Document:

EX-10.26

 Exhibit 10.26 

2015 STOCK INCENTIVE PLAN 

VAPOTHERM, INC. 
 FRENCH
QUALIFYING SUBPLAN 
 A company incorporated under the laws of Delaware—United States of America 

Registered office: 100 Domain Drive, Exeter, NH 03833 

JULY 18, 2018 

 PRESENTATION 

 

	I.	 INTRODUCTION 

  

	II.	 APPLICABLE LAWS 

 

	III.	 DESCRIPTION OF PLAN 

 

	IV.	 ADMINISTRATION OF PLAN 

 

	V.	 EXERCISE OF OPTIONS 

 

	VI.	 MISCELLANEOUS 

APPENDIX 

  
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 I. INTRODUCTION 

On July 22, 2015, Vapotherm, Inc. (hereafter referred to as “the Company”) adopted a Stock Incentive Plan (the “Plan”)
as a way to provide incentives and Awards to select key management Employees, Directors, and advisors of the Company and its Affiliates. 
 This Plan was
amended in October 2015, May 2017, September 2017 and April 2018 in order to increase the maximum number of Shares that the Company may issue for all Awards granted under the Plan. It may be amended again in the future. 

The Plan permits the granting of the following types of Awards: 
  

	 	–	 Options, 

	 	–	 Share Appreciation Rights, 

	 	–	 Restricted Shares, Restricted Share Units, and Unrestricted Shares, 

	 	–	 Deferred Share Units, and 

	 	–	 Performance Awards. 

The Plan and its amendments are attached as an Appendix I to this Sub Plan. Section 6 of the Plan provides that a granted Award can take the form of an
Option, i.e., the right to acquire Shares of the Company. Section 21(b) of the Plan provides that the Company may adopt subplans as may be appropriate or applicable to particular locations and countries. 

Based on these considerations, the Company’s Board of Directors adopted the present appendix as a subplan of the Plan, which shall only and exclusively
apply to qualifying Employees and officers who are residents of France. 
 The provisions of this Sub Plan prevail over those of the Plan which will only
apply to the extent they do not contravene the French laws to be complied with for favorable domestic social and tax treatment. 
 Under the Sub Plan,
qualifying Employees and officers (i.e. those mentioned as Beneficiaries in section III of the Sub Plan) will be granted Options giving them the possibility to acquire shares of the Company under the conditions provided by the Sub Plan. 

Definitions: the following terms shall have the meanings ascribed to them in the Plan and notably its Appendix A: (i) Affiliates, (ii) Awards,
(iii) Board, (iv) Committee, (v) Company, (vi) Deferred Share Units, (vii) Directors, (viii) Employee, (ix) Option, (x) Participant, (xi) Performance Awards, (xii) Plan, (xiii) Restricted Shares, (xiv) Restricted
Share Units, (xv) Share, and (xvi) Share Appreciation Right. 

  
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 II. APPLICABLE LAWS 

The Sub Plan has been prepared and shall be interpreted according to the following French laws and regulations: 

 

	 	•	 	 Law n°70-1322 dated 31 December 1970 amended by Law n°84-578 dated 9 July 1984; 

  

	 	•	 	 Law n°87-416 dated 17 June 1987; 

 

	 	•	 	 Finance Bill for 1990 n°89-935 dated 29 December 1989,

  

	 	•	 	 Amended Finance Bill 1993 n° 94-1353 dated 22 June 1993,

  

	 	•	 	 Law n°95-116 dated 4 February 1995; 

 

	 	•	 	 Law n°95-1346 dated 30 December 1995; 

 

	 	•	 	 Regulation n°96-50 dated 24 January 1996; 

 

	 	•	 	 Law n°96-1160 dated 27 December 1996; 

 

	 	•	 	 Law n°98-546 dated 2 July 1998; 

 

	 	•	 	 Law n° 2001-420 dated 15 May 2001; 

 

	 	•	 	 Law n°2006-1770 dated 30 December 2006; 

 

	 	•	 	 Article 74 of Law n°2007-1822 dated 24 December 2007, 

 

	 	•	 	 Law n° 2007-1786 dated 19 December 2007. 

 

	 	•	 	 Law n° 2008-1258 dated 3 December 2008, 

 

	 	•	 	 Law n°2012-1509 dated 29 December 2012. 

As well as any other French laws or regulations that may become applicable. 

Following the requirements resulting from the above-mentioned applicable laws, the Company’s Board of Directors adopted this Sub Plan authorizing the
granting of a certain number of Options to Beneficiaries (as such term is defined in section III.1 below) giving them the right to acquire Shares of the Company (and/or to subscribe Shares to be issued by the Company). This authorization has been
given until December 31, 2024. 

  
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 III. DESCRIPTION OF PLAN 

III.1 Beneficiaries 
 Options under the Sub Plan shall be
granted only to Employees or officers who are Employees selected, at its discretion, by the Company’s Committee who, at the time of such grant, have the legal status of Employee and do not individually hold more than 10% of the Company’s
share capital (“Beneficiaries”). 
 III.2 Conditions for Grant 

The Options under the Sub Plan will be granted to Beneficiaries by the Company’s Committee following authorization given by the Company’s Board of
Directors. 
 These Options give Employees and officers the right to subscribe to or buy Shares in the Company under the conditions set forth below. 

III.3 Stock subject to the Plan 
 The maximum aggregate
number of Company’s Shares which may be issued for all Options granted under the Sub Plan is 2,000,000 Shares. 
 In any case, the total number of
Options granted to Beneficiaries under this Sub Plan and any future stock option plan cannot give right to subscribe to Company’s Shares in excess of 1/3rd of the Company’s share capital. 

III.4 Option Exercise Price 
 The exercise price per share
for the Company’s Shares to be issued or purchased pursuant to exercise of an Option shall be such price as is determined by the Board of Directors. 

The option exercise price shall be the fair market value per share at the date of the option grant, as determined by the Board of Directors based on a
valuation methodology that is reasonably acceptable in the industry. 
 III.5 Exercise of Options and Term of Options 

Options shall vest and become exercisable by a Beneficiary following the provisions of section 6 (e) of the Plan, subject to the following restrictions: 

a) Any decision of the Board of Directors or the Committee concerning a tolling in the vesting of the Options shall be applicable only if such decision is in
favor of the Beneficiaries. 
 b) If the event of the death of a Beneficiary during the term of his/her Options, then, according to provisions of Article L 225-183 of French Commercial Code, the Options may be exercised by his/her estate at any time within a one-year period following the date of the death but only to the extent
the right to exercise the Options had vested at the date of the death. 

  
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 c) A Beneficiary may exercise his Options only if he still has the status of an Employee at the time of such
exercise, which implies the following: 
  

	 	–	 In case of voluntary termination of employment by the Employee, said Employee may not exercise his Options if
the exercise date takes place during any notice period (whether worked or not). This Employee will lose his exercise rights as soon as his letter notifying of his decision to leave his employment has been delivered to his employer;

  

	 	–	 In case of retirement, the Employee will lose his rights to exercise his Options on the day his professional
activity stops. 

  

	 	–	 In case of termination of employment by the employer, the Employee’s rights to exercise his Options will
be suspended as soon as the first letter starting the redundancy procedure is sent to him. If the redundancy is not confirmed, the Employee will recover his rights to exercise his Options. If, conversely, the redundancy is confirmed, the Employee
may exercise his Options but only until the last day of work during the notice period (whether worked or not); he will lose any such rights after that date. 

III.6 Adjustments upon Changes in Capital 
 The number of
Shares available to be acquired through a particular Option grant issued under the Sub Plan as well as the exercise price of such Shares shall be definitely set upon the date of such Option grant. 

However, applicable laws, notably section L 225-181 of the French Commercial Code, provide for adjustment provisions
in cases where of operations on share capital affect the number of Shares, such as capital increases by incorporation of reserves, capital decrease and issuance of preference shares. Similar provisions are provided in section 13 of the Plan. 

