Document:

lanar-employmentagreemen

EMPLOYMENT AGREEMENT    THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of December ___, 2022 (the  “Effective Date”), is entered into by and between, Warehouse Goods LLC, a Delaware corporation (the  “Company”), and Lana Reeve (the “Employee”). (Company and Employee are sometimes individually  referred to herein as a “Party” and collectively as the “Parties”).    WHEREAS, the Company and the Employee desire to enter into an employment agreement to set  forth the terms and conditions of Employee’s employment with the Company starting on the Effective  Date.   NOW, THEREFORE, in consideration of the foregoing recitals, which are made a part hereof, the  mutual covenants contained herein, and for other good and valuable consideration, the receipt and  sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:  1. Employment Term.  Unless terminated earlier in accordance with Section 4 hereof,  Employee’s employment with the Company pursuant to this Agreement shall be for an initial term of one  (1) year commencing on the Effective Date and ending on the first (1st) anniversary of the Effective Date  (the “Initial Term”). Thereafter, this Agreement shall be automatically renewed for successive one-year  terms commencing on the applicable anniversary of the Effective Date (each such successive year being a  “Renewal Term,” and, together with the Initial Term, or such lesser period in the event of termination of  Employee’s employment prior to the expiration of the Initial Term or a Renewal Term by a Party pursuant  to the provisions of this Agreement, the “Employment Term”), unless either Party gives written notice to  the other Party not less than sixty (60) days prior to the end of the Initial Term or a Renewal Term, as the  case may be, of such Party’s election not to renew this Agreement (“Notice of Non-Renewal”).    2. Position and Duties; Exclusive Employment; Principal Location; No Conflicts.    (a) Position and Duties.  During the Employment Term, the Employee shall serve as  Chief Finance & Legal Officer for the Company, reporting directly to the Company’s Chief Executive  Officer (the “CEO”), and shall have such duties, authority, and responsibility as shall be assigned and  determined from time to time by the CEO, including duties and responsibilities for the Company and its  current and any future parent, subsidiaries and affiliates, including but not limited to Greenlane Holdings,  Inc. (“Greenlane”) and Greenlane Holdings, LLC (formerly known as Jacoby Holdings, LLC), (the  Company and its current and any future parent, subsidiaries and affiliates are collectively referred to herein  as the “Company Group”) without additional compensation or benefits other than as set forth in this  Agreement.   (b) Exclusive Employment.  Except as permitted under this section, Employee agrees  to devote Employee’s full business time and attention exclusively to the performance of Employee’s duties  hereunder and in furtherance of the business of the Company Group.  Employee shall (i) perform  Employee’s duties and responsibilities hereunder honestly, in good faith, to the best of Employee’s  abilities in a diligent manner, and in accordance with the Company Group’s policies and applicable law,  (ii) promote the success of the Company Group, (iii) not do anything, or permit anything to be done at  Employee’s direction, that is intended to be inconsistent with Employee’s duties to the Company Group  or opposed to the best interests of the Company Group or which is a conflict of interest, and (iv) not be or  become an officer, director, manager, employee, advisor, or consultant of any business other than that of  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 6 

 

