Document:

EX-10.6

 Exhibit 10.6 

ARCELLX, INC. 
 EMPLOYEE
INCENTIVE COMPENSATION PLAN 
 1. Purposes of the Plan. The Plan is intended to increase stockholder value and the success of the
Company by motivating Employees to (a) perform to the best of their abilities and (b) achieve the Company’s objectives. 
 2.
Definitions. 
 2.1 “Actual Award” means as to any Performance Period, the actual award (if any) payable to a
Participant for the Performance Period, subject to the authority of the Administrator (as defined in Section 3) under Section 4.4. 

2.2 “Administrator” has the meaning ascribed to it under Section 3.1. 

2.3 “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) that,
from time to time and at the time of any determination, directly or indirectly, is in control of or is controlled by the Company. 
 2.4
“Board” means the Board of Directors of the Company. 
 2.5 “Bonus Pool” means the pool of funds available
for distribution to Participants. Subject to the terms of the Plan, the Administrator establishes the Bonus Pool for each Performance Period. 

2.6 “Code” means the U.S. Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or
regulation thereunder will include such section or regulation, any valid regulation or formal guidance of general or direct applicability promulgated under such section or regulation, and any comparable provision of any future legislation or
regulation amending, supplementing or superseding such section or regulation. 
 2.7 “Committee” means a committee appointed
by the Board (pursuant to Section 3) to administer the Plan. 
 2.8 “Company” means Arcellx, Inc., a Delaware
corporation, or any successor thereto. 
 2.9 “Company Group” means the Company and any Parents, Subsidiaries, and
Affiliates. 
 2.10 “Disability” means a permanent and total disability determined in accordance with uniform and
nondiscriminatory standards adopted by the Administrator from time to time. 

 2.11 “Employee” means any executive, officer, or other employee of the
Company Group, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 

2.12 “Fiscal Year” means the fiscal year of the Company. 

2.13 “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code
Section 424(e). 
 2.14 “Participant” means as to any Performance Period, an Employee who has been selected by the
Administrator for participation in the Plan for that Performance Period and who has, if so requested by the Company or the employing member of the Company Group, signed an acknowledgement form in the form provided by the Company Group. 

2.15 “Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive
an Actual Award, as determined by the Administrator. A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the Administrator desires to measure some performance criteria over twelve
(12) months and other criteria over three (3) months. 
 2.16 “Plan” means this Employee Incentive Compensation
Plan (including any appendix attached hereto), as may be amended from time to time. 
 2.17
“Section 409A” means Section 409A of the Code and/or any state law equivalent as each may be amended or promulgated from time to time. 

2.18 “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code
Section 424(f), in relation to the Company. 
 2.19 “Target Award” means the target award, at 100% of target level
performance achievement, payable under the Plan to a Participant for a Performance Period, as determined by the Administrator in accordance with Section 4.2. 

2.20 “Tax Withholdings” means tax, social insurance and social security liability or premium obligations in connection with
the awards under the Plan, including without limitation: (a) all federal, state, and local income, employment and any other taxes (including the Participant’s U.S. Federal Insurance Contributions Act (FICA) obligation) that are required to
be withheld by the Company Group, (b) the Participant’s and, to the extent required by the Company Group, the fringe benefit tax liability of the Company Group associated with an award under the Plan, and (c) any other taxes or social
insurance or social security liabilities or premium the responsibility for which the Participant has, or has agreed to bear, with respect to such award under the Plan. 

2.21 “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and the Company
Group, including without limitation a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of a Parent, Subsidiary or Affiliate. For purposes of the Plan, transfer of employment of a Participant between any
members of the Company Group (for example, between the Company and a Subsidiary) will not be deemed a Termination of Employment. 

  
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 3. Administration of the Plan. 

