Document:

Exhibit 10.2

 

ASSEMBLY BIOSCIENCES, INC.

2018 Stock Incentive Plan

NOTICE OF STOCK OPTION GRANT

 

 

Grant Number                     

[Name]                     

 

[Address]                

 

 

You have been granted an option to purchase
Common Stock of Assembly Biosciences, Inc. (the "Company"), as follows:

 

 

	Date of Grant	 	[●]
	 	 	 
	Vesting Commencement Date	 	[●]
	 	 	 
	Exercise Price per Share	 	$[●]
	 	 	 
	Total Number of Shares Granted	 	[●]
	 	 	 
	Total Exercise Price	 	$[●]
	 	 	 
	Type of Option:	 	           Incentive
    Stock Option
	 	 	           Nonstatutory
    Stock Option
	 	 	 
	Term/Expiration Date:	 	10 years
	 	 	 
	Vesting Schedule:	 	[●]  [1/4 to vest on the first anniversary of the vesting commencement date; and thereafter 1/36 of remaining option shares to vest each month thereafter for 36 months; in each case subject to your Continuous Services through each vesting date and otherwise in accordance with the terms and conditions of the Plan (as defined below) and the Stock Option Agreement attached hereto. Shares to vest on any vesting date shall be rounded down to nearest whole number. Monthly installments shall take into effect prior rounding so that each monthly installment including the last installment is approximately the same. On the fourth anniversary of the vesting commencement date, assuming Continuous Service, the options shall be fully vested. Upon the termination of your employment by the Company for any reason other than for Cause within 6 months following the occurrence of a Corporate Transaction, all unvested options shall immediately vest.]
	 	 	 
	Termination Period:	 	Vested option may be exercised for up to 90 days after termination of Continuous Service [, unless otherwise provided in your employment agreement].  By your signature and the signature of the Company's representative below, you and the Company agree that this option is granted under and governed by the terms and conditions of the Assembly Biosciences, Inc. 2018 Stock Incentive Plan (the “Plan”) and the Stock Option Agreement, all of which are attached and made a part of this document. Capitalized terms used in this Notice of Stock Option Grant and not otherwise defined herein shall have the meaning assigned to such term in the Plan.

 

 

Dated:                                                     

 

 

	OPTIONEE:	 	ASSEMBLY BIOSCIENCES, INC.	 
	 	 	 	 	 
	 	 	By:	 	 
	[Name]	 	 	 	 
	 	 	Name:	 	 
	 	 	 	 	 
	 	 	Title:	 	 

 

     

     

    

ASSEMBLY BIOSCIENCES, INC.

 

STOCK OPTION AGREEMENT

 

 

1.       Grant
of Option. Assembly Biosciences, Inc. (the "Company"), hereby grants to the Optionee named in the Notice of Grant
(the "Optionee") an option (the "Option") to purchase a total number of shares of Common Stock (the "Shares")
set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the "Exercise Price")
subject to the terms, definitions and provisions of the Assembly Biosciences, Inc. 2018 Stock Incentive Plan (the "Plan")
adopted by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan
shall have the same defined meanings in this Option.

 

If designated an Incentive Stock Option, this
Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code, or any successor provision.

 

2.       Exercise
of Option. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of
Grant and with the provisions of Sections 10 and 11 of the Plan as follows:

 

(a)        Right
to Exercise.

 

(i)        This
Option may not be exercised for a fraction of a share.

 

(ii)       In
no event may this Option be exercised after the date of expiration of the term of this Option as set forth in the Notice of Grant.

 

(b)        Method
of Exercise. This Option shall be exercisable by written notice (in the form attached hereto as Exhibit A) which
shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such
other representations and agreements as to the holder's investment intent with respect to such shares of Common Stock as may be
required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by the Optionee and shall be
delivered in person, by certified mail or electronic transmission (with confirmation of receipt) to the Secretary of the Company.
The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised upon receipt
by the Company of such written notice accompanied by the Exercise Price.

 

Notwithstanding anything to the contrary contained
herein, you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under
the Securities Act of 1933, as amended (the “Securities Act”), or, if such shares of Common Stock are not then so registered,
the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities
Act. The exercise of your option also must comply with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and regulations.
No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant
provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance,
for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised
with respect to such Shares.

