Document:

ex_434131.htm

Exhibit 10.25

 

“Group B”

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is made and entered into this 9th day of July, 2018, between INSTEEL INDUSTRIES INC. a North Carolina corporation (the “Company”) and James R. York (the “Executive”). Certain capitalized terms used in this Agreement are defined in Section 6.

 

R E C I T A L S

 

The Company acknowledges that Executive is expected to make significant contributions to the growth and success of the Company. The Company also acknowledges that there exists the possibility of a Change in Control of the Company. The Company recognizes that the possibility of a Change in Control may contribute to uncertainty on the part of senior management and may result in the departure or distraction of senior management from their operating responsibilities.

 

Strong and competent management of the Company is essential to advancing the best interests of the Company and its partners and its shareholders. In the event of a threat or occurrence of a bid to acquire or change control of the Company or to effect a business combination, it is particularly important that the business of the Company be continued with a minimum of disruption. The Company believes that the objective of securing and retaining strong management will be achieved if the Company’s key management employees are given assurances of employment security so that they will not be distracted by personal uncertainties and risks created by such circumstances.

 

NOW, THEREFORE, in consideration of the mutual covenants and obligations herein the Company and Executive agree as follows:

 

1.    Effective Date. The Effective Date of this Agreement is July 9, 2018.

 

2.    Term of Agreement. The Term of this Agreement begins on the Effective Date and ends on the day before the second anniversary of the Effective Date. Notwithstanding the preceding sentence, the Term of this Agreement shall be extended for an additional twelve month period, as of each anniversary of the Effective Date, unless either party gives written notice, at least ninety days prior to the applicable anniversary of the Effective Date, that the Term of this Agreement will not be extended.

 

3.    Right to Receive Termination Benefits. Executive shall be entitled to receive the Termination Benefits described in Section 4 if (i) a Change in Control occurs during the Term of this Agreement and (ii) within two years after the Control Change Date either (x) the Company terminates Executive’s employment with the Company without Cause or (y) Executive resigns from the employment of the Company and Executive has Good Reason to resign from the Company, and either (x) or (y), as applicable, constitutes a Separation from Service with the Company.

 

 

 

 

No amounts will be payable under this Agreement unless Executive’s employment with the Company terminates or is terminated as described in the foregoing subsection.

 

4.    Termination Benefits. Upon a termination of Executive’s employment in accordance with Section 3, Executive shall be entitled to receive the following payments and benefits (“Termination Benefits”):

 

(a)    A lump sum payment of any accrued but unpaid salary from the Company through the date Executive’s employment terminates.

 

(b)    A lump sum payment of any bonus that has been earned from the Company but which remains unpaid as of Executive’s termination of employment.

 

(c)    A lump sum reimbursement for any expenses Executive incurred on behalf of the Company prior to termination of employment to the extent that such expenses are reimbursable under the Company’s standard reimbursement policies but have not been reimbursed as of Executive’s termination of employment.

 

(d)    Continued payment of Executive’s base salary, for one year following Executive’s termination, at the rate in effect on the date of Executive’s termination of employment or, if greater, at the rate in effect on the Control Change Date. Except as provided in Section 19, such payments shall be made in accordance with the Company’s normal payroll practices beginning with the first payroll payment date following the Executive’s termination of employment.

 

(e)    A lump sum payment equal to one times the average bonus paid to the Executive for the three -year period prior to the Executive’s termination of employment; provided, however, that if the Executive has not been employed for a full three years at the time of his termination of employment, Executive shall receive, in lieu of the foregoing amount, a lump sum payment equal to his annual base salary at the rate in effect on the date of Executive’s termination of employment or, if greater, at the rate in effect on the Control Change Date, multiplied by the average bonus percentage for the immediately preceding three years for the executive management group of the Company (not including the Executive).

 

(f)    Reasonable outplacement services provided by the firm selected by Executive, the cost of which will be paid by the Company; provided, however, that the Company’s obligation under this subsection (f) will not exceed $15,000.

 

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(g)    Continued participation in the “employee welfare benefit plans” (as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended) in which Executive participates immediately prior to Executive’s date of termination, on such terms as are then in effect, for one year following the termination of Executive’s employment with the Company and payment by the Company of the cost or premium for continued coverage in the Company health plan for a period of one year following Executive’s termination of employment. In the event that the continued coverage of Executive in any such employee welfare benefit plan, including without limitation the Company health plan, is barred by its terms, the Company shall pay Executive, for one year following Executive’s termination of employment, the cash equivalent of the portion of the insurance premium or other cost charged to the Company for Executive’s participation in such employee welfare benefit plan(s), including the entire insurance premium or other cost for coverage in the Company health plan, prior to Executive’s termination of employment, plus an additional amount such that, after payment of the income and employment tax liability on such payment, Executive retains an amount equal to the portion of the insurance premium or other cost charged to the Company for Executive’s participation in such employee welfare benefit plans, including the entire insurance premium or other cost for coverage in the Company health plan, prior to Executive’s termination of employment. Except as provided in Section 19, such cash payments, in lieu of coverage, shall be made in accordance with the Company’s normal payroll practices during such one-year period beginning with the first payroll payment date following the Executive’s termination of employment.

 

(h)    All stock options and any other stock-based awards outstanding immediately prior to Executive’s termination of employment shall immediately vest and become exercisable by Executive for the remainder of the term provided for in the agreement evidencing the stock option or award in which such options or other stock-based awards were granted.

 

(i)    Except as provided in Section 19, lump sum Termination Benefits shall be payable within 45 days of Executive’s termination of employment in accordance with Section 3 and the other Termination Benefits shall be payable as described above. The payment of the Termination Benefits shall be reduced by amounts required to be withheld for applicable income and employment taxes.