3.1 Administrator. The Plan will be administered by the Board or a Committee (the “Administrator”). The members of any
Committee will be appointed from time to time in a manner that satisfies applicable laws by, and serve at the pleasure of, the Board. The Board may retain the authority to administer the Plan concurrently with a Committee and may revoke the
delegation of some or all authority previously delegated. Different Administrators may administer the Plan with respect to different groups of Employees. Unless and until the Board otherwise determines, the Board’s Compensation Committee will
administer the Plan. 
 3.2 Administrator Authority. It will be the duty of the Administrator to administer the Plan in accordance
with the Plan’s provisions and in accordance with applicable law. The Administrator will have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to
(a) determine which Employees will be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures, appendices and
sub-plans as are necessary or appropriate to permit participation in the Plan by Employees who are non-U.S. nationals or employed outside of the U.S. or to qualify
awards for special tax treatment under the laws of jurisdictions other than the U.S., (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any
such rules. Any determinations and decisions made or to be made by the Administrator pursuant to the provisions of the Plan, unless specified otherwise by the Administrator, will be in the Administrator’s sole discretion. 

3.3 Decisions Binding. All determinations and decisions made by the Administrator and/or any delegate of the Administrator pursuant to
the provisions of the Plan will be final, conclusive, and binding on all persons, and will be given the maximum deference permitted by law. 

3.4 Delegation by Administrator. The Administrator, on such terms and conditions as it may provide, may delegate all or part of its
authority and powers under the Plan to one or more directors and/or officers of the Company. Such delegation may be revoked at any time. 

3.5 Indemnification. Each person who is or will have been a member of the Administrator will be indemnified and held harmless by the
Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action taken or failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in
satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she will give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by
contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 

  
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 4. Selection of Participants and Determination of Awards. 

4.1 Selection of Participants. The Administrator will select the Employees who will be Participants for any Performance Period.
Participation in the Plan will be on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any
subsequent Performance Period or Performance Periods. No Employee will have the right to be selected to receive an award under this Plan or, if so selected, to be selected to receive a future award. 

4.2 Determination of Target Awards. The Administrator may establish a Target Award for each Participant (which may be expressed as a
percentage of a Participant’s average annual base salary for the Performance Period or a fixed dollar amount or such other amount or based on such other formula or factors as the Administrator determines). 

4.3 Bonus Pool. Each Performance Period, the Administrator may establish a Bonus Pool, which pool may be established before, during or
after the applicable Performance Period. Actual Awards will be paid from the Bonus Pool, if a Bonus Pool has been established. 
 4.4
Discretion to Modify Awards. Notwithstanding any contrary provision of the Plan, the Administrator, at any time prior to payment of an Actual Award, may: (a) increase, reduce or eliminate a Participant’s Actual Award, and/or
(b) increase, reduce or eliminate the amount allocated to the Bonus Pool. The Actual Award may be below, at or above the Target Award, as determined by the Administrator. The Administrator may determine the amount of any increase, reduction, or
elimination based on such factors as it deems relevant, and will not be required to establish any allocation or weighting with respect to the factors it considers. 

4.5 Discretion to Determine Criteria. Notwithstanding any contrary provision of the Plan, the Administrator will determine the
performance goals, if any, applicable to any Target Award (or portion thereof) which may include, without limitation, goals related to: (i) research and development, (ii) regulatory milestones or regulatory-related goals, (iii) gross
margin, (iv) financial milestones, (v) new product or business development (including geographical expansion) or sales, marketing or other commercial matters, (vi) operating margin, (viii) product release timelines or other
product release milestones, (ix) publications, (x) cash flow, (xi) procurement, (xii) savings, (xiii) internal structure, (xiv) leadership development, (xv) project, function or portfolio-specific milestones,
(xvi) license or research collaboration agreements, (xvii) capital raising, (xviii) patentability and (xix) individual objectives such as peer reviews or other subjective or objective criteria.. As determined by the
Administrator, the performance goals may be based on U.S. generally accepted accounting principles (“GAAP”) or non-GAAP results and any actual results may be adjusted by the Administrator for one-time items or unbudgeted or unexpected items and/or payments of Actual Awards under the Plan when determining whether the performance goals have been met. The performance goals may be based on any factors the
Administrator determines relevant, including without limitation on an individual, divisional, portfolio, project, business unit, segment or Company-wide basis. Any criteria used may be measured on such basis as the Administrator determines,
including without limitation: (a) in absolute terms, (b) in combination with another performance goal or goals (for example, but not by way of limitation, as a ratio or matrix), (c) in relative terms (including, but not limited to,
results 

  
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for other periods, passage of time and/or against another company or companies or an index or indices), (d) on a per-share basis, (e) against the
performance of the Company as a whole or a segment of the Company and/or (f) on a pre-tax or after-tax basis. The performance goals may differ from Participant to
Participant and from award to award. Failure to meet the applicable performance goals will result in a failure to earn the Target Award, except as provided in Section 4.4. The Administrator also may determine that a Target Award (or portion
thereof) will not have a performance goal associated with it but instead will be granted (if at all) as determined by the Administrator. 

