SEPARATION AGREEMENT
This Separation and Release Agreement (“Separation Agreement”) is entered into by and between Xxxxxx Xxxxxxxx (“Executive”) and AgeX Therapeutics, Inc. (the “Company”) and confirms the agreement that has been reached with Executive in connection with Executive’s separation from the Company.
1. Termination of Employment. Executive’s separation shall be effective as of October 15, 2018 (the “Separation Date”) and as of such date Executive shall cease to be employed by the Company and by each and every subsidiary of the Company (each a “Subsidiary) in any capacity. This Agreement constitutes Executive’s resignation on the Separation Date as an employee, officer, and/or director of, and from any other title or position with, the Company and each of the Company’s Subsidiaries. Executive further agrees to execute promptly upon request by the Company any additional documents necessary to effectuate the provisions of this Section 1.
2. Separation Agreement Benefits. Provided that Executive (i) executes this Separation Agreement not later than the twenty-first day after it is furnished to him (and not earlier than the Separation Date), (ii) does not exercise the right of revocation set forth in Section 12, and (iii) otherwise complies in all material respects with all of the terms and conditions of this Separation Agreement, the Company shall pay or provide Executive with the following:
(a) Notwithstanding any contrary provision in any of the Company’s equity plans, or any equity grant agreement (the “Award Document”), all of Executive’s unvested outstanding Company options granted (“Company Equity”) shall fully vest as of the Separation Date.
(b) Executive acknowledges and agrees that any Company Equity that were originally intended to constitute “incentive stock options” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Options”) shall cease to be “incentive stock options” three (3) months after the Separation Date pursuant to the Code; provided, however, that any such Options may cease to be “incentive stock options” sooner as more fully set forth herein in Exhibit A hereto.
Notwithstanding anything to the contrary in the Award Document, subject to (i) Executive’s written execution and return to the Company of the Consent to Amendment of Incentive Stock Options attached hereto as Exhibit A, and (ii) Executive’s continued compliance with Executive’s obligations under this Agreement, the exercise period for the Options shall be extended such that Executive may exercise the vested Options, on or before October 16, 2023; provided that in no event will any of the Options be exercisable after the expiration of their maximum applicable term. As further described in Exhibit A, the extension of the exercise period may affect the tax treatment of the Options. Except as modified by this Agreement, all terms, conditions and limitations applicable to the Options will remain in full force and effect pursuant to the applicable Award Documents.
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3. Accrued Benefits.
(a) Whether or not Executive chooses to sign this Separation Agreement, Executive will be entitled to receive the following accrued benefits:
(i) Unpaid base salary accrued up to the Separation Date;
(ii) A lump-sum payment, less applicable withholdings and deductions, that represents the value of Executive’s accrued unused vacation, if any;
(iii) Vested benefits under any Company retirement, deferred compensation plan or equity plan; and (iv) COBRA coverage continuation rights under any Company health care plan, in accordance with the terms of such plans and applicable law.
(b) Executive will also be entitled to any rights to contribution, advancement of expenses, defense or indemnification Executive may have under the Company’s Certificate of Incorporation or Bylaws, as applicable, or as provided under applicable law.
4. No Other Payments or Benefits. Executive acknowledges and agrees that, other than the payments and benefits expressly set forth in this Separation Agreement, Executive has received all compensation to which Executive is entitled from the Company, and Executive is not entitled to any other payments or benefits from the Company. Other than as set forth in this Separation Agreement, after the Separation Date, Executive shall not receive any base salary, annual bonus, short term or long-term incentive award, welfare, retirement, perquisite, fringe benefit or other benefit plan coverage or coverage under any other practice, policy or program as may be in effect from time to time, applying to senior officers or other employees of the Company.
5. Agreement Not to Solicit Employees. Executive hereby agrees that until the first anniversary of the Separation Date, Executive shall not, for himself or any third party, directly or indirectly, employ or solicit for employment or recommend for employment any person employed by the Company or any Subsidiary.
