Document:

gern-ex103_13.htm

 

EXHIBIT 10.3

Geron Corporation

2018 Inducement Award Plan

Adopted by the Board of Directors:  December 14, 2018

(with 3,000,000 share reserve)

Amended and Restated:  January 29, 2019 (added 5,000,000 shares)

Amended and Restated:  February 11, 2020 (added 1,300,000 shares)

Amended and Restated:  February  1, 2021 (added 800,000 shares)

Amended and Restated:  May 11, 2021 (added 5,000,000 shares)

 

1.General.

(a)Eligible Award Recipients.  Awards may only be granted to Employees who satisfy the standards for inducement grants under Rule 5635(c)(4) of the Nasdaq Listing Rules.  A person who previously served as an Employee or Director will not be eligible to receive Awards, other than following a bona fide period of non-employment.

(b)Available Stock Awards.  The Plan provides for the grant of the following types of Stock Awards: (i) Nonstatutory Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards and (v) Other Stock Awards.

(c)Purpose.  The Plan, through the granting of Stock Awards, is intended to 1) help the Company and any Affiliate secure and retain the services of eligible Stock Award recipients, 2) provide an inducement material for such persons to enter into employment with the Company or an Affiliate within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules, 3) provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and 4) provide a means by which the eligible recipients may benefit from increases in value of the Common Stock. The Plan is also intended to provide long-term incentives that align the interests of our eligible Stock Award recipients with the interests of our stockholders

2.Administration.

(a)Administration by Board.  The Board will administer the Plan.  The Board may delegate administration of the Plan to a Committee or Committees, as provided in Section 2(c).  However, notwithstanding the foregoing or anything in the Plan to the contrary, the grant of Stock Awards will be approved by the Company’s independent compensation committee or a majority of the Company’s independent directors (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules) in order to comply with the exemption from the stockholder approval requirement for “inducement grants” provided under Rule 5635(c)(4) of the Nasdaq Listing Rules.

(b)Powers of Board.  The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i)To determine (A) who will be granted Stock Awards; (B) when and how each Stock Award will be granted; (C) what type of Stock Award will be granted; (D) the provisions of each Stock Award (which need not be identical), including when a person will be permitted to exercise or otherwise receive cash or Common Stock under the Stock Award; (E) the number of shares of Common Stock subject to, or the cash value of, a Stock Award; and (F) the Fair Market Value applicable to a Stock Award.

(ii)To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for administration of the Plan and Stock Awards.  The Board, in the exercise of these powers, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it will deem necessary or expedient to make the Plan or Stock Award fully effective.

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(iii)To settle all controversies regarding the Plan and Stock Awards granted under it.

(iv)To accelerate, in whole or in part, the time at which a Stock Award may be exercised or vest (or the time at which cash or shares of Common Stock may be issued in settlement thereof).  

(v)To suspend or terminate the Plan at any time.  Except as otherwise provided in the Plan or a Stock Award Agreement, suspension or termination of the Plan will not materially impair a Participant’s rights under his or her then-outstanding Stock Award without his or her written consent except as provided in subsection (viii) below.

(vi)To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to certain nonqualified deferred compensation under Section 409A of the Code and/or to make the Plan or Stock Awards granted under the Plan exempt from or compliant with the requirements for nonqualified deferred compensation under Section 409A of the Code, subject to the limitations, if any, of applicable law.  Except as provided in the Plan (including Section 2(b)(viii)) or a Stock Award Agreement, no amendment of the Plan will materially impair a Participant’s rights under an outstanding Stock Award without the Participant’s written consent. 

(vii)To submit any amendment to the Plan for stockholder approval (to the extent the Board determines advisable or to the extent required pursuant to applicable laws or listing requirements), including, but not limited to, amendments to the Plan to comply with other applicable laws or listing requirements, provided, however, that any amendment provided in Section 9(a) relating to Capitalization Adjustments shall not require stockholder approval.

(viii)To approve forms of Stock Award Agreements for use under the Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion and applicable laws or listing requirements, including Rule 5635(c) of the Nasdaq Listing Rules; provided, however, that a Participant’s rights under any Stock Award will not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.  Notwithstanding the foregoing, (1) a Participant’s rights will not be deemed to have been impaired by any such amendment if the Board, in its sole discretion, determines that the amendment, taken as a whole, does not materially impair the Participant’s rights, and (2) subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s consent (A) to clarify the manner of exemption from, or to bring the Stock Award into compliance with, Section 409A of the Code; or (B) to comply with other applicable laws or listing requirements.

(ix)Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock Awards.

(x)To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside the United States (provided that Board approval will not be necessary for immaterial modifications to the Plan or any Stock Award Agreement that are required for compliance with the laws of the relevant foreign jurisdiction).

(c)Delegation to Committee.  The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee, as applicable).  Any delegation of administrative powers will be reflected in resolutions, not inconsistent with the provisions of the Plan, adopted from time to time by the Board or Committee (as applicable).  The Committee may, at any time, abolish the subcommittee and/or revest in the Committee any powers delegated to the subcommittee.  The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.  However, 

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notwithstanding the foregoing or anything in the Plan to the contrary, the grant of Stock Awards will be approved by the Company’s independent compensation committee or a majority of the Company’s independent directors (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules) in order to comply with the exemption from the stockholder approval requirement for “inducement grants” provided under Rule 5635(c)(4) of the Nasdaq Listing Rules.

(d)Effect of Board’s Decision.  All determinations, interpretations and constructions made by the Board in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons.

(e)Repricing; Cancellation and Re-Grant of Stock Awards.  Neither the Board nor any Committee will have the authority to (i) reduce the exercise, purchase or strike price of any outstanding Option or SAR under the Plan, or (ii) cancel any outstanding Option or SAR that has an exercise price or strike price greater than the then-current Fair Market Value of the Common Stock in exchange for cash or other Stock Awards under the Plan, unless the stockholders of the Company have approved such an action within 12 months prior to such an event.

(f)Dividends and Dividend Equivalents.  Dividends or dividend equivalents may be paid or credited, as applicable, with respect to any shares of Common Stock subject to a Stock Award, as determined by the Board and contained in the applicable Stock Award Agreement; provided, however, that (i) no dividends or dividend equivalents may be paid with respect to any such shares before the date such shares have vested under the terms of such Stock Award Agreement, (ii) any dividends or dividend equivalents that are credited with respect to any such shares will be subject to all of the terms and conditions applicable to such shares under the terms of such Stock Award Agreement (including, but not limited to, any vesting conditions), and (iii) any dividends or dividend equivalents that are credited with respect to any such shares will be forfeited to the Company on the date, if any, such shares are forfeited to or repurchased by the Company due to a failure to meet any vesting conditions under the terms of such Stock Award Agreement. 

3.Shares Subject to the Plan.

(a)Share Reserve.  

(i)Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards from and after the Effective Date will not exceed 15,100,000 shares (the “Share Reserve”).

(ii)For clarity, the Share Reserve in this Section 3(a) is a limitation on the number of shares of Common Stock that may be issued pursuant to the Plan.  Accordingly, this Section 3(a) does not limit the granting of Stock Awards except as provided in Section 7(a).  Shares may be issued in connection with a merger or acquisition as permitted by Nasdaq Listing Rule 5635(c) or, if applicable, NYSE Listed Company Manual Section 303A.08, AMEX Company Guide Section 711 or other applicable rule, and such issuance will not reduce the number of shares available for issuance under the Plan.

