Document:

Exhibit 10.5

 

RESTRICTED STOCK UNIT AGREEMENT

 

ARNO THERAPEUTICS, INC.

2016 EQUITY INCENTIVE PLAN

 

THIS AGREEMENT, made
effective as of this   day of  , 20___, by and between Arno Therapeutics, Inc., a Delaware corporation (the “Company”),
and _____________________ (“Participant”).

 

W I T N E S S E T H:

 

WHEREAS, Participant
on the date hereof is an Employee, Director of, or Consultant to the Company or one of its Subsidiaries; and

 

WHEREAS, the Company
wishes to grant a restricted stock unit award to Participant for shares of the Company’s Common Stock pursuant to the Company’s
2016 Equity Incentive Plan (the “Plan”); and

 

WHEREAS, the Administrator
of the Plan has authorized the grant of a restricted stock unit award to Participant;

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

 

1.           Grant of Restricted Stock
Unit Award; Term. The Company hereby grants to Participant on the date set forth above a restricted stock unit award (the
“Award”) for ________ (_________) restricted stock units on the terms and conditions set forth herein. Each restricted
stock unit shall entitle the Participant to receive either one share of the Company’s Common Stock or a cash payment in accordance
with Paragraph 3 below.

 

2.           Vesting of Restricted Stock
Units.

 

a.           General. The restricted
stock units subject to this Award shall vest according to the following schedule:

 

	Specified Date or
    Achievement

    (each, a “Vesting Time”)	 	Number of Units

that Vest
	 	 	 
	[Exact
time/procedures for certifying achievement should be determined when Award is approved and specified in this Section]	 	[To be completed]

 

b.           Termination of Relationship.
If Participant ceases to be [an Employee] [a Consultant] [a Director] of the Company or any Subsidiary at any time during
the term of the Award, for any reason, this Award shall terminate and all restricted stock units subject to this Award that have
not vested shall be forfeited by Participant.

 

    	 	1	 

     

    

 

3.           Issuance of Shares or Payment.
Upon each Vesting Time, the Company shall cause to be issued and delivered to Participant a stock certificate (or, upon request
and if permitted in the Administrator’s discretion, an entry to be made in the books of the Company or its designated agent)
representing that number of shares of Common Stock which is equivalent to the number of restricted stock units that have vested,
less any shares withheld for payment of taxes as provided in Section 4(e) below, and shall deliver such certificate to Participant.
Until the Vesting Time, Participant shall not be entitled to vote the shares of Common Stock represented by such restricted stock
units, shall not be entitled to receive dividends attributable to such shares of Common Stock, and shall not have any other rights
as a stockholder with respect to such shares.

 

Alternatively, the
Company may, in its sole discretion, pay Participant a lump sum payment, in cash, equal to the Fair Market Value of that number
of shares of Common Stock which is equivalent to the number of restricted stock units that have vested, subject to the withholding
provisions of Section 4(f) below. Such Fair Market Value shall be determined as of each Vesting Time. If the Company makes such
cash payment, the Participant shall not be entitled to vote the shares of Common Stock represented by such restricted stock units,
shall not be entitled to receive dividends attributable to such shares of Common Stock, and shall not have any other rights as
a stockholder with respect to such shares, whether before or after the Vesting Time.

 

The Company will issue
shares of Common Stock or make a cash payment pursuant to this Award as soon as practicable following the applicable Vesting Time,
but in no event beyond 2 1⁄2 months after the end of the calendar year in which the Vesting Time occurs.

 

4.           General Provisions.

 

a.           Employment or Other Relationship.
This Agreement shall not confer on Participant any right with respect to continuance of employment or any other relationship by
the Company or any of its Affiliates, nor will it interfere in any way with the right of the Company to terminate such employment
or relationship. Nothing in this Agreement shall be construed as creating an employment or service contract for any specified term
between Participant and the Company or any Affiliate.