In these situations, the Company shall make the necessary adjustments in order for the Beneficiaries’ rights to be protected, as provided by section L. 225-181 and L. 228-99 of the Commercial Code. These adjustments may be provided through price adjustment or adjustment in the number of Options. They may not take the form of
substitutions (alternative consideration or securities) as mentioned in the Plan. 
 In order to make such adjustments, the Board of Directors of the
Company may temporarily suspend all exercise rights under the Plan for a maximum of a 1-month period. The Beneficiaries will then be informed in writing. 

III.7 Possible Adjustments in case of Merger, Spin off, Dissolution and other Similar Operations 

The provisions of section 13 (c) of the Plan shall become applicable only in case of merger, spin off or dissolution of the Company. 

III.8 Non-Transferability of Options 

The options under the Sub Plan giving right to acquire Shares of the Company may not be sold, transferred or disposed of in any manner except in the case of
death of a Beneficiary as provided in section III.5 above. 

  
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 III.9 Notice of Grant 

Each Beneficiary will receive an individual notice of grant from the Company’s Board of Directors and/or Committee designating: 

 

	 	–	 The number of Shares to be subscribed or purchased by him through Exercise of his Options;

  

	 	–	 The exercise price per share for the Company’s Shares to be issued or purchased pursuant to the exercise
of an Option; and 

  

	 	–	 The period of time during which the Options may be exercised. 

A copy of the Sub Plan prepared by the Committee following the authorization given by the Company’s Board of Directors shall be delivered to each
Beneficiary. 
 IV. ADMINISTRATION OF PLAN 

The Plan will be administered by the Committee. 
 The Committee
will provide Beneficiaries with any documents required in order to exercise their Options and transfer the acquired Shares, whenever necessary. 
 V.
EXERCISE OF OPTIONS 
 V.1 Conditions for Exercise 

A Beneficiary may exercise his Options only if he is an Employee at the date of such exercise. As a consequence, no exercise may take place in case the
employment is interrupted or terminated. 
 Options may be exercised one or several times. 

Each Option shall give the right to subscribe to or to purchase one Share of the Company. 

V.2 Procedure for Exercise 
 An Option shall be deemed to
be exercised when the following documents have been sent to the Company: 
  

	 	–	 A written notice of exercise sent by registered letter with acknowledgment of receipt, indicating the number of
Options exercised; and 

  

	 	–	 Full payment of the exercise price, either by check to the Company’s order or by bank transfer to the
Company’s benefit. These methods of payment are the only ones acceptable under the Sub Plan. 

  
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 In case new Shares are issued as a result of the exercise, the Company will deliver a subscription
certificate to the Beneficiary. 
 The date indicated on the notice of exercise shall be the date of exercise of the Option. 

VI. MISCELLANEOUS 
 The Sub Plan shall have
duration of ten (10) years. 
 Any amendment to the Plan shall be in writing and handed to the Beneficiaries or sent to the address they notified to
the Company or, in the absence of such address, to their last domicile known by the Company. 

  
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 APPENDIX I 

PLAN AND AMENDMENTS 

  
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 VAPOTHERM, INC. 

2015 STOCK INCENTIVE PLAN 
 1.
Establishment, Purpose, and Types of Awards 
 Vapotherm, Inc. (the “Company”) hereby establishes this equity-based
incentive compensation plan to be known as the “Vapotherm, Inc. 2015 Stock Incentive Plan” (hereinafter referred to as the “Plan”), in order to provide incentives and awards to select key management employees, directors, and
advisors of the Company and its Affiliates. 
 The Plan permits the granting of the following types of awards (“Awards”),
according to the Sections of the Plan listed here: 
  

					
		 	Section 6	  	Options
		 	Section 7	  	Share Appreciation Rights
		 	Section 8	  	Restricted Shares, Restricted Share Units, and Unrestricted Share Awards
		 	Section 9	  	Deferred Share Units
		 	Section 10	  	Performance Awards

 The Plan is not intended to affect and shall not affect any stock options, equity-based compensation, or other
benefits that the Company or its Affiliates may have provided, or may separately provide in the future pursuant to any agreement, plan, or program that is independent of this Plan. 

2. Defined Terms 
 Terms in the
Plan that begin with an initial capital letter have the defined meaning set forth in Appendix A, unless defined elsewhere in this Plan or the context of their use clearly indicates a different meaning. 

3. Shares Subject to the Plan 

Subject to the provisions of Section 13 of the Plan, the maximum number of Shares that the Company may issue for all Awards is 3,424,469
Shares (all of which may be delivered upon the exercise of ISOs), plus any Shares that remain available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan, or that become available for grant under the
Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan as a result of forfeiture of awards thereunder. For all Awards, the Shares issued pursuant to the Plan may be authorized but unissued Shares, or Shares that the Company
has reacquired or otherwise holds in treasury. 
 Shares that are subject to an Award that for any reason expires, is forfeited, is
cancelled, or becomes unexercisable, and Shares that are for any other reason not paid or delivered under the Plan shall again, except to the extent prohibited by Applicable Law, be available for subsequent Awards under the Plan. In addition, the
Committee may make future Awards with respect to Shares that the Company retains from otherwise delivering pursuant to an Award either (i) as payment of the exercise price of an Award, or (ii) in order to satisfy the withholding or
employment taxes due upon the grant, exercise, vesting, or distribution of an Award. 

 4. Administration 

(a) General. The Committee shall administer the Plan in accordance with its terms, provided that the Board may act in lieu of the
Committee on any matter. The Committee shall hold meetings at such times and places as it may determine and shall make such rules and regulations for the conduct of its business as it deems advisable. In the absence of a duly appointed Committee or
if the Board otherwise chooses to act in lieu of the Committee, the Board shall function as the Committee for all purposes of the Plan. 

(b) Committee Composition. The Board shall appoint the members of the Committee. If and to the extent permitted by Applicable
Law, the Committee may authorize one or more officers to make Awards to Eligible Persons who are not officers. The Board may at any time appoint additional members to the Committee, remove and replace members of the Committee with or without Cause,
and fill vacancies on the Committee however caused. 
 (c) Powers of the Committee. Subject to the provisions of the Plan, the
Committee shall have the authority, in its sole discretion: 
 (i) to determine Eligible Persons to whom Awards shall be
granted from time to time and the number of Shares, units, or SARs to be covered by each Award; 
 (ii) to determine, from
time to time, the Fair Market Value of Shares; 
 (iii) to determine, and to set forth in Award Agreements, the terms and
conditions of all Awards, including any applicable exercise or purchase price, the installments and conditions under which an Award shall become vested (which may be based on performance), terminated, expired, cancelled, or replaced, and the
circumstances for vesting acceleration or waiver of forfeiture restrictions, and other restrictions and limitations; 
 (iv)
to approve the forms of Award Agreements and all other documents, notices and certificates in connection therewith which need not be identical either as to type of Award or among Participants; 

(v) to construe and interpret the terms of the Plan and any Award Agreement, to determine the meaning of their terms, and to
prescribe, amend, and rescind rules and procedures relating to the Plan and its administration; and 
 (vi) in order to
fulfill the purposes of the Plan and without amending the Plan, modify, cancel, or waive the Company’s rights with respect to any Awards, to adjust or to modify Award Agreements for changes in Applicable Law or compliance with or exemption from
Section 409A of the Code, and to recognize differences in foreign law, tax policies, or customs; and 
 (vii) to make
all other interpretations and to take all other actions that the Committee may consider necessary or advisable to administer the Plan or to effectuate its purposes. 

  
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 Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may
delegate administrative functions to individuals who are officers or Employees of the Company or its Affiliates. 
 (d) Deference to
Committee Determinations. The Committee shall have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to be appropriate in its sole discretion, and to make any findings of fact
needed in the administration of the Plan or Award Agreements. The Committee’s prior exercise of its discretionary authority shall not obligate it to exercise its authority in a like fashion thereafter. The Committee’s interpretation and
construction of any provision of the Plan, or of any Award or Award Agreement, shall be final, binding, and conclusive. The validity of any such interpretation, construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly made in bad faith or materially affected by fraud. 

