Document:

Exhibit 10.2

 

KineMed, Inc.

a Delaware corporation

2001 STOCK OPTION PLAN

 

		1.	Purposes of the Plan. The purposes of this Stock Option Plan are to attract and retain the
best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company's business. Options granted under the Plan may be Incentive Stock Options
or Non-statutory Stock Options, as determined by the Administrator at the time of grant.

 

		2.	Definitions. As used herein, the following definitions shall apply:

 

		A.	"Administrator" means the Board or any of its Committees as shall be administering the
Plan, in accordance with Section 4 hereof.

 

		B.	"Applicable Laws" means the legal requirements relating to the administration of stock
option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options
are granted under the Plan.

 

		C.	"Board" means the Board of Directors of the Company.

 

		D.	"Code" means the Internal Revenue Code of 1986, as amended.

 

		E.	"Committee" means a committee of Directors appointed by the Board in accordance with
Section 4 hereof.

 

		F.	"Common Stock" means the Common Stock of the Company.

 

		G.	"Company" means KineMed, Inc., a Delaware corporation.

 

		H.	"Consultant" means any person (other than an Employee or a Director, solely with respect
to rendering services in such person's capacity as a Director) who is engaged by the Company or any Parent or Subsidiary to render
consulting or advisory services and is compensated for such services.

 

		I.	"Director" means a member of the Board of Directors of the Company.

 

		J.	"Employee" means an individual over whom the Company exercises or has the right to exercise
sufficient control to establish an employer-employee relationship based on common law as illustrated in case law and currently
under U.S. Internal Revenue Service Revenue Ruling(s). Accordingly, a grantee meets the definition of an employee if the Company
consistently represents that individual to be an employee under common law. A nonemployee director does not satisfy this definition
of employee. Nevertheless, nonemployee directors acting in their role as members of a board of directors are treated as employees
if those directors were (a) elected by the employer's shareholders or (b) appointed to a board position that will be filled by
shareholder election when the existing term expires. However, that requirement applies only to awards granted to nonemployee directors
for their services as directors.

 

	KineMed, Inc. – 2001 Stock Option Plan
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A Service Provider shall not cease
to be an Employee in the case of: (i) any leave of absence approved by the Company, or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such
leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive
Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes
as a Non-statutory Stock Option.

 

		K.	"Exchange Act" means the Securities Exchange Act of 1934, as amended.

 

		L.	"Fair Market Value" means, as of any date, the value of Common Stock determined as follows:

 

		(i)	If the Common Stock is listed on any established stock exchange or a national market system, including
without limitation the Nasdaq National Market or The Nasdaq Small Cap Market of The Nasdaq Stock Market, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source
as the Administrator deems reliable;

 

		(ii)	If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the last
market trading day prior to the day of determination, or;

 

		(iii)	In the absence of an established market for the Common Stock, the Fair Market Value thereof shall
be determined in good faith by the Administrator.

 

		M.	"Incentive Stock Option" means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code.

 

		N.	"Non-statutory Stock Option" means an Option not intended to qualify as an Incentive
Stock Option.

 

		O.	"Officer" means a person who is an officer of the Company within the meaning of Section
16 of the Exchange Act and the rules and regulations promulgated thereunder.

 

		P.	"Option" means a stock option granted pursuant to the Plan.

 

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		Q.	"Option Agreement" means an agreement between the Company and an Optionee evidencing
the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan.

 

		R.	"Option Exchange Program" means a program whereby outstanding Options are exchanged for
Options with a lower exercise price.

 

		S.	"Optioned Stock" means the Common Stock subject to an Option.

 

		T.	"Optionee" means the holder of an outstanding Option granted under the Plan.

 

		U.	"Parent" means a "parent corporation," whether now or hereafter existing, as
defined in Section 424(e) of the Code.

 

		V.	"Plan" means this 2001 Stock Option Plan.

 

		W.	"Section 16(b)" means Section 16(b) of the Securities Exchange Act of 1934, as amended.

 

		X.	"Service Provider" means an Employee, Director or Consultant.

 

		Y.	"Share" means a share of the Common Stock, as adjusted in accordance with Section 11
below.

 

		Z.	"Subsidiary" means a "subsidiary corporation," whether now or hereafter existing,
as defined in Section 424(f) of the Code.

 

		3.	Stock Subject to the Plan. Subject to the provisions of Section 11 of the Plan, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is twenty percent of fully-diluted shares. The Shares
may be authorized, but unissued, or reacquired Common Stock.

 

If an Option expires or becomes
unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, those Shares not
purchased that were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated);
provided, however, that Shares that have actually been issued under the Plan shall not be returned to the Plan and shall not become
available for future distribution under the Plan, except that if unvested Shares are repurchased by the Company at their original
purchase price, such Shares shall become available for future grant under the Plan.

 

		4.	Administration of the Plan.

 

		A.	Procedure. The Plan shall be administered by the Board or a Committee appointed by the Board, which
Committee shall be constituted to comply with Applicable laws.

