Document:

Exhibit 4.2

 

PAYSIGN, INC. 

RESTRICTED STOCK AGREEMENT 

FOR 

[name]

 

 

12.            
 Award of Restricted Stock. Paysign, Inc., a Nevada corporation (the “Company”) hereby
grants, as of __________________ (the “Date of Grant”), to ________________ (the “Recipient”),
_________________ restricted shares of the Company’s Common Stock, par value $0.001 per share (collectively the “Restricted
Stock”).

 

13.            
Vesting of Restricted Stock.

 

(a)             
General Vesting. The shares of Restricted Stock shall become vested in the following amounts, at the following
times and upon the following conditions, provided that the Continuous Service of the Recipient continues through and on the applicable
Vesting Date:

 

	Percentage of Restricted Stock	 	Vesting Date	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

Except as otherwise provided in Sections
2(b) and (c) and 4 hereof, there shall be no proportionate or partial vesting of shares of Restricted Stock in or during the months,
days or periods prior to each Vesting Date, and all vesting of shares of Restricted Stock shall occur only on the applicable Vesting
Date. The applicable Vesting Date shall be determined in reference to the date of execution of the offer letter between the Company
and the Recipient.

 

(b)            
Acceleration of Vesting Upon Change in Control. In the event that a Change in Control of the Company occurs
during the Recipient’s Continuous Service, the shares of Restricted Stock subject to this Agreement shall become immediately
vested as of the date of the Change in Control.

 

(c)             
Acceleration of Vesting at Company Discretion. Notwithstanding any other term or provision of this Agreement,
the Board shall be authorized, in its sole discretion, based upon its review and evaluation of the performance of the Recipient
and of the Company, to accelerate the vesting of any shares of Restricted Stock under this Agreement, at such times and upon such
terms and conditions as the Board shall deem advisable.

 

14.            
Delivery of Restricted Stock.

 

(a)             
Issuance of Stock Certificates and Legends. At the election of the Company, stock certificates representing
the Restricted Stock may be issued in the name of the Recipient either (i) on multiple occasions after each Vesting Date at the
time a portion of the Restricted Stock becomes Vested Shares, or (ii) in one or more stock certificates on the Date of Grant which
shall be held and retained by the Records Administrator of the Company until the date (the “Applicable Date”)
on which the shares (or a portion thereof) subject to this Restricted Stock award become Vested Shares pursuant to Section 2
hereof, subject to the provisions of Section 4 hereof. All such stock certificates shall bear the following legends, along
with such other legends that the Board shall deem necessary and appropriate or which are otherwise required or indicated pursuant
to any applicable stockholders’ agreement:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO SUBSTANTIAL
VESTING AND OTHER RESTRICTIONS AS SET FORTH IN THE RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH RESTRICTIONS ARE BINDING ON TRANSFEREES OF
THESE SHARES, AND INCLUDE VESTING CONDITIONS WHICH MAY RESULT IN THE COMPLETE FORFEITURE OF THE SHARES.

 

 

 

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(b)            
Stock Powers. The Recipient shall deposit with the Company stock powers or other instruments of transfer or
assignment, duly endorsed in blank with signature(s) guaranteed, corresponding to each certificate representing shares of Restricted
Stock until such shares become Vested Shares. If the Recipient shall fail to provide the Company with any such stock power or other
instrument of transfer or assignment, the Recipient hereby irrevocably appoints the Secretary of the Company as his attorney-in-fact,
with full power of appointment and substitution, to execute and deliver any such power or other instrument which may be necessary
to effectuate the transfer of the Restricted Stock (or assignment of distributions thereon) on the books and records of the Company.

 

(c)             
Delivery of Stock Certificates. In the event the Company issues certificates representing Restricted Stock
pursuant to Section 3(a)(ii), on or after each Applicable Date, upon written request to the Company by the Recipient, the Company
shall promptly cause a new certificate or certificates to be issued for and with respect to all shares that become Vested Shares
on that Applicable Date, which certificate(s) shall be delivered to the Recipient as soon as administratively practicable after
the date of receipt by the Company of the Recipient’s written request. The new certificate or certificates shall continue
to bear those legends and endorsements that the Company shall deem necessary or appropriate (including those relating to restrictions
on transferability and/or obligations and restrictions under the Securities Laws).

 

(d)            
Issuance Without Certificates. If the Company is authorized to issue Shares without certificates, then the
Company may, in the discretion of the Board, issue Shares pursuant to this Agreement without certificates, in which case any references
in this Agreement to certificates shall instead refer to whatever evidence may be issued to reflect the Recipient’s ownership
of the Shares subject to the terms and conditions of this Agreement.

 

15.            
Forfeiture of Non-Vested Shares. If the Recipient’s Continuous Service with the Company and the Related
Entities is terminated for any reason, any Shares of Restricted Stock that are not Vested Shares, and that do not become Vested
Shares pursuant to Section 2 hereof as a result of such termination, shall be forfeited immediately upon such termination
of Continuous Service and revert back to the Company without any payment to the Recipient. The Board shall have the power and authority
to enforce on behalf of the Company any rights of the Company under this Agreement in the event of the Recipient’s forfeiture
of Non-Vested Shares pursuant to this Section 4.

