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Document

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT
Employment Agreement (“Agreement”) made as of the 21st day of May 2021 by and between Sangamo Therapeutics, Inc., a Delaware corporation (the “Company”), and Prathyusha Duraibabu (“Executive”) (collectively, the “Parties”).
R E C I T A L S
WHEREAS, the Company desires to promote Ms. Duraibabu to Executive, and Executive desires to be promoted by the Company, on the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree follows:
1.Employment.
The Company hereby agrees to employ Executive and Executive hereby agrees to accept such employment, on the terms and conditions set forth in this Agreement, with a start date of  June 1, 2021  (the “Effective Date”).  To the extent of any inconsistency with Ms. Duraibabu’s prior employment agreements with the Company, this Agreement shall supersede such prior agreements.
2.At-Will Employment.
1Executive shall be employed on an at-will basis.  Either Executive or the Company may terminate employment at any time, with or without cause, and with or without advance notice.  
3.Position, Duties and Obligations.
(a)Executive shall be appointed as the Senior Vice President, Chief Financial Officer and shall serve in such position, and in such other positions as the Board and the Company may from time to time reasonably determine, subject at all times to the direction, supervision and authority of the Chief Executive Officer (collectively, your “Duties”).  
(b)During Executive’s employment, Executive shall perform Executive’s Duties faithfully and to the best of Executive’s ability, and shall devote substantially all of Executive’s business time, attention, knowledge, skills and interests to the business of the Company (and its affiliates or subsidiaries).  
(c)During Executive’s employment, Executive shall not, whether directly or indirectly, render any services of a commercial or professional nature to any other person or organization, whether for compensation or otherwise, without the prior written consent of the Chief Executive Officer. 

(d)The foregoing in this Section 3 shall not preclude Executive from serving on any corporate, civic or charitable boards or committees on which Executive is serving as of the Effective Date and discloses to the Chief Executive Officer prior to the Effective Date or on which Executive commences service following such date with the Chief Executive Officer’s prior written approval, so long as such activities do not interfere with the performance of Executive’s responsibilities hereunder.  
(e)Executive’s principal place of business will be located in Brisbane,  California.
(f)Executive represents that Executive may enter into this Agreement, and as of the Effective Date, 1) accept employment with the Company under the terms of this Agreement, and 2) perform the Duties and responsibilities contemplated by this Agreement without violating any other agreement or agreements with other parties including but not limited to and any prior employers.
4.Compensation and Benefits.
(a)Base Compensation.  The Company shall pay to Executive an annual base salary of $400,000 Dollars, prorated for any partial employment period and payable in equal monthly installments in accordance with the Company’s payroll schedule.  The Compensation Committee of the Board shall annually review the then-current level of Executive’s base salary (for increase only) to determine the amount, if any, of change to such salary.
(b)Annual Performance Bonus.  Executive is eligible to earn an annual performance bonus commencing with the 2021 calendar year performance period.  The target amount of Executive’s annual cash bonus shall be 35% percent of Executive’s annual base salary.  Your new bonus target will be pro-rated accordingly for the remainder of 2021. The Board shall have sole discretion to determine whether any annual cash bonus will be paid based upon achievement of both corporate objectives and Executive’s personal objectives, and the reasonable discretion to determine that actual amount of any such bonus.  Executive must be an employee in good standing on the date that the Board makes such determination in order to earn any such bonus, which determination shall be made by the Board no later than March 31 of the calendar year first following the performance period calendar year.  The actual bonus may be more or less than the target amount based upon the Company’s achievement over the year.  Any bonus to which Executive becomes entitled for a particular calendar year shall be paid in accordance with the terms of the applicable bonus plan, but in no event later than the second payroll period following such Board determination.  The Compensation Committee of the Board shall annually review Executive’s then target amount for the annual cash bonus (for increase only) to determine the amount, if any, of change to such target amount.
(c)Executive Severance Plan.  Executive shall be deemed an Eligible Employee and an Executive Officer and entitled to receive certain severance benefits under the Sangamo Therapeutics, Inc. Executive Severance Plan dated February 6, 2019 (the “Severance Plan”) subject to the terms and conditions of the Severance Plan.  A copy of the Severance Plan has been provided to Executive concurrently with this Agreement.  Notwithstanding the 

