Document:

amar_ex101

Donohoe Advisory Associates LLC

Consulting
and Advisory Services

Exhibit 10.1

 

9901
Belward Campus Drive, Suite
175      (240) 403-4180
Office

Rockville, MD
20850         www.donohoeadvisory.com

 

Sent via Electronic Mail (ldiamond@mitescoinc.com)

 

May 19,
2021

 

Mr.
Chun-Hsien Tsai

Chairman
and Chief Executive Officer

Ainos, Inc. (f/k/a Amarillo
Biosciences, Inc.

8880
Rio San Diego Drive, Suite 800

San
Diego, CA 92108

 

Re:           

Exchange
Listing Engagement

 

Dear
Mr. Chun-Hsien:

 

The
purpose of this letter agreement (the “Agreement”) is
to confirm the engagement of Donohoe Advisory Associates LLC
(“Donohoe”) to provide assistance and advice (the
“Services”) to Ainos, Inc. (the “Company”)
in support of the Company’s efforts to obtain a listing on a
national securities exchange (“Exchange”). This letter
will constitute the entire Agreement and sets forth the scope,
timing, retainer, and fee arrangements for the
Services.

 

Scope and Timing of Services

 

The
objective of the engagement is to have Donohoe assist the Company
in connection with its efforts to obtain a listing on an Exchange.
In connection with seeking such listing, Donohoe will advise the
Company regarding the applicable Exchange listing rules, assist the
Company in its interactions with the Exchanges upon which the
Company seeks to list, and otherwise prepare and submit a listing
application and related supporting materials to the Exchange(s).
Donohoe will also serve as the primary point of contact with the
Exchange staff.

 

Retainer, Fees and Billing

 

Upon
execution of this Agreement, the Company shall pay to Donohoe a
retainer fee of $15,000 (the “Retainer
Fee”).1 The Retainer Fee
will be applied to the Company’s monthly invoices until such
time as the Retainer Fee is exhausted or the engagement under this
Agreement ends. If the Retainer Fee is exhausted prior to the
conclusion of the engagement under this Agreement, the parties
shall mutually determine what, if any, additional retainer
fee

 

1 Please make payment by wire
to:

Wells Fargo Bank,
N.A. 

Routing/ABA:
121000248

Acct:
2000043307470

SWIFT
Code: WFBIUS6S

CHIPS
Participant: ABA 0407

 

Ainos, Inc. - Donohoe Advisory Engagement

May 19,
2021

Page
2 of
4

 

 

is
required. Conversely, if upon conclusion of the engagement any
portion of the Retainer Fee remains, such remaining portion will be
refunded to the Company by Donohoe.

 

If the
Company is successful in listing on an Exchange, the Company will
be obligated to pay a “success fee” to Donohoe of
either $7,500 or that number of registered common shares equivalent
to $7,500 divided by the closing price of the Company’s
common stock on the last day of trading on the OTC market. The form
of the success fee will be determined by the Company.

 

The
billing rate for the Services provided by Donohoe and its
principals will be $550.00 per hour. Donohoe will invoice bills and
workflow to the Company on a monthly basis for each month during
which Donohoe has provided the Services. Invoices are due upon
receipt.

 

The
Company may also be billed for reasonable out-of-pocket expenses
such as travel, meals and accommodations incurred by Donohoe in
carrying out the Services, although the Company will not be billed
for telephone, postage or other incidentals in the provision of the
Services by Donohoe. Upon request, reasonable documentation of
expenses incurred by Donohoe will be provided. Payment for expenses
may be deferred to the extent the Company disputes any part of an
invoice. In any event, the parties shall seek to resolve such
dispute promptly and in good faith.

 

In
addition, in the event Donohoe or any of its employees or agents is
asked or authorized by the Company or is required by government
regulation, subpoena, or other legal process to produce documents
or serve as a witness with respect to activities or knowledge
related to this engagement, the Company will reimburse Donohoe for
expenses and professional time at the rate of $550.00 per hour.
Further, the Company will reimburse Donohoe for reasonable fees and
expenses incurred in the retention of separate legal counsel in
responding to such requests.

