Document:

EXHIBIT 10.6

 

LPATH, INC.

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

(Deferred Settlement Date)

 

Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice of Grant.

 

	
Name:
    	
 
    	
 
    

 

You have been granted XX,000 Restricted Stock Units.  Each such Restricted Stock Unit is equivalent to one share of Common Stock of the Corporation (a “Share”) for purposes of determining the number of Shares subject to this award.  No Share subject to this award of Restricted Stock Units will be issued (nor will you have the rights of a stockholder with respect to the underlying Shares) until the vesting conditions and the settlement date described below are satisfied.  Additional terms of this grant are as follows:

 

	
Date   of Grant
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Vesting Commencement Date:
    	
 
    	
 
    

 

	
Vesting   Schedule:
    	
 
    	
The   Restricted Stock Units will vest in accordance with Exhibit B, subject   to your continuing to provide Service (as defined in the Restricted Stock   Unit Agreement attached as Exhibit A hereto (the “Agreement”)) through   the applicable vesting date.
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
To   the extent vested, Restricted Stock Units will be settled through the   issuance of shares of Common Stock, on the first to occur of: (i) the   fifth anniversary of the Date of Grant; (ii) termination of your   Service; (iii) Disability (as defined in the Agreement); (iv) death; or   (v) a Corporate Transaction (as defined in the Plan).
    

 

 

You acknowledge and agree that this Notice of Grant and the vesting schedule set forth herein does not constitute an express or implied promise of continued Service for the vesting period, for any period, or at all, and shall not interfere with your right or the Corporation’s right to terminate your Service at any time, with or without cause.

 

This grant has been authorized by the Corporation’s Board of Directors.  If any number in this Notice is inconsistent with that which was authorized by the Board, then it is an error and the Corporation reserves the right to replace this Notice with a corrected version.

 

You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and this Award.

 

By your signature and the signature of the Corporation’s representative below, you and the Corporation agree that this Notice of Grant, the form of Restricted Stock Unit Agreement attached as Exhibit A hereto, and the Lpath, Inc. Amended and Restated 2005 Equity Incentive Plan constitute your entire agreement with respect to this Award and may not be modified adversely except by means of a writing signed by the Corporation and you.

 

	
GRANTEE:
    	
 
    	
LPATH, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
By
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name
    	
 
    	
Title
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Taxpayer   I.D. Number
    	
 
    	
 
    

 

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EXHIBIT A

 

LPATH, INC.

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AGREEMENT

(Deferred Settlement Date)

 

1.                                      Grant.  The Corporation hereby grants to the Participant an award of Restricted Stock Units (“RSUs”), as set forth in the Notice of Grant of Restricted Stock Units and subject to the terms and conditions in this Agreement and the Corporation’s Amended and Restated 2005 Equity Incentive Plan (the “Plan”).  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Restricted Stock Unit Agreement (the “Agreement”).

 

2.                                      Corporation’s Obligation.  Each RSU represents the right to receive a Share, to the extent vested, on the Settlement Date.  Unless and until the RSUs vest and the Settlement Date has occurred, the Participant will have no right to receive Shares under such RSUs.  Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Corporation, payable (if at all) only from the general assets of the Corporation.

 

3.                                      Vesting Schedule.  Subject to paragraph 4, the RSUs awarded by this Agreement will vest according to the vesting schedule specified in the Notice of Grant.

 

4.                                      Forfeiture upon Termination of Service.  Notwithstanding any contrary provision of this Agreement or the Notice of Grant, if the Participant terminates Service for any or no reason prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Corporation.  For the purposes of this Award, the term “Service” shall be defined as follows: the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity of (i) a full-time Employee, or (ii) a consultant.  Termination of Service shall be deemed to occur upon (i) any termination of employment by an Employee or if a full-time Employee becomes a part-time Employee, or (ii) by termination of a consultant’s relationship with the Corporation or a reduction in the level of services performed by the consultant by 33% or more as compared to the services provided at the Date of Grant.