 

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		B.	Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee,
the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion, to
do the following:

 

		(i)	determine the Fair Market Value;

 

		(ii)	select the Service Providers to whom Options may from time to time be granted hereunder;

 

		(iii)	determine the number of shares of Common Stock to be covered by each such award granted hereunder;

 

		(iv)	approve forms of agreement for use under the Plan;

 

		(v)	determine the terms and conditions of any option granted hereunder;

 

		(vi)	determine whether and under what circumstances an Option may be settled in cash under subsection
9(e) instead of Common Stock;

 

		(vii)	reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market
Value of the Common Stock covered by such Option has declined since the date the Option was granted;

 

		(viii)	institute an Option Exchange Program;

 

		(ix)	prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations
relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

 

		(x)	allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued upon exercise of an Option that number of Shares having a Fair Market Value equal to the amount required
to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be
withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form
and under such conditions as the Administrator may deem necessary or advisable; and

 

		(xi)	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan.

 

		C.	Effect of Administrator's Decision. All decisions, determinations and interpretations of the Administrator
shall be final and binding on all Optionees.

 

		5.	Eligibility.

 

		A.	Non-statutory Stock Options may be granted to Service Providers. Incentive Stock Options may be
granted only to Employees.

 

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		B.	Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or
a Non-statutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of
the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar
year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Non-statutory
Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is
granted.

 

		C.	The Plan shall not confer upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in any way with his or her right or the Company's right
to terminate such relationship at any time, with or without cause.

 

		6.	Term of Plan. The Plan shall become effective upon its adoption by the Board. It shall continue
in effect for a term of ten (10) years unless sooner terminated under Section 13 of the Plan.

 

		7.	Term of Option. The term of each Option shall be stated in the Option Agreement; provided,
however, that the term shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option
granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the
date of grant or such shorter term as may be provided in the Option Agreement.

 

		8.	Option Exercise Price and Consideration.

 

		A.	The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall
be such price as is determined by the Administrator, but shall be subject to the following:

 

		(i)	In the case of an Incentive Stock Option

 

(a)    granted
to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the exercise price shall be no less than
110% of the Fair Market Value per Share on the date of grant.

 

(b)    granted
to any Employee other than an Employee described in the preceding subparagraph, the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

 

		(ii)	In the case of a Non-statutory Stock Option

 

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(a)    granted
to a Service Provider who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of the grant.

 

(b)    granted
to any Service Provider other than a Service Provider described in the preceding subparagraph, the exercise price shall be no less
than 85% of the Fair Market Value per Share on the date of grant.

 

		(iii)	Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than
100% of Fair Market Value on the date of grant pursuant to a merger or other corporate transaction.

 

		B.	The consideration to be paid for the Shares to be issued upon exercise of an Option, including
the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined
at the time of grant) and may consist entirely of (1) cash, (2) check, (3) promissory note, (4) other Shares which (x) in the case
of Shares acquired upon exercise of an Option have been owned by the Optionee for more than six months on the date of surrender
and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, (5) consideration received by the Company under a formal cashless exercise program adopted by the Company
in connection with the Plan, or (6) any combination of the foregoing methods of payment. In making its determination as to the
type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected
to benefit the Company.

 

		9.	Exercise of Option.

 

		A.	Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable
according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth
in the Option Agreement, but in no case at a rate of less than 20% per year over five (5) years from the date of grant. An Option
may not be exercised for a fraction of a Share. An Option shall be deemed exercised when the Company receives: (i) written or electronic
notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment
for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment
authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall
be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option
is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares
are issued, except as provided in Section 11 of the Plan.

 

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Exercise of an Option in any manner
shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option,
by the number of Shares as to which the Option is exercised.

 

		B.	Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider,
other than upon the Optionee's death or Disability, the Optionee may exercise his or her Option within such period of time (of
at least thirty (30) days) as is specified in the Option Agreement to the extent that the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of
a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion
of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the
time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

		C.	Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the Optionee's
disability, the Optionee may exercise an Option to the extent the Option is vested on the date of termination, but only within
twelve (12) months from the date of such termination (and in no event later than the expiration date of the term of such Option
as set forth in the Option Agreement). If such disability is not a "disability" as such term is defined in Section 22(e)(3)
of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Non-statutory Stock Option on the day three months and one day
following such termination. If, on the date of termination, the Optionee is not vested as to the entire Option, the Shares covered
by the unvested portion of the Option shall revert to the Plan. If, after termination, the Option is not exercised within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

		D.	Death of Optionee. If an Optionee dies while a Service Provider, the Option may be exercised at
any time within twelve (12) months following the date of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant) to the extent vested on the date of death. If, at the time of death, the Optionee is not vested
as to the entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. The Option may be exercised
by the executor or administrator of the Optionee's estate or, if none, by the person(s) entitled to exercise the Option under the
Optionee's will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

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		E.	Buyout Provisions. The Administrator may offer, at any time, to buy out for a payment in cash or
Shares, an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to
the Optionee at the time that such offer is made.

