Document:

EX-10.10

 Exhibit 10.10 

CONSULTING AND SCIENTIFIC ADVISORY BOARD AGREEMENT 

This Consulting and Scientific Advisory Board Agreement (the “Agreement”), made as of this 25th day of July, 2019 (the
“Effective Date”), is made between Third Harmonic Bio, Inc., a Delaware corporation (the “Company”), and H. Martin Seidel (“Consultant”). 

WITNESSETH 
 WHEREAS, the Company
desires to have the benefit of Consultant’s knowledge and experience in the field of c-Kit inhibitors (collectively, the “Field”), and Consultant desires to provide consulting services to
the Company, all as hereinafter provided in this Agreement; 
 WHEREAS, the Company desires to have Consultant serve as a member of the
Company’s Scientific Advisory Board (the “SAB”); and Consultant desires to serve as a member of the SAB; and 
 NOW
THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows: 

1. Consultant and SAB Member. The Company hereby retains Consultant as a consultant and as a member of the SAB, and Consultant agrees to
serve the Company as a consultant and as a member of the SAB upon the terms and conditions hereinafter set forth. 
 2. Term. The term
of Consultant’s consulting arrangement hereunder shall commence on the Effective Date and shall continue in effect until such time as it may be terminated under Section 5 (such period, the “Consultation Period”). 

3. Consultation and SAB Duties. 

3.1. During the Consultation Period, Consultant shall (i) consult with and advise the Company or the Company’s designee(s) in his
field of expertise and knowledge on matters related to the business, products, research, development and technologies of the Company in the Field, (ii) prepare in advance for, attend (either in person or by telephone) and participate as a
member in two (2) SAB meetings per year (when and if scheduled by the Company and while he is a member and is requested to attend), and (iii) provide such additional consulting and advisory services related to the Field as the Company may
reasonably request from time to time. 
 3.2. In connection with the execution of this Agreement, Consultant shall be elected to serve as a
director of the Company. 
 4. Compensation. 

4.1. Fees. During the Consultation Period, the Company shall pay to Consultant a fee in cash of $25,000 per year, paid in quarterly
installments in arrears, in connection with the performance of services hereunder, including his service as a member of the SAB. The pay for any partial quarter shall be prorated. 

 4.2. Equity. As additional consideration for the Consultant’s services, in
addition to the fee provided for in Section 4.1 hereof, the Company shall grant to the Consultant, subject to the approval of the Company’s Board of Directors and the execution of a restricted stock agreement, a restricted stock award for
172,240 shares of the Company’s common stock (the “Shares”), which shall vest as follows: twenty-five percent (25%) of the Shares on the first anniversary of the Effective Date, and the balance of the Shares in equal quarterly
installments of 6.25% of the Shares thereafter until the fourth anniversary of the Effective Date. The Shares shall otherwise be subject to the terms and conditions of the Company’s 2019 Stock Incentive Plan (the “Plan”) and a
restricted stock agreement under the Plan, which shall be in a form approved by the Company’s Board of Directors. The Consultant understands and agrees that this additional consideration has been mutually agreed upon by the Company and the
Consultant, is fair and reasonable, and is sufficient consideration in exchange for the restrictions set forth in Section 9 of this Agreement. 

4.3. Reimbursement of Expenses. The Company shall reimburse Consultant for all reasonable and necessary expenses incurred or paid by
Consultant in connection with or related to the performance of his consulting services and attendance at SAB meetings pursuant to this Agreement (the “Expenses”). The Consultant shall submit to the Company itemized monthly
statements, in a form satisfactory to the Company, of such expenses incurred in the previous month. The Company shall pay to the Consultant amounts shown on each such statement within thirty (30) days after receipt thereof. Notwithstanding the
foregoing, the Consultant shall not incur total expenses in excess of $500.00 per month without the prior written approval of the Company. 

4.4. Benefits. Consultant shall not be entitled to any benefits, coverage or privileges, including, without limitation, health
insurance, social security, unemployment, medical or pension payments, made available to employees of the Company. 
 5. Termination.
This Agreement and the Consultation Period may be terminated in the following manner: (a) by either the Company or Consultant upon not less than thirty (30) days prior written notice to the other party; (b) by the Company, immediately
upon written notice to Consultant if Consultant has materially breached this Agreement, including without limitation any provision of Section 7 or 9, or threatens to breach any provision of Section 7 or 9; (c) by Consultant, upon ten
(10) days’ prior written notice if the Company has materially breached this Agreement and has not cured such breach within such ten (10) day period; or (d) at any time upon the mutual written consent of the parties hereto. In the
event of termination, Consultant shall be entitled to payment for services performed and Expenses paid or incurred, subject to the limitation in Section 4.3, prior to the effective date of termination that have not been previously paid. Such
payment shall constitute full settlement of any and all claims of the Consultant of every description against the Company. The following provisions shall survive expiration or termination of this Agreement: Section 5 and Sections 7 through 20.

 6. Cooperation. Consultant shall use his best efforts in the performance of his obligations under this Agreement. The Company shall
provide such access to its information and property as may be reasonably required in order to permit Consultant to perform Consultant’s obligations hereunder. Consultant shall cooperate with the Company’s personnel, shall not interfere
with the conduct of the Company’s business and shall observe all rules, regulations and security requirements of the Company concerning the safety of persons and property. 

 7. Proprietary Information and Inventions. 

7.1. Proprietary Information. 

7.1.1. The Consultant acknowledges that Consultant’s relationship with the Company is one of high trust and confidence and that in the
course of Consultant’s service to the Company, Consultant will have access to and contact with Proprietary Information (as defined below). Consultant will not disclose any Proprietary Information to any person or entity other than employees of
the Company or use the same for any purposes (other than in the performance of services hereunder) without written approval by an officer of the Company, either during or after the Consultation Period, unless and until such Proprietary Information
has become public knowledge without fault by Consultant. 
 7.1.2. For purposes of this Agreement, “Proprietary Information” shall
mean, by way of illustration and not limitation, all information, whether or not in writing, whether or not patentable and whether or not copyrightable, of a private, secret or confidential nature, owned, possessed or used by the Company, concerning
the Company’s business, business relationships or financial affairs, including, without limitation, any Invention, formula, trade secret, process, research, report, technical or research data, clinical data,
know-how, software, technology, product, processes, methods, techniques, formulas, compounds, projects, developments, marketing or business plan, forecast, unpublished financial statement, budget, license,
price, cost, customer, supplier or personnel information or employee list that is communicated to, learned of, developed or otherwise acquired by Consultant in the course of Consultant’s service as a consultant to the Company. 

7.1.3. Consultant’s obligations under this Section 7.1 shall not apply to any information that (i) is or becomes known to the
general public under circumstances involving no breach by Consultant or others of the terms of this Section 7.1, (ii) is in Consultant’s possession at the time of disclosure other than as a result of Consultant’s breach of any legal
obligation or (iii) is approved for release by written authorization of an officer of the Company. Consultant may disclose Proprietary Information to the extent compelled by applicable law or court order; provided, however, that prior to such
disclosure, Consultant shall provide prior written notice to the Company so that the Company may seek a protective order or other appropriate limitation on disclosure as may be available under applicable law, and Consultant shall cooperate fully
with the Company in such efforts. In any event, Consultant may disclose only such portion of the Proprietary Information that Consultant is legally required to disclose. 