foregoing, in the event that the Company withdraws this offer after it is signed by Executive or terminates this Agreement prior to the Effective Date for any reason other than Executive’s failure to successfully pass the requirements for a background check clearance, satisfactory reference check, and satisfactory proof of Executive’s legal right to work in the United States required under Section 8(a) herein, then Executive shall be entitled to severance under the Severance Plan as though his employment was terminated by the Company other than for Cause to the same extent as he would otherwise be entitled had such termination occurred after the Effective Date; provided, however, that Executive shall not be entitled to such severance if he has not notified his current employer of his intent to resign his employment at the time the Company informs him of the withdrawal or termination of this Agreement.
(d)Benefits.  Executive will be entitled to the employee benefits generally provided to other executive officers of the Company pursuant to the terms of the applicable benefit plans.  Executive will not be subject to a formal paid time off program.  Executive is free to take paid time off from work for vacation, medical appointments, and other short-term absences due to illnesses or other personal reasons.  If Executive desires to take time off for a duration longer than two (2) weeks manager approval is required.  Unlimited paid time off is available from the first day of employment.  
(e)Equity.  Effective on the second Friday of the month, or if not a trading day, the trading day prior (the “Grant Date”) in which the Executive commences her new role, as long as the first day of employment with Sangamo occurs between the prior Grant Date and the day preceding the Grant Date, the Compensation Committee of the Board shall grant you non-statutory stock options to purchase up to  15,000 shares of the Company’s Common Stock subject to the terms and conditions of the Company’s 2018 Equity Incentive Plan (the “Plan”),with an exercise price per share equal to the fair market value of the Company’s Common Stock on the Grant Date (the “Option”).  The Option will be evidenced by the standard stock option agreement under the Plan and will be subject to the terms and conditions of that agreement and the Plan:
● 1/4th (one-fourth) of the Option shares will vest on the first-year anniversary of the Grant Date, and 
● 1/48th (one forty-eighth) of the Option shares will vest in equal monthly installments for thirty-six (36) months thereafter, 
provided Executive remains a full-time employee through each such vesting date.  Vesting of the Option and any subsequent equity grants will cease upon termination of Executive’s service by either party for any reason.
(f)Also, subject to approval by the Compensation Committee of the Board, we intend to grant you 7,500 restricted stock units ("Restricted Stock Units") under the Plan. Each Restricted Stock Unit represents the right to receive one share of the Company's common stock upon the specified issuance date following vesting. Your Restricted Stock Units will vest in a series of three (3) successive equal annual installments upon your completion of each year of service to the Company measured from the Vesting Commencement Date. The issuance of the 

