Document:

EX-10.5

 Exhibit 10.5 

INCENTIVE STOCK OPTION AGREEMENT 

UNDER THE 
 ENDOSTIM, INC.
2009 STOCK INCENTIVE PLAN 
 THIS AGREEMENT (this “Agreement”), made this [    ] day of
[        ], 20[    ], by and between EndoStim, Inc., a Delaware corporation (“Company”), and
[                    ] (“Optionee”). 

WITNESSETH THAT: 
 WHEREAS, the
Board of Directors of the Company (“Board”) has adopted the EndoStim, Inc. 2009 Stock Incentive Plan (the “Plan”) pursuant to which options covering an aggregate of [        ] shares of the
Common Stock of the Company may be granted to certain employees of the Company, a Parent or an Affiliate, as such terms are defined in the Plan; 

WHEREAS, Optionee is now an employee of the Company, a Parent or an Affiliate; 

WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its stock under the terms of the Plan; and 

WHEREAS, such options are intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code
of 1986, as amended (“Code”) (hereinafter referred to as an “Incentive Stock Option”). 
 NOW, THEREFORE, in
consideration of the premises and of the mutual agreements hereinafter set forth, it is covenanted and agreed as follows: 
 1. Grant
Subject to Plan. The Option is granted under and is expressly subject to all the terms and provisions of the Plan, and the terms of the Plan are incorporated herein by reference. Optionee acknowledges receipt of a copy of the Plan and agrees to
be bound by all the terms and provisions of the Plan. Terms not defined in this Agreement shall have the meaning ascribed thereto in the Plan. The Committee referred to in the Plan has been appointed by the Board, and designated by it, as the
Committee to make grants of options. 
 2. Grant and Terms of Option. Pursuant to action of the Committee, which action was taken on
[        ] (“Date of Grant”), the Company grants to Optionee the option to purchase all or any part of
[                    (                    )]
shares of the common stock of the Company, $0.001 par value per share (“Common Stock”) (the right to purchase each such share an “Option”), for a period of ten (10) years from the Date of Grant, at the purchase price of
$[        ] per share; provided, however, that the right to exercise such Option shall be, and is hereby, restricted as follows: 

(a) No shares may be purchased prior to the first anniversary of the Date of Grant; 

 (b) Options shall only be exercisable if vested pursuant to the terms of this Agreement; 

(c) [Vesting schedule to be inserted] 

(d) [Vesting schedule to be inserted] 

(e) Notwithstanding the foregoing, in the event of a Change in Control, as defined in the Plan, in which Optionee is not offered an employment
position in the acquiring company that is substantially equivalent to the position such Optionee held with the Company, a Parent, or an Affiliate immediately prior to such Change in Control, Optionee shall become vested in 100% of the Options
granted pursuant to this Agreement, but only if the Optionee is employed by the Company, a Parent or an Affiliate on the date of such Change in Control; 

(f) The purchase price of the shares subject to the Option may be paid for (i) in cash, (ii) in the discretion of the Committee, by
tender of shares of Common Stock already owned by Optionee, or (iii) in the discretion of the Committee, by a combination of methods of payment specified in clauses (i) and (ii), all in accordance with Section 6 of the Plan; 

(g) No shares of Common Stock may be tendered in exercise of the Option if such shares were acquired by Optionee through the exercise of an
Incentive Stock Option, unless (i) such shares have been held by Optionee for at least one year, and (ii) at least two years have elapsed since such Incentive Stock Option was granted; 

(h) Notwithstanding any provision in this Agreement to the contrary, no Option granted pursuant to the terms of this Agreement may be exercised
later than the ten year anniversary of the Date of Grant; 
 (i) Optionee shall have executed and delivered to the Company an instrument of
accession (in the form provided by the Company) with respect to (i) that certain Stockholders Agreement, dated [                    ] by and
among the Company and the other parties thereto, as amended from time to time, and/or (ii) such other agreements binding one or more stockholders of the Company as the Company may determine in its reasonable discretion; and 

(j) Notwithstanding any other provision in this Agreement to the contrary, the Options may be exercised prior to the date such Options become
vested pursuant to the terms of this Agreement (“Early Exercise”), provided that any shares received as a result of an Early Exercise shall be subject to the restrictions described in Section 3 below 

  
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 3. Shares Issued Upon Early Exercise. Any shares issued upon an Early Exercise
(“Restricted Stock”) shall be restricted as follows, provided that such restrictions shall lapse following the date the Options exercised pursuant to the Early Exercise would have vested or such other date upon which such restrictions
lapse as described in this Agreement (“Early Exercise Vesting Date”): 
 (a) All Restricted Stock shall be subject to a right of
repurchase by the Company (“Repurchase Right”) until the Early Exercise Vesting Date. The amount per share to be paid upon the exercise of any Repurchase Right shall be the lesser of the exercise price of the Option exercised pursuant to
the Early Exercise or the per share fair market value of the Company’s common stock at the time the Company exercises the Repurchase Right. 

