Document:

Exhibit 10.2

     

    

    FORM OF INDEMNIFICATION AGREEMENT

     

    

    This Indemnification Agreement is effective as of [●], 2021, (this “Agreement”) and is between Gain Therapeutics, Inc., a
      Delaware corporation (the “Company”), and the undersigned director/officer of the Company (the “Indemnitee”).

     

      

    Background

     

    

    The Company believes that, in order to attract and retain highly competent persons to serve as directors or in other capacities, including as officers, it must provide such
      persons with adequate protection through indemnification against the risks of claims and actions against them arising out of their services to and activities on behalf of the Company.

     

    

    The Company desires and has requested Indemnitee to serve as a director and/or officer of the Company and, in order to induce the Indemnitee to serve in such capacity, the
      Company is willing to grant the Indemnitee the indemnification provided for herein. Indemnitee is willing to so serve on the basis that such indemnification be provided.

     

    

    The parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.

     

    

    In consideration of Indemnitee’s service to the Company and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and
      adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows.

     

    

    Section 1.          

    Indemnification.

     

    

    To the fullest extent permitted by the General Corporation Law of the State of Delaware (the “DGCL”):

     

      

    (a)          

    The Company shall indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in,
        as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including
        appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the
        request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture,
        trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted in any such capacity.

     

      

    (b)          

    The indemnification provided by this Section 1 shall be from and against all loss and liability suffered and expenses (including
        attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding, including any appeals.

    
      
        

    

    Section 2.          

    Advance Payment of Expenses.  To the fullest extent permitted by the DGCL, expenses
        (including attorneys’ fees) incurred by Indemnitee in appearing at, participating in or defending any action, suit or proceeding or in connection with an enforcement action as contemplated by Section 3(e), shall be paid by the Company in advance of
        the final disposition of such action, suit or proceeding within 30 days after receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time. The Indemnitee hereby undertakes to repay any
        amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled under this Agreement to be indemnified by the Company in respect thereof. No other form of undertaking shall be required of
        Indemnitee other than the execution of this Agreement. This Section 2 shall be subject to Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 6.

     

      

    Section 3.          

    Procedure for Indemnification; Notification and Defense of Claim.

     

      

    (a)          

    Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding, Indemnitee shall, if a claim in
        respect thereof is to be made against the Company hereunder, notify the Company in writing of the commencement thereof. The failure to promptly notify the Company of the commencement of the action, suit or proceeding, or of Indemnitee’s request for
        indemnification, will not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the extent the Company is actually and materially prejudiced in its defense of such action, suit or proceeding as a result of such
        failure. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request therefor including such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to enable
        the Company to determine whether and to what extent Indemnitee is entitled to indemnification.

     

      

    (b)          

    With respect to any action, suit or proceeding of which the Company is so notified as provided in this Agreement, the Company shall,
        subject to the last two sentences of this paragraph, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so.
        After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any subsequently-incurred fees of separate counsel engaged
        by Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by Indemnitee has been previously authorized in writing by the Company. Notwithstanding the foregoing, if Indemnitee, based on the advice of
        his or her counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest
        or position between the Company and Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of Indemnitee, to assume such defense. In addition, the Company will not be entitled, without the
        written consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

    
      
        

    

    (c)          

    To the fullest extent permitted by the DGCL, the Company’s assumption of the defense of an action, suit or proceeding in accordance with
        paragraph (b) above will constitute an irrevocable acknowledgement by the Company that any loss and liability suffered by Indemnitee and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement by or for the account of
        Indemnitee incurred in connection therewith are indemnifiable by the Company under Section 1 of this Agreement.

     

      

    (d)          

    The determination whether to grant Indemnitee’s indemnification request shall be made promptly and in any event within 30 days following
        the Company’s receipt of a request for indemnification in accordance with Section 3(a). If the Company determines that Indemnitee is entitled to such indemnification or, as contemplated by paragraph (c) above, the Company has acknowledged such
        entitlement, the Company will make payment to Indemnitee of the indemnifiable amount within such 30 day period. If the Company is not deemed to have so acknowledged such entitlement or the Company’s determination of whether to grant Indemnitee’s
        indemnification request shall not have been made within such 30 day period, the requisite determination of entitlement to indemnification shall, subject to Section 6, nonetheless be deemed to have been made and Indemnitee shall be entitled to such
        indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a
        prohibition of such indemnification under the DGCL.

