Document:

WIZARD
WORLD, INC.

 

THIRD
AMENDED AND RESTATED 2011 INCENTIVE STOCK AND AWARD PLAN

 

	1.	Purpose
                                         of the Plan.

 

(a) This
2011 Incentive Stock and Award Plan (the “Plan”) is intended as an incentive to retain in the employ of and
as directors, officers, consultants, attorneys, advisors and employees to Wizard World, Inc., a Delaware corporation (the “Company”),
and any Subsidiary of the Company, within the meaning of Section 424(f) of the United States Internal Revenue Code of 1986, as
amended (the “Code”), persons of training, experience and ability, to attract new directors, officers, consultants,
attorneys, advisors and employees whose services are considered valuable, to encourage the sense of proprietorship and to stimulate
the active interest of such persons in the development and financial success of the Company and its Subsidiaries.

 

(b) It
is further intended that certain options granted pursuant to the Plan shall constitute incentive stock options within the meaning
of Section 422 of the Code (the “Incentive Options”) while certain other options granted pursuant to the Plan
shall be nonqualified stock options (the “Nonqualified Options”). Incentive Options and Nonqualified Options
are hereinafter referred to collectively as “Options.”

 

(c) The
Company intends that the Plan meet the requirements of Rule 16b-3 (“Rule 16b-3”) promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and that transactions of the type specified in subparagraphs
(c) to (f) inclusive of Rule 16b-3 by officers and directors of the Company pursuant to the Plan will be exempt from the operation
of Section 16(b) of the Exchange Act. Further, the Plan is intended to satisfy the performance-based compensation exception to
the limitation on the Company’s tax deductions imposed by Section 162(m) of the Code with respect to those Options for which
qualification for such exception is intended. In all cases, the terms, provisions, conditions and limitations of the Plan shall
be construed and interpreted consistent with the Company’s intent as stated in this Section 1.

 

	2.	Administration
                                         of the Plan.

 

(a) The
Board of Directors of the Company (the “Board”) shall appoint and maintain as administrator of the Plan a Committee
(the “Committee”) consisting of two or more directors who are (i) “Independent Directors” (as such
term is defined under the rules of the NASDAQ Stock Market), (ii) “Non-Employee Directors” (as such term is defined
in Rule 16b-3) and (iii) “Outside Directors” (as such term is defined in Section 162(m) of the Code), which shall
serve at the pleasure of the Board. The Committee, subject to Sections 3, 5 and 6 hereof, shall have full power and authority
to designate recipients of Options and restricted stock (“Restricted Stock”) and to determine the terms and
conditions of the respective Option and Restricted Stock agreements (which need not be identical) and to interpret the provisions
and supervise the administration of the Plan. The Committee shall have the authority, without limitation, to designate which Options
granted under the Plan shall be Incentive Options and which shall be Nonqualified Options. To the extent any Option does not qualify
as an Incentive Option, it shall constitute a separate Nonqualified Option.

 

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(b) Subject
to the provisions of the Plan, the Committee shall interpret the Plan and all Options and Restricted Stock granted under the Plan,
shall make such rules as it deems necessary for the proper administration of the Plan, shall make all other determinations necessary
or advisable for the administration of the Plan, and shall correct any defects or supply any omission or reconcile any inconsistency
in the Plan or in any Options or Restricted Stock granted under the Plan in the manner and to the extent that the Committee deems
desirable to carry into effect the Plan or any Options or Restricted Stock. The act or determination of a majority of the Committee
shall be the act or determination of the Committee and any decision reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority of the Committee at a meeting duly held for such purpose.
Subject to the provisions of the Plan, any action taken or determination made by the Committee pursuant to this and the other
Sections of the Plan shall be conclusive on all parties.

 

(c) In
the event that for any reason the Committee is unable to act or if the Committee at the time of any grant, award or other acquisition
under the Plan does not consist of two or more Non-Employee Directors, or if there shall be no such Committee, or if the Board
otherwise determines to administer the Plan, then the Plan shall be administered by the Board, and references herein to the Committee
(except in the proviso to this sentence) shall be deemed to be references to the Board, and any such grant, award or other acquisition
may be approved or ratified in any other manner contemplated by subparagraph (d) of Rule 16b-3; provided, however,
that grants to the Company’s Chief Executive Officer or to any of the Company’s other four most highly compensated
officers that are intended to qualify as performance-based compensation under Section 162(m) of the Code may only be granted by
the Committee.

 

		3.	Designation
                                         of Optionees and Grantees.

 

(a) The
persons eligible for participation in the Plan as recipients of Options (the “Optionees”) or Restricted Stock
(the “Grantees” and together with Optionees, the “Participants”) shall include directors,
officers and employees of, and consultants, attorneys and advisors to, the Company or any Subsidiary; provided that Incentive
Options may only be granted to employees of the Company and any Subsidiary. In selecting Participants, and in determining the
number of shares to be covered by each Option or award of Restricted Stock granted to Participants, the Committee may consider
any factors it deems relevant, including, without limitation, the office or position held by the Participant or the Participant’s
relationship to the Company, the Participant’s degree of responsibility for and contribution to the growth and success of
the Company or any Subsidiary, the Participant’s length of service, promotions and potential. A Participant who has been
granted an Option or Restricted Stock hereunder may be granted an additional Option or Options, or Restricted Stock if the Committee
shall so determine.

 

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(b) In
the absence of any date specified for grant, the Committee’s grant of Options or award of Restricted Stock shall be deemed
to have been made effective on the first business day of each March, June, September or December of any calendar year, or on such
other pre-determined dates as maybe set by the Committee (the “Pre-Determined Grant Dates”). Notwithstanding
the foregoing, the Committee may grant Options or award restricted Stock to any employee, officer, director, consultant, attorney
or advisor to the Company as an inducement to such person, in consideration for such person to enter into any agreement or to
provide to the Company, for prior services rendered, or for any other reason determined by the Committee for award, in its sole
discretion other than on a Pre-Determined Grant Date.

 

4. Stock
Reserved for the Plan. Subject to adjustment as provided in Section 8 hereof, a total of fifteen million (15,000,000) shares
of the Company’s common stock, par value $0.0001 per share (the “Stock”), shall be subject to the Plan. The
maximum number of shares of Stock that may be subject to Options shall conform to any requirements applicable to performance-based
compensation under Section 162(m) of the Code, if qualification as performance-based compensation under Section 162(m) of the
Code is intended. The shares of Stock subject to the Plan shall consist of unissued shares, treasury shares or previously issued
shares held by any Subsidiary of the Company, and such amount of shares of Stock shall be and is hereby reserved for such purpose.
Any of such shares of Stock that may remain unsold and that are not subject to outstanding Options at the termination of the Plan
shall cease to be reserved for the purposes of the Plan, but until termination of the Plan the Company shall at all times reserve
a sufficient number of shares of Stock to meet the requirements of the Plan. Should any Option or Restricted Stock expire or be
canceled prior to its exercise or vesting in full or should the number of shares of Stock to be delivered upon the exercise or
vesting in full of any Option or Restricted Stock be reduced for any reason, the shares of Stock theretofore subject to such Option
or Restricted Stock may be subject to future Options or Restricted Stock under the Plan, except where such reissuance is inconsistent
with the provisions of Section 162(m) of the Code where qualification as performance-based compensation under Section 162(m) of
the Code is intended.