 

Confidentiality

 

Donohoe
agrees that in connection with the Services to be provided it will
have access to certain Confidential Information (as defined
herein). As a result, Donohoe agrees to hold such Confidential
Information in the strictest confidence and shall not disclose such
Confidential Information without the prior consent of the
Company.

 

For the
purposes of this Agreement, Confidential Information shall be
defined as information and other materials, regardless of the form
of communication, that contain or otherwise reflect information
concerning the Company that Donohoe may be provided in the course
of providing the Services. Information shall not be deemed
confidential if (i) it is in the public domain prior to the
disclosure under this Agreement, (ii) it was previously known to
Donohoe or independently received by Donohoe from a third party not
under a similar obligation of confidentiality or nondisclosure, or
(iii) it was developed independently by Donohoe and not considered
to be Confidential Information.

 

 

Ainos, Inc. - Donohoe Advisory Engagement

May 19,
2021

Page
3 of
4

 

 

Termination

 

This Agreement can be terminated, with or without cause, by either
party upon ten days’ written notice to the other party. Upon
receipt of a notice for termination, Donohoe will immediately cease
providing Services unless such further services are agreed to in
advance by the Company. Notwithstanding any such termination,
Donohoe will continue, post-termination, to honor its obligations
with respect to the confidentiality and non-disclosure of
information obtained during the course of this
engagement.

 

Other Matters

 

Donohoe
will not be providing legal advice to the Company or its management
in connection with this engagement, by signing below, the Company
acknowledges that it has access to separate legal
counsel.

 

In no
event, regardless of the legal theory advanced, shall Donohoe be
liable other than for its gross negligence or willful misconduct,
and any such liability shall be limited to the amount actually paid
to Donohoe under this Agreement. Under no circumstances shall
Donohoe be liable for consequential, incidental, indirect,
punitive, or special damages (including loss of profits, data,
business or goodwill), regardless of the legal theory advanced or
of any notice given as to the likelihood of such damages. If any
portion of this Agreement is held to be void, invalid, or otherwise
unenforceable, in whole or part, the remaining portions of this
Agreement shall remain in effect.

 

[Remainder
of page intentionally left blank]

 

 

Ainos, Inc. - Donohoe Advisory Engagement

May 19,
2021

Page
4 of
4

 

 

 

If
these arrangements are acceptable, please indicate by signing a
copy of this agreement and returning it to the above
address.

 

           Sincerely,

 

/s/ David A. Donohoe

 

David
A. Donohoe, Jr.

President

Donohoe
Advisory Associates LLC

 

Date:
05.19.2021

 

 

Accepted
By: _/s/ Chun-Hsien
Tsai _____

 

Print Name/Title: Chief Executive Officer and Chief
Financial Officer

On
behalf of: Ainos, Inc.

 

Date:
_05-19-2021_____asmb-ex101_16.htm

Exhibit 10.1

 

AMENDMENT NO. 4

TO

ASSEMBLY BIOSCIENCES, INC.

2018 STOCK INCENTIVE PLAN

Assembly Biosciences, Inc., a Delaware corporation (the “Company”) adopted the 2018 Stock Incentive Plan on May 30, 2018, which was amended by Amendment No. 1 to Assembly Biosciences, Inc. 2018 Stock Incentive Plan effective as of May 17, 2019, by Omnibus Amendment to Assembly Biosciences, Inc. Stock Plans effective as of March 11, 2020 and by Amendment No. 3 effective as of June 11, 2020 (as amended from time to time, the “Plan”). 

Prior to this Amendment No. 4 to the Plan, the number of shares of Common Stock, par value $0.001 per share, reserved under the Plan was 4,600,000.

The Board of Directors of the Company (the “Board”) may, with stockholder approval, amend the Plan to increase the number of authorized shares reserved for issuance under the Plan.

The Board has determined that it is advantageous to the Company and necessary to attract and retain the best available personnel to amend the Plan to increase the number of shares reserved for issuance under the Plan.