 

    1 

     

    

 

3.       Method
of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the
Optionee:

(i)       cash;
or

 

(ii)       check;
or

 

(iii)       surrender
of other shares of Common Stock of the Company, or attestation of ownership of such shares, as described in Section 7(b)(iv) of
the Plan; or

 

(iv)       “net
exercise” as described in Section 7(b)(vi) of the Plan; or

 

(v)       a
broker-assisted exercise as described in Section 7(b)(v) of the Plan; or

 

(vi)       promissory
note as described in Section 7(b)(iii) of the Plan to the extent not prohibited by applicable law; or

 

(vii)       any
combination of the foregoing methods of payment.

 

4.       Nontransferability
of Option. This Option may not be transferred in any manner other than as set forth in the Plan. The terms of this Option shall
be binding upon the executors, administrators, heirs, successors transferees and assigns of the Optionee as if such persons were
the Optionee.

 

5.       Termination
of Relationship. In the event of termination of Optionee's employment or consulting relationship with the Company, Optionee
may, to the extent otherwise so entitled at the date of such termination (the "Termination Date"), exercise this Option
during the Termination Period set out in the Notice of Grant. To the extent that Optionee was not entitled to exercise this Option
at the date of such termination, or if Optionee does not exercise this Option within the time specified herein, the Option shall
terminate.

 

6.       Term
of Option. This Option may be exercised only within the term set out in the Notice of Grant and the Plan, and may be exercised
during such term only in accordance with the Plan and the terms of this Option.

 

7.       Disability
of Optionee. Notwithstanding the provisions of Section 5 above, in the event of termination of Optionee's consulting or employment
relationship as a result of Optionee’s total and permanent disability (as defined in Section 22(e)(3) of the Code or any
successor provision), Optionee may, but only within twelve (12) months from the date of termination of employment or consulting
relationship (but in no event later than the date of expiration of the term of this Option as set forth in the Notice of Grant),
exercise this Option to the extent Optionee was entitled to exercise it at the date of such termination. To the extent that Optionee
was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option (which Optionee
was entitled to exercise) within the time specified herein, the Option shall terminate.

 

    2 

     

    

 

8.       Death
of Optionee. In the event of the death of Optionee during the term of this Option and, with respect to a consultant, during
such consultant’s continuing consulting relationship with the Company or within 90 days of termination of consultant's relationship
with the Company and, with respect to an employee, during such employee’s employment relationship with the Company or within
90 days of termination of such employee's relationship with the Company, the Option may be exercised at any time within twelve
(12) months following the date of termination (but in no event later than the date of expiration of the term of this Option as
set forth in the Notice of Grant), by Optionee's estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent of the right to exercise that Optionee was entitled to at the date of death.

 

9.       Taxation
Upon Exercise of Option. Pursuant to Section 9 of the Plan, the Company may require the Optionee to pay to the Company amounts
necessary to satisfy any applicable Company withholding obligations. The Optionee shall satisfy Optionee’s tax withholding
obligation arising upon the exercise of this Option by one or some combination of the following methods: (i) by cash payment, or
(ii) out of Optionee's current compensation, or (iii) if permitted by the Board or Committee, in its discretion, by surrendering
to the Company already-owned Shares or by directing the Company to withhold shares otherwise to be transferred to the Optionee,
in each case in accordance with Section 9(b) of the Plan. For this purpose, the fair market value of the Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is to be determined (the "Tax Date").

 

If the Optionee is subject to Section 16
of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (an "Insider"), any surrender of previously
owned Shares to satisfy tax withholding obligations arising upon exercise of this Option must comply with the applicable provisions
of Rule 16b-3 promulgated under the Exchange Act ("Rule 16b-3") and shall be subject to such additional conditions or
restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect
to Plan transactions.

 

All elections by an Optionee to have Shares
withheld to satisfy tax-withholding obligations shall be made in writing in a form acceptable to the Committee and shall be subject
to the following restrictions:

 

		(1)	the election must be made on or prior to the applicable Tax Date;

 

		(2)	once made, the election shall be irrevocable as to the particular Shares of the Option as to which the election is made;

 

		(3)	all elections shall be subject to the consent or disapproval of the Board or Committee;

 

		(4)	if the Optionee is an Insider, the election must comply with the applicable provisions of Rule 16b-3 and shall be subject to
such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of
the Exchange Act with respect to Plan transactions.

