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  EXHIBIT
10.13

 

WEED, INC.

RESTRICTED STOCK AGREEMENT

 

THIS
RESTRICTED STOCK AGREEMENT (“Agreement”)
is between WEED, Inc. (“Corporation”),
and (“Grantee”),
as of (“Date of
Grant”).

 

RECITALS

 

A.           The
Corporation desires to enter into this Agreement to provide an
incentive to Grantee, whose services are considered unusually
valuable by providing him an opportunity to own additional stock in
the Corporation.

 

B.           The
Corporation believes that entering into this Agreement with Grantee
is consistent with those purposes.

 

NOW,
THEREFORE, in consideration of the mutual covenants and conditions
in this Agreement and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the
Corporation and Grantee agree as follows:

 

AGREEMENT

 

1. GRANT
OF RESTRICTED SHARES. Subject to the terms of this
Agreement, the Corporation grants to Grantee  ( ) shares
(“Restricted
Shares”) of the Corporation’s common stock,
(“Stock”).
The delivery of any document evidencing the Restricted Shares is
subject to the provisions of Section 5.

 

2. RIGHTS
OF GRANTEE. Subject to the provisions of this Agreement, as
of the Date of Grant, Grantee shall be a shareholder with respect
to all of such Restricted Shares and shall have all of the rights
of a shareholder in the Corporation with respect to the Restricted
Shares.

 

3. RESTRICTIONS
ON RESTRICTED SHARES.

 

A. Limitations
on Transfer. Grantee agrees to not sell, transfer, pledge,
exchange, hypothecate, grant any security interest in, or otherwise
dispose of, any Restricted Shares before the date on which the
restrictions lapse under Section 4.A., or enter into any
agreement or make any commitment to do so. Any attempted sale,
transfer, pledge, exchange, hypothecation or disposition of the
Restricted Shares shall be null and void, and the Corporation shall
not recognize or give effect to such transaction on its books and
records (including the books and records of the Corporation’s
transfer agent) or recognize the person or persons to whom such
sale, transfer, pledge, exchange, hypothecation or disposition has
been made as the legal or beneficial owner of the Restricted
Shares.

 

B. Permitted
Transfers. Notwithstanding Section 3.A., or any other
provision of this Agreement, Grantee may assign and transfer some
or all of the Restricted Shares, whether or not the restrictions
have lapsed, to a family trust, family limited partnership or other
estate planning entity settled or controlled by Grantee, provided
that (i) the transferee executes and delivers to the Corporation
required documents to confirm that the transferee’s ownership
of such Restricted Shares are subject to this Agreement as if such
transferee were Grantee, and (ii) the Restricted Shares that
are unvested as of the date of transfer will be subject to
forfeiture under all circumstances provided in this Agreement,
including the provisions based on termination of Grantee’s
service with the Corporation.

 

 

1

 

 

4. LAPSE
OF RESTRICTIONS.

 

A. Schedule.
Subject to the other conditions in this Section 4, the restrictions on
the Stock set forth in Section 3 will lapse under
the following schedule:

 

	

Date
Restriction Lapses

	

Percentage
of Stock Becomes Unrestricted

	

First
Anniversary of Date of Grant

	

33%

	

Second
Anniversary of Date of Grant

	

66%

	

Third
Anniversary of Date of Grant

	

100%

 

B. Condition
That Must be Satisfied Before Restrictions Lapse. The
restrictions on the Stock will not lapse unless Grantee remains
employed by the Corporation or otherwise continues to serve as a
non-employee member of the Board of Directors of the Corporation as
of the date the restrictions lapse in accordance with the above
schedule.

 

C. Issuance
of Certificates. The Corporation shall only be required to
issue stock certificates representing those Restricted Shares on
which restrictions have lapsed in accordance with the provisions of
this Agreement. Within 30 days after restrictions on some or all of
the Stock have lapsed, the Corporation shall issue to Grantee a
stock certificate representing those shares of Stock that have
become unrestricted.