     

      

    (e)          

    In the event that (i) the Company determines in accordance with this Section 3 that Indemnitee is not entitled to indemnification under
        this Agreement, (ii) the Company denies a request for indemnification, in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described
        above, (iii) payment of indemnification is not made within such 30 day period, (iv) advancement of expenses is not timely made in accordance with Section 2, or (v) the Company or any other person takes or threatens to take any action to declare
        this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be
        entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses. Indemnitee’s expenses (including attorneys’ fees) incurred in connection with successfully establishing
        Indemnitee’s right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company to the fullest extent permitted by the DGCL.

     

      

    (f)          

    Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a
        request therefor in accordance with Section 2 or Section 3 of this Agreement, as the case may be. The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of
        entitlement to indemnification and advancement of expenses unless the Company overcomes such presumption by clear and convincing evidence.

    
      
        

    

    Section 4.          

    Insurance and Subrogation.

     

      

    (a)          

    The Company shall use its reasonable best efforts to purchase and maintain a policy or policies of insurance with reputable insurance
        companies with A.M. Best ratings of “A” or better, providing Indemnitee with coverage for any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee is or was or has agreed to serve
        as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for
        purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or arising out of
        Indemnitee’s status as such, whether or not the Company would have the power to indemnify Indemnitee against such liability under the provisions of this Agreement. Such insurance policies shall have coverage terms and policy limits at least as
        favorable to Indemnitee as the insurance coverage provided to any other director or officer of the Company. If the Company has such insurance in effect at the time the Company receives from Indemnitee any notice of the commencement of an action,
        suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy. The Company shall thereafter take all necessary or desirable
        action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

     

      

    (b)          

    Subject to Section 9(b), in the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of
        such payment to all of the rights of recovery of Indemnitee with respect to any insurance policy. Indemnitee shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are
        necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Company shall pay or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such
        subrogation.

     

      

    (c)          

    Subject to Section 9(b), the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable
        hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and excise taxes or penalties relating to the Employee Retirement Income Security Act of 1974, as amended) if and to the extent that Indemnitee has otherwise
        actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise.

     

      

    Section 5.          

    Certain Definitions.  For purposes of this Agreement, the following definitions shall apply:

     

      

    (a)          

    The term “action, suit or proceeding” shall be broadly construed and shall include, without
        limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action, suit, arbitration, alternative dispute mechanism or
        proceeding, whether civil, criminal, administrative or investigative.

     

      

    (b)          

    The term “by reason of the fact that Indemnitee is or was or has agreed to serve as a director,
            officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof,
            shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise” shall be broadly construed and shall
        include, without limitation, any actual or alleged act or omission to act.

    
      
        

    

    (c)          

    The term “expenses” shall be broadly construed and shall include, without limitation, all
        direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements, appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which
        Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing
        a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder.

     

      

    (d)          

    The term “judgments, fines and amounts paid in settlement” shall be broadly construed and
        shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan).

     

      

    Section 6.          

    Limitation on Indemnification.

     

    

    Notwithstanding any other provision herein to the contrary, the Company shall not be obligated pursuant to this Agreement:

     

      

    (a)          

    Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to an action, suit or proceeding (or
        part thereof), however denominated, initiated by Indemnitee, other than (i) an action, suit or proceeding brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement (which shall be governed by the
        provisions of Section 6(b) of this Agreement) and (ii) an action, suit or proceeding (or part thereof) that was authorized or consented to by the board of directors of the Company, it being understood and agreed that such authorization or consent
        shall not be unreasonably withheld in connection with any compulsory counterclaim brought by Indemnitee in response to an action, suit or proceeding otherwise indemnifiable under this agreement.

     

      

    (b)          

    Action for Indemnification. To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any action, suit or
        proceeding instituted by Indemnitee to enforce or interpret this Agreement, unless Indemnitee is successful in such action, suit or proceeding in establishing Indemnitee’s right, in whole or in part, to indemnification or advancement of expenses
        hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by the DGCL), or unless and to the extent that the court in such action, suit or proceeding shall determine that, despite Indemnitee’s failure to
        establish his or her right to indemnification, Indemnitee is entitled to indemnification for such expenses; provided, however, that nothing in this Section 6(b) is intended to limit the Company’s obligations with respect to the advancement of
        expenses to Indemnitee in connection with any such action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, as provided in Section 2 hereof.