4.6 Appendices and Sub-Plan. The Administrator may determine, at any time prior to payment of an
Actual Award, that any Target Award or Actual Award (or portion thereof) are subject to any special provisions set forth in a country-specific appendix (or portion thereof) or sub-plan made available to the
Participant in connection with this Award Agreement (as may be amended and/or restated from time to time) (collectively, an “Applicable Appendix”). If the Administrator determines that an Applicable Appendix applies, such terms and
conditions supplement, amend and/or supersede the terms of this Plan, provided, however, that no such terms or conditions shall be effective with respect to a Participant who is a U.S. taxpayer or otherwise subject to Section 409A
unless such terms and conditions would result in the terms of a Target Award or Actual Award to such Participant remaining exempt or excepted from the requirements of Section 409A pursuant to the “short-term deferral” exception or
another exception or exemption under Section 409A, or otherwise complying with Section 409A, in each case such that none of this Plan or Actual Awards provided under this Plan to such Participant will be subject to the additional tax
imposed under Section 409A. 
 5. Payment of Awards. 

5.1 Right to Receive Payment. Each Actual Award will be paid solely from the general assets of the Company Group. Nothing in this Plan
will be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which the Participant may be entitled. 

5.2 Timing of Payment. Payment of each Actual Award will be made as soon as practicable after the end of the Performance Period to which
the Actual Award relates and after the Actual Award is approved by the Administrator, but in no event after the later of (a) the fifteenth (15th) day of the third (3rd) month of the Fiscal Year immediately following the Fiscal Year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture, and
(b) March 15 of the calendar year immediately following the calendar year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture. Unless otherwise determined by the Administrator,
to earn an Actual Award a Participant must be employed by the Company Group on the date the Actual Award is paid, and in all cases subject to the Administrator’s discretion pursuant to Section 4.4. 

5.3 Form of Payment. Subject to the terms of this Plan, including Section 6.1.2, each Actual Award generally will be paid in cash
(or its equivalent) in a single lump sum. The Administrator reserves the right to settle an Actual Award with a grant of an equity award with such terms and conditions, including any vesting requirements, as determined by the Administrator. 

  
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 5.4 Payment in the Event of Death or Disability. If a Termination of Employment
occurs due to a Participant’s death or Disability prior to payment of an Actual Award that the Administrator has determined will be paid for a prior Performance Period, then the Actual Award will be paid to the Participant or the
Participant’s estate, as the case may be, subject to the Administrator’s discretion pursuant to Section 4.4. 
 6. General
Provisions. 
 6.1 Tax Matters. 

6.1.1 Section 409A. It is the intent that this Plan be exempt from or comply with the requirements of
Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms will be interpreted to be so exempt or so comply. Each payment
under this Plan is intended to constitute a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2). In no event will the Company Group have any liability, obligation, or
responsibility to reimburse, indemnify or hold harmless any Participant or other Employee for any taxes, penalties or interest imposed, or other costs incurred, as a result of Section 409A. 

6.1.2 Tax Withholdings. The Company Group will have the right and authority to deduct from any Actual Award all applicable Tax
Withholdings. Prior to the payment of an Actual Award or such earlier time as any Tax Withholdings are due, the Company Group is permitted to deduct or withhold, or require a Participant to remit to the Company Group, an amount sufficient to satisfy
any Tax Withholdings with respect to such Actual Award. 
 6.2 No Effect on Employment or Service. Neither the Plan nor any award
under the Plan will confer upon a Participant any right regarding continuing the Participant’s relationship as an Employee or other service provider to the Company Group, nor will they interfere with or limit in any way the right of the Company
Group or the Participant to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws. 