  

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5. Terms
and Conditions of Options. Options granted under the Plan shall be subject to the following conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable:

 

(a) Option
Price. The purchase price of each share of Stock purchasable under an Incentive Option shall be determined by the Committee
at the time of grant, but shall not be less than 100% of the Fair Market Value (as defined below) of such share of Stock on the
date the Option is granted; provided, however, that with respect to an Optionee who, at the time such Incentive
Option is granted, owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of
all classes of stock of the Company or of any Subsidiary, the purchase price per share of Stock shall be at least 110% of the
Fair Market Value per share of Stock on the date of grant. The purchase price of each share of Stock purchasable under a Nonqualified
Option shall be at least 100% of the Fair Market Value of such share of Stock on the date the Option is granted, unless the
Committee, in its sole and absolute discretion, determines to set the purchase price of such Nonqualified Option below Fair Market
Value. The exercise price for each Option shall be subject to adjustment as provided in Section 8 below. “Fair Market
Value” means:

 

	 	(i)	the
    closing price on the final trading day immediately prior to the grant of the Stock on (x) the principal securities exchange
    on which shares of Stock are listed (if the shares of Stock are so listed) or (y) on the NASDAQ Stock Market, OTC Markets
    or OTC Bulletin Board (if the shares of Stock are regularly listed or quoted on the NASDAQ Stock Market, OTC Markets or OTC
    Bulletin Board, as the case may be); or
	 	 	 
	 	(ii)	if
    not so listed or quoted, as applicable, the mean between the closing bid and asked prices of publicly traded shares of Stock
    in the over the counter market on the final trading day immediately prior to the grant of the Stock; or
	 	 	 
	 	(iii)	if
    such bid and asked prices shall not be available, as reported by any nationally recognized quotation service selected by the
    Company on the final trading day immediately prior to the grant of the Stock. Anything in this Section 5(a) to the contrary
    notwithstanding, in no event shall the purchase price of a share of Stock be less than the minimum price permitted under the
    rules and policies of any national securities exchange on which the shares of Stock are listed, as applicable;”

 

(b) Option
Term. The term of each Option shall be fixed by the Committee, but no Option shall be exercisable more than five (5) years
after the date such Option is granted and in the case of an Incentive Option granted to an Optionee who, at the time such Incentive
Option is granted, owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of
all classes of stock of the Company or of any Subsidiary, no such Incentive Option shall be exercisable more than five years after
the date such Incentive Option is granted; and

 

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(c) Exercisability.

 

	 	(i)	Subject
    to Section 5(j) hereof, Options shall be exercisable at such time or times and subject to such terms and conditions as shall
    be determined by the Committee at the time of grant; provided, however, that in the absence of any Option vesting
    periods designated by the Committee at the time of grant, Options shall vest and become exercisable in equal amounts on each
    fiscal quarter of the Company through the four (4) year anniversary of the date of grant; and provided further that
    no Options shall be exercisable until such time as any vesting limitation required by Section 16 of the Exchange Act, and
    related rules, shall be satisfied if such limitation shall be required for continued validity of the exemption provided under
    Rule 16b-3(d)(3).
	 	 	 
	 	(ii)	Upon
    the occurrence of a Change in Control (as hereinafter defined), the Committee may accelerate the vesting and exercisability
    of outstanding Options, in whole or in part, as determined by the Committee in its sole discretion. In its sole discretion,
    the Committee may also determine that, upon the occurrence of a Change in Control, each outstanding Option shall terminate
    within a specified number of days after notice to the Optionee thereunder, and each such Optionee shall receive, with respect
    to each share of Company Stock subject to such Option, an amount equal to the excess of the Fair Market Value of such shares
    immediately prior to such Change in Control over the exercise price per share of such Option; such amount shall be payable
    in cash, in one or more kinds of property (including the property, if any, payable in the transaction) or a combination thereof,
    as the Committee shall determine in its sole discretion.
	 	 	 
	 	(iii)	For
    purposes of the Plan, unless otherwise defined in an employment agreement between the Company and the relevant Optionee, a
    “Change in Control” shall be deemed to have occurred if:

 

	 	(A)	a
    tender offer (or series of related offers) shall be made and consummated for the ownership of fifty percent (50%) or more
    of the outstanding voting securities of the Company, unless as a result of such tender offer more than fifty percent (50%)
    of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders
    of the Company (as of the time immediately prior to the commencement of such offer), any employee benefit plan of the Company
    or its Subsidiaries, and their affiliates;
	 	 	 
	 	(B)	the
    Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more
    than fifty percent (50%) of the outstanding voting securities of the surviving or resulting corporation shall be owned in
    the aggregate by the stockholders of the Company (as of the time immediately prior to such transaction), any employee benefit
    plan of the Company or its Subsidiaries, and their affiliates;
	 	 	 
	 	(C)	the
    Company shall sell substantially all of its assets to another corporation that is not wholly owned by the Company, unless
    as a result of such sale more than fifty percent (50%) of such assets shall be owned in the aggregate by the stockholders
    of the Company (as of the time immediately prior to such transaction), any employee benefit plan of the Company or its Subsidiaries
    and their affiliates; or

 

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	 	(D)	a
    Person (as defined below) shall acquire fifty percent (50%) or more of the outstanding voting securities of the Company (whether
    directly, indirectly, beneficially or of record), unless as a result of such acquisition more than fifty percent (50%) of
    the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders
    of the Company (as of the time immediately prior to the first acquisition of such securities by such Person), any employee
    benefit plan of the Company or its Subsidiaries, and their affiliates.

 

	 	(iv)	Notwithstanding
    Section 5(c)(iii) above, if Change of Control is defined in an employment agreement between the Company and the relevant Optionee,
    then, with respect to such Optionee, Change of Control shall have the meaning ascribed to it in such employment agreement.
	 	 	 
	 	(v)	For
    purposes of this Section 5(c), ownership of voting securities shall take into account and shall include ownership as determined
    by applying the provisions of Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Exchange Act. In addition, for
    such purposes, “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
    and used in Sections 13(d) and 14(d) thereof; provided, however, that a Person shall not include (A) the Company
    or any of its Subsidiaries; (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company
    or any of its Subsidiaries; (C) an underwriter temporarily holding securities pursuant to an offering of such securities;
    or (D) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion
    as their ownership of stock of the Company.

 

(d) Method
of Exercise. Options to the extent then exercisable may be exercised in whole or in part at any time during the option period,
by giving written notice to the Company specifying the number of shares of Stock to be purchased, accompanied by payment in full
of the purchase price, in cash, or by check or such other instrument as may be acceptable to the Committee. As determined by the
Committee, in its sole discretion, at or after grant, payment in full or in part may be made at the election of the Optionee (i)
in the form of Stock owned by the Optionee (based on the Fair Market Value of the Stock which is not the subject of any pledge
or security interest, (ii) in the form of shares of Stock withheld by the Company from the shares of Stock otherwise to be received
with such withheld shares of Stock having a Fair Market Value equal to the exercise price of the Option, or (iii) by a combination
of the foregoing, such Fair Market Value determined by applying the principles set forth in Section 5(a), provided that
the combined value of all cash and cash equivalents and the Fair Market Value of any shares surrendered to the Company is at least
equal to such exercise price and except with respect to (ii) above, such method of payment will not cause a disqualifying disposition
of all or a portion of the Stock received upon exercise of an Incentive Option. An Optionee shall have the right to dividends
and other rights of a stockholder with respect to shares of Stock purchased upon exercise of an Option at such time as the Optionee
(i) has given written notice of exercise and has paid in full for such shares, and (ii) has satisfied such conditions that may
be imposed by the Company with respect to the withholding of taxes.

 

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(e) Non-transferability
of Options. Options are not transferable and may be exercised solely by the Optionee during his lifetime or after his death
by the person or persons entitled thereto under his will or the laws of descent and distribution. The Committee, in its sole discretion,
may permit a transfer of a Nonqualified Option to (i) a trust for the benefit of the Optionee, (ii) a member of the Optionee’s
immediate family (or a trust for his or her benefit) or (iii) pursuant to a domestic relations order. Any attempt to transfer,
assign, pledge or otherwise dispose of, or to subject to execution, attachment or similar process, any Option contrary to the
provisions hereof shall be void and ineffective and shall give no right to the purported transferee.