 

5.    Limitation on Parachute Payments. The Termination Benefits and other payments, distributions and benefits provided by the Company for Executive’s benefit pursuant to this Agreement and under other plans, programs, and agreements may constitute Parachute Payments (as defined in Section 280G(b) of the Internal Revenue Code of 1986 (the “Code”) that are subject to the “golden parachute” rules of Code section 280G and the excise tax of Code section 4999. The Company and Executive intend to reduce any Parachute Payments (but not any payment, distribution or other benefit that is not a Parachute Payment) if, and only to the extent that, a reduction will allow Executive to receive a greater Net After Tax Amount than he would receive absent a reduction. The remaining provisions of this Section describe how that intent will be effectuated.

 

(a)    The Company will first determine the amount of any Parachute Payments that are payable to Executive. The Company will also determine the Net After Tax Amount attributable to total Parachute Payments.

 

(b)    The Company will next determine the amount of Executive’s Capped Parachute Payments. Thereafter, the Company will determine the Net After Tax Amount attributable to Executive’s Capped Parachute Payments.

 

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(c)    Executive shall receive the total Parachute Payments unless the Company determines that the Capped Parachute Payments will yield Executive a higher Net After Tax Amount, in which case Executive will receive the Capped Parachute Payments. If Executive will receive the Capped Parachute Payments, the total Parachute Payments will be adjusted by first reducing the amount payable under any other plan, program, or agreement that, by its terms, requires a reduction to prevent a “golden parachute” payment under Code section 280G; by next reducing Executive’s benefit, if any, under this Agreement, to the extent it is a Parachute Payment; and thereafter by reducing Parachute Payments payable under other plans and agreements (with the reductions first coming from cash benefits and then from noncash benefits). The Company will notify Executive if it determines that the Parachute Payments must be reduced to the Capped Parachute Payments and will send Executive a copy of its detailed calculations supporting that determination. The Company will pay Executive the Termination Benefits or the reduced Termination Benefits determined in this Section 5 as described in Sections 4 and 19.

 

6.    Certain Definitions. As used in this Agreement, certain terms have the definitions set forth below.

 

(a)    Acquiring Person means that a Person, considered alone or together with all Control Affiliates and Associates of that Person, is or becomes directly or indirectly the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of securities representing at least twenty five percent (25%) of the Company’s then outstanding securities entitled to vote generally in the election of the Board.

 

(b)    Associate, with respect to any Person, is defined in Rule 12b-2 under the Exchange Act; provided, however, that an Associate shall not include the Company or a majority-owned affiliate of the Company.

 

(c)    Board means the Board of Directors of the Company.

 

(d)    Capped Parachute Payments means the largest amount of Parachute Payments that may be paid without liability for any excise tax under Code section 4999.

 

(e)    Cause means (i) willful, deliberate and continued failure by Executive (other than for reason of mental or physical illness) to perform his duties as established by the Board, or fraud or dishonesty in connection with such duties, in either case, if such conduct has a materially detrimental effect on the business operations of the Company; (ii) a material breach by Executive of his fiduciary duties of loyalty or care to the Company; (iii) conviction of any crime (or upon entering a plea of guilty or nolo contendere to a charge of any crime) constituting a felony; (iv) misappropriation of the Company’s funds or property; or (v) willful, flagrant, deliberate and repeated infractions of material published policies and regulations of the Company of which Executive has actual knowledge.

 

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(f)    Change in Control means (i) a Person is or becomes an Acquiring Person; (ii) holders of the securities of the Company entitled to vote thereon approve any agreement with a Person (or, if such approval is not required by applicable law and is not solicited by the Company, the closing of such an agreement) that involves the transfer of more than fifty percent (50%) of the Company’s and its affiliates’ total assets on a consolidated basis, as reported in the Company’s consolidated financial statements filed with the Securities and Exchange Commission; (iii) holders of the securities of the Company entitled to vote thereon approve a transaction (or, if such approval is not required by applicable law and is not solicited by the Company, the closing of such a transaction) pursuant to which the Company will undergo a merger, consolidation, or statutory share exchange with a company, regardless of whether the Company is intended to be the surviving or resulting entity after the merger, consolidation, or statutory share exchange, other than a transaction that results in the voting securities of the Company carrying the right to vote in elections of persons to the Board outstanding immediately prior to the closing of the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the Company’s voting securities carrying the right to vote in elections of persons to the Board, or such securities of such surviving entity, outstanding immediately after the closing of such transaction; (iv) the Continuing Directors cease for any reason to constitute a majority of the Board; (v) holders of the securities of the Company entitled to vote thereon approve a plan of complete liquidation of the Company or an agreement for the sale or liquidation by the Company or its affiliates of substantially all of the assets of the Company and its affiliates (or, if such approval is not required by applicable law and is not solicited by the Company, the commencement of actions constituting such a plan or the closing of such an agreement); or (vi) the Board adopts a resolution to the effect that, in its judgment, as a consequence of any one or more transactions or events or series of transactions or events, a Change in Control of the Company has effectively occurred.

 

(g)    Continuing Director means any member of the Board, while a member of the Board and (i) who was a member of the Board on the Effective Date or (ii) whose nomination for or election to the Board was recommended or approved by a majority of the Continuing Directors.

 

(h)    Control Affiliate, with respect to any Person, means an affiliate as defined in Rule 12b-2 under the Exchange Act.

 

(i)    Control Change Date means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions or events, the “Control Change Date” is the date of the last of such transactions or events in the series.

 

(j)    Exchange Act means the Securities Exchange Act of 1934, as amended.