(e) No Liability; Indemnification. Neither the Board nor any Committee member, nor any Person acting at the direction of the Board or
the Committee, shall be liable for any act, omission, interpretation, construction or determination made in good faith with respect to the Plan, any Award or any Award Agreement. The Company and its Affiliates shall pay or reimburse any member of
the Committee, as well as any Director, Employee, or Consultant who takes action in connection with the Plan, for all expenses incurred with respect to the Plan, and to the full extent allowable under Applicable Law shall indemnify each and every
one of them for any claims, liabilities, and costs (including reasonable attorney’s fees) arising out of their good faith performance of duties under the Plan. The Company and its Affiliates may obtain liability insurance for this purpose. 

5. Eligibility 
 (a) General
Rule. The Committee may grant ISOs only to Employees (including officers who are Employees) of the Company or an Affiliate that is a “parent corporation” or “subsidiary corporation” within the meaning of Section 424 of
the Code, and may grant all other Awards to any Eligible Person. A Participant who has been granted an Award may be granted an additional Award or Awards if the Committee shall so determine, if such person is otherwise an Eligible Person and if
otherwise in accordance with the terms of the Plan. 
 (b) Grant of Awards. Subject to the express provisions of the Plan, the
Committee shall determine from the class of Eligible Persons those individuals to whom Awards under the Plan may be granted, the number of Shares subject to each Award, the price (if any) to be paid for the Shares or the Award and, in the case of
Performance Awards, in addition to the matters addressed in Section 10 below, the specific objectives, goals and performance criteria that further define the Performance Award. Each Award shall be evidenced by an Award Agreement signed by the
Company and, if required by the Committee, by the Participant. The Award Agreement shall set forth the material terms and conditions of the Award established by the Committee. 

(c) Replacement Awards. Subject to Applicable Laws (including any associated Shareholder approval requirements), the Committee may, in
its sole discretion and upon such terms as it deems appropriate, require as a condition of the grant of an Award to a Participant that the Participant surrender for cancellation some or all of the Awards that have previously been granted to the
Participant under this Plan or otherwise. An Award that is conditioned upon such surrender may or may not be the same type of Award, may cover the same (or a lesser or greater) number of Shares as 

  
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such surrendered Award, may have other terms that are determined without regard to the terms or conditions of such surrendered Award, and may contain any other terms that the Committee deems
appropriate. In the case of Options, these other terms may not involve an Exercise Price that is lower than the Exercise Price of the surrendered Option unless the Company’s shareholders approve the grant itself or the program under which the
grant is made pursuant to the Plan. 
 6. Option Awards 

(a) Types; Documentation. The Committee may in its discretion grant ISOs to any Employee and
Non-ISOs to any Eligible Person, and shall evidence any such grants in an Award Agreement that is delivered to the Participant. Each Option shall be designated in the Award Agreement as an ISO or a Non-ISO, and the same Award Agreement may grant both types of Options. At the sole discretion of the Committee, any Option may be exercisable, in whole or in part, immediately upon the grant thereof, or only after
the occurrence of a specified event, or only in installments, which installments may vary. Options granted under the Plan may contain such terms and provisions not inconsistent with the Plan that the Committee shall deem advisable in its sole and
absolute discretion. 
 (b) ISO $100,000 Limitation. To the extent that the aggregate Fair Market Value of Shares with respect to
which Options designated as ISOs first become exercisable by a Participant in any calendar year (under this Plan and any other plan of the Company or any Affiliate) exceeds $100,000, such excess Options shall be treated as Non-ISOs. For purposes of determining whether the $100,000 limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be determined as of the date of grant. In reducing the number of Options
treated as ISOs to meet the $100,000 limit, the most recently granted Options shall be reduced first. In the event that Section 422 of the Code is amended to alter the limitation set forth therein, the limitation of this Section 6(b) shall
be automatically adjusted accordingly. 
 (c) Term of Options. Each Award Agreement shall specify a term at the end of which the
Option automatically expires, subject to earlier termination provisions contained in Section 6(h) hereof; provided, that, the term of any Option may not exceed ten years from the date of grant. In the case of an ISO granted to an Employee who
is a Ten Percent Holder on the date of grant, the term of the ISO shall not exceed five years from the date of grant. 
 (d) Exercise
Price. The exercise price of an Option shall be determined by the Committee in its discretion and shall be set forth in the Award Agreement, subject to the following special rules: 

(i) ISOs. If an ISO is granted to an Employee who on the date of grant is a Ten Percent Holder, the per Share exercise
price shall not be less than 110% of the Fair Market Value per Share on such date of grant. If an ISO is granted to any other Employee, the per Share exercise price shall not be less than 100% of the Fair Market Value per Share on the date of grant.

 (ii) Non-ISOs. The per Share exercise price for the Shares to be issued
pursuant to the exercise of a Non-ISO shall not be less than 50% of the Fair Market Value per Share on the date of grant; provided that the Committee may amend the Plan to increase this percentage at any time.

  
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 (e) Exercise of Option. The Committee shall in its sole discretion determine the
times, circumstances, and conditions under which an Option shall be exercisable, and shall set them forth in the Award Agreement. The Committee shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled
during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be tolled during any such leave approved by the Company. 

(f) Minimum Exercise Requirements. An Option may not be exercised for a fraction of a Share. The Committee may require in an Award
Agreement that an Option be exercised as to a minimum number of Shares, provided that such requirement shall not prevent a Participant from purchasing the full number of Shares as to which the Option is then exercisable. 

(g) Methods of Exercise. Prior to its expiration pursuant to the terms of the applicable Award Agreement, and subject to the
times, circumstances and conditions for exercise contained with the applicable Award Agreement, each Option may be exercised, in whole or in part (provided that the Company shall not be required to issue fractional shares), by delivery of written
notice of exercise to the secretary of the Company accompanied by the full exercise price of the Shares being purchased. In the case of an ISO, the Committee shall determine the acceptable methods of payment on the date of grant and it shall be
included in the applicable Award Agreement. The methods of payment that the Committee may in its discretion accept or commit to accept in an Award Agreement include: 

(i) cash or check payable to the Company (in U.S. dollars); 

(ii) other Shares that (A) are owned by the Participant who is purchasing Shares pursuant to an Option, (B) have a
Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is being exercised, (C) were not acquired by such Participant pursuant to the exercise of an Option, unless such Shares have
been owned by such Participant for at least six months or such other period as the Committee may determine, (D) are all, at the time of such surrender, free and clear of any and all claims, pledges, liens and encumbrances, or any restrictions
which would in any manner restrict the transfer of such shares to or by the Company (other than such restrictions as may have existed prior to an issuance of such Shares by the Company to such Participant), and (E) are duly endorsed for
transfer to the Company; 
 (iii) at the election of the Participant, by the Company holding back Shares otherwise
deliverable upon exercise having a Fair Market Value equal to the aggregate exercise price of the Shares as to which the Option is being exercised; 

(iv) a cashless exercise program that the Committee may approve, from time to time in its discretion, pursuant to which a
Participant may concurrently provide irrevocable instructions (A) to such Participant’s broker or dealer to effect the immediate sale of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement
date, sufficient funds to cover the exercise price of the Option plus all applicable taxes required to be withheld by the Company by reason of such exercise, and (B) to the Company to deliver the certificates for the purchased Shares directly
to such broker or dealer in order to complete the sale; or 
 (v) any combination of the foregoing methods of payment. 

  
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 The Company shall not be required to deliver Shares pursuant to the exercise of an Option
until payment of the full exercise price therefore is received by the Company. 
 (h) Termination of Continuous Service. The
Committee may establish and set forth in the applicable Award Agreement the terms and conditions on which an Option shall remain exercisable, if at all, following termination of a Participant’s Continuous Service. The Committee may waive or
modify these provisions at any time. To the extent that a Participant is not entitled to exercise an Option at the date of his or her termination of Continuous Service, or if the Participant (or other person entitled to exercise the Option) does not
exercise the Option to the extent so entitled within the time specified in the Award Agreement or below (as applicable), the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan and become
available for future Awards. In no event may any Option be exercised after the expiration of the Option term as set forth in the Award Agreement. 