      2  the Company Group, unless the Employee receives advance written approval from the CEO and any other  approvals required under the written policies of the Company Group. Employee shall not, during  Employee’s employment with the Company, be involved directly or indirectly, in any manner, as a partner,  officer, director, stockholder, member, manager, consultant, advisor, investor, creditor or employee for  any company engaged in a substantially similar business to the Company Group; however, Employee may  use Employee’s personal funds to invest in a publicly traded company that engages in a similar business,  but shall not own more than two (2%) percent of the stock thereof.  Notwithstanding the foregoing,  Employee may engage in civic and not-for-profit activities, as long as such activities do not interfere with  Employee’s performance of Employee’s duties to the Company Group or the commitments made by  Employee in this Section 2(b).  (c) Principal Location; Travel.  During the Employment Term, the Employee shall  perform the duties and responsibilities required by this Agreement at the Company Group’s offices located  in Tustin, California, or such other location as determined within the sole discretion of the Board of  Directors of Greenlane (the “Board”), and will be required to travel to other locations, including  internationally, as may be necessary to fulfill the Employee’s duties and responsibilities hereunder.   (d) No Conflict.  Employee represents and warrants to the Company that Employee has  the capacity to enter into this Agreement, and that the execution, delivery and performance of this  Agreement by Employee will not violate any agreement, undertaking or covenant to which Employee is  party or is otherwise bound, including any obligations with respect to non-competition, non-solicitation,  or proprietary or confidential information of any other person or entity.  3. Compensation; Benefits.   (a) Base Salary.  During the Employment Term, the Company shall pay to Employee  an annualized base salary of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) (the “Base  Salary”), which shall be payable in regular installments in accordance with the Company’s customary  payroll practices and procedures, but in no event less frequently than monthly, and prorated for any partial  year worked.  The Base Salary is subject to review annually throughout the Employment Term by the  Compensation Committee (the “Compensation Committee”) of the Board and the Board and may be  subject to increase in the Board’s discretion.  (b) Inducement Equity Award. On the Effective Date, or as soon as reasonably  practicable thereafter, Employee shall receive an award of Fifty Thousand (50,000) shares of restricted  stock under the Plan (as defined below) (the “Inducement Equity Award”) to induce the Employee to enter  this Agreement. The Inducement Award shall be unvested at the time of grant and shall vest fifty percent  (50%) on the six (6) month anniversary and fifty percent (50%) on the twelve (12)-month anniversary of  the Effective Date.  (c) Incentive Compensation.    (i) Annual Bonus.   (A) Amount. For each complete fiscal year during the Employment  Term Employee shall be eligible to receive an annual performance-based bonus (the “Annual Bonus”)  based upon achieved Company performance metrics for the given fiscal year and/or Employee  achievement of identified individual performance goals, all as determined by the Compensation  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      3  Committee within the first quarter of such applicable fiscal year during the Employment Term. As of the  Effective Date, the Employee’s annual target bonus opportunity shall be equal to sixty percent (60%) of  Base Salary. The terms, amount, and award of an Annual Bonus is within the sole discretion, and subject  to the approval, of the Compensation Committee.    (B) Timing of Payment. The Annual Bonus shall be paid in the  immediately following fiscal year to the fiscal year to which the Annual Bonus relates at the same time  bonuses are paid to other executives of the Company, but in no event later than ten (10) weeks following  the end of the fiscal year to which the Annual Bonus relates.   (C) Form of Payment. In the Compensation Committee's complete and  sole discretion, an Annual Bonus may be (I) paid in cash, (II) by the issuance of Awards under the  Greenlane Holdings, Inc. 2019 Equity Incentive Plan (or any successor plan thereto) (the “Plan”), or (III)  any combination of (I) and (II).  (D) Conditions to Payment.  To be eligible to receive such Annual  Bonus, Employee must (I) remain continuously employed with and by the Company (or any member of  the Company Group) through the last day of the fiscal year to which the Annual Bonus relates, and (II) be  in good standing with the Company (and all members of the Company in the same controlled group) (i.e.,  not under any type of performance improvement plan, disciplinary suspension, final warning, or the like)  as of the last day of the fiscal year to which the Annual Bonus relates. Unless otherwise provided in this  Agreement, if Employee incurs a termination of employment prior to the last day of the fiscal year to  which the Annual Bonus relates, Employee shall not be entitled to any Annual Bonus for such fiscal year.   (ii) Equity Award.   (A) Amount of Annual Equity Award.  Employee may be eligible to  receive long term equity incentive compensation award as determined by the Compensation Committee  in its sole discretion under the Greenlane Holdings, Inc. 2019 Equity Incentive Plan (or any successor plan  thereto) (the “Plan”) for each fiscal year during the Employment Term (an “Annual Equity Award”). With  input from the Company, the Annual Equity Award will be determined under the equity grant policies  established by the Compensation Committee taking into consideration current market practice,  affordability, performance, as well as other factors determined by the Compensation Committee to be  relevant, and shall be subject to the underlying terms and conditions of the Plan. Notwithstanding the  foregoing, any Award Agreement (as defined in Section 11(f) of the Plan) shall provide that in the event  of a Change in Control (as defined in Section 11(h) of the Plan), one hundred percent (100%) of any  Annual Equity Award and/or Inducement Equity Award granted to the Employee shall fully vest and, if  applicable, become fully exercisable immediately before the Closing.  (B) Grant. Each Annual Equity Award shall be granted prior to April 1  each year, provided, however, that such grant cannot become effective until formal action is taken with  respect to such grant by the Compensation Committee.  The Company will take commercially reasonable  efforts to coordinate with the Compensation Committee to take grant action for each Annual Equity Award  as soon as administratively practicable prior to April 1.    (iii) Clawback Provisions. Notwithstanding anything to the contrary contained  herein and without limiting any other rights and remedies of the Company or Greenlane (including as may  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      4  be required by law), if Employee has engaged in fraud or other willful misconduct that contributes  materially to any financial restatements or material loss to the Company or Greenlane (or any member of  the Company Group), the Company (with respect to the Annual Bonuses) or Greenlane (with respect to the  Annual Equity Awards and the Inducement Equity Grant) shall recover, for the 3-year period preceding  the date on which the Company or Greenlane (or any member of the Company Group), as the case may be,  is required to prepare the account restatements, the amount by which any incentive compensation paid to  Employee exceeded the lower amount that would have been payable to Employee after giving effect to the  restated financial results or the material loss, in one or more of the following methods:   (A) Require repayment by Employee of any Annual Bonus (net of any  taxes paid by Employee on such payments) previously paid to Employee,    (B) Cancel any earned but unpaid Annual Bonus or unissued Annual  Equity Award,    (C) Rescind the exercise and/or vesting of any Inducement Equity  Award and/or Annual Equity Award and the delivery of shares of Greenlane’s common stock upon such  exercise or vesting,   (D) Cause all outstanding unvested and unexercised equity rights under  the Plan, that are currently held by Employee, to be terminated and become null and void, or   (E) Adjust the future compensation of Employee to recover the amount.    In addition, the Employee’s Annual Bonus, Inducement Equity Award and Annual Equity Award shall be  subject to any other clawback or recoupment policy of the Company, Greenlane or the Plan, as the case  may be, as may be in effect from time to time, including for fraud or other willful misconduct that  contributes materially to any financial restatements or material loss to the Company, or any clawback or  recoupment as may be required by applicable law.  (d) Welfare Benefit Plans.  During the Employee’s employment with the Company, the  Employee shall be eligible for participation in the welfare benefit plans, practices, policies and programs  (including, if applicable, medical, dental, disability, employee life, group life and accidental death  insurance plans and programs) that are maintained by, contributed to or participated in by the Company,  subject in each instance to the underlying terms and conditions (including plan eligibility provisions) of  such plans, practices, policies and programs.  (e) Expenses.  Subject to Section 24 below, during the Employee’s employment with  the Company, the Employee shall be entitled to reimbursement of all documented reasonable business  expenses incurred by the Employee in accordance with the policies, practices and procedures of the  Company applicable to employees of the Company, as in effect from time to time.  (f) Fringe Benefits.  During the Employment Term, the Employee shall be eligible to  receive such fringe benefits and perquisites as are provided by the Company, in its sole discretion, to its  employees from time to time, in accordance with the policies, practices and procedures of the Company.  (g) Paid Time Off.  During the Employment Term, Employee shall be entitled to paid  time off as needed, in accordance with the plans, policies, programs and practices of the Company  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      5  applicable to its executives, and, in each case, subject to the prior consent of the CEO or the CEO’s  designee.  (h) Withholding Taxes.  All forms of compensation paid or payable to the Employee  from the Company or the Company Group, whether under this Agreement or otherwise, are subject to  reduction to reflect applicable withholding and payroll taxes pursuant to any applicable law or regulation.  4. Termination.  This Agreement and Employee’s employment with the Company may be  terminated in accordance with any of the following provisions.  (a) Expiration of Employment Term.  This Agreement and Employee’s employment  with the Company will terminate upon expiration of the Employment Term following Notice of Non- Renewal provided by either Party to the other Party in accordance with Section 1 hereof.  Any Notice of  Non-Renewal given by the Company to the Employee shall constitute a termination of this Agreement by  the Company without Cause. Any Notice of Non-Renewal given by the Employee to the Company shall  constitute a resignation by the Employee.  (b) Termination By the Company Without Cause. The Company may terminate this  Agreement and Employee’s employment with the Company at any time without Cause (as defined in  Section 4(d)) by providing written notice of termination to Employee.  (c) Resignation By Employee Not for Good Reason.  Employee may terminate this  Agreement and Employee’s employment with the Company for any reason, by providing written notice  to the Company at least ninety (90) days prior to the effective date of termination (the “Notice Period”).  During the Notice Period, Employee shall continue to perform the duties of Employee’s position and the  Company shall continue to compensate Employee as set forth herein.  Notwithstanding the foregoing, if  Employee provides the Company with notice of termination pursuant to this Section 4(c), the Company  will have the option of requiring Employee to immediately vacate the Company’s premises and cease  performing Employee’s duties hereunder.  If the Company so elects this option, then the Company will  be obligated to provide the compensation and benefits hereunder to Employee for the duration of the  Notice Period.   (d) Termination By the Company For Cause. The Company may immediately  terminate this Agreement and Employee’s employment with the Company for Cause, which shall be  effective upon delivery by the Company of written notice to Employee of such termination, subject to any  cure period as required herein.  For purposes of this Agreement, “Cause” shall mean, with respect to the  Employee, one or more of the following: (i) the conviction of the Employee of the commission of a felony  or other crime involving moral turpitude (including pleading guilty or no contest to such crime), whether  or not such felony or other crime was committed in connection with the business of the Company Group;  (ii) the commission of any act or omission involving willful misconduct, moral turpitude,  misappropriation, embezzlement, dishonesty, or fraud in connection with the performance of the  Employee’s duties and responsibilities hereunder; (iii) reporting to work under the influence of alcohol or  illegal drugs, or other conduct causing the Company Group public disgrace or disrepute, whether in  conjunction with the performance of Employee’s duties on behalf of the Company Group or otherwise;  (iv) willful failure or refusal to perform material duties and responsibilities as reasonably directed by the  CEO or Board; (v) any act or omission deliberately aiding or abetting a competitor of the Company Group  to the disadvantage or detriment of the Company Group; (vi) breach of any applicable fiduciary duty to  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      6  the Company Group; or (vii) any other material breach of this Agreement.  The Company shall not have  the right to terminate for Cause under subsections (iii), (iv) or (vii) of this Section 4(d) unless and until  the Company provides Employee written notice containing detailed reasons for the Cause termination and  at least fifteen (15) days to cure any act or omission constituting Cause pursuant to such subsections prior  to the effective termination date, provided however that the act or omission is, in fact, curable. In no event  shall the Employee have more than one cure opportunity with respect to the recurrence of the same or  similar actions or inactions constituting Cause.  (e) Termination as a Result of Death or Disability of Employee.  This Agreement and  the Employee’s employment with the Company shall terminate automatically upon the date of the  Employee’s death without notice by or to either Party. This Agreement and the Employee’s employment  with the Company shall be terminated upon thirty (30) days’ written notice by the Company to the  Employee that the Company has made a good faith determination that the Employee has a Disability that  cannot be accommodated under the requirements of law.  For purposes of this Agreement, “Disability”  means the incapacity or inability of the Employee, whether due to accident, sickness or otherwise, as  confirmed in writing by a medical doctor acceptable to the Company, to perform the essential functions  of the Employee’s position under this Agreement, even with reasonable accommodation, for ninety (90)  consecutive days OR an aggregate of one hundred eighty (180) days during any twelve (12) month period  of the Employee’s employment with the Company provided however, in the event that the Company  temporarily replaces Employee, or transfers the Employee’s duties or responsibilities to another individual  on account of the Employee’s inability to perform such duties due to an incapacity which is, or is  reasonably expected to become, a Disability, then the Employee’s employment shall not be deemed  terminated by the Company and Employee shall not be able to resign with Good Reason as a result thereof  (for the avoidance of doubt, the Employee shall resume her employment under this Agreement upon her  return from any such temporary inability to perform such duties or physical incapacity that does not  become a Disability).  Upon written request by the Company, the Employee shall, as soon as practicable,  provide the Company with medical documentation and other information sufficient to enable the Company  to determine whether the Employee has a Disability.    (f) Termination by Employee for Good Reason.  Employee may terminate this  Agreement at any time for Good Reason, provided that the Company shall have ten (10) days from such  notice of termination in which to cure (if curable) any act or omission constituting Good Reason pursuant  to subsections (i) to (iv) below prior to the effective termination date. For purposes of this Agreement,  “Good Reason” means:  (i) a material diminution in the Employee’s base compensation;  (ii) a material diminution in the Employee’s title, authority, duties or  responsibilities;  (iii) a material change in the geographic location at which the Employee must  perform services;   (iv) any action or inaction that constitutes a material breach by the Company  of this Agreement;   DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      7  (v) the Company’s failure in any year to increase Employee’s Base Salary  by percentage at least as great as the cost-of-living adjustment published by the United States  Social Security Administration; or  (v) harassment, discrimination or other behavior towards Employee that  reasonably would give rise to a claim for constructive discharge under applicable law.  5. Obligations of the Company Upon Termination.  (a) Termination By the Company Without Cause or By the Employee for Good  Reason. If the Employee incurs a “separation from service” from the Company (within the meaning of  Section 409A(a)(2)(A)(i) of the Code and Treasury Regulation Section 1.409A-1(h)) (a “Separation from  Service”) during the Employment Term, by reason of a termination of the Employee’s employment by the  Company without Cause, the Employee’s resignation for Good Reason, the Company shall provide (x)  the Accrued Obligations (as defined below); and:   (i) The Company shall pay Employee within thirty (30) days after the effective  date of termination or by such earlier date if required by applicable law, (A) the aggregate amount of  Employee’s earned but unpaid Base Salary then in effect, (B) incurred but unreimbursed documented  reasonable reimbursable business expenses through the date of such termination, and (C) any other  amounts due under applicable law, in each case earned and owing through the date of termination (the  “Accrued Obligations”).  (ii) In addition to the Accrued Obligations, the Company shall pay to Employee  the amount of any Annual Bonus earned, but not yet paid, with respect to the fiscal year prior to the fiscal  year in which the date of termination of Employee’s employment with the Company occurs which such  payment shall be made to Employee in accordance with Section 3(b) hereof (the “Earned Bonus”) and (ii)  the amount of the Annual Bonus at fifty percent (50%) of the maximum eligibility, pro-rated based on the  number of the days in the calendar year in which Employee was employed for that calendar year to which  the bonus relates, which sum shall be paid within fifteen (15) days after the Release (as defined in Section  5(a)(iii)) becomes effective.   (iii) In addition to the Accrued Obligations, subject to (A) Section 5(c) below,  (B) the Employee timely signing, delivering, and not revoking (if applicable) the Release (as defined in  this Section 5(a)(iii)), and (C) the Employee’s compliance with the Employee’s post-termination  obligations in Sections 6, 8, 9, 10, and 11 hereof following the termination of Employee’s employment  with the Company, and (D) the Employee being employed or a period of at least six (6) months, the  Company shall pay to the Employee: (a) severance equal to four (4) months of the Base Salary in effect  on the date of termination, which shall be payable in equal installments in accordance with the Company’s  regular payroll practices and subject to all customary withholding and deductions; and (b) pay to the  Employee a cash payment in an amount equal to the applicable COBRA premium payments (as reasonably  determined by the Administrator as of the time of Employee’s termination of employment) that would be  payable by the Employee to continue the Employee’s company-provided medical, dental, and/or vision  coverage for the Participant and any dependents covered at the time of termination, for four (4) months;  (the foregoing benefits collectively referred to as the “Severance”).   DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      8  Notwithstanding the foregoing, it shall be a condition to the Employee’s right to receive the  Severance that the Employee execute and deliver to the Company an effective general release of claims  in a form prescribed by the Company, which form shall include, among customary terms and conditions,  the survival of Employee’s post-termination obligations in Sections 6, 8, 9, 10, and 11 of this Agreement  following termination of Employee’s employment with the Company (the “Release”), within twenty-one  (21) days (or, to the extent required by law, forty-five (45) days) following the date of termination of  Employee’s employment with the Company, and that the Employee not revoke such Release during any  applicable revocation period (the combined review period and revocation period hereinafter referred to as  the “Consideration Period”). Subject to Section 5(c) below, upon timely execution, delivery and non- revocation of the Release by Employee, the installment payments of the Severance shall begin on the first  normal payroll date that is after the later of (I) the date on which the Employee delivered to the Company  the Release signed by the Employee, or (II) the end of any applicable revocation period (unless a longer  period is required by law).  Notwithstanding the foregoing, if the earliest payment date determined under  the preceding sentence is in one taxable year of the Employee and the latest possible payment date is in a  second taxable year of the Employee, the first installment payment of Severance shall be made on the first  normal payroll date that immediately follows the last date of the Consideration Period.   (b) Termination By the Employee For Any Reason Other Than Good Reason;  Termination By the Company For Cause; Termination Due to Death or Disability of Employee.  If the  Employee terminates the Employee’s employment and this Agreement for any reason other than Good  Reason, the Company terminates the Employee’s employment and this Agreement for Cause, or due to  the Employee’s death or Disability, then the Company’s obligation to compensate the Employee shall in  all respects cease as of the date of termination, except that the Company shall pay to the Employee (or the  Employee’s estate in the event of death) (i) the Accrued Obligations within thirty (30) days after the  effective date of termination (or by such earlier date if required by applicable law), and (ii) the Earned  Bonus for the prior year, if any, in accordance with Section 3(b) hereof.   (c) Six-Month Delay.  To the maximum extent permitted under Section 409A of the  Code, the Severance payable under Section 5(a)(iii) is intended to comply with the “separation pay  exception” under Treas. Reg. §1.409A-1(b)(9)(iii).  To the extent the overall Severance payable under  Section 5(a)(iii) does not qualify for the “separation pay exception,” then notwithstanding anything to the  contrary in this Agreement, no compensation or benefits, including without limitation any Severance  payable under Section 5(a)(iii) hereof, shall be paid to the Employee during the six (6)-month period  following the Employee’s termination of employment with the Company if the Company determines that  paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution  under paragraph (a)(2)(B)(i) of Section 409A of the Internal Revenue Code of 1986, as amended (“Section  409A of the Code”).  If the payment of any such amounts is delayed as a result of the previous sentence,  then on the first business day following the end of such six (6) month period (or such earlier date upon  which such amount can be paid under Section 409A of the Code without resulting in a prohibited  distribution, including as a result of the Employee’s death), the Company shall pay the Employee a lump- sum amount equal to the cumulative amount that would have otherwise been payable to the Employee  during such delay period (without interest).    (d) Exclusive Benefits.  Notwithstanding anything to the contrary set forth herein,  except as expressly provided in this Section 5, the Employee shall not be entitled to any additional  payments or benefits upon or in connection with the Employee’s termination of employment with the  Company.  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      9  6. Non-Disclosure of Confidential Information.  (a) Confidential Information. The Employee acknowledges that in the course of the  Employee’s employment with the Company Group, the Employee previously was provided with, had  access to, accessed, and used Confidential Information (as defined herein) of the Company Group.   Employee further acknowledges that in the course of Employee’s continuing employment with the  Company, the Employee will use, have access to, and develop Confidential Information (as defined  herein) of the Company Group.  For purposes of this Agreement, “Confidential Information” shall mean  and include all information, whether written or oral, tangible or intangible (in any form or format), of a  private, secret, proprietary or confidential nature, of or concerning the Company Group or the business or  operations of the Company Group, including without limitation:  any trade secrets or other confidential or  proprietary information which is not publicly known or generally known in the industry; the identity,  background, and preferences of any current, former, or prospective clients, suppliers, vendors, referral  sources, and business affiliates; pricing and financial information; current and prospective client, supplier,  or vendor lists and leads; proposals with prospective clients, suppliers, vendors, or business affiliates;  contracts with clients, suppliers, vendors or business affiliates; marketing plans; brand standards  guidelines; proprietary computer software and systems; marketing materials and information; information  regarding corporate opportunities; operating and business plans and strategies; research and development;  policies and manuals; personnel information of employees that is private and confidential; any information  related to the compensation of employees, consultants, agents or representatives of the Company Group;  sales and financial reports and forecasts; any information concerning any product, technology or  procedure employed by the Company Group but not generally known to its current or prospective clients,  suppliers, vendors or competitors, or under development by or being tested by the Company Group; any  inventions, innovations or improvements covered by Section 9 hereof; and information concerning  planned or pending acquisitions or divestitures.  Notwithstanding the foregoing, the term Confidential  Information shall not include information which (A) becomes available to Employee from a source other  than the Company Group or from third parties with whom the Company Group is not bound by a duty of  confidentiality, or (B) becomes generally available or known in the industry other than as a result of its  disclosure by Employee.    (i) During the course of Employee’s employment with the Company,  Employee agrees to use Employee’s best efforts to maintain the confidentiality of the Confidential  Information, including adopting and implementing all reasonable procedures prescribed by the Company  Group to prevent unauthorized use of Confidential Information or disclosure of Confidential Information  to any unauthorized person.  (ii) Employee agrees that all Confidential Information shall be the Company  Group’s sole property during and after Employee’s employment with the Company.  Employee agrees  that Employee will not remove any hard copies of Confidential Information from the Company Group’s  premises, will not download, upload, or otherwise transfer copies of Confidential Information to any  external storage media, cloud storage, personal email address of Employee or email address that is not  owned by the Company Group (except as necessary in the performance of Employee’s duties for the  Company Group and for the Company Group’s sole benefit), and will not print hard copies of any  Confidential Information that Employee accesses electronically from a remote location (except as  necessary in the performance of Employee’s duties for the Company Group and for the Company Group’s  sole benefit).    DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      10  (iii) Other than as contemplated in Section 6(a)(iv) below, in the event that  Employee becomes legally obligated to disclose any Confidential Information to anyone other than to the  Company Group, Employee will provide the Company with prompt written notice thereof so that the  Company may seek a protective order or other appropriate remedy and Employee will cooperate with and  assist the Company in securing such protective order or other remedy.  In the event that such protective  order is not obtained, or that the Company waives compliance with the provisions of this Section 6(a)(iii)  to permit a particular disclosure, Employee will furnish only that portion of the Confidential Information  which Employee is legally required to disclose.    (iv) Nothing in this Agreement or any other agreement with the Company  containing confidentiality provisions shall be construed to prohibit Employee from: filing a charge with,  participating in any investigation or proceeding conducted by, or cooperating with the Equal Employment  Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health  Administration, the Securities and Exchange Commission or any other federal, state or local government  agency charged with enforcement of any law, rule or regulation (“Government Agencies”); reporting  possible violations of any law, rule or regulation to any Government Agencies; making other disclosures  that are protected under whistleblower provisions of any law, rule or regulation; or receiving an award for  information provided to any Government Agencies.  Employee acknowledges that an individual shall not  be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade  secret that: (A) is made in confidence to a federal, state, or local government official, either directly or  indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected  violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if  such filing is made under seal.  Employee further acknowledges that an individual who files a lawsuit for  retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the  attorney of the individual and use the trade secret information in the court proceeding, if the individual:  (1) files any document containing the trade secret under seal; and (2) does not disclose the trade secret,  except pursuant to court order.  (b) Restrictions On Use And Disclosure Of Confidential Information.  At all times  during Employee’s employment with the Company and after Employee’s employment with Company  terminates, regardless of the reason for termination, Employee agrees: (i) not to use, permit use of, discuss,  disclose, transfer, or disseminate in any manner any Confidential Information, except as necessary in the  performance of Employee’s duties for the Company Group and for the Company Group’s sole benefit;  (ii) not to make, or cause to be made, copies (in any form or format) of the Confidential Information,  except as necessary in the performance of Employee’s duties for the Company Group and for the Company  Group’s sole benefit; and (iii) to promptly and fully advise the Company of all facts known to Employee  concerning any actual or threatened unauthorized use of the Confidential Information or disclosure of the  Confidential Information to any unauthorized person about which Employee becomes aware.  The  restrictions contained in this Section 6(b) also apply to Confidential Information developed by Employee  during Employee’s employment with the Company, which are related to the Company Group or to the  Company Group’s successors or assigns, as such information is developed for the benefit of and ownership  of the Company Group and all rights and privileges to such information or derivative works, including but  not limited to trademarks, patents and copyrights remain with the Company Group.    (c) Third Party Information.  Employee acknowledges that during the course of  Employee’s employment with the Company, Employee may have already received or had access to, and  may continue to receive or have access to, confidential or proprietary information belonging to third  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      11  parties (“Third Party Information”). During the Employment Term and thereafter, Employee agrees: (i) to  hold the Third Party Information in the strictest confidence, take all reasonable precautions to prevent the  inadvertent disclosure of the Third Party Information to any unauthorized person, and follow all of the  Company’s policies regarding protecting the Third Party Information; (ii) not to use, permit use of,  discuss, disclose, transfer, or disseminate in any manner any Third Party Information, except as necessary  in the performance of Employee’s duties for the Company Group; (iii) not to make, or cause to be made,  copies (in any form or format) of the Third Party Information, except as necessary in the performance of  Employee’s duties for the Company Group; and (iv) to promptly and fully advise the Company of all facts  known to the Employee concerning any actual or threatened unauthorized use of the Third Party  Information or disclosure of the Third Party Information to any unauthorized person about which  Employee becomes aware.  (d) Return of Confidential Information and Property.  Upon termination of Employee’s  employment with the Company, notwithstanding the reason or cause of termination, and at any other time  upon written request by the Company, Employee shall promptly return to the Company all originals,  copies, or duplicates, in any form or format (whether paper, electronic or other storage media), of the  Confidential Information and the Third Party Information, as well as any and all other documents,  computer discs, computer data, equipment, and property of the Company Group (including, but not limited  to, cell phones, credit cards, and laptop computers if they have been provided to Employee), relating in  any way to the business of the Company Group or in any way obtained by Employee during the course of  Employee’s employment with the Company. Employee further agrees that after termination of  Employee’s employment with the Company, Employee shall not retain any copies, notes, or abstracts in  any form or format (whether paper, electronic or other storage media) of the Confidential Information, the  Third Party Information, or other documents or property belonging to the Company Group.  7. [Intentionally Omitted]  8. Non-Disparagement.  Employee and Company agree that at all times during and after the  Employment Term, Employee and any member of the Company Group will not engage in any conduct that  is injurious to the reputation or interests of the Employee or the Company Group, including, but not limited  to, making disparaging comments via any media or method of communication (or inducing or encouraging  others to make disparaging comments) about the Employee, Company Group, any of the shareholders,  members, directors, officers, employees or agents of the Company Group, or the Company Group’s  operations, financial condition, prospects, products or services.  However, nothing in this Agreement shall  prohibit either Party from: exercising protected rights under Section 7 of the National Labor Relations Act;  filing a charge with, participating in any investigation or proceeding conducted by, or cooperating with any  Government Agencies; testifying truthfully in any forum or before any Government Agencies; reporting  possible violations of any law, rule or regulation to any Government Agencies; receiving legal advice, or  making other disclosures that are required by law or protected under whistleblower provisions of any law,  rule or regulation.    9. Intellectual Property.    (a) Work Product Owned By the Company.  Employee agrees that the Company or the  applicable member of the Company Group (each individually the “Assigned Party”) is and will be the sole  and exclusive owner of all ideas, inventions, discoveries, improvements, designs, plans, methods, works  of authorship, deliverables, writings, brochures, manuals, know-how, method of conducting its business,  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      12  policies, procedures, products, processes, software, or any enhancements, or documentation of or to the  same and any other work product in any form or media that Employee made prior to the Effective Date,  makes, works on, conceives, or reduces to practice, individually or jointly with others, in the course of  Employee’s past, current and future employment for the Assigned Party or with the use of the Assigned  Party’s time, materials or facilities, and is in any way related or pertaining to or connected with the present  or anticipated business, products or services of the Assigned Party whether produced during normal  business hours or on personal time (collectively, “Work Products”).  (b) Intellectual Property.  “Intellectual Property” means any and all (i) copyrights and  other rights associated with works of authorship, (ii) trade secrets and other confidential information, (iii)  patents, patent disclosures and all rights in inventions (whether patentable or not), (iv) trademarks, trade  names, Internet domain names, and registrations and applications for the registration thereof together with  all of the goodwill associated therewith, (v) all other intellectual and industrial property rights of every  kind and nature throughout the world and however designated, whether arising by operation of law,  contract, license, or otherwise, and (vi) all registrations, applications, renewals, extensions, continuations,  divisions, or reissues thereof now or hereafter in effect.  (c) Assignment. Employee acknowledges Employee’s work and services provided for  the Assigned Party and all results and proceeds thereof, including, the Work Products, are works done  under Company Group’s direction and control and have been specially ordered or commissioned by the  Company Group. To the extent the Work Products are copyrightable subject matter, they shall constitute  “works made for hire” for the Company Group within the meaning of the Copyright Act of 1976, as  amended, and shall be the exclusive property of the Assigned Party.  Should any Work Product be held  by a court of competent jurisdiction to not be a “work made for hire,” and for any other rights, Employee  hereby assigns and transfers to Assigned Party, to the fullest extent permitted by applicable law, all right,  title, and interest in and to the Work Products, including but not limited to all Intellectual Property  pertaining thereto, and in and to all works based upon, derived from, or incorporating such Work Products,  and in and to all income, royalties, damages, claims and payments now or hereafter due or payable with  respect thereto, and in and to all causes of action, either in law or in equity for past, present, or future  infringement. Employee hereby waives and further agrees not to assert Employee’s rights known in  various jurisdictions as moral rights and grants the Company Group the right to make changes, as the  Company Group deems necessary, in the Work Products.   Pursuant to relevant state common law or statute, including California Labor Code Section 2870,  to the extent applicable, any provision in this Agreement requiring Employee to assign Employee’s rights  in any Invention (as hereinafter defined) does not apply to any Invention that is developed while Employee  is an employee of the Company or any of the Company Group but  entirely on Employee’s own time  without using the equipment, supplies, facilities, or trade secret information of the Company or any of the  Company Group, except for those Inventions that either (i) relate at the time of conception or reduction to  practice of the Invention to the business of the Company or any other of the Company Group; or actual or  demonstrably anticipated research or development of the Company or any other of the Company Group,  or (ii) result from any work performed by Employee for the Company or any other of the Company  Group.  If any Invention is described in a patent and/or copyright application or disclosed to any third  party by Employee within one year after Employee shall no longer be employed with the Company nor  with any other of the Company Group and which relates to the then existing reasonably anticipated  business, research or development of the Company or any other of the Company Group, it is to be  presumed, subject to rebuttal by Employee, that such Invention was conceived during Employee’s  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      13  retention by the Company or any other of the Company Group and that the Invention shall belong to the  Company and the others of the Company Group.  Employee has reviewed the notification attached hereto  as Exhibit A (Limited Exclusion Notification). As used in this Agreement, the term “Invention” means,  without limitation, any discoveries, improvements, processes, developments, designs, trademarks, service  marks, know-how, data, computer programs, or formulae, whether patentable or unpatentable,  copyrightable or noncopyrightable.  (d) License of Intellectual Property Not Assigned.  Notwithstanding the above, should  Employee be deemed to own or have any Intellectual Property that is used, embodied, or reflected in the  Work Products, Employee hereby grants to the Company Group, its successors and assigns, the non- exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense  through multiple levels of sublicenses, to use, reproduce, publish, create derivative works of, market,  advertise, distribute, sell, publicly perform and publicly display and otherwise exploit by all means now  known or later developed the Work Products and Intellectual Property.    (e) Maintenance; Disclosure; Execution; Attorney-In-Fact.  Employee will, at the  request and cost of the Assigned Party, sign, execute, make and do all such deeds, documents, acts and  things as the Assigned Party and their duly authorized agents may reasonably require to apply for, obtain  and vest in the name of the Assigned Party alone (unless the Assigned Party otherwise directs) letters  patent, copyrights or other analogous protection in any country throughout the world and when so obtained  or vested to renew and restore the same. In the event the Assigned Party is unable, after reasonable effort,  to secure Employee’s signature on any letters patent, copyright or other analogous protection relating to a  Work Product, whether because of Employee’s physical or mental incapacity or for any other reason  whatsoever, Employee hereby irrevocably designates and appoints the Assigned Party and their duly  authorized officers and agents as Employee’s agent and attorney-in-fact (which designation and  appointment shall be (i) deemed coupled with an interest and (ii) irrevocable, and shall survive Employee’s  death or incapacity), to act for and in Employee’s behalf and stead to execute and file any such application  or applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters  patent, copyright or other analogous protection thereon with the same legal force and effect as if executed  by Employee.   (f) Employee’s Representations Regarding Work Products.  Employee represents and  warrants that all Work Products that Employee makes, works on, conceives, or reduces to practice,  individually or jointly with others, in the course of performing Employee’s duties for Assigned Party under  this Agreement are (i) original or an improvement of the Assigned Party’s prior Work Products and (ii)  do not include, copy, use, or infringe any Intellectual Property rights of a third party.    10. Cooperation.  Employee agrees that at all times during the Employee’s employment with  the Company and at all times thereafter (including following the termination of the Employee’s  employment for any reason), Employee will cooperate with all reasonable requests by the Company Group  for assistance in connection with any action, suit, or proceeding, whether civil, criminal, administrative, or  investigative, involving the Company Group, including by providing truthful testimony in person in any  such action, suit, or proceeding, and by providing information and meeting and consulting with the Board  or their representatives or counsel, or representatives of or counsel to the Company Group, as reasonably  requested; provided, however, that the foregoing shall not apply to any action, suit, or proceeding involving  disputes between Employee and the Company Group arising under this Agreement or any other agreement.  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      14  Employee shall be compensated for time spent at the Company Group’s request providing cooperation  pursuant to this section at an hourly rate equal to Employee’s Base Salary divided by 2,080.     11. Indemnification.  During and after the Employment Term, the Employee shall be entitled  to all rights to indemnification available under the by-laws, certificate of incorporation and any director  and officer insurance policies of Greenlane and the Company, any indemnification agreement entered into  between Greenlane and Employee, or to which Employee may otherwise be entitled through Greenlane,  the Company, and/or any of their respective subsidiaries and affiliates, in accordance with their respective  terms.    12. Severability; Independent Covenants.  If any term or provision of this Agreement shall be  determined by a court of competent jurisdiction to be illegal, invalid or unenforceable for any reason, the  remaining provisions of this Agreement shall remain enforceable and the invalid, illegal or unenforceable  provisions shall be modified so as to be valid and enforceable and shall be enforced as modified.  If,  moreover, any part of this Agreement is for any reason held too excessively broad as to time, duration,  geographic scope, activity, or subject, it is the intent of the Parties that this Agreement shall be judicially  modified by limiting or reducing it so as to be enforceable to the extent compatible with the applicable law.   The existence of any claim or cause of action of Employee against the Company Group (or against any  member, shareholder, director, officer or employee thereof), whether arising out of the Agreement or  otherwise, shall not constitute a defense to: (i) the enforcement by the Company Group of any of the  restrictive covenants set forth in this Agreement; or (ii) the Company Group’s entitlement to any remedies  hereunder.  Employee’s obligations under this Agreement are independent of any of the Company Group’s  obligations to the Employee.    13. Remedies for Breach.  Employee acknowledges and agrees that it would be difficult to  measure the damages to the Company Group from any breach or threatened breach by Employee of this  Agreement, including but not limited to Sections 6, 8, and 9 hereof; that injury to the Company Group from  any such breach would be irreparable; and that money damages would therefore be an inadequate remedy  for any such breach.  Accordingly, Employee agrees that if Employee breaches or threatens to breach any  of the promises contained in this Agreement, the Company Group shall, in addition to all other remedies it  may have (including monetary remedies), be entitled to seek an injunction and/or equitable relief, on a  temporary or permanent basis, to restrain any such breach or threatened breach without showing or proving  any actual damage to the Company Group. Nothing herein shall be construed as a waiver of any right the  Company Group may have or hereafter acquire to pursue any other remedies available to it for such breach  or threatened breach, including recovery of damages from Employee.  Notwithstanding any provision of  this Agreement to the contrary, Employee shall not be entitled to any post-termination payments pursuant  hereto during any period in which Employee is materially violating any of Employee’s obligations under  Sections 6 or 8 hereof.    14. Assignment; Third-Party Beneficiaries.  The rights of the Company under this Agreement  may, without the consent of Employee, be assigned by the Company to (i) any person, firm, corporation,  or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly,  a controlling interest in the Company ( >50% of voting power), or all or substantially all of the Company’s  stock or assets, or (ii) any affiliate or future affiliate of the Company, and such assignment by Company  pursuant to this Section 14 shall automatically, and without any further action required by the Parties,  relieve the assignor Company (and discharge and release the assignor Company) from all obligations and  liabilities under or related to this Agreement (all such obligations and/or automatically liabilities assumed  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      15  by the assignee Company).  This Agreement shall be binding upon and inure to the benefit of any successor  or assigns of Company.  Employee may not assign this Agreement without the written consent of the  Company.  Employee agrees that each member of the Company Group is an express third party beneficiary  of this Agreement, and this Agreement, including other obligations set forth in Sections 6, 8, 9, and 10, are  for each such member’s benefit.  Employee expressly agrees and consents to the enforcement of this  Agreement, including but not limited to other obligations in Sections 6, 8, 9, and 10  hereof, by any member  of the Company Group as well as by the Company Group’s future affiliates, successors and/or assigns.    15. Attorneys’ Fees and Costs. In any action brought to enforce or otherwise interpret any  provision of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and  costs from the non-prevailing party to the action or proceeding, including through settlement, judgment  and/or appeal.  16. Governing Law; Arbitration.   (a) Governing Law. This Agreement shall be governed by the laws of the State of  California, without regard to its choice of law principles, except where the application of federal law  applies.    (b) Arbitration. The Parties agree that any dispute, controversy, or claim arising out  of or related to this Agreement, to the maximum extent allowed by applicable law, shall be submitted to  final and binding arbitration administered by JAMS, Inc. (“JAMS”) in accordance with the Federal  Arbitration Act and the JAMS Employment Arbitration Rules and Procedures (the “Rules”) then in effect,  and conducted in Irvine, California by a single neutral arbitrator selected in accordance with the Rules.  The Rules can be found at www.jamsadr.com/rules-employment-arbitration/. In arbitration, the Parties  have the right to be represented by legal counsel; the arbitrator shall permit adequate discovery sufficient  to allow the Parties to vindicate their claims and may not limit the Parties’ rights to reasonable discovery;  the Parties shall have the right to subpoena witnesses to compel their attendance at hearings and to cross- examine witnesses; the Parties shall have the right to file dispositive motions, including motions for  summary judgment or adjudication, without the prior approval of the arbitrator; and the arbitrator's  decision shall be in writing and shall contain essential findings of fact and conclusions of law on which  the award is based. The arbitrator shall have the power to resolve all disputes and award any type of legal  or equitable relief, to the extent such relief is available under applicable law. Employee will be responsible  for paying any initial case management fee, but all other costs of arbitration will be borne by the Company.   The parties agree that all fee deposits, as provided under JAMS Employment Rule 31(b), will be due  within 30 days of the issuance of the invoice unless the parties mutually agree to extend the time to pay  the invoice, or the arbitrator orders the deadline extended based on a showing of good cause.  Any award  by the arbitrator may be entered as a judgment in any court having jurisdiction in an action to confirm or  enforce the arbitration award. Except as necessary to confirm or enforce an award, the Parties agree to  keep all arbitration proceedings completely confidential. Notwithstanding the foregoing, either Party may  seek preliminary injunctive and/or other equitable relief from a court of competent jurisdiction in support  of claims to be prosecuted in arbitration. In the event a dispute, controversy, or claim arising out of or  related to this Agreement is found to fall outside of the arbitration provision in this Section 16(b), the  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      16  Parties agree to submit to the exclusive jurisdiction and venue of the state and federal courts in Orange  County, California for the resolution of such dispute, controversy, or claim.  (c) Employee acknowledges that this agreement to arbitration of claims set forth in  section 16(b) above is entered freely and knowingly, as part of an arms-length negotiation, and Employee  has not been coerced, threatened, or forced into this agreement, nor has the Company conditioned  employment, on-going employment, or the receipt of any employment-related benefit, upon the  acceptance of the covenants in section 16(b).    17. Mutual Waiver of Jury Trial in Court Proceedings. EACH PARTY HERETO  IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND A TRIAL BY  JURY FOR ANY CAUSE OF ACTION, CLAIM, RIGHT, ACTION, PROCEEDING OR  COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR  THE RELATIONSHIP OF THE PARTIES. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS  TO DEMAND A TRIAL BY JURY ARISING FROM ANY SOURCE, INCLUDING BUT NOT  LIMITED TO THE CONSTITUTION OF THE UNITED STATES, THE CONSTITUTION OF ANY  STATE, COMMON LAW OR ANY APPLICABLE STATUTE OR REGULATION. EACH PARTY  HEREBY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING THE  RIGHT TO DEMAND TRIAL BY JURY.  18. Waiver.  No waiver of any breach or other rights under this Agreement shall be deemed a  waiver unless the acknowledgment of the waiver is in writing executed by the party committing the waiver.   No waiver shall be deemed to be a waiver of any subsequent breach or rights.  All rights are cumulative  under this Agreement.  The failure or delay of the Company at any time or times to require performance  of, or to exercise any of its powers, rights or remedies with respect to any term or provision of this  Agreement or any other aspect of Employee’s conduct or employment in no manner (except as otherwise  expressly provided herein) shall affect the Company’s right at a later time to enforce any such term or  provision.  19. Survival.  Employee’s post-termination obligations and the Company Group’s post- termination rights under Sections 6 through 19 of this Agreement shall survive the termination of this  Agreement and the termination of Employee’s employment with the Company regardless of the reason for  termination; shall continue in full force and effect in accordance with their terms; and shall continue to be  binding on the Parties.   20. Independent Advice.  Employee acknowledges that the Company has provided Employee  with a reasonable opportunity to obtain independent legal advice with respect to this Agreement, and that  either: (a) Employee has had such independent legal advice prior to executing this Agreement; or (b)  Employee has willingly chosen not to obtain such advice and to execute this Agreement without having  obtained such advice.  21. Entire Agreement.  This Agreement constitutes the entire understanding of the Parties  relating to the subject matter hereof and supersedes all prior agreements, understandings, arrangements,  promises and commitments, whether written or oral, express or implied, relating to the subject matter  hereof, and all such prior agreements, understandings, arrangements, promises and commitments. For  avoidance of doubt, this Agreement does not supersede, nullify, or otherwise impact any retention bonuses  or equity grants issued to Employee prior to the Effective Date.     DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      17  22. Amendment.  This Agreement may not be amended, supplemented or modified in whole  or in part except by an instrument in writing signed by the Party or Parties against whom enforcement of  such amendment, supplement, or modification is sought.  23. Notices.  Any notice, request or other document required or permitted to be given under  this Agreement shall be in writing and shall be deemed given: (a) upon delivery, if delivered by hand; (b)  three (3) days after the date of deposit in the mail, postage prepaid, if mailed by certified U.S. mail; or (c)  on the next business day, if sent by e-mail or prepaid overnight courier service.  If not personally delivered  by hand, notice shall be sent using the addresses and/or email addresses set forth below or to such other  address as either Party may designate by written notice to the other:  If to the Employee:  at the Employee’s most recent address on the records of the Company.  If to the Company, to:  Warehouse Goods LLC  Attention: Human Resources   1095 Broken Sound Parkway NW, Suite 100,   Boca Raton, FL 33487  hrservice@greenlane.com  AND  Warehouse Goods LLC  Attention: Legal   2312 Park Ave #607   Tustin, California 92782   Legal@greenlane.com     24. Code Section 409A Compliance.  It is intended that the provisions of this Agreement are  either exempt from or comply with the terms and conditions of Section 409A of the Code and to the extent  that the requirements of Section 409A of the Code are applicable thereto, all provisions of this Agreement  shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under  Section 409A of the Code.  Notwithstanding the foregoing, the Company shall have no liability with regard  to any failure to comply with Section 409A of the Code.  If under this Agreement, an amount is to be paid  in two or more installments, for purposes of Section 409A of the Code each installment shall be treated as  a separate payment.  Notwithstanding anything herein to the contrary or otherwise, except to the extent any  expense, reimbursement or in-kind benefit provided pursuant to this Agreement does not constitute a  “deferral of compensation” within the meaning of Section 409A of the Code and the regulations and other  guidance thereunder: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to  Employee during any calendar year will not affect the amount of expenses eligible for reimbursement or  in-kind benefits provided to Employee in any other calendar year; (ii) the reimbursements for expenses for  which Employee is entitled to be reimbursed shall be made on or before the last day of the calendar year  following the calendar year in which the applicable expense is incurred; and (iii) the right to payment or  reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.  DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      18  25. Counterparts; Electronic Transmission; Headings.  This Agreement may be executed in  two or more counterparts, each of which shall be deemed an original, including an electronic copy or  facsimile, but all of which taken together shall constitute one and the same instrument.  The headings used  herein are for ease of reference only and shall not define or limit the provisions hereof.  [Remainder of this page intentionally left blank; signatures follow.]   DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      19  IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.        Solely with Respect to Section 3(a) and (b):    GREENLANE HOLDINGS, INC.      By:        Name: Craig Synder  Title:  President      COMPANY    WAREHOUSE GOODS LLC      By:        Name: Craig Synder  Title: President          EMPLOYEE              LANA REEVE    DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4B 

