Document:

EX-10.20

 Exhibit 10.20 

 
 

 
 VALNEVA SE 

Terms and conditions of Phantom Stock Option Plan 2019 

 

 1. Preliminary statements 

 

	1.1	 This Phantom Stock Option Plan 2019 (“PSOP 2019”) is a deferred cash bonus program aiming at
promoting the interests of the company “Valneva SE” (“Valneva” or “the Company”) by allowing Participants (as defined below) to benefit from a long-term incentive program that creates a financial
result similar to the Employee Stock Option Plan 2019 (the “ESOP”). 

 “Participant(s)”
means employees of Valneva USA, Inc. and those employees of Valneva Austria GmbH or Valneva SE who are subject to US income tax and are employed by any of these entities on September 27, 2019 or not later than sixty (60) days after
September 27, 2019, excluding the members of the Management Committee, the Grade 14 employees and all employees who participated in the ESOP. “Being employed” means either having an employment agreement under which work is being done
and remuneration is being paid or having an employment agreement and being on maternity or paternity leave. 
  

	1.2	 The granting of Phantom Options (as defined below) under this PSOP 2019 shall not give rise to a legal right
for the Participants to participate in a subsequent or similar plan. 

 2. Granting of Phantom Stock Options 

 

	2.1	 The Management Board or persons appointed by the Management Board for this purpose shall have sole competence
over the grant of phantom stock options (the “Phantom Options”) under this PSOP 2019. The Management Board or such persons shall further determine the number and category of Phantom Options granted to each Participant and the Strike
Price (as defined in Section 3.9 below); this information will be provided on an individual basis, by delivering a grant letter to each Participant. 

  

	2.2	 The grant of Phantom Options to the Participants is free of charge. However, the cash payments resulting from
the program are subject to all applicable taxes and contributions (cf. Section 7 below). 

 3. Exercise of
Phantom Options 
 Conversion ratio 
  

	3.1	 Subject to all Terms and Conditions set forth herein, phantom shares may be created at the rate of
(1) Phantom Option to one (1) phantom share. However, if the conversion ratio under the ESOP is modified, then the ratio applicable to Phantom Options under this PSOP 2019 shall be adjusted accordingly. 

Vesting of Phantom Options 
  

	3.2	 Subject to the Performance Condition and the exercise periods set forth below, one third (1/3) of the Phantom
Options allocated to the Participants shall become exercisable from September 30, 2020, an additional one third (1/3) of the Phantom Options allocated to the Participants shall become exercisable from September 30, 2021 and the remainder
shall become exercisable from September 30, 2022. If one third of an allocation is not a whole number, it shall be rounded down for the first two tranches. For each of the above-mentioned tranches, the exercise of Options shall be conditioned
on the relevant Participant having been rated not less than “Meet Expectations” (regardless of the sign “+”, “=” or “-”) in the annual performance appraisal immediately preceding the date when the relevant
Options become exercisable, e.g. the 2019 appraisal for the first tranche (the “Performance Condition”). Subject to Section 4.2, this condition shall apply to each tranche independently, i.e. a failure to meet it
for a given tranche will not affect the vesting of other tranches. If the Performance Condition is not satisfied with respect to any tranche, the Options held by the relevant Participant in that tranche shall lapse without compensation.

 Exercise periods 

 

	3.3	 The Participants may exercise their Phantom Options and claim the corresponding cash payment only within
specific time periods provided for this purpose (the “Time Frame(s)”). Each Time Frame will be announced by Valneva’s Management Board. Subject to statutory and regulatory limitations applicable to the ESOP, there will be up to
two (2) Time Frames per calendar year, and each of them will last no longer than two (2) weeks. 

  

	3.4	 The Company reserves the right to postpone, suspend or terminate any Time Frame, in accordance with applicable
laws and regulations. 

  

	3.5	 Subject to Section 4 below, any Phantom Option that was exercisable in a Time Frame (in accordance with
Section 3.2 above) but was not exercised during that Time Frame can be exercised by the relevant Participant during any of the following Time Frames. 

  

	3.6	 In the event of a Change of Control (as defined below), all outstanding Phantom Options shall become
exercisable, and a Time Frame shall immediately begin, at the time the Change of Control is effective (this process being herein referred to as the “Acceleration”). 