 

5. SECURITIES
ACT.

 

A. Registration.
The Corporation has the right, but not the obligation, to cause the
issuance, sale or resale of the Restricted Shares to be registered
under the Securities Act.

 

B. Condition
on Delivery of Stock. The Corporation is not required to
issue any of the Restricted Shares if, in the opinion of the
Corporation’s counsel, the issuance would violate the
Securities Act or any other applicable Federal or state securities
laws or regulations. Before issuing the Restricted Shares, the
Corporation may require Grantee to sign a written statement, in
form and content acceptable to the Corporation in its sole
discretion, that Grantee (i) shall not sell the Restricted
Shares except with the prior written approval of the Corporation,
and (ii) shall comply with the Securities Act, the Exchange
Act and all other applicable Federal and state securities laws and
regulations.

 

C. Legend.
In addition to any other legend that may be required by the
Corporation from time to time or pursuant to applicable law, share
certificates representing any Restricted Shares issued hereunder
shall bear a legend restricting the transferability of such
Restricted Shares in substantially the following form:

 

 

2

 

 

“Transfer of
the securities represented by this certificate is subject to the
restrictions imposed by the Restricted Stock Agreement dated
February 1, 2018 by and between WEED, Inc. and Glenn
Martin.

 

6. REPURCHASE
BY THE COMPANY.

 

A. Involuntary
Transfer. In the event of any transfer by operation of law
or other involuntary transfer, of all, or a portion, of the
Restricted Shares, the Corporation shall have an option to purchase
all or any portion of the Restricted Shares transferred (the
“Involuntary
Transfer Option”). Upon such a transfer, Grantee and
the person acquiring the Restricted Shares shall promptly notify
the Secretary of the Corporation of such transfer. The Corporation
(or its assignee) shall notify Grantee and the person acquiring the
Restricted Shares as to whether the Corporation (or its assignee)
wishes to purchase any of the Restricted Shares pursuant to the
Involuntary Transfer Option no later than 45 days following the
receipt by the Corporation of the notice from the person acquiring
the Restricted Shares. If the Corporation (or its assignee) elects
to purchase such Restricted Shares hereunder, it shall set a date
for the closing of the transaction at a place specified by the
Corporation not later than 30 days from the date of such notice. At
such closing, the Corporation (or its assignee) shall tender
payment for the Restricted Shares and the certificates representing
the Restricted Shares so purchased shall be canceled (or the
Restricted Shares transferred to the Corporation’s assignee,
if applicable). Grantee hereby authorizes and directs the Secretary
or the transfer agent of the Corporation, as applicable, to
transfer the Restricted Shares as to which the involuntary Transfer
Option has been exercised from Grantee to the Corporation (or its
assignee). Grantee further authorizes the Corporation to refuse, or
to cause the transfer agent to refuse, as applicable, to transfer
or record any Restricted Shares to be transferred in violation of
this Agreement.

 

B. Price
Determination by Board. With respect to the Restricted
Shares to be transferred pursuant to the Involuntary Transfer
Option where the price is determined under this Section 6.B., the price per
share shall be a price that will reflect the current fair market
value of such Restricted Shares as determined in good faith by the
Board. The Corporation shall notify Grantee, his representative, or
the person acquiring the Restricted Shares under Section 6.A. of the price so
determined within 45 days after receipt by the Corporation of
notice of the transfer or proposed transfer of the
shares.

 

C. Assignment
by Corporation. The Corporation’s Involuntary Transfer
Option (collectively, the “Corporation’s
Rights”) may be assigned in whole or in part to any
shareholder or shareholders of the Corporation.

 

D. Obligations
Binding upon Transferees. All transferees of Restricted
Shares or any interest therein will receive and hold such
Restricted Shares or interest therein subject to the provisions of
this Agreement, including, insofar as applicable, the
Corporation’s Rights. Any sale or transfer of the Restricted
Shares shall be void unless the provisions of this Agreement are
complied with.