 

5.                                      Payment after Vesting.  Any RSUs that vest in accordance with paragraph 3 will be paid to the Participant (or in the event of the Participant’s death, to his or her estate) in Shares on the applicable Settlement Date; provided that to the extent determined appropriate by the Administrator, pursuant to paragraph 12, the minimum statutorily required federal, state and local withholding taxes with respect to such RSUs will be paid by reducing the number of vested Shares actually paid to the Participant.  For the purposes of this Award, the term “Disability” shall be defined as follows: a Participant shall be considered disabled if the Participant is, by reason of any medically determined physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under a disability plan covering Employee’s of the Corporation.

 

 

6.                                      Payments after Death.  Any distribution or delivery to be made to the Participant under this Agreement will, if the Participant is then deceased, be made to the administrator or executor of the Participant’s estate.  Any such administrator or executor must furnish the Corporation with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Corporation to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

 

7.                                      Rights as Stockholder.  Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Corporation in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Corporation or its transfer agents or registrars, and delivered to the Participant or Participant’s broker.

 

8.                                      No Effect on Employment.  The Participant’s employment with the Corporation and its Subsidiaries is on an at-will basis only.  Accordingly, the terms of the Participant’s employment with the Corporation and its Subsidiaries will be determined from time to time by the Corporation or the Subsidiary employing the Participant (as the case may be), and the Corporation or the Subsidiary will have the right, which is hereby expressly reserved, to terminate or change the terms of the employment of the Participant at any time for any reason whatsoever, with or without good cause or notice.

 

9.                                      Address for Notices.  Any notice to be given to the Corporation under the terms of this Agreement will be addressed to the Corporation at 4025 Sorrento Valley Blvd., San Diego, California 92121, Attn: Stock Administration, or at such other address as the Corporation may hereafter designate in writing or electronically.

 

10.                               Grant is Not Transferable.  Except to the limited extent provided in paragraph 6, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.

 

11.                               Binding Agreement.  Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

12.                               Withholding of Taxes.  When the Shares are issued as payment for vested RSUs, the Participant will recognize immediate U.S. taxable income if the Participant is a U.S. taxpayer.  In addition, at each vesting date Participant will be subject to applicable employment taxes on the value of the RSUs that become vested on that date.  If the Participant is a non-U.S. taxpayer, the Participant will be subject to applicable taxes in his or her jurisdiction.  The Corporation will withhold a portion of the Shares otherwise issuable in payment for vested RSUs that have an aggregate market value sufficient to pay the minimum federal, state and local income, employment and any other applicable taxes required to be withheld by the Corporation with respect to the Shares.  No fractional Shares will be withheld or issued pursuant to the grant

 

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of RSUs and the issuance of Shares hereunder.  The Corporation may instead, in its discretion, either (i) withhold any amount necessary to pay the applicable taxes from the Participant’s salary or other amounts payable to the Participant, with no withholding in Shares, or (ii) arrange for the appropriate number of Shares subject to the vested portion of the Award to be sold on the open market, if permitted by all applicable law, with the proceeds of such sale remitted to the Corporation in an amount necessary to satisfy the minimum tax withholding obligation of the Corporation.  In the event the withholding requirements are not satisfied through the withholding Shares (or, through the Participant’s salary or other amounts payable to the Participant or through the sale of Share on the open market), no Shares will be issued to the Participant (or his or her estate) in settlement of the RSU unless and until satisfactory arrangements (as determined by the Administrator) have been made by the Participant with respect to the payment of any income and other taxes which the Corporation determines must be withheld or collected with respect to such RSUs.  By accepting this RSU, the Participant expressly consents to the withholding of Shares and/or cash as provided for in this paragraph 12.  All income and other taxes related to the RSU and any Shares delivered in payment thereof are the sole responsibility of the Participant.

 

13.                               Additional Conditions to Issuance of Stock.  If at any time the Corporation will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Corporation.  The Corporation will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.