 

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10.       Tax
Consequences. Set forth below is a brief summary as of the date of this Option of some of the federal tax consequences of exercise
of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT
TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

(a)       Exercise
of ISO. If this Option qualifies as an ISO, there will be no regular federal income tax liability (or state income tax liability
in most states) upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date
of exercise over the Exercise Price will be treated as an item of adjustment to the alternative minimum tax for federal tax purposes
in the year of exercise and may subject the Optionee to the alternative minimum tax.

 

(b)       Exercise
of Nonstatutory Stock Option. If this Option does not qualify as an ISO, there may be a regular federal income tax liability
and a state income tax liability upon the exercise of the Option. The Optionee will be treated as having received compensation
income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of
exercise over the Exercise Price and the Company will qualify for a deduction in the same amount, subject to the requirement that
the compensation be reasonable. If Optionee is an employee, the Company will be required to withhold from Optionee's compensation
or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

 

(c)        Disposition
of Shares. In the case of an NSO, if Shares are held for at least one year, any gain realized on disposition of the Shares
will be treated as long-term capital gain for federal income tax purposes. In the case of an ISO, if Shares transferred pursuant
to the Option are held for at least one year after exercise and are disposed of at least two years after the Date of Grant, any
gain realized on disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes. If Shares
purchased under an ISO are disposed of within one-year after exercise or within two years after the Date of Grant, any gain realized
on such disposition will be treated as compensation income (taxable at ordinary income rates) in an amount equal to the excess
of the lesser of (1) the fair market value of the Shares on the date of exercise, or (2) the sale price of the Shares over the
Exercise Price paid for those shares. The Company will also be allowed a deduction equal to any such amount recognized, subject
to the requirement that the compensation be reasonable.

 

(d)        Notice
of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date
of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing
of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation
income recognized by the Optionee from the early disposition by payment in cash or out of the current earnings paid to the Optionee.

 

11.       Successors
and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement
shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors, transferees and assigns.

 

    4 

     

    

 

12.       Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or by the Company forthwith to the Company's
Board of Directors or the Committee that administers the Plan, which shall review such dispute at its next regular meeting. The
resolution of such a dispute by the Board or committee shall be final and binding on the Company and on Optionee.

 

13.       Governing
Law; Severability. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding
that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal
or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

14.       Notices.
Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon receipt or three
(3) days after deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to in the case of
the Company at its corporate headquarters and in the case of Optionee at the last address Optionee provided to the Company. Notwithstanding
the foregoing, the Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and
this option by electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to
receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic
system established and maintained by the Company or another third party designated by the Company.

 

15.       Option
Not a Service Contract.

 

(a)       Your
Continuous Service with the Company or a Related Entity is not for any specified term and may be terminated by you or by the Company
or a Related Entity at any time, for any reason, with or without cause and with or without notice. Nothing in this Agreement (including,
but not limited to, the vesting of your Option pursuant to the schedule set forth in the Notice of Stock Option Grant or the issuance
of the shares upon exercise of your option), the Plan or any covenant of good faith and fair dealing that may be found implicit
in this Agreement or the Plan shall: (i) confer upon you any right to continue in the employ of, or affiliation with, the Company
or a Related Entity; (ii) constitute any promise or commitment by the Company or a Related Entity regarding the fact or nature
of future positions, future work assignments, future compensation or any other term or condition of employment or affiliation;
(iii) confer any right or benefit under this Agreement or the Plan unless such right or benefit has specifically accrued under
the terms of this Agreement or Plan; or (iv) deprive the Company of the right to terminate you at will and without regard to any
future vesting opportunity that you may have.

 

(b) By accepting this Option, you acknowledge
and agree that the right to continue vesting in the Option pursuant to the schedule set forth in Notice of Stock Option Grant is
earned only by continuing as an employee, director or consultant at the will of the Company (not through the act of being hired,
being granted this option or any other award or benefit) and that the Company has the right to reorganize, sell, spin-out or otherwise
restructure one or more of its businesses or Related Entity at any time or from time to time, as it deems appropriate (a “reorganization”).
You further acknowledge and agree that such a reorganization could result in the termination of your Continuous Service, or the
termination of Related Entity status of your employer and the loss of benefits available to you under this Agreement, including
but not limited to, the termination of the right to continue vesting in the option. You further acknowledge and agree that this
Agreement, the Plan, the transactions contemplated hereunder and the vesting schedule set forth herein or any covenant of good
faith and fair dealing that may be found implicit in any of them do not constitute an express or implied promise of continued engagement
as an employee or consultant for the term of this Agreement, for any period, or at all, and shall not interfere in any way with
your right or the Company’s right to terminate your Continuous Service at any time, with or without Cause and with or without
notice.

