Document:

EXHIBIT 10.2

 

VTV THERAPEUTICS INC.

INDUCEMENT AWARD

NONQUALIFIED

OPTION AWARD AGREEMENT

 

THIS INDUCEMENT AWARD NONQUALIFIED OPTION AWARD
AGREEMENT (the “Agreement”), is entered into as of July 26, 2022 (the “Date of Grant”), by and between
vTv Therapeutics Inc., a Delaware corporation (the “Company”), and Paul Sekhri (the “Participant”).

 

WHEREAS, the Board has determined that it is
in the best interests of the Company and its stockholders to grant the Option provided for herein to the Participant subject to the terms
set forth herein.

 

NOW, THEREFORE, for and in consideration of the
premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

1.          Grant of Option.

 

(a)     Inducement Award Grant. The Company hereby grants to the Participant an Option (the “Option”) to purchase
2,200,000 shares of Class A Common Stock (such shares, the “Option Shares”), on the terms and conditions set forth
in this Agreement. The Option is granted as an employment inducement award pursuant to Listing Rule 5635(c) of the corporate governance
rules of the NASDAQ Stock Market. Accordingly, the Option is being granted outside of the Company’s existing equity compensation
plans. However, the Option will be governed in all respects as if issued under the Company’s 2015 Omnibus Equity Incentive Plan,
as amended from time to time (the “Plan”), as in effect on the date of its adoption by the Board and as may be amended
thereafter from time to time. Accordingly, the terms of the Plan are hereby incorporated by reference. The Option is not intended to be,
and shall not be treated as, an incentive stock option, as defined in Section 422 of the Code. The Option shall vest in accordance
with Section 2. The Exercise Price shall be $0.79  per Option Share.

 

(b)     Incorporation by Reference. The provisions of the Plan are incorporated herein by reference. Except as otherwise expressly
set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments,
rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any capitalized terms not otherwise defined
in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe
the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the
Participant and his legal representative in respect of any questions arising under the Plan or this Agreement. The Participant acknowledges
that he or she has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and
provisions of the Plan.

 

2.          Vesting. Except as may otherwise be provided herein, subject to the Participant’s continued employment or service with
the Company or an Affiliate, 550,000 of the Option Shares shall become vested on the first anniversary of the Date of Grant, and the remaining
1,650,000 of the Option Shares shall become vested in equal quarterly installments of 137,500 Option Shares on each of the 12 three-month
anniversaries following such first anniversary, such that the Option will become fully vested on the fourth anniversary of the Date of
Grant (such first anniversary, and each such three-month anniversary, a “Vesting Date”).

 

3.          Termination of Employment or Service.

 

    	 	 	 

     

    

 

(a)     Except as otherwise provided herein, if the Participant’s employment or service with the Company and its Affiliates terminates
for any reason other than as set forth in Section 3(b) hereof, the unvested portion of the Option shall be cancelled immediately, and
the Participant shall immediately forfeit any rights to the Option Shares subject to such unvested portion.

 

(b)     Notwithstanding Section 3(a), if the Participant’s employment or service with the Company and its Affiliates is terminated
by the Company or its Affiliates without Cause (other than for death or disability) or by the Participant for Good Reason (collectively
a “Qualifying Termination”), then the Participant shall vest in the Pro Rata Amount of the Option Shares (less any
portion of the Option which previously vested). “Pro Rata Amount” shall mean the 2,200,000 Option Shares granted hereunder
multiplied by a fraction (which shall not be greater than one (1)) with (i) the numerator equal to the number of days the Participant
is employed or engaged by the Company or an Affiliate commencing on the Grant Date through the date of termination and (ii) the denominator
equal to 1,461. Cause and Good Reason shall have the meaning set forth in the Participant’s employment agreement with vTv Therapeutics
LLC dated July 25, 2022.

 

(c)     In the event of a Qualifying Termination on or within 12 months following a Change in Control, the Option shall become immediately
vested with respect to 100% of the Option Shares.

 

4.          Expiration. 

 

(a)     In no event shall all or any portion of the Option be exercisable after the tenth annual anniversary of the Date of Grant (such
ten-year period, the “Option Period”); provided, that, if the Option Period would expire at a time when trading
in the shares of Class A Common Stock is prohibited by the Company’s securities trading policy (or Company-imposed “blackout
period”), the Option Period shall be automatically extended until the 30th day following the expiration of such prohibition
(but not to the extent any such extension would otherwise violate Section 409A of the Code).

 

(b)     If, prior to the end of the Option Period, the Participant’s employment or service with the Company and all Affiliates is
terminated by the Company without Cause or by the Participant for any reason, the Option shall expire on the earlier of the last day of
the Option Period or the date that is 90 days after the date of such termination. In the event of a termination described in this subsection
(b), the Option shall remain exercisable by the Participant until its expiration only to the extent the Option was vested at the time
of such termination or in the case of termination after a Change in Control.

 

(c)     If (x) the Participant’s employment or service is terminated prior to the end of the Option Period on account of his Disability,
(y) the Participant dies while still in the employ of the Company or an Affiliate or (z) the Participant dies following a termination
described in subsection (b) above but prior to the expiration of the Option, the Option shall expire on the earlier of the last day of
the Option Period or the date that is one year after the date of death or termination on account of Disability of the Participant, as
applicable. In such event, the Option shall remain exercisable by the Participant or his beneficiary, as applicable, until its expiration
only to the extent the Option was vested at the time of such event.

 

(d)     If the Participant ceases employment or service with the Company or any Affiliates due to a termination for Cause or a termination
for any reason at a time when grounds to terminate the Participant’s employment or service for Cause exist, the Option (including
any vested portion of the Option) shall expire immediately upon such termination.

 

5.          Method
of Exercise and Form of Payment. No Option Shares shall be delivered pursuant to any exercise of the Option until payment in full
is made to the Company of the Exercise Price and an amount equal to any U.S. federal, state, local and non-U.S. income and employment
taxes required to be

 

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withheld is withheld. The Option may be exercised by delivery of written or electronic notice of exercise to the
Company or its designee (including a third party administrator) in accordance with the terms hereof. The Exercise Price and all applicable
required withholding taxes shall be payable (i) in cash, check, cash equivalent (including bank or certified check or wire transfer) and/or
in shares of Class A Common Stock (or any combination of the foregoing) valued at the Fair Market Value at the time the Option is exercised
(including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of
Class A Common Stock in lieu of actual delivery of such shares to the Company); provided, that, such shares of Class A Common Stock
are not subject to any pledge or other security interest; provided further, that, such payment in shares with respect to the exercise
any unvested portion of the Option shall require the consent of the Committee; or (ii) by such other method as the Committee may in its
sole discretion permit, including without limitation: (A) in other property having a fair market value equal to the Exercise Price and
all applicable required withholding taxes or (B) if there is a public market for the shares of Class A Common Stock at such time, by means
of a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of irrevocable instructions to
a stockbroker to sell the shares of Class A Common Stock otherwise deliverable upon the exercise of the Option and to deliver promptly
to the Company an amount equal to the Exercise Price and all applicable required withholding taxes; or (C) by means of a “net exercise”
procedure effected by withholding the number of shares of Class A Common Stock otherwise deliverable in respect of an Option that are
needed to pay for the Exercise Price and all applicable required withholding taxes up to the maximum statutory withholding rate. Any fractional
shares of Class A Common Stock shall be settled in cash.

 

6.          Exercise,
Including Prior to Vesting (“Early Exercise”).  Subject to the provisions of this Agreement, the Participant may elect
at any time prior to expiration of the Option to exercise all or any portion of the Option, including any unvested portion of the Option;
provided, however, that:

(a)     a partial exercise of the Option will be deemed to cover first vested Option Shares, and then unvested Option Shares that are scheduled
to vest pursuant to Section 2 (from earliest to latest Vesting Date); and

 

(b)     any Option Shares that are issued to the Participant on exercise of any unvested portion of the Option will (i) vest in accordance
with the terms set forth in this Agreement and become vested Option Shares at the time of such vesting and (ii) be subject to a repurchase
option in favor of the Company on the terms set forth in an Option Exercise and Repurchase Agreement substantially in the form attached
hereto as Annex A, which Option Exercise and Repurchase Agreement the Participant hereby agrees to enter into as a condition to
the exercise of any unvested portion of the Option.

 

7.          Rights as a Stockholder. The Participant shall not be deemed for any purpose to be the owner of any shares of Class A Common
Stock subject to the Option unless, until and to the extent that (i) the Option shall have been exercised pursuant to its terms,
(ii) the Company shall have issued and delivered to the Participant the Option Shares and (iii) the Participant’s name
shall have been entered as a stockholder of record with respect to such Option Shares on the books of the Company. The Company shall cause
the actions described in clauses (ii) and (iii) of the preceding sentence to occur promptly following settlement as contemplated by this
Agreement, subject to compliance with applicable laws.

 

8.          Compliance
with Legal Requirements.

 

(a)     Generally.
The granting and exercising of the Option, and any other obligations of the Company under this Agreement, shall be subject to all applicable
U.S. federal, state and local laws, rules

 

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and regulations, all applicable non-U.S. laws, rules and regulations and to such approvals
by any regulatory or governmental agency as may be required. The Participant agrees to take all steps the Committee or the Company determines
are reasonably necessary to comply with all applicable provisions of U.S. federal and state securities law and non-U.S. securities law
in exercising his or her rights under this Agreement.

(b)     Tax Withholding. Any exercise of the Option shall be subject to the Participant satisfying any applicable U.S. federal,
state and local tax withholding obligations and non-U.S. tax withholding obligations. The Company shall have the right and is hereby authorized
to withhold from any amounts payable to the Participant in connection with the Option or otherwise the amount of any required withholding
taxes in respect of the Option, its exercise or any payment or transfer of the Option or under the Plan and to take any such other action
as the Committee or the Company deem necessary to satisfy all obligations for the payment of such withholding taxes. The Committee, may
in its sole discretion permit the Participant to satisfy, in whole or in part, the tax obligations by withholding shares of Class A Common
Stock that would otherwise be received upon exercise of the Option with a Fair Market Value equal to such withholding liability (but no
more than the maximum required statutory withholding liability).

