Document:

rng-ex109_523.htm

 

Exhibit 10.9

RINGCENTRAL, INC.

BONUS PLAN

1.Purposes of the Plan. This Bonus Plan (the “Plan”) is intended to increase shareholder value and the success of the Company by motivating Employees to (a) perform to the best of their abilities, and (b) achieve the Company’s objectives. 

2.Definitions.

(a)“Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company.

(b)“Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period, subject to the Committee’s authority under Section 3(d) to modify the award.

(c)“Board” means the Board of Directors of the Company.  

(d)“Bonus Pool” means the pool of funds available for distribution to Participants.  Subject to the terms of the Plan, the Committee establishes the Bonus Pool for each Performance Period.

(e)“Code” means the Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

(f)“Committee” means the committee appointed by the Board (pursuant to Section 5) to administer the Plan.  Unless and until the Board otherwise determines, the Board’s Compensation Committee will administer the Plan.  

(g)“Company” means RingCentral, Inc., or any successor thereto.

(h)“Disability” means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by the Committee from time to time.

(i)“Employee” means any executive or key employee of the Company or of an Affiliate, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan.

(j)“Participant” means as to any Performance Period, an Employee who has been selected by the Committee for participation in the Plan for that Performance Period.

(k)“Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive an Actual Award, as determined by the Committee in its sole discretion.  A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the Committee desires to measure some performance criteria over 12 months and other criteria over 3 months.

 

 

 

(l)“Plan” means this Bonus Plan, as set forth in this instrument and as hereafter amended from time to time. 

(m)“Target Award” means the target award, at 100% performance achievement, payable under the Plan to a Participant for the Performance Period, as determined by the Committee in accordance with Section 3(b).

(n)“Termination of Service” means a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate.

3.Selection of Participants and Determination of Awards. 

(a)Selection of Participants.  The Committee, in its sole discretion, will select the Employees who will be Participants for any Performance Period.  Participation in the Plan is in the sole discretion of the Committee, on a Performance Period by Performance Period basis.  Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Periods.  

(b)Determination of Target Awards.  The Committee, in its sole discretion, will establish a Target Award for each Participant, which generally will be a percentage of a Participant’s average annual base salary for the Performance Period.  

(c)Bonus Pool.  Each Performance Period, the Committee, in its sole discretion, will establish a Bonus Pool.  Actual Awards will be paid from the Bonus Pool.  

(d)Discretion to Modify Awards.  Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion and at any time, (i) increase, reduce or eliminate a Participant’s Actual Award, and/or (ii) increase, reduce or eliminate the amount allocated to the Bonus Pool.  The Committee may determine the amount of any increase or reduction on the basis of such factors as it deems relevant, and will not be required to establish any allocation or weighting with respect to the factors it considers.  

(e)Discretion to Determine Criteria.  Notwithstanding any contrary provision of the Plan, the Committee will, in its sole discretion, determine the performance goals applicable to any Target Award which requirement may include, without limitation, (i) cash flow, (ii) cash position, (ii) earnings (which may include earnings before interest and taxes, earnings before taxes and net earnings), (iii) earnings per share, (iv) net income, (v) net profit, (vi) net sales, (vii) operating cash flow, (xxiv) operating expenses, (xxv) operating income, (xxvi) operating margin, (xxvii) overhead or other expense reduction, (xxviii) product defect measures, (xxix) product release timelines, (xxx) productivity, (xxxi) profit, (xxxii) return on assets, (xxxiii) return on capital, (xxxiv) return on equity, (xxxv) return on investment, (xxxvi) return on sales, (xxxvii) revenue, (xxxviii) revenue growth, (xxxix) sales results, (xl) sales growth, (xli) stock price, (xlii) time to market, (xliii) total stockholder return, (xliv) working capital, and individual objectives such as peer reviews or other subjective or objective criteria.  As determined by the Committee, the performance goals may be based on GAAP or Non-GAAP results and any actual results may be adjusted by the Committee for one-time items or unbudgeted or unexpected items when determining whether the performance goals have been met.  The goals may be on the basis of any factors the Committee determines relevant, and may be on an individual, divisional, business unit or Company-wide basis.  The performance goals may differ from 

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Participant to Participant and from award to award.  The Committee may, in its discretion, determine to set forth the applicable performance goals in writing from time-to-time, which writing shall be attached hereto as Appendix A.  Failure to meet the goals will result in a failure to earn the Target Award, except as provided in Section 3(d).  

4.Payment of Awards.

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

(b)Timing of Payment.  Payment of each Actual Award shall be made as soon as practicable as determined by the Committee after the end of the Performance Period during which the Actual Award was earned, but in no event later than the fifteenth day of the third month of the Fiscal Year following the date the Participant’s Actual Award is no longer subject to a substantial risk of forfeiture.  Unless otherwise determined by the Committee, a Participant must be employed by the Company or any Affiliate on the last day of the Performance Period to receive a payment under the Plan.

It is the intent that this Plan comply with the requirements of Code Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Code Section 409A, and any ambiguities herein will be interpreted to so comply.

(c)Form of Payment.  Each Actual Award will be paid in cash (or its equivalent) in a single lump sum.  

(d)Payment in the Event of Death or Disability.  If a Participant dies or becomes Disabled prior to the payment of an Actual Award earned by him or her prior to death or Disability for a prior Performance Period, the Actual Award will be paid to his or her estate or to the Participant, as the case may be, subject to the Committee’s discretion to reduce or eliminate any Actual Award otherwise payable.

5.Plan Administration.

(a)Committee is the Administrator.  The Plan will be administered by the Committee or, if no Committee has been appointed, the Plan shall be administered by the Board.  The Committee will consist of not less than two (2) members of the Board.  The members of the Committee will be appointed from time to time by, and serve at the pleasure of, the Board.

(b)Committee Authority.  It will be the duty of the Committee to administer the Plan in accordance with the Plan's provisions.  The Committee will have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (i) determine which Employees will be granted awards, (ii) prescribe the terms and conditions of awards, (iii) interpret the Plan and the awards, (iv) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (v) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (vi) interpret, amend or revoke any such rules.  

(c)Decisions Binding.  All determinations and decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan will be final, conclusive, and binding on all persons, and will be given the maximum deference permitted by law.  

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(d)Delegation by Committee.  The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company.  

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

6.General Provisions. 

(a)Tax Withholding.  The Company will withhold all applicable taxes from any Actual Award, including any federal, state and local taxes (including, but not limited to, the Participant’s FICA and SDI obligations).  

(b)No Effect on Employment or Service.  Nothing in the Plan will interfere with or limit in any way the right of the Company to terminate any Participant's employment or service at any time, with or without cause.  For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) will not be deemed a Termination of Service.  Employment with the Company and its Affiliates is on an at-will basis only.  The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant.  

(c)Participation.  No Employee will have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award.  

