Document:

Exhibit

Exhibit 10.02
SECOND AMENDMENT TO THE 
RECEIVABLES FINANCING AGREEMENT

This SECOND AMENDMENT TO THE RECEIVABLES FINANCING AGREEMENT (this “Amendment”), dated as of September 20, 2017, is entered into by and among NUSTAR FINANCE LLC, as Borrower (the “Borrower”), NUSTAR ENERGY L.P., as initial Servicer (the “Servicer”), MIZUHO BANK, LTD. (“Mizuho”) and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as Lenders, Mizuho and PNC, as Group Agents, and PNC, as Administrative Agent.
Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Receivables Financing Agreement described below.
BACKGROUND
A.The parties hereto have entered into a Receivables Financing Agreement, dated as of June 15, 2015 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Financing Agreement”).
B.Concurrently herewith, the Borrower, the Servicer, the Lenders and the Administrative Agent, are entering into that certain Amended and Restated Fee Letter, dated as of the date hereof (the “Fee Letter”). 
C.Concurrently herewith, the Borrower, the Servicer and the Originators, are entering into that certain Second Amendment to the Purchase and Sale Agreement, dated as of the date hereof. 
D.The parties hereto desire to amend the Receivables Financing Agreement as set forth herein.
NOW, THEREFORE, with the intention of being legally bound hereby, and in consideration of the mutual undertakings expressed herein, each party to this Amendment hereby agrees as follows:
SECTION 1.    Amendments to the Receivables Financing Agreement.  The Receivables Financing Agreement is hereby amended as follows:
(a)    The following new defined terms and definitions thereof are hereby added to Section 1.01 the Receivables Financing Agreement in appropriate alphabetic order:
“LCR Security” means any commercial paper or security (other than equity securities issued to NuStar or any Originator that is a consolidated subsidiary of NuStar under GAAP) within the meaning of Paragraph __.32(e)(1)(viii) of the final rules titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards, 79 Fed. Reg. 197, 61440 et seq. (October 10, 2014).
“Special Concentration Limit” has the meaning set forth in the definition of Concentration Percentage.

	
			
	 
	 
	 

“Special Obligor” has the meaning set forth in the definition of Concentration Percentage.
(b)    The definition of “Concentration Percentage” set forth in Section 1.01 of the Receivables Financing Agreement is replaced in its entirety with the following:
“Concentration Percentage” means (a) except as provided in clause (b) below, (i) for any Group A Obligor, 17.50%, (ii) for any Group B Obligor, 15.00%, (iii) for any Group C Obligor, 12.50% and (iv) for any Group D Obligor, 3.00%, and (b) for each of the Obligors listed in the chart below (each, a “Special Obligor”), the percentage specified in the chart below for such Special Obligor (the applicable “Special Concentration Limit”); provided, however, that the Administrative Agent (with the prior written consent of each Group Agent) may approve higher “Concentration Percentages” for selected Obligors; provided, further, that the Administrative Agent may, upon not less than five (5) Business Days’ notice to the Borrower, cancel or reduce the Special Concentration Limit with respect to any or all Special Obligors, in which case the Concentration Percentage for such Special Obligor(s) shall be determined pursuant to clause (a) above.  In the event that any other Obligor is or becomes an Affiliate of a Special Obligor, the Special Concentration Limit shall apply to both such Obligor and such Special Obligor and shall be calculated as if such Obligor and such Special Obligor were a single Obligor.
	
		
	Special Obligor
	Special Concentration Limit

	Valero Energy Corporation
	16%

(c)    The definition of “Scheduled Termination Date” set forth in Section 1.01 of the Receivables Financing Agreement is amended by deleting the date “June 15, 2018” and substituting “September 20, 2020” therefor.
(d)    The following new clause (z) is added to Section 7.01 of the Receivables Financing Agreement and, in connection therewith, the existing clause (z) is renumbered as clause (aa):
(z)    LCR Security. The Borrower has not issued any LCR Securities, and the Borrower is a consolidated subsidiary of NuStar under GAAP.
(e)    The following new clause (aa) is added to Section 8.01 of the Receivables Financing Agreement:
(aa)    LCR Security. The Borrower shall not issue any LCR Security.

	
			
	 
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(f)    Schedule I to the Receivables Financing Agreement is amended and restated in its entirety and replaced with Schedule I attached hereto.
(g)    Paragraph (E) of Schedule III to the Receivables Financing Agreement is deleted in its entirety.
SECTION 2.    Representations and Warranties of the Borrower and Servicer.  The Borrower and the Servicer hereby represent and warrant to each of the parties hereto as of the date hereof as follows:
(a)    Representations and Warranties.  The representations and warranties made by it in the Receivables Financing Agreement and each of the other Transaction Documents to which it is a party are true and correct in all material respects as of the date hereof unless such representations and warranties by their terms refer to an earlier date, in which case they shall be true and correct in all material respects on and as of such earlier date.
(b)    Enforceability.  The execution and delivery by it of this Amendment, and the performance of its obligations under this Amendment, the Receivables Financing Agreement (as amended hereby) and the other Transaction Documents to which it is a party are within its organizational powers and have been duly authorized by all necessary action on its part, and this Amendment, the Receivables Financing Agreement (as amended hereby) and the other Transaction Documents to which it is a party are (assuming due authorization and execution by the other parties thereto) its valid and legally binding obligations, enforceable in accordance with its terms, except (x) the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws from time to time in effect relating to creditors’ rights, and (y) as such enforceability may be limited by general principles of equity, regardless of whether such enforceability is considered in a proceeding in law or equity.
(c)    No Event of Default.  No Event of Default or Unmatured Event of Default has occurred and is continuing, or would occur as a result of this Amendment or the transactions contemplated hereby.
SECTION 3.    Effect of Amendment; Ratification.  All provisions of the Receivables Financing Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect.  After this Amendment becomes effective, all references in the Receivables Financing Agreement (or in any other Transaction Document) to “this Receivables Financing Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Receivables Financing Agreement shall be deemed to be references to the Receivables Financing Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Receivables Financing Agreement other than as set forth herein.  The Receivables Financing Agreement, as amended by this Amendment, is hereby ratified and confirmed in all respects.

