Document:

ontario_ex1017.htm

 EXHIBIT 10.17
   
  STOCK OPTION AGREEMENT
   
  This Stock Option Agreement (the “Agreement) is made as of the 1st day of June, 2012 (the “Effective Date”).
   
  BETWEEN:
   
  RUSSELL SCHACHAR 
  (the "Optionee")
   
  AND: 
   
  2304101 ONTARIO INC. o/a Behavioural Neurological Applications and Solutions, a corporation incorporated and existing under the laws of the Province of Ontario (the "Company")
   
    	A. 	  The Optionee has or will perform services for the Company.

		 
	B. 	  The Company desires to grant to the Optionee an option to purchase 23 Common Shares in the capital of the Company (the “Common Shares”);

   
  NOW THEREFORE in consideration of the sum of $1.00 given by the Optionee to the Company (the receipt and sufficiency of which is acknowledged by the Company) the parties hereto agree as follows:
   
    	1. 	  Subject to the terms and conditions of this Agreement, and as an incentive to the Optionee, the Company grants to the Optionee a non-assignable and non-transferable option (the “Option”) to purchase, from time to time, a total of 23 Common Shares (the “Option Shares”), exercisable in accordance with the vesting schedule and price provided in Section 3 of this Agreement.

		 
	2. 	  The Option shall, unless otherwise specified by the Board of Directors of the Company (the “Board of Directors”), expire on the tenth (10th) anniversary of the Effective Date (the “Expiry Date”).

		 
	3. 	  The Option shall vest and become exercisable in the following installments:

   
    		(a) 	  13 of the Option Shares shall vest on June 1, 2014 and be exercisable at a price of 50% of the Fair Market Value (defined below) at the date of exercise.

		 	
		(b) 	  6 of the Option Shares shall vest on June 1, 2015 and be exercisable at a price of 50% of the Fair Market Value at the date of exercise.

		 	
		(c) 	  4 of the Option Shares shall vest on June 1, 2016 and be exercisable at a price of 50% of the Fair Market Value at the date of exercise.

   
  “Fair Market Value” means the price of the shares as determined in good faith by the Company’s Board of Directors. If the Optionee challenges the fair market value of the Option Shares, the fair market value shall be determined by appraisal by an independent appraiser agreed upon by the parties. In the event such parties cannot agree on an independent appraiser, each shall select an independent appraiser who shall, together, select a third independent appraiser who shall conduct the appraisal.
   
  Once an Option Share vests and becomes exercisable as set forth above, it shall remain exercisable until expiration or termination of the Option. Each Option may be exercised at any time from time to time, in whole or in part, for up to the total number of Option Shares that have vested as of such time. 
   
    	 
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    	4. 	  In order to exercise the Option, the Optionee shall, no later than 5:00 p.m. (EST) on the Expiry Date, give written notice to the Company of the Optionee's intention to exercise the Option in whole or in part, stating the number of Option Shares being acquired pursuant to such exercise, accompanied by cash or a cheque made payable to the Company, in an amount equal to the aggregate exercise price for the Option Shares being purchased pursuant to the exercise of the Option. Any exercise of Options shall be conditioned on the Optionee agreeing to become bound by the provisions of the Company’s unanimous shareholders’ agreement then in effect, if any, or in the alternative a stock restriction agreement in form and substance acceptable to the Company.

		 
	5. 	  Upon exercise of the Option and payment in full of the purchase price and any applicable tax withholdings, the Company shall cause to be issued and delivered to the Optionee within a reasonable period of time a copy of the certificate or certificates in the name of the Optionee representing the number of Common Shares the Optionee has purchased. The original share certificate or certificates shall be held in safekeeping by the Company.

		 
	6. 	  If:

    
    		(a) 	  The Optionee is a natural person and dies before the Expiry Date, then any Options held by the Optionee that are exercisable on the date of death shall continue to be exercisable by the executor or the administrator of the Optionee’s estate until the earlier of: (A) the date which is ninety (90) days after the date of the Optionee’s death; and (B) the Expiry Date. Any part of the Option that is not exercisable at the date of the Optionee‘s death shall immediately expire and be cancelled on such date.