The following provisions shall apply to the extent an Award Agreement does not specify the terms and conditions upon which an Option shall
terminate when there is a termination of a Participant’s Continuous Service: 
 (i) Termination other than Upon
Disability or Death or for Cause. In the event of termination of a Participant’s Continuous Service (other than as a result of Participant’s death, disability, Retirement or termination for Cause), the Participant shall have the right
to exercise an Option at any time within 90 days following such termination to the extent the Participant was entitled to exercise such Option at the date of such termination. 

(ii) Disability. In the event of termination of a Participant’s Continuous Service as a result of his or her being
Disabled, the Participant shall have the right to exercise an Option at any time within one year following such termination to the extent the Participant was entitled to exercise such Option at the date of such termination. 

(iii) Retirement. In the event of termination of a Participant’s Continuous Service as a result of
Participant’s Retirement, the Participant shall have the right to exercise the Option at any time within six months following such termination to the extent the Participant was entitled to exercise such Option at the date of such termination.

 (iv) Death. In the event of the death of a Participant during the period of Continuous Service since the date of
grant of an Option, or within thirty days following termination of the Participant’s Continuous Service, the Option may be exercised, at any time within one year following the date of the Participant’s death, by the Participant’s
estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the right to exercise the Option had vested at the date of death or, if earlier, the date the Participant’s Continuous Service
terminated. 
 (v) Cause. If the Committee determines that a Participant’s Continuous Service terminated due to
Cause, the Participant shall immediately forfeit the right to exercise any Option, and it shall be considered immediately null and void. 

  
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 (i) Reverse Vesting. The Committee in its sole and absolute discretion may allow a
Participant to exercise unvested Options, in which case the Shares then issued shall be Restricted Shares having analogous vesting restrictions to the unvested Options. 

(j) Adjustment for Section 409A of the Code. In the event an Option is granted with an Exercise Price that is below
Fair Market Value on the date of grant, subject to Section 11(e) below, the Option shall be subject to any terms and conditions that the Administrator may in its discretion determine to be necessary to avoid the income tax penalties set forth
under Section 409A of the Code. 
  

	7.	 Share Appreciate Rights (SARs) 

(a) Grants. The Committee may in its discretion grant Share Appreciation Rights to any Eligible Person, in any of the following forms:

 (i) SARs Related to Options. The Committee may grant SARs either concurrently with the grant of an Option or with
respect to an outstanding Option, in which case the SAR shall extend to all or a portion of the Shares covered by the related Option. An SAR shall entitle the Participant who holds the related Option, upon exercise of the SAR and surrender of the
related Option, or portion thereof, to the extent the SAR and related Option each were previously unexercised, to receive payment of an amount determined pursuant to Section 7(e) below. Any SAR granted in connection with an ISO will contain
such terms as may be required to comply with the provisions of Section 422 of the Code and the regulations promulgated thereunder. 

(ii) SARs Independent of Options. The Committee may grant SARs which are independent of any Option subject to such
conditions as the Committee may in its discretion determine, which conditions will be set forth in the applicable Award Agreement. 

(iii) Limited SARs. The Committee may grant SARs exercisable only upon or in respect of a Change in Control or any other
specified event, and such limited SARs may relate to or operate in tandem or combination with or substitution for Options or other SARs, or on a stand-alone basis, subject to such conditions as the Committee may in its discretion determine, which
conditions will be set forth in the applicable Award Agreement. 
 (b) Exercise Price. The per Share exercise price of an SAR shall
be determined in the sole discretion of the Committee, shall be set forth in the applicable Award Agreement, and shall be no less than the Fair Market Value of one Share. The exercise price of an SAR related to an Option shall be the same as the
exercise price of the related Option. The exercise price of an SAR shall be subject to the special rules on pricing contained in Sections 6(d) hereof. 

(c) Exercise of SARs. Unless the Award Agreement otherwise provides, an SAR related to an Option will be exercisable at such time or
times, and to the extent, that the related Option will be exercisable. An SAR may not have a term exceeding ten years from its date of grant. An SAR granted independently of any other Award will be exercisable pursuant to the terms of the Award
Agreement. Whether an SAR is related to an Option or is granted independently, the SAR may only be exercised when the Fair Market Value of the Shares underlying the SAR exceeds the exercise price of the SAR. 

  
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 (d) Effect on Available Shares. To the extent that an SAR is exercised, only the
actual number of delivered Shares (if any) will be charged against the maximum number of Shares that may be delivered pursuant to Awards under this Plan. 

(e) Payment. Upon exercise of an SAR related to an Option and the attendant surrender of an exercisable portion of any related Award,
the Participant will be entitled to receive payment of an amount determined by multiplying – 
 (i) the excess of the
Fair Market Value of a Share on the date of exercise of the SAR over the exercise price per Share of the SAR, by 
 (ii) the
number of Shares with respect to which the SAR has been exercised. 
 Notwithstanding the foregoing, an SAR granted independently of an
Option (i) may limit the amount payable to the Participant to a percentage, specified in the Award Agreement but not exceeding one-hundred percent (100%), of the amount determined pursuant to the
preceding sentence, and (ii) shall be subject to any payment or other restrictions that the Committee may at any time impose in its discretion, including restrictions intended to conform the SARs with Section 409A of the Code. 

(f) Form and Terms of Payment. Subject to Applicable Law, the Committee may, in its sole discretion, settle the amount determined under
Section 7(e) above solely in cash, solely in Shares (valued at their Fair Market Value on the date of exercise of the SAR), or partly in cash and partly in Shares. Absent a contrary determination by the Committee, all SARs shall be settled in
cash as soon as practicable after exercise. Notwithstanding the foregoing, the Committee may, in an Award Agreement, determine the maximum amount of cash or Shares or combination thereof that may be delivered upon exercise of an SAR. 

(g) Termination of Employment or Consulting Relationship. The Committee shall establish and set forth in the applicable Award Agreement
the terms and conditions on which an SAR shall remain exercisable, if at all, following termination of a Participant’s Continuous Service. The provisions of Section 6(h) above shall apply to the extent an Award Agreement does not specify
the terms and conditions upon which an SAR shall terminate when there is a termination of a Participant’s Continuous Service. 
 8. Restricted
Shares, Restricted Share Units, and Unrestricted Shares 
 (a) Grants. The Committee may in its discretion grant restricted
shares (“Restricted Shares”) to any Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the Participant and that sets forth the number of Restricted Shares, the purchase price for such Restricted Shares
(if any), and the terms upon which the Restricted Shares may become vested. In addition, the Company may in its discretion grant the right to receive Shares after certain vesting requirements are met (“Restricted Share Units”) to any
Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the Participant which sets forth the number of Shares (or formula, that may be based on future performance or conditions, for determining the number of Shares)
that the Participant shall be entitled to receive upon vesting and the terms upon which the Shares subject to a Restricted Share Unit may become vested. The Committee may condition any Award of Restricted Shares or Restricted Share Units to a
Participant on receiving from the Participant 

  
 17 

 
such further assurances and documents as the Committee may require to enforce the restrictions. In addition, the Committee may grant Awards hereunder in the form of unrestricted shares
(“Unrestricted Shares”), which shall vest in full upon the date of grant or such other date as the Committee may determine or which the Committee may issue pursuant to any program under which one or more Eligible Persons (selected by the
Committee in its discretion) elect to receive Unrestricted Shares in lieu of cash bonuses that would otherwise be paid. 
 (b) Vesting
and Forfeiture. The Committee shall set forth in an Award Agreement granting Restricted Shares or Restricted Share Units, the terms and conditions under which the Participant’s interest in the Restricted Shares or the Shares subject to
Restricted Share Units will become vested and non-forfeitable. Except as set forth in the applicable Award Agreement or the Committee otherwise determines, upon termination of a Participant’s Continuous
Service for any other reason, the Participant shall forfeit his or her Restricted Shares and Restricted Share Units; provided that if a Participant purchases the Restricted Shares and forfeits them for any reason, the Company shall return the
purchase price to the Participant only if and to the extent set forth in an Award Agreement. 
 (c) Issuance of Restricted Shares Prior
to Vesting. The Company shall issue stock certificates that evidence Restricted Shares pending the lapse of applicable restrictions, and that bear a legend making appropriate reference to such restrictions. Except as set forth in the applicable
Award Agreement or the Committee otherwise determines, the Company or a third party that the Company designates shall hold such Restricted Shares and any dividends that accrue with respect to Restricted Shares pursuant to Section 8(e) below.