 

 

3

 

 

E. Termination
of the Corporation’s Rights. Except as otherwise
provided hereunder, the Corporation’s Rights granted to the
Corporation by this Section 6 shall terminate upon
the effective date of a firm commitment underwritten public
offering pursuant to an effective Securities Act, covering the
offer and sale of Stock for the Corporation’s account to the
public other than (i) a registration relating solely to employee
stock option, stock purchase or other benefit plans or (ii)
relating solely to a SEC Rule 145 transaction.

 

F. Replacement
Certificate. If the restrictions imposed on the sale or
transfer of the Stock by this Agreement terminate as provided in
this Section 6 a
new certificate or certificates representing the Stock shall be
issued, on request, without any legend.

 

G. Transfers
Deemed Involuntary Transfers. For purposes of this
Agreement, the following events shall be deemed to be or to cause,
without limitation, involuntary transfers subject to the
Involuntary Transfer Option pursuant to Section 6.A.:

 

(1) Grantee files a
voluntary petition in bankruptcy or is adjudicated bankrupt or
makes an assignment for the benefit of his creditors;
and

 

(2) Grantee transfers
or attempts to transfer part or all or his interest in the shares
in violation of this Agreement.

 

7. ACKNOWLEDGEMENTS
AND REPRESENTATION OF GRANTEE. In connection with
Grantee’s receipt of the Restricted Shares, Grantee hereby
acknowledges the following:

 

A. Further
Limitations on Disposition. Grantee understands and
acknowledges that Grantee may not make any sale, assignment,
transfer or other disposition (including transfer by gift or
operation of law) of all or any portion of the Restricted Shares
except in accordance with this Agreement. Further, Grantee agrees
to make no sale, assignment, transfer or other disposition of all
or any portion of the Restricted Shares unless there is then in
effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in
accordance with such registration statement, or Grantee has
obtained an opinion of Grantee’s counsel that such
disposition does not require registration under the Securities Act.
The Corporation may request a copy of any such opinion and, upon
such request, Grantee shall promptly provide such copy to the
Corporation.

 

B. Determination
of Fair Market Value. Grantee understands and acknowledges
that the Fair Market Value of the Restricted Shares shall be
determined in accordance with the terms and conditions set forth by
the Corporation’s Board.

 

C. Section
83(b) Election. Grantee understands that Section 83 of the
Internal Revenue Code of 1986, as amended (“Code”)
taxes as ordinary income the difference between the amount paid for
the Restricted Shares and the Fair Market Value of the Restricted
Shares as of the date any restrictions on the Restricted Shares
lapse. In this context, “restriction” means the
restrictions set forth in Section 3 hereof. Grantee
understands that Grantee may elect to be taxed at the time the
Restricted Shares are granted rather than when and as the
Restricted Shares vest by filing an election under
Section 83(b) of the Code with the Internal Revenue Service
within 30 days from the Date of Grant. Grantee understands that
failure to make this filing timely shall result in the recognition
of ordinary income by Grantee on the Fair Market Value of the
Restricted Shares at the time such restrictions lapse.

 

 

4

 

 

GRANTEE
ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY, AND
NOT THE CORPORATION’S, TO FILE TIMELY THE ELECTION UNDER
SECTION 83(b), EVEN IF GRANTEE REQUESTS THE CORPORATION OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON GRANTEE’S
BEHALF.

 

D. Investment
Intent. Grantee hereby represents and warrants to the
Corporation that Grantee is acquiring the Restricted Shares for
investment purposes only and not with a view to the resale or other
distribution thereof.

 

8. NON-TRANSFERABILITY
OF RIGHTS. Grantee may not assign or transfer
Grantee’s rights under this Agreement, nor may Grantee
subject such rights (or any of them) to execution, attachment,
garnishment, or similar process. Any such attempted assignment or
transfer by Grantee shall be null and void and shall not be
recognized by the Corporation.

