Document:

Exhibit 10.23

 

LEADING BIOSCIENCES,
INC.

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (the
“Agreement”) is made and entered into effective as of December 16, 2020 (the “Effective Date”),
by and between JD Finley (“Executive”) and Leading BioSciences, Inc. (the “Company”).

This Agreement supersedes and
replaces in their entirety all other or prior agreements, whether oral or written, with respect to Executive’s employment
terms with the Company or its affiliates or predecessors, including without limitation that certain January 23, 2017 (the “Prior
Agreements”). Executive agrees and acknowledges that this Agreement shall not constitute and shall not be deemed
for any purpose to be a termination without Cause or a Good Reason resignation right, including for purposes of the Prior Agreements.

 

Now,
Therefore, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.                 
Employment by the Company.

1.1             
Position. Executive shall serve as the Company’s Chief Financial Officer and shall report to the Company’s
Chief Executive Officer (“CEO”). During the term of Executive’s employment with the Company, Executive
will devote Executive’s best efforts and substantially all of Executive’s business time and attention to the business
of the Company, except for approved vacation periods and reasonable periods of illness or other incapacities permitted by the Company’s
general employment policies. Following the Effective Date, Executive shall initially continue to serve as a member of the Board
of Directors (the “Board”). If Executive ceases to serve as an officer of the Company for any reason,
then Executive will resign from his position as a member of the Board), if and as requested by the Board.

1.2             
Duties and Location. Executive shall perform such duties as are customarily associated with the position of Chief Executive
Officer and such other duties as are assigned to Executive by the CEO. Executive’s primary office location shall be the Company’s
headquarters located in Carlsbad, California. Subject to the terms of this Agreement, the Company reserves the right to (a) reasonably
require Executive to perform Executive’s duties at places other than Executive’s primary office location from time
to time and to require reasonable business travel, and (b) modify Executive’s job title and duties as it deems necessary
and appropriate in light of the Company’s needs and interests from time to time.

1.3             
Policies and Procedures. The employment relationship between the parties shall be governed by the general employment
policies and practices of the Company, except that when the terms of this Agreement differ from or are in conflict with the Company’s
general employment policies or practices, this Agreement shall control.

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2.                 
Cash Compensation.

2.1             
Base Salary. For services to be rendered hereunder, Executive shall receive a base salary at the rate of $292,500 per
year (the “Base Salary”), less standard payroll deductions and withholdings and payable in accordance
with the Company’s regular payroll schedule; provided that, from and after the earlier to occur of (i) the initial
public offering of the Company’s common stock pursuant to a firmly underwritten offering and registered with the US Securities
and Exchange Commission and (ii) the date on which the Company or the parent or a subsidiary of the Company is subject to the reporting
requirements of Section 13 and Section 15(d) of the U.S. Securities Exchange Act of 1934, as amended (such earlier date, the “Public
Company Date”), Executive’s Base Salary shall be increased to $400,000 per year. The Board (or the Compensation
Committee thereof) may review Executive’s Base Salary for adjustment from time to time.

2.2             
Bonus. Executive will be eligible to be considered for a discretionary annual performance bonus of up to 40% of the
Base Salary, based on achievement of individual and/or corporate performance targets, metrics and/or objectives to be determined
and approved by the Board or the Compensation Committee thereof, including pursuant to an annual incentive plan or similar plan
approved by the Board, if any. Any such bonus would be paid after the close of the fiscal year and after determination by the Board
(or the Compensation Committee thereof) of (i) the level of achievement of the applicable individual and corporate performance
targets, metrics and/or objectives and (ii) the amount of the annual incentive compensation earned by Executive (if any). No annual
incentive compensation is guaranteed and, in addition to the other conditions for earning such compensation, Executive must remain
an employee in good standing of the Company on the annual incentive compensation payment date in order to be eligible for any annual
incentive compensation. The Board (or the Compensation Committee thereof) may review Executive’s annual performance bonus
amount for adjustment from time to time.

3.                 
Public Company Date Bonus. Promptly following the Public Company Date (but in no event more than one week after), you
shall receive a one-time bonus payment equal to $181,000, less standard payroll deductions and withholdings.

4.                 
Standard Company Benefits; Expenses. Executive shall, in accordance with Company policy and the terms and conditions
of the applicable Company benefit plan documents, be eligible to participate in the benefit and fringe benefit programs provided
by the Company to its executive officers and other employees from time to time. Any such benefits shall be subject to the terms
and conditions of the governing benefit plans and policies and may be changed by the Company in its discretion. The Company will
reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in furtherance or in connection
with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy
as in effect from time to time.

5.                 
Equity Awards. 

5.1             
All Company equity awards previously granted to Executive (such awards, the “Prior Equity Awards”)
shall continue in effect from and following the Effective Date in accordance with their existing terms.

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5.2             
Immediately prior to the Public Company Date, subject to approval of the Board, the Company shall grant you an option
to purchase up to 1,200,000 shares of Common Stock of the Company at the fair market value on the date of grant (the “Public
Option”). The Option shall be fully vested as of the date of grant. The Option shall be governed in all respects
by the terms of the governing plan documents and option agreement between you and the Company (the “Plan”).

5.3             
Executive may be eligible to receive additional grants of Company equity awards in the sole discretion of and subject
to the approval of the Board.

6.                 
Proprietary Information Obligations.

6.1             
Proprietary Information Agreement. Executive will continue to abide by the Company’s standard Confidential Information
and Invention Assignment Agreement attached hereto as Exhibit A (“Proprietary
Agreement”).

6.2             
Third-Party Agreements and Information. Executive represents and warrants that Executive’s employment by the Company
does not conflict with any prior employment or consulting agreement or other agreement with any third party, and that Executive
will perform Executive’s duties to the Company without violating any such agreement. Executive represents and warrants that
Executive does not possess confidential information arising out of prior employment, consulting, or other third party relationships,
that would be used in connection with Executive’s employment by the Company, except as expressly authorized by that third
party. During Executive’s employment by the Company, Executive will use in the performance of Executive’s duties only
information that is generally known and used by persons with training and experience comparable to Executive’s own, common
knowledge in the industry, otherwise legally in the public domain, or obtained or developed by the Company or by Executive in the
course of Executive’s work for the Company.

7.                 
Outside Activities and Non-Competition and No-Solicit. 

7.1             
Outside Activities. Throughout Executive’s employment with the Company, Executive may engage in civic and not-for-profit
activities so long as such activities do not interfere with the performance of Executive’s duties hereunder or present a
conflict of interest with the Company or its affiliates. Subject to the restrictions set forth herein, and only with prior written
disclosure to and consent of the Board, Executive may engage in other types of business or public activities. The Board may rescind
such consent, if the Board determines, in its sole discretion, that such activities compromise or threaten to compromise the Company’s
or its affiliates’ business interests or conflict with Executive’s duties to the Company or its affiliates.

7.2             
Non-Competition During Employment. Except as otherwise provided in this Agreement, during Executive’s employment
by the Company, Executive will not, without the express written consent of the Board, directly or indirectly serve as an officer,
director, stockholder, employee, partner, proprietor, investor, joint venturer, associate, representative or consultant of any
person or entity engaged in, or planning or preparing to engage in, business activity competitive with any line of business engaged
in (or planned to be engaged in) by the Company or its affiliates; provided, however, that Executive may purchase or otherwise
acquire up to (but not more than) one percent (1%) of any class of securities of any enterprise (without participating in the activities
of such enterprise) if such securities are listed on any national or regional securities exchange. In addition, Executive will
be subject to certain restrictions (including restrictions continuing after Executive’s employment ends) under the terms
of the Proprietary Agreement.

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7.3             
Non-Solicitation. Executive agrees that during the period of employment with the Company and for twelve (12) months
after the date Executive’s employment is terminated for any reason, Executive will not, either directly or through others,
solicit or encourage or attempt to solicit or encourage any employee, independent contractor, or consultant of the Company to terminate
his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other
person or entity.

8.                 
Termination of Employment; Severance and Change in Control Benefits.

8.1             
At-Will Employment. Executive’s employment relationship is at-will. Either Executive or the Company may terminate
the employment relationship at any time, with or without Cause (as defined below) or advance notice. In the event Executive's employment
with the Company is terminated for any reason, Executive will be entitled to all of Executive's earned compensation and benefits
or otherwise as required by law through the date of termination. For the avoidance of doubt, Executive shall not be entitled to
any additional compensation or benefits hereunder in the event Executive's employment is terminated for Cause, due to Executive's
resignation without Good Reason, upon Executive's death or Executive's Disability (as defined below); provided that this
Section 8.1 does not purport to alter (a) any separate agreement entered into after the Effective Date and pursuant which Executive
is expressly entitled to benefits or other compensation on or after the events set forth in this sentence, including, if applicable,
the Equity Documents, or (b) any agreements between the Executive and any third party, including insurance policies or the like.
If Executive's employment terminates due to an Involuntary Termination (as defined below), Executive will be eligible to receive
the additional compensation and benefits described in Sections 8.2 and 8.3, as applicable.

