Document:

Exhibit 10.26

Director Compensation Arrangements

The following summarizes the compensation arrangements
established between NeuroMetrix, Inc. (the “Company”) and its directors
through verbal agreements effective for the period from May 18, 2005
through December 31, 2005:

The non-employee members of the Board of Directors of
the Company (the “Board”), other than those affiliated with venture capital
firms that were stockholders of the Company as of the effective date of the
initial public offering of the Company (i.e.
William Laverack, Jr.), will receive annual cash compensation in the
amount of $5,000 for service as a member of the Board, which will be paid
following each annual meeting of the stockholders of the Company. In addition,
these non-employee directors will receive the sum of $1,000 for each board or
committee meeting that they attend, provided that they will not be entitled to
additional compensation for attending committee meetings that occur on the same
day as a board meeting at which they attend. This cash compensation will be in
addition to any stock options or other equity compensation that the Company
determines to grant to the directors on a case by case basis. The non-employee
members of the Board that are affiliated with venture capital firms that were
stockholders of the Company as of the effective date of the initial public
offering of the Company will not be compensated for serving as directors,
although the Company will reimburse these directors for all reasonable
out-of-pocket expenses incurred by them in attending board or committee
meetings. Dr. Gozani, the only employee member of the Board, will not be
separately compensated for his service on the Board.

The following summarizes the compensation arrangements
established between the Company and its directors through verbal agreements
effective from and after January 1, 2006:

Each of the non-employee members of the Board, other
than those affiliated with venture capital firms that were stockholders of the
Company as of the effective date of the initial public offering of the Company
(i.e., William Laverack, Jr.),
will receive annual cash compensation in the amount of $10,000 for service as a
member of the Board, which will be paid following each annual meeting of the
stockholders of the Company. On January 1, 2006, each of these
non-employee directors will be paid this annual cash compensation, on a pro
rata basis, for the period from January 1, 2006 to the anticipated date of
the 2006 annual meeting of the stockholders of the Company, less a pro rata
portion of any annual cash compensation previously paid to such director
attributable to this period. In addition, each of these non-employee directors
will receive the sum of $1,500 for each Board or Committee meeting that he
attends, provided that such director will not be entitled to additional
compensation for attending committee meetings that occur on the same day as a
board meeting he attends. This cash compensation will be in addition to any
stock options or other equity compensation that the Company determines to grant
to the directors on a case by case basis.

The non-employee members of the Board that are
affiliated with venture capital firms that were stockholders of the Company as
of the effective date of the initial public offering of the Company will not be
compensated for serving as directors, although the Company will reimburse these
directors for all reasonable out-of-pocket expenses incurred by them in
attending board or committee meetings. Dr. Gozani, the only employee
member of the Board, will not be separately compensated for his service on the
Board.Exhibit 10.26

2005 Director Compensation Arrangements

The
following summarizes the compensation arrangements established between Harvard
Bioscience, Inc. (the “Company”) and its directors through verbal
agreements effective from May 19, 2005 through February 28, 2006:

Each non-employee Director
will be entitled to receive a non-qualified stock option to
purchase 25,000 shares of common stock vesting annually over three
years and granted on the fifth business day following his or her initial
election to the Board and an annual retainer consisting of (a) $12,000
paid in four equal quarterly installments and (b) a non-qualified stock
option to purchase 2,500 shares of common stock vesting annually over
three years and granted on the fifth business day following each annual
stockholders meeting. Each non-employee Director member of the Audit Committee
will be entitled to receive an additional annual retainer of $6,000 paid in
four equal quarterly installments and an option to
purchase 2,500 shares of common stock vesting annually over three
years and granted on the fifth business day following each annual stockholders
meeting. Each non-employee Director member of the Compensation Committee will
be entitled to receive an additional annual retainer of $2,000 paid in four
equal quarterly installments. In addition, non-employee Directors are
reimbursed for their expenses incurred in connection with attending Board and
committee meetings.

