Document:

nmus_ex101.htm

EXHIBIT 10.1
 
NEMUS BIOSCIENCE, INC.
 
October 26, 2016
 
Nemus Bioscience, Inc.
650 Town Center Drive, Suite 1770
Costa Mesa, California 92626
Telephone:    (949) 396-0330
Facsimile:      (949) 266-0346
 
Re: Nemus Bioscience, Inc. - Lock-Up Agreement
 
Dear Sirs:
 
This Lock-Up Agreement is being delivered to you in connection with the Securities Purchase Agreement (the "Purchase Agreement"), dated as of October 26, 2016 by and among Nemus Bioscience, Inc. (the "Company") and the investors party thereto (the "Buyers"), with respect to the issuance of shares of Series C Convertible Preferred Stock of the Company, par value $0.001 per share. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.
 
In order to induce the Buyers to enter into the Purchase Agreement, the undersigned agrees that, commencing on the date hereof and ending on the date that is ninety (90) days after the earlier of (x) the date that one or more Registration Statement(s) (as defined in the Registration Rights Agreement) covering the resale of all Registrable Securities (as defined in the Registration Rights Agreement) has been effective and available for the re-sale of all such Registrable Securities and (y) the date all the Conversion Shares are eligible for sale without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933 Act (the "Lock-Up Period"), the undersigned will not, and will cause all affiliates (as defined in Rule 144 promulgated under the 1933 Act) of the undersigned or any person in privity with the undersigned or any affiliate of the undersigned not to, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any shares of Common Stock or Common Stock Equivalents, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities and Exchange Act of 1934, as amended and the rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect to any shares of Common Stock or Common Stock Equivalents owned directly by the undersigned (including holding as a custodian) or with respect to which the undersigned has beneficial ownership within the rules and regulations of the Securities and Exchange Commission (collectively, the "Undersigned's Shares"), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Undersigned's Shares, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of Common Stock or other securities, in cash or otherwise, (iii) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of Common Stock or Common Stock Equivalents or (iv) publicly disclose the intention to do any of the foregoing.
 
	 
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The foregoing restriction is expressly agreed to preclude the undersigned, and any affiliate of the undersigned and any person in privity with the undersigned or any affiliate of the undersigned, from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Undersigned's Shares even if the Undersigned's Shares would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include, without limitation, any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any of the Undersigned's Shares or with respect to any security that includes, relates to, or derives any significant part of its value from the Undersigned's Shares.
 
Notwithstanding the foregoing, the undersigned may transfer the Undersigned's Shares (i) as a bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein or (ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value. For purposes of this Lock-Up Agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. The undersigned now has, and, except as contemplated by the immediately preceding sentence, for the duration of this Lock-Up Agreement will have, good and marketable title to the Undersigned's Shares, free and clear of all liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent (the "Transfer Agent") and registrar against the transfer of the Undersigned's Shares except in compliance with the foregoing restrictions.
 
In order to enforce this covenant, the Company shall impose irrevocable stop-transfer instructions preventing the Transfer Agent from effecting any actions in violation of this Lock-Up Agreement.
 
The undersigned acknowledges that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to each Buyer to complete the transactions contemplated by the Purchase Agreement and that the Company shall be entitled to specific performance of the undersigned's obligations hereunder. The undersigned hereby represents that the undersigned has the power and authority to execute, deliver and perform this Lock-Up Agreement, that the undersigned has received adequate consideration therefor and that the undersigned will indirectly benefit from the closing of the transactions contemplated by the Purchase Agreement. 
 
The undersigned understands and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors, and assigns.
 
This Lock-Up Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered one and the same instrument.
 
This Lock-Up Agreement will be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflicting provision or rule (whether of the State of New York, or any other jurisdiction) that would cause the laws of any jurisdiction other than the State of New York to be applied. In furtherance of the foregoing, the internal laws of the State of New York will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.
 
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	 		Very truly yours,	
	 	 	 	 
				
	 
	 
	Name of Shareholder	 
	 	 		 

 
	Agreed to and Acknowledged: 
 
NEMUS BIOSCIENCE, INC.
	
			 

	By:
		
	Name:
		 

	Title:
		

 
 
 
	3Exhibit

Exhibit 10.A

FIRST AMENDMENT TO THE
SUPPLEMENTAL RETIREMENT PLAN
FOR EXECUTIVES OF 
CARPENTER TECHNOLOGY CORPORATION

THIS FIRST AMENDMENT is made as of the 13th day of September 2016, by Carpenter Technology Corporation, a corporation duly organized under the laws of the state of Delaware (the “Company”).