7.1.4. Consultant agrees that all files, documents, letters, memoranda, reports, records, data sketches, drawings, models, laboratory
notebooks, program listings, computer equipment or devices, computer programs or other written, photographic, or other tangible material containing Proprietary Information, whether created by Consultant or others, which shall come into
Consultant’s custody or possession, shall be and are the exclusive property of the Company to be used by Consultant only in the performance of Consultant’s duties for the Company and shall not be copied or removed from the Company premises
except in the pursuit of the business of the Company. All such materials or copies thereof and all tangible property of the Company in the custody or possession of Consultant shall be delivered to the Company, upon the earlier of (i) a request
by the Company or (ii) the termination of this Agreement. After such delivery, Consultant shall not retain any such materials or copies thereof or any such tangible property. 

 7.1.5. Consultant agrees that Consultant’s obligation not to disclose or to use
information and materials of the types set forth in Sections 7.1.2 and 7.1.4, and Consultant’s obligation to return materials and tangible property set forth in Sections 7.1.4, extends to such types of information, materials and tangible
property of customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to Consultant. 

7.1.6. Consultant acknowledges that the Company from time to time may have agreements with other persons or with the United States Government,
or agencies thereof, that impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work. Consultant agrees to be bound by all such
obligations and restrictions that are known to Consultant and to take all action necessary to discharge the obligations of the Company under such agreements. 

7.2. Inventions. 
 7.2.1.
All inventions, ideas, creations, discoveries, computer programs, works of authorship, data, developments, technology, designs, innovations and improvements (whether or not patentable and whether or not copyrightable) which are made, conceived,
reduced to practice, created, written, designed or developed by Consultant, solely or jointly with others or under Consultant’s direction and whether during normal business hours or otherwise, (i) during the Consultation Period, in the
course of performing services hereunder or otherwise related to the business of the Company, or (ii) during or after the Consultation Period if resulting or directly derived from Proprietary Information (collectively under clauses (i) and
(ii), “Inventions”), shall be the sole property of the Company. Consultant hereby assigns to the Company all Inventions and any and all related patents, copyrights, trademarks, trade names, and other industrial and intellectual
property rights and applications therefor, in the United States and elsewhere and appoints any officer of the Company as Consultant’s duly authorized attorney to execute, file, prosecute and protect the same before any government agency, court
or authority. Consultant further acknowledges that each original work of authorship which is made by Consultant (solely or jointly with others) within the scope of the Agreement and which is protectable by copyright is a “work made for
hire,” as that term is defined in the United States Copyright Act. 
 7.2.2. Consultant agrees that if, in the course of performing
services hereunder, Consultant incorporates into any Invention developed under this Agreement any preexisting invention, improvement, development, concept, discovery or other proprietary information owned by Consultant or in which Consultant has an
interest (“Prior Inventions”), (i) Consultant will inform the Company, in writing before incorporating such Prior Inventions into any Invention, and (ii) the Company is hereby granted a nonexclusive, royalty-free, perpetual,
irrevocable, transferable worldwide license with the right to grant and authorize sublicenses, to make, have made, modify, use, import, offer for sale, sell, reproduce, distribute, modify, adapt, prepare derivative works of, display, perform, and
otherwise exploit such Prior Inventions, without restriction, including, without limitation, as part of or in connection with such Invention, and to practice any method related thereto. 

 7.2.3. Consultant will not incorporate any invention, improvement, development, concept,
discovery or other proprietary information owned by any third party into any Invention without the Company’s prior written permission. 

7.2.4. Upon the request of the Company and at the Company’s expense, Consultant shall execute such further assignments, documents and
other instruments as may be necessary or desirable to fully and completely assign all Inventions to the Company and to assist the Company in applying for, obtaining and enforcing patents or copyrights or other rights in the United States and in any
foreign country with respect to any Invention. Consultant also hereby waives all claims to moral rights in any Inventions. 
 7.2.5.
Consultant shall promptly disclose to the Company all Inventions and will maintain adequate and current written records (in the form of notes, sketches, drawings and as may be specified by the Company) to document the conception and/or first actual
reduction to practice of any Invention. Such written records shall be available to and remain the sole property of the Company at all times. 

8. Independent Contractor Status. 

8.1. Consultant shall perform all services under this Agreement as an independent contractor and not as an employee or agent of the Company.
Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company, or to bind the Company in any manner. 

8.2. Consultant shall have the right to control and determine the time, place, methods, manner and means of performing the services, provided
that Consultant shall not use any of the following in the performance of the services: (a) any direct or indirect financial support received from any institution or entity, including without limitation any academic or not-for-profit institution with which Consultant may be affiliated (the “Other Entity”) or (b) use any of the space, facilities, materials or other
resources of the Other Entity. In performing the services, the amount of time devoted by the Consultant on any given day will be entirely within Consultant’s control, and the Company will rely on the Consultant to put in the amount of time
necessary to fulfill the requirements of this Agreement. Consultant will provide all equipment and supplies required to perform the services. Consultant is not required to attend regular meetings at the Company. However, upon reasonable notice,
Consultant shall meet with representatives of the Company at a location to be designated by the parties to this Agreement. 
 8.3. In the
performance of the services, Consultant has the authority to control and direct the performance of the details of the services, the Company being interested only in the results obtained. However, the services contemplated by the Agreement must meet
the Company’s standards and approval and shall be subject to the Company’s general right of inspection and supervision to secure their satisfactory completion. 

8.4. Consultant shall not use the Company’s trade names, trademarks, service names or service marks without the prior approval of the
Company. 

 8.5. Consultant shall be solely responsible for all state and federal income taxes,
unemployment insurance and social security taxes in connection with this Agreement and shall indemnify, defend and hold harmless the Company and its successors and assigns from and against any claim, demand, liability, damage, cost or expense
(including without limitation attorneys’ fees, back wages, liquidated damages, penalties or interest) resulting from Consultant’s failure to pay such taxes and associated penalties and payments. 

9. No Conflict of Interest: Nonsolicitation: Exclusive Commitment. 

9.1. Consultant retains the right to contract with other companies or entities for Consultant’s consulting services without restriction;
provided, however, that Consultant represents and warrants to the Company that, as of the Effective Date, he is not a party to any agreement or arrangement which would constitute a conflict of interest or that would conflict with the terms of this
Agreement, or would prevent him from carrying out his obligations to the Company under this Agreement, and during the Consultation Period, Consultant shall not enter into such an agreement or arrangement without first notifying the Company. If
Consultant fails to notify the Company of such an agreement or arrangement within fifteen (15) days of the effectiveness thereof, the Company shall have the right to terminate this Agreement immediately pursuant to Section 5. 

