Document:

Exhibit 4.05

 

BIOPHARMX CORPORATION

 

2014 EQUITY INCENTIVE PLAN

 

STOCK OPTION AWARD AGREEMENT

 

Unless otherwise defined herein, the terms defined in the 2014 Equity Incentive Plan will have the same defined meanings in this Award Agreement.

 

I.             NOTICE OF STOCK OPTION GRANT

 

Participant’s Name:

 

Address:

 

You have been granted an option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Award Agreement, as follows:

 

	
Date   of Grant:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Vesting   Commencement Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Total   Number of Shares Granted
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Total   Exercise Price
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Type   of Option:
    	
 
    	
o Incentive   Stock Option
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
o Nonstatutory   Stock Option
    
	
 
    	
 
    	
 
    
	
Term/Expiration   Date:
    	
 
    	
Ten   years from Date of Grant (subject to the Termination Period, below)
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
 
    

 

Subject to accelerated vesting as set forth below or in the Plan, this Option may be exercised, in whole or in part, in accordance with the following schedule:

 

One-fourth (1/4) of the Shares subject to this Option shall vest on                                 , and one thirty-sixth (1/36) of the remaining Shares subject to this Option shall vest on the last day of each full calendar month thereafter, until all such shares have vested, subject to Participant continuing to be an employee through each such date.

 

 

Termination Period:

 

This Option shall be exercisable for three months after Participant ceases to be an employee, unless such termination is due to Participant’s death or Disability, in which case this Option shall be exercisable for one year after Participant ceases to be Service Provider.  Notwithstanding the foregoing, in no event may this Option be exercised after the Term/Expiration Date as provided above.

 

II.            AGREEMENT

 

A.            Grant of Option.

 

The Administrator hereby grants to individual named in the Notice of Grant attached as Part I of this Agreement (the “Participant”) an option (the “Option”) to purchase the number of Shares, as 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 and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 13(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Award Agreement, the terms and conditions of the Plan will prevail.

 

If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code.  However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it will be treated as a Nonstatutory Stock Option (“NSO”).

 

B.            Exercise of Option.

 

(a)           Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Award Agreement; provided, however, this Option shall not be exercisable prior to the date that the Company ceases to qualify as a Subchapter S corporation pursuant to the Code.

 

(b)           Method of Exercise.  This Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice will be completed by Participant and delivered to the Company.  The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares together with any applicable withholding taxes.  This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price.

 

No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise comply with Applicable Laws.  Assuming such compliance, for income tax purposes the Exercised Shares will be considered transferred to Participant on the date the Option is exercised with respect to such Exercised Shares.

 

 

C.            Method of Payment.

 

Payment of the aggregate Exercise Price will be by any of the following, or a combination thereof, at the election of Participant:

 

1.           cash;

 

2.           check;

 

3.           consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or

 

4.           surrender of other Shares which, (i) in the case of Shares acquired from the Company, either directly or indirectly, have been owned by the Participant and not subject to a substantial risk of forfeiture for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

 

D.            Non-Transferability of Option.

 

This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by Participant.  The terms of the Plan and this Award Agreement will be binding upon the executors, administrators, heirs, successors and assigns of Participant.

 

E.            Term of Option.

 

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

 

F.             Tax Obligations.

 

1.           Withholding Taxes.  Participant agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Participant) for the satisfaction of all Federal, state, and local income and employment tax withholding requirements applicable to the Option exercise.  Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.

 

2.           Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Participant herein is an ISO, and if Participant 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 Grant Date, or (2) the date one year after the date of exercise, Participant will immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant.

 

 

G.            Entire Agreement; Governing Law.

 

The Plan is incorporated herein by reference.  The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant’s interest except by means of a writing signed by the Company and Participant.  This Award Agreement is governed by the internal substantive laws, but not the choice of law rules, of California.

 

H.            NO GUARANTEE OF CONTINUED SERVICE.

 

PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE WITH PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE PARTICIPANT’S RELATIONSHIP AS AN EMPLOYEE, CONSULTANT OR NON-EMPLOYEE DIRECTOR AT ANY TIME, WITH OR WITHOUT CAUSE.

