Document:

Exhibit 10.8

 Exhibit 10.8 
  
 

 
  
 01 May 2005 
  
 Gary Phillips 
 Greenways, 8 Lonsdale Avenue 
 Pymble, NSW 2073 
 Australia 
  
 Dear Gary, 
  
 On behalf of Pharmaxis Ltd, I have pleasure in offering you a further contract of employment
in accordance with the particulars contained in this letter. 
  

	1	Nature of Position 

  
 The position is as Commercial Director and is with Pharmaxis Ltd (“the Company”). Your employment will be based at the Company’s offices in Sydney. You may have to travel to other places from time to
time to carry out your duties. You will report to the Chief Executive Officer and your duties and responsibilities will be as required from time to time by the Chief Executive Officer. 
  
 You must observe all rules, regulations, directions and policies of the Company, use your best efforts in furtherance of the business of the
Company and perform your duties faithfully and to the best of your ability. 
  

	2	Duration of Contract 

  
 This is a full time position effective from 30 June 2005 - the date your current contract expires. You will be required to work a minimum of 5 days per week. Hours of duty per day will be based broadly upon the
Company’s normal working hours. You may also be required to work extended hours or additional days as reasonably required by the Company if you are able to do so. 
  
 Subject to the earlier termination of your employment, the term of your employment will be to 30th June 2008 (“End Date”), after
which date it is agreed and understood that your employment with the Company terminates automatically unless this contract is extended in writing or a further written contract of employment is entered into. The Company will endeavour to discuss its
intentions no later than three months before the expiry of this contract. Notwithstanding any representation to the contrary, the Company is not under any obligation express or implied, to renew your contract or offer you any employment after the
expiry of the contract term unless the contract is formally extended in writing before the End Date. 
  

							
	 	  	 Pharmaxis Ltd
 ABN 75 082 811
630
	    	 Unit 2, 10 Rodborough Road
 Frenchs Forest NSW 2086
 Australia
	    	 T 02 9451 5961
 F 02 9451
3622
 www.pharmaxis.com.au

  

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	3	Remuneration 

  
 Your remuneration will comprise of the following:- 
  

	•	 	A base salary of $194,500 per annum with effect from 01 July 2005 payable in 12 equal calendar monthly instalments on the usual payment date for employees and deposited into a bank
account nominated by you by electronic funds transfer or an alternative method selected by the Company. 

  

	•	 	Superannuation in line with statutory requirements will be paid in accordance with the Company’s policies to either the superannuation plan appointed by the Company or an
appropriate superannuation fund nominated by you. Currently this amount comprises 9% of your base salary 

  

	•	 	In addition, you may at the discretion of the Remuneration Committee of the Company be awarded a performance related bonus which may be awarded subject to you meeting an agreed set
of key performance indicators. The maximum achievable bonus will be determined by The Remuneration Committee at the start of the financial year, and the amount of bonus to be paid, will be determined by The Remuneration Committee of the Company at
the end of the financial year. The Company will endeavour to pay any bonus by 01 September of the relevant year. 

  

	•	 	The costs of professional society memberships, where appropriate, will be met by Pharmaxis. 

  

	4	Employee Option Scheme 

  
 The Company operates an Employee Option Scheme in which you will continue to participate. The number of options you are granted is determined by the Remuneration
Committee of the Company. 
  

	5	Leave 

  
 Conditions of employment for holidays and leave are as provided under applicable law and awards and are at present: 
  

	 	5.1	Pharmaxis Ltd Holidays - Pharmaxis Ltd closes for the Christmas/New Year period, the actual days being determined by the Board of Directors each year. These non public
holidays are to be taken from your annual leave entitlement. The Company will allow all gazetted public holidays in NSW. 

  

	 	5.2	Annual Leave - You are entitled to a proportionate number of working days annual leave based on the rate of four weeks’ per annum for a full-time employee. Annual leave
will normally be taken in full each year. No leave loading will be payable. 

  

	 	5.3	Sick Leave – Sick leave is credited at a proportionate number of working days based on the rate of 15 days per annum for a full-time employee on appointment and service
anniversaries, unused credits being cumulative. A medical certificate may be required. Unused sick leave is not paid out on termination of your employment. 

  

	 	5.4	Long Service Leave and Recognition of Prior Service - Leave entitlement is in accordance with New South Wales legislation. 

  

	 	5.5	Other Leave - Leave may be granted with pay as follows; bereavement leave, compassionate leave, leave to appear in court or serve as a juror, leave to train with the Armed
Forces Reserve, leave to attend courses of study, maternity leave, paternity leave, etc. Leave without pay may be granted at the discretion of the Company. 

  

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	6	Confidentiality 

  

	 	6.1	During and after your employment, you must not use or disclose to any person any information about the business; affairs; strategies; processes; secrets; intellectual property;
technology or know-how (including information marked “confidential” or “secret” or which you are informed is confidential or secret); dealings; finances; and organization of the Company, which you obtain in the course of your
employment and which is not available to the public without the prior written consent of the Company. 