 

    5 

     

    

 

16.       Further
Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary
to carry out the purposes and intent of this Agreement.

 

17.       2018
Stock Incentive Plan. This Option shall be subject to and governed by the terms and conditions of the Plan in all respects,
and to the extent of any inconsistency between this Option and the terms of the Plan, the terms of the Plan will control. Optionee
acknowledges receipt of a copy of the Plan and represents that he is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions
of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board
or Committee upon any questions arising under the Plan or this Option.

 

18.       Other
Documents. You acknowledge receipt of the Company’s insider trading policy and agree to comply with its terms.

 

 

 

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EXHIBIT A

 

ASSEMBLY BIOSCIENCES, INC.

 

EXERCISE NOTICE

 

 

Assembly Biosciences, Inc.

___________________________

___________________________

Attention: Secretary

 

1.       Exercise
of Option. Effective as of today, the undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase
_____________ shares of the Common Stock (the "Shares") of Assembly Biosciences, Inc. (the "Company") under
and pursuant to the Company's 2018 Stock Incentive Plan, as amended (the "Plan") and the Notice of Stock Option Grant
dated __________, 20___ with its attached Stock Option Agreement (the "Option Agreement"). The purchase price for the
Shares shall be $__________ as required by the Option Agreement. Optionee herewith delivers to the Company the full Exercise Price
for the Shares.

 

2.       Representations
of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions. Optionee represents that Optionee is purchasing the Shares for Optionee's
own account for investment and not with a view to, or for sale in connection with, a distribution of any of such Shares.

 

3.       Rights
as Stockholder. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to the optioned Shares, notwithstanding the exercise of the Option. The Company
shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised.

 

4.       Tax
Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee's purchase or
disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in
connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company for any tax advice.

 

5.       Entire
Agreement. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan and the Option
Agreement and any Investment Representation statement executed and delivered to Company by Optionee shall constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and is governed by Delaware law except for that body of law pertaining to conflict of laws.

 

     

     

    

 

	Submitted by:	 	Accepted by:	 
	 	 	 	 	 	 
	OPTIONEE:	 	Assembly Biosciences, Inc.	 
	 	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	 	 
	 	 	 	Name:	 	 
	 	 	 	 	 	 
	 	 	 	Title:	 	 
	 	 	 	 	 	 
	Address:	 	 	Address:Exhibit 10.3

 

ASSEMBLY BIOSCIENCES, INC.

2018 STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD NOTICE

 

                         

Grant Number

[Name]                         

 

[Address]                    

 

You have
been granted Restricted Stock Units (“RSUs”) of Assembly Biosciences, Inc. (the “Company”),
as follows:

 

	Effective Date:	 	[●]
	 	 	 
	Vesting Commencement Date:	 	[●]
	 	 	 
	Total Number of RSUs Granted:	 	[●]
	 	 	 
	Vesting Schedule:	 	[●]  [performance milestones] [time-vesting] [combination] [One-fourth of the granted RSUs to vest on the first anniversary of the Vesting Commencement Date; One-fourth of the granted RSUs to vest on the second anniversary of the Vesting Commencement Date; One-fourth of the granted RSUs to vest on the third anniversary of the Vesting Commencement Date; One-fourth of the granted RSU to vest on the fourth anniversary of the Vesting Commencement Date (each such date, a “Vesting Date”).]  RSUs to vest on any vesting date shall be rounded down to nearest whole number. Each installments shall take into effect prior rounding so that each annual installment including the last installment is approximately the same.  [On the fourth anniversary of the Vesting Commencement Date, assuming Continuous Service through each Vesting Date, the RSUs shall be fully vested.  Upon the termination of your employment by the Company for any reason other than for Cause within 6 months following the occurrence of a Corporate Transaction, all unvested RSUs shall immediately vest.]
	 	 	 
	Payment Date:	 	The Company shall deliver, to you one Share (as defined in the Plan) in respect of each vested RSU.  Delivery shall be made as soon as practicable following each vesting date and in no event later than 30 days following the applicable vesting date (the date of delivery, the “Payment Date”).