8.2             
Termination Without Cause or Resignation for Good Reason Unrelated to Change in Control. If at any time following the
Public Company Date, except during the Change in Control Period (as defined below), (i) the Company terminates Executive’s
employment without Cause (as defined below and other than as a result of Executive’s death or Disability), or (ii) Executive
resigns for Good Reason (as defined below), and provided in any case such termination constitutes a “separation from service”,
as defined under Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”) (such termination
described in (i) or (ii), an “Involuntary Termination”), Executive shall be entitled to receive the following
severance benefits, subject in all events to Executive’s compliance with Section 8.4 below:

(i)                
Executive shall receive severance pay in the form of continuation of Executive’s base salary in effect (ignoring
any decrease that forms the basis for Executive’s resignation for Good Reason, if applicable) on the effective date of Executive’s
Involuntary Termination for the twelve (12) months (the “Severance Period”) after the date of such termination;

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(ii)             
If Executive is eligible for and timely elects to continue Executive’s health insurance coverage under the Company’s
group health plans under the Consolidated Omnibus Budget Reconciliation Act of 1985 or the state equivalent (“COBRA”)
following Executive’s termination date, the Company will pay the COBRA group health insurance premiums for Executive and
Executive’s eligible dependents until the earliest of (A) the close of the Severance Period, (B) the expiration of Executive’s
eligibility for the continuation coverage under COBRA, or (C) the date when Executive becomes eligible for substantially equivalent
health insurance coverage in connection with new employment or self-employment. For purposes of this Section, references to COBRA
premiums shall not include any amounts payable by Executive under a Section 125 health care reimbursement plan under the U.S.
Internal Revenue Code. Notwithstanding the foregoing, if at any time the Company determines, in its sole discretion, that it cannot
pay the COBRA premiums without potentially incurring financial costs or penalties under applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), then regardless of whether Executive elects continued health coverage under COBRA,
and in lieu of providing the COBRA premiums, the Company will instead pay Executive on the last day of each remaining month of
the Severance Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings
(such amount, the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly
installments on the same schedule that the COBRA premiums would otherwise have been paid and shall be equal to the amount that
the Company would have otherwise paid for COBRA premiums, and shall be paid until the earlier of (i) expiration of the Severance
Period or (ii) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with
new employment or self-employment;

(iii)           
Notwithstanding anything to the contrary set forth in the Plan or any successor equity incentive plan or any award agreement,
the vesting of all of Executive’s then-outstanding stock awards, including any Prior Equity Awards, that are subject to time-based
vesting shall be accelerated such that on the effective date of such termination that number of the shares subject to time-based
vesting in such stock awards granted to Executive prior to the effective date of such termination shall be vested as if Executive’s
employment had continued for the duration of the Severance Period and shall immediately exercisable by Executive. Treatment of
any performance-based vesting equity awards will be governed solely by the terms of the agreements under which such awards were
granted and will not be eligible to accelerate vesting pursuant to the foregoing provision; and

(iv)            
If requested by Executive, the Company shall pay for up to three (3) months of job-placement services with a service
provider of the Company’s choosing, which must be utilized during the six (6) months immediately following Executive’s
termination of employment.

The salary continuation payments described
in this Section 8.2 will be paid in substantially equal installments on the Company’s regular payroll schedule and subject
to standard deductions and withholdings over the Severance Period following termination; provided, however, that no payments will
be made prior to the effectiveness of the Release (defined below). On the effective date of the Release, the Company will pay Executive
the salary continuation payments that Executive would have received on or prior to such date in a lump sum under the original schedule
but for the delay while waiting for the effectiveness of the release, with the balance of the cash severance being paid as originally
scheduled.

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8.3             
Termination Without Cause or Resignation for Good Reason During Change in Control Period. In the event of an Involuntary
Termination at any time following the Public Company Date and during the time period commencing three (3) months immediately prior
to the effective date of a Change in Control (as defined in the Company’s 2017 Equity Incentive Plan (the “Plan”))
and ending on the date that is twelve (12) months after the effective date of a Change in Control (the “Change in Control
Period”), in lieu of the payments and benefits described in Section 8.2, and subject in all events to Executive’s
compliance with Section 8.4 below, the Executive shall be entitled to the following severance benefits:

(i)                
Executive shall receive a severance payment equal to the sum of (x) twelve (12) months’ of Executive’s base
salary in effect (ignoring any decrease that forms the basis for Executive’s resignation for Good Reason, if applicable)
on the effective date of Executive’s Involuntary Termination plus (y) an amount equal to Executive’s target bonus in
effect at the time of termination, or if none, the last target bonus in effect for Executive, less standard deductions and withholdings,
to be paid in a lump sum no later than ten (10) days following the later of (A) the effectiveness of the Release (as defined below)
or (B) the effective date of the Change in Control;

(ii)             
If Executive is eligible for and timely elects to continue Executive’s health insurance coverage under the Company’s
group health plans under the Consolidated Omnibus Budget Reconciliation Act of 1985 or the state equivalent (“COBRA”)
following Executive’s termination date, the Company will pay the COBRA group health insurance premiums for Executive and
Executive’s eligible dependents until the earliest of (A) the close of the Severance Period, (B) the expiration of Executive’s
eligibility for the continuation coverage under COBRA, or (C) the date when Executive becomes eligible for substantially equivalent
health insurance coverage in connection with new employment or self-employment. For purposes of this Section, references to COBRA
premiums shall not include any amounts payable by Executive under a Section 125 health care reimbursement plan under the U.S.
Internal Revenue Code. Notwithstanding the foregoing, if at any time the Company determines, in its sole discretion, that it cannot
pay the COBRA premiums without potentially incurring financial costs or penalties under applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), then regardless of whether Executive elects continued health coverage under COBRA,
and in lieu of providing the COBRA premiums, the Company will instead pay Executive on the last day of each remaining month of
the Severance Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings
(such amount, also referred to herein as, the “Health Care Benefit Payment”). The Health Care Benefit
Payment shall be paid in monthly installments on the same schedule that the COBRA premiums would otherwise have been paid and shall
be equal to the amount that the Company would have otherwise paid for COBRA premiums, and shall be paid until the earlier of (i)
expiration of the Severance Period or (ii) the date when Executive becomes eligible for substantially equivalent health insurance
coverage in connection with new employment or self-employment;

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(iii)           
Notwithstanding anything to the contrary set forth in the Plan or any successor equity incentive plan or any award agreement,
the vesting of all of Executive’s then-outstanding stock awards, including any Prior Equity Awards, that are subject to time-based
vesting shall be fully accelerated such that on the effective date of such termination one hundred percent (100%) of the shares
subject to time-based vesting in such stock awards granted to Executive prior to the effective date of such termination shall be
fully vested and immediately exercisable by Executive. Treatment of any performance-based vesting equity awards will be governed
solely by the terms of the agreements under which such awards were granted and will not be eligible to accelerate vesting pursuant
to the foregoing provision; and

(iv)            
If requested by Executive, the Company shall pay for up to three (3) months of job-placement services with a service
provider of the Company’s choosing, which must be utilized during the six (6) months immediately following Executive’s
termination of employment.

8.4             
Conditions and Timing for Severance Benefits. The severance benefits set forth in Sections 8.2 and 8.3 above are expressly
conditioned upon: (i) Executive’s continuing to comply with Executive’s obligations under Executive’s Proprietary
Agreement; and (ii) Executive signing and not revoking a general release of legal claims in the form provided by the Company which
shall include a nondisparagement provision and a full general release of claims against the Company and related persons and entities
and a commitment from Executive to comply with Executive’s continuing obligations under Executive’s Proprietary Agreement,
but will not include a release of any rights or claims for indemnification Executive may have pursuant to any written indemnification
agreement with the Company to which Executive is a party, the Company’s bylaws, or applicable law (the “Release”)
within the applicable deadline set forth therein and permitting the Release to become effective in accordance with its terms, which
must occur no later than forty-five (45) days following the date of termination (the “Release Deadline”).

8.5             
Definitions. For purposes of this Agreement:

(i)                
“Cause” means, with respect to Executive, the occurrence of any of the following events: (i) Executive’s
commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any
state thereof; (ii) Executive’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company;
(iii) Executive’s intentional, material violation of any contract or agreement between Executive and the Company or
of any statutory duty owed to the Company that has not been cured, if curable, within fifteen (15) days after written notice from
the Board of such violation; (iv) Executive’s unauthorized use or disclosure of the Company’s confidential information
or trade secrets; or (v) Executive’s gross misconduct that has not been cured, if curable, within fifteen (15) days
after written notice from the Board requesting that the Executive cure such misconduct.

(ii)             
“Disability” means the inability of Executive to engage in substantially gainful Company activity
by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than twelve (12) months, and shall be determined by the Board on
the basis of such medical evidence as the Board deems warranted under the circumstances.

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(iii)           
“Good Reason” means Executive’s resignation from employment with the Company (or successor
to the Company, if applicable) due to any of the following actions taken by the Company (or successor to the Company, if applicable)
without Executive’s prior written consent thereto: (1) a material reduction in Executive’s base salary, which the parties
agree is a reduction of at least 10% of Executive’s base salary (unless pursuant to a salary reduction program applicable
generally to the Company’s similarly situated employees); (2) a material reduction in Executive’s authority, duties
or responsibilities; (3) a relocation of Executive’s principal place of employment to a place that increases Executive’s
one-way commute by more than fifty (50) miles as compared to Executive’s then-current principal place of employment immediately
prior to such relocation (excluding regular travel in the ordinary course of business); and (4) a breach of a material provision
of this Agreement by the Company. Notwithstanding the foregoing, in order to resign for Good Reason, Executive must provide
written notice to the Company within thirty (30) days after the first occurrence of the event giving rise to Good Reason setting
forth the basis for Executive’s resignation and allow the Company at least thirty (30) days from receipt of such written
notice to cure such event, and, if such event is not reasonably cured within such period, Executive’s resignation from all
positions Executive then holds with the Company is effective not later than thirty (30) days after the expiration of the cure period.

8.6             
Section 409A. It is intended that all of the benefits and other payments payable under this Agreement satisfy, to the
greatest extent possible, an exemption from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively
“Section 409A”), and this Agreement will be construed to the greatest extent possible as consistent with
those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner
that complies with Section 409A, and any ambiguities herein shall be interpreted accordingly. Specifically, the benefits under
this Agreement are intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections
1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) and each installment of severance benefits is a separate “payment”
for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i). However, if such exemptions are not available and Executive is,
upon Separation from Service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary
to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until
the earlier of (i) six (6) months and one day after Executive’s Separation from Service, or (ii) Executive’s death.
Severance benefits shall not commence until Executive has a Separation from Service. If the severance benefits are not covered
by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year following
the calendar year in which Executive's Separation from Service occurs, the Release will not be deemed effective, for purposes of
payment of severance, any earlier than the Release Deadline. Except to the minimum extent that payments must be delayed because
Executive is a “specified employee” or until the effectiveness of the Release, all severance amounts will be paid as
soon as practicable in accordance with the Company’s normal payroll practices.