 

[Remainder of Page Intentionally Left Blank]

 

 

By Participant’s signature and the signature of the Company’s representative below, Participant and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Award Agreement.  Participant has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Award Agreement and fully understands all provisions of the Plan and Award Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Award Agreement.  Participant further agrees to notify the Company upon any change in the residence address indicated below.

 

	
Grantee:
    	
 
    	
BIOPHARMX CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
James   Pekarsky, CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence   Address:Q3 2015 Exhibit 10.2

Exhibit 10.2

October 17, 2014

Enzo Signore

   2125 O'Nel Drive

   San Jose, CA 95131

RE: SVP & Chief Marketing Officer (Nasdaq: EGHT)

Dear Enzo,

On behalf of 8x8, Inc., a Delaware corporation (the "Company"), I am pleased to offer you the position of SVP and Chief Marketing Officer beginning November 3, 2014. The
terms of your new employment relationship with the Company will be as set forth below and will be subject to the approval of the Company's Chief Executive Officer.

1.  Position.  You will become SVP and Chief Marketing Officer.  As such, you will have responsibilities as determined by the Company's
Chief Executive Officer. Your duties and responsibilities are subject to change depending on the needs of the Company. 

2.  Compensation.

a. Base Salary.  You will be paid an annualized salary of $290,000 payable in accordance with the Company's standard payroll policies
subject to normal required withholding.  

b. Salary Review.  Your base salary will be reviewed as part of the Company's normal salary review process.

c. Expenses.  You will be reimbursed for all reasonable and necessary business expenses incurred in the performance of your duties as
provided in the Company's Employee Handbook.

3. Management Incentive Plan. You will be eligible to participate in the Company's Management Incentive Plan, with a target annual bonus of 50% of your annual base salary.  The
Management Incentive Plan will be paid (if minimum targets are met) in the calendar year in which the relevant fiscal year ends, promptly after the completion of each fiscal year's audit.  Your
eligibility will begin after 90 days of service with 8x8.

4. Stock Awards.  

 (a) Initial Equity Grants:  Subject to approval by the Board of Directors, you will receive the following awards of stock-based compensation,
with the number of shares subject to each award to be calculated by dividing the value of each award stated below based on 30 trading-day average closing price of a share of the Company's
Common Stock immediately prior to the grant date, and vesting commencing on the your start date:

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	a nonstatutory stock option valued currently at $600,000 to purchase shares of Common Stock at an exercise price per share equal to Market Value on the grant date, vesting as to
one-fourth (1/4) of the shares subject to the option on the first anniversary of your start date and as to one thirty-sixth (1/36) of the remaining shares at the end of each consecutive month
thereafter, subject to your continued service;

	RSUs of Common Stock valued currently at $300,000 which vest at a rate of one-fourth (1/4) of the shares after the 1st, 2nd, 3rd, 4th anniversary of your start date, subject to your
continued service.

	RSUs for shares of Common Stock currently valued at $150,000, which shares are subject to two vesting conditions: (A) none of such RSUs shall vest unless and until the average of the
Market Value of the Common Stock exceeds 150% of the Market Value on grant  date for at least one period of 30 consecutive trading-days during the four-year period following your start
date; and (B) if condition (A) is met, then 25% of such RSUs will vest on each consecutive anniversary of your start date, subject to your continued service.  If condition (A) is met prior to an
annual vesting date in condition (B), the unvested RSUs shall remain subject to the annual vesting requirement in condition (B).  If condition (A) is not met within the four-year period, none of
such RSUs will ever vest;

	RSUs for shares of Common Stock ("TSR Performance Shares") currently valued at $150,000, which shares will vest subject to your continued service and the performance
of the price per share of the Common Stock relative to the NASDAQ Composite Index (^IXIC) over the following three measurement periods:

(A)25% of the TSR Performance Shares can be earned between the grant date and March 31, 2016;

(B)50% of the TSR Performance Shares can be earned between the grant date and March 31, 2017;

