Document:

ex_192636.htm

Exhibit 10.2

 

Vaxart, Inc.

Stock Option Grant Notice

(2019 Equity Incentive Plan)

 

Vaxart, Inc. (the “Company”), pursuant to its 2019 Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth in this stock option grant notice (this “Stock Option Grant Notice”), in the Option Agreement (the “Agreement”), the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. Capitalized terms not explicitly defined herein but defined in the Plan or the Agreement will have the same definitions as in the Plan or the Agreement. If there is any conflict between the terms herein and the Plan, the terms of the Plan will control.

 

	
			Optionholder:

				 
	 	 
	
			Date of Grant:

				
			 

			
	 	 
	
			Vesting Commencement Date:

				 
	 	 
	
			Number of Shares Subject to Option:

				 
	 	 
	
			Exercise Price (Per Share):

				
			$

			
	 	 
	
			Total Exercise Price:

				
			$

			
	 	 
	
			Expiration Date:

				 

 

Type of Grant:     ☐ Incentive Stock Option1      ☐ Nonstatutory Stock Option

 

Exercise Schedule:     Same as Vesting Schedule

 

	
			Vesting Schedule:

				
			[___________________]

			

 

Payment:      By one or a combination of the following items (described in the Agreement):

 

☐      By cash, check, bank draft, wire transfer or money order payable to the Company

☐     Pursuant to a Regulation T Program if the shares are publicly traded

 

 

Additional Terms/Acknowledgements: Optionholder acknowledges receipt of, and understands and agrees to all of the terms and conditions set forth in, this Stock Option Grant Notice, the Agreement and the Plan. Optionholder acknowledges and agrees that this Stock Option Grant Notice and the Agreement may not be modified, amended or revised except as provided in the Plan.  Optionholder further acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the Agreement, and the Plan set forth the entire understanding between Optionholder and the Company regarding this option award and supersede all prior oral and written agreements, promises and/or representations on that subject with the exception of (i) options previously granted and delivered to Optionholder, (ii) any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law and (iii) any written employment or severance arrangement that would provide for vesting acceleration of this option upon the terms and conditions set forth therein.

 

                                                                                                                 

[1] If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable for more than $100,000 in value (measured by exercise price) in any calendar year.  Any excess over $100,000 is a Nonstatutory Stock Option.

 

 

 

 

 

By accepting this option, Optionholder consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

	Vaxart, Inc.	 	«Optionholder» 
	 	 	 
	By:____________________________________	 	______________________________________________
	 	 	Signature:
	Name:_________________________________	 	 
	 	 	Date:__________________________________________
	Title:__________________________________	 	 
	 	 	 
	Date:__________________________________	 	 

 

Attachments: Agreement, 2019 Equity Incentive Plan, and Notice of Exercise

 

 

 

 

 

Attachment I

 

Vaxart, Inc.

2019 Equity Incentive Plan

Option Agreement

(Incentive Stock Option or Nonstatutory Stock Option)

 

Pursuant to your Stock Option Grant Notice (“Stock Option Grant Notice”) and this Option Agreement (this “Agreement”), Vaxart, Inc. (the “Company”) has granted you an option under its 2019 Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Stock Option Grant Notice at the exercise price indicated in your Stock Option Grant Notice. The option is granted to you effective as of the date of grant set forth in the Stock Option Grant Notice (the “Date of Grant”). If there is any conflict between the terms in this Agreement and the Plan, the terms of the Plan will control. Capitalized terms not explicitly defined in this Agreement or in the Stock Option Grant Notice but defined in the Plan will have the same definitions as in the Plan.

 

The details of your option, in addition to those set forth in the Stock Option Grant Notice and the Plan, are as follows:

 

1.     Vesting. Your option will vest as provided in your Stock Option Grant Notice. Vesting will cease upon the termination of your Continuous Service, as described in Section 8 below.

 

2.     Number of Shares and Exercise Price. The number of shares of Common Stock subject to your option and your exercise price per share in your Stock Option Grant Notice will be adjusted for Capitalization Adjustments.

 

3.     Exercise Restriction for Non-Exempt Employees. If you are an Employee eligible for overtime compensation under the U.S. Fair Labor Standards Act of 1938, as amended (that is, a “Non-Exempt Employee”), and except as otherwise provided in the Plan, you may not exercise your option until you have completed at least six (6) months of Continuous Service measured from the Date of Grant, even if you have already been an employee for more than six (6) months. Consistent with the provisions of the U.S. Worker Economic Opportunity Act, you may exercise your option as to any vested portion prior to such six (6) month anniversary in the case of (i) your death or disability, (ii) a Corporate Transaction in which your option is not assumed, continued or substituted, (iii) a Change in Control or (iv) your termination of Continuous Service on your “retirement” (as defined in the Company’s benefit plans).