(b) Neither the Restricted Stock nor any rights related to such Restricted Stock hereunder may be assigned, transferred or in any manner
encumbered by the Optionee except by will or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect. Prior to the Early Exercise
Vesting Date, such Restricted Stock shall bear a legend indicating their nontransferability. 
 (c) All shares of Restricted Stock shall be
forfeited if the Optionee ceases to be employed by the Company, a Parent or an Affiliate prior to the Early Exercise Vesting Date. Upon such forfeiture, the Company shall, within 90 days of such forfeiture, pay the Optionee a per share amount for
each such forfeited share equal to the lesser of the exercise price of the Option, the Early Exercise of which resulted in transfer of such share, or the per share fair market value of the Company’s common stock at the time of such forfeiture.

 Notwithstanding any provision in this Agreement to the contrary, in the event of a Change in Control, as defined in the Plan, in which Optionee is not
offered an employment position in the acquiring company that is substantially equivalent to the position such Optionee held with the Company, a Parent, or an Affiliate immediately prior to such Change in Control, the restrictions described in this
Section 3 with respect to Restricted Stock shall lapse, but only if the Optionee is engaged to provide substantial services to the Company, a Parent or an Affiliate on the date of such Change in Control. 

4. Termination of Employment. In the event of the termination of employment of Optionee other than by death, Optionee may exercise the
Option, to the extent Optionee was entitled to exercise it on the date of termination of employment, at any time within one year after such termination, but not after ten (10) years from the Date of Grant. If Optionee terminates employment on
account of disability, (i) Optionee may exercise such Option at any time within one year of the termination of Optionee’s employment, but not after ten (10) years from the Date of Grant and (ii) all Restricted Stock described in
Section 3 of this Agreement shall become vested and shall cease to be subject to the restrictions described in that Section 3. For this purpose, Optionee shall be deemed to be disabled if Optionee is permanently and totally disabled

  
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within the meaning of Section 422(c)(6) of the Code, which, as of the date hereof, shall mean that Optionee is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. Optionee shall be considered disabled only if Optionee furnishes
such proof of disability as the Committee may require. 
 5. Death of Optionee. In the event of the death of Optionee during the term
of this Agreement and while Optionee is employed by the Company (or its Parent or a Subsidiary), or within three (3) months after the termination of Optionee’s employment (or one year in the case of the termination of employment of an
Optionee who is disabled as provided in Section 4 above), the Option may be exercised by a legatee or legatees of Optionee under Optionee’s last will, or by Optionee’s personal representatives or distributees, at any time within a
period of one year after Optionee’s death, but not after ten (10) years from the Date of Grant. Notwithstanding the foregoing, in the event of the death of Optionee during the term of this Agreement and while the Option is employed by the
Company, all Restricted Stock described in Section 3 of this Agreement shall become vested and shall cease to be subject to the restrictions described in that Section 3. 

6. Anti-Dilution Provisions. In the event that, during the term of this Agreement, there is any
change in the number of shares of outstanding Common Stock of the Company by reason of stock dividends, recapitalizations, mergers, consolidations, split-ups, combinations or exchanges of shares and the like,
the number of Options (or any Restricted Stock received upon Early Exercise of such Options) granted pursuant to the terms of this Agreement and the price thereof shall be adjusted, to the same proportionate number of shares and price as in effect
on the Date of Grant. 
 7. Investment Purpose and Other Restrictions on Transfer. Optionee represents that, in the event of the
exercise by Optionee of any Option granted pursuant to the terms of this Agreement, Optionee intends to purchase the shares acquired on such exercise for investment and not with a view to resale or other distribution; except that the Company, at its
election, may waive or release this condition in the event the shares acquired on exercise of the Option are registered under the Securities Act of 1933, or upon the happening of any other contingency which the Company shall determine warrants the
waiver or release of this condition. Optionee agrees that the certificates evidencing the shares acquired by Optionee on exercise of all or any part of the Option, may bear a restrictive legend, if appropriate, indicating that the shares have not
been registered under said Act and are subject to restrictions on the transfer thereof. 
 8.
Non-Transferability. Neither the Options granted pursuant to the terms of this Agreement nor any rights hereunder may be assigned, transferred or in any manner encumbered by the Optionee except by will
or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect. The Option may be exercised during Optionee’s lifetime only by
Optionee or Optionee’s guardian or legal representative. 