6. Non-Disparagement. Executive agrees that Executive will not, and will not encourage or induce others to, make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning any of the Company, its Subsidiaries, affiliates or shareholders or any of their respective past, present or directors, officers, employees, agents, shareholders or members or any of their respective successors and assigns (collectively, the “Company Entities and Persons”). The Company will not issue a press release or similar public announcement regarding the termination of Executive’s employment; provided, however that the Company may include such disclosure of the termination of Executive’s employment and terms of this Separation Agreement in one or more proxy statements, current, quarterly, or annual reports, and registration statements filed with the Securities and Exchange Commission (the “SEC”), as may be required by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or SEC rules and regulations thereunder. If the Company receives any external inquiry regarding Executive’s employment history at the Company, the Company will respond to the inquiry by providing Executive’s dates of employment, Executive’s job title. Nothing in this Separation Agreement is intended to or shall prevent any person from providing, or limiting testimony in response to a valid subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law. Executive agrees that Executive will notify the Company in writing as promptly as practicable after receiving any request for testimony or information in response to a subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law, regarding the anticipated testimony or information to be provided and at least ten (10) days prior to providing such testimony or information (or, if such notice is not possible under the circumstances, with as much prior notice as is possible).
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7. Cooperation. Beginning on the Separation Date and for twelve (12) months thereafter, Executive agrees that Executive will reasonably cooperate with and assist the Company, its subsidiaries and affiliates, and any of their respective officers, directors, shareholders or employees: (A) concerning requests for information about the business of the Company or its subsidiaries or affiliates or Executive’s involvement and participation therein (including but not limited to requests and subpoenas to provide information or testimony); (B) in connection with any investigation or review by the Company or any federal, state or local regulatory, quasi-regulatory or self-governing authority as any such investigation or review relates to events or occurrences that transpired while Executive were employed by the Company; and (C) with respect to transition and succession matters. Executive’s cooperation shall include, but not be limited to (taking into account Executive’s personal and professional obligations, including those to any new employer or entity to which Executive provide services), being available to meet and speak with officers or employees of the Company and/or the Company’s counsel at reasonable times and locations, executing accurate and truthful documents and taking such other actions as may reasonably be requested by the Company and/or the Company’s counsel to effectuate the foregoing. Executive shall be entitled to reimbursement from the Company, upon receipt by the Company of suitable documentation, for reasonable and necessary travel and other expenses which Executive may incur on such matters at the specific request of the Company and as approved by the Company in advance and in accordance with its policies and procedures established from time to time.
8. Company Property; Certain Transition Matters; Confidentiality.
(a) On or prior to the Separation Date, Executive will return to the Company and all Subsidiaries all equipment and other property belonging to the Company and Subsidiaries, and all originals and copies or Confidential Information (in any and all media and formats, and including any document or other item containing Confidential Information) in Executive’s possession or control, and all of the following (in any and all media and formats, and whether or not constituting or containing Confidential Information) in Executive’s possession or control: (i) lists and sources of customers; (ii) proposals or drafts of proposals for any research grant, research or development project or program, marketing plan, licensing arrangement, or other arrangement with any third party; (iii) reports, job or laboratory notes, specifications, and drawings pertaining to the research, development, products, patents, and technology of the Company and any Subsidiaries; and (iv) any and all inventions or intellectual property developed by Executive during the course of employment. Confidential Information means all information and ideas, in any form, relating in any manner to matters such as: products; formulas; technology and know-how; inventions; clinical trial plans and data; business plans; marketing plans; the identity, expertise, and compensation of employees and contractors; systems, procedures, and manuals; customers; suppliers; joint venture partners; research collaborators; licensees; and financial information. Confidential Information also shall include any information of any kind, whether belonging to the Company, a Subsidiary, or any third party, that the Company or a Subsidiary has agreed to keep secret or confidential under the terms of any agreement with any third party. Confidential Information does not include: (i) information that is or becomes publicly known through lawful means other than unauthorized disclosure by Executive; (ii) information that was rightfully in Executive’s possession prior to Executive’s employment with the Company and was not assigned to the Company or a Subsidiary or was not disclosed to Executive in Executive’s capacity as a director or other fiduciary of the Company or a Subsidiary; or (iii) information disclosed to Executive, after the termination of Executive’s employment by the Company, without a confidential restriction by a third party who rightfully possesses the information and did not obtain it, either directly or indirectly, from the Company or a Subsidiary, and who is not subject to an obligation to keep such information confidential for the benefit of the Company, a Subsidiary, or any third party with whom the Company or a Subsidiary has a contractual relationship.