 (d) Issuance of Shares upon Vesting. As soon as practicable after vesting of a Participant’s Restricted Shares (or
Shares underlying Restricted Share Units) and the Participant’s satisfaction of applicable tax withholding requirements, the Company shall release to the Participant, free from the vesting restrictions, one Share for each vested Restricted
Share (or issue one Share free of the vesting restriction for each vested Restricted Share Unit), unless an Award Agreement provides otherwise. No fractional shares shall be distributed. 

(e) Dividends Payable on Vesting. Whenever Shares are released to a Participant or duly-authorized transferee pursuant to
Section 8(d) above as a result of the vesting of Restricted Shares or the Shares underlying Restricted Share Units are issued to a Participant pursuant to Section 8(d) above, such Participant or duly-authorized transferee shall also be
entitled to receive (unless otherwise provided in the Award Agreement), with respect to each Share released or issued, an amount equal to any cash dividends and a number of Shares equal to any stock dividends, which were declared and paid to the
holders of Shares between the date of grant and the date such Share is released from the vesting restrictions in the case of Restricted Shares or issued in the case of Restricted Share Units. 

(f) Section 83(b) Elections. A Participant may make an election under Section 83(b) of the Code (the “Section 83(b)
Election”) with respect to Restricted Shares. Shares with respect to which a Participant makes a Section 83(b) Election shall not be eligible for deferral pursuant to Section 9 below. 

9. Deferred Share Units 
 The
Committee may in its discretion grant Deferred Share Units to any Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the Participant and that sets 

  
 18 

 
forth the number of Shares (or formula, that may be based on future performance or conditions, for determining the number of Shares) that the Participant shall be entitled to receive upon
settlement, and the terms upon which the Shares subject to a Deferred Share Unit may become vested and settled. The Committee may condition any Award Deferred Share Units to a Participant on receiving from the Participant such further assurances and
documents as the Committee may require to enforce the restrictions. 
 10. Performance Awards 

The Committee may in its discretion grant Performance Awards to any Eligible Person and shall evidence such grant in an Award Agreement that is
delivered to the Participant and that sets forth the terms and conditions of the Award. A Performance Award is an Award which is based on the achievement of specific goals with respect to the Company or any Affiliate or individual performance of the
Participant, or a combination thereof, over a specified period of time. 
 11. Taxes 

(a) General. As a condition to the issuance or distribution of Shares pursuant to the Plan, the Participant (or in the case of the
Participant’s death, the person who succeeds to the Participant’s rights) shall make such arrangements as the Company may require for the satisfaction of any applicable federal, state, local or foreign withholding tax obligations that may
arise in connection with the Award and the issuance of Shares. The Company shall not be required to issue any Shares until such obligations are satisfied. If the Committee allows the withholding or surrender of Shares to satisfy a Participant’s
tax withholding obligations, the Committee shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes. 

(b) Surrender of Shares. If permitted by the Committee, in its discretion, a Participant may satisfy the minimum applicable tax
withholding and employment tax obligations associated with an Award by surrendering Shares to the Company (including Shares that would otherwise be issued pursuant to the Award) that have a Fair Market Value determined as of the applicable Tax Date
equal to the amount required to be withheld. In the case of Shares previously acquired from the Company that are surrendered under this Section 11, such Shares must have been owned by the Participant for more than six months on the date of
surrender (or such longer period of time the Company may in its discretion require). 
 (c) Income Taxes and Deferred
Compensation. Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with Awards (including any taxes arising under Section 409A of the Code), and the
Company shall not have any obligation to indemnify or otherwise hold any Participant harmless from any or all of such taxes. The Administrator shall have the sole discretion to interpret the requirements of the Code, including
Section 409A, for purposes of the Plan and all Awards.  
 12.
Non-Transferability of Awards 
 (a) General. Except as set forth in this
Section 12, or as otherwise approved by the Committee for a select group of management or highly compensated Employees, Awards may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or

  
 19 

 
by the laws of descent or distribution. The designation of a beneficiary by a Participant will not constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award,
only by such holder, the duly-authorized legal representative of a Participant who is Disabled, or a transferee permitted by this Section 12. 

(b) Limited Transferability Rights. Notwithstanding anything else in this Section 12, the Committee may in its discretion
provide in an Award Agreement that an Award other than an ISO may be transferred, on such terms and conditions as the Committee deems appropriate, either (i) by instrument to the Participant’s “Immediate Family” (as defined
below), or (ii) by instrument to an inter vivos or testamentary trust (or other entity) in which the Award is to be passed to the Participant’s designated beneficiaries. “Immediate Family” means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, and shall include adoptive relationships. Any transferee of a Participant’s rights shall succeed to and be subject to all of the terms
of the Plan and the Award Agreement (and any amendments thereto) granting the transferred Award. 
 13. Adjustments Upon Changes in
Capitalization, Merger or Certain Other Transactions 
 (a) Changes in Capitalization. The Committee shall equitably adjust
the number of Shares covered by each outstanding Award, and the number of Shares that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been returned to the Plan upon cancellation,
forfeiture, or expiration of an Award, as well as the price per Share covered by each such outstanding Award, to reflect any increase or decrease in the number of issued Shares resulting from a stock-split, reverse stock-split, stock dividend,
combination, recapitalization or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. In the event of any such transaction or event, the Committee
may provide in substitution for any or all outstanding Options under the Plan such alternative consideration (including securities of any surviving entity) as it may in good faith determine to be equitable under the circumstances and may require in
connection therewith the surrender of all Options so replaced. In any case, such substitution of securities shall not require the consent of any person who is granted Options pursuant to the Plan. Except as expressly provided herein or in an Award
Agreement, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be required to be made with respect to, the number or price
of Shares subject to any Award. 
 (b) Dissolution or Liquidation. In the event of the dissolution or liquidation of the Company
other than as part of a Change in Control, each Award will terminate immediately prior to the consummation of such action, subject to the ability of the Committee to exercise any discretion authorized in the case of a Change in Control. 

(c) Change in Control. In the event of a Change in Control, the Committee may in its sole and absolute discretion and authority,
without obtaining the approval or consent of the Company’s shareholders or any Participant with respect to his or her outstanding Awards, take one or more of the following actions: 

 

	 	(i)	 arrange for or otherwise provide that each outstanding Award shall be assumed or a substantially similar award
shall be substituted by a successor corporation or a parent or subsidiary of such successor 

  
 20 

	 	
corporation (the “Successor Corporation”) in which case a Participant who is Involuntarily Terminated (as defined below) in connection with, or within a period specified in the Award
Agreement following the Change in Control shall become vested in such portion as set forth in the Award Agreement of any assumed or substituted Award held by the terminated Participant at the time of termination; 

 

	 	(ii)	 terminate upon the consummation of the transaction, provided that the vesting of all outstanding Awards shall
accelerate in full as of a date immediately prior to consummation of the Change in Control. To the extent that an Award is not exercised prior to consummation of a transaction in which the Award is not being assumed or substituted, such Award shall
terminate upon such consummation; or 

  

	 	(iii)	 be assumed, or an award with equal or equivalent value shall be substituted, by any Successor Company.