     

      

    (c)          

    Section 16(b) Matters. To indemnify Indemnitee on account of any suit in which judgment is rendered against Indemnitee for
        disgorgement of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.

     

      

    (d)          

    Fraud or Willful Misconduct. To indemnify Indemnitee on account of conduct by Indemnitee where such conduct has been determined by
        a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has
        expired without such filing to have been knowingly fraudulent or constitute willful misconduct.

    
      
        

    

    (e)          

    Prohibited by Law. To indemnify Indemnitee in any circumstance where such indemnification has been determined by a final (not
        interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal or the time within which an appeal must be filed has expired without
        such filing to be prohibited by law.

     

      

    Section 7.          

    Certain Settlement Provisions.  The Company shall have no obligation to indemnify Indemnitee
        under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Company’s prior written consent. The Company shall not settle any action, suit or proceeding in any manner that would impose any fine or other
        obligation on Indemnitee without Indemnitee’s prior written consent. Neither the Company nor Indemnitee will unreasonably withhold his, her, its or their consent to any proposed settlement.

     

      

    Section 8.          

    Savings Clause.  If any provision or provisions (or portion thereof) of this Agreement shall
        be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee if Indemnitee was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending or
        completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including appeals, by reason of the fact that Indemnitee is or was or
        has agreed to serve as a director, officer, employee or agent of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent
        (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any
        action alleged to have been taken or omitted in such capacity, from and against all loss and liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of
        Indemnitee in connection with such action, suit or proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated.

     

      

    Section 9.          

    Contribution/Jointly Indemnifiable Claims.

     

      

    (a)          

    In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a
        court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event, the Company shall, to the fullest extent permitted by the DGCL, contribute to the payment of all of Indemnitee’s loss and
        liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee in connection with any action, suit or proceeding, including any appeals, in an amount
        that is just and equitable in the circumstances; provided, that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in
        Section 4(c), 6 (other than clause (e)) or 7 hereof.

    
      
        

    

    (b)          

    Given that certain jointly indemnifiable claims may arise due to the service of the Indemnitee as a director and/or officer of the Company
        at the request of the Indemnitee-related entities, the Company acknowledges and agrees that the Company shall be fully and primarily responsible for the payment to the Indemnitee in respect of indemnification or advancement of expenses in
        connection with any such jointly indemnifiable claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any right of recovery the Indemnitee may have from the Indemnitee-related entities. Under no circumstance shall
        the Company be entitled to any right of subrogation against or contribution by the Indemnitee-related entities and no right of advancement, indemnification or recovery the Indemnitee may have from the Indemnitee-related entities shall reduce or
        otherwise alter the rights of the Indemnitee or the obligations of the Company hereunder. In the event that any of the Indemnitee-related entities shall make any payment to the Indemnitee in respect of indemnification or advancement of expenses
        with respect to any jointly indemnifiable claim, the Indemnitee-related entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee against the Company, and Indemnitee shall
        execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable the Indemnitee-related entities effectively to bring suit
        to enforce such rights. The Company and Indemnitee agree that each of the Indemnitee-related entities shall be third-party beneficiaries with respect to this Section 9(b), entitled to enforce this Section 9(b) as though each such Indemnitee-related
        entity were a party to this Agreement. For purposes of this Section 9(b), the following terms shall have the following meanings:

     

      

    (i)          

    The term “Indemnitee-related entities” means any corporation, limited liability company,
        partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise Indemnitee has
        agreed, on behalf of the Company or at the Company’s request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement) from whom an Indemnitee may be entitled to indemnification
        or advancement of expenses with respect to which, in whole or in part, the Company may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance policy).

     

      

    (ii)          

    The term “jointly indemnifiable claims” shall be broadly construed and shall include,
        without limitation, any action, suit or proceeding for which the Indemnitee shall be entitled to indemnification or advancement of expenses from both the Indemnitee-related entities and the Company pursuant to the DGCL, any agreement or the
        certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable organizational documents of the Company or the Indemnitee-related entities, as applicable.