9.          Clawback. To the extent required by applicable law and/or the rules and regulations of NASDAQ or any other securities exchange
or inter-dealer quotation system on which the Class A Common Stock is listed or quoted, (including Dodd-Frank) the Option shall be subject
(including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated
by reference into this Agreement).

 

10.         Restrictive Covenants. In the event that the Participant violates any restrictive covenants applicable to the Participant,
in addition to any other remedy which may be available at law or in equity, the Option shall be forfeited effective as of the date on
which such violation first occurs, unless otherwise determined by the Committee. The foregoing rights and remedies are in addition to
any other rights and remedies that may be available to the Company and shall not prevent (and the Participant shall not assert that they
shall prevent) the Company from bringing one or more actions in any applicable jurisdiction to recover damages as a result of the Participant’s
breach of such restrictive covenants.

 

11.         Miscellaneous.

 

(a)     Transferability. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered
(a “Transfer”) by the Participant other than by will or by the laws of descent and distribution, pursuant to a qualified
domestic relations order or as otherwise permitted under Section 15(b) of the Plan. Any attempted Transfer of the Option contrary to the
provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect.

 

(b)     Waiver. Any right of the Company contained in this Agreement may be waived in writing by the Committee. No waiver of any
right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent
occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held
to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

 

(c)     Section 409A. The Option is not intended to be subject to Section 409A of the Code. Notwithstanding the foregoing or any
provision of the Plan or this Agreement , if any provision of the plan or this Agreement contravenes Section 409A of the Code or could
cause the Participant to incur any

 

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tax, interest or penalties under Section 409A of the Code, the Committee may, in its sole discretion
and without the Participant’s consent, modify such provision to (i) comply with, or avoid being subject to, Section 409A of the
Code, or to avoid the incurrence of taxes, interest and penalties under Section 409A of the Code, and/or (ii) maintain, to the maximum
extent practicable, the original intent and economic benefit to the Participant of the applicable provision without materially increasing
the cost to the Company or contravening the provisions of Section 409A of the Code. This Section 11(c) does not create an obligation on
the part of the Company to modify the Plan or this Agreement and does not guarantee that the Option or the Option Shares will not be subject
to interest and penalties under Section 409A.

 

(d)     Notices. Any notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given
if either hand delivered or if sent by fax, pdf/email or overnight courier, or by postage paid first class mail. Notices sent by mail
shall be deemed received three (3) business days after mailing but in no event later than the date of actual receipt. Notices shall be
directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, to
the attention of the Chief Financial Officer of the Company at the Company’s principal executive office.

 

(e)     Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

(f)      No Rights to Employment or Service. Nothing contained in this Agreement shall be construed as giving the Participant any
right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with
or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge
the Participant at any time for any reason whatsoever.

 

(g)     Fractional Shares. In lieu of issuing a fraction of a share of Class A Common Stock resulting from any exercise of the Option
or an adjustment of the Option pursuant to Section 12 of the Plan or otherwise, the Company shall be entitled to pay to the Participant
an amount in cash equal to the Fair Market Value of such fractional share.

 

(h)     Beneficiary. The Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed
by the Committee and may, from time to time, amend or revoke such designation.

 

(i)      Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors
and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

(j)      Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with
respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.
No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties
hereto, except for any changes permitted without consent under Section 12 or 14 of the Plan.

 

(k)     Governing Law and Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware,
without regard to principles of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction which could cause
the application of the laws of any jurisdiction other than the State of Delaware.

 

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(i)     Dispute Resolution; Consent to Jurisdiction. All disputes between or among any Persons arising out of or in any way connected
with the Plan, this Agreement or the Option shall be solely and finally settled by the Committee, acting in good faith, the determination
of which shall be final. Any matters not covered by the preceding sentence shall be solely and finally settled in accordance with the
Plan, and the Participant and the Company consent to the personal jurisdiction of the United States Federal and state courts sitting in
Wilmington, Delaware as the exclusive jurisdiction with respect to matters arising out of or related to the enforcement of the Committee’s
determinations and resolution of matters, if any, related to the Plan or this Agreement not required to be resolved by the Committee.
Each such Person hereby irrevocably consents to the service of process of any of the aforementioned courts in any such suit, action or
proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to the last known address of such Person,
such service to become effective ten (10) days after such mailing.

 

(ii)    Waiver of Jury Trial. Each party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may
have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement or the transactions
contemplated (whether based on contract, tort or any other theory). Each party hereto (A) certifies that no representative, agent or attorney
of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce
the foregoing waiver and (B) acknowledges that it and the other parties hereto have been induced to enter into this Agreement by, among
other things, the mutual waivers and certifications in this section.

 

(l)     Headings; Gender. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis
for interpretation or construction, and shall not constitute a part, of this Agreement. Masculine pronouns and other words of masculine
gender shall refer to both men and women as appropriate.

 

(m)     Counterparts. This Agreement may be executed in one or more counterparts (including via facsimile and electronic image scan
(pdf)), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

 

(n)     Electronic Signature and Delivery. This Agreement may be accepted by return signature or by electronic confirmation. By
accepting this Agreement, the Participant consents to the electronic delivery of prospectuses, annual reports and other information required
to be delivered by U.S. Securities and Exchange Commission rules (which consent may be revoked in writing by the Participant at any time
upon three (3) business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other information
will be delivered in hard copy to the Participant).

(o)     Electronic
Participation. The Company may, in its sole discretion, decide to deliver any documents related to this award by electronic means.
The Participant hereby consents to receive such documents by electronic delivery and agrees to participate through an on-line or electronic
system established and maintained by the Company or a third party designated by the Company to the extent so requested by the Company.

 

[Remainder of page intentionally blank]

 

 

 

 

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IN WITNESS WHEREOF, this Agreement
has been executed by the Company and the Participant as of the day first written above.

 

	 	VTV THERAPEUTICS INC.	 
	 	 	 
	 	By:	/s/ Rich Nelson	 
	 	 	Name: Rich Nelson
Title: Interim Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Paul Sekhri	 
	 	 	PAUL SEKHRI	 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Sehkri Option Agreement]

    	 	 	 

     

    

 

ANNEX A

 

VTV THERAPEUTICS INC. INDUCEMENT AWARD

OPTION EXERCISE AND REPURCHASE AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

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VTV THERAPEUTICS INC.

INDUCEMENT AWARD

OPTION EXERCISE AND

REPURCHASE AGREEMENT[1]

 

THIS OPTION EXERCISE AND REPURCHASE AGREEMENT
(this “Agreement”) is made and entered into as of [●], 202[●] (the “Effective Date”),
by and between vTv Therapeutics Inc., a Delaware corporation (the “Company”), and Paul Sekhri, an executive of the
Company (the “Purchaser”). Capitalized terms not defined herein shall have the meanings ascribed to them in the Company’s
2015 Omnibus Equity Incentive Plan, as may be amended and/or restated from time to time (the “Plan”), or the Option
Agreement (as defined below).

RECITALS

A.       Pursuant
to the Inducement Award Nonqualified Option Award Agreement, dated as of July 26, 2022 (the “Option Agreement”), entered
into by and between the Company and the Purchaser, the Company granted to the Purchaser an option (the “Option”) to
purchase 2,200,000 shares of Class A Common Stock (the “Option Shares”) at the Exercise Price per Option Share specified
in the Option Agreement.

B.       As
of the Effective Date, in accordance Section 2 of the Option Agreement, [●] of the Option Shares have vested (the “Vested
Shares”), and [●] of the Option Shares have not vested (the “Unvested Shares”).

C.       The
Purchaser desires to exercise the Option to purchase [●] of the Option Shares (the “Purchased Shares”) for an
aggregate Exercise Price of $[●] (the “Purchase Price”).

AGREEMENT

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

	1.		VESTING OF UNVESTED SHARES. The Unvested Shares that are Purchased Shares shall
continue to vest in accordance with the terms set forth in the Option Agreement and become Vested Shares at the time of such vesting.
If not all of the Unvested Shares are Purchased Shares, the Unvested Shares that are Purchased Shares shall be determined in the order
that the Unvested Shares are scheduled to vest pursuant to Section 2 of the Option Agreement (from earliest to latest Vesting Date).
For example, if on the Date of Grant, the Purchaser exercises the Option with respect to 1,000,000 of the Option Shares, then (a) 500,000
of such Purchased Shares shall become vested on the first anniversary of the Date of Grant, and the remaining 500,000 of such Purchased
Shares shall become vested in equal quarterly installments of 125,000 Option Shares on each of the four three-month anniversaries following
such first anniversary, and (b) the Option shall remain exercisable with respect to the remaining 1,000,000 Option Shares, which shall
become vested in equal quarterly installments of 125,000 Option Shares on each of the eight three-month anniversaries following the second
anniversary of the Date of Grant.

 

1 Note to Draft: Use this Agreement only if the
Option is being early exercised as to some or all of the Option Shares.

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	2.		CLOSING.

2.1       Deliveries
by the Purchaser. The Purchaser hereby delivers to the Company: (i) the Purchase Price payable in in cash, check or cash equivalent
(including bank or certified check or wire transfer); (ii) a duly executed copy of this Agreement; (iii) three (3) copies of a blank Stock
Power and Assignment Separate from Stock Certificate in the form of Exhibit 1 attached hereto duly executed by the Purchaser (and
the Purchaser’s spouse or domestic partner, if any); and (iv) if the Purchaser is married or has a domestic partner, a Spouse/Domestic
Partner Consent in the form of Exhibit 2 attached hereto (the “Spouse/Domestic Partner Consent”) duly executed
by the Purchaser’s spouse or domestic partner.

2.2       Deliveries
by the Company. Upon its receipt of all the documents to be executed and delivered by the Purchaser to the Company under Section 2.1,
the Company will issue a duly executed stock certificate evidencing the Purchased Shares in the name of the Purchaser, registered in the
Purchaser’s name, with such certificate to be held by the Company until expiration or termination of the Repurchase Option described
in Section 3.