  

	 	6.2	During and after your employment, you must not use any information which you obtain in the course of your employment, in any way which might cause loss to the Company.

  

	 	6.3	In relation to information regarding the business; affairs; strategies; processes; secrets; intellectual property; technology or know-how; dealings; finance; and organization of the
Company you must: 

  

	 	6.3.1	only use the information exclusively as required in the performance of your employment with the Company for the benefit or advantage of the Company and for no other purpose;

  

	 	6.3.2	comply with any security measures established by the Company from time to time to safeguard the information from unauthorised access or use; 

  

	 	6.3.3	keep the information under your possession or control; 

  

	 	6.3.4	not make any unauthorised copies of the whole or any part of the information; 

  

	 	6.3.5	immediately notify the Company of any suspected or actual unauthorised use, copying or disclosure of the information, of which you become aware; and 

  

	 	6.3.6	during and after your employment, provide assistance reasonably requested by the Company in relation to any proceedings it may take against any person for unauthorised use, copying
or disclosure of the information. 

  

	 	6.4	Your obligations of confidentiality under this clause do not extend to information that: 

  

	 	6.4.1	was rightfully known to or in your possession or control, prior to your first involvement with the Company and which was not then subject to an obligation of confidentiality on your
part; 

  

	 	6.4.2	is public knowledge (otherwise than as a result of breach by you of an obligation of confidentiality or a breach of confidence by any other person); or 

  

	 	6.4.3	is required by law to be disclosed. 

  

	7	Intellectual Property 

  

	 	7.1	You must promptly, fully and effectively disclose to the Company or its nominee either in writing, orally or both (as required by the Company) full details of:

  

	 	7.1.1	each and every invention (whether patentable or not), process, know-how, formula design (whether registrable or not), trademark or service mark and all other intellectual or
industrial property rights of all kinds; and 

  

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	 	7.1.2	any copyright material, trade secret or other confidential information, 

  

	 	  	generated by you at any time during your employment (whether or not during business hours), relating to or connected with any of the matters which have been, are or may become
subject of Company’s business affairs or business and whether or not capable of statutory protection. 

  

	 	7.2	In exchange for the benefits conferred on you by your employment: 

  

	 	7.2.1	you agree that by virtue of this provision, to the extent permitted by law, all intellectual property referred to in clause 7.1 is the property of the Company or its nominee;

  

	 	7.2.2	as any intellectual property is developed, created or invented, you irrevocably and absolutely assign to the Company your entire right title and interest both present and future
throughout the world to and in the intellectual property referred to in clause 7.1 free from all mortgages, charges and other third party interests; 

  

	 	7.2.3	you consent to all acts or omissions by the Company in relation to your moral rights in all copyright works referred to in clause 7.1; and 

  

	 	7.2.4	you consent to the infringement of your moral rights in all copyright works referred to in clause 7.1 by the Company, its licensees, assignees and successors in title and any person
authorised by the Company at the absolute discretion of the Company and without reference to you. 

  

	 	7.3	You must: 

  

	 	7.3.1	at the request and expense of the Company; and 

  

	 	7.3.2	without additional compensation from the Company, 

  

	 	  	sign all such documents (including assignment deeds) and do all such things as may be necessary to vest, confirm and perfect and record ownership by the Company or its nominee
throughout the world of the right, title and interest to and in the intellectual property referred to in clause 7.1 and to enable the Company or its nominee to acquire and preserve such rights and to have the full enjoyment of such intellectual
property. 

  

	 	7.4	You must keep complete written records of everything you invent or develop. These records belong to the Company and must be at all times retained in your custody and control at the
Company’s premises and must be handed to the Company on demand. 

  

	8	Termination and expiration of your Employment 

  

	 	8.1	Either party may terminate your employment by giving three months written notice to the other party. The Company may pay you for the notice period in lieu of notice, or require you
to work some of the notice period and pay you in lieu for the balance of the period. 

  

	 	8.2	The Company may also terminate your employment: 

  

	 	8.2.1	at any time if you are mentally or physically unfit to perform your responsibilities and discharge your duties under this contract for a total of 2 months in any 12 month period, by
giving one month’s notice to you (or making payment in lieu of notice); 

  

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	 	8.2.2	on the grounds of redundancy, pursuant to a determination of redundancy made by the Company. In such circumstances, the redundancy provisions of any applicable industrial award or
agreement shall apply and the redundancy payment to be made shall be calculated in accordance with such applicable provisions, notwithstanding any other provision of this contract. If no such industrial award is applicable, the redundancy payment
will be 2 months remuneration. 

  

	 	8.3	The Company may also terminate your employment without notice for “cause”, including without limitation if: 

  

	 	8.3.1	you commit any serious or persistent breach of this contract; 

  

	 	8.3.2	you fail to comply with any reasonable directions of the Company; 

  

	 	8.3.3	you are guilty of any serious misconduct or wilful neglect in performing your duties; 

  

	 	8.3.4	you engage in fraudulent conduct or are found guilty of an indictable offence; 

  

	 	8.3.5	you are found to have used alcohol or drugs intemperately; 

  

	 	8.3.6	you are in breach of any Company policy; or 

  

	 	8.3.7	you recklessly or intentionally injure the Company’s business or affairs. 