 

b.           280G Limitations.
Notwithstanding anything in the Plan, this Agreement or in any other agreement, plan, contract or understanding entered into from
time to time between Participant and the Company or any of its Subsidiaries to the contrary (except
an agreement that expressly modifies or excludes the application of this Paragraph 4(b)), the vesting of this Award shall
not be accelerated in connection with a Change of Control to the extent that such acceleration, taking into account all other rights,
payments and benefits to which Participant is entitled under any other plan or agreement, would  constitute
a "parachute payment" or an "excess parachute payment" for purposes of Code Sections 280G and 4999, or
any successor provisions, and the regulations issued thereunder; provided, however, that the Administrator, in its sole discretion
and in accordance with applicable law, may modify or exclude the application of this Paragraph 4(b).

 

c.           Securities Law Compliance.
Participant shall not transfer or otherwise dispose of the shares of Common Stock received pursuant to this Award until such time
as the Company and its counsel shall have determined that such transfer or other disposition will not violate any state or federal
securities laws. Participant may be required by the Company, as a condition of the effectiveness of this Award, to give any written
assurances that are necessary or desirable in the opinion of the Company and its counsel to ensure the issuance complies with applicable
securities laws, including that all Common Stock subject to this Award shall be held, until such time that such Common Stock is
registered and freely tradable under applicable state and federal securities laws, for Participant’s own account without
a view to any further distribution thereof; that the certificates (or, if permitted, book entries) for such shares shall bear an
appropriate legend or notation to that effect; and that such shares will be not transferred or disposed of except in compliance
with applicable state and federal securities laws.

 

    	 	2	 

     

    

 

d.           Mergers, Recapitalizations,
Stock Splits, Etc. Except as otherwise specifically provided in any employment, change of control, severance or similar
agreement executed by Participant and the Company, pursuant and subject to Section 15 of the Plan, certain changes in the number
or character of the shares of Common Stock of the Company (through merger, consolidation, exchange, reorganization, divestiture
(including a spin-off), liquidation, recapitalization, stock split, stock dividend or otherwise) shall result in an adjustment,
reduction or enlargement, as appropriate, in Participant’s rights with respect to any unvested restricted stock units subject
to this Award (i.e., Participant shall have such “anti-dilution” rights under the Award with respect to such
events, but shall not have “preemptive ” rights).

 

e.           Shares Reserved.
The Company shall at all times during the term of this Agreement reserve and keep available such number of shares as will be sufficient
to satisfy the requirements of this Agreement.

 

f.           Withholding Taxes.
To permit the Company to comply with all applicable federal and state income tax laws or regulations, the Company may take such
action as it deems appropriate to ensure that, if necessary, all applicable federal and state payroll, income or other taxes attributable
to this Award are withheld from any amounts payable by the Company to Participant. If the Company is unable to withhold such federal
and state taxes, for whatever reason, the Participant hereby agrees to pay to the Company an amount equal to the amount the Company
would otherwise be required to withhold under federal or state law prior to the issuance of any certificates (or, if permitted,
book entries) for the shares of Common Stock subject to this Award. Subject to such rules as the Administrator may adopt, the Administrator
may, in its sole discretion, permit Participant to satisfy such withholding tax obligations, in whole or in part, by delivering
shares of the Company’s Common Stock, including shares of Common Stock received pursuant to this Award, having a Fair Market
Value, as of the date the amount of tax to be withheld is determined under applicable tax law, equal to the statutory minimum amount
required to be withheld for tax purposes. In no event may Participant deliver shares having a Fair Market Value in excess of such
statutory minimum required tax withholding. Participant’s election to deliver shares or to have shares withheld for this
purpose shall be made on or before the date that the amount of tax to be withheld is determined under applicable tax law, and shall
be irrevocable as of such date if approved by the Administrator. Such election shall comply with such rules as the Administrator
may adopt to assure compliance with Rule 16b-3, if applicable.

 

g.           Nontransferability.           No
portion of this Award that has not vested may be assigned or transferred, in whole or in part, other than by will or by the laws
of descent and distribution.