	
			
	 
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SECTION 4.    Effectiveness.  This Amendment shall become effective as of the date hereof upon (a) receipt by the Administrative Agent of each of the documents, agreements (in fully executed form), opinions of counsel, lien search results, UCC filings, certificates and other deliverables, in each case, in form and substance reasonably acceptable to the Administrative Agent and (b) payment in full of all fees and expenses payable by the Borrower on the date hereof to the Credit Parties in accordance with the terms of the Transaction Documents.
SECTION 5.    Severability.  Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
SECTION 6.    Transaction Document.  This Amendment shall be a Transaction Document for purposes of the Receivables Financing Agreement.
SECTION 7.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart hereof.
SECTION 8.    GOVERNING LAW AND JURISDICTION. 
(a)    THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).
(b)    EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT.  THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.  THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

	
			
	 
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SECTION 9.    Section Headings.  The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Receivables Financing Agreement or any provision hereof or thereof.
[SIGNATURE PAGES FOLLOW]

	
			
	 
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

	
		
	NUSTAR FINANCE LLC

	 
	 

	By:
	/s/ Thomas R. Shoaf

	Name:
	Thomas R. Shoaf

	Title:
	Executive Vice President and Chief Financial Officer

	
			
	NUSTAR ENERGY L.P.,
as the Servicer

	 
	 

	By:
	Riverwalk Logistics, L.P., its general partner

	 
	 

	 
	By:
	NuStar GP, LLC, its general partner

	 
	 

	 
	By:
	/s/ Thomas R. Shoaf

	 
	Name:
	Thomas R. Shoaf

	 
	Title:
	Executive Vice President and Chief Financial Officer

Second Amendment to 
Receivables Financing Agreement
    

	
		
	

PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent

	 
	 

	By:
	/s/ Eric Bruno

	Name:
	Eric Bruno

	Title:
	Senior Vice President

	
		
	

PNC BANK, NATIONAL ASSOCIATION,
as Group Agent for the PNC Group 

	 
	 

	By:
	/s/ Eric Bruno

	Name:
	Eric Bruno

	Title:
	Senior Vice President

	
		
	

PNC BANK, NATIONAL ASSOCIATION,
as a Committed Lender 

	 
	 

	By:
	/s/ Eric Bruno

	Name:
	Eric Bruno

	Title:
	Senior Vice President

Second Amendment to 
Receivables Financing Agreement
    

	
		
	

MIZUHO BANK, LTD.,
as a Committed Lender 

	 
	 

	By:
	/s/ Leon Mo

	Name:
	Leon Mo

	Title:
	Authorized Signatory

	
		
	

MIZUHO BANK, LTD.,
as Group Agent for Mizuho Bank Ltd.'s Group 

	 
	 

	By:
	/s/ Leon Mo

	Name:
	Leon Mo

	Title:
	Authorized Signatory

Second Amendment to 
Receivables Financing Agreement
    

SCHEDULE I 
Commitments

	
			
	PNC Group

	Party
	Capacity
	Maximum Commitment

	PNC
	Committed Lender
	$67,500,000

	PNC
	Group Agent
	N/A

	
			
	Mizuho Bank, Ltd. Group

	Party
	Capacity
	Maximum Commitment

	Mizuho Bank, Ltd.
	Committed Lender
	$57,500,000

	Mizuho Bank, Ltd.
	Group Agent
	N/A

Schedule IBlueprint

  Exhibit 10.3

 

ACER THERAPEUTICS INC.

 

2013 Stock Incentive Plan

 

 (Amended on
April 20, 2016)

 

1.
Purpose.

 

The
purpose of this plan (the “Plan”) is to secure for Acer
Therapeutics Inc., a Delaware corporation (the
“Company”) and its shareholders the benefits arising
from capital stock ownership by employees, officers and directors
of, and consultants or advisors to, the Company and its parent and
subsidiary corporations who are expected to contribute to the
Company’s future growth and success. Under the Plan
recipients may be awarded both (i) Options (as defined in Section
2.1) to purchase the Company’s common stock, par value
$0.0001 (“Common Stock”) and (ii) shares of Common
Stock (“Restricted Stock Awards”). Except where the
context otherwise requires, the term “Company” shall
include any parent and all present and future subsidiaries of the
Company as defined in Sections 424(e) and 424(f) of the Internal
Revenue Code of 1986, as amended or replaced from time to time (the
“Code”). Those provisions of the Plan which make
express reference to Section 422 of the Code shall apply only to
Incentive Stock Options (as that term is defined below). Appendix Z
to this Plan shall apply only to participants in the Plan who are
residents of the State of California.