9.2. Consultant further agrees that for the duration of the Consultation Period and for six (6) months thereafter, Consultant shall not,
either alone or in association with others, (i) solicit, or permit any organization directly or indirectly controlled by Consultant to solicit, any employee of the Company to leave the employ of the Company or any consultant to the Company to cease
providing services to the Company, or (ii) solicit for employment, hire or engage as an independent contractor, or permit any organization directly or indirectly controlled by Consultant to solicit for employment, hire or engage as an
independent contractor, any person who was employed by the Company at any time during the term of the Consultation Period; provided that this Section 9.2 shall not apply to any individual whose employment with the Company has been terminated
for a period of six (6) months or longer. For the avoidance of doubt, this Section 9.2 shall not apply to (i) general advertising or solicitation not specifically targeted at the Company, its employees, independent contractors or
consultants, (ii) Consultant serving as a reference, upon request, for any employee, independent contractor or consultant of the Company, and (iii) actions taken by any person or entity with which Consultant is associated if Consultant is
not personally involved in any manner in the hiring, recruitment, solicitation or engagement of any such individual (including but not limited to identifying any such individual for hiring, recruitment, solicitation or engagement). 

9.3. Consultant understands the confidential nature of the Proprietary Information he/she will acquire or develop in performing services under
this Agreement, including while serving on the SAB. Consultant acknowledges that if such Proprietary Information were revealed to competitors of the Company, then such disclosure could cause substantial damage to the Company. Therefore, for the
duration of the Restricted Period, Consultant shall consult exclusively with the Company in the Field and shall not, in the Applicable Territory, engage, or assist others in engaging, in any business, enterprise or activities (whether as owner,
partner, officer, director, employee, consultant, member ofa scientific advisory board for (or other board, 

 committee or organization), investor, lender or otherwise, except as the holder of not more than 1% of the
outstanding stock of a publicly-held company) that is competitive with the Company’s business or activities in the Field, including but not limited to any business or enterprise that researches, develops, manufactures, markets, licenses, sells
or provides any product or service that competes with any product or service researched, developed, manufactured, marketed, licensed, sold or provided, or planned to be researched, developed, manufactured, marketed, licensed, sold or provided, by
the Company while the Consultant was providing services hereunder (a “Competitive Company”), if the Consultant would be performing a job or job duties or services for the Competitive Company that is or are similar to the job or job
duties or services that the Consultant performed for the Company at any time during the last one (1) year of the Consultant’s engagement with the Company. 

9.4. Solely for purposes of this Section 9, the following definitions shall apply: 

9.4.1. the “Restricted Period” shall include the duration of Consultant’s engagement with the Company and the six
(6) month period thereafter. Notwithstanding the foregoing, the Restricted Period shall end immediately upon the last day of Consultant’s engagement with the Company if the Company terminates Consultant’s engagement other than for
Cause (as defined below). 
 9.4.2. “Applicable Territory” shall mean the geographic areas in the United States in which
the Company conducts its business, including research, development, and/or sales, or has plans as of Consultant’s termination date to conduct its business, including research, development, and/or sales (it being understood and agreed that
Consultant’s work for the Company will materially influence the Company’s business throughout the Applicable Territory). 
 9.4.3.
“Cause” shall mean any of: (a) Consultant’s conviction of, or plea of guilty or nolo contendere to, any crime involving dishonesty or moral turpitude, or any felony; or (b) a good faith finding by the Company in its
sole discretion that Consultant has (i) engaged in dishonesty, misconduct or gross negligence; (ii) committed an act that injures or would reasonably be expected to injure the reputation, business or business relationships of the Company;
(iii) breached the terms of this Agreement or any other restrictive covenant or confidentiality agreement with or policy of the Company; (iv) failed or refused to comply with any of the Company’s policies or procedures applicable to
Consultant; or (v) failed to perform Consultant’s duties and/or responsibilities to the Company’s satisfaction. 
 10.
Other Agreements: Warranty. 
 10.1. Consultant hereby represents that, except as Consultant has disclosed in writing to the Company,
Consultant is not bound by the terms of any agreement with any third party to refrain from using or disclosing any trade secret or confidential or proprietary information in the course of Consultant’s consultancy with the Company, to refrain
from competing, directly or indirectly, with the business of such third party or to refrain from soliciting employees, customers or suppliers of such third party. Consultant further represents that Consultant’s performance of all the terms of
this Agreement and the performance of the services as a consultant of the Company do not and will not breach any agreement with any third party to which Consultant is a party (including, without limitation, any nondisclosure or non-competition agreement), and that Consultant will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any current or previous employer or
others. 

 10.2. Consultant hereby represents, warrants and covenants that Consultant (a) has the
skills and experience necessary to perform the services hereunder, (b) will perform such services in a professional, competent and timely manner, (c) will render such services in compliance with all applicable laws, rules and regulations,
including but not limited to the U.S. Food, Drug and Cosmetic Act, as amended from time to time and (d) has not been debarred and is not under consideration to be debarred by the U.S. Food and Drug Administration from working in or providing
consulting services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992. Further, Consultant hereby represents, warrants and covenants that Consultant has the power to enter into this Agreement and that
Consultant’s performance hereunder will not infringe upon or violate the rights of any third party or violate any federal, state or municipal laws. If Consultant is a faculty member at or employee of a university or hospital or of another
company (“Institution”), Consultant represents, warrants and covenants that, pursuant to such Institution’s policies concerning professional consulting and additional workload, Consultant is permitted to enter into this
Agreement. If Consultant is required to disclose this Agreement to such Institution, Consultant has made such disclosure. 
 11.
Publicity. Consultant consents to the use by the Company of his name, biographical information and likeness on its website, in its written materials, and in its oral presentations, provided that such website, materials or presentations
accurately describe Consultant and the nature of Consultant’s relationship with or contribution to the Company. 
 12. Remedies.
Consultant acknowledges that any breach of the prov1s1ons of Sections 7 or 9 shall result in serious and irreparable injury to the Company for which the Company cannot be adequately compensated by monetary damages alone. Consultant agrees,
therefore, that, in addition to any other remedy the Company may have, the Company shall be entitled to enforce the specific performance of this Agreement by Consultant and to seek both temporary and permanent injunctive relief (to the extent
permitted by law) without the necessity of proving actual damages or posting a bond. 
 13. Notices. All notices required or permitted
under this Agreement shall be in writing delivered by a recognized national overnight courier, personal delivery or facsimile transmission to the address or fax number set forth beneath a party’s signature below (or such other address as a
party shall designate to the other) and shall be deemed effective upon receipt. The parties shall designate any new address and facsimile numbers in written notices from time to time. 

14. Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine
or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. 
 15. Entire Agreement. This
Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings (including any prior consulting agreement, if applicable), whether written or oral, relating to the subject matter of this
Agreement. 

 16. Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and Consultant. 
 17. Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the Commonwealth of Massachusetts, without regard to any choice of law principle that would dictate the application of the law of another jurisdiction. 

18. Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, both parties and their respective
successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to its assets or business, provided, however, that the obligations of Consultant are personal and shall not be assigned by
him. 
 19. Acknowledgments. The Consultant acknowledges that he or she has the right to consult with counsel prior to signing this
Agreement. The Consultant further acknowledges that he was provided this Agreement by the earlier of the date of (i) a formal offer of engagement, and (ii) ten (10) business days prior to the Consultant’s commencement of engagement
with the Company. 
 20. Interpretation. If any restriction set forth in Section 7 or Section 9 is found by any court of
competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of
activities or geographic area as to which it may be enforceable. 
 21. Miscellaneous. 