 

(k)    Good Reason means Executive’s resignation from the employment of the Company and its affiliates on account of one or more of the following events:

 

 (i)    a material diminution by the Board of the duties, functions and responsibilities of Executive as the Vice President and Secretary of the Company without his consent;

 

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(ii)    the failure of the Company to permit Executive to exercise such responsibilities as are consistent with Executive’s positions or are of a nature as are usually associated with such offices of a corporation engaged in substantially the same business as the Company;

 

(iii)    the Company’s causing Executive to relocate his employment more than fifty (50) miles from Mt. Airy, North Carolina, or his place of primary residence as of the Effective Date of this Agreement, without the consent of Executive;

 

(iv)    the failure of the Company to make a payment to Executive when due or, if later, within 10 days after Executive has made demand for such payment;

 

(v)    the Company’s material reduction of Executive’s (A) annual base salary, as in effect from time to time after the Effective Date; (B) bonus, such that the aggregate threshold, target, or maximum bonus projected for Executive for a fiscal year is lower than the aggregate threshold, target, or maximum bonus, respectively, projected for Executive for the immediately preceding fiscal year; or (C) employee welfare, fringe or pension benefits, other than reductions determined to be necessary to comply with the Employee Retirement Income Security Act of 1974, as amended, or to retain the tax-qualified or tax-favored status of the benefit under the Code, which determination shall be made by the Board in good faith;

 

(vi)    a breach of Section 10 of this Agreement;

 

(vii)    the Company or the Board directs Executive to engage in unlawful or unethical conduct or conduct contrary to the Company’s good business practices.

 

(l)    Net After Tax Amount means the amount of any Parachute Payments or Capped Parachute Payments, as applicable, net of taxes imposed under Code sections 1, 3101(b) and 4999 and any state or local income taxes applicable as in effect on the date of the payment under Section 5 of this Agreement. The determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing taxes on income of the same character as the Parachute Payments or Capped Parachute Payments, as applicable, in effect for the year for which the determination is made.

 

(m)    Person means any human being, firm, corporation, partnership, or other entity. “Person” also includes any human being, firm, corporation, partnership, or other entity as defined in sections 13(d)(3) and 14(d)(2) of the Exchange Act. The term “Person” does not include the Company, or any Related Entity, and the term Person does not include any employee-benefit plan maintained by the Company or any Related Entity, and any person or entity organized, appointed, or established by the Company or any Related Entity for or pursuant to the terms of any such employee-benefit plan, unless the Board determines that such an employee-benefit plan or such person or entity is a “Person”.

 

(n)    Related Entity means any entity that is part of a controlled group of corporations or is under common control with the Company within the meaning of section 1563(a), 414(b) or 414(c) of the Code.

 

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(o)    Separation from Service  means the termination of the Executive’s employment with the Company and all Related Entities; provided, however, that the Executive will not be considered as having had a Separation from Service if (i) the Executive continues to provide services to the Company or any Related Entity as an employee at an annual rate that is at least equal to 20 percent of the services rendered, on average, during the immediately preceding three full calendar years of employment (or, if employed less than three years, such lesser period) and the annual remuneration for such services is at least equal to 20 percent of the average annual remuneration earned during the final three full calendar years of employment (or if less, such lesser period), (ii) the Executive continues to provide services to the Company or any Related Entity in a capacity other than as an employee and such services are provided at an annual rate that is 50 percent or more of the services rendered, on average, during the immediately preceding three full calendar years of employment (or, if employed less than three years, such lesser period) and the annual remuneration for such services is 50 percent or more of the annual remuneration earned during the final three full calendar years of employment (or, if less, such lesser period) or (iii) the Executive is on military leave, sick leave or other bona fide leave of absence (such as temporary employment by the government) so long as the period of such leave does not exceed six months, or if longer, so long as the Executive’s right to reemployment with the Company or any Related Entity is provided either by statute or by contract. If the period of leave exceeds six months and the Executive’s right to reemployment is not provided either by statute or by contract, the Separation from Service will be deemed to occur on the first date immediately following such six-month period. For purposes of this Section 6(o), the annual rate of providing services shall be determined based upon the measurement used to determine the Executive’s base compensation. This definition of Separation from Service is intended to comply with the definition of “separation from service” as used in Section 409A(a)(2)(A)(i) of the Code and shall be interpreted accordingly.

 

(p)    Specified Employee generally means an employee who is (i) an officer of the Company or a Related Entity having annual compensation greater than $140,000 (with certain adjustments for inflation after 2006), (ii) a five-percent owner of the Company or a Related Entity or (iii) a one-percent owner of the Company or a Related Entity having annual compensation greater than $150,000. This definition is intended to comply with the “specified employee” rules of Section 409A(a)(2)(B)(i) of the Code and shall be interpreted accordingly.

 

7.    Attorneys’ Fees. Executive shall be entitled to reimbursement by the Company for any attorneys’ fees and any other reasonable expenses that Executive incurs in enforcing or protecting his rights under this Agreement. Subject to Section 19, such reimbursement shall be made within thirty days following final resolution of the dispute or occurrence giving rise to such fees and expenses, regardless of whether Executive is deemed the prevailing party in the resolution of the dispute or occurrence.

 

8.    No Assignment. Except as required by applicable law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law and any attempt to effect any such action shall be null, void and of no effect.

 

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9.    Governing Law. This Agreement shall be governed by the laws of the State of North Carolina other than its choice of law provisions to the extent that they would require the application of the laws of a State other than the State of North Carolina.

 

10.    Successors. The Company shall require any successor to all or substantially all of the Company’s respective business or assets (whether direct or indirect, by purchase, merger, consolidation or otherwise), to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle Executive to resign from the employ of the Company and to receive the Termination Benefits and other benefits under this Agreement in the same amount and on the same terms as Executive would be entitled to hereunder if he terminated his employment for Good Reason following a Change in Control. References in this Agreement to the “Company” include the Company as herein before defined and any successor to the Company’s business, assets or both which assumes and agrees to perform this Agreement by operation of law or otherwise.