Now, therefore, the Plan is hereby amended as follows:

1.Section 3(a) of the Plan shall be amended as follows:

“(a)Subject to the provisions of Sections 3(b) and 12 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is Six Million Six Hundred Thousand (6,600,000) Shares. The Shares granted under the Plan may be authorized, but unissued, or reacquired Common Stock.

Except as expressly set forth in this Amendment No. 4, all other terms and conditions set forth in the Plan shall remain in full force and effect. Each capitalized term used and not defined herein shall have the meaning set forth in the Plan.

Subject to approval of the stockholders, this Amendment No. 4 has been adopted by the Board of Directors of the Company as of March 18, 2021.

This Amendment No. 4 will be submitted to the stockholders of the Company for approval at the annual stockholders meeting to be held on May 20, 2021 and will become effective upon receipt of approval by the stockholders.

March 18, 2021: Subject to Stockholder Approval, adopted by Board of Directors

May 20, 2021: Approved by Stockholdersasmb-ex102_15.htm

Exhibit 10.2

 

AMENDED AND RESTATED 2018 EMPLOYEE STOCK PURCHASE PLAN 

The purpose of the Assembly Biosciences, Inc. 2018 Employee Stock Purchase Plan (“the Plan”) is to provide eligible employees of Assembly Biosciences, Inc. (the “Company”) and each Designated Subsidiary (as defined in Section 11) with opportunities to purchase shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). An aggregate of 1,300,000 shares of Common Stock have been approved and reserved for this purpose. 

The Plan includes two components: a Code Section 423 Component (the “423 Component”) and a non-Code Section 423 Component (the “Non-423 Component”). It is intended for the 423 Component to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and the 423 Component shall be interpreted in accordance with that intent (although the Company makes no undertaking or representation to maintain such qualification). In addition, this Plan authorizes the grant of options under the Non-423 Component that does not qualify as an “employee stock purchase plan” under Section 423 of the Code. Except as otherwise provided herein, the Non-423 Component will operate and be administered in the same manner as the 423 Component. 

1.Administration. The Plan will be administered by the person or persons (the “Administrator”) appointed by the Company’s Board of Directors (the “Board”) for such purpose. The Administrator has authority at any time to: (i) adopt, alter and repeal such rules, guidelines and practices for the administration of the Plan and for its own acts and proceedings as it shall deem advisable; (ii) interpret the terms and provisions of the Plan; (iii) make all determinations it deems advisable for the administration of the Plan; (iv) decide all disputes arising in connection with the Plan; and (v) otherwise supervise the administration of the Plan. All interpretations and decisions of the Administrator shall be binding on all persons, including the Company and the Participants. No member of the Board or individual exercising administrative authority with respect to the Plan shall be liable for any action or determination made in good faith with respect to the Plan or any option granted hereunder. 

2.Offerings. The Company will make one or more offerings to eligible employees to purchase Common Stock under the Plan (“Offerings”). Unless otherwise determined by the Administrator, the initial Offering will begin on June 15, 2018 and will end on the following November 14th (the “Initial Offering”). Thereafter, unless otherwise determined by the Administrator, an Offering will begin on the first business day occurring on or after each November 15th and May 15th and will end on the last business day occurring on or before the following May 14th and November 14th, respectively. The Administrator may, in its discretion, designate a different period for any Offering, provided that no Offering shall exceed six months in duration or overlap any other Offering. 

3.Eligibility. All individuals classified as employees on the payroll records of the Company and each Designated Subsidiary are eligible to participate in any one or more of the Offerings under the Plan, provided that as of the first day of the applicable Offering (the “Offering Date”) they are employed by the Company or a Designated Subsidiary and have completed at least 30 days of employment. Notwithstanding any other provision herein, individuals who are not contemporaneously classified as employees of the Company or a Designated Subsidiary for purposes of the Company’s or applicable Designated Subsidiary’s payroll system are not considered to be eligible employees of the Company or any Designated Subsidiary and shall not be eligible to participate in the Plan. In the event any such individuals are reclassified as employees of the Company or a Designated Subsidiary for any purpose, including, without limitation, common law or statutory employees, by any action of any third party, including, without limitation, any government agency, or as a result of any private lawsuit, action or administrative proceeding, such individuals shall, notwithstanding such reclassification, remain ineligible for participation. Notwithstanding the foregoing, the exclusive means for individuals who are not contemporaneously classified as employees of the Company or a Designated Subsidiary on the Company’s or Designated Subsidiary’s payroll system to become eligible to participate in this Plan is through an amendment to this Plan, duly executed by the Company, which specifically renders such individuals eligible to participate herein. 