underlying shares of common stock in settlement of vested Restricted Stock Units will be subject to the Company's collection of all applicable withholding taxes. The Restricted Stock Units will be evidenced by the Plan's form of Restricted Stock Unit Issuance Agreement and will be subject to its terms and conditions and the Plan.  
(g)Clawback.  Notwithstanding anything to the contrary in this Agreement, all compensation paid to Executive by the Company (whether payable pursuant to this Agreement or otherwise) will be subject to reduction, recovery and/or recoupment to the extent required by any present or future law, government regulation or stock exchange listing requirement (or any policy adopted by the Company which ensures compliance with the requirements of any such law, government regulation or stock exchange listing requirement).
(h)Resignation from Positions.  Notwithstanding any other provision of this Agreement to the contrary, upon any termination of employment (whether voluntary or involuntary), Executive, upon written request from the Board, shall immediately resign from any positions Executive has with the Company (or any subsidiary), whether as an executive, officer, employee, consultant, director, trustee, fiduciary or otherwise.
5.Confidentiality.  Executive agrees to continue to abide by the terms and conditions of the Employee Confidential Information and Invention Assignment Agreement between Executive and the Company, a copy of which has previously been execute and is attached as Exhibit A.  Executive further agrees that at all times both during Executive’s employment by the Company and after Executive’s employment ends, Executive will keep in confidence and trust, and will not use or disclose, except as directed by the Company, any confidential or proprietary information of the Company.  
6.Tax Withholdings.  Any and all cash compensation and other benefits (including without limitation, base salary, annual bonus and sign-on bonus) paid to Executive under this Agreement shall be subject to all applicable tax withholding requirements, and the Company shall make such other deductions as may be required and/or allowed by applicable law and/or as authorized in writing by Executive.
7.Arbitration. Any dispute, controversy, or claim, whether contractual or non-contractual, between Executive and the Company shall be resolved by binding arbitration before the Judicial Arbitration and Mediation Service (the “JAMS”), in accordance with the JAMS Employment Arbitration Rules and Procedures, available at www.jamsadr.com.  Executive and the Company each agree that before proceeding to arbitration, they will mediate disputes before the JAMS by a mediator approved by the JAMS.  If mediation fails to resolve the matter, any subsequent arbitration shall be conducted by an arbitrator approved by the JAMS and mutually acceptable to Executive and the Company.  All disputes, controversies, and claims shall be conducted by a single arbitrator, who shall: (i) allow discovery authorized by California Code of Civil Procedure Section 1282, et seq., or any other discovery required by applicable law; and (ii) issue a written award that sets forth the essential findings of fact and conclusions of law on which the award is based.  The arbitrator shall have the authority to award any relief authorized by law in connection with the asserted claims or disputes.   Judgment upon the arbitrator’s award may be entered in any court having jurisdiction thereof.  If Executive and the Company are unable to agree on the 

mediator or the arbitrator, then the JAMS shall select the mediator/arbitrator.  The resolution of the dispute by the arbitrator shall be final, binding, non-appealable, and fully enforceable by a court of competent jurisdiction under the Federal Arbitration Act.  The arbitration award shall be in writing and shall include a statement of the reasons for the award.  The arbitration shall be held in San Francisco, California.  The Company shall pay all JAMS, mediation, and arbitrator’s fees and costs, irrespective of who raised the claim and the outcome of arbitration.
8.Miscellaneous.
(a)Conditions to Agreement.  This Agreement is contingent upon a background check clearance, satisfactory reference check, and satisfactory proof of Executive’s legal right to work in the United States.  Executive agrees to provide any documentation or information at the Company’s request to facilitate these processes.  
(b)Governing Law.  This Agreement shall be interpreted, construed, governed and enforced according to the laws of the State of California.
(c)Attorneys’ Fees.  In the event of any controversy, claim or dispute between the parties, arising out of or relating to this Agreement or the breach hereof, or the interpretation hereof, each party shall bear its own legal fees and expenses.  Notwithstanding the foregoing, in the event of a finding by any court having jurisdiction over such matter that any party initiating an action under this Agreement failed to have a reasonable prospect of prevailing on its claim, the arbitrator shall have discretion to award the prevailing party attorneys’ fees and costs incurred by it with respect to such claim or action.  The "prevailing party" means the party determined by the arbitrator to have most nearly prevailed, even if such party did not prevail in all matters, not necessarily the one in whose favor a judgment is rendered.
(d)Amendments.  No amendment or modification of the terms or conditions of this Agreement shall be valid unless in writing and signed by the Parties hereto.
(e)Severability.  If any provision of this Agreement as applied to any party or to any circumstance should be adjudged by a court of competent jurisdiction (or determined by the arbitrator) to be void or unenforceable for any reason, the invalidity of that provision shall in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated by the court or determined by the arbitrator, the application of any other provision of this Agreement, or the enforceability or invalidity of this Agreement as a whole.  Should any provision of this Agreement become or be deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision will be stricken, and the remainder of this Agreement shall continue in full force and effect.
(f)Successors and Assigns.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and 

assigns of the Company.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.