 

      20  EXHIBIT A    THIS IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code  that the foregoing Agreement does not require you to assign or offer to assign to the Company or any of  the Company Group any invention that you developed entirely on your own time without using the  Company’s or any other of the Company Group’s equipment, supplies, facilities or trade secret  information except for those inventions that either:  (1) Relate at the time of conception or reduction to practice of the invention to the Company’s  or any other of the Company Group’s business, or actual or demonstrably anticipated research or  development of the Company or any other of the Company Group; or  (2) Result from any work performed by you for the Company or any other of the Company  Group.  To the extent a provision in the foregoing Agreement purports to require you to assign an  invention otherwise excluded from the preceding Section, the provision is against the public policy of  California and is unenforceable.  This limited exclusion does not apply to any patent or invention covered by a contract  between the Company or any other of the Company Group and the United States or any of its agencies  requiring full title to a patent or invention to be in the United States.      COMPANY    WAREHOUSE GOODS LLC      By:        Name: Craig Synder  Title: President         EMPLOYEE              LANA REEVE    DocuSign Envelope ID: EAEE2692-BA2D-462D-B4F2-E01DBC1ABF4Bex_454105.htm

 

Exhibit 10.1

 

 

GEOVAX LABS, INC.

 

2023 STOCK INCENTIVE PLAN

 

1

 

 

GEOVAX LABS, INC. 

 

2023 STOCK INCENTIVE PLAN

 

	
			1.

				
			Definitions

			

 

In addition to other terms defined herein or in an Award Agreement, the following terms shall have the meanings given below:

 

(a)          Administrator means the Board, and, upon its delegation of all or part of its authority to administer the Plan to the Committee, the Committee.

 

(b)         Affiliate means any Parent or Subsidiary of the Company, and also includes any other business entity which is controlled by, under common control with or controls the Company; provided, however, that the term “Affiliate” shall be construed in a manner in accordance with the registration provisions of applicable federal securities laws if and to the extent required.

 

(c)          Applicable Law means any applicable laws, rules or regulations (or similar guidance), including but not limited to the General Corporation Law of Delaware, the Securities Act, the Exchange Act, the Code and the listing or other rules of any applicable stock exchange. References to applicable laws, rules and regulations, including references to any sections or other provisions of applicable laws, rules and regulations, shall also refer to any successor provisions thereto unless the Administrator determines otherwise.

 

(d)         Award means, individually or collectively, a grant under the Plan of an Option (including an Incentive Option or a Nonqualified Option); a Stock Appreciation Right (including a Related SAR or a Freestanding SAR); a Restricted Award (including a Restricted Stock Award or a Restricted Stock Unit Award); a Performance Award (including a Performance Share Award or a Performance Unit Award); a Phantom Stock Award; an Other Stock-Based Award; a Dividend Equivalent Award; and/or any other award granted under the Plan.

 

(e)          Award Agreement means an award agreement (which may be in written or electronic form, in the Administrator’s discretion, and which includes any amendment or supplement thereto) between the Company and a Participant specifying the terms, conditions and restrictions of an Award granted to the Participant. An Award Agreement may also state such other terms, conditions and restrictions, including but not limited to terms, conditions and restrictions applicable to shares of Common Stock or any other benefit underlying an Award, as may be established by the Administrator.

 

(f)          Base Price means, with respect to an SAR, the initial price assigned to the SAR.

 

(g)          Board or Board of Directors means the Board of Directors of the Company.

 

(h)          Cause means, unless the Administrator determines otherwise, a Participant’s termination of employment or service resulting from the Participant’s (i) termination for “Cause” as defined under the Participant’s employment, change of control, consulting or other agreement with the Company or an Affiliate, if any, or (ii) if the Participant has not entered into any such agreement (or, if any such agreement does not define “Cause”), then the Participant’s termination shall be for “Cause” if termination results due to the Participant’s (A) dishonesty; (B) refusal or failure to perform his or her duties for the Company or an Affiliate; (C) engaging in fraudulent conduct or conduct that could be materially damaging to the Company without a reasonable good faith belief that such conduct was in the best interest of the Company; or (D) material breach of any confidentiality, non-solicitation or non-competition covenant applicable to the Participant. The determination of “Cause” shall be made by the Administrator and its determination shall be final and conclusive. Without in any way limiting the effect of the foregoing, for purposes of the Plan and an Award, a Participant’s employment or service shall also be deemed to have terminated for Cause if, after the Participant’s employment or service has terminated, facts and circumstances are discovered that would have justified, in the opinion of the Administrator, a termination for Cause.

 

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(i)           A Change of Control shall (except as may be otherwise required, if at all, under Code Section 409A) be deemed to have occurred on the earliest of the following dates:

 

(i)           The date any entity or person shall have become the beneficial owner of, or shall have obtained voting control over, more than fifty percent (50%) of the total voting power of the Company’s then outstanding voting stock; 

 

(ii)         The date of the consummation of (A) a merger, consolidation, recapitalization or reorganization of the Company (or similar transaction involving the Company), in which the holders of the Common Stock immediately prior to the transaction have voting control over less than fifty-one percent (51%) of the voting securities of the surviving corporation immediately after such transaction, or (B) the sale or disposition of all or substantially all the assets of the Company;

 

(iii)        The date there shall have been a change in a majority of the Board of Directors of the Company within a 12-month period unless the nomination for election by the Company’s stockholders or the appointment of each new Director was approved by the vote of two-thirds or more of the members of the Board (or a committee of the Board, if nominations are approved by a Board committee rather than the Board) then still in office who were in office at the beginning of the 12-month period; or

 

(iv)         The date on which the stockholders of the Company approve of a complete liquidation or dissolution of the Company to the extent that stockholder approval is required under Applicable Law.

 

For the purposes herein, the term “person” shall mean any individual, corporation, partnership, group, association or other person, as such term is defined in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, other than the Company, a Subsidiary of the Company or any employee benefit plan(s) sponsored or maintained by the Company or any Subsidiary thereof, and the term “beneficial owner” shall have the meaning given the term in Rule 13d-3 under the Exchange Act.

 

For the purposes of clarity, a transaction shall not constitute a Change of Control if its principal purpose is to change the state of the Company’s incorporation, create a holding company that would be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction or is another transaction of other similar effect.

 

Notwithstanding the preceding provisions of Section 1(i), in the event that any Awards granted under the Plan are deemed to be deferred compensation subject to (and not exempt from) the provisions of Code Section 409A, then distributions related to such Awards to be made upon a Change of Control may be permitted, in the Administrator's discretion, upon the occurrence of one or more of the following events (as they are defined and interpreted under Code Section 409A): (A) a change in the ownership of the Company; (B) a change in effective control of the Company; or (C) a change in the ownership of a substantial portion of the assets of the Company.

 

The Administrator shall have full and final authority, in its discretion (subject to any Code Section 409A considerations), to determine whether a Change of Control of the Company has occurred, the date of the occurrence of such Change of Control and any matters relating thereto.

 

(j)           Code means the Internal Revenue Code of 1986, as amended. Any reference herein to a specific Code section shall be deemed to include all related regulations or other guidance with respect to such Code section.

 

(k)         Committee means the Compensation Committee of the Board (or a subcommittee thereof), or other committee of the Board to which the Board has delegated power to act under or pursuant to the provisions of the Plan. For clarity, the term “Committee” includes the Board (or subcommittee of the Committee or other committee of the Board) if exercising the authority of the Committee under the Plan.

 

(l)           Common Stock means the common stock of GeoVax Labs, Inc., $0.001 par value per share, or any successor securities thereto.

 

3

 

 

(m)        Company means GeoVax Labs, Inc., a Delaware corporation, together with any successor thereto. In the Administrator’s discretion, the term “Company” may also refer to the Company and any or all of its Affiliates.

 

(n)          Director means a member of the Board or of the board of directors of an Affiliate.

 

(o)        Disability shall, except as may be otherwise determined by the Administrator (taking into account any Code Section 409A considerations), as applied to any Participant, having the meaning given in any Award Agreement, employment agreement, change of control agreement, consulting agreement or other similar agreement, if any, to which the Participant is a party, or, if there is no such agreement (or if such agreement does not define “Disability”), “Disability” shall mean the inability of the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months. The Administrator shall have authority to determine if a Disability has occurred.

 

(p)          Dividend Equivalent Award means a right granted to a Participant pursuant to Section 13 to receive the equivalent value (in cash or shares of Common Stock) of dividends paid on Common Stock.

 

(q)          Effective Date means the effective date of the Plan, as provided in Section 4.

 

(r)           Employee means any person who is an employee of the Company or any Affiliate (including entities which become Affiliates after the Effective Date of the Plan). For this purpose, an individual shall be considered to be an Employee only if there exists between the individual and the Company or an Affiliate the legal and bona fide relationship of employer and employee (taking into account Code Section 409A considerations if and to the extent applicable); provided, however, that, with respect to the Incentive Options, “Employee” means any person who is considered an employee of the Company or any Parent or Subsidiary for purposes of Treas. Reg. Section 1.421-1(h) (or any successor provision related thereto).

 

(s)           Exchange Act means the Securities Exchange Act of 1934, as amended.

 

(t)          Fair Market Value per share of the Common Stock shall be established by the Administrator and, unless otherwise determined by the Administrator, the Fair Market Value shall be determined in accordance with the following provisions: (A) if the shares of Common Stock are listed for trading on The NASDAQ Stock Market (“Nasdaq”) or another national or regional stock exchange, the Fair Market Value shall be the closing sales price per share of the shares on Nasdaq or other principal stock exchange on which such securities are listed on the date an Award is granted or other determination is made (such date of determination being referred to herein as a “valuation date”), or, if there is no transaction on such date, then on the trading date nearest preceding the valuation date for which closing price information is available, and, provided further, if the shares are not listed for trading on Nasdaq or another stock exchange but are regularly quoted on an automated quotation system (including the OTC Bulletin Board and the quotations published by the OTC Markets Group) or by a recognized securities dealer, the Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities dealer on the valuation date, but if selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the valuation date (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or (B) if the shares of Common Stock are not listed or reported in any of the foregoing, then the Fair Market Value shall be determined by the Administrator based on such valuation measures or other factors as it deems appropriate. Notwithstanding the foregoing, (i) with respect to the grant of Incentive Options, the Fair Market Value shall be determined by the Administrator in accordance with the applicable provisions of Section 20.2031-2 of the Federal Estate Tax Regulations, or in any other manner consistent with Code Section 422; and (ii) Fair Market Value shall be determined in accordance with Code Section 409A if and to the extent required.

 

(u)          Freestanding SAR means an SAR that is granted without relation to an Option, as provided in Section 8.

 

4

 

 

(v)        Good Reason means, unless the Administrator determines otherwise, in the context of a Change of Control, a Participant’s termination of employment or service resulting from the Participant’s (i) termination for “Good Reason” as defined under the Participant’s employment, change in control, consulting or other agreement with the Company or an Affiliate, if any, or (ii) if the Participant has not entered into any agreement (or, if any such agreement does not define “Good Reason”), then, a Participant’s termination shall be for “Good Reason” if termination results due to any of the following without the Participant’s consent: (A) a material reduction in the Participant’s base salary as in effect immediately prior to the date of the Change of Control, (B) the assignment to the Participant of duties or responsibilities materially inconsistent with, or a material diminution in, the Participant’s position, authority, duties or responsibilities as in effect immediately prior to the Change of Control, or (C) the relocation of the Participant’s principal place of employment by more than [50] miles from the location at which the Participant was stationed immediately prior to the Change of Control. Notwithstanding the foregoing, with respect to Directors, unless the Administrator determines otherwise, a Director’s termination from service on the Board shall be for “Good Reason” if the Participant ceases to serve as a Director or, if the Company is not the surviving company in the Change of Control event, a member of the board of directors of the surviving entity, in either case, due to the Participant’s failure to be nominated to serve as a director of such entity or the Participant’s failure to be elected to serve as a director of such entity, but not due to the Participant’s decision not to continue service on the Board or the board of directors of the surviving entity, as the case may be. In the context other than a Change of Control, “Good Reason” shall have the meaning given in a Participant’s Award Agreement or employment, change in control, consulting or other agreement or arrangement with the Company or an Affiliate. An event or condition that would otherwise constitute “Good Reason” shall constitute Good Reason only if the Company fails to rescind or cure such event or condition within 30 days after receipt from the Participant of written notice of the event which constitutes Good Reason, and Good Reason shall cease to exist for any event or condition described herein on the 60th day following the later of the occurrence or the Participant’s knowledge thereof, unless the Participant has given the Company written notice thereof prior to such date. The determination of “Good Reason” shall be made by the Administrator and its determination shall be final and conclusive.