     

      

    Section 10.          

    Form and Delivery of Communications.  All notices, requests, demands and other
        communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or
        registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt or (d) sent by
        email or facsimile transmission, with receipt of oral or written confirmation that such transmission has been received. Notice to the Company shall be directed to Salvatore Calabrese, Chief Financial Officer, by email at
        scalabrese@gaintherapeutics.com or by telephone at +41 91 921 1524. Notice to Indemnitee shall be directed to Indemnitee’s contact information on file with the Company’s Secretary.

    
      
        

    

    Section 11.          

    Nonexclusivity.  The provisions for indemnification and advancement of expenses set forth in
        this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, in any court in which a proceeding is brought, other agreements or otherwise, and Indemnitee’s rights hereunder shall inure to
        the benefit of the heirs, executors and administrators of Indemnitee. No amendment or alteration of the Company’s Certificate of Incorporation or Bylaws or any other agreement shall adversely affect the rights provided to Indemnitee under this
        Agreement.

     

      

    Section 12.          

    No Construction as Employment Agreement.  Nothing contained herein shall be construed as
        giving Indemnitee any right to be retained as a director of the Company or in the employ of the Company. For the avoidance of doubt, the indemnification and advancement of expenses provided under this Agreement shall continue as to the Indemnitee
        even though he may have ceased to be a director, officer, employee or agent of the Company.

     

      

    Section 13.          

            Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by the DGCL.

     

      

    Section 14.          

    Entire Agreement.  This Agreement and the documents expressly referred to herein constitute
        the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by
        this Agreement.

     

      

    Section 15.          

    Modification and Waiver.  No supplement, modification, waiver or amendment of this Agreement
        shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such
        waiver constitute a continuing waiver. For the avoidance of doubt, this Agreement may not be terminated by the Company without Indemnitee’s prior written consent.

     

      

    Section 16.          

    Successor and Assigns.  All of the terms and provisions of this Agreement shall be binding
        upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company shall require and cause any direct or indirect
        successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of such Indemnitor, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and
        agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

    
      
        

    

    Section 17.          

    Service of Process and Venue.  The Company and Indemnitee hereby irrevocably and
        unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”),
        and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in
        connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Corporation Service Company, 251 Little Falls Drive, Wilmington, Delaware, 19808 as its
        agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State
        of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has
        been brought in an improper or inconvenient forum.

     

      

    Section 18.          

    Governing Law.  This Agreement shall be governed by and construed in accordance with the
        laws of the State of Delaware. If a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of Indemnitee, then the indemnification
        provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

     

      

    Section 19.          

    Counterparts.  This Agreement may be executed in two or more counterparts, each of which
        shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

     

      

    Section 20.          

    Headings.  The section and subsection headings contained in this Agreement are for reference
        purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

    
      
        

    

    This Agreement has been duly executed and delivered to be effective as of the date first above written.

     

    

    	
            Company:

          	 	
            Indemnitee:

          	 
	 	 	 	 	 
	
            GAIN THERAPEUTICS, INC.

          	 	 	 
	 	 	 	 	 
	
            By:                    

          	 	 	
            By:                    

          	 
	
            Name:

            

          	 	 	
            Name:

            

          	 
	Title: 