			 
		(b) 	  The Optionee is an officer, director or employee of the Company and is terminated without cause or voluntarily resigns from the Company, then the Option Shares that are exercisable at the termination date or resignation date, as applicable, shall continue to be exercisable by the Optionee until the earlier of: (A) the date which is thirty (30) days after such date; and (B) the Expiry Date. Any part of the Option that is not exercisable at the date of the Optionee‘s termination or resignation, as applicable, shall immediately expire and be cancelled on such date.

			 
		(c) 	  The Optionee’s service to the Company as an officer, director or employee is terminated by the Company for cause or for breach of fiduciary duty, then the Option, whether or not exercisable on the date of such termination, immediately expires and is cancelled on such date at a time determined by the Board of Directors, in its sole discretion.

			 
		(d) 	  If the Optionee is a consultant to the Company and

   
    		   
	(i) 	  such Optionee’s consulting agreement or arrangement terminates by reason of: (A) termination by the Company for any reason whatsoever other than for breach of the consulting agreement or arrangement (whether or not such termination is effected in compliance with any termination provisions contained in the Optionee’s consulting agreement or arrangement), or (B) voluntary termination by the Optionee, then the Option Shares that are exercisable at the applicable termination date continue to be exercisable by the Optionee until the earlier of: (A) the date that is thirty (30) days from such termination date; and (B) the Expiry Date. Any part of the Option that is not exercisable at such Service Termination Date shall immediately expire and be cancelled on such date; and

		   
		 
		   
	(ii) 	  such Optionee’s consulting agreement or arrangement is terminated by the Company for breach of the consulting agreement or arrangement then the Option, whether or not such Option is exercisable at such termination date, immediately expires and is cancelled on such termination date at a time determined by the Board of Directors, in its sole discretion.

   
    		(e) 	  If the Optionee’s service to the Company terminates for any reason not referred to above (including retirement or disability), then any part of the Option that is exercisable at the applicable termination date shall continue to be exercisable by the Optionee until the earlier of: (A) the date which is thirty (30) days after such termination date; and (B) the Expiry Date. Any party of the Option that is not exercisable at such termination date shall immediately expire and be cancelled on such termination date.

   
    	 
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    	7. 	  Neither the grant nor the exercise of an Option by the Optionee confers to the Optionee any right to expectation of employment by, or to continue in the employment of, the Company, or to be retained as a consultant by, or to be elected or appointed as a director of, the Company.

		 
	8. 	  If the Company determines that under the requirements of applicable taxation laws it is obliged to withhold for remittance to a taxing authority any amount upon exercise of an Option, the Company may, prior to and as a condition of issuing the Option Shares, require the Optionee exercising the Option to pay to the Company, in addition to and in the same manner as the exercise price for the Option Shares, such amount as the Company is obliged to remit to such taxing authority in respect of the exercise of the Option. Any such additional payment shall, in any event, be due no later than the date as of which any amount with respect to the Option exercised first becomes included in the gross income of the Optionee for tax purposes. The Company shall also be permitted, to the extent permitted by law, to deduct any such tax obligations from any payment of any kind otherwise due to the Optionee.

		 
	9. 	  The number and kind of Option Shares subject to the Option and the exercise price for such Option Shares shall be appropriately adjusted for any subdivision, re-division, stock split, consolidation, stock dividend, recapitalization, reorganization or any similar change affecting the Common Shares.