(d)Successors.  All obligations of the Company under the Plan, with respect to awards granted hereunder, will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.  

(e)Beneficiary Designations.  If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid award will be paid in the event of the Participant's death.  Each such designation will revoke all prior designations by the Participant and will be effective only if given in a form and manner acceptable to the Committee.  In the absence of any such designation, any vested benefits remaining unpaid at the Participant's death will be paid to the Participant's estate.  

(f)Nontransferability of Awards.  No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of 

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descent and distribution, or to the limited extent provided in Section 6(e).  All rights with respect to an award granted to a Participant will be available during his or her lifetime only to the Participant.  

7.Amendment, Termination, and Duration.

(a)Amendment, Suspension, or Termination.  The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award theretofore earned by such Participant.  No award may be granted during any period of suspension or after termination of the Plan.  

(b)Duration of Plan.  The Plan will commence on the date specified herein, and subject to Section 7(a) (regarding the Board's right to amend or terminate the Plan), will remain in effect thereafter.

8.Legal Construction.  

(a)Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also will include the feminine; the plural will include the singular and the singular will include the plural.  

(b)Severability.  In the event any provision of the Plan will be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provision had not been included.  

(c)Requirements of Law.  The granting of awards under the Plan will be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.  

(d)Governing Law.  The Plan and all awards will be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions.  

(e)Bonus Plan.  The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulation 2510.3-2(c) and will be construed and administered in accordance with such intention.  

(f)Captions.  Captions are provided herein for convenience only, and will not serve as a basis for interpretation or construction of the Plan. 

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APPENDIX A-2016 Q1

To RingCentral, Inc. Executive Bonus Plan

2016 First Quarter Performance Goals

(Effective as of January 1, 2016)

	
1.
	
2016 Q1 Performance Period and Performance Goals.  For the first quarter of calendar year 2016, there is one quarterly Performance Period, ending on March 31, 2016 (the “2016 Q1 Performance Period”).  For the 2016 Q1 Performance Period, there are two equally weighted (50% each) performance goals (each, a “2016 Q1 Performance Goal”): Revenue and Operating Margin (each as defined below).   The chart below set forth the Revenue and Operating Margin Performance Goals for the 2016 Q1 Performance Period.

 

			
	
2016 Q1 Performance Period
	
Revenue Performance Goal (in millions)
	
Operating Margin Performance Goal

	
Q1
	
$83.7
	
0.4%

 

“Revenue” means as to the 2016 Q1 Performance Period, the Company’s net revenues generated from third parties, including both services revenues and product revenues as defined in the Company’s Form 10-Q filed for the calendar quarter ended March 31, 2016.  Net revenue is defined as gross sales less any pertinent discounts, refunds or other contra-revenue amounts, as presented on the Company’s press releases reporting its quarterly financial results.

“Operating Margin” means as to the 2016 Q1 Performance Period, the Company’s non-GAAP operating income divided by its Revenue.  Non-GAAP operating income means the Company’s Revenues less cost of revenues and operating expenses, excluding the impact of stock-based compensation expense, amortization of acquisition related intangibles, legal settlement related charges and as adjusted for certain acquisitions, as presented on the Company’s press releases reporting its quarterly financial results..

	
2.
	
Funding of 2016 Q1 Bonus Pool.  Subject to the terms of the Plan, including but not limited to Section 3(d) of the Plan, following the end of the 2016 Q1 Performance Period, the Committee will determine the extent to which each of the 2016 Q1 Performance Goals are achieved in accordance with the following guidelines.

	
 
	
(a)
	
If the Company achieves Revenue in the 2016 Q1 Performance Period that is lower than the amount of Revenue expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q1 Performance Period (“Revenue Floor”), the 2016 Q1 Bonus Pool related to the Revenue Performance Goal for such 2016 Q1 Performance Period will not fund. 

	
 
	
(b)
	
If the Company achieves Operating Margin in the 2016 Q1 Performance Period that is lower than the Operating Margin expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q1 Performance Period (“Operating Margin Floor”), the 2016 Q1 Bonus Pool related to the Operating Margin Performance Goal for such 2016 Q1 Performance Period will not fund.

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(c)
	
If the Company achieves Revenue that is at least equal to the Revenue Floor, the 2016 Q1 Bonus Pool related to the Revenue Performance goal for the 2016 Q1 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Revenue:  For 100% of the Bonus Pool with respect to Revenue to fund, 100% to 102% of the Performance Goal for Revenue must be achieved.  For each 0.5% of Revenue that is achieved above 102% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be increased by 5%, and for each 0.5% of Revenue that is achieved below 100% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be reduced by 5%.

	
 
	
(d)
	
If the Company achieves Operating Margin that is at least equal to the Operating Margin Floor, the 2016 Q1 Bonus Pool related to the Operating Margin Performance goal for the 2016 Q1 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Operating Margin: For 100% of the Bonus Pool with respect to Operating Margin to fund, 100% of the Performance Goal for Operating Margin must be achieved.  For each 0.5% of Operating Margin that is achieved above the Performance Goal for Operating Margin, the Bonus Pool with respect to operating Margin will be increased by 5% (up to a maximum of 120%), and for each 0.5% of Operating Margin that is achieved below the Performance Goal for Operating Margin, the Bonus Pool with respect to Operating Margin will be reduced by 5%.

The chart below illustrates examples of the funding multiple that will apply to each Performance Goal.

 

	
Performance Goal Achievement Revenue
	
2016 Q1 Bonus Pool Funding Multiple for Revenue*
	
Performance Goal Achievement Operating Margin
	
2016 Q1 Bonus Pool Funding Multiple for Operating Margin*

	
97%
	
.70x
	
1.5% below Goal
	
.85x

	
97.5%
	
.75x
	
1.0% below Goal
	
.90x

	
98%
	
.80x
	
0.5% below Goal
	
.95x

	
98.5%
	
.85x
	
At Goal
	
1.00x

	
99%
	
.90x
	
0.5% above Goal
	
1.05x

	
99.5%
	
.95x
	
1.0% above Goal
	
1.10x

	
100% - 102%
	
1.00x
	
1.5% above Goal
	
1.15x

	
102.5%
	
1.05x
	
2.0% above Goal
	
1.20x

	
103%
	
1.10x
	
--
	
--

	
103.5%
	
1.15x
	
--
	
--

	
104%
	
1.20x
	
--
	
--

 

* “x” equals the target bonus amount at achievement of 100%-102% of the 2016 Q1 Performance Goal for Revenue, and equals the target bonus amount at achievement of 100% of the 2016 Q1 Performance Goal for Operating Margin.  The lowest Funding Multiple for Revenue set forth above assumes that the achievement of the 2016 Q1 Performance Goal for Revenue is equal to at least the Revenue Floor required to fund the 2016 Q1 Bonus Plan.  The maximum Funding Multiple for Operating Margin shall be 1.20x.  There is no maximum Funding Multiple for Revenue.