The
following summarizes the compensation arrangements established between the Company
and its directors through verbal agreements effective as of February 28, 2006:

Each
non-employee Director will be entitled to receive a non-qualified stock option
to purchase 25,000 shares of our common stock vesting annually over three years
and granted on the fifth business day following his or her initial election to
the Board and an annual retainer consisting of (a) $12,000 paid in four equal
quarterly installments and (b) a non-qualified stock option to purchase 2,500
shares of our common stock vesting annually over three years and granted on the
fifth business day following each annual stockholders meeting. Each
non-employee Director member of the Audit Committee will be entitled to receive
an additional annual retainer of $6,000 paid in four equal quarterly
installments and an option to purchase 2,500 shares of our common stock vesting
annually over three years and granted on the fifth business day following each
annual stockholders meeting. Each non-employee Director member of the
Compensation Committee will be entitled to receive an additional annual
retainer of $2,000 paid in four equal quarterly installments.  Each non-employee member of the Governance
Committee is entitled to receive an additional annual retainer of $2,000 paid
in four equal quarterly installments. 
Each Committee Chairman is entitled to receive an additional annual
retainer of $2,000 paid in four equal quarterly installments. In addition,
non-employee Directors are reimbursed for their expenses incurred in connection
with attending Board and committee meetings.Exhibit 10.27

 

INCENTIVE STOCK OPTION TO PURCHASE SHARES OF COMMON

STOCK UNDER THE HARVARD
BIOSCIENCE, INC.

2000 STOCK OPTION AND
INCENTIVE PLAN

 

 

	
   

  	
  Shares

  	
   

  	
   

  
	
   

  	
   

  	
  (Option Issuance Date)

  

  

 

 

                Pursuant to the
Harvard Bioscience, Inc. 2000 Stock Option and Incentive Plan (the “Plan”),
Harvard Bioscience, Inc., a Delaware corporation (including its successors, the
“Company”), hereby grants to                          
(the “Optionee”) an
option to purchase (the “Option”) prior to the tenth (10th) anniversary of the
date hereof (the “Expiration Date”), at an exercise price per share of $          all or
any of            
shares of Common Stock, $.01 par value, of the Company (the “Shares”), subject
to the terms and conditions set forth herein and in the Plan (the “Agreement”).  This Option is intended to be an Incentive
Stock Option granted under the Plan.

 

1.             Vesting
Schedule.  No portion of this Option
may be exercised until such portion shall have vested.  Except as set forth below and subject to the
terms and conditions set forth below, this Option shall be vested and
exercisable with respect to the following number of Shares on the dates
indicated:

 

	
  Cumulative

  	
   

  	
   

  
	
  Number of

  	
   

  	
   

  
	
  Shares Exercisable

  	
   

  	
  Vesting
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
  (25%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (50%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (75%)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (100%)

  	
   

  	
   

  

 

 

Once vested, this Option shall continue to be exercisable at any time
or times prior to the close of business on the Expiration Date, subject to the
provisions hereof and of the Plan.

 

2.             Manner
of Exercise.  The Optionee may
exercise the Option only in the following manner: From time to time prior to
the Expiration Date, the Optionee may give written notice to the Company of any
election to purchase some or all of the vested Shares purchasable at the time
of such notice.  Said notice shall
specify the number of vested Shares to be purchased and shall be accompanied by
payment therefor in cash, certified check, bank check or wire transfer, in U.S.
funds, payable to the order of the Company in an amount equal to the purchase
price of such Shares, or with the consent of the Board of Directors of the
Company or a designated committee thereof (collectively, the “Board”) (i) by
delivery to the Company of shares of its Common Stock (including shares of
Common Stock to be acquired upon exercise of this Option in a “net exercise” of
this Option) having a fair market value equal to the purchase 

 

 

 

 

price of such Shares, (ii) by delivery to the Company of a promissory
note, in form and substance acceptable to the Board, in principal amount equal
to the purchase price of such Shares, or (iii) any combination of the above.