 

(f) Termination
by Death. Unless otherwise determined by the Committee, if any Optionee’s employment with or service to the Company
or any Subsidiary terminates by reason of death, the Option may thereafter be exercised, to the extent then exercisable (or on
such accelerated basis as the Committee shall determine at or after grant), by the legal representative of the estate or by the
legatee of the Optionee under the will of the Optionee, for a period of one (1) year after the date of such death (or, if later,
such time as the Option may be exercised pursuant to Section 14(d) hereof) or until the expiration of the stated term of such
Option as provided under the Plan, whichever period is shorter.

 

(g) Termination
by Reason of Disability. Unless otherwise determined by the Committee, if any Optionee’s employment with or service
to the Company or any Subsidiary terminates by reason of Disability (as defined below), then any Option held by such Optionee
may thereafter be exercised, to the extent it was exercisable at the time of termination due to Disability (or on such accelerated
basis as the Committee shall determine at or after grant), but may not be exercised after ninety (90) days after the date of such
termination of employment or service (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof)
or the expiration of the stated term of such Option, whichever period is shorter; provided, however, that, if the
Optionee dies within such ninety (90) day period, any unexercised Option held by such Optionee shall thereafter be exercisable
to the extent to which it was exercisable at the time of death for a period of one (1) year after the date of such death (or,
if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or for the stated term of such Option, whichever
period is shorter. “Disability” shall mean an Optionee’s total and permanent disability; provided,
that if Disability is defined in an employment agreement between the Company and the relevant Optionee, then, with respect to
such Optionee, Disability shall have the meaning ascribed to it in such employment agreement.

 

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(h) Termination
by Reason of Retirement.

 

	 	(i)	Unless
    otherwise determined by the Committee, if any Optionee’s employment with or service to the Company or any Subsidiary
    terminates by reason of Normal or Early Retirement (as such terms are defined below), any Option held by such Optionee may
    thereafter be exercised to the extent it was exercisable at the time of such Retirement (or on such accelerated basis as the
    Committee shall determine at or after grant), but may not be exercised after ninety (90) days after the date of such termination
    of employment or service (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or the
    expiration of the stated term of such Option, whichever date is earlier; provided, however, that, if the Optionee
    dies within such ninety (90) day period, any unexercised Option held by such Optionee shall thereafter be exercisable, to
    the extent to which it was exercisable at the time of death, for a period of one (1) year after the date of such death (or,
    if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or for the stated term of such Option,
    whichever period is shorter.
	 	 	 
	 	(ii)	For
    purposes of this paragraph (h), “Normal Retirement” shall mean retirement from active employment with the
    Company or any Subsidiary on or after the normal retirement date specified in the applicable Company or Subsidiary pension
    plan or if no such pension plan, age 65, and “Early Retirement” shall mean retirement from active employment
    with the Company or any Subsidiary pursuant to the early retirement provisions of the applicable Company or Subsidiary pension
    plan or if no such pension plan, age 55.

 

(i) Other
Terminations. Unless otherwise determined by the Committee upon grant, if any Optionee’s employment with or service
to the Company or any Subsidiary is terminated by such Optionee for any reason other than death, Disability, Normal or Early Retirement
or Good Reason (as defined below), the Option shall thereupon terminate, except that the portion of any Option that was exercisable
on the date of such termination of employment or service may be exercised for the lesser of ninety (90) days after the date of
termination (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof) or the balance of such Option’s
term, which ever period is shorter. The transfer of an Optionee from the employ of or service to the Company to the employ of
or service to a Subsidiary, or vice versa, or from one Subsidiary to another, shall not be deemed to constitute a termination
of employment or service for purposes of the Plan.

 

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	 	(i)	In
    the event that the Optionee’s employment or service with the Company or any Subsidiary is terminated by the Company
    or such Subsidiary for Cause (as defined below) any unexercised portion of any Option shall immediately terminate in its entirety.
    For purposes hereof, unless otherwise defined in an employment agreement between the Company and the relevant Optionee, “Cause”
    shall exist upon a good-faith determination by the Board, following a hearing before the Board at which an Optionee was represented
    by counsel and given an opportunity to be heard, that such Optionee has been accused of fraud, dishonesty or act detrimental
    to the interests of the Company or any Subsidiary of the Company or that such Optionee has been accused of or convicted of
    an act of willful and material embezzlement or fraud against the Company or any Subsidiary of the Company or of a felony under
    any state or federal statute; provided, however, that it is specifically understood that Cause shall not include
    any act of commission or omission in the good faith exercise of such Optionee’s business judgment as a director, officer
    or employee of the Company, as the case may be, or upon the advice of counsel to the Company. Notwithstanding the foregoing,
    if Cause is defined in an employment agreement between the Company and the relevant Optionee, then, with respect to such Optionee,
    Cause shall have the meaning ascribed to it in such employment agreement.
	 	 	 
	 	(ii)	In
    the event that an Optionee is removed as a director, officer or employee by the Company at any time other than for Cause or
    resigns as a director, officer or employee for Good Reason, the Option granted to such Optionee may be exercised by the Optionee,
    to the extent the Option was exercisable on the date such Optionee ceases to be a director, officer or employee. Such Option
    may be exercised at any time within one (1) year after the date the Optionee ceases to be a director, officer or employee
    (or, if later, such time as the Option may be exercised pursuant to Section 14(d) hereof), or the date on which the Option
    otherwise expires by its terms; whichever period is shorter, at which time the Option shall terminate; provided, however,
    if the Optionee dies before the Options terminate and are no longer exercisable, the terms and provisions of Section 5(f)
    shall control. For purposes of this Section 5(i), and unless otherwise defined in an employment agreement between the Company
    and the relevant Optionee, “Good Reason” shall exist upon the occurrence of the following:

 

	 	(A)	the
    assignment to Optionee of any duties inconsistent with the position in the Company that Optionee held immediately prior to
    the assignment;
	 	 	 
	 	(B)	a
    Change of Control resulting in a significant adverse alteration in the status or conditions of Optionee’s participation
    with the Company or other nature of Optionee’s responsibilities from those in effect prior to such Change of Control,
    including any significant alteration in Optionee’s responsibilities immediately prior to such Change in Control; or
	 	 	 
	 	(C)	the
    failure by the Company to continue to provide Optionee with benefits substantially similar to those enjoyed by Optionee prior
    to such failure.

 

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	 	(iii)	Notwithstanding
    the foregoing, if Good Reason is defined in an employment agreement between the Company and the relevant Optionee, then, with
    respect to such Optionee, Good Reason shall have the meaning ascribed to it in such employment agreement.

 

(j)
Limit on Value of Incentive Option. The aggregate Fair Market Value, determined as of the date the Incentive Option is
granted, of Stock for which Incentive Options are exercisable for the first time by any Optionee during any calendar year under
the Plan (and/or any other stock option plans of the Company or any Subsidiary) shall not exceed $100,000.