(C)25% of the TSR Performance Shares can be earned between the grant date and March 31, 2018;

where in each such measurement period, (1) if the performance return on the price per share of Common Stock exceeds the performance return on the NASDAQ Composite Index,
(which shall be determined by subtracting the percentage return on the NASDAQ Composite Index from the percentage return on the price per share of the Common Stock), then all of the
TSR Performance Shares for such measurement period will be deemed earned and will vest; (2) if the performance return on the price per share of Common Stock is more than 50% lower
than the performance return on the NASDAQ Composition Index, then none of the TSR Performance Shares for such measurement period will be deemed earned or vest; and (3) if the
performance return on the price per share of Common Stock is between 0% and 50% lower than the performance return on the NASDAQ Composite Index, then the number of TSR
Performance Shares deemed earned and vesting for such measurement period will be reduced by 2% for each 1% by which the performance return on the NASDAQ Composite Index
exceeds the performance return on the Common Stock. The performance return on each of the price per share of Common Stock and the NASDAQ Composite Index will be determined in the
manner described in SEC Regulation S-K, Item 201(e)(1), which assumes a dollar amount invested in

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each at the applicable price of the Common Stock and the NASDAQ Composite Index
at the beginning of the measurement period, and which shall be compared with the dollar value of the investment at the end of the measurement period based on the 30-day trading average
price of each of the Common Stock and the NASDAQ Composite Index prior to and through the grant date and the last trading day of each of the relevant measurement
periods, as the case may be.

Ex.1 - Assume that for the period from the grant date through March 31 2016 the beginning and ending prices per share of Common Stock (determined as provided above)
are $9.50 and $12.00, respectively, and the beginning and ending ^IXIC are 3,660 and 3,750, respectively.  Assume no dividends are paid by the Company during the period.  Therefore,
$100 invested in Common Stock at the beginning of the period is worth $126 at the end, a 26% return, and $100 invested in ^IXIC at the beginning of the period is worth $103 at the end, a
return of 3%.  Therefore, the performance return on the price per share of Common Stock exceeds the performance return on the NASDAQ Composite Index so if you are in continued service
to the Company on March 31, 2016 you will earn and vest as to 25% of the TSR Performance Shares.

Ex.2 - Assume that for the period from the grant date through March 31, 2017, the beginning and ending prices per share of Common Stock (determined as provided
above) are $9.50 and $8.00, respectively, and the beginning and ending ^IXIC are 3,660 and 3,250, respectively.  Assume no dividends are paid by the Company during the period.
Therefore, $100 invested in Common Stock at the beginning of the period is worth $84 at the end, (-16%) return, and $100 invested in ^IXIC at the beginning of the period is worth $89 at the
end, (-11%) return.  The performance return on the price per share of Common Stock compared with the ^IXIC is (-5%) worse than the performance return on the NASDAQ Composite Index.
Therefore, the total number of TSR Performance Shares for the period is reduced by 10% (5% x 2) and 90% of the 50% of the TSR Performance Shares eligible to be earned during such
measurement period, or 45% of the total number of TSR Performance Shares will be earned and vest, if you were in continuous service to the Company through March 31, 2017.

(b) Share Retention:  You agree to acquire and retain an ownership interest in Common Stock which is equal in value to one times the amount of your base salary in Paragraph
2(a).  Shares counted for this purpose will consist of shares of Common Stock you own directly by whatever means acquired, shares under unvested RSUs that are subject only to time-based
vesting, shares held in a 401(k) or similar plan, and shares acquired under the Company's Employee Stock Purchase Plan.  You will have five years from your start date in which to meet this
stock ownership threshold.  If at any time thereafter, while you remain SVP and Chief Marketing Officer of the Company, your aggregate share ownership as defined in this Paragraph 4(b)
should fall below the threshold, you agree to retain shares as they vest and you acquire them, and not to sell any of your shares of Common Stock, until your share ownership exceeds the
threshold.  In the event of a termination of your employment, or a Corporate Transaction, this Paragraph 3(b) shall become inapplicable.