 

h.           2016 Equity Incentive Plan
.. The Award evidenced by this Agreement is granted pursuant to the Plan, a copy of which Plan has been made available to Participant
and is hereby incorporated into this Agreement. This Agreement is subject to and in all respects limited and conditioned as provided
in the Plan. All capitalized terms in this Agreement not defined herein shall have the meanings ascribed to them in the Plan. The
Plan governs this Agreement and, in the event of any questions as to the construction of this Agreement or in the event of a conflict
between the Plan and this Agreement, the Plan shall govern, except as the Plan otherwise provides.

 

i.           Lockup Period Limitation.
Participant agrees that in the event the Company advises Participant that it plans an underwritten public offering of its Common
Stock in compliance with the Securities Act of 1933, as amended, Participant will execute any lock-up agreement the Company and
the underwriter(s) deem necessary or appropriate, in their sole discretion, in connection with such public offering.

 

    	 	3	 

     

    

 

j.           Blue Sky Limitation.
Notwithstanding anything in this Agreement to the contrary, in the event the Company makes any public offering of its securities
and determines, in its sole discretion, that it is necessary to reduce the number of issued but unvested restricted stock units
so as to comply with any state securities or Blue Sky law limitations with respect thereto, the Board of Directors of the Company
shall accelerate the vesting of this restricted stock unit award, provided that the Company gives Participant 15 days’ prior
written notice of such acceleration. Notice shall be deemed given when delivered personally or when deposited in the United States
mail, first class postage prepaid and addressed to Participant at the address of Participant on file with the Company.

 

k.           Affiliates. Participant
agrees that, if Participant is an “affiliate” of the Company or any Affiliate (as defined in applicable legal and accounting
principles) at the time of a Change of Control (as defined in Section 1(f) of the Plan), Participant will comply with all requirements
of Rule 145 of the Securities Act of 1933, as amended, and the requirements of such other applicable legal or accounting principles,
and will execute any documents necessary to ensure such compliance.

 

l.           Stock Legend. The
Administrator may require that the certificates for any shares of Common Stock issued to Participant (or, in the case of death,
Participant’s successors) under this Agreement shall bear an appropriate legend to reflect the restrictions of Paragraph
4(c) and Paragraphs 4(i) through 4(k) of this Agreement; provided, however, that failure to so endorse any of such certificates
shall not render invalid or inapplicable Paragraph 4(c) or Paragraphs 4(i) through 4(k).

 

m.           Scope of Agreement.
This Agreement shall bind and inure to the benefit of the Company and its successors and assigns and Participant and any successor
or successors of Participant permitted by this Agreement. This Award is expressly subject to all terms and conditions contained
in the Plan and in this Agreement, and Participant’s failure to execute this Agreement shall not relieve Participant from
complying with such terms and conditions.

 

n.           Choice of Law.
The law of the state of Delaware shall govern all questions concerning the construction, validity, and interpretation of this Plan,
without regard to that state’s conflict of laws rules.

 

o.           Severability. In the
event that any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not
affect the remaining provisions of this Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.           

 

p.            Arbitration. Any
dispute arising out of or relating to this Agreement or the alleged breach of it, or the making of this Agreement, including claims
of fraud in the inducement, shall be discussed between the disputing parties in a good faith effort to arrive at a mutual settlement
of any such controversy. If, notwithstanding, such dispute cannot be resolved, such dispute shall be settled by binding arbitration.
Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall
be a retired state or federal judge or an attorney who has practiced securities or business litigation for at least 10 years. If
the parties cannot agree on an arbitrator within 20 days, any party may request that the chief judge of the District Court of [_______]
County, select an arbitrator. Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration
rules of the American Arbitration Association, unless such rules are inconsistent with the provisions of this Agreement. Limited
civil discovery shall be permitted for the production of documents and taking of depositions. Unresolved discovery disputes may
be brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall have the authority to award
any remedy or relief that a court of this state could order or grant; provided, however, that punitive or exemplary damages shall
not be awarded. The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of its costs and
fees, including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses and reasonable attorneys’
fees. Unless otherwise agreed by the parties, the place of any arbitration proceedings shall be [___________] County, [_____________].