 

2.
Types of Awards and Administration.

 

2.1 Options. Options granted pursuant to the
Plan (“Options”) shall be authorized by action of the
Board of Directors of Acer Therapeutics Inc. (the
“Board” or “Board of Directors”) and may be
either incentive stock options (“Incentive Stock
Options”) meeting the requirements of Section 422 of the Code
or non-statutory Options which are not intended to meet the
requirements of Section 422. All Options when granted are intended
to be non-statutory Options, unless the applicable Option Agreement
(as defined in Section 5.1) explicitly states that the Option is
intended to be an Incentive Stock Option. The vesting of Options
may be conditioned upon the completion of a specified period of
employment with the Company and/or such other conditions or events
as the Board may determine. The Board may also provide that Options
are immediately exercisable subject to certain repurchase rights in
the Company dependent upon the continued employment of the optionee
and/or such other conditions or events as the Board may
determine.

 

2.1.1 Incentive Stock Options. Incentive Stock
Options may only be granted to employees of the Company. For so
long as the Code shall so provide, Options granted to any employee
under the Plan (and any other incentive stock option plans of the
Company) which are intended to constitute Incentive Stock Options
shall not constitute Incentive Stock Options to the extent that
such Options, in the aggregate, become exercisable for the first
time in any one calendar year for shares of Common Stock with an
aggregate fair market value (determined as of the respective date
or dates of grant) of more than $100,000. If an Option is intended
to be an Incentive Stock Option, and if for any reason such Option
(or any portion thereof) shall not qualify as an Incentive Stock
Option, then, to the extent of such nonqualification, such Option
(or portion thereof) shall be regarded as a non-statutory Option
appropriately granted under the Plan provided that such Option (or
portion thereof) otherwise meets the Plan’s requirements
relating to non-statutory Options.

 

 

 

2.2 Restricted Stock Awards. The Board in
its discretion may grant Restricted Stock Awards, entitling the
recipient to acquire, for a purchase price determined by the Board,
shares of Common Stock subject to such restrictions and conditions
as the Board may determine at the time of grant (“Restricted
Stock”), including continued employment and/or achievement of
pre-established performance goals and objectives.

 

2.3
Administration.

 

(a) The
Plan shall be administered by the Board, whose construction and
interpretation of the terms and provisions of the Plan shall be
final and conclusive. The Board may in its sole discretion
authorize issuance of Restricted Stock, the grant of Options and
the issuance of shares upon exercise of such Options as provided in
the Plan. The Board shall have authority, subject to the express
provisions of the Plan, to construe Restricted Stock Agreements,
Option Agreements and the Plan, to prescribe, amend and rescind
rules and regulations relating to the Plan, to determine the terms
and provisions of Restricted Stock Agreements and Option
Agreements, and to make all other determinations in the judgment of
the Board necessary or desirable for the administration of the
Plan. The Board may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any Restricted Stock
Agreement or Option Agreement in the manner and to the extent it
shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. No director or person
acting pursuant to authority delegated by the Board shall be liable
for any action or determination under the Plan made in good
faith.

 

(b) The Board may, to
the full extent permitted by or consistent with applicable laws or
regulations, delegate any or all of its powers under the Plan to a
committee (the “Committee”) appointed by the Board, and
if the Committee is so appointed, to the extent of such delegation,
all references to the Board in the Plan shall mean and relate to
such Committee, other than references to the Board in this sentence
and in Section 18 (as to amendment or termination of the Plan) and
Section 22.

 

3.
Eligibility.

 

Options
may be granted, and Restricted Stock may be issued, to persons who
are, at the time of such grant or issuance, employees, officers or
directors of, or consultants or advisors to, the Company;
provided, that the class of
persons to whom Incentive Stock Options may be granted shall be
limited to employees of the Company.

 

3.1 10% Shareholder. If any employee to whom an
Incentive Stock Option is to be granted is, at the time of the
grant of such Option, the owner of stock possessing more than 10%
of the total combined voting power of all classes of stock of the
Company (after taking into account the attribution of stock
ownership rules of Section 424(d) of the Code) (a “Greater
Than 10% Shareholder”), any Incentive Stock Option granted to
such individual must: (i) have an exercise price per share of not
less than 110% of the fair market value of one share of Common
Stock at the time of grant; and (ii) expire by its terms not more
than five years from the date of grant.

 

2

 

 

4.
Stock Subject to Plan.

 

Subject
to adjustment as provided in Section 14.2 below, the maximum number
of shares of Common Stock which may be issued under the Plan is
165,000 shares. If an Option shall expire or terminate for any
reason without having been exercised in full, the unpurchased
shares subject to such Option shall again be available for
subsequent Option grants or Restricted Stock Awards under the Plan.
If shares of Restricted Stock shall be forfeited to, or otherwise
repurchased by, the Company pursuant to a Restricted Stock
Agreement, such repurchased shares shall again be available for
subsequent Option grants or Restricted Stock Awards under the Plan.
If shares issued upon exercise of an Option are tendered to the
Company in payment of the exercise price of an Option, such
tendered shares shall again be available for subsequent Option
grants or Restricted Stock Awards under the Plan.