 

9. FEDERAL
AND STATE TAXES. Grantee may incur certain liabilities for
Federal, state, or local taxes in connection with the grant of the
Restricted Shares hereunder, and the Corporation may be required by
law to withhold such taxes. Upon determination of the year in which
such taxes are due and the determination by the Corporation of the
amount of taxes required to be withheld, Grantee shall pay an
amount equal to the amount of Federal, state, or local taxes
required to be withheld to the Corporation. If Grantee fails to
make such payment in a timely manner, the Corporation may withhold
and set-off against compensation payable to Grantee the amount of
such required payment.

 

10. TAX
ADVICE. GRANTEE HEREBY ACKNOWLEDGES THAT NEITHER THE
CORPORATION NOR ANY OF ITS REPRESENTATIVES (INCLUDING ANY DIRECTOR,
OFFICER, EMPLOYEE OR PROFESSIONAL ADVISOR THEREOF) HAS PROVIDED TO
GRANTEE ANY TAX-RELATED ADVICE WITH RESPECT TO THE MATTERS COVERED
BY THIS AGREEMENT. GRANTEE UNDERSTANDS AND ACKNOWLEDGES THAT HE IS
SOLELY RESPONSIBLE FOR OBTAINING HIS OWN TAX ADVICE (AT
GRANTEE’S COST) WITH RESPECT TO THE MATTERS COVERED BY THIS
AGREEMENT.

 

11. ADJUSTMENT
OF SHARES. The number of Restricted Shares issued to Grantee
pursuant to this Agreement shall equitably be adjusted by the
Corporation’s Board in its discretion in the event of a
change in the Corporation’s capital structure.

 

12. AMENDMENT
OF AGREEMENT. This Agreement may only be amended with the
written approval of Grantee and the Corporation.

 

13. GOVERNING
LAW. This Agreement shall be governed in all respects,
whether as to validity, construction, capacity, performance, or
otherwise, by the laws of the State of Arizona, without regard to
conflicts-of-laws principles that would require the application of
any other law.

 

 

5

 

 

14. SEVERABILITY.
If any provision of this Agreement, or the application of any such
provision to any person or circumstance, is held to be
unenforceable or invalid by any court of competent jurisdiction or
under any applicable law, the parties hereto shall negotiate an
equitable adjustment to the provisions of this Agreement with the
view to effecting, to the greatest extent possible, the original
purpose and intent of this Agreement, and in any event, the
validity and enforceability of the remaining provisions of this
Agreement shall not be affected thereby.

 

15. ENTIRE
AGREEMENT. This Agreement constitutes the entire, final, and
complete agreement between the parties hereto with respect to the
subject matter hereof and supersede all prior agreements, promises,
understandings, negotiations, representations, and commitments,
both written and oral, between the parties hereto with respect to
the subject matter hereof. Neither party hereto shall be bound by
or liable for any statement, representation, promise, inducement,
commitment, or understanding of any kind whatsoever not expressly
set forth in this Agreement.

 

[Signatures
appear on the following page]

 

 

 

 

IN
WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed by its duly authorized representative and Grantee has
signed this Agreement, in each case as of the day and year first
written above.

 

	
 

	

CORPORATION:

	
 

	
 

	
 

	

 

	
 

	
 

	

WEED,
Inc., a Nevada corporation

	
 

	
 

	
 

	

 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 Authorized
Signatory  

	
 

	
 

	
 

	
 

	
 

	
 

	
  

	
 

	
 

	
Print
Name

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	GRANTEE:	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

 

 

	

 

 

 

6Blueprint

  EXHIBIT
10.14

 

WEED, INC.