 

		10.	Non-Transferability of Options. Options may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during
the lifetime of the Optionee, only by the Optionee.

 

		11.	Adjustments Upon Changes in Capitalization or Merger.

 

		A.	Changes in Capitalization. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized
for issuance under the Plan, but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation
or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of
issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except
as expressly provided herein, 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 made with respect to, the number or price of
shares of Common Stock subject to an Option.

 

		B.	Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company,
the Administrator shall notify the Optionee at least fifteen (15) days prior to such proposed action. To the extent it has not
been previously exercised, the Option will terminate immediately prior to the consummation of such proposed action.

 

		C.	Change-in-Control. In the event of a merger, consolidation or reorganization with another corporation
in which the Company is not the surviving entity or in the event of the sale of all or substantially all of the assets of the company
to any person or entity other than a wholly owned subsidiary ("Change-in-Control"), the Committee, in its discretion,
shall take one or more of the following actions with respect to outstanding Option under the Plan and Shares purchased under the
Plan prior to vesting: (a) fully vest all Options outstanding under the Plan; (b) fully vest all Shares purchased under the Plan
prior to vesting by canceling all options in favor of the Company to repurchase such Shares; (c) arrange to have outstanding Options
assumed by the successor entity or replaced with a stock option of equivalent value to purchase stock of such successor entity
with acceleration of vesting; or (d) cancel all outstanding Options as of the effective date of the Change-in-Control; provided
that prior written notice of such cancellation is given to Optionees and Optionees have the right to exercise all Options prior
to such Change-in-Control without granting the successor entity any right to repurchase Shares not then fully vested.

 

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		12.	Date of Grant. The date at which an employer and an employee reach a mutual understanding
of the key terms and conditions of a share-based payment award. The employer becomes contingently obligated on the grant date to
issue equity instruments or transfer assets to an employee who renders the requisite service. Awards made under an arrangement
that is subject to shareholder approval are not deemed to be granted until that approval is obtained unless approval is essentially
a formality (or perfunctory), for example, if management and the members of the board of directors control enough votes to approve
the arrangement. Similarly, individual awards that are subject to approval by the board of directors, management, or both are not
deemed to be granted until all such approvals are obtained. The grant date for an award of equity instruments is the date that
an employee begins to benefit from, or be adversely affected by, subsequent changes in the price of the employer's equity shares.

 

The date of grant of an Option shall, for all purposes,
be the date on which the Administrator makes the determination granting such Option, or such other date as is determined by the
Board. Notice of the determination shall be given to each Service Provider to whom an Option is so granted within a reasonable
time after the date of such grant.

 

		13.	Amendment and Termination of the Plan.

 

		A.	Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

 

		B.	Stockholder Approval. The Board shall obtain stockholder approval of any Plan amendment to the
extent necessary and desirable to comply with Applicable Laws.

 

		C.	Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the
Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which
agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such
termination.

 

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		14.	Conditions Upon Issuance of Shares.

 

		A.	Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option unless the exercise
of such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

 

		B.	Investment Representations. As a condition to the exercise of an Option, the Administrator may
require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required.

 

		15.	Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance
and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained.

 

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

 

		17.	Stockholder Approval. The Plan shall be subject to approval by the stockholders of the Company
within twelve (12) months after the date the Plan is adopted. Such Stockholder approval shall be obtained in the manner and to
the degree required under Applicable Laws.

 

END

 

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EXHIBIT A

KineMed, Inc.

2001 STOCK PLAN

EXERCISE NOTICE

 

KineMed, Inc.

Attention: CEO

5980 Horton Street, Suite 400

Emeryville, CA 94608-2012

 

1.     Exercise
of Option. Effective as of today, ___________, 20_____ the undersigned ("Optionee") hereby elects to exercise Optionee's
option to purchase __________ shares of the Common Stock (the "Shares") of KineMed, Inc., a Delaware corporation (the
"Company") under and pursuant to the 2001 Stock Plan (the "Plan") and the Stock Option Agreement dated ________,
20__ (the "Option Agreement").

 

2.     Delivery
of Payment. Purchaser herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement.

 

3.     Representations
of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

 

4.     Rights
as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares shall be issued to the Optionee as soon
as practicable after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date
is prior to the date of issuance except as provided in Section 11 of the Plan.

 

5.     Company's
Right of First Refusal. Before any of the Shares held by Optionee or any transferee (either being sometimes referred to
herein as the "Holder") may be sold or otherwise transferred (including transfer by gift or operation of law), the Company
or its assignee(s) shall have a right of first refusal to purchase such Shares on the terms and conditions set forth in this Section
(the "Right of First Refusal").

 

		(a)	Notice of Proposed Transfer. The Holder of the Shares shall deliver to the Company a written notice
(the "Notice") stating: (i) the Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the name
of each proposed purchaser or other transferee ("Proposed Transferee"); (iii) the number of Shares to be transferred
to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer
the Shares (the "Offered Price"), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s).