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Illustration 

For example, if the Company achieves its Revenue at 101% of the 2016 Q1 Performance Goal for Revenue and achieves its Operating Margin at 1.3% above the 2016 Q1 Performance Goal for Operating Margin, the 2016 Q1 Bonus Pool will fund as to 106.5%, determined as follows:

	
 
	
-
	
50% on achievement of the Revenue 2016 Q1 Performance Goal (50% weighted target * 1.00x)

	
 
	
-
	
56.5% on achievement of the Operating Margin 2016 Q1 Performance Goal (50% weighted target * 1.13x)

 

3. Timing of Bonus Payments.  Quarterly bonuses earned under this 2016 Q1 Bonus Plan shall be paid in the quarter following the quarter in which earned.  

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APPENDIX A-2016 Q2

To RingCentral, Inc. Executive Bonus Plan

2016 Second Quarter Performance Goals

(Effective as of April 1, 2016)

1. 2016 Q2 Performance Period and Performance Goals.  For the second quarter of calendar year 2016, there is one quarterly Performance Period, ending on June 30, 2016 (the “2016 Q2 Performance Period”).  For the 2016 Q2 Performance Period, there are two equally weighted (50% each) performance goals (each, a “2016 Q2 Performance Goal”): Revenue and Operating Margin (each as defined below).   The chart below set forth the Revenue and Operating Margin Performance Goals for the 2016 Q2 Performance Period.

 

			
	
2016 Q2 Performance Period
	
Revenue Performance Goal (in millions)
	
Operating Margin Performance Goal

	
Q2
	
$87.2
	
0.9%

“Revenue” means as to the 2016 Q2 Performance Period, the Company’s net revenues generated from third parties, including both services revenues and product revenues as defined in the Company’s Form 10-Q filed for the calendar quarter ended June 30, 2016.  Net revenue is defined as gross sales less any pertinent discounts, refunds or other contra-revenue amounts, as presented on the Company’s press releases reporting its quarterly financial results.

“Operating Margin” means as to the 2016 Q2 Performance Period, the Company’s non-GAAP operating income divided by its Revenue.  Non-GAAP operating income means the Company’s Revenues less cost of revenues and operating expenses, excluding the impact of stock-based compensation expense, amortization of acquisition related intangibles, legal settlement related charges and as adjusted for certain acquisitions, as presented on the Company’s press releases reporting its quarterly financial results..

2. Funding of 2016 Q2 Bonus Pool.  Subject to the terms of the Plan, including but not limited to Section 3(d) of the Plan, following the end of the 2016 Q2 Performance Period, the Committee will determine the extent to which each of the 2016 Q2 Performance Goals are achieved in accordance with the following guidelines.

	
 
	
(a)
	
If the Company achieves Revenue in the 2016 Q2 Performance Period that is lower than the amount of Revenue expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q2 Performance Period (“Revenue Floor”), the 2016 Q2 Bonus Pool related to the Revenue Performance Goal for such 2016 Q2 Performance Period will not fund. 

	
 
	
(b)
	
If the Company achieves Operating Margin in the 2016 Q2 Performance Period that is lower than the Operating Margin expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q2 Performance Period (“Operating Margin Floor”), the 2016 Q2 Bonus Pool related to the Operating Margin Performance Goal for such 2016 Q2 Performance Period will not fund.

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(c)
	
If the Company achieves Revenue that is at least equal to the Revenue Floor, the 2016 Q2 Bonus Pool related to the Revenue Performance goal for the 2016 Q2 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Revenue:  For 100% of the Bonus Pool with respect to Revenue to fund, 100% to 102% of the Performance Goal for Revenue must be achieved.  For each 0.5% of Revenue that is achieved above 102% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be increased by 5%, and for each 0.5% of Revenue that is achieved below 100% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be reduced by 5%.

	
 
	
(d)
	
If the Company achieves Operating Margin that is at least equal to the Operating Margin Floor, the 2016 Q2 Bonus Pool related to the Operating Margin Performance goal for the 2016 Q2 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Operating Margin: For 100% of the Bonus Pool with respect to Operating Margin to fund, 100% of the Performance Goal for Operating Margin must be achieved.  For each 0.5% of Operating Margin that is achieved above the Performance Goal for Operating Margin, the Bonus Pool with respect to operating Margin will be increased by 5% (up to a maximum of 120%), and for each 0.5% of Operating Margin that is achieved below the Performance Goal for Operating Margin, the Bonus Pool with respect to Operating Margin will be reduced by 5%.

The chart below illustrates examples of the funding multiple that will apply to each Performance Goal.

 

	
Performance Goal Achievement Revenue
	
2016 Q2 Bonus Pool Funding Multiple for Revenue*
	
Performance Goal Achievement Operating Margin
	
2016 Q2 Bonus Pool Funding Multiple for Operating Margin*

	
97%
	
.70x
	
1.5% below Goal
	
.85x

	
97.5%
	
.75x
	
1.0% below Goal
	
.90x

	
98%
	
.80x
	
0.5% below Goal
	
.95x

	
98.5%
	
.85x
	
At Goal
	
1.00x

	
99%
	
.90x
	
0.5% above Goal
	
1.05x

	
99.5%
	
.95x
	
1.0% above Goal
	
1.10x

	
100% - 102%
	
1.00x
	
1.5% above Goal
	
1.15x

	
102.5%
	
1.05x
	
2.0% above Goal
	
1.20x

	
103%
	
1.10x
	
--
	
--

	
103.5%
	
1.15x
	
--
	
--

	
104%
	
1.20x
	
--
	
--

* “x” equals the target bonus amount at achievement of 100%-102% of the 2016 Q2 Performance Goal for Revenue, and equals the target bonus amount at achievement of 100% of the 2016 Q2 Performance Goal for Operating Margin.  The lowest Funding Multiple for Revenue set forth above assumes that the achievement of the 2016 Q2 Performance Goal for Revenue is equal to at least the 

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Revenue Floor required to fund the 2016 Q2 Bonus Plan.  The maximum Funding Multiple for Operating Margin shall be 1.20x.  There is no maximum Funding Multiple for Revenue.

Illustration 

For example, if the Company achieves its Revenue at 101% of the 2016 Q2 Performance Goal for Revenue and achieves its Operating Margin at 1.3% above the 2016 Q2 Performance Goal for Operating Margin, the 2016 Q2 Bonus Pool will fund as to 106.5%, determined as follows:

-50% on achievement of the Revenue 2016 Q2 Performance Goal (50% weighted target * 1.00x)

-56.5% on achievement of the Operating Margin 2016 Q2 Performance Goal (50% weighted target * 1.13x)

3. Timing of Bonus Payments.  Quarterly bonuses earned under this 2016 Q2 Bonus Plan shall be paid in the quarter following the quarter in which earned.  