		 
	10. 	  In the event that the Company merges, amalgamates, consolidates, reorganizes or enters into a plan of arrangement with another corporation (the “Acquirer”) (a “Corporate Event”) the Board of Directors may in its sole discretion, without any action or consent of the Optionee, provide for: (a) the continuation or assumption of the Option by the Acquirer; (b) the substitution of the Option for options and/or shares and/or other securities of the Acquirer; (c) the substitution of the Option with a cash incentive program of the Acquirer; (d) the acceleration of the vesting and the right to exercise the Option Shares, to a date prior to or on the date of the Corporate Event; (e) the expiration of the Option, including any vested Option Shares, to the extent not timely exercised by the date of the Corporate Event or such other date as may be designated by the Board of Directors; (f) the cancellation of all or any portion of the Option by a cash payment and/or other consideration receivable by the holders of Common Shares as a result of the Corporate Event, equal to the excess, if any, of the fair market value (as determined in good faith by the Board of Directors), on the date of the Corporate Event, of the Option Shares over the exercise price of the Option Shares subject to the Option or portion thereof being cancelled (provided, that, if the exercise price of the Option exceeds such fair market value, the Board of Directors shall have the ability to cancel such Options without any payment of consideration to the Optionee); or (g) such other actions or combinations of the foregoing actions as the Board of Directors deems fair and reasonable in the circumstances. Upon the occurrence of a Corporate Event, to the extent that an Acquirer has by appropriate action assumed the Company’s obligations with respect to the Option, the rights of the Company under the Option and any related agreement shall inure to the benefit of the Acquirer and shall apply to the cash, securities or other property into which the Option Shares were converted or exchanged for pursuant to such Corporate Event in the same manner and to the same extent as they applied to such Option.

		 
	11. 	  This Agreement shall enure to the benefit of and be binding upon the parties hereto and upon the successors or assigns of the Company and upon the executors, administrators and legal personal representatives of the Optionee.

		 
	12. 	  This Agreement shall be governed, construed and enforced according to the laws of the Province of Ontario and the laws of Canada applicable therein and is subject to the exclusive jurisdiction of the courts of the Province of Ontario.

 
    	13. 	  Whenever the singular or masculine are used throughout this Agreement, the same shall be construed as being the plural or feminine or neuter where the context so requires, and vice versa.

		 
	14. 	  The parties agree to execute such further documents and assurances as may be required to effect the intent hereof.

		 
	15. 	  The Optionee and the Company may execute this Agreement in two or more counterparts, each of which shall be deemed to be an original and all of which shall constitute one agreement, effective as of the date first above written.

   
  [Signature page follows below.]
   
    	 
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  IN WITNESS WHEREOF the parties hereto have hereunto executed these presents as of the Effective Date.
   
    	  2304101 ONTARIO INC.

	   
	   
	   

	  By:
	/s/ Scott L. Woodrow	   

	Name:	  Scott L. Woodrow
	   

	Title:	  President
	   

  
 
    			/s/ Russell Schachar	   

			  Russell Schachar
	   

  
 
   
   
  4ontario_ex1018.htm

EXHIBIT 10.18
   
  
  SOFTWARE LICENSE AGREEMENT
    
  THIS SOFTWARE LICENSE AGREEMENT (the “Agreement”) is made as of December 9, 2014 (the “Effective Date”) by and between Pear Therapeutics, Inc. (“Pear”), a Delaware corporation having its principal place of business at 55 Temple Place, Floor 3, Boston MA 02111, and Behavioural Neurological Applications and Solutions Inc. (“Licensor”), having his principal place of business at 100 College Street, Suite 213, Toronto, ON M5G 1L5.
   
  WHEREAS Licensor owns and operates a suite of software applications called Megateam, which are software solutions for treating mental health conditions including ADHD (i.e., the Applications);
   
  WHEREAS, Licensor licenses the Applications in the form of a software development kit (“SDK”). The SDK is a customized version of the Applications, which includes clinical data tables, clinical data, sample user interface modules, the Application and application program interfaces (“API”) to permit third party developers to build bridges or interfaces to communicate with and import and export data to and from the Applications;
   
  WHEREAS Pear desires to obtain a license to the Licensor Products in order to allow Pear to embed a customized version of the Licensor Products into its own software and content offerings (i.e., the Pear Application) in order to create Integrated Products for use by healthcare professionals and patients worldwide, subject to the terms and conditions set forth in this Agreement; and
   
  WHEREAS Licensor is willing to enter into an agreement with Pear whereby Licensor will provide Pear with a license to the Licensor Products in order for Pear to create Integrated Products and license such Integrated Products to Pear’s Users, as well as to provide related services to Pear, including customization of the Applications, support and maintenance services, development services, training, and other professional services, on the terms set forth in this Agreement.
   