 

6. Terms
and Conditions of Restricted Stock. Restricted Stock may be granted under this Plan aside from, or in association with, any
other award and shall be subject to the following conditions and shall contain such additional terms and conditions (including
provisions relating to the acceleration of vesting of Restricted Stock upon a Change of Control), not inconsistent with the terms
of the Plan, as the Committee shall deem desirable:

 

(a) Grantee
rights. A Grantee shall have no rights to an award of Restricted Stock unless and until Grantee accepts the award within the
period prescribed by the Committee and, if the Committee shall deem desirable, makes payment to the Company in cash, or by check
or such other instrument as may be acceptable to the Committee. After acceptance and issuance of a certificate or certificates,
as provided for below, the Grantee shall have the rights of a stockholder with respect to Restricted Stock subject to the non-transferability
and forfeiture restrictions described in Section 6(d) below;

 

(b) Issuance
of Certificates. The Company shall issue in the Grantee’s name a certificate or certificates for the shares of Common
Stock associated with the award promptly after the Grantee accepts such award;

 

(c) Delivery
of Certificates. Unless otherwise provided, any certificate or certificates issued evidencing shares of Restricted Stock shall
not be delivered to the Grantee until such shares are free of any restrictions specified by the Committee at the time of grant;

 

(d) Forfeitability,
Non-transferability of Restricted Stock. Shares of Restricted Stock are forfeitable until the terms of the Restricted Stock
grant have been satisfied. Shares of Restricted Stock are not transferable until the date on which the Committee has specified
such restrictions have lapsed. Unless otherwise provided by the Committee at or after grant, distributions in the form of dividends
or otherwise of additional shares or property in respect of shares of Restricted Stock shall be subject to the same restrictions
as such shares of Restricted Stock;

 

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(e) Change
of Control. Upon the occurrence of a Change in Control as defined in Section 5(c) above, the Committee may accelerate the
vesting of outstanding Restricted Stock, in whole or in part, as determined by the Committee in its sole discretion; or

 

(f) Termination
of Employment. Unless otherwise determined by the Committee at or after grant, in the event the Grantee ceases to be an employee
or otherwise associated with the Company for any other reason, all shares of Restricted Stock theretofore awarded to him which
are still subject to restrictions shall be forfeited and the Company shall have the right to complete the blank stock power. The
Committee may provide (on or after grant) that restrictions or forfeiture conditions relating to shares of Restricted Stock will
be waived in whole or in part in the event of termination resulting from specified causes, and the Committee may in other cases
waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock.

 

7. Term
of Plan. No Option or award of Restricted Stock shall be granted pursuant to the Plan on or after the date which is five (5)
years from the effective date of the Plan, but Options and awards of Restricted Stock theretofore granted may extend beyond that
date.

 

8. Capital
Change of the Company.

 

(a) In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend, or other change in corporate structure
affecting the Stock, the Committee shall make an appropriate and equitable adjustment in the number and kind of shares reserved
for issuance under the Plan and in the number and option price of shares subject to outstanding Options granted under the Plan,
to the end that after such event each Optionee’s proportionate interest shall be maintained (to the extent possible) as
immediately before the occurrence of such event. The Committee shall, to the extent feasible, make such other adjustments as may
be required under the tax laws so that any Incentive Options previously granted shall not be deemed modified within the meaning
of Section 424(h) of the Code. Appropriate adjustments shall also be made in the case of outstanding Restricted Stock granted
under the Plan.

 

(b) The
adjustments described above will be made only to the extent consistent with continued qualification of the Option under Section
422 of the Code (in the case of an Incentive Option) and Section 409A of the Code.

 

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9. Purchase
for Investment/Conditions. Unless the Options and shares covered by the Plan have been registered under the Securities Act
of 1933, as amended (the “Securities Act”), or the Company has determined that such registration is unnecessary,
each person exercising or receiving Options or Restricted Stock under the Plan may be required by the Company to give a representation
in writing that such person is acquiring the securities for such person’s own account for investment and not with a view
to, or for sale in connection with, the distribution of any part thereof. The Committee may impose any additional or further restrictions
on awards of Options or Restricted Stock as shall be determined by the Committee at the time of award.

 

10. Taxes.

 

(a) The
Company may make such provisions as it may deem appropriate, consistent with applicable law, in connection with any Options or
Restricted Stock granted under the Plan with respect to the withholding of any taxes (including income or employment taxes) or
any other tax matters.

 

(b) If
any Grantee, in connection with the acquisition of Restricted Stock, makes the election permitted under Section 83(b) of the Code
(that is, an election to include in gross income in the year of transfer the amounts specified in Section 83(b)), such Grantee
shall notify the Company of the election with the Internal Revenue Service pursuant to regulations issued under the authority
of Code Section 83(b).

 

(c) If
any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Option under the circumstances
described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such Grantee shall notify the Company
of such disposition within ten (10) days thereof.

 

11. Effective
Date of Plan. The Plan shall be effective on May 9, 2011; provided, however, that if, and only if, certain options
are intended to qualify as Incentive Stock Options, the Plan must subsequently be approved by majority vote of the Company’s
stockholders no later than May 9, 2012, and further, that in the event certain Option grants hereunder are intended to qualify
as performance-based compensation within the meaning of Section 162(m) of the Code, the requirements as to stockholder approval
set forth in Section 162(m) of the Code are satisfied.

 

    	12

    	 

    

 

12. Amendment
and Termination.

 

(a) The
Board may amend, suspend, or terminate the Plan, except that no amendment shall be made that would impair the rights of any Participant
under any Option or Restricted Stock theretofore granted without the Participant’s consent, and except that no amendment
shall be made which, without the approval of the stockholders of the Company, would:

 

	 	(i)	materially
    increase the number of shares that may be issued under the Plan, except as is provided in Section 8;
	 	 	 
	 	(ii)	materially
    increase the benefits accruing to the Participants under the Plan;
	 	 	 
	 	(iii)	materially
    modify the requirements as to eligibility for participation in the Plan;
	 	 	 
	 	(iv)	decrease
    the exercise price of an Incentive Option to less than 100% of the Fair Market Value per share of Stock on the date of grant
    thereof or the exercise price of a Nonqualified Option to less than 100% of the Fair Market Value per share of Stock on the
    date of grant thereof;
	 	 	 
	 	(v)	extend
    the term of any Option beyond that provided for in Section 5(b); or
	 	 	 
	 	(vi)	except
    as otherwise provided in Sections 5(d) and 8 hereof, reduce the exercise price of outstanding Options or effect repricing
    through cancellations and re-grants of new Options.

 

(b) Subject
to the forgoing, the Committee may amend the terms of any Option theretofore granted, prospectively or retrospectively, but no
such amendment shall impair the rights of any Optionee without the Optionee’s consent.

 

(c) It
is the intention of the Board that the Plan comply strictly with the provisions of Section 409A of the Code and Treasury Regulations
and other Internal Revenue Service guidance promulgated thereunder (the “Section 409A Rules”) and the Committee
shall exercise its discretion in granting awards hereunder (and the terms of such awards), accordingly. The Plan and any grant
of an award hereunder may be amended from time to time (without, in the case of an award, the consent of the Participant) as may
be necessary or appropriate to comply with the Section 409A Rules.

 

13. Government
Regulations. The Plan, and the grant and exercise of Options or Restricted Stock hereunder, and the obligation of the Company
to sell and deliver shares under such Options and Restricted Stock shall be subject to all applicable laws, rules and regulations,
and to such approvals by any governmental agencies, national securities exchanges and interdealer quotation systems as may be
required.

 

14. General
Provisions.

 

(a) Certificates.
All certificates for shares of Stock delivered under the Plan shall be subject to such stop transfer orders and other restrictions
as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission,
or other securities commission having jurisdiction, any applicable Federal or state securities law, any stock exchange or interdealer
quotation system upon which the Stock is then listed or traded and the Committee may cause a legend or legends to be placed on
any such certificates to make appropriate reference to such restrictions.