 

4.     Incentive Stock Option Limitation. If your option is an Incentive Stock Option, then, to the extent that the aggregate Fair Market Value (determined at the Date of Grant) of the shares of Common Stock with respect to which your option plus all other Incentive Stock Options you hold are exercisable for the first time by you during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), your option(s) or portions thereof that exceed such limit (according to the order in which they were granted) will be treated as Nonstatutory Stock Options.

 

 

 

 

 

5.     Method of Payment. You must pay the full amount of the exercise price for the shares you wish to exercise. You may pay the exercise price in cash or by check, bank draft, wire transfer or money order payable to the Company or in any other manner permitted by your Stock Option Grant Notice, which may include, provided that at the time of exercise the Common Stock is publicly traded, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. This manner of payment is also known as a “broker-assisted exercise,” “same day sale,” or “sell to cover.”

 

6.     Whole Shares. You may exercise your option only for whole shares of Common Stock.

 

7.     Compliance. In no event may you exercise your option unless the shares of Common Stock issuable upon exercise are then registered under the Securities Act or, if not registered, the Company has determined that your exercise and the issuance of the shares would be exempt from the registration requirements of the Securities Act. The exercise of your option also must comply with all other applicable laws and regulations governing your option, including any U.S. state, federal and local laws, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and regulations (including any restrictions on exercise required for compliance with Treas. Reg. 1.401(k)-1(d)(3), if applicable).

 

8.     Term. You may not exercise your option before the Date of Grant or after the expiration of the option’s term. The term of your option expires, subject to the provisions of Section 5(h) of the Plan, upon the earliest of the following:

 

(a)     immediately upon the termination of your Continuous Service for Cause;

 

(b)     three (3) months after the termination of your Continuous Service for any reason other than Cause, your Disability, or your death (except as otherwise provided in Section 8(d) below); provided, however, that if during any part of such three-month period your option is not exercisable solely because of the condition set forth in the section above relating to “Compliance,” your option will not expire until the earlier of the Expiration Date or until it has been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; provided further, that if (i) you are a Non-Exempt Employee, (ii) your Continuous Service terminates within six (6) months after the Date of Grant, and (iii) you have vested in a portion of your option at the time of your termination of Continuous Service, your option will not expire until the earlier of (x) the later of (A) the date that is seven (7) months after the Date of Grant, and (B) the date that is three (3) months after the termination of your Continuous Service, and (y) the Expiration Date;

 

(c)     twelve (12) months after the termination of your Continuous Service due to your Disability (except as otherwise provided in Section 8(d) below);

 

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(d)     eighteen (18) months after your death if you die either during your Continuous Service or within three (3) months after your Continuous Service terminates for any reason other than Cause;

 

(e)     the Expiration Date indicated in your Stock Option Grant Notice; and

 

(f)     the day before the tenth (10th) anniversary of the Date of Grant.

 

If your option is an Incentive Stock Option, note that to obtain the U.S. federal income tax advantages associated with an Incentive Stock Option, the Code requires that at all times beginning on the Date of Grant and ending on the day three (3) months before the date of your option’s exercise, you must be an employee of the Company or an Affiliate, except in the event of your death or Disability. The Company has provided for extended exercisability of your option under certain circumstances for your benefit but cannot guarantee that your option will necessarily be treated as an Incentive Stock Option if you continue to provide services to the Company or an Affiliate as a Consultant or Director after your employment terminates or if you otherwise exercise your option more than three (3) months after the date your employment with the Company or an Affiliate terminates.

 

For purposes of your option, your Continuous Service will be considered terminated (regardless of the reason of termination, whether or not later found to be invalid or in breach of employment or other laws or rules in the jurisdiction where you are providing services or the terms of your employment or service agreement, if any) effective as of the date that you cease to actively provide services to the Company or any Affiliate and will not be extended by any notice period (e.g., employment or service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment or other laws in the jurisdiction where you are employed or providing services or the terms of your employment or service agreement, if any). The Board shall have exclusive discretion to determine when you are no longer actively employed or providing services for purposes of the Plan (including whether you still may be considered to be providing services while on a leave of absence).