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(b) From and after the Separation Date, Executive will not represent (or purport to represent) the Company or any of its affiliates in any capacity to any person or entity, or enter into (or purport to enter into) any transactions, agreements or understandings on behalf of the Company or any of its affiliates with any person or entity.
(c) Executive understands and agrees that all Confidential Information shall be kept confidential by Executive both during and after Executive’s employment by the Company or any Subsidiary. Executive further agrees that Executive will not, without the prior written approval by the Company or a Subsidiary, disclose any Confidential Information, or use any Confidential Information in any way, either during the term of Executive’s employment or at any time thereafter, except as has been required by the Company or a Subsidiary in the course of Executive’s employment.
(d) Notwithstanding the foregoing, in accordance with the Defend Trade Secrets Act of 2016, Executive is hereby notified that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the Company’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order.
9. Taxes. The parties acknowledge and agree that: the form and timing of the Separation Agreement Payments and Benefits to be provided pursuant to this Agreement are intended to be exempt from or to comply with requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations thereunder (“Section 409A”), including the requirement for a six-month suspension on payments to “specified employees” as defined in Section 409A that are not otherwise permitted to be paid within the six-month suspension period. Notwithstanding the foregoing, it is also agreed that Executive has had the opportunity to seek the advice of independent tax counsel with respect to the potential application of Section 409A to the Separation Agreement, and is not relying upon the advice of the Company or any person affiliated with the Company with respect thereto. In no event shall the Company or any person affiliated with the Company have any liability to Executive with respect to any adverse tax consequences, under Section 409A or otherwise, related to the payment of the Separation Agreement payments and benefits.
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10. Release and Covenant Not to Xxx.
(a) Executive agrees that, in consideration of this Separation Agreement, Executive hereby waives, releases and forever discharges, to the extent permitted by applicable law, any and all claims, complaints, promises, agreements, controversies, liens, demands, actions, causes of action, obligations, suits, disputes, judgments, rights, debts, bonds, bills, covenants, contracts, variances, trespasses, executions, damages and liabilities of any nature whatsoever (collectively “Claims”) which Executive ever had, now has or may have against the (i) Company, (ii) the Company’s past and present Subsidiaries, affiliates and shareholders, and (iii) the past and present shareholders, members, directors, officers, agents, employees, attorneys, insurers, predecessors, various benefits committees, successors and assigns, heirs, executors and personal and legal representatives of the Company and the Company’s Subsidiaries, affiliates and shareholders ((i), (ii) and (iii), collectively, the “Released Parties”); based on or relating to any act, event or omission occurring before Executive executes this Separation Agreement arising out of, during or relating to Executive’s employment or services with the Company or the cessation of such employment or services, except for claims relating to the enforcement of the Company’s obligations under this Separation Agreement or as provided below; provided, however, that the Released Parties shall not include BioTime, Inc. or any subsidiary or affiliate of BioTime, Inc. other than the Company and the Company’s Subsidiaries. This waiver and release includes, but is not limited to, any claims which could be asserted now or in the future, under: common law, including, but not limited to, breach of express or implied duties, wrongful termination, retaliation, defamation, or violation of public policy; any policies, practices, or procedures of the Company; any federal or state statutes or regulations including, but not limited to, Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1866 and 1871, the Age Discrimination in Employment Act (“ADEA”), as amended, 29 U.S.C. § 621 et seq., the Americans With Disabilities Act, 42 U.S.C. §12101 et seq., the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 41001 et seq. (excluding those rights relating exclusively to employee pension benefits as governed by ERISA), the Family and Medical Leave Act, 29 U.S.C. §2601 et. seq., the California Fair Employment and Housing Act, the California Family Rights Act, the California Labor Code; any contract of employment, express or implied; and any provision of any other law, common or statutory, of the United States, New York, or any applicable state. For the purpose of implementing a full and complete release, Executive understands and agrees that this Separation Agreement is intended to waive and release all claims, if any, which Executive may have and which Executive may not now know or suspect to exist in Executive’s favor against any of the Released Parties and this Separation Agreement extinguishes those claims.