(g)Entire Agreement.  This Agreement, along with any other agreements set forth herein, including without limitation, the Proprietary Information and Inventions Agreement, constitutes the entire agreement between the parties with respect to the employment of Executive.

												
	SANGAMO THERAPEUTICS, INC.	
			
	By:	

Name: Whitney B. Jones
Title: Senior Vice President, Chief People Officer

	PRATHYUSHA DURAIBABU	
		

EXHIBIT AEX-10.2

   

  Exhibit 10.2 

  Aldeyra Therapeutics, Inc.
Amended and Restated Change in Control Plan

  ARTICLE 1.INTRODUCTION.

  The Aldeyra Therapeutics, Inc. Amended and Restated Change in Control Plan, as amended and restated from time to time (the “Plan”) is established effective March 28, 2017 (the “Effective Date”). The purpose of the Plan is to provide for the accelerated vesting for outstanding (i) unvested equity awards and/or (ii) unvested performance based cash unit awards issued under the Aldeyra Therapeutics, Inc. Management Cash Incentive Plan (the “Management Plan”) held by eligible employees of Aldeyra Therapeutics, Inc. and its Affiliates (the “Company”) if such employees are subject to a qualifying employment termination in connection with a Change in Control. This Plan shall supersede (i) any generally applicable severance or change in control plan, policy or practice, whether written or unwritten, and (ii) any individually negotiated and signed employment contract or agreement solely with respect to the vesting of (a) equity awards and/or (b) performance based cash unit awards issued under the Management Plan in connection with a Change in Control with respect to each employee who becomes a Participant in the Plan. In addition, the Plan does not modify any post-employment covenants of a Participant pursuant to Company policies or agreements between the Participant and the Company. 

  ARTICLE 2.DEFINITIONS.

  For purposes of the Plan, the following terms are defined as follows:

  (a)“Affiliate” means an entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with the Company. 

  (b) “Board” means the Board of Directors of Aldeyra Therapeutics, Inc.

  (c)“Cause” shall mean the Company’s good faith determination that any one or more of the following has occurred with respect to the participant:

  (i)an act or acts of personal dishonesty taken by the  Participant and intended to result in substantial personal enrichment of the Participant at the expense of the Company;

  (ii)repeated violations by the Participant of the Participant’s duties and obligations (other than as a result of incapacity due to physical or mental illness) which are demonstrably willful and deliberate on the Participant’s part, which are committed in bad faith or without reasonable belief that such violations are in the best interests of the Company and which are not remedied in a reasonable period of time after receipt of written notice from the Company;

  (iii)indictment or plea of nolo contendere of Participant of a felony involving moral turpitude; or

  (iv)the material breach of the Participant’s Proprietary Information and Inventions Agreement.

  (d)“Change in Control” shall mean any of the following has occurred:

  (i)Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; 

  (ii)The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; 

  	

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  (iii)The consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or

  (iv)Individuals who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

  (v)A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.  In addition, if a Change in Control constitutes a payment event with respect to any Award which provides for a deferral of compensation and is subject to Code Section 409A, then notwithstanding anything to the contrary in the Plan or applicable Award Agreement the transaction with respect to such Award must also constitute a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code Section 409A.  

  (e) “Change in Control Termination” means either an Involuntary Termination or a termination for Good Reason, in each case, that occurs within three (3) months prior to or within twelve (12) months following the effective date of a Change in Control.

  (f)“Code” means the Internal Revenue Code of 1986, as amended.

  (g)“Company” means Aldeyra Therapeutics, Inc., its Affiliates, any successor to Aldeyra Therapeutics, Inc. and, following a Change in Control, the surviving or controlling entity resulting from such a Change in Control or the entity to which the Company’s assets were transferred in the case where the Change in Control is an asset sale.