  

	 	8.4	You acknowledge that the periods of notice or lack of periods of notice set out above are reasonable. 

  

	 	8.5	On the expiry or termination of the contract, you will be paid an amount in lieu of any accrued but unused annual leave and long service leave entitlements.

  

	 	8.6	When your employment ends, you must deliver to the Company all property belonging to, or leased by, the Company or an associated company in your control, including stationery,
cheque books, books, documents, records, disks, access cards, keys, mobile telephone, computer hardware, credit cards and motor vehicle any computer login codes and all confidential information. 

  

	9	Restrictive Covenants 

  

	 	9.1	You must not during your employment; and for a period of twelve months after termination of your employment, directly or indirectly, on your own account or on behalf of any person
or entity, anywhere in which the Company or its associates carries on business: 

  

	 	9.1.1	participate, promote, carry on, assist or otherwise be concerned or interested financially or otherwise, in any capacity (including as principal, agent, partner, employee,
shareholder, unit holder, director, trustee, beneficiary, financier, consultant or adviser) in any business or activity which is the same as, or substantially similar to the business of the Company or its associates, unless the Company otherwise
agrees in writing; 

  

	 	9.1.2	solicit, canvass, induce or encourage any employee or agent of the Company or its associates to leave the employment or agency of the Company or such associates;

  

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	 	9.1.3	solicit, canvass, approach any customer or prospective customer of the Company or its associates with a view to soliciting the business of that customer; or

  

	 	9.1.4	interfere or seek to interfere with the relationship between the Company or its associates (on the one hand) and the customers, prospective customers, suppliers and employees of the
Company or its associates (on the other hand). 

  

	 	9.2	You acknowledge the prohibitions and restrictions contained in this clause 9 are reasonable in the circumstances and necessary to protect the Company and its associate’s
businesses. 

  

	 	9.3	For the purpose of this clause 9, an “associate” is any corporation, venture, partnership or other business entity or vehicle over which the Company has direct or indirect
control or which has direct or indirect control over the Company. A “prospective customer” means any person, firm or company who has been engaged in discussion with the Company with a view to purchasing goods or services from the Company
during the period of six months immediately prior to the termination date. 

  

	 	9.4	Each of the obligations contained in the above provisions of this clause constitutes an entirely separate and independent restriction notwithstanding that they may be contained in
the same sub-clause, paragraph, sentence or phrase. This clause must be read down to the extent necessary to be valid. 

  

	 	9.5	The covenants set out in this clause are considered by both you and the Company to be reasonable and necessary for the protection of the Company’s legitimate interests in all
the circumstances and in particular by reason of your access to highly confidential information relating to the Company’s business. 

  

	10	Outside Interests 

  

	 	10.1	Without limiting clause 9, during your employment with the Company, you must not directly or indirectly: 

  

	 	10.1.1	engage in any outside activity (including employment, profession, trade, business, membership of House of Parliament or other public office or appointment), whether paid or unpaid;
or 

  

	 	10.1.2	have an interest in any business or company (other than companies listed on the Australian Stock Exchange), 

  

	 	  	which could, in the Company’s opinion, conflict with your duties, without written approval of the board of directors of the Company. 

  

	 	10.2	If the Company requests, you must disclose to the Company all your outside activities and interests in businesses and companies. 

  

	11	Policy with Respect to Smoking 

  
 Smoking is not permitted in any building occupied by the Company. 
  

	12	Accident Reporting 

  
 Staff members injured whilst at work or in travelling to or from work are required promptly to report the injury to the supervisor. Appropriate documentation as prescribed by WorkCover should be submitted if
necessary. 
  

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	13	Miscellaneous Conditions 

  

	 	13.1	This contract may be altered only by an agreement in writing signed by you and an officer of the Company authorised for this purpose. 

  

	 	13.2	This offer lapses if you do not sign and return the documentation to me by 15 May 2005. No liability or responsibility shall be accepted by the Company for any variation in the
terms of the appointment as herein stated or for any undertaking or representation given or made concerning the appointment unless the same is in writing and signed by the Chief Executive Officer or her/his delegate. Prospective appointees are
responsible for obtaining such written confirmation of any special conditions or undertakings relating to appointment. 

  

	14	Law 

  
 The interpretation of the agreement constituted by your acceptance of this offer is governed by the laws of the State of New South Wales. A provision of this contract must be read down to the extent necessary to be
valid in a particular jurisdiction. If it cannot be read down it must be severed. 
  
 Importantly, I thank you for your contribution to the growth of Pharmaxis and look forward to the future. 
  
 Acceptance of this offer of a contract of employment, on the terms and conditions set out in this letter of offer will be signified by your signing both copies of this
letter and returning one copy to me by 15 May 2005. 
  