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APPENDIX A-2016 Q3

To RingCentral, Inc. Executive Bonus Plan

2016 Third Quarter Performance Goals

(Effective as of July 1, 2016)

1. 2016 Q3 Performance Period and Performance Goals.  For the third quarter of calendar year 2016, there is one quarterly Performance Period, ending on September 30, 2016 (the “2016 Q3 Performance Period”).  For the 2016 Q3 Performance Period, there are two equally weighted (50% each) performance goals (each, a “2016 Q3 Performance Goal”): Revenue and Operating Margin (each as defined below).   The chart below set forth the Revenue and Operating Margin Performance Goals for the 2016 Q3 Performance Period.

 

			
	
2016 Q3 Performance Period
	
Revenue Performance Goal (in millions)
	
Operating Margin Performance Goal

	
Q3
	
$93.4
	
1.7%

“Revenue” means as to the 2016 Q3 Performance Period, the Company’s net revenues generated from third parties, including both services revenues and product revenues as defined in the Company’s Form 10-Q filed for the calendar quarter ended September 30, 2016, as adjusted on a pro forma basis to reflect the exclusion of the Company’s carrier partners’ phone sales from the agency model.  Net revenue is defined as gross sales less any pertinent discounts, refunds or other contra-revenue amounts, as presented on the Company’s press releases reporting its quarterly financial results.

“Operating Margin” means as to the 2016 Q3 Performance Period, the Company’s non-GAAP operating income divided by its Revenue.  Non-GAAP operating income means the Company’s Revenues less cost of revenues and operating expenses, excluding the impact of stock-based compensation expense, amortization of acquisition related intangibles, legal settlement related charges and as adjusted for certain acquisitions, as presented on the Company’s press releases reporting its quarterly financial results..

2. Funding of 2016 Q3 Bonus Pool.  Subject to the terms of the Plan, including but not limited to Section 3(d) of the Plan, following the end of the 2016 Q3 Performance Period, the Committee will determine the extent to which each of the 2016 Q3 Performance Goals are achieved in accordance with the following guidelines.

	
 
	
(a)
	
If the Company achieves Revenue in the 2016 Q3 Performance Period that is lower than the amount of Revenue expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q3 Performance Period (“Revenue Floor”), the 2016 Q3 Bonus Pool related to the Revenue Performance Goal for such 2016 Q3 Performance Period will not fund. 

	
 
	
(b)
	
If the Company achieves Operating Margin in the 2016 Q3 Performance Period that is lower than the Operating Margin expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q3 Performance Period (“Operating Margin Floor”), the 2016 Q3 Bonus Pool related to the Operating Margin Performance Goal for such 2016 Q3 Performance Period will not fund.

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(c)
	
If the Company achieves Revenue that is at least equal to the Revenue Floor, the 2016 Q3 Bonus Pool related to the Revenue Performance goal for the 2016 Q3 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Revenue:  For 100% of the Bonus Pool with respect to Revenue to fund, 100% to 102% of the Performance Goal for Revenue must be achieved.  For each 0.5% of Revenue that is achieved above 102% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be increased by 5%, and for each 0.5% of Revenue that is achieved below 100% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be reduced by 5%.

	
 
	
(d)
	
If the Company achieves Operating Margin that is at least equal to the Operating Margin Floor, the 2016 Q3 Bonus Pool related to the Operating Margin Performance goal for the 2016 Q3 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Operating Margin: For 100% of the Bonus Pool with respect to Operating Margin to fund, 100% of the Performance Goal for Operating Margin must be achieved.  For each 0.5% of Operating Margin that is achieved above the Performance Goal for Operating Margin, the Bonus Pool with respect to operating Margin will be increased by 5% (up to a maximum of 120%), and for each 0.5% of Operating Margin that is achieved below the Performance Goal for Operating Margin, the Bonus Pool with respect to Operating Margin will be reduced by 5%.

The chart below illustrates examples of the funding multiple that will apply to each Performance Goal.

 

	
Performance Goal Achievement Revenue
	
2016 Q3 Bonus Pool Funding Multiple for Revenue*
	
Performance Goal Achievement Operating Margin
	
2016 Q3 Bonus Pool Funding Multiple for Operating Margin*

	
97%
	
.70x
	
1.5% below Goal
	
.85x

	
97.5%
	
.75x
	
1.0% below Goal
	
.90x

	
98%
	
.80x
	
0.5% below Goal
	
.95x

	
98.5%
	
.85x
	
At Goal
	
1.00x

	
99%
	
.90x
	
0.5% above Goal
	
1.05x

	
99.5%
	
.95x
	
1.0% above Goal
	
1.10x

	
100% - 102%
	
1.00x
	
1.5% above Goal
	
1.15x

	
102.5%
	
1.05x
	
2.0% above Goal
	
1.20x

	
103%
	
1.10x
	
--
	
--

	
103.5%
	
1.15x
	
--
	
--

	
104%
	
1.20x
	
--
	
--

* “x” equals the target bonus amount at achievement of 100%-102% of the 2016 Q3 Performance Goal for Revenue, and equals the target bonus amount at achievement of 100% of the 2016 Q3 Performance Goal for Operating Margin.  The lowest Funding Multiple for Revenue set forth above assumes that the achievement of the 2016 Q3 Performance Goal for Revenue is equal to at least the 

-13-

 

Revenue Floor required to fund the 2016 Q3 Bonus Plan.  The maximum Funding Multiple for Operating Margin shall be 1.20x.  There is no maximum Funding Multiple for Revenue.

Illustration 

For example, if the Company achieves its Revenue at 101% of the 2016 Q3 Performance Goal for Revenue and achieves its Operating Margin at 1.3% above the 2016 Q3 Performance Goal for Operating Margin, the 2016 Q3 Bonus Pool will fund as to 106.5%, determined as follows:

-50% on achievement of the Revenue 2016 Q3 Performance Goal (50% weighted target * 1.00x)

-56.5% on achievement of the Operating Margin 2016 Q3 Performance Goal (50% weighted target * 1.13x)

3. Timing of Bonus Payments.  Quarterly bonuses earned under this 2016 Q3 Bonus Plan shall be paid in the quarter following the quarter in which earned.  

 

-14-

 

APPENDIX A-2016 Q4

To RingCentral, Inc. Executive Bonus Plan

2016 Fourth Quarter Performance Goals

(Effective as of October 1, 2016)

1. 2016 Q4 Performance Period and Performance Goals.  For the fourth quarter of calendar year 2016, there is one quarterly Performance Period, ending on December 31, 2016 (the “2016 Q4 Performance Period”).  For the 2016 Q4 Performance Period, there are two equally weighted (50% each) performance goals (each, a “2016 Q4 Performance Goal”): Revenue and Operating Margin (each as defined below).   The chart below set forth the Revenue and Operating Margin Performance Goals for the 2016 Q4 Performance Period.