  (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  (i)Good Reason” shall mean with respect to a Category I Participant: 

  (i)a material diminution in a Participant’s base salary or target bonus by more than 10% (unless in connection with a company wide cost reduction);

  (ii)a material diminution in Participant’s authority, duties or responsibilities with respect to the Company or any successor or acquiring entity, including, without limitation, any requirement that a Participant who is the Chief Executive Officer report to anyone other than to the Board of Directors of the ultimate parent entity of the Company (the “Ultimate Parent Company”) or that a Participant (other than the Chief Executive Officer) report to anyone other than the Chief Executive Officer of the Ultimate Parent Company; 

   

  (iii)a breach of a material provision of Participant’s employment or other written agreement governing employment with the Company (it being understand that a change in title without Participant’s consent shall be a material breach); or

   

  (iv)without Participant’s prior consent, a relocation of his/her principal workplace by more than fifty (50) miles away from the location which the Participant was working immediately prior to the required relocation.

   

  A termination shall not be a Good Reason unless (x) the Participant gives the Company written notice of such condition within 90 days after such condition first comes into existence, (y) the Company fails to remedy such 

  	

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  condition within 30 days after receiving the Participant’s written notice, and (z) the Participant has a Separation within 30 days of the expiration of the cure period described in clause (y) provided that the Company has not cured the Good Reason event or condition.  

   

  (j)“Good Reason” shall mean with respect to a Category II Participant: 

  (vi)a material diminution in the Participant’s base compensation, except in connection with across-the-board salary reductions for all similarly situated employees; or

  (vii)without Participant’s prior consent, a relocation of his/her principal workplace by more than fifty (50) miles away from the location which the Participant was working immediately prior to the required relocation. 

  A termination shall not be a Good Reason unless (x) the Participant gives the Company written notice of such condition within 90 days after such condition first comes into existence, (y) the Company fails to remedy such condition within 30 days after receiving the Participant’s written notice, and (z) the Participant has a Separation within 30 days of the expiration of the cure period described in clause (y) provided that the Company has not cured the Good Reason event or condition.  

  (k)“Involuntary Termination” means a Participant’s involuntary termination of employment by the Company resulting in a Separation for a reason other than Cause, provided that the Participant is willing and able to continue performing services within the meaning of Treasury Regulation Section 1.409A-1(n)(1).  

  (l) “Participant” means an individual who is employed by the Company or its Affiliates. “Category I Participant,” is an employee of the Company or Affiliate who has one of the following job titles: Chief Executive Officer, Chief Financial Officer or Chief Medical Officer or any other officers of the Company under Rule 16a‐1(f) of the Securities Exchange Act of 1934 who report to Chief Executive Officer of the Company.  “Category II Participant,” is all other employees of the Company other than Category I Participants. 

  (m)“Plan Administrator” means the Company or any person or committee duly authorized by the Company to administer the Plan. 

  (n) “Separation” means a “separation from service” with the Company within the meaning of Treasury Regulation Section 1.409A-1(h), without regard to any permissible alternative definition thereunder.

  ARTICLE 3.ELIGIBILITY FOR BENEFITS.

  (o)General Rules. Subject to the provisions set forth in this Article 3 and Article 5, in the event of a Change in Control Termination, the Company will provide the benefits described in Article 4 of the Plan to each affected Participant.

  (p)Exceptions to Benefit Entitlement. An employee, including an employee who otherwise is a Participant, will not receive benefits under the Plan (or will receive reduced benefits under the Plan) in the following circumstances, as determined by the Plan Administrator in its sole and reasonable discretion:

  (viii)The employee voluntarily terminates employment with the Company in order to accept employment with another entity that is controlled (directly or indirectly) by the Company or is otherwise an Affiliate of the Company.

  (ix)The employee terminates or is terminated for any reason other than a Change in Control Termination. 