 

16.            
Rights with Respect to Restricted Stock.

 

(a)             
General. Except as otherwise provided in this Agreement, the Recipient shall have, with respect to all of
the shares of Restricted Stock actually issued, whether Vested Shares or Non-Vested Shares, all of the rights of a holder of shares
of common stock of the Company, including without limitation (i) the right to vote such Restricted Stock, (ii) the right
to receive dividends, if any, as may be declared on the Restricted Stock from time to time, and (iii) the rights available
to all holders of shares of common stock of the Company upon any merger, consolidation, reorganization, liquidation or dissolution,
stock split-up, stock dividend or recapitalization undertaken by the Company; provided, however, that all of such rights shall
be subject to the terms, provisions, conditions and restrictions set forth in this Agreement (including without limitation conditions
under which all such rights shall be forfeited). Any Shares issued to the Recipient as a dividend with respect to shares of Restricted
Stock shall have the same status and bear the same legend as the shares of Restricted Stock and shall be held by the Company, if
the shares of Restricted Stock that such dividend is attributed to is being so held, unless otherwise determined by the Board.
In addition, notwithstanding any provision to the contrary herein, any cash dividends declared with respect to shares of Restricted
Stock subject to this Agreement shall be held in escrow by the Board until such time as the shares of Restricted Stock that such
cash dividends are attributed to shall become Vested Shares, and in the event that such shares of Restricted Stock are subsequently
forfeited, the cash dividends attributable to such portion shall be forfeited as well.

 

(b)            
Adjustments to Shares. If at any time while this Agreement is in effect (or Shares granted hereunder shall
be or remain unvested while Recipient’s Continuous Service continues and has not yet terminated or ceased for any reason),
there shall be any increase or decrease in the number of issued and outstanding Shares of the Company through the declaration of
a stock dividend or through any recapitalization resulting in a stock split-up, combination or exchange of such Shares, then and
in that event, the Board shall make any adjustments it deems fair and appropriate, in view of such change, in the number of shares
of Restricted Stock then subject to this Agreement. If any such adjustment shall result in a fractional Share, such fraction shall
be disregarded.

 

 

 

    	 	2	 

     

    

 

(c)             
No Restrictions on Certain Transactions. Notwithstanding any term or provision of this Agreement to the contrary,
the existence of this Agreement, or of any outstanding Restricted Stock awarded hereunder, shall not affect in any manner the right,
power or authority of the Company to make, authorize or consummate: (i) any or all adjustments, recapitalizations, reorganizations
or other changes in the Company’s capital structure or its business; (ii) any merger, consolidation or similar transaction
by or of the Company; (iii) any offer, issue or sale by the Company of any capital stock of the Company, including any equity
or debt securities, or preferred or preference stock that would rank prior to or on parity with the Restricted Stock and/or that
would include, have or possess other rights, benefits and/or preferences superior to those that the Restricted Stock includes,
has or possesses, or any warrants, options or rights with respect to any of the foregoing; (iv) the dissolution or liquidation
of the Company; (v) any sale, transfer or assignment of all or any part of the stock, assets or business of the Company; or
(vi) any other corporate transaction, act or proceeding (whether of a similar character or otherwise).

 

17.            
Transferability. Unless otherwise determined by the Board, the shares of Restricted Stock are not transferable
unless and until they become Vested Shares in accordance with this Agreement, otherwise than by will or under the applicable laws
of descent and distribution. The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors
and assigns of the Recipient. Except as otherwise permitted pursuant to the first sentence of this Section, any attempt to effect
a Transfer of any shares of Restricted Stock prior to the date on which the shares become Vested Shares shall be void ab initio.
For purposes of this Agreement, “Transfer” shall mean any sale, transfer, encumbrance, gift, donation, assignment,
pledge, hypothecation, or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or
involuntary, and including, but not limited to, any disposition by operation of law, by court order, by judicial process, or by
foreclosure, levy or attachment.

 

18.            
Tax Matters; Section 83(b) Election.

 

(a)             
Section 83(b) Election. If the Recipient properly elects, within thirty (30) days of the Date of
Grant, to include in gross income for federal income tax purposes an amount equal to the fair market value (as of the Date of Grant)
of the Restricted Stock pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”),
the Recipient shall make arrangements satisfactory to the Company to pay to the Company any federal, state or local income taxes
required to be withheld with respect to the Restricted Stock. If the Recipient shall fail to make such tax payments as are required,
the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind (including without limitation,
the withholding of any Shares that otherwise would be issued to the Recipient under this Agreement) otherwise due to the Recipient
any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock.

 

(b)            
No Section 83(b) Election. If the Recipient does not properly make the election described in Section
7(a) above, to the extent the Restricted Stock becomes Vested Shares prior to January 1, 2019, the Recipient shall be solely responsible
for declaring and paying all federal, state and local taxes payable on the gross income reportable as result of such vesting. If
the Recipient does not properly make the election described in Section 7(a) above, to the extent the Restricted Stock becomes Vested
Shares after January 1, 2019 and the Restricted Stock is not registered under Section 5 of the Securities Act of 1933 (the “Securities
Act”), the Recipient shall, no later than the date or dates as of which the restrictions referred to in this Agreement
hereof shall lapse, pay to the Company, or make arrangements satisfactory to the Board for payment of, any federal, state or local
taxes of any kind required by law to be withheld with respect to the Restricted Stock (including without limitation the vesting
thereof). The Recipient hereby agrees to indemnify and hold the Company harmless against all claims, liabilities and costs, including
attorney’s fees, arising from or resulting from the Recipient’s failure to pay such federal, state and local taxes
or failure to reimburse the Company for federal, state and local taxes that the Company may be required to withhold on account
of the issuance or vesting of shares of Restricted Stock under this Agreement, and the Company shall, to the extent permitted by
law, have the right to deduct from any payment of any kind (including without limitation, the withholding of any Shares that otherwise
would be distributed to the Recipient under this Agreement) otherwise due to Recipient any federal, state, or local taxes of any
kind required by law to be withheld with respect to the Restricted Stock.