6.3 Forfeiture Events. 

6.3.1 Clawback Policy; Applicable Laws. All awards under the Plan will be subject to reduction, cancellation, forfeiture, or recoupment
in accordance with any clawback policy that the Company Group is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by
the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable laws. In addition, the Administrator may impose such other clawback, recovery or recoupment provisions with respect to an award under the Plan as the Administrator
determines necessary or appropriate, including without limitation a reacquisition right in respect of previously acquired cash, stock, or other property provided with respect to an award. Unless this Section 6.3.1 is specifically mentioned and
waived in a written agreement between a Participant and a member of the Company Group or other document, no recovery of compensation under a clawback policy will give the Participant the right to resign for “good reason” or
“constructive termination” (or similar term) under any agreement with a member of the Company Group. 

  
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 6.3.2 Additional Forfeiture Terms. The Administrator may specify when providing for
an award under the Plan that the Participant’s rights, payments, and benefits with respect to the award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise
applicable vesting or performance conditions of the award. Such events may include, without limitation, termination of the Participant’s status as an Employee for “cause” or any act by a Participant, whether before or after the
Participant’s status as an Employee terminates, that would constitute “cause.” 
 6.3.3 Accounting Restatements. If
the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who knowingly or
through gross negligence engaged in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the
Sarbanes-Oxley Act of 2002, will reimburse the Company Group the amount of any payment with respect to an award earned or accrued during the twelve (12) month period following the first public issuance or filing with the U.S. Securities and
Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement. 
 6.4
Successors. All obligations of the Company under the Plan, with respect to awards under the Plan, will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 
 6.5 Nontransferability of
Awards. No award under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and except as provided in Section 5.3. All rights with
respect to an award granted to a Participant will be available during his or her lifetime only to the Participant. 
 7. Amendment,
Termination, and Duration. 
 7.1 Amendment, Suspension, or Termination. The Administrator may amend or terminate the Plan, or any
part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award earned by such Participant. No
award may be granted during any period of suspension or after termination of the Plan. Any payments under this Plan, including the method of calculating such payments, do not create any contractual or other acquired right to participate in a similar
Plan, receive any similar payments (or benefits in lieu) or have the Participant’s payments calculated in a certain way in the future. The actual or anticipated value of any awards under the Plan will not be taken into account in assessing any
other employment benefits or termination payments, including any payments in lieu of notice or severance, except as required by applicable law. 

7.2 Duration of Plan. The Plan will commence on the date first adopted by the Board or the Compensation Committee of the Board, and
subject to Section 7.1 (regarding the Administrator’s right to amend or terminate the Plan), will remain in effect thereafter until terminated. 

  
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 8. Legal Construction. 

8.1 Gender and Number. Unless otherwise indicated by the context, any feminine term used herein also will include the masculine and any
masculine term used herein also will include the feminine; the plural will include the singular and the singular will include the plural. 

8.2 Severability. If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any
jurisdiction or as to any Participant, such invalidity, illegality, or unenforceability will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the invalid, illegal, or unenforceable provision had not been
included. 
 8.3 Governing Law. The Plan and all awards and all determinations made and actions taken under the Plan will be construed
in accordance with and governed by the laws of the State of Maryland, but without regard to its conflict of law provisions. For purposes of litigating any dispute that arises under this Plan, a Participant’s acceptance of an award is his or her
consent to the jurisdiction of the State of Maryland resides, and agreement that any such litigation will be conducted in Montgomery County, Maryland, or the federal courts for the United States for the District of Maryland, and no other courts,
regardless of where a Participant’s services are performed. Notwithstanding the foregoing, an Applicable Appendix may provide that, with respect to the Participant, the Plan and one or more awards and determinations actions taken under the Plan
will be construed in accordance with and governed by, the country where the Participant permanently resides or, to the fullest extent permitted by applicable law, such other jurisdiction as the Applicable Appendix may provide, and may provide for
consent to jurisdiction, and agreement that litigation will be conducted in, the country where the Participant permanently resides or, to the fullest extent permitted by applicable law, such other jurisdiction as the Applicable Appendix may provide.