(b)Reversion of Shares to the Share Reserve. If a Stock Award or any portion thereof (i) expires or otherwise terminates without all of the shares covered by such Stock Award having been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock), such expiration, termination or settlement will not reduce (or otherwise offset) the number of shares of Common Stock that may be available for issuance under the Plan. If any shares of Common Stock issued pursuant to a Stock Award are forfeited back to or repurchased or reacquired by the Company for any reason, including because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares that are forfeited or repurchased or reacquired will revert to and again become available for issuance under the Plan. Any shares reacquired or withheld by the Company in satisfaction of tax withholding obligations on a Stock Award or as consideration for the exercise or purchase price of a Stock Award (including any shares subject to a Stock Award that are not delivered to a Participant because such Stock Award is exercised through a reduction of shares subject to such Stock Award (i.e., “net exercised”))  will again become available for issuance under the Plan.

(c)Source of Shares.  The stock issuable under the Plan will be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market or otherwise.

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4.Eligibility.

(a)Eligibility for Stock Awards.  Stock Awards may be granted only to persons who are Employees described in Section 1(a), where the Stock Award is an inducement material to the individual’s entering into employment with the Company or an Affiliate within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules.  For clarity, Stock Awards may not be granted to (1) Directors, for service in such capacity, or (2) any individual who was previously an Employee or Director, other than following a bona fide period of non-employment.  Notwithstanding the foregoing, Stock Awards may not be granted to Employees who are providing Continuous Service only to any “parent” of the Company, as such term is defined in Rule 405, unless (i) the stock underlying such Stock Awards is treated as “service recipient stock” under Section 409A of the Code (for example, because the Stock Awards are granted pursuant to a corporate transaction such as a spin off transaction) or (ii) the Company, in consultation with its legal counsel, has determined that such Stock Awards are otherwise exempt from or alternatively comply with the distribution requirements of Section 409A of the Code.

(b)Approval Requirements.  All Stock Awards must be granted either by a majority of the Company’s independent directors or by the Company’s compensation committee comprised of independent directors within the meaning of Rule 5605(a)(2) of the Nasdaq Listing Rules.

5.Provisions Relating to Options and Stock Appreciation Rights.

Each Option or SAR will be in such form and will contain such terms and conditions as the Board deems appropriate.  All Options will be Nonstatutory Stock Options.  The provisions of separate Options or SARs need not be identical; provided, however, that each Stock Award Agreement will conform to (through incorporation of provisions hereof by reference in the applicable Stock Award Agreement or otherwise) the substance of each of the following provisions:

(a)Term.  No Option or SAR will be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Award Agreement.

(b)Exercise Price.  The exercise or strike price of each Option or SAR will be not less than 100% of the Fair Market Value of the Common Stock subject to the Option or SAR on the date the Stock Award is granted.  Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower than 100% of the Fair Market Value of the Common Stock subject to the Stock Award if such Stock Award is granted pursuant to an assumption of or substitution for another option or stock appreciation right pursuant to a Corporate Transaction and in a manner consistent with the provisions of Section 409A of the Code.  Each SAR will be denominated in shares of Common Stock equivalents.

(c)Purchase Price for Options.  The purchase price of Common Stock acquired pursuant to the exercise of an Option may be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below.  The Board will have the authority to grant Options that do not permit all of the following methods of payment (or that otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to use a particular method of payment.  The permitted methods of payment are as follows:

(i)by cash, check, bank draft or money order payable to the Company;

(ii)pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the Common Stock subject to the Option, 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;

(iii)by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

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(iv)by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company will accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued.  Shares of Common Stock will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or

(v)in any other form of legal consideration that may be acceptable to the Board and specified in the applicable Stock Award Agreement.

(d)Exercise and Payment of a SAR.  To exercise any outstanding SAR, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Award Agreement evidencing such SAR.  The appreciation distribution payable on the exercise of a SAR will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the SAR) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such SAR, and with respect to which the Participant is exercising the SAR on such date, over (B) the aggregate strike price of the number of Common Stock equivalents with respect to which the Participant is exercising the SAR on such date.  The appreciation distribution may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Award Agreement evidencing such SAR.

(e)Transferability of Options and SARs.  The Board may, in its sole discretion, impose such limitations on the transferability of Options and SARs as the Board may determine.  In the absence of such a determination by the Board to the contrary, the restrictions set forth in this Section 5(e) on the transferability of Options and SARs will apply.  Notwithstanding the foregoing or anything in the Plan or a Stock Award Agreement to the contrary, no Option or SAR may be transferred to any financial institution without prior stockholder approval.   

(i)Restrictions on Transfer.  An Option or SAR will not be transferable except by will or by the laws of descent and distribution (and pursuant to Sections 5(e)(ii) and 5(e)(iii) below) and will be exercisable during the lifetime of the Participant only by the Participant.  Subject to the foregoing paragraph, the Board may permit transfer of the Option or SAR in a manner that is not prohibited by applicable tax and securities laws.  Except as explicitly provided in the Plan, neither an Option nor a SAR may be transferred for consideration. 

(ii)Domestic Relations Orders.  Subject to the approval of the Board or a duly authorized Officer, an Option or SAR may be transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulations Section 1.421-1(b)(2).  

(iii)Beneficiary Designation.  Subject to the approval of the Board or a duly authorized Officer, a Participant may, by delivering written notice to the Company, in a form approved by the Company (or the designated broker), designate a third party who, upon the death of the Participant, will thereafter be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.  In the absence of such a designation, upon the death of the Participant, the executor or administrator of the Participant’s estate will be entitled to exercise the Option or SAR and receive the Common Stock or other consideration resulting from such exercise.  However, the Company may prohibit designation of a beneficiary at any time, including due to any conclusion by the Company that such designation would be inconsistent with the provisions of applicable laws.

(f)Vesting Generally.  The total number of shares of Common Stock subject to an Option or SAR may vest and become exercisable in periodic installments that may or may not be equal.  The Option or SAR may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options or SARs may vary.  The provisions of this Section 5(f) are subject to any Option or SAR provisions governing the minimum number of shares of Common Stock as to which an Option or SAR may be exercised.

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(g)Termination of Continuous Service.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company or an Affiliate, if a Participant’s Continuous Service terminates (other than for Cause and other than upon the Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date three months following such termination of Continuous Service (or such longer or shorter period specified in the Stock Award Agreement), and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR (as applicable) within the applicable time frame, the Option or SAR (as applicable) will terminate.

(h)Extension of Termination Date.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company or an Affiliate, if the exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause and other than upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option or SAR will terminate on the earlier of (i) the expiration of a total period of time (that need not be consecutive) equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.  In addition, unless otherwise provided in a Participant’s Stock Award Agreement, if the sale of any Common Stock received upon exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option or SAR will terminate on the earlier of (i) the expiration of a period of time (that need not be consecutive) equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the sale of the Common Stock received upon exercise of the Option or SAR would not be in violation of the Company’s insider trading policy, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.

(i)Disability of Participant.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company or an Affiliate, if a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date 24 months following such termination of Continuous Service (or such longer or shorter period specified in the Stock Award Agreement), and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Option or SAR (as applicable) within the applicable time frame, the Option or SAR (as applicable) will terminate.

(j)Death of Participant.  Except as otherwise provided in the applicable Stock Award Agreement or other agreement between the Participant and the Company or an Affiliate, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Stock Award Agreement for exercisability after the termination of the Participant’s Continuous Service (for a reason other than death), then the Participant’s Option or SAR may be exercised (to the extent that the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only within such period of time ending on the earlier of (i) the date 24 months following the date of death (or such longer or shorter period specified in the Stock Award Agreement), and (ii) the expiration of the term of such Option or SAR as set forth in the Stock Award Agreement.  If, after the Participant’s death, the Option or SAR (as applicable) is not exercised within the applicable time frame, the Option or SAR (as applicable) will terminate.