  NOW, THEREFORE, the parties agree as follows:
   
  1. DEFINITIONS. 
   
  Capitalized terms used but not defined in the body of this Agreement will be as defined in Exhibit A. The meanings given to terms in this Agreement are equally applicable to both the singular and the plural forms of the terms as the context may require.
   
  2. LICENSE. 
   
  2.1 Grant of Licenses. During the License Term and subject to the terms of this Agreement, Licensor hereby grants Pear a worldwide, non-transferable (except as permitted in the Agreement) right and license for Pear to do the following:
   
  2.1.1 Create Combination Products: to combine and package the Licensor Products with pharmaceutical drugs, medical foods, and/or food supplements to be marketed as a single product offering as a Combination Product; 
   
  2.1.2 Commercialize Combination Products: to commercialize and distribute, by way of sublicense to Users, theCombination Product in object code format only, which shall include: (a) the right to use the Content portion of the Licensor Products in Combination Products; and (b) as part of Stand-alone Offerings;   
  
 
    	 
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  2.1.3 Create Integrated Products: to use the source code to the SDK, including the APIs to adopt, modify,utilize, incorporate, embed and/or enhance the Licensor Products for the purpose of creating Integrated Products;   
  
  
  2.1.4 Commercialize Integrated Products: to license, sublicense and distribute to Users the Licensor Products inobject code format only as part of and included in any Integrated Products created by Pear, as part of a comprehensive product offering which may include, without limitation, compliance software, medical support, and data outcomes monitoring, as created by Pear; 
   
  2.1.5 Branding: to create the branding of Integrated Productswith marks of Pear’s choosing, provided thatLicensor is clearly identified as creator of the Applications and Content (e.g., “powered by Licensor” or comparable ingredient branding agreed upon by the parties); 
   
  2.1.6 Reseller: to distribute, license, sublicense and distribute to Users the Licensor Products in object codeformat only on a stand-alone basis, including permitting Users to access and use the Content; 
   
  2.1.7 Sub Distribution: Pear’s license rightsset out in subsections 2.1.2, 2.1.4 and 2.1.6 include the right for Pearto distribute Licensor Products to its Users directly or indirectly through Pear’s distributors, OEMs and resellers; and 
   
  2.1.8 Clinical Studies: to use the Licensor Products and the Integrated Products in clinical validation studies.
   
  The license right granted above to Pear by Licensor will be exclusive (including as to Licensor) with respect to the right granted in Subsection 2.1.2(a) above (i.e., with respect to use of the Licensor Products in connection with the creation of Combination Products), and non-exclusive with respect to all other rights granted to Pear in the Licensor Products under Section 2.1. In addition, all of the foregoing rights granted under Section 2.1 will be permissive but not obligatory; meaning that (unless otherwise expressly set forth in the Agreement to the contrary) Pear will not be under any obligation to use the Licensor Products and/or the Content in any manner whatsoever unless it so chooses.
   
  2.2 Restrictions. Except as expressly permitted in this Agreement, Pear will not (and will not permit third parties to): 
   
  (a) (except as necessary to exercise the rights set forth in Section 2.1, above) distribute, rent, or otherwise transfer any rights in the Licensor Products; 
   
  (b) except as necessary in the creation of Integrated Products, or pursuant to Section 3.17, modify the Applications. In addition, changes to the Integrated Products that involve further modifications of any customized version of the Applications provided by Licensor will be subject to mutual agreement of the parties, including around the reasonable costs involved to make any such changes; 
   
  (c) except as permitted by applicable law, reverse engineer, decrypt, decompile, or disassemble the Licensor Products; or 
   
  (d) use the Licensor Products in any manner or for any purpose not authorized or contemplated by this 
   
  Agreement. 
   