 

9.     Exercise.

 

(a)     You may exercise the vested portion of your option during its term by (i) delivering a Notice of Exercise (in a form designated by the Company) or completing such other documents and/or procedures designated by the Company for exercise and (ii) paying the exercise price and any applicable Tax-Related Items (as defined in Section 11 below) to the Company’s Secretary, stock plan administrator, or such other person as the Company may designate, together with such additional documents as the Company may then require.

 

(b)     By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any Tax-Related Items.

 

(c)     If your option is an Incentive Stock Option, by exercising your option you agree that you will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option.

 

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(d)     By exercising your option you agree that you will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with respect to any shares of Common Stock or other securities of the Company held by you, for a period of one hundred eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act (the “Lock-Up Period”); provided, however, that nothing contained in this section will prevent the exercise of a repurchase option, if any, in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock until the end of such period. You also agree that any transferee of any shares of Common Stock (or other securities) of the Company held by you will be bound by this Section 9(d). The underwriters of the Company’s stock are intended third party beneficiaries of this Section 9(d) and will have the right, power and authority to enforce the provisions hereof as though they were a party hereto.

 

10.     Transferability. Except as otherwise provided in this Section 10, your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you.

 

(a)     Certain Trusts. Upon receiving written permission from the Board or its duly authorized designee, you may transfer your option to a trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable U.S. state law) while the option is held in the trust. You and the trustee must enter into transfer and other agreements required by the Company.

 

(b)     Domestic Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you and the designated transferee enter into transfer and other agreements required by the Company, you may transfer your option pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation 1.421-1(b)(2) that contains the information required by the Company to effectuate the transfer. You are encouraged to discuss the proposed terms of any division of this option with the Company prior to finalizing the domestic relations order or marital settlement agreement to help ensure the required information is contained within the domestic relations order or marital settlement agreement. If this option is an Incentive Stock Option, this option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

 

(c)     Beneficiary Designation. Upon receiving written permission from the Board or its duly authorized designee, you may, by delivering written notice to the Company, in a form approved by the Company and any broker designated by the Company to handle option exercises, designate a third party who, on your death, will thereafter be entitled to exercise this option and receive the Common Stock or other consideration resulting from such exercise. In the absence of such a designation, your executor or administrator of your estate or your legal heirs will be entitled to exercise this option and receive, on behalf of your estate, the Common Stock or other consideration resulting from such exercise.

 

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11.     Responsibility for Taxes.

 

(a)     You acknowledge that, regardless of any action the Company or, if different, your employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefit tax, payment on account or other tax related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount actually withheld by the Company or the Employer, if any. You further acknowledge that the Company and the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of your option, including, but not limited to, the grant, vesting or exercise of your option, the subsequent sale of shares of Common Stock acquired pursuant to such exercise and the issuance of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of your option to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. You acknowledge and agree that you will not make any claim against the Company, or any of its Officers, Directors, Employees or Affiliates for Tax-Related Items arising from your option. In particular, you acknowledge that this option is exempt from Section 409A of the Code only if the exercise price per share specified in the Grant Notice is at least equal to the “fair market value” per share of the Common Stock on the Date of Grant and there is no other impermissible deferral of compensation associated with the option. Further, if you are subject to Tax-Related Items in more than one jurisdiction, you acknowledge that the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

 

(b)     Prior to the relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, you authorize the Company and/or the Employer, or their respective agents, at their discretion, to satisfy their withholding obligations with regard to all Tax-Related Items by: (i) withholding from your wages or other cash compensation paid to you by the Company and/or the Employer, (ii) withholding from the proceeds of the sale of shares of Common Stock acquired at exercise of your option and sold either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization without further consent); and/or (iii) if this option is a Nonstatutory Stock Option, withholding a number of shares of Common Stock that are otherwise deliverable to you upon exercise.

 

(c)     Depending on the withholding method, the Company or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case you may receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding a number of shares of Common Stock, for tax purposes, you are deemed to have been issued the full number of shares of Common Stock, notwithstanding that a number of the shares of Common Stock is held back solely for the purpose of paying the Tax-Related Items.

 

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(d)     You agree to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. You acknowledge and agree that the Company may refuse to honor the exercise and refuse to issue or deliver the shares of Common Stock, or the proceeds of the sale of the shares of Common Stock, if you fail to comply with your obligations in connection with the Tax-Related Items.