(k)Termination for Cause.  Except as explicitly provided otherwise in a Participant’s Stock Award Agreement or other individual written agreement between the Participant and the Company or an Affiliate, if a Participant’s Continuous Service is terminated for Cause, the Participant’s Option or SAR will terminate immediately upon such termination of Continuous Service, and the Participant will be prohibited from exercising his or her Option or SAR from and after the time of such termination of Continuous Service.

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(l)Non-Exempt Employees.  If an Option or SAR is granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option or SAR will not be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option or SAR (although the Stock Award may vest prior to such date).  Consistent with the provisions of the Worker Economic Opportunity Act, (i) if such non-exempt employee dies or suffers a Disability, (ii) upon a Corporate Transaction in which such Option or SAR is not assumed, continued, or substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Award Agreement, in another agreement between the Participant and the Company or an Affiliate, or, if no such definition, in accordance with the Company’s or Affiliate’s then current employment policies and guidelines), the vested portion of any Options and SARs may be exercised earlier than six months following the date of grant.  The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt from his or her regular rate of pay.  To the extent permitted and/or required for compliance with the Worker Economic Opportunity Act to ensure that any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under any other Stock Award will be exempt from the employee’s regular rate of pay, the provisions of this Section 5(l) will apply to all Stock Awards and are hereby incorporated by reference into such Stock Award Agreements.

6.Provisions of Stock Awards Other than Options and SARs.

(a)Restricted Stock Awards.  Each Restricted Stock Award Agreement will be in such form and will contain such terms and conditions as the Board deems appropriate.  To the extent consistent with the Company’s bylaws, at the Board’s election, shares of Common Stock underlying a Restricted Stock Award may be (i) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse, or (ii) evidenced by a certificate, which certificate will be held in such form and manner as determined by the Board.  The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical.  Each Restricted Stock Award Agreement will conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

(i)Consideration.  A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order payable to the Company or (B) any other form of legal consideration (including future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

(ii)Vesting.  Shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.

(iii)Termination of Participant’s Continuous Service.  If a Participant’s Continuous Service terminates, the Company may receive through a forfeiture condition or a repurchase right any or all of the shares of Common Stock held by the Participant as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

(iv)Transferability.  Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement will be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board will determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.  Notwithstanding the foregoing or anything in the Plan or a Restricted Stock Award Agreement to the contrary, no Restricted Stock Award may be transferred to any financial institution without prior stockholder approval.

(b)Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement will be in such form and will contain such terms and conditions as the Board deems appropriate.  The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical.  Each Restricted Stock Unit Award Agreement will conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

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(i)Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award.  The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

(ii)Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

(iii)Payment.  A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.

(iv)Additional Restrictions.  At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

(v)Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

(c)Other Stock Awards.  Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock, including the appreciation in value thereof (e.g., options or stock appreciation rights with an exercise price or strike price less than 100% of the Fair Market Value of the Common Stock at the time of grant) may be granted either alone or in addition to Stock Awards granted under Section 5 and this Section 6.  Subject to the provisions of the Plan (including, but not limited to, Section 2(f)), the Board will have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.

7.Covenants of the Company.

(a)Availability of Shares.  The Company will keep available at all times the number of shares of Common Stock reasonably required to satisfy then-outstanding Stock Awards.

(b)Securities Law Compliance.  The Company will seek to obtain from each regulatory commission or agency having jurisdiction over the Plan the authority required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking will not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts and at a reasonable cost, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company will be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained.  A Participant will not be eligible for the grant of a Stock Award or the subsequent issuance of cash or Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities law.

(c)No Obligation to Notify or Minimize Taxes.  The Company will have no duty or obligation to any Participant to advise such holder as to the time or manner of exercising a Stock Award.  Furthermore, the Company will have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.

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8.Miscellaneous.

(a)Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock issued pursuant to Stock Awards will constitute general funds of the Company.

(b)Corporate Action Constituting Grant of Stock Awards.  Corporate action constituting a grant by the Company of a Stock Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant.  In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Stock Award Agreement or related grant documents as a result of a clerical error in the preparation of the Stock Award Agreement or related grant documents, the corporate records will control and the Participant will have no legally binding right to the incorrect terms in the Stock Award Agreement or related grant documents.  

(c)Stockholder Rights.  No Participant will be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to a Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of, or the issuance of shares of Common Stock under, the Stock Award pursuant to its terms, and (ii) the issuance of the Common Stock subject to such Stock Award has been entered into the books and records of the Company.

(d)No Employment or Other Service Rights.  Nothing in the Plan, any Stock Award Agreement or any other instrument executed thereunder or in connection with any Stock Award granted pursuant thereto will confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or will affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause or (ii) as may be applicable after the grant of a Stock Award should the Employee recipient’s service capacity change to that of a Consultant or Director, (1) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (2) the service of a Director pursuant to the bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

(e)Change in Time Commitment.  In the event a Participant’s regular level of time commitment in the performance of his or her services for the Company or any Affiliate is reduced (for example, and without limitation, if the Participant is an Employee of the Company and the Employee has a change in status from a full-time Employee to a part-time Employee) after the date of grant of any Stock Award to the Participant, the Board has the right in its sole discretion to (x) make a corresponding reduction in the number of shares or cash amount subject to any portion of such Stock Award that is scheduled to vest or become payable after the date of such change in time commitment, and (y) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Stock Award.  In the event of any such reduction, the Participant will have no right with respect to any portion of the Stock Award that is so reduced or extended.

(f)Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, will be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.

9

 

(g)Withholding Obligations.  Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii)  withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the maximum amount of tax that may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding cash from a Stock Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Stock Award Agreement.

(h)Electronic Delivery.  Any reference herein to a “written” agreement or document will include any agreement or document delivered electronically, filed publicly at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access).

(i)Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company or an Affiliate.  The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

(j)Compliance with Section 409A of the Code.  Unless otherwise expressly provided for in a Stock Award Agreement, the Plan and Stock Award Agreements will be interpreted to the greatest extent possible in a manner that makes the Plan and the Stock Awards granted hereunder exempt from Section 409A of the Code, and, to the extent not so exempt, in compliance with Section 409A of the Code.  To the extent that the Board determines that any Stock Award granted hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award will incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and, to the extent applicable, the Plan and Stock Award Agreements will be interpreted in accordance with the requirements of Section 409A of the Code.  Notwithstanding anything to the contrary in this Plan (and unless the Stock Award Agreement specifically provides otherwise), if the shares of Common Stock are publicly traded and a Participant holding a Stock Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount will be made upon a “separation from service” before a date that is six months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s death.

(k)Clawback/Recovery.  All Stock Awards granted under the Plan will be subject to recoupment in accordance with any clawback provisions in a Participant’s employment agreement or other agreement with the Company or any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law.  In addition, the Board may impose such other clawback, recovery or recoupment provisions in a Stock Award Agreement as the Board determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of Common Stock or other cash or property upon the occurrence of Cause.  No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company or an Affiliate.

9.Adjustments upon Changes in Common Stock; Other Corporate Events.

(a)Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan 

10

 

pursuant to Section 3(a) and (ii) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards.  The Board will make such adjustments, and its determination will be final, binding and conclusive.

(b)Dissolution or Liquidation.  Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.