21.1. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A
waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

21.2. The captions of the articles and sections of this Agreement are for convenience of reference only and in no way define, limit or affect
the scope or substance of any section of this Agreement. In the event that any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be
affected or impaired thereby. 
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective
Date. 
  

			
	TIDRD HARMONIC BIO, INC.
		
	By:	 	 /s/ Michael Gladstone

	Name: Michael Gladstone
	Title: Chief Executive Officer
	
	CONSULTANT
		
	By:	 	 /s/ H. Martin Seidel

	Name: H. Martin Seidel
	
	Address:PSLY.COM, INC.

2022 EQUITY INCENTIVE PLAN

The purpose of the PSLY.com, Inc. 2022 Equity Incentive Plan is to provide (i) designated employees of PSLY.com, Inc. (the “Company”) and its parents and subsidiaries, (ii) certain consultants and advisors who perform services for the Company or its parents or subsidiaries and (iii) non-employee members of the Board of Directors of the Company (the “Board”) with the opportunity to receive Grants (defined below) of incentive stock options, nonqualified stock options, stock awards, stock units, stock appreciation rights and other equity-based awards. The Company believes that this Plan will encourage the participants to contribute materially to the growth of the Company, thereby benefitting the Company’s stockholders, and will align the economic interests of the participants with those of the stockholders.

1.                   Administration and Delegation.

(a)                Committee. This Plan shall be administered by the Board or by a committee consisting of members of the Board, which may consist of “non-employee directors” as defined under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, when applicable,  “independent directors” as defined by the rules of any national securities exchange (the “Exchange”) upon which shares of the Company’s capital stock shall be listed. However, the Board may ratify or approve any Grants as it deems appropriate, and the Board shall approve and administer all Grants made to non-employee directors. The committee may delegate authority to one or more subcommittees as it deems appropriate. To the extent that a committee or subcommittee administers this Plan, references in this Plan to the “Board” shall be deemed to refer to the committee or subcommittee.

(b)               Board Authority. The Board shall have the sole authority to (i) determine the individuals to whom Grants shall be made under this Plan, (ii) determine the type, size and terms of the Grants to be made to each such individual, (iii) determine the time when the Grants will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms of any previously issued Grant, and (v) deal with any other matters arising under this Plan.

(c)                Board Determinations. The Board shall have full power and authority to administer and interpret this Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing this Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion. The Board’s interpretations of this Plan and all determinations made by the Board pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in this Plan or in any awards granted hereunder. All powers of the Board shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of this Plan and need not be uniform as to similarly situated individuals.

 

(d)               Delegation to Officers. To the extent permitted by applicable law, the Board may delegate to one or more officers of the Company the power to grant Options and other Grants that constitute rights under Delaware law (subject to any limitations under this Plan) to employees or officers of the Company or any of its present or future subsidiary corporations and to exercise such other powers under this Plan as the Board may determine, provided that the Board shall fix the terms of such Grants to be granted by such officers (including the exercise price of such Grants, which may include a formula by which the exercise price will be determined) and the maximum number of shares subject to such Grants that the officers may grant; provided further, however, that no officer shall be authorized to grant such Grants to any “executive officer” of the Company (as defined by Rule 3b-7 under the Exchange Act) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act). Notwithstanding anything to the contrary set forth above, the Board may not delegate authority under this Section 1(d) to grant Stock Awards, unless Delaware law then permits such delegation.

(e)Indemnification. Neither the Board nor any committee, nor any member of either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and any committee (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s certificate of incorporation or bylaws or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company. 

2.                   Grants. Awards under this Plan may consist of grants of incentive stock options as described in Section 5 (“Incentive Stock Options”), nonqualified stock options as described in Section 5 (“Nonqualified Stock Options”) (Incentive Stock Options and Nonqualified Stock Options are collectively referred to as “Options”), stock awards as described in Section 6 (“Stock Awards”), stock units as described in Section 7 (“Stock Units”), stock appreciation rights as described in Section 8 (“SARs”), and other equity-based awards as described in Section 9 (“Other Equity Awards”), the foregoing sometimes referred to herein collectively as “Grants” and individually as a “Grant.” All Grants shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with this Plan as the Board deems appropriate and as are specified in writing by the Board to the individual in a grant instrument or an amendment to the grant instrument (the “Grant Instrument”). All Grants shall be made conditional upon the acknowledgement of the Grantee (as defined in Section 4(b)), in writing or by acceptance of the Grant, that all decisions and determinations of the Board shall be final and binding on the Grantee, his or her beneficiaries and any other person having or claiming an interest under such Grant. Grants under a particular Section of this Plan need not be uniform as among the grantees.

 

3.                   Shares Subject to This Plan.

(a)                Shares Authorized. Subject to adjustment as described below, the aggregate number of shares of common stock of the Company (“Company Stock”) that may be issued pursuant to Grants under this Plan is 5,000,000 shares, each of which may be issued under this Plan as an Incentive Stock Option.

(b)               Individual Limits. The maximum aggregate number of shares of Company Stock that shall be subject to Grants made under this Plan to any individual, including but not limited to any non-employee director, during any calendar year shall be 500,000 shares.

(c)                Share Counting. If and to the extent Options or SARs granted under this Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having been exercised or if any Stock Awards, Stock Units or Other Equity Awards are forfeited, the shares subject to such Grants shall again be available for purposes of this Plan.

(d)               Adjustments. If there is any change in the number or kind of shares of Company Stock outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation, (iii) by reason of a reclassification or change in par value, or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Company Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is substantially reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number of shares of Company Stock available for issuance under this Plan, the maximum number of shares of Company Stock for which any individual may receive Grants in any year, the kind and number of shares covered by outstanding Grants, the kind and number of shares issued and to be issued under this Plan, and the price per share or the applicable market value of such Grants shall be equitably adjusted by the Board to reflect any increase or decrease in the number of, or change in the kind or value of, issued shares of Company Stock to preclude, to the extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided, however, that any fractional shares resulting from such adjustment shall be eliminated. In addition, in the event of a Change of Control of the Company (as defined in Section 12(a)), the provisions of Section 13 of this Plan shall apply. Any adjustment to outstanding Grants shall be consistent with Section 409A and Section 424 of the Internal Revenue Code of 1986, as amended, (the “Code”), to the extent applicable. Any adjustments determined by the Board shall be final, binding and conclusive.

4.                   Eligibility for Participation.

(a)                Eligible Persons. All employees of the Company and its parents or subsidiaries (“Employees”), including Employees who are officers or members of the Board, and members of the Board who are not Employees (“Non-Employee Directors”) shall be eligible to participate in this Plan. Consultants and advisors, as such terms are defined and interpreted for purposes of Form S-8 under the Securities Act of 1933, as amended (the “Securities Act”) (or any successor form or rule) who perform services for the Company or any of its parents or subsidiaries (“Key Advisors”) shall be eligible to participate in this Plan.

(b)               Selection of Grantees. The Board shall select the Employees, Non-Employee Directors and Key Advisors to receive Grants and shall determine the number of shares of Company Stock subject to a particular Grant in such manner as the Board determines. Employees, Key Advisors and Non-Employee Directors who receive Grants under this Plan shall hereinafter be referred to as “Grantees.”