 

12.     Nature of Grant. In accepting your option, you acknowledge, understand and agree that:

 

(a)     the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted under the Plan;

 

(b)     the grant of this option is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of options (whether on the same or different terms), or benefits in lieu of options, even if options have been granted in the past;

 

(c)     all decisions with respect to future options or other grants, if any, will be at the sole discretion of the Company;

 

(d)     you are voluntarily participating in the Plan;

 

(e)     this option and the shares of Common Stock subject to this option, and the income and value of same, are not intended to replace any pension rights or compensation;

 

(f)     the future value of the shares of Common Stock underlying the option is unknown, indeterminable, and cannot be predicted with certainty;

 

(g)     if the underlying shares of Common Stock do not increase in value, the option will have no value;

 

(h)     if you exercise the option and acquire shares of Common Stock, the value of such shares of Common Stock may increase or decrease in value, even below the exercise price

 

(i)     no claim or entitlement to compensation or damages shall arise from forfeiture of this option resulting from the termination of your Continuous Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or rendering services or the terms of your employment or service agreement, if any), and in consideration of the grant of this option, you irrevocably agree not to institute any claim against the Company or any Affiliate,

 

(j)     unless otherwise provided in the Plan or by the Company in its discretion, the option and the benefits evidenced by this Agreement do not create any entitlement to have the option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of Common Stock; and

 

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(k)     unless otherwise agreed with the Company, this option and any shares of Common Stock acquired under the Plan, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of an Affiliate.

 

13.     No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying shares of Common Stock. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

 

14.     Right of Repurchase. The Company will have the right to repurchase all of the shares of Common Stock you acquire pursuant to the exercise of your option upon termination of your Continuous Service for Cause. Such repurchase will be at the exercise price you paid to acquire the shares and will be effected pursuant to such other terms and conditions, and at such time, as the Company will determine.

 

15.     Option not a Service Contract. Your option is not an employment or service contract, and nothing in your option will be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Employer, or of the Employer to continue your employment. In addition, nothing in your option will obligate the Company or an Affiliate, their respective stockholders, boards of directors, officers or employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate. Finally, the grant of the option shall not be interpreted as forming an employment or service contract with the Company.

 

16.     Notices. Any notices provided for in your option or the Plan will be given in writing (including electronically) and will be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this option by electronic means or to request your consent to participate in the Plan by electronic means. By accepting this option, you consent to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

17.     Governing Plan Document. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be promulgated and adopted pursuant to the Plan. If there is any conflict between the provisions of your option and those of the Plan, the provisions of the Plan will control. In addition, your option (and any compensation paid or shares issued under your option) is subject to recoupment in accordance with The U.S. Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted by the Company and any compensation recovery policy otherwise required by applicable law. No recovery of compensation under such a clawback policy will be an event giving rise to a right to voluntarily terminate employment upon a resignation for “good reason,” or for a “constructive termination” or any similar term under any plan of or agreement with the Company.

 

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18.     Other Documents. You hereby acknowledge receipt of and the right to receive a document providing the information required by Rule 428(b)(1) promulgated under the Securities Act, which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s policy permitting certain individuals to sell shares only during certain “window” periods and the Company’s insider trading policy, in effect from time to time.

 

19.     Voting Rights. You will not have voting or any other rights as a shareholder of the Company with respect to the shares to be issued pursuant to this option until such shares are issued to you. Upon such issuance, you will obtain full voting and other rights as a shareholder of the Company. Nothing contained in this option, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.

 

20.     Severability. If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

 

21.     Insider Trading Restrictions/Market Abuse Laws. You acknowledge that you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell the shares of Common Stock or rights to the shares of Common Stock under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter.

 

22.     Imposition of Other Requirements. The Company reserves the right to impose other requirements on your participation in the Plan, and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

23.     Governing Law/Venue. The interpretation, performance and enforcement of this Agreement will be governed by the law of the State of Delaware without regard to that state’s conflicts of laws rules. For purposes of any action, lawsuit or other proceedings brought to enforce this Agreement, including its Exhibit, relating to it, or arising from it, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts within Santa Clara County, State of California, and no other courts, where this grant is made and/or to be performed.

 

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24.     Miscellaneous.

 

(a)     The rights and obligations of the Company under your option will be transferable to any one or more persons or entities, and all covenants and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns.

 

(b)     You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your option.

 

(c)     You acknowledge and agree that you have reviewed your option in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your option, and fully understand all provisions of your option.

 

(d)     All obligations of the Company under the Plan and this Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

 

*     *     *

 

This Agreement will be deemed to be signed by you upon the signing by you or otherwise by your acceptance of the Grant Notice to which it is attached.

 

 

 

 

 

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Attachment II

 

Vaxart, Inc.