 

5.
Forms of Restricted Stock Agreements and Option
Agreements.

 

5.1 Option Agreement. Each recipient of an
Option shall execute an option agreement (“Option
Agreement”) in substantially the form attached hereto as
Exhibit A (ISO) or Exhibit B (NSO) or such other form not
inconsistent with the Plan as may be approved by the Board of
Directors. Such Option Agreements may differ among
recipients.

 

5.2 Restricted Stock Agreement. Each
recipient of a grant of Restricted Stock shall execute an agreement
(“Restricted Stock Agreement”) in such form not
inconsistent with the Plan as may be approved by the Board of
Directors. Such Restricted Stock Agreements may differ among
recipients.

 

5.3 “Lock-Up” Agreement. Unless
the Board specifies otherwise, each Restricted Stock Agreement and
Option Agreement shall provide that upon the request of the Company
or the managing underwriter(s) of any offering of securities of the
Company that is the subject of a registration statement filed under
the United States Securities Act of 1933, as amended from time to
time (the “Act”), the holder of any Option or the
purchaser of any Restricted Stock shall, in connection therewith,
agree in writing (in such form as the Company or such managing
underwriter(s) shall request) to the general effect that for a
period of time (not to exceed 180 days, plus such additional number
of days (not to exceed 35) as may reasonably be requested to enable
the underwriter(s) of such offering to comply with Rule 2711(f) of
the Financial Industry Regulatory Authority or any amendment or
successor thereto) from the effective date of the registration
statement under the Act for such offering, the holder or purchaser
will not sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any shares of the common
stock of the Company owned or controlled by him or
her.

 

6.
Purchase Price.

 

6.1 General. The purchase price per share of
Restricted Stock and per share of stock deliverable upon the
exercise of an Option shall be determined by the Board, provided,
however, that in the case of any Option, the exercise price shall
not be less than 100% of the fair market value of such stock, as
determined by the Board, at the time of grant of such Option, or
less than 110% of such fair market value in the case of any
Incentive Stock Option granted to a Greater Than 10%
Shareholder.

 

 

3

 

 

6.2 Payment of Purchase Price. Option
Agreements may provide for the payment of the exercise price by
delivery of cash or a check to the order of the Company in an
amount equal to the exercise price of such Options, or, to the
extent provided in the applicable Option Agreement, by one of the
following methods:

 

(i)
with the consent of the Board, by delivery to the Company of shares
of Common Stock; such surrendered shares shall have a fair market
value equal in amount to the exercise price of the Options being
exercised,

 

(ii)
with the consent of the Board, a personal recourse note issued by
the optionee to the Company in a principal amount equal to such
aggregate exercise price and with such other terms, including
interest rate and maturity, as the Company may determine in its
discretion; provided, however, that the interest rate borne by such
note shall not be less than the lowest applicable federal rate, as
defined in Section 1274(d) of the Code,

 

(iii)
with the consent of the Board, if the class of Common Stock is
registered under the Securities Exchange Act of 1934 at such time,
subject to rules as may be established by the Board, by delivery to
the Company of a properly executed exercise notice along with
irrevocable instructions to a broker to promptly deliver to the
Company cash or a check payable and acceptable to the Company for
the purchase price,

 

(iv)
with the consent of the Board, by reducing the number of Option
shares otherwise issuable to the optionee upon exercise of the
Option by a number of shares of Common Stock having a fair market
value equal to such aggregate exercise price,

 

(v)
with the consent of the Board, by any combination of such methods
of payment.

 

The
fair market value of any shares of Common Stock or other non-cash
consideration which may be delivered upon exercise of an Option
shall be determined by the Board of Directors. Restricted Stock
Agreements may provide for the payment of any purchase price in any
manner approved by the Board of Directors at the time of
authorizing the issuance thereof.

 

7.
Option Period.

 

Notwithstanding any
other provision of the Plan or any Option Agreement, each Option
and all rights thereunder shall expire on the date specified in the
applicable Option Agreement, provided that such date shall not be
later than ten years after the date on which the Option is granted
(or five years in the case of an Incentive Stock Option granted to
a Greater Than 10% Shareholder), and in either case, shall be
subject to earlier termination as provided in the Plan or Option
Agreement.

 

4

 

 

8.
Exercise of Options.

 

8.1 General. Each Option shall be
exercisable either in full or in installments at such time or times
and during such period as shall be set forth in the Option
Agreement evidencing such Option, subject to the provisions of the
Plan. To the extent not exercised, installments shall accumulate
and be exercisable, in whole or in part, at any time after becoming
exercisable, but not later than the date the Option
expires.