 

			
	
2016 Q4 Performance Period
	
Revenue Performance Goal (in millions)
	
Operating Margin Performance Goal

	
Q4
	
$100.7
	
2.6%

“Revenue” means as to the 2016 Q4 Performance Period, the Company’s net revenues generated from third parties, including both services revenues and product revenues as defined in the Company’s Form 10-K filed for the calendar year ended December 31, 2016, as adjusted on a pro forma basis to reflect the exclusion of the Company’s carrier partners’ phone sales from the agency model.  Net revenue is defined as gross sales less any pertinent discounts, refunds or other contra-revenue amounts, as presented on the Company’s press releases reporting its quarterly financial results.

“Operating Margin” means as to the 2016 Q4 Performance Period, the Company’s non-GAAP operating income divided by its Revenue.  Non-GAAP operating income means the Company’s Revenues less cost of revenues and operating expenses, excluding the impact of stock-based compensation expense, amortization of acquisition related intangibles, legal settlement related charges and as adjusted for certain acquisitions, as presented on the Company’s press releases reporting its quarterly financial results..

2. Funding of 2016 Q4 Bonus Pool.  Subject to the terms of the Plan, including but not limited to Section 3(d) of the Plan, following the end of the 2016 Q4 Performance Period, the Committee will determine the extent to which each of the 2016 Q4 Performance Goals are achieved in accordance with the following guidelines.

	
 
	
(a)
	
If the Company achieves Revenue in the 2016 Q4 Performance Period that is lower than the amount of Revenue expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q4 Performance Period (“Revenue Floor”), the 2016 Q4 Bonus Pool related to the Revenue Performance Goal for such 2016 Q4 Performance Period will not fund. 

	
 
	
(b)
	
If the Company achieves Operating Margin in the 2016 Q4 Performance Period that is lower than the   Operating Margin expected by analyst consensus estimates after the Company has released its guidance for such 2016 Q4 Performance Period (“Operating Margin Floor”), the 2016 Q4 Bonus Pool related to the Operating Margin Performance Goal for such 2016 Q4 Performance Period will not fund.

-15-

 

	
 
	
(c)
	
If the Company achieves Revenue that is at least equal to the Revenue Floor, the 2016 Q4 Bonus Pool related to the Revenue Performance goal for the 2016 Q4 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Revenue: For 100% of the Bonus Pool with respect to Revenue to fund, 100% to 102% of the Performance Goal for Revenue must be achieved.  For each 0.5% of Revenue that is achieved above 102% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be increased by 5%, and for each 0.5% of Revenue that is achieved below 100% of the Performance Goal for Revenue, the Bonus Pool with respect to Revenue will be reduced by 5%.

	
 
	
(d)
	
If the Company achieves Operating Margin that is at least equal to the Operating Margin Floor, the 2016 Q4 Bonus Pool related to the Operating Margin Performance goal for the 2016 Q4 Performance Period will fund as follows based on the achievement relative to the applicable Performance Goal.  

Operating Margin: For 100% of the Bonus Pool with respect to Operating Margin to fund, 100% of the Performance Goal for Operating Margin must be achieved.  For each 0.5% of Operating Margin that is achieved above the Performance Goal for Operating Margin, the Bonus Pool with respect to operating Margin will be increased by 5% (up to a maximum of 120%), and for each 0.5% of Operating Margin that is achieved below the Performance Goal for Operating Margin, the Bonus Pool with respect to Operating Margin will be reduced by 5%.

The chart below illustrates examples of the funding multiple that will apply to each Performance Goal.

 

	
Performance Goal Achievement Revenue
	
2016 Q4 Bonus Pool Funding Multiple for Revenue*
	
Performance Goal Achievement Operating Margin
	
2016 Q4 Bonus Pool Funding Multiple for Operating Margin*

	
97%
	
.70x
	
1.5% below Goal
	
.85x

	
97.5%
	
.75x
	
1.0% below Goal
	
.90x

	
98%
	
.80x
	
0.5% below Goal
	
.95x

	
98.5%
	
.85x
	
At Goal
	
1.00x

	
99%
	
.90x
	
0.5% above Goal
	
1.05x

	
99.5%
	
.95x
	
1.0% above Goal
	
1.10x

	
100% - 102%
	
1.00x
	
1.5% above Goal
	
1.15x

	
102.5%
	
1.05x
	
2.0% above Goal
	
1.20x

	
103%
	
1.10x
	
--
	
--

	
103.5%
	
1.15x
	
--
	
--

	
104%
	
1.20x
	
--
	
--

* “x” equals the target bonus amount at achievement of 100%-102% of the 2016 Q4 Performance Goal for Revenue, and equals the target bonus amount at achievement of 100% of the 2016 Q4 Performance Goal for Operating Margin.  The lowest Funding Multiple for Revenue set forth above assumes that the achievement of the 2016 Q4 Performance Goal for Revenue is equal to at least the Revenue Floor required to fund the 2016 Q4 Bonus Plan.  The maximum Funding Multiple for Operating Margin shall be 1.20x.  There is no maximum Funding Multiple for Revenue.

-16-

 

Illustration 

For example, if the Company achieves its Revenue at 101% of the 2016 Q4 Performance Goal for Revenue and achieves its Operating Margin at 1.3% above the 2016 Q4 Performance Goal for Operating Margin, the 2016 Q4 Bonus Pool will fund as to 106.5%, determined as follows:

 

-50% on achievement of the Revenue 2016 Q4 Performance Goal (50% weighted target * 1.00x)

-56.5% on achievement of the Operating Margin 2016 Q4 Performance Goal (50% weighted target * 1.13x)

3. Timing of Bonus Payments.  Quarterly bonuses earned under this 2016 Q4 Bonus Plan shall be paid in the quarter following the quarter in which earned.  

-17-Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT this (“Agreement”), dated as of February 24, 2017, by and among Lixte Biotechnology Holdings, Inc.,
a Delaware corporation (the “Company”), and Lalit Bahl (“Purchaser”).

 

WHEREAS, subject to the
terms and conditions of this Agreement, Purchaser desires to purchase shares of the Company’s Common Stock.

 

WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to Purchaser,
and Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Company and Purchaser agree as follows:

 

ARTICLE 1

PURCHASE AND SALE OF SHARES

 

Section 1.1Purchase
and Sale of Shares. Upon the following terms and conditions, the Company shall issue and sell to Purchaser, and Purchaser shall
purchase from the Company 4,000,000 shares of Common Stock (the “Shares”) at a purchase price of $0.25 for each
Share for an aggregate purchase price of $1,000,000.