Without limiting the generality of the foregoing, Executive expressly waives any and all rights under California Civil Code § 1542 which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
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(b) By signing this Separation Agreement, Executive represents that Executive has not and will not in the future commence any action or proceeding arising out of the Claims described in Section 10(a), and that Executive will not seek or be entitled to any award of legal or equitable relief in any such action or proceeding that may be commenced on Executive’s behalf. The provisions of this Section 10(b) constitute a “covenant not to xxx.” A “covenant not to xxx” is a legal term which means Executive promises not to file a lawsuit in court. It is different from the Release of Claims contained in Section 10(a) above. Besides waiving and releasing Claims covered by Section 10(a), Executive further agrees never to xxx any Released Party in any forum for any reason covered by the release of Claims. Notwithstanding this covenant not to xxx, Executive may bring a Claim against the Company to enforce this Separation Agreement or, to the extent permitted under the law, to challenge the validity of this Separation Agreement under the ADEA. If Executive sues a Released Party in violation of this Separation Agreement, Executive shall be liable to the Released Party for its reasonable attorneys’ fees and other litigation costs incurred in defending against Executive’s suit.
11. Release Exclusions/Additional Rights. Nothing in the Release above or any other part of this Separation Agreement shall: (i) affect any rights of defense or indemnification, or to be held harmless, or any coverage under directors and officers liability insurance or any other insurance or rights or claims of contribution or advancement of expenses that Executive has; (ii) waive any rights or claims that Executive may have to the extent that such rights or claims are based upon events occurring more than seven days after the date Executive executed this Agreement; (iii) waive, release or otherwise discharge any other claim or cause of action that cannot legally be waived; or (iv) interfere with Executive’s right to file a charge or cooperate with, provide information to, or participate in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, or any other federal or state regulatory or law enforcement agency. Executive nonetheless acknowledge and agree that any Claims for personal relief in connection with such a charge or investigation (such as reinstatement or monetary damages) would be and hereby are barred. Executive may, however, receive money from the Securities & Exchange Commission as a reward for providing information to that agency.
12. Time to Consider, Consult With Counsel and Revoke.
(a) The Company is presenting Executive with this Separation Agreement on October 15, 2018 and Executive has until close of business on November 5, 2018 to consider it. Executive acknowledge that Executive has been given at least twenty-one (21) days to consider this Separation Agreement before signing it, and agrees that any changes made to the terms of this Separation Agreement shall not restart the twenty-one (2 1) day period.
(b) Executive acknowledges that Executive has been advised by the Company, in writing, to consult an attorney with respect to this Separation Agreement before signing it. Executive has the right to revoke this Separation Agreement after signing it by written notice to the Company sent by reputable overnight courier or email not more than seven (7) days after the date of Executive’s execution of this Separation Agreement. Notice of revocation should be addressed to AgeX Therapeutics, Inc., 0000 Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, XX 00000, ATTN: CEO or if by email, addressed to xxxxx@xxxxxxx.xxx. If Executive chooses to revoke this Separation Agreement, it shall be null and void and without limiting the generality of the foregoing, Executive shall no longer be entitled to the benefits under Section 2 or any other Section of this Separation Agreement other than the accrued benefits described in Section 3. Executive expressly acknowledges that the benefits described in Section 2 represent valuable benefits to which he has no legal entitlement unless he executes, and does not revoke, this Separation Agreement.
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13. Enforcement. If any provision of this Separation Agreement is held by a court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect; however, the remaining provisions shall be enforced to the maximum extent possible. Further, if a court should determine that any portion of this Separation Agreement is overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found overbroad or unreasonable. In addition, Executive agrees that Executive’s knowing failure to return Company property that relates to the maintenance of security of the Company Entities and Persons shall entitle the Company to injunctive and other equitable relief.
14. No Admission. This Separation Agreement is not intended, and shall not be construed, as an admission that either Executive or the Company Entities and Persons have violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever.
15. Successors. This Separation Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.
16. Resolution of Disputes; Choice of Law.
(a) This Separation Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to the principles of conflicts of law.