 

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		(b)	Exercise of Right of First Refusal. At any time within thirty (30) days after receipt of the Notice,
the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of
the Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price determined in accordance
with subsection (c) below.

 

		(c)	Price. The purchase price ("Purchase Price") for the Shares purchased by the Company
or its assignee(s) under this Section shall be the Offered Price. If the Offered Price includes consideration other than cash,
the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in good faith.

 

		(d)	Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s),
in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the
case of repurchase by an assignee, to the assignee), or by any combination thereof within 30 days after receipt of the Notice or
in the manner and at the times set forth in the Notice.

 

		(e)	Right to Transfer. If all of the Shares proposed in the Notice to be transferred to a given Proposed
Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise
transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer
is consummated within 120 days after the date of the Notice, that any such sale or other transfer is effected in accordance with
any applicable securities laws and that the Proposed Transferee agrees in writing that the provisions of this Section shall
continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred
to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees
shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

 

		(f)	Exception for Certain Family Transfers. Anything to the contrary contained in this Section notwithstonding,
the transfer of any or all of the Shares during the Optionee’s lifetime or on the Optionee's death by will or intestacy to
the Optionee's immediate family or a trust for the benefit of the Optionee's immediate family shall be exempt from the provisions
of this Section. "Immediate Family" as used herein shall mean spouse, lineal descendant or antecedent, father, mother,
brother or sister. In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to
the provisions of this Section, and there shall be no further transfer of such Shares except in accordance with the terms of this
Section.

  

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		(g)	Termination of Right of First Refusal. The Right of First Refusal shall terminate as to any Shares
upon the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended.

 

6.     Tax
Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee's purchase or disposition
of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection
with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 

7.     Restrictive
Legends and Stop-Transfer Orders.

		(a)	Legends. Optionee understands and agrees that the Company shall cause the legends set forth below
or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with
any other legends that may be required by the Company or by state or federal securities laws:

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT') OR QUALIFIED OR REGISTERED UNDER
ANY STATE SECURITIES LAWS. THESE SHARES ARE "RESTRICTED SECURITIES" AS DEFINED IN RULE 144 UNDER THE ACT. THESE SHARES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALES AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED,
OR OTHERWISE TRANSFERRED IN ANY MANNER ABSENT EITHER AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE ACT AND ALL
APPLICABLE STATE SECURITIES LAWS OR THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
(SUCH SATISFACTION BEING TO THE FORM AND SUBSTANCE OF THE OPINION AS WELL AS THE COUNSEL RENDERING THE OPINION) THAT REGISTRATION
AND/OR QUALIFICATION IS NOT REQUIRED.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S)
AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED
AT THE PRINCIPAL OFFICE OF THE ISSUER SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE
SHARES.

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 13 of 17

 

    	 

    	 

    

 

		(b)	Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

		(c)	Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares
that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have
been so transferred.

 

8.     Successors
and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement
shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns.

 

9.     Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or by the Company forthwith to the Administrator
which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final
and binding on all parties.

 

10.     Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be enforceable in accordance with its terms and shall be interpreted
as if such provisions were excluded.

 

11.     Further
Assurances. From time to time before or after the delivery of the Shares, the parties shall, at the reasonable request of one another
and without further consideration, execute and deliver or cause to be executed and delivered such instruments, and take such other
actions as any party may reasonably request in order fully to effectuate the transactions contemplated by this Agreement.

 

12.     Notices.
Any and all notices or other communications required or permitted by this Agreement or by law to be served on or given to a party
hereto by the other party shall be deemed given: (a) when personally delivered, (b) one (1) business day after deposit with United
Parcel Service, Federal Express or other courier for overnight delivery, charges prepaid, or (c) after written confirmation from
the fax machine of the party sending the notice that the notice has been transmitted successfully, in each case addressed to the
following address or faxed to the following number:

 

	If to the Company:	KineMed, Inc.
	Attention: CEO	 
	5980 Horton Street, Suite 400	 
	Emeryville, CA 94608	 
	Fax: (510) 655-6506	 

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 14 of 17

  

    	 

    	 

    

  

If to Optionee, at the address or to the
fax number set forth on the signature page of the Stock Option Agreement. Either party may change the address or fax number by
written notice to the other party.