  
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 9. Shares Issued on Exercise of Option. It is the intention of the Company that on any
exercise of an Option granted pursuant to the terms of this Agreement, the Company will transfer to Optionee shares of its authorized but unissued stock or transfer treasury shares, or utilize any combination of treasury shares and authorized but
unissued shares, to satisfy its obligations to deliver shares on any exercise hereof. As further described in Section 3 of this Agreement, any shares so transferred upon an Early Exercise shall be subject to the restrictions described in that
Section 3 until the Early Exercise Vesting Date or such other date described in this Agreement. 
 10. Committee Administration.
The Option has been granted pursuant to a determination made by the Committee, and such Committee or any successor or substitute committee authorized by the Board or the Board itself, subject to the express terms of the Plan and this Agreement,
shall have plenary authority to interpret any provision of the Option and to make any determinations necessary or advisable for the administration of the Option and the exercise of the rights herein granted, and may waive or amend any provisions
hereof in any manner not adversely affecting the rights granted to Optionee by the express terms hereof. 
 11. Option an Incentive Stock
Option. It is intended that the Option shall be treated as an incentive stock option under Section 422 of the Code. 
 12. No
Contract of Employment. Nothing contained in this Agreement shall be considered or construed as creating a contract of employment for any specified period of time. 

13. Tax Withholding. The Committee shall have the power and the right to deduct or withhold, or require the Optionee or beneficiary to
remit to the Company, an amount sufficient to satisfy Federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this award. In satisfaction of such
requirements, the Optionee may elect to satisfy the withholding requirements, in whole or in part, by having the Company withhold from the issued shares a number of shares of stock having a Fair Market Value on the date the tax is to be determined
equal to the minimum statutory total tax which could be withheld on the transaction. Any such election shall be irrevocable, made in writing, signed by the Optionee, and shall be subject to any restrictions or limitations that the Committee, in its
sole discretion, deems appropriate. 
 14. Severability. Any word, phrase, clause, sentence or other provision herein which violates
or is prohibited by any applicable law, court decree or public policy shall be modified as necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as fully as possible under applicable law, and if such cannot be
so modified, the same shall be ineffective to the extent of such violation or prohibition without invalidating or affecting the remaining provisions herein. 

15. Non-Waiver of Rights. The Company’s failure to enforce at any time any of the provisions of this Agreement or to require at
any time performance by Optionee of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement, or any part hereof, or the right of the Company thereafter to enforce
each and every provision in accordance with the terms of this Agreement. 

  
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 16. Entire Agreement; Amendments. No modification, amendment or waiver of any of the
provisions of this Agreement shall be effective unless in writing specifically referring hereto, and signed by the parties hereto. This Agreement supersedes all prior agreements and understandings between Optionee and the Company to the extent that
any such agreements or understandings conflict with the terms of this Agreement. 
 17. Assignment. This Agreement shall be freely
assignable by the Company to and shall inure to the benefit of, and be binding upon, the Company, its successors and assigns and/or any other entity which shall succeed to the business presently being conducted by the Company. 

18. Choice of Forum and Governing Law. In light of the Company’s substantial contacts with the State of Missouri, the
parties’ interests in ensuring that disputes regarding the interpretation, validity and enforceability of this Agreement are resolved on a uniform basis, and the Company’s execution of, and the making of, this Agreement in Missouri, the
parties agree that: (i) any litigation, validity and/or enforceability of this Agreement, shall be filed and conducted exclusively in the state or federal courts in St. Louis County, Missouri; and (ii) this Agreement shall be interpreted
in accordance with and governed by the laws of the State of Missouri, without regard for any conflict of law principles. 
 [The remainder of
this page is left intentionally blank.] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by the
undersigned officer pursuant to due authorization, and Optionee has signed this Agreement to evidence Optionee’s acceptance of the Option herein granted and of the terms hereof, all as of the date hereof. 

 

			
	EndoStim, Inc.
		