 Yours sincerely,

  

			
	 	  	Accepted
		
	 /s/ Alan D Robertson

	  	 
	 Alan D Robertson
 Chief Executive
Officer
 Pharmaxis Ltd
	  	 
	  	 /s/ Gary Phillips

	  	Gary Phillips

  

							
	 	  	 Pharmaxis Ltd
 ABN 75 082 811
630
	    	 Unit 2, 10 Rodborough Road
 Frenchs Forest NSW 2086
 Australia
	    	 T 02 9451 5961
 F 02 9451
3622
 www.pharmaxis.com.au

  

 Page 7 of 7Exhibit 10.15

 Exhibit 10.15 
  
 PHARMAXIS LTD 
 ACN 082 811 630 
  
  
  
  
  
  
  
  
  
  
  
  
 EMPLOYEE OPTION PLAN 

 TABLE OF CONTENTS 
  

					
	1	  	DEFINITIONS AND INTERPRETATIONS	  	1
	2	  	GRANT OF OPTIONS	  	3
	3	  	MAXIMUM NUMBER OF OPTIONS	  	4
	4	  	NOTICE OF GRANT OF OPTIONS	  	4
	5	  	EXERCISE OF OPTIONS	  	5
	6	  	LAPSE OF OPTIONS	  	6
	7	  	BUY BACK	  	7
	8	  	NO TRANSFERS	  	7
	9	  	QUOTATION OF OPTIONS AND SHARES	  	7
	10	  	VARIATIONS OF CAPITAL AND PARTICIPATION RIGHTS	  	8
	11	  	LIQUIDITY EVENTS	  	10
	12	  	PLAN AND OPTION AMENDMENTS	  	10
	13	  	ADMINISTRATION	  	10
	14	  	NOTICES	  	11
	15	  	TERMINATION OF THE PLAN	  	11
	16	  	GOVERNING LAW	  	11

  
  
  
  
 Approved by the
Board 12th May 2003 Name change Feb 2005 

 Pharmaxis Ltd 
 ACN 082 811 630 
  
 EMPLOYEE OPTION PLAN 
  

	1	DEFINITIONS AND INTERPRETATIONS 

  
 1.1 Definitions 
  
 In this Plan unless there is something in the subject or context inconsistent, the following terms have the following meaning: 
  
 “Board” means the Board of Directors from time to time of
the Company, or any sub-committee of the Board of the Company to which responsibility for this Plan is delegated from time to time; 
  
 “Business Day” means any day on which banks (as that expression is defined in the Banking Act 1959) are open for normal banking business
in Sydney, New South Wales other than a Saturday, Sunday or public holiday; 
  
 “Company” means Pharmaxis Ltd ABN 75 082 811 630; 
  
 “Corporations Act” means the Corporations Act 2001 (“Cth”); 
  
 “Directors” means the Directors from time to time of the Company; 
  
 “Exercise Price” in respect of an Option, means the price
determined in accordance with Clause 6.10; 
  
 “Eligible Person” means any person considered by the Board to be employed by the Company or any other entity in the Group whether full time, part time or on a long term casual basis and includes all executive and
non-executive directors; 
  
 “Expert” means the
person appointed at any time and from time to time by the Board (being a person reasonably believed by the Board to be a competent valuer) to determine the Market Value of a Share; 
  
 “Group” means the Company and all of its Subsidiaries or other related bodies corporate; 
  
 “Listed” means that a class of securities of the Company are
admitted to the official list of, or otherwise listed on, a securities exchange; 
  
 “Listing Rules” means the listing rules of a securities exchange on which the Company is Listed; 
  
 “Liquidity Event” means: 
  

	 	(a)	while the Company is not listed, a disposal of the whole or substantially the whole of the property, business and undertaking of the Company; 

  
  
  
 Approved by the Board 12th May 2003 Name change Feb 2005 

	 	(b)	while the Company is not Listed, a disposal by the holders of 100% of the Shares in the Company of their Shares, or the acquisition by one of the shareholders in the Company of all
of the remaining Shares, other than in the context of a solvent reconstruction where underlying beneficial ownership remains substantially unchanged; or 

  

	 	(c)	if the Company is Listed, a target statement is issued by the Company in respect of a takeover offer for all the Shares of the Company ; 

  
 “Market Value” in relation to a Share, means the amount
determined by the Board as being the market value of the Share, calculated having regard to such matters and factors as the Board may consider to be relevant to the Company including without limitation:
  

	 	(a)	the profitability of the Company; 

  

	 	(b)	future prospects and opportunities; 

  

	 	(c)	recent transactions and developments of other companies of a similar type or engaged in a similar business to that of the Company; and/or 

  

	 	(d)	the value as determined by the Expert (applying generally accepted valuation methods) provided that the decision as to whether or not to engage an Expert shall rest entirely in the
discretion of the Board; 

  
 “Option” means an option to acquire Shares pursuant to the Plan; 
  
 “Optionholder” means a person who holds an Option(s) granted under and in accordance with this Plan; 
  
 “Plan” means this Employee Option Plan as amended from time to time; 
  
 “Share” means a fully paid ordinary share in the capital of the Company; 
  
 “Shareholders’ Agreement” means a shareholders’
agreement entered into between the Company and the shareholders of the Company; 
  
 “Subsidiary” has the meaning given to that expression in the Corporations Act. 
  
