Document:

Registrant's 1997 Employee Stock Purchase Plan, as amended to date

 Exhibit 10-D 
 A.P. PHARMA, INC. 
 1997 EMPLOYEE STOCK PURCHASE PLAN 
 1. PURPOSE. This A.P. Pharma, Inc. 1997 Employee Stock Purchase Plan is designed to encourage and assist employees of A.P. Pharma, Inc. and participating
subsidiaries to acquire an equity interest in the Company through the purchase of shares of Company common stock. 
 2. DEFINITIONS. As used
herein, the following definitions shall apply: 
 (a) “Administrator” shall mean the entity, either the Board or the
committee of the Board, responsible for administering this Plan, as provided in Section 3. 
 (b) “Board” shall
mean the Board of Directors of the Company, as constituted from time to time. 
 (c) “Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time, and any successor statute. 
 (d) “Company” shall mean A.P.
Pharma, Inc., a Delaware corporation, and Participating Subsidiaries. 
 (e) “Common Stock” shall mean the Common
Stock, $.01 par value, of the Company. 
 (f) “Employee” shall mean any individual who is an employee of the Company
or a Participating Subsidiary within the meaning of Section 3401(c) of the Code and the Treasury Regulations thereunder. 
 (g) “Enrollment Date” shall have the meaning set forth in Section 6. 
 (h) “Fair market
value” means as of any given date: (i) the closing price of the Common Stock on the Nasdaq National Market as reported in the Wall Street Journal; or (ii) if the Common Stock is no longer quoted on the Nasdaq National Market, but is
listed on an established stock exchange or quoted on any other established interdealer quotation system, the closing price for the Common Stock on such exchange or system, as reported in the Wall Street Journal; or (iii) in the absence of an
established market for the Common Stock, the fair market value of the Common Stock as determined by the Administrator in good faith. 
 (i) “Lower Price Enrollment Date” shall have the meaning set forth in Section 6. 
 (j) “Option
Period” shall have the meaning set forth in Section 7(b). 
 (k) “Participating Subsidiary” shall mean a
Subsidiary which has been designated by the Administrator as covered by the Plan. 
 (l) “Plan” shall mean this A.P.
Pharma, Inc. 1997 Employee Stock Purchase Plan, as it may be amended from time to time. 
 (m) “Purchase Date” shall
have the meaning set forth in Section 9(a). 

 (n) “Section” unless the context clearly indicates otherwise, shall refer to a
Section of this Plan. 
 (o) “Subsidiary” shall mean a “subsidiary corporation” of the Company, whether
now or hereafter existing, within the meaning of Section 424(f) of the Code, but only for so long as it is a “subsidiary corporation.” 
 (p) “Trading Day” means any day on which regular trading occurs on any established stock exchange or market system on which the Common Stock is traded. 
 3. ADMINISTRATION. 
 (a)
Administrator. The Plan shall be administered by the Board or, upon delegation by the Board, by a committee of the Board (in either case, the “Administrator”). In connection with the administration of the Plan, the Administrator shall have
the powers possessed by the Board. The Administrator may act only by a majority of its members. The Administrator may delegate administrative duties to such employees of the Company as it deems proper, so long as such delegation is not otherwise
prohibited by Rule 16b-3 under the Securities Exchange Act of 1934, as amended, or other applicable law. The Board at any time may terminate the authority delegated to any committee of the Board pursuant to this Section 3(a) and revest in the
Board the administration of the Plan. 
 (b) Administrator Determinations Binding. The Administrator may adopt, alter and
repeal administrative rules, guidelines and practices governing the Plan and the options granted under it as it shall deem advisable from time to time, may interpret the terms and provisions of the Plan and the Options granted under it, may correct
any defect, omission or inconsistency in the Plan or in any Option; and may otherwise supervise the administration of the Plan and the Options granted under it. The Administrator may establish, under guidelines from the Board, limits on the number
of shares which may be purchased by each participant on an annual or other periodic basis or on the number of shares which may be purchased on any Purchase Date. All decisions made by the Administrator under the Plan shall be binding on all persons,
including the Company and all participants in the Plan. No member of the Administrator shall be liable for any action that he or she has in good faith taken or failed to take with respect to this Plan. 
 4. NUMBER OF SHARES. 
 (a)
The Company has reserved for sale under the Plan 300,000 shares of Common Stock. Shares sold under the Plan may be newly issued shares or shares reacquired in private transactions or open market purchases, but all shares sold under the Plan,
regardless of source, shall be counted against the 300,000 share limitation. If at any Purchase Date, the shares available under the Plan are less than the number all participants would otherwise be entitled to purchase on such date, purchases shall
be reduced proportionately to eliminate the deficit. If, at any Purchase Date, the shares which may be purchased by a participant are restricted on account of a limit on the aggregate shares which may be purchased per employee, purchases under each
option shall be reduced proportionately. Any funds that cannot be applied to the purchase of shares due to such reductions shall be refunded to participants as soon as administratively feasible. 
 (b) In the event of any reorganization, recapitalization, stock split, reverse stock split, stock dividend, combination of shares, merger,
consolidation, offering of rights, or other similar change in the capital structure of the Company, the Board may make such adjustment, if any, as it deems appropriate in the number, kind, and purchase price of the shares available for purchase
under the Plan and in the maximum number of shares subject to any option under the Plan. 