 

    	 	4	 

     

    

 

ACCORDINGLY, the parties
hereto have caused this Agreement to be executed on the day and year first above written.

 

	 	ARNO THERAPEUTICS, INC.
	 	 
	 	 
	 	By: 	        
	 	 	Its:	         
	 	 	 	 
	 	 	 	 
	 	 
	 	Participant

 

    	 	5hgbl-ex103_658.htm

 

Exhibit 10.3

HERITAGE GLOBAL INC.

STOCK OPTION GRANT NOTICE UNDER THE
2003 STOCK OPTION AND APPRECIATION RIGHTS PLAN

Heritage Global Inc. (the “Company”), pursuant to its 2003 Stock Option and Appreciation Rights Plan (the “Plan”), hereby grants to the option holder set forth below an option to purchase the number of shares of the Company’s common stock as set forth below.  The options are subject to all of the terms and conditions as set forth herein and in the Stock Option Agreement (Attachment 1), the Plan (Attachment 2), and the Notice of Exercise (Attachment 3), all of which are attached hereto and incorporated herein in their entirety.

 

	
Option Holder:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Date of Grant:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Number of Shares Subject to Option:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Exercise Price (Per Share):
	
 
	
$               
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Expiration Date:
	
 
	
See the Stock Option Agreement.

	
 
	
 
	
 
	
 
	
 

	
Type of Grant:
	
 
	
.
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Vesting Schedule:
	
 
	
Subject to the conditions of the Stock Option Agreement and the Plan, the option shall vest and shall become exercisable in equal parts on each of the first, second, third and fourth anniversaries of the Grant Date.

	
 
	
 
	
 
	
 
	
 

	
Payment:
	
 
	
See Section 7.1 of the Plan.

	
 
	
 
	
 
	
 
	
 

	
Additional Terms/Acknowledgements:
	
 
	
The undersigned option holder acknowledges receipt of, and understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan.  Option holder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the entire understanding between option holder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject.

 

 

 

 

 

 

	
Executed as of                            ,.

	
 
	
 
	
 
	
 

	
HERITAGE GLOBAL INC.
	
 
	
OPTION HOLDER:

	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 

	
Name:
	
 
	
 
	
 

	
Title:
	
 
	
 
	
 

 

 

 

[Signature Page – Stock Option Grant Notice]

 

ATTACHMENT 1

STOCK OPTION AGREEMENT

UNDER THE HERITAGE GLOBAL INC.

2003 STOCK OPTION AND APPRECIATION RIGHTS PLAN

Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement, Heritage Global Inc. (the “Company”) has granted you, __________________________ (the “Optionee”), an option under its 2003 Stock Option and Appreciation Rights Plan (the “Plan”) to purchase the number of shares of the Company’s common stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same meaning as in the Plan.

1. GRANT OF OPTION.  The Company has granted to the Optionee certain stock options under the Plan to purchase the number of shares of the Company’s common stock in the amounts and at exercise prices set forth in the Grant Notice.

2. VESTING.  The option shall vest and become exercisable as provided in the Grant Notice except that no additional shares shall vest after the date of termination of the Optionee’s employment or consultancy with the Company, regardless of the reason for such termination. 

3. NUMBER OF SHARES AND EXERCISE PRICE.  The number of shares of common stock subject to the Optionee’s options and respective exercise prices per share referenced in the Grant Notice may be adjusted from time to time for changes in capital structure, as provided in Article IX of the Plan.

3. METHOD OF PAYMENT.  Payment of the exercise price is due in full upon exercise of all or any part of the Optionee’s respective options.  The Optionee may elect to make payment of the exercise price in cash or by check or in any other manner permitted by the Company.

5. WHOLE SHARES.  The Optionee may exercise his/her respective options only for whole shares of common stock except to the extent the number of shares subject to any such option is a fractional amount, in which case an exercise for such fractional amount of shares will be permitted. In lieu of issuing a fraction of a share upon any exercise of an option, the Company will be entitled to pay to the Optionee an amount equal to the fair market value of such fractional share.