 

14.                               Plan Governs.  This Agreement and the Notice of Grant are subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Agreement or the Notice of Grant and one or more provisions of the Plan, the provisions of the Plan will govern.

 

15.                               Administrator Authority.  The Administrator will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested).  All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Corporation and all other interested persons.  No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.

 

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16.                               Modifications to the Agreement.  The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan can be made only in an express written amendment executed by a duly authorized officer of the Corporation.  Notwithstanding anything to the contrary in the Plan or this Agreement, the Corporation reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Section 409A of the Code or to otherwise avoid imposition of any additional tax or income recognition under Section 409A of the Code prior to the actual payment of Shares pursuant to this award of RSUs.

 

17.                               Notice of Governing Law.  This grant of RSUs shall be governed by, and construed in accordance with, the laws of the State of California without regard to principles of conflict of laws.

 

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EXHIBIT B

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT VESTING

(Deferred Settlement Date)

 

The Restricted Stock Unit (“RSU”) Shares shall initially be unvested.  Grantee shall acquire a vested interest in the RSU Shares as follows:

 

1.              No RSU Shares shall vest unless and until the Grantee has completed 12 months of Service (as defined in the Plan) measured from the Vesting Commencement Date (“Initial Service Period”).

 

2.              Upon the completion of the Initial Service Period specified above, 25% RSU Shares shall become vested.

 

3.              The remaining RSU Shares shall vest in a series of successive equal quarterly installments over each of the following 12 quarters of Service completed by the Grantee after the Initial Service Period specified above.

 

4.              In no event shall any additional RSU Shares vest after Grantee’s cessation of Service.

 

5Exhibit
10.1 

 

JUBILANT CADISTA PHARMACEUTICALS INC.

207 Kiley Drive

Salisbury, Maryland 21801

 

 

 

August 12, 2014

 

 

Jubilant Draximage Inc.

16751 Trans-Canada Highway

Kirkland, Quebec

Canada H9H 414

 

Jubilant Pharma Limited.

80 Raffles Place

UOB Plaza 1, #26-01

Singapore 048624

 

Re: Loan Agreement, dated August 23, 2013, by and between Jubilant
Draximage Inc. and Jubilant Cadista Pharmaceuticals Inc.

 

Ladies and Gentlemen:

 

Reference is made to that certain Loan Agreement, dated August
23, 2013 (the “Loan Agreement”), by and between Jubilant Draximage Inc., a corporation organized under the laws of
Canada (“Borrower”), and Jubilant Cadista Pharmaceuticals Inc., a corporation organized under the laws of the State
of Delaware (“Lender”), which is guaranteed by Jubilant Pharma Limited, a corporation organized under the laws of Singapore
(“Guarantor”). Unless otherwise defined in this letter or the context otherwise indicates, each capitalized term used
in this letter has the meaning ascribed to it in the Loan Agreement.

 

As you know, the Loan Agreement currently has a Maturity Date
of August 22, 2014. In accordance with the terms of the Loan Agreement, Borrower has requested a one year extension of the Maturity
Date and Lender is willing to extend the Maturity Date in accordance with the terms described in this letter.

 

This will confirm the agreement among the Borrower, Lender and
Guarantor with respect to such extension as follows:

 

1. The Maturity Date is hereby extended until August 31, 2015,
and the term “Maturity Date” as used in the Loan Agreement or the Note shall mean August 31, 2015.

 

    	 

    	 

    

 

Page 2

August, 2014

 

2. Except for the extension of the Maturity Date as set forth
in Paragraph 1, the terms and provisions of the Loan Agreement and the Note shall remain in full force and effect. Without limiting
the generality of the foregoing, this letter shall be limited precisely as written and shall not operate as a consent to any other
action or inaction by the Borrower or the Guarantor, or as a waiver or amendment of any right, power, or remedy of the Lender under
the Loan Agreement or the Note nor constitute a consent to any action or inaction, or a waiver or amendment of any provision contained
in the Loan Agreement and the Note except as specifically provided herein. Without limiting the generality of the foregoing, and
for the avoidance of doubt, nothing contained in this letter shall limit or be deemed to limit Lender’s right to demand repayment
of all or any portion of the outstanding principal amount of the Loan, accrued and unpaid interest, together with prepayment fees
and other sums and expenses, pursuant to Section 3 of the Loan Agreement, regardless of whether an Event of Default has occurred.