4.Participation. 

(a)  An eligible employee who is not a Participant in any prior Offering may participate in a subsequent Offering by submitting an enrollment form to his or her appropriate payroll location at least 15 business 

 

 

days before the Offering Date (or by such other deadline as shall be established by the Administrator for the Offering). 

(b)  The enrollment form will (a) state a whole percentage to be deducted from an eligible employee’s Compensation (as defined in Section 11) per pay period, (b) authorize the purchase of Common Stock in each Offering in accordance with the terms of the Plan and (c) specify the exact name or names in which shares of Common Stock purchased for such individual are to be issued pursuant to Section 10. An employee who does not enroll in accordance with these procedures will be deemed to have waived the right to participate. Unless a Participant files a new enrollment form or withdraws from the Plan, such Participant’s deductions and purchases will continue at the same percentage of Compensation for future Offerings, provided he or she remains eligible. 

(c)  Notwithstanding the foregoing, participation in the Plan will neither be permitted nor be denied contrary to the requirements of the Code. 

5.Employee Contributions. Each eligible employee may authorize payroll deductions at a minimum of one percent up to a maximum of 15 percent of such employee’s Compensation for each pay period. The Company will maintain book accounts showing the amount of payroll deductions made by each Participant for each Offering. No interest will accrue or be paid on payroll deductions. 

6.Deduction Changes. Except as may be determined by the Administrator in advance of an Offering, a Participant may not increase or decrease his or her payroll deduction during any Offering, but may increase or decrease his or her payroll deduction with respect to the next Offering (subject to the limitations of Section 5) by filing a new enrollment form at least 15 business days before the next Offering Date (or by such other deadline as shall be established by the Administrator for the Offering). The Administrator may, in advance of any Offering, establish rules permitting a Participant to increase, decrease or terminate his or her payroll deduction during an Offering. 

7.Withdrawal. A Participant may withdraw from participation in the Plan by delivering a written notice of withdrawal to his or her appropriate payroll location. The Participant’s withdrawal will be effective as of the next business day. Following a Participant’s withdrawal, the Company will promptly refund such individual’s entire account balance under the Plan to him or her (after payment for any Common Stock purchased before the effective date of withdrawal). Partial withdrawals are not permitted. Such an employee may not begin participation again during the remainder of the Offering, but may enroll in a subsequent Offering in accordance with Section 4. 

8.Grant of Options. On each Offering Date, the Company will grant to each eligible employee who is then a Participant in the Plan an option (“Option”) to purchase on the last day of such Offering (the “Exercise Date”), at the Option Price hereinafter provided for, the lowest of (a) a number of shares of Common Stock determined by dividing such Participant’s accumulated payroll deductions on such Exercise Date by the Option Price (as defined herein), (b) 2,500 shares; or (c) such other lesser maximum number of shares as shall have been established by the Administrator in advance of the Offering; provided, however, that such Option shall be subject to the limitations set forth below. Each Participant’s Option shall be exercisable only to the extent of such Participant’s accumulated payroll deductions on the Exercise Date. The purchase price for each share purchased under each Option (the “Option Price”) will be 85 percent of the Fair Market Value of the Common Stock on the Offering Date or the Exercise Date, whichever is less. 