 

The Company and Purchaser
are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act, and the rules and regulations promulgated thereunder, including Regulation D
(“Regulation D”), and/or upon such other exemption from the registration requirements of the Securities Act
as may be available with respect to any or all of the investments to be made hereunder.

 

Section 1.2Purchase
Price and Closing. The Company agrees to issue and sell to Purchaser and, in consideration of and in express reliance upon
the representations, warranties, covenants, terms and conditions of this Agreement, Purchaser agrees to purchase the Shares. The
closing (the “Closing”) of the purchase and sale of the Shares to be acquired by Purchaser from the Company
under this Agreement shall take place as soon as practicable, provided, that all of the conditions set forth in Article
IV hereof and applicable to the Closing shall have been fulfilled or waived in accordance herewith. The Purchase Price payable
by Purchaser shall be payable in cash, by wire transfer or in immediately available funds at the Closing.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

Section 2.1Representations
and Warranties of the Company. In order to induce Purchaser to enter into this Agreement and to purchase the Shares, the Company
hereby makes the following representations and warranties to Purchaser, as applicable:

 

(a)       Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. Other than Lixte Biotechnology, Inc., a Delaware corporation, the Company does not have
any subsidiaries or own securities of any kind in any other entity. The Company is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes
such qualification necessary, except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified
will not have a Material Adverse Effect. For the purposes of this Agreement, “Material Adverse Effect” means
any adverse effect on the business, operations, properties, prospects or financial condition of the Company which is material to
such entity or other entities controlling or controlled by such entity or which is likely to materially affect the Company’s
business or hinder the performance by the Company of its material obligations hereunder and under the other Transaction Documents
(as defined in Section 2.1(b) hereof).

 

    	Exhibit 10.1 – Page 1

    	 

    

 

(b)       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement in connection
with the closing of the purchase by Purchaser of the Shares, and the other agreements and documents contemplated hereby and thereby
and executed by the Company or to which the Company is party (collectively, the “Transaction Documents”), and
to issue and sell the Shares in accordance with the terms hereof. The execution, delivery and performance of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated thereby have been duly and validly authorized by all
necessary corporate action, and no further consent or authorization of the Company, the Company’s board of directors (the
“Board of Directors”) or its stockholders is required. This Agreement has been duly executed and delivered by
the Company. The other Transaction Documents will have been duly executed and delivered by the Company at or prior to the Closing.
Each of the Transaction Documents constitutes, or shall constitute when executed and delivered, a valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(c)       Capitalization.
The authorized capital stock of the Company and the shares thereof issued and outstanding as of December 31, 2016, are set forth
on Schedule 2.1(c) hereto. All of the outstanding shares of the Company’s Common Stock and any other security of the Company
have been duly and validly authorized. No shares of Common Stock or any other security of the Company are entitled to preemptive
rights or registration rights and there are no outstanding options, scrip, rights to subscribe to, call or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company. Furthermore, except
as set forth on Schedule 2.1(c) hereto, there are no contracts, commitments, understandings, or arrangements by which the Company
is or may become bound to issue additional shares of the capital stock of the Company or options, securities or rights convertible
into shares of capital stock of the Company. Except for customary transfer restrictions contained in agreements entered into by
the Company in order to sell restricted securities or as provided on Schedule 2.1(c) hereto, the Company is not a party to or bound
by any agreement or understanding granting registration or anti-dilution rights to any individual or corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind (each, a “Person”) with respect to any of its
equity or debt securities. The Company is not a party to, and it has no knowledge of, any agreement or understanding restricting
the voting or transfer of any shares of the capital stock of the Company. The offer and sale of all capital stock, convertible
securities, rights, or options of the Company issued prior to the Closing complied with all applicable federal and state securities
laws, and no holder of such securities has a right of rescission or claim for damages with respect thereto which could have a Material
Adverse Effect.

 

(d)       Issuance
of Shares. The Shares have been duly authorized by all necessary corporate action and, when paid for or issued in accordance
with the terms hereof, the Shares shall be validly issued and outstanding, fully paid and nonassessable and free and clear of all
liens, encumbrances and rights of refusal of any kind.

 

    	Exhibit 10.1 – Page 2

    	 

    

 

(e)       No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby do not and will not (i) violate any provision of the Articles or Bylaws,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which the Company’s
respective properties or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of
any nature on any property or asset of the Company under any agreement or any commitment to which the Company is a party or by
which the Company is bound or by which any of their respective properties or assets are bound, or (iv) result in a violation of
any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except,
in all cases other than violations pursuant to clauses (i) or (iv) (with respect to federal and state securities laws) above, for
such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in
the aggregate, have a Material Adverse Effect. The business of the Company is not being conducted in violation of any laws, ordinances
or regulations of any governmental entity, except for possible violations which singularly or in the aggregate do not and will
not have a Material Adverse Effect. The Company is not required under federal, state, foreign or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under the Transaction Documents or issue and sell the Shares
in accordance with the terms hereof or thereof (other than any filings which may be required to be made by the Company with the
Securities and Exchange Commission (the “Commission”) and/or FINRA prior to or subsequent to the Closing, or
state securities administrators subsequent to the Closing, or any registration statement which may be filed pursuant hereto or
thereto).

 

(f)       Commission
Documents; Financial Statements. The Company has made available to Purchaser through the EDGAR system, true and complete copies
of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (the “Form 10-K”),
and all other reports, schedules, forms, statements and other documents required to be filed by the Company pursuant to the Securities
Act and the Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d)
thereof, since December 31, 2015 (all of the foregoing, including filings incorporated by reference therein, being referred to
herein as the “Commission Documents”). The Company has not provided to Purchaser any material non-public information
or other information which, according to applicable law, rule or regulation, should have been disclosed publicly by the Company
but which has not been so disclosed, other than with respect to the transactions contemplated by this Agreement. At the time of
their filing, other than the timeliness of the filings, each Commission Document complied in all material respects with the requirements
of the Securities Act or Exchange Act, as applicable, and the rules and regulations of the Commission promulgated thereunder and
other federal, state and local laws, rules and regulations applicable to such documents, and, at the time of its filing, each Commission
Document did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company included in the Commission Documents complied as to form
in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or other
applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except (i)
as may be otherwise indicated in such financial statements or the Notes thereto or (ii) in the case of unaudited interim statements,
to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its subsidiary as of the dates thereof and the results of operations and cash flows for
the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

(g)       No
Material Adverse Change. Since September 30, 2016, the Company has not experienced or suffered any Material Adverse Effect.

 

(h)       No
Undisclosed Liabilities. The Company has not incurred any liabilities, obligations, claims or losses (whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those set forth in the Commission Documents
or incurred in the ordinary course of the Company’s business since September 30, 2016, and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect on the Company.