NOTICE OF GRANT OF NON-QUALIFIED STOCK OPTIONS

 

This Non-Qualified Stock Option Agreement consists
of this Notice of Grant of Non-Qualified Stock Options (the
“Grant
Notice”) and the
Non-Qualified Stock Option Award Agreement
(“Agreement”)
immediately following. The Non-Qualified Stock Option Agreement
sets forth the specific terms and conditions governing this grant
of Non-Qualified Stock Options. Capitalized terms used in this
Grant Notice but not otherwise defined herein, shall have the
meanings ascribed to them in the Agreement immediately
following.

 

	

Name of
Optionee:

	
 

	
 

	

 

	
 

	
 

	

Total
No. of shares of Stock subject to the Option:

	
 

	
 

	

 

	
 

	
 

	

Grant
Date:

	
 

	
 

	

 

	
 
  

	

Expiration
Date:

	
The tenth
anniversary of the Grant Date.   

	

 

	
 
 
         
    

	

Exercise
Price:

	
$ 
          ,
which shall not be less than the Fair Market Value of one share of
Stock on the Grant Date.   

	

 

	
   
  

	

Vesting
Schedule:

 

	
The Option shall
vest in accordance with the following schedule: (i) on the six
month anniversary of the Date of Grant, 33 1/3%; (ii) on the first
anniversary of the Date of Grant, 33 1/3%; and (iii) on the second
anniversary of the Date of Grant, the final 33 1/3%.
Notwithstanding
anything in this Grant Notice and Agreement to the contrary, 100%
of the shares of Stock subject to the Option shall vest upon the
earliest to occur of the following events: (i) a “Change
of Control” as defined in Section 7 of the Agreement;
(ii) termination of your employment by the Corporation without
“Cause” or by you without “Good Reason” as
defined in the Agreement; (iii) your death; (iv) your
“Disability” as defined in the Agreement; or
(v) an initial public offering pursuant to a registration
filed with, and declared effective, by the Securities and Exchange
Commission pursuant to the Securities Act that results in the
Corporation’s Stock begin listed on a national
exchange.  
 
 
  

 

 

 

	

 

 

 

1

 

 

BY EXECUTING THIS NON-QUALIFIED STOCK OPTION AGREEMENT, THE
OPTIONEE ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE
PROVISIONS OF THIS GRANT NOTICE AND THE AGREEMENT, AND AGREES THAT
THIS GRANT NOTICE AND AGREEMENT SHALL GOVERN THE TERMS AND
CONDITIONS OF THIS AWARD.

 

IN WITNESS
WHEREOF, the Corporation and
Optionee have duly executed this Non-Qualified Stock Option
Agreement, and this Non-Qualified Stock Option Agreement shall be
effective as of the Grant Date set forth above.

 

	

WEED, INC.

 

 

By:__________________________________

 

Print
Name: ___________________________

 

Its:
_________________________________

 

	

OPTIONEE

 

 

___________________________________

 

 

	

 

 

 

2

 

 

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

 

This
Non-Qualified Stock Option Award Agreement (“Agreement”)
is between WEED, Inc., a Nevada
corporation (“Corporation”)
and the individual (“Optionee”)
identified in the Notice of Grant of Non-Qualified Stock Options
(“Grant
Notice”), and is effective as of the grant date
referenced in the Grant Notice (“Grant
Date”). This Agreement supplements the Grant Notice to
which it is attached, and, together, with the Grant Notice,
constitutes the “Non-Qualified Stock Option Agreement”
referenced in the Grant Notice.

 

RECITALS

 

A. The
Corporation recognizes that Optionee’s services are uniquely
valuable to the Corporation.

 

B. In
recognition of such services, the Corporation’s Board of
Directors (the “Board”)
desires to approve this grant of non-qualified stock options to
Optionee to provide Optionee with an incentive for outstanding
performance.

 

C. In
consideration of the mutual covenants and conditions hereinafter
set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Corporation and Optionee agree as follows:

 

AGREEMENT

 

1. Definitions.
For purposes of this Agreement, the following terms shall have the
following meanings:

 

(a) “Cause”
shall have the meaning ascribed to it in the Employment
Agreement.