 

                The
delivery of certificates representing the Shares will be contingent upon the
Company’s receipt from the Optionee of full payment for the Shares, as set
forth above and any agreement, statement or other evidence that the Company may
require to satisfy itself that the issuance of Stock to be purchased pursuant
to the exercise of Options under the Plan and any subsequent resale of the
shares of Stock will be in compliance with the applicable laws and regulations.

 

                Certificates
for the shares of Stock purchased upon exercise of this Option shall be issued
and delivered to the Optionee upon compliance, to the satisfaction of the
Administrator, with all requirements under the applicable laws or regulations
in connection with such issuance and with the requirements hereof and of the
Plan.  The determination of the
Administrator as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Stock subject to this Option unless and until this Option shall have been
exercised pursuant to the terms hereof, the Company shall have issued and
delivered the shares to the Optionee, and the Optionee’s name shall have been
entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full
voting, dividend and other ownership rights with respect to such shares of Stock.

 

                The
minimum number of shares with respect to which this Option may be exercised at
any one time shall be 100 shares, unless the number of shares with respect to
which this Option is being exercised is the total number of shares subject to
exercise under this Option at the time.

 

3.             Termination
of Employment or Death of Optionee. 
The Option, as to any Shares not theretofore purchased, shall terminate
on the earlier of the Expiration Date or 30 days after the Optionee is no
longer employed by the Company or a Subsidiary (as defined in the Plan);
provided, however, that if such termination of employment results from (i) the
Optionee’s death or disability, the Option may be exercised as to vested Shares
as of the date of such termination of employment within three (3) months thereafter
(but in no event later than the Expiration Date) by the Optionee’s executors,
administrators, personal representatives, or any person or persons to whom the
Option may be transferred by will or by the laws of descent and distribution,
but only to the extent that the Optionee was entitled to exercise the Option at
the time of such termination of Optionee’s employment or (ii) the Optionee’s
termination for Cause (as defined below), the Option (as to all vested and
unvested Shares) shall immediately terminate and be of no further force or
effect.  Following the termination of the
Optionee’s employment and prior to the termination of the Option, unless
otherwise determined by the Administrator, the Option may only be exercised as
to vested Shares as of the date of the termination of the Optionee’s
employment.  The Option does not confer
upon the Optionee any right with respect to continuation of employment by the
Company, nor shall it interfere with any right of the 

 

 

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Company to terminate such employment at any time or any employee’s “employee-at-will”
status.

 

“Cause” as such
term relates to the termination of any person means the occurrence of one or
more of the following:  (i) such person
is convicted of, pleads guilty to, or confesses to any felony or any act of
fraud, misappropriation or embezzlement, (ii) such person engages in a
fraudulent act to the material damage or prejudice of the Company or any
Subsidiary or in conduct or activities materially damaging to the property,
business or reputation of the Company or any Subsidiary, (iii) any material act
or omission by such person involving malfeasance or negligence in the
performance of such person’s duties to the Company or any Subsidiary to the material
detriment of the Company or any Subsidiary, which has not been corrected by
such person within 30 days after written notice from the Company of any such
act or omission, (iv) failure by such person to comply in any material respect
with the terms of his employment agreement, if any, or any written policies or
directives of the Board, which has not been corrected by such person within 30
days after written notice from the Company of such failure, or (v) material
breach by such person of his noncompetition agreement with the Company, if any.

 

4.             Shares.  The Shares that are the subject of the Option
are shares of the Common Stock, $.01 par value, of the Company as constituted
on the date of the Option, subject to adjustment as provided in Section 3 of the
Plan.