 

11.    Binding Agreement. This Agreement shall inure to the benefit of and be enforceable by Executive and his personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive dies while any amount remains payable to him hereunder, all such amounts shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there is none, to Executive’s estate.

 

12.    No Employment Rights. Nothing in this Agreement confers on Executive any right to continuance of employment by the Company or any Related Entity. Nothing in this Agreement interferes with the right of the Company or a Related Entity to terminate Executive’s employment at any time for any reason whatsoever, with or without Cause, subject to the requirements of this Agreement. Nothing in this Agreement restricts the right of Executive to terminate his employment with the Company and Related Entities at any time for any reason whatsoever, with or without Good Reason.

 

13.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together constitute one and the same instrument.

 

14.    Entire Agreement. This Agreement expresses the whole and entire agreement between the parties with reference to the payment of the Termination Benefits and supersedes and replaces any prior agreement, understanding or arrangement (whether oral or written) by or between the Company and Executive with respect to the payment of the Termination Benefits.

 

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15.    Notices. All notices, requests and other communications to any party under this Agreement shall be in writing and shall be given to such party at its address set forth below or such other address as such party may hereafter specify for the purpose by notice to the other party:

 

	 	
			If to Executive:

				
			James R. York

			255 W. Oak Street

			Mount Airy, NC 27030

			
	 	 	 
	 	
			If to the Company:

				
			Insteel Industries Inc.

			1373 Boggs Drive

			Mt. Airy, North Carolina 27030

			

 

Each notice, request or other communication shall be effective if (i) given by mail, seventy-two hours after such communication is deposited in the mails with first class postage prepaid, address as aforesaid or (ii) if given by any other means, when delivered at the address specified in this Section 15.

 

16.    Modification of Agreement. No waiver or modification of this Agreement shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence at any proceeding, arbitration or litigation between the parties unless such waiver or modification is in writing, and duly executed. The parties agree that this Section 16 may not be waived except as herein set forth.

 

17.    Recitals. The Recitals to this Agreement are incorporated herein and shall constitute an integral part of this Agreement.

 

18.    Section 409A. This Agreement is intended to comply with the applicable requirements of Section 409A of the Code and shall be construed and interpreted in accordance therewith. Notwithstanding the preceding, the Company and its Related Entities shall not be liable to the Executive or any other person if the Internal Revenue Service or any court or other authority having jurisdiction over such matter determines for any reason that any amount under this Agreement is subject to taxes, penalties or interest as a result of failing to comply with Section 409A of the Code.

 

19.    Delay of Payment. Notwithstanding any other provision of this Agreement, if the Executive is a Specified Employee, to the extent necessary to comply with Section 409A of the Code, no payments or benefits (which are not otherwise exempt) may be paid or provided hereunder before the date which is six months after the Executive’s Separation from Service or, if earlier, his death. The amounts which would have otherwise been required to be paid, and the benefits which would have otherwise been provided, during such six months or, if earlier, until Executive’s death, shall be paid to Executive in one lump sum cash payment as soon as administratively practical after the date which is six months after Executive’s Separation from Service or, if earlier, after the Executive’s death. Any other payments scheduled to be made or benefits scheduled to be provided after such period shall be made or provided at the times otherwise designated in this Agreement disregarding the delay of payment for the payments and benefits described in this Section 19.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

 

	 	
			James R. York

			
	 	 	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
			INSTEEL INDUSTRIES INC.

			
	 	 	 	 
	 	 	 	 
	 	By:	 
	 	 	Name	H.O. Woltz III
	 	 	Title	President & CEO

 

10EX-10.1

 Exhibit 10.1 

AKILI INTERACTIVE LABS, INC. 

AMENDED AND RESTATED EXECUTIVE SEVERANCE PLAN 

1. Introduction. This document, effective August 19, 2022, serves as the Plan document for the Severance Benefits provided under
the Akili Interactive Labs, Inc. Amended and Restated Executive Severance Plan (the “Plan”). It contains information that will help Covered Employees understand their Severance Benefits. The Company encourages all Covered Employees
to read through the Plan carefully. Note that initially capitalized words and phrases used throughout this document are generally defined in Section 5. If you have any questions regarding the Plan, contact Human Resources. 

2. Establishment of Plan. Akili Interactive Labs, Inc. (the “Company”) hereby establishes the Plan for the purpose of
providing Severance Benefits to the individuals and subject to the terms and conditions set forth in this Plan. The executives and officers of Akili, Inc., including any executives and officers of any subsidiary of the Company, covered by this Plan
(each such executive or officer, a “Covered Employee” and collectively, the “Covered Employees”) will be those executives and officers holding the titles identified by the Administrator and set forth on Exhibit
1 attached hereto. The Plan is in effect for Covered Employees who experience a Covered Termination after the Effective Date. This Plan supersedes any and all (i) severance plans or separation policies or provisions applying to a Covered
Employee that may have been in effect before the Effective Date and (ii) provisions of any agreement between a Covered Employee and the Company that provides for severance pay or benefits. 

3. Purpose. The purpose of the Plan is to establish the conditions under which Covered Employees will receive the Severance Benefits
(defined below) if employment with the Company (or its successor, following a Change in Control) terminates under the circumstances specified herein. 