2.3       Restrictions
on Transfer. The Purchaser understands that the Purchaser may not transfer any Purchased Shares unless such Purchased Shares are (i)
registered under the Securities Act and/or such other applicable U.S. state securities law, (ii) registered under such other applicable
foreign securities laws or listing requirements or regulations or (iii) in the opinion of counsel to the Company, exemptions from such
registration, qualification or listing requirements are available.

	3.		COMPANY’S REPURCHASE OPTION FOR UNVESTED SHARES.

3.1       Repurchase
Option. The Company, or its assignee, shall have the option to repurchase all or any portion of the Unvested Shares on the terms and
conditions set forth in this Section 3 (the “Repurchase Option”) if the Purchaser is Terminated (as defined in Section
3.3).

3.2       Release
of Unvested Shares from Repurchase Option. As Unvested Shares become Vested Shares in accordance with the terms set forth in the Option
Agreement and in accordance with Section 1, such Vested Shares shall be released from the Repurchase Option.

3.3       Termination
and Termination Date. For purposes of this Agreement, “Termination” or “Terminated” means that
the Purchaser’s employment with the Company and its subsidiaries has terminated for any reason. The date on which a Termination
becomes effective is referred to herein as the “Termination Date.” The Purchaser will not be deemed to have been Terminated
while the Purchaser is on a bona fide leave of absence, to the extent required by applicable law or approved by the Committee.

3.4       Exercise
of Repurchase Option. At any time within 90 days after the Termination Date, the Company, or its assignee, may elect to repurchase
all or any portion of the Unvested Shares by giving the Purchaser written notice of exercise of the Repurchase Option (the “Repurchase
Notice”). The Repurchase Notice shall indicate the number of Unvested Shares to be repurchased and the date on which the repurchase
is to be effected (the “Repurchase Date”), such date to be not more than 30 days after the date of the Repurchase Notice.
The certificates

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 representing the Unvested Shares to be repurchased shall be delivered to the Company or its assignee on the closing date
specified for the repurchase in the Repurchase Notice.

3.5       Calculation
of Repurchase Price for Unvested Shares. The Company or its assignee shall have the option to repurchase from the Purchaser (or from
the Purchaser’s personal representative, as the case may be) all or any portion of the Unvested Shares at an aggregate repurchase
price (the “Repurchase Price”) equal to the sum of (i) the Exercise Price applicable to such Unvested Shares multiplied
by the number of Unvested Shares to be repurchased.

3.6       Payment
of Repurchase Price. The Repurchase Price shall be payable by the Company or its assignee by check made payable to the Purchaser.
The Repurchase Price shall be paid on the Repurchase Date, upon the Company’s or its assignee’s receipt of the stock certificates
representing the Unvested Shares to be repurchased.

	4.		RIGHTS AS STOCKHOLDER. Subject to the terms and conditions of this Agreement,
the Purchaser will have all of the rights of a stockholder of the Company with respect to the Purchased Shares from and after the date
that the Purchased Shares are issued to the Purchaser until such time as the Purchaser disposes of the Purchased Shares or the Company
and/or its assignee exercises the Repurchase Option. Upon an exercise of the Repurchase Option, the Purchaser will have no further rights
as a holder of the Unvested Shares so purchased upon such exercise, except the right to receive payment for the Unvested Shares so purchased
in accordance with the provisions of this Agreement, and the Purchaser will promptly surrender the stock certificates evidencing the
Unvested Shares so purchased to the Company for transfer or cancellation.

	5.		TAX CONSEQUENCES.

5.1       Representations.
THE PURCHASER UNDERSTANDS THAT THE PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF THE PURCHASER’S PURCHASE OR DISPOSITION
OF THE PURCHASED SHARES. THE PURCHASER REPRESENTS (I) THAT THE PURCHASER HAS BEEN ADVISED TO CONSULT WITH A TAX ADVISOR IN CONNECTION
WITH THE PURCHASE OR DISPOSITION OF THE PURCHASED SHARES AND (II) THAT THE PURCHASER IS NOT RELYING ON THE COMPANY, THE COMPANY’S
COUNSEL OR ANY OFFICER, DIRECTOR, EMPLOYEE OR AGENT OF THE COMPANY FOR ANY TAX OR LEGAL ADVICE IN CONNECTION WITH THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY. IN PARTICULAR, IF ANY SHARES ARE SUBJECT TO REPURCHASE BY THE COMPANY, THE PURCHASER REPRESENTS THAT
THE PURCHASER HAS CONSULTED WITH THE PURCHASER’S TAX ADVISOR CONCERNING THE ADVISABILITY OF FILING AN 83(B) ELECTION WITH THE INTERNAL
REVENUE SERVICE.

5.2       Section
83(b) Election for Unvested Shares. Unless an election is filed by the Purchaser with the Internal Revenue Service (and, if necessary,
the proper state taxing authorities), within 30 days after the purchase of the Unvested Shares, electing pursuant to Section 83(b) of
the Code (and similar state tax provisions, if applicable) to be taxed currently on

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 any difference between the Exercise Price and the
fair market value of the Unvested Shares on the Effective Date, there may be a recognition of taxable income (including, where applicable,
alternative minimum taxable income) to the Purchaser, measured by the excess, if any, of the fair market value of the Unvested Shares
at the time they become Vested Shares, over the Exercise Price.

	6.		GENERAL PROVISIONS.

6.1       Assignments:
Successors and Assigns. The Company may assign any of its rights and obligations under this Agreement, including its rights to repurchase
Unvested Shares under the Repurchase Option; provided, that any such assignment shall require approval of the Committee. Any assignment
of rights and obligations by any other party to this Agreement requires the Company’s prior written consent. This Agreement, and
the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns,
heirs, executors, administrators and legal representatives.

6.2       Further
Assurances. The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably
necessary to carry out the purposes and intent of this Agreement.

6.3       Incorporation
by Reference. The following provisions of the Option Agreement are incorporated by reference into this Agreement mutatis mutandis:
Section 10(b) (Waiver), Section 10(d) (Notices), Section 10(e) (Severability), Section 10(f) (No Rights to Employment or Service), Section
10(g) (Fractional Shares), Section 10(h) (Beneficiary), Section 10(i) (Successors), Section 10(j) (Entire Agreement), Section 10(k) (Governing
Law and Venue), Section 10(l) (Headings; Gender), Section 10(m) (Counterparts), Section 10(n) (Electronic Signature and Delivery) and
Section 10(o) (Electronic Participation).

[Signature Page Follows]

 

 

 

 

    	 	6	 

     

    

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its duly authorized representative and the Purchaser has executed this Agreement, as of the Effective Date.

	 	VTV THERAPEUTICS INC.	 
	 	 	 
	 	By:	/s/ Rich Nelson	 
	 	 	Name: Rich Nelson
Title: Interim CEO	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	PURCHASER	 
	 	 	 
	 	/s/ Paul Sekhri	 
	 	Paul Sekhri	 

 

 

 

 

 

[Signature Page to Option Exercise and Repurchase
Agreement]

    	 	 	 

     

    

LIST OF EXHIBITS

	Exhibit 1:	Stock Power and Assignment Separate from Stock Certificate
	 	 
	Exhibit 2:	Spouse/Domestic Partner Consent
	 	 
	Exhibit 3:	Section 83(b) Election

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

EXHIBIT 1

 

STOCK POWER AND ASSIGNMENT

SEPARATE FROM STOCK CERTIFICATE

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

STOCK POWER AND ASSIGNMENT

SEPARATE FROM STOCK CERTIFICATE

 

FOR VALUE RECEIVED, and pursuant to that certain
Option Exercise and Repurchase Agreement dated as of [●], 20[●] (the “Agreement”), the undersigned hereby
sells, assigns and transfers unto [●], [●] shares of Class A Common Stock, $0.01 par value per share, of vTv Therapeutics
Inc., a Delaware corporation (the “Company”), standing in the undersigned’s name on the books of the Company
represented by Certificate No(s) delivered herewith, and does hereby irrevocably constitute and appoint the of the Company as the undersigned’s
attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED
AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

Dated:

	 	 	 
	 	PURCHASER:	 
	 	 	 
	 	(Signature)	 
	 	 	 
	 	(Please Print Name)	 
	 	 	 
	 	(Spouse’s Signature, if any)	 
	 	 	 
	 	(Please Print Spouse’s Name)	 

 

Instructions to the Purchaser: Please
do not fill in any blanks other than the signature line. The purpose of this Stock Power and Assignment is to enable the Company and/or
its assignee to acquire the Unvested Shares upon exercise of the Repurchase Option without requiring additional signatures on the part
of the Purchaser or the Purchaser’s spouse or domestic partner, if any.

    	 	 	 

     

    

EXHIBIT 2

 

SPOUSE/DOMESTIC PARTNER CONSENT

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

SPOUSE/DOMESTIC PARTNER CONSENT

 

The undersigned spouse or domestic partner of
Paul Sekhri (the “Purchaser”) has read, understands and hereby approves all the terms and conditions of that certain
Option Exercise and Repurchase Agreement dated as of [●], 20[●] (the “Agreement”), by and between vTv Therapeutics
Inc., a Delaware corporation (the “Company”), and the Purchaser, pursuant to which the Purchaser purchased [●]
shares of the Company’s Class A Common Stock subject to an option granted to the Purchaser (the “Shares”).

In consideration of the Company issuing to my
spouse or domestic partner the Shares under the Agreement, I hereby agree to be irrevocably bound by all the terms and conditions of the
Agreement (including but not limited to the Company’s Repurchase Option contained therein) and further agree that any community
property interest I may have in the Shares will be similarly bound by the Agreement.

I hereby appoint the Purchaser as my attorney-in-fact,
to act in my name, place and stead with respect to any amendment of, or exercise of any rights under, the Agreement.