	By:	 	  

	
	  

	Optionee

  
 7EX-10.7

 Exhibit 10.7 

At-Will Employment Agreement 

This At-Will Employment Agreement (this “Agreement”), effective this 25th day of May, 2010 (the “Effective Date”) is by
and between EndoStim, Inc., a Delaware corporation (the “Company”), and Bevil J. Hogg (“Employee”). As of the Effective Date, this Agreement shall supersede and replace that certain Consulting and Non-Competition Agreement, dated
September 2, 2009, between the Company and Employee. 
 1. POSITION. Employee shall serve as the Company’s President, Chief
Executive Officer and as a member of the Company’s Board of Directors (the “Board”). Employee shall carry out such duties normally and customarily associated with a President and Chief Executive Officer, and as are otherwise assigned
to him by the Board. Employee shall report to the Board. Employee’s employment with the Company shall begin as of the Effective Date. Employee agrees to tender his resignation as a member of the Board immediately upon Employee ceasing to be
employed by the Company. 
 2. BASE SALARY. Beginning on the date that the Company’s sub-acute human clinical data validates the potential
therapeutic benefit of the Company’s proposed GERD treatment (as determined by the Board in good faith) or such earlier time as determined by the Board (the “Part-time Period”), Employee shall be paid a salary of $10,000 per month as
an interim salary for Employee’s part-time services to the Company. The Part-time Period shall cease beginning on the date that the Company is prepared to initiate a chronic GERD study (as determined by the Board in good faith) or such earlier
time as determined by the Board (the “Full-time Period”). During the Full-time Period the Company will pay Employee a base salary equivalent to $285,000 per year for Employee’s full time services to the Company. All such salary
payments (whether during the Part-time Period or the Full-time Period) shall be subject to applicable withholdings and deductions. Employee shall not receive a salary before commencement of the Full-time Period. 

3. INCENTIVE BONUS. At the end of each quarter during the Full-time Period Employee will be eligible for a cash incentive bonus of $25,000 per quarter.
Payment of such incentive bonus will be determined by the Board (or duly authorized Compensation Committee of the Board) based upon the Company’s achievement of goals and objectives for such quarter, and shall be shall be made as soon as
practicable thereafter, but in no event later than the fifteenth (15th) day of the second (2nd) month following such quarter. 

4. SEVERANCE BENEFITS. 
 4.1 For purposes
of this letter agreement, “Cause” shall mean gross misconduct or gross negligence that materially impacts the Company, such as breach of fiduciary duty, dishonesty, theft or commission of a crime involving moral turpitude. 

4.2 If Employee’s employment is terminated by the Company without Cause, Employee will be paid a salary continuance equal to
Employee’s base salary on the date of termination for the lesser of (i) the period from the date of Employee’s termination of employment until Employee commences employment with a new employer or (ii) the Applicable Period.
“Applicable Period” means six (6) months, unless (a) the Company has completed a Series C Preferred Stock financing round or has received an investment from a strategic partner of at least $3 million, in which case
“Applicable Period” means twelve (12) months or (b) the Company has experienced a Liquidity Event (as defined below), in which case “Applicable Period” means eighteen (18) months. If Employee’s employment is
terminated by the Company with Cause or by the Employee, Employee will be paid his salary through the date of termination. 

  
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 4.3 A “Liquidity Event” shall be deemed to have occurred if any of the following events
shall occur: (i) any person or group directly or indirectly, acquires securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then-outstanding securities; (ii) the
stockholders of the Company consummate a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; (iii) the Company consummates the sale or exclusive license of all or substantially all of its assets to any person or group; (iv) the Company completes an initial public offering
of its common stock, $0.001 par value (the “Common Stock”); or (v) the Company consummates the sale or exclusive license of a significant portion of its assets to any person or group and such transaction is followed by a distribution
to the Company’s stockholders of a substantial portion of the proceeds therefrom in the form of cash, publicly traded securities or other liquid assets (all as determined in good faith by the Board). 

5. RESTRICTED STOCK AGREEMENT. 
 5.1
Restricted Stock Agreement. On the Effective Date, the Company will issue Employee 400,000 shares of Common Stock, which shall be subject to the terms and conditions of (i) that certain Stockholders Agreement of the Company, by and among
the Company and certain holders of the Company’s stock, and (ii) a Restricted Stock Agreement between the Company and Employee in the form attached as Exhibit A to this Agreement. 

5.2 Representations. Employee has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of this
investment and the transaction contemplated by this Agreement. Employee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents (including with respect to any 83(b) election(s) that may
have been made in connection with the original purchase of the 400,000 shares of Common Stock). Employee understands that he and not the Company shall be responsible for his own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement. 
 5.3 Options and Other Equity Awards. Future equity awards (including, without
limitation, stock options or shares of restricted stock) may be granted conditioned on and subject to the approval of the Board (or duly authorized Compensation Committee of the Board). 

6. COMPANY BENEFITS. While employed by the Company during the Full-time Period, Employee shall be entitled to receive the benefit of employment made
available by the Company from time to time for which he is eligible. Employee will be entitled to four weeks paid vacation per year. Employee additionally will be provided office space and secretarial services for the normal conduct of the
Company’s business. The Company shall reimburse Employee for reasonable business related expenses incurred by Employee, including travel as required from Employee’s place of work, which is in Soquel, California. 