 

     

     

    

  

By your signature and the signature
of the Company’s representative below, you and the Company agree that this RSU is granted under and governed by the terms
and conditions of the Assembly Biosciences, Inc. 2018 Stock Incentive Plan (the “Plan”)
and the Restricted Stock Unit Agreement, all of which are attached and made a part of this document. Capitalized terms used in
this Notice of Restricted Stock Unit Award and not otherwise defined herein shall have the meaning assigned to such term in the
Plan.

 

	Dated:  	 	 	 	 	 
	 	 	 	 	 	 
	GRANTEE:	 	ASSEMBLY BIOSCIENCES, INC.	 
	 	 	 	 	 	 
	 	 	By:	 	 
	[Name]	 	 	Name:	Derek A. Small	 
	 	 	 	Title:	Chief Executive Officer	 
	 	 	 	 	 	 

 

     

     

    

ASSEMBLY BIOSCIENCES, INC. 

RESTRICTED STOCK UNIT AWARD AGREEMENT

UNDER THE 2018 STOCK INCENTIVE PLAN

 

 

THIS RESTRICTED
STOCK UNIT AWARD AGREEMENT (this “Award Agreement”) is made and entered into by and between Assembly Biosciences,
Inc. (the “Company”) and the individual named in the Restricted Stock Unit Award Notice (the “Grantee”)
under the Company’s 2018 Stock Incentive Plan (the “Plan”). The Award Notice also establishes the
Effective Date of the Award, the number of Restricted Stock Units awarded, vesting conditions, and the Payment Date of the Award.

 

WHEREAS, the Grantee is expected to provide
valuable services to the Company;

 

WHEREAS, the Company considers it desirable
and in the best interests of the Company that the Grantee be given an opportunity to acquire a proprietary interest in the Company
as an incentive to advance the interests of the Company and to perform future services that will contribute materially to the successful
operation of the Company; and

 

WHEREAS,
the Company, acting through the Board of Directors of the Company (the “Board”) or (ii) the
Committee appointed by the Board under the Plan (the “Committee”), desires to
grant the Grantee a Restricted Stock Unit Award measured in shares of common stock of the Company (the “Common Stock”),
in accordance with the Plan. Capitalized terms used herein which are not otherwise defined herein shall have the meanings ascribed
to them under the Plan.

 

NOW, THEREFORE, in consideration of the
premises, it is agreed by and between the parties as follows:

 

1.       Grant
of Restricted Stock Unit Award. The Company awards the Grantee Restricted Stock Units in a number that is specified
in the Award Notice provided to the Grantee. The Award is subject to the vesting, payment and other provisions of this Award Agreement,
the Award Notice and the Plan. Each Restricted Stock Unit represents one (1) Share of Common Stock of the Company. The Company
will account for the Restricted Stock Units in a bookkeeping account on the Grantee’s behalf until they become payable or
are forfeited. The number of Restricted Stock Units shall be adjusted if the Common Stock is split, combined, if stock dividends
are paid on Common Stock, or upon a similar event in the same manner that the Common Stock
is adjusted.

 

2.       Dividend
Equivalents. For each Restricted Stock Unit that is granted and credited to the Grantee’s account, the Grantee’s
account will also be credited with a Dividend Equivalent Rights in an amount equal to any cash dividends paid by the Company upon
one Share of Common Stock after the Effective Date and before the Payment Date (as provided in the Award Notice) for the Restricted
Stock Unit, subject to the vesting and other provisions of this Award Agreement and the Award Notice.

 

     

     

    

 

3.       Vesting.
The Restricted Stock Units (and Dividend Equivalent Rights associated with the Restricted Stock Units) shall be unvested and shall
be subject to the restrictions set forth in this Award Agreement and the Award Notice. Unless sooner forfeited in accordance with
Section 5, the Restricted Stock Units and Dividend Equivalent Rights associated with the Restricted Stock Unit shall vest as set
forth in the Grantee’s Award Notice.