 

    	13

    	 

    

 

(b) Employment
Matters. Neither the adoption of the Plan nor any grant or award under the Plan shall confer upon any Participant who is an
employee of the Company or any Subsidiary any right to continued employment or, in the case of a Participant who is a director,
continued service as a director, with the Company or a Subsidiary, as the case may be, nor shall it interfere in any way with
the right of the Company or any Subsidiary to terminate the employment of any of its employees, the service of any of its directors
or the retention of any of its consultants, attorneys or advisors at any time.

 

(c) Limitation
of Liability. No member of the Committee, or any officer or employee of the Company acting on behalf of the Committee, shall
be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan, and
all members of the Committee and each and any officer or employee of the Company acting on their behalf shall, to the extent permitted
by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation.

 

(d) Registration
of Stock. Notwithstanding any other provision in the Plan, no Option may be exercised unless and until the Stock to be issued
upon the exercise thereof has been registered under the Securities Act and applicable state securities laws, or are, in the opinion
of counsel to the Company, exempt from such registration in the United States. The Company shall not be under any obligation to
register under applicable federal or state securities laws any Stock to be issued upon the exercise of an Option granted hereunder
in order to permit the exercise of an Option and the issuance and sale of the Stock subject to such Option, although the Company
may in its sole discretion register such Stock at such time as the Company shall determine. If the Company chooses to comply with
such an exemption from registration, the Stock issued under the Plan may, at the direction of the Committee, bear an appropriate
restrictive legend restricting the transfer or pledge of the Stock represented thereby, and the Committee may also give appropriate
stop transfer instructions with respect to such Stock to the Company’s transfer agent.

 

(e) Transferability
in accordance with SEC Release No. 33-7646 entitled “Registration of Securities on Form S-8,” as effective April 7,
1999. Notwithstanding anything to the contrary as may be contained in this Plan regarding rights as to transferability or
lack thereof, all options granted hereunder may and shall be transferable to the extent permitted in accordance with SEC Release
No. 33-7646 entitled “Registration of Securities on Form S-8,” as effective April 7, 1999, and in particular in accordance
with that portion of such Release which expands Form S-8 to include stock option exercised by family members so that the rules
governing the use of Form S-8 (i) do not impede legitimate intra-family transfer of options and (ii) may facilitate transfer for
estate planning purposes, all as more specifically defined in Article III, Sections A and B thereto, the contents of which are
herewith incorporated by reference.

 

15. Non-Uniform
Determinations. The Committee’s determinations under the Plan, including, without limitation, (i) the determination
of the Participants to receive awards, (ii) the form, amount and timing of such awards, (iii) the terms and provisions of such
awards and (ii) the agreements evidencing the same, need not be uniform and may be made by it selectively among Participants who
receive, or who are eligible to receive, awards under the Plan, whether or not such Participants are similarly situated.

 

16. Governing
Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined
in accordance with the internal laws of the State of Delaware, without giving effect to principles of conflicts of laws, and applicable
federal law.

 

    	14Prepared by R.R. Donnelley Financial -- EX-10.21

 Exhibit 10.21 

LOAN AGREEMENT 

This Loan Agreement (this “Agreement”) is made and entered into as of September 29, 2014 (the
“Agreement Date”), by and between (i) Dr. Ernest Mario (“Mario”), Vivo Ventures Fund V, L.P. and Vivo Ventures V Affiliates Fund, L.P. (together, “Vivo”) (each a “Lender” and
together, the “Lenders”), and (ii) Capnia, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein without definition shall have the respective meanings set forth in Section 5. 

WHEREAS, subject to and upon the terms and conditions set forth herein, Lenders
may make one or more Loans to the Company in an aggregate principal amount of up to $100,000; and 

WHEREAS, subject to and upon the terms and conditions set forth herein, the Company will issue the Notes
to Lenders to evidence the Loans. 
 NOW, THEREFORE, in
consideration of the mutual promises and agreements set forth herein, the parties hereto agree as follows: 
  

	1.	LOANS TO THE COMPANY 

 1.1
        Making of Loans by Lenders. On each of the Closing Dates, and subject to the conditions set forth in this Section 1, Lenders, or any Affiliates of Lenders designated prior to the applicable
Closing Date, shall make a loan to the Company in the principal amount requested by the Company (each, a “Loan”), with Mario contributing thirty percent (30%), Vivo Ventures Fund V, L.P. sixty-nine and one hundred eighty-eight
thousandths percent (69.188%), and Vivo Ventures V Affiliates Fund, L.P. eight hundred twelve thousandths percent (0.812%), of the principal amount requested by the Company at each Closing Date. In no event shall the aggregate principal amount
of all Loans made under this Agreement exceed $30,000 from Mario, $69,188 from Vivo Ventures Fund V, L.P., nor $812 from Vivo Ventures V Affiliates Fund, L.P. 

1.2         Closings. 

(a)         Closings of the Loans. The Company shall be entitled to deliver to
each Lender a Loan Request in the form attached hereto as Exhibit A (a “Loan Request”) requesting a Loan and indicating on such Loan Request the principal amount of such Loan being requested by the Company with respect to
such Loan. The closing of each Loan (each, a “Closing, and together, the “Closings”) shall occur at such time and place as the Company may determine (each such date, a “Closing Date” and together, the
“Closing Dates”. 
 (b)         Issuance of Notes. At each
Closing, the Company shall deliver, or cause to be delivered, a promissory note or notes in the form of Exhibit B attached hereto (each, a “Note”, and together, the “Notes”) to be issued to each Lenders (or
its designated Affiliates) at such Closing in the principal amount of such Loan, in the name of Lender or such Affiliate and validly executed by the Company as borrower. 

(c)         Lender shall make payment of the applicable Loan on the applicable
Closing Date by wire transfer pursuant to wiring instructions provided by the Company. 
 1.3
        Conditions of Lender to Making of each Loan. The obligation of Lender to make each Loan on the applicable Closing Date is conditioned upon the satisfaction by the Company of each of the
following conditions, and the waiver of satisfaction of such conditions shall not be effective against Lender unless consented to in writing by Lender: 

 (a)         Representations and
Warranties. Each of the representations and warranties of the Company contained in this Agreement shall have been true and correct in all material respects at the time originally made; 

(b)         Performance of Obligations. The Company shall have performed and
complied in all material respects with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the applicable Closing Date; 

(c)         Consents and Waivers. The Company shall have obtained all
consents, permits and waivers necessary for the borrowing of the Loans and the issuance of the Notes and the same shall be effective as of the applicable Closing Date; and 

(d)         Qualifications. To the extent not provided to Lender prior to the
applicable Closing Date, the Company shall deliver to Lender copies of all authorizations, approvals or permits, if any, of any Governmental Authority or regulatory body of the United States or of any state or foreign country that are required prior
to closing in connection with the lawful issuance of the Notes to Lender pursuant to this Agreement. 
  

	2.	LOAN PROVISIONS 

 2.1
        Interest. Interest on the Loans shall accrue at the rate of six percent (6%) per annum, simple interest. 

2.2         Repayment of Loans. Each Loan shall be repayable in the manner
specified in the Notes. As provided in the Notes, the Loans shall be prepayable at the option of the Company. 

3.         REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to Lender that the following representations are true and complete as of the Agreement Date and as of each Closing Date, except as otherwise indicated. 

3.1         Organization, Good Standing and Qualification. The Company is a
corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed to be conducted. The
Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect on the Company. The Company has all requisite power and authority to execute and
deliver the Transaction Documents and the Notes and all other documents and certificates to be executed by the Company pursuant to the Transaction Documents and the Notes and to consummate the transactions and perform its obligations contemplated
hereby and thereby. 
 3.2         Governmental Consents and Filings. No
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of
the transactions contemplated by this Agreement, except for filings pursuant to applicable state securities laws, which have been made or will be made in a timely manner. 