4. Coverage. A Covered Employee will be eligible to receive the Severance Benefits under the Plan if such Covered Employee experiences
a Covered Termination. In order to receive the Severance Benefits under the Plan, Covered Employees must meet the eligibility requirements, including with respect to a Separation Agreement and Release (as defined below) and other requirements as
provided herein. 
 5. Definitions. For purposes of this Plan: 

A. “Accounting Firm” shall mean a nationally recognized accounting firm selected by the Company. 

B. “Administrator” shall mean the Board or a committee thereof designated by the Board. 

C. “Applicable Bonus Multiple” shall mean, (i) 1.5x, in the case of the Company’s Chief Executive Officer, (ii) 1.5x, in
the case of a Covered Employee who is the President and Chief Operating Officer, (iii) 1.00x, in the case of a Covered Employee who is a C-level executive (other than the Company’s Chief Executive Officer
or President and Chief Operating Officer) or at the Senior Vice President level and (iii) 0.75x in the case of a Covered Employee at the Vice President level. 

 D. “Applicable Severance Period” shall mean, in the event of a Covered
Termination that occurs at any time other than the Change in Control Period, the period set forth in Table I and, in the event of a Covered Termination that occurs within the Change in Control Period, the period set forth in Table II. 

 

			
	TABLE I	  	
		
	 JOB TITLE OF
COVERED EMPLOYEE
	  	 SEVERANCE
PERIOD

	Chief Executive Officer	  	Twelve (12) months
	President and Chief Operating Officer	  	Twelve (12) months
	C-Level Executive (other than CEO and President and Chief Operating Officer) Senior Vice President	  	Nine (9) months
	Vice President	  	Six (6) months
		
	TABLE II	  	
		
	 JOB TITLE OF
COVERED EMPLOYEE
	  	 SEVERANCE
PERIOD

	Chief Executive Officer	  	Eighteen (18) months
	President and Chief Operating Officer	  	Eighteen (18) months
	C-Level Executive (other than CEO and President and Chief Operating Officer) Senior Vice President	  	Twelve (12) months
	Vice President	  	Nine (9) months

 E. “Base Salary” shall mean, for any Covered Employee, such Covered Employee’s
annualized base salary as in effect immediately before a Covered Termination (or base salary as in effect immediately prior to the Change in Control, if greater), exclusive of any bonuses, overtime pay, shift differentials, “adders,” any
other form of premium pay, or other forms of compensation. 
 F. “Board” shall mean the Board of Directors of Akili, Inc.

 G. “Cause” shall mean, as determined by the Board (excluding the Covered Employee, if such Covered Employee is then a
member of the Board) based on the information then known to it, that one or more of the following has occurred: (i) the Covered Employee’s arrest for or conviction of a crime; or (ii) the Covered Employee’s material breach of any
employment agreement or other obligation to the Company, including without limitation a breach by the Covered Employee of the Company’s written employment policies; or (iii) the Covered Employee’s willful failure or refusal to accept,
acknowledge or carry out the Company’s lawful and reasonable written direction; or (iv) the Covered Employee’s conduct which is unlawful, fraudulent, dishonest, creates a conflict of interest with the Company, causes damage to the
Company or interferes with the Company’s business operations. 

  
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 H. “Change in Control” shall mean a Sale Event, as defined in the Akili,
Inc. 2022 Stock Option and Incentive Plan, as amended from time to time. 
 I. “Change in Control Period” shall mean the 12-month period immediately following the occurrence of the first event constituting a Change in Control; provided, however, that the “Change in Control Period” applicable to the Chief Executive Officer
and the President and Chief Operating Officer will also include the 3-month period immediately preceding the occurrence of the first event constituting a Change in Control. 

J. “Code” shall mean the Internal Revenue Code of 1986, as amended. 

K. “Covered Termination” shall mean a termination of the Covered Employee’s employment by the Company (or any successor
thereto following a Change in Control) without Cause or by the Covered Employee for Good Reason. Notwithstanding the foregoing, a Covered Employee’s employment shall not be deemed to have been terminated solely as a result of the Covered
Employee becoming an employee of any subsidiary of the Company or any direct or indirect successor to the business or assets of the Company, nor shall any intercompany transfer be deemed a termination of the employment relationship unless otherwise
specified at the time of transfer. 
 L. “Date of Termination” shall mean the date that a Covered Employee’s
employment with the Company (or any successor) ends. 
 M. “Effective Date” shall mean August 19, 2022. 

N. “Good Reason” shall mean that the Covered Employee has complied with the “Good Reason Process” (hereinafter
defined) following the occurrence of any of the following events without the Covered Employee’s express consent: (i) a material diminution in the Covered Employee’s responsibilities, authority or duties; (ii) a material
diminution in the Covered Employee’s Base Salary except for across-the-board salary reductions based on the Company’s financial performance similarly affecting
all or substantially all senior management employees of the Company; (iii) a material change in the geographic location at which the Covered Employee provides services to the Company; or (iv) the material breach of this Agreement by the
Company. 
 O. “Good Reason Process” shall mean that: (i) the Covered Employee reasonably determines in good faith
that a “Good Reason” condition has occurred; (ii) the Covered Employee notifies the Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the
Covered Employee cooperates in good faith with the Company’s efforts, for a period not more than 30 days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good
Reason condition continues to exist after the Cure Period; and (v) the Covered Employee terminates his employment within 60 days after the end of the Cure Period. If the Company cures the Good Reason condition during the Cure Period, Good
Reason shall be deemed not to have occurred. 