 5. ELIGIBILITY REQUIREMENTS. 
 (a) Each Employee of the Company, except those described in the next paragraph, shall become eligible to participate in the Plan in
accordance with Section 6 on the first Enrollment Date on or following commencement of his or her employment by the Company or following such period of employment as is designated by the Administrator from time to time. Participation in the
Plan is entirely voluntary. 
 (b) The following Employees are not eligible to participate in the Plan: 
 (i) Employees who would, immediately upon enrollment in the Plan, own directly or indirectly, or hold options or rights to acquire stock
possessing, five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any subsidiary of the Company; and 
 (ii) Employees who are customarily employed by the Company fewer than twenty (20) hours per week or fewer than five (5) months
in any calendar year. 
 6. ENROLLMENT. Any eligible employee may enroll or re-enroll in the Plan each year as of the close of the first
trading day of: (a) May and November of each such year; or (b) such other days as may be established by the Board from time to time (the “Enrollment Dates”); provided, that the first Enrollment Date shall be April 30, 1997.
In order to enroll, an eligible employee must complete, sign, and submit to the Company an enrollment form. Any enrollment form received by the Company by the 20th day of the month preceding an Enrollment Date (or by the Enrollment Date in the case
of employees hired after such 20th day or in the case of the first Enrollment Date), or such other date established by the Administrator from time to time, will be effective on that Enrollment Date. In addition, the Administrator may re-enroll
existing participants in the Plan on any Enrollment Date (the “Lower Price Enrollment Date”) on which the fair market value of the Common Stock is lower than the fair market value on such participant’s existing Enrollment Date. A
participant may elect not to re-enroll on a Lower Price Enrollment Date by filing a written statement with the Company declaring such election prior to the Lower Price Enrollment Date. 
 7. GRANT OF OPTION ENROLLMENT. 
 (a) Enrollment or re-enrollment by a participant in the Plan on an Enrollment Date will constitute the grant by the Company to the participant of an option to purchase shares of Common Stock from the Company under the Plan. Any participant
whose option expires and who has not withdrawn from the Plan will automatically be re-enrolled in the Plan and granted a new option on the Enrollment Date immediately following the date on which the option expires. 
 (b) Except as provided in Section 10, each option granted under the Plan shall have the following terms: 
 (i) the option will have a term of not more than twenty-four (24) months or such shorter option period as may be established by the
Board from time to time (the “Option Period”). Notwithstanding the foregoing, however, whether or not all shares have been purchased thereunder, 

 
the option will expire on the earlier to occur of: (A) the completion of the purchase of shares on the last Purchase Date occurring within twenty-four
(24) months after the Enrollment Date for such option, or such shorter option period as may be established by the Board before an Enrollment Date for all options to be granted on such date; or (B) the date on which the employee’s
participation in the Plan terminates for any reason; 
 (ii) payment for shares purchased under the option will be made only
through payroll withholding in accordance with Section 8; 
 (iii) purchase of shares upon exercise of the option will be
effected only on the Purchase Dates established in accordance with Section 9; 
 (iv) the option, if not altered, amended
or revoked by the Company prior to the relevant Purchase Date, may be accepted only by (x) there having been withheld from the compensation of the employee in accordance with the terms of the Plan amounts sufficient to purchase the Common Stock
intended to be purchased under the option, and (y) the employee being employed by the Company and not having withdrawn from the Plan on the relevant Purchase Date. 
 (v) the price per share under the option will be determined as provided in Section 9; 
 (vi) the maximum number of shares available for purchase under an option for each one percent (1%) of compensation designated by an
employee in accordance with Section 8 will, unless otherwise established by the Board before an Enrollment Date for all options to be granted on such date, be determined by dividing $25,000 by the fair market value of a share of Common Stock on
the Enrollment Date, dividing the result by the maximum number of percentage points that an employee may designate under Section 8 at the time such option is granted, and multiplying the result by the number of calendar years included in whole
or in part in the period from grant to expiration of the option; 
 (vii) the option (taken together with all other options
then outstanding under this and all other similar stock purchase plans of the Company and any subsidiary of the Company, collectively “Options”) will in no event give the participant the right to purchase shares at a rate per calendar year
which accrues in excess of $25,000 of fair market value of such shares, less the fair market value of any shares accrued and already purchased during such year under Options which have expired or terminated, determined at the applicable Enrollment
Dates; and 
 (viii) the option will in all respects be subject to the terms and conditions of the Plan, as interpreted by the
Administrator from time to time. 
 8. PAYROLL AND TAX WITHHOLDING; USE BY COMPANY. 
 (a) Each participant shall elect to have amounts withheld from his or her compensation paid by the Company during the Option Period, at a
rate equal to any whole percentage up to a maximum of ten percent (10%), or such lesser percentage as the Board may establish from time to time before an Enrollment Date. Compensation includes regular salary payments, annual and quarterly bonuses,
hire-on bonuses, cash recognition awards, commissions, overtime pay, shift premiums, and elective contributions by the participant to qualified employee benefit plans, but excludes all other payments including, without limitation, long-term
disability or workers compensation payments, car allowances, employee referral bonuses, relocation payments, expense 