3.3         Authorization; Approvals. All corporate action on the part of the
Company, its stockholders and directors necessary for the authorization, execution, delivery, and performance of all of the Company’s obligations under the Transaction Documents and the Notes, has been (or will be) taken prior to the Closing.
The Transaction Documents and the Notes, when executed and delivered by or on behalf of the Company, shall be duly and validly authorized, executed and delivered by the Company and 

  
 2 

 
shall constitute the valid and legally binding obligations of the Company, legally enforceable against the Company in accordance with their respective terms, except as such obligations and
enforceability may be limited by applicable bankruptcy and other similar laws affecting the enforcement of creditors’ rights generally and except that the availability of equitable remedies is subject to the discretion of the court before which
any proceeding therefor may be brought (whether in law or in equity). No consent, approval, order, license, permit, action by, or authorization of or designation, declaration, or filing with any governmental authority on the part of the Company is
required that has not been, or will not have been obtained by the Company prior to the Closing in connection with the valid execution, delivery and performance of the Transaction Documents or the issuance of the Notes. 

 

	4.	CERTAIN COVENANTS 

 4.1
        Affirmative Covenants. Unless Lender shall otherwise agree in writing, the Company covenants and agrees that, so long as any Note is outstanding: 

(a)         Punctual Payment. The Company will duly and punctually pay or
cause to be paid the principal and interest under the Notes and all other amounts provided for in the Notes, all in accordance with the terms hereof and thereof; 

(b)         Defaults. The Company will, promptly upon becoming aware
thereof, notify Lender in writing of any Event of Default, together with a reasonably detailed description thereof, and the actions the Company proposes to take with respect thereto; 

(c)         Legal Existence and Good Standing. The Company will do or
cause to be done all things necessary to preserve and keep in full force and effect its legal existence and good standing in the State of Delaware and its good standing and qualification to transact or do business in each jurisdiction in which the
failure to so qualify or be in good standing would have a Material Adverse Effect on the Company; 
 (d)
        Taxes. The Company will duly pay and discharge, or cause to be paid and discharged, before the same shall become overdue, all taxes; 

(e)         Inspection of Properties and Books, etc. The Company shall permit
Lender upon reasonable advance written notice to the Company and through its designated representatives, to visit and inspect, during regular business hours on a business day, any of the properties of the Company or any of its Subsidiaries, to
examine the books of account of the Company and its Subsidiaries (and to make copies thereof and extracts therefrom), and to discuss the affairs, finances and accounts of the Company and its Subsidiaries with, and to be advised as to the same by,
its and their officers, all at such reasonable times and intervals as Lender may reasonably request Lender may exercise its rights under this Section 5.1(e) only for purposes reasonably related to its interests under this Agreement and related
agreements. No investigation pursuant to this Section 5.1(e) shall affect any representation or warranty in this Agreement or any condition to the obligations of the parties hereto; provided, however, that the Company shall have
no obligation to disclose any information that would result in a breach of the attorney-client privilege; 
 (f)
        Records and Accounts. The Company will (a) keep, and cause each of its Subsidiaries to keep, true and accurate records and books of account in which full, true and correct entries will be
made in accordance with generally accepted accounting principles, consistently applied, (b) maintain adequate accounts and reserves for all taxes (including income taxes), depreciation, depletion, obsolescence and amortization of its properties
and the properties of its Subsidiaries, contingencies, and other reserves, and (c) at all times engage reputable independent certified public accountants as the 

  
 3 

 
independent certified public accountants of the Company and its Subsidiaries and will not permit more than thirty (30) days to elapse between the cessation of such firm’s (or any
successor firm’s) engagement as the independent certified public accountants of the Company and its Subsidiaries and the appointment in such capacity of a successor firm; 

(g)         Financial Statements, Annual Budgets and Other Information. The
Company will deliver to Lender: 
 (i)         as soon as practicable, but in any
event within ninety (90) days after the end of each fiscal year of the Company, financial statements for such year, including (1) a consolidated balance sheet as of the end of such year, (2) statements of income and cash flows for
such year, and (3) a statement of stockholders’ equity as of the end of such year, setting forth in each case in comparative form the figure for the previous fiscal year, all in reasonable detail, prepared in accordance with United States
generally accepted accounting principles (“GAAP”), and audited by a nationally recognized accounting firm; 

(ii)         as soon as practicable, but in any event within forty-five
(45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, financial statements for such quarter, including an unaudited consolidated balance sheet of the Company as of the end of each such period,
and unaudited consolidated statements of income and cash flows of the Company for the period from the beginning of the current fiscal year to the end of such quarterly period, setting forth in each case in comparative form the figures for the
corresponding period of the previous fiscal year, all in reasonable detail (except that such financial statements may (1) be subject to normal year-end audit adjustments and (2) not contain all notes thereto that may be required in
accordance with GAAP); 
 (iii)         prior to the beginning of each fiscal year
of the Company, an annual budget for the Company’s operations for the upcoming fiscal year, prepared in a manner and delivered at such a time as is consistent with the Company’s ordinary course of business consistent past practice; and

 (iv)         such other information as the Company delivers to any other lender
to the Company, or directors or stockholders of the Company generally (in each case simultaneously with or promptly following the delivery of such information to such other person); 

(h)         Compliance with Laws, Contracts, Licenses, and Permits. The
Company will, and will cause each of its Subsidiaries to, comply with (a) the applicable laws and regulations wherever its business is conducted, (b) the provisions of its governing documents, (c) all agreements and instruments by
which it or any of its properties may be bound or which are material to the business of the Company or such Subsidiary, and (d) all applicable decrees, orders, and judgments. If any authorization, consent, approval, permit or license from any
officer, agency or instrumentality of any government shall become necessary or required in order that the Company or any of its Subsidiaries may fulfill any of its obligations hereunder, the Company will, or (as the case may be) will cause such
Subsidiary to, use commercially reasonable efforts to obtain such authorization, consent, approval, permit or license and furnish Lender with evidence thereof; 

(i)         Maintenance of Properties. The Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its legal existence, rights and franchises and those of its Subsidiaries; and 

(j)         Further Assurances. The Company will use commercially reasonable
efforts to, and will use commercially reasonable efforts to cause each of its Subsidiaries to, cooperate with Lender 

  
 4 

 
and execute such further instruments and documents as shall reasonably be required to consummate the transactions contemplated by this Agreement. 

4.2         Use of Proceeds. The proceeds to the Company from the Loans shall
be used for general corporate purposes. 
 4.3         Confidentiality.
Lender acknowledges that the information received by it pursuant to this Agreement may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act, or reproduce, disclose or disseminate
such information to any other person (other than its employees or agents having a need to know the contents of such information, each of whom are subject to written agreements containing restrictions on confidentiality and non-use substantially on
the terms set forth herein, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally. 

5.          DEFINITIONS. As used herein the following terms not otherwise defined have the
following respective meanings: 
 “Action” means any pending or threatened claim, demand, notice, action,
suit, arbitration, proceeding or investigation. 
 “Affiliate” means, with respect to any person, any
person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person; and the term “control,” including the terms “controlling,” “controlled
by,” and “under common control with,” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract or
otherwise. 
 “business day” means any day, other than Saturday, Sunday or a legal holiday that banks
located in San Mateo County, California are not open for business. 
 “Dollars” or “$”
means dollars in lawful currency of the United States of America. 
 “Event of Default” shall have the
meaning set forth in the Notes. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder. 
 “Governmental Authority” (whether such term is
capitalized or not) means any United States (federal, state or local) or other non-US government, or governmental, regulatory or administrative authority, agency or commission. 