 8.4 Bonus Plan. The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulations section 2510.3-2(c) and will be construed and administered in accordance with such intention. 
 8.5
Headings. Headings are provided herein for convenience only, and will not serve as a basis for interpretation or construction of the Plan. 

9. Compliance with Applicable Laws. Awards under the Plan (including without limitation the granting of such awards) will be subject to
all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

  
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 PARTICIPANT ACKNOWLEDGEMENT FORM 

You have been designated as a Participant who may be eligible to participate in the Employee Incentive Compensation Plan (“Plan”),
subject to meeting the terms of the Plan and this Acknowledgment Form. You must sign and return this Acknowledgment Form to become an eligible Participant in the Plan. Relevant details in relation to your participation in the Plan are set out
in the Plan. 
 By signing below, you acknowledge and agree that you received a copy of the Plan and have read and understand its terms. You acknowledge
that you have not relied upon any representations or statements made by the Company or any of its affiliates which are not specifically set out in the Plan. You understand that the Plan, your participation in the Plan and any awards made under the
Plan are discretionary and that the Company may amend, suspend, replace or terminate the Plan at any time and for any reason, in its sole discretion in accordance with the terms of the Plan to the full extent permitted under applicable law. 

 

									
	Name:	 	  
	 	        	 		 	
	Signature:	 	  
	 		 	Date:	 	  

  
 -9-EX-10.12

 Exhibit 10.12 

ARCELLX, INC. 
 OUTSIDE
DIRECTOR COMPENSATION POLICY 
 Adopted and approved January 13, 2022, and effective as of the Effective Date 

Arcellx, Inc. (the “Company”) believes that providing cash and equity compensation to members of its Board of Directors
(the “Board,” and members of the Board, the “Directors”) represents an effective tool to attract, retain and reward Directors who are not employees of the Company (the “Outside Directors”). This
Outside Director Compensation Policy (the “Policy”) is intended to formalize the Company’s policy regarding cash compensation and grants of equity awards to its Outside Directors. Unless otherwise defined herein, capitalized
terms used in this Policy will have the meaning given such term in the Company’s 2022 Equity Incentive Plan, as amended from time to time (or if such plan no longer is in use at the time of the grant of an equity award, the meaning given such
term or any similar term in the equity plan then in place under which such equity award is granted) (such applicable plan, the “Plan”). Each Outside Director will be solely responsible for any tax obligations incurred by such
Outside Director as a result of the equity awards and cash and other compensation such Outside Director receives under this Policy. 

Subject to Section 9 of this Policy, this Policy will be effective as of the date of the first sale of Shares (or other common equity
securities of the Company) to the general public upon the closing of an underwritten public offering (1) pursuant to an effective registration statement filed pursuant to Section 12(b) of the U.S. Securities Exchange Act of 1934, as
amended, and (2) immediately after which such securities (i.e., the Shares or other common equity securities of the Company) are registered on a national securities exchange (as defined under then-applicable United States federal securities
laws and regulations) (such date, the “Effective Date”). 
 1. CASH
COMPENSATION 
 a. Annual Cash Retainers for Service as Outside Director. Each
Outside Director will be paid a cash retainer of $40,000 per year. There are no per-meeting attendance fees for attending Board meetings or meetings of any committee of the Board. 

b. Additional Annual Cash Retainers for Service as Lead Independent Director, Committee Chair and Committee Member. 

i. As of the Effective Date, each Outside Director who serves as the Lead Independent Director, or chair or a member of a committee of the
Board will be eligible to earn additional annual fees as follows: 
  

					
	 Lead Independent Director:
	  	$	20,000	 
	 Audit Committee Chair:
	  	$	15,000	 
	 Member of Audit Committee:
	  	$	7,500	 
	 Compensation Committee Chair:
	  	$	10,000	 
	 Member of Compensation Committee:
	  	$	5,000	 
	 Nominating and Governance Committee Chair:
	  	$	8,000	 
	 Member of Nominating and Governance Committee:
	  	$	4,000	 