 

3. (a) Borrower hereby represents and warrants to the Lender
that:

 

(i) No default or Event of Default will exist after
giving effect to this letter;

 

(ii) Giving effect to this letter, the representations
and warranties set forth in the Loan Agreement are, subject to the limitations set forth therein, true and correct in all material
respects as of the date hereof (except for those which expressly relate to an earlier date);

 

(iii) Each of the Guarantor and the Borrower has the
organizational power and authority to execute and deliver this letter and to perform its obligations hereunder and under the Loan
Agreement, the Note and the Guaranty giving effect to the extension of the Maturity Date effectuated hereby and has taken all necessary
organizational action to authorize the execution, delivery and performance by it of this letter; and

 

(iv) Each of the Guarantor and the Borrower has duly
executed and delivered this letter, and this letter constitutes its legal, valid and binding obligation enforceable in accordance
with its terms.

 

(b) The Guarantor hereby makes the same
representations and warranties to Lender, after giving effect to the extension of the Maturity Date set forth in Paragraph 1, as
set forth in Paragraph 3(a)(iii) and (iv) as if set forth herein mutatis mutandis.

 

4.
Each of the Borrower and the Guarantor hereby:

 

(a) Agrees that it is truly and justly indebted
to the Lender for all of the Borrower’s obligations under the Loan Agreement and the Note without defense, offset or counterclaim
of any kind whatsoever and reaffirms and admits the validity and enforceability of the Loan Agreement, the Note and the Guaranty
to which it is a party;

 

(b) Consents to the execution and delivery
of this letter by the Borrower and the Guarantor and to the terms and conditions set forth herein and any other waivers, consents
or amendments which the Lender deems appropriate;

 

    	 

    	 

    

 

Page 3

August, 2014

 

(c) Agrees to be bound by the terms and
conditions of the Loan Agreement as modified by this letter;

 

(d) Acknowledges and agrees that all obligations
of the Borrower under the Loan Agreement, as modified by this letter, are included in the obligations guaranteed by the Guarantor
pursuant to the Loan Agreement; and

 

(e) Notwithstanding any prior disregard
of any of the terms of the Loan Agreement or the Note, agrees that the terms of the Loan Agreement and Note shall be strictly adhered
to on and after the date hereof in accordance with the terms hereof.

 

5. The Borrower and the Guarantor will each execute such additional
documents as are reasonably requested by the Lender to reflect the terms and conditions of this letter and will cause to be delivered
such agreements, certificates, and other documents as are reasonably required by the Lender.

 

6. This letter shall be governed by the laws of the State of
Delaware, without giving effect to conflict of law principles.

 

Please acknowledge your agreement to the foregoing by executing
a counterpart of this letter and returning it to the undersigned.

 
	 	 
	 	Very truly yours,
	 	 
	 	JUBILANT CADISTA PHARMACEUTICALS
    INC.
	 	 
	 	 
	 	By:	/s/ Kamal Mandan
	 	 	Name: KAMAL MANDAN
	 	 	Title: Chief Financial Officer

 

	Accepted and Agreed to this
    12th	 
	Day of August, 2014	 
	 	 
	JUBILANT DRAXIMAGE INC.	 
	 	 
	By:	/s/
    Rahul Devnani	 
	 	Name: RAHUL DEVNANI	 
	 	Title: V.P. FINANCE	 
	 	 
	JUBILANT PHARMA LIMITED	 
	 	 
	By:	/s/ Hari
    S. Bhartia	 
	 	Name: HARI S. BHARTIA	 
	 	Title: DIRECTOR

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