Document:

achv-ex1029_96.htm

 

Exhibit 10.29

LEAK-OUT AGREEMENT

 

December __, 2019

 

This agreement (the “Leak-Out Agreement”) is being delivered to you in connection with an understanding by and between Achieve Life Sciences, Inc., a Delaware corporation (the “Company”), and the person or persons named on the signature pages hereto (collectively, the “Holder”).

Reference is hereby made to (a) the Underwriting Agreement, dated December __, 2019, by and between the Company and Ladenburg Thalmann & Co. Inc. (“Ladenburg”), as representative of the several underwriters named therein (the “Underwriting Agreement”) in connection with the follow-on public offering (the “Offering”) of the Company, pursuant to which the Holder and certain other purchasers acquired (i) shares of common stock, par value $0.001 per share (“Common Stock”) of the Company (“Shares”), (ii) Series B Preferred Stock, par value $0.001 per share, of the Company (the “Preferred Shares”), and (iii) warrants of the Company to purchase Shares, (the “Common Warrants,” and collectively with the Shares and Preferred Shares, the “Securities”) and (b) the registration statement on Form S-1 (File No. 333-234530), as amended (“Registration Statement”).  Capitalized terms not defined herein shall have the meaning as set forth in the Underwriting Agreement, unless otherwise set forth herein.

 The Holder agrees solely with the Company that, from the pricing date of the Offering that the Underwriting Agreement is entered into by and between the Company and Ladenburg  (the “Effective Date”) and ending at 4:00 pm (New York City time) on __, 2020 (such period, the “Restricted Period”), neither the Holder, nor any affiliate of such Holder which (x) had or has knowledge of the transactions contemplated by the Underwriting Agreement, (y) has or shares discretion relating to such Holder’s investments or trading or information concerning such Holder’s investments, including in respect of the Securities, or (z) is subject to such Holder’s review or input concerning such affiliate’s investments or trading (together, the “Holder’s Trading Affiliates”), collectively, shall sell, dispose or otherwise transfer, directly or indirectly, (including, without limitation, any sales, short sales, swaps or any derivative transactions that would be equivalent to any sales or short positions) on any Trading Day during the Restricted Period (any such date, a “Date of Determination”), shares of Common Stock, or shares of Common Stock underlying any Common Stock Equivalents (as defined in the Underwriting Agreement), held by the Holder on the date hereof, as well as the shares of Common Stock issuable upon conversion of the Preferred Shares and upon exercise of the Common Warrants (collectively, the “Restricted Securities”), in an amount representing more than ___%1 of the trading volume of Common Stock as reported by Bloomberg, LP on each applicable Date of Determination (“Leak-Out Percentage”); provided, that the foregoing restriction shall not apply to any actual “long” (as defined in Regulation SHO of the Securities Exchange Act of 1934, as amended) sales by the Holder or any of the Holder’s Trading Affiliates at a price greater than $___ (in each case, as adjusted for stock splits, stock dividends, stock combinations, recapitalizations or other similar events occurring after the date hereof).

	
	 

	
1 
	
 Pro rata portion of 35% among investors executing Leak-Out Agreements, based on the aggregate amount to be paid by each such investor for the Class A Units and/or Class B Units 

 

 

 

Notwithstanding anything herein to the contrary, during the Restricted Period, the Holder may, directly or indirectly, sell or transfer all, or any part, of any “restricted securities” (as defined in Rule 144) to any Person (an “Assignee”) in a transaction which does not need to be reported on the consolidated tape on the Company’s principal Trading Market, without complying with (or otherwise limited by) the restrictions set forth in this Leak-Out Agreement; provided, that as a condition to any such sale or transfer an authorized signatory of the Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Leak-Out Agreement (an “Assignee Agreement”, and each such transfer a “Permitted Transfer”) and, subsequent to a Permitted Transfer, sales of the Holder and the Holder’s Trading Affiliates and all Assignees (other than any such sales that constitute Permitted Transfers) shall be aggregated for all purposes of this Leak-Out Agreement and Assignee Agreements.

Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Leak-Out Agreement must be in writing and shall be given to Ladenburg, who subsequently shall deliver such notice, consent, waiver or other communication to the Company or Holder, as applicable.

This Leak-Out Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto. 

This Leak-Out Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Leak-Out Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

 The terms of this Leak-Out Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns.