 

    	Exhibit 10.1 – Page 3

    	 

    

 

(i)       No
Undisclosed Events or Circumstances. Since September 30, 2016, except as disclosed in the Commission Documents filed prior
to the date hereof, (i) to the Company’s knowledge, there has been no event, occurrence or development that has had or that
could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past
practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed
in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared
or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements
to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer,
director or affiliate, except pursuant to any existing Company stock option plans. The Company does not have pending before the
Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this
Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected
to occur or exist with respect to the Company or its subsidiary or their respective businesses, properties, operations, assets
or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this
representation is made or deemed made that has not been publicly disclosed at least one (1) trading day prior to the date that
this representation is made.

 

(j)       Actions
Pending. There is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding
pending or, to the knowledge of the Company, threatened, against the Company which questions the validity of this Agreement or
any of the other Transaction Documents or any of the transactions contemplated hereby or thereby or any action taken or to be taken
pursuant hereto or thereto. Except as disclosed in the Commission Documents, there is no action, suit, claim, investigation, arbitration,
alternate dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company, threatened against or
involving the Company or any of their respective properties or assets, which individually or in the aggregate, would have a Material
Adverse Effect. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental
or regulatory body against the Company or any officers or directors of the Company in their capacities as such, which individually,
or in the aggregate, would have a Material Adverse Effect.

 

(k)       Compliance
with Law. The business of the Company has been and is presently being conducted in accordance with all applicable federal,
state and local governmental laws, rules, regulations and ordinances, except as set forth in the Commission Documents or such that,
individually or in the aggregate, the noncompliance therewith would not have a Material Adverse Effect. The Company has all franchises,
permits, licenses, consents and other governmental or regulatory authorizations and approvals necessary for the conduct of its
business as now being conducted by it unless the failure to possess such franchises, permits, licenses, consents and other governmental
or regulatory authorizations and approvals, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

(l)       Taxes.
The Company has accurately prepared and filed all federal, state and other tax returns required by law to be filed by it, has paid
or made provisions for the payment of all taxes shown to be due and all additional assessments, and adequate provisions have been
and are reflected in the financial statements of the Company for all current taxes and other charges to which the Company is subject
and which are not currently due and payable. None of the federal income tax returns of the Company have been audited by the Internal
Revenue Service. The Company has no knowledge of any additional assessments, adjustments or contingent tax liability (whether federal
or state) of any nature whatsoever, whether pending or threatened against the Company for any period, nor of any basis for any
such assessment, adjustment or contingency.

 

(m)       Certain
Fees. The Company has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees,
commissions, finders’ structuring fees, financial advisory fees or other similar fees in connection with the Transaction
Documents.

 

(n)       Private
Placement. Assuming the accuracy of Purchaser’s representations and warranties set forth in Section 2.2, no registration
under the Securities Act is required for the offer and sale of the Shares by the Company to Purchaser as contemplated hereby. The
issuance and sale of the Shares hereunder does not contravene the rules and regulations of the OTC Markets, or any other market
or exchange on which the Common Stock is listed or quoted for trading on the Closing Date.

 

    	Exhibit 10.1 – Page 4

    	 

    

 

Section 2.2Representations
and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to the Company:

 

(a)       Authorization
and Power. Purchaser has the requisite power and authority to enter into and perform the Transaction Documents and to purchase
the Shares being sold to it hereunder. No further consent or authorization of Purchaser is required. This Agreement has been duly
authorized, executed and delivered by Purchaser. The other Transaction Documents constitute, or shall constitute when executed
and delivered, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with their terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

 

(b)       Acquisition
for Investment. Purchaser is purchasing the Shares solely for his own account for the purpose of investment and not with a
view to or for sale in connection with the distribution thereof. Purchaser does not have a present intention to sell any of the
Shares, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of any of the Shares
to or through any Person; provided, however, that by making the representations herein and subject to Section 2.2(e) below, Purchaser
does not agree to hold any of the Shares for any minimum or other specific term and reserves the right to pledge any of the Securities
for margin purposes and/or to dispose of any of the Shares at any time in accordance with federal and state securities laws applicable
to such disposition. Purchaser acknowledges that it (i) has such knowledge and experience in financial and business matters such
that Purchaser is capable of evaluating the merits and risks of its investment in the Company, (ii) is able to bear the financial
risks associated with an investment in the Shares, and (iii) has been given full access to such records of the Company and to the
officers of the Company as it has deemed necessary or appropriate to conduct its due diligence investigation.

 

(c)       Rule
144. Purchaser understands that the Shares must be held indefinitely unless such Shares are registered under the Securities
Act or an exemption from registration is available. Purchaser acknowledges that it is familiar with Rule 144 of the rules and regulations
of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule 144”), and that Purchaser has been
advised that Rule 144 permits resales only under certain circumstances. Purchaser understands that to the extent that Rule 144
is not available, Purchaser will be unable to sell any Shares without either registration under the Securities Act or the existence
of another exemption from such registration requirement.

 

(d)       General.
Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption from the registration
requirements of United States federal and state securities laws and the Company is relying in part upon the truth and accuracy
of the representations, warranties, agreements, acknowledgments and understandings of Purchaser set forth herein in order to determine
the availability of such exemptions and the suitability of Purchaser to acquire the Shares. Purchaser understands that no United
States federal or state agency or any government or governmental agency has passed upon or made any recommendation or endorsement
of the Shares.

 

(e)       Experience
of Purchaser; Independent Investment Decision. Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Shares, and has so evaluated the merits and risks of such investment. Purchaser is able to bear the economic
risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

 

(f)       No
General Solicitation. Purchaser acknowledges that the Shares were not offered to Purchaser by means of any form of general
or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement,
article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or
radio, or (ii) any seminar or meeting to which Purchaser was invited by any of the foregoing means of communications.

 

(g)       Accredited
Investor. At the time Purchaser was offered the Shares, he was, and at the date hereof he is, an “accredited investor”
as defined in Rule 501(a) under the Securities Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Purchaser acknowledges that an investment in the Securities is speculative and involves a high degree of risk.

 

    	Exhibit 10.1 – Page 5

    	 

    

 

(h)       Compliance.
No part of the funds being used by Purchaser to acquire the Securities has been, or shall be, directly or indirectly derived from,
or related to, any activity that may contravene United States federal or state or non-United States laws or regulations, including,
without limitation, Money Laundering Laws.

 

ARTICLE 3

COVENANTS

 

The Company covenants with
Purchaser as follows, which covenants are for the benefit of Purchaser and their respective permitted assignees.

 

Section 3.1Securities
Compliance. The Company shall notify the Commission, in accordance with its rules and regulations, of the transactions contemplated
by any of the Transaction Documents, and shall take all other necessary action and proceedings as may be required and permitted
by applicable law, rule and regulation, for the legal and valid issuance of the Shares to Purchaser, or their respective subsequent
holders.