 

(w)         Incentive Option means an Option that is designated by the Administrator as an Incentive Option pursuant to Section 7 and intended to meet the requirements of incentive stock options under Code Section 422.

 

(x)          Independent Contractor means an independent contractor, consultant or advisor providing services (other than capital-raising services) to the Company or an Affiliate.

 

(y)          Nonqualified Option means an Option granted under Section 7 that is not intended to qualify (or does not qualify) as an incentive stock option under Code Section 422.

 

(z)        Option means a stock option granted under Section 7 that entitles the holder to purchase from the Company a stated number of shares of Common Stock at the Option Price, and subject to such terms and conditions, as may be set forth in the Plan or an Award Agreement or established by the Administrator.

 

(aa)        Option Period means the term of an Option, as provided in Section 7(d).

 

(bb)        Option Price means the price at which an Option may be exercised, as provided in Section 7(b).

 

(cc)        Other Stock-Based Award means a right, granted to a Participant under Section 12, that relates to or is valued by reference to shares of Common Stock or other Awards relating to shares of Common Stock.

 

(dd)        Parent means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e) (or any successor provision thereto).

 

(ee)        Participant means an individual who is an Employee employed by, or a Director or Independent Contractor providing services to, the Company or an Affiliate who satisfies the requirements of Section 6 and is selected by the Administrator to receive an Award under the Plan.

 

(ff)         Performance Award means a Performance Share Award and/or a Performance Unit Award, as provided in Section 10.

 

5

 

 

(gg)       Performance Measures mean one or more performance factors or criteria which may be established by the Administrator with respect to an Award. Performance factors may be based on such corporate, business unit or division and/or individual performance factors or criteria as the Administrator in its discretion may deem appropriate. Such criteria may relate to the Company, one or more of its Affiliates or one or more of its divisions, departments, units, segments, partnerships, joint ventures or minority investments, facilities, product lines or products or any combination of the foregoing, and may be based on such objective or subjective factors as the Administrator may determine. The targeted level or levels of performance with respect to such business criteria may be established at such levels and on such terms as the Administrator may determine, in its discretion, including but not limited to on an absolute basis, in relation to performance in a prior performance period, relative to one or more peer group companies or indices, on a per share and/or share per capita basis, on a pre-tax or after tax basis, and/or any combination thereof.

 

(hh)       Performance Share means an Award granted under Section 10, in an amount determined by the Administrator and specified in an Award Agreement, stated with reference to a specified number of shares of Common Stock, that entitles the holder to receive shares of Common Stock, a cash payment or a combination of Common Stock and cash (as determined by the Administrator), subject to the terms of the Plan and the terms and conditions established by the Administrator.

 

(ii)        Performance Unit means an Award granted under Section 10, in an amount determined by the Administrator and specified in an Award Agreement, that entitles the holder to receive shares of Common Stock, a cash payment or a combination of Common Stock and cash (as determined by the Administrator), subject to the terms of the Plan and the terms and conditions established by the Administrator.

 

(jj)         Phantom Stock Award means an Award granted under Section 11, entitling a Participant to a payment in cash, shares of Common Stock or a combination of cash and Common Stock (as determined by the Administrator), following the completion of the applicable vesting period and compliance with the terms of the Plan and other terms and conditions established by the Administrator. The unit value of a Phantom Stock Award shall be based on the Fair Market Value of a share of Common Stock.

 

(kk)        Plan means the GeoVax Labs, Inc. 2023 Stock Incentive Plan, as it may be hereafter amended and/or restated.

 

(ll)          Prior Plan means the GeoVax Labs, Inc. 2020 Stock Incentive Plan, as amended and/or restated. 

 

(mm)      Related SAR means an SAR granted under Section 8 that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company, unexercised, of that portion of the Option to which the SAR relates.

 

(nn)        Restricted Award means a Restricted Stock Award and/or a Restricted Stock Unit Award, as provided in Section 9.

 

(oo)        Restricted Stock Award means shares of Common Stock granted to a Participant under Section 9. Shares of Common Stock subject to a Restricted Stock Award shall cease to be restricted when, in accordance with the terms of the Plan and the terms and conditions established by the Administrator, the shares vest and become transferable and free of substantial risks of forfeiture.

 

(pp)       Restricted Stock Unit means a Restricted Award granted to a Participant pursuant to Section 9 which is settled, if at all, (i) by the delivery of one share of Common Stock for each Restricted Stock Unit, (ii) in cash in an amount equal to the Fair Market Value of one share of Common Stock for each Restricted Stock Unit, or (iii) in a combination of cash and shares equal to the Fair Market Value of one share of Common Stock for each Restricted Stock Unit, as determined by the Administrator. A Restricted Stock Unit represents the promise of the Company to deliver shares of Common Stock, cash or a combination thereof, as applicable, at the end of the applicable restriction period if and only to the extent the Award vests and ceases to be subject to forfeiture, subject to compliance with the terms of the Plan and Award Agreement and any terms and conditions established by the Administrator.

 

6

 

 

(qq)      Retirement shall, except as may be otherwise determined by the Administrator (taking into account any Code Section 409A considerations), as applied to any Participant, have the meaning given in an Award Agreement, employment agreement, change of control agreement, consulting agreement or other agreement, if any, to which the Participant is a party, or, if there is no such agreement (or if such agreement does not define “Retirement”), then “Retirement” shall, unless the Administrator determines otherwise, mean retirement in accordance with the retirement policies and procedures established by the Company. The Administrator shall have authority to determine if a Retirement has occurred.

 

(rr)        SAR means a stock appreciation right granted under Section 8 entitling the Participant to receive, with respect to each share of Common Stock encompassed by the exercise of such SAR, the excess, if any, of the Fair Market Value on the date of exercise over the Base Price, subject to the terms of the Plan and Award Agreement and any other terms and conditions established by the Administrator. References to “SARs” include both Related SARs and Freestanding SARs, unless the context requires otherwise.

 

(ss)         Securities Act means the Securities Act of 1933, as amended.

 

(tt)          Subsidiary means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f) (or any successor provision thereto).

 

(uu)        Termination Date means the date of termination of a Participant’s employment or service for any reason, as determined by the Administrator (taking into account any Code Section 409A considerations).

 

	
			2.

				
			Purpose

			

 

The purposes of the Plan are to encourage and enable selected Employees, Directors and Independent Contractors of the Company and its Affiliates to acquire or to increase their holdings of Common Stock and other equity-based interests in the Company and/or to provide other incentive awards in order to promote a closer identification of their interests with those of the Company and its stockholders, and to provide flexibility to the Company in its ability to motivate, attract and retain the services of Participants upon whose judgment, interest and special effort the successful conduct of its operation largely depends. These purposes may be carried out through the granting of Awards to selected Participants, including the granting of Options in the form of Incentive Options and/or Nonqualified Options; SARs in the form of Freestanding SARs and/or Related SARs; Restricted Awards in the form of Restricted Stock Awards and/or Restricted Stock Units; Performance Awards in the form of Performance Shares and/or Performance Units; Phantom Stock Awards; Other Stock-Based Awards; and/or Dividend Equivalent Awards.

 

	
			3.

				
			Administration of the Plan

			

 

(a)         The Plan shall be administered by the Board or, upon its delegation, by the Committee (or a subcommittee thereof). To the extent required under Rule 16b-3 adopted under the Exchange Act, the Committee shall be comprised solely of two or more “non-employee directors,” as such term is defined in Rule 16b-3, or as may otherwise be permitted under Rule 16b-3. In addition, Committee members shall qualify as “independent directors” under applicable stock exchange rules if and to the extent required.

 

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(b)         Subject to the provisions of the Plan, the Administrator shall have full and final authority in its discretion to take any action with respect to the Plan including, without limitation, the authority to (i) determine all matters relating to Awards, including selection of individuals to be granted Awards, the types of Awards, the number of shares of Common Stock, if any, subject to an Award, and all terms, conditions, restrictions and limitations of an Award; (ii) prescribe the form or forms of Award Agreements evidencing any Awards granted under the Plan; (iii) establish, amend and rescind rules and regulations for the administration of the Plan; (iv) correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award or Award Agreement; and (v) construe and interpret the Plan, Awards and Award Agreements made under the Plan, to interpret rules and regulations for administering the Plan and to make all other determinations deemed necessary or advisable for administering the Plan. In addition, (i) the Administrator shall have the authority to accelerate the date that any Award which was not otherwise exercisable, vested or earned shall become exercisable, vested or earned in whole or in part without any obligation to accelerate such date with respect to any other Award granted to any recipient; and (ii) the Administrator may in its sole discretion modify or extend the terms and conditions for exercise, vesting or earning of an Award (in each case, taking into account any Code Section 409A considerations). The Administrator’s authority to grant Awards and authorize payments under the Plan shall not in any way restrict the authority of the Company to grant compensation to Employees, Directors or Independent Contractors under any other compensation plan, program or arrangement of the Company or an Affiliate. The Administrator may determine that a Participant’s rights, payments and/or benefits with respect to an Award (including but not limited to any shares issued or issuable and/or cash paid or payable with respect to an Award) shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of employment for Cause, violation of policies of the Company or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, other conduct by the Participant that is determined by the Administrator to be detrimental to the business or reputation of the Company or any Affiliate, and/or other circumstances where such reduction, cancellation, forfeiture or recoupment is required by Applicable Law. In addition, the Administrator shall have the authority and discretion to establish terms and conditions of Awards (including but not limited to the establishment of subplans) as the Administrator determines to be necessary or appropriate to conform to the applicable requirements or practices of jurisdictions outside of the United States. In addition to action by meeting in accordance with Applicable Law, any action of the Administrator with respect to the Plan may be taken by a written instrument signed by all of the members of the Board or Committee, as appropriate, and any such action so taken by written consent shall be as fully effective as if it had been taken by a majority of the members at a meeting duly held and called. All determinations of the Administrator with respect to the Plan and any Award or Award Agreement will be final and binding on the Company and all persons having or claiming an interest in any Award granted under the Plan. No member of the Board or Committee, as applicable, shall be liable while acting as Administrator for any action or determination made in good faith with respect to the Plan, an Award or an Award Agreement. The members of the Board or Committee, as applicable, shall be entitled to indemnification and reimbursement in the manner and to the fullest extent provided in the Company’s certificate of incorporation and/or bylaws and/or pursuant to Applicable Law.

 

(c)         Notwithstanding the provisions of Section 3(b), Awards granted to a Participant under the Plan shall be subject to a minimum vesting (or earning) (collectively, “vesting”) period of one year; provided, however, that (i) the Administrator may provide for acceleration of vesting and/or exercisability of all or a portion of an Award in the event of a Participant's death or Disability, or (to the extent provided pursuant to Section 14 herein) upon the occurrence of a Change of Control of the Company; (ii) the Administrator may provide for the grant of an Award to a Participant without a minimum vesting period, but only with respect to Awards for no more than an aggregate of five percent (5%) of the total number of Shares authorized for issuance under the Plan pursuant to Section 5(a) herein, upon such terms and conditions as the Administrator shall determine; (iii) the Administrator also may provide for the grant of Awards to Participants that have different vesting terms in the case of Awards that are substituted for other equity awards in connection with mergers, consolidations or other similar transactions, Awards that are granted as an inducement to be employed by the Company or an Affiliate or to replace forfeited awards from a former employer, or Awards that are granted in exchange for foregone cash compensation; and (iv) with respect to Awards granted to non-employee Directors, the minimum vesting period shall be the period commencing with the date on which such non-employee Director is elected to appointed to the Board and ending on the earlier to occur of (X) the one-year anniversary of the grant date of such Award or (Y) the date of the next annual meeting following such non-employee Director’s election or appointment to the Board, so long as the period between the date of the annual meeting of the Company’s stockholders related to the grant date and the date of the next annual meeting of the Company’s stockholders is not less than 50 weeks.

 

(d)        The Administrator may adjust or modify Performance Measures or other performance factors or terms or conditions of Awards due to extraordinary items, transactions, events or developments, or in recognition of, or in anticipation of, any other unusual or infrequent events affecting the Company or the financial statements of the Company, or in response to, or in anticipation of, changes in Applicable Law, accounting principles or business conditions, in each case as determined by the Administrator. By way of example but not limitation, the Administrator may provide with respect to any Award that any evaluation of performance shall exclude or otherwise adjust for any specified circumstance or event that occurs during a performance period, including but not limited to circumstances or events such as the following: (i) asset write-downs or impairment charges; (ii) significant litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting standards or principles or other laws or regulatory rules; (iv) any reorganization and restructuring programs; (v) extraordinary nonrecurring items as described in then-current accounting principles; (vi) extraordinary nonrecurring items as described in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders; (vii) acquisitions or divestitures; (viii) a change in the Company’s fiscal year; (ix) any other specific unusual or infrequent events; and/or (x) foreign exchange gains and losses.

 

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(e)         Notwithstanding the other provisions of Section 3, the Board may expressly delegate to one or more officers of the Company or a special committee consisting of one or more directors who are also officers of the Company the authority, within specified parameters, to grant Awards to eligible Participants, and to make any or all of the determinations reserved for the Administrator in the Plan and summarized in Section 3(b) with respect to such Awards (subject to any restrictions imposed by Applicable Law and such terms and conditions as may be established by the Administrator); provided, however, that, if and to the extent required by Section 16 of the Exchange Act, the Participant, at the time of said grant or other determination is not deemed to be an officer or director of the Company within the meaning of Section 16 of the Exchange Act. To the extent that the Administrator has delegated authority to grant Awards pursuant to this Section 3(e) to an officer(s) and/or a special committee, references to the “Administrator” shall include references to such officer(s) and/or special committee, subject, however, to the requirements of the Plan, Rule 16b-3 and other Applicable Law.

 

	
			4.

				
			Effective Date

			

 

The Effective Date of the Plan shall be [_________], 2023 (the “Effective Date”). Awards may be granted on or after the Effective Date, but no Awards may be granted after the date that is 10 years less one day from the Effective Date. Awards that are outstanding at the end of the Plan term (or such earlier termination date as may be established by the Board pursuant to Section 16(a)) shall continue in accordance with their terms, unless otherwise provided in the Plan or an Award Agreement.

 

	
			5.

				
			Shares of Stock Subject to the Plan; Award Limitations

			

 

(a)          Shares of Stock Subject to the Plan: Subject to adjustments as provided in Section 5(d), the maximum aggregate number of shares of Common Stock that may be issued pursuant to Awards granted under the Plan shall not exceed 3,000,000 shares. Shares delivered under the Plan shall be authorized but unissued shares, treasury shares or shares purchased on the open market or by private purchase. The Company hereby reserves sufficient authorized shares of Common Stock to meet the grant of Awards hereunder. If the Plan is approved, no further awards shall be granted under the Prior Plan on or after the Effective Date, although Prior Plan awards that are outstanding as of such date shall continue in accordance with their terms.

 

(b)          Incentive Stock Option Limitations: The maximum aggregate number of shares of Common Stock that may be issued under the Plan pursuant to the grant of Incentive Options shall not exceed 3,000,000 shares of Common Stock (subject to adjustments as provided in Section 5(d)).