 

4.       Settlement
of Vested Restricted Stock Units and Restricted Dividend Equivalents. If any of the Restricted Stock Units vest on a Vesting
Date, the Company shall settle such Restricted Stock Units (the “Vested Restricted Stock Units”) and Dividend
Equivalent Rights attributable to such Vested Restricted Stock Units (“Vested Dividend Equivalents”) on the
Payment Date established in the Award Notice (the “Payment Date”) by delivering to the Grantee (a)  shares
of Common Stock of the Company and (b) cash, determined as follows:

 

		(a)	Number of Shares of Common Stock. The Company will determine the value as of the Payment Date of the Vested Restricted
Stock Units and the Vested Dividend Equivalent Rights (together, the “Total Amount”). For this purpose, the
Vested Dividend Equivalents shall be valued at their original value and shall not be increased or decreased by an interest or earnings
factor. The Total Amount will be reduced by any tax withholding under the procedure in Section 6 below (the amount after the reduction
is the “Net Amount”). The Net Amount will be divided by the value of one (1) Common Share of the Company as
of the Vesting Date, and the resulting whole number (without remainder) shall be the number of shares of Common Stock that will
be delivered to the Grantee, and

 

		(b)	Cash. The remainder resulting from the division in (a) above to determine the number of shares of Common Stock will
be the dollar amount of the cash payable to the Grantee, and such amount shall be paid to the Grantee by check.

 

The Vested Restricted Stock Units and Vested
Dividend Equivalents will be settled by the Company within thirty (30) days of the applicable Vesting Date.

 

5.       Forfeiture
of Restricted Stock Units (and Dividend Equivalent Rights Attributable to Restricted Stock Units). In the event of Termination
of Employment of the Grantee from the Company for any reason (including Disability), any Restricted Stock Units and Dividend Equivalent
Rights attributable to such Restricted Stock Units that were not already vested on the termination of Employment shall be forfeited
on that date.

 

6.       Certain
Tax Matters. The Grantee acknowledges that the Grantee understands the federal, state and local income, employment and foreign
(if applicable) tax consequences of the Restricted Stock Unit Award, and the issuance, vesting and forfeiture provisions relating
to the Restricted Stock Unit Award.

 

The Grantee understands that, at the time
that the Grantee realizes any compensation income in respect of the Restricted Stock Unit Award, the Company will be required to
withhold federal, state and local income and employment taxes on the full amount of the compensation income realized by the Grantee,
and if the Grantee is located outside of the United States, the Company may be required to withhold to meet tax, employment, or
other obligations imposed by the tax jurisdiction that may be applicable to the Grantee. It is understood that all matters with
respect to the total amount of taxes to be withheld in respect of such compensation income shall be determined by the Board (or
the Committee) in its reasonable discretion. It is understood that although the Company may pay withheld amounts for the taxing
jurisdiction that may be credited to the Grantee against taxes due by the Grantee, the Grantee is responsible for payment of all
taxes due as a result of compensation arising under this Award Agreement.

 

     

     

    

 

The Board (or the Committee) may make such
provisions and take such steps as it may deem necessary or appropriate for the withholding of taxes by the Company on compensation
income the Grantee realizes. The Company shall accept payment by the Grantee of an amount in cash for all or part of the
withholding obligation of the Company on the compensation income, so that the payment(s) to the Grantee under this Award Agreement
are not reduced for tax withholding to the extent of the payment. Such payment by the Grantee must be made to the Company by the
time that the Company is required to pay the withholding to the taxing authority, but in any event not later than thirty (30) days
from the Payment Date. If the Grantee does not make a payment for the full withholding obligation, the Company shall withhold part
of the payment due for redemption of the Vested Restricted Stock Units and Vested Dividend Equivalent Rights in the amount needed
by the Company to meet its withholding obligations, with the result that the payment amount for the Vested Restricted Stock Units
and Vested Dividend Equivalent Rights will be reduced as provided in Section 4(a) above by the amount needed to meet the Company’s
withholding obligations.

 

7.       Rights
Prior to Vesting. The Restricted Stock Units and Dividend Equivalent Rights represent a right to payment from the Company if
the conditions of this Award Agreement are met and do not give the Grantee ownership of any Common Stock prior to delivery as provided
in Section 4. No assets have been set aside by the Company or otherwise to pay the amounts promised by this Award Agreement, the
right to payment is unsecured, and the Grantee is a general creditor of the Company for payment under this Award Agreement.

 

8.       Investment
Representation. The Grantee represents and warrants to the Company that the Grantee has read this Award Agreement carefully,
and to the extent believed necessary, has discussed this Award Agreement and its impact and limitations upon the Grantee with counsel.