 

8.2 Notice of Exercise. An Option may be
exercised by the optionee by delivering to the Company on any
business day a written notice specifying the number of shares of
Common Stock the optionee then desires to purchase and specifying
the address to which the certificates for such shares are to be
mailed (the “Notice”), accompanied by payment for such
shares. In addition, the Company may require any individual to whom
an Option is granted, as a condition of exercising such Option, to
give written assurances (the “Investment Letter”) in a
substance and form satisfactory to the Company to the effect that
such individual is acquiring the Common Stock subject to the Option
for his or her own account for investment and not with a view to
the resale or distribution thereof, and to such other effects as
the Company deems necessary or advisable in order to comply with
any securities law(s).

 

8.3 Delivery. As promptly as practicable
after receipt of the Notice, the Investment Letter (if required)
and payment, the Company shall deliver or cause to be delivered to
the optionee certificates for the number of shares with respect to
which such Option has been so exercised, issued in the
optionee’s name; provided, however, that such delivery shall
be deemed effected for all purposes when the Company or a stock
transfer agent shall have deposited such certificates in the United
States mail, addressed to the optionee, at the address specified in
the Notice.

 

9.
Nontransferability of Options.

 

No
Option shall be assignable or transferable by the person to whom it
is granted, either voluntarily or by operation of law, except by
will or the laws of descent and distribution. During the life of an
optionee, an Option shall be exercisable only by the
optionee.

 

10. Termination of Employment; Disability;
Death.  Except
as may be otherwise expressly provided in the terms and conditions
of the Option Agreement, Options shall terminate on the earliest to
occur of:

 

(i)           the
date of expiration thereof;

 

(ii) 

the date of
termination of the optionee’s employment with, or provision
of services to, the Company by the Company for Cause (as
hereinafter defined);

 

(iii) 

90 days after the
date of voluntary termination of the optionee’s employment
with, or provision of services to, the Company by the optionee
(other than for death or permanent disability as defined below);
or

 

5

 

 

(iv) 

90 days after the date of termination of
the optionee’s employment with, or provision of services to,
the Company by the Company without Cause (other than for death or
permanent disability as defined below).

 

Until
the date on which the Option so expires, the optionee may exercise
that portion of his or her Option which is exercisable at the time
of termination of the employment or service
relationship.

 

An
employment or service relationship between the Company and the
optionee shall be deemed to exist during any period during which
the optionee is employed by or providing services to the Company.
Whether an authorized leave of absence or an absence due to
military or government service shall constitute termination of the
employment relationship between the Company and the optionee shall
be determined by the Board at the time thereof.

 

For
purposes of this Section 10, the term “Cause” shall
mean (a) any material breach by the optionee of any agreement to
which the optionee and the Company are both parties, (b) any act
(other than retirement) or omission to act by the optionee which
may have a material and adverse effect on the Company’s
business or on the optionee’s ability to perform services for
the Company, including, without limitation, the commission of any
crime (other than minor traffic violations), or (c) any material
misconduct or material neglect of duties by the optionee in
connection with the business or affairs of the Company. An
optionee’s employment shall be deemed to have been terminated
for Cause if the Company determines within thirty (30) days of the
termination of employment (whether such termination was voluntary
or involuntary) that termination for Cause was
warranted.

 

In the
event of the permanent and total disability or death of an optionee
while in an employment or other relationship with the Company, any
Option held by such optionee shall terminate on the earlier of the
date of expiration of the Option or one year following the date of
such disability or death. After disability or death, the optionee
(or in the case of death, his or her executor, administrator or any
person or persons to whom this option may be transferred by will or
by laws of descent and distribution) shall have the right, at any
time prior to such termination of an Option , to exercise the
Option to the extent the optionee was entitled to exercise such
Option as of the date of his or her disability or death. An
optionee is permanently and totally disabled if he or she is unable
to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be
expected to last for a continuous period of not less than 12
months; permanent and total disability shall be determined in
accordance with Section 22(e)(3) of the Code and the regulations
issued thereunder.

 

11. Rights as a Shareholder. The holder of
an Option shall have no rights as a shareholder with respect to any
shares covered by the Option (including, without limitation, any
rights to receive dividends or non-cash distributions with respect
to such shares) until the date of issue of a stock certificate to
him or her for such shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the
date such stock certificate is issued.

 

 

6

 

 

 

12. Additional Provisions. The Board of
Directors may, in its sole discretion, include additional
provisions in Restricted Stock Agreements and Option Agreements,
including, without limitation, restrictions on transfer, rights of
the Company to repurchase shares of Restricted Stock or shares of
Common Stock acquired upon exercise of Options, commitments to pay
cash bonuses, to make, arrange for or guaranty loans or to transfer
other property to optionees upon exercise of Options, or such other
provisions as shall be determined by the Board of Directors;
provided that such
additional provisions shall not be inconsistent with any other term
or condition of the Plan and such additional provisions shall not
be such as to cause any Incentive Stock Option to fail to qualify
as an Incentive Stock Option within the meaning of Section 422 of
the Code.

 

13. Acceleration, Extension, Etc. The Board
of Directors may, in its sole discretion, (i) accelerate the date
or dates on which all or any particular Option or Options may be
exercised or (ii) extend the period or periods of time during which
all, or any particular, Option or Options may be
exercised.