 

13.     Dispute
Resolution - Mandatory Mediation and Arbitration as EXCLUSIVE Remedies. The parties agree that all claims, disputes or controversies
arising out of or relating to this Agreement shall be resolved and determined exclusively under the mandatory mediation and arbitration
procedures described below. Before filing for mandatory and binding arbitration respect to any dispute, controversy or claim
arising out of or relating to this Agreement, the parties shall be obligated first to seek by good faith efforts to resolve such
matter by mediation. As a condition precedent to filing for mandatory arbitration, a Notice of Claim shall be sent to the other
party. The Notice of Claim shall specify the nature of the dispute, controversy and (or) claim and shall include the name of a
proposed independent third party mediator or organization of mediators who shall be located in either Alameda County or the City
and County of San Francisco, CA. The party receiving the Notice of Claim shall within fifteen days thereafter either consent to
mediate the matter in front of the mediator or organization of mediators so proposed or suggest an alternative mediator or organization
of mediators likewise so located. The parties shall undertake good faith efforts for a period of thirty days thereafter to appoint
a mediator and submit the dispute, controversy and (or) claims to mediation. The mediation shall be held in either Alameda County
or the City and County of San Francisco, CA notwithstanding that certain duties of Employee may be performed elsewhere. If the
mediation attempt is unsuccessful, either party thereafter shall be entitled to seek binding arbitration. The parties by mutual
consent may elect to have the mediator act as the neutral arbitrator to render mandatory and binding decision. If either party
objects to having the mediator act as the binding arbitrator, the dispute will be referred to the American Arbitration Association
("AAA") for appointment of a neutral arbitrator for a mandatory final and binding determination pursuant to the Commercial
Rules (the "Rules") of the AAA. Such arbitration shall be administered by the AAA and shall be held in either Alameda
County or the City and County of San Francisco, CA. Binding arbitration shall be initiated by a written request for arbitration
delivered by one party to the other party and to the AAA. A neutral arbitrator will be selected in accordance with the Rules. The
hearing will be commenced within 60 days of the selection of the arbitrators. Pending the hearing, the parties shall be entitled
to undertake discovery proceedings, including the taking of depositions, in accordance with California Code of Civil Procedure
Section 1283.05, the provisions of which are hereby incorporated into this Agreement. Within fifteen (15) days following the closing
of the hearing, a final decision will be made concerning the disputed matter, which decision and the basis thereof will be in writing
and delivered to the parties. The final decision of the arbitrator will be binding on the parties and enforceable in any court
of law having jurisdiction thereof. Pending final decision of the disputed matter, the parties will continue diligently to observe
and perform the terms of this Agreement. In such arbitration, (i) the prevailing party will be entitled to recover his or its reasonable
attorneys' fees and costs, and (ii) the non-prevailing party shall responsible for the costs of arbitration (including, but not
limited to the costs of the arbitrator and AAA fees) as and to the extent determined by the arbitrator.

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 14 of 17

 

    	 

    	 

    

 

THE PARTIES HAVE READ AND UNDERSTAND THAT
THIS SECTION SETS OUT MANDATORY MEDIATION AND ARBITRATION PROCEDURES TO RESOLVE ALL DISPUTES HEREUNDER BY SIGNING THIS AGREEMENT,
EACH PARTY AGREES, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR CONNECTED WITH THIS
AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION AND
THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EACH PARTY'S RIGHT TO A JURY TRIAL.

 

14.     Governing
Law. Matters relating solely to corporate law to the extent set forth in the General Corporation Law of the State of Delaware shall
be governed by the laws of Delaware. All other matters, such as the interpretation of the rights granted and the obligations of
the parties under this Agreement, will be governed by the laws of the State of California as such laws are applied to agreements
between California residents entered into and to be performed entirely within California.

 

15.     Entire
Agreement. The 2001 Stock Plan and Stock Option Agreement are incorporated herein by reference. This Exercise Notice, the 2001
Stock Plan, the Stock Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company
and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee's interest except by
means of a writing signed by the Company and Optionee.

 

16.    Counterparts;
Facsimile Signatures. This Agreement may be executed in counterpart originals, each of which together shall constitute one
binding agreement. Signatures on a counterpart copy of this page shall be deemed to incorporate all of the provisions of this Agreement.
Each party may rely on a signed counterpart copy of this Agreement or an executed counterpart of this signature page with the same
effect as if one originally executed complete document were delivered to such party. The facsimile signature of any party shall
be deemed to be the party=s binding signature to this Agreement; thus, a signed counterpart of this signature page faxed to the
other party may be relied upon by the receiving party with the same effect as if a complete originally executed Agreement were
delivered and received by such party.

 

	Submitted by: 	Accepted by Company:
	OPTIONEE:	KineMed, Inc.
	 	 
	Signature:	By:
	Print Name:	Its:
	Address:	Date Received:

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 15 of 17

 

    	 

    	 

    

 

EXHIBIT B

 

INVESTMENT REPRESENTATION STATEMENT

 

	OPTIONEE:	(Name)
	COMPANY:	KineMed, Inc., a Delaware corporation 
	SECURITY:	COMMON STOCK:
	AMOUNT:	Shares 
	DATE:	 

 

In connection with the purchase of the above-listed
Security, the undersigned Optionee represents to the Company the following:

 

(1)         Optionee
is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for investment for
Optionee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within
the meaning of the Securities Act of 1933, as amended (the "Securities Act").