2019 Equity Incentive Plan

 

 

 

 

 

Attachment III

 

Notice of Exercise

 

Vaxart, Inc. 

385 Oyster Point Boulevard, Suite 9A

South San Francisco, CA 94080

 

Date of Exercise: _______________

 

This constitutes notice to Vaxart, Inc. (the “Company”) under my stock option that I elect to purchase the below number of shares of Common Stock of the Company (the “Shares”) for the exercise price set forth below.

 

	
			Type of option (check one):

				
			Incentive

			☐

				 	
			Nonstatutory

			☐

			
	
			 

			Stock option dated:

				
			__________________________________

				 	
			_________________________________

			
	
			 

			Number of Shares as to which option is exercised:

				
			__________________________________

				 	
			_________________________________

			
	
			 

			Certificates to be issued in name of:

				
			__________________________________

				 	
			_________________________________

			
	
			 

			Total exercise price:

				
			$_________________________________

				 	
			$________________________________

			
	
			 

			Cash payment delivered herewith:

				
			$_________________________________

				 	
			$________________________________

			
	
			 

			Regulation T Program (cashless exercise1):

				
			$_________________________________

				 	
			$________________________________

			

 

By this exercise, I agree (i) to provide such additional documents as you may require pursuant to the terms of the Vaxart, Inc. 2019 Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to this option, and (iii) if this exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition of any of the Shares issued upon exercise of this option that occurs within two (2) years after the date of grant of this option or within one (1) year after such Shares are issued upon exercise of this option.

 

                                                                                                  

 

1 Shares must meet the public trading requirements set forth in the option agreement.

 

 

 

 

 

I further agree that, if required by the Company (or a representative of the underwriters) in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, I will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with respect to any shares of Common Stock or other securities of the Company for a period of one hundred eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act (or such longer period as the underwriters or the Company will request to facilitate compliance with FINRA Rule 2241 or any successor or similar rule or regulation) (the “Lock-Up Period”). I further agree to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such period.

 

 

 

	 	Very truly yours,	 
	 	 	 	 
	 	 	 	 
	 	Signature	 	 
	 	 	 	 
	 	 	 	 
	 	Print Name	 	 
	 	 	 	 
	 	Address of Record:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Email Address:Exhibit 10.1

 

 

 

	To:	The Directors of

Evolving Systems, Inc. (incorporated in Delaware
with registration number 02580274)

Evolving Systems Holdings Limited (company registration number 05272751)

Evolving Systems BLS
Limited (company registration number 10723209)

Evolving Systems Limited (company registration number
02325854)

Evolving Systems Lumata Limited (previously known as
Lumata UK Limited) (company registration number 03962393)

 

Date:  July 1, 2020

 

Dear Sirs/Madams

 

EVOLVING SYSTEMS HOLDINGS LIMITED
AND OTHERS - AMENDMENT AND WAIVER LETTER

 

	1.	BACKGROUND

 

		(a)	We refer to a facilities agreement
dated 16 August 2017 and made between (1)  Evolving
Systems, Inc. as Parent, (2) Evolving Systems Holdings Limited as Company and Original Borrower, (3) the companies listed in schedule
1 to it as Original Borrowers, (4) the companies listed in schedule 1 to it as Original Guarantors, and (5) East West Bank as
Lender as amended from time to time (the “Facilities Agreement”).

 

		(a)	This Letter is supplemental to and amends the Facilities Agreement.

 

		(b)	The Obligors have requested that the Lender agree certain amendments to
and waivers in respect of the Facilities Agreement. The Lender has consented to the amendments to and waivers in respect of the
Facilities Agreement contemplated by this Letter.

 

	2.	DEFINITIONS AND INTERPRETATION

 

	2.1	Definitions

 

In this Letter terms defined
in, or construed for the purposes of, the Facilities Agreement have the same meanings when used in this Letter (unless the same
are otherwise defined in this Letter):

 

		(a)	“Amended
                                         Facilities Agreement” means the Facilities Agreement as amended pursuant to
                                         paragraph 5.1 (Amendments) of this Letter;

 

		(b)	“Documents” means this Letter and each other agreement
referred to in paragraph 1 of schedule 1 (Conditions precedent); and

 

		(c)	“Effective Date” means the date on which the Lender gives
written notice to the Parent that it has received each of the documents and other evidence listed in schedule 1 (Conditions
precedent) in a form and substance satisfactory to the Lender.