 

(b) “Code”
shall mean the Internal Revenue Code of 1986, as amended from time
to time. All references to the Code shall be interpreted to include
a reference to any applicable regulations, rulings or other
official guidance promulgated pursuant to such section of the
Code.

 

(c) “Disability”
shall have the meaning ascribed to it in the Employment
Agreement.

 

(d) “Employment
Agreement” means
the                                                                                                                      .

 

(e) “Fair Market
Value” means the closing price of one
share of Stock on the trading date immediately preceding the Grant
Date as reported on the OTCMKTS or such other exchange on which the
Stock is then traded (or if no such price was reported on such
date, the closing price of the Stock on the last trading day before
the Grant Date on which such closing price was
reported).

 

(f) “Good
Reason” shall have the meaning ascribed to it in the
Employment Agreement.

 

 

3

 

 

(g) “Stock”
means the common stock of the Corporation, $0.001 par value per
share.

 

2. Grant
of Option. Subject to
the terms of this Agreement, the Corporation grants to Optionee the
right and option to purchase from the Corporation all or any part
of the aggregate number of shares of Stock specified in the Grant
Notice (“Option”).
The Option granted under this Agreement is
not intended to
be an “Incentive Stock Option” under Section 422 of the
Code.

 

3. Exercise
Price. The exercise
price under this Agreement is the exercise price per share of Stock
specified in the Grant Notice, as determined by the Board, which
shall
not be less than the Fair Market Value of a share of Stock
on the Grant Date.

 

4. Vesting
of Option. Subject to
Optionee’s continued service and as otherwise provided in the
Grant Notice, the Option shall vest and become exercisable
according to the vesting schedule set forth in the Grant
Notice.

 

5. Exercise
of Option. This
Option may be exercised in whole or in part at any time after it
vests in accordance with Section 4 and before the Option
expires by delivery of a written notice of exercise (under
Section 6 below)
and payment of the exercise price. The exercise price may be paid
including, but not limited to, a cashless exercise, in cash or such
other method permitted by the Board and communicated to Optionee
before the date Optionee exercises the Option.

 

6. Method
of Exercising Option.
Subject to the terms of this Agreement, the Option may be exercised
by timely delivery to the Corporation of written notice, which
notice shall be effective on the date received by the Corporation.
The notice shall state Optionee’s election to exercise the
Option and the number of underlying shares in respect of which an
election to exercise has been made. Such notice shall be signed by
Optionee, or if the Option is exercised by a person or persons
other than Optionee because of Optionee’s death or
Disability, such notice must be signed by such other person or
persons and shall be accompanied by proof acceptable to the
Corporation of the legal right of such person or persons to
exercise the Option.

 

7. Change of
Control.
Notwithstanding any other provisions of this Agreement, any
unvested portion of the Option shall fully vest if Optionee is
actively employed by the Corporation (or actively providing
services as a member of the Corporation’s Board of Directors)
on the date of the closing of a transaction that results in a
Change of Control. For purposes of this Agreement,
“Change of
Control” means: (i) any reorganization, consolidation
or merger of the Corporation (except one in which the holders of
capital stock of the Corporation immediately prior to such merger
or consolidation continue to hold at least a majority of the voting
power of the capital stock of the surviving corporation) or any
other transaction pursuant to which any person or entity acquires
at least a majority of the outstanding voting stock of the
Corporation or the entity surviving such transaction; or (ii) any
disposition of all or substantially all of the assets of the
Corporation. Notwithstanding anything in this Agreement to the
contrary, if the Corporation concludes, in the exercise of its
discretion, that the Option is subject to Section 409A of the Code,
then a transaction will not be considered a “Change of
Control” for purposes of this Agreement unless the Change of
Control constitutes a “change in control event” as
defined in Treasury Regulation Section 1.409A-3(i)(5).