5.                   Options. The Board may grant Options to Employees, Non-Employee Directors, and Key Advisors upon such terms as the Board deems appropriate. The following provisions are applicable to Options:

(a)                Number of Shares. The Board shall determine the number of shares of Company Stock that will be subject to each Grant of Options to Employees, Non-Employee Directors and Key Advisors.

(b)               Type of Option and Price.

(i)                 The Board may grant Incentive Stock Options that are intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code or Nonqualified Stock Options that are not intended so to qualify or any combination of Incentive Stock Options and Nonqualified Stock Options, all in accordance with the terms and conditions set forth herein. Incentive Stock Options may be granted only to employees of the Company or its parents or subsidiaries, as defined in Section 424 of the Code. Nonqualified Stock Options may be granted to Employees, Non-Employee Directors and Key Advisors.

(ii)               The purchase price (the “Exercise Price”) of Company Stock subject to an Option shall be determined by the Board and shall be equal to or greater than the Fair Market Value (as defined below) of a share of Company Stock on the date the Option is granted; provided, however, that an Incentive Stock Option may not be granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary of the Company, unless the Exercise Price per share is not less than 110% of the Fair Market Value of Company Stock on the date of grant.

(iii)             If the Company Stock is publicly traded, then the Fair Market Value per share shall be determined as follows: (x) if the principal trading market for the Company Stock is an Exchange, the last reported sale price thereof on the relevant date or (if there were no trades on that date) the latest preceding date upon which a sale was reported, or (y) if the Company Stock is not principally traded on an Exchange, the mean between the last reported “bid” and “asked” prices of Company Stock on the relevant date, as reported on the Exchange or, if not so reported, as reported by the over-the-counter quotation system on which the Company Stock is then quoted or as reported in a customary financial reporting service, as applicable and as the Board determines. If the Company Stock is not publicly traded or, if publicly traded, is not subject to reported transactions or “bid” or “asked” quotations as set forth above, the Fair Market Value per share shall be as determined by the Board in good faith in a manner that complies with Sections 409A and 422 of the Code.

(c)                Option Term. The Board shall determine the term of each Option. The term of any Option shall not exceed ten years from the date of grant. However, an Incentive Stock Option that is granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any parent or subsidiary of the Company, may not have a term that exceeds five years from the date of grant.

(d)               Exercisability of Options.

(i)                 Options shall become exercisable in accordance with such terms and conditions, consistent with this Plan, as may be determined by the Board and specified in the Grant Instrument. The Board may accelerate the exercisability of any or all outstanding Options at any time for any reason.

(ii)               The Board may provide in a Grant Instrument that the Grantee may elect to exercise part or all of an Option before it otherwise has become exercisable. Any shares so purchased shall be restricted shares and shall be subject to a repurchase right in favor of the Company during a specified restriction period, with the repurchase price equal to the lesser of (i) the Exercise Price or (ii) the Fair Market Value of such shares at the time of repurchase, or such other restrictions as the Board deems appropriate.

(e)                Grants to Non-Exempt Employees. Notwithstanding the foregoing, unless expressly approved by the Board, Options granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, (the “FLSA”) may not be exercisable for at least six months after the date of grant (except that such Options may become exercisable, as determined by the Board, upon the Grantee’s death, Disability (as defined in Section 5(f)(v)(C)) or Retirement (as defined in Section 5(f)(v)(E)), or upon a Change of Control or other circumstances permitted by applicable regulations).

(f)                 Termination of Employment, Disability or Death.

(i)                 Except as provided below, an Option may be exercised only while the Grantee is employed by, or providing service to, the Employer (as defined in Section 5(f)(v)(A)) as an Employee, Key Advisor or member of the Board. In the event that a Grantee ceases to be employed by, or provide service to, the Employer for any reason other than Disability, death, Retirement or termination for Cause (as defined in Section 5(f)(v)(D)), except as otherwise provided by the Board, any Option that is otherwise exercisable by the Grantee shall terminate unless exercised within three months after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Board), but in any event no later than the date of expiration of the Option term. Except as otherwise provided by the Board, any of the Grantee’s Options that are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.

 

(ii)               In the event the Grantee ceases to be employed by, or provide service to, the Employer on account of a termination for Cause by the Employer, any Option held by the Grantee shall terminate as of the date the Grantee ceases to be employed by, or provide service to, the Employer. In addition, notwithstanding any other provisions of this Section 5, if the Board determines that the Grantee has engaged in conduct that constitutes Cause at any time while the Grantee is employed by, or providing service to, the Employer or after the Grantee’s termination of employment or service, any Option held by the Grantee shall immediately terminate, and the Grantee shall automatically forfeit all shares underlying any exercised portion of an Option for which the Company has not yet delivered the share certificates, upon refund by the Company of the Exercise Price paid by the Grantee for such shares. Upon any exercise of an Option, the Company may withhold delivery of share certificates pending resolution of an inquiry that could lead to a finding resulting in a forfeiture.

(iii)             In the event the Grantee ceases to be employed by, or provide service to, the Employer because of the Grantee’s Disability, any Option that is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Board), but in any event no later than the date of expiration of the Option term. Except as otherwise provided by the Board, any of the Grantee’s Options that are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.

(iv)              If the Grantee dies while employed by, or providing service to, the Employer or within three months after the date on which the Grantee ceases to be employed or provide service on account of a termination specified in Section 5(f)(i) above (or within such other period of time as may be specified by the Board), any Option that is otherwise exercisable by the Grantee shall terminate unless exercised within one year after the date on which the Grantee ceases to be employed by, or provide service to, the Employer (or within such other period of time as may be specified by the Board), but in any event no later than the date of expiration of the Option term. Except as otherwise provided by the Board, any of the Grantee’s Options that are not otherwise exercisable as of the date on which the Grantee ceases to be employed by, or provide service to, the Employer shall terminate as of such date.

(v)                For purposes of this Section 5(f) and Section 6:

(A)             The term “Employer” shall include the Company and its parent and subsidiary corporations, as determined by the Board.

(B)              “Employed by, or provide service to, the Employer” shall mean employment or service as an Employee, Key Advisor or member of the Board (so that, for purposes of exercising Options and satisfying conditions with respect to other Grants, a Grantee shall not be considered to have terminated employment or service until the Grantee ceases to be an Employee, Key Advisor or member of the Board), unless the Board determines otherwise.

 

(C)              “Disability” shall mean a Grantee’s becoming disabled within the meaning of Section 22(e)(3) of the Code, within the meaning of the Employer’s long-term disability plan applicable to the Grantee, or as otherwise determined by the Board.

(D)             “Cause” will have the meaning ascribed to such term in any written agreement between the Grantee and the Company or other Employer defining such term and, in the absence of such an agreement, shall mean, except to the extent specified otherwise by the Board, a finding by the Board that the Grantee (i) has breached his or her employment or service contract with the Employer in any material respect, (ii) has engaged in disloyalty to the Company, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty, (iii) has disclosed trade secrets or confidential information of the Employer to persons not entitled to receive such information, (iv) has breached any written noncompetition or nonsolicitation agreement between the Grantee and the Employer or (v) has engaged in such other behavior detrimental to the interests of the Employer as the Board determines.