 

(c)             
Recipient’s Responsibilities for Tax Consequences. Tax consequences on the Recipient (including without
limitation federal, state, local and foreign income tax consequences) with respect to the Restricted Stock (including without limitation
the grant, vesting and/or forfeiture thereof) are the sole responsibility of the Recipient. The Recipient shall consult with his
or her own personal accountant(s) and/or tax advisor(s) regarding these matters, the making of a Section 83(b) election, and
the Recipient’s filing, withholding and payment (or tax liability) obligations.

 

 

 

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(d)            
Consent to Sell Vested Shares to Pay Withholding Tax Liability. With regard to any shares of Restricted Stock
that become Vested Shares after January 1, 2019, in lieu of paying the Company in cash any federal, state or local tax required
by law to be withheld by the Company with respect to the Restricted Stock pursuant to Section 7(b), and if the Restricted Stock
is registered under Section 5 of the Securities Act, the Recipient hereby authorizes the Company to sell through a brokerage firm
selected by the Company a sufficient amount of Vested Shares as they become Vested Shares to satisfy such withholding liability.
Such sales will be conducted on the following basis: (i) the amount of Vested Shares to be sold shall be the amount necessary to
result in net proceeds equal to the amount the Company is required to withhold on the gross income reportable to the Recipient
on the newly Vested Shares, as determined on each Vesting Date by the Company’s outside payroll vendor; (ii) the newly Vested
Shares shall be sold within two trading days or a reasonable amount of time based on market conditions, as determined solely by
the Company’s designated broker, after communication of such amount by the Company’s third party administrator to the
broker; (iii) all proceeds from the sale shall be paid to the Company, for application to the Company’s payroll tax withholding
liability in connection with the newly Vested Shares; (iv) the Recipient shall not take any action that would have the effect of
changing the Recipient’s withholding amounts without the prior consent of the Company, including without limitation submitting
a new or amended Form W-4 that changes the amount of tax to be withheld from the Recipient’s wages; (v) the Recipient shall
not take any action that would interfere or delay the determination of the Recipient’s withholding amount or the communication
of such amount to the Company’s broker, or any other way accelerate or delay the date on which such shares would ordinarily
be sold; (vi) the Recipient shall not enter any hedging transaction in relation to the Company’s securities, including any
put, call, short sale or margin transaction; and (vii) the Recipient may not revoke or amend the Company’s authority granted
pursuant to this Section 7(d) without consent of the Company.

 

19.            
Amendment, Modification & Assignment; Non-Transferability. This Agreement may only be modified or
amended in a writing signed by the parties hereto. No promises, assurances, commitments, agreements, undertakings or representations,
whether oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have
been made by either party which are not set forth expressly in this Agreement. Unless otherwise consented to in writing by the
Company, in its sole discretion, this Agreement (and Recipient’s rights hereunder) may not be assigned, and the obligations
of Recipient hereunder may not be delegated, in whole or in part. The rights and obligations created hereunder shall be binding
on the Recipient and his heirs and legal representatives and on the successors and assigns of the Company.

 

20.            
Complete Agreement. This Agreement (together with those agreements and documents expressly referred to herein,
for the purposes referred to herein) embody the complete and entire agreement and understanding between the parties with respect
to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations,
whether oral, written, electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in
any way.

 

21.            
Definitions. For purposes of this Agreement, the following terms shall have the following meaning:

 

(a)             
“Beneficial Owner” and “Beneficial Ownership” shall have the meaning
ascribed to such term in Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”) and
any successor to such Rule.

 

(b)            
“Board” means the Company’s Board of Directors.

 

(c)             
“Change in Control” means shall mean the occurrence of any of the following:

 

i.                   The
acquisition by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more
than fifty percent (50%) of either (A) the value of then outstanding equity securities of the Company (the “Outstanding
Company Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting Securities”) (the foregoing
Beneficial Ownership hereinafter being referred to as a “Controlling Interest”); provided, however,
that for purposes of this Section, the following acquisitions shall not constitute or result in a Change in Control: (v) any
acquisition directly from the Company; (w) any acquisition by the Company; (x) any acquisition by any Person that as
of the Date of Grant owns Beneficial Ownership of a Controlling Interest; (y) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any Related Entity; or (z) any acquisition by any entity pursuant
to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) below; or

 

 

 

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ii.                  During
any period of three (3) consecutive years (not including any period prior to the Date of Grant) individuals who constitute
the Board on the Date of Grant (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director subsequent to the Date of Grant whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

 

iii.                 Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the
Company or any of its Related Entities, a sale or other disposition of all or substantially all of the assets of the Company, or
the acquisition of assets or equity of another entity by the Company or any of its Related Entities (each a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the
individuals and entities who were the Beneficial Owners, respectively, of the Outstanding Company Stock and Outstanding Company
Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent
(50%) of the value of the then outstanding equity securities and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of members of the board of directors (or comparable governing body of an
entity that does not have such a board), as the case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may
be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such entity resulting from such
Business Combination or any Person that as of the Date of Grant owns Beneficial Ownership of a Controlling Interest) beneficially
owns, directly or indirectly, fifty percent (50%) or more of the value of the then outstanding equity securities of the entity
resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such entity
except to the extent that such ownership existed prior to the Business Combination and (C) at least a majority of the members
of the Board of Directors or other governing body of the entity resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination;
or

 

iv.                 Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

(d)            
“Continuous Service” means the uninterrupted provision of services to the Company or any Related
Entity in any capacity of employee, director, consultant or other service provider. Continuous Service shall not be considered
to be interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entities,
or any successor entities, in any capacity of employee, director, consultant or other service provider, or (iii) any change
in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of employee, director,
consultant or other service provider. An approved leave of absence shall include sick leave, military leave, or any other authorized
personal leave.