(c)Corporate Transaction.  The following provisions will apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the Stock Award Agreement or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of a Stock Award.  In the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board may take one or more of the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction:

(i)arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);

(ii)arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

(iii)accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board determines (or, if the Board does not determine such a date, to the date that is five (5) days prior to the effective date of the Corporate Transaction), with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction; provided, however, that the Board may require Participants to complete and deliver to the Company a notice of exercise before the effective date of a Corporate Transaction, which exercise is contingent upon the effectiveness of such Corporate Transaction;

(iv)arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;

(v)cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction, in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and

(vi)make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the Participant would have received upon the exercise of the Stock Award immediately prior to the effective time of the Corporate Transaction, over (B) any exercise price payable by such holder in connection with such exercise. For clarity, this payment may be zero ($0) if the value of the property is equal to or less than the exercise price. Payments under this provision may be delayed to the same extent that payment of consideration to the holders of the Company’s Common Stock in connection with the Corporate Transaction is delayed as a result of escrows, earn outs, holdbacks or any other contingencies.

11

 

The Board need not take the same action or actions with respect to all Stock Awards or  portions thereof or with respect to all Participants.  The Board may take different actions with respect to the vested and unvested portions of a Stock Award.  

(d)Change in Control.  A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration will occur.  

10.Termination or Suspension of the Plan.

(a)The Board may suspend or terminate the Plan at any time.  No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

(b)No Impairment of Rights.  Suspension or termination of the Plan will not materially impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant or as otherwise permitted in the Plan.

11.Effective Date of Plan.

This Plan will become effective on the Effective Date.

12.Choice of Law.

	

	
The laws of the State of Delaware will govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.

13.Definitions.  As used in the Plan, the following definitions will apply to the capitalized terms indicated below:

(a) “Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405.  The Board will have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.

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

(c)“Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company will not be treated as a Capitalization Adjustment.

(d)“Cause” will have the meaning ascribed to such term in any written agreement between the Participant and the Company or an Affiliate defining such term and, in the absence of such agreement, such term will mean, with respect to a Participant and for purposes of the application of this Plan, the occurrence of any of the following events: (i) such Participant’s conviction of, or plea of no contest with respect to, any crime involving fraud, dishonesty or moral turpitude; (ii) such Participant’s attempted commission of or participation in a fraud or act of dishonesty against the Company or an Affiliate that results in (or might have reasonably resulted in) material harm to the business of the Company or an Affiliate; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or an Affiliate, or any statutory duty the Participant owes to the Company or an Affiliate; or (iv) such Participant’s conduct that constitutes gross misconduct, insubordination, incompetence or habitual neglect of duties and that results in (or might have reasonably resulted in) material harm to 

12

 

the business of the Company or an Affiliate. The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause will be made by the Company, in its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Stock Awards held by such Participant will have no effect upon any determination of the rights or obligations of the Company or an Affiliate or such Participant for any other purpose.

(e)“Change in Control” will be deemed to have occurred upon the first to occur of an event set forth in any one of the following paragraphs:

(i)As a result of any merger or consolidation, the voting securities of the Company outstanding immediately prior thereto represent (either by remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 49% of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such merger or consolidation; 

(ii)during any period of twenty-four consecutive calendar months, the individuals who at the beginning of such period constitute the Board, and any new directors whose election by such Board or nomination for election by stockholders was approved by a vote of at least two-thirds of the members of such Board who were either directors on such Board at the beginning of the period or whose election or nomination for election as directors was previously so approved, for any reason cease to constitute at least a majority of the members thereof; 

(iii)any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) shall become the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 20% of the then outstanding shares of Common Stock of the Company; 

(iv)any sale of all or substantially all of the assets of the Company; or 

(v)the complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Stock Award which provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event with respect to such Stock Award must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5) to the extent required by Section 409A.

The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because the threshold voting power of the Company’s then outstanding securities in Section 13(e)(i) or (iii) is acquired by (A) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by the Company or any of its subsidiaries or (B) any corporation which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Company in the same proportion as their ownership of stock in the Company immediately prior to such acquisition.

For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.

(f)“Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.

13

 

(g)“Committee” means a committee of one or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).

(h)“Common Stock” means the common stock of the Company.

(i)“Company” means Geron Corporation, a Delaware corporation.

(j)“Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, will not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration Statement under the Securities Act is available to register either the offer or the sale of the Company’s securities to such person.  Consultants are not eligible to be granted Stock Awards under this Plan with respect to their service in such capacity.

(k)“Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Director or Consultant or a change in the Entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board, in its sole discretion, such Participant’s Continuous Service will be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or to a Director will not constitute an interruption of Continuous Service.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service will be considered interrupted in the case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors.  Notwithstanding the foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s or Affiliate’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law. 

(l)“Corporate Transaction” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i)a sale, lease or other disposition of all or substantially all of the assets of the Company;

(ii)a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company; 

(iii)a merger, consolidation or similar transaction in which the Company is not the surviving corporation; or

(iv)a reverse merger, consolidation or similar transaction in which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

Notwithstanding the foregoing definition or any other provision of this Plan, the term Corporate Transaction will not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

(m)“Director” means a member of the Board. Directors are not eligible to be granted Stock Awards with respect to their service in such capacity under this Plan.

14

 

(n)“Disability” means, with respect to a Participant,  the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

(o)“Effective Date” means the effective date of this Plan document, which is December 14, 2018, the date the Plan was approved by the Board.  

(p)“Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.

(q)“Entity” means a corporation, partnership, limited liability company or other domestic or foreign entity.

(r)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

(s)“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

(i)If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value of a share of Common Stock will be, unless otherwise determined by the Board, the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable.

(ii)Unless otherwise provided by the Board, if there is no closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing selling price on the last preceding date for which such quotation exists.

(iii)In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Board in good faith and in a manner that complies with Sections 409A and 422 of the Code.

(t)“Non-Employee Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

(u)“Nonstatutory Stock Option” means any option granted pursuant to Section 5 that does not qualify as an “incentive stock option” within the meaning of Section 422 of the Code.

(v)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

(w)“Option” means a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.

(x)“Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant.  Each Option Agreement will be subject to the terms and conditions of the Plan.

15

 

(y)“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

(z)“Other Stock Award” means an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 6(c).

(aa) “Own,” “Owned,” “Owner,” “Ownership”  means a person or Entity will be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

(bb)“Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.

(cc)“Plan” means this Geron Corporation 2018 Inducement Award Plan.

(dd)“Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a).

(ee)“Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant.  Each Restricted Stock Award Agreement will be subject to the terms and conditions of the Plan.

(ff)“Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(b).

(gg)“Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant.  Each Restricted Stock Unit Award Agreement will be subject to the terms and conditions of the Plan.

(hh)“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

(ii)“Rule 405” means Rule 405 promulgated under the Securities Act.  

(jj)“Securities Act” means the Securities Act of 1933, as amended.

(kk)“Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 5.

(ll) “Stock Award” means any right to receive Common Stock granted under the Plan, including a Nonstatutory Stock Option, a Stock Appreciation Right, a Restricted Stock Award, a Restricted Stock Unit Award or any Other Stock Award.

(mm)“Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement will be subject to the terms and conditions of the Plan.

(nn)“Subsidiary” means, with respect to the Company, (i) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than 50%.

16amar_ex10-1a

  Exhibit 10.1(a)

 

EMPLOYMENT AGREEMENT

 

This Agreement (the "Agreement") is effective as
of August 1, 2021 (“Effective Date”) by and
between, LAWRENCE LIN (the "EMPLOYEE"), and AINOS, INC., a Texas Corporation (the
"EMPLOYER"), subject to EMPLOYER board of directors
approval.

 

RECITALS

 

WHEREAS,
the EMPLOYER seeks assistance in the areas of corporate
administration and overall strategic business development and
administration, particularly for its business operations in the
United States and as it pertains to preparations for EMPLOYER plans
for a major public stock exchange up listing; and

 

WHEREAS,
EMPLOYEE has agreed to perform work for the EMPLOYER as Executive
Vice President of Operations;

 

NOW,
THEREFORE, the parties hereby agree as follows:

 

1.            