For purposes of this Section 3.6, “Change of Control” means a transaction by which a single party, or two or more
parties acting in concert, take over more than fifty percent (50 %) of the outstanding voting rights of the Company (be it through an acquisition, merger or transfer of essentially all of the assets of the Company). 

Declaration of Exercise 
  

	3.7	 The Participants shall exercise their Phantom Options by sending a duly completed and signed form (the
“Exercise Notice”) to the Human Resources department (“HR”) in Vienna, Austria. This form may be sent as an original or electronically. 

 

	3.8	 The exercise of Phantom Options shall be deemed in time insofar as the Exercise Notice is received by HR at the
earliest on the first day of the relevant Time Frame, and no later than 6 p.m., Paris time, on the last day of such Time Frame. Any Exercise Notice received by HR outside this period will be void. In such a case, the relevant Participant may
exercise his/her Phantom Options during a subsequent Time Frame, if he/she so wishes (subject to Section 4 below). 

Calculation of Bonus Payment 
  

	3.9	 The “Strike Price” shall be the amount to be deducted from the cash payment to be made under
this PSOP 2019 after exercise of Phantom Options. 

 The Strike Price under this PSOP 2019 shall be equal to EUR 3.05 per
phantom share resulting from the exercise of Phantom Options. However, if the “Strike Price” under the ESOP is adjusted, then the Strike Price under this PSOP 2019 shall be adjusted accordingly. 

 

	3.10	 Following exercise of Phantom Options, each Participant shall be entitled to receive an amount equal to the
difference between the closing price of Valneva’s ordinary stock on the day the Exercise Notice was received (or on the immediately following trading day if the Paris Stock Exchange was closed on the day of receipt) and the Strike Price, less
all deductions, taxes and contributions applicable to bonus payments. By way of example, if the conversion ratio is 1:1, Valneva’s stock price is EUR 4.62 and the amount of Phantom Options exercised is 10,000, then the gross amount to be paid
(before applicable deductions) shall be EUR 15,700. 

 Cash Payments 

 

	3.11	 Participants shall receive payments resulting from the exercise of Phantom Options together with the salary
owed for the calendar month immediately following the month during which the Exercise Notice was received. Where such payments are made in a currency other than the euro, the Company retains the right to select a currency exchange ratio consistent
with its internal accounting rules. 

 

  

			
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 4. Validity period of Phantom Options - Lapse 

 

	4.1	 Subject to the other limitations set forth herein, the Phantom Options may be exercised until
September 30, 2029. All Phantom Options not exercised by that date shall lapse without compensation. 

  

	4.2	 Upon termination of employment within the VLA Group (as defined below), the Phantom Options of a leaving
Participant shall lapse without compensation. Notwithstanding the foregoing, a leaving Participant shall retain the right to exercise those Phantom Options which were exercisable prior to termination of employment, but only during the first Time
Frame which will immediately follow termination of employment, and on condition that the Company had already opened a Time Frame under this PSOP 2019 prior to termination of employment. “VLA Group” shall mean Valneva SE and its
direct and indirect subsidiaries. 

  

	4.3	 In the event of a Participant’s death, all granted Phantom Options not exercisable prior to the date of
death shall lapse without compensation. However, any exercisable Phantom Options may be exercised pursuant to Section 5.2 below. 

  

	4.4	 In the event that insolvency proceedings are initiated with respect to the Company or the Company becomes
insolvent, all Phantom Options shall lapse without compensation. 

  

	4.5	 The Company may also cancel a Phantom Option if the legal form of the Company changes. If, and at the time
when, a transaction referred to in Section 3.6 or a change in the legal form of the Company occurs, any exercisable Phantom Option with a Strike Price higher than the then current Valneva stock price (or, in the event of Change of Control, than
the value per share paid in the take-over transaction) shall lapse without compensation. Any acquisition, merger or transfer of essentially all of the assets of the Company which does not lead to a Change of Control shall not trigger Acceleration,
but may give rise to replacement of Phantom Options by options in the successor company. 

  

	4.6	 In the event of expiration or lapse of Phantom Options, the Company shall not be required to inform the
relevant Participants or to take any other action, and the Participants shall have no right to any compensation. 