          	 	 	Title:profireltiprsuawardagree

101287414.1 0059466-00001 1  PROFIRE ENERGY, INC.  2014 EQUITY INCENTIVE PLAN  RESTRICTED STOCK UNIT AWARD AGREEMENT  This RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) is  made this ___ day of ______, 2019 (the “Effective Date”), by and between Profire Energy, Inc.,  a Nevada corporation (the “Company”), and Ryan Oviatt (“Participant”). All capitalized terms  used herein but not defined herein shall have the meanings given to them in the Profire Energy,  Inc. 2014 Equity Incentive Plan, as amended (the “Plan”).  1. Award.  The Company hereby grants to Participant a restricted stock unit award (the “Award”) covering up to 44,142 shares (the “Shares”) of Common Stock, par value $0.001 per  share, of the Company according to the terms and conditions set forth herein and in the Plan.  Each  restricted stock unit (a “Unit”) represents the right to receive one Share, subject to the vesting  requirements of this Agreement and the terms of the Plan.  The Units are granted under Section  6(c) of the Plan.  A copy of the Plan will be furnished upon request of Participant.  2. Performance Metrics and Vesting. (a) Except as otherwise provided in this Agreement, the number of Units granted under this Award that actually vest will be vested on the date (the “Vesting Date”) that the Committee  certifies that the Company has achieved the following performance metrics (each a “Performance  Metric”):  Performance Metric Weight Target Above Target Outstanding  Three Year Average Revenue Growth  Rate  1/3% 7.5% 10.0% 12.5%  Operating Income as a Percentage of  Revenue (Three Year Target)  1/3% 8.0% 10.0% 12.0%  Return on Invested Capital (Three Year  Target)  1/3% 12.0% 17.0% 21.0%  (b) The performance period (the “Performance Period”) shall commence on January 1, 2019 and terminate on December 31, 2021. The Committee shall certify whether the Company  has achieved the Performance Metrics as soon as administratively feasible following the end of  the Performance Period, but in no event later than 90 days following the end of the Performance  Period.  The Committee, in its sole discretion, shall have the right to determine how the  Performance Metrics are defined and whether they have been achieved.  (c) The vesting of the Award will be weighted one-third (1/3) for each of the three Performance Metrics. Separately from the other Performance Metrics, each Performance Metric  will determine the vesting for 14,714 Units subject to this Award. The number of Units that will  vest for each Performance Metric on the Vesting Date shall be determined as follows: (i) if the  “Target” level for such Performance Metric is not achieved, none of the Units relating to such  29 April 

 

        101287414.1 0059466-00001 2    Performance Metric will vest; (ii) if the “Target” level for such Performance Metric is achieved,  50% of the Units relating to such Performance Metric will vest; (iii) if the “Above Target” level  for such Performance Metric is achieved, 75% of the Units relating to such Performance Metric  will vest; and (iv) if the “Outstanding” level for such Performance Metric is achieved, 100% of  the Units relating to such Performance Metric will vest.  3. Restrictions on Transfer.  Until the Units vest pursuant to Section 2 hereof or unless  the Committee determines otherwise, none of the Units may be transferred other than by will or  by the laws of descent and distribution and no Units may be pledged, alienated, attached or  otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof  shall be void and unenforceable against the Company or any Affiliate.  The Committee may  establish procedures as it deems appropriate for Participant to designate a person or persons, as  beneficiary or beneficiaries, to exercise the rights of Participant and receive any property  distributable with respect to the Units in the event of Participant’s death.  4. Forfeiture.  Except as otherwise determined by the Committee, upon Participant’s  termination of providing service as an Eligible Person for the Company or any Affiliate (“Service”)  (in either case, as determined under criteria established by the Committee) prior to vesting of the  Units pursuant to Section 2 hereof, all unvested Units held by such Participant at such time shall  be forfeited and reacquired by the Company; provided, however, that the Committee may waive  in whole or in part any or all remaining restrictions with respect to the unvested Units. Upon  forfeiture, Participant will no longer have any rights relating to the unvested Units.    5. Miscellaneous  (a) Issuance of Shares.  As soon as administratively practicable following the Vesting  Date, and Participant’s satisfaction of any required tax withholding obligations (but in no event  later than 60 days following the Vesting Date), the Company shall cause to be issued and delivered  to Participant a certificate or certificates evidencing Shares registered in the name of Participant  (or in the name of Participant’s legal representatives, beneficiaries or heirs, as the case may be) or  to instruct the Company’s transfer agent to electronically deliver such Shares to Participant (or  applicable representative, beneficiary or heir).  The number of Shares issued shall equal the number  of Units vested, reduced as necessary to cover applicable withholding obligations in accordance  with Section 5(c) hereof.  If it is administratively impracticable to issue Shares within the time  frame described above because issuances of Shares are prohibited or restricted pursuant to the  policies of the Company that are reasonably designed to ensure compliance with applicable  securities laws or stock exchange rules, then such issuance shall be delayed until such prohibitions  or restrictions lapse.  (b) No Rights as Shareholder.  Units are not actual Shares, but rather, represent a right  to receive Shares according to the terms and conditions set forth herein and the terms of the Plan.   Accordingly, the issuance of a Unit shall not entitle Participant to any of the rights or benefits  generally accorded to shareholders unless and until a Share is actually issued under Section 5(a)  hereof.    