 

14.
Adjustment Upon Changes in Capitalization

 

14.1 No Effect of Options upon Certain Corporate
Transactions. The existence of outstanding Options shall not
affect in any way the right or power of the Company to make or
authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital
structure or its business, or any merger or consolidation, or any
issue of Common Stock, or any issue of bonds, debentures, preferred
or prior preference stock ahead of or affecting the Common Stock or
the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

 

14.2 Adjustment Provisions. If, through or as
a result of any merger, consolidation, sale of all or substantially
all of the assets of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split
or other similar transaction, (i) the outstanding shares of Common
Stock are increased, decreased or exchanged for a different number
or kind of shares or other securities of the Company, or (ii)
additional shares or new or different shares or other securities of
the Company or other non-cash assets are distributed with respect
to such shares of Common Stock or other securities, an appropriate
and proportionate adjustment shall be made in (x) the maximum
number and kind of shares reserved for issuance under the Plan, (y)
the number and kind of shares or other securities subject to any
then outstanding Options, and (z) the price for each share or other
security subject to any then outstanding Options, so that upon
exercise of such Options, in lieu of the shares of Common Stock for
which such Options were then exercisable, the relevant optionee
shall be entitled to receive, for the same aggregate consideration,
the same total number and kind of shares or other securities, cash
or property that the owner of an equal number of outstanding shares
of Common Stock immediately prior to the event requiring adjustment
would own as a result of the event. If any such event shall occur,
appropriate adjustment shall also be made in the application of the
provisions of this Section 14 and Section 15 with respect to
Options and the rights of optionees after the event so that the
provisions of such Sections shall be applicable after the event and
be as nearly equivalent as practicable in operation after the event
as they were before the event.

 

7

 

 

14.3 No Adjustment in Certain Cases. Except
as hereinbefore expressly provided, the issue by the Company of
shares of stock of any class, or securities convertible into shares
of stock of any class, for cash or property or for labor or
services, either upon direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or
obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of
Common Stock then subject to outstanding options.

 

14.4 Board Authority to Make Adjustments. Any
adjustments under this Section 14 will be made by the Board of
Directors, whose determination as to what adjustments, if any, will
be made and the extent thereof will be final, binding and
conclusive. No fractional shares will be issued under the Plan on
account of any such adjustments.

 

15.
Effect of Certain Transactions

 

15.1 General. Except as provided in any
Option Agreement or Restricted Stock Agreement to the contrary, if
the Company is merged with or into or consolidated with another
corporation under circumstances where the stockholders of the
Company immediately prior to such merger or consolidation do not
own after such merger or consolidation shares representing at least
fifty percent (50%) of the voting power of the Company or the
surviving or resulting corporation, as the case may be, or if
shares representing fifty percent (50%) or more of the voting power
of the Company are transferred to an Unrelated Third Party, as
hereinafter defined, or if the Company is liquidated, or sells or
otherwise disposes of all or substantially all its assets (each
such transaction is referred to herein as a “Change in
Control Transaction”), the Board, or the board of directors
of any corporation assuming the obligations of the Company, may, in
its discretion, take any one or more of the following actions, as
to some or all outstanding Options or Restricted Stock Awards (and
need not take the same action as to each such Option or Restricted
Stock Award): (i) provide that such Options shall be assumed, or
equivalent Options shall be substituted, by the acquiring or
succeeding corporation (or an affiliate thereof), provided that any such Options
substituted for Incentive Stock Options shall meet the requirements
of Section 424(a) of the Code, (ii) upon written notice to the
optionees, provide that all unexercised Options will terminate
immediately prior to the consummation of the Change in Control
Transaction unless exercised by the optionee to the extent
otherwise then exercisable within a specified period
following the date of such notice, (iii) upon written notice to the
grantees, provide that all unvested shares of Restricted Stock
shall be repurchased at cost, (iv) make or provide for a cash
payment to the optionees equal to the difference between (A) the
fair market value of the per share consideration (whether cash,
securities or other property or any combination of the above) the
holder of a share of Common Stock will receive upon consummation of
the Change in Control Transaction (the “Per Share Transaction
Price”) times the number of shares of Common Stock subject to
outstanding vested Options (to the extent then exercisable at
prices not equal to or in excess of the Per Share Transaction
Price) and (B) the aggregate exercise price of such outstanding
vested Options, in exchange for the termination of such Options, or
(v) provide that all or any outstanding Options shall become
exercisable and all or any outstanding Restricted Stock Awards
shall vest in part or in full immediately prior to such event. To
the extent that any Options are exercisable at a price equal to or
in excess of the Per Share Transaction Price, the Board may provide
that such Options shall terminate immediately upon the consummation
of the Change in Control Transaction without any payment being made
to the holders of such Options. “Unrelated Third Party”
shall mean any person who is not, on the date of adoption of this
Plan by the Board, a holder of stock of any class or preference or
any stock option of the Company.

 

8

 

 

15.2 Substitute Options. The Company may
grant Options in substitution for options held by employees,
officers or directors of, or consultants or advisors
to, another corporation
who become employees, officers or directors of, or consultants or
advisors to, the Company, as the result of a merger or
consolidation of the employing corporation with the Company or as a
result of the acquisition by the Company of property or stock of
the employing corporation. The Company may direct that substitute
Options be granted on such terms and conditions as the Board
considers appropriate in the circumstances.