  2.3 Limitations on License. Notwithstanding the foregoing, if Pear does not secure the rights to sell Acceptable Drugs in conjunction with the Combination Products, the license granted pursuant to Section 2.1.2(a) will revert to a non-exclusive license.   
  
 
    	 
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  3. RESPONSIBILITIES OF THE PARTIES. 
   
  3.1 Responsibilities of Licensor. Licensor will have primary responsibility for performing the following tasks and providing the following services:   
  
    
  3.1.1 Delivery. Licensor will deliver the Licensor Products in the manner set forth in Exhibit B. Unless otherwise specified in Exhibit B, or in any amendment hereto, Licensor will deliver all Licensed Products electronically to the location(s) designated by Pear. Suppler will deliver patches, updates, and upgrades to the Licensed Products in accordance with the terms set forth in a separate agreement. 
   
  3.1.2 Integration. Licensor will work with Pear (for a mutually agreed upon duration of at least 60 days), to integrate the Licensor Products (i.e., the customized version of the Applications into the Integrated Product); both parties will work in good faith to insure that the integration will not materially impact the core operation of the Applications. If, during the foregoing mutually agreed upon integration period, the Licensor Products do not perform in accordance with the applicable specifications therefor, or Pear is unable to integrate the Licensor Products into the Integrated Products, Pear may return the Licensor Products and Licensor will refund to Pear all amounts paid for the such Licensor Products. 
   
  3.1.3 Clinical Validation. Licensor will provide access to all newly created clinical data involving the Applications as well as, where feasible, access to all existing clinical data. Licensor will also provide services related to further clinical validation of the Applications in combination with drugs. Services shall specifically include the composition of grant applications for clinical validation studies, as well as assistance with any funded clinical validation studies. Costs associated with these activities shall be covered by Pear at reasonable rates to be agreed by both parties. 
   
  3.1.4 Enhancement Requests. Licensor and Pear shall enter into a separate agreement for any enhancement requests made by Pear. 
   
  3.1.5 Additional Services. Licensor and Pear shall enter into a separate agreement for any other services requested by Pear. 
   
  3.1.6 Support and Maintenance. In exchange for the payment of the Support and Maintenance fees set forth in a separate agreement, if Pear so elects, Licensor will provide Pear with the Support and Maintenance Services (collectively, “Support”) more fully described in a separate agreement, which, for greater certainty, shall only consist of Tier 2 background support in relation to the Licensor Products. 
   
  3.2 Responsibilities of Pear. Subject to the Confidentiality provisions in Exhibit D, Pear will provide Licensor with access to any evaluations, methodology and the data produced through use of the Integrated Products that Pear’s partners/licensor allow Pear to access and provide (collectively, “Product Data”); provided that, Licensor may only use such Product Data for Licensor’s internal research purposes only. Without limiting the generality of the foregoing, and by way of illustration, (a) Licensor may not use any Product Data to market any end users on behalf of a competitive product or service; (b) the Product Data will not contain any personally identifiable information; and (c) such Product Data will be owned by Pear. 
   
  3.3 Mutual Obligations of the Parties. Unless agreed by the parties, this Agreement does not set forth any specific service level agreements for customer support. Absent further agreement, Pear will respond to any support requests arising from Users that relate specifically to the Pear Customizations or any Pear functionality or data contained in the Integrated Product. Licensor will provide customer support regarding any and all issues arising from the Licensor Products themselves in accordance with its standard support practices and levels.   
  
 
    	 
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  4. HIPAA REQUIREMENTS. 
   