 

        101287414.1 0059466-00001 3    (c) Taxes.  Participant hereby agrees to make adequate provision for any sums required  to satisfy the applicable federal, state, local or foreign employment, social insurance, payroll,  income or other tax withholding obligations (the “Withholding Obligations”) that arise in  connection with this Agreement.  The Company may establish procedures to ensure satisfaction of  all applicable Withholding Obligations arising in connection with this Agreement, including any  means permitted in Section 8 of the Plan.  Participant hereby authorizes the Company, at its sole  discretion and subject to any limitations under applicable law, to satisfy any such Tax Obligations  by (1) withholding a portion of the Shares otherwise to be issued in payment of the Units having  a value equal to the amount of Withholding Obligations in accordance with such rules as the  Company may from time to time establish; provided, however, that the amount of the Shares so  withheld shall not exceed the amount necessary to satisfy the required Withholding Obligations  using applicable minimum statutory withholding rates; (2) withholding from the wages and other  cash compensation payable to Participant or by causing Participant to tender a cash payment or  other Shares to the Company; or (3) selling on Participant’s behalf (using any brokerage firm  determined acceptable to the Company for such purpose) a portion of the Shares issued in payment  of the Units as the Company determines to be appropriate to generate cash proceeds sufficient to  satisfy the Withholding Obligations; provided, however, that if Participant is a Section 16 officer  of the Company under the Exchange Act, then the Committee shall establish the method of  withholding from the above alternatives and, if the Committee does not exercise its discretion prior  to the withholding event, then Participant shall be entitled to elect the method of withholding from  the alternatives above.  Participant shall be responsible for all brokerage fees and other costs of  sale, and Participant further agrees to indemnify and hold the Company harmless from any losses,  costs, damages or expenses relating to any such sale.  The Company may refuse to deliver Shares  if Participant fails to comply with Participant’s obligations in connection with the Withholding  Obligations described in this paragraph.  (d) Plan Provisions Control.  This Award is subject to the terms and conditions of the  Plan, but the terms of the Plan shall not be considered an enlargement of any benefits under this  Agreement.  In addition, this Award is subject to the rules and regulations promulgated pursuant  to the Plan, now or hereafter in effect.  A copy of the Plan will be furnished upon request of  Participant.  In the event that any provision of the Agreement conflicts with or is inconsistent in  any respect with the terms of the Plan, the terms of the Plan shall control.  This Agreement (and  any addendum hereto) and the Plan together constitute the entire agreement between the parties  hereto with regard to the subject matter hereof.  (e)  No Right to Employment.  The issuance of the Award shall not be construed as  giving Participant the right to be retained in the employ, or as giving a director of the Company or  an Affiliate the right to continue as a director of the Company or an Affiliate, nor will it affect in  any way the right of the Company or an Affiliate to terminate such employment or position at any  time, with or without cause. In addition, the Company or an Affiliate may at any time dismiss  Participant from employment, or terminate the term of a director of the Company or an Affiliate,  free from any liability or any claim under the Plan or the Agreement. Nothing in the Agreement  shall confer on any person any legal or equitable right against the Company or any Affiliate,  directly or indirectly, or give rise to any cause of action at law or in equity against the Company  

 