Notwithstanding the foregoing, no Participant may be granted an option hereunder if such Participant, immediately after the option was granted, would be treated as owning stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or any Parent or Subsidiary (as defined in Section 11). For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of a Participant, and all stock which the Participant has a contractual right to purchase shall be treated as stock owned by the Participant. In addition, no Participant may be granted an Option which permits his or her rights to purchase stock under the Plan, and any other employee stock purchase plan of the Company and its Parents and Subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such stock (determined on the option grant date or dates) for each calendar year in which the Option is outstanding at any time. The purpose of the limitation in the preceding sentence is to comply with Section 423(b)(8) of the Code and shall be applied taking Options into account in the order in which they were granted. 

 

 

9.Exercise of Option and Purchase of Shares. Each employee who continues to be a Participant in the Plan on the Exercise Date shall be deemed to have exercised his or her Option on such date and shall acquire from the Company such number of whole shares of Common Stock reserved for the purpose of the Plan as his or her accumulated payroll deductions on such date will purchase at the Option Price, subject to any other limitations contained in the Plan. Any amount remaining in a Participant’s account at the end of an Offering solely by reason of the inability to purchase a fractional share will be carried forward to the next Offering; any other balance remaining in a Participant’s account at the end of an Offering will be refunded to the Participant promptly. 

10.Issuance of Certificates. Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or in the name of a broker authorized by the employee to be his, her or their, nominee for such purpose. 

11.Definitions. 

The term “Compensation” means the amount of base pay, prior to salary reduction pursuant to Sections 125, 132(f) or 401(k) of the Code, but excluding overtime, commissions, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances or travel expenses, income or gains on the exercise of Company stock options, and similar items. 

The term “Designated Subsidiary” means any present or future Subsidiary (as defined below) that has been designated by the Board to participate in the Plan. The Board may so designate any Subsidiary, or revoke any such designation, at any time and from time to time, either before or after the Plan is approved by the stockholders and may further designate such Subsidiaries as participating in the 423 Component or the Non-423 Component. The current list of Designated Subsidiaries is attached hereto as Appendix A. 

The term “Fair Market Value of the Common Stock” on any given date means the fair market value of the Common Stock determined in good faith by the Administrator; provided, however, that if the Common Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”), NASDAQ Global Select Market or The NASDAQ Capital Market of The NASDAQ Stock Market LLC or another national securities exchange, the determination shall be made by reference to the closing price on such date. If there is no closing price for such date, the determination shall be made by reference to the last date preceding such date for which there is a closing price. 

The term “Parent” means a “parent corporation” with respect to the Company, as defined in Section 424(e) of the Code. 

The term “Participant” means an individual who is eligible as determined in Section 3 and who has complied with the provisions of Section 4. 

The term “Subsidiary” means a “subsidiary corporation” with respect to the Company, as defined in Section 424(f) of the Code. 

The term “Corporate Transaction” means any of the following transactions, provided, however, that the Administrator shall determine under parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 

(i)a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated;

(ii)the sale, transfer or other disposition of all or substantially all of the assets of the Company;

(iii)the complete liquidation or dissolution of the Company; 

 

 

(iv)any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger; or

(v)acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities.

12.Rights on Termination of Employment. If a Participant’s employment terminates for any reason before the Exercise Date for any Offering, no payroll deduction will be taken from any pay due and owing to the Participant and the balance in the Participant’s account will be paid to such Participant or, in the case of such Participant’s death, to his or her designated beneficiary as if such Participant had withdrawn from the Plan under Section 7. An employee will be deemed to have terminated employment, for this purpose, if the corporation that employs him or her, having been a Designated Subsidiary, ceases to be a Subsidiary, or if the employee is transferred to any corporation other than the Company or a Designated Subsidiary. An employee will not be deemed to have terminated employment for this purpose, if the employee is on an approved leave of absence for military service or sickness or for any other purpose approved by the Company, if the employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise provides in writing. 

13.Special Rules. Notwithstanding anything herein to the contrary, the Administrator may adopt special rules applicable to the employees of a particular Designated Subsidiary, whenever the Administrator determines that such rules are necessary or appropriate for the implementation of the Plan in a jurisdiction where such Designated Subsidiary has employees; provided that if such rules are inconsistent with the requirements of Section 423(b) of the Code, these employees will participate in the Non-423 Component. Any special rules established pursuant to this Section 13 shall, to the extent possible, result in the employees subject to such rules having substantially the same rights as other Participants in the Plan. 