6. NO EXERCISE IN VIOLATION OF LAW.  The Optionee may not exercise his or her respective options unless the shares of common stock issuable upon such exercise are then registered under the Securities Act of 1933 (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 the Optionee’s respective options must also comply with other applicable laws and regulations governing such options, and the Optionee may not exercise his or her respective options if the Company determines that such exercise would not be in material compliance with such laws and regulations.

7. TERM.  The Optionee may not exercise the Optionee’s respective options before the commencement of its term or after its term expires.  The term of the Optionee’s respective options commences on the Date of Grant and expires upon the earliest of the following:

(a) Seven (7) years after the date of the grant; or

(b) In accordance with Article VI of the Plan.

8.  EXERCISE.  The Optionee may exercise the vested portion of the Optionee’s respective options during its term by delivering a Notice of Exercise (in a form designated by the Company) and in compliance with Article VII of the Plan.

9. TRANSFERABILITY.  The Optionee’s respective options are not transferable, except by will or by the laws of descent and distribution, and are exercisable during the Optionee’s life only by the Optionee.  Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, the Optionee may designate a third party who, in the event of his/her death, shall thereafter be entitled to exercise the Optionee’s respective options.

10. OPTION NOT A SERVICE CONTRACT.  The Optionee’s respective options are not in and of themselves an employment or service contract, and nothing in such options shall be deemed to create in any way whatsoever any obligation on the 

 

Optionee’s part to continue in the employ of the Company or any affiliate of the Company, or of the Company or any such affiliate to continue his or her employment.  In addition, nothing in the Optionee’s respective options shall obligate the Company or any of its affiliates, their respective shareholders, boards of directors, officers or employees to continue any relationship that the Optionee might have as a director or consultant for the Company or any of its affiliates.

11. NO RIGHTS AS SHAREHOLDER.  The Optionee shall not have any rights of a shareholder with respect to the shares subject to the options evidenced by this Stock Option Agreement, until a stock certificate has been duly issued following exercise of the option as provided herein.

12. WITHHOLDING OBLIGATIONS.

(a) At the time the Optionee exercises his/her option, in whole or in part, or at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding from payroll and any other amounts payable to the Optionee, and otherwise agrees to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or any of its affiliates, if any, which arise in connection with the exercise of the Optionee’s respective options.

(b) Upon the Optionee’s request and subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from fully vested shares of Common Stock otherwise issuable to the Optionee upon the exercise of the Optionee’s respective options a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law.  If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of such options, share withholding pursuant to the preceding sentence shall not be permitted unless the Optionee makes a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of such options.  Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of such options that are otherwise issuable to the Optionee upon such exercise.  Any adverse consequences to the Optionee arising in connection with such share withholding procedure shall be the Optionee’s sole responsibility.

(c) The Optionee may not exercise his/her respective options unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.  Accordingly, the Optionee may not be able to exercise such options when desired even though such options are vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein.

13. NOTICES.  Any notices provided for in the Optionee’s respective options or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to the Optionee, five (5) days after deposit in the United States mail, postage prepaid, addressed to the Optionee at the last address the Optionee provided to the Company.

14. GOVERNING PLAN DOCUMENT.  The Optionee’s respective options are subject to all the provisions of the Plan, the provisions of which are hereby made a part of such options, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. 

15. VENUE AND JURY TRIAL.  Exclusive venue for any action arising out of or related to this Agreement will be in state or federal court located in the County of New York, New York, and each party consents to the jurisdiction of such courts and waives any defense based on lack of personal jurisdiction or inconvenient forum.  EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT BE TRIED BY JURY.  EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO DEMAND TRIAL BY JURY.  

 

 

 

 

 

	
HERITAGE GLOBAL INC.
	
 
	
OPTION HOLDER:

	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 

	
Name:
	
 
	
 
	
 

	
Title:
	
 
	
 
	
 

 

 

 

[Signature Page – Stock Option Agreement]

 

ATTACHMENT 2

HERITAGE GLOBAL INC.