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8.7              
Section 280G. If any payment or benefit Executive will or may receive from the Company or otherwise (a “Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment
will be equal to the Reduced Amount (defined below). The “Reduced Amount” will be either (l) the largest
portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (2)
the entire Payment, whichever amount after taking into account all applicable federal, state and local employment taxes, income
taxes, and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income
taxes which could be obtained from a deduction of such state and local taxes), results in Executive’s receipt, on an after-tax
basis, of the greatest amount of the Payment. If a reduction in the Payment is to be made so that the Payment equals the Reduced
Amount, (x) the Payment will be paid only to the extent permitted under the Reduced Amount alternative, and the Executive will
have no rights to any additional payments and/or benefits constituting the Payment, and (y) reduction in payments and/or benefits
will occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other
than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other benefits paid to Executive.
In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled
in the reverse order of the date of grant of Executive’s equity awards. In no event will the Company or any stockholder be
liable to Executive for any amounts not paid as a result of the operation of this Section. The professional firm engaged by the
Company for general tax purposes as of the day prior to the effective date of the change in control will perform the foregoing
calculations. If the tax firm so engaged by the Company is serving as accountant or auditor for the acquirer, the Company will
appoint a nationally recognized tax firm to make the determinations required hereunder. The Company will bear all expenses with
respect to the determinations by such firm required to be made hereunder. If the tax firm determines that no Excise Tax is payable
with respect to a Payment, either before or after the application of the Reduced Amount, it will furnish the Company and Executive
with documentation that no Excise Tax is reasonably likely to be imposed with respect to such Payment. Any good faith determinations
of the tax firm made hereunder will be final, binding and conclusive upon the Company and Executive.

9.                 
Dispute Resolution. To ensure the rapid and economical resolution of disputes that may arise in connection with Executive’s
employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or
equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation
of this Agreement, Executive’s employment with the Company, or the termination of Executive’s employment from the Company,
will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final,
binding and confidential arbitration conducted in San Diego, California by JAMS, Inc. (“JAMS”) or its
successors, under JAMS’ then applicable rules and procedures for employment disputes (which can be found at https://www.jamsadr.com/rules-employment-arbitration/,
and which will be provided to Executive on request); provided that the arbitrator shall: (a) have the authority to compel adequate
discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written
arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. Executive
and the Company shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law. Both
Executive and the Company acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such
dispute through a trial by jury or judge or administrative proceeding. The Company shall pay all filing fees in excess of those
which would be required if the dispute were decided in a court of law, and shall pay the arbitrator’s fee. Nothing in this
Agreement is intended to prevent either the Company or Executive from obtaining injunctive relief in court to prevent irreparable
harm pending the conclusion of any such arbitration.

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10.             
General Provisions.

10.1         
Notices. Any notices provided must be in writing and will be deemed effective upon the earlier of personal delivery
(including personal delivery by fax) or the next day after sending by overnight carrier, to the Company at its primary office location
and to Executive at the address as listed on the Company payroll.

10.2          
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction to the extent
possible in keeping with the intent of the Parties.

10.3         
Waiver. Any waiver of any breach of any provisions of this Agreement must be in writing to be effective, and it shall
not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

10.4         
Complete Agreement. This Agreement, together with the Proprietary Agreement, and the Indemnification Agreement attached
hereto as Exhibit B, constitutes the entire agreement between Executive and
the Company with regard to the subject matter hereof and is the complete, final, and exclusive embodiment of the Company’s
and Executive’s agreement with regard to this subject matter. This Agreement is entered into without reliance on any promise
or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties
or representations (including, but not limited to, the Prior Agreements). It cannot be modified or amended except in a writing
signed by a duly authorized officer of the Company, with the exception of those changes expressly reserved to the Company’s
discretion in this Agreement.

10.5         
Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures
of more than one party, but both of which taken together will constitute one and the same Agreement.

10.6         
Headings. The headings of the paragraphs hereof are inserted for convenience only and shall not be deemed to constitute
a part hereof nor to affect the meaning thereof.

10.7         
Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive
and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign
any of Executive’s duties hereunder and Executive may not assign any of Executive’s rights hereunder without the written
consent of the Company, which shall not be withheld unreasonably.

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10.8         
Tax Withholding. All payments and awards contemplated or made pursuant to this Agreement will be subject to withholdings
of applicable taxes in compliance with all relevant laws and regulations of all appropriate government authorities. Executive acknowledges
and agrees that the Company has neither made any assurances nor any guarantees concerning the tax treatment of any payments or
awards contemplated by or made pursuant to this Agreement. Executive has had the opportunity to retain a tax and financial advisor
and fully understands the tax and economic consequences of all payments and awards made pursuant to the Agreement.

10.9         
Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed
by the laws of the State of California.

[Signature Page Follows]

 

 

 

 

 

 

 

    	 	11	 

     

    

In Witness
Whereof, the parties have executed this Agreement on the date first written above.  

 

	 	Leading BioSciences, Inc.
	 	 	 	 
	 	By:	 	/s/ Thomas Hallam, Ph.D.
	 	 	Name:	Thomas Hallam, Ph.D.
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	Executive
	 	 	 	 
	 	/s/ JD Finley
	 	JD Finley
	 	 	 	 

 

 

 

 

 

 

 

 

    	 	12	 

     

    

Exhibit A

 

Proprietary Agreement

 

 

 

 

 

 

 

 

 

 

 

 

    	 	13	 

     

    

Exhibit B

 

Indemnification Agreement

 

 

 

 

 

 

 

 

 

 

 

 

14Exhibit 10.24

 

 

 

 

LEADING BIOSCIENCES, INC.

 

AMENDED AND RESTATED

 

2013 EMPLOYEE, DIRECTOR AND CONSULTANT
EQUITY INCENTIVE PLAN

 

 

		1.	DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this Leading Biosciences, Inc. Amended and Restated 2013
Employee, Director and Consultant Equity Incentive Plan, have the following meanings:

 

Administrator means the
Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means
the Committee.

 

Affiliate means a corporation
which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement
between the Company and a Participant delivered pursuant to the Plan and pertaining to a Stock Right, in such form as the Administrator
shall approve.

 

Board of Directors means
the Board of Directors of the Company.

 

California Participant means
a Participant who resides in the State of California.

 

Cause means, with respect
to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non-feasance
of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate,
and (e) conduct substantially prejudicial to the business of the Company or any Affiliate; provided, however, that any provision
in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination
and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant. The determination
of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.

 

Code means the United States
Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.

 

Committee means the committee
of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the
Plan.

 

     

     

    

Common Stock means shares
of the Company’s common stock, $.001 par value per share.

 

Company means Leading Biosciences,
Inc., a Delaware corporation.

 

Consultant means any natural
person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services
are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly
promote or maintain a market for the Company’s or its Affiliates’ securities.

 

Disability or Disabled
means permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee
of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of
the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the
Plan.

 

Exchange Act means the Securities
Exchange Act of 1934, as amended.

 

Fair Market Value of a Share
of Common Stock means:

 

(1)              
If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices
are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite
tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading
day, the last market trading day prior to such date;

 

(2)              
If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales
prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked
prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close
of trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date and if such
applicable date is not a trading day, the last market trading day prior to such date; and

 

(3)              
If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such
value as the Administrator, in good faith, shall determine.

 

ISO means an option intended
to qualify as an incentive stock option under Section 422 of the Code.

 

Non-Qualified Option means
an option which is not intended to qualify as an ISO.

 

    	2

     

    

Option means an ISO or Non-Qualified
Option granted under the Plan.

 

Participant means an Employee,
director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As used herein,
“Participant” shall include “Participant’s Survivors” where the context requires.

 

Plan means this Leading
Biosciences, Inc. 2013 Employee, Director and Consultant Equity Incentive Plan.

 

Securities Act means the
Securities Act of 1933, as amended.

 

Shares means shares of the
Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the
Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under
the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock-Based Award means
a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.

 

Stock Grant means a grant
by the Company of Shares under the Plan.

 

Stock Right means a right
to Shares or the value of Shares of the Company granted pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant or
a Stock-Based Award.

 

Survivor means a deceased
Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right
by will or by the laws of descent and distribution.

 

 

		2.	PURPOSES OF THE PLAN.

 

The Plan is intended
to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order
to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional
incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified
Options, Stock Grants and Stock-Based Awards.

 

 

		3.	SHARES SUBJECT TO THE PLAN.

 

(a)           The
number of Shares which may be issued from time to time pursuant to this Plan shall be 35,000,000, or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 24 of the Plan.

 

    	3

     

    

(b)           If
an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire
(at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired
Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding
the foregoing, if a Stock Right is exercised, in whole or in part, by tender of Shares or if the Company or an Affiliate’s
tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for
purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right
or portion thereof, and not the net number of Shares actually issued. However, in the case of ISOs, the foregoing provisions shall
be subject to any limitations under the Code.

 

 

		4.	ADMINISTRATION OF THE PLAN.

 

The Administrator of
the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized
to:

 

(a)           Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary
or advisable for the administration of the Plan;

 

(b)           Determine which Employees, directors and Consultants shall be granted Stock Rights;

 

(c)           Determine the number of Shares for which a Stock Right or Stock Rights shall be granted;

 

(d)           Specify
the terms and conditions upon which a Stock Right or Stock Rights may be granted;

 

(e)           Amend
any term or condition of any outstanding Stock Right, including, without limitation, to reduce or increase the exercise price
or purchase price, accelerate the vesting schedule or extend the expiration date, provided that (i) such term or condition as
amended is permitted by the Plan; (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously
granted without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors;
and (iii) any such amendment shall be made only after the Administrator determines whether such amendment would cause any adverse
tax consequences to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d)
of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section 409A of the Code;

 

(f)            Buy out for a payment in cash or Shares, a Stock Right previously granted and/or cancel any such Stock Right and grant in
substitution therefor other Stock Rights, covering the same or a different number of Shares and having an exercise price or purchase
price per share which may be lower or higher than the exercise price or purchase price of the cancelled Stock Right, based on such
terms and conditions as the Administrator shall establish and the Participant shall accept; and

 

    	4

     

    

(g)           Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with
or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate
the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or
Shares issuable pursuant to a Stock Right; provided, however, that all such interpretations, rules, determinations, terms and
conditions shall be made and prescribed in the context of not causing any adverse tax consequences under Section 409A of the Code
and preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs. Subject to the foregoing,
the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it
shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. In addition, if
the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility
of the Committee.