(c) Corporate Transaction:  In the event that you are subject to an Involuntary Termination (as defined below) within one year following a Corporate Transaction:

	if the condition in Paragraph 4(a)(iii) has been met as of the closing date of the Corporate Transaction (based on the price per share of Common Stock being paid in such
transaction), vesting shall accelerate with respect to the percentage of then

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unvested RSUs still subject to the condition in Paragraph 4(a)(iii)(B), which equals 100% times the quotient of the
number of months from the grant date to such closing date divided by 48, and the remainder of the unvested RSUs will continue to vest in accordance with the original vesting schedule,
subject only to your continued service subsequent to the Corporate Transaction; 

	any TSR Performance Shares for which the performance conditions in Paragraph 4(a)(iv) have been met as of the closing date of the Corporate Transaction (based on the price per
share of Common Stock being paid in such transaction) shall be settled by delivery of the corresponding number of shares of Common Stock, and all other unvested TSR Performance
Shares shall vest over the remainder of the original period expiring March 31, 2018, subject only to your continued service subsequent to the Corporate Transaction with no further
performance conditions; and

	all remaining unvested options and RSUs as of the closing date of the Corporate Transaction shall continue to vest thereafter subject only to your continued service and if, your
employment is terminated without Cause (as defined below) within 12 months following a Corporate Transaction of the Company, all of your remaining unvested options and RSUs granted
under Paragraph 4 will vest in full.

(d) "Involuntary Termination" means any of the following events:  (i) without your express written
consent, a significant reduction of your duties, position or responsibilities relative to your duties, position or responsibilities in effect immediately prior to such reduction; (ii) without your
express written consent, a material reduction by the Company (or its successor) of your base salary as in effect immediately prior to such reduction; (iii) without your express written consent,
a material reduction by the Company (or its successor) in the kind or level of employee benefits to which you were entitled immediately prior to such reduction with the result that your overall
benefits package is significantly reduced; (iv) without your express written consent, your relocation to a facility or a location more than 25 miles from our San Jose, CA.  location immediately
prior to such relocation; or (v) any purported termination of you other than for Cause (as defined below); and 

(e)"Cause" means:  (i) any act of personal dishonesty taken by you in connection with your
responsibilities in your service to the Company which is intended to result in your personal enrichment; (ii) your conviction of a felony; (iii) any act by you that constitutes material misconduct
and is injurious to the Company; (iv) any breach of fiduciary duty to the company, (v) a material breach of any agreement with the company, or (vi) your initiating litigation against the
company.

5.  Benefits.  The Company will make available to you standard vacation, medical and dental insurance benefits.  The Company will also make available to you a 401(k) Plan.
You are eligible for benefits on the first day of your employment.  Medical benefits will start on your date of hire and your dental will start on the first day of the month following your date of
hire. You will be eligible to participate in the employee stock purchase plan upon enrollment by Feb 1st or August 1st of any year. 

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6.  Standard Confidentiality and Inventions Assignment Agreement.  Like all Company employees, you will be required to sign the
Company's standard Confidential Information and Inventions Assignment Agreement (the "Confidentiality Agreement") relating to protection of the Company's proprietary and
confidential information and assignment of inventions.

7.  At-Will Employment.  You will continue to be an employee-at-will, meaning that either you or the Company may terminate your employment at any time, without notice, for any
reason or no reason without further obligation or liability to either party.  Such termination will not affect the parties' respective obligations under the Confidentiality Agreement.  You will
receive the Company's Employee Handbook with all of our policies and procedures on your first day of employment.

8.  No Outside Consulting.  You agree to not sit on any board of directors, or do any outside consulting work for any other person or company while employed
full-time at the Company other than with the advance written approval of the Chief Executive Officer of the Company.

9.  Background Check.  This offer letter is contingent upon the results of a background check and the completion of your reference checks and may be rescinded at anytime in
the event the background check fails to meet the employment qualifications of the Company.

10. Expiration Date.  If not accepted, this offer will expire on October 24, 2014

11. Start Date.  Your new position will be become effective as of November 3, 2014.

Please indicate your acceptance by signing and returning a copy of the signed letter to me via e-mail or facsimile at 408-436-6417. 

Congratulations on your new assignment!

Sincerely,

8X8, INC.

By:  ____________________________

        Vikram Verma

         Chief Executive Officer

ACCEPTED:

_____________________________

   Enzo Signore

Date:  ________________________

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