  
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 7. ATTENTION TO DUTIES; CONFLICT OF INTEREST. 

7.1 During the Part-time Period, the Company recognizes that Employee has and will have other responsibilities and obligations to other
organizations from time to time and that Employee will not be devoting his full professional time and energy to the Company. Notwithstanding this fact, Employee will devote such time and energy to his position with the Company as reasonably
necessary for Employee to fulfill his obligations to the Company, provided that Employee shall not be required to provide services on more than a part-time basis unless he agrees otherwise. Commencing at the start of the Full-time Period,
while employed by the Company, Employee shall devote Employee’s full business time, energy and abilities exclusively to the business and interests of the Company, and shall perform all duties and services in a faithful and diligent manner and
to the best of Employee’s abilities. During the Full-time Period Employee shall not, without the Company’s prior written consent, render services to others for compensation or engage in any other business activity if such services or
business activity would materially interfere with the performance of Employee’s duties under this Agreement. 
 7.2 Employee represents
that Employee has no other outstanding commitments inconsistent with any of the terms of this Agreement or the services to be rendered to the Company. While employed by the Company, Employee shall not invest in any company or business which competes
in any manner with the Company, except those companies whose securities are publicly traded, listed on national securities exchange, foreign stock exchange, pink sheets or small cap securities exchanges. 

8. CONFIDENTIAL INFORMATION. 
 8.1
Employee, during Employee’s term of employment and thereafter, agrees to keep secret and confidential, and not to use or disclose (directly or indirectly) to any third parties, any of the Company’s Confidential Information (as defined
below). 
 8.2 Employee acknowledges and confirms that certain data and other information (whether in human or machine readable form and
whether or not previously owned by Employee or his affiliates) that comes into Employee’s possession or knowledge (whether before, on, or after the Effective Date) and which was developed for or obtained from the Company, or obtained by
Employee for or on behalf of the Company, whether identified as confidential or not (collectively, the “Confidential Information”) is the secret, confidential property of the Company. Notwithstanding the foregoing, Confidential Information
of the Company is deemed to include, but is not limited to: 
  

	 	(i)	lists or other identification of customers or licensees or prospective customers or licensees of the Company (and key individuals employed or engaged by such parties); 

 

	 	(ii)	lists or other identification of sources or prospective sources of the Company’s products or technology or components thereof (and key individuals employed or engaged by such parties); 

  
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	 	(iii)	financial, sales and marketing data relating to the Company or to the industry or other areas pertaining to the Company’s activities and contemplated activities (including, without limitation, manufacturing,
transportation, distribution and sales costs and non-public pricing information); 

  

	 	(iv)	the Company’s relations with its customers, prospective customers, suppliers and prospective suppliers, licensees and prospective licensees and the products or services rendered or licensed to such customers or
licensees (or proposed to be rendered to prospective customers or licensees); 

  

	 	(v)	the Company’s relations with its employees and consultants (including, without limitation, salaries, job classifications and skill levels); 

 

	 	(vi)	information relating to the Company’s intellectual property and the development thereof; and 

  

	 	(vii)	any other information known by Employee to be confidential, secret and/or proprietary (including without limitation, information provided by customers, licensors, licensees or suppliers of the Company).

 8.3 Employee hereby acknowledges that all Confidential Information is considered confidential by, and is exclusively
proprietary to and a valuable trade secret of, the Company and derives independent economic value, actual or potential, to the Company from not being generally known to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use. Employee will not copy, reproduce or otherwise duplicate, record, abstract, summarize or otherwise use, any papers, records, reports, studies, computer printouts, equipment, tools or other property
owned by the Company except as expressly permitted by the Company in writing. 
 8.4 Notwithstanding the foregoing, “Confidential
Information” shall not include any of the foregoing or other data or information which: (i) has been made available to a third party by the Company or by a third party without an obligation of confidentiality; (ii) is or becomes
available in the public domain, other than by Employee in violation of this Agreement; (iii) was approved by the Company, in writing, for release or further disclosure; or (iv) was disclosed to or learned by Employee by or from a third
party, either before or after disclosure by the Company and without breach of a known obligation of confidence by the third party. 
 9. INVENTIONS, ETC.