(g)                Exercise of Options. A Grantee may exercise an Option that has become exercisable, in whole or in part, by delivering a notice of exercise to the Company. The Grantee shall pay the Exercise Price for an Option as specified by the Board (w) in cash, (x) with the approval of the Board, by delivering shares of Company Stock owned by the Grantee (including Company Stock acquired in connection with the exercise of an Option, subject to such restrictions as the Board deems appropriate) and having a Fair Market Value on the date of exercise equal to the Exercise Price or by attestation (on a form prescribed by the Board) to ownership of shares of Company Stock having a Fair Market Value on the date of exercise equal to the Exercise Price, (y) payment through a broker in accordance with procedures permitted by applicable regulations of the Board of Governors of the Federal Reserve System, or (z) by such other method as the Board may approve. Shares of Company Stock used to exercise an Option shall have been held by the Grantee for the requisite period of time to avoid adverse accounting consequences to the Company with respect to the Option. The Grantee shall pay the Exercise Price and the amount of any withholding tax due (pursuant to Section 10) at the time of exercise.

(h)               Limits on Incentive Stock Options. Each Incentive Stock Option shall provide that, if the aggregate Fair Market Value of the stock on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by a Grantee during any calendar year, under this Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any person who is not an Employee of the Company or a parent or subsidiary (within the meaning of Section 424(f) of the Code) of the Company.

 

(i)                 Limitation on Repricing. If the Company Stock is listed on an Exchange, unless such action is approved by the Company’s stockholders, the Company may not (except as provided for under Section 3(d)): (A) amend any outstanding Option granted under this Plan to provide an exercise price per share that is lower than the then-current exercise price per share of such outstanding Option, (B) cancel any outstanding Option (whether or not granted under the Plan) and grant in substitution therefor new Grants under this Plan (other than adjustments made pursuant to Section 3(d)) covering the same or a different number of shares of Company Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled option, (C) cancel in exchange for a cash payment any outstanding Option with an exercise price per share above the then-current Fair Market Value, other than pursuant to Section 3(d), or (D) take any other action under this Plan that constitutes a “repricing” within the meaning of the rules of the Exchange.

6.                   Stock Awards. The Board may issue shares of Company Stock to an Employee, Non-Employee Director or Key Advisor under a Stock Award, upon such terms as the Board deems appropriate. The following provisions are applicable to Stock Awards:

(a)                General Requirements. Shares of Company Stock issued or transferred pursuant to Stock Awards may be issued or transferred for cash consideration or for no cash consideration, and subject to restrictions or no restrictions, as determined by the Board. The Board may, but shall not be required to, establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such other criteria as the Board deems appropriate, including without limitation restrictions based on the achievement of specific performance goals. The period of time during which the Stock Award will remain subject to restrictions will be designated in the Grant Instrument as the “Restriction Period.”

(b)               Number of Shares. The Board shall determine the number of shares of Company Stock to be issued or transferred pursuant to a Stock Award and the restrictions applicable to such shares.

(c)                Requirement of Employment or Service. Unless the Board determines otherwise, if the Grantee ceases to be employed by, or provide service to, the Employer (as defined in Section 5(f)(v)(A)) during a period designated in the Grant Instrument as the Restriction Period, or if other specified conditions are not met, the Stock Award shall terminate as to all shares covered by the Grant as to which the restrictions have not lapsed, and those shares of Company Stock must be immediately returned to the Company. The Board may, however, provide for complete or partial exceptions to this requirement as it deems appropriate.

(d)               Restrictions on Transfer and Legend on Stock Certificate. During the Restriction Period, a Grantee may not sell, assign, transfer, pledge or otherwise dispose of the shares of the Stock Award except to a successor under Section 11(a). Each certificate representing a Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant. The Grantee shall be entitled to have the legend removed from the stock certificate covering the shares subject to restrictions when all restrictions on such shares have lapsed. The Board may determine that the Company will not issue a certificate for a Stock Award until all restrictions on such shares have lapsed, or that the Company will retain possession of certificates for Stock Awards until all restrictions on such shares have lapsed.

(e)                Right to Vote and to Receive Dividends. Unless the Board determines otherwise, during the Restriction Period, the Grantee shall have the right to vote shares subject to Stock Awards and to receive any dividends or other distributions paid on such shares, subject to any restrictions deemed appropriate by the Board, including without limitation the achievement of specific performance goals.

(f)                 Lapse of Restrictions. All restrictions imposed on Stock Awards shall lapse upon the expiration of the applicable Restriction Period and the satisfaction of all conditions imposed by the Board. The Board may determine, as to any or all Stock Awards, that the restrictions shall lapse without regard to any Restriction Period.

7.                   Stock Units. The Board may grant Stock Units representing one or more shares of Company Stock to an Employee, Non-Employee Director or Key Advisor, upon such terms and conditions as the Board deems appropriate, provided, however, that all such grants shall be exempt from or comply with Section 409A of the Code. The following provisions are applicable to Stock Units:

(a)                Crediting of Units. Each Stock Unit shall represent the right of the Grantee to receive an amount based on the value of a share of Company Stock, if specified conditions are met. All Stock Units shall be credited to bookkeeping accounts established on the Company’s records for purposes of this Plan.

(b)               Terms of Stock Units. The Board may grant Stock Units that are payable if specified performance goals or other conditions are met, or under other circumstances. Stock Units may be paid at the end of a specified performance period or other period, or payment may be deferred to a date authorized by the Board. The Board shall determine the number of Stock Units to be granted and the requirements applicable to such Stock Units.

(c)                Requirement of Employment or Service. Unless the Board determines otherwise, if the Grantee ceases to be employed by, or provide service to, the Employer during a specified period, or if other conditions established by the Board are not met, the Grantee’s Stock Units shall be forfeited. The Board may, however, provide for complete or partial exceptions to this requirement as it deems appropriate.

(d)               Payment with Respect to Stock Units. Payments with respect to Stock Units may be made in cash, in Company Stock, or in a combination of the two, as determined by the Board.

8.                   Stock Appreciation Rights. The Board may grant SARs to an Employee, Non-Employee Director or Key Advisor separately or in tandem with any Option. The following provisions are applicable to SARs:

(a)                Base Amount. The Board shall establish the base amount of the SAR at the time the SAR is granted. The base amount of each SAR shall not be less than the Fair Market Value of a share of Company Stock on the date of Grant of the SAR.

 

(b)               Tandem SARs. In the case of tandem SARs, the number of SARs granted to a Grantee that shall be exercisable during a specified period shall not exceed the number of shares of Company Stock that the Grantee may purchase upon the exercise of the related Option during such period. Upon the exercise of an Option, the SARs relating to the Company Stock covered by such Option shall terminate. Upon the exercise of SARs, the related Option shall terminate to the extent of an equal number of shares of Company Stock.

(c)                Exercisability. A SAR shall be exercisable during the period specified by the Board in the Grant Instrument and shall be subject to such vesting and other restrictions as may be specified in the Grant Instrument. The Board may accelerate the exercisability of any or all outstanding SARs at any time for any reason. SARs may only be exercised while the Grantee is employed by, or providing service to, the Employer or during the applicable period after termination of employment or service as described in Section 5(f) above. A tandem SAR shall be exercisable only during the period when the Option to which it is related is also exercisable.