  
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 P. “Proprietary Information” means all information, whether or not in
writing, concerning the Company’s business, technology, business relationships or financial affairs that the Company has not released to the general public. All tangible embodiments of Proprietary Information are and will be the exclusive
property of the Company. By way of illustration, Proprietary Information may include information or material that has not been made generally available to the public, such as: (a) corporate information, including plans, strategies,
methods, policies, resolutions, negotiations or litigation; (b) marketing information, including strategies, methods, customer or business partner identities or other information about customers, business partners, prospect identities or
other information about prospects, or market analyses or projections; (c) financial information, including cost and performance data, debt arrangements, equity structure, investors and holdings, purchasing and sales data and price lists;
(d) operational, technological, and scientific information, including plans, specifications, manuals, forms, templates, software, pre-clinical and clinical testing data and strategies, research and
development strategies, designs, methods, procedures, formulae, data, reports, discoveries, inventions, improvements, concepts, ideas, and other developments, know-how and trade secrets; and
(e) personnel information, including personnel lists, reporting or organizational structure, resumes, personnel data, performance evaluations and termination arrangements or documents. Proprietary Information also includes information
received in confidence by the Company from its customers, suppliers, business partners or other third parties. 
 Q. “Restrictive
Covenants Agreement” shall mean, as applicable to each Covered Employee, the Employee Invention and Non-Disclosure Agreement and Non-Competition and Non-Solicitation Agreement, or the Employee Invention and Non-Disclosure Agreement and Non-Solicitation Agreement, between the Covered
Employee and the Company, as either may be amended and/or renamed from time to time. 
 R. “Severance Benefits” shall mean
(i) the benefits set forth in Section 7 if the Covered Termination occurs outside the Change in Control Period, or (ii) the benefits set forth in Section 8 if the Covered Termination occurs within the Change in Control Period. In
no event shall a Covered Employee be eligible for the benefits set forth in both Section 7 and Section 8. 
 S. “Target
Bonus” shall mean for any Covered Employee, such Covered Employee’s target annual incentive compensation as in effect immediately before a Covered Termination (or the target annual incentive compensation as in effect immediately prior
to the Change in Control, if greater). 
 6. Eligibility Requirements. Receipt of any Severance Benefits under the Plan requires that
the Covered Employee: (1) comply with the provisions of any applicable confidentiality, noncompetition, nonsolicitation, and other continuing obligations to the Company, including without limitation, the terms of the Restrictive Covenants
Agreement; and (2) execute and deliver a waiver and release agreement in a form provided by the Company under which the Covered Employee releases and discharges the Company and related persons and entities from and on account of any and all
claims including without limitation any claims 

  
 4 

 
that relate to or arise out of the employment relationship between the Company and the Covered Employee (the “Separation Agreement and Release”). To be eligible for the receipt
of Severance Benefits under the Plan, the Separation Agreement and Release must be executed by the Covered Employee and any applicable revocation period with respect thereto must lapse within the time frame set forth in the Separation Agreement and
Release but in no event to exceed 60 days following the Covered Employee’s termination of employment.  
 Notwithstanding
anything to the contrary in the definition of “Covered Employee,” “Covered Termination” or otherwise in this Plan, the following employees will not be eligible for Severance Benefits hereunder, except to the extent specifically
determined otherwise by the Administrator: (1) an employee who is terminated for Cause; (2) an employee who retires, terminates employment as a result of an inability to perform his or her duties due to physical or mental disability or
dies (provided that, for the avoidance of doubt, an employee who dies or becomes disabled after incurring a Covered Termination shall remain eligible to continue to receive benefits hereunder); (3) an employee who terminates his or her employment
for any reason other than for Good Reason; and (4) an employee who is party to a written employment agreement with the Company that provides for severance benefits upon a termination by the Company or other contractual severance arrangement, in
either event entered into after the Effective Date.  
 7. Severance Benefits Upon a Covered Termination Outside the Change in
Control Period. If the Covered Employee has a Covered Termination outside the Change in Control Period, then, subject to the terms and conditions of the Plan, the Covered Employee shall be entitled to the following severance payments and
benefits: 
 A. the Company shall pay the Covered Employee an amount equal to the Covered Employee’s monthly Base Salary multiplied by
the Applicable Severance Period (the “Severance Amount”), provided in the event the Covered Employee is entitled to any payments pursuant to the Restrictive Covenants Agreement, the Severance Amount received in any calendar year
will be reduced by the amount the Covered Employee is paid in the same such calendar year pursuant to the Restrictive Covenants Agreement (the “Restrictive Covenants Agreement Setoff”); and 

B. if the Covered Employee was participating in the Company’s group health plan immediately prior to the Date of Termination and elects
COBRA health continuation, then the Company shall pay the monthly employer COBRA premium for the same level of group health coverage as in effect for the Covered Employee on the Date of Termination until the earliest of the following: (i) the
expiration of the Applicable Severance Period; (ii) the Covered Employee’s eligibility for group health coverage through other employment; or (iii) the end of the Covered Employee’s eligibility under COBRA for continuation
coverage for health care. Notwithstanding the foregoing, if the Company determines at any time that its payments pursuant to this paragraph may be taxable income to the Covered Employee, it may convert such payments to payroll payments directly to
the Covered Employee on the Company’s regular payroll dates, which shall be subject to tax-related deductions and withholdings. 