 This Leak-Out Agreement may not be amended or modified except in writing signed by each of the parties hereto.

 All questions concerning the construction, validity, enforcement and interpretation of this Leak-Out Agreement shall be governed by Sections 7.7 and Section 7.13 of the Underwriting Agreement.

 Each party hereto acknowledges that, in view of the uniqueness of the transactions contemplated by this Leak-Out Agreement, the other party or parties hereto may not have an adequate remedy at law for money damages in the event that this Leak-Out Agreement has not been performed in accordance with its terms, and therefore agrees that such other party or parties shall be entitled to seek specific enforcement of the terms hereof in addition to any other remedy it may seek, at law or in equity.

The obligations of the Holder under this Leak-Out Agreement are several and not joint with the obligations of any other holder of any of the Securities issued under the Underwriting Agreement (each, an “Other Holder”) or any other holder of any of the Securities issued under the Registration Statement (each, a “Prospectus Purchaser Other Holder”) pursuant to any other agreement, and the Holder shall not be responsible in any way for the performance of the 

 

 

obligations of any Other Holder or any Prospectus Purchaser Other Holder under any such other agreement.  Nothing contained herein or in this Leak-Out Agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Holders or any Prospectus Purchaser Other Holder as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and the Other Holders or any Prospectus Purchaser Other Holder are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement and the Company acknowledges that the Holder and the Other Holders or any Prospectus Purchaser Other Holder are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement or any other agreement.  The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors.  The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Leak-Out Agreement, and it shall not be necessary for any Other Holder or any Prospectus Purchaser Other Holder to be joined as an additional party in any proceeding for such purpose.

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Other Holder or any Prospectus Purchaser Other Holder with respect to any restrictions on the sale of Securities substantially in the form of this Leak-Out Agreement (or any amendment, modification, waiver or release thereof) (each a “Settlement Document”), is or will be more favorable to such Other Holder than those of the Holder and this Leak-Out Agreement.  If, and whenever on or after the date hereof, the Company enters into a Settlement Document with terms that are materially different from this Leak-Out Agreement, then (i) the Company shall provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and conditions of this Leak-Out Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Leak-Out Agreement shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder.  The provisions of this paragraph shall apply similarly and equally to each Settlement Document.

[The remainder of the page is intentionally left blank]

 

 

The parties hereto have executed this Leak-Out Agreement as of the date first set forth above.

Sincerely,

ACHIEVE LIFE SCIENCES, INC.

 

 

By: _____________________

       Name: 

       Title:   

Agreed to and Accepted: 

“HOLDER”

 

__________________ 

 

By: ____________________

      Name: 

Title:Exhibit
10.5

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

U.S.
Gold Corp.

2020
Stock INCENTIVE PLAN

 

1.
Award of Restricted Stock Units. Pursuant to the U.S. Gold Corp. 2020 Stock Incentive Plan (the “Plan”)
for employees, officers, consultants, independent contractors, and non-employee Directors of U.S. Gold Corp., a Nevada corporation
(the “Company”), the Company grants to

 

_________________________________

(the
“Participant”)

 

an
Award under the Plan for _______________(______) Restricted Stock Units (the “Awarded Units”) which
may be converted into the number of Shares of the Company equal to the number of Restricted Stock Units, subject to the terms
and conditions of the Plan and this Restricted Stock Unit Award Agreement (this “Agreement”). The “Date
of Grant” of this Restricted Stock Unit Award is _____________, 20____. Each Awarded Unit shall be a notional Share,
with the value of each Awarded Unit being equal to the Fair Market Value of a Share at any time.

 

2.
Subject to Plan. This Agreement is subject to the terms and conditions of the Plan, and the terms of the Plan shall control
to the extent not otherwise inconsistent with the provisions of this Agreement. The capitalized terms used herein that are defined
in the Plan shall have the same meanings assigned to them in the Plan. This Agreement is subject to any rules promulgated pursuant
to the Plan by the Board or the Committee and communicated to the Participant in writing.

 

3.
Vesting; Time of Delivery of Shares. Awarded Units which have become vested pursuant to the terms of this Section 3
are collectively referred to herein as “Vested RSUs.” All other Awarded Units are collectively referred
to herein as “Unvested RSUs.”