(d)               Grants to Non-Exempt Employees. Notwithstanding the foregoing, SARs granted to persons who are non-exempt employees under the FLSA may not be exercisable for at least six months after the date of grant (except that such SARs may become exercisable, as determined by the Board, upon the Grantee’s death, Disability or retirement, or upon a Change of Control or other circumstances permitted by applicable regulations).

(e)                Value of SARs. When a Grantee exercises SARs, the Grantee shall receive in settlement of such SARs an amount equal to the value of the stock appreciation for the number of SARs exercised. The stock appreciation for a SAR is the amount by which the Fair Market Value of the underlying Company Stock on the date of exercise of the SAR exceeds the base amount of the SAR as described in Section 8(a).

(f)                 Form of Payment. The appreciation in a SAR shall be paid in shares of Company Stock, cash or any combination of the foregoing, as the Board shall determine. For purposes of calculating the number of shares of Company Stock to be received, shares of Company Stock shall be valued at their Fair Market Value on the date of exercise of the SAR.

9.                   Other Equity Awards. The Board may grant Other Equity Awards, which are awards (other than those described in Sections 5, 6, 7 and 8 of this Plan) that are based on, measured by or payable in Company Stock, including, without limitation, stock appreciation rights, to any Employee, Non-Employee Director or Key Advisor, on such terms and conditions as the Board shall determine. Other Equity Awards may be awarded subject to the achievement of performance goals or other conditions and may be payable in cash, Company Stock or any combination of the foregoing, as the Board shall determine.

 

10.               Withholding of Taxes.

(a)                Required Withholding. All Grants under this Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements. The Employer may require that the Grantee or other person receiving or exercising Grants pay to the Employer the amount of any federal, state or local taxes that the Employer is required to withhold with respect to such Grants, or the Employer may deduct from other wages paid by the Employer the amount of any withholding taxes due with respect to such Grants.

(b)               Election to Withhold Shares. If the Board so permits, a Grantee may elect to satisfy the Employer’s income tax withholding obligation with respect to Grants paid in Company Stock by having shares withheld up to an amount that does not exceed the Grantee’s minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities. The election must be in a form and manner prescribed by the Board and may be subject to the prior approval of the Board.

11.               Transferability of Grants.

(a)                Nontransferability of Grants. Except as provided below, only the Grantee may exercise rights under a Grant during the Grantee’s lifetime. A Grantee may not transfer those rights except (i) by will or by the laws of descent and distribution or (ii) with respect to Grants other than Incentive Stock Options, if permitted in any specific case by the Board, pursuant to a domestic relations order or otherwise as permitted by the Board. When a Grantee dies, the personal representative or other person entitled to succeed to the rights of the Grantee may exercise such rights. Any such successor must furnish proof satisfactory to the Company of his or her right to receive the Grant under the Grantee’s will or under the applicable laws of descent and distribution.

(b)               Transfer of Nonqualified Stock Options. Notwithstanding the foregoing, the Board may provide, in a Grant Instrument, that a Grantee may transfer Nonqualified Stock Options to family members, or one or more trusts or other entities for the benefit of or owned by family members, consistent with applicable securities laws, according to such terms as the Board may determine; provided that the Grantee receives no consideration for the transfer of an Option and the transferred Option shall continue to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer.

12.               Change of Control of the Company.

(a)                Change of Control. As used herein, a “Change of Control” shall be deemed to have occurred if:

(i)                 Any “person,” as such term is used in sections 13(d) and 14(d) of the Exchange Act becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of (A) a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such 

stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors, or (B) the acquisition of securities of the Company by an investor of the Company in a capital-raising transaction; or

(ii)               The consummation of (A) a merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors, (B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the Company.  

Notwithstanding the foregoing, the consummation of the transactions pursuant to which the Company acquires Ei. Ventures, Inc. and Mycotopia Therapies, Inc., with each of such corporations becoming wholly-owned subsidiaries of the Company shall not be or otherwise result in a Change of Control.

(b)               Other Definition. The Board may modify the definition of Change of Control for a particular Grant as the Board deems appropriate to ensure exemption from or compliance with Section 409A of the Code or otherwise as it deems appropriate.

13.               Consequences of a Change of Control.

(a)                Acceleration. In the event of a Change of Control, the Board may determine whether and to what extent (i) outstanding Options and SARs shall accelerate and become exercisable, and (ii) outstanding Stock Awards, Stock Units and Other Equity Awards shall vest and shall be payable. The Board may condition any such acceleration on such terms as the Board determines.

(b)               Other Alternatives. In the event of a Change of Control, the Board may take any of the following actions with respect to any or all outstanding Grants: the Board may (i) determine that all outstanding Options and SARs that are not exercised shall be assumed by, or replaced with comparable options by the surviving corporation (or a parent or subsidiary of the surviving corporation), and other outstanding Grants that remain in effect after the Change of Control shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving corporation), (ii) require that Grantees surrender their outstanding Options and SARs in exchange for one or more payments, in cash or Company Stock as determined by the Board, in an amount, if any, equal to the amount by which the then Fair Market Value of the shares of Company Stock subject to the Grantee’s unexercised Options and SARs exceeds the Exercise Price or base amount of the Options and SARs, on such terms as the Board determines, or (iii) after giving Grantees an opportunity to exercise their outstanding Options and SARs, terminate any or all unexercised Options and SARs at such time as the Board deems appropriate. Such assumption, surrender or termination shall take place as of the date of the Change of Control or such other date as the Board may specify.

 

14.               Limitations on Issuance or Transfer of Shares.

(a)                Stockholders Agreement/Voting Agreement. The Board may require that a Grantee execute a stockholders agreement and/or a voting agreement, in each case, with such terms as the Board deems appropriate, with respect to any Company Stock issued or transferred pursuant to this Plan. If such stockholders agreement or voting agreement contains any lock-up or market standoff provisions that differ from the provisions of Section 14(c) of this Plan, for as long as the provisions of such agreement are in effect, the provisions of Section 14(c) shall not apply to such Company Stock, unless the Board determines otherwise.

(b)               Limitations on Issuance or Transfer of Shares. No Company Stock shall be issued or transferred in connection with any Grant hereunder unless and until all legal and Exchange requirements applicable to the issuance or transfer of such Company Stock have been complied with to the satisfaction of the Board. The Board shall have the right to condition any Grant made to any Grantee hereunder on such Grantee’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Board shall deem necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions. Certificates representing shares of Company Stock issued or transferred under this Plan will be subject to such stop-transfer orders and other restrictions as may be required by applicable laws, regulations and interpretations, including any requirement that a legend be placed thereon.