 1.2    Interpretation 
  
 In this Plan unless there is something in the subject or context inconsistent: 
  

	 	1.2.1	a reference to any legislation or to any provision of any legislation shall include any modification or re-enactment of, or any legislative provision substituted for, and all
legislation and statutory instruments issued under, such legislation or such provision and shall include the corresponding legislation in such other State or Territory of the Commonwealth of Australia as may be relevant from time to time;

  

	 	1.2.2	words (including words defined in this Plan) denoting the singular number shall include the plural and vice versa; 

  

	1	Discuss 

  

 2 

	 	1.2.3	words importing natural persons shall (where appropriate) include corporations, firms, unincorporated associations, partnerships, trusts and any other entities recognised by law and
vice versa; 

  

	 	1.2.4	words denoting any gender shall include all genders; 

  

	 	1.2.5	words “written” and “in writing” include any means of visible reproduction of words in a tangible and permanently viable form;

  

	 	1.2.6	references to Clauses are references to the Clauses of this Plan; 

  

	 	1.2.7	a reference to any document or agreement shall be deemed to include references to such document or agreement as novated, supplemented, varied or replaced from time to time; and

  

	 	1.2.8	the headings in this Plan are for the purpose of more convenient reference only and shall not form part of this Plan or affect its construction or interpretation.

  
 1.3    Business
Days 
  
 Except where otherwise expressly provided, where
under or pursuant to this Plan the day on or by which any act, matter or thing is to be done is a day other than a Business Day, such act, matter or thing shall be done on the immediately succeeding Business Day. 
  
 1.4    Successors and Assigns 

 
 The obligations and liabilities imposed and the rights and benefits
conferred on persons under this Plan shall be binding upon and enure in favour of the respective persons and each of their respective successors in title, legal personal representatives and permitted assigns. 
  
 1.5    Commencement of the Plan 

 
 Subject to any necessary shareholder approval, this Plan takes effect
from the date determined by the Board. This Plan is an amendment of the preceding plan under which the Company has issued certain Options. The Options granted under the previous plan are hereby amended to conform to the terms of this Plan.

  

	2	GRANT OF OPTIONS 

  

	 	2.1	Subject to Clause 2.3, the Board may, in its discretion and from time to time, grant to Eligible Persons any number of Options on such terms as they may determine in accordance with
these rules. 

  

	 	2.2	The Board may from time to time delegate to the Chief Executive Officer of the Company or the Remuneration Committee, the authority to grant Options and determine the terms on which
those Options are granted to Eligible Persons or specified categories of Eligible Persons. 

  

	 	2.3	If and to the extent applicable at any time, the grant of Options under this Plan generally or to particular Eligible Persons is subject to receipt of any necessary shareholder or
other approvals under: 

  

 3 

	 	2.3.1	the Corporations Act 2001 or any other law applicable to the Company; and 

  

	 	2.3.2	if the Company is Listed, the applicable Listing Rules. 

  

	 	2.4	Subject to any limitations under the Corporations Act 2001 or any other law applicable to the Company, when granting Options to an Eligible Person the Board:

  

	 	2.4.1	must determine the date on which the Options are to lapse (if not exercised or lapsed in accordance with this Plan before that date); 

  

	 	2.4.2	may determine the dates on which the Options vest in the Optionholder and thereby become exercisable by the Optionholder; and 

  

	 	2.4.3	may determine any other conditions which must be satisfied before the Options vest in the Optionholder or are otherwise exercisable by the Optionholder. 

  

	 	2.5	Options must be granted on the terms of this Plan and each Optionholder will be taken to have agreed to be bound by the terms of this Plan and on the terms those Options are
granted, on the grant of Options to that Optionholder. 

  

	 	2.6	Neither this Plan nor any Option shall confer upon any Optionholder any right with respect to continuing the Optionholder’s relationship as an Eligible Person with the Company,
nor shall it interfere with his or her right or the Company’s right to terminate such relationship. 

  

	3	MAXIMUM NUMBER OF OPTIONS 

  

	 	3.1	The maximum number of Options that may be granted under this Plan from time to time is limited to: 

  

	 	3.1.1	15% of the total number of shares on issue in the capital of the Company (calculated as if all securities convertible into Shares had been converted into Shares);

  

	 	3.1.2	if the Company is Listed, such number as is consistent with any applicable Listing Rules; and 

  

	 	3.1.3	to such number having regard to regulatory constraints under the Corporations Act or any other law applicable to the Company. 