EMPLOYEE's
Services.  EMPLOYEE and
will work from the EMPLOYER’s office in San Diego,
California, remotely from San Diego, California, and/or at other
locations as reasonably agreed to between the Parties. EMPLOYEE
shall be responsible for complying and implementing the
EMPLOYER’s programs, policies, and projects as summarized
in Exhibit
“A” of this
Agreement ("Scope of Work") and as may be otherwise needed and as
reasonably requested by EMPLOYER. This contract is for the personal
services of the EMPLOYEE and shall not be assigned by the EMPLOYEE
to any other person or entity.

 

2.            

Consideration.

 

A.           Salary: 
In consideration of the Services performed by EMPLOYEE under this
Agreement, the EMPLOYER will pay EMPLOYEE the
following:

 

(i)           Monthly
Salary: A monthly salary
payable to EMPLOYEE in the amount of $12,000, payable bi-monthly
(“Salary”).

 

B.           Employee
Benefits:

 

(i)           Health
and Dental Insurance:
Each month, EMPLOYER will reimburse EMPLOYEE for health insurance
premiums for PPO Health and Dental Insurance coverage
(“Health Benefit”) upon submission of paid premium
invoices paid by EMPLOYEE. EMPLOYEE shall have the option to
include members of his household in any such plan provided that
EMPLOYEE shall be responsible for any additional costs therefor.
Alternatively, if EMPLOYER obtains Health Benefits for its
employees then EMPLOYEE shall be included in such benefit plans. If
EMPLOYER adopts employee benefit plans for its employees then
EMPLOYEE shall be included in such plans on terms at least as
favorable as those accorded to other employees of EMPLOYER, subject
to insurability and the execution of any agreement required
therefor.

 

 

AINOS
INC Employment Agreement – Effective August 1
2021

LAWRENCE
LIN

1

 

 

(ii)           Non-Qualified
Stock Options: In recognition for EMPLOYEE’s services
facilitating the transition from Amarillo Biosciences, Inc. to
EMPLOYER’s current Company management, EMPLOYEE shall be
granted non-qualified stock options in 500,000 shares in the
EMPLOYERS’s common stock under EMPLOYER’S 2018
Officers, Directors, Employees and Consultants Non-Qualified Stock
Option Plan, adopted September 26, 2018, and as may be amended
(“NQSO Plan”). The Stock Option Agreement attached
hereto as Exhibit
“B” (“NQSO Agreement”) is
incorporated by this reference and shall be deemed approved by the
Parties upon execution of this Agreement. Additionally, if
EMPLOYEE, at his sole cost and expense, is assigned option rights
under NQSO Plan from third parties, the EMPLOYER agrees that
EMPLOYEE shall succeed to the vesting and stock option exercise
price of the assignor and such options will be otherwise included
in and governed by the attached NQSO Agreement. The assignment(s),
if any, effectuating the foregoing shall be deemed approved by
EMPLOYER by this reference and the EMPLOYEE is solely responsible
for obtaining any such assignment without obligation by EMPLOYER to
facilitate any such transaction. In the event that the NQSO Plan is
amended or superseded by another Incentive Stock Option Plan, the
stock options granted to EMPLOYEE shall be comparable and no less
favorable than provided for under the NQSO Plan.

 

 (iii)           Performance
Bonus upon listing on Major National Exchange: Upon the
EMPLOYER’S successful listing on a Major National Exchange
(e.g., Nasdaq or other national trading exchange), EMPLOYER shall
grant to, and EMPLOYEE shall receive 10,000 shares in
EMPLOYER’s voting common stock
(“Bonus Stock Grant”).

 

(iv)           Cost
of Living Increase: The Salary
will be increased five percent (5%) on the one year anniversary of
each Term Year, as defined hereunder and depending upon the
EMPLOYER’s operating conditions, during the Term and any
extensions thereof.

 

C.           Expenses: 
Each year, and from time to time, the EMPLOYER will establish a
budget for operating its programs and EMPLOYEE shall be bound by
the purposes and amounts for any such budget decision. In the event
that EMPLOYEE expends his own funds for pre-approved and
reimbursable expenses, EMPLOYEE will submit for EMPLOYER’s
review and pre-approval original receipts and a written
reimbursement request detailing reimbursable expenses. If the
EMPLOYER provides a credit or debit card any use of the same shall
be limited to the EMPLOYER’s pre-approved budget and for
EMPLOYER business only. EMPLOYEE shall submit a monthly written
expense report including original receipts.

 

D.           
Directors
and Officers Insurance:
EMPLOYER’s Directors and Officers Insurance shall cover the
EMPLOYEE.

 

3.            

Relationship of the
Parties. Nothing contained
herein or any document executed in connection herewith, shall be
construed to create a partnership or joint venture relationship
between the Parties.

 

4.            

Term. 

 

A.           Term
of Agreement: This
Agreement shall be effective for three (3) years commencing from
the Effective Date
through July 31, 2024, and may be extended for additional two (2)
years on the same terms and conditions upon mutual agreement of the
Parties.

 

 

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INC Employment Agreement – Effective August 1
2021

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LIN

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B.           Termination
of Agreement:

 

(i) Termination Without Cause:
Either party may terminate this Agreement with six (6) months prior
written notice for termination without cause and for the
convenience of either Party;

 

(ii) EMPLOYEE
Termination With Cause: EMPLOYEE may terminate this
Agreement with five (5) days written notice for cause which
includes, but is not limited to, the EMPLOYER’s breach of any
of the agreements and covenants in this Agreement, acts of
dishonesty, malfeasance, misfeasance, negligence, or material
misrepresentation; and

 

(iii) EMPLOYER
Termination With Cause: EMPLOYER may terminate this
Agreement with five (5) days written notice for cause which
includes, but is not limited to, the EMPLOYEE’s breach of any
of the agreements and covenants in this Agreement, acts of
dishonesty, malfeasance, misfeasance, negligence, or material
misrepresentation.

 

C.            

Effects of
Termination:

 

(i)           Severance
Payment: Liquidated Damages; Settlement, Release and Discharge of
EMPLOYER. If this Agreement is terminated without cause by
EMPLOYER pursuant to paragraph 4B(i) or with cause by EMPLOYEE
pursuant to paragraph 4B(ii), then the Parties agree that the
extent and cost for injury, damage, or other adverse impacts to
EMPLOYEE under this Agreement is difficult to determine and
speculative. In the interest of settling any claims against
EMPLOYER expeditiously, the EMPLOYER shall pay EMPLOYEE a severance
payment in the amount of six (6) months salary, employee benefits,
and any stock options under the NQSO Plan and NQSO Agreement shall
be fully accelerated and vested notwithstanding any other vesting
schedule thereunder, and any Stock Grants earned shall be issued
upon the date of termination (“Severance Payment”). The
Severance Payment shall constitute liquidated damages and any such
payment shall not be construed as admission of fault, guilt, or an
assumption of liability. EMPLOYEE hereby agrees to this liquidated
damages clause and shall settle, release and discharge EMPLOYER
from any and all liabilities, causes of action, or claims upon
EMPLOYER’s severance payment.

 

(ii)           Termination
by EMPLOYER for cause: If this
Agreement is terminated with cause by EMPLOYER, pursuant to
paragraph 4(iii) of this Agreement, then EMPLOYEE shall not have
any claim and expressly waives his claim for a Severance
Payment.