 

 

4

 

 

8. Automatic
Exercise of the Option. If the Option vests pursuant to
Section 7 above,
then upon or immediately prior to the Change of Control, without
any action on the part of Optionee, the Option shall be canceled in
exchange for a cash payment equal to (i) the number of shares of
Stock subject to the Option multiplied by (ii) the amount by which
the per share cash consideration payable to the Corporation in
connection with the Change of Control exceeds the per share
exercise price of the Option. Any such payment shall be made within
thirty (30) days following the closing of the transaction that
results in the Change of Control.

 

9. Term
of Option. The Option
granted under this Agreement expires, unless sooner terminated, ten
(10) years from the Grant Date, through and including the normal
close of business of the Corporation on the tenth (10th) anniversary of the
Grant Date (the “Expiration
Date”).

 

10. Termination
of Service.

 

(a) If Optionee’s
service is terminated by the Corporation without Cause, or by
Optionee with Good Reason, the Option shall be fully vested and
shall not lapse (to the extent not exercised) until the Expiration
Date. The Option may be exercised pursuant to this Section 10(a) only if the
Option was exercisable by Optionee immediately prior to
Optionee’s termination of service. In no event shall the
Option be exercisable after the Expiration Date.

 

(b) If Optionee’s
service is terminated for any reason other than those described in
Section 10(a), the
Option shall lapse (to the extent not exercised) on the earlier of:
(i) the Expiration Date; or (ii) six (6) months after the date
Optionee’s service is terminated; provided, that, if Optionee’s
service is terminated for Cause, the Option shall immediately lapse
which means that the Option shall not be exercisable by Optionee
regardless of whether the Option is already vested. The Option may
be exercised pursuant to this Section 10(b) only if the
Option was exercisable by Optionee immediately prior to his
termination of service. In no event shall the Option be exercisable
after the Expiration Date.

 

11. Death
or Disability. Upon Optionee’s death or Disability,
the Option shall be fully vested and shall not lapse (to the extent
not exercised) until the Expiration Date. Upon Optionee’s
death, the Option may be exercised by the Optionee’s estate,
by a person who acquired the right to exercise the Option by
bequest or inheritance or by the person designated to exercise the
Option upon the Optionee’s death.

 

12. IPO.
The Option shall be fully vested in connection with upon the
closing of an initial public stock offering of the Company's common
stock, the result of which is that the Company's common stock is
traded on a national securities exchange, or through the NASD's
National Market System.

 

13. Withholding;
Tax Advice. The
Corporation shall have the power to withhold, or require Optionee
to remit to the Corporation, the amount necessary to satisfy
federal, state, and local withholding tax requirements with respect
to the exercise of the Option. To the extent that alternative
methods of withholding are available under applicable tax laws, the
Corporation shall have the power to choose among such methods. To
the extent permissible under applicable tax, securities, and other
laws, the Corporation may, in its sole discretion, permit Optionee
to satisfy a tax withholding requirement by: (a) using already
owned shares of Stock that have been held by Optionee for at least
six (6) months or longer (which holding period may be waived
by the Corporation); (b) a broker-assisted
“cashless” transaction; (c) directing the
Corporation to apply shares of Stock to which Optionee is otherwise
entitled to satisfy the required withholding amount; or
(d) personal check or other cash equivalent acceptable to the
Corporation. The Optionee hereby acknowledges that neither the
Corporation nor any of its representatives has provided to Optionee
any tax-related advice with respect to the matters covered by this
Agreement. The Optionee understands and acknowledges that Optionee
is solely responsible for obtaining his own tax advice with respect
to the matters covered by this Agreement.

 

 

5

 

 

14. Nontransferability
of Options. The
Options granted by this Agreement shall not be transferable by
Optionee or any other person claiming through Optionee, either
voluntarily or involuntarily, except by will or the laws of descent
and distribution or as permitted by the Board.