	Dated:	 
	 	 
	 	 
	Signature of Spouse or Domestic Partner
[Sign Here]	 
	 	 
	Date:	 
	 	 
	 	 
	Name of Spouse or Domestic Partner
[Please Print]	 
	 	 
	☐ Check this box and sign below if you do not have a spouse or domestic partner
	 	 
	 	 
	Signature of Purchaser	 
	 	 
	Date:	 

 

 

    	 	 	 

     

    

 

EXHIBIT 3

 

SECTION 83(B) ELECTION

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

ELECTION UNDER SECTION 83(B) OF THE

INTERNAL REVENUE CODE

The undersigned Taxpayer hereby elects, pursuant
to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include the excess, if any, of the fair market value of the property
described below at the time of transfer over the amount paid for such property, as compensation for services in the calculation of: (1)
regular gross income; (2) alternative minimum taxable income; or (3) disqualifying disposition gross income, as the case may be.

		1.	TAXPAYER’S NAME:

TAXPAYER’S ADDRESS:

SOCIAL SECURITY NUMBER:

		2.	The property with respect to which the election is made is described as follows: [●] shares of Class A Common Stock of vTv Therapeutics
Inc., a Delaware corporation (the “Company”), which is Taxpayer’s employer or the corporation for whom the Taxpayer
performs services.

		3.	The date on which the shares were purchased was [●], 20[●] and this election is made for calendar year 20[●].

		4.	The shares are subject to the following restrictions: The Company may repurchase all or a portion of the shares at the Taxpayer’s
original purchase price under certain conditions at the time of Taxpayer’s termination of employment or services.

		5.	The fair market value of the shares (without regard to restrictions other than restrictions which by their terms will never lapse)
was $[●] per share at the time of purchase.

		6.	The amount paid for such shares was $[●] per share.

		7.	The Taxpayer has submitted a copy of this statement to the Company.

THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE
(“IRS”), AT THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS AFTER THE DATE OF
TRANSFER OF THE SHARES. THE ELECTION CANNOT BE REVOKED WITHOUT THE CONSENT OF THE IRS.

Dated: ________________

 

	 	 	 
	 	Taxpayer’s SignatureEX-10.1

 Exhibit 10.1 

MCKESSON CORPORATION 

2022 STOCK PLAN 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 1.
	 	PURPOSE	  	 	1	 
	 2.
	 	ADMINISTRATION	  	 	1	 
	 3.
	 	ELIGIBILITY	  	 	3	 
	 4.
	 	STOCK	  	 	3	 
	 5.
	 	OPTIONS	  	 	4	 
	 6.
	 	STOCK APPRECIATION RIGHTS	  	 	6	 
	 7.
	 	RESTRICTED STOCK	  	 	8	 
	 8.
	 	RESTRICTED STOCK UNITS	  	 	9	 
	 9.
	 	OUTSIDE DIRECTOR AWARDS	  	 	10	 
	 10.
	 	PERFORMANCE AWARDS	  	 	11	 
	 11.
	 	OTHER SHARE-BASED AWARDS	  	 	12	 
	 12.
	 	PERFORMANCE OBJECTIVES	  	 	13	 
	 13.
	 	CHANGE IN CONTROL	  	 	13	 
	 14.
	 	AWARDS NOT TRANSFERABLE	  	 	15	 
	 15.
	 	RECAPITALIZATION	  	 	16	 
	 16.
	 	TERM OF PLAN	  	 	16	 
	 17.
	 	SECURITIES LAW REQUIREMENTS AND LIMITATION OF RIGHTS	  	 	16	 
	 18.
	 	AWARDS IN FOREIGN COUNTRIES	  	 	17	 
	 19.
	 	BENEFICIARY DESIGNATION	  	 	17	 
	 20.
	 	AMENDMENT OF THE PLAN	  	 	18	 
	 21.
	 	RECOUPMENT	  	 	18	 
	 22.
	 	USE OF PROCEEDS FROM STOCK	  	 	18	 
	 23.
	 	APPROVAL OF STOCKHOLDERS	  	 	18	 
	 24.
	 	PAPERLESS ADMINISTRATION	  	 	18	 
	 25.
	 	GOVERNING LAW	  	 	18	 
	 26.
	 	INTERPRETATION	  	 	19	 
	 27.
	 	WITHHOLDING TAXES	  	 	19	 
	 28.
	 	DEFINITIONS	  	 	20	 

	1.	 PURPOSE. 

This McKesson Corporation 2022 Stock Plan is intended to provide Employees and Directors the opportunity to receive equity-based, long-term incentives so that
the Corporation may effectively attract and retain the best available personnel, promote the success of the Corporation by motivating Employees and Directors to superior performance, and align Employee and Director interests with those of the
Corporation’s stockholders. The Plan was adopted and approved by the Board on April 27, 2022, subject to the approval of the stockholders of the Corporation, and shall be the successor to the McKesson Corporation 2013 Stock Plan (the
“2013 Plan”). No further grants will be made under the 2013 Plan upon the approval of this Plan by the Corporation’s stockholders and registration of the offering under this Plan with the Securities and Exchange Commission. 

 

	2.	 ADMINISTRATION. 

 

	 	(a)	 Administration with respect to Outside Directors. 

With respect to Awards to Outside Directors, the Plan shall be administered by (A) the Governance Committee of the Board; provided that such
committee consists solely of Directors who qualify as “non-employee directors” for purposes of Rule 16b-3 promulgated under the Exchange Act or (B) the
Board, in its discretion. Notwithstanding the foregoing, all Awards made to members of the Governance Committee shall be approved by the Board. 
  

	 	(b)	 Administration with respect to Employees. 

With respect to Awards to Employees, the Plan shall be administered by (i) the Compensation Committee of the Board; provided that such committee
consists solely of Directors who qualify as “non-employee directors” for purposes of Rule 16b-3 promulgated under the Exchange Act, (ii) the Board in its
discretion or (iii) in limited situations, by an officer or officers of the Corporation pursuant to Section 2(c). 
  

	 	(c)	 Delegation of Authority.  

 

	 	(i)	 The Compensation Committee or the Board in its discretion may delegate to a Director the authority to
administer the Plan with respect to Awards made to Employees who are not subject to Section 16 of the Exchange Act. 

  

	 	(ii)	 The Compensation Committee or the Board in its discretion may delegate to an officer or officers of the
Corporation the authority to administer the Plan with respect to Awards granted to Employees who are not subject to Section 16 of the Exchange Act. 

  
 1 

	 	(iii)	 Notwithstanding the foregoing, in no event shall an officer of the Corporation be delegated the authority to
grant Awards to, or amend Awards held by, the following individuals: (A) individuals who are subject to Section 16 of the Exchange Act or (B) officers of the Corporation (or Directors) to whom authority to grant or amend Awards has
been delegated hereunder; provided however, that any delegation of administrative authority shall only be permitted to the extent it is permissible under applicable securities laws or the rules of any securities exchange or automated
quotation system on which the Shares are listed, quoted or traded. 

  

	 	(iv)	 Any delegation hereunder shall be subject to the restrictions and limits that the Compensation Committee or the
Board specifies, and such Administrator may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 2(c) shall serve in such capacity at the pleasure of such
Administrator. 

  

	 	(d)	 Powers of the Administrator. 

The Administrator shall have the authority, in its sole discretion, subject to and not inconsistent with the express terms and provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan. The Administrator shall have the authority in its sole discretion to
determine the following, without limitation: (i) the Employees and Directors who shall be granted Awards; (ii) the number of Shares to be subject to each Award; (iii) the vesting or acceleration of Awards; (iv) whether, to what
extent, and under what circumstances an Award may be settled, or the exercise price of an Award may be paid, in cash, Shares, other Awards, or other property; (v) whether and to what extent an Award may be canceled, forfeited, or surrendered;
(vi) the form of each Award Agreement, which need not be identical for each Participant; (vii) the designation of Options as Incentive Stock Options or Nonstatutory Stock Options; and (viii) all other conditions of Awards to Employees
and Directors. 
 The Administrator shall have the power to interpret the Plan and all Award Agreements, and to adopt such rules for the administration,
interpretation and application of the Plan as are not inconsistent with the Plan, and to interpret, amend or revoke any such rules. The Administrator shall have the full power and authority, in its sole discretion, to supervise the administration of
the Plan, to make factual determinations relevant to Plan entitlements, to adopt subplans applicable to specified Affiliates or locations and to take all actions in connection with the administration of the Plan as it deems necessary or advisable.

 The Administrator shall have, subject to the terms and conditions and within the limitations of the Plan, the authority to modify, extend or renew
outstanding Awards granted to Employees and Directors under the Plan. Notwithstanding the foregoing, (i) in no event shall the term of any Option or Stock Appreciation Right be modified, extended or renewed to have a duration that goes beyond
the original expiration date of such Award and (ii) no modification of an Award shall, without the consent of the Participant, impair the Participant’s rights under any Award previously granted under the Plan. 

  
 2 

 Notwithstanding the foregoing, the Administrator shall have no authority to cash out or otherwise cancel in
exchange for consideration any outstanding Options or Stock Appreciation Rights with an exercise price that is in excess of the then Fair Market Value of the underlying Shares. In addition, without the consent of the stockholders of the Corporation,
except as provided in Section 15, the Administrator shall have no authority to take any action that would constitute the repricing of any outstanding Options or Stock Appreciation Rights under the Plan, whether by (i) a reduction in the
exercise price, (ii) the cancellation of any outstanding Options or Stock Appreciation Rights and the grant in substitution therefor of Options or Stock Appreciation Rights covering the same or different numbers of Shares, (iii) the
exchange of any outstanding Options or Stock Appreciation Rights for other Awards or (iv) any other method. 
 The interpretation and construction by
the Administrator of any provisions of the Plan or of any Award shall be final and binding on all persons. No member of a Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award. 

 

	3.	 ELIGIBILITY. 

Subject to the terms and conditions set forth below, Awards may be granted to Employees and Directors (“Eligible Persons”). Notwithstanding the
foregoing, only employees of the Corporation and its Subsidiaries (as defined in Section 424(a) of the Code) may be granted Incentive Stock Options. 
  

	4.	 STOCK. 

  

	 	(a)	 Share Reserve. 

Subject to adjustment as provided in Section 15, the aggregate number of Shares reserved for issuance under the Plan shall not exceed four million, nine
hundred seventy-seven thousand, five hundred sixteen (4,977,516). Such Shares shall be shares of the Corporation’s authorized but unissued or reacquired Common Stock bought on the market or otherwise. 