  (x)The employee has failed to return all company property, including but not limited to, keys (electronic and mechanical), laptop, projector, pager, software, training manuals, credit cards, access badges, and all hard copy and soft copy files and/or documents (including copies thereof). If any Company property is lost, the 

  	

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  employee may cure his or her failure to return such property by signing a declaration under oath that the property has been lost and reimbursing the Company for its replacement cost. As a condition to receiving benefits under the Plan, Participants must not make or retain copies, reproductions or summaries of any such Company documents, materials or property. However, a Participant is not required to return his or her personal copies of documents evidencing the Participant’s hire, termination, compensation, benefits and equity awards and any other documentation received as a stockholder of the Company. 

  (q)Termination of Benefits. A Participant’s right to receive the payment of benefits under this Plan shall terminate immediately if, at any time prior to or during the period for which the Participant is receiving benefits hereunder, the Participant, without the prior written approval of the Plan Administrator:

  (xi)willfully breaches a material provision of the Participant’s Proprietary Information and Inventions Agreement with the Company; 

  (xii)willfully encourages or solicits any of the Company’s then current employees to leave the Company’s employ; 

  (xiii)willfully disparages, defames, libels or slanders the Company, its Affiliates, business concerns, past and present, and each of them, as well as each of their partners, trustees, directors, officers, agents, attorneys, servants and employees, past and present, and each of them; or

  (xiv)willfully violates any post-employment covenants contained in any other agreement between the Participant and the Company. 

  ARTICLE 4.CHANGE IN CONTROL TERMINATION BENEFITS.

  (r)Outstanding Equity. If a Category I Participant or a Category II Participant experiences a Change in Control Termination, then, notwithstanding anything to the contrary in the Company’s 2013 Equity Incentive Plan, 2010 Employee, Director and Consultant Equity Incentive Plan and any other equity or stock option plan governing equity awards or stock option agreements or other plan or agreements, all outstanding unvested options and equity awards shall be fully vested and non-forfeitable. 

  (s)Outstanding Performance Based Cash Bonus Unit Awards. If a Category I Participant experiences a Change in Control Termination, then, notwithstanding anything to the contrary in the Management Plan and any other Performance Based Cash Bonus Unit Agreement, governing plan or agreements, all outstanding unvested performance based cash unit awards shall be fully vested and non-forfeitable.

  (t)Other Employee Benefits. If a Participant experiences a Change in Control Termination, all other benefits (such as life insurance, disability coverage, and 401(k) plan coverage) shall terminate as of the date of such Change in Control Termination (except to the extent that a conversion privilege may be available thereunder).

  ARTICLE 5.LIMITATION ON BENEFITS.

  (u)Non-Duplication of Benefits. Except as otherwise specifically provided for herein, no Participant is eligible to receive benefits under this Plan or pursuant to other contractual obligations more than one time. This Plan is designed to provide change in control benefits to Participants pursuant to the terms and conditions set forth in this Plan. The payments pursuant to this Plan are in addition to, and not in lieu of, any unpaid salary, bonuses or benefits (other than change in control vesting benefits) to which a Participant may be entitled for the period ending with the Participant’s Change in Control Termination.

  (v)Parachute Payments. Except as otherwise provided in an agreement between a Participant and the Company, if any payment or benefit the Participant would receive in connection with a Change in Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” 

  	

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  shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Participant’s receipt of the greatest economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, any reduction shall be applied first, on a pro rata basis, to amounts that constitute deferred compensation within the meaning of Section 409A of the Code, and, in the event that the reductions pursuant to this Article 5(b) exceed payments that are subject to Section 409A of the Code, the remaining reductions shall be applied, on a pro rata basis, to any other remaining payments. The Company’s determinations hereunder shall be final, binding and conclusive on all interested parties. 

  ARTICLE 6.RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

  (w)Exclusive Discretion. The Plan Administrator shall have the discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be binding and conclusive on all persons. 

  (x)Amendment. The Company reserves the right to amend this Plan (including but not limited to changing the designation of any Participant as a Category I Participant or Category II Participant, and the benefits provided hereunder at any time; provided, however, that (i) no such amendment shall reduce or otherwise adversely affect the benefits provided in Article 4  to a Participant unless such Participant consents in writing to such amendment, and (ii) no such amendment shall occur following the date of entry into a definitive agreement that would result in a Change in Control as to any Participant who would be adversely affected by such amendment unless such Participant consents in writing to such amendment. 