 9.1 Ownership. Employee hereby assigns to the Company all of Employee’s rights, title, and interest (including but not
limited to all patent, trademark, copyright and trade secret rights) in and to all Work Product related to the Field (as such terms are defined in Section 9.5) prepared by Employee, made or conceived in whole or in part by Employee
during Employee’s engagement with the Company or within six (6) months thereafter or that relate directly to or involve the use of Confidential Information, and all rights to sue or recover for past infringement thereof. Employee further
acknowledges and agrees that all copyrightable Work Product related to the Field and prepared by Employee during Employee’s engagement with the Company are “works made for hire” and, consequently, that the Company owns all copyrights
thereto. 

  
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 9.2 Disclosure. Employee will promptly disclose to the Company all Work Product related to
the Field developed by Employee during Employee’s engagement with the Company or within six (6) months thereafter, including all inventions, discoveries, improvements and trade secrets related to the Field which are or have been made or
conceived by Employee, individually or jointly with others, during his engagement by the Company and within six (6) months thereafter, or during Employee’s prior period(s) of engagement with the Company, if any, and which relate to, result
from, or arise in any way out of any work done for the Company or any information or assistance provided by the Company. All such Work Product related to the Field is and shall forthwith become the property of the Company, whether or not patentable
or copyrightable. During Employee’s term of employment and thereafter, Employee will execute promptly upon request any documents or instruments at any time deemed necessary or proper by the Company in order to formally convey and transfer to
the Company title to such Work Product related to the Field, or to confirm the Company’s title therein, or in order to enable the Company to obtain and enforce United States and foreign letters patent, trademarks and copyrights thereon.
Employee will perform his obligations under this Section 9 without further compensation, except for reimbursement of reasonable out-of-pocket expenses incurred at the request of the Company. If Employee refuses, following ten
(10) days’ prior written notice from the Company, or is unable due to disability or incapacity, to execute any such documents relating to Work Product related to the Field, Employee hereby appoints each officer and director of the Company
to be his attorney-in-fact to so execute such documents on behalf of Employee. This shall be a durable power of attorney, the authority of which shall not terminate if Employee becomes disabled or incapacitated. If Employee is unable due to death to
execute any such documents relating to Work Product, Employee covenants and agrees that his heirs, successors, estate and personal representative are hereby authorized and directed to execute such documents on behalf of Employee, and upon the
failure of such heirs, successors, estate and personal representative to execute such documents, Employee does hereby authorize each officer and director of the Company to so execute such documents on behalf of Employee’s heirs, successors,
estate and personal representative. Notwithstanding anything contained in any other durable Power of Attorney, this agency is coupled with an interest and is therefore irrevocable without the prior written consent of the Company. 

9.3 Preexisting Work Product Not Assigned. Employee has specified on the signature page hereto all preexisting Work Product that was
created by Employee prior to Employee’s engagement by the Company in which Employee has any right, title, or interest and that is not being assigned to the Company hereby. If no such specification is made on the signature page, or if Employee
writes “none” or similar designation thereon, Employee shall be conclusively deemed not to have any such Work Product, and all Work Product shall be property of the Company hereunder. 

9.4 Original Development. Employee represents and warrants to the Company that all work that Employee performs for or has performed for
the Company, and all Work Product related to the Field that Employee produces or has produced, will not knowingly infringe upon or violate and has not knowingly infringed upon or violated any patent, copyright, trade secret, or other property right
of any of Employee’s former employers or of any other third party. Employee has not and will not disclose to the Company, and has not and will not use in any of Employee’s Work Product related to the Field, any confidential or proprietary
information belonging to others, unless both the owner thereof and the Company have consented. 

  
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 9.5 Definitions. For purposes of this Agreement, (i) the term “Work
Product” means all intellectual property, patents, trademarks, copyrights and trade secrets, and any applications therefor, literary works, software, documentation, memoranda, photographs, artwork, sound recordings, audiovisual works, ideas,
designs, inventions, discoveries, improvements, processes, algorithms, and so forth; and (ii) the term “Field” means (A) the treatment or therapy of gastroesophageal reflux or gastroesophageal reflux diseases and all esophageal
and extraesophageal conditions caused by gastroesophageal reflux or gastroesophageal reflux disease and/or obesity using electrostimulation in the stomach alone or in combination with the esophagus, (B) the treatment or therapy of any condition
or indication using electrostimulation in the esophagus, (C) the treatment of urinary incontinence using electrostimulation, and (D) any other medical device or treatment method as may be developed by the Company from time to time during
Employee’s employment with the Company. 
 9.6 Acknowledgements. Employee further acknowledges and agrees that the damages
resulting from any breach of the foregoing covenants may be intangible in whole or in part and that the Company is entitled to seek specific enforcement, injunctive relief and other equitable remedies in addition to monetary damages and legal
remedies, and Employee hereby stipulates to the entering of such injunctive relief enforcing the provisions of this Section 9. Employee hereby waives any bond or similar requirements for granting such injunctive relief. 