(b) All suits, actions or proceedings arising out of or relating to this Separation Agreement shall be brought in a state or federal court located in the City and County of San Francisco, California, which courts shall be the exclusive forum for all such suits, actions or proceedings. Executive and the Company hereby waive any objection which either of Executive may now or hereafter have to the laying of venue in any such court, including any claim based on the doctrine of forum non conveniens or any similar doctrine, for any such suit, action or proceeding. Executive and the Company each hereby irrevocably consent and submit to the jurisdiction of the federal and state courts located in the City and County of San Francisco, California for the purposes of any suit, action or proceeding arising out of relating to this Separation Agreement. If any action is necessary to enforce the terms of this Separation Agreement, the substantially prevailing party will be entitled to reasonable attorneys’ fees, costs and expenses in addition to any other relief to which such prevailing party may be entitled.
(c) EXECUTIVE AND THE COMPANY EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING UNDER THIS SEPARATION AGREEMENT OR RELATED IN ANY WAY TO EXECUTIVE’S EMPLOYMENT AND/OR TO THE TERMINATION OF EXECUTIVE’S EMPLOYMENT AND AGREE THAT ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
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(d) If the waiver of a trial by jury in paragraph (c) of this Section 16 is ineffective or unenforceable, the Company and Executive agree that all suits, actions or proceedings arising under this Separation Agreement or related in any way to Executive’s employment and/or to the termination of Executive’s employment brought or heard in a California state court shall be resolved without a jury, pursuant to California Code of Civil Procedure Section 638 et seq, before a mutually acceptable referee (who shall be a retired judge). The Company and Executive shall not seek to appoint a referee that may be disqualified pursuant to California Code of Civil Procedure Section 641 or 641.2 without the prior written consent of all parties. If the parties are unable to agree upon a referee within ten (10) calendar days after one party serves a written notice of intent for judicial reference upon the other party or parties, then the referee will be selected by the court in accordance with California Code of Civil Procedure Section 640(b). Such proceeding shall be conducted in the City and County of San Francisco, California, in accordance with the California Code of Civil Procedure, the Rules of Court, and California Evidence Code, except as otherwise specifically agreed by the parties and approved by the referee. In the event Claims are to be resolved by judicial reference, either party may seek from the court any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by judicial reference.
(e) Entire Agreement. Executive acknowledges that this Separation Agreement constitutes the complete understanding between the Company and Executive regarding its subject matter and supersedes any and all agreements, understandings, and discussions, whether written or oral, between Executive and any of the Company Entities and Persons. No other promises or agreements shall be binding on the Company unless in writing and signed by both the Company and Executive after the date of this Separation Agreement. This Separation Agreement shall be construed as though both parties had participated equally in its drafting, and shall not be construed against either party as the drafting party.
17. Effective Date. Executive may accept this Separation Agreement by signing it and returning it to AgeX Therapeutics, Inc., 0000 Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, XX 00000, ATTN: CEO or if by email, addressed to xxxxx@xxxxxxx.xxx, not later than the twenty-first (21st) day after the Separation Agreement is provided to Executive (which is close of business on November 5, 2018 as described in Section 12(a) above). The Effective Date of this Separation Agreement shall be the date after the 7-day revocation period expires. In the event Executive does not accept this Separation Agreement as set forth in this Section 17, this Separation Agreement, including but not limited to, the obligation of the Company hereunder to provide benefits under this Separation Agreement, shall be deemed automatically null and void.
18. Headings. The headings used herein are for the convenience of reference only, do not constitute part of this Separation Agreement and shall not be deemed to limit or otherwise affect any of the provisions of this Separation Agreement.
19. Counterparts. This Separation Agreement may be executed in one or more counterparts, including pdf format documents delivered by email or telecopied facsimiles, each of which shall be deemed an original (including all signatures thereon), but all of which together shall constitute one and the same instrument.