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time.

 

 

		5.	ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will,
in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director
or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator
may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate;
provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become
a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to
Employees who are deemed to be residents of the United States for tax purposes. Non-Qualified Options, Stock Grants and Stock-Based
Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate. The granting of any Stock Right to
any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock
Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.

 

 

		6.	TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be
set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto (which approval shall
by the holders of a majority of the then-outstanding shares of stock of the Company or as otherwise required by the Company’s
charter documents). The Option Agreements shall be subject to at least the following terms and conditions:

 

    	5

     

    

(a)           Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such
Non-Qualified Option:

 

		(i)	Exercise Price: Each Option Agreement shall state the exercise price (per share) of the
Shares covered by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to 85%
of Fair Market Value per share of Common Stock on the date of grant of the Option provided, that if the exercise price is less
than Fair Market Value, the terms of such Option must comply with the requirements of Section 409A of the Code unless granted to
a Consultant to whom Section 409A of the Code does not apply.

 

		(ii)	Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

 

		(iii)	Option Periods: Each Option Agreement shall state the date or dates on which it first is
exercisable and the date after which it may no longer be exercised, and may provide that the Option rights accrue or become exercisable
in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals
or events. For California Participants, the exercise period of the Option set forth in the Option Agreement shall not be more than
120 months from the date of grant.

 

		(iv)	Option Conditions: Exercise of any Option may be conditioned upon the Participant’s
execution of a Share purchase agreement in form satisfactory to the Administrator providing for certain protections for the Company
and its other shareholders, including requirements that:

 

		A.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the
Shares may be restricted; and

 

		B.	The Participant or the Participant’s Survivors may be required to execute letters of investment
intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

		(v)	Term of Option: Each Option shall terminate not more than ten years from the date of the
grant or at such earlier time as the Option Agreement may provide.

 

(b)           ISOs:
Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for
tax purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the
Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings
of the Internal Revenue Service:

 

    	6

     

    

		(i)	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options,
as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.

 

		(ii)	Exercise Price: Immediately before the ISO is granted, if the Participant owns, directly
or by reason of the applicable attribution rules in Section 424(d) of the Code:

 

		A.	10% or less of the total combined voting power of all classes of stock of the Company or
an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value
per share of the Common Stock on the date of grant of the Option; or

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of
the Common Stock on the date of grant of the Option.

 

		(iii)	Term of Option: For Participants who own:

 

		A.	10% or less of the total combined voting power of all classes of stock of the Company or
an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the Option
Agreement may provide; or

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may
provide.

 

		(iv)	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which
may become exercisable in any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate
Fair Market Value (determined on the date each ISO is granted) of the stock with respect to which ISOs are exercisable for the
first time by the Participant in any calendar year does not exceed $100,000.

 

 

		7.	TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to
a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. For California Participants, each Stock Grant shall be issued within ten (10) years
from the earlier of the date the Plan is adopted or approved by the Company’s shareholders. The Agreement shall be in a form
approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in
the best interest of the Company, subject to the following minimum standards:

 

    	7

     

    

(a)           Each
Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall
be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation
Law, if any, on the date of the grant of the Stock Grant;

 

(b)           Each
Agreement shall state the number of Shares to which the Stock Grant pertains; and

 

(c)           Each
Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant,
including the time and events upon which such rights shall accrue and the purchase price therefor, if any.

 

 

		8.	TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS.

 

The Administrator shall
have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator
may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible
into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The principal terms of each Stock-Based
Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to be appropriate and in the best interest of the Company.

 

The Company intends
that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the
requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated
in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings)
shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent
as described in this Paragraph 8.

 

 

		9.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part
or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the
Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance
with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided
electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is
being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price
for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check,
or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if
required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate
cash exercise price for the number of Shares as to which the Option is being exercised, or (c) at the discretion of the Administrator,
by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market
Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being
exercised, or (d) at the discretion of the Administrator (after consideration of applicable securities, tax and accounting implications),
by delivery of the grantee’s personal recourse note bearing interest payable not less than annually at no less than 100%
of the applicable Federal rate, as defined in Section 1274(d) of the Code, or (e) at the discretion of the Administrator,
in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator,
or (f) at the discretion of the Administrator, by any combination of (a), (b), (c), (d) and (e) above or (g) at the discretion
of the Administrator, by payment of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing,
the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code.

 

    	8

     

    

The Company shall then
reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

 

		10.	PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

Any Stock Grant or
Stock-Based Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being
granted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through
delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having
a Fair Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the
discretion of the Administrator (after consideration of applicable securities, tax and accounting implications), by delivery of
the grantee’s personal recourse note bearing interest payable not less than annually at no less than 100% of the applicable
Federal rate, as defined in Section 1274(d) of the Code, or (d) at the discretion of the Administrator, by any combination of (a),
(b) and (c) above; or (e) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator
may determine.

 

The Company shall when
required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award
was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set
forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood
that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance.

 

    	9

     

    

		11.	RIGHTS AS A SHAREHOLDER.

 

No Participant to whom
a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except
after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase
price, if any, for the Shares being purchased and registration of the Shares in the Company’s share register in the name
of the Participant.

 

 

		12.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

 

By its terms, a Stock
Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that
no Stock Right may be transferred by a Participant for value. For California Participants, Stock Rights shall not be transferable
by the Participant other than by will or by the laws of descent and distribution, to a revocable trust, or as permitted by Rule
701 of the Securities Act. Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no
longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator
and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph. Except as provided
above during the Participant’s lifetime a Stock Right shall only be exercisable by or issued to such Participant (or his
or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise)
and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation
or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the levy
of any attachment or similar process upon a Stock Right, shall be null and void.

 

 

		13.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

(a)           A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than
termination for Cause, Disability, or death for which events there are special rules in Paragraphs 14, 15, and 16, respectively),
may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of
service, but only within such term as the Administrator has designated in a Participant’s Option Agreement.

 

    	10

     

    

(b)           Except as provided in Subparagraph (c) below, or Paragraph 15 or 16, in no event may an Option intended to be an ISO, be
exercised later than three months after the Participant’s termination of employment. For Options granted to California Participants,
an Option must be exercisable for at least thirty (30) days from the date of a Participant’s termination of employment.

 

(c)           The
provisions of this Paragraph, and not the provisions of Paragraph 15 or 16, shall apply to a Participant who subsequently becomes
Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s
Disability or death within three months after the termination of employment, director status or consultancy, the Participant or
the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination
of service, but in no event after the date of expiration of the term of the Option.

 

(d)           Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination
of director status or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either
prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then
such Participant shall forthwith cease to have any right to exercise any Option.

 

(e)           A
Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary
disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose,
shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly
provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than ninety days, unless
pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option
on the 181st day following such leave of absence.

 

(f)            Except
as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected
by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues
to be an Employee, director or Consultant of the Company or any Affiliate.

 

 

		14.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an
Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her
outstanding Options have been exercised:

 

(a)           All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will
immediately be forfeited.

 

    	11

     

    

(b)           Cause is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary
that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited.

 

 

		15.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

(a)           A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may
exercise any Option granted to such Participant:

 

		(i)	To the extent that the Option has become exercisable but has not been exercised on the date of
the Participant’s termination of service due to Disability; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would
have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of
days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability.

 

(b)           A
Disabled Participant may exercise the Option only within the period ending one year after the date of the Participant’s
termination of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as
to some or all of the Shares on a later date if the Participant had not been terminated due to Disability and had continued to
be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option. For Options granted
to California Participants, a Participant may exercise such rights for at least six (6) months from the date of termination of
service due to Disability.

 

(c)            The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless
a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such
procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved
by the Administrator, the cost of which examination shall be paid for by the Company.

 

 

		16.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

    	12

     

    

(a)           In
the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate,
such Option may be exercised by the Participant’s Survivors:

 

		(i)	To the extent that the Option has become exercisable but has not been exercised on the date of
death; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant
not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s
date of death.

 

(b)           If
the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within
one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option
as to some or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant
or, if earlier, within the originally prescribed term of the Option. For Options granted to California Participants, the Participant’s
Survivors must be allowed to take all necessary steps to exercise the Option for at least six (6) months from the date of death
of such Participant.

 

 

		17.	EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS AND STOCK-BASED AWARDS.

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

For purposes of this
Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant has been issued under the Plan who is absent from work
with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph
1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue
of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company
or with an Affiliate, except as the Administrator may otherwise expressly provide.

 

In addition, for purposes
of this Paragraph 17 and Paragraph 18 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

 

		18.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant), other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 19,
20, and 21, respectively, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company
shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant as to which the Company’s forfeiture
or repurchase rights have not lapsed.

 

    	13

     

    

 

		19.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply if the Participant’s service (whether
as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

(a)           All
Shares subject to any Stock Grant whether or not then subject to forfeiture or repurchase shall be immediately subject to repurchase
by the Company at the lesser of Fair Market Value or the purchase price, thereof.

 

(b)           Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct
which would constitute Cause, then all Shares subject to any Stock Grant that remained subject to forfeiture provisions or as
to which the Company had a repurchase right on the date of termination shall be immediately forfeited to the Company.

 

 

		20.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply if a Participant ceases to be an Employee, director
or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s
rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event
such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a
pro rata portion of the Shares subject to such Stock Grant through the date of Disability as would have lapsed had the Participant
not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator
shall make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for
such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall
be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator,
the cost of which examination shall be paid for by the Company.

 

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		21.	EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Stock Grant Agreement, the following rules apply in the event of the death of a Participant while
the Participant is an Employee, director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions
or the Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however,
that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse
to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of death as would have lapsed had
the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of
death.