 

a.
Except as specifically provided in this Agreement and subject to certain restrictions and conditions set forth in the Plan, the
Awarded Units shall be vested on the first to occur of the following: (i) a Change in Control or (ii) a material discovery of
a mineral deposit by the Company, as determined by the Committee in its sole discretion.

 

b.
Subject to the provisions of the Plan and this Agreement, upon the vesting of Awarded Units, or as soon as practicable following
vesting, and in no event, later than sixty (60) days after vesting of the Awarded Units, the Company shall convert the Vested
RSUs into the number of whole Shares equal to the number of Vested RSUs and shall deliver to the Participant or the Participant’s
personal representative a number of Shares equal to the number of Vested RSUs credited to the Participant.

 

4.
Forfeiture of Awarded Units. Except as otherwise provided in Section 3.a. above, upon the Participant’s termination
of employment with or services to the Company of, if applicable, an Affiliate (“Termination of Service”),
for any reason, the Participant shall be deemed to have forfeited all of the Participant’s Unvested RSUs. Upon forfeiture,
all of the Participant’s rights with respect to the forfeited Unvested RSUs shall cease and terminate, without any further
obligations on the part of the Company.

 

    	 

    	 

    

 

5.
Who May Receive Converted Awarded Units. During the lifetime of the Participant, the Shares received upon conversion of
Awarded Units may only be received by the Participant or his legal representative. If the Participant dies prior to the date his
Awarded Units are converted into Shares as described in Section 3 above, the Shares relating to such converted Awarded
Units may be received by any individual who is entitled to receive the property of the Participant pursuant to the applicable
laws of descent and distribution.

 

6.
No Fractional Shares. Awarded Units may be converted only with respect to full shares, and no fractional Shares shall be
issued.

 

7.
Nonassignability. The Awarded Units are not assignable or transferable by the Participant except by will or by the laws
of descent and distribution.

 

8.
Rights as Stockholder. The Participant will have no rights as a stockholder with respect to any Shares covered by this
Agreement until the issuance of a certificate or certificates to the Participant or the registration of such Shares in the Participant’s
name. The Awarded Units shall be subject to the terms and conditions of this Agreement. Except as otherwise provided in Section
9 hereof, no adjustment shall be made for dividends or other rights for which the record date is prior to the issuance of
such certificate or certificates or the registration of such Shares in the Participant’s name. The Participant, by his execution
of this Agreement, agrees to execute any documents requested by the Company in connection with the issuance of the Shares.

 

9.
Adjustment of Number of Awarded Units and Related Matters. The number of Shares covered by the Awarded Units shall be subject
to adjustment in accordance with Section 4(c) of the Plan.

 

10.
Specific Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement
and consequently agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall
be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement.

 

11.
Participant’s Representations. Notwithstanding any of the provisions hereof, the Participant hereby agrees that the
Company will not be obligated to issue any Shares to the Participant hereunder, if the issuance of such Shares shall constitute
a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority. Any determination
in this connection by the Company shall be final, binding, and conclusive. The obligations of the Company and the rights of the
Participant are subject to all applicable laws.

 

12.
Investment Representation. Unless the Shares are issued to the Participant in a transaction registered under applicable
federal and state securities laws, by his execution hereof, the Participant represents and warrants to the Company that all Shares
which may be acquired hereunder will be acquired by the Participant for investment purposes for his own account and not with any
intent for resale or distribution in violation of federal or state securities laws. Unless the Shares are issued to him in a transaction
registered under the applicable federal and state securities laws, all certificates issued with respect to the Shares shall bear
an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the
applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory
to the Company and its counsel, that such registration is not required.

 

13.
Participant’s Acknowledgments. The Participant acknowledges that a copy of the Plan has been made available for his
review by the Company and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Award
subject to all the terms and provisions thereof. The Participant hereby agrees to accept as binding, conclusive, and final all
decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this
Agreement.

 

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14.
Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of
Nevada (excluding any conflict of laws rule or principle of Nevada law that might refer the governance, construction, or interpretation
of this agreement to the laws of another state).

 

15.
No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right
to continue in the employ or to provide services to the Company or any Affiliate, whether as an employee, officer, consultant,
independent contractor, or Director, or to interfere with or restrict in any way the right of the Company or any Affiliate to
discharge the Participant as an Eligible Person at any time.

 

16.
Legal Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this
Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason,
the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement
that is contained in this Agreement, and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable
term, provision, or agreement had never been contained herein.