  

	4	NOTICE OF GRANT OF OPTIONS 

  

	 	4.1	When Options are granted to an Eligible Person, the Eligible Person (now an Optionholder) is to be notified by the Company of the grant. The notice is to specify:

  

	 	4.1.1	the number of Options granted; 

  

	 	4.1.2	the Exercise Price of the Options granted; 

  

 4 

	 	4.1.3	the date on which the Options lapse as determined by the Board under Clause 2.4; 

  

	 	4.1.4	if applicable, the dates on which the Options vest as determined by the Board under Clause 2.4; and 

  

	 	4.1.5	if applicable, any conditions attaching to vesting of the Options as determined by the Board under Clause 2.4. 

  

	 	4.2	An Eligible Person may, within ten (10) business days after receipt of a notice of grant under Clause 4.1, by notice to the Company, decline to accept some or all of the
Options referred to in the notice of grant. If notice is received from an Eligible Person under this rule, the Options will not be granted to that person. If no notice is received under this rule, the Options are deemed granted to that person.

  

	 	4.3	The Board may determine whether or not an Eligible Person may or may not have to pay consideration for the grant of an Option to that person. 

  

	5	EXERCISE OF OPTIONS 

  

	 	5.1	If an Option is subject to vesting pursuant to Clause 2.4, it may only be exercised if it has vested. 

  

	 	5.2	Subject to Clause 5.1, an Option may be exercised by an Optionholder at such time(s) as the Board determines at the time of grant. 

  

	 	5.3	When exercised, each Option held by an Optionholder entitles the Optionholder to subscribe for and to be issued one Share (credited as fully paid). The subscription price for the
Share is equal to and satisfied by payment of the Exercise Price of the Option. 

  

	 	5.4	An Optionholder may exercise Options by lodging with the Company a notice of exercise in a form approved or accepted by the Board. The notice of exercise must be accompanied by
payment of the aggregate Exercise Price for the Options the subject of the notice. 

  

	 	5.5	If an Optionholder does not exercise all Options held by the Optionholder, the Optionholder must exercise Options in multiples of 100 or other multiple permitted by the Board. On
exercise of any Options by an Optionholder, the Company must issue Shares in accordance with this Plan. The Company must comply with the requirements of the Corporations Act and, if the Company is Listed, the Listing Rules in connection with the
manner and timing of issue of the Shares. The Company is not obliged to issue Shares unless it has received cleared funds on account of the Exercise Price of the relevant Options. 

  

	 	5.6	Shares issued on exercise of Options rank equally with all existing Shares from the date of the issue of such Shares. 

  

	 	5.7	Shares may only be issued in the name of the Optionholder exercising the Option unless the Board otherwise agrees. 

  

 5 

	 	5.8	Shareholders Agreement 

  
 If, at the time that an Optionholder purports to exercise any Option, a Shareholders Agreement is in existence, the Optionholder must also execute the
Shareholders Agreement or, if the Board so determines, a Deed of Accession to the Shareholders Agreement (pursuant to which the Optionholder will be deemed to be a party to the Shareholders Agreement and will agree to be bound by the Shareholders
Agreement) in a form and substance satisfactory to the Company. This sub-Clause does not apply if the Company is Listed. 
  

	 	5.9	Attorney 

  
 Each Optionholder, by accepting the grant of Options irrevocably appoints any two Directors of the Company jointly as their attorneys to do all such acts,
matters and things and to execute transfers and other documents on their behalf to effect compliance by that Optionholder with their obligations under this Plan, and each Optionholder, by accepting the Invitation, ratifies and confirms all such
actions carried out on its behalf by the attorneys. This sub-Clause does not apply if the Company is Listed. 
  

	 	5.10	Exercise Price 

  

	 	5.11	Subject to Clause 10, the Exercise Price in respect of each Option shall be determined by the Board in its absolute discretion and set out in the notice of grant.

  

	 	5.12	Compliance with Laws 

  
 Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issue and delivery of such Shares complies
with all applicable laws. 
  

	6	LAPSE OF OPTIONS 

  

	 	6.1	If an Optionholder ceases to be an Eligible Person (other than through the death of the Optionholder): 

  

	 	6.1.1	all Options which have not yet vested automatically lapse; and 

  

	 	6.1.2	the Options which have already vested in the Optionholder lapse on the expiry of 30 days (or such longer period as determined by the Board) after the date on which the Optionholder
ceases to be an employee (or director as the case may be), unless the employee ceases to be an employee (or director) as a result of termination for cause (as defined in the relevant Optionholder’s employment agreement) dishonesty or fraud in
which case the Options lapse immediately on ceasing to be an employee. 

  

	 	6.2	On the death of an Optionholder: 

  

	 	6.2.1	all Options which have not yet vested automatically lapse; and 

  

	 	6.2.2	 notwithstanding anything to the contrary in this Plan, the Options that had already vested in the Optionholder prior to death, lapse on 

  

 6 

	 	 
the expiry of 12 months after the death of the Optionholder (except to the extent that the executor or beneficiaries of that Optionholder’s estate
exercise any or all of those Options). 

  

	 	6.3	Notwithstanding anything to the contrary contained in this Plan, the Board may in its absolute discretion allow an Optionholder that is no longer an Eligible Person to exercise some
or all of the vested Options held by that Optionholder. 