 

Section 3.2Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on
the OTC Markets or such other market on which it is currently listed. The Company will then take all action reasonably necessary
to continue the listing or quotation and trading of its Common Stock on a trading market and will comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of the trading market.

 

Section 3.3Use
of Proceeds. The Company will use the net proceeds from the sale of the Shares for working capital purposes.

 

ARTICLE 4

CONDITIONS

 

Section 4.1Conditions
Precedent to the Obligation of the Company to Close and to Sell the Shares. The obligation hereunder of the Company to close
and issue and sell the Shares to Purchaser on the Closing Date is subject to the satisfaction or waiver, at or before the Closing,
of the conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at
any time in its sole discretion.

 

(a)       Accuracy
of Purchaser’s Representations and Warranties. The representations and warranties of Purchaser shall be true and correct
in all material respects as of the date when made and as of the Closing Date as though made at that time, except for representations
and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of
such date.

 

(b)       Performance
by Purchaser. Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by Purchaser at or prior to the Closing Date.

 

(c)       No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

(d)       Delivery
of the Purchase Price. The Purchase Price for the Shares shall have been delivered to the Company at the Closing.

 

(e)       Delivery
of Transaction Documents. The Transaction Documents to which Purchaser is a party shall have been duly executed and delivered
by Purchaser to the Company.

 

    	Exhibit 10.1 – Page 6

    	 

    

 

Section 4.2Conditions
Precedent to the Obligation of Purchaser to Close and to Purchase the Shares. The obligation hereunder of Purchaser to purchase
the Shares and consummate the transactions contemplated by this Agreement is subject to the satisfaction or waiver, at or before
the Closing, of each of the conditions set forth below. These conditions are for Purchaser’ sole benefit and may be waived
by Purchaser at any time in their sole discretion.

 

(a)       Accuracy
of the Company’s Representations and Warranties. Each of the representations and warranties of the Company in this Agreement
shall be true and correct in all material respects as of the Closing Date, except for representations and warranties that speak
as of a particular date, which shall be true and correct in all material respects as of such date.

 

(b)       Performance
by the Company. The Company shall have performed, satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

(c)       No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

(d)       No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened, against the Company, or any of the officers,
directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by this Agreement,
or seeking damages in connection with such transactions.

 

ARTICLE 5

TRANSFER RESTRICTIONS;
CERTIFICATE LEGEND

 

Section 5.1Transfer
Restrictions. The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any
transfer of Shares other than pursuant to an effective registration statement or Rule 144 or to the Company, the Company may require
the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to
the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer
does not require registration of such transferred Shares under the Securities Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under
this Agreement.

 

Section 5.2Legend.
Each certificate representing the Shares shall be stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or “blue sky” laws):

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR LIXTE BIOTECHNOLOGY HOLDINGS, INC. SHALL HAVE RECEIVED AN OPINION
OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

 

ARTICLE 6

MISCELLANEOUS

 

Section 6.1Entire
Agreement; Amendment. This Agreement and the Transaction Documents contain the entire understanding and agreement of the parties
with respect to the matters covered hereby and, except as specifically set forth herein or in the other Transaction Documents,
neither the Company nor Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters, and
they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein. No
provision of this Agreement may be waived or amended other than by a written instrument signed by the Company and Purchaser.

 

    	Exhibit 10.1 – Page 7

    	 

    

 

Section 6.2Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received), or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received), or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

	If to the Company:	Lixte Biotechnology, Inc.
	 	Attention: Dr. John Kovach
	 	248 Route 25A, No. 2
	 	East Setauket, New York 11733

	 	Facsimile:	928-982-5050
	 	Telephone:	631-830-7092

 

	with copies (which copies shall not constitute notice 

to the Company) to:	
        TroyGould PC

        1801 Century Park East, 16th Floor

        Los Angeles, California 90067

        Attention: David L. Ficksman

	 	Facsimile:	(310) 201-4746
	 	Telephone:	(310) 789-1290

 

	To Purchaser:	At the address of Purchaser set forth on the signature page

 

Any party hereto may from
time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other
party hereto.

 

Section 6.3Waivers.
No waiver by any party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

Section 6.4Headings;
Interpretation. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute
a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof. The interpretation
of this Agreement shall not be affected by the party who drafted this Agreement, and all parties waive any statute, legal decision,
or common law principle that would require interpretation of any ambiguities in this Agreement against the party that drafted this
Agreement.

 

Section 6.5Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
After the Closing, the assignment by a party to this Agreement of any rights hereunder shall not affect the obligations of such
party under this Agreement. After the Closing, Purchaser may assign the Shares and their rights under this Agreement and the other
Transaction Documents and any other rights hereto and thereto without the consent of the Company, except as limited by law or otherwise
required in this Agreement.

 

    	Exhibit 10.1 – Page 8

    	 

    

 

Section 6.6No Third Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person (other than indemnified parties, as contemplated
by Article VII).

 

Section 6.7Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect
to the choice of law provisions. This Agreement shall not be interpreted or construed with any presumption against the party causing
this Agreement to be drafted.

 

Section 6.8Survival. The representations
and warranties of the Company and Purchaser shall survive the execution and delivery hereof and the Closing until the date one
year from the Closing Date, and the agreements and covenants set forth in Articles I, III, V, VII and VIII of this Agreement shall
survive the execution and delivery hereof and the Closing hereunder.

 

Section 6.9Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart.

 

Section 6.10Severability. The
provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or
part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable
to the maximum extent possible.

 

Section 6.11Further Assurances.
From and after the date of this Agreement, upon the request of Purchaser or the Company, the Company and Purchaser shall execute
and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

 

[Signature pages follow.]

 

    	Exhibit 10.1 – Page 9

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the date first above written.

 

	 	LIXTE BIOTECHNOLOGY HOLDINGS, INC.
	 	 	
	 	By:	 
	 	Name:	John Kovach
	 	Title:	President and Chief Executive Officer
	 		
	 	“PURCHASER”
	 		
	 	Lalit Bahl

 

	 	Shares:	4,000,000
	 	Purchase Price:	$1,000,000

 

	 	Address for Notice:
	 	
	 	(Print Address)
	 	 
	 	Telephone:
	 	Facsimile:
	 	E-mail:

 

    	Exhibit 10.1 – Page 10

    	 

    

 

SCHEDULE 2.1(c)

Capitalization

 

Common stock: $0.001 par value; 100,000,000
shares authorized; 47,875,814 shares issued and outstanding as of December 31, 2016.

 

Preferred stock: $0.0001 par value, 10,000,000
shares authorized; 350,000 shares of Series A preferred stock were issued and outstanding as of December 31, 2016.

 

Stock Options: Stock options to purchase 7,950,000
shares of Common Stock were exercisable as of December 31, 2016 .

 

Registration Rights

 

None.

 

    	Exhibit 10.1 – Page 11

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