 

 

		22.	PURCHASE FOR INVESTMENT.

 

Unless the offering
and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation
to issue Shares under the Plan unless and until the following conditions have been fulfilled:

 

(a)           The
person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring
such Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution
of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or
a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to
such exercise or such grant:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act
of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration
under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”

 

(b)           At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in
compliance with the Securities Act without registration thereunder.

 

 

		23.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution
or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all
Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate
and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise
terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution
or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance
as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding
Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the
applicable Agreement.

 

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		24.	ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement:

 

(a)           Stock
Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller
number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock,
or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder
shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise
or purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a) shall also
be proportionately adjusted upon the occurrence of such events.

 

(b)           Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, or sale
of all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation
(a “Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations of
the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate provision
for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either
the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction
or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options
must be exercised (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options
being made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of
such notice, at the end of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options
in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder
of the number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable
or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this
Subparagraph) less the aggregate exercise price thereof. For purposes of determining the payments to be made pursuant to
Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in whole or in part, is other than
cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of
Directors.

 

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With respect to outstanding
Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants
on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either
the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or
securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator
may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange
for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the
number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture
or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived
upon such Corporate Transaction).

 

In taking any of the
actions permitted under this Paragraph 24(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all
Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

(c)           Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction
pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common
Stock, a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be
entitled to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would
have been received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

(d)           Adjustments
to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding
Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or
the Successor Board shall determine the specific adjustments to be made under this Paragraph 24, including, but not limited to
the effect of any Corporate Transaction and, subject to Paragraph 4, its determination shall be conclusive.

 

(e)           Modification
of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect
to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification”
of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders
of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments
made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such
adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates
that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with
respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion
of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

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		25.	ISSUANCES OF SECURITIES.

 

Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject
to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including
without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

 

		26.	FRACTIONAL SHARES.

 

No fractional shares
shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

 

		27.	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The Administrator,
at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s
ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time
of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions
on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have
such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator
takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that
has not been exercised at the time of such conversion.

 

 

		28.	WITHHOLDING.

 

In the event that any
federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings
or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary,
wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required
by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance
in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount
of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of
the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair
Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance
the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise
of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.

 

 

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		29.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

 

Each Employee who receives
an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any Shares
acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes
any disposition (including any sale or gift) of such Shares before the later of (a) two years after the date the Employee was granted
the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section
424(c) of the Code. If the Employee has died before such Shares are sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter.

 

 

		30.	TERMINATION OF THE PLAN.

 

The Plan will terminate
on January 31, 2023, the date which is ten years from the earlier of the date of its adoption by the Board of Directors
and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier date by vote of the shareholders
or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements
executed prior to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights theretofore
granted.

 

 

		31.	AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended
by the shareholders of the Company (which amendment shall be approved by the holders of a majority of the then-outstanding shares
of stock of the Company or as otherwise required by the Company’s charter documents). The Plan may also be amended by the
Administrator, including, without limitation, to the extent necessary to qualify any or all outstanding Stock Rights granted under
the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded incentive stock
options under Section 422 of the Code (including deferral of taxation upon exercise), and to the extent necessary to qualify the
Shares issuable under the Plan for listing on any national securities exchange or quotation in any national automated quotation
system of securities dealers. Any amendment approved by the Administrator which the Administrator determines is of a scope that
requires shareholder approval shall be subject to obtaining such shareholder approval. Any modification or amendment of the Plan
shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him
or her. With the consent of the Participant affected, the Administrator may amend outstanding Agreements in a manner which may
be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding
Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.

 

 

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		32.	EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan
or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director
status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status
or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.

 

 

		33.	GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.

 

 

 

 

 

 

 

    	20

     

    

 

Option No. _______

 

LEADING
BIOSCIENCES, INC.

 

Stock Option Grant Notice

Stock Option Grant under the Company’s

2013 Employee, Director and Consultant Equity
Incentive Plan

 

	1.	Name and Address of Participant:	 	 
	 	 	 	 
	 	 	 	 

 

	2.	Date of Option Grant:		 

 

	3.	Type of Grant:		 

 

	4.	Maximum Number of Shares for which this

Option is exercisable:		 

 

	5.	Exercise (purchase) price per share:		 

 

	6.	Option Expiration Date:		 

 

	7.	Vesting Start Date:		 

 

		8.	Vesting Schedule: This Option shall become exercisable (and the Shares issued upon exercise shall
be vested) as follows provided the Participant is an Employee, director or Consultant of the Company or of an Affiliate on the
applicable vesting date:

 

Date                                                         Shares Vested

 

 

 

 

 

    	21

     

    

 

The foregoing rights
are cumulative and are subject to the other terms and conditions of this Agreement and the Plan.

 

The Company and the
Participant acknowledge receipt of this Stock Option Grant Notice and agree to the terms of the Stock Option Agreement attached
hereto and incorporated by reference herein, the Company’s 2013 Employee, Director and Consultant Equity Incentive Plan and
the terms of this Option Grant as set forth above. This Agreement constitutes the entire agreement of the Parties with respect
to its subject matter and supersedes all prior agreements

and understandings of the Parties, oral or written, with respect to its subject matter.

 

Leading BioSciences,
Inc.

 

 

 

 

Thomas M Hallam, PhD

Chief Executive Officer

 

 

Participant

 

 

 

 

 

 

 

 

    	22

     

    

 

 

LEADING
BIOSCIENCES, INC.

 

STOCK
OPTION AGREEMENT - INCORPORATED TERMS AND CONDITIONS

 

AGREEMENT made as of
the date of grant set forth in the Stock Option Grant Notice by and between Leading Biosciences, Inc. (the “Company”),
a Delaware corporation, and the individual whose name appears on the Stock Option Grant Notice (the “Participant”).

 

WHEREAS, the Company
desires to grant to the Participant an Option to purchase shares of its common stock, $0.001 par value per share (the “Shares”),
under and for the purposes set forth in the Company’s 2013 Employee, Director and Consultant Equity Incentive Plan

(the “Plan”);

 

WHEREAS, the Company
and the Participant understand and agree that any terms used and not defined herein have the same meanings as in the Plan; and

 

WHEREAS, the Company
and the Participant each intend that the Option granted herein shall be of the type set forth in the Stock Option Grant Notice.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree
as follows:

 

1.             GRANT
OF OPTION.

 

The Company hereby grants
to the Participant the right and option to purchase all or any part of an aggregate of the number of Shares set forth in the Stock
Option Grant Notice,

on the terms and conditions and subject to all the limitations set forth herein, under United States securities and tax laws, and
in the Plan, which is incorporated herein by reference. The

Participant acknowledges receipt of a copy of the Plan.

 

2.             EXERCISE
PRICE.

 

The exercise price of
the Shares covered by the Option shall be the amount per Share set forth in the Stock Option Grant Notice, subject to adjustment,
as provided in the Plan,

in the event of a stock split, reverse stock split or other events affecting the holders of Shares

after the date hereof (the “Exercise Price”). Payment shall be made in accordance with Paragraph 9 of the Plan.

 

3.             EXERCISABILITY
OF OPTION.

 

Subject to the terms
and conditions set forth in this Agreement and the Plan, the Option granted hereby shall become vested and exercisable as set forth
in the Stock Option Grant Notice and is subject to the other terms and conditions of this Agreement and the Plan.

 

Notwithstanding
the foregoing, in the event of a Change of Control (as defined below), 100% of the Shares which would have vested in each
vesting installment remaining under this Option will be vested and exercisable for purposes of Paragraph 24(b) of the Plan
unless this Option has otherwise expired or been terminated pursuant to its terms or the terms of the Plan.

 

     
	

     

    

Change of Control
means the occurrence of any of the following events:

 

		(i)	Ownership. Any “Person” (as such term is used in Sections 13(d) and

14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Company, or any one of the Company’s subsidiaries, representing
50% or more of the total voting power represented by the Company’s then outstanding voting securities

(excluding for this purpose any such voting securities held by the

Company or its Affiliates or any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions
which the

Board of Directors does not approve; or

 

		(ii)	Merger/Sale of Assets. (A) A merger or consolidation of the Company, or any one of the Company’s
subsidiaries, whether or not approved by the Board of Directors, other than a merger or consolidation which would

result in the voting securities of the Company outstanding immediately

prior thereto continuing to represent (either by remaining outstanding or

by being converted into voting securities of the surviving entity or the

parent of such corporation) more than 50% of the total voting power represented by the voting securities of the Company or such
surviving

entity or parent of such corporation, as the case may be, outstanding immediately after such merger or consolidation; or (B) the
sale or disposition by the Company of one or more of the Company’s

subsidiaries; or (C) the sale of disposition by the Company of all or substantially all of the Company’s assets in a transaction
requiring stockholder approval; or

 

		(iii)	Change in Board Composition. A change in the composition of the Board of Directors, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors
who either (A) are directors of the Company as of 1/31/2013 or (B) are elected, or nominated for election, to the Board of Directors
with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall
not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to
the election of directors to the Company).

 

		(iv)	“Change of Control” shall be interpreted, if applicable, in a manner, and limited to
the extent necessary, so that it will not cause adverse tax consequences under Section 409A of the Code.

 

 

    2
	

     

    

4.             TERM
OF OPTION.

 

This Option shall
terminate on the Option Expiration Date as specified in the Stock Option Grant Notice and, if this Option is designated
in the Stock Option Grant Notice as an ISO and the Participant owns as of the date hereof more than 10% of the total combined
voting power of all classes of capital stock of the Company or an Affiliate, such date may not be more than five years from
the date of this Agreement, but shall be subject to earlier termination as provided herein or in the Plan.

 

If the Participant
ceases to be an Employee, director or Consultant of the Company or of an Affiliate for any reason other than the death or
Disability of the Participant, or termination of the Participant for Cause (the “Termination Date”), the Option
to the extent then vested and exercisable pursuant to Section 3 hereof as of the Termination Date, and not previously
terminated in accordance with this Agreement, may be exercised within 3 months after the Termination Date, or on or prior
to the Option Expiration Date as specified in the Stock Option Grant Notice, whichever is earlier, but may not be exercised
thereafter except as set forth below. In such event, the unvested portion of the Option shall not be exercisable and shall
expire and be cancelled on the Termination Date.