  

2350 Mission College Blvd., STE
988 Santa Clara, CA 95054 ● Tel. 408.440.7760 ● Nasdaq: EWBC

 

    1 

     

    

 

 

 

	2.2	Paragraphs

 

		(a)	In this Letter, any reference to a “paragraph” or “schedule”
is, unless the context otherwise requires, a reference to a paragraph or schedule of this Letter.

 

		(b)	Paragraph and schedule headings are for ease of reference only.

 

	2.3	Continuing obligations

 

Subject to the provisions of
this Letter:

 

		(a)	the Facilities Agreement and all the other Finance Documents shall remain
in full force and effect;

 

		(b)	as from the Effective Date, the Facilities Agreement shall be read and construed
as one document with this Letter; and

 

		(c)	nothing in this Letter shall constitute or be construed as a waiver (save
as specifically and expressly waived under paragraphs 3 (Formal waiver) and 4 (Grant of waiver) of this Letter) or
release of any right or remedy of the Lender under the Finance Documents, nor otherwise prejudice any right or remedy of the Lender
under the Facilities Agreement or any other Finance Document.

 

	3.	FORMAL WAIVER

 

The Parent has informed the
Lender that as at the date of this Letter, the Parent is in breach of clause 20.2(b) (Financial condition) of the Facilities
Agreement by failing to maintain the minimum EBITDA for the measuring periods ended 31 March 2020 and 30 April 2020 (the “Breach”).

 

The Breach represents a breach
of the specified provision of the Facilities Agreement and consequently certain Events of Default have occurred and are continuing.

 

The Parent has requested
that the Lender waive the Events of Default which are continuing as a result of the Breach.

 

	4.	GRANT OF WAIVER

 

The Lender agrees to formally
waive the Events of Default which are continuing as a result of the Breach.

 

Any waiver granted in accordance
with this Letter shall apply only to the matters specifically referred to in this Letter and is given in reliance upon any information
supplied to the Lender by the Parent being true, complete and accurate. Such consent shall be without prejudice to any rights which
the Lender may now or hereafter have in relation to any other circumstances or matters other than as specifically referred to in
this Letter (and whether subsisting at the date hereof or otherwise) or in relation to any such information being other than true,
complete and accurate, which rights shall remain in full force and effect.

 

Any waiver granted in accordance
with this Letter does not constitute an amendment, deletion or addition to the provisions of the Facilities Agreement, and it shall
not operate as a waiver in respect of any other right or remedy.

 

 

2350 Mission College Blvd., STE
988 Santa Clara, CA 95054 ● Tel. 408.440.7760 ● Nasdaq: EWBC

 

    2 

     

    

 

 

 

	5.	AMENDMENTS AND FURTHER ASSURANCE

 

	5.1	Amendments

 

With effect from the Effective
Date, the Facilities Agreement shall be amended in accordance with schedule 2 (Amendments) to this Letter.

 

	5.2	Further assurance

 

Each Obligor shall (and the
Parent shall procure that each Obligor shall), at the request of the Lender and at its own expense, do all such acts and things
necessary or desirable to give effect to the amendments effected or to be effected pursuant to this Letter.

 

	6.	LAPSE

 

		(a)	If the Effective Date does not occur on or before the date which falls 30
days after the date of this Letter, this Letter shall, subject to paragraph 6(b), terminate and cease to be of any effect.

 

		(b)	Paragraphs 2.3, 8 (Guarantee and Security Confirmations) and 10 (Fees,
Costs and Expenses) shall continue in full force and effect notwithstanding the termination of this Letter pursuant to paragraph
6(a).

 

	7.	REPRESENTATIONS AND RELIANCE

 

	7.1	Representations

 

		(a)	Each Obligor represents and warrants that:

 

		(i)	the board resolutions referred to in paragraph 1 of schedule 1 (Conditions
precedent) were duly and properly passed after compliance with all appropriate formalities and remain in full force and effect;

 

		(ii)	it is authorised to execute this Letter and any other Documents to which
it is a party; and

 

		(iii)	it is authorised to make the representations and warranties as provided
in paragraph 5.1(a)(i) to 5.1(a)(ii).

 

		(b)	Subject to paragraph 4 of this Letter, each Obligor makes the Repeating Representations
(as defined in the Amended Facilities Agreement) and the representations set out in paragraph 5.1(a) on the date of this Letter
(whether or not the Effective Date shall have occurred by such date) and on the Effective Date, by reference to the facts and circumstances
existing at such dates.

 

	7.2	Reliance

 

Each Obligor acknowledges
that the Lender has entered into this Letter in full reliance on the representations and warranties made by it in the terms stated
in this paragraph 7.