10. NON-COMPETITION AGREEMENT. 
 10.1
Employee agrees that, during the “Restricted Period” (as defined below), Employee will not, as an individual or as a partner, employee, agent, advisor, consultant or in any other capacity of or to any person, firm, corporation or other
entity, directly or indirectly: 
  

	 	(i)	carry on any business or become involved in any business activity anywhere in the world as it relates to the Field (the “Business”) or the Confidential Information; provided, however, that the foregoing
shall not prohibit Employee from owning 5% or less of the outstanding equity securities of a publicly traded entity; or 

  

	 	(ii)	hire, or assist anyone else to hire, any employee or consultant of the Company who is at that time employed or engaged by the Company, or was employed or engaged by the Company at any time during the six (6) months
prior to the termination of Employee’s engagement with the Company, or seek to persuade, or assist anyone else to seek to persuade, any such employee or consultant of the Company to discontinue their employment or engagement with the Company;
or 

  

	 	(iii)	induce or attempt to induce, or assist anyone else to induce or attempt to induce, any customer of the Company to reduce or discontinue its business with the Company, or disclose to anyone else the name and/or
requirements of any such customer. 

 10.2 For purposes of this Section 10, the term “Restricted Period” shall
mean (i) Employee’s term of employment plus (ii) a period of three (3) years following termination of this Agreement if terminated voluntarily by Employee or by the Company for Cause. If the Company terminates this Agreement
without Cause, then the Restricted Period shall end on the date of such termination. Nothing in this Section 10 shall prevent Employee from performing Employee’s duties and responsibilities for the Company. 

  
 - 6 - 

 10.3 Employee recognizes the broad territorial scope of the covenants above, but acknowledges and
agrees that the restrictions are reasonable and enforceable in view of, among other things, (i) the narrow range of activities prohibited, (ii) the national and international markets in which the Company operates and plans to operate,
(iii) the confidential, proprietary and trade secret information to which Employee has or is likely to have access, (iv) the fact that a business which competes with the Company in the Business could benefit greatly if it were to obtain
the Confidential Information of the Company, (v) the legitimate interests of the Company in protecting its Confidential Information, goodwill and relationships, (vi) the limited duration of the restrictions set forth in this
Section 10, (vii) the valuable confidential, proprietary and/or trade secret information which the Company possesses, and (viii) Employee’s past and anticipated future involvement in developing and maintaining the
Confidential Information of the Company and in developing, maintaining and fostering the Company’s customer relationships and the goodwill associated therewith and with the products and services of the Company. 

10.4 Employee expressly agrees that the covenants set forth in this Section 10 are reasonable in light of the scope of the Business
conducted and to be conducted by the Company. The parties hereto agree that each such covenant shall be deemed to be a separate, distinct and divisible covenant if and to the extent necessary to permit the enforcement of any such covenant. If any
court or tribunal of competent jurisdiction shall refuse to enforce any of the foregoing covenants because the time limit applicable thereto is deemed unreasonable, it is expressly understood and agreed that any such covenant shall not be void, but
that for the purpose of such proceedings and in such jurisdiction, such time limitation shall be deemed reduced to the extent necessary to permit enforcement of any such covenant. If any court or tribunal of competent jurisdiction shall refuse to
enforce any of the foregoing covenants because they are more extensive (whether as to geographic area, scope of business or otherwise) than is deemed reasonable, it is expressly understood and agreed between the parties hereto that any such covenant
shall not be void, but that for the purpose of such proceedings and in such jurisdiction, the restrictions contained herein (whether as to geographic area, scope of business or otherwise) shall be deemed reduced to the extent necessary to permit
enforcement of any such covenant. 
 10.5 Employee further acknowledges and agrees that the damages resulting from any breach of the
foregoing covenants may be intangible in whole or in part and that the Company is entitled to seek specific enforcement, injunctive relief and other equitable remedies in addition to monetary damages and legal remedies, and Employee hereby
stipulates to the entering of such injunctive relief prohibiting Employee from violating such covenants. 
 11. AT-WILL EMPLOYER. The Company is an
“at-will” employer. This means that the Company may terminate Employee’s employment at any time, with or without cause and without notice, and that Employee may terminate Employee’s employment at any time, with or without cause
and without notice. The Company makes no promise that Employee’s employment will continue for a set period of time, nor is there any promise that it will be terminated only under particular circumstances. No raise or bonus, if any, shall alter
Employee’s status as an “at-will” Employee or create any implied contract of employment. Discussion of possible or potential benefits in future years is not an express or implied promise of continued employment. No manager, supervisor
or officer of the Company has the authority to change Employee’s status as an “at-will” Employee. The “at-will” nature of the employment relationship with Employee can only be altered by a written resolution signed by all
the directors of the Company. No position within the Company is considered permanent. 