[Signature Page to the Separation and Release Agreement Follows]
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IN WITNESS WHEREOF, the parties have executed this Separation and Release Agreement as of the dates set forth below.
| EXECUTIVE | ||||
| /s/ Xxxxxx Xxxxxxxx | Date: | October 17, 2018 | ||
| Xxxxxx Xxxxxxxx | ||||
| AGEX THERAPEUTICS, INC. | ||||
| By: | /s/ Xxxxxxx Xxxx | Date: | October 17, 2018 | |
| Xxxxxxx Xxxx | ||||
| Chief Executive Officer | ||||
[Signature Page to the Separation and Release Agreement]
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Exhibit A
CONSENT TO AMENDMENT OF INCENTIVE STOCK OPTIONS
To be signed and delivered to AgeX Therapeutics, Inc.
I am a holder of outstanding stock options (the “Options”) to purchase 330,000 shares of common stock of AgeX Therapeutics, Inc., (the “Company”), at an exercise price of $2.00 per share, that were granted under the Company’s equity incentive plan (the “Equity Plan”). The number and type of shares of the Company purchasable and the exercise price of the Options are subject to adjustment under the Equity Plan and the terms of the Options. Pursuant to the terms of the Options, without giving effect to the Separation Agreement between myself and the Company dated as of October 15, 2018 (the “Separation Agreement”), the Options will cease to vest as of the date of my termination of Continuous Service (as defined in the Equity Plan) with the Company and will remain exercisable for three (3) months thereafter. In connection with the Separation Agreement, the Company (i) has agreed that, subject to the terms and conditions of the Separation Agreement, my Options shall fully vest on the Separation Date as defined in the Separation Agreement, and (ii) has agreed that subject to my compliance with my obligations under the Separation Agreement and the terms and conditions of the Separation Agreement, to extend the post-termination exercise period and to permit me to exercise my Options until October 16, 2023 (the post-termination exercise period, the “Options Amendment”). The Company may not amend the terms of my Options in a manner that would adversely affect my rights under such Options without my written consent. I understand that with respect to any portion of my Options that is an “incentive stock option” (“ISO”) under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), the Options Amendment is contingent upon my consent to such amendment.
Section 424(h) of the Code provides that if the terms of an ISO are modified, then such modification shall be considered as the granting of a new option. An extension of the post-termination exercise period of my Options would be deemed a modification and, thus, the grant of new options. As a result, the Options Amendment would require a new comparison of the exercise price and the current fair market value of the Company’s common stock and would require my employment status as of such date to determine if the Options, as amended by the Options Amendment, retain ISO status. Therefore, because I will no longer be an employee of the Company, any ISOs would fail to be treated as an ISO as a result of the Options Amendment, provided they are not exercised by me within three (3) months after my Separation Date.
I understand that I am under no obligation to consent to the Options Amendment. I have read this consent and have had sufficient time to review and discuss this matter. I understand that in order for the Options Amendment to be effective, I must properly execute and return my consent to the Options Amendment in accordance with the “important instructions” below and (2) I must become a party to the Separation Agreement.
I further understand that this consent is intended as a brief summary of the Options Amendment and, thus, if there is any inconsistency between the information included in this consent and the terms of the Options (as amended by the Separation Agreement), the terms of the Options shall govern. I acknowledge that the Options Amendment shall not override any contrary provision in the equity incentive plan or award agreements under which the Options were granted that would provide for earlier termination of any unexercised Options regarding a corporate transaction, change in control, or other similar transaction. I acknowledge that neither the Company nor its agents have recommended or influenced my decision to consent to the Options Amendment. I further acknowledge that I have had the opportunity to seek independent advice regarding this matter from my legal counsel and tax advisor.
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After due consideration of the above, I hereby agree to the Options Amendment. I acknowledge that, for any portion of the Options that are ISOs, the Options Amendment will cause loss of ISO status if they are not exercised within the three (3) months following my Separation Date.
| /s/ Xxxxxx Xxxxxxxx | |
| Xxxxxx Xxxxxxxx | |
| October 17, 2018 | |
| Date Signed |
IMPORTANT INSTRUCTIONS: In order for this Options Amendments to be effective, you must (1) sign and date this Consent to Amendment of Incentive Stock Options and return it to AgeX Therapeutics, Inc., and (2) become a party to the Separation and Release Agreement. This Consent to Amendment of Incentive Stock Options may be returned by hard copy or by emailing as a PDF attachment to the CEO at xxxxxxxxxxxxx.xxx.
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