Evergreen. The Equity Plan shall contain an annual evergreen refresh provision, pursuant to which a refresh shall occur on a calendar year basis, on the first day of each calendar year, with the first refresh to occur on January 1, 2015. Pursuant to Paragraph 3(b) of the Equity Plan, subject to incentive stock option rules and IRS requirements, the refresh shall provide for the reservation of an additional number of shares equal to the lesser of (x) 5% of the Common Stock outstanding on a post-money basis immediately following the closing of the IPO, which number of shares shall be calculated upon the closing of the IPO and inserted into the Equity Plan; (y) 5% of the number of outstanding shares of Common Stock on the date of the applicable evergreen refresh; or (z) an amount determined by the Ruthigen board of directors.
Appears in 4 contracts
Samples: Separation Agreement (Ruthigen, Inc.), Separation Agreement (Oculus Innovative Sciences, Inc.), Separation Agreement (Ruthigen, Inc.)