 

(iii)           Full
and Complete Waiver and Release: These provisions and waiver shall apply to any
claims, whether known by EMPLOYEE, and do include an express waiver
of any reservation of rights under Section 1542 of the California
Civil Code which reads as follows: “A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM WOULD HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

 

5.            

Competent
Work. All work will be
done in a competent fashion and all services are subject to final
approval by an authorized representative of the EMPLOYER. In the
event that the work-product or reports of EMPLOYEE do not meet the
standards and requirements of the EMPLOYER, the EMPLOYER may issue
a “Stop Work Order” and EMPLOYEE shall cease any and
all activity specified in such notice until such time that the
Parties agree to continue or terminate the EMPLOYEE’s work on
such activity.

 

 

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INC Employment Agreement – Effective August 1
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6.            

Representations and
Warranties. The EMPLOYEE
will make no representations, warranties, or commitments that bind
the EMPLOYER without the consent of the Board of Directors and/or
executive officers of the EMPLOYER. Furthermore,
U.S. law
requires companies to employ only individuals who may legally work
in the United States – either U.S. citizens, or foreign
citizens who have the necessary authorization. EMPLOYEE represents
that his employment with the EMPLOYER is in compliance with U.S.
law. EMPLOYEE represents that all communications during the course
of hiring, including EMPLOYEE’s resume / curriculum vitae and
references, are true and correct. The EMPLOYER is hereby authorized
to verify, at any time, any representation made by EMPLOYEE to
induce the EMPLOYER to enter into this
Agreement.

 

7.            

No Waiver. Failure to invoke any right, condition, or
covenant in this Agreement by either Party shall not be deemed to
imply or constitute a waiver of any rights, condition, or covenant
and neither Party may rely on such failure.

 

8.            

Notices.  For Notices required under this Agreement
(other than written reports and routine business communications)
shall be deemed effective when (a) personally delivered or
deposited, postage prepaid, in the first class mail of the United
States properly, (b) delivered by facsimile or electronic mail and
addressed to the appropriate party at the address set forth
below:

 

Notices as to EMPLOYEE:

 

Lawrence
K. Lin

2871
Nettle Creek Court

Chula
Vista, CA 91915

Tel:
310-869-4870

Email: lawrenceklin@gmail.com

 

Notices to the EMPLOYER:

 

Ainos,
Inc.

Attn:
Chief Executive Officer

8880
Rio San Diego Drive, Suite 800

San
Diego, CA 92108

Phone: 
808-869-2986

Email: et@tcnt.tw

 

9.            

EMPLOYER Supervisor.
Supervision will be provided to the
EMPLOYEE on an as-needed basis. The EMPLOYEE’s primary
supervisor for contract compliance shall be designated by the
EMPLOYER.

 

10.        

Enforceability. If
any provision of this Agreement is held by a court of competent
jurisdiction to be unenforceable, the reminder of the Agreement
shall remain in full force and effect and shall in no way be
impaired

 

11.        

Entire Agreement and
Amendments. This Agreement
constitutes the entire agreement of the Parties with regard to the
subject matter hereof, and replaces and supersedes all other
agreements or understandings, whether written or oral. No amendment
or extension of this Agreement shall be binding unless in writing
and signed by both Parties. The attached Exhibit “A”
(Scope of Work), Exhibit “B”
(NQSO Agreement), and
Exhibit
“C” (Standard Terms
and Conditions) are incorporated herein by this reference. EMPLOYEE
shall strictly comply with any and all policies, procedures,
standards and other requirements determined by
EMPLOYER.

 

 

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INC Employment Agreement – Effective August 1
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13.       

Binding Effect,
Assignment. This Agreement
shall be binding upon and shall inure to the benefit of EMPLOYEE
and the EMPLOYER and to the extent applicable each Party’s
heirs, successors and assigns. Assignment of any right or
obligation under this Agreement is expressly prohibited without the
prior written consent of both Parties.

 

14.      

Governing Law,
Severability. This
Agreement shall be governed by the laws of the State of California,
irrespective of its Choice of Law rules. The invalidity or
unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other
provision.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date:

 

 

	

Ainos, Inc.

	

 

	

 

	

EMPLOYEE:

	

 

	
 

	

 

	

 

	
 

	

 

	
/s/Chun-Hsien Tsai

	

 

	

 

	
/s/ Lawrence
Lin

	

 

	
Chun-Hsien Tsai

	

 

	

 

	
Lawrence
Lin

	

 

	
Chief
Executive Officer

	

 

	

 

	
	

 

 

 

EXHIBIT “A”

 

SCOPE OF WORK

 

1.

Assist
executive management team with oversight of North America business
operations and administration

2.

Anticipate
future executive management needs and offering solutions and
support

3.

Collaboration
with executive management on strategic goals, planning and budget
forecasting

4.

Coordinating
short- and long-term business development plans including, but not
limited to, managing a planned public market uplisting to a major
U.S. stock exchange

5.

Sourcing,
directing and evaluating new opportunities, acquisitions, mergers,
etc. that are within the EMPLOYER’s strategic growth and
development plans

 

 

AINOS
INC Employment Agreement – Effective August 1
2021

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LIN

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EXHIBIT “B”

 

STOCK OPTION AGREEMENT

Under
the Ainos, Inc.

2018
Nonqualified Stock Option Plan

 

 

THIS STOCK OPTION AGREEMENT ("Agreement") is made
by and between AINOS, INC., a Texas corporation
("AINOS" or the "Company"), and the Optionee ("Optionee")
and shall be effective upon the execution of that certain
Employment Agreement between the Parties to which this agreement is
attached (“Effective Date”).

 

WHEREAS, the Company adopted, effective September
26, 2018, the 2018 Officers, Directors, Employees and
Consultants Nonqualified Stock Option Plan (the “NQSO
Plan”), pursuant to which certain officers, directors,
employees and consultants of the Company were granted Options (the
"Options") to purchase voting Common Stock of the Company (the
"Common Stock"); and

 

WHEREAS, AINOS and Optionee desire to enter into
this Agreement to evidence a grant under the NQSO Plan and to set
forth their mutual understanding with regard to Optionee's
participation in the plan and the terms of the Options granted
thereunder to Optionee;

 

THEREFORE,
in consideration of the mutual covenants and agreements herein
expressed, and for other good and adequate consideration the
receipt and sufficiency of which are evidenced by the execution
hereof, AINOS and Optionee hereby agree as follows:

 

1.0            

Definitions.
"NQSO Plan" shall mean that certain Amarillo Biosciences,
Inc., 2018 Officers, Directors, Employees and Consultants
Nonqualified Stock Option Plan adopted by the Board of Directors of
the Company on September 26, 2018.

 

2.0            

Options
Grant. This Agreement shall
evidence the grant and award to Optionee under the NQSO Plan of
Options to purchase 500,000 shares of the voting Common Stock of
the Company. The Option Price is $0.38 per share which was the
closing price of the Common Stock on September 25, 2018. Unless
otherwise agreed to in the attached Employment Agreement or in
writing under a separate written agreement executed by the Parties,
the Options are exercisable during a period of ten (10) years from
the Effective Date and shall vest 33.33% annually, commencing one
(1) year from the Effective Date. The Options are exercisable, in
whole or in part or from time to time during the aforesaid term.
Additionally, any option rights acquired by Optionee from third
parties shall be in addition to the aforementioned Options Grants
(“Assigned Options”). The Assigned Options: (a) shall
be governed by a separate assignment agreement between Optionee and
the assignor; (b) that are vested at the time of assignment shall
likewise be vested in favor of Optionee; (c) that are not vested at
the time of assignment shall shall be subject to the vesting
schedule under this section; and (d) notwithstanding the exercise
dates and terms applicable to assignor, the Optionee (as assignee
of the options) shall exercise any such assigned options in
accordance with this section.