 

2350 Mission College Blvd., STE
988 Santa Clara, CA 95054 ● Tel. 408.440.7760 ● Nasdaq: EWBC

 

    3 

     

    

 

 

 

	8.	GUARANTEE AND SECURITY CONFIRMATIONS

 

Each Obligor reaffirms that
(i) the guarantee and indemnity contained in clause 17 (Guarantee and indemnity) of the Facilities Agreement and (ii) the
Security constituted by the Transaction Security Documents shall:

 

		(a)	continue in full force and effect and extend to, and in the case of the Security
shall continue to secure, the obligations of the Obligors under the Facilities Agreement and the other Finance Documents, as amended
from time to time including as varied, amended, supplemented or extended by this Letter, notwithstanding any term or provision
of this Letter;

 

		(b)	not be released, reduced or impaired by (i) the execution, delivery and
performance of this Letter or any other document or agreement entered into pursuant to or contemplated by this Letter; or (ii)
any other Obligor not being bound by this Letter for any reason or by any Transaction Security provided to the Lender by any Obligor
being avoided or released or not being effective Security for the variation in the liabilities of the Obligors or any of them effected
by this Letter or such Transaction Security being limited or restricted in any way; and

 

		(c)	continue to secure the payment of liabilities and obligations of the Obligors
under the Finance Documents and that the definition of "Finance Documents" in the Facilities Agreement extends
to any amendment, supplementation, extension, novation, replacement, restatement and/or variation of any of them (however fundamental)
and accordingly that such guarantee and indemnity, and any Transaction Security granted by it, is intended to apply to and secure
any variation or increase in the liabilities or obligations of the Obligors at any time as a result (direct or indirect) of the
execution, delivery or performance of this Letter or the Facilities Agreement as amended by this Letter.

 

	9.	SUBORDINATION AGREEMENT CONFIRMATION

 

Each Obligor as Intra-Group
Creditor and Obligor under and as defined in the Subordination Agreement reaffirms that its and their obligations under the Subordination
Agreement remain valid, legal and binding notwithstanding the amendments to the Facilities Agreement effected by this Letter.

 

	10.	FEES, COSTS AND EXPENSES

 

The Parent shall within three
Business Days of demand pay the Finance Parties the amount of all costs and expenses (including legal fees) reasonably incurred
by any of them in connection with the negotiation, preparation, printing and execution of this Letter and any other documents referred
to in this Letter.

 

	11.	MISCELLANEOUS

 

	11.1	Counterparts

 

This Letter may be executed
in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this
Letter.

 

2350 Mission College Blvd., STE
988 Santa Clara, CA 95054 ● Tel. 408.440.7760 ● Nasdaq: EWBC

 

    4 

     

    

 

 

 

	11.2	Third party rights

 

		(a)	Unless expressly provided to the contrary in a Finance Document, a person
(other than a Finance Party) who is not a party to this Letter has no right under the Contracts (Rights of Third Parties) Act 1999
to enforce or enjoy the benefit of any term of this Letter.

 

		(b)	The consent of any person who is not a party to this Letter is not required
to rescind or vary this Letter at any time.

 

	11.3	Finance Document

 

The Lender and the Parent agree that this Letter is
a Finance Document.

 

	11.4	Governing law

 

This Letter and any non-contractual obligations arising
out of or in connection with it shall be governed by English law.

 

Please confirm your agreement to the above by signing
and returning the enclosed copy of this Letter.

 

Yours faithfully

 

	/s/ BILL ALLEN	 
	For and on behalf of
	EAST WEST BANK as
    Lender

 

2350 Mission College Blvd., STE
988 Santa Clara, CA 95054 ● Tel. 408.440.7760 ● Nasdaq: EWBC

 

    5 

     

    

 

 

 

SCHEDULE 1: CONDITIONS
PRECEDENT

 

	1.	OBLIGORS

 

A copy of a resolution of the board of directors of
each Obligor:

 

		(a)	approving the terms of, and the transactions contemplated by, this Letter
and resolving that it execute this Letter;

 

		(b)	authorising a specified person or persons to execute this Letter on its behalf; and

 

		(c)	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices to be signed and/or despatched by it under or in connection with this Letter.

 

	2.	FINANCE DOCUMENTS

 

This Letter duly executed by the Parent and each of
the other Obligors.

 

	3.	OTHER DOCUMENTS AND EVIDENCE

 

		(a)	Evidence that the fees, costs and expenses referred to in paragraph 10 (Fees,
Costs and Expenses) have been paid.