 

If this Option is
designated in the Stock Option Grant Notice as an ISO and the Participant ceases to be an Employee of the Company or of an
Affiliate but continues after termination of employment to provide service to the Company or an Affiliate as a director or
Consultant, this Option shall continue to vest in accordance with Section 3 above as if this Option had not terminated until
the Participant is no longer providing services to the Company. In such case, this Option shall automatically convert and
be deemed a Non-Qualified Option as of the date that is 3 months from termination of the Participant’s employment
and this Option shall continue on the same terms and conditions set forth herein until such Participant is no longer
providing service to the Company or an Affiliate.

 

Notwithstanding the foregoing,
in the event of the Participant’s Disability or death within 3 months after the Termination Date, the Participant or the
Participant’s Survivors may exercise the Option within 2 years after the Termination Date, but in no event after the Option
Expiration Date as specified in the Stock Option Grant Notice.

 

In the event the
Participant’s service is terminated by the Company or an Affiliate for Cause, the Participant’s right to exercise
any unexercised portion of this Option even if vested shall cease immediately as of the time the Participant is notified his
or her service is terminated for Cause, and this Option shall thereupon terminate. Notwithstanding anything herein to the
contrary, if subsequent to the Participant’s termination, but prior to the exercise of the Option, the Administrator
determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which
would constitute Cause, then the Participant shall immediately cease to have any right to exercise the Option and this
Option shall thereupon terminate.

 

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In the event of the
Disability of the Participant, as determined in accordance with the Plan, the Option shall be exercisable within 2 years
after the Participant’s termination of service due to Disability or, if earlier, on or prior to the Option Expiration
Date as specified in the Stock Option Grant Notice. In such event, the Option shall be exercisable:

 

		(a)	to the extent that the Option has become exercisable but has not been exercised as of the date
of the Participant’s termination of service due to Disability; and

 

		(b)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would
have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of
days accrued in the

current vesting period prior to the date of the Participant’s termination of service due to Disability.

 

In the event of the death
of the Participant while an Employee, director or Consultant of the Company or of an Affiliate, the Option shall be exercisable
by the Participant’s Survivors within 2 years after the date of death of the Participant or, if earlier, on or prior to the
Option Expiration Date as specified in the Stock Option Grant Notice. In such event, the Option shall be exercisable:

 

		(x)	to the extent that the Option has become exercisable but has not been exercised as of the date
of death; and

 

		(y)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant
not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s
date of death.

 

5.             METHOD
OF EXERCISING OPTION.

 

Subject to the
terms and conditions of this Agreement, the Option may be exercised by written notice to the Company or its designee, in
substantially the form of Exhibit A attached hereto (or in such other form acceptable to the Company, which may
include electronic notice). Such notice shall state the number of Shares with respect to which the Option is being exercised
and shall be signed by the person exercising the Option (which signature may be provided electronically in a form acceptable
to the Company). Payment of the Exercise Price for such Shares shall be made in accordance with Paragraph 9 of the Plan. The
Company shall deliver such Shares as soon as practicable after the notice shall be received, provided, however, that the
Company may delay issuance of such Shares until completion of any action or obtaining of any consent, which the Company deems
necessary under any applicable law (including, without limitation, state securities or “blue sky” laws). The
Shares as to which the Option shall have been so exercised shall be registered in the Company’s share register in the
name of the person so exercising the Option (or, if the Option shall be exercised by the Participant and if the Participant
shall so request in the notice exercising the Option, shall be registered in the Company’s
share register in the name of the Participant and another person jointly, with right of survivorship) and shall be delivered
as provided above to or upon the written order of the person exercising the Option. In the event the Option shall be
exercised, pursuant to Section 4 hereof, by any person other than the Participant, such notice shall be accompanied by
appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and nonassessable.

 

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6.             PARTIAL
EXERCISE.

 

Exercise of this Option
to the extent above stated may be made in part at any time and from time to time within the above limits, except that no fractional
share shall be issued pursuant to this Option.

 

7.             NON-ASSIGNABILITY.

 

The Option shall
not be transferable by the Participant otherwise than by will or by the laws of descent and distribution. For California
Participants, the Option shall not be transferable other than by will, by the laws of descent and distribution, to a
revocable trust or as permitted by Rule 701 of the Securities Act of 1933. If this Option is a Non-Qualified Option then
it may also be transferred pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act or the rules thereunder and the Participant, with the approval of the Administrator, may
transfer the Option for no consideration to or for the benefit of the Participant’s Immediate Family (including,
without limitation, to a trust for the benefit of the Participant’s Immediate Family or to a partnership or limited
liability company for one or more members of the Participant’s Immediate Family), subject to such limits as the
Administrator may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option
prior to such transfer and each such transferee shall so acknowledge in writing as a condition precedent to the effectiveness
of such transfer. The term “Immediate Family” shall mean the Participant’s spouse, former spouse, parents,
children, stepchildren, adoptive relationships, sisters, brothers, nieces, nephews and grandchildren (and, for this
purpose, shall also include the Participant). Except as provided above in this paragraph, the Option shall be exercisable,
during the Participant’s lifetime, only by the Participant (or, in the event of legal incapacity or incompetency,
by the Participant’s guardian or representative) and shall not be assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any
attempted transfer, assignment, pledge, hypothecation or other disposition of the Option or of any rights granted hereunder
contrary to the provisions of this Section 7, or the levy of any attachment or similar process upon the Option shall be null
and void.

 

8.             NO
RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

The Participant
shall have no rights as a stockholder with respect to Shares subject to this Agreement until registration of the Shares in
the Company’s share register in the name of the Participant. Except as is expressly provided in the Plan with respect
to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights
for which the record date is prior to the date of such registration.

 

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9.             ADJUSTMENTS.

 

The Plan contains
provisions covering the treatment of Options in a number of contingencies such as stock splits and mergers. Provisions in the
Plan for adjustment with respect to stock subject to Options and the related provisions with respect to successors to the
business of the Company are hereby made applicable hereunder and are incorporated herein by reference.

 

10.           TAXES.

 

The Participant
acknowledges and agrees that (i) any income or other taxes due from the Participant with respect to this Option or the Shares
issuable upon exercise of this Option shall be the Participant’s responsibility; (ii) the Participant was free to use
professional advisors of his or her choice in connection with this Agreement, has received advice from his or her
professional advisors in connection with this Agreement, understands its meaning and import, and is entering into this
Agreement freely and without coercion or duress; (iii) the Participant has not received and is not relying upon any advice,
representations or assurances made by or on behalf of the Company or any Affiliate or any Employee of or counsel to the
Company or any Affiliate regarding any tax or other effects or implications of the Option, the Shares or other matters
contemplated by this Agreement and (iv) neither the Administrator, the Company, its Affiliates, nor any of its officers or
directors, shall be held liable for any applicable costs, taxes, or penalties associated with the Option if, in fact, the
Internal Revenue Service were to determine that the Option constitutes deferred compensation under Section 409A of the
Code.

 

If this Option is
designated in the Stock Option Grant Notice as a Non-Qualified Option or if the Option is an ISO and is converted into a
Non-Qualified Option and such Non-Qualified Option is exercised, the Participant agrees that the Company may withhold from
the Participant’s remuneration, if any, the minimum statutory amount of federal, state and local withholding taxes
attributable to such amount that is considered compensation includable in such person’s gross income. At the
Company’s discretion, the amount required to be withheld may be withheld in cash from such remuneration, or in kind
from the Shares otherwise deliverable to the Participant on exercise of the Option. The Participant further agrees that, if
the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Company’s
income tax withholding obligation, the Participant will reimburse the Company on demand, in cash, for the amount
under-withheld.

 

11.           PURCHASE
FOR INVESTMENT.

 

Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option shall have been effectively registered under the Securities
Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue
the Shares covered by such exercise unless the Company has determined that such exercise and issuance would be exempt from the
registration requirements of the 1933 Act and until the following conditions have been fulfilled:

 

 

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		(a)	The person(s) who exercise the Option shall warrant to the Company, at

the time of such exercise, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and
not with a view to, or

for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound
by the provisions of the following legend which shall be endorsed upon any certificate(s) evidencing the Shares issued pursuant
to such exercise:

 

“The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any
person, including a pledgee, unless (1) either (a) a Registration Statement with respect to

such shares shall be effective under the Securities Act of 1933, as

amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under
such Act is

then available, and (2) there shall have been compliance with all

applicable state securities laws;” and

 

(b)       If
the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular
exercise in compliance with the 1933 Act without registration thereunder. Without limiting the generality of the foregoing, the
Company may delay issuance of the Shares until completion of any action or obtaining of any consent, which the Company deems necessary
under any applicable law (including without limitation state securities or “blue sky” laws).

 

12.           RESTRICTIONS
ON TRANSFER OF SHARES.

 

12.1         The
Shares acquired by the Participant pursuant to the exercise of the Option granted hereby shall not be transferred by the Participant
except as permitted herein.

 

12.2         In
the event of the Participant’s termination of service for any reason, the Company shall have the option, but not the
obligation, to repurchase all or any part of the Shares issued pursuant to this Agreement (including, without limitation,
Shares purchased after termination of service, Disability or death in accordance with Section 4 hereof). In the event the
Company does not, upon the termination of service of the Participant (as described above), exercise its option pursuant to
this Section 12.2, the restrictions set forth in the balance of this Agreement shall not thereby lapse, and the Participant
for himself or herself, his or her heirs, legatees, executors, administrators and other successors in interest, agrees that
the Shares shall remain subject to such restrictions. The following provisions shall apply to a repurchase under
 this
Section 12.2:

 

		(i)	The per share repurchase price of the Shares to be sold to the Company upon exercise of its
                                                               option under this Section 12.2 shall be equal to the Fair Market Value of each such Share determined in accordance with
                                                               the Plan as of the date of repurchase provided, however, in the event of a termination by the Company for Cause, the per
                                                               share repurchase price of the Shares to be sold to the Company upon exercise of its option under this Section 12.2 shall be
                                                               equal to the lesser of the Exercise Price and the Fair Market Value on the date of the repurchase.