14.Optionees Not Stockholders. Neither the granting of an Option to a Participant nor the deductions from his or her pay shall constitute such Participant a holder of the shares of Common Stock covered by an Option under the Plan until such shares have been purchased by and issued to him or her. 

15.Rights Not Transferable. Rights under the Plan are not transferable by a Participant other than by will or the laws of descent and distribution, and are exercisable during the Participant’s lifetime only by the Participant. 

16.Designation of Beneficiary.

(a)  A Participant may file a written designation of a beneficiary who is to receive any shares of Common Stock and/or cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to the end of an Offering but prior to delivery to the Participant of such shares of Common Stock or cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death during an Offering. Any such designation shall be on a form provided by or otherwise acceptable to the Company.

(b)  The Participant may change such designation of beneficiary at any time by written notice to the Company. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company shall deliver such shares of Common Stock and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole discretion, may 

 

 

deliver such shares of Common Stock and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

17.Application of Funds. All funds received or held by the Company under the Plan may be combined with other corporate funds and may be used for any corporate purpose. 

18.Adjustment in Case of Changes Affecting Common Stock; Corporate Transaction. 

(a)  In the event of a subdivision of outstanding shares of Common Stock, the payment of a dividend in Common Stock or any other change affecting the Common Stock, the number of shares approved for the Plan and the share limitation set forth in Section 8 shall be equitably or proportionately adjusted to give proper effect to such event. 

(b)  In the event of a Corporate Transaction, then the Participants’ accumulated payroll deductions under an ongoing Offering shall be used to purchase shares of Common Stock subject to the limitations in this Plan on a date determined by the Company within ten (10) business days prior to the closing of the Corporate Transaction, which date shall constitute the Exercise Date under this Plan, and the Plan shall terminate immediately after such Exercise Date and the issuance of the shares purchased on such Exercise Date.

19.Amendment of the Plan. The Board may at any time and from time to time amend the Plan in any respect, except that without the approval within 12 months of such Board action by the stockholders, no amendment shall be made increasing the number of shares approved for the Plan or making any other change that would require stockholder approval in order for the Plan, as amended, to qualify as an “employee stock purchase plan” under Section 423(b) of the Code. 

20.Insufficient Shares. If the total number of shares of Common Stock that would otherwise be purchased on any Exercise Date plus the number of shares purchased under previous Offerings under the Plan exceeds the maximum number of shares issuable under the Plan, the shares then available shall be apportioned among Participants in proportion to the amount of payroll deductions accumulated on behalf of each Participant that would otherwise be used to purchase Common Stock on such Exercise Date. 

21.Termination of the Plan. Except as otherwise contemplated under Section 18(b) with respect to a Corporate Transaction, the Plan may be terminated at any time by the Board. Upon termination of the Plan, all amounts in the accounts of Participants shall be promptly refunded. 

22.Governmental Regulations. The Company’s obligation to sell and deliver Common Stock under the Plan is subject to obtaining all governmental approvals required in connection with the authorization, issuance, or sale of such stock. 

23.Governing Law. This Plan and all Options and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles. 

24.Issuance of Shares. Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source. 

25.Tax Withholding. Participation in the Plan is subject to any minimum required tax withholding on income of the Participant in connection with the Plan. Each Participant agrees, by entering the Plan, that the Company and its Subsidiaries shall have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant, including shares issuable under the Plan. 

26.Notification Upon Sale of Shares. Each Participant agrees, by entering the Plan, to give the Company prompt notice of any disposition of shares purchased under the Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased or within one year after the date such shares were purchased. 

 

 

27.Effective Date and Approval of Shareholders. The Plan shall take effect on the later of the date it is adopted by the Board and the date it is approved by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present or by written consent of the stockholders. 

 

 

 

 

 

APPENDIX A 

Designated Subsidiaries 

 

None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]