 

		(b)	A copy of any other authorisation or other document, opinion or assurance
which the Lender considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated
by this Letter or for the validity and enforceability of this Letter.

 

    6 

     

    

 

 

 

SCHEDULE 2: AMENDMENTS

 

	1.	AMENDMENTS

 

The Facilities Agreement will be amended as follows:

 

		(a)	the definition of “Termination Date” in clause 1.1 shall be deleted and replaced
with the following:

 

“Termination Date
means 31 December 2020.”

 

		(b)	clause 6.1.1 shall be deleted and replaced with the following:

 

“6.1.1 The Company
shall repay the Loans by paying to the Lender on each date set out in Column 1 below (each a Repayment Date) an amount equal to
the relevant amount (each a Repayment instalment) which is set out in Column 2 below opposite that date.

 

	Column 1	 	Column 2	 
	Payment Date	 	Capital Payment	 
	30 June 2020	 	$	142,484.10	 
	31 July 2020	 	$	142,484.10	 
	31 August 2020	 	$	142,484.10	 
	30 September 2020	 	$	142,484.10	 
	31 October 2020	 	$	142,484.10	 
	30 November 2020	 	$	142,484.10	 
	The Termination Date 
 (31 December 2020)	 	$	142,484.10	”

  

		(c)	clause 8.1 shall be amended to read as follows:

 

“8.1 Calculation of
interest

 

The rate of interest on each Loan for each Interest
Period is five percentage points (5%) per annum.”

 

    7 

     

    

 

 

 

		(d)	a new clause 19.8 (Global Cash Report) shall be inserted after clause
19.7 (and subsequent clause numbers (and references thereto) shall be re-numbered accordingly) as follows:

 

“19.8 Global Cash
Report

 

The Parent shall, no later
than Friday of each week, provide a report of Parent’s global cash, current as of the date of submission, in a form acceptable
to the Lender.”

 

		(e)	The definition of “EBITDA” in clause 20.1 (Financial
Covenants) shall be deleted and replaced with the following:

 

““EBITDA”
means with respect to any Relevant Period, an amount equal to the sum of consolidated earnings, plus to the extent deducted
in the calculation of earnings, (a) interest expense, (b) income tax expense, (c) depreciation and amortization expense, (d)
stock based compensation, (e) other income expenses, (f) restructuring costs, (g) goodwill impairment, (h) acquisition costs,
and (i) currency adjustments.”

 

		(f)	clause 20.2 (a) shall be amended to read as follows:

 

“Minimum Cash:
the Parent shall maintain at all times, tested as of the last day of each month, unrestricted consolidated cash in demand deposit
and/or money market accounts, in an amount equal to at least One Million Five Hundred Thousand Dollars ($1,500,000).”

 

		(g)	clause 20.2 (b) shall be deleted and replaced with the following:

 

“Minimum EBITDA:
the Parent shall maintain at all times, tested as of the last day of each Quarter Date, EBITDA, measured on a trailing three (3)
month basis, of at least the following amounts for the respective measuring periods set forth below:

 

	Measuring period ending	 	Minimum EBITDA	 
	30 June 2020	 	$	200,000	 
	30 September 2020	 	$	300,000	 
	31 December 2020	 	$	250,000”	 

 

    8 

     

    

 

 

 

[ON COPY]

 

To:        EAST WEST BANK as Lender

 

We acknowledge, agree and accept the above terms:

 

	THE OBLIGORS
	 
	/s/ MATTHEW STECKER	 
	/s/ MARK P. SZYNKOWSKI	 
	For and on behalf of
	EVOLVING SYSTEMS, INC.
	By: Matthew Stecker; Mark P.
    Szynkowski
	 
	/s/ MATTHEW STECKER	 
	For and on behalf of
	EVOLVING SYSTEMS HOLDINGS
    LIMITED
	By: Matthew Stecker
	 
	/s/ MATTHEW STECKER	 
	For and on behalf of
	EVOLVING SYSTEMS LIMITED
	By: Matthew Stecker
	 
	/s/ MATTHEW STECKER	 
	For and on behalf of
	EVOLVING SYSTEMS BLS LIMITED
	By: Matthew Stecker
	 
	/s/ MATTHEW STECKER	 
	For and on behalf of
	EVOLVING SYSTEMS LUMATA
    LIMITED (PREVIOUSLY KNOWN AS LUMATA UK LIMITED)
	By: Matthew Stecker

 

    9

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