 

(e)             
“Non-Vested Shares” means any portion of the Restricted Stock subject to this Agreement that has
not become vested pursuant to Section 2.

 

(f)             
“Related Entity” means any Subsidiary, and any business, corporation, partnership, limited liability
company or other entity designated by the Board, in which the Company or a Subsidiary holds a substantial ownership interest, directly
or indirectly.

 

(g)            
“Subsidiary” means any corporation or other entity in which the Company has a direct or indirect
ownership interest of 50% or more of the total combined voting power of the then outstanding securities or interests of such corporation
or other entity entitled to vote generally in the election of directors or in which the Company has the right to receive 50% or
more of the distribution of profits or 50% or more of the assets on liquidation or dissolution.

 

(h)            
“Vested Shares” means any portion of the Restricted Stock subject to this Agreement that is and
has become vested pursuant to Section 2.

 

 

 

    	 	5	 

     

    

 

22.            
Miscellaneous.

 

(a)             
No Right to (Continued) Employment or Service. This Agreement and the grant of Restricted Stock hereunder
shall not shall confer, or be construed to confer, upon the Recipient any right to employment or service, or continued employment
or service, with the Company or any Related Entity.

 

(b)            
No Limit on Other Compensation Arrangements. Nothing contained in this Agreement shall preclude the Company
or any Related Entity from adopting or continuing in effect other or additional compensation plans, agreements or arrangements,
and any such plans, agreements and arrangements may be either generally applicable or applicable only in specific cases or to specific
persons.

 

(c)             
Severability. If any term or provision of this Agreement is or becomes or is deemed to be invalid, illegal
or unenforceable in any jurisdiction or under any applicable law, rule or regulation, then such provision shall be construed or
deemed amended to conform to applicable law (or if such provision cannot be so construed or deemed amended without materially altering
the purpose or intent of this Agreement and the grant of Restricted Stock hereunder, such provision shall be stricken as to such
jurisdiction and the remainder of this Agreement and the award hereunder shall remain in full force and effect).

 

(d)            
No Trust or Fund Created. Neither this Agreement nor the grant of Restricted Stock hereunder shall create
or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Related Entity
and the Recipient or any other person. To the extent that the Recipient or any other person acquires a right to receive payments
from the Company or any Related Entity pursuant to this Agreement, such right shall be no greater than the right of any unsecured
general creditor of the Company.

 

(e)             
Law Governing. This Agreement shall be governed by and construed and enforced in accordance with the internal
laws of the State of Nevada (without reference to the conflict of laws rules or principles thereof).

 

(f)             
Interpretation. The Recipient accepts the Restricted Stock subject to all of the terms, provisions and restrictions
of this Agreement. The undersigned Recipient hereby accepts as binding, conclusive and final all decisions or interpretations of
the Board upon any questions arising under this Agreement.

 

(g)            
Headings. Section, paragraph and other headings and captions are provided solely as a convenience to facilitate
reference. Such headings and captions shall not be deemed in any way material or relevant to the construction, meaning or interpretation
of this Agreement or any term or provision hereof.

 

(h)            
Notices. Any notice under this Agreement shall be in writing and shall be deemed to have been duly given when
delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the
Company, to the Company’s Chief Executive Officer at 1700 W. Horizon Parkway, Henderson, Nevada 89012, or if the Company
should move its principal office, to such principal office, and, in the case of the Recipient, to the Recipient’s last permanent
address as shown on the Company’s records, subject to the right of either party to designate some other address at any time
hereafter in a notice satisfying the requirements of this Section.

 

(i)              
Section 409A.

 

		i.	It is intended that the Restricted Stock awarded pursuant to this Agreement be exempt from Section 409A of the Code (“Section
409A”) because it is believed that the Agreement does not provide for a deferral of compensation and accordingly that
the Agreement does not constitute a nonqualified deferred compensation plan within the meaning of Section 409A. The provisions
of this Agreement shall be interpreted in a manner consistent with this intention, and the provisions of this Agreement may not
be amended, adjusted, assumed or substituted for, converted or otherwise modified without the Recipient’s prior written consent
if and to the extent that the Company believes or reasonably should believe that such amendment, adjustment, assumption or substitution,
conversion or modification would cause the award to violate the requirements of Section 409A.

 

		ii.	In the event that either the Company or the Recipient believes, at any time, that any benefit or right under this Agreement
is subject to Section 409A, and does not comply with the requirements of Section 409A, it shall promptly advise the other
and the Company and the Recipient shall negotiate reasonably and in good faith to amend the terms of such benefits and rights,
if such an amendment may be made in a commercially reasonable manner, such that they comply with Section 409A with the most
limited possible economic effect on the Recipient and on the Company.

 

 

 

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		iii.	Notwithstanding the foregoing, the Company does not make any representation to the Recipient that the shares of Restricted
Stock awarded pursuant to this Agreement are exempt from, or satisfies, the requirements of Section 409A, and the Company
shall have no liability or other obligation to indemnify or hold harmless the Recipient or any Beneficiary for any tax, additional
tax, interest or penalties that the Recipient or any Beneficiary may incur in the event that any provision of this Agreement, or
any amendment or modification thereof or any other action taken with respect thereto that either is consented to by the Recipient
or that the Company reasonably believes should not result in a violation of Section 409A, is deemed to violate any of the
requirements of Section 409A.

 

(j)              
Non-Waiver of Breach. The waiver by any party hereto of the other party’s prompt and complete performance,
or breach or violation, of any term or provision of this Agreement shall be effected solely in a writing signed by such party,
and shall not operate nor be construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to
exercise any right or remedy which he or it may possess shall not operate nor be construed as the waiver of such right or remedy
by such party, or as a bar to the exercise of such right or remedy by such party, upon the occurrence of any subsequent breach
or violation.