 

9.       Transferability.
The right to payment under this Award Agreement may not be sold, exchanged, transferred, pledged, hypothecated, encumbered or otherwise
disposed of except as provided in the Plan. The Company shall have the right to assign to any of its affiliates any of its rights,
or to delegate to any of its affiliates any of its obligations under this Award Agreement.

 

10.       Binding
Effect. This Award Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs,
executors, administrators, successors and assigns.

 

11.       Gender
and Number. All terms used in this Award Agreement shall be deemed to refer to the masculine, feminine, neuter, singular or
plural as the context may require.

 

     

     

    

 

12.       Terms
and Conditions of Plan. The terms and conditions included in the Plan and the Award Notice are incorporated by reference herein,
and to the extent that any conflict may exist between any term or provision of this Award Agreement and any term or provision of
the Plan as in effect from time to time, such term or provision of the Plan shall control.

 

13.       Certain
Remedies. Without intending to limit the remedies available to the Company, the Grantee agrees that damages at law will be
an insufficient remedy in the event the Grantee violates the terms of this Award Agreement. The Grantee agrees that the Company
may apply for and have injunctive or other equitable relief in any court of competent jurisdiction to restrain the breach or threatened
breach of, or otherwise specifically to enforce, any of the provisions hereof.

 

14.       Waiver.
The waiver by either party of compliance with any provision of this Award Agreement by the other party shall not operate or be
construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by such party of a provision
of this Award Agreement.

 

15.       No
Restriction on Right of Company to Effect Corporate Changes. Neither the Plan nor this Award Agreement shall affect in
any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the capital structure or business of the Company, or any merger or consolidation of the Company,
or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference
stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable
for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the assets or
business of the Company, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

16.       Entire
Agreement. This Award Agreement (including the Award Notice, and the Plan which are incorporated herein by reference and all
additional riders incorporated herein) sets forth all of the promises, agreements, conditions and understandings between the parties
hereto with respect to the Award, and there are no promises, agreements, conditions, understandings, warranties or representations,
oral or written, express or implied, between them with respect to the Restricted Stock Unit Award other than as set forth therein
or herein. This Award Agreement supersedes and replaces any and all prior agreements between the parties hereto with respect to
Restricted Stock Units and Dividend Equivalent Rights. This Award Agreement is, and is intended by the parties to be, an integration
of any and all prior agreements or understandings, oral or written, with respect to Restricted Stock Units and Dividend Equivalent
Rights. No modification, amendment or waiver of any of the provisions of this Award Agreement shall be effective unless approved
in writing by both parties.

 

17.       Invalid
or Unenforceable Provision. The invalidity or unenforceability of any particular provision of this Award Agreement shall not
affect the other provisions hereof, and this Award Agreement shall be construed in all respects as if such invalid or unenforceable
provision was omitted.

 

     

     

    

 

18.       Governing
Law. This Award Agreement shall be construed and enforced in accordance with the laws of Delaware, without giving effect to
principles of conflicts of laws.

 

19.       Miscellaneous.

 

(a)       Neither
the granting or vesting of the Restricted Stock Units and Dividend Equivalent Rights nor
any other provision of this Award Agreement shall be construed as conferring upon the Grantee any right to continue in the employment
of the Company, or as interfering with or restricting in any way the right of the Company to terminate such employment at any time.

 

(b)       The
Company, the Board (or the Committee) and any employees or agents thereof are relieved from any liability for the non-issuance
or non-transfer, or any delay in the issuance or transfer, of any Common Stock which results from the inability of the Company
to obtain, or in any delay in obtaining, from each regulatory body having jurisdiction all requisite authority to issue or transfer
the Common Stock in satisfaction of this Award Agreement if counsel for the Company deems such authorization necessary for the
lawful issuance or transfer of any of the Common Stock.

 

(c)       No
Common Stock shall be sold or otherwise disposed of in violation of any federal or state securities law or regulations.

 

(d)       All
decisions of the Board (or the Committee) with respect to the interpretation, construction and application of the Plan and/or this
Award Agreement shall be conclusive and binding upon the Grantee and all other persons.

 

(e)       This
Award Agreement has been drafted with the intent that payments (and the right to payments) under it are exempt from or comply with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder applicable to
nonqualified deferred compensation. This Award Agreement shall be interpreted in a manner consistent with such intent.

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