 

5.             Effect
of Certain Transactions.  If (i) the
Company is merged into or consolidated with another corporation and the Company
is not the surviving corporation, (ii) one or more corporations are merged into
the Company which continues as the surviving corporation and the stockholders
of the Company immediately prior to the transaction own less than a majority of
its outstanding Common Stock immediately after the transaction, or shares of
Common Stock of the Company are converted into cash, securities or property
other than shares of Common Stock of the Company, or (iii) the Company is
liquidated, dissolved, or sells or otherwise disposes of all or substantially
all of its assets to another entity while any portion of the Option remains
unexercised and unexpired, then in any of such transactions the Board may, in
its sole discretion, take one or more of the following actions:

 

(a)           The
Compensation Committee of the Board (the “Committee”) may cancel the Option as
of the effective date of any such transaction, provided that notice of such
cancellation shall be given to the Optionee at least 15 days prior to the
effective date of such transaction, and the Optionee shall have the right to
exercise so much of the Option as is exercisable during said 15-day period,
including Options which become exercisable due to acceleration of vesting, if
any, by the Board;

 

(b)           The
Committee may (i) cancel the Option as to unvested Shares as of the effective
date of the transaction and (ii) provide for the repurchase of unexercised
Options as to vested Shares as of the effective date of such transaction by the
Company on the effective date of such transaction for the same cash, securities
or other property received with respect to each outstanding Share in the
transaction by the stockholders of the Company, less the exercise price of the Option;

 

3

 

(c)           The
Committee may provide for the voluntary exchange of the Option on the effective
date of such transaction for an option or other rights granted by a successor
corporation on terms reasonably acceptable to the Optionee; or

 

(d)           The
Committee may provide that after the effective date of such transaction, the
Optionee shall be entitled upon exercise of the Option as to any vested Shares
to receive in lieu of each Share purchasable under the Option the same cash,
securities or other property received with respect each outstanding Share in
the transaction by the stockholders of the Company.

 

Upon the consummation of a Sale Event (as defined in
the Plan) or occurrence of a Change of Control (as defined in the Plan), in
either case, following the grant date of the Option, the Option shall become
fully vested and exercisable with respect to all of the Shares as of the
effective time of the Sale Event or the occurrence of the Change of Control,
respectively.

 

6.             Status
of the Option.  This Option is
intended to qualify as an “incentive stock option” under Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), but the Company does
not represent or warrant that this Option qualifies as such.  The Optionee should consult with his or her
own tax advisors regarding the tax effects of this Option and the requirements
necessary to obtain favorable income tax treatment under Section 422 of the
Code, including, but not limited to, holding period requirements.  To the extent any portion of this Option does
not so qualify as an “incentive stock option,” such portion shall be deemed to
be a non-qualified stock option.  If the
Optionee intends to dispose or does dispose (whether by sale, gift, transfer or
otherwise) of any Shares within the one year period beginning on the date after
the transfer of such shares to him or her, or within the two year period
beginning on the day after the grant of this Option, he or she will so notify
the Company within 30 days after such disposition.

 

7.             Transferability.
  This Agreement is personal to the
Optionee, is non-assignable and is not transferable in any manner, by operation
of law or otherwise, other than by will or the laws of descent and
distribution. This Option is exercisable, during the Optionees’s lifetime, only
by the Optionee, and thereafter, only by the Optionee’s legal representative or
legatee.

 

8.             Miscellaneous.  Notices hereunder shall be mailed or
delivered to the Company as principal place of business, 84 October Hill Road,
Holliston, MA 01746 and shall be mailed or delivered to the Optionee at the
address set forth below, or in either case at such other address as one party
may subsequently furnish to the other party in writing.

 

 

Harvard Bioscience, Inc.

 

 

 

	
  By:

  	
   

  
	
  Name: 

  	
  Bryce Chicoyne

  
	
  Title:

  	
  Chief Financial Officer

  

 

 

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The foregoing Option is hereby acceptable and its
terms and conditions are hereby agreed to.

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security Number

  
					

 

 

 

 

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