 

	 	(b)	 Incentive Stock Option Limitation. 

The maximum number of Shares that may be subject to Incentive Stock Options shall be equal to one million (1,000,000). 

 

	 	(c)	 Individual Limitations. 

A Participant may receive more than one Award, including Awards of the same type, but only on the terms and subject to the restrictions set forth in the Plan.
Subject to adjustment as provided in Section 15, (i) the maximum aggregate number of Shares that may be subject to Full Value Awards granted to a Participant in any fiscal year of the Corporation is five hundred thousand (500,000) and
(ii) the maximum aggregate number of Shares that may be subject to Options or Stock Appreciation Rights granted to a Participant in any fiscal year of the Corporation is one million (1,000,000). 

  
 3 

	 	(d)	 Reuse of Shares. 

If any Shares subject to an Award are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of
Shares to the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination or expiration, again be available for Awards under the Plan at the same rate that such
Shares were issued in accordance with Section 4(b). Notwithstanding the foregoing, (i) Shares that are exchanged by a Participant or withheld by the Company or any Subsidiary as full or partial payment in connection with the exercise or
settlement of an Option or Stock Appreciation Right under the Plan, including the satisfaction of the tax withholding obligations related to such exercise or settlement of any Option or Stock Appreciation Right, shall not be available for subsequent
Awards under the Plan, (ii) notwithstanding that a Stock Appreciation Right is settled by the delivery of a net number of Shares, the full number of Shares underlying such Stock Appreciation Right shall not be available for subsequent Awards
under the Plan, and (iii) Shares repurchased on the open market with the proceeds of an Exercise Price shall not again be made available for issuance under the Plan. In addition, (x) Shares withheld by the Company or any Subsidiary to
satisfy the tax withholding obligations related to the vesting or settlement of any Full Value Award shall again be available for grants of Awards pursuant to the Plan, (y) to the extent an Award is paid or settled in cash, the number of Shares
with respect to which such payment or settlement is made shall again be available for grants of Awards pursuant to the Plan and (z) Shares underlying Awards that can only be settled in cash shall not be counted against the aggregate number of
Shares available for Awards under the Plan. 
  

	5.	 OPTIONS. 

  

	 	(a)	 Grants. 

Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Eligible Persons to whom, and the time or
times at which, grants of Options will be made, the number of Options to be awarded, and all other terms and conditions of the Options. Options granted to Employees and Directors pursuant to the Plan shall be evidenced by Option Agreements in such
form as the Administrator shall determine. Options shall be designated as Incentive Stock Options or Nonstatutory Stock Options and shall be subject to the following terms and conditions: 

 

	 	(b)	 Number of Shares. 

Each Option shall state the number of Shares to which it pertains, which shall be subject to adjustment in accordance with Section 15. 

  
 4 

	 	(c)	 Exercise Price. 

Each Option shall state the Exercise Price, which shall not be less than 100% of the Fair Market Value of a Share on the date of grant, and which shall be
subject to adjustment in accordance with Section 15. 
  

	 	(d)	 Method of Payment. 

An Option may be exercised, in whole or in part, by giving notice of exercise in the manner prescribed by the Corporation specifying the number of Shares to be
purchased. Such notice shall be accompanied by payment in full of the Exercise Price in cash or, if acceptable to the Administrator in its sole discretion (i) in Shares already owned by the Participant (including, without limitation, by
attestation to the ownership of such Shares), (ii) by the withholding and surrender of Shares subject to the Option, or (iii) by delivery (in a manner prescribed by the Administrator) of an irrevocable direction to a securities broker
approved by the Administrator to sell Shares and to deliver all or part of the sales proceeds to the Corporation in payment of all or part of the purchase price and any withholding taxes. Payment may also be made in any other form approved by the
Administrator, consistent with applicable law, regulations and rules. 
  

	 	(e)	 Term and Exercise of Options. 

Each Option shall state the time or times when it may become exercisable. No Option shall be exercisable after the expiration of seven years from the date it
is granted. 
  

	 	(f)	 Termination of Employment. 

Each Option Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the
Participant’s employment or service with the Corporation and its Affiliates. Such provisions shall be determined in the sole discretion of the Administrator, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of employment. Unless otherwise provided in Section 2(d) and the Option Agreement, the Administrator may, in its sole discretion, extend the post-termination exercise period with respect to an
Option (but not beyond the original term of such Option). 
  

	 	(g)	 Rights as a Stockholder. 

A Participant or a permitted transferee of a Participant shall have no rights as a stockholder with respect to any Shares covered by his or her Option until
the date of issuance of such Shares. Except as provided in Section 15, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such Shares are issued. 

  
 5 

	 	(h)	 Limitations for Incentive Stock Option Awards. 

If and to the extent that the aggregate Fair Market Value (determined as of the date the Option is granted) of the Shares with respect to which any Incentive
Stock Options are exercisable for the first time by a Participant during any calendar year under this Plan and all other plans maintained by the Corporation, its parent or its Subsidiaries exceeds $100,000, the Options covering Shares in excess of
such amount (taking into account the order in which the Options were granted) shall be treated as Nonstatutory Stock Options. 
 An Employee who owns more
than 10% of the total combined voting power of all classes of outstanding stock of the Corporation, its parent or any of its Subsidiaries is not eligible to receive an Incentive Stock Option pursuant to this Plan unless the Exercise Price of the
Incentive Stock Option is at least 110% of the Fair Market Value of the underlying Shares on the date of grant and the term of the option does not exceed five years. For purposes of this Section 5(h) the stock ownership of an Employee shall be
determined pursuant to Code section 424(d). 
  

	 	(i)	 Other Terms and Conditions. 

The Option Agreement may contain such other terms and conditions, including restrictions or conditions on the vesting of the Option or the conditions under
which the Option may be forfeited, as may be determined by the Administrator that are not inconsistent with the Plan. In no event shall any Option under the Plan be granted with a related right to receive dividend equivalents. 

 

	6.	 STOCK APPRECIATION RIGHTS. 

 

	 	(a)	 Grants. 

Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Eligible Persons to whom, and the time or
times at which, grants of Stock Appreciation Rights will be made, the number of Stock Appreciation Rights to be awarded, and all other terms and conditions of the Stock Appreciation Rights. Stock Appreciation Rights granted to Employees pursuant to
the Plan may be granted alone, in addition to, or in conjunction with, Options. Stock Appreciation Rights shall be evidenced by Stock Appreciation Right Agreements in such form as the Administrator shall determine and shall be subject to the
following terms and conditions: 
  

	 	(b)	 Number of Shares. 

Each Stock Appreciation Right shall state the number of Shares to which it pertains, which shall be subject to adjustment in accordance with Section 15.

  
 6 

	 	(c)	 Calculation of Appreciation: Exercise Price. 

The amount payable on the exercise of a Stock Appreciation Right will be equal to the excess of (i) the aggregate Fair Market Value (on the date of
exercise of the Stock Appreciation Right) of a number of Shares equal to the number of Shares with respect to which the Participant exercised such Stock Appreciation Right on such date, over (ii) the aggregate Exercise Price, which shall not be
less than 100% of the Fair Market Value of the Shares subject to such right on the date of grant and which shall be subject to adjustment in accordance with Section 15. 
  

	 	(d)	 Term and Exercise of Stock Appreciation Rights. 

Each Stock Appreciation Right shall state the time or times when it may become exercisable. No Stock Appreciation Right shall be exercisable after the
expiration of seven years from the date it is granted. 
  

	 	(e)	 Payment. 

The amount to be paid in respect of a Stock Appreciation Right may be paid in Common Stock or in cash, or any combination of the two, or in any other form of
consideration as determined by the Administrator and contained in the Stock Appreciation Right Agreement. 
  

	 	(f)	 Termination of Employment. 

Each Stock Appreciation Right Agreement shall set forth the extent to which the Participant shall have the right to exercise the Stock Appreciation Right
following termination of the Participant’s employment or service with the Corporation and its Affiliates. Such provisions shall be determined in the sole discretion of the Administrator, need not be uniform among all Stock Appreciation Right
Agreements entered into pursuant to the Plan, and may reflect distinctions based on the reasons for termination of employment. 
  

	 	(g)	 Rights as a Stockholder. 

A Participant or a transferee of a Participant shall have no rights as a stockholder with respect to any Shares covered by his or her Stock Appreciation Right
until the date of issuance of such Shares. Except as provided in Section 15, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such Shares are issued. 

 

	 	(h)	 Other Terms and Conditions. 

The Stock Appreciation Right Agreement may contain such other terms and conditions, including restrictions or conditions on the vesting of the Stock
Appreciation Right or the conditions under which the Stock Appreciation Right may be forfeited, as may be determined by the Administrator that are not inconsistent with the Plan. In no event shall any Stock Appreciation Right under the Plan be
granted with a related right to receive dividend equivalents. 

  
 7 

	7.	 RESTRICTED STOCK. 

 

	 	(a)	 Grants. 

Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Eligible Persons to whom, and the time or
times at which, grants of Restricted Stock will be made, the number of shares of Restricted Stock to be awarded, the price (if any) to be paid by the recipient of Restricted Stock, the time or times within which such Awards may be subject to
forfeiture, and all other terms and conditions of the Awards. The Administrator may condition the grant of Restricted Stock upon the attainment of specified performance objectives established by the Administrator pursuant to Section 12 or such
other factors as the Administrator may determine in its sole discretion. 
 The terms of each Restricted Stock Award shall be set forth in a Restricted Stock
Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. A book entry shall be made in the records of the
Corporation’s transfer agent for each Participant receiving a Restricted Stock Award. Alternatively, such Participant shall be issued a stock certificate in respect of such shares of Restricted Stock. If a certificate is issued, it shall be
registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award. The Administrator shall require that stock certificates evidencing such shares be held by
the Corporation until the restrictions lapse and that, as a condition of any Restricted Stock Award, the Participant shall deliver to the Corporation a “stock assignment separate from certificate” relating to the stock covered by such
Award. 
  

	 	(b)	 Restrictions and Conditions. 