 

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		(ii)	The Company’s option to repurchase the Participant’s Shares in the event of termination
of service shall be valid for a period of 12 months commencing with the date of such termination of service.

 

		(iii)	In the event the Company shall be entitled to and shall elect to exercise its option to
                                                                 repurchase the Participant’s Shares under this Section 12.2, the Company shall notify the Participant, or in case of
                                                                 death, his or her Survivor, in writing of its intent to repurchase the Shares. Such written notice may be mailed by the
                                                                 Company up to and including the last day of the time period provided for in Section 12.2(ii) for exercise of the
                                                                 Company’s option to repurchase.

 

		(iv)	The written notice to the Participant shall specify the address at, and the time and date on,
                                                                which payment of the repurchase price is to be made (the “Closing”). The date specified shall not be less than
                                                                ten days nor more than 60 days from the date of the mailing of the notice, and the Participant or his or her successor in
                                                                interest with respect to the Shares shall have no further rights as the owner thereof from and after the date specified in
                                                                the notice. At the Closing, the repurchase price shall be delivered to the Participant or his or her successor in interest
                                                                and the Shares being purchased, duly endorsed for transfer, shall, to the extent that they are not then in the possession of
                                                                the Company, be delivered to the Company by the Participant or his or her successor in interest.

 

12.3         It
shall be a condition precedent to the validity of any sale or other transfer of any Shares by the Participant that the following
restrictions be complied with (except as otherwise provided in this Section 12):

 

		(i)	No Shares owned by the Participant may be sold, pledged or otherwise transferred (including by
gift or devise) to any person or entity, voluntarily, or by operation

of law, except in accordance with the terms and conditions hereinafter set forth.

 

		(ii)	Before selling or otherwise transferring all or part of the Shares, the Participant shall
                                                                give written notice of such intention to the Company, which notice shall include the name of the proposed transferee, the
                                                                proposed purchase price per share, the terms of payment of such purchase price and all other matters relating to such sale or
                                                                transfer and shall be accompanied by a copy of the binding written agreement of the proposed transferee to purchase the
                                                                Shares of the Participant. Such notice shall constitute a binding offer by the Participant to sell to the Company such number
                                                                of the Shares then held by the Participant as are proposed to be sold in the notice at the monetary price per share
                                                                designated in such notice, payable on the terms offered to the Participant by the proposed transferee (provided, however,
                                                                that the Company shall not be required to meet any non-monetary terms of the proposed transfer, including, without
                                                                limitation, delivery of other securities in exchange for the Shares proposed to be sold). The Company shall give written
                                                                notice to the Participant as to whether such offer has been accepted in whole by the Company within 60 days after its receipt
                                                                of written notice from the Participant. The Company may only accept such offer in whole and may not accept such offer in
                                                                part. Such acceptance notice shall fix a time, location and date for the Closing on such purchase (“Closing
                                                                Date”) which shall not be less than ten nor more than sixty days after the giving of the acceptance notice, provided,
                                                                however, if any of the Shares to be sold pursuant to this Section 12.3 have been held by the Participant for less than six
                                                                months, then the Closing Date may be extended by the Company until no more than ten days after such Shares have been held by
                                                                the Participant for six months if required under applicable accounting rules in effect at the time.[1]
                                                                The place for such Closing shall be at the Company’s principal office. At such Closing, the Participant shall accept
                                                                payment as set forth herein and shall deliver to the Company in exchange therefor certificates for the number of Shares
                                                                stated in the notice accompanied by duly executed instruments of transfer.

 

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		(iii)	If the Company shall fail to accept any such offer, the Participant shall be free to sell
                                                                 all, but not less than all, of the Shares set forth in his or her notice to the designated transferee at the price and terms
                                                                 designated in the Participant’s notice, provided that (i) such sale is consummated within six months after the giving
                                                                 of notice by the Participant to the Company as aforesaid, and (ii) the transferee first agrees in writing to be bound by the
                                                                 provisions of this Section 12 so that such transferee (and all subsequent transferees) shall thereafter only be permitted to
                                                                 sell or transfer the Shares in accordance with the terms hereof. After the expiration of such six months, the provisions
                                                                 of this Section 12.3 shall again apply with respect to any proposed voluntary transfer of the Participant’s
                                                                 Shares.

 

		(iv)	The restrictions on transfer contained in this Section 12.3 shall not apply to (a) transfers
                                                                by the Participant to his or her spouse or children or to a trust for the benefit of his or her spouse or children, (b)
                                                                transfers by the Participant to his or her guardian or conservator, and (c) transfers by the Participant, in the event of his
                                                                or her death, to his or her executor(s) or administrator(s) or to trustee(s) under his or her will (collectively,
                                                                “Permitted Transferees”); provided however, that in any such event the Shares so transferred in the hands of each
                                                                such Permitted Transferee shall remain subject to this Agreement, and each such Permitted Transferee shall so acknowledge
                                                                in writing as a condition precedent to the effectiveness of such transfer.

 

		(v)	The provisions of this Section 12.3 may be waived by the Company. Any such waiver may be unconditional
or based upon such conditions as the Company may impose.

 

 

 

 

1 If the Company repurchases a Participant’s
shares within six months of their issuance, the Company will incur a variable accounting charge. Accordingly, the Company should
have the option to extend the Closing to avoid the variable accounting charge if it so desires.

    9
	

     

    

12.4         In
the event that the Participant or his or her successor in interest fails to deliver the Shares to be repurchased by the
Company under this Agreement, the Company may elect (a) to establish a segregated account in the amount of the repurchase
price, such account to be turned over to the Participant or his or her successor in interest upon delivery of such Shares,
and (b) immediately to take such action as is appropriate to transfer record title of such Shares from the Participant to the
Company and to treat the Participant and such Shares in all respects as if delivery of such Shares had been made as required
by this Agreement. The Participant hereby irrevocably grants the Company a power of attorney which shall be coupled with an
interest for the purpose of effectuating the preceding sentence.

 

12.5         If
the Company shall pay a stock dividend or declare a stock split on or with respect to any of its Common Stock, or otherwise
distribute securities of the Company to the holders of its Common Stock, the number of shares of stock or other securities of
the Company issued with respect to the shares then subject to the restrictions contained in this Agreement shall be added to
the Shares subject to the Company’s rights to repurchase pursuant to this Agreement. If the Company shall distribute to
its stockholders shares of stock of another corporation, the shares of stock of such other corporation, distributed with
respect to the Shares then subject to the restrictions contained in this Agreement, shall be added to the Shares subject
to the Company’s rights to repurchase pursuant to this Agreement.

 

12.6         If
the outstanding shares of Common Stock of the Company shall be subdivided into a greater number of shares or combined into a smaller
number of shares, or in the event of a reclassification of the outstanding shares of Common Stock of the Company, or if the Company
shall be a party to a merger, consolidation or capital reorganization, there shall be substituted for the Shares then subject to
the restrictions contained in this Agreement such amount and kind of securities as are issued in such subdivision, combination,
reclassification, merger, consolidation or capital reorganization in respect of the Shares subject immediately prior thereto to
the Company’s rights to repurchase pursuant to this Agreement.

 

12.7         The
Company shall not be required to transfer any Shares on its books which shall have been sold, assigned or otherwise transferred
in violation of this Agreement, or to treat as owner of such Shares, or to accord the right to vote as such owner or to pay dividends
to, any person or organization to which any such Shares shall have been so sold, assigned or otherwise transferred, in violation
of this Agreement.

 

12.8         The
provisions of Sections 12.1, 12.2 and 12.3 shall terminate upon the effective date of the registration of the Shares pursuant to
the Securities Exchange Act of 1934.

 

12.9         The
Participant agrees that in the event the Company proposes to offer for sale to the public any of its equity securities and
such Participant is requested by the Company and any underwriter engaged by the Company in connection with such offering to
sign an agreement restricting the sale or other transfer of Shares, then it will promptly sign such agreement and will not
transfer, whether in privately negotiated transactions or to the public in open market transactions or otherwise, any Shares
or other securities of the Company held by him or her during such period as is determined by the Company and the
underwriters, not to exceed 180 days following the closing of the offering, plus such additional period of time as may be
required to comply with NASD Rule 2711 or similar rules thereto (such period, the “Lock-Up
Period”). Such agreement shall be in writing and in form and substance reasonably satisfactory to the Company and such
underwriter and pursuant to customary and prevailing terms and conditions. Notwithstanding whether the Participant has signed
such an agreement, the Company may impose stop-transfer instructions with respect to the Shares or other securities of
the Company subject to the foregoing restrictions until the end of the Lock-Up Period.

 

    10
	

     

    

12.10       The
Participant acknowledges and agrees that neither the Company, its shareholders nor its directors and officers, has any duty
or obligation to disclose to the Participant any material information regarding the business of the Company or affecting
the value of the Shares before, at the time of, or following a termination of the service of the Participant by the
Company, including, without limitation, any information concerning plans for the Company to make a public offering of its
securities or to be acquired by or merged with or into another firm or entity.

 

12.11       All
certificates representing the Shares to be issued to the Participant pursuant to this Agreement shall have endorsed thereon a legend
substantially as follows: “The shares represented by this certificate are subject to restrictions set forth in a Stock Option
Agreement dated __________, 201__ with this Company, a copy of which Agreement is available for inspection at the offices of the
Company or will be made available upon request.”

 

13.           NO
OBLIGATION TO MAINTAIN RELATIONSHIP.

 

The Participant
acknowledges that: (i) the Company is not by the Plan or this Option obligated to continue the Participant as an Employee,
director or Consultant of the Company or an Affiliate; (ii) the Plan is discretionary in nature and may be suspended or
terminated by the Company at any time; (iii) the grant of the Option is a one-time benefit which does not create any
contractual or other right to receive future grants of options, or benefits in lieu of options; (iv) all determinations
with respect to any such future grants, including, but not limited to, the times when options shall be granted, the number of
shares subject to each option, the option price, and the time or times when each option shall be exercisable, will be at the
sole discretion of the Company; (v) the Participant’s participation in the Plan is voluntary; (vi) the value of the
Option is an extraordinary item of compensation which is outside the scope of the Participant’s employment or
consulting contract, if any; and (vii) the Option is not part of normal or expected compensation for purposes of calculating
any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments.