 
reimbursements (including but not limited to travel, entertainment, and moving expenses), salary gross-up payments, and non-cash recognition awards. The
participant shall designate a rate of withholding in his or her enrollment form and may elect to increase or decrease the rate of contribution effective as of any Enrollment Date, by delivery to the Company, not later than ten (10) days before
such Enrollment Date, of a written notice indicating the revised withholding rate. 
 (b) Payroll withholdings shall be
credited to an account maintained for purposes of the Plan on behalf of each participant, as soon as administratively feasible after the withholding occurs. The Company shall be entitled to use the withholdings for any corporate purpose, shall have
no obligation to pay interest on withholdings to any participant, and shall not be obligated to segregate withholdings. 
 (c)
Upon disposition of shares acquired by exercise of an option, the participant shall pay, or make provision adequate to the Company for payment of, all federal, state, and other tax (and similar) withholdings that the Company determines, in its
discretion, are required due to the disposition, including any such withholding that the Company determines in its discretion is necessary to allow the Company to claim tax deductions or other benefits in connection with the disposition. A
participant shall make such similar provisions for payment that the Company determines, in its discretion, are required due to the exercise of an option, including such provisions as are necessary to allow the Company to claim tax deductions or
other benefits in connection with the exercise of the option. 
 9. PURCHASE OF SHARES. 
 (a) On the last Trading Day immediately preceding an Enrollment Date (other than the first Enrollment Date), or on such other days as may
be established by the Board from time to time prior to an Enrollment Date for all options to be granted on such Enrollment Date (each a “Purchase Date”), the Company shall apply the funds then credited to each participant’s payroll
withholdings account to the purchase of whole shares of Common Stock. The cost to the participant for the shares purchased under any option shall be not less than eighty-five percent (85%) of the lower of: 
 (i) the fair market value of the Common Stock on the Enrollment Date for such option; or 
 (ii) the fair market value of the Common Stock on the date such option is exercised. 
 (b) Any funds in an amount less than the cost of one share of Common Stock left in a participant’s payroll withholdings account on a
Purchase Date shall be carried forward in such account for application on the next Purchase Date. 
 (c) Notwithstanding the
terms of Section 9(a), no funds credited to any employee’s payroll withholdings account shall be used to purchase Common Stock on any date prior to the date that the Plan has been approved by the stockholders of the Company, as noted in
Section 21. If such approval is not forthcoming within one year from the date that the Plan was approved by the Board of Directors, all amounts withheld shall be distributed to the participants as soon as administratively feasible. 

10. WITHDRAWAL FROM THE PLAN. A participant may withdraw from the Plan in full (but not in part) at any time, effective after written notice thereof
is received by the Company. Unless the Administrator elects to permit a withdrawing participant to invest funds credited to his or her withholding 

 
account on the Purchase Date immediately following notice of withdrawal, all funds credited to a participant’s payroll withholdings account shall be
distributed to him or her without interest within sixty (60) days after notice of withdrawal is received by the Company. Any eligible employee who has withdrawn from the Plan may enroll in the Plan again on any subsequent Enrollment Date in
accordance with the provisions of Section 6. 
 11. TERMINATION OF EMPLOYMENT. Participation in the Plan terminates immediately when a
participant ceases to be employed by the Company for any reason whatsoever (including death or disability) or otherwise becomes ineligible to participate in the Plan. As soon as administratively feasible after termination, the Company shall pay to
the participant or his or her beneficiary or legal representative, all amounts credited to the participant’s payroll withholdings account; provided, however, that if a participant ceases to be employed by the Company because of the commencement
of employment with a Subsidiary of the Company that is not a Participating Subsidiary, funds then credited to such participant’s payroll withholdings account shall be applied to the purchase of whole shares of Common Stock at the next Purchase
Date and any funds remaining after such purchase shall be paid to the participant. 
 12. DESIGNATION OF BENEFICIARY. 
 (a) Each participant may designate one or more beneficiaries in the event of death and may, in his or her sole discretion, change such
designation at any time. Any such designation shall be effective upon receipt in written form by the Company and shall control over any disposition by will or otherwise. 
 (b) As soon as administratively feasible after the death of a participant, amounts credited to his or her account shall be paid in cash to
the designated beneficiaries or, in the absence of a designation, to the executor, administrator, or other legal representative of the participant’s estate. Such payment shall relieve the Company of further liability with respect to the Plan on
account of the deceased participant. If more than one beneficiary is designated, each beneficiary shall receive an equal portion of the account unless the participant has given express contrary written instructions. 
 13. ASSIGNMENT. 
 (a) The
rights of a participant under the Plan shall not be assignable by such participant, by operation of law or otherwise. No participant may create a lien on any funds, securities, rights, or other property held by the Company for the account of the
participant under the Plan, except to the extent that there has been a designation of beneficiaries in accordance with the Plan, and except to the extent permitted by the laws of descent and distribution if beneficiaries have not been designated.