 

(k)            
Counterparts. This Agreement may be executed in two or more separate counterparts, each of which shall be
an original, and all of which together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the parties
hereto, agree to the terms of this Agreement and acknowledge receipt as dated below.

 

 

 

	 	 	 
	PAYSIGN, Inc., a Nevada corporation
	 	 
	By:	 	 
	
        Name:

        Title:

        
	 	 

 

Agreed and Acknowledged Receipt of Agreement:

 

Dated: ____________________________

 

RECIPIENT:

 

	 	 	 
	 
	 	 
	By:	 	 
	 	 	[Insert name of Recipient]

 

 

 

 

    	 	7clxt-ex101_347.htm

 

Exhibit 10.1

 

Calyxt, Inc.

Performance Stock Unit award agreement

 

 

	
Participant: _____________________
	
Award: ________ Performance Stock Units 

	
 
	
Grant Date:  June 28, 2019

 

THIS PERFORMANCE STOCK UNIT AWARD AGREEMENT (this “Agreement”) is made as of the Grant Date set forth above, by and between Calyxt, Inc., a Delaware corporation (the “Company”), and the participant named above (“Participant”) setting forth the terms and conditions of this Award of Performance Stock Units granted to Participant pursuant to the Calyxt, Inc. 2017 Omnibus Incentive Plan, as may be amended from time to time (the “Plan”).

1.Grant. Effective on the Grant Date, Participant has been granted the number of Performance Stock Units indicated above, subject to and pursuant to all terms and conditions stated in this Agreement and in the Plan. Each Performance Share Unit shall represent a contingent right to receive one Share as described more fully herein, to the extent such Performance Share Unit becomes vested and settled pursuant to the terms of this Agreement in Restricted Stock. Capitalized terms used herein and not defined shall have the meaning given such terms in the Plan.

2.Performance Factor; Vesting; Forfeiture. 

	
 
	
a.
	
As used in this Agreement, the following terms shall have the respective meanings:

	
 
	
i.
	
“Performance Factor” shall be equal to the quotient of the Performance Price divided by the Starting Price expressed as a percentage.

	
 
	
ii.
	
“Performance Price” shall mean the average of (A) the highest weighted average Fair Market Value per Share for the trading days within any thirty (30) day period within the Performance Period (the “First Measurement Price”) and (B) weighted average Fair Market Value per Share for the trading days within the thirty (30) day period ending on the last day of the Performance Period (the “Last Measurement Price”); provided that no trading day may be used more than once in the calculation of the First Measurement Price and the Last Measurement Price.

	
 
	
iii.
	
“Period Performance Factors” shall be equal to the two quotients of (A) the First Measurement Price divided by the Starting Price and (B) the Last Measurement Price divided by the Starting Price, each expressed as a percentage.

	
 
	
iv.
	
“Starting Price” shall mean $12.48.

 

 

	
 
	
v.
	
“Vesting Percentage” shall mean the percentage determined by reference to the Performance Factor referred to below:

 

			
	
 
	
Performance Factor
	
Vesting Percentage

	
Minimum
	
At least 160.20%
	
50%

	
Target
	
At least 240.35%
	
100%

	
Maximum
	
At least 320.50%
	
120%

 

To the extent the Performance Factor is less than the Minimum Performance Factor, the Vesting Percentage shall be zero. To the extent either of the Period Performance Factors is less than the Minimum Performance Factor, the Vesting Percentage shall be zero. To the extent the Performance Factor is between Minimum Performance Factor and Target Performance Factor, the Vesting Percentage will be between 50% and 100% calculated on a linear basis. To the extent the Performance Factor is between Target Performance Factor and Maximum Performance Factor, the Vesting Percentage will be between 100% and 120% calculated on a linear basis. In no event will the Vesting Percentage exceed 120% regardless of the Performance Factor.

	
 
	
vi.
	
“Performance Period” shall mean the period from the Grant Date to the three (3) year anniversary of the Grant Date. 

	
 
	
vii.
	
“Settlement Date” means the last day of the Performance Period.

	
 
	
b.
	
On the Settlement Date, the Performance Stock Units will vest and the Company will issue Participant in settlement of the vested Performance Stock Units such number of Shares of Restricted Stock equal to the number of Performance Stock Units covered by this Award multiplied by the Vesting Percentage, rounded down to the nearest whole Share, which Restricted Stock shall be subject to the Restrictions during the Restricted Period as provided in Section 6. The value of any fractional Share shall be paid to Participant in cash equal to the Fair Market Value of such fractional Share on the Settlement Date. No Restricted Stock will be issued to Participant prior to the Settlement Date and only then to the extent the Performance Stock Units are vested in accordance with this Section 2(b).

	
 
	
c.
	
If the Vesting Percentage shall be zero, the Performance Stock Units shall be forfeited to the Company without payment of any consideration therefor as of the Settlement Date and Participant’s rights under this Agreement will terminate effective as of the Settlement Date. If Participant’s Continuous Service Status terminates for any reason during the Performance Period, all Performance Stock Units shall be forfeited to the Company without payment of any consideration therefor as of the date of such termination and Participant’s rights under this Agreement will terminate effective as of the date of such termination.

2

 

3.No Rights As Stockholder in Performance Stock Units. Until Restricted Stock is issued in settlement of the Performance Stock Units on the Settlement Date, Participant will not be deemed for any purpose to be, or have rights as, a Company stockholder, including no right to vote or receive dividends with respect to Shares issuable upon settlement of the Performance Stock Units. 