 For purposes of this section, “Involuntary Termination” means termination of a Participant’s
Continuous Service by the Company without Cause or by reason of the Participant’s resignation within 60 days following (A) a material reduction in the Participant’s job responsibilities, but not a mere change in title;
(B) relocation of the Participant’s principal office to a location more than 50 miles from the Participant’s principal office for the Company at the time of the Change in Control; or (C) a reduction in Participant’s
then-current total compensation by at least 10%, other than as part of an across-the-board percentage reduction applicable to all other similarly-situated Employees,
Directors, or Consultants. 
 (d) Certain Distributions. In the event of any distribution to the Company’s shareholders of
securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Committee may, in its discretion, appropriately adjust the price per Share covered by
each outstanding Award to reflect the effect of such distribution. 
 14. Modification of Awards  

Within the limitations of the Plan and consistent with the requirements of Section 409A and 424 of the Code, as applicable, the Committee
may modify an Award to accelerate the rate at which an Option or SAR may be exercised (including without limitation permitting an Option or SAR to be exercised in full without regard to the installment or vesting provisions of the applicable Award
Agreement or whether the Option or SAR is at the time exercisable, to the extent it has not previously been exercised), to accelerate the vesting of any Award, to extend or renew outstanding Awards, or to accept the cancellation of outstanding
Awards to the extent not previously exercised either for the granting of new Awards or for other consideration in substitution or replacement thereof. Notwithstanding the foregoing provision, no modification of an outstanding Award shall materially
and adversely affect such Participant’s rights thereunder, unless either the Participant provides written consent or there is an express Plan provision permitting the Committee to act unilaterally to make the modification. 

  
 21 

 15. Term of Plan 

The Plan shall continue in effect for a term of ten (10) years from its effective date as determined under Section 19 below or until
the tenth anniversary of its approval by the stockholders of the Company, if earlier, unless the Plan is sooner terminated under Section 16 below. 

16. Amendment and Termination of the Plan 

(a) Authority to Amend or Terminate. Subject to Applicable Laws, the Board may from time to time amend, alter, suspend, discontinue, or
terminate the Plan. 
 (b) Effect of Amendment or Termination. No amendment, suspension, or termination of the Plan shall materially
and adversely affect Awards already granted unless either it relates to an adjustment pursuant to Section 13 above, or it is otherwise mutually agreed between the Participant and the Committee, which agreement must be in writing and signed by
the Participant and the Company. Notwithstanding the foregoing, the Committee may amend the Plan to eliminate provisions which are no longer necessary as a result of changes in tax or securities laws or regulations, or in the interpretation thereof.

 17. Conditions Upon Issuance of Shares. 

Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be
obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with Applicable Law, with such compliance determined by the Company in consultation with its legal
counsel. 
 18. Reservation of Shares 

The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy
the requirements of the Plan. 
 19. Effective Date 

This Plan shall become effective on the date of its approval by the Board; provided that this Plan shall be submitted to the Company’s
shareholders for approval, and if not approved by the shareholders in accordance with Applicable Laws (as determined by the Committee in its discretion) within one year from the date of approval by the Board, this Plan and any Awards shall be null,
void, and of no force and effect. Awards granted under this Plan before approval of this Plan by the shareholders shall be granted subject to such approval, and no Shares shall be distributed before such approval. 

20. Controlling Law 
 All disputes
relating to or arising from the Plan shall be governed by the internal substantive laws (and not the laws of conflicts of laws) of the State of Delaware, to the extent not preempted by United States federal law. If any provision of this Plan is held
by a court of competent jurisdiction to be invalid and unenforceable, the remaining provisions shall continue to be fully effective. 

  
 22 

 21. Laws And Regulations 

(a) U.S. Securities Laws. This Plan, the grant of Awards, and the exercise of Options and SARs under this Plan, and the obligation of
the Company to sell or deliver any of its securities (including, without limitation, Options, Restricted Shares, Restricted Share Units, Deferred Share Units, and Shares) under this Plan shall be subject to all Applicable Law. In the event that the
Shares are not registered under the Securities Act of 1933, as amended (the “Act”), or any applicable state securities laws prior to the delivery of such Shares, the Company may require, as a condition to the issuance thereof, that the
persons to whom Shares are to be issued represent and warrant in writing to the Company that such Shares are being acquired by him or her for investment for his or her own account and not with a view to, for resale in connection with, or with an
intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Act, and a legend to that effect may be placed on the certificates representing the Shares. 

(b) Other Jurisdictions. To facilitate the making of any grant of an Award under this Plan, the Committee may provide for such special
terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Affiliate outside of the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local law,
tax policy or custom. The Company may adopt rules and procedures relating to the operation and administration of this Plan to accommodate the specific requirements of local laws and procedures of particular countries. Without limiting the foregoing,
the Company is specifically authorized to adopt rules and procedures regarding the conversion of local currency, taxes, withholding procedures and handling of stock certificates which vary with the customs and requirements of particular countries.
The Company may adopt sub-plans and establish escrow accounts and trusts as may be appropriate or applicable to particular locations and countries. 

22. No Shareholder Rights 
 Neither a Participant
nor any transferee of a Participant shall have any rights as a shareholder of the Company with respect to any Shares underlying any Award until the date of issuance of a share certificate to a Participant or a transferee of a Participant for such
Shares in accordance with the Company’s governing instruments and Applicable Law. Prior to the issuance of Shares pursuant to an Award, a Participant shall not have the right to vote or to receive dividends or any other rights as a shareholder
with respect to the Shares underlying the Award, notwithstanding its exercise in the case of Options and SARs. No adjustment will be made for a dividend or other right that is determined based on a record date prior to the date the stock certificate
is issued, except as otherwise specifically provided for in this Plan. 
 23. No Employment Rights 

The Plan shall not confer upon any Participant any right to continue an employment, service or consulting relationship with the Company, nor shall it affect in
any way a Participant’s right or the Company’s right to terminate the Participant’s employment, service, or consulting relationship at any time, with or without Cause. 

  
 23 

 VAPOTHERM, INC. 

2015 Stock Incentive Plan 
  

 
 Appendix A:
Definitions 
  
  

As used in the Plan, the following definitions shall apply: 

“Affiliate” means, with respect to any Person (as defined below), any other Person that directly or
indirectly controls or is controlled by or under common control with such Person. For the purposes of this definition, “control,” when used with respect to any Person, means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of such Person or the power to elect directors, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and
“controlled” have meanings correlative to the foregoing. 
 “Applicable Law” means the legal
requirements relating to the administration of options and share-based plans under applicable U.S. federal and state laws, the Code, any applicable stock exchange or automated quotation system rules or regulations, and the applicable laws of any
other country or jurisdiction where Awards are granted, as such laws, rules, regulations and requirements shall be in place from time to time. 

“Award” means any award made pursuant to the Plan, including awards made in the form of an Option, an
SAR, a Restricted Share, a Restricted Share Unit, an Unrestricted Share, a Deferred Share Unit and a Performance Award, or any combination thereof, whether alternative or cumulative, authorized by and granted under this Plan. 

“Award Agreement” means any written document setting forth the terms of an Award that has been
authorized by the Committee. The Committee shall determine the form or forms of documents to be used, and may change them from time to time for any reason. 

“Board” means the Board of Directors of the Company. 

“Cause” for termination of a Participant’s Continuous Service will exist if the Participant is
terminated from employment or other service with the Company or an Affiliate for any of the following reasons: (i) the Participant’s willful failure to substantially perform his or her duties and responsibilities to the Company or
deliberate violation of a material Company policy; (ii) the Participant’s commission of any material act or acts of fraud, embezzlement, dishonesty, or other willful misconduct; (iii) the Participant’s material unauthorized use
or disclosure of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) Participant’s
willful and material breach of any of his or her obligations under any written agreement or covenant with the Company. 