2003 STOCK OPTION AND APPRECIATION RIGHTS PLAN

See attached.

 

 

 

 

ATTACHMENT 3

NOTICE OF EXERCISE

1. Pursuant to a certain stock option notice (“Agreement”) between the undersigned (“Optionee”) and Heritage Global Inc. (the “Company”) evidencing that certain option granted ______________, 2012, Optionee hereby exercises the right to purchase ____________ shares of common stock of the Company (“Stock”) at an exercise price of $____ per share.

2. Optionee hereby represents and warrants to the Company and acknowledges and agrees as follows:

(a) Review of Materials; Advice and Consultation.  Optionee is a sophisticated investor and has such knowledge and experience in financial and business matters that he or she is able to understand the information concerning the Company and to evaluate the risks in any investment in the Stock.  Optionee has been advised to discuss this investment with his, her or its legal or other professional advisors, or with other investment representatives who have knowledge of business and financial matters.  If he or she has not done so it is because, in his or her opinion, he or she is personally capable of evaluating the Company and does not need the advice of other persons.  Optionee and, to the extent deemed necessary by him or her, any of the persons mentioned above, has been afforded the opportunity to ask questions concerning the Company and its business and has been furnished with such information with respect to the Company and its proposed operations as he or she has requested to his or her satisfaction. 

(b) Risk of Loss; Transfer Restrictions.  Optionee understands and has fully considered for purposes of this investment that (i) the investment involves a high degree of risk of loss, and (ii) there are substantial restrictions on the transferability of the Stock.

(c) Financial Ability.  Optionee is able (i) to bear the economic risk of this investment, (ii) to hold the Stock for an indefinite period of time, and (iii) to afford a complete loss of this investment.  Optionee represents that he or she has adequate means of providing for his or her current needs and possible personal contingencies and has no need for liquidity in this particular investment.  Optionee’s overall commitment to investments which are not readily marketable is not disproportionate to his or her net worth, and his or her investment in the Stock will not cause such overall commitment to become excessive.

(d) Investment Purpose.  Optionee is acquiring Stock for his or her own account and not for the account of any other person.  Optionee is acquiring Stock solely for investment and not with a view to, or for resale in connection with, the distribution or other disposition thereof.  Optionee understands that the sale and issuance of the Stock has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), applicable state securities laws or the securities or similar laws of any other jurisdiction whatsoever, and, therefore, the Stock cannot be sold, resold, pledged, assigned or otherwise disposed of unless it is subsequently registered under the securities and similar laws of each applicable jurisdiction, or unless exemptions from such registration requirements are available.  Optionee understands that dispositions of Stock can be made only in compliance with the Securities Act and the rules and regulations of the Securities and Exchange Commission promulgated thereunder and all applicable state securities and “blue sky” laws; and Optionee understands that the Company is under no obligation to register the offer or sale of any Stock in any jurisdiction whatsoever or to assist Optionee in complying with any exemption from registration under the securities or similar laws of any jurisdiction whatsoever.  Optionee further understands that this transaction has not been reviewed by, passed on, or submitted to the United States Securities and Exchange Commission (the “SEC”), nor has the SEC or any other agency made any finding or determination as to the fairness of an investment in Stock, nor any recommendation or endorsement of this offering.

(e) Reliance by Company.  Optionee understands that the Company is relying on the truth and accuracy of the representations, declarations and warranties made by Optionee in this Notice of Exercise in offering the Stock for sale to Optionee and in determining the availability of certain exemptions under applicable securities laws.

3. The foregoing representations and warranties and undertakings are made by Optionee with the intent that the Company may rely upon them in determining his or her suitability as an investor.  Optionee agrees that such representations and warranties shall survive his or her investment.  Optionee agrees to indemnify and hold harmless the Company from any damages, claims, expenses, losses or actions resulting from the untruth of any of the representations and warranties of Optionee contained in this Notice of Exercise.  

4. Capitalized terms used in this Notice of Exercise but not defined herein have the meanings set forth in the Agreement. 

 

	
Date:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
OPTIONEE:

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