 

(2)         Optionee
acknowledges and understands that the Securities constitute "restricted securities" under the Securities Act and have
not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among
other things, the bona fide nature of Optionee's investment intent as expressed herein. In this connection, Optionee understands
that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee's
representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified
under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period
of one year or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely
unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Optionee
further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that
the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless
they are registered or such registration is not required in the opinion of counsel satisfactory to the Company, and unless there
is compliance as required under applicable state securities laws.

 

(3)         Optionee
is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit
limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the
time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the
event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule
701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being
made through a broker in an unsolicited "broker's transaction" or in transactions directly with a market maker (as said
term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public
information about the Company, (3) the amount of Securities being sold during any three month period not exceeding the limitations
specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable.

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 16 of 17

 

    	 

    	 

    

 

In the event that the Company does not qualify
under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to
the provisions of Rule 144, which requires the resale to occur not less than two years after the later of the date the Securities
were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and,
in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less
than three years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

 

(4)         Optionee
further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding
the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion
that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such
offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.
Optionee understands that no assurances can be given that any such other registration exemption will be available in such
event.

 

	Signature of Optionee:	 
	 	 
	 	 
	 	 
	Date:	 	,20	  	 

 

	KineMed, Inc. – 2001 Stock Option Plan
	Page 17 of 17Exhibit 10.3

 

KineMed, Inc.

2001 STOCK OPTION PLAN

STOCK OPTION AGREEMENT

 

Unless otherwise defined
herein, the terms defined in the 2001 Stock Option Plan shall have the same defined meanings in this Stock Option
Agreement.

 

		1.	NOTICE OF STOCK OPTION GRANT

 

	Optionee:	 	Company:
	______________	 	KineMed, Inc.
	______________	 	5980 Horton Street, Suite 400
	______________	 	Emeryville, CA 94608-2012

 

Company hereby grants to Optionee an Option
to purchase Common Stock of the Company, $.001 par value per share, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

 

	Option Number:	______________
	Date of Grant:	______________
	Vesting Commencement Date:	______________
	Exercise Price per Share:	______________
	Total Number of Shares Granted:	______________ (_____) shares of Common

Stock of KineMed, Inc., a Delaware corporation, par

value $.001 per share
	Total Exercise Price:	______________
	 	($______________)
	Type of Option:	______________
	Term/Expiration Date:	______________

 

Vesting Schedule: This Option shall
vest, in whole or in part, according to the following vesting schedule: ____________________________________ (the “First
Vesting Date”) provided on such date Optionee is providing services to the Company either as an employee or as
an independent contractor under a written consulting contract (“Service Provider”). In the event Optionee ceases
to be a Service Provider prior to the First Vesting Date, no shares shall vest, and the rights granted hereunder shall cease.
In the event Optionee ceases to be a Service Provider after the First Vesting Date, but prior to the end of forty-eight (48)
full calendar months following the First Vesting Date, further vesting of the Total Option Shares then remaining unvested
shall cease, and the Option granted herein shall apply only to the number of shares vested up to the last day of the full calendar
month preceding Optionee’s cessation as a Service Provider.

 

Termination Period: This Option
shall be exercisable with respect to vested shares for thirty (30) days after Optionee ceases to be a Service Provider.
If the Option is not duly exercised within such period, all option rights hereunder shall cease and terminate. Upon Optionee’s
death or disability, this Option may be exercised for such longer period as provided in the Plan. In no event may Optionee
exercise this Option after the Term/Expiration Date as provided above.

 

    	1

    	 

    

 

		2.	AGREEMENT

 

A.     Grant of Option: The Plan
Administrator of the Company hereby grants to the Optionee named above in the Notice of Stock Option Grant (the “Optionee”),
an option (the “Option”) to purchase the number of Shares set forth in the Notice of Grant, at the exercise price
per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the terms and conditions
of the Plan, which are incorporated herein by reference. Subject to Section 13(c) of the Plan, in the event of a conflict between
the terms and conditions of the Plan and this Stock Option Agreement, the terms and conditions of the Plan shall prevail.

 

If designated in the
Notice of Grant as an Incentive Stock Option (“ISO”),this Option is intended to qualify as an Incentive Stock Option
as defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section
422(d), this Option shall be treated as a Non- statutory Stock Option (“NSO”).

 

		B.	Exercise of Option.

 

(i)     Right to
Exercise. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice
of Grant and with the applicable provisions of the Plan and this Option Agreement. Optionee may elect to exercise the Option
and pay the consideration for the Shares prior to the date Optionee is fully vested under the Vesting Schedule. In such
case, concurrently with the delivery of the Shares, Optionee shall execute and deliver to the Company an option agreement
in favor of the Company granting the Company the option to repurchase the Shares, or a portion thereof based on the
Vesting Schedule, to the extent Optionee is no longer with the Company in the time frames and on the terms described
in the Vesting Schedule. The consideration for the repurchase shall be the same consideration paid by Optionee to Company
upon exercise of the Option.

