obligation does not apply, or (2) the Company decides, prior to the Original Issuance Date, (A) not to satisfy the Withholding
Obligation by withholding shares of Common Stock from the shares otherwise due, on the Original Issuance Date, to you under this Award,
and (B) not to permit you to enter into a “same day sale” commitment with a broker-dealer pursuant to Section 11 of this Agreement
(including but not limited to a commitment under a 10b5-1 Arrangement) and (C) not to permit you to pay your Withholding Obligation
in cash, then the shares that would otherwise be issued to you on the Original Issuance Date will not be delivered on such Original
Issuance Date and will instead be delivered on the first business day when you are not prohibited from selling shares of the Company’s
Common Stock in the open public market, but in no event later than December 31 of the calendar year in which the Original Issuance Date
occurs (that is, the last day of your taxable year in which the Original Issuance Date occurs), or, if and only if permitted in
a manner that complies with Treasury Regulations Section 1.409A-1(b)(4), no later than the date that is the 15th day of the third calendar
month of the applicable year following the year in which the shares of Common Stock under this Award are no longer subject to a “substantial
risk of forfeiture” within the meaning of Treasury Regulations Section 1.409A-1(d).

 

(c)       The
form of delivery (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Company.

 

7.       DIVIDENDS.
You shall receive no benefit or adjustment to your Award with respect to any cash dividend, stock dividend or other distribution that
does not result from a Capitalization Adjustment; provided, however, that this sentence will not apply with respect to any shares of Common
Stock that are delivered to you in connection with your Award after such shares have been delivered to you.

 

8.       RESTRICTIVE
LEGENDS. The shares of Common Stock issued in respect of your Award shall be endorsed with appropriate legends as determined by the
Company.

 

 

 

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9.       EXECUTION
OF DOCUMENTS. You hereby acknowledge and agree that the manner selected by the Company by which you indicate your consent to your
Grant Notice is also deemed to be your execution of your Grant Notice and of this Agreement. You further agree that such manner of indicating
consent may be relied upon as your signature for establishing your execution of any documents to be executed in the future in connection
with your Award.

 

10.       AWARD
NOT A SERVICE CONTRACT.

 

(a)       Nothing
in this Agreement (including, but not limited to, the vesting of your Award or the issuance of the shares in respect of your Award), the
Plan or any covenant of good faith and fair dealing that may be found implicit in this Agreement or the Plan shall: (i) confer upon you
any right to continue in the employ or service of, or affiliation with, the Company or an Affiliate; (ii) constitute any promise or commitment
by the Company or an Affiliate regarding the fact or nature of future positions, future work assignments, future compensation or any other
term or condition of employment or affiliation; (iii) confer any right or benefit under this Agreement or the Plan unless such right or
benefit has specifically accrued under the terms of this Agreement or Plan; or (iv) deprive the Company of the right to terminate you
at will and without regard to any future vesting opportunity that you may have.

 

(b)       By
accepting this Award, you acknowledge and agree that the right to continue vesting in the Award pursuant to the vesting schedule provided
in the Grant Notice may not be earned unless (in addition to any other conditions described in the Grant Notice and this Agreement) you
continue as an employee, director or consultant at the will of the Company and affiliate, as applicable (not through the act of being
hired, being granted this Award or any other award or benefit) and that the Company has the right to reorganize, sell, spin-out or otherwise
restructure one or more of its businesses or Affiliates at any time or from time to time, as it deems appropriate (a “reorganization”).
You acknowledge and agree that such a reorganization could result in the termination of your Continuous Service, or the termination of
Affiliate status of your employer and the loss of benefits available to you under this Agreement, including but not limited to, the termination
of the right to continue vesting in the Award. You further acknowledge and agree that this Agreement, the Plan, the transactions contemplated
hereunder and the vesting schedule set forth herein or any covenant of good faith and fair dealing that may be found implicit in any of
them do not constitute an express or implied promise of continued engagement as an employee or consultant for the term of this Agreement,
for any period, or at all, and shall not interfere in any way with the Company’s right to terminate your Continuous Service at any
time, with or without your cause or notice, or to conduct a reorganization.