 5.
Unassignability of options 
  

	5.1	 The Phantom Options granted to the Participants under the PSOP 2019 shall not be transferable, negotiable or
eligible as collateral, except through transfer by death (i.e. disposition by will or law). 

  

	5.2	 The Phantom Options may only be exercised personally by the Participant during his/her lifetime or by his/her
legal representative. During the six (6)-month period immediately following the date of death of a Participant, only his/her heirs or the legal representative of the heirs, in each case as identified by corresponding documentation submitted to the
Company, may declare the exercise of all remaining exercisable Phantom Options. The Phantom Options shall be deemed immediately exercised if a Time Frame is opened at the time of the declaration. If there is no Time Frame opened at the time the
exercise is declared, the Phantom Options shall be deemed exercised during the first day of the Time Frame directly subsequent to the declaration. 

6. Shareholder’s rights 
  

	6.1	 Participants shall have no shareholder rights, and in particular no right to receive dividends.

  

	6.2	 If the Company proceeds with any of the financial transactions listed in article L. 228-99 of the French Commercial code, the rights of the Participants shall be protected in a way economically similar to the provisions of that article, which may result in a change in the conversion ratio or the
Strike Price. 

 7. Fees, taxes and duties 

 

	7.1	 Subject to Section 7.2, the Company shall bear all costs and expenses incurred in connection with the
preparation and implementation of this PSOP 2019. 

  

	7.2	 The Participants shall bear all deductions, taxes and contributions applicable to bonus payments.

 The Participants shall further bear all expenses for personal advice, in particular with respect to legal or tax
matters. 

 8. Miscellaneous 

 

	8.1	 This PSOP 2019 shall be governed by and construed in accordance with French law, without regard to its choice
of law principles. 

  

	8.2	 The Company shall have the right to terminate or amend this PSOP 2019 at any time, subject to all applicable
laws and regulations. 

 VALNEVA SE

 

  

			
	Page | 2EX-10.21

 Exhibit 10.21 

Valneva SE 
 (the
“Company”) 
 Phantom Stock Plan 2020 

Terms and Conditions 
  

	 	1.	 Background and purpose of the Program 

On December 19, 2019 (the “Reference Date”), the Company’s Management Board (“MB”) decided to launch a free share
plan (the “FSP 2019”) and granted free ordinary shares (“FS”) to members of the MB or the Management Committee. 
 This
Phantom Stock Plan 2020 (the “PSP 2020”) is a deferred cash bonus program aiming at promoting the interests of the Company by allowing the Participants (as defined below) to benefit from a long-term incentive program that creates a
financial result similar to the FSP 2019. 
 “Participants” shall mean those grade 14 and 15 employees of the Company or any of its direct
and indirect subsidiaries (collectively, the “Valneva Group”) who (a) were employed by the Valneva Group on December 19, 2019, (b) have been continuously employed by the Valneva Group in the period from December 19,
2019 until the MB’s decision to launch the PSP 2020, (c) did not receive FS under the FSP 2019, (d) did not receive stock options under the Employee Stock Option Plan 2019 or received not more than 10 options under that plan and (e) did
not receive phantom stock options under the Phantom Stock Option Plan 2019. 
  

	 	2.	 Phantom share granting 

 

	 	2.1	 Allocations 

A number of free phantom shares (“FPS”) will be conditionally granted to each Participant as set forth below. 

Each grade 15 Participant: 90,000 FPS; 
 Each grade 14
Participant: 60,000 FPS 
  

	 	2.2	 Tranches 

Subject to the vesting conditions set forth below, the FPS granted to a Participant will vest in that participant in three tranches. 

Each tranche will amount to one third of the total individual allocation. If one third is not a whole number, the FPS number will be rounded down for the
first two tranches and rounded up for the third tranche. 

 The tranches will vest in the Participants as follows: 

 

	 	•	 	 First tranche: two (2) years after the Reference Date (as defined below), i.e. on December 19,
2021; 

  

	 	•	 	 Second Tranche: three (3) years after the Reference Date, i.e. on December 19, 2022;

  

	 	•	 	 Third Tranche: four (4) years after the Reference Date, i.e. on December 19, 2023.