 

17.
Covenants and Agreements as Independent Agreements. Each of the covenants and agreements that are set forth in this Agreement
shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim
or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.

 

18.
Entire Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements,
either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements
between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect
to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations,
inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party,
which are not embodied in this Agreement or the Plan and that any agreement, statement, or promise that is not contained in this
Agreement or the Plan shall not be valid or binding or of any force or effect.

 

19.
Parties Bound. The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon,
and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted
successors and assigns, subject to the limitation on assignment expressly set forth herein.

 

20.
Modification. No change or modification of this Agreement shall be valid or binding upon the parties unless the change
or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement
without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification
is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations
or other guidance issued thereunder. Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted
by the Plan.

 

21.
Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not
constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

 

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22.
Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender,
and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

 

23.
Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received
by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they
have theretofore specified by written notice delivered in accordance herewith:

 

a.
Notice to the Company shall be addressed and delivered as follows:

 

	 	U.S.
    Gold Corp. 	 
	 	1910
    E. Idaho Street, Suite 102-Box 604	 
	 	Elko,
    Nevada 89801	 
	 	Attn:	 	 
	 	Facsimile:	 	 

 

b.
Notice to the Participant shall be addressed and delivered as set forth on the signature page.

 

24.
Section 409A; Six Month Delay. Notwithstanding anything herein to the contrary, in the case of a conversion of Awarded
Units and distribution of Shares on account of any Termination of Service (other than death), if the Participant is a “specified
employee” as defined in § 1.409A-1(i) of the final regulations under Section 409A of the Code, then solely to the extent
required under Section 409A of the Code, a distribution of the number of such Shares to the Participant (determined after application
of the withholding requirements set forth in Section 25 below), shall not occur until the date which is six (6) months
following the date of the Participant’s Termination of Service (or, if earlier, the date of death of the Participant).

 

25.
Tax Requirements. The Participant is hereby advised to consult immediately with his own tax advisor regarding the tax consequences
of this Agreement. Unless the Company otherwise consents in writing to an alternative withholding method, the Company, or if applicable,
any Affiliate (for purposes of this Section 25, the term “Company” shall be deemed to include
any applicable Affiliate) shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan,
any federal, state, local, or other taxes required by law to be withheld in connection with this Award. The Company may, in its
sole discretion and prior to the date of conversion, require the Participant receiving Shares upon conversion of Awarded Units
to pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s
income arising with respect to this Award. Such payments shall be required to be made prior to the delivery of any certificate
or the registration of such Shares in the Participant’s name for such Shares. Such payment may be made by the Participant:
(a) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon receipt of (or the lapse of restrictions
relating to) such Awarded Units with a Fair Market Value equal to the amount of such taxes required to be withheld (subject to
any limitations required by the Financial Accounting Standards Board’s ASC Topic 718 to avoid adverse accounting treatment);
(b) delivering to the Company, Shares other than Shares issuable upon receipt of (or the lapse of restrictions relating to) such
Awarded Units with a Fair Market Value equal to the amount of such required tax withholdings; or (c) delivering cash to the Company
in an amount that equals or exceeds the required tax withholding obligations of the Company. Notwithstanding the foregoing, the
Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to
the Participant or withhold the number of Shares to be delivered upon the conversion of the Awarded Units with an aggregate Fair
Market Value that equals or exceeds (to avoid the issuance of fractional Shares) the required tax withholding obligations of the
Company; provided, however, if the Participant is a “specified employee” as defined in § 1.409A-1(i)
of the final regulations under Section 409A of the Code who is subject to the six (6) months delay provided for in Section
24 above, the Company shall withhold the number of Shares attributable to the employment taxes on the date of the Participant’s
Termination of Service and withhold the number of Shares attributable to the income taxes on the date which occurs six (6) months
following the date of the Participant’s Termination of Service (or, if earlier, the date of death of the Participant).

 

[Remainder
of Page Intentionally Left Blank;

Signature
Page Follows.]

 

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IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Participant, to
evidence his consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section
1 hereof.

 

	 	COMPANY:
	 	 
	 	U.S. Gold Corp.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	                               

 

	 	PARTICIPANT:
	 	 	                              
	 	 	 
	 	Signature	
	 	Name:	 
	 	Address:	 

 

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