 

(ii)     Method
of Exercise. This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A (the
“Exercise Notice”) which shall state the election to exercise the Option, the number of Shares with respect to
which the Option is being exercised, and such other representations and agreements as may be required by the Company.
The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option shall
be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate
Exercise Price.

 

No Shares shall be
issued pursuant to the exercise of an Option unless such issuance and such exercise comply with Applicable laws. Assuming
such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which
the Option is exercised with respect to such Shares.

 

C.   Optionee’s Representations.
In the event the Shares have not been registered under the Securities Act of 1933, as amended, at the time this
Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion
of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit
B, and shall read the applicable rules of the Commissioner of Corporations attached to such Investment Representation
Statement.

 

    	2

    	 

    

 

D.   Lock-Up Period. Optionee hereby
agrees that, if so requested by the Company or any representative of the underwriters (the “Managing Underwriter”)
in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall
not sell or otherwise transfer any Shares or other securities of the Company during the 180- day period (or such other period
as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the “Market Standoff
Period”) following the effective date of a registration statement of the Company filed under the Securities Act.
Such restriction shall apply only to the first registration statement of the Company to become effective under the Securities Act
that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the
Securities Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions
until the end of such Market Standoff Period.

 

E.   Method of Payment. Payment
of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

 

(i)     Cash or check;

 

(ii)     Consideration
received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or

 

(iii)     Surrender
of other Shares which, (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee
for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal
to the aggregate Exercise Price of the Exercised Shares.

 

F.   Restrictions on Exercise.
This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance
of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of
any Applicable Law.

 

G.   Non-Transferability of
Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement
shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

H.   Term of Option. This Option
may be exercised only within the term set out in this Stock Option Agreement and may be exercised during such term only in accordance
with the Plan and the terms of this Option Agreement.

 

I.   Tax Consequences. Set forth
below is a brief summary as of the date of this Option of some of the federal tax consequences of exercise of this Option and disposition
of the Shares.

 

THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION
OR DISPOSING OF THE SHARES.

 

(i)     Exercise
of ISO. If this Option qualifies as an ISO, there will be no regular federal income tax liability upon the exercise of
the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise
Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes and may subject the Optionee
to the alternative minimum tax in the year of exercise.

 

    	3

    	 

    

 

(ii)     Exercise
of ISO Following Disability. If the Optionee ceases to be an Employee as a result of a disability that is not a total
and permanent disability as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the
Optionee must exercise an ISO within three months of such termination for the ISO to be qualified as an ISO.

 

(iii)     Exercise
of Non-statutory Stock Option. There may be a regular federal income tax liability upon the exercise of a Non-statutory
Stock Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Optionee
is an Employee or a former Employee, the Company may be required to withhold from Optionee’s compensation or
collect from Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation
income at the time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are
not delivered at the time of exercise.

 

(iv)     Disposition
of Shares. In the case of an NSO, if Shares are held for at least one year, any gain realized on disposition of the Shares
will be treated as long-term capital gain for federal income tax purposes. In the case of an ISO, if Shares transferred pursuant
to the Option are held for at least one year after exercise and of at least two years after the Date of Grant, any gain
realized on disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes.
If Shares purchased under an ISO are disposed of within one year after exercise or two years after the Date of Grant,
any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent
of the difference between the Exercise Price and the lesser of (1) the Fair Market Value of the Shares on the date of
exercise, or (2) the sale price of the Shares. Any additional gain will be taxed as capital gain, short-term or long-term depending
on the period that the ISO Shares were held.

 

(v)     Notice of
Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells
or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two
years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify
the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the
Company on the compensation income recognized by the Optionee.

 

J.   Entire Agreement; Amendment.
The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest
except by means of a writing signed by the Company and Optionee.

 

K.   Severability. If one or more
provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement
and the balance of this Agreement shall be enforceable in accordance with its terms and shall be interpreted as if such
provisions were as excluded.

 

    	4

    	 

    

 

L.   Change-in-Control. In the
event of a merger, consolidation or reorganization with another corporation in which the Company is not the surviving entity
or in the event of the sale of all or substantially all of the assets of the company to any person or entity other than a
wholly owned subsidiary (“Change-in-Control”), the Committee, in its discretion, shall take one or more of the
following actions with respect to this Option and Shares purchased under the Plan prior to vesting: (a) fully vest this
Option; (b) fully vest all Shares purchased under the Plan prior to vesting by canceling all options in favor of the Company
to repurchase such Shares; (c) arrange to have this Option assumed by the successor entity or replaced with a stock
option of equivalent value to purchase stock of such successor entity without acceleration of vesting; or (d)
cancel this Option as of the effective date of the Change-in-Control; provided that prior written notice of such
cancellation is given to Optionee and Optionee has the right to exercise the Option prior to such Change-in-Control without
granting the successor entity any right to repurchase Shares not then fully vested.