INTRODUCTION

The Company maintains the Supplemental Retirement Plan for Executives of Carpenter Technology Corporation (the “Plan”), which was last amended June 29, 2010.

The Company reserved the right to amend the Plan pursuant to Section 8(D) thereof.  

Effective December 31, 2016, the Company amended the General Retirement Plan for Employees of Carpenter Technology Corporation to freeze the accrued benefits of Participants and to eliminate certain ancillary benefits.  In conjunction with such amendment, the Company now desires to amend the Plan to freeze the accrued benefits of Participants effective as of December 31, 2016.

NOW THEREFORE, the Plan is amended, effective as of December 31, 2016, as follows:

		
	1.
	By adding the following sentence to the end of Section 2(A):

“Notwithstanding anything in the Plan to the contrary, the portion of each Participant’s Annual Base Formula Retirement Benefit as set forth in Section 6(A) and 6(B) hereof is frozen as of December 31, 2016 and will not increase as a result of Average Annual Earnings or Continuous Service after such date.  In no event shall the Annual Base Formula Retirement Benefit of a Participant exceed the Annual Base Formula Retirement Benefit to which such Participant is entitled as of December 31, 2016.”

		
	2.
	By adding the following paragraph to the end of Section 2(C):

“Notwithstanding anything in the Plan to the contrary, a Participant’s Average Annual Earnings shall be determined as of December 31, 2016 and shall not thereafter change.”

		
	3.
	By revising Section 2(O) to read as follows:

“(O)    ‘Surviving Spouse’ shall have the same meaning as the term ‘Spouse’ under the General Retirement Plan.”

		
	4.
	By adding the following paragraph to the end of Section 3:

Exhibit 10.A

“Notwithstanding the foregoing, there shall be no new Participants in the Plan after December 31, 2016.”

		
	5.
	By revising Section 5(B)(3) to read as follows:

		
	“(3)
	To the estate of the Participant or the estate of a payee provided in Section s 5(B)(1) or 5(B)(2) above, as the Plan committee determines, in its sole discretion, in a lump sum.  Any lump sum payment hereunder shall be calculated as the present value of the remaining payments, determined in accordance with the ‘applicable interest rate’ and the ‘applicable mortality table’ used in the definition of ‘Actuarial Equivalent’ in the General Retirement Plan.”

		
	6.
	By revising Section 6(B)(2) to read as follows:

		
	“(2)
	for each additional year in excess of the service credited in (1) above that the Participant accrues a benefit under the General Retirement Plan, 1.3 percent for each additional year of service during the first 20 years of Benefit Service (as defined in the General Retirement Plan) and 1.4 percent for each other additional year of service, or fraction thereof.”

		
	7.
	By adding the following paragraph to the end of Section 6:

“Notwithstanding anything in the Plan to the contrary, the portion of each Participant’s Annual Base Formula Retirement Benefit as set forth in Section 6(A) and 6(B) hereof is frozen as of December 31, 2016 and will not increase as a result of Average Annual Earnings, service, or Continuous Service after such date.  In no event shall the Annual Base Formula Retirement Benefit of a Participant exceed the Annual Base Formula Retirement Benefit to which such Participant is entitled as of December 31, 2016.”

		
	8.
	By revising Section 7(B)(2) to read as follows:

		
	“(2)
	‘Early Retirement Benefit’ shall mean the Annual Base Formula Retirement Benefit, as set forth in Section 6(A) and 6(B), reduced to its equivalent actuarial value from age 62 to the date of initial payment to the Participant based on the early retirement factors in Appendix N of the General Retirement Plan, and subsequently adjusted for any further reduction required under Section 6(C).”

9.By deleting the first sentence of the existing Section 8(A) and replacing it as follows:

“The exclusive power to interpret this Plan and the responsibility for carrying out its provisions are vested in the Human Resources Committee, including any successor committee, of the Board, in the same manner as the Plan Administrator under the General Retirement Plan.”

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Exhibit 10.A

Except as specifically amended hereby, the Plan shall remain in full force and effect prior to this First Amendment.

IN WITNESS WHEREOF, the Company has caused this First Amendment to be executed on the day and year first above written.

CARPENTER TECHNOLOGY CORPORATION
By:                             
Print Name:                         
Title:                             

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