  4.1 Compliance with HIPAA. Licensor acknowledges that any Pear Data transmitted to Licensor hereunder may be subject to federal and state laws, rules and regulations relating to among other subjects, the confidentiality, privacy or security of patient information, including without limitation, the Administrative Simplification Provisions of the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.45 C.F.R. Part 160, 162, 164 (“HIPAA”) and the applicable regulations promulgated thereunder. The parties will at all times comply with the applicable provisions of such laws, rules, and regulations and with the applicable corporate policies and provision of the parties, with respect to the performance of their obligations under this Agreement, with respect to the confidentiality, privacy and security of Protected Health Information (“PHI”) and electronic Protected Health Information, as defined in 45 C.F.R. § 164.501 (“ePHI”). For purposes of this Agreement, PHI means individually identifiable information as defined by the Standards for Privacy of Individually Identifiable Health Information, 45 C.F.R. Parts 160 and 164. Cross border data considerations and protocols will be designed by Pear to ensure compliance.
   
  5. REQUIREMENTS REGARDING USERS. 
   
  5.1 User License Agreement. For Combination Products that have a shrink wrap End User License Agreement (an “EULA”), Licensor shall deliver to Pear the required EULA for delivery to the User. Pear shall deliver to the User with each such Combination Product and the appropriate EULA packaged correctly such that the User must perform the necessary steps to agree to the terms of the EULA prior to the User being able to use the Combination Product. For those Combination Products that do not have an associated shrink wrap EULA, Pear shall require the User to execute an EULA, in a form mutually agreed to by Pear and Licensor prior to delivering the Combination Product to the User. In the event that a prospective User desires to amend or change the EULA, such amendments or changes shall require Licensor’s prior written approval. 
   
  5.2 User Information and Reporting. Pear shall obtain from each User such information as required by Licensor from time to time and, if necessary, the consent of such User to collect such information and consent to provide such information to Licensor; provided that, notwithstanding the foregoing, Licensor shall not require any personally identifiable or personal health information. Within ten (10) business days after the end of each calendar quarter and upon the expiration or termination of this Agreement, Pear shall provide Licensor with the required information collected from each End User. 
   
  5.3 No Representations. Pear shall not: 
   
  (i) make any representations to any Person regarding the performance and functionality of the Combination Product or Stand-alone Product other than those contained in Licensor’s published specifications; or 
   
  (ii) hold itself out as an agent of Licensor and shall not, nor attempt to, negotiate any contractual arrangement as agent of Licensor, sign any agreement as if it is Licensor or otherwise bind Licensor to any contractual arrangement with a third Person, other than to deliver to an End User an EULA. 
   
  6. FEES. 
   
  6.1 License Fees. In consideration of the licenses granted to Pear herein, Pear will pay Licensor the license fees set forth in Exhibit B (the “License Fee”). 
   
  6.2 Reimbursement of Expenses. Pear will reimburse Licensor for all reasonable out-of-pocket expenses incurred by Licensor in performing services under Section 3.15 of this Agreement provided such expenses are approved in writing by Pear in advance. Such out-of-pocket expenses may include: reasonable travel expenses, other than for normal commuting, including airfares, rental vehicles, and highway mileage in company or personal vehicles at the then current IRS approved rate, and meals and lodging. Licensor shall submit an itemized statement of Licensor’s expenses due under this Section 6.2, including receipts and other documentation, on a monthly basis. Pear shall reimburse Licensor within forty-five (45) days from the receipt of each statement by Pear.   
  
   
  7. STANDARD LEGAL TERMS AND CONDITIONS: The Standard Legal Terms and Conditionsgoverning this Agreement are contained in Exhibit D and incorporated herein by reference.   
  
 
    	 
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  IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.
   
   
    	  PEAR THERAPEUTICS, INC.:
		  LICENSOR:

	   
	   
	   
	   
		   

	  By:
			  By:
		   

	  Name:
		   
	  Name:
	Scott Woodrow	   

	  Title:
		   
	  Title:
	CEO	   

	  Date:
		   
	  Date:
	12 / 29 / 2014	   

  
 
   
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