“Law” (whether such term is capitalized or not) means national, supranational, state, provincial, municipal
or local statute, law, constitution, ordinance, code, regulation, rule, notice, court decision, interpretation, agency guidance, Order, resolution, corporate integrity agreement, stipulation, determination, requirement or rule of law (including
common law), code or edict issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Authority. 

  
 5 

 “Losses” means all claims, liabilities, damages, losses, costs,
payments, royalties and expenses incurred or suffered, or that are reasonably likely to be incurred or suffered, by a party with respect to or relating to an event, circumstance or state of facts, other than consequential or indirect damages,
losses, costs and expenses which are not asserted by a third party against Lender or any of its Affiliates. Losses shall specifically include court costs and the reasonable fees and expenses of legal counsel arising out of or relating to any direct
or third-party claims, demands, actions, causes of action, suits, litigations, arbitrations or liabilities. 

“Material Adverse Effect” means, with respect to a person, any change or effect that, when taken individually
or together with all other adverse changes or effects, is or is reasonably likely to be materially adverse to the business, results of operations or financial condition of such person, and its Subsidiaries, taken as a whole. 

“Order” means any order, writ, judgment, injunction, decree, determination or award. 

“Permit” (whether such term is capitalized or not) means all permits, registrations, franchises, grants,
authorizations (including marketing and testing authorizations), concessions, licenses, easements, variances, exceptions, exemptions, consents, certificates, clearances, approvals and Orders of any Governmental Authority. 

“person” (whether such term is capitalized or not) means an individual, corporation, partnership, limited
partnership, limited liability company, syndicate, person (including, without limitation, a “person” as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or
instrumentality of a government. 
 “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 “state” means any state or commonwealth of the United
States of America, the District of Columbia, the Commonwealth of Puerto Rico, and any other dependency, possession or territory of the United States of America. 

“Subsidiary” or “Subsidiaries” (whether or not such term is capitalized) of any person means
(a) any corporation of which such person (either alone or through or together with any other Subsidiary), owns, directly or indirectly, more than 50% of the stock the holders of which are generally entitled to vote for the election of the board
of directors of such corporation, or (b) any partnership, limited liability company, association, trust, joint venture, or other non-corporate entity in which such person (either alone or through or together with any other Subsidiary) holds,
directly or indirectly, more than 50% of the equity interests. 
 “Transaction Documents” shall mean this
Agreement, the Form of Loan Request attached as Exhibit A, and the Notes. 
  

	6.	TERM AND TERMINATION 

 6.1
        Term. Subject to Section 6.2, this Agreement shall commence on the Agreement Date and shall continue in full force and effect until the date that all of the Loans (including the entire
principal amount of the Notes and all accrued but unpaid interest then outstanding) has been repaid in full. 
 6.2
        Survival of Certain Terms. The representations and warranties set forth in Section 3 shall survive each Closing Date until the termination of this Agreement. All other rights and
obligations of the 

  
 6 

 
parties, other than those rights that shall have then accrued, shall cease upon termination of this Agreement. 

6.3         Effect of Termination. The parties acknowledge that upon
termination of this Agreement as permitted under, and in accordance with, the terms of this Section 6, no party shall have the right to recover any claim with respect to any losses suffered by such party in connection with such termination,
except to the extent that such losses arise out of or are related to a breach of the representations, warranties or covenants hereunder or other obligations of another party hereto prior to or contemporaneous with such termination. Except as may be
provided in a Transaction Document or in the Notes, the termination of this Agreement shall not affect the obligations of the Company under such Transaction Document or the Notes. 

 

	7.	GENERAL 

 7.1
        Notices. All notices, claims and demands hereunder, and all other communications which are required to be given in writing pursuant to this Agreement, shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person or facsimile (received at the facsimile machine to which it is transmitted prior to 5 p.m., local time, on a business day for the party to which it is sent, or if
received after 5 p.m., local time, as of the next business day) or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be
specified in a notice given in accordance with this Section 7.1): 
  

			
	 	 	 if to Lenders:
  

Dr. Ernest Mario
 20 Fairmount
Avenue
 Chatham, NJ 07928

Attn: Marylou Rowe Executive Director

		
		 	 Vivo Ventures Fund V, L.P. / Vivo Ventures V Affiliates Fund, L.P.

575 High Street, Suite 201
 Palo
Alto, CA 94301
 Attn: Edgar G. Engleman, M.D.

		
		 	 if to the Company:
  

Capnia, Inc.
 3 Twin Dolphin
Drive, Ste 160
 Redwood City, CA 94065

Attention: President

		
		 	 with a copy to:
  

Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road
 Palo Alto, CA
94304-1500
 Attention: Elton Satusky

Facsimile: (650) 493-6811

  
 7 

 7.2         Severability. If any
term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of applicable law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the matters referred to herein are not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the matters referred to herein be consummated as
originally contemplated to the fullest extent possible. 
 7.3         Entire
Agreement; Assignment. This Agreement and the documents referred to herein constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and undertakings, both
written and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof. The Company shall not assign this Agreement by operation of law or otherwise. Lender may assign all or any of its rights and obligations
hereunder or under the Notes. 
 7.4         Parties in Interest. This
Agreement shall be binding upon and inure solely to the benefit of each party hereto and nothing in this Agreement, express or implied is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement. Without limiting the foregoing, nothing in this Agreement shall provide any benefit to any third party or entitle any third party to any claim, cause of action, remedy or right of any kind, it being the intent of the
parties that this Agreement shall not be construed as a third party beneficiary contract. 
 7.5
        Governing Law. This Agreement shall be governed by, and construed exclusively in accordance with the laws of the State of California applicable to contracts executed in and to be performed
in that jurisdiction. 
 7.6         Headings; Interpretation. The
descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the word “include,” “includes,” or
“including” appears in this Agreement, it shall be deemed in each instance to be followed by the words “without limitation.” 

7.7         Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in one (1) or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement. 
 7.8         Fees and
Expenses. All costs and expenses incurred in connection with this Agreement by the Company in connection with this Agreement and the transactions contemplated hereby, shall be paid by the Company. All costs and expenses incurred in
connection with this Agreement by Lender shall be paid by Lender. 
 7.9
        Amendment. This Agreement may be amended only in an instrument in writing, duly authorized by the Board of Directors, and signed by Lender and the Company. 

7.10       Waiver. At any time prior to the termination of this Agreement, Lender
and the Company may agree to (a) extend the time for the performance of any obligation or other act of the other party hereto, (b) waive any inaccuracy in the representations and warranties of the other contained herein or in any document
delivered pursuant hereto, and (c) waive compliance by the other, as the case may be, with any agreement or condition contained herein. Any such extension or waiver shall be valid if set 

  
 8 

 
forth in an instrument in writing signed by the party or parties to be bound thereby. A waiver on any one occasion shall not be construed as a bar to or a waiver of any right on any future
occasion. 
 [The remainder of this page is intentionally left blank.] 

  
 9 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto
have caused this Agreement to be duly executed and delivered as a sealed instrument as of the date and year first above written. 
  

			
	 LENDER:
 VIVO VENTURES
FUND V, L.P.

		
	By:	 	/s/ Edgar G. Engleman
		 	 Edgar G. Engleman
 Managing Member of Vivo
Ventures V, LLC
 its General Partner

	
	 LENDER:
 VIVO VENTURES V
AFFILIATES FUND, L.P.

		
	By:	 	/s/ Edgar G. Engleman
		 	 Edgar G. Engleman
 Managing Member of BioAsia
Investments V, LLC
 its General Partner

	
	 LENDER:
 DR. ERNEST
MARIO

		
	By:	 	/s/ E. Mario
	
	 COMPANY:
 CAPNIA,
INC.