4.Settlement into Restricted Stock. Participant shall be deemed to be the record owner of the Restricted Stock on the Settlement Date. Certificates evidencing the Restricted Stock shall be deposited with the Company to be held in escrow until such Shares are released to Participant or forfeited in accordance with this Agreement. If any Restricted Stock is forfeited, the Company shall direct the Company’s transfer agent and registrar for the Shares to make the appropriate entries in its records showing the cancellation of the certificate for such Restricted Stock and the Shares represented thereby shall have the status as authorized but unissued Common Stock.

5.Restricted Stock. During the period from the Settlement Date and until the two (2) year anniversary of the Settlement Date (the “Restricted Period”) and subject to earlier termination of the Restricted Period or forfeiture of the Restricted Stock as provided herein, the Restricted Stock, and all rights with respect to the Restricted Stock, may not be sold, assigned, transferred, exchanged, pledged, hypothecated or otherwise encumbered or disposed of, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect and shall be subject to the risk of forfeiture contained in Section 6 of this Agreement (such limitations on transferability and risk of forfeiture being herein referred to as “Restrictions”), but Participant shall have all other rights of a stockholder of the Company with respect to the Restricted Stock, including, but not limited to, the right to vote and receive dividends on the Restricted Stock.

6.Forfeiture of Restricted Stock; Lapse of Restrictions. If Participant’s Continuous Service Status terminates for any reason during the Restricted Period, except as provided in Section 8, all Restricted Stock shall be forfeited to the Company without payment of any consideration therefor as of the date of such termination and Participant’s rights under this Agreement will terminate effective as of the date of such termination. Upon lapse of the Restrictions following the Restricted Period, the Company shall, as soon as practicable thereafter, deliver to Participant a certificate for the Shares with respect to which the Restrictions have lapsed or direct the Company’s transfer agent and registrar to credit Participant’s book entry account with such number of Shares; provided that Participant shall be deemed to be the record owner of the Shares on date the Restrictions lapse.

7.No Transferability of Performance Stock Units; Effect of Death. The Performance Stock Units and all rights with respect to the Performance Stock Units shall not be sold, assigned, transferred, exchanged, pledged, hypothecated or otherwise encumbered or disposed of, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect. Any distribution or delivery required to be made to Participant under this Agreement will, if Participant is then deceased, be made to the administrator or executor of Participant’s estate. Any such administrator or executor must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer. 

3

 

8.Triggering Event. If a Triggering Event occurs at any time during the Performance Period, (a) the vesting of the Performance Stock Units shall not accelerate notwithstanding anything to the contrary in the Plan or any agreement with Participant; (b) the Performance Period will be deemed to have been terminated immediately before the Triggering Event; (c) if Participant’s Continuous Service Status is terminated on the date of the Triggering Event or at any time within the two (2) years following the date of the Triggering Event either (i) by the Company for Without Cause or (ii) by Participant for Good Reason, then the Company will pay Participant an amount in cash equal to the Vesting Percentage (as provided in this Section 8) multiplied by the Performance Stock Units covered by this Award within thirty (30) days following Participant’s termination of Continuous Service Status (subject to delay to the extent required in Section 26 of the Plan or Section 9 of this Agreement); provided that for the purposes of calculating the foregoing cash amount, the Vesting Percentage shall be determined based upon a Performance Factor using a Performance Price equal to the highest per Share price offered to stockholders of the Company in the transaction constituting such Triggering Event and provided further that if the resulting Performance Factor that is less than the Minimum Performance Factor, the Vesting Percentage shall be zero and the Performance Stock Units and any rights under this Agreement, including under this Section 8, shall be terminated as of the date of such Triggering Event without payment of any consideration therefor; and (d) the Performance Stock Units shall not be settled in Shares and all rights of Participant under this Agreement and to Shares shall terminate as of date of the Triggering Event and the sole payment shall be cash. Notwithstanding any other provision of this Agreement, if a Triggering Event occurs at any time following the Performance Period but during the Restricted Period, the Restricted Stock issued in accordance with Section 2(b) will fully (100%) vest and the Restrictions shall lapse on the Restricted Stock to the extent such Restrictions have not already lapsed pursuant to Section 6 such that the Restricted Stock will no longer be subject to the restrictions of, and risk of forfeiture under, this Agreement.  [Insert in CEO Awards: For the purposes of this Section 8, the terms “Without Cause” and “Good Reason” have the respective meanings ascribed to them in the offer letter agreement with Participant dated September 17, 2018, as modified by Section 15(i) of this Agreement.] [Insert in Other Awards: For the purposes of this Section 8, the term “Without Cause” has the meaning ascribed to it in the offer letter agreement with Participant dated [_______] and the term “Good Reason” has the meaning ascribed to it in Exhibit A, as modified by Section 15(i) of this Agreement.]  As a condition to receipt of any amounts under this Section 8, Participant must execute a general release of claims in favor of the Company, its Affiliates and Subsidiaries, successors and permitted assigns, and their respective officers and directors in a form provided by the Company within five (5) business days of termination of Continuous Service Status. If Participant does not execute the release within the time period set forth in the release (the “Release Execution Period”), Participant will be deemed to have waived any right to payment under this Section 8. If the Release Execution Period begins in one taxable year and ends in another taxable year, payment will not be made until the beginning of the second taxable year.