The shares of each Restricted Stock Award shall be subject to the following restrictions and conditions: 

 

	 	(i)	 During a period set by the Administrator commencing with the date of such Award (the “Restriction
Period”), the Participant shall not be permitted to sell, transfer, pledge, assign or encumber shares of Restricted Stock, other than pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement
Income Security Act. Within these limits, the Administrator, in its sole discretion, may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part, based on service, performance, a
Change in Control or such other factors or criteria as the Administrator may determine in its sole discretion. 

  
 8 

	 	(ii)	 Except as provided in this paragraph (ii) and paragraph (i) above, the Participant shall have, with
respect to the shares of Restricted Stock, all of the rights of a stockholder of the Corporation, including the right to vote the shares and the right to receive any cash dividends. The payment of cash dividends shall be deferred and, if the
Administrator so determines, invested in additional shares of Restricted Stock to the extent available under Section 4, or otherwise invested. Stock dividends issued with respect to Restricted Stock shall be treated as additional shares of
Restricted Stock that are subject to the same restrictions and other terms and conditions that apply to the shares with respect to which such dividends are issued. In no event shall dividends issued with respect to Restricted Stock be paid or issued
to the Participant unless and until the corresponding Restricted Stock vests. 

  

	 	(iii)	 The Administrator shall specify the conditions under which shares of Restricted Stock may be forfeited and such
conditions shall be set forth in the Restricted Stock Agreement. 

  

	 	(iv)	 If and when the Restriction Period applicable to shares of Restricted Stock expires without a prior forfeiture
of the Restricted Stock, an appropriate book entry recording the Participant’s interest in unrestricted Shares shall be entered on the records of the Corporation’s transfer agent or, if appropriate, certificates for an appropriate number
of unrestricted Shares shall be delivered promptly to the Participant, and the certificates for the shares of Restricted Stock shall be canceled. 

  

	8.	 RESTRICTED STOCK UNITS. 

 

	 	(a)	 Grants. 

Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Eligible Persons to whom, and the time or
times at which, grants of Restricted Stock Units will be made, the number of Restricted Stock Units to be awarded, the price (if any) to be paid by the recipient of the Restricted Stock Units, the time or times within which or other conditions
pursuant to which such Restricted Stock Units may be subject to forfeiture, and all other terms and conditions of the Restricted Stock Unit Awards. 
 The
terms of each Restricted Stock Unit Award shall be set forth in a Restricted Stock Unit Award Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or
appropriate to carry out the intent of the Plan. No book entry shall be made in the records of the Corporation’s transfer agent for a Participant receiving a Restricted Stock Unit Award, nor shall such Participant be issued a stock certificate
in respect of such Restricted Stock Units, and the Participant shall have no right to or interest in shares of Common Stock of the Corporation as a result of the grant of Restricted Stock Units. 

  
 9 

	 	(b)	 Restrictions and Conditions. 

Each Restricted Stock Unit Award shall be subject to the following restrictions and conditions: 

 

	 	(i)	 At the time of grant of a Restricted Stock Unit Award, the Administrator may impose such restrictions or
conditions on the vesting of the Restricted Stock Units, as the Administrator deems appropriate. The Administrator, in its sole discretion, may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions
in whole or in part, based on service, performance, a Change in Control or such other factors or criteria as the Administrator may determine in its sole discretion. 

 

	 	(ii)	 Dividend equivalents may be credited in respect of Restricted Stock Units, as the Administrator deems
appropriate. In the discretion of the Administrator, such dividend equivalents may be credited on behalf of the Participant to a book account denominated in cash (in a manner prescribed by the Administrator and in compliance with Code section 409A)
or converted into additional Restricted Stock Units by dividing (A) the aggregate amount or value of the dividends paid with respect to that number of Shares equal to the number of Restricted Stock Units credited as of the record date for such
dividend by (B) the Fair Market Value per Share on the payment date for such dividend. In the discretion of the Administrator, any dividend equivalents denominated in cash may be credited with interest at a rate determined by the Administrator
in its discretion. Any additional Restricted Stock Units credited by reason of such dividend equivalents shall be subject to the same terms and conditions that apply to the underlying Restricted Stock Unit Award to which they relate.

  

	 	(iii)	 The Administrator shall specify the conditions under which Restricted Stock Units may be forfeited and such
conditions shall be set forth in the Restricted Stock Unit Agreement. 

 Notwithstanding the foregoing, no dividend equivalents in respect
of Restricted Stock Units may be paid or issued to the Participant unless and until the corresponding Restricted Stock Units to which the dividend equivalents relate vest. 
  

	9.	 OUTSIDE DIRECTOR AWARDS. 

Each Outside Director may be granted a Restricted Stock Unit Award on the date of each annual meeting of stockholders for up to 5,000 Shares, as determined by
the Board. Such limitation is subject to adjustment as provided in Section 15. Each Restricted Stock Unit Award shall be fully vested on the date of grant and shall be settled in Shares on the grant date; provided, however, that
if the Corporation determines that the Outside Director will not satisfy the stock ownership 

  
 10 

 
guidelines then in effect for Outside Directors on the last day of the deferral election period applicable to such Award under Code section 409A, the delivery of the underlying Shares shall
be automatically deferred until such time as the Director incurs a Separation from Service, and subject to any other terms and conditions prescribed by the Administrator and in compliance with Code section 409A (the “Automatic Deferral
Requirement”). Dividend equivalents may be credited in respect of Restricted Stock Units, subject to the Automatic Deferral Requirement, as the Administrator deems appropriate. Such dividend equivalents may be credited on behalf of the
Participant to a book account denominated in cash (in a manner prescribed by the Administrator and in compliance with Code section 409A) or converted into additional Restricted Stock Units by dividing (a) the aggregate amount or value of
the dividends paid with respect to that number of Shares equal to the number of Restricted Stock Units credited as of the record date for such dividend by (b) the Fair Market Value per Share on the payment date for such dividend. The additional
Restricted Stock Units credited by reason of such dividend equivalents shall be subject to the same terms and conditions that apply to the underlying Restricted Stock Unit Award to which they relate. Notwithstanding the foregoing, no dividend
equivalents in respect of Restricted Stock Units may be paid or issued to the Participant unless and until the corresponding Restricted Stock Units to which the dividend equivalents relate vest. Other terms and conditions of the Restricted Stock
Unit Awards granted to Outside Directors shall be determined by the Administrator subject to the provisions of Section 9 and the Plan. 
 No Outside
Director may receive compensation for any calendar year in excess of $750,000 in the aggregate, including cash payments and Awards. 
  

	10.	 PERFORMANCE AWARDS. 

 

	 	(a)	 Grants. 

Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Employees to whom, and the time or times at
which, grants of Performance Awards will be made, the number of Performance Awards to be awarded, the price (if any) to be paid by the recipient of the Performance Awards, the time or times within which such Performance Awards may be subject to
forfeiture, and all other terms and conditions of the Performance Awards. 
 The terms of Performance Awards shall be set forth in a Performance Award
Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. No book entry shall be made in the records of
the Corporation’s transfer agent for a Participant receiving a Performance Award nor shall certificate for shares of Common Stock be issued at the time the grant is made, and the Participant shall have no right to or interest in shares of
Common Stock of the Corporation as a result of the grant of Performance Awards. 

  
 11 

	 	(b)	 Restrictions and Conditions. 

Each Performance Award shall be subject to the following restrictions and conditions: The Administrator may condition the grant of Performance Awards upon the
attainment of specified performance objectives established by the Administrator pursuant to Section 12 or such other factors as the Administrator may determine, in its sole discretion or the Administrator may, at the time of grant of a
Performance Award, set performance objectives in its discretion which, depending on the extent to which they are met, shall determine the number of Performance Awards that shall be paid out to the Participant. In either case, the time period during
which the performance objectives must be met is called the “Performance Period.” After the applicable Performance Period has ended, the recipient of the Performance Awards shall be entitled to receive the number of Performance Awards
earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved, and which shares may be subject to additional vesting. To the extent that any
dividend equivalents are credited to a Participant in respect of Performance Awards (either in the discretion of the Administrator to a book account denominated in cash (in a manner prescribed by the Administrator and in compliance with Code
section 409A) or converted into additional Performance Awards by dividing (i) the aggregate amount or value of the dividends paid with respect to that number of Shares equal to the number of Performance Awards credited as of the record
date for such dividend by (ii) the Fair Market Value per Share on the payment date for such dividend), any additional Performance Awards or cash-denominated dividend equivalents credited shall be subject to the same terms and conditions that
apply to the underlying Performance Award to which they relate. In the discretion of the Administrator, any dividend equivalents denominated in cash may be credited with interest at a rate determined by the Administrator in its discretion.
Notwithstanding the foregoing, no dividend equivalents in respect of Performance Awards may be paid or issued to the Participant unless and until the corresponding Performance Award to which the dividend equivalents relate is earned and vests. 

 

	11.	 OTHER SHARE-BASED AWARDS. 

 

	 	(a)	 Grants. 

Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based on, Shares (“Other Share-Based
Awards”), may be granted either alone or in addition to or in conjunction with other Awards under this Plan. Other Share-Based Awards may include (without limitation) the grant of Shares conditioned upon some specified event, the payment of
cash based upon the performance of the Common Stock or the grant of securities convertible into Common Stock. 
 Subject to the provisions of the Plan, the
Administrator shall have sole and complete authority to determine the Eligible Persons to whom and the time or times at which Other Share-Based Awards shall be made, the number of Shares or other securities, if any, to be granted pursuant to Other
Share-Based Awards, and all other conditions of the Other Share-Based Awards. The Administrator may condition the grant of an Other Share-Based Award upon the attainment of 

  
 12 

 
specified performance goals or such other factors as the Administrator shall determine, in its sole discretion. In granting an Other Share-Based Award, the Administrator may determine that the
recipient of an Other Share-Based Award shall be entitled to receive, currently or on a deferred basis, interest or dividends or dividend equivalents with respect to the Shares or other securities covered by the Award, and the Administrator may
provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested; provided, that no dividends or dividend equivalents may be paid or accrued during a Performance Period and
provided, further, that no dividends or dividend equivalents in respect of any Other Share-Based Award may be paid or issued to the Participant unless and until the corresponding Other Share-Based Award to which the dividends or
dividend equivalents relate vests. The terms of any Other Share-Based Award shall be set forth in an Other Share-Based Award Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator
determines to be necessary or appropriate to carry out the intent of the Plan. 
  