  
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 The amounts payable under this Section 7 shall be paid out in substantially equal installments in
accordance with the Company’s payroll practice over the Applicable Severance Period commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in
one calendar year and ends in a second calendar year, the Severance Amount shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment
shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination. Each payment pursuant to this Agreement is intended to constitute a separate payment for
purposes of Treasury Regulation Section 1.409A-2(b)(2). 
 8. Severance Benefits Upon a
Covered Termination Within the Change in Control Period. If the Covered Employee has a Covered Termination within the Change in Control Period, then, subject to the terms and conditions of the Plan, the Covered Employee shall be entitled
to the following severance payments and benefits: 
 A. the Company shall pay the Covered Employee a lump sum in cash in an amount equal to
the sum of (A) the amount of the Covered Employee’s monthly Base Salary (or the Covered Employee’s Base Salary in effect immediately prior to the Change in Control, if higher) multiplied by the Applicable Severance Period plus
(B) the Applicable Bonus Multiple multiplied by the Covered Employee’s Target Bonus (the “Change in Control Payment”), provided the Change in Control Payment shall be reduced by the amount of the Restrictive Covenants
Agreement Setoff, if applicable, paid or to be paid in the same calendar year; and 
 B. notwithstanding anything to the contrary in any
applicable option agreement or other stock-based award agreement, all time-based stock options and other time-based stock-based awards held by the Covered Employee (the “Equity Awards”) shall immediately accelerate and become fully
exercisable or nonforfeitable as of the later of (i) the Date of Termination or (ii) the Effective Date of the Separation Agreement and Release (the “Accelerated Vesting Date”); provided that any termination or forfeiture
of the unvested portion of such Equity Awards that would otherwise occur on the Date of Termination in the absence of this Agreement will be delayed until the Effective Date of the Separation Agreement and Release and will only occur if the vesting
pursuant to this subsection does not occur due to the absence of the Separation Agreement and Release becoming fully effective within the time period set forth therein. Notwithstanding the foregoing, no additional vesting of the Equity Awards shall
occur during the period between the Covered Employee’s Date of Termination and the Accelerated Vesting Date; and 
 C. if the Covered
Employee was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay the monthly employer COBRA premium for the same level of group health
coverage as in effect for the Covered Employee on the Date of Termination until the earliest of the following: (i) the expiration of the Applicable Severance Period; (ii) the Covered Employee’s eligibility for group health coverage
through other employment; or (iii) the end of the Covered Employee’s eligibility under COBRA for continuation coverage for health care. Notwithstanding the foregoing, if the Company determines at any time that its payments pursuant to this
paragraph may be taxable income to the Covered Employee, it may convert such payments to payroll payments directly to the Covered Employee on the Company’s regular payroll dates, which shall be subject to
tax-related deductions and withholdings. 

  
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 The amounts payable under this Section 8 shall be paid or commence to be paid within 60 days after the
Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payment shall be paid or commence to be paid in the second calendar year
by the last day of such 60-day period. 
 9. Additional Limitation. 

A. Anything in this Plan to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the
Company to or for the benefit of the Covered Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Aggregate Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the
Aggregate Payments shall be $1.00 less than the amount at which the Covered Employee becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Covered Employee
receiving a higher After Tax Amount (as defined below) than the Covered Employee would receive if the Aggregate Payments were not subject to such reduction. In the event of such reduction, the Aggregate Payments shall be reduced in the following
order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (i) cash payments not
subject to Section 409A of the Code; (ii) cash payments subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits; provided
that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or
(c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). 

B. For purposes of this Section 9, the “After Tax Amount” means the amount of the Aggregate Payments less all federal,
state, and local income, excise and employment taxes imposed on the Covered Employee as a result of the Covered Employee’s receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, the Covered Employee shall be deemed
to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of
individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes (if any) which could be obtained from deduction of such state and local taxes. 

C. The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 9(a) shall be made by the
Accounting Firm, which shall provide detailed supporting calculations both to the Company and the Covered Employee within fifteen (15) business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested
by the Company or the Covered Employee. Any determination by the Accounting Firm shall be binding upon the Company and the Covered Employee. 

  
 7 

 10. Death. If a Covered Employee dies after the Date of Termination, but before all
payments or benefits to which such Covered Employee is entitled pursuant to the Plan have been paid or provided, any remaining payments and benefits will be made to any beneficiary designated by the Covered Employee prior to or in connection with
such Covered Employee’s Covered Termination or, if no such beneficiary has been designated, to the Covered Employee’s estate. 

11. Withholding. The Company may withhold from any payment or benefit under the Plan (a) any federal, state, or local income or
payroll taxes required by law to be withheld with respect to such payment and (b) such other amounts as appropriately may be withheld under the Company’s payroll policies and procedures from time to time in effect. Nothing in this Plan
shall be construed to require the Company to make any payments to compensate the Covered Employee for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit. 

12. Plan Administration. 

A. Administrator. The Administrator shall be the Board or a committee thereof designated by the Board; provided, however, that the
Administrator may in its sole discretion appoint a new Administrator to administer the Plan at any time. 
 B. Decisions, Powers and
Duties. The general administration of the Plan and the responsibility for carrying out its provisions shall be vested in the Administrator. The Administrator shall have such powers and authority as are necessary to discharge such duties and
responsibilities which also include, but are not limited to, interpretation and construction of the Plan, the determination of all questions of fact, including, without limitation, eligibility, participation and benefits, the resolution of any
ambiguities and all other related or incidental matters, and such duties and powers of the Plan administration which are not assumed from time to time by any other appropriate entity, individual or institution. The Administrator may adopt rules and
regulations of uniform applicability in its interpretation and implementation of the Plan. 
 The Administrator shall discharge its duties
and responsibilities and exercise its powers and authority in its sole discretion and in accordance with the terms of the controlling legal documents and applicable law, and its actions and decisions shall be binding on any employee, and
employee’s spouse or other dependent or beneficiary and any other interested parties whether or not in being or under a disability. Not in limitation, but in amplification of the foregoing, the Administrator shall have the power and authority
in its discretion to: 
 (i) construe the Plan to determine all questions that shall arise as to interpretations of the
Plan’s provisions; 
 (ii) determine which individuals are and are not Covered Employees, determine the benefits to
which any Covered Employees may be entitled, the eligibility requirements for participation in the Plan and all other matters pertaining to the Plan; 

  
 8 

 (iii) adopt amendments to the Plan which are deemed necessary or desirable
to comply with all applicable laws and regulations, including but not limited to Section 409A of the Code and the guidance thereunder; 

(iv) make all determinations it deems advisable for the administration of the Plan, including the authority and ability to
delegate administrative functions to a third party; 
 (v) decide all disputes arising in connection with the Plan; and 

(vi) otherwise supervise the administration of the Plan. 