 (b) A participant’s right to purchase shares under the Plan shall be exercisable only during the participant’s
lifetime and only by him or her, except that a participant may direct the Company in the enrollment form to issue share certificates to the participant and his or her spouse in community property, to the participant jointly with one or more other
persons with right of survivorship, or to certain forms of trusts approved by the Administrator. 
 14. ADMINISTRATIVE ASSISTANCE. If the
Administrator in its discretion so elects, it may retain a brokerage firm, bank, or other financial institution to assist in the purchase of shares, delivery of reports, or other administrative aspects of the Plan. If the Administrator so elects,
each participant shall (unless prohibited by the laws of the nation of his or her 

 
employment or residence) be deemed upon enrollment in the Plan to have authorized the establishment of an account on his or her behalf at such institution.
Shares purchased by a participant under the Plan shall be held in the account in the name in which the share certificate would otherwise be issued pursuant to Section 13(b). 
 15. COSTS. All costs and expenses incurred in administering the Plan shall be paid by the Company, except that any stamp duties or transfer taxes
applicable to participation in the Plan may be charged to the account of such participant by the Company. Any brokerage fees for the purchase of shares by a participant shall be paid by the Company, but brokerage fees for the resale of shares by a
participant shall be borne by the participant. 
 16. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have equal rights and
privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 of the Code and the related Treasury Regulations. Any provision of the Plan which is inconsistent
with Section 423 of the Code shall without further act or amendment by the Company or the Board be reformed to comply with the requirements of Section 423. This Section 16 shall take precedence over all other provisions of the Plan.

 17. APPLICABLE LAW. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of California.

 18. MODIFICATION AND TERMINATION. 
 (a) The Board may amend, alter, or terminate the Plan at any time, including amendments to outstanding options. No amendment shall require stockholder approval, except: 
 (i) for an increase in the number of shares reserved for purchase under the Plan; 
 (ii) to the extent required for the Plan to comply with Section 423 of the Code; 
 (iii) to the extent required by other applicable laws, regulations or rules; or 
 (iv) to the extent the Board otherwise concludes that stockholder approval is advisable. 
 (b) In the event the Plan is terminated, the Board may elect to terminate all outstanding options either immediately or upon completion of
the purchase of shares on the next Purchase Date, or may elect to permit options to expire in accordance with their terms (and participation to continue through such expiration dates). If the options are terminated prior to expiration, all funds
contributed to the Plan that have not been used to purchase shares shall be returned to the participants as soon as administratively feasible. 
 (c) In the event of the sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, or the dissolution or liquidation of the Company, each option
outstanding under the Plan shall be assumed by any purchaser of all or substantially all of the assets of the Company or by a successor by merger to the Company (or the parent company of such purchaser or successor) in compliance with
Section 424 of the Code, unless otherwise provided by the Board in its sole discretion, in which event, a Purchase Date shall occur immediately before the effective date of such event. 

 19. RIGHTS AS AN EMPLOYEE. Nothing in the Plan shall be construed to give any person the right to remain
in the employ of the Company or to affect the Company’s right to terminate the employment of any person at any time with or without cause. 
 20. RIGHTS AS A SHAREHOLDER; DELIVERY OF CERTIFICATES. Unless otherwise determined by the Board, certificates evidencing shares purchased on any Purchase Date shall be delivered to a participant only if he or she makes a written request to
the Administrator. Participants shall be treated as the owners of their shares effective as of the Purchase Date. 
 21. BOARD AND
SHAREHOLDER APPROVAL. The Plan was approved by the Board of Directors on March 5, 1997, and by the holders of a majority of the votes cast at a duly held shareholders’ meeting on June 18, 1997, at which a quorum of the voting power of
the Company was represented in person or by proxy.Form of 2007 Equity Incentive Plan Restricted Stock Award Agreement