  (y)Initial Term, Automatic Renewal and Termination. The Plan shall have an initial three-year term that expires on December 31, 2019. The Plan shall automatically renew for a series of additional one-year terms, unless the Plan Administrator provides written notification to Participants, at least six months prior to the intended Plan termination date, of the Company’s intent to terminate the Plan effective as of the end of the current term. Notwithstanding the foregoing, upon the occurrence of a Change in Control, the Plan shall be extended to terminate upon the later of (i) the end of the current term, or (ii) the second anniversary of the effective date of such Change in Control. 

  ARTICLE 7.NO IMPLIED EMPLOYMENT CONTRACT.

  The Plan shall not be deemed (a) to give any employee or other person any right to be retained in the employ of the Company, or (b) to interfere with the right of the Company to discharge any employee or other person at any time, with or without cause, and with or without advance notice, which right is hereby reserved.

  ARTICLE 8.LEGAL CONSTRUCTION.

  This Plan shall be governed by and shall be construed in accordance with the laws of the Commonwealth of Massachusetts (without regard to principles of conflict of laws).  

  ARTICLE 9.GENERAL PROVISIONS.

  (z)Notices. Any notice, demand or request required or permitted to be given by either the Company or a Participant pursuant to the terms of this Plan shall be in writing and shall be deemed given when delivered personally or deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties, in the case of a Participant, at the address as set forth in the Company’s employment file maintained for the 

  	

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  Participant as previously furnished by the Participant or such other address as a party may request by notifying the other in writing.

  (aa)Employment at Will.	 Employment with the Company is for no specific period of time.  Participation in the Plan does not confer any right to continued employment, and a Participant’s employment with the Company is “at will.”  

  (bb)Transfer and Assignment. The rights and obligations of a Participant under this Plan may not be transferred or assigned without the prior written consent of the Company. This Plan shall be binding upon any surviving entity resulting from a Change in Control and upon any other person who is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company without regard to whether or not such person or entity actively assumes the obligations hereunder.

  (cc)Waiver and Costs of Enforcement. Any party’s failure to enforce any provision or provisions of this Plan shall not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of this Plan. The rights granted to the parties herein are cumulative and shall not constitute a waiver of any party’s right to assert all other legal remedies available to it under the circumstances. All out-of-pocket costs and expenses reasonably incurred by a Participant (including attorneys’ fees) in connection with enforcing the Participant’s rights under the Plan shall be paid by the Company if such rights relate to a Change in Control Termination that occurs any time after the effective date of the first Change in Control that occurs after the Participant commences participation in the Plan. Notwithstanding the foregoing, if the Participant initiates any claim or action and the claim or action is either totally without merit or frivolous, the Participant shall be responsible for the Participant’s own costs and expenses. 

  (dd)Jurisdiction.  The parties hereto intend to and hereby confer jurisdiction to enforce the Plan upon the state and federal courts sitting in the Commonwealth of Massachusetts. 

  (ee)Severability. Should any provision of this Plan be declared or determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

  (ff)Survival.  The rights and obligations of the parties under the provisions of this Plan shall survive, and remaining binding and enforceable, notwithstanding the termination of Participant’s employment hereunder or otherwise, to the extent necessary to preserve the intended benefits of such provision.

  (gg)Article Headings. Article headings in this Plan are included for convenience of reference only and shall not be considered part of this Plan for any other purpose.

  ARTICLE 10.EXECUTION.

  To record the amendment and restatement of the Plan as set forth herein, Aldeyra Therapeutics, Inc. has caused its duly authorized officer to execute the same as of the 4th day of August, 2021.

   

  Aldeyra Therapeutics, INC.

  By: /s/ Joshua Reed	

Name: Joshua Reed

  Title: Chief Financial Officer

  	

   DOCPROPERTY"SWDocID" GDSVF&H\5735494.2

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