 

 

 

 

 

 

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14.           IF
OPTION IS INTENDED TO BE AN ISO.

 

If this Option is
designated in the Stock Option Grant Notice as an ISO so that the Participant (or the Participant’s Survivors) may
qualify for the favorable tax treatment provided to holders of Options that meet the standards of Section 422 of the Code
then any provision of this Agreement or the Plan which conflicts with the Code so that this Option would not be deemed an
ISO is null and void and any ambiguities shall be resolved so that the Option qualifies as an ISO. The Participant should
consult with the Participant’s own tax advisors regarding the tax effects of the Option and the requirements
necessary to obtain favorable tax treatment under Section 422 of the Code, including, but not limited to, holding period
requirements.

 

Notwithstanding the
foregoing, to the extent that the Option is designated in the Stock Option Grant Notice as an ISO and is not deemed to be an
ISO pursuant to Section 422(d) of the Code because the aggregate Fair Market Value (determined as of the Date of Option
Grant) of any of the Shares with respect to which this ISO is granted becomes exercisable for the first time during any
calendar year in excess of $100,000, the portion of the Option representing such excess value shall be treated as a
Non-Qualified Option and the Participant shall be deemed to have taxable income measured by the difference between the then
Fair Market Value of the Shares received upon exercise and the price paid for such Shares pursuant to this Agreement.

 

Neither the Company
nor any Affiliate shall have any liability to the Participant, or any other party, if the Option (or any part thereof) that
is intended to be an ISO is not an ISO or for any action taken by the Administrator, including without limitation the
conversion of an ISO to a Non-Qualified Option.

 

15.           NOTICE
TO COMPANY OF DISQUALIFYING DISPOSITION OF AN ISO.

 

If this Option is designated
in the Stock Option Grant Notice as an ISO then the Participant agrees to notify the Company in writing immediately after the Participant
makes a Disqualifying Disposition of any of the Shares acquired pursuant to the exercise of the ISO. A Disqualifying Disposition
is defined in Section 424(c) of the Code and includes any disposition (including any sale) of such Shares before the later of (a)
two years after the date the Participant was granted the ISO or (b) one year after the date the Participant acquired Shares by
exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Participant has died before the Shares are
sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

 

16.           NOTICES.

 

Any notices required
or permitted by the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or
certified mail, return receipt requested, addressed as follows:

 

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If to the Company:

 

Leading Biosciences,
Inc.

 

 

5800 Armada Drive, Suite 210

Carlsbad, CA 92008

Attention: J.D. Finley

 

If to the Participant at the address set
forth on the Stock Option Grant Notice

 

or to such other address or addresses of which
notice in the same manner has previously been given. Any such notice shall be deemed to have been given upon the earlier of receipt,
one business day following delivery to a recognized courier service or three business days following mailing by registered or certified
mail.

 

17.           GOVERNING
LAW.

 

This Agreement
shall be governed by and construed in accordance with the laws of California, without giving effect to the conflict of law
principles thereof. For the purpose of litigating any dispute that arises under this Agreement, the parties hereby consent to
exclusive jurisdiction in California and agree that such litigation shall be conducted in the state courts of San Diego
County, California or the federal courts of the United States for the District of Southern California located in San
Diego County.

 

18.           BENEFIT
OF AGREEMENT.

 

Subject to the provisions
of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors,

administrators, successors and assigns of the parties hereto.

 

19.           ENTIRE
AGREEMENT.

 

This Agreement,
together with the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the
subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter
hereof. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect
or be used to interpret, change or restrict, the express terms and provisions of this Agreement, provided, however, in any
event, this Agreement shall be subject to and governed by the Plan.

 

20.           MODIFICATIONS
AND AMENDMENTS.

 

The terms and provisions
of this Agreement may be modified or amended as provided in the Plan.

 

21.           WAIVERS
AND CONSENTS.

 

Except as provided
in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only
by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or
provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific
instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.

 

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22.           DATA
PRIVACY.

 

By entering into
this Agreement, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate
administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its Affiliates such
information and data as the Company or any such Affiliate shall request in order to facilitate the grant of options and the
administration of the Plan; and (ii) authorizes the Company and each Affiliate to store and transmit such information in
electronic form for the purposes set forth in
 this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

 

 

 

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Exhibit A

 

NOTICE OF EXERCISE OF STOCK OPTION

 

[Form for Unregistered Shares]

 

 

To:       Leading Biosciences, Inc.

 

 

Ladies and Gentlemen:

 

I hereby exercise my
Stock Option to purchase ___________ shares (the “Shares”) of the common stock, $0.001 par value, of Leading Biosciences,
Inc. (the “Company”), at the exercise price of $_____ per share, pursuant to and subject to the terms of that certain
Stock Option Agreement between the undersigned and the Company dated _________, 201__.

 

I am aware that the
Shares have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or any state securities
laws. I understand that the reliance by the Company on exemptions under the 1933 Act is predicated in part upon the truth and accuracy
of the statements by me in this Notice of Exercise.

 

I hereby
represent and warrant that (1) I have been furnished with all information which I deem necessary to evaluate the merits and
risks of the purchase of the Shares; (2) I have had the opportunity to ask questions concerning the Shares and the Company
and all questions posed have been answered to my satisfaction; (3) I have been given the opportunity to obtain any additional
information I deem necessary to verify the accuracy of any information obtained concerning the Shares and the Company; and
(4) I have such knowledge and experience in financial and business matters that I am able to evaluate the merits and risks of
purchasing the Shares and to make an informed investment decision relating thereto.

 

I hereby represent
and warrant that I am purchasing the Shares for my own personal account for investment and not with a view to the sale or distribution
of all or any part of the Shares.

 

I understand that because
the Shares have not been registered under the 1933 Act, I must continue to bear the economic risk of the investment for an indefinite
time and the Shares cannot be sold unless the Shares are subsequently registered under applicable federal and state securities
laws or an exemption from such registration requirements is available.

 

I agree that I
will in no event sell or distribute or otherwise dispose of all or any part of the Shares unless (1) there is an effective
registration statement under the 1933 Act and applicable state securities laws covering any such transaction involving
the Shares or (2) the Company receives an opinion of my legal counsel (concurred in by legal counsel for the Company)
stating that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is
exempt from registration.

 

    Exhibit A-1
	

     

    

I consent to the placing
of a legend on my certificate for the Shares stating that the Shares have not been registered and setting forth the restriction
on transfer contemplated hereby and to the placing of a stop transfer order on the books of the Company and with any transfer agents
against the Shares until the Shares may be legally resold or distributed without restriction.

 

I understand that
at the present time Rule 144 of the Securities and Exchange Commission (the “SEC”) may not be relied on for the
resale or distribution of the Shares by me. I understand that the Company has no obligation to me to register the sale of
the Shares with the SEC and has not represented to me that it will register the sale of the Shares.

 

I understand the
terms and restrictions on the right to dispose of the Shares set forth in the 2013 Employee, Director and Consultant Equity
Incentive Plan and the Stock Option Agreement, both of which I have carefully reviewed. I consent to the placing of a legend
on my certificate for the Shares referring to such restriction and the placing of stop transfer orders until the Shares may
be transferred in accordance with the terms of such restrictions.

 

I have considered the
Federal, state and local income tax implications of the exercise of my Option and the purchase and subsequent sale of the Shares.

 

I am paying the option
exercise price for the Shares as follows:

 

________________________________________

 

Please issue the Shares
(check one):

 

☐
to me; or

 

☐
to me and ________________, as joint tenants with right of survivorship

 

and mail the certificate to me at the following
address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Exhibit A-2
	

     

    

 

My mailing address
for shareholder communications, if different from the address listed above is:

 

 

 

 

 

 

 

 

	 	Very truly yours,
	 	 
	 	 
	 	 
	 	Participant (signature)
	 	 
	 	 
	 	 
	 	Print Name
	 	 
	 	 
	 	 
	 	Date
	 	 
	 	 
	 	Social Security Number

 

    Exhibit A-3
	

     

    

 

Exhibit B

 

NOTICE OF EXERCISE OF STOCK OPTION

 

[Form for Shares Registered in
the United States]

 

 

To:       Leading Biosciences, Inc.

 

IMPORTANT NOTICE: This form of Notice of Exercise
may only be used at such time as the Company has filed a Registration Statement with the Securities and Exchange Commission under
which the issuance of the Shares for which this exercise is being made is registered and such Registration Statement remains effective.

 

 

Ladies and Gentlemen:

 

I hereby exercise my
Stock Option to purchase ___________ shares (the “Shares”) of the common stock, $0.001 par value, of Leading Biosciences,
Inc. (the “Company”), at the exercise price of $_________ per share, pursuant to and subject to the terms of that Stock
Option Grant Notice dated ______________, 201__.

 

I understand the nature
of the investment I am making and the financial risks thereof. I

am aware that it is my responsibility to have consulted with competent tax and legal advisors

about the relevant national, state and local income tax and securities laws affecting the exercise

of the Option and the purchase and subsequent sale of the Shares.

 

I am paying the option
exercise price for the Shares as follows:

 

________________________________________

 

Please issue the Shares
(check one):

 

☐
to me; or

 

☐
to me and ___________________________, as joint tenants with right of

survivorship

 

at the following address:

 

 

 

 

 

 

 

 

    Exhibit B-1
	

     

    

My mailing address
for shareholder communications, if different from the address listed above, is:

 

 

 

 

 

 

 

 

 

 

 

	 	Very truly yours,
	 	 
	 	 
	 	 
	 	Participant (signature)
	 	 
	 	 
	 	 
	 	Print Name
	 	 
	 	 
	 	 
	 	Date
	 	 
	 	 
	 	Social Security Number

 

 

 

Exhibit B-2

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