 Exhibit 10-O 
 A.P. PHARMA, INC 
 2007 EQUITY INCENTIVE PLAN 
 RESTRICTED STOCK PURCHASE AGREEMENT 
 THIS RESTRICTED STOCK PURCHASE AGREEMENT (the “Agreement”), dated             , is entered into between A.P. Pharma, Inc., a Delaware corporation (the
“Company”) and              (the “Purchaser”). Unless otherwise defined herein, the terms of this Agreement will have the same meaning as defined in the A.P.
Pharma, Inc. 2007 Equity Incentive Plan (the “Plan”). The Agreement is entered into as follows: 
 WHEREAS, the consultant services
of Purchaser is considered by the Company to be important for the Company’s continued growth; and 
 WHEREAS, in order to induce
Purchaser to remain with the Company and to assure his continued commitment to the success of the Company, the Board of Directors of the Company (the “Board”) has determined that Purchaser shall be granted the right to purchase
(“Stock Purchase Award”) covering shares of the Company’s common stock (the “Shares”), under the Plan and subject to the restrictions stated below. 
 THEREFORE, the parties agree as follows: 
 1. Sale of
Stock. Subject to the terms and conditions of this Agreement and the Plan, which is incorporated herein by reference, the Company will issue and sell to Purchaser, and Purchaser agrees to purchase from the Company, [number = $25K / FMV on
DOG] Shares of the Company’s Common Stock at a purchase price of $[FMV on DOG] per Share and a total purchase price of $25,000. The term Shares refers to purchased Shares and all securities received in replacement of or in connection
with the Shares pursuant to stock dividends or splits, all securities received in replacement of the Shares in a recapitalization, merger, reorganization, exchange or the like, and all new, substituted or additional securities or other properties to
which Purchaser is entitled by reason of Purchaser’s ownership of the Shares. 
 2. Vesting Schedule. So long as Purchaser’s service
relationship with the Company continues during the following vesting term, the interest of Purchaser in the Shares shall vest as follows: [             Shares subject to the Stock
Award will vest [            ] months after [            ] (the “Vesting Commencement Date”) and
             Shares shall vest every [            ] months after the Vesting Commencement Date.] Therefore,
provided Purchaser has not experienced a termination of his Continuous Service (as defined in the Plan) prior to the close of business on the [            ] anniversary of the
Vesting Commencement Date, the interest of Purchaser in the Shares shall become fully vested on that date. 
 3. Repurchase Option. 

 (a) In the event of the voluntary or involuntary termination of Purchaser’s Continuous Service for any reason (including death or
disability), with or without cause, the Company shall upon the date of such termination (the “Termination Date”) have an irrevocable, exclusive option (the “Repurchase Option”) for a period of 90 days from such date
to repurchase all or any portion of the Shares held by Purchaser as of the Termination Date which have not yet been released from the Company’s Repurchase Option at the original purchase price per Share specified in Section 1 (adjusted for
any stock splits, stock dividends and the like). 
 (b) Unless the Company notifies Purchaser within 90 days from the Termination Date of
Purchaser’s employment or consulting relationship that it does not intend to exercise its Repurchase Option with respect to some or all of the Shares, the Repurchase Option shall be deemed automatically exercised by the Company as of the 90th
day following such termination, provided that the Company may notify Purchaser that it is exercising its Repurchase Option as of a date prior to such 90th day. Unless Purchaser is otherwise notified by the Company pursuant to the preceding sentence
that the Company does not intend to exercise its Repurchase Option as to some or all of the Shares to which it applies at the time of termination, execution of this Agreement by Purchaser constitutes written notice to Purchaser of the Company’s
intention to exercise its Repurchase Option with respect to all Shares to which such Repurchase Option applies. The Company, at its choice, may satisfy its payment obligation to Purchaser with respect to exercise of the Repurchase Option by either
(A) delivering a check to Purchaser in the amount of the 

 
purchase price for the Shares being repurchased, or (B) in the event Purchaser is indebted to the Company, canceling an amount of such indebtedness
equal to the purchase price for the Shares being repurchased, or (C) by a combination of (A) and (B) so that the combined payment and cancellation of indebtedness equals such purchase price. In the event of any deemed automatic
exercise of the Repurchase Option pursuant to this Section 3(a)(ii) in which Purchaser is indebted to the Company, such indebtedness equal to the purchase price of the Shares being repurchased shall be deemed automatically canceled as of the
90th day following termination of Purchaser’s employment or consulting relationship unless the Company otherwise satisfies its payment obligations. As a result of any repurchase of Shares pursuant to this Section 3(a), the Company shall
become the legal and beneficial owner of the Shares being repurchased and shall have all rights and interest therein or related thereto, and the Company shall have the right to transfer to its own name the number of Shares being repurchased by the
Company, without further action by Purchaser. 
 (c) [Number of shares from Section 1] of the Shares shall initially be subject
to the Repurchase Option. [            ] of the total number of shares shall be released from the Repurchase Option on the
[            ] month anniversary of the Vesting Commencement Date (as set forth on the signature page of this Agreement), and an additional
[            ] of the total number of Shares shall be released from the Repurchase Option every [            ]
months after the date of issuance of the Shares on the Vesting Commencement Date (as set forth in Section 1), until all Shares are released from the Repurchase Option. Fractional shares shall be rounded to the nearest whole share. 