9.Administration and Compliance with Section 409A of the Code. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and will be construed, administered and interpreted in accordance with Section 409A of the Code. Notwithstanding any other provision of this Agreement, payments and settlements provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A of the Code either as separation pay provided due to an 

4

 

involuntary separation from service or as a short-term deferral will be excluded from Section 409A to the maximum extent possible. Any payments to be made under this Agreement upon a termination of employment will only be made upon a “separation from service” under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event will the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Participant on account of non-compliance with Section 409A of the Code.  Notwithstanding any other provision of this Agreement, if any payment or benefit provided to Participant in connection with termination of Continuous Service Status is determined to constitute “non-qualified deferred compensation” within the meaning of Section 409A of the Code and Participant is determined to be a “specified employee” at that time as defined in Section 409A of the Code, then such payment or benefit will not be paid until the first payroll date to occur following the six-month anniversary of the date of termination (the “Specified Employee Payment Date”) or, if earlier, on Participant’s death. The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date (and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which Participant’s separation from service occurs) shall be paid to Participant in lump sum on the Specified Employee Payment Date and thereafter, any remaining payments will be paid without delay in accordance with their original schedule.

10.No Right to Continued Service. The grant of this Award shall not be construed as conferring upon Participant any right to continue his or her employment with the Company for any period of time, nor does it interfere in any way with Participant’s right or the Company’s right to terminate that relationship at any time, for any reason, with or without cause. 

11.Not Salary, Pensionable Earnings or Base Pay. Participant acknowledges that this Agreement shall not be included in or deemed to be a part of (a) salary, normal salary or other ordinary compensation, (b) any definition of pensionable or other earnings (however defined) for the purpose of calculating any benefits payable to or on behalf of Participant under any pension, retirement, termination or dismissal indemnity, severance benefit, retirement indemnity or other benefit arrangement of the Company or any Subsidiary or (c) any calculation of base pay or regular pay for any purpose, without the Company’s consent.

12.Forfeiture Upon Breach of Certain Other Agreements. Participant’s breach of any non-competition, non-solicitation, confidentiality, non-disparagement, assignment of inventions or other intellectual property agreement that Participant may be a party to with the Company or any Affiliate, in addition to whatever other equitable relief or monetary damages that the Company or any Affiliate may be entitled to, shall result in automatic rescission, forfeiture, cancellation or return of the Performance Stock Units, the Restricted Stock or any Shares (whether or not vested) held by Participant.

13.Recoupment/Clawback. This Award and this Agreement may be subject to recoupment or “clawback” as may be required by applicable law, stock exchange rules or by any applicable Company policy or arrangement, as it may be established or amended from time to time.

5

 

14.Effect of Agreement. Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the terms of this Agreement), and hereby accepts this Award and agrees to be bound by its contractual terms as set forth herein and in the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Plan Administrator regarding any questions relating to this Award and this Agreement. In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of this Agreement, the Plan terms and provisions shall prevail.

15.Miscellaneous.

	
 
	
a.
	
Governing Law; Waiver of Jury Trial. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. BY RECEIPT OF THIS AWARD, THE PARTICIPANT WAIVES ANY RIGHT THAT THE PARTICIPANT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE PLAN.

	
 
	
b.
	
Participant Undertaking; Acceptance. Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to carry out or give effect to any of the obligations or restrictions imposed on either Participant or this Award pursuant to this Agreement. Participant acknowledges receipt of a copy of the Plan and this Agreement and understands that material definitions and provisions concerning this Award and Participant’s rights and obligations with respect thereto are set forth in the Plan. Participant has read carefully, and understands, the provisions of this Agreement and the Plan.

	
 
	
c.
	
Dispute Resolution. Any dispute or claim arising out of, under or in connection with the Plan or any Award Agreement shall be submitted to arbitration in Delaware and shall be conducted in accordance with the rules of, but not necessarily under the auspices of, the American Arbitration Association rules in force when the notice of arbitration is submitted. The arbitration shall be conducted before an arbitration tribunal, one selected by the Company, one selected by Participant, and the third selected by the first two. Participant and the Company agree that such arbitration will be confidential and no details, descriptions, settlements or other facts concerning such arbitration shall be disclosed or released to any third party without the specific written consent of the other party, unless required by law or court order or in connection with enforcement of any decision in such arbitration. Any damages awarded in such arbitration shall be limited to the contract measure of damages, and shall not include punitive damages.

	
 
	
d.
	
Entire Agreement; Enforcement of Rights. This Agreement and the Plan, sets forth the entire agreement and understanding of the parties relating to the subject matter herein and therein and merges and supersedes all prior and contemporaneous discussions, arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations or otherwise, between the parties with respect to the subject matter hereof.

6

 

	
 
	
e.
	
Amendment; Waiver. Except as contemplated under the Plan, no modification of or amendment to this Agreement that has a material adverse effect on Participant, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement; provided that the Company may amend or modify this Agreement without Participant’s consent in accordance with the provisions of the Plan or as otherwise set forth in this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party, provided that no waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature. Any amendment or modification of or to any provision of this Agreement, or any waiver of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given.

	
 
	
f.
	
Severability. If one or more provisions of this Agreement are held to be unenforceable under Applicable Laws, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement and a substantially similar provision shall be inserted that as closely as possible reflects the intent of the parties shall be substituted in place of such unenforceable provision, (ii) the balance of this Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with its terms.

	
 
	
g.
	
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by telegram or fax or forty-eight (48) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice:

		
	
If to the Company:

Calyxt, Inc.

2800 Mount Ridge Road
Roseville, MN 55113-1127

Attention: Chair of

Compensation Committee

Email: upon request
	
If to Participant:

At Participant’s most recent

address in the Company’s

records.

 

 

	
 
	
h.
	
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

	
 
	
i.
	