 

 

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INC Employment Agreement – Effective August 1
2021

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LIN

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3.0            

Terms and
Conditions. The Options and
Limited Rights (if Limited Rights have been granted under Article
IV of the NQSO Plan) are granted and received subject to all of the
terms and conditions of the plan, as well as any further terms and
conditions set forth under any written agreement executed by the
Parties relating to the Options. A copy of the NQSO Plan is hereby
incorporated by reference and as modified by this Agreement or
Optionee’s employment or consulting agreement with the
Company.

 

4.0            

Shares Not
Registered. Upon exercise of
any of the Options by Optionee, shares of the Company shall be
issued to Optionee subject to any applicable restrictions under
federal or state securities laws, and regulations promulgated
thereunder, and Optionee agrees to accept such shares subject to
such restrictions, and bearing any required or appropriate legends.
Rule 144 promulgated under the U.S. Securities Act of 1933 is
currently available for qualifying resales of restricted shares;
however, there is no assurance that the Common Stock will continue
to qualify for resale pursuant to Rule 144, and Optionee is
responsible for determining the availability of Rule 144, before
relying thereon.

 

5.0            

Tax
Considerations. The Company
does not and will not render tax advice to Optionee. Optionee
represents that he will consult his own tax advisor with respect to
the tax aspects of both the exercise of an Option and the
disposition of shares acquired pursuant to exercise of an Option.
The Options are not qualified stock options within the meaning of
the Internal Revenue Code of 1986, and therefore the exercise of
the Options may be expected to be a taxable
event.

 

6.0            

No Continued Right of
Employment. Optionee's
participation in the NQSO Plan does not confer upon Optionee the
right to continue in the employment of AINOS, nor does it affect
any right that AINOS may have to terminate the employment of
Optionee. If Optionee does not presently have an employment
contract with the Company, this Agreement shall not be construed as
a contract of employment. Notwithstanding the foregoing, the Optionee shall
be qualified to participate in the NQSO Plan as long as he/she
serves as an officer, director, employee and/or consultant to the
Company.

 

7.0            

No Shareholder Rights.
Optionee shall have no rights as a
shareholder with respect to Option shares unless and until the
Optionee exercises in whole or in part his options and certificates
evidencing such shares shall have been issued to
Optionee.

 

8.0            

Tax Withholding. Upon the exercise of any of the Options, AINOS
shall have the right to require Optionee to pay to AINOS the amount
of any taxes that are required by law to be withheld with respect
to such exercise.

 

9.0            

Assignability. Although limited
transferability is allowed under Article VI of the
Plan, Optionee acknowledges that he is responsible for
consulting with competent tax and securities counsel before
transferring Options, and that it may be necessary to make
appropriate disclosures to his transferee, regarding
lack of marketability.
In addition,
transfers of Options for value may
cause Optionee to recognize taxable
income.

 

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INC Employment Agreement – Effective August 1
2021

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LIN

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EXHIBIT “C”

 

STANDARD TERMS AND CONDITIONS

 

These Standard Terms and Conditions are made and incorporated by
this reference in the EMPLOYEE AGREEMENT (“Agreement”)
attached hereto.

 

1.0

PROTECTION OF EMPLOYER INFORMATION AND PROPERTY

 

1.1

Trade
Secrets. EMPLOYEE hereby agrees
and covenants not to disclose to third-parties or otherwise use to
the detriment of EMPLOYER any of the EMPLOYER’s data, forms,
processes, procedures, business plans or information, and methods
of operation whether or not marked “confidential” or
“trade secret”, and all of the foregoing is agreed to
treated as confidential and trade secrets of EMPLOYER by
EMPLOYEE.

 

1.2

Intellectual
Property. EMPLOYEE shall
immediately cease and desist using any of EMPLOYER’s trade
name, trade and service marks, and any other intellectual or
intangible property (whether or not registered) upon termination of
this Agreement. Any original works, as that term is defined under
the U.S. Copyright laws, that are created by EMPLOYEE in the
performance of this Agreement is agreed to be a “work made
for hire” and shall vest ownership to EMPLOYER upon creation.
Any other intellectual property created by EMPLOYEE that is not
subject to the copyright laws, are made by EMPLOYEE for the
exclusive benefit of EMPLOYER and EMPLOYEE hereby grants to the
EMPLOYER an irrevocable, exclusive, unlimited, and royalty-free
license to EMPLOYER for such works.

 

1.3

Use of Trade
Equipment. EMPLOYEE agrees and
covenants that its use of EMPLOYER’s trade equipment,
inclusive of EMPLOYER’s information technology, computer, and
communications systems, is for the exclusive benefit and purpose of
further EMPLOYER’s business. EMPLOYEE further agrees that any
personal use of EMPLOYER’s trade equipment is not
permitted.

 

1.4

Confidentiality and
Non-Disclosure. EMPLOYEE
acknowledges that the EMPLOYER, and its agents, consultants,
advisors and vendors possess and have developed certain subject
matter which valuable trade secrets and intellectual property
(hereinafter referred to as “Confidential
Information”). EMPLOYEE shall maintain as fully confidential
from third parties all the EMPLOYER’s Confidential
Information and not to disclose, divulge or use same, directly or
indirectly, save exclusively for the purposes for which it was
disclosed to the EMPLOYEE. In order to secure the confidentiality
of the Confidential Information the EMPLOYEE shall safeguard the
Confidential Information of the EMPLOYER in accordance with this
Agreement and with at least the same degree of care as it uses for
other confidential information it receives.

 

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INC Employment Agreement – Effective August 1
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1.4.1

Confidential Information
Defined. For purposes of this Agreement, “Confidential
Information” shall mean, any and all information, without
limitation, that directly or indirectly pertains to patents,
trademarks, trade names and service marks, and original creative
works and copyrighted works created, owned, produced or used by the
EMPLOYER. Without limitation, With regard to the foregoing,
Confidential Information shall also include information, data,
know-how, formulas, market research, business, sales and marketing
plans, concepts, tests, drawings, specifications, applications,
designs, trade secrets, information and data relating to the
EMPLOYER’s products, design methodology, processes,
operations and plans, financial situation, and any notes,
memoranda, summaries, analyses, compilations or any other writings
relating thereto prepared by the EMPLOYER or the EMPLOYEE or on
either Party’s behalf.

 

1.4.2

Non-Confidential Information.
The restrictions on use and disclosure set forth in this Agreement
shall not apply to any Confidential Information which:

 

1.4.2.1

Was already known
to the EMPLOYEE at the time such information was received from the
EMPLOYER or is independently developed by the EMPLOYEE without
reference to any Confidential Information disclosed by the
EMPLOYER;

 

1.4.2.2

Was or becomes
available to the general public, other than as a result of a breach
of this Agreement;

 

1.4.2.3

Is subsequently
obtained by the EMPLOYEE from a source other than the EMPLOYER or
its agents, provided that such source is not known by the EMPLOYEE
to be prohibited from transmitting the information by a
confidentiality agreement with, or other legal or fiduciary
obligation to, EMPLOYER;

 

1.4.2.4

The EMPLOYER has
released to a third Party on a non-confidential basis or for which
it authorizes release

 

1.4.2.5

Is required by law
to be disclosed under order of any court or other public authority
in judicial or administrative proceedings whether in discovery
proceedings or otherwise and wherein privilege or similar legal
protection form disclosure is not available.