(d) All transferees of Shares or any interest therein will receive and hold such Shares or interest subject to the provisions of this Agreement,
including insofar as applicable the Company’s Repurchase Option. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied. 
 (e) Upon the expiration or exercise of the Repurchase Option, a new certificate or certificates representing the Shares not repurchased shall be issued,
on request, without the legend referred to in Section 10 below and delivered to Purchaser. 
 4. Escrow of Shares. 
 (a) To ensure that Purchaser’s unvested Shares are delivered to the Company in the event the Company exercises its Repurchase Option described in
Section 3, Purchaser agrees to promptly following the execution of this Agreement, deliver to and deposit with the escrow agent (the “Escrow Agent”) named in the Joint Escrow Instructions attached as Exhibit A, the
certificate(s) evidencing the unvested Shares and an Assignment Separate from Certificate executed by Purchaser (with date and number of shares in blank) in the form attached as Exhibit B. The certificate(s) evidencing the unvested
Shares and the Assignment Separate from Certificate shall be delivered to the Escrow Agent and held under the Joint Escrow Instructions, which shall be delivered to the Escrow Agent promptly following the execution of this Agreement. 
 (b) Promptly following the date when the Shares have vested in full, the Company shall direct the Escrow Agent to deliver to Purchaser a certificate or
certificates representing the Shares. 
 5. Transfer Restrictions. In addition to any other limitation on transfer created by applicable
securities laws, Purchaser shall not assign, encumber or dispose of any interest in the Shares while the Shares are subject to the Company’s Repurchase Option, as described in Section 3 above. 
 6. Stockholder Rights. Purchaser shall be entitled to all of the rights and benefits generally accorded to stockholders with respect to the Shares. All
dividends on Shares that are subject to any restrictions, including vesting, shall be subject to the same restrictions, including those set forth in Sections 2 and 3, as the Shares on which the dividends were paid. 
 7. Taxes. 
 (a) Purchaser shall be liable for
any and all taxes, including withholding taxes, arising out of this grant or the vesting of Shares hereunder. In the event that the Company is required to withhold taxes as a result of the grant or vesting of the Shares, or subsequent sale of the
Shares, Purchaser shall surrender a sufficient number of 

  

 2 

 
whole Shares or make a cash payment, in the discretion of the Company, as necessary to cover all applicable required withholding taxes and required social
security contributions at the time the Shares vest and the Repurchase Option on the Shares lapses (or at such other time as required by applicable laws), unless alternative procedures for such payment are established by the Company. Purchaser will
receive a cash refund for any fraction of a surrendered Share not necessary for required withholding taxes and required social security contributions. To the extent that any surrender of Shares or payment of cash or alternative procedure for such
payment is insufficient, Purchaser authorizes the Company, its affiliates and subsidiaries, which are qualified to deduct tax at source, to deduct all applicable required withholding taxes and social security contributions from Purchaser’s
compensation. Purchaser agrees to pay any amounts that cannot be satisfied from wages or other cash compensation, to the extent permitted by law. 
 (b) Purchaser understands that Section 83(a) of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the difference between the amount paid for the Shares and the fair market value of the
Shares as of the date any Repurchase Option on the Shares lapses. In this context, “restrictions” mean the repurchase option in the event of the Termination of Continuous Service of Purchaser as set forth in Section 12 of the Plan and
the restriction on transferability as set forth in Section 5 of this Agreement and in Section 13 of the Plan. Purchaser understands that Purchaser may elect to be taxed at the time the Shares are issued, based on the value of the Shares at
the issuance date rather than when and as the Repurchase Option lapses (on the vesting dates), by filing an election under Section 83(b) (an “83(b) Election”) of the Code with the Internal Revenue Service within 30 days from
the date of issuance. Purchaser acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to issuance and vesting of the Shares hereunder, and does not purport to be complete. The Company
has directed Purchaser to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state or foreign country in which Purchaser may reside, the tax consequences of Purchaser’s death, and
the decision as to whether or not to file an 83(b) Election (as well as appropriate advice and assistance with the actual filing of any such 83(b) Election) in connection with the issuance of the Shares. 
 (c) Regardless of any action the Company takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other
tax-related withholding (“Tax-Related Items”), Purchaser acknowledges and agrees that the ultimate liability for all Tax-Related Items legally due by Purchaser is and remains Purchaser’s responsibility and that the Company
(i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this issuance of Shares, including the vesting of the Shares or the subsequent sale of the Shares; and (ii) do
not commit to structure the terms or any aspect of this issuance of Shares to reduce or eliminate Purchaser’s liability for Tax-Related Items. Upon the vesting of the Shares, Purchaser shall pay the Company any amount of Tax-Related Items that
the Company may be required to withhold as a result of Purchaser’s receipt of the Stock Purchase Award or Purchaser’s receipt of Shares that cannot be satisfied by the means previously described. The Company may refuse to deliver the
Shares if Purchaser fails to comply with Purchaser’s obligations in connection with the Tax-Related Items. 
 8. Acknowledgment and Waiver.
By accepting this grant of a Stock Purchase Award, Purchaser acknowledges and agrees that: 
 (a) the grant of a Stock Purchase
Award is voluntary and occasional and does not create any contractual or other right to receive future grants of Stock Purchase Awards or Shares, even if Stock Purchase Awards or Shares have been granted repeatedly in the past; 
 (b) the grant of a Stock Purchase Award shall not create a right to employment or a service relationship with the Company, shall not create an
employment agreement between Purchaser and the Company and shall not interfere with the ability of the Company to terminate Purchaser’s employment or service relationship at any time with or without cause and it is expressly agreed and
understood that employment is terminable at the will of either party, insofar as permitted by law; 
 (c) the grant of a Stock Purchase
Award, Shares and resulting benefits are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company, and are outside the scope of Purchaser’s service relationship contract, if any; and
the grant of a Stock Purchase Award, Shares and resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, end of
service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law; 
  