 The Committee shall in its discretion determine whether or not a Participant is being
terminated for Cause. The Committee’s determination shall, unless arbitrary and capricious, be final and binding on the Participant, the Company, and all other affected persons. The foregoing definition does not in any way limit the
Company’s ability to terminate a Participant’s employment or consulting relationship at any time, and the term “Company” will be interpreted herein to include any Affiliate or successor thereto, if appropriate. 

“Change in Control” means a transaction or series of related transactions as a result of which a person
or group of persons acting in concert directly or indirectly acquires voting control of the Company or acquires all or substantially all of its assets. The transaction(s) may be in any form or combination of forms, including, without limitation, a
purchase of voting securities, a grant of one or more proxies, the establishment of a voting agreement, a merger (whether or not the Company survives), a share exchange, reorganization or an asset sale. For this purpose, “voting control”
of the Company means the possession, direct or indirect, of the power to elect, under ordinary circumstances, a majority of the directors of the Company, whether through the ownership of voting securities, by contract or agreement, or otherwise.
Notwithstanding the foregoing, the following shall not constitute a Change in Control: (i) an acquisition by an entity that is, at the time of the acquisition, under the voting control of the Company, (ii) a change in ownership of voting
securities by any stockholder who has voting control of the Company on the date this Plan is first adopted by the Board, (iii) an acquisition by venture capital, institutional or similar financial investors (for the avoidance of doubt,
excluding strategic partners who invest in the Company) in a bona fide financing transaction, and (iv) an event that does not constitute a change in the ownership or effective control, or in the ownership of a substantial portion of the assets,
of a relevant entity within the meaning of Code Section 409A(2)(A)(v) and its interpretive regulations. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Committee” means one or more committees or subcommittees of the Board appointed by the Board to
administer the Plan in accordance with Section 4 above. 
 “Company” means Vapotherm, Inc., a
Delaware corporation; provided, however, that in the event the Company reincorporates to another jurisdiction, all references to the term “Company” shall refer to the Company in such new jurisdiction. 

“Consultant” means any person, including an advisor, who is engaged by the Company or any Affiliate to
render services and is compensated for such services. 
 “Continuous Service” means the absence of any
interruption or termination of service as an Employee, Director, or Consultant. Continuous Service shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by
the Committee, provided that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time
to time; (iv) changes in status from Director to advisory director or emeritus status; or (iv) in the case of transfers between locations of the Company or between the Company, its Affiliates or their respective successors. Changes in
status between service as an Employee, Director, and a Consultant will not constitute an interruption of Continuous Service. 

“Deferred Share Units” mean Awards pursuant to Section 9 of the Plan. 

  
 2 

 “Director” means a member of the Board, or a member of
the board of directors of an Affiliate. 
 “Disabled” means a condition under which a Participant
would be entitled to long-term disability benefits under the Company’s long-term disability plan in which the Participant participants. Notwithstanding the foregoing, in any case in which a benefit that constitutes or includes
“nonqualified deferred compensation” subject to Section 409A would be payable because the Participant becomes Disabled, the term Disabled will mean a condition that would constite a disability described in Treas. Regs. Section 1.409A-3(i)(4)(i)(A). 
 “Eligible Person” means any
Consultant, Director or Employee and includes non-Employees to whom an offer of employment has been extended. 

“Employee” means any person whom the Company or any Affiliate classifies as an employee (including an
officer) for employment tax purposes. The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute “employment” of such Director by the Company. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Fair Market Value” means, as of any date, the fair market value established in good faith by the Board.

 “Incentive Share Option or ISO” hereinafter means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code, as designated in the applicable Award Agreement. 

“Involuntary Termination” means termination of a Participant’s Continuous Service under the
following circumstances occurring on or after a Change in Control: (i) termination without Cause by the Company or an Affiliate or successor thereto, as appropriate; or (ii) voluntary termination by the Participant within 60 days following
(A) a material reduction in the Participant’s job responsibilities, provided that neither a mere change in title alone nor reassignment to a substantially similar position shall constitute a material reduction in job responsibilities;
(B) an involuntary relocation of the Participant’s work site to a facility or location more than 50 miles from the Participant’s principal work site at the time of the Change in Control; or (C) a material reduction in
Participant’s total compensation other than as part of an reduction by the same percentage amount in the compensation of all other similarly-situated Employees, Directors or Consultants. 

“Non-ISO” means an Option not intended to qualify as an ISO, as
designated in the applicable Award Agreement. 
 “Option” means any stock option granted pursuant to
Section 6 of the Plan. 
 “Participant” means any holder of one or more Awards, or the Shares
issuable or issued upon exercise of such Awards, under the Plan. 
 “Performance Awards” means Awards granted
pursuant to Section 10(a) of the Plan which may be paid in cash, in Shares, or such combination of cash and Shares as the Committee in its sole discretion shall determine.  

  
 3 

 “Person” means any natural person, association, trust,
business trust, cooperative, corporation, general partnership, joint venture, joint-stock company, limited partnership, limited liability company, real estate investment trust, regulatory body, governmental agency or instrumentality, unincorporated
organization or organizational entity. 
 “Plan” means this Vapotherm, Inc. 2015 Stock Incentive Plan.

 “Restricted Shares” mean Shares subject to restrictions imposed pursuant to Section 8 of the
Plan. 
 “Restricted Share Units” mean Awards pursuant to Section 8 of the Plan. 

“Retirement” has the meaning set forth in the Company’s employee handbook as in effect from time to
time. 
 “SAR” or “Share Appreciation Right” means Awards granted pursuant to Section 7
of the Plan. 
 “Share” means a share of common stock of the Company, as adjusted in accordance with
Section 13 of the Plan. 
 “Ten Percent Holder” means a person who owns stock representing more
than ten percent (10%) of the combined voting power of all classes of stock of the Company or any Affiliate. 

“Unrestricted Shares” mean Shares awarded pursuant to Section 8 of the Plan. 

  
 4 

 VAPOTHERM, INC. 

2015 STOCK INCENTIVE PLAN 
  

			
		  	As approved by the Board of Directors on                      and by the shareholders on
                    

 AMENDMENT NUMBER 1 TO 

VAPOTHERM, INC. 
 AMENDED
AND RESTATED 
 2015 STOCK INCENTIVE PLAN 

Vapotherm, Inc. sponsors the Vapotherm, Inc. Amended and Restated 2015 Stock Incentive Plan (the “Plan”). The Plan is hereby
amended as set forth below: 
  

	1.	 The first sentence of Section 3 is amended by deleting it in its entirety and replacing it with the
following: 

 Subject to the provisions of Section 13 of the Plan, the maximum number of Shares that the Company may issue for all
Awards is 8,376,445 Shares (all of which may be delivered upon the exercise of ISOs), plus any Shares that remain available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan, or that become available
for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan as a result of forfeiture of awards thereunder. 
  

	2.	 Except as amended above, the Plan shall remain in full force and effect. 

[Remainder of page intentionally blank. Signature page to follow.] 

 IN WITNESS WHEREOF, Vapotherm, Inc. has executed this Plan Amendment Number 1 to the
Vapotherm, Inc. Amended and Restated 2015 Stock Incentive Plan as of this 16th day of October, 2015. 
  

			
	Vapotherm, Inc.
		
	By:	 	/s/ Joseph Army

 
			
	Name:	 	Joseph Army
	Title:	 	President and Chief Executive Officer

 AMENDMENT NUMBER 2 TO 

VAPOTHERM, INC. 
 AMENDED
AND RESTATED 
 2015 STOCK INCENTIVE PLAN 

Vapotherm, Inc. sponsors the Vapotherm, Inc. Amended and Restated 2015 Stock Incentive Plan (the “Plan”). The Plan is hereby
amended as set forth below: 
  

	1.	 The first sentence of Section 3 is amended by deleting it in its entirety and replacing it with the
following: 

 Subject to the provisions of Section 13 of the Plan, the maximum number of Shares that the Company may issue for all
Awards is 14,458,605 Shares (all of which may be delivered upon the exercise of ISOs), plus any Shares that remain available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan, or that become
available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan as a result of forfeiture of awards thereunder. 
  