 

11.       WITHHOLDING
OBLIGATION.

 

(a)       On
each vesting date, and on or before the time you receive a distribution of the shares of Common Stock in respect of your Restricted Stock
Units, and at any other time as reasonably requested by the Company in accordance with applicable tax laws, you hereby authorize any required
withholding from the Common Stock issuable to you and/or otherwise agree to make adequate provision, including in cash, for any sums required
to satisfy the federal, state, local and foreign tax withholding obligations of the Company or any Affiliate that arise in connection
with your Award (the “Withholding Obligation”).

 

(b)       By
accepting this Award, you acknowledge and agree that the Company or any Affiliate may, in its sole discretion, satisfy all or any portion
of the Withholding Obligation relating to your Restricted Stock Units by any of the following means or by a combination of such means:
(i) causing you to pay any portion of the Withholding Obligation in cash; (ii) withholding from any compensation otherwise payable to
you by the Company; (iii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to you in connection
with the Award with a Fair Market Value (measured as of the date shares of Common Stock are issued pursuant to Section 6) equal to the
amount of such Withholding Obligation; provided, however, that the number of such shares of Common Stock so withheld will not exceed the
amount necessary to satisfy the Withholding Obligation using the maximum statutory withholding rates for federal, state, local and foreign
tax purposes, including payroll taxes, that are applicable to supplemental taxable income; and provided, further, that to the extent
necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure
will be subject to the express prior approval of the Board or the Company’s Compensation Committee; and/or (iv) permitting or requiring
you to enter into a “same day sale” commitment, if applicable, with a broker-dealer that is a member of the Financial Industry
Regulatory Authority (a “FINRA Dealer”), pursuant to this authorization and without further consent, whereby
you irrevocably elect to sell a portion of the shares to be delivered in connection with your Restricted Stock Units to satisfy the Withholding
Obligation and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy the Withholding Obligation directly
to the Company and/or its Affiliates. Unless the Withholding Obligation is satisfied, the Company shall have no obligation to deliver
to you any Common Stock or any other consideration pursuant to this Award.

 

 

    	 	4	 

     

    

 

(c)       In
the event the Withholding Obligation arises prior to the delivery to you of Common Stock or it is determined after the delivery of Common
Stock to you that the amount of the Withholding Obligation was greater than the amount withheld by the Company, you agree to indemnify
and hold the Company harmless from any failure by the Company to withhold the proper amount.

 

12.       TAX
CONSEQUENCES. The Company has no duty or obligation to minimize the tax consequences to you of this Award and shall not be liable
to you for any adverse tax consequences to you arising in connection with this Award. You are hereby advised to consult with your own
personal tax, financial and/or legal advisors regarding the tax consequences of this Award and by signing the Grant Notice, you have agreed
that you have done so or knowingly and voluntarily declined to do so. You understand that you (and not the Company) shall be responsible
for your own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

13.       UNSECURED
OBLIGATION. Your Award is unfunded, and as a holder of a vested Award, you shall be considered an unsecured creditor of the Company
with respect to the Company’s obligation, if any, to issue shares or other property pursuant to this Agreement. You shall not have
voting or any other rights as a stockholder of the Company with respect to the shares to be issued pursuant to this Agreement until such
shares are issued to you pursuant to Section  6 of this Agreement. Upon such issuance, you will obtain full voting and other rights
as a stockholder of the Company. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or
be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.

 

14.       NOTICES.
Any notice or request required or permitted hereunder shall be given in writing (including electronically) and will be deemed effectively
given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States
mail, postage prepaid, addressed to you at the last address you provided to the Company. The Company may, in its sole discretion, decide
to deliver any documents related to participation in the Plan and this Award by electronic means or to request your consent to participate
in the Plan by electronic means. By accepting this Award, you consent to receive such documents by electronic delivery and to participate
in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the
Company.

 

15.       HEADINGS.
The headings of the Sections in this Agreement are inserted for convenience only and shall not be deemed to constitute a part of this
Agreement or to affect the meaning of this Agreement.