All decisions and interpretations of the Administrator shall be conclusive and binding on all persons, including the Company and Covered
Employees. 
 13. Section 409A. 

A. Anything in this Plan to the contrary notwithstanding, if at the time of the Covered Employee’s “separation from service”
within the meaning of Section 409A of the Code, the Company determines that the Covered Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that
the Covered Employee becomes entitled to under this Plan would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of
Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Covered Employee’s separation from service, or
(B) the Covered Employee’s death. 
 B. It is intended that this Plan will be administered in accordance with Section 409A of
the Code. To the extent that any provision of this Plan is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code. 

C. To the extent that any payment or benefit described in this Plan constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Covered Employee’s termination of employment, then such payments or benefits shall be payable only upon the
Covered Employee’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h). 
 D. The Company makes no representation or warranty and shall have no
liability to the Covered Employee or any other person if any provisions of this Plan are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such
Section. 

  
 9 

 14. Indemnification. To the extent permitted by law, all employees, officers,
directors, agents and representatives of the Company shall be indemnified by the Company and held harmless against any claims and the expenses of defending against such claims, resulting from any action or conduct relating to the administration of
the Plan, whether as a member of the Administrator or otherwise, except to the extent that such claims arise from gross negligence, willful neglect, or willful misconduct. 

15. Plan Not an Employment Contract. The Plan is not a contract between the Company and any employee, nor is it a condition of
employment of any employee. Nothing contained in the Plan gives, or is intended to give, any employee the right to be retained in the service of the Company, or to interfere with the right of the Company to discharge or terminate the employment of
any employee at any time and for any reason. No employee shall have the right or claim to benefits beyond those expressly provided in this Plan, if any. All rights and claims are limited as set forth in the Plan. 

16. Severability. In case any one or more of the provisions of this Plan (or part thereof) shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions hereof, and this Plan shall be construed as if such invalid, illegal or unenforceable provisions (or part thereof) never had been
contained herein. 
 17. Unfunded Plan. This Plan shall be unfunded and shall not create (or be construed to create) a trust or
separate fund. Likewise, the Plan shall not establish any fiduciary relationship between the Company or any of its subsidiaries or affiliates and any Covered Employee. 

18. Relief. If a Covered Employee violates the provisions of the Restrictive Covenants Agreement, (i) the Covered Employee will
not be eligible for Severance Benefits, and (ii) to the extent any Severance Benefits have already been provided to the Covered Employee pursuant to this Plan, the Company shall have the right to terminate the Severance Benefits and demand
immediate repayment of any amounts of the Severance Benefits previously paid to the Covered Employee or for the Covered Employee’s benefit under the Separation Agreement and Release. Any such actions in the event of a violation by the Covered
Employee will not affect the Covered Employee’s applicable continuing obligations to the Company pursuant to the Restrictive Covenants Agreement, the Separation Agreement and Release or otherwise. 

19. Non-Assignability by Covered Employee; Assignability by Company. No right or interest of
any Covered Employee in the Plan shall be assignable or transferable in whole or in part either directly or by operation of law or otherwise, including, but not limited to, execution, levy, garnishment, attachment, pledge or bankruptcy. The Company
may assign or otherwise transfer this Plan to any other person or entity without any Covered Employee’s consent. 
 20. Integration
With Other Pay or Benefits Requirements. The Severance Benefits provided for in the Plan are the maximum benefits that the Company will pay to Covered Employees on a Covered Termination. To the extent that the Company owes any

  
 10 

 
amounts in the nature of severance benefits to any Covered Employee under any other program, policy or plan of the Company that is not otherwise superseded by this Plan, or to the extent that any
federal, state or local law, including, without limitation, so-called “plant closing” laws, requires the Company to give advance notice or make a payment of any kind to an employee because of that
Covered Employee’s involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, or similar event, the benefits provided under this Plan or the other arrangement shall either be reduced or eliminated
to avoid any duplication of payment. The Company intends for the benefits provided under this Plan to partially or fully satisfy any and all statutory obligations that may arise out of a Covered Employee’s involuntary termination for the
foregoing reasons and the Company shall so construe and implement the terms of the Plan. 
 21. Amendment or Termination. The Board
may amend, modify, or terminate the Plan at any time in its sole discretion; provided, however, that any such amendment, modification or termination that may adversely affect the rights of any Covered Employee shall not be made without the consent
of such person. 
 22. Governing Law. The Plan and the rights of all persons hereunder shall be construed in accordance with and
under applicable provisions of the Commonwealth of Massachusetts (without regard to conflict of laws provisions). This Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 

23. Obligations of Successors. In addition to any obligations imposed by law upon any successor to the Company, any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company shall expressly assume and agree to perform this Plan in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place. 
 Adopted effective upon the closing of the transactions contemplated by that
certain Agreement and Plan of Merger, dated as of January 26, 2022, by and among Akili Interactive Labs, Inc., Social Capital Suvretta Holdings Corp. I, and the other parties party thereto. 

  
 11 

 EXHIBIT 1 to AKILI INTERACTIVE LABS, INC. 

EXECUTIVE SEVERANCE PLAN 
 Chief
Executive Officer 
 President and Chief Operating Officer 

Chief Financial Officer 
 Chief Medical Officer 

Chief Creative Officer 
 Chief Legal Officer 

Chief Product Officer 
 Senior Vice President 

Vice President

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