        101287414.1 0059466-00001 4    or an Affiliate. The Award granted hereunder shall not form any part of the wages or salary of  Participant for purposes of severance pay or termination indemnities, irrespective of the reason for  termination of employment. Under no circumstances shall any person ceasing to be an employee  of the Company or any Affiliate be entitled to any compensation for any loss of any right or benefit  under the Agreement or Plan which such employee might otherwise have enjoyed but for  termination of employment, whether such compensation is claimed by way of damages for  wrongful or unfair dismissal, breach of contract or otherwise. By participating in the Plan,  Participant shall be deemed to have accepted all the conditions of the Plan and the Agreement and  the terms and conditions of any rules and regulations adopted by the Committee (as defined in the  Plan) and shall be fully bound thereby.  (f) Governing Law.  The validity, construction and effect of the Plan and the  Agreement, and any rules and regulations relating to the Plan and the Agreement, shall be  determined in accordance with the internal laws, and not the law of conflicts, of the State of  Nevada.  (g) Severability.  If any provision of the Agreement is or becomes or is deemed to be  invalid, illegal or unenforceable in any jurisdiction or would disqualify the Agreement under any  law deemed applicable by the Committee, such provision shall be construed or deemed amended  to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the  determination of the Committee, materially altering the purpose or intent of the Plan or the  Agreement, such provision shall be stricken as to such jurisdiction or the Agreement, and the  remainder of the Agreement shall remain in full force and effect.  (h) No Trust or Fund Created.  Neither the Plan nor the Agreement shall create or be  construed to create a trust or separate fund of any kind or a fiduciary relationship between the  Company or any Affiliate and Participant or any other person.  (i) Section 409A Provisions.  The payment of Shares under this Agreement are  intended to be exempt from the application of Section 409A of the Internal Revenue Code, as  amended (“Section 409A”) by reason of the short-term deferral exemption set forth in Treasury  Regulation §1.409A-1(b)(4).  Notwithstanding anything in the Plan or this Agreement to the  contrary, to the extent that any amount or benefit hereunder that constitutes “deferred  compensation” to Participant under Section 409A and applicable guidance thereunder is otherwise  payable or distributable to Participant under the Plan or this Agreement solely due to Participant’s  disability or “separation from service” (as such term is defined under Section 409A), such amount  or benefit will not be payable or distributable to Participant by reason of such circumstance unless  the Committee determines in good faith that (i) the circumstances giving rise to such disability or  separation from service meet the definition of disability, or separation from service, as the case  may be, in Section 409A(a)(2)(A) of the Code and applicable final regulations, or (ii) the payment  or distribution of such amount or benefit would be exempt from the application of Section 409A  by reason of the short-term deferral exemption or otherwise (including, but not limited to, a  payment made pursuant to an involuntary separation arrangement that is exempt from Section  409A under the “short-term deferral” exception).  Any payment or distribution that otherwise  

 

        101287414.1 0059466-00001 5    would be made to a Participant who is a specified employee (as determined by the Committee in  good faith) on account of separation from service may not be made before the date which is six  months after the date of the specified employee’s separation from service (or if earlier, upon the  specified employee’s death) unless the payment or distribution is exempt from the application of  Section 409A by reason of the short term deferral exemption or otherwise.  (j) Headings.  Headings are given to the Sections and subsections of the Agreement  solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way  material or relevant to the construction or interpretation of the Agreement or any provision thereof.  (k) Securities Matters. The Company shall not be required, and shall not have any  liability for failure, to deliver Shares until the requirements of any federal or state securities or  other laws, rules or regulations (including the rules of any securities exchange) as may be  determined by the Company to be applicable are satisfied.  (l) Consultation with Professional Tax and Investment Advisors. Participant  acknowledges that the grant, exercise, vesting or any payment with respect to this Award, and the  sale or other taxable disposition of the Shares acquired pursuant to the exercise thereof, may have  tax consequences pursuant to the Internal Revenue Code of 1986, as amended, or under local, state  or international tax laws. Participant further acknowledges that Participant is relying solely and  exclusively on Participant’s own professional tax and investment advisors with respect to any and  all such matters (and is not relying, in any manner, on the Company or any of its employees or  representatives). Finally, Participant understands and agrees that any and all tax consequences  resulting from the Award and its grant, exercise, vesting or any payment with respect thereto, and  the sale or other taxable disposition of the Shares acquired pursuant to the Plan, is solely and  exclusively the responsibility of Participant without any expectation or understanding that the  Company or any of its employees or representatives will pay or reimburse Participant for such  taxes or other items.    [Signature page follows]  

 

[Signature Page to Restricted Stock Unit Award Agreement]  101287414.1 0059466-00001 6  IN WITNESS WHEREOF, the Company and Participant have executed this Agreement  as of the Effective Date.  PROFIRE ENERGY, INC.  By:   Name: __________________________________  Title: ___________________________________  PARTICIPANT:  Ryan Oviatt  Brenton W. Hatch CEO

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