	 	(b)	 Termination of Employment. 

The Other Share-Based Award Agreement shall contain provisions dealing with the disposition of such Award in the event of termination of the Employee’s
employment or the Director’s service prior to the exercise, realization or payment of such Award, and the Administrator in its sole discretion may provide for payment of the Award in the event of the Participant’s termination of employment
or service with the Corporation or a Change in Control, with such provisions to take account of the specific nature and purpose of the Award. 
  

	12.	 PERFORMANCE OBJECTIVES. 

The Administrator shall determine the terms and conditions of Performance Awards at the date of grant or thereafter. Performance objectives may be determined
on an absolute basis or relative to internal goals or relative to levels attained in prior years or related to other companies or indices or as ratios expressing relationships between two or more performance objectives. The Administrator may specify
in the Performance Award documentation the manner of adjustment of any performance objective, to the extent necessary, to prevent dilution or enlargement of any Award as a result of extraordinary events or circumstances, as determined by the
Administrator, or to adjust or exclude the effects of extraordinary, unusual, or non-recurring items; changes in applicable laws, regulations, or accounting principles; currency fluctuations; discontinued
operations; non-cash items, such as amortization, depreciation, or reserves; asset impairment; or any recapitalization, restructuring, reorganization, merger, acquisition, divestiture, consolidation, spin-off, split-up, combination, liquidation, dissolution, sale of assets, or other similar corporate transaction. In addition, at any time after the grant of Performance
Shares, the Administrator, in its sole discretion, may reduce or waive any performance objective for such Performance Shares. 
  

	13.	 CHANGE IN CONTROL. 

(a) The occurrence of a Change in Control shall not alone result in the accelerated vesting and exercisability of an Award unless otherwise
provided in an Award agreement; provided, that an Award agreement may provide for full vesting and exercisability in the event of a qualifying termination of service with the Corporation (or a successor thereto) that occurs in connection with
a Change in Control. 

  
 13 

 (b) A “Change in Control” of the Corporation shall be deemed to have occurred if
any of the events set forth in any one of the following paragraphs shall occur: 
  

	 	(i)	 Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act), excluding the
Corporation or any of its affiliates, a trustee or any fiduciary holding securities under an employee benefit plan of the Corporation or any of its affiliates, an underwriter temporarily holding securities pursuant to an offering of such securities
or a Corporation owned, directly or indirectly, by stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 30% or more of the combined voting power of the Corporation’s then outstanding securities, excluding any
person who becomes a beneficial owner in connection with a transaction described in clauses (A) or (B) of subparagraph (iii) below, and excluding from the securities beneficially owned by such person any securities acquired directly from
the Company or its Affiliates; or 

  

	 	(ii)	 The following individuals cease for any reason to constitute a majority of the number of Directors then
serving: individuals who, on the date hereof, constitute the Board and any new Director (other than a Director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of the Corporation) whose appointment or election by the Board or nomination for election by the Corporation’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors on the date the Plan was originally adopted by the Board or whose appointment, election or nomination for election was previously so
approved or recommended; or 

  

	 	(iii)	 There is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary of the
Corporation with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Corporation, at least 50% of the combined voting power of
the voting securities of the Corporation or such surviving entity or parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Corporation (or
similar transaction) in which no person acquires more than 30% of the combined voting power of the Corporation’s then outstanding securities; or 

  
 14 

	 	(iv)	 The stockholders of the Corporation approve a plan of complete liquidation of the Corporation or there is
consummated an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets, other than a sale or disposition by the Corporation of all or substantially all of the Corporation’s assets
immediately following which the voting securities of the Corporation outstanding immediately prior to such transaction continue to represent at least 50% of the combined voting power of the voting securities of the entity to which such assets are
sold or disposed or any parent thereof. 

 Notwithstanding the foregoing, no Change in Control shall be deemed to have occurred if there
is consummated any transaction or series of integrated transactions immediately following which the holders of the Common Stock immediately prior to such transaction or series of transactions continue to have the same proportionate ownership in an
entity which owns all or substantially all of the assets of the Corporation immediately prior to such transaction or series of transactions. 
  

	14.	 AWARDS NOT TRANSFERABLE. 

An Option or Stock Appreciation Right shall, during a Participant’s lifetime, be exercisable only by the Participant, and no Award shall be transferable
by Participant by operation of law or otherwise, other than by will, the laws of descent and distribution and in no event shall an Award be transferrable by the Participant for consideration. Notwithstanding the generality of the foregoing:
(i) unless otherwise determined by the Administrator, a Participant may designate a beneficiary to succeed, after the Participant’s death, to all of the Participant’s Awards outstanding on the date of death; (ii) an Award (other
than an Incentive Stock Option) may be transferable pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act; and (iii) any Participant who is a senior executive officer
recommended by the Chief Executive Officer and approved by the Administrator may voluntarily transfer any Award (other than an Incentive Stock Option) to a Family Member as a gift or through a transfer to an entity in which more than 50% of the
voting interests are owned by Family Members (or the Participant) in exchange for an interest in that entity and no other consideration. No transfer of an Award shall be effective to bind the Corporation unless the Committee shall have been
furnished with written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and an agreement by the transferee to comply with all the terms and conditions of
the Award that are or would have been applicable to the Participant and to be bound by the acknowledgments made by the Participant in connection with the grant of the Award. In the event of any attempt by a Participant to alienate, assign, pledge,
hypothecate, or otherwise dispose of an Award or of any right thereunder, except as provided herein, or in the event of the levy of any attachment, execution, or similar process upon the rights or interest hereby conferred, the Corporation at its
election may terminate the affected Award by notice to the Participant and the Award shall thereupon become null and void. 

  
 15 

	15.	 RECAPITALIZATION. 

In the event that any dividend or other distribution (whether in the form of cash, stock, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event, affects the Common Stock, the Administrator shall make such
equitable changes or adjustments as it deems necessary or appropriate to any or all of (i) the number and kind of shares which may thereafter be issued in connection with respect to Awards pursuant to the Plan, (ii) the number and kind of
shares or other property, including cash, issued or issuable in respect of outstanding Awards, (iii) the exercise price, grant price or purchase price relating to any Award, (iv) the limitations set forth in Sections 3, 4 and 9;
provided that with respect to Incentive Stock Options such adjustment shall be made in accordance with Code section 424, or (v) any performance metrics or conditions that apply to the Award and provided further that no
such adjustment shall cause any Award hereunder which is or becomes subject to Code section 409A to fail to comply with the requirements of such section. 
  

	16.	 TERM OF PLAN. 

Awards may be granted pursuant to the Plan until April 27, 2032, unless the Plan is earlier terminated by the Board. 

 

	17.	 SECURITIES LAW REQUIREMENTS AND LIMITATION OF RIGHTS. 

 

	 	(a)	 Securities Law. 

No Shares shall be issued pursuant to the Plan unless and until the Corporation has determined that: (i) it and the Participant have taken all actions
required to register the Shares under the Securities Act of 1933 or perfected an exemption from registration; (ii) any applicable listing requirement of any stock exchange on which the Common Stock is listed has been satisfied; and
(iii) any other applicable provision of federal, state, local or foreign securities or other law, rule or regulation has been satisfied. Without limiting the foregoing, the Corporation shall have no obligation to issue or deliver Shares or
other benefits subject to Awards granted under the Plan prior to (x) obtaining any approvals from government agencies that the Corporation determines are necessary or advisable, and (y) completion of any registration or other qualification
with respect to the Shares under applicable law in the United States or in a jurisdiction outside of the United States or ruling of any governmental body that the Corporation determines is necessary or advisable or at a time when any such
registration or qualification is not current, has been suspended or otherwise has ceased to be effective. The inability or impracticability of the Corporation to obtain or maintain authority from any regulatory body having jurisdiction, which
authority is deemed by the Corporation’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Corporation of any liability in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained, and shall constitute circumstances in which the Corporation may determine to amend or cancel Awards pertaining to such Shares, with or without consideration to the affected Participants. 

  
 16 

	 	(b)	 No Employment Rights. 

Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain employed by the Corporation or an Affiliate or
to remain in service as a Director. The Corporation and its Affiliates reserve the right to terminate the employment of any Employee at any time, with or without cause or for no cause, subject only to a written employment contract (if any), and the
Board reserves the right to terminate a Director’s membership on the Board for cause in accordance with the Corporation’s Certificate of Incorporation. 
  

	 	(c)	 Stockholders’ Rights. 

Except as otherwise provided in the Plan, a Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any
Shares covered by his or her Award prior to an appropriate book entry recording the Participant’s interest in Shares being entered on the records of the Corporation’s transfer agent or, if appropriate, the issuance of a stock certificate
for such Shares. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date when such book entry is made or such certificate is issued. 

 

	18.	 AWARDS IN FOREIGN COUNTRIES. 

The Administrator shall have the authority to adopt such modifications, rules, procedures and subplans as may be necessary or desirable to facilitate
compliance with the provisions of the laws and procedures of foreign countries in which the Corporation or its Affiliates may operate, for the purposes of taking advantage of tax favorable treatment and to assure the viability of the benefits of
Awards made to Participants employed in such countries and to meet the intent of the Plan. 
  

	19.	 BENEFICIARY DESIGNATION. 

Participants and their Beneficiaries may designate on the prescribed form one or more Beneficiaries to whom distribution shall be made of any Award outstanding
at the time of the Participant’s or Beneficiary’s death. A Participant or Beneficiary may change such designation at any time by filing the prescribed form with the Administrator. If a Beneficiary has not been designated or if no
designated Beneficiary survives the Participant, distribution shall be made to the Participant’s spouse, or if none, the Participant’s children in equal shares, or if none, to the residuary beneficiary under the terms of the
Participant’s or Beneficiary’s last will and testament or, in the absence of a last will and testament, to the Participant’s or Beneficiary’s estate as Beneficiary. Notwithstanding the foregoing, the Administrator may prescribe
specific methods, restrictions on or eliminate beneficiary designations made by Participants or Beneficiaries located outside of the United States. 