 

15.3 Restricted Stock. In the event of a
business combination or other transaction of the type detailed in
Section 15.1, any securities, cash or other property received in
exchange for shares of Restricted Stock shall continue to be
governed by the provisions of any Restricted Stock Agreement
pursuant to which they were issued, including any provision
regarding vesting, and such securities, cash, or other property may
be held in escrow on such terms as the Board of Directors may
direct, to insure compliance with the terms of any such Restricted
Stock Agreement.

 

16. No
Special Employment Rights. Nothing contained in the Plan or
in any Option Agreement or Restricted Stock Agreement shall confer
upon any optionee or holder of Restricted Stock any right with
respect to the continuation of his or her employment by the Company
or interfere in any way with the right of the Company at any time
to terminate such employment or to increase or decrease his or her
compensation.

 

17. Other Employee
Benefits. The amount of any compensation deemed to be received by
an employee as a result of the issuance of shares of Restricted
Stock or the grant or exercise of an Option or the sale of shares
received upon issuance of a Restricted Stock Award or exercise of
an Option will not constitute compensation with respect to which
any other employee benefits of such employee are determined,
including, without limitation, benefits under any bonus, pension,
profit-sharing, life insurance or salary continuation plan, except
as otherwise specifically determined by the Board of
Directors.

 

18.
Amendment of the Plan.

 

18.1 The Board may
at any time, and from time to time, modify or amend in any respect
or terminate the Plan. If shareholder approval is not obtained
within twelve months after any amendment increasing the number of
shares authorized under the Plan or changing the class of persons
eligible to receive Options under the Plan, no Options granted
pursuant to such amendments shall be deemed to be Incentive Stock
Options and no Incentive Stock Options shall be issued pursuant to
such amendments thereafter.

 

18.2 The
termination or any modification or amendment of the Plan shall not,
without the consent of an optionee or the holder of Restricted
Stock, adversely affect his or her rights under an Option or
Restricted Stock Award previously granted to him or her. With the
consent of the recipient of Restricted Stock or optionee affected,
the Board may amend outstanding Restricted Stock Agreements or
Option Agreements in a manner not inconsistent with the
Plan.

 

9

 

 

19. Withholding. The Company shall have the
right to deduct from payments of any kind otherwise due to the
optionee or recipient of Restricted Stock, any federal, state or
local taxes of any kind required by law to be withheld with respect
to issuance of any shares of Restricted Stock or shares issued upon
exercise of Options. Prior to delivery of any Common Stock pursuant
to the terms of this Plan, the Board has the right to require that
the optionee or recipient of Restricted Stock remit to the Company
an amount sufficient to satisfy any minimum tax withholding
obligation. Subject to the prior approval of the Company, which may
be withheld by the Company in its sole discretion, the obligor may
elect to satisfy any minimum withholding obligations, in whole or
in part, (i) by causing the Company to withhold shares of Common
Stock otherwise issuable, or (ii) by delivering to the Company a
sufficient number of shares of Common Stock. The shares so withheld
shall have a fair market value equal to such minimum withholding
obligation. The fair market value of the shares used to satisfy
such minimum withholding obligation shall be determined by the
Company as of the date that the amount of tax to be withheld is to
be determined. A person who has made an election pursuant to this
Section 19 may only satisfy his or her withholding obligation with
shares of Common Stock which are not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar
restrictions.

 

20.
Effective Date and Duration of the Plan.

 

20.1 Effective Date. The Plan shall become
effective when adopted by the Board of Directors. If shareholder
approval is not obtained within twelve months after the date of the
Board’s adoption of the Plan, no Options previously granted
under the Plan shall be deemed to be Incentive Stock Options and no
Incentive Stock Options shall be granted thereafter. Amendments to
the Plan not requiring shareholder approval shall become effective
when adopted by the Board. Amendments requiring shareholder
approval shall become effective when adopted by the Board, but if
shareholder approval is not obtained within twelve months of the
Board’s adoption of such amendment, any Incentive Stock
Options granted pursuant to such amendment shall be deemed to be
non-statutory Options provided that such Options are authorized by
the Plan. Subject to this limitation, Options may be granted under
the Plan at any time after the effective date and before the date
fixed for termination of the Plan.

 

20.2 Termination. Unless sooner terminated by
action of the Board of Directors, the Plan shall terminate upon the
close of business on the day next preceding the tenth anniversary
of the date of its adoption by the Board of Directors.

 

21. Provision for Foreign Participants. The
Board of Directors may, without amending the Plan, modify the terms
of Option Agreements or Restricted Stock Agreements to differ from
those specified in the Plan with respect to participants who are
foreign nationals or employed outside the United States to
recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities,
currency, employee benefit or other matters.