 

(c)          Additional Share Counting Provisions. The following provisions shall apply with respect to the share limitations of Section 5(a):

 

(i)           To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any such unissued or forfeited shares subject to the Award will again be available for issuance pursuant to Awards granted under the Plan.

 

(ii)          Awards settled in cash shall not be counted against the share limitations stated in Section 5(a) herein.

 

(iii)        Dividends, including dividends paid in shares, or dividend equivalents paid in connection with outstanding Awards, will not be counted towards the share limitations in Section 5(a).

 

(iv)        To the extent that the full number of shares subject to an Award other than an Option or SAR is not issued for any reason, including by reason of failure to achieve maximum performance factors or criteria, only the number of shares issued and delivered shall be considered for purposes of determining the number of shares remaining available for issuance pursuant to Awards granted under the Plan.

 

9

 

 

(v)         The following shares of Common Stock may not again be made available for issuance as Awards under the Plan: (A) shares withheld from an Award or delivered by a Participant to satisfy the tax withholding requirements for Awards, (B) shares not issued or delivered as a result of the net settlement of an outstanding Award, (C) shares used to pay the exercise price related to an outstanding Award and (D) shares repurchased on the open market with the proceeds of the Option Price of an Option.

 

(vi)        Further, (A) shares issued under the Plan through the settlement, assumption or substitution of outstanding awards granted by another entity or obligations to grant future awards as a condition of or in connection with a merger, acquisition or similar transaction involving the Company acquiring another entity shall not reduce the maximum number of shares available for delivery under the Plan, and (B) available shares under a stockholder approved plan of an acquired company (as appropriately adjusted to reflect the transaction) may be used for Awards under the Plan and will not reduce the maximum number of shares available under the Plan, subject, in the case of both (A) and (B) herein, to applicable stock exchange listing requirements.

 

(d)         Adjustments; Right to Issue Additional Securities: If there is any change in the outstanding shares of Common Stock because of a merger, change in control, consolidation, recapitalization or reorganization involving the Company, or if the Board declares a stock dividend, stock split distributable in shares of Common Stock, other distribution (other than regular or ordinary cash dividends) or reverse stock split, combination or reclassification of the Common Stock, or if there is a similar change in the capital stock structure of the Company affecting the Common Stock (excluding conversion of convertible securities by the Company and/or the exercise of warrants by their holders), then the number of and type shares of Common Stock reserved for issuance under the Plan shall be correspondingly adjusted, and the Administrator shall make such adjustments to Awards (such as the number and type of shares subject to an Award and exercise price or base price of an Award) or to any provisions of this Plan as the Administrator deems equitable to prevent dilution or enlargement of Awards or as may otherwise be advisable. Nothing in the Plan, an Award or an Award Agreement shall limit the ability of the Company to issue additional securities of any type or class.

 

	
			6.

				
			Eligibility

			

 

An Award may be granted only to an individual who satisfies all of the following eligibility requirements on the date the Award is granted:

 

(a)          The individual is either (i) an Employee, (ii) a Director or (iii) an Independent Contractor.

 

(b)          With respect to the grant of Incentive Options, the individual is otherwise eligible to participate under Section 6, is an Employee of the Company or a Parent or Subsidiary and does not own, immediately before the time that the Incentive Option is granted, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Parent or Subsidiary. Notwithstanding the foregoing, an Employee who owns more than 10% of the total combined voting power of the Company or a Parent or Subsidiary may be granted an Incentive Option if the Option Price is at least 110% of the Fair Market Value of the Common Stock, and the Option Period does not exceed five years. For this purpose, an individual will be deemed to own stock which is attributable to him or her under Code Section 424(d).

 

(c)          With respect to the grant of substitute awards or assumption of awards in connection with a merger, consolidation, acquisition, reorganization or similar transaction involving the Company or an Affiliate, the recipient is otherwise eligible to receive the Award and the terms of the award are consistent with the Plan and Applicable Law (including, to the extent necessary, the federal securities laws registration provisions, Code Section 409A and Code Section 424(a).

 

(d)          The individual, being otherwise eligible under this Section 6, is selected by the Administrator as an individual to whom an Award shall be granted (as defined above, a “Participant”).

 

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			7.

				
			Options

			

 

(a)        Grant of Options: Subject to the terms of the Plan, the Administrator may in its discretion grant Options to such eligible Participants in such numbers, subject to such terms and conditions, and at such times as the Administrator shall determine. Both Incentive Options and Nonqualified Options may be granted under the Plan, as determined by the Administrator; provided, however, that Incentive Options may only be granted to Employees of the Company or a Parent or Subsidiary. To the extent that an Option is designated as an Incentive Option but does not qualify as such under Code Section 422, the Option (or portion thereof) shall be treated as a Nonqualified Option. An Option may be granted with or without a Related SAR.

 

(b)          Option Price: The Option Price per share at which an Option may be exercised shall be established by the Administrator and stated in the Award Agreement evidencing the grant of the Option; provided, that (i) the Option Price of an Option shall be no less than 100% of the Fair Market Value per share of the Common Stock as determined on the date the Option is granted (or 110% of the Fair Market Value with respect to Incentive Options granted to an Employee who owns stock possessing more than 10% of the total voting power of all classes of stock of the Company or a Parent or Subsidiary, as provided in Section 6(b)); and (ii) in no event shall the Option Price per share of any Option be less than the par value, if any, per share of the Common Stock. Notwithstanding the foregoing, the Administrator may in its discretion authorize the grant of substitute or assumed options of an acquired entity with an Option Price not equal to 100% of the Fair Market Value of the stock on the date of grant, if the terms of such substitution or assumption otherwise comply, to the extent deemed applicable, with Code Section 409A and/or Code Section 424(a).

 

(c)          Date of Grant: An Option shall be considered to be granted on the date that the Administrator acts to grant the Option, or on such later date as may be established by the Administrator in accordance with Applicable Law.

 

(d)          Option Period and Limitations on the Right to Exercise Options:

 

(i)          The Option Period shall be determined by the Administrator at the time the Option is granted and shall be stated in the Award Agreement. The Option Period shall not extend more than 10 years from the date on which the Option is granted (or five years with respect to Incentive Options granted to an Employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Parent or Subsidiary, as provided in Section 6(b)). Any Option or portion thereof not exercised before expiration of the Option Period shall terminate. The period or periods during which, and the terms and conditions pursuant to which, an Option may vest and become exercisable shall be determined by the Administrator in its discretion, subject to the terms of the Plan.

 

(ii)        An Option may be exercised by giving written notice to the Company in form acceptable to the Administrator at such place and subject to such conditions as may be established by the Administrator or its designee. Such notice shall specify the number of shares to be purchased pursuant to an Option and the aggregate purchase price to be paid therefor and shall be accompanied by payment of such purchase price. Unless an Award Agreement provides otherwise, such payment shall be in the form of cash or cash equivalent; provided that, except where prohibited by the Administrator or Applicable Law (and subject to such terms and conditions as may be established by the Administrator), payment may also be made:

 

(A)    By delivery (by either actual delivery or attestation) of shares of Common Stock owned by the Participant for such time period, if any, as may be determined by the Administrator;

 

(B)    By shares of Common Stock withheld upon exercise;

 

(C)    By delivery of written notice of exercise to the Company and delivery to a broker of written notice of exercise and irrevocable instructions to promptly deliver to the Company the amount of sale or loan proceeds to pay the Option Price;

 

11

 

 

(D)    By such other payment methods as may be approved by the Administrator and which are acceptable under Applicable Law; and/or

 

(E)    By any combination of the foregoing methods.

 

Shares delivered or withheld in payment on the exercise of an Option shall be valued at their Fair Market Value on the date of exercise, as determined by the Administrator or its designee.

 

(iii)       The Administrator shall determine the extent, if any, to which a Participant may have the right to exercise an Option following termination of the Participant’s employment or service with the Company. Such rights, if any, shall be subject to the sole discretion of the Administrator, shall be stated in the individual Award Agreement, need not be uniform among all Options issued pursuant to this Section 7, and may reflect distinctions based on the reasons for termination of employment or service.

 

(e)          Notice of Disposition: If shares of Common Stock acquired upon exercise of an Incentive Option are disposed of within two years following the date of grant or one year following the transfer of such shares to a Participant upon exercise, the Participant shall, promptly following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information regarding the disposition as the Administrator may reasonably require.

 

(f)          Limitation on Incentive Options: In no event shall there first become exercisable by an Employee in any one calendar year Incentive Options granted by the Company or any Parent or Subsidiary with respect to shares having an aggregate Fair Market Value (determined at the time an Incentive Option is granted) greater than $ 100,000; provided that, if such limit is exceeded, then the first $100,000 of shares to become exercisable in such calendar year will be Incentive Options and the Options (or portion thereof) for shares with a value in excess of $100,000 that first became exercisable in that calendar year will be Nonqualified Options. In the event the Code or the regulations promulgated thereunder are amended after the Effective Date of the Plan to provide for a different limitation on. the Fair Market Value of shares permitted to be subject to Incentive Options, then such different limit shall be automatically incorporated herein. To the extent that any Incentive Options are first exercisable by a Participant in excess of the limitation described herein, the excess shall be considered a Nonqualified Option.

 

(g)        Nontransferability of Options: Incentive Options shall not be transferable (including by sale, assignment, pledge or hypothecation) other than transfers by will or the laws of intestate succession, in the Administrator's discretion, such transfers (for no consideration) as may otherwise be permitted in accordance with Treas. Reg. Section 1.421-1(b)(2) or Treas. Reg. Section 1.421-2(c) or any successor provisions thereto. Nonqualified Options shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by will or the laws of intestate succession, except for transfers (for no consideration), if and to the extent permitted by the Administrator in a manner consistent with the registration provisions of the Securities Act. Except as may be permitted by the preceding, an Option shall be exercisable during the Participant’s lifetime only by him or by his guardian or legal representative. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

	
			8.

				
			Stock Appreciation Rights 

			

 

(a)          Grant of SARs: Subject to the terms of the Plan, the Administrator may in its discretion grant SARs to such eligible Participants, in such numbers, upon such terms and at such times as the Administrator shall determine. SARs may be granted to the holder of an Option (a “Related Option”) with respect to all or a portion of the shares of Common Stock subject to the Related Option (a “Related SAR”) or may be granted separately to an eligible individual (a “Freestanding SAR”). The Base Price per share of an SAR shall be no less than 100% of the Fair Market Value per share of the Common Stock on the date the SAR is granted. Notwithstanding the foregoing, the Administrator may in its discretion authorize the grant of substitute or assumed SARs of an acquired entity with a Base Price per share not equal to at least 100% of the Fair Market Value of the stock on the date of grant, if the terms of such substitution or assumption otherwise comply, to the extent deemed applicable, with Code Section 409A and/or Code Section 424(a). An SAR shall be considered to be granted on the date that the Administrator acts to grant the SAR, or on such later date as may be established by the Administrator in accordance with Applicable Law.

 

12

 

 

(b)          Related SARs: A Related SAR may be granted either concurrently with the grant of the Related Option or (if the Related Option is a Nonqualified Option) at any time thereafter prior to the complete exercise, termination, expiration or cancellation of such Related Option. The Base Price of a Related SAR shall be equal to the Option Price of the Related Option. Related SARs shall be exercisable only at the time and to the extent that the Related Option is exercisable (and may be subject to such additional limitations on exercisability as the Administrator may provide in an Award Agreement), and in no event after the complete termination or full exercise of the Related Option. Notwithstanding the foregoing, a Related SAR that is related to an Incentive Option may be exercised only to the extent that the Related Option is exercisable and only when the Fair Market Value exceeds the Option Price of the Related Option. Upon the exercise of a Related SAR granted in connection with a Related Option, the Option shall be canceled to the extent of the number of shares as to which the SAR is exercised, and upon the exercise of a Related Option, the Related SAR shall be canceled to the extent of the number of shares as to which the Related Option is exercised or surrendered.

 

(c)          Freestanding SARs: An SAR may be granted without relationship to an Option (as defined above, a “Freestanding SAR”) and, in such case, will be exercisable upon such terms and subject to such conditions as may be determined by the Administrator, subject to the terms of the Plan.

 

(d)          Exercise of SARs:

 

(i)          Subject to the terms of the Plan, SARs shall be vested and exercisable in whole or in part upon such terms and conditions as may be established by the Administrator. The period during which an SAR may be exercisable shall not exceed 10 years from the date of grant or, in the case of Related SARs, such shorter Option Period as may apply to the Related Option. Any SAR or portion thereof not exercised before expiration of the period established by the Administrator shall terminate.

 

(ii)         SARs may be exercised by giving written notice to the Company in form acceptable to the Administrator at such place and subject to such terms and conditions as may be established by the Administrator or its designee. Unless the Administrator determines otherwise, the date of exercise of an SAR shall mean the date on which the Company shall have received proper notice from the Participant of the exercise of such SAR.

 

(iii)       The Administrator shall determine the extent, if any, to which a Participant may have the right to exercise an SAR following termination of the Participant’s employment or service with the Company. Such rights, if any, shall be determined in the sole discretion of the Administrator, shall be stated in the individual Award Agreement, need not be uniform among all SARs issued pursuant to this Section 8, and may reflect distinctions based on the reasons for termination of employment or service.

 

(e)           Payment Upon Exercise: Subject to the limitations of the Plan, upon the exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying (i) the excess, if any, of the Fair Market Value of a share of Common Stock on the date of exercise of the SAR over the Base Price of the SAR by (ii) the number of shares of Common Stock with respect to which the SAR is being exercised. The consideration payable upon exercise of an SAR shall be paid in cash, shares of Common Stock (valued at Fair Market Value on the date of exercise of the SAR) or a combination of cash and shares of Common Stock, as determined by the Administrator.

 

(f)         Nontransferability: Unless the Administrator determines otherwise, SARs shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by will or the laws of intestate succession, except for transfers (for no consideration) if and to the extent permitted by the Administrator in a manner consistent with the registration provisions of the Securities Act. Except as may be permitted by the preceding sentence, SARs may be exercised during the Participant’s lifetime only by him or her or by his or her guardian or legal representative. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

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			9.

				
			Restricted Awards

			

 

(a)         Grant of Restricted Awards: Subject to the terms of the Plan, the Administrator may in its discretion grant Restricted Awards to such Participants, for such numbers of shares of Common Stock, upon such terms and at such times as the Administrator shall determine. Such Restricted Awards may be in the form of Restricted Stock Awards and/or Restricted Stock Units that are subject to certain conditions, which conditions must be met in order for the Restricted Award to vest and be earned (in whole or in part) and no longer subject to forfeiture. Restricted Stock Awards shall be payable in shares of Common Stock. Restricted Stock Units shall be payable in cash or shares of Common Stock, or partly in cash and partly in shares of Common Stock, in accordance with the terms of the Plan and the discretion of the Administrator. The Administrator shall determine the nature, length and starting date of the period, if any, during which a Restricted Award may vest and be earned (the “Restriction Period”), and shall determine the conditions which must be met in order for a Restricted Award to be granted or to vest or be earned (in whole or in part), which conditions may include, but are not limited to, payment of a stipulated purchase price, attainment of performance objectives, continued service or employment for a certain period of time, a combination of attainment of performance objectives and continued service, Retirement, Disability, death or any combination of such conditions. In the case of Restricted Awards based upon performance factors or criteria, or a combination of performance factors or criteria and continued service, the Administrator shall determine the Performance Measures applicable to such Restricted Awards.