 

16.       MISCELLANEOUS.

 

(a)       The
rights and obligations of the Company under your Award shall be transferable by the Company to any one or more persons or entities, and
all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by, the Company’s successors and assigns.

 

(b)       You
agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to
carry out the purposes or intent of your Award.

 

(c)       You
acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel prior
to executing and accepting your Award and fully understand all provisions of your Award.

 

(d)       This
Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

 

(e)       All
obligations of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company.

 

 

 

    	 	5	 

     

    

 

17.       GOVERNING
PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award,
and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted
pursuant to the Plan. Your Award (and any compensation paid or shares issued under your Award) is subject to recoupment in accordance
with The Dodd—Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy
adopted by the Company and any compensation recovery policy otherwise required by applicable law. No recovery of compensation under such
a clawback policy will be an event giving rise to a right to voluntarily terminate employment upon a resignation for “good reason,”
or for a “constructive termination” or any similar term under any plan of or agreement with the Company.

 

18.       EFFECT
ON OTHER EMPLOYEE BENEFIT PLANS. The value of the Award subject to this Agreement shall not be included as compensation, earnings,
salaries, or other similar terms used when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the
Company or any Affiliate except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify,
or terminate any or all of the employee benefit plans of the Company or any Affiliate.

 

19.       SEVERABILITY.
If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness
or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this
Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give
effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

 

20.       OTHER
DOCUMENTS. You hereby acknowledge receipt or the right to receive a document providing the information required by Rule 428(b)(1)
promulgated under the Securities Act. In addition, you acknowledge receipt of the Company’s policy permitting certain individuals
to sell shares only during certain “window” periods and the Company’s insider trading policy, in effect from time to
time.

 

21.       AMENDMENT.
This Agreement may not be modified, amended or terminated except by an instrument in writing, signed by you and by a duly authorized representative
of the Company. Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which specifically states
that it is amending this Agreement, so long as a copy of such amendment is delivered to you, and provided that, except as otherwise expressly
provided in the Plan, no such amendment materially adversely affecting your rights hereunder may be made without your written consent.
Without limiting the foregoing, the Board reserves the right to change, by written notice to you, the provisions of this Agreement in
any way it may deem necessary or advisable to carry out the purpose of the Award as a result of any change in applicable laws or regulations
or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating
to that portion of the Award which is then subject to restrictions as provided herein.

 

22.       COMPLIANCE
WITH SECTION 409A OF THE CODE. This Award is intended to be exempt from the application of Section 409A of the Code, including
but not limited to by reason of complying with the “short-term deferral” rule set forth in Treasury Regulation Section
1.409A-1(b)(4) and any ambiguities herein shall be interpreted accordingly. Notwithstanding the foregoing, if it is determined that the
Award fails to satisfy the requirements of the short-term deferral rule and is otherwise not exempt from, and determined to be deferred
compensation subject to Section 409A of the Code, this Award shall comply with Section 409A to the extent necessary to avoid adverse personal
tax consequences and any ambiguities herein shall be interpreted accordingly. If it is determined that the Award is deferred compensation
subject to Section 409A and you are a “Specified Employee” (within the meaning set forth in Section 409A(a)(2)(B)(i) of the
Code) as of the date of your “Separation from Service” (as defined in Section 409A), then the issuance of any shares that
would otherwise be made upon the date of your Separation from Service or within the first six (6) months thereafter will not be made on
the originally scheduled date(s) and will instead be issued in a lump sum on the date that is six (6) months and one day after the date
of the Separation from Service, with the balance of the shares issued thereafter in accordance with the original vesting and issuance
schedule set forth above, but if and only if such delay in the issuance of the shares is necessary to avoid the imposition of adverse
taxation on you in respect of the shares under Section 409A of the Code. Each installment of shares that vests is intended to constitute
a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

* * * * *

 

This Restricted Stock
Unit Award Agreement shall be deemed to be signed by the Company and the Participant upon the signing by the Participant of the Restricted
Stock Unit Grant Notice to which it is attached.

 

 

 

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ATTACHMENT II

 

2022 EQUITY INCENTIVE
PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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