Successors and Assigns; No Third-Party Beneficiaries. The Company may not assign its rights or obligations under this Agreement without the prior written consent of Participant except to a successor of the Company. The rights and obligations of Participant under this Agreement may not be assigned without the 

7

 

	
 
		
prior written consent of the Company. This Agreement shall be binding upon and inure to the benefit of (a) Participant, Participant’s executors, administrators and heirs and (b) the Company and the successors and permitted assigns of the Company. The failure of the Company to assign this Agreement to a successor to the Company or failure of a successor to the Company to explicitly assume and agree to be bound by the Agreement shall be “Good Reason” for the purposes of Section 8. Except as provided in this Section 15(i), nothing in this Agreement, express or implied, is intended to confer on any Person other than the Company and Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

16.Data Privacy Notice and Consent. By participating in the Plan, Participant consents to the holding and processing of personal information provided by Participant to the Company or any subsidiary, trustee or third-party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to:

	
 
	
a.
	
administering and maintaining Participant records, a dissolution or liquidation of the Company;

	
 
	
b.
	
providing information to the Company, Subsidiaries, trustees of any employee benefit trust, registrars, brokers or third-party administrators of the Plan;

	
 
	
c.
	
providing information to future purchasers or merger partners of the Company or any Subsidiary, or the business in which Participant works; and

	
 
	
d.
	
transferring information about Participant to any country or territory that may not provide the same protection for the information as Participant’s home country.

17.Tax Withholding. As a condition precedent for the delivery by the Company of Shares in settlement of the Performance Stock Units or upon lapse of Restrictions on the Restricted Stock, or any other amount or benefit provided under this Agreement, and as further set forth in Section 15 of the Plan, Participant agrees to make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the grant, vesting or settlement of the Performance Stock Units or the grant, vesting or lapse of Restrictions on the Restricted Stock, dividend distribution thereon, whether by withholding, direct payment to the Company, or by surrendering Shares (either directly or by stock attestation) that Participant previously acquired. Regardless of any action the Company takes with respect to any or all income tax, social security, payroll tax, or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”), Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains Participant’s responsibility and may exceed the amount actually withheld. Participant further acknowledges that the Company (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this Award, including, but not limited to, the grant, vesting, settlement of the Performance Stock Units, the issuance of Shares upon lapse of Restrictions on the Restricted Stock, or any other amount or benefit provided under this Agreement and (b) does not commit to and is under no obligation to structure the terms of the grant or any aspect of this Award to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any 

8

 

particular tax result. In the event Participant fails to make adequate provision for applicable tax withholding obligations (or where the amount of money provided is insufficient to satisfy the applicable obligations), Participant authorizes the Company, in its discretion, to satisfy the obligations with regard to all Tax-Related Items by (i) withholding from Participant’s wages or other cash compensation paid to Participant, (ii) retaining Shares issuable to Participant upon lapse of Restrictions on the Restricted Stock, or (iii) a combination of the foregoing. Notwithstanding the foregoing, in no event shall payment of Tax-Related Items be made by delivery or retention of Shares exceeding the amount necessary to satisfy the Tax-Related Items at the maximum statutory withholding rates.

18.Blackout Periods. Participant acknowledges that, to the extent the vesting or settlement of any Performance Stock Units occur during a “blackout” period wherein certain employees, including Participant, are precluded from selling Shares, the Administrator retains the right, in its sole discretion, to defer the delivery of the Shares (including Restricted Stock) pursuant to the Performance Stock Units; provided, however, that the Administrator will not exercise its right to defer Participant’s receipt of such Shares if such Shares are specifically covered by a trading plan of Participant that conforms to the requirements of Rule 10b5-1 of the Exchange Act and the Company’s policies and procedures with respect to Rule 10b5-1 trading plans and such trading plan causes such shares to be exempt from any applicable blackout period then in effect. In the event the receipt of any Shares is deferred hereunder due to the existence of a regularly scheduled blackout period, such Shares will be issued to Participant on the first business day following the termination of such regularly scheduled blackout period; provided, however, that in no event will the issuance of such Shares be deferred subsequent to March 15th of the year following the year in which the Performance Stock Units are vested and settled. In the event the receipt of any Shares is deferred hereunder due to the existence of a special blackout period, such Shares will be issued to Participant on the first business day following the termination of such special blackout period as determined by the Company’s General Counsel or his or her delegatee; provided, however, that in no event will the issuance of such Shares be deferred subsequent to March 15th of the year following the year in which such Shares vest. Notwithstanding the foregoing, any deferred Shares will be issued promptly to Participant prior to the termination of the blackout period in the event Participant ceases to be subject to the blackout period. Participant hereby represents that he or she accepts the effect of any such deferral on Participant’s liability for Tax-Related Items or otherwise.

9

 

IN WITNESS WHEREOF, the Company has executed and delivered this Agreement as of the Grant Date.

 

			
	
 
	
CALYXT, INC.

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
 
	
 

	
 
	
Its:
	
 

	
 
	
 
	
 

	
 
	
 
	
 

10

 

[Insert in Other Awards: EXHIBIT A

 

“Good Reason” means:

 

The Company takes any of the following actions without Participant’s consent: (a) a material and adverse change in job title or a material diminution in authority, job duties or responsibilities; (b) a reduction in base salary or a material reduction in employment benefits; or (c) assignment to any work location more than fifty (50) miles from the Company’s headquarters as of the Grant Date.

 

The Company and Participant agree that “Good Reason” shall not exist unless and until Participant provides the Company with written notice of the acts alleged to constitute Good Reason within ninety (90) days of Participant’s knowledge of the occurrence of such event, and the Company fails to cure such acts within thirty (30) days of receipt of such notice, if curable. Participant must terminate Participant’s employment within sixty (60) days following the expiration of such cure period for the termination to be on account of Good Reason.]

11

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