  
 - 7 - 

 12. BINDING ARBITRATION. 

12.1 Any dispute, claim or controversy relating to discrimination of any nature, including, without limitation, age, sex, race, religion or
national origin between employee and the Company (“Discrimination Claims”) shall be settled exclusively by arbitration pursuant to the provisions of this Section 12. 

12.2 Employee and the Company each waive their federal and state constitutional rights to have Discrimination Claims determined by a jury.
Instead of a jury trial, an arbitrator shall be chosen by the Company and Employee. Arbitration is preferred because, among other reasons, it is quicker, less expensive and less formal than litigation in court. 

12.3 The arbitrator shall not have the authority to alter, amend, modify, add to or eliminate any condition or provision of this Agreement,
including, but not limited to, the “at-will” nature of the employment relationship. The arbitration shall be held in St. Louis County, Missouri and shall be conducted in accordance with the rules of the Center for Dispute Resolution. The
award of the arbitrator shall be final and binding on the parties. Judgment upon the arbitrator’s award may be entered in any court, state or federal, having jurisdiction over the parties. If a written request for arbitration is not made within
six months of the date of the alleged wrong or violation, all remedies regarding such alleged wrong or violation shall be waived. 
 12.4
Should any court determine that any provision(s) of this Agreement to arbitrate is void or invalid, the parties specifically intend every other provision of this Agreement to arbitrate to remain enforceable and intact. The parties explicitly and
definitely prefer arbitration to recourse to the courts, for the reasons described above, and have prescribed arbitration as their sole and exclusive method of dispute resolution. 

13. NO INCONSISTENT OBLIGATIONS. Employee represents that Employee is not aware of any obligations, legal or otherwise, inconsistent with the terms of
this Agreement or Employee’s undertakings under this Agreement. 
 14. MISCELLANEOUS. 

14.1 No promises or changes in Employee’s status as an employee of the Company or any of the terms and conditions of this Agreement can be
made unless they are duly authorized by the Board (including any duly authorized committee thereof), with Employee abstaining from the vote. This Agreement and the terms and conditions described in it cannot be changed orally or by any conduct of
either Employee or the Company or any course of dealings between Employee, or another person and the Company. 
 14.2 Unless otherwise agreed
upon in writing by the parties, Employee, after termination of any employment, shall not seek nor accept employment with the Company in the future and the Company is entitled to reject without cause any application for employment with the Company
made by Employee, and not hire Employee. Employee agrees that Employee shall have no cause of action against the Company arising out of any such rejection. 

  
 - 8 - 

 14.3 This Agreement and performance under it, and any suits or special proceedings brought under
it, shall be construed in accordance with the laws of the United States of America and the State of Missouri and any arbitration, mediation or other proceeding arising hereunder shall be filed and adjudicated in St. Louis County, Missouri. 

14.4 If any term or condition, or any part of a term or condition, of this Agreement shall prove to be invalid, void or illegal, it shall in no
way affect, impair or invalidate any of the other terms or conditions of this Agreement, which shall remain in full force and effect. 
 14.5
The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of or any acquiescence in or to such provision. 

14.6 The parties to this Agreement represent and acknowledge that in executing this Agreement they do not rely and have not relied upon any
representation or statement made by the other party or the other party’s agents, attorneys or representatives regarding the subject matter, basis, or effect of this Agreement or otherwise, other than those specifically stated in this written
Agreement. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any party. This Agreement shall be construed as if each party was its author and each party hereby adopts the language
of this Agreement as if it were his, her or its own. The captions to this Agreement and its sections, subsections, tables and exhibits are inserted only for convenience and shall not be construed as part of this Agreement or as a limitation on or
broadening of the scope of this Agreement or any section, subsection, table or exhibit. 
 Signature page follows. 

  
 - 9 - 

 Employee and the Company have executed this Agreement and agree to enter into and be bound by the
provisions hereof as of the Effective Date. 
 THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. 

 

			
	ENDOSTIM, INC.
		
	By:	 	 /s/ Raul E. Perez

		 	Raul E. Perez
		 	Chairman of the Board
		 	on behalf of the Board of Directors
	
	EMPLOYEE
	
	 /s/ Bevil J. Hogg

	Bevil J. Hogg

 Preexisting Work Product (pursuant to Section 9.3): NONE

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