 For clarity, each Outside Director who serves as the chair of a committee will receive only the additional
annual fee as the chair of the committee and not the additional annual fee as a member of such committee while serving as such chair, provided that the Outside Director who serves as the Lead Independent Director will receive the annual fee as an
Outside Director and the additional annual fee as the Lead Independent Director. 
 c. Payments. Each annual cash retainer under this
Policy will be paid quarterly in arrears on a prorated basis to each Outside Director who has served in the relevant capacity at any point during the immediately preceding fiscal quarter of the Company (“Fiscal Quarter”), and such
payment will be made no later than 30 days following the end of such immediately preceding Fiscal Quarter. For purposes of clarity, an Outside Director who has served as an Outside Director, as a member of an applicable committee (or chair thereof)
during only a portion of the relevant Fiscal Quarter will receive a prorated payment of the quarterly payment of the applicable annual cash retainer(s), calculated based on the number of days during such Fiscal Quarter such Outside Director has
served in the relevant capacities. For purposes of clarity, an Outside Director who has served as an Outside Director, as a member of an applicable committee (or chair thereof), as applicable, from the Effective Date through the end of the Fiscal
Quarter containing the Effective Date (the “Initial Period”) will receive a prorated payment of the quarterly payment of the applicable annual cash retainer(s), calculated based on the number of days during the Initial Period that
such Outside Director has served in the relevant capacities. 
 2. EQUITY
COMPENSATION 
 Outside Directors will be eligible to receive all types of Awards (except Incentive
Stock Options) under the Plan, including discretionary Awards not covered under this Policy. All grants of Awards to Outside Directors pursuant to Section 2 of this Policy will be automatic and nondiscretionary, except as otherwise
provided herein, and will be made in accordance with the following provisions: 
 a. No Discretion. No person will have any discretion
to select which Outside Directors will be granted any Awards under this Policy or to determine the number of Shares to be covered by such Awards, except as provided in Sections 2(d)(vi) and 9 below. 

b. Initial Awards. Each individual who first becomes an Outside Director following the Effective Date will be granted an award of
Options (an “Initial Award”) covering a number of Shares having a Value (as defined below) of $600,000, with any resulting fraction rounded down to the nearest whole Share. The Initial Award will be granted automatically on the
first Trading Day on or after the date on which such individual first becomes an Outside Director (the first date as an Outside Director, the “Initial Start Date”), whether through election by the Company’s stockholders or
appointment by the Board to fill a vacancy. If an individual was a member of the Board and also an employee, becoming an Outside Director due to termination of employment will not entitle the Outside Director to an Initial Award. Each Initial Award
will be scheduled to vest as follows: One-third (1/3rd) of the Shares subject to the Initial Award will be scheduled to vest each year following the grant date on the anniversary of the grant date, in each
case subject to the Outside Director continuing to be an Outside Director through the applicable vesting date. 

  
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 c. Annual Award. On the first Trading Day immediately following each Annual Meeting
of the Company’s stockholders (an “Annual Meeting”) that occurs after the Effective Date, each Outside Director automatically will be granted an award of Options (an “Annual Award”) covering a number of Shares
having a Value of $300,000; provided that the first Annual Award granted to an individual who first becomes an Outside Director following the Effective Date will have a Value equal to the product of (A) $300,000 multiplied by (B) a fraction,
(i) the numerator of which is the number of fully completed days between the applicable Initial Start Date and the date of the first Annual Meeting to occur after such individual first becomes an Outside Director, and (ii) the denominator
of which is 365; and provided further that any resulting fraction shall be rounded down to the nearest whole Share. Each Annual Award will be scheduled to vest as follows: One hundred percent (100%) of the Shares subject to the Annual Award will be
scheduled to vest upon the earlier of the one year anniversary of the grant date or the next Annual Meeting that occurs following the grant date, in each case subject to the Outside Director continuing to be an Outside Director through the
applicable vesting date. 
 d. Additional Terms of Initial Awards and Annual Awards. The terms and conditions of each Initial Award
and Annual Award will be as follows: 
 i. Each Option granted pursuant to this Policy will be a nonstatutory stock option for U.S. tax
purposes. 
 ii. The term of each Option granted pursuant to this Policy will be ten (10) years, subject to earlier
termination as provided in the Plan.
 iii. The exercise price per Share of each Option granted pursuant to this Policy
will be equal to 100% of the Fair Market Value per Share on such Option’s grant date.
 iv. Each Initial Award and
Annual Award will be granted under and subject to the terms and conditions of the Plan and the applicable form of Award Agreement previously approved by the Board or its Compensation Committee, as applicable, for use thereunder. 