  
 17 

	20.	 AMENDMENT OF THE PLAN. 

The Board may, at any time, suspend or terminate the Plan and the Board or Compensation Committee may revise or amend it in any respect whatsoever;
provided, however, that stockholder approval shall be required for any such amendment if and to the extent such approval is required in order to comply with applicable law or stock exchange listing requirement. Nothing herein shall
restrict the Committee’s ability to exercise its discretionary authority granted pursuant to the Plan, which discretion may be exercised without amendment to the Plan. No amendment hereunder may, without the consent of a Participant, reduce the
Participant’s rights under any outstanding Award. 
  

	21.	 RECOUPMENT. 

Awards are subject to the Corporation’s Compensation Recoupment Policy, as amended from time to time, which is hereby incorporated by reference into this
Plan. 
  

	22.	 USE OF PROCEEDS FROM STOCK. 

Proceeds from the sale of Common Stock pursuant to Awards shall constitute general funds of the Corporation. 

 

	23.	 APPROVAL OF STOCKHOLDERS. 

This Plan and any amendments requiring stockholder approval shall be subject to approval by the affirmative vote of the stockholders. Such vote shall be taken
at the first annual meeting of stockholders of the Corporation following the adoption of the Plan or of any such amendments, or any adjournment of such meeting. 
  

	24.	 PAPERLESS ADMINISTRATION. 

In the event that the Corporation establishes, for itself or using the services of a third party, an automated system for the documentation, granting or
exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Participant may be permitted through the use of such an automated system. 

 

	25.	 GOVERNING LAW. 

The law of the State of Delaware shall govern all question concerning the construction, validity and interpretation of the Plan, without regard to the
state’s conflict of laws rules. 

  
 18 

	26.	 INTERPRETATION. 

The Plan is designed and intended to comply with Rule 16b-3 promulgated under the Exchange Act and Code section 409A,
to the extent subject thereto, as well as the guidance promulgated under such provisions, and all provisions hereof shall be construed in a manner to so comply. Any payments described in the Plan that are due within the “short-term deferral
period” as defined in Code section 409A shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated
taxation and/or tax penalties under Code section 409A, the Participant shall not be considered to have terminated employment with the Corporation for purposes of the Plan and no payment shall be due to the Participant under the Plan or any Award
until the Participant would be considered to have incurred a Separation from Service within the meaning of Code section 409A. Notwithstanding anything to the contrary in the Plan, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Code section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six-month period immediately following the
Participant’s termination of employment shall instead be paid on the first business day after the date that is six months following the Participant’s Separation from Service (or upon the Participant’s death, if earlier). In addition,
for purposes of the Plan, each amount to be paid or benefit to be provided to the Participant pursuant to the Plan which constitutes deferred compensation subject to Code section 409A shall be construed as a separate identified payment for purposes
of Code section 409A. Notwithstanding the foregoing, for each Award that constitutes nonqualified deferred compensation under Code section 409A, if required to avoid accelerated taxation and/or tax penalties, a Change in Control shall be deemed
to have occurred for purposes of the payment or settlement of such Award under the Plan only if a “change in the ownership of the corporation,” a “change in effective control of the corporation” or a “change in the ownership
of a substantial portion of the assets of the corporation,” within the meaning of Code section 409A(a)(2)(A)(v) shall also be deemed to have occurred under Code section 409A. 

 

	27.	 WITHHOLDING TAXES. 

 

	 	(a)	 General. 

To the extent required by applicable law, the recipient of any payment or distribution under the Plan shall make arrangements acceptable to the Corporation for
the satisfaction of any required income tax, social insurance, payroll tax or other tax related to withholding obligations that arise by reason of such payment or distribution. The Corporation shall not be required to make such payment or
distribution until such obligations are satisfied. 
  

	 	(b)	 Withholding of Shares. 

The Administrator may permit a Participant who exercises an Option or Stock Appreciation Right, who vests in another Award or who receives Shares in settlement
of another Award to satisfy all or part of his or her withholding tax obligations by having the Corporation withhold from the Shares that otherwise would be issued to him or her under such Awards shares of

  
 19 

 
Common Stock of such amount as may be necessary to satisfy all obligations for the payment of such tax obligations and, unless otherwise determined by the Administrator in its discretion, to the
extent such withholding would not result in adverse accounting consequences. Such shares shall be valued at their Fair Market Value on the date on which the amount of tax to be withheld is determined. No fractional Shares shall be withheld but the
number of Shares withheld shall be rounded down to the nearest whole Share. The payment of withholding taxes by surrendering Shares to the Corporation, if permitted by the Administrator, shall be subject to such additional restrictions as the
Administrator may impose. 
  

	28.	 DEFINITIONS. 

(a) “Administrator” means either of the Committees appointed to administer the Plan, the Board in its discretion or, if
applicable, an officer of the Corporation appointed to administer the Plan in accordance with Section 2(c). 
 (b)
“Affiliate” means any entity, whether a corporation, partnership, joint venture or other organization that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the
Corporation. 
 (c) “Award” means any award of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Units, Performance Awards or an Other Share-Based Award under the Plan. 
 (d) “Beneficiary” means a person designated as
such by a Participant or a Beneficiary for purposes of the Plan or determined with reference to Section 19. 
 (e)
“Board” means the Board of Directors of the Corporation. 
 (f) “Code” means the Internal Revenue Code of
1986, as amended from time to time. Any reference to a provision in the Code shall include any successor provision thereto. 
 (g)
“Committee” means the Compensation Committee of the Board (the “Compensation Committee”) or the Committee on Directors and Corporate Governance of the Board (the “Governance Committee”), or both, as applicable.

 (h) “Common Stock” means the $0.01 par value common stock of the Corporation. 

(i) “Corporation” means McKesson Corporation, a Delaware corporation. 

(j) [reserved.] 
 (k)
“Director” means a member of the Board. 

  
 20 

 (l) “Effective Date” means the date on which the Plan was approved by the
Corporation’s stockholders, which is July 22, 2022. 
 (m) “Employee” means an individual employed by the
Corporation or an Affiliate of the Corporation. 
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Exchange Act shall include any successor provision thereto. 

(o) “Exercise Price” means the price per Share at which an Option or Stock Appreciation Right may be exercised. 

(p) “Fair Market Value” of a Share as of a specified date means 

 

	 	(i)	 if the Common Stock is listed or admitted to trading on any stock exchange, the closing price on such date as
reported by such stock exchange (for example, on its official web site, such as www.nyse.com), or if there is no trading of Common Stock on such date, such closing price on the next preceding date on which there was trading in such shares, or

  

	 	(ii)	 if the Common Stock is not listed or admitted to trading on a stock exchange, the mean between the lowest
reported bid price and highest reported asked price of the Common Stock on such date in the over-the-counter market, as reported by such
over-the-counter market (for example, on its official web site, such as www.otcbb.com), or if no official report exists, as reported by any publication of general
circulation selected by the Corporation which regularly reports the market price of the Shares in such market, or 

  

	 	(iii)	 if the Common Stock is neither listed on an established securities exchange, national market system or
automated quotation system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Committee with respect to such date. 

(q) “Family Member” means any person identified as an “immediate family” member in Rule 16(a)-1(e) of the Exchange Act, as such Rule may be amended from time to time. Notwithstanding the foregoing, the Committee may designate any other person(s) or entity(ies) as a “Family Member.” 

(r) “Full Value Award” means an Award other than an Option or a Stock Appreciation Right. 

(s) “Incentive Stock Option” means an Option described in Code section 422(b). 

  
 21 

 (t) “Nonstatutory Stock Option” means an Option not described in Code
section 422(b). 
 (u) “Option” means an option to purchase shares of Common Stock granted pursuant to Section 5.
“Option Agreement” means the agreement between the Corporation and the Participant which contains the terms and conditions pertaining to the Option. 

(v) “Other Share-Based Award” means an Award granted pursuant to Section 11. “Other Share-Based Award
Agreement” means the agreement between the Corporation and the recipient of an Other Share-Based Award which contains the terms and conditions pertaining to the Other Share-Based Award. 

(w) “Outside Director” means a Director who is not an Employee. 

(x) “Participant” means an Employee or Director who has received an Award. 

(y) “Performance Awards” means an Award granted pursuant to Section 10. “Performance Award Agreement” means the
agreement between the Corporation and the recipient of the Performance Awards which contains the terms and conditions pertaining to the Performance Awards. 

(z) “Plan” means this McKesson Corporation 2022 Stock Plan. 

(aa) “Restricted Stock” means a share of Common Stock which is granted pursuant to Section 7. “Restricted Stock
Agreement” means the agreement between the Corporation and the recipient of the Restricted Stock which contains the terms, conditions and restrictions pertaining to the Restricted Stock. 

(bb) “Restricted Stock Unit” means an Award granted pursuant to Section 8. “Restricted Stock Unit Agreement”
means the agreement between the Corporation and the recipient of the Restricted Stock Unit Award which contains the terms and conditions pertaining to the Restricted Stock Unit Award. 

(cc) “Separation from Service” means termination of services with the Corporation. For purposes of this definition, “the
Corporation” shall be “the employer,” within the meaning of Code section 409A. A Participant shall be deemed to have had a Separation from Service if the Participant’s service with the Corporation is reduced to an annual
rate that is equal to or less than twenty percent of the services rendered, on average, during the immediately preceding three years of service with the Corporation (or if providing service to the Corporation for less than three years, such lesser
period). 
 (dd) “Share” means one share of Common Stock, adjusted in accordance with Section 15 (if applicable). 

  
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 (ee) “Stock Appreciation Right” means a right granted pursuant to
Section 6. “Stock Appreciation Right Agreement” means the agreement between the Corporation and the recipient of the Stock Appreciation Right which contains the terms and conditions pertaining to the Stock Appreciation Right. 

(ff) “Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Corporation if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

  
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