	2.	 Except as amended above, the Plan shall remain in full force and effect. 

IN WITNESS WHEREOF, Vapotherm, Inc. has executed this Plan Amendment Number 2 to the Vapotherm, Inc. Amended and Restated 2015 Stock Incentive
Plan as of this 11th day of May, 2017. 
  

			
	 Vapotherm, Inc.

		
	 By:
	 	 /s/ Joseph
Army

 
			
	Name:	 	 Joseph Army

	Title:	 	 President and Chief Executive Officer

 AMENDMENT NUMBER 3 TO 

VAPOTHERM, INC. 
 AMENDED
AND RESTATED 
 2015 STOCK INCENTIVE PLAN 

Vapotherm, Inc. sponsors the Vapotherm, Inc. Amended and Restated 2015 Stock Incentive Plan (the “Plan”). The Plan is hereby
amended as set forth below: 
  

	1.	 The first sentence of Section 3 is amended by deleting it in its entirety and replacing it with the
following: 

 Subject to the provisions of Section 13 of the Plan, the maximum number of Shares that the Company may issue for all
Awards is 16,982,199 Shares (all of which may be delivered upon the exercise of ISOs), plus any Shares that remain available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan, or that become
available for grant under the Company’s 2005 Stock Incentive Plan after the date of adoption of the Plan as a result of forfeiture of awards thereunder. 
  

	2.	 Except as amended above, the Plan shall remain in full force and effect. 

IN WITNESS WHEREOF, Vapotherm, Inc. has executed this Plan Amendment Number 3 to the Vapotherm, Inc. Amended and Restated 2015 Stock Incentive
Plan as of this 8th day of September, 2017. 
  

			
	Vapotherm, Inc.
		
	By:	 	/s/ Joseph Army

 
			
	Name:	 	Joseph Army
	Title:	 	President and Chief Executive Officerdrrx-ex101_6.htm

 

Exhibit 10.1

 

second AMENDMENT TO
LOAN AND SECURITY AGREEMENT

THIS SECOND AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of November 1, 2018, by and between OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or otherwise party thereto from time to time including Oxford in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”) and DURECT CORPORATION, a Delaware corporation with offices located at 10260 Bubb Road, Cupertino, CA 95014 (“Borrower”).

Recitals

A.Collateral Agent, Lenders and Borrower have entered into that certain Loan and Security Agreement dated as of July 28, 2016 (as amended from time to time, including by that certain First Amendment to Loan and Security Agreement dated as of February 28, 2018, collectively, the “Loan Agreement”).

B.Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  

C.Borrower has requested that Collateral Agent and Lenders (i) modify the repayment schedule and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.

D.Collateral Agent and Lenders have agreed to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.  

2.1Section 2.2 (Term Loans).  Section 2.2(b) of the Loan Agreement hereby is amended and restated in its entirety to read as follows:

“(b) Repayment.  Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of the Term Loans, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date. Borrower agrees to pay, on the Funding Date of the Term Loans, any initial partial monthly interest payment otherwise due for the period between the Funding Date of the Term Loans and the first Payment Date thereof. Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal, together with applicable interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to thirty (30) months.  All unpaid principal and accrued and unpaid interest with respect to the Term Loans is due and payable in full on the Maturity Date.  The Term Loans may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).” 

1

 

 

 

2.2Section 2.5 (Fees).  New Section 2.5(f) is hereby added to the Loan Agreement to read as follows:

“(f)Second Amendment Fee.A fully earned, non-refundable amendment fee of Nine Hundred Thousand Dollars ($900,000.00) (the “Second Amendment Fee”) to be shared between the Lenders pursuant to their respective Commitment Percentages due and payable on the Second Amendment Effective Date;”

 

2.3Section 13.1 (Definitions).  The following terms and their respective definitions hereby are added or amended and restated in their entirety, as applicable, to Section 13.1 of the Loan Agreement as follows:

“Amortization Date” is June 1, 2020.

“Key Person” is each of Borrower’s (i) President and Chief Executive Officer, who is James E. Brown as of the Effective Date, and (ii) Chief Financial Officer, who is Michael Arenberg as of the Second Amendment Effective Date.

“Maturity Date” is November 1, 2022.

“Prepayment Fee” is, with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to:

(i)for a prepayment made on or after the Funding Date of such Term Loan through and including the first anniversary of the Second Amendment Effective Date, two and one half percent (2.50%) of the principal amount of such Term Loan prepaid;

(ii)for a prepayment made after the date which is after the first anniversary of the Second Amendment Effective Date through and including the second anniversary of the of the Second Amendment Effective Date, one and one half percent (1.50%) of the principal amount of such Term Loan prepaid; and

(iii)for a prepayment made after the second anniversary of the Second Amendment Effective Date and prior to the Maturity Date, three-quarters of one percent (0.75%) of the principal amount of such Term Loan prepaid. 

“Second Amendment Effective Date” is November 1, 2018.

3.Limitation of Amendment.

3.1The amendments set forth in Section 2 above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Collateral Agent or any Lender may now have or may have in the future under or in connection with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

2

 

 

4.Representations and Warranties.  To induce Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower delivered to Collateral Agent and Lenders on the Effective Date, or subsequent thereto, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower; and

4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

5.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

6.Effectiveness.  This Amendment shall be deemed effective upon the due execution and delivery to Collateral Agent and Lenders of (i) this Amendment by each party hereto, (ii) the due execution and delivery to Collateral Agent of the Corporate Borrowing Certificate attached hereto as Exhibit A, (iii) Borrower’s payment of the Second Amendment Fee as required by Section 2.5(f) of the Loan Agreement, and (iv) Borrower’s payment of all Lenders’ Expenses incurred through the date of this Amendment.

[Balance of Page Intentionally Left Blank]

 

 

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In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

		
	
COLLATERAL AGENT AND LENDER:

 

OXFORD FINANCE LLC 

 

 

By: /s/ Colette H. Featherly

Name:Colette H. Featherly

Title:Senior Vice President

 
	
 

	
 

 
	
 

	
 

BORROWER:

 

DURECT CORPORATION

 

By:   /s/ Michael H. Arenberg

Name:   Michael H. Arenberg

Title:     Chief Financial Officer

 

 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Second Amendment to Loan and Security Agreement]

 

 

CORPORATE BORROWING CERTIFICATE

				
	
Borrower:
	
DURECT CORPORATION
	
Date: November 1, 2018

	
Lenders
	
OXFORD FINANCE LLC, as Collateral Agent and Lender
	
 

	
 
	
 
	
 

	
 
	
 
	
 

I hereby certify as follows, as of the date set forth above:

1.I am the Secretary, Assistant Secretary or other officer of Borrower.  My title is as set forth below.

2.Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of Delaware.

3.Attached hereto as Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws.  Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of Incorporation and such Bylaws remain in full force and effect as of the date hereof.  

4.The following resolutions were duly and validly adopted by the the Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Collateral Agent and Lenders may rely on them until Collateral Agent and each Lender receives written notice of revocation from Borrower.

[Balance of Page Intentionally Left Blank]

 

 

 

 

Resolved, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

				
	
Name
	
Title
	
Signature
	
Authorized to Add or Remove Signatories

	
 
	
 
	
 
	
☐

	
 
	
 
	
 
	
☐

	
 
	
 
	
 
	
☐

	
 
	
 
	
 
	
☐

 

Resolved Further, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

Resolved Further, that such individuals may, on behalf of Borrower:

Borrow Money.  Borrow money from Lenders.

Execute Loan Documents.  Execute any loan documents Collateral Agent or any Lender requires. 

Grant Security.  Grant Collateral Agent and Lenders a security interest in any of Borrower’s assets.

Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.

Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions.

 

Resolved Further, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified.

5.The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

			
	
 
	
 
	
By:  

	
 
	
 
	
Name:  

	
 
	
 
	
Title:  

 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

	
I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as 
	

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of the date set forth above.

			
	
 
	
 
	
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