  

	7	BUY BACK 

  

	 	7.1	The Board may, in its absolute discretion, at any time determine (in accordance with the requirements of the Company’s constitution and the Corporations Act) to revoke, cancel
or make arrangements to buy back Shares issued as a result of the exercise by an Optionholder of an Option at a price that is not less than the Market Value of the Shares and in accordance with the requirements of the Constitution and the
Corporations Act. It is a condition of issue of each Share issued on exercise of an Option that this provision of the Plan continues to apply to the holder of the Shares and its transferees despite exercise of the Options giving rise to the issue of
the Shares. The holder must procure that transferees agree with the Company to be bound by this condition. 

  

	 	7.2	Clause 7.1 only applies until the Company is Listed with the intent that: 

  

	 	7.2.1	Clause 7.1 ceases to apply once the Company is Listed; and 

  

	 	7.2.2	as long as the Company is not listed, if there is a trade sale or takeover of the Company or the Company wishes for any other reason to buy back or cancel Shares issued on exercise
of Options, the Company can do so in accordance with Clause 7.1. 

  

	 	7.3	The provisions of this Clause may be applied on more than one occasion to some or all Shares subject to which this Clause applies. 

  

	8	NO TRANSFERS 

  

	 	8.1	Options may not be transferred, encumbered, assigned or otherwise disposed of except by transmission on death of the Optionholder or with the prior written consent of the Board
(which may be given or withheld at its discretion), and may be exercised (during the lifetime of an Optionholder) only by the relevant Optionholder, or, a person or persons to whom the Options have been transferred pursuant to, and in accordance
with, this Clause. 

  

	 	8.2	The Shares issued on conversion of Options may not be transferred, encumbered, assigned or otherwise disposed of except by transmission on death or with the prior written consent of
the Board. This sub-Clause does not apply if the Company is Listed. 

  

	9	QUOTATION OF OPTIONS AND SHARES 

  

	 	9.1	Options will not be listed on any securities exchange on which the Company is Listed. 

  

	2	This provision can be simplified if you would like. 

	3	For this Clause to work properly we need to bind the assignees to the shareholders agreement etc. 

	

  

 7 

	 	9.2	If the Company is Listed at the time of exercise of any Options, the Company will make application to the relevant securities exchange for listing or quotation of the Shares issued
on exercise of the Options. Any such application is to be made in accordance with the requirements of the applicable Listing Rules. 

  

	 	9.3	The grant of each Option is subject to a condition that if the Company becomes Listed, the Optionholder or holder of Shares issued on exercise of Options must sign any restriction
(escrow) agreement required by the relevant securities exchange or the Company, in respect of the Option or any shares issued on exercise of the Option. 

  

	10	VARIATIONS OF CAPITAL AND PARTICIPATION RIGHTS 

  

	 	10.1	Reorganisation 

  
 In the event of a consolidation, subdivision or similar reconstruction of the issued capital of the Company: 
  

	 	10.1.1	the number of Shares to which a Participant is entitled on exercise of an Option will be reduced or increased in the same proportion as the issued capital of the Company is
consolidated, subdivided or reconstructed (subject to the same provisions with respect to rounding of entitlements as sanctioned by the meeting of shareholders approving the consolidation, subdivision or reconstruction); and

  

	 	10.1.2	an appropriate adjustment will be made to the Exercise Price (if required), to the effect that the total amount payable on an exercise of all Options by each Participant will not
alter. 

  

	 	10.2	Pro rata Rights Issues 

  
 If, prior to an exercise of an Option by an Optionholder, any offer or invitation is made by the Company to at least all holders of Shares, the Exercise
Price of the Option will be reduced according to the following formula: 
  
 O' =  O – E[P–(S + D)] 
 N + 1 
  
 Where: 
  
 O' =  the new Exercise Price of the Option;

  
 O  =  the old Exercise
Price of the Option; 
  
 E  =  the number of Shares into which the Option is exercisable; 
  

	 	P  =	the subscription price for a Share under the pro rata issue or, if the Company is Listed, the average market price per Share (weighted by reference to volume) of the Shares during
the 5 trading days on the exchange on which the shares are Listed ending on the day before the ex-rights date or ex-entitlements date or if there is no such date then the date chosen by the Board. If the Company is Listed on more than one exchange,
then this provision is to be interpreted by reference to trading 

  

 8 

 on the primary exchange on which Shares are Listed (unless the Board otherwise
determines); 
  
 S  =  the
subscription price for a Share under the pro rata issue; 
  
 D  =  the dividend due but not yet paid on the existing Shares (except those to be issued under the pro rata issue); and 
  
 N  =  the number of Shares with rights or entitlements that must be held to receive a
right to one new Share. 
  

	 	10.3	Bonus Issues 

  
 In the event that the Company makes a bonus issue of Shares to ordinary shareholders the number of Shares over which the Options are exercisable may be
increased by the number of Shares which the Optionholder would have received if the relevant Option had been exercised before the record date of the bonus issue. 
  