 

1.4.3

Compulsory Disclosure to Third
Parties. If the EMPLOYEE is requested or required by oral
questions, interrogatories, subpoena, civil investigative demand,
applicable law, regulation, court order or other legal process or
by any governmental or regulatory authority to disclose
Confidential Information, or if such disclosure is needed in
connection with the defense or any action, suit or investigation
brought against the EMPLOYEE, the EMPLOYEE will provide the
EMPLOYER with notice of such request or requirement (unless such
notice is not possible under the circumstances) so that the
EMPLOYER may seek an appropriate protective order and/or waive
compliance with the terms of this Agreement.

 

 

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INC Employment Agreement – Effective August 1
2021

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LIN

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1.4.4

Purpose of Disclosure. EMPLOYEE
shall not, without the prior written consent of EMPLOYER, use
Confidential Information and EMPLOYEE shall not use, directly or
indirectly, for their own benefit or for the benefit of third
parties, publish or otherwise disclose Confidential Information to
any other person, or permit the use of Confidential Information.
EMPLOYEE agree that no copies (partial or complete) shall be made
of any of the Confidential Information, including, without
limitation, any writings, drawings, or products regarding the
Confidential Information generated by EMPLOYEE or their agents,
without the express written consent of the EMPLOYER. Any such
copies created with the consent of the EMPLOYER shall be returned
to the EMPLOYER upon demand.

 

1.4.5

Return or Destruction of Confidential
Information. At the EMPLOYER’s written request, the
EMPLOYEE shall forthwith return to the EMPLOYER or destroy, at the
EMPLOYER’s option, all Confidential Information in tangible
form and any copies of such Confidential Information, including
copies in electronic format, provided that one copy may be retained
for compliance purposes.

 

1.4.6

No Conveyance of Right or License
Intended. The disclosure of Confidential Information or its
use hereunder shall not be construed in any way as granting to the
EMPLOYEE any right or license with respect to the Confidential
Information other than the right to use Confidential Information
for the limited items defined under the Purpose of Disclosure
above. Any works created by EMPLOYEE shall be made on a “WORK
FOR HIRE” and an exclusive, worldwide, royalty-free license
basis with all right, title, and interest vesting in
EMPLOYER.

 

1.4.7

Covenant Not to Compete;
Non-Solicitation. EMPLOYEE covenants and agrees not to
compete with EMPLOYER with respect to the design, production,
manufacture, sales and marketing of products covered by the above
definition of Confidential Information. EMPLOYEE further covenants
and agrees not to solicit and engage in business transactions with
any third parties with respect to the Confidential Information. The
foregoing limitations on the use of Confidential Information is
expressly intended by the Parties to constitute a separate ground
of relief and damages in the event EMPLOYEE breaches this
subsection.

 

1.4.8

Equitable Relief. It is agreed
that the unauthorized disclosure or use of any Confidential
Information may cause immediate or irreparable injury to the
EMPLOYER, and that the Disclosers may not be adequately compensated
for such injury in monetary damages. In such event the EMPLOYER
shall be entitled to seek any temporary or permanent injunctive
relief necessary to prevent such unauthorized disclosure or use, or
threat of unauthorized disclosure or use. Notwithstanding the
foregoing, Disclosers reserves the right to seek any and all
damages to which it is entitled in equity or in law.

 

1.4.9

Severability. If any condition,
term or covenant of this Agreement shall at any time be held to be
void, invalid or unenforceable, such condition, covenant or term
shall be construed as severable and such holding shall attach only
to such condition, covenant or term and shall not in any way affect
or render void, invalid or unenforceable any other condition,
covenant or term of this Agreement, and this Agreement shall be
carried out as if such void, invalid or unenforceable term were not
embodied herein.

 

 

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INC Employment Agreement – Effective August 1
2021

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LIN

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2.0

EMPLOYEE’S DUTIES UPON TERMINATION.

 

2.1

Return of EMPLOYER
Property. Upon termination,
EMPLOYEE shall immediately return to EMPLOYER any and all data,
information, computer records and data, business records and files,
and any other document, record, trade equipment, supplies, keys,
modes of access, or any other material that was furnished by or
work products (including digital photographs, data, worksheets,
draft and final work product versions) created for the EMPLOYER
during the term of the Agreement. All of the foregoing shall at all
times by conclusively owned by the EMPLOYER and shall be returned
and submitted to the EMPLOYER at the conclusion of each task or
sub-task assigned under the Agreement. No files, documents, or
other materials will be removed from the EMPLOYER office to perform
the scope of work under this Agreement.

 

2.2

Termination of Right
of Access. Upon termination,
EMPLOYEE’s right of access to EMPLOYER’s information
technology, computer and communications systems, trade equipment,
business premises, records, files and any other property of
EMPLOYER shall be automatically terminated without further
notice.

 

2.3

Transfer of Business
Assignments. EMPLOYEE agrees
that upon termination, EMPLOYER has the unlimited right to assign
any of EMPLOYEE’s projects, assignments, or other matters (in
whole, or in part) to another person or entity as solely determined
by EMPLOYER. EMPLOYEE hereby understands and agrees that EMPLOYEE
does not have any property interest whatsoever in any of the
projects, assignment, business relationships, intangible and
tangible property, and any other matter made, created, or performed
during the term of this Agreement.

 

3.0

MISCELLANEOUS PROVISIONS.

 

3.1

Exclusive and Binding
Arbitration.
THE PARTIES AGREE
TO BINDING ARBITRATION AS THE EXCLUSIVE DISPUTE RESOLUTION FORUM TO
SETTLE AND RESOLVE ANY AND ALL DISPUTES ARISING FROM THE AGREEMENT
AND THE EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN THE PARTIES. IT IS
FURTHER AGREED THAT CALIFORNIA LAW SHALL GOVERN THIS AGREEMENT
(IRRESPECTIVE OF ITS CONFLICT OF LAW RULES), AND THAT THE
JURISDICTION AND VENUE FOR BINDING ARBITRATION SHALL BE THE CITY OF
SAN DIEGO, STATE OF CALIFORNIA. THE PARTIES AGREE TO UTILIZE JAMS
MEDIATION AND ARBITRATION SERVICES TO SETTLE ALL DISPUTES. THE
PARTIES EXPRESSLY AGREE TO WAIVE THEIR RIGHTS TO A JURY
TRIAL.

 

3.2

Injunctive and
Equitable Relief.
Notwithstanding Section 3.1, EMPLOYEE also agrees that any breach
by EMPLOYEE of Sections 1.0 and 2.0 of this Agreement, including
such sub-parts, would create irreparable and immediate harm to
EMPLOYER and as such EMPLOYEE consents to any injunctive or
equitable relief that may be available to
EMPLOYER.

 

3.3

Attorney’s Fees
and Costs. The prevailing party
under any dispute shall be entitled to its reasonable
attorney’s fees and costs, including costs of investigation
of such dispute.

 

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INC Employment Agreement – Effective August 1
2021

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LIN

11

 

 

3.4

Collection of
Claims. In the event that
EMPLOYEE adjudged the prevailing party in any action, EMPLOYEE
hereby agrees that his sole source to satisfy any judgment shall be
the operating checking account of the EMPLOYER. EMPLOYEE expressly
waives any rights to seek collection of any judgment against
EMPLOYER’s intellectual property rights or
interests.

 

3.5

Survival.
This Agreement shall survive and inure to the benefit of the
successors, assigns, heirs, and/or estates of the
parties.

 

3.6

Statute of
Limitations. Notwithstanding
any statutory or common-law rule to the contrary, and to the extent
permissible by law, the Parties agree that any right of action must
be commenced within one (1) year of the act, omission, event, or
circumstance that gave rise to such cause of
action.

 

 

 

 

 

 

 

 

 

 

 

AINOS
INC Employment Agreement – Effective August 1
2021

LAWRENCE
LIN

12

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