		
	By:	 	/s/ Anish Bhatnagar
		 	 Name: Anish Bhatnagar
 Title:
CEO

 [Signature Page to Loan Agreement] 

 Exhibits 
  

			
		
	Exhibit A	  	Form of Loan Request
		
	Exhibit B	  	Form of Note

 Exhibit A 

Form of Loan Request 

 FORM OF LOAN REQUEST 

 
  

 
  

                , 201   

 

	 	Re:	 Loan Request 

 Ladies and
Gentlemen: 
 Reference is hereby made to that certain Loan Agreement, dated as of September 29, 2014 (the
“Loan Agreement”), by and between Dr. Ernest Mario, Vivo Ventures Fund V, L.P., Vivo Ventures V Affiliates Fund, L.P. and Capnia, Inc. Capitalized terms which are used herein without definition shall have the same meanings
herein as in the Loan Agreement. 
 Pursuant to Section 1.2(a) of the Loan Agreement, and subject to all of the terms
of the Loan Agreement, we hereby request that a Loan in the principal amount of
$                                 be made on
[            ], in accordance with the terms of the Loan Agreement. 

We hereby certify that the conditions set forth in Sections 1.2 and 1.3 of the Loan Agreement shall be satisfied on or prior
to the applicable Closing Date. 
  

			
	Very truly yours,
	
	CAPNIA, INC.
		
	By:	 	 
	Name:
	Title:

 Exhibit B 

Form of Note 

 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR
QUALIFIED UNDER ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE TRANSFERRED UNLESS SO REGISTERED AND QUALIFIED UNDER ALL APPLICABLE SECURITIES LAWS, OR UNLESS SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. 

PROMISSORY NOTE 
  

			
	
$                        
	  	                , 2014

 FOR VALUE RECEIVED, the undersigned, Capnia, Inc., a corporation organized under the
laws of the State of Delaware (the “Company”), hereby promises to pay to [Dr. Ernest Mario] [Vivo Ventures Fund V, L.P.] [Vivo Ventures V Affiliates Fund, L.P.], or its assigns hereunder (“Lender”), upon the
first to occur of (1) receipt of funds due to Company from customers, or (2) the Maturity Date (as defined below), and subject to acceleration as set forth herein, the aggregate principal amount of
                         Dollars
($                        ) (such amount, being referred to as the “Principal Amount”), and interest on
the unpaid Principal Amount from time to time outstanding, which shall accrue on a daily basis from the date hereof (the “Loan Date”), through and including the date on which such Principal Amount is paid in full, at an annual
interest rate equal to 6.0%, simple interest. Unless the indebtedness evidenced by this Note becomes due and payable earlier as provided herein, the entire Principal Amount and all accrued interest on the Principal Amount shall be payable in full by
the Company on the Maturity Date. 
 1.        Defined Terms. This Note evidences
borrowings under and has been issued by the Company in accordance with the terms of that certain Loan Agreement, dated September 29, 2014, between the Company and Lender (the “Loan Agreement”). As used herein,
“Lender” shall also be deemed to refer to any subsequent Holder of this Note. All capitalized terms used in this Note and not otherwise defined herein shall have the same meanings herein as in the Loan Agreement. Lender and any Holder
hereof is entitled to the benefits of the Loan Agreement, and may enforce the agreements of the Company contained therein, and any Holder hereof may exercise the respective remedies provided for thereby or otherwise available in respect thereof, all
in accordance with the respective terms thereof. For purposes of this Note, the terms listed below shall have the respective meanings set forth below: 

1.1 “business day” means any day, other than Saturday, Sunday or a legal holiday that banks located in
San Mateo County, California are not open for business; 
 1.2 “Holder” shall mean, initially,
Lender and thereafter, any subsequent holder of this Note in accordance with the provisions of Section 4 below; 

1.3 “Maturity Date” means the two-year anniversary of the Loan Date; and 

1.4 “Obligations” means the Principal Amount together with all accrued but unpaid interest, and any
other amounts that may become due and payable by the Company under this Note. 

	2.        Payment.	 

2.1 Payments. Payment of interest and principal hereunder shall be made as provided herein to the business
address of the Holder. If the payments to be made by the Company shall be stated to be due on a date which is not a business day, such payment may be made on the next succeeding business day, and the interest payment on each such date shall include
the amount thereof which shall accrue during the period of such extension of time. All computations of interest payable under this Note shall be made on the basis of the actual number of calendar days elapsed divided by 365. All payments hereunder
shall be applied first to any unpaid accrued interest, and second to repayment of any unpaid principal amount hereunder. 

2.2 Optional Prepayment. The Company shall be permitted to prepay the obligations under this Note without the
consent of the Holder at the option of the Company or as otherwise permitted under the Loan Agreement. 

3.        Acceleration. Upon the occurrence of any Event of Default (as defined below)
and so long as any Event of Default is continuing, the Holder may, at its option and upon written notice of acceleration given by the Holder to the Company, declare the entire unpaid portion of the Principal Amount and all accrued but unpaid
interest represented by this Note due and payable. Each of the following events shall be deemed an “Event of Default”: (a) the Company shall fail to pay any portion of the principal amount, any interest on this Note or other
sums due hereunder, within sixty (60) days after the same shall become due and payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment, (b) commencement of proceedings for
the liquidation or dissolution of the Company, or any other termination or winding-up of the existence or business of the Company, (c) appointment of any receiver, including a temporary receiver, for the Company or any of the assets of the
Company, or (d) material breach by the Company or any of their respective subsidiaries of any provision of this Note, the Loan Agreement (other than any breach covered by another clause of this Section 3) or any of the other Transaction
Documents; provided, that if such breach is capable of being cured, then such breach shall not constitute an “Event of Default” until the sixtieth (60th) day following notice thereof from the Holder, to the extent such breach
has not been cured prior to such date. 
 4.        Assignment. This Note shall not be
assigned by operation of law or otherwise, except that the Holder may assign this Note to any assignee of Lender’s rights and obligations under the Loan Agreement and Lender may assign this Note to any of its Affiliates. 

5.        Waiver of Presentment, Etc. Except as otherwise set forth herein, the Company
hereby, to the fullest extent permitted by applicable law, waives presentment, demand, notice, protest, bringing of suit, and diligence in taking any action to collect amounts called for hereunder, and all other demands and notices in connection
with delivery, acceptance, performance, default, acceleration or enforcement of or under this Note and the Company shall be directly and primarily liable for payment of all sums owing and to be owing hereunder, regardless of and without any notice,
diligence act or omission by Lender or any subsequent Holder. 
 6.        Amendment;
Waivers. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed, or terminated orally, nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by the party granting
the waiver. The failure of the Holder hereof to exercise any of its rights, remedies, powers or privileges hereunder in any instance will not constitute a waiver thereof, or of any other right or remedy, and no single or partial exercise of any
right or remedy shall preclude any other or further exercise thereof or of any other right or remedy. 

  
 2 

 7.        Payment of Collection Costs. The
Company will pay on demand all costs of collection, including all court costs and reasonable attorneys’ fees, paid or incurred by the Holder in enforcing this Note after default. 

8.        Further Acts. Each of the parties hereto shall perform such further acts and
execute such further documents as may reasonably be necessary to carry out and give full effect to the provisions of this Note and the intentions of the parties as reflected hereby. 

9.        GOVERNING LAW. THIS NOTE WILL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF CALIFORNIA (WITHOUT REFERENCE TO PRINCIPLES OF CHOICE OF LAW). 
 [The remainder of this page is intentionally
left blank.] 

  
 3 

 IN WITNESS
WHEREOF, the Company has executed and delivered this Promissory Note as an instrument under seal as of the date first above written. 
  

			
	CAPNIA, INC.
		
	BY	 	 
	Name:
	Title:

 Capnia, Inc. – Promissory Note

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