	 	10.4	Return of Capital 

  
 If, prior to the exercise of an Option by an Optionholder, the Company makes a return of capital to holders of Shares generally, the Exercise Price will
be reduced by the amount of the capital returned in respect of each Share. 
  

	 	10.5	Cumulative Adjustments 

  
 The terms of this Clause 10 relating to bonus issues, rights issues, reconstructions and returns of capital may be applied on more than one occasion such
that their effects may be cumulative. It is intended that the adjustments they progressively effect will be such as to reflect in relation to the Shares subject to Options, the adjustments which on the occasions in question are progressively
effected in relation to Shares already on issue. 
  

	 	10.6	Notice of Adjustments 

  
 Whenever the number of Shares subject to an Option or the Exercise Price is adjusted in accordance with these rules, the Company will give notice of the
adjustment to the Optionholder holding the Option. 
  

	 	10.7	Dividends 

  
 Options shall not confer on the Optionholder a right to participate in any dividends paid by the Company. 
  

	 	10.8	Participation in New Issues 

  
 An Optionholder may only participate in issues of securities by the Company if the Option has been exercised and a Share allotted in respect of the
exercise of that Option before the books closing date for determining entitlements to the security issue. 
  

	 	10.9	Voting 

  
 Options do not confer: 
  

 9 

	 	10.9.1	a right to notices of general meetings, except as may be required by law; 

  

	 	10.9.2	a right to attend or speak at general meetings of the Company; 

  

	 	10.9.3	a right to vote at any such general meetings of the Company. 

  

	11	LIQUIDITY EVENTS 

  
 Upon the occurrence of a Liquidity Event, all Options (if any) which has not yet vested, vest on the Business Day immediately preceding the Liquidity
Event and shall be capable of immediate exercise. 
  

	12	PLAN AND OPTION AMENDMENTS 

  

	 	12.1	The rights attaching to the Options may be amended by the Board subject to receipt of any necessary shareholder or other approval under: 

  

	 	12.1.1	the Corporations Act 2001 or any other law applicable to the Company; and 

  

	 	12.1.2	if the Company is Listed, the applicable Listing Rules. 

  

	 	12.2	If the provisions of this Plan or the terms of grant of the Options are inconsistent with the Corporations Act, then the Corporations Act prevails to the extent of any inconsistency
and the terms of the Options will be deemed modified accordingly without further action by the Company, the Board or the holder of the Option being necessary. 

  

	 	12.3	If the Company is Listed and the provisions of this Plan or the terms of grant of the Options are inconsistent with the Listing Rules, then the Listing Rules prevail to the extent
of any inconsistency and the terms of the Options will be deemed modified accordingly without further action by the Company, the Board or the holder of the Option being necessary. 

  

	 	12.4	Without limiting the generality of Clause 12.3, it is a term of each Option that, if the Company is Listed, the rights of the Optionholder who holds the Option are deemed modified
from time to time as necessary to ensure the terms of the Options comply with the Listing Rules applying to reorganisations of capital at the time of any re-organisation of the Company’s capital and despite any inconsistent provision in the
terms of this Plan. 

  

	 	12.5	Subject to Clauses 12.1 to 12.3 (inclusive) and, if the Company is Listed, to receipt of any necessary approvals under the Listing Rules, the terms of this Plan may be amended by
the Board but without prejudice to the existing or accrued rights of Optionholders before any amendments are made. 

  

	13	ADMINISTRATION 

  

	 	13.1	This Plan shall be administered by the Board and any determination by the Board in respect of the operation of this Plan shall be final and binding on all Optionholders.

  

 10 

	 	13.2	Without limiting the generality of Clause 13.1, the Board has the powers, among other things: 

  

	 	13.2.1	to determine appropriate procedures for administration of this Plan; 

  

	 	13.2.2	to resolve conclusively all questions of fact or interpretation in connection with this Plan; 

  

	 	13.2.3	to approve forms of invitations, acceptances and other documents for the purposes of this Plan; 

  

	 	13.2.4	if the Market Value of the Shares has declined since the date the Options are granted, to reduce the Exercise Price of that Option to any then current Market Value; and

  

	 	13.2.5	to delegate to any one or more persons, for such period and on such conditions as they may determine, the exercise of any of its powers or discretions arising under this Plan.

  

	14	NOTICES 

  

	 	14.1	Notices may be given by the Company to Optionholders in the manner permitted by the Company’s Constitution for the giving of notices to holders of Shares and the relevant
provisions of the Constitution apply (with necessary changes) to notices given to Optionholders. 

  

	 	14.2	Service of all documents required by this Plan shall be deemed to be affected if the Company sends the document by registered post to the last address of the Optionholder known to
the Company. 

  

	15	TERMINATION OF THE PLAN 

  
 This Plan may be determined at any time by resolution of the Board. Termination of this Plan will be without prejudice to the rights of Optionholders in
respect of Options outstanding at the date of termination. 
  

	16	GOVERNING LAW 

  
 The terms of this Plan are governed by the laws of the State of New South Wales, Australia. 
  

 11

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