 

 

10

 

 

22. Requirements of Law. The Company shall
not be required to sell or issue any shares under any Option or
Restricted Stock Award if the issuance of such shares shall
constitute a violation by the optionee, the Restricted Stock Award
recipient, or by the Company of any provision of any law or
regulation of any governmental authority. In addition, in
connection with the Act, the Company shall not be required to issue
any shares upon exercise of any Option unless the Company has
received evidence satisfactory to it to the effect that the holder
of such Option will not transfer such shares except pursuant to a
registration statement in effect under the Act or unless an opinion
of counsel satisfactory to the Company has been received by the
Company to the effect that such registration is not required in
connection with any such transfer. Any determination in this
connection by the Board shall be final, binding and conclusive. In
the event the shares issuable on exercise of an Option are not
registered under the Act or under the securities laws of each
relevant state or other jurisdiction, the Company may imprint on
the certificate(s) appropriate legends that counsel for the Company
considers necessary or advisable to comply with the Act or any such
state or other securities law. The Company may register, but in no
event shall be obligated to register, any securities covered by the
Plan pursuant to the Act; and in the event any shares are so
registered the Company may remove any legend on certificates
representing such shares. The Company shall not be obligated to
take any affirmative action in order to cause the exercise of an
Option, the grant of any Restricted Stock Award or the issuance of
shares pursuant thereto to comply with any law or regulation of any
governmental authority.

 

23. Conversion of Incentive Stock Options into
Non-Qualified Options; Termination. The Board of Directors,
with the consent of any optionee, may in its discretion take such
actions as may be necessary to convert such optionee’s
Incentive Stock Options (or any installments or portions of
installments thereof) that have not been exercised on the date of
conversion into non-statutory Options at any time prior to the
expiration of such Incentive Stock Options, regardless of whether
the optionee is an employee of the Company or a parent or
subsidiary of the Company at the time of such conversion. At the
time of such conversion, the Board of Directors (with the consent
of the optionee) may impose such conditions on the exercise of the
resulting non-statutory Options as the Board of Directors in its
discretion may determine, provided that such conditions shall not
be inconsistent with this Plan. Nothing in this Plan shall be
deemed to give any optionee the right to have such optionee’s
Incentive Stock Options converted into non-statutory Options, and
no such conversion shall occur until and unless the Board of
Directors takes appropriate action. The Board of Directors, with
the consent of the optionee, may also terminate any portion of any
Incentive Stock Option that has not been exercised at the time of
such termination.

 

24. Non-Exclusivity of this Plan; Non-Uniform
Determinations. Neither the adoption of this Plan by the
Board of Directors nor the approval of this Plan by the
stockholders of the Company shall be construed as creating any
limitations on the power of the Board of Directors to adopt such
other incentive arrangements as it may deem desirable, including,
without limitation, the granting of stock options otherwise than
under this Plan, and such arrangements may be either applicable
generally or only in specific cases.

 

 

11

 

 

The
determinations of the Board of Directors under this Plan need not
be uniform and may be made by it selectively among persons who
receive or are eligible to receive Options or Restricted Stock
Awards under this Plan (whether or not such persons are similarly
situated). Without limiting the generality of the foregoing, the
Board of Directors shall be entitled, among other things, to make
non-uniform and selective determinations, and to enter into
non-uniform and selective Option Agreements and Restricted Stock
Agreements, as to (a) the persons to receive Options or Restricted
Stock Awards under this Plan, (b) the terms and provisions of
Options or Restricted Stock Awards, (c) the exercise by the Board
of Directors of its discretion in respect of the exercise of
Options pursuant to the terms of this Plan, and (d) the treatment
of leaves of absence pursuant to Section 10
hereof.

 

25. Governing Law. This Plan and each Option
or Restricted Stock Award shall be governed by the laws of the
State of Delaware, without regard to its principles of conflicts of
law.

 

 

12

 

 

APPENDIX Z

 

TO ACER
THERAPEUTICS INC. 2013 STOCK INCENTIVE PLAN

 

FOR
CALIFORNIA RESIDENTS ONLY

 

This
Appendix to the Acer Therapeutics Inc. 2013 Stock Incentive Plan
(the “Plan”) shall have application only to
participants in the Plan who are residents of the State of
California. Capitalized terms contained herein shall have the same
meanings given to them in the Plan, unless otherwise provided in
this Appendix. Notwithstanding any
provision contained in the Plan to the contrary and to the extent
required by applicable law, the following terms and conditions
shall apply to all Options and Restricted Stock Awards
(collectively “Awards”) granted to residents of the
State of California, until such time as the Common Stock becomes
subject to registration under the Securities Act of
1933:

 

1. Awards shall be
nontransferable other than by will or the laws of descent and
distribution. Notwithstanding the foregoing, and to the extent
permitted by Section 422 of the Code, the Board, in its discretion,
may permit distribution of an Award to an inter vivos or
testamentary trust in which the Award is to be passed to
beneficiaries upon the death of the trustor (settlor), or by gift
to “immediate family” as that term is defined in Rule
16a-1(e) of the United States Exchange Act of 1934.

 

2. Unless employment
is terminated for Cause, the right to exercise an Option in the
event of termination of employment, to the extent that the optionee
is otherwise entitled to exercise an Option on the date employment
terminates, shall be

 

(a) at least six months
from the date of termination of employment if termination was
caused by death or permanent disability; and

 

(b) at least 30 days
from the date of termination if termination of employment was
caused by other than death or permanent disability;

 

(c) but in no event
later than the remaining term of the Option.

 

3. Any Award exercised
before shareholder approval is obtained shall be rescinded if
shareholder approval is not obtained within 12 months of the
Board’s adoption of the Plan.

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