  

	 	3.	 Further terms and conditions 

 

	 	3.3	 Performance conditions 

The vesting of each tranche will be contingent upon the Participant’s performance in the Relevant Year (as defined below) having been rated not lower than
“Meets Expectations” (regardless of any qualifying sign), as assessed by his/her supervisor under the Company’s employee performance appraisal rules. 

“Relevant Year” means 2021 for the first tranche, 2022 for the second tranche and 2023 for the third tranche. 

If a vesting period expires before the performance has been assessed for the Relevant Year, the vesting of the relevant tranche will be postponed until all
Participants in the PSP 2020 have been assessed. 
  

	 	3.4	 Further vesting conditions 

Participants must continuously remain an employee (full time or not less than 80%) or corporate officer of the Company or a direct or indirect subsidiary of
the Company until vesting, subject to the retirement exception set forth below. 
  

	 	3.5	 Accelerated vesting in case of change of control 

If (a) a Change of Control (as defined below) occurs and (b) the performance condition stated above was met for the calendar year immediately
preceding the year of Change of Control (or for the year of Change of Control if already assessed), all tranches will vest immediately. 
 “Change
of Control” means that a person or entity other than the Company’s current shareholders has taken control of the Company, “control” having the meaning set forth in Article L 233-3 of
the French commercial code. 
  

	 	3.6	 Retirement: 

Participants who will retire in accordance with the age requirements of their applicable retirement regime before complete vesting will remain entitled to a
prorated amount of FPS, for each unvested tranche, based on the period from the Reference Date until retirement, as compared to the total duration of the tranche in question (2, 3 or 4 years); provided, however, that the performance condition stated
above was met in the performance appraisal immediately preceding the retirement. The tranches unvested upon retirement will then vest at the end of the applicable vesting period as set out in section 2.2. 

 By way of example, a Participant retiring on June 19, 2020 and having obtained a “Meets
Expectations” rating for 2019 will remain entitled to: 
  

	 	•	 	 25% of tranche 1; 

  

	 	•	 	 16.66% of tranche 2; and 

 

	 	•	 	 12.5% of tranche 3. 

As a further example, a Participant retiring on June 19, 2022 and having obtained a “Meets Expectations” rating in his/her last annual
performance appraisal will remain entitled to 75% of tranche 3 (noting that tranches 1 and 2 will have already vested at that time). 
 If the number of
vested phantom shares calculated in accordance with the above is not a whole number, it will be rounded down. 
  

	 	3.7	 Death 

Heirs will be allowed to request vesting within six months after the death of a Participant. Such vesting will be conditioned on the same performance condition
as accelerated vesting in case of Change of Control. The day of vesting will be the date when the Company receives a registered letter or acknowledges receipt of an email from all heirs or their duly authorized representative requesting such
vesting. 
  

	 	3.8	 Payments 

Following vesting or Change of Control, each Participant shall be entitled to receive an amount equal to the closing price of Valneva’s ordinary stock on
the day of vesting (or on the immediately following trading day if the Paris Stock Exchange was closed on the day of vesting), less all deductions, taxes and contributions applicable to bonus payments. By way of example, if Valneva’s stock
price is EUR 4.62 and the amount of phantom shares vested is 20,000, then the gross amount to be paid (before applicable deductions) shall be EUR 92,400. 

Participants shall receive payments resulting from the vesting of phantom shares together with the salary owed for the calendar month immediately following
the month of vesting. 
 In the event of retirement or death, payments shall be made at the end of the calendar month immediately following the month of
vesting. 
 Where any payments are to be made in a currency other than the euro, the Company retains the right to select a currency exchange ratio
consistent with its internal accounting rules. 
  

	 	4.	 Additional provisions 

 

	 	4.1	 The Participants shall bear all deductions, taxes and contributions applicable to bonus payments.

  

	 	4.2	 This PSP 2020 shall be governed by and construed in accordance with French law. 

 

	 	4.3	 The Company shall have the right to make reasonable amendments to this PSP 2020 at any time, subject to
applicable laws and regulations. 

	 	4.4	 The rights granted to the Participants under this PSP 2020 are personal to them and cannot be assigned,
transferred, sold, donated or pledged, subject to Section 3.7.

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