 

M.   Mandatory Mediation and Arbitration
as EXCLUSIVE Remedies.

 

The parties agree that all claims,
disputes or controversies arising out of or relating to this Agreement shall be resolved and determined exclusively under
the mandatory mediation and arbitration procedures described below. Before filing for mandatory and binding arbitration
respect to any dispute, controversy or claim arising out of or relating to this Agreement, the parties shall be
obligated first to seek by good faith efforts to resolve such matter by mediation. As a condition precedent to
filing for mandatory arbitration, a Notice of Claim shall be sent to the other party. The Notice of
Claim shall specify the nature of the dispute, controversy and (or) claim and shall include the name of
a proposed independent third party mediator or organization of mediators who shall be located in either Alameda
County or the City and County of San Francisco, CA. The party receiving the Notice of Claim shall within fifteen days
thereafter either consent to mediate the matter in front of the mediator or organization of mediators so proposed
or suggest an alternative mediator or organization of mediators likewise so located. The parties shall undertake good
faith efforts for a period of thirty days thereafter to appoint a mediator and submit the dispute, controversy and (or)
claims to mediation. The mediation shall be held in either Alameda County or the City and County of San Francisco, CA
notwithstanding that certain duties of Employee may be performed elsewhere. If the mediation
attempt is unsuccessful, either party thereafter shall be entitled to seek binding arbitration. The parties
by mutual consent may elect to have the mediator act as the neutral arbitrator to render mandatory and binding decision.
If either party objects to having the mediator act as the binding arbitrator, the dispute will be referred to the
American Arbitration Association (“AAA”) for appointment of a neutral arbitrator for a mandatory final and
binding determination pursuant to the Commercial Rules (the “Rules”) of the AAA. Such arbitration shall be
administered by the AAA and shall be held in either Alameda County or the City and County of San Francisco, CA. Binding
arbitration shall be initiated by a written request for arbitration delivered by one party to the other party and
to the AAA. A neutral arbitrator will be selected in accordance with the Rules. The hearing will be commenced
within 60 days of the selection of the arbitrators. Pending the hearing, the parties shall be entitled to undertake
discovery proceedings, including the taking of depositions, in accordance with California Code of Civil Procedure
Section 1283.05, the provisions of which are hereby incorporated into this Agreement. Within fifteen (15) days following the
closing of the hearing, a final decision will be made concerning the disputed matter, which decision and the basis
thereof will be in writing and delivered to the parties. The final decision of the arbitrator will be binding on
the parties and enforceable in any court of law having jurisdiction thereof. Pending final decision of the disputed
matter, the parties will continue diligently to observe and perform the terms of this Agreement. In
such arbitration, (i) the prevailing party will be entitled to recover his or its reasonable attorneys’ fees
and costs, and (ii) the non-prevailing party shall responsible for the costs of arbitration (including, but
not limited to the costs of the arbitrator and AAA fees) as and to the extent determined by the arbitrator.

 

    	5

    	 

    

 

THE PARTIES HAVE READ AND UNDERSTAND
THAT THIS SECTION SETS OUT MANDATORY MEDIATION AND ARBITRATION PROCEDURES TO RESOLVE ALL DISPUTES HEREUNDER. BY SIGNING THIS
AGREEMENT, EACH PARTY AGREES, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING
TO, OR CONNECTED WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF
TO BINDING ARBITRATION AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EACH PARTY’S RIGHT TO A JURY TRIAL.

 

	 	SO ACKNOWLEDGED AND AGREED:	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

N.   Governing Law. Matters relating
solely to corporate law to the extent set forth in the General Corporation Law of the State of Delaware shall be governed by the
laws of Delaware. All other matters, such as the interpretation of the rights granted and the obligations of the parties
under this Agreement, will be governed by the laws of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within California.

 

O.   Counterparts; Facsimile Signatures.
This Agreement may be executed in counterpart originals, each of which together shall constitute one binding agreement. Signatures
on a counterpart copy of this page shall be deemed to incorporate all of the provisions of this Agreement. Each party
may rely on a signed counterpart copy of this Agreement or an executed counterpart of this signature page with the same
effect as if one originally executed complete document were delivered to such party. The facsimile signature of any party
shall be deemed to be the party=s binding signature to this Agreement; thus, a signed counterpart of this signature
page faxed to the other party may be relied upon by the receiving party with the same effect as if a complete originally
executed Agreement were delivered and received by such party.

 

    	6

    	 

    

 

P.   No Guarantee of Continued Service.
OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING
AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE
VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER
FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR
THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

 

Q.   Optionee acknowledges receipt of
a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this
Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the
Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator
upon any questions arising under the Plan or this Option. Optionee further agrees to notify the Company upon any change in
the residence address indicated below.

 

	OPTIONEE:	 	COMPANY:
	 	 	 
	 	 	KineMed, Inc.
	 	 	a Delaware corporation
	 	 	 
	 	 	 
	Signature	 	By: David Fineman
	 	 	Title: President & CEO

 

    	7

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