 

(b)          Vesting of Restricted Awards: Subject to the terms of the Plan (and taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether and to what degree Restricted Awards have vested and been earned and are payable and to establish and interpret the terms and conditions of Restricted Awards.

 

(c)          Termination of Employment or Service; Forfeiture: Unless the Administrator determines otherwise, if the employment or service of a Participant shall be terminated for any reason (whether by the Company or the Participant and whether voluntary or involuntary) and all or any part of a Restricted Award has not vested or been earned pursuant to the terms of the Plan and related Award Agreement, such Award, to the extent not then vested or earned, shall be forfeited immediately upon such termination and the Participant shall have no further rights with respect thereto.

 

(d)          Share Certificates; Escrow: Unless the Administrator determines otherwise, a certificate or certificates representing the shares of Common Stock subject to a Restricted Stock Award shall be issued in the name of the Participant (or, in the case of uncertificated shares, other written evidence of ownership in accordance with Applicable Law shall be provided) after the Award has been granted. Notwithstanding the foregoing, the Administrator may require that (i) a Participant deliver the certificate(s) (or other instruments) for such shares to the Administrator or its designee to be held in escrow until the Restricted Stock Award vests and is no longer subject to a substantial risk of forfeiture (in which case the shares will be promptly released to the Participant) or is forfeited (in which case the shares shall be returned to the Company); and/or (ii) a Participant deliver to the Company a stock power, endorsed in blank (or similar instrument), relating to the shares subject to the Restricted Stock Award which are subject to forfeiture. Unless the Administrator determines otherwise, a certificate or certificate representing shares of Common Stock issuable pursuant to a Restricted Stock Unit shall be issued in the name of the Participant (or, in the case of uncertificated shares, other written evidence of ownership in accordance with Applicable Law shall be provided) promptly after the Award (or portion thereof) has vested and been earned and is distributable.

 

(e)          Nontransferability: Unless the Administrator determines otherwise, Restricted Awards that have not vested shall not be transferable (including by sale, assignment, pledge or hypothecation) other than transfers (for no consideration) by will or the laws of intestate succession, and the recipient of a Restricted Award shall not sell, transfer, assign, pledge or otherwise encumber shares subject to the Award until the Restriction Period has expired and until all conditions to vesting have been met. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

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			10.

				
			Performance Awards

			

 

(a)         Grant of Performance Awards: Subject to the terms of the Plan, the Administrator may in its discretion grant Performance Awards to such eligible Participants upon such terms and conditions and at such times as the Administrator shall determine. Performance Awards may be in the form of Performance Shares and/or Performance Units. An Award of a Performance Share is a grant of a right to receive shares of Common Stock, the cash value thereof, or a combination thereof (in the Administrator’s discretion), which is contingent upon the achievement of performance or other objectives during a specified period and which has a value on the date of grant equal to the Fair Market Value of a share of Common Stock. An Award of a Performance Unit is a grant in an amount determined by the Administrator that gives the holder the opportunity to receive shares of Common Stock, a cash payment or a combination of Common Stock and cash (as determined by the Administrator), which is contingent upon the achievement of performance or other objectives during a specified period and which has an initial value determined in a dollar amount established by the Administrator at the time of grant. The Administrator shall have discretion to determine the number of Performance Units and/or Performance Shares granted to any Participant. The Administrator shall determine the nature, length and starting date of the period during which a Performance Award may be earned (the “Performance Period”), and shall determine the conditions which must be met in order for a Performance Award to be granted or to vest or be earned (in whole or in part), which conditions may include but are not limited to payment of a stipulated purchase price, attainment of performance objectives, continued service or employment for a certain period of time or a combination of any such conditions. The Administrator shall determine the Performance Measures applicable to such Performance Awards.

 

(b)         Earning of Performance Awards: Subject to the terms of the Plan (and taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether and to what degree Performance Awards have been earned and are payable and to interpret the terms and conditions of Performance Awards and the provisions of this Section 10.

 

(c)          Form of Payment: Payment of the amount to which a Participant shall be entitled upon earning a Performance Award shall be made in cash, shares of Common Stock or a combination of cash and shares of Common Stock, as determined by the Administrator in its sole discretion. Payment may be made in a lump sum or upon such terms as may be established by the Administrator (taking into account any Code Section 409A considerations).

 

(d)         Termination of Employment or Service; Forfeiture: Unless the Administrator determines otherwise (taking into account any Code Section 409A considerations), if the employment or service of a Participant shall terminate for any reason (whether by the Company or the Participant and whether voluntary or involuntary) and the Participant has not earned all or part of a Performance Award pursuant to the terms of the Plan and related Award Agreement, such Award, to the extent not then earned, shall be forfeited immediately upon such termination and the Participant shall have no further rights with respect thereto.

 

(e)        Nontransferability: Unless the Administrator determines otherwise, Performance Awards which have not been earned shall not be transferable (including by sale, assignment, pledge or hypothecation) other than transfers (for no consideration) by will or the laws of intestate succession, and the recipient of a Performance Award shall not sell, transfer, assign, pledge or otherwise encumber any shares or any other benefit subject to the Award until the Performance Period has expired and the conditions to earning the Award have been met. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

	
			11.

				
			Phantom Stock Awards

			

 

(a)          Grant of Phantom Stock Awards: Subject to the terms of the Plan, the Administrator may in its discretion grant Phantom Stock Awards to such eligible Participants, in such numbers, upon such terms and at such times as the Administrator shall determine. A Phantom Stock Award is an Award to a Participant of a number of hypothetical share units with respect to shares of Common Stock, with a value based on the Fair Market Value of a share of Common Stock.

 

(b)         Vesting of Phantom Stock Awards: Subject to the terms of the Plan (and taking into account any Code Section 409A considerations), the Administrator shall have sole authority to determine whether and to what degree Phantom Stock Awards have vested and are payable and to interpret the terms and conditions of Phantom Stock Awards.

 

15

 

 

(c)        Termination of Employment or Service; Forfeiture: Unless the Administrator determines otherwise (taking into account any Code Section 409A considerations), if the employment or service of a Participant shall be terminated for any reason (whether by the Company or the Participant and whether voluntary or involuntary) and all or any part of a Phantom Stock Award has not vested and become payable pursuant to the terms of the Plan and related Award Agreement, such Award, to the extent not then vested or earned, shall be forfeited immediately upon such termination and the Participant shall have no further rights with respect thereto.

 

(d)          Payment of Phantom Stock Awards: Upon vesting of all or a part of a Phantom Stock Award and satisfaction of such other terms and conditions as may be established by the Administrator, the Participant shall be entitled to a payment of an amount equal to the Fair Market Value of one share of Common Stock with respect to each such Phantom Stock unit which has vested and is payable. Payment may be made, in the discretion of the Administrator, in cash or in shares of Common Stock valued at their Fair Market Value on the applicable vesting date or dates (or other date or dates determined by the Administrator), or in a combination thereof. Payment may be made in a lump sum or upon such terms as may be established by the Administrator (taking into account any Code Section 409A considerations).

 

(e)          Nontransferability: Unless the Administrator determines otherwise, (i) Phantom Stock Awards shall not be transferable (including by sale, assignment, pledge or hypothecation) other than transfers (for no consideration) by will or the laws of intestate succession and (ii) shares of Common Stock (if any) subject to a Phantom Stock Award may not be sold, transferred, assigned, pledged or otherwise encumbered until the Phantom Stock Award has vested and all other conditions established by the Administrator have been met. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

	
			12.

				
			Other Stock-Based Awards

			

 

The Administrator shall have the authority to grant Other Stock-Based Awards to one or more eligible Participants. Such Other Stock-Based Awards may be valued in whole or in part by reference to, or otherwise based on or related to, shares of Common Stock or Awards for shares of Common Stock, including but not limited to Other Stock-Based Awards granted in lieu of bonus, salary or other compensation, Other Stock-Based Awards granted with vesting or performance conditions, and/or Other Stock-Based Awards granted without being subject to vesting or performance conditions. Subject to the provisions of the Plan, the Administrator shall determine the number of shares of Common Stock to be awarded to a Participant under (or otherwise related to) such Other Stock-Based Awards; whether such Other Stock-Based Awards shall be settled in cash, shares of Common Stock or a combination of cash and shares of Common Stock; and the other terms and conditions of such Awards. Unless the Administrator determines otherwise, (i) Other Stock-Based Awards shall not be transferable (including by sale, assignment, pledge or hypothecation) other than transfers (for no consideration) by will or the laws of intestate succession, and (ii) shares of Common Stock (if any) subject to an Other Stock-Based Award may not be sold, transferred, assigned, pledged or otherwise encumbered until the Other Stock-Based Award has vested and all other conditions established by the Administrator have been met. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

 

	
			13.

				
			Dividends and Dividend Equivalents

			

 

The Administrator may, in its sole discretion, provide that Awards other than Options and SARs earn dividends or dividend equivalent rights (“dividend equivalents”); provided, however, that dividends and dividend equivalents (whether paid in cash or shares of Common Stock), if any, or unearned or unvested Awards shall not be paid (even if accrued) unless and until the underlying Award (or portion thereof) has vested and/or been earned. Any crediting of dividends or dividend equivalents may be subject to such additional restrictions and conditions as the Administrator may establish, including reinvestment in additional shares of Common Stock or share equivalents. Notwithstanding the other provisions herein, any dividends or dividend equivalents related to an Award shall be structured in a manner so as to avoid causing the Award and related dividends or dividend equivalents to be subject to Code Section 409A or shall otherwise be structured so that the Award and dividends or dividend equivalents are in compliance with Code Section 409A.

 

16

 

 

	
			14.

				
			Change of Control

			

 

(a)        General: Notwithstanding any other provision in the Plan to the contrary, and except as otherwise provided in Section 14(b), the following provisions shall apply in the event of a Change of Control (except to the extent, if any, otherwise required under Code Section 409A or provided in an Award Agreement):

 

(i)         To the extent that the successor or surviving company in the Change of Control event does not assume or substitute for an Award (or in which the Company is the ultimate parent corporation and does not continue the Award) on substantially similar terms or with substantially equivalent economic benefits (as determined by the Administrator) as Awards outstanding under the Plan immediately prior to the Change of Control event, (A) all outstanding Options and SARs shall become fully vested and exercisable, whether or not then otherwise vested and exercisable; and (B) any restrictions, including but not limited to the Restriction Period, Performance Period and/or performance factors or criteria applicable to any outstanding Award other than Options or SARs shall be deemed to have been met, and such Awards shall be deemed vested and earned in full at target.

 

(ii)         Further, in the event that an Award is substituted, assumed or continued as provided in Section 14(a)(i) herein, the Award will nonetheless become vested (and, in the case of Options and SARs, exercisable) and any restrictions, including but not limited to the Restriction Period, Performance Period and/or performance factors or criteria applicable to any outstanding Award shall be deemed to have been met, and such Awards shall be deemed vested and earned in full at target, if the employment or service of the Participant is terminated within six months before (in which case vesting shall not occur until the effective date of the Change of Control) or one year (or such other period after a Change of Control as may be stated in a Participant’s employment agreement, change in control agreement or similar agreement or arrangement, if applicable) after the effective date of a Change of Control if such termination of employment or service (A) is by the Company not for Cause or (B) is by the Participant for Good Reason. For clarification, for the purposes of this Section 14, the “Company” shall include any successor to the Company.

 

(b)         Effect of Employment Agreement or Other Agreement: Notwithstanding any other provision of the Plan to the contrary, and unless an individual Award Agreement expressly provides otherwise, in the event that a Participant has entered into an employment agreement, change of control agreement or similar agreement or arrangement with the Company, the Participant shall be entitled to the greater of the benefits provided upon a change of control of the Company under the Plan or the respective employment agreement, change of control agreement or similar agreement or arrangement, and such employment agreement, change of control agreement or similar agreement or arrangement shall not be construed to reduce in any way the benefits otherwise provided to a Participant upon the occurrence of a Change of Control as defined in the Plan.

 

	
			15.

				
			Withholding

			

 

The Company shall withhold all required local, state, federal, foreign and other taxes and any other amount required to be withheld by any governmental authority or law from any amount payable in cash with respect to an Award. Prior to the delivery or transfer of any certificate for shares or any other benefit conferred under the Plan, the Company shall require any Participant or other person to pay to the Company in cash the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account of such recipient. Notwithstanding the foregoing, the Administrator may in its discretion establish procedures to permit a recipient to satisfy such obligation in whole or in part, and any local, state, federal, foreign or other income tax obligations relating to such an Award, by electing (the “election”) to deliver to the Company shares of Common Stock held by the Participant (which are fully vested and not subject to any pledge or other security interest) and/or to have the Company withhold shares of Common Stock from the shares to which the recipient is otherwise entitled. The number of shares to be delivered or withheld shall have a Fair Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to, but not exceeding (unless otherwise permitted by the Administrator in a manner in accordance with Applicable Law and applicable accounting principles), the amount of such obligations being satisfied. Each election must be made in writing to the Administrator in accordance with election procedures established by the Administrator. The Participant shall remain responsible at all times for paying any federal, state, foreign and/or local income or employment tax due with respect to any Award, and the Company shall not be liable for any interest or penalty that a Participant incurs by failing to make timely payments of tax or otherwise.

 

17

 

 

	
			16.

				
			Amendment and Termination of the Plan and Awards

			

 

(a)           Amendment and Termination of Plan; Prohibition on Repricing: The Plan may be amended, altered, suspended and/or terminated at any time by the Board; provided, that (i) approval of an amendment to the Plan by the stockholders of the Company shall be required to the extent, if any, that stockholder approval of such amendment is required by Applicable Law; and (ii) except for adjustments made pursuant to Section 5(d) or in connection with a Change of Control as provided in Section 14, the Company may not, without obtaining stockholder approval, (A) amend the terms of outstanding Options or SARs to reduce the Option Price or Base Price of such outstanding Options or SARs; (B) exchange outstanding Options or SARs for cash, for Options or SARs with an Option Price or Base Price that is less than the Option Price or Base Price of the original Option or SAR, or for other equity awards at a time when the original Option or SAR has an Option Price or Base Price, as the case may be, above the Fair Market Value of the Common Stock; or (C) take other action with respect to Options or SARs that would be treated as a repricing under the rules of the principal stock exchange on which shares of the Common Stock are listed.

 

(b)         Amendment and Termination of Awards: The Administrator may (subject to Section 16(a)(ii) herein) amend, alter, suspend and/or terminate any Award granted under the Plan, prospectively or retroactively, but (except as otherwise provided in Section 16(c)) such amendment, alteration, suspension or termination of an Award shall not, without the written consent of the Participant with respect to an outstanding Award, materially adversely affect the rights of the Participant with respect to the Award.

 

(c)           Amendments to Comply with Applicable Law: Notwithstanding Section 16(a) and Section 16(b) herein, the following provisions shall apply:

 

(i)          The Administrator shall have unilateral authority to amend the Plan and any Award (without Participant consent) to the extent necessary to comply with Applicable Law or changes to Applicable Law (including but in no way limited to Code Section 409A, Code Section 422 and federal securities laws).

 

(ii)        The Administrator shall have unilateral authority to make adjustments to the terms and conditions of Awards in recognition of unusual or nonrecurring events affecting the Company or any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in Applicable Law, or accounting principles, if the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or necessary or appropriate to comply with applicable accounting principles or Applicable Law.

 

	
			17.