 3 

 (d) in consideration of this grant of a Stock Purchase Award, no claim or entitlement to
compensation or damages shall arise from termination of this Stock Purchase Award or diminution in value of the Shares resulting from termination of Continuous Service by the Company (for any reason whatsoever and whether or not in breach of local
labor laws) and Purchaser irrevocably releases the Company from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this
Agreement, Purchaser shall be deemed irrevocably to have waived any entitlement to pursue such claim; and 
 (e) notwithstanding any
terms or conditions of the Plan to the contrary, in the event of involuntary termination of Continuous Service (whether or not in breach of local labor laws), Purchaser’s right to receive benefits under this Agreement, if any, will terminate
effective as of the date that Purchaser is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active service relationship would not include a period of “garden leave” or similar period
pursuant to local law); furthermore, in the event of involuntary termination of Continuous Service (whether or not in breach of local labor laws), Purchaser’s right to receive benefits under this Agreement after termination of Continuous
Service, if any, will be measured by the date of termination of Purchaser’s active service relationship and will not be extended by any notice period mandated under local law. 
 9. Conditions Upon Issuance of Shares. Notwithstanding any other provision of this Agreement, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares
under this Agreement unless such issuance or delivery would comply with applicable laws, with such compliance determined by the Company in consultation with its legal counsel. 
 10. Restrictive Legends and Stop-Transfer Orders. 
 (a) The certificate or certificates
representing the Shares shall bear the following legend (as well as any legends required by applicable state and federal corporate and securities laws): 
 THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 (b) Purchaser 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) 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. 
 11. Miscellaneous. 
 (a) The Company
shall not be required to treat as the owner of Shares, and associated benefits hereunder, any transferee to whom such Shares or benefits shall have been so transferred in violation of this Agreement. 
 (b) The parties agree to execute such further instruments and to take such action as may reasonably be necessary to carry out the intent of this
Agreement. 
 (c) Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to
Purchaser at Purchaser’s address then on file with the Company. 
  

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 (d) The Plan is incorporated herein by reference. The Plan and this 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 Purchaser with respect to the subject matter hereof, and may not be modified adversely to
Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This Agreement is governed by the laws of the state of Delaware. 
 (e) The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding
and enforceable. 
 [Signature page follows] 
  

									
	Accepted by Purchaser:	 		 	A.P. PHARMA, INC.
				