v. For purposes of this Policy, “Value” means the grant date fair value as determined in accordance with U.S. generally
accepted accounting principles, or such other methodology the Board or any committee of the Board designed by the Board with appropriate authority (the “Designated Committee”), as applicable, may determine prior to the grant of the
applicable Award becoming effective. 
 vi. Revisions. The Board or the Designated Committee, as applicable and in its discretion,
may change and otherwise revise the terms of Initial Awards and Annual Awards granted under this Policy, including, without limitation, the number of Shares subject thereto and type of Award. 

3. OTHER COMPENSATION AND BENEFITS 

Outside Directors also may be eligible to receive other compensation and benefits, as may be determined by the Board or its Designated
Committee, as applicable, from time to time. 

  
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 4. CHANGE IN CONTROL

 In the event of a Change in Control, each Outside Director will fully vest in his or her outstanding Company equity awards as of
immediately prior to a Change in Control, including any Initial Awards and Annual Awards, provided that the Outside Director continues to be an Outside Director through the date of the Change in Control. 

5. ANNUAL COMPENSATION LIMIT 

No Outside Director may be granted Awards with Values, and be provided cash retainers or fees, with amounts that, in any Fiscal Year, in the
aggregate, exceed $750,000, provided that, in the Fiscal Year containing an Outside Director’s Initial Start Date, such limit will be increased to $1,000,000. Any Awards or other compensation provided to an individual (a) for his or her
services as an Employee, or for his or her services as a Consultant other than as an Outside Director, or (b) prior to the Effective Date, will be excluded for purposes of the foregoing limit. 

6. TRAVEL EXPENSES  

Each Outside Director’s reasonable, customary, and properly documented,
out-of-pocket travel expenses to meetings of the Board and any of its committees, as applicable, will be reimbursed by the Company. 

7. CODE SECTION 409A 

In no event will cash compensation or expense reimbursement payments under this Policy be paid after the later of (a) the fifteenth (15th) day of the third (3rd) month following the end of the Company’s taxable year in which the compensation is earned or expenses are incurred,
as applicable, or (b) the fifteenth (15th) day of the third (3rd) month following the end of the calendar year in which the compensation
is earned or expenses are incurred, as applicable, in compliance with the “short-term deferral” exception under Code Section 409A. It is the intent of this Policy that this Policy and all payments hereunder be exempt or excepted from
or otherwise comply with the requirements of Code Section 409A so that none of the compensation to be provided hereunder will be subject to the additional tax imposed under Code Section 409A, and any ambiguities or ambiguous terms herein
will be interpreted to be so exempt or comply. In no event will the Company Group have any responsibility, liability or obligation to reimburse, indemnify, or hold harmless an Outside Director or any other person for any taxes imposed, or other
costs incurred, as a result of Code Section 409A. 
 8. STOCKHOLDER APPROVAL

 The initial adoption of this Policy will be subject to approval by the Company’s stockholders prior to the Effective Date. Unless
otherwise required by applicable law, following such approval, the Policy will not be subject to approval by the Company’s stockholders, including, for the avoidance of doubt, as a result of or in connection with an action taken with respect to
this Policy as contemplated in Section 9. 

  
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 9. REVISIONS 

The Board may amend, alter, suspend or terminate this Policy at any time and for any reason. No amendment, alteration, suspension or
termination of this Policy will materially impair the rights of an Outside Director with respect to compensation that already has been paid or awarded, unless otherwise mutually agreed in writing between the Outside Director and the Company.
Termination of this Policy will not affect the Board’s or the Designated Committee’s ability to exercise the powers granted to it with respect to Awards granted pursuant to this Policy prior to the date of such termination, including
without limitation such applicable powers set forth in the Plan. 
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