 

15. No
Right to Continued Service. This Agreement
shall not be construed to confer upon Optionee any right to
continue service with the Corporation and shall not limit the right
of the Corporation, in its sole and absolute discretion, to
terminate Optionee’s service at any time.

 

16. Administration.
This Agreement shall at all times be administered by the Board. The
Board shall have the sole and complete discretion with respect to
all matters under this Agreement and decisions of the Board with
respect thereto and to this Agreement shall be final and binding
upon Optionee and the Corporation.

 

17. Adjustments.
Notwithstanding anything in this Agreement to the contrary, in the
event of any stock splits, reverse stock splits, stock dividends,
consolidations, recapitalizations, reorganizations or other changes
in the Corporation’s capital structure, the Board shall make
an equitable proportionate adjustment in the number of shares of
Stock subject to the Option, as appropriate, to prevent the
dilution or enlargement of Optionee’s rights under this
Agreement.

 

18. Compliance
with Applicable Laws.
The Corporation shall not be required to deliver any shares of
Stock pursuant to the exercise of the Option if, in the opinion of
counsel for the Corporation, such issuance would violate the
Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, or any other applicable federal or state
securities laws, regulations, or rules of the exchange or quotation
system on which the shares of Stock are listed. Notwithstanding
anything herein to the contrary, the Corporation shall not be
required to issue or deliver any certificates evidencing shares of
Stock, make any book entry credits, or take any other action to
evidence the ownership of shares of Stock pursuant to the exercise
or settlement of the Option, unless and until the Corporation has
determined, with advice of counsel, that the issuance and delivery
of such certificates, book entry credits, or other evidence of
ownership, is in compliance with all applicable laws, regulations
of governmental authorities and, if applicable, the requirements of
any exchange or quotation system on which the shares of Stock are
listed, quoted or traded. All Stock certificates, book entry
credits, or other evidence of ownership delivered pursuant to this
Agreement are subject to any stop-transfer orders and other
restrictions as the Corporation deems necessary or advisable to
comply with applicable law and the rules and regulations and the
rules of any national securities exchange or automated quotation
system on which the Stock is listed, quoted, or traded. The
Corporation may place legends on any Stock certificate to reference
restrictions applicable to the Stock. In addition to the terms and
conditions provided herein, the Corporation may require that
Optionee make such reasonable covenants, agreements, and
representations as the Corporation, in its discretion, deems
advisable in order to comply with any such laws, regulations, or
requirements.

 

 

6

 

 

19. No
Shareholders Rights.
The Optionee will have no voting rights or any other rights as a
shareholder of the Corporation with respect to the Option until
Optionee has become the holder of record of such shares of Stock
underlying the Option.

 

20. Governing
Law. This Agreement
shall be interpreted and administered under the laws of the State
of Arizona.

 

21. Amendment.
This Agreement may only be amended with the written approval of
Optionee and the Corporation, provided, that, to the extent any
modification, alteration or amendment is made pursuant to the
adjustment provisions of Section 17, or is necessary to
comply with any provision of applicable law, rule or regulation, or
to secure favorable tax treatment for Optionee or the Corporation,
the Corporation may act unilaterally to modify, alter or amend the
Agreement. The provisions of this Agreement may not be waived or
modified unless such waiver or modification is in writing and
signed by a representative of the Board.

 

22. Entire
Agreement; Severability. This Agreement constitutes the entire,
final, and complete agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior
agreements, promises, understandings, negotiations,
representations, and commitments, both written and oral, between
the parties hereto with respect to the subject matter hereof. If
any provision of this Agreement, or the application of any such
provision to any person or circumstance, is held to be
unenforceable or invalid by any court of competent jurisdiction or
under any applicable law, the parties hereto shall negotiate an
equitable adjustment to the provisions of this Agreement with the
view to effecting, to the greatest extent possible, the original
purpose and intent of this Agreement, and in any event, the
validity and enforceability of the remaining provisions of this
Agreement shall not be affected thereby.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	

 

 

 

7

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