	 	 		 	By	 	 
		 		 		 		 	

 RETAIN THIS AGREEMENT FOR YOUR RECORDS 
  

 5 

 EXHIBIT A 
 JOINT ESCROW INSTRUCTIONS 
 [                             ,
            ] 
 [                                    ] 
 A.P. Pharma, Inc. 
 123 Saginaw Drive 
 Redwood City, CA 94063 
 Dear Sir or Madam: 
 As Escrow Agent for A.P. Pharma, Inc. (the “Company”), and
[                    ] (the “Purchaser”), you are authorized and directed to hold the Assignment Separate from Certificate form(s)
executed by Purchaser and the certificate(s) of stock representing Purchaser’s unvested shares transferred in accordance with the terms of the Restricted Stock Purchase Agreement (the “Agreement”) entered into between the Company and
Purchaser, in accordance with the following instructions: 
 1. In the event of the exercise of the Repurchase Option by the Company
described in Section 3 of the Agreement, Purchaser and the Company hereby irrevocably authorize and direct you to effect the contemplated Repurchase Option, and to promptly deliver the stock certificates. 
 2. Promptly following the exercise of the Repurchase Option by the Company described in Section 3 of the Agreement, you are directed (a) to
date the Assignment Separate from Certificate form(s) necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver the form(s), together with the certificate or certificates evidencing
the shares to be transferred, to the Company. 
 3. Purchaser irrevocably authorizes the Company to deposit with you any certificates
evidencing shares to be held by you under this letter and any additions and substitutions to the shares as defined in the Agreement. Purchaser irrevocably appoints you as his or her attorney-in-fact and agent for the term of this escrow to execute,
with respect to the shares of stock, all documents necessary or appropriate to make such securities negotiable and to complete any transaction contemplated by these Joint Escrow Instructions. Subject to the provisions of this Section 3,
Purchaser shall exercise all rights and privileges, including but not limited to, the right to vote and to receive dividends (if any), of a stockholder of the Company while the shares are held by you. 
 4. In accordance with the terms of Section 4(b) of the Agreement, you may deliver to Purchaser a certificate or certificates representing shares
that are no longer subject to the Company’s repurchase option described in Section 3 of the Agreement. 
 5. This escrow shall
terminate upon the release of all shares held under the terms and provisions hereof. 
 6. If at the time of termination of this escrow you
should have in your possession any documents, securities or other property belonging to Purchaser, you shall deliver them to Purchaser and shall be discharged from all further obligations under these Joint Escrow Instructions. 
 7. Your duties under these Joint Escrow Instructions may be altered, amended, modified or revoked only by a writing signed by all of the parties.

  

 6 

 8. You shall be obligated to perform the duties described in these Joint Escrow Instructions and shall be
protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act or omission as Escrow Agent
or as attorney-in-fact of Purchaser while acting in good faith and in the exercise of your own good judgment, and any act or omission by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith. 
 9. You are expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting
only orders or process of courts of law, and are expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree of any court, you shall not be liable to any
of the parties under these Joint Escrow Instructions or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or
found to have been entered without jurisdiction. 
 10. You shall not be liable in any respect on account of the identity, authority or
rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for under these Joint Escrow Instructions. 
 11. You shall not be liable for the outlawing of any rights under any statute of limitations with respect to these Joint Escrow Instructions or any
documents deposited with you. 
 12. You shall be entitled to employ such legal counsel and other experts as you may deem necessary properly
to advise you in connection with your obligations under these Joint Escrow Instructions and may rely upon the advice of such counsel. 
 13.
Your responsibilities as Escrow Agent under these Joint Escrow Instructions shall terminate if you shall cease to be employed by the Company or if you shall resign by written notice to each party. In the event of any such termination, the Company
shall appoint any officer of the Company as successor Escrow Agent. 
 14. If you reasonably require other or further instruments in
connection with these Joint Escrow Instructions or obligations under these Joint Escrow Instructions, the parties shall furnish such instruments. 
 15. It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you under these Joint Escrow Instructions, you are authorized and directed to
retain in your possession without liability to anyone all or any part of the securities until the dispute is settled either by mutual written agreement of the parties or by a final order, decree or judgment of a court of competent jurisdiction after
the time for appeal has expired and no appeal has been perfected. You are under no duty whatsoever to institute or defend against any such proceedings. 
 16. Any notice required or permitted under these Joint Escrow Instructions shall be given in writing and will be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by
registered or certified mail with postage and fees prepaid, addressed to each of the other parties. 
 17. By signing these Joint Escrow
Instructions, you become a party only for the purpose of these Joint Escrow Instructions; you do not become a party to the Agreement. 
 18.
This instrument shall be governed by and construed in accordance with the laws of the State of Delaware. 
  

 7 

 19. This instrument shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
  

			
	Very truly yours,
	
	A.P. Pharma, Inc.
		
	By	 	 
		
	Its	 	 

  

					
	ESCROW AGENT:	 		 	
			
	  	 		 	  
		 		 	

  

 8 

 EXHIBIT B 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED,
[            ] sells, assigns and transfers to A.P. Pharma, Inc. (the “Company”) or its assignee
                     shares of the Common Stock of the Company (the “Shares”), standing in his or her name on the books of the
Company represented by Certificate No.              and irrevocably constitutes and appoints [            ] as
Attorney to transfer the Shares on the books of the Company with full power of substitution in the premises. 
 Dated:
                        ,             . 
  

	
	[NAME]
	
	  
	(Signature)

 Spousal Consent (if applicable) 
                                  (Purchaser’s spouse) indicates by
the execution of this Assignment his or her consent to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the Shares. 
  

	
	Printed Name
	
	  
	Signature

 INSTRUCTIONS: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE
PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO ENFORCE THE REPURCHASE OPTION SET FORTH IN THE RESTRICTED STOCK PURCHASE AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURE. 
  

 9

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