(c)                Lock-Up Period. If so requested by the Company or any representative of the underwriters (the “Managing Underwriter”) in connection with any underwritten offering of securities of the Company under the Securities Act, and subject to Section 14(a) of this Plan, a Grantee (including any successor or assigns) shall not sell or otherwise transfer any shares or other securities of the Company during the 30-day period preceding and the 180-day period following the effective date of a registration statement of the Company filed under the Securities Act for such underwriting (or such shorter period as may be requested by the Managing Underwriter and agreed to by the Company) (the “Market Standoff Period”). If so requested by the Company or the Managing Underwriter, the Grantee shall enter into a separate written agreement to such effect in form and substance requested by the Company or the Managing Underwriter. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

15.               Amendment and Termination.

(a)                Amendment of This Plan. The Board may amend, suspend or terminate this Plan or any portion thereof at any time provided that if shares of the Company’s capital stock are listed on the Exchange, no amendment that would require stockholder approval under the rules of the Exchange may be made effective unless and until the Company’s stockholders approve such amendment. In addition, if at any time the approval of the Company’s stockholders is required as to any other modification or amendment under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, the Board may not effect such modification or amendment without such approval. Unless otherwise specified in the amendment, any amendment to this Plan adopted in accordance with this Section 15(a) shall apply to, and be binding on the holders of, all Grants outstanding under this Plan at the time the amendment is 

adopted, provided the Board determines that such amendment, taking into account any related action, does not materially and adversely affect the rights of Grantees under this Plan. No Grant shall be made that is conditioned upon stockholder approval of any amendment to this Plan unless the Grant provides that (i) it will terminate or be forfeited if stockholder approval of such amendment is not obtained within no more than 12 months from the date of grant and (ii) it may not be exercised or settled (or otherwise result in the issuance of Company Stock) prior to such stockholder approval.

(b)               Termination of This Plan. This Plan shall terminate on the day immediately preceding the tenth anniversary of its effective date, unless this Plan is terminated earlier by the Board or is extended by the Board with the approval of the stockholders.

(c)                Termination and Amendment of Outstanding Grants. The Board may amend, modify or terminate any outstanding Grant, including but not limited to substituting therefor another Grant of the same or a different type, changing the date of exercise or realization, and/or converting an Incentive Stock Option into a Nonqualified Stock Option. A termination or amendment of this Plan that occurs after a Grant is made shall not materially impair the rights of a Grantee unless the Grantee consents or unless the Board acts under Section 21(b). The termination of this Plan shall not impair the power and authority of the Board with respect to an outstanding Grant. The Board may at any time provide that any Grant shall become immediately exercisable in whole or in part, free of some or all restrictions or conditions, or otherwise realizable in whole or in part, as the case may be.

(d)               Governing Document.  In the event of any conflict between the terms of any Grant or Grant Instrument and this Plan, the terms of this Plan shall govern and control; provided that Grants authorized under this Plan may contain such other provisions not inconsistent with this Plan as the Board may deem advisable.  This Plan may be amended only in accordance with and subject to the terms of this Section 15 and only by a written instrument duly (x) adopted by the Board and (y) if required, approved by the stockholders, and may not be amended or modified and shall not be deemed amended or modified by any  other statements, representations, explanatory materials or examples, oral or written. This Plan shall be binding upon and enforceable against (x) the Company and its successors and assigns and (y) each Grantee and the executor, administrator, and permitted transferees and beneficiaries of any Grantee.

16.               Funding of This Plan. This Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Grants under this Plan.

17.               Rights of Participants. Nothing in this Plan shall entitle any Employee, Key Advisor, Non-Employee Director or other person to any claim or right to be granted a Grant under this Plan. Neither this Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained or employed by or to remain in any employment or other service relationship with the Employer or any other employment rights or as interfering in any manner with the right of Employer to terminate the employment or other service relationship of any person at any time.  A Grantee shall have no rights as a holder of shares of Company Stock with respect to any unissued securities covered by any Grant until those securities are delivered in accordance with this Plan and the applicable Grant Instrument and the Grantee becomes the holder 

of record of such securities (and then only to the extent provided in and subject to the terms of this Plan and in the applicable Grant Instrument), notwithstanding the exercise of an Option or any other action by the Grantee with respect to a Grant.

 

18.               No Fractional Shares. No fractional shares of Company Stock shall be issued or delivered pursuant to this Plan or any Grant. The Board shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

19.               Headings. Section headings are for reference only. In the event of a conflict between a title and the content of a Section, the content of the Section shall control.

20.               Effective Date of This Plan. This Plan shall be effective on the date on which this Plan is approved by the Company’s stockholders.

21.               Miscellaneous.

(a)                Grants in Connection with Corporate Transactions and Otherwise. Nothing contained in this Plan shall be construed to (i) limit the right of the Board to make Grants under this Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any corporation, firm or association, including Grants to employees thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of the Company to grant stock options or make other awards outside of this Plan. Without limiting the foregoing, the Board may make a Grant to an employee, director or advisor of another corporation who becomes an Employee, Non-Employee Director or Key Advisor by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving the Company or any of its subsidiaries in substitution for a stock option or stock award grant made by such corporation. The terms and conditions of the substitute grants may vary from the terms and conditions required by this Plan and from those of the substituted stock incentives. The Board shall prescribe the provisions of the substitute grants.

(b)               Compliance with Law. This Plan, the exercise of Options and the obligations of the Company to issue shares of Company Stock under Grants shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required. With respect to persons subject to section 16 of the Exchange Act, it is the intent of the Company that this Plan and all transactions under this Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. It is the intent of the Company that this Plan and applicable Grants under this Plan comply with the applicable provisions of Section 422 of the Code and that, to the extent applicable, Grants made under this Plan are intended to be exempt from or to comply with the requirements of Section 409A of the Code and the regulations thereunder. To the extent that any Grant is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (a “409A Grant”), the Grant shall be subject to such additional rules and requirements as specified by the Board from time to time in order to comply with Section 409A. In this regard, if any amount under a 409A Grant is payable upon a “separation from service” (within the meaning of Section 409A of the Code) to a Grantee who is then considered a “specified employee” (within the meaning of Section 409A of the Code), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after 

the Grantee’s separation from service, or (ii) the Grantee’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A of the Code. Further, the settlement of any 409A Grant may not be accelerated except to the extent permitted by Section 409A of the Code.  In no event will any Grantee have a right to payment or reimbursement or otherwise from the Company for any taxes imposed or other costs incurred as a result of Section 409A of the Code.  To the extent that any legal requirement set forth in this Plan ceases to be required under applicable law, the Board may determine that such Plan provision shall cease to apply. The Board may revoke any Grant if it is contrary to law or modify a Grant or this Plan to bring the Grant or this Plan into compliance with any applicable law or regulation.

(c)                Employees Subject to Taxation Outside the United States. With respect to Grantees who are subject to taxation in countries other than the United States, the Board may make Grants on such terms and conditions as the Board deems appropriate to comply with the laws of the applicable countries, and the Board may create such procedures, addenda and subplans and make such modifications as may be necessary or advisable to comply with such laws.

(d) Clawback Policy. Grants under the Plan shall be subject to the Company’s clawback policy, as in effect from time to time. 

(e) Other Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases.  

 

(f) Trading Policy Restrictions. Option exercises and other Grants under the Plan shall be subject to the Company’s insider trading policies and procedures, as in effect from time to time. 

 

(g)               Governing Law. The validity, construction, interpretation and effect of this Plan and Grant Instruments issued under this Plan shall be governed and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.

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