				
			Restrictions on Awards and Shares; Compliance with Applicable Law

			

 

(a)        General: As a condition to the issuance and delivery of Common Stock hereunder, or the grant of any benefit pursuant to the Plan, the Company may require a Participant or other person at any time and from time to time to become a party to an Award Agreement, other agreement(s) restricting the transfer, purchase, repurchase and/or voting of shares of Common Stock of the Company, and any employment agreements, consulting agreements, noncompetition agreements, confidentiality agreements, nonsolicitation agreements, nondisparagement agreements or other agreements imposing such restrictions as may be required by the Company. In addition, without in any way limiting the effect of the foregoing, each Participant or other holder of shares issued under the Plan shall be permitted to transfer such shares only if such transfer is in accordance with the Plan, the Award Agreement, any other applicable agreements and Applicable Law. The Administrator reserves the right to impose other requirements on an Award and the shares acquired upon vesting of the Award, to the extent the Administrator determines it is necessary or advisable for legal or administrative reasons, and to require a Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. The acquisition of shares of Common Stock under the Plan by a Participant or any other holder of shares shall be subject to, and conditioned upon, the agreement of the Participant or other holder of such shares to the restrictions described in the Plan, the Award Agreement and any other applicable agreements and Applicable Law.

 

18

 

 

(b)         Compliance with Applicable Laws, Rules and Regulations: The Company may impose such restrictions on Awards, shares of Common Stock and any other benefits underlying Awards hereunder as it may deem advisable, including without limitation restrictions under the federal securities laws, the requirements of any stock exchange or similar organization and any blue sky, state or foreign securities or other laws applicable to such securities. Notwithstanding any other Plan provision to the contrary, the Company shall not be obligated to issue, deliver or transfer shares of Common Stock under the Plan, make any other distribution of benefits under the Plan, or take any other action, unless such delivery, distribution or action is in compliance with Applicable Law (including but not limited to the requirements of the Securities Act). The Company will be under no obligation to register shares of Common Stock or other securities with the Securities and Exchange Commission or to effect compliance with the exemption, registration, qualification or listing requirements of any state securities laws, stock exchange or similar organization, and the Company will have no liability for any inability or failure to do so. The Company may cause a restrictive legend or legends to be placed on any certificate issued pursuant to an Award hereunder in such form as may be prescribed from time to time by Applicable Law or as may be advised by legal counsel.

 

	
			18.

				
			No Right or Obligation of Continued Employment or Service or to Awards; Compliance with the Plan

			

 

Neither the Plan, an Award, an Award Agreement nor any other action related to the Plan shall confer upon a Participant any right to continue in the employ or service of the Company or an Affiliate as an Employee, Director or Independent Contractor, or interfere in any way with the right of the Company or an Affiliate to terminate the Participant’s employment or service at any time. Except as otherwise provided in the Plan, an Award Agreement or as may be determined by the Administrator, all rights of a Participant with respect to an Award shall terminate upon the termination of the Participant’s employment or service. In addition, no person shall have any right to be granted an Award, and the Company shall have no obligation to treat Participants or Awards uniformly. By participating in the Plan, each Participant shall be deemed to have accepted all of the conditions of the Plan and the terms and conditions of any rules and regulations adopted by the Administrator and shall be fully bound thereby. Any Award granted hereunder is not intended to be compensation of a continuing or recurring nature, or part of a Participant’s normal or expected compensation, and in no way represents any portion of a Participant’s salary, compensation or other remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose.

 

	
			19.

				
			General Provisions

			

 

(a)          Stockholder Rights: Except as otherwise determined by the Administrator (and subject to the provisions of Section 9(d) regarding Restricted Awards), a Participant and his legal representative, legatees or distributees shall not be deemed to be the holder of any shares of Common Stock subject to an Award and shall not have any rights of a stockholder unless and until certificates for such shares have been issued and delivered to him, her or them under the Plan. A certificate or certificates for shares of Common Stock acquired upon exercise of an Option or SAR shall be issued in the name of the Participant or his or her beneficiary and distributed to the Participant or his or her beneficiary (or, in the case of uncertificated shares, other written notice of ownership in accordance with Applicable Law shall be provided) as soon as practicable following receipt of notice of exercise and, with respect to Options, payment of the Option Price (except as may otherwise be determined by the Company in the event of payment of the Option Price pursuant to Section 7(d)(ii)(C)). Except as otherwise provided in Section 9(d) regarding Restricted Stock Awards or otherwise determined by the Administrator, a certificate for any shares of Common Stock issuable pursuant to a Restricted Award, Performance Award, Phantom Stock Award or Other Stock-Based Award shall be issued in the name of the Participant or his or her beneficiary and distributed to the Participant or his or her beneficiary (or, in the case of uncertificated shares, other written notice of ownership in accordance with Applicable Law shall be provided) after the Award (or portion thereof) has vested and been earned.

 

(b)         Section 16(b) Compliance: To the extent that any Participants in the Plan are subject to Section 16(b) of the Exchange Act, it is the general intention of the Company that transactions under the Plan shall comply with Rule 16b-3 under the Exchange Act and that the Plan shall be construed in favor of such Plan transactions meeting the requirements of Rule 16b-3. Notwithstanding anything in the Plan to the contrary, the Administrator, in its sole and absolute discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any provision of the Plan to Participants who are officers or directors subject to Section 16 of the Exchange Act without so restricting, limiting or conditioning the Plan with respect to other Participants.

 

19

 

 

(c)          Unfunded Plan; No Effect on Other Plans:

 

(i)          The Plan shall be unfunded, and the Company shall not be required to create a trust or segregate any assets that may at any time be represented by Awards under the Plan. The Plan shall not establish any fiduciary relationship between the Company and any Participant or other person. Neither a Participant nor any other person shall, by reason of the Plan, acquire any right in or title to any assets, funds or property of the Company or any Affiliate, including, without limitation, any specific funds, assets or other property which the Company or any Affiliate, in their discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to shares of Common Stock or other amounts, if any, payable under the Plan, unsecured by any assets of the Company or any Affiliate. Nothing contained in the Plan shall constitute a guarantee that the assets of such entities shall be sufficient to pay any benefits to any person.

 

(ii)         The amount of any compensation deemed to be received by a Participant pursuant to an Award shall not constitute compensation with respect to which any other employee benefits of such Participant are determined, including, without limitation, benefits under any bonus, pension, profit sharing, life insurance or salary continuation plan, except as otherwise specifically provided by the terms of such plan or as may be determined by the Administrator.

 

(iii)        The adoption of the Plan shall not affect any other stock incentive or other compensation plans in effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other forms of stock incentive or other compensation for employees or service providers of the Company or any Affiliate.

 

(d)          Governing Law: The Plan and Awards shall be governed by and construed in accordance with the laws of the State of Georgia, without regard to the conflict of laws provisions of any state, and in accordance with applicable federal laws of the United States.

 

(e)          Beneficiary Designation: The Administrator may, in its discretion, permit a Participant to designate in writing a person or persons as beneficiary, which beneficiary shall be entitled to receive settlement of Awards (if any) to which the Participant is otherwise entitled in the event of death. In the absence of such designation by a Participant, and in the event of the Participant’s death, the estate of the Participant shall be treated as beneficiary for purposes of the Plan, unless the Administrator determines otherwise. The Administrator shall have discretion to approve and interpret the form or forms of such beneficiary designation. A beneficiary, legal guardian, legal representative or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent that the Plan and/or Award Agreement provide otherwise, and to any additional restrictions deemed necessary or appropriate by the Administrator.

 

(f)           Gender and Number: Except where otherwise indicated by the context, words in any gender shall include any other gender, words in the singular shall include the plural and words in the plural shall include the singular.

 

(g)          Severability: If any provision of the Plan or an Award Agreement shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan or the Award Agreement, and the Plan or Award Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

 

(h)          Rules of Construction: Headings are given to the sections of the Plan solely as a convenience to facilitate reference. The reference to any statute, regulation or other provision of law shall (unless the Administrator determines otherwise) be construed to refer to any amendment to or successor of such provision of law.

 

(i)           Successors and Assigns: The Plan shall be binding upon the Company, its successors and assigns, and Participants, their executors, administrators and permitted transferees and beneficiaries.

 

20

 

 

(j)          Award Agreement: The grant of any Award under the Plan shall be evidenced by an Award Agreement between the Company and the Participant. Such Award Agreement may state terms, conditions and restrictions applicable to the Award and may state such other terms, conditions and restrictions, including but not limited to terms, conditions and restrictions applicable to shares of Common Stock (or other benefits) subject to an Award, as may be established by the Administrator.

 

(k)        Right of Offset: Notwithstanding any other provision of the Plan or an Award Agreement, the Company may at any time (subject to any Code Section 409A considerations) reduce the amount of any payment or benefit otherwise payable to or on behalf of a Participant by the amount of any obligation of the Participant to or on behalf of the Company or an Affiliate that is or becomes due and payable.

 

(l)         Uncertificated Shares: Notwithstanding anything in the Plan to the contrary, to the extent the Plan provides for the issuance of stock certificates to reflect the issuance of shares of Common Stock, the issuance may, in the Company’s discretion, be effected on a non-certificated basis, to the extent not prohibited by the Company’s certificate of incorporation or bylaws or by Applicable Law (including but not limited to applicable state corporate law and the applicable rules of any stock exchange on which the Common Stock may be traded).

 

(m)         Income and Other Taxes: Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with Awards (including but not limited to any taxes arising under Code Section 409A), and the Company shall not have any obligation to indemnify or otherwise hold any Participant harmless from any or all of such taxes. The Company shall have no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for a Participant or any other person.

 

(n)          Effect of Certain Changes in Status: Notwithstanding the other terms of the Plan or an Award Agreement, the Administrator has sole discretion to determine (taking into account any Code Section 409A considerations), at the time of grant of an Award or at any time thereafter, the effect, if any, on Awards (including but not limited to modifying the vesting, exercisability and/or earning of Awards) granted to a Participant if the Participant’s status as an Employee, Director or Independent Contractor changes, including but not limited to a change from full-time to part-time, or vice versa, or if other similar changes in the nature or scope of the Participant’s employment or service occur.

 

(o)         Stockholder Approval: The Plan is subject to approval by the stockholders of the Company, which approval must occur, if at all, within twelve (12) months of the Effective Date. Awards granted prior to such stockholder approval shall be conditioned upon and shall be effective only upon approval of the Plan by such stockholders on or before such date if and to the extent required under Applicable Law or so determined by the Administrator. Amendments to the Plan shall be subject to stockholder approval if and to the extent required under Applicable Law.

 

(p)          Deferrals: Subject to the provisions of this Section 19(p) and Section 20, the Administrator may permit or require a Participant to defer such Participant’s receipt of the payment of cash or the delivery of shares of Common Stock that would otherwise be payable with respect to an Award. Any such deferral shall be subject to such terms and conditions as may be established by the Administrator and to any applicable Code Section 409A requirements.

 

(q)         Fractional Shares: Except as otherwise provided in an Award Agreement or determined by the Administrator, (i) the total number of shares issuable pursuant to the exercise, vesting or earning of an Award shall be rounded down to the nearest whole share, and (ii) no fractional shares shall be issued. The Administrator may, in its discretion, determine that a fractional share shall be settled in cash.

 

(r)          Compliance with Recoupment, Ownership and Other Policies or Agreements: Notwithstanding anything in the Plan or an Award Agreement to the contrary, the Administrator may, at any time, consistent with, but without limiting, the authority granted in Section 3(b) herein, in its discretion provide that an Award, shares of Common Stock, cash or other benefits related to an Award shall be forfeited and/or recouped if the Participant, during employment or service or following termination of employment or service for any reason, engages in certain specified conduct, including but not limited to violation of policies of the Company or an Affiliate, breach of non-solicitation, noncompetition, confidentiality or other restrictive covenants, or other conduct by the Participant that is determined by the Administrator to be detrimental to the business or reputation of the Company or any Affiliate. In addition, without limiting the effect of the foregoing, as a condition to the grant of an Award or receipt or retention of shares of Common Stock, cash or any other benefit under the Plan, the Administrator may, at any time, require that a Participant agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies adopted by the Company or an Affiliate, each as in effect from time to time and to the extent applicable to the Participant. Further, each Participant shall be subject to such compensation recovery, recoupment, forfeiture or other similar provisions as may apply under Applicable Law.

 

21

 

 

(s)          Attestation: Wherever in the Plan or any Award Agreement a Participant is permitted to pay the Option Price of an Option or taxes relating to the exercise, vesting or earning of an Award by delivering shares of Common Stock, the Participant may, unless the Committee determines otherwise and subject to procedures satisfactory to the Committee, satisfy such delivery requirements by presenting proof of beneficial ownership of such shares, in which case the Company shall treat the Award as exercised, vested or earned without further payment and/or shall withhold such number of shares from the shares acquired by the exercise, vesting or earning of the Award, as appropriate.

 

(t)          Plan Controls: Unless the Administrator determines otherwise, (i) in the event of a conflict between any term or provision contained in the Plan and an express term contained in any Award Agreement, the applicable terms and provisions of the Plan will govern and prevail, and (ii) the terms of an Award Agreement shall not be deemed to be in conflict or inconsistent with the Plan merely because they impose greater or additional restrictions, obligations or duties, or if the Award Agreement provides that such Award Agreement terms apply notwithstanding the provisions to the contrary in the Plan.

 

(u)        Electronic Delivery and Participation: The Company may, in its sole discretion, decide to deliver to and obtain a Participant’s acceptance of any documents related to an Award that may be granted under the Plan by electronic means or request such Participant’s consent to participate in the Plan by electronic means.

 

	
			20.

				
			Compliance with Code Section 409A

			

 

Notwithstanding any other provision in the Plan or an Award Agreement to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Plan or any Award, it is the general intention of the Company that the Plan and all such Awards shall, to the extent practicable, comply with, or be exempt from, Code Section 409A, and the Plan and any such Award Agreement shall, to the extent practicable, be construed in accordance therewith. Deferrals of shares or any other benefit issuable pursuant to an Award otherwise exempt from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals are in compliance with, or exempt from, Code Section 409A. In the event that the Company (or a successor thereto) has any stock which is publicly traded on an established securities market or otherwise, distributions that are subject to Code Section 409A to any Participant who is a “specified employee” (as defined under Code Section 409A) upon a separation from service may only be made following the expiration of the six-month period after the date of separation from service (as defined in Code Section 409A) (with such distributions to be made during the seventh month following separation of service), or, if earlier than the end of the six-month period, the date of death of the specified employee, or as otherwise permitted under Code Section 409A. For purposes of Code Section 409A, each installment payment provided under the Plan or an Award Agreement shall be treated as a separate payment. Without in any way limiting the effect of any of the foregoing, (i) in the event that Code Section 409A requires that any special terms, provisions or conditions be included in the Plan or any Award Agreement, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Plan or Award Agreement, as applicable, and (ii) terms used in the Plan or an Award Agreement shall be construed in accordance with Code Section 409A if and to the extent required. Further, in the event that the Plan or any Award shall be deemed not to comply with Code Section 409A, then neither the Company, the Administrator nor its or their designees or agents shall be liable to any Participant or other person for actions, decisions or determinations made in good faith.

 

 

[Signature Page to Follow]

 

22

 

 

IN WITNESS WHEREOF, this GeoVax Labs, Inc. 2023 Stock Incentive Plan is, by the authority of the Board of Directors of the Company, executed on behalf of the Company, the ____ day of __________, 2023.

 

	 	
			GEOVAX LABS, INC.  

			
	 	 	 
	 	 	 
	 	
			By:

				 
	 	
			Name:

				 
	 	
			Title:

				 

 

	
			ATTEST:

				 
	 	 	 
	 	 	 
	
			By:

				 	 
